Stock-Based Compensation (Tables)

12 Months Ended

Jan. 26, 2020

Our Consolidated Statements of Income include stock-based compensation expense, net of amounts allocated to inventory, as follows:



	Year Ended
	January 26, 2020		January 27, 2019		January 28, 2018
	(In millions)
Cost of revenue	$	39	$	27	$	21
Research and development	540		336		219
Sales, general and administrative	265		194		151
Total	$	844	$	557	$	391

The following is a summary of equity awards granted under our equity incentive plans:



	Year Ended
	January 26, 2020		January 27, 2019		January 28, 2018
	(In millions, except per share data)
RSUs, PSUs and Market-based PSUs
Awards granted	7		4		6
Estimated total grant-date fair value	$	1,282	$	1,109	$	929
Weighted average grant-date fair value per share	$	184.47	$	258.26	$	145.91

ESPP
Shares purchased	1		1		5
Weighted average price per share	$	148.76	$	107.48	$	21.24
Weighted average grant-date fair value per share	$	64.87	$	38.51	$	7.12



	January 26, 2020		January 27, 2019
	(In millions)
Aggregate unearned stock-based compensation expense, net of forfeitures	$	1,803	$	1,580

Estimated weighted average remaining amortization period	(In years)
RSUs, PSUs and market-based PSUs	2.5		2.2
ESPP	0.9		0.8

The fair value of shares issued under our ESPP have been estimated with the following assumptions:



	Year Ended
	January 26, 2020	January 27, 2019	January 28, 2018
	(Using the Black-Scholes model)
ESPP
Weighted average expected life (in years)	0.1-2.0	0.1-2.0	0.5-2.0
Risk-free interest rate	1.5%-2.6%	1.6%-2.8%	0.8%-1.4%
Volatility	30%-82%	24%-75%	40%-54%
Dividend yield	0.3%-0.4%	0.3%-0.4%	0.3%-0.5%

The following is a summary of our equity award transactions under our equity incentive plans:



	RSUs, PSUs and Market-based PSUs Outstanding
	Number of Shares		Weighted Average Grant-Date Fair Value
	(In millions, except years and per share data)
Balances, January 27, 2019	16		$	129.92
Granted (1)(2)	7		$	184.47
Vested restricted stock	(8	)	$	92.70
Canceled and forfeited	(1	)	$	185.46
Balances, January 26, 2020	14		$	176.72
Vested and expected to vest after January 26, 2020	11		$	176.46


(1)	Includes the number of PSUs that will be issued and eligible to vest based on the corporate financial performance level achieved for fiscal year 2020.


(2)	Includes the number of market-based PSUs granted that will be issued and eligible to vest if the maximum goal for total shareholder return, or TSR, over the 3-year measurement period is achieved. Depending on the ranking of our TSR compared to those companies comprising the Standard & Poor’s 500 Index during that period, the market-based PSUs issued could be up to 60 thousand shares.