Employee Equity Incentive Plans
|6 Months Ended|
Jun. 27, 2015
|Employee Benefits and Share-based Compensation [Abstract]|
|Employee Equity Incentive Plans [Text Block]||
Note 14: Employee Equity Incentive Plans
Our equity incentive plans are broad-based, long-term programs intended to attract and retain talented employees and align stockholder and employee interests.
During May 2015, stockholders approved an extension of the expiration date of the 2006 Equity Incentive Plan to June 2018 and approved an additional 34 million shares for issuance. As of June 27, 2015, 256 million shares of common stock remained available for future grant under the 2006 Equity Incentive Plan through June 2018.
During May 2015, stockholders approved an extension of the expiration date of the 2006 Stock Purchase Plan to August 2021. The 2006 Stock Purchase Plan allows eligible employees to purchase shares of our common stock at 85% of the value of our common stock on specific dates. Rights to purchase shares of common stock are granted during the first and third quarters of each year. As of June 27, 2015, 189 million shares of common stock remained available for issuance under the 2006 Stock Purchase Plan through August 2021.
Share-based compensation expense was $332 million in the second quarter of 2015 and $700 million in the first six months of 2015 ($303 million in the second quarter of 2014 and $586 million in the first six months of 2014).
Restricted Stock Unit Awards
We estimate the fair value of restricted stock unit awards with time-based vesting using the value of our common stock on the date of grant, reduced by the present value of dividends expected to be paid on our shares of common stock prior to vesting. We estimate the fair value of market-based restricted stock units using a Monte Carlo simulation model on the date of grant (no market-based restricted stock units were granted in the second quarter of 2015). We based the weighted average estimated value of restricted stock unit grants, as well as the weighted average assumptions that we used in calculating the fair value, on estimates at the date of grant, for each period as follows:
Restricted stock unit activity in the first six months of 2015 was as follows:
The aggregate fair value of awards that vested in the first six months of 2015 was $1.4 billion, which represents the market value of our common stock on the date that the restricted stock units vested. The grant-date fair value of awards that vested in first six months of 2015 was $986 million. The number of restricted stock units vested includes shares of common stock that we withheld on behalf of employees to satisfy the minimum statutory tax withholding requirements. Restricted stock units that are expected to vest are net of estimated future forfeitures.
As of June 27, 2015, 4.8 million of the outstanding restricted stock units were market-based restricted stock units.
Stock Option Awards
Stock option activity in the first six months of 2015 was as follows:
During the first six months of 2015, the aggregate intrinsic value of stock option exercises was $150 million, which represents the difference between the exercise price and the value of our common stock at the time of exercise. No stock options were granted during the first six months of 2015.
Stock Purchase Plan
Employees purchased 8.1 million shares of common stock in the first six months of 2015 for $234 million (10.7 million shares of common stock in the first six months of 2014 for $212 million) under the 2006 Stock Purchase Plan.
The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.
Reference 1: http://www.xbrl.org/2003/role/presentationRef
No definition available.