The Seventh Restated 2002 Stock Incentive Plan authorized the issuance of 23,500,000 shares (13,429,000 RSUs) of common stock for future grants in addition to the shares authorized under the previous plan. The Company issues new shares of common stock upon vesting of RSUs. Shares for vested RSUs are generally delivered to participants annually, net of shares withheld for statutory taxes. Summary of Restricted Stock Unit Activity At May 13, 2018, 8,262,000 shares were available to be granted as RSUs and the following awards were outstanding: | | • | 7,305,000 time-based RSUs that vest upon continued employment over specified periods of time; |
| | • | 127,000 performance-based RSUs, granted to executive officers of the Company, for which the performance targets have been met. The awards vest upon continued employment over specified periods of time; and |
| | • | 205,000 performance-based RSUs, granted to executive officers of the Company, subject to achievement of performance targets for fiscal 2018, as determined by the Compensation Committee of the Board of Directors after the end of the fiscal year. These awards are included in the table below and the Company has recognized compensation expense for these awards as it is currently deemed probable that the targets will be achieved. |
The following table summarizes RSU transactions during the first thirty-six weeks of 2018: | | | | | | | | | Number of Units (in 000’s) | | Weighted-Average Grant Date Fair Value | Outstanding at September 3, 2017 | 8,199 |
| | $ | 128.15 |
| Granted | 3,722 |
| | 156.19 |
| Vested and delivered | (4,080 | ) | | 129.49 |
| Forfeited | (204 | ) | | 138.42 |
| Outstanding at May 13, 2018 | 7,637 |
| | $ | 140.83 |
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The remaining unrecognized compensation cost related to non-vested RSUs at May 13, 2018, was $819, and the weighted-average period over which this cost will be recognized is 1.7 years. Summary of Stock-Based Compensation The following table summarizes stock-based compensation expense and the related tax benefits under the Company’s plans: | | | | | | | | | | | | | | | | | | 12 Weeks Ended | | 36 Weeks Ended | | May 13,
2018 | | May 7,
2017 | | May 13,
2018 | | May 7,
2017 | Stock-based compensation expense before income taxes | $ | 85 |
| | $ | 82 |
| | $ | 431 |
| | $ | 404 |
| Less recognized income tax benefit (1) | (19 | ) | | (26 | ) | | (98 | ) | | (132 | ) | Stock-based compensation expense, net of income taxes | $ | 66 |
| | $ | 56 |
| | $ | 333 |
| | $ | 272 |
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_______________ | | (1) | For 2018, the tax benefit reflects the reduction in the U.S. federal statutory income tax rate from 35% to 21%. |
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