Annual report pursuant to Section 13 and 15(d)

Employee Benefit Plans

Employee Benefit Plans
12 Months Ended
Sep. 24, 2023
Employee Benefit and Share-Based Payment Arrangement, Noncash Expense [Abstract]  
Employee Benefit Plans Employee Benefit Plans
Equity Compensation Plans. On March 8, 2023, our stockholders approved the Qualcomm Incorporated 2023 Long-Term Incentive Plan (the 2023 Plan), as a successor to and continuation of our Amended and Restated Qualcomm Incorporated 2016 Long-Term Incentive Plan (the Prior Plan), and to increase the share reserve by 82 million shares. Effective on and after that date, no new awards were granted under the Prior Plan, although all outstanding awards under the Prior Plan remained outstanding according to their terms and the terms of the Prior Plan. The 2023 Plan provides for the grant of RSUs and other stock-based awards. The RSUs generally include dividend-equivalent rights and vest over three years from the date of grant. The Board of Directors may amend or terminate the 2023 Plan at any time. Certain amendments, including an increase in the share reserve, require stockholder approval. At September 24, 2023, approximately 88 million shares were available for future grant under the 2023 Plan.
The following is a summary of employee RSU transactions that contain only service requirements to vest:
Number of Shares
(in millions)
Grant Date Fair Value
RSUs outstanding at September 25, 2022 30  $ 127.58 
RSUs granted 25  116.80 
RSUs canceled/forfeited (3) 124.51 
RSUs vested (17) 122.19 
RSUs outstanding at September 24, 2023 35  122.86 
The weighted-average estimated grant date fair values of employee RSUs that contain only service requirements to vest granted during fiscal 2022 and 2021 were $136.09 and $124.22 per share, respectively. Upon vesting, we issue new shares of common stock. For the majority of RSUs, shares are issued on the vesting dates net of the amount of shares needed to satisfy statutory tax withholding requirements to be paid by us on behalf of the employees. As a result, the actual number of shares issued will be fewer than the number of RSUs outstanding. The annual pre-vest forfeiture rate for RSUs was estimated to be approximately 7%, 6% and 6% in fiscal 2023, 2022 and 2021, respectively.
At September 24, 2023, total unrecognized compensation expense related to such non-vested RSUs granted prior to that date was $2.9 billion, which is expected to be recognized over a weighted-average period of 1.8 years. The total vest-date fair value of such RSUs that vested during fiscal 2023, 2022 and 2021 was $2.1 billion, $2.9 billion and $2.6 billion, respectively. The total shares withheld to satisfy statutory tax withholding requirements related to all share-based awards were 4 million, 5 million and 5 million in fiscal 2023, 2022 and 2021, respectively and were based on the value of the awards on their vesting dates as determined by our closing stock price.
The total tax benefits realized, including the excess tax benefits, related to share-based awards during fiscal 2023, 2022 and 2021 were $435 million, $627 million and $567 million, respectively.
Employee Stock Purchase Plan. We have an employee stock purchase plan that allows eligible employees to purchase shares of common stock at 85% of the value of our common stock on specific dates through periodic payroll deductions. The shares reserved for future issuance under the employee stock purchase plan were 19 million at September 24, 2023. We recorded cash received from the exercise of purchase rights of $395 million, $355 million and $343 million during fiscal 2023, 2022 and 2021, respectively.
Share-based Compensation Expense. Total share-based compensation expense, related to all of our share-based awards, was comprised as follows (in millions):
2023 2022 2021
Cost of revenues $ 76  $ 61  $ 47 
Research and development 1,911  1,537  1,234 
Selling, general and administrative 497  463  389 
Share-based compensation expense before income taxes 2,484  2,061  1,670 
Related income tax benefit (463) (489) (435)
$ 2,021  $ 1,572  $ 1,235