Stock-Based Compensation (Tables)

12 Months Ended

Jan. 01, 2021

Share-based Payment Arrangement [Abstract]

Schedule of stock-based compensation and related tax benefits recognized under all plans

Stock-based compensation and related tax benefits recognized under all plans were as follows:

	Year Ended
	January 1, 2021		January 3, 2020		December 28, 2018
	(in millions)
Total stock-based compensation expense	$	62	$	52	$	44
Tax benefits recognized from stock-based compensation	15		13		11

Schedule of monte carlo simulation assumptions

The weighted average grant-date fair value and assumptions used to determine fair value of stock options granted for the periods presented were as follows:

	Year Ended
	January 1, 2021			January 3, 2020			December 28, 2018
Weighted average grant-date fair value	$	19.64		$	11.89		$	13.85
Expected term (in years)	4.5			4.4			4.7
Expected volatility	25.0		%	24.3		%	26.6		%
Risk-free interest rate	0.6		%	2.4		%	2.6		%
Dividend yield	1.3		%	2.2		%	2.0		%

The Monte Carlo simulation assumptions used for the periods presented were as follows:

	Year Ended
	January 1, 2021			January 3, 2020			December 28, 2018
Expected volatility	23.99		%	22.02		%	25.37		%
Risk free rate of return	0.50		%	2.39		%	2.35		%
Weighted average grant date stock price	$	105.12		$	62.66		$	65.00

Schedule of stock option activity

Stock option activity for each of the periods presented was as follows:

	Shares of stock under stock options	Weighted average exercise price		Weighted average remaining contractual term	Aggregate intrinsic value
	(in millions)			(in years)	(in millions)
Outstanding at December 29, 2017	2.8	$	34.38	3.9	$	86
Options granted	0.4	63.75
Options forfeited or expired	(0.2)	49.65
Options exercised	(0.6)	30.40			24
Outstanding at December 28, 2018	2.4	$	39.41	3.8	$	36
Options granted	0.5	63.61
Options forfeited or expired	—	58.08
Options exercised	(0.5)	30.86			21
Outstanding at January 3, 2020	2.4	$	46.04	3.8	$	128
Options granted	0.3	106.73
Options forfeited or expired	(0.1)	66.84
Options exercised	(0.4)	35.94			29
Outstanding at January 1, 2021	2.2	56.01		3.5	108
Exercisable at January 1, 2021	1.4	$	42.85	2.5	$	85
Vested and expected to vest in the future as of January 1, 2021	2.2	$	55.67	3.5	$	108

Schedule of restricted stock units and awards activity

Restricted stock units and awards activity for each of the periods presented was as follows:

	Shares of stock under stock awards	Weighted average grant- date fair value
	(in millions)
Unvested stock awards at December 29, 2017	2.0	$	44.96
Awards granted	0.6	64.05
Awards forfeited	(0.2)	42.67
Awards vested	(0.4)	44.60
Unvested stock awards at December 28, 2018	2.0	$	50.85
Awards granted	0.6	64.70
Awards forfeited	(0.1)	60.20
Awards vested	(1.1)	44.10
Unvested stock awards at January 3, 2020	1.4	$	60.91
Awards granted	0.5	106.38
Awards forfeited	(0.1)	79.61
Awards vested	(0.5)	56.36
Unvested stock awards at January 1, 2021	1.3	$	79.05

Schedule of performance-based stock award activity

Performance-based stock award activity for each of the periods presented was as follows:

	Expected number of shares of stock to be issued under performance-based stock awards	Weighted average grant- date fair value
	(in millions)
Unvested at December 29, 2017	0.5	$	50.34
Awards granted	0.3	61.43
Awards forfeited	(0.1)	61.81
Awards vested	(0.2)	44.04
Unvested at December 28, 2018	0.5	$	57.36
Awards granted	0.2	66.92
Awards forfeited	—	66.72
Awards vested	(0.1)	45.83
Unvested at January 3, 2020	0.6	$	63.66
Awards granted	0.2	103.34
Awards forfeited	(0.1)	72.96
Awards vested	(0.2)	58.61
Unvested at January 1, 2021	0.5	$	80.20