Stock-Based Compensation (Tables)

12 Months Ended

Jan. 02, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of Stock-based Compensation Expense

The Company's total stock-based compensation expense for fiscal years 2015, 2014 and 2013 by income statement line item was as follows (in millions):

	2015		2014		2013
Cost of sales	$	6	$	6	$	5
Selling, general and administrative expense	137		49		45
Research and development expense	17		16		15
Stock-based compensation expense	$	160	$	71	$	65

Schedule of Weighted Average Fair Values

The following table provides the weighted average grant date fair values of the Company's restricted stock awards, restricted stock units and ESPP purchase rights during fiscal years 2015, 2014 and 2013, excluding Thoratec-related awards:

	2015		2014		2013
Weighted average grant date fair values:
Restricted stock awards	$	71.77	$	63.48	$	42.26
Restricted stock units	$	61.79	$	69.08	$	59.04
ESPP purchase rights	$	16.91	$	15.46	$	13.06

Schedule of Stock Option Assumptions

The following table includes the weighted average grant date fair value of stock options granted to employees during fiscal years 2015, 2014 and 2013 and the related weighted average assumptions used in the Black-Scholes model:

	2015			2014			2013
Fair value of options granted	$	12.54		$	14.56		$	13.83
Assumptions:
Expected term (years)	5.4			5.4			5.4
Risk-free interest rate	1.7		%	1.7		%	1.6		%
Volatility	24.7		%	24.9		%	28.6		%
Dividend yield	1.8		%	1.6		%	1.8		%

Schedule of Stock Option Activity

The following table summarizes stock option activity under all stock-based compensation plans during the fiscal year ended January 2, 2016:

					Weighted
			Weighted		Average	Aggregate
			Average		Remaining	Intrinsic
	Options		Exercise		Contractual	Value
	(shares in millions)		Price		Term (in years)	(in millions)
Outstanding as of January 3, 2015	17.7		$	44.70
Granted	2.7		61.76
Exercised	(3.1	)	39.06
Forfeited and expired	(0.5	)	53.75
Outstanding as of January 2, 2016	16.8		$	48.22	4.9	$	247
Vested and expected to vest	16.1		$	47.59	4.8	$	245
Exercisable as of January 2, 2016	10.3		$	40.76	3.6	$	221

Schedule of Restricted Stock Units and Restricted Stock Award Activity

The following table summarizes activity for restricted stock awards and restricted stock units under all stock-based compensation plans during the fiscal year ended January 2, 2016, excluding the Company's Thoratec-related awards:

	Restricted Stock		Weighted Average
	Units and Awards		Grant Date
	(shares in millions)		Fair Value
Unvested balance as of January 3, 2015	1.5		$	56.36
Granted	0.6		62.10
Vested	(0.5	)	51.56
Forfeited	(0.1	)	57.30
Unvested balance as of January 2, 2016	1.5		$	60.65