Stock Transactions And Stock-Based Compensation (Tables)

9 Months Ended

Oct. 01, 2021

Share-based Payment Arrangement [Abstract]

Summary of Share Activity

The following table summarizes the Company’s share activity (shares in millions):

	Three-Month Period Ended		Nine-Month Period Ended
	October 1, 2021	October 2, 2020	October 1, 2021	October 2, 2020
Preferred stock - shares issued:
Balance, beginning of period	3.4	3.4	3.4	1.7
Issuance of MCPS	—	—	—	1.7
Balance, end of period	3.4	3.4	3.4	3.4
Common stock - shares issued:
Balance, beginning of period	854.4	849.5	851.3	835.5
Common stock-based compensation awards	0.8	1.1	3.0	3.9
Common stock issued in connection with LYONs’ conversions	—	—	0.9	0.3
Issuance of common stock	—	—	—	10.9
Balance, end of period	855.2	850.6	855.2	850.6

Key Terms of Shares

The following summarizes the key terms of the MCPS Shares:

	Annual Cumulative Dividend Rate		Liquidation Preference per share		Minimum Conversion Rate	Maximum Conversion Rate	Mandatory Conversion Date
Series A	4.75	%	$	1,000	6.6601 shares	8.1585 shares	April 15, 2022
Series B	5.00	%	$	1,000	5.0098 shares	6.1370 shares	April 15, 2023

Components Of Stock-Based Compensation Program

The following summarizes the components of the Company’s stock-based compensation expense ($ in millions):

	Three-Month Period Ended				Nine-Month Period Ended
	October 1, 2021		October 2, 2020		October 1, 2021		October 2, 2020
Restricted stock units (“RSUs”)/performance stock units (“PSUs”):
Pretax compensation expense	$	31	$	27	$	95	$	83
Income tax benefit	(6)		(5)		(19)		(17)
RSU/PSU expense, net of income taxes	25		22		76		66
Stock options:
Pretax compensation expense	21		18		64		54
Income tax benefit	(4)		(4)		(13)		(11)
Stock option expense, net of income taxes	17		14		51		43
Total stock-based compensation:
Pretax compensation expense	52		45		159		137
Income tax benefit	(10)		(9)		(32)		(28)
Total stock-based compensation expense, net of income taxes	$	42	$	36	$	127	$	109