Share-Based Compensation (Tables)

6 Months Ended

Jul. 02, 2016

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

Weighted-Average Assumptions Used for Grants of Stock Options and SARs

The following table shows the weighted-average assumptions used for grants of SARs as well as the fair value based on those assumptions:

	Six Months Ended
	July 2, 2016		July 4, 2015
Expected dividend yield	0%		0%
Forfeiture rate	9.01%		10.24%
Volatility	43.14%		33.98%
Risk free interest rate	1.29%		1.53%
Range of interest rates	0.25% - 1.75%		0.02% - 2.14%
Expected weighted-average life	5.33 years		5.32 years
Fair value of SARs granted (in millions)	$	12	$	11
Weighted-average grant date fair value of SARs granted (per underlying share)	$	19.95	$	35.25

Summary of SARs Activity

SARs activity was as follows:

	Six Months Ended July 2, 2016
SARs	Shares			Weighted- Average Exercise Price
Outstanding at beginning of period	1,397,611			$	56.78
Granted	607,846			51.55
Exercised	(39,830		)	40.06
Forfeited	(40,539		)	64.66
Expired	(1,417		)	74.72
Outstanding at end of period	1,923,671			55.14
Exercisable at end of period	946,826			43.73
Intrinsic value of exercised SARs (in millions)	$	1

Schedule of Outstanding and Exercisable Options

The following table summarizes information about SARs outstanding at July 2, 2016:

	July 2, 2016
	Outstanding		Exercisable
Aggregate intrinsic value (in millions)	$	26	$	20
Weighted-average remaining contractual term	7.4 years		5.4 years

Summary of Restricted Stock Award Activity

Restricted stock award activity was as follows:

	Six Months Ended July 2, 2016
Restricted Stock Awards	Shares		Weighted-Average Grant Date Fair Value
Outstanding at beginning of period	566,447		$	77.68
Granted	377,017		51.38
Released	(223,318	)	55.74
Forfeited	(18,520	)	73.58
Outstanding at end of period	701,626		70.47

Summary of Performance Share Award Activity

Performance stock award activity was as follows:

	Six Months Ended July 2, 2016
Performance Stock Awards	Shares		Weighted-Average Grant Date Fair Value
Outstanding at beginning of period	332,630		$	73.40
Granted	179,385		50.36
Released	(108,371	)	46.07
Forfeited	(6,363	)	71.33
Outstanding at end of period	397,281		70.18

Restricted stock unit activity was as follows:

	Six Months Ended July 2, 2016
Restricted Stock Units	Shares
Outstanding at beginning of period	38,746
Granted	31,194
Exercised	(7,585	)
Forfeited	(1,485	)
Outstanding at end of period	60,870

Weighted-Average Assumptions Used for Employee Purchase Rights Granted Under Stock Purchase Plan

The fair value of the purchase rights issued to employees under the stock purchase plan is estimated using the following weighted-average assumptions for purchase rights granted. An expected life of 3 months was used to calculate the fair value.

	Six Months Ended
	July 2, 2016			July 4, 2015
Fair market value	$	60.28		$	82.68
Option price	$	57.26		$	78.55
Expected dividend yield	0		%	0		%
Expected volatility	58		%	27		%
Risk free interest rate	0.21		%	0.04		%