Share-Based Compensation (Tables)

6 Months Ended

Jul. 02, 2022

Share-Based Payment Arrangement [Abstract]

Schedule of Compensation Expense and Related Income Tax benefit

The compensation expense from the Company’s share-based compensation plans and associated income tax benefit, excluding the effects of excess tax benefits or shortfalls, were included in the Consolidated Statements of Operations as follows (in millions):

	Three Months Ended				Six Months Ended
	July 2, 2022		July 3, 2021		July 2, 2022		July 3, 2021
Cost of sales	$	1	$	2	$	2	$	4
Selling and marketing	6		7		10		13
Research and development	10		8		16		14
General and administration	10		10		16		17
Total compensation expense	$	27	$	27	$	44	$	48
Income tax benefit	$	5	$	4	$	8	$	7

Summary of Restricted and Performance Stock-settled Awards

A summary of the Company’s restricted and performance stock-settled awards for the six months ended July 2, 2022 is as follows:

	RSUs			PSUs			RSAs			PSAs
	Units	Weighted-Average Grant Date Fair Value		Units	Weighted-Average Grant Date Fair Value		Shares	Weighted-Average Grant Date Fair Value		Shares	Weighted-Average Grant Date Fair Value
Outstanding at beginning of period	130,009	$	518.80	37,691	$	482.42	154,322	$	253.54	74,032	$	225.34
Granted	164,592	366.72		69,553	367.87		5,960	321.34		—	—
Released	(27,961)	492.78		(226)	482.42		(90,499)	233.33		(37,617)	205.54
Forfeited	(8,636)	512.86		(402)	482.42		(6,650)	253.00		(115)	244.62
Outstanding at end of period	258,004	$	424.54	106,616	$	407.69	63,133	$	288.01	36,300	$	245.80

Summary of SARs Activity

A summary of the Company’s SARs for the six months ended July 2, 2022 is as follows:

SARs	SARs	Weighted-Average Exercise Price
Outstanding at beginning of period	474,151	$	121.05
Granted	—	—
Exercised	(16,533)	70.19
Forfeited	(953)	226.71
Expired	—	—
Outstanding at end of period	456,665	$	122.67
Exercisable at end of period	410,816	$	109.36

Summary of SARs Outstanding

The following table summarizes information about SARs outstanding as of July 2, 2022:

	Outstanding		Exercisable
Aggregate intrinsic value (in millions)	$	81	$	78
Weighted-average remaining contractual life (in years)	3.1		3.0