Share-Based Compensation (Tables)

6 Months Ended

Jul. 01, 2023

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
Compensation costs and related income tax benefit	July 1, 2023		July 2, 2022		July 1, 2023		July 2, 2022
Cost of sales	$	2	$	1	$	3	$	2
Selling and marketing	1		6		7		10
Research and development	6		10		13		16
General and administration	(6)		10		3		16
Total compensation expense	$	3	$	27	$	26	$	44
Income tax benefit	$	3	$	5	$	7	$	8

Schedule 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 1, 2023 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	242,732	$	404.19	105,928	$	406.89	46,971	$	271.92	35,246	$	245.79
Granted	279,224	265.58		104,446	258.63		6,640	271.77		—	—
Released	(74,829)	403.10		(64)	482.42		(45,129)	252.61		(34,525)	244.97
Forfeited	(11,198)	425.27		(1,096)	389.82		(1,375)	300.62		(75)	244.97
Outstanding at end of period	435,929	$	314.40	209,214	$	332.94	7,107	$	384.26	646	$	291.43

Schedule of SARs Activity

A summary of the Company’s SARs for the six months ended July 1, 2023 is as follows:

	SARs	Weighted-Average Exercise Price
Outstanding at beginning of period	443,476	$	122.67
Granted	—	—
Exercised	(24,576)	98.86
Forfeited	(157)	239.89
Expired	—	—
Outstanding at end of period	418,743	$	124.02
Exercisable at end of period	403,092	$	118.58

Schedule of SARs Outstanding

The following table summarizes information about SARs outstanding as of July 1, 2023:

	Outstanding		Exercisable
Aggregate intrinsic value (in millions)	$	72	$	72
Weighted-average remaining contractual life (in years)	2.2		2.1