Stock-based Compensation and Other Stock Plans (Tables)

12 Months Ended

Jan. 03, 2015

Summary of Weighted-Average Assumptions of Fair Value Granted Using Black-Scholes Valuation Model

The following weighted-average assumptions were used in calculating the fair value of stock options granted during 2014, 2013 and 2012, using the Black-Scholes valuation model:

	2014		2013		2012
Expected term of option (in years)		4.52		4.29		5.36
Expected volatility factor		26.76%		33.79%		36.93%
Expected dividend yield		2.40%		2.67%		2.72%
Risk-free interest rate		1.30%		0.79%		0.82%

Summary of Stock Option Activity

A summary of stock option activity during 2014 is presented below:

	Shares      (in thousands)		Exercise  Price per  Share*		Remaining    Contractual    Term* (in years)		Aggregate Intrinsic Value (in millions)
Outstanding at beginning of year		2,429	$	58.35
Granted		644		109.44
Exercised		(397)		52.89
Forfeited or expired		(46)		90.03
Outstanding at end of year		2,630		71.13		6.8	$	171.4
Exercisable at end of year		1,407		53.42		5.4		116.6

* Weighted-average

Nonvested Performance Shares [Member]

Summary of Changes in Non-Vested Performance Awards

The changes to the company’s non-vested performance awards in 2014 are as follows:

	Shares       (in thousands)		Fair Value Price per Share*
Non-vested performance awards at beginning of year		381	$	68.13
Granted		177		102.11
Vested		(225)		60.04
Cancellations and other		(6)		78.65
Non-vested performance awards at end of year		327		91.92

* Weighted-average

Cash-Settled Stock Appreciation Rights [Member]

Summary of Weighted-Average Assumptions of Fair Value Granted Using Black-Scholes Valuation Model

The following weighted-average assumptions were used in calculating the fair value of cash-settled SARs granted during 2014, 2013 and 2012 using the Black-Scholes valuation model:

	2014		2013		2012
Expected term of cash-settled SARs (in years)		3.53		3.28		4.49
Expected volatility factor		23.92%		24.54%		36.44%
Expected dividend yield		2.11%		2.57%		2.69%
Risk-free interest rate		1.07%		0.79%		0.72%

Summary of Changes in SARs

Changes to the company’s non-vested cash-settled SARs in 2014 are as follows:

	Cash-settled SARs        (in thousands)		Fair Value Price per Share*
Non-vested cash-settled SARs at beginning of year		126	$	43.72
Granted		4		32.86
Vested		(81)		73.25
Cancellations		(2)		–
Non-vested cash-settled SARs at end of year		47		68.35

* Weighted-average

Stock-Settled SARs [Member]

Summary of Weighted-Average Assumptions of Fair Value Granted Using Black-Scholes Valuation Model

The following weighted-average assumptions were used in calculating the fair value of stock-settled SARs granted during 2014 and 2013 using the Black-Scholes valuation model:

	2014		2013
Expected term of stock-settled SARs (in years)		4.49		4.24
Expected volatility factor		25.64%		33.92%
Expected dividend yield		2.40%		2.67%
Risk-free interest rate		1.50%		0.91%

Summary of Changes in SARs

A summary of stock-settled SARs activity in 2014 is presented below:

	Stock-settled SARs (in thousands)		Exercise Price per Share*			Remaining Contractual Term* (in years)		Aggregate Intrinsic Value (in millions)
Outstanding at beginning of year		122		$	79.29
Granted		116			109.98
Exercised		(3)			79.04
Forfeited or expired		(12)			80.97
Outstanding at end of year		223			94.90		8.6		$	9.2
Exercisable at end of year		29			79.40		8.1			1.6

* Weighted-average