Stock-based Compensation and Other Stock Plans (Tables)

3 Months Ended

Apr. 01, 2017

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 the three months ended April 1, 2017, and April 2, 2016, using the Black-Scholes valuation model:

	Three Months Ended
	April 1, 2017	April 2, 2016
Expected term of option (in years)	5.15	5.05
Expected volatility factor	22.01%	22.17%
Expected dividend yield	1.63%	1.77%
Risk-free interest rate	1.78%	1.04%

Summary of Stock Option Activity

A summary of stock option activity as of and for the three months ended April 1, 2017, is presented below:

	Shares (in thousands)		Exercise Price Per Share*		Remaining Contractual Term* (in years)		Aggregate Intrinsic Value (in millions)
Outstanding at December 31, 2016		3,011	$	100.78
Granted		655		168.71
Exercised		(158)		89.58
Forfeited or expired		(2)		139.82
Outstanding at April 1, 2017		3,506		113.95		7.0	$	191.9
Exercisable at April 1, 2017		2,227		90.49		5.8		174.1

* Weighted-average

Nonvested Performance Shares [Member]

Summary of Changes in Non-Vested Performance Awards

Changes to the company’s non-vested performance awards during the three months ended April 1, 2017, are as follows:

	Shares (in thousands)		Fair Value Price per Share*
Non-vested performance awards at December 31, 2016		207	$	141.94
Granted		77		168.70
Vested		–		–
Cancellations and other		(9)		141.13
Non-vested performance awards at April 1, 2017		275		149.36

* 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 the three months ended April 1, 2017, and April 2, 2016, using the Black-Scholes valuation model:

	Three Months Ended
	April 1, 2017	April 2, 2016
Expected term of stock-settled SARs (in years)	3.99	4.03
Expected volatility factor	19.39%	20.09%
Expected dividend yield	1.46%	1.66%
Risk-free interest rate	1.55%	1.11%

Summary of Changes in SARs

Changes to the company’s stock-settled SARs during the three months ended April 1, 2017, are as follows:

	Stock-settled SARs (in thousands)		Exercise Price Per Share*		Remaining Contractual Term* (in years)		Aggregate Intrinsic Value (in millions)
Outstanding at December 31, 2016		303	$	125.38
Granted		100		168.73
Exercised		(7)		104.35
Forfeited or expired		(17)		121.92
Outstanding at April 1, 2017		379		137.42		8.3	$	11.8
Exercisable at April 1, 2017		182		118.74		7.3		9.1

* 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 the three months ended April 1, 2017, and April 2, 2016, using the Black-Scholes valuation model:

	Three Months Ended
	April 1, 2017	April 2, 2016
Expected term of cash-settled SARs (in years)	3.90	3.92
Expected volatility factor	19.27%	20.07%
Expected dividend yield	1.55%	1.65%
Risk-free interest rate	1.50%	0.90%

Summary of Changes in SARs

Changes to the company’s non-vested cash-settled SARs during the three months ended April 1, 2017, are as follows:

	Cash-settled SARs (in thousands)		Fair Value Price per Share*
Non-vested cash-settled SARs at December 31, 2016		7	$	40.83
Granted		1		23.81
Vested		(3)		42.16
Non-vested cash-settled SARs at April 1, 2017		5		32.33

* Weighted-average