XML 32 R21.htm IDEA: XBRL DOCUMENT v3.22.2.2
Stockholders’ Equity (Tables)
 9 Months Ended
Oct. 02, 2022
Equity [Abstract]  
Schedule of Restricted Stock Activity and Related Information, Restricted Stock
Restricted stock activity was as follows:
Restricted
Stock Units
(RSU)
Performance
Stock Units
(PSU)(1)
Weighted-Average Grant Date Fair Value per Share
Units in thousandsRSUPSU
Outstanding at January 2, 20221,130 328 $345.66 $466.42 
Awarded1,175 (111)$316.48 $476.80 
Vested(109)— $386.20 $— 
Cancelled(149)(34)$343.26 $423.89 
Outstanding at October 2, 20222,047 183 $326.88 $468.11 
_____________
(1)The number of units reflect the estimated number of shares to be issued at the end of the performance period. Awarded units are presented net of performance adjustments.
Schedule of Restricted Stock Activity and Related Information, Performance Units
Restricted stock activity was as follows:
Restricted
Stock Units
(RSU)
Performance
Stock Units
(PSU)(1)
Weighted-Average Grant Date Fair Value per Share
Units in thousandsRSUPSU
Outstanding at January 2, 20221,130 328 $345.66 $466.42 
Awarded1,175 (111)$316.48 $476.80 
Vested(109)— $386.20 $— 
Cancelled(149)(34)$343.26 $423.89 
Outstanding at October 2, 20222,047 183 $326.88 $468.11 
_____________
(1)The number of units reflect the estimated number of shares to be issued at the end of the performance period. Awarded units are presented net of performance adjustments.
Schedule of Stock Option Activity Under all Stock Option Plans
Stock option activity was as follows:
Units in thousandsOptionsWeighted-Average
Exercise Price
Performance Stock Options(1)
Weighted-Average
Exercise Price
Outstanding at January 2, 20228 $66.42 17 $85.54 
Granted180 $330.25 — $— 
Exercised(1)$6.55 — $— 
Outstanding at October 2, 2022187 $319.72 17 $85.54 
Exercisable at October 2, 20228 $71.09 — $— 
_____________
(1)The number of units reflect awards that have been granted and for which it is assumed to be probable that the underlying performance goals will be achieved.
Schedule of Share-based Payment Arrangement, Liability - Classified Awards, Activity
Cash-based equity incentive award activity was as follows:
In millions
Outstanding at January 2, 2022$184 
Granted107 
Vested and paid in cash(32)
Cancelled(33)
Outstanding at October 2, 2022$226 
Estimated liability as of October 2, 2022 (included in accrued liabilities)$24 
Schedule of Share-based Compensation Expense for all Stock Awards
Share-based compensation expense, which includes expense for both equity and liability-classified awards, reported in our condensed consolidated statements of operations was as follows:
In millionsQ3 2022Q3 2021YTD 2022YTD 2021
Cost of product revenue$7 $7 $20 $22 
Cost of service and other revenue2 1 4 3 
Research and development37 193 112 243 
Selling, general and administrative37 496 130 576 
Share-based compensation expense before taxes83 697 266 844 
Related income tax benefits(18)(29)(60)(57)
Share-based compensation expense, net of taxes$65 $668 $206 $787 
Schedule of Assumptions used to Estimate the Weighted-Average Fair Value Per Share for Stock Purchase under the Employee Stock Purchase Plan
The assumptions used and the resulting estimate of weighted-average fair value per share for stock purchased under the ESPP during YTD 2022 were as follows:
Employee Stock Purchase Rights
Risk-free interest rate
0.06% - 2.98%
Expected volatility
37% - 51%
Expected term
0.5 - 1.0 year
Expected dividends0 %
Weighted-average grant-date fair value per share$50.22