Stock-Based Compensation

6 Months Ended

Jul. 02, 2021

Share-based Payment Arrangement [Abstract]

Stock-Based Compensation

NOTE 10. STOCK-BASED COMPENSATION

Our stock-based compensation program (the “Stock Plan”) provides for the grant of stock appreciation rights, performance stock units, restricted stock units, restricted stock awards, and performance stock awards (collectively, “Stock Awards”), stock options, or any other stock-based award. As of July 2, 2021, approximately 19 million shares of our common stock were available for subsequent issuance under the Stock Plan. For a full description of our stock-based compensation program refer to Note 17 of our 2020 Annual Report on Form 10-K.

Stock-based Compensation Expense

Stock-based compensation has been recognized as a component of Selling, general and administrative expenses in the Consolidated Condensed Statements of Earnings based on the portion of the awards that are ultimately expected to vest.

The following summarizes the components of our stock-based compensation expense under the Stock Plan ($ in millions):

	Three Months Ended				Six Months Ended
	July 2, 2021		June 26, 2020		July 2, 2021		June 26, 2020
Stock Awards:
Pretax compensation expense	$	12.2	$	10.1	$	22.7	$	18.2
Income tax benefit	(1.9)		(1.5)		(3.8)		(2.9)
Stock Award expense, net of income taxes	10.3		8.6		18.9		15.3
Stock options:
Pretax compensation expense	8.0		6.8		14.1		11.5
Income tax benefit	(1.3)		(1.1)		(2.5)		(1.8)
Stock option expense, net of income taxes	6.7		5.7		11.6		9.7
Total stock-based compensation:
Pretax compensation expense	20.2		16.9		36.8		29.7
Income tax benefit	(3.2)		(2.6)		(6.3)		(4.7)
Total stock-based compensation expense, net of income taxes	$	17.0	$	14.3	$	30.5	$	25.0

The following summarizes the unrecognized compensation cost for the Stock Plan awards as of July 2, 2021. This compensation cost is expected to be recognized over a weighted average period of approximately two years, representing the remaining service period related to the awards. Future compensation amounts will be adjusted for any changes in estimated forfeitures ($ in millions):

Stock Awards	$	94.8
Stock options	59.8
Total unrecognized compensation cost	$	154.6