Stock-Based Compensation (Tables)

6 Months Ended

Jul. 02, 2023

Share-Based Payment Arrangement [Abstract]

Share-Based Payment Arrangement, Expensed and Capitalized, Amount

The components and classification of stock-based compensation expense related to stock options, Restricted Stock Units (“RSUs”), and Performance Stock Units (“PSUs”) directly attributable to those employees specifically

identified as employees of the Company and allocations from the Parent for fiscal years 2022, 2021 and 2020 were as follows:

(Dollars in Millions)	2022		2021		2020
Stock options	$	43	$	41	$	37
RSUs	74		73		67
PSUs	20		27		11
Stock-based compensation expense	137		141		115
Cost of sales	30		33		29
Selling, general and administrative expenses	107		108		86
Stock-based compensation expense	$	137	$	141	$	115

The components and classification of stock-based compensation expense related to stock options, RSUs, and PSUs directly attributable to those employees specifically identified as employees of the Company and allocations from the Parent for the fiscal three and six months ended July 2, 2023 and July 3, 2022, were as follows:

	Fiscal Three Months Ended				Fiscal Six Months Ended
(Dollars in Millions)	July 2, 2023		July 3, 2022		July 2, 2023		July 3, 2022
Cost of sales	$	12	$	10	$	16	$	18
Selling, general, and administrative expenses	26		31		57		58
Stock-based compensation expense	$	38	$	41	$	73	$	76