STOCK OPTIONS AND OTHER SHARE-BASED COMPENSATION

3 Months Ended

Mar. 29, 2024

Share-Based Payment Arrangement [Abstract]

STOCK OPTIONS AND OTHER SHARE-BASED COMPENSATION

NOTE I: STOCK OPTIONS AND OTHER SHARE-BASED COMPENSATION

At March 29, 2024, we had stock options or other share-based compensation awards outstanding under two shareholder-approved employee stock incentive plans, as well as under employee stock incentive plans assumed by L3Harris (collectively, the “L3Harris SIPs”). The compensation cost related to our share-based awards that was charged against income for the quarters ended March 29, 2024 and March 31, 2023 was $26 million and $23 million, respectively.

Awards granted to participants under L3Harris SIPs and the weighted-average grant-date fair value per share or unit during the quarters ended March 29, 2024 and March 31, 2023 are as follows:

	Quarter Ended March 29, 2024			Quarter Ended March 31, 2023
(In millions, except per share/units amounts)	Shares or Units	Weighted-Average Grant-Date Fair Value Per Share or Unit		Shares or Units	Weighted-Average Grant-Date Fair Value Per Share or Unit
Stock option shares granted(1)	0.4	$	50.97	0.4	$	54.81
Restricted stock units granted(2)	0.1	$	213.15	0.1	$	210.84
Performance share units granted(3)	0.2	$	230.09	0.2	$	223.09

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(1)Other than certain stock options granted in connection with new hires, our stock options generally ratably vest in equal amounts over a three-year period.

(2)Other than certain restricted stock units granted in connection with new hires, our restricted stock units generally cliff vest after three-years.

(3)Our performance share units are subject to performance criteria and generally vest after the three-year performance period.

The aggregate number of shares of our common stock issued under L3Harris SIPs, net of shares withheld for tax purposes, was 0.5 million and 0.3 million for the quarters ended March 29, 2024 and March 31, 2023, respectively.

See Note 10: Stock Options and Other Share-Based Compensation in our Fiscal 2023 Form 10-K for additional information regarding the L3Harris SIPs.