Stock Compensation (Tables)

6 Months Ended

Jul. 02, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of Compensation Expense for Equity-Based Programs and Related Income Tax Benefits

For the periods presented, compensation expense for all types of equity-based programs and the related income tax benefit recognized was as follows:

	Quarter ended				Year-to-date period ended
(millions)	July 2, 2016		July 4, 2015		July 2, 2016		July 4, 2015
Pre-tax compensation expense	$	17	$	13	$	33	$	25
Related income tax benefit	$	6	$	5	$	12	$	9

Summary of Stock Option Activity

Year-to-date period ended July 2, 2016:

Employee and director stock options	Shares (millions)		Weighted- average exercise price		Weighted- average remaining contractual term (yrs.)	Aggregate intrinsic value (millions)
Outstanding, beginning of period	19		$	58
Granted	3		76
Exercised	(4	)	56
Forfeitures and expirations	—		—
Outstanding, end of period	18		$	61	7.2	$	335
Exercisable, end of period	10		$	57	6.2	$	247

Year-to-date period ended July 4, 2015:

Employee and director stock options	Shares (millions)		Weighted- average exercise price		Weighted- average remaining contractual term (yrs.)	Aggregate intrinsic value (millions)
Outstanding, beginning of period	21		$	56
Granted	3		64
Exercised	(2	)	53
Forfeitures and expirations	—		—
Outstanding, end of period	22		$	57	7.1	$	131
Exercisable, end of period	13		$	55	6.1	$	114

Schedule of Fair Value Assumptions

The fair value was estimated using the following assumptions:

	Weighted- average expected volatility		Weighted- average expected term (years)	Weighted- average risk-free interest rate		Dividend yield
Grants within the quarter ended July 2, 2016:	17	%	6.9	1.60	%	2.60	%
Grants within the quarter ended July 4, 2015:	16	%	6.9	1.98	%	3.00	%

Maximum Future Value of Performance Shares

Based on the market price of the Company’s common stock at July 2, 2016, the maximum future value that could be awarded to employees on the vesting date for all outstanding performance share awards was as follows:

(millions)	July 2, 2016
2014 Award	$	32
2015 Award	$	27
2016 Award	$	31

Schedule of Restricted Stock Activity

Year-to-date period ended July 2, 2016:

Employee restricted stock and restricted stock units	Shares (thousands)		Weighted-average grant-date fair value
Non-vested, beginning of year	806		$	58
Granted	574		70
Vested	(51	)	55
Forfeited	(55	)	62
Non-vested, end of period	1,274		$	63

Year-to-date period ended July 4, 2015:

Employee restricted stock and restricted stock units	Shares (thousands)		Weighted-average grant-date fair value
Non-vested, beginning of year	346		$	54
Granted	563		58
Vested	(79	)	51
Forfeited	(17	)	56
Non-vested, end of period	813		$	57