Share-Based Compensation Plans

3 Months Ended

Apr. 01, 2017

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

Compensation expense for the Company’s share-based compensation plans was as follows:



	Three Months Ended
	April 1, 2017			April 2, 2016
Share-based compensation expense included in:
Costs of sales	$	2		$	2
Selling, general and administrative expenses	11			12
Research and development expenditures	4			3
Share-based compensation expense included in Operating earnings	17			17
Tax benefit	6			5
Share-based compensation expense, net of tax	$	11		$	12
Decrease in basic earnings per share	$	(0.07	)	$	(0.07	)
Decrease in diluted earnings per share	$	(0.06	)	$	(0.07	)

During the three months ended April 1, 2017, the Company granted 0.5 million RSUs and market stock units ("MSUs") with an aggregate grant-date fair value of $42 million and 0.9 million stock options and performance options ("POs") with an aggregate grant-date fair value of $13 million. Share-based compensation expense will generally be recognized over the vesting period of three years.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

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