Share-Based Compensation Plans

3 Months Ended

Mar. 30, 2019

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

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



	Three Months Ended
	March 30, 2019			March 31, 2018
Share-based compensation expense included in:
Costs of sales	$	4		$	2
Selling, general and administrative expenses	16			11
Research and development expenditures	7			4
Share-based compensation expense included in Operating earnings	27			17
Tax benefit	(6		)	(4		)
Share-based compensation expense, net of tax	$	21		$	13
Decrease in basic earnings per share	$	(0.13	)	$	(0.08	)
Decrease in diluted earnings per share	$	(0.12	)	$	(0.08	)

During the three months ended March 30, 2019, the Company granted 0.5 million restricted stock units ("RSUs") and 0.1 million market stock units ("MSUs") with an aggregate grant-date fair value of $56 million and $7 million, respectively, and 0.2 million stock options and 0.2 million performance options ("POs") with an aggregate grant-date fair value of $6 million and $7 million, respectively. The share-based compensation expense will generally be recognized over the vesting period of three years.

The Company granted an additional 0.4 million of restricted stock in connection with the acquisition of VaaS, with an aggregate grant-date fair value of $38 million related to compensation withheld from the purchase price that will be expensed over an average service period of one year.