Share-Based Compensation Plans

9 Months Ended

Sep. 26, 2020

Share-based Payment Arrangement [Abstract]

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


	Three Months Ended				Nine Months Ended
	September 26, 2020		September 28, 2019		September 26, 2020		September 28, 2019
Share-based compensation expense included in:
Costs of sales	$	3	$	3	$	12	$	11
Selling, general and administrative expenses	18		16		57		46
Research and development expenditures	10		11		31		30
Share-based compensation expense included in Operating earnings	31		30		100		87
Tax benefit	(5)		(5)		(17)		(16)
Share-based compensation expense, net of tax	$	26	$	25	$	83	$	71
Decrease in basic earnings per share	$	(0.15)	$	(0.15)	$	(0.49)	$	(0.43)
Decrease in diluted earnings per share	$	(0.15)	$	(0.14)	$	(0.48)	$	(0.40)

During the nine months ended September 26, 2020, the Company granted 0.5 million restricted stock units ("RSUs"), 0.03 million performance stock units ("PSUs") and 0.1 million market stock units ("MSUs") with an aggregate grant-date fair value of $67 million, $7 million, and $9 million, respectively, and 0.2 million stock options and 0.1 million performance options ("POs") with an aggregate grant-date fair value of $6 million and $9 million, respectively. The share-based compensation expense will generally be recognized over the vesting period of three years.

During the nine months ended September 26, 2020, the Company granted 0.1 million shares of restricted stock in connection with acquisitions, for an aggregate grant-date fair value of $9 million related to compensation withheld from the purchase prices that will be expensed over an average service period of two years.