Share-Based Compensation Plans And Other Incentive Plans

6 Months Ended

Jun. 30, 2012

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

Share-Based Compensation Plans And Other Incentive Plans

Share-Based Compensation Plans

Compensation expense for the Company’s employee stock options, stock appreciation rights, employee stock purchase plans, restricted stock and restricted stock units (“RSUs”) was as follows:

	Three Months Ended						Six Months Ended
	June 30, 2012			July 2, 2011			June 30, 2012			July 2, 2011
Share-based compensation expense included in:
Costs of sales	$	7		$	5		$	13		$	8
Selling, general and administrative expenses	31			25			57			54
Research and development expenditures	14			9			25			16
Share-based compensation expense included in Operating earnings	52			39			95			78
Tax benefit	21			13			34			25
Share-based compensation expense, net of tax	$	31		$	26		$	61		$	53
Decrease in basic earnings per share	$	(0.11	)	$	(0.08	)	$	(0.20	)	$	(0.16	)
Decrease in diluted earnings per share	$	(0.10	)	$	(0.08	)	$	(0.20	)	$	(0.15	)
Share-based compensation expense in discontinued operations	$	—		$	5		$	—		$	13

For the three months ended June 30, 2012, the Company granted 1.5 million and 1.2 million RSUs and stock options, respectively. The total compensation expense, net of estimated forfeitures, for these RSUs and stock options was $62 million and $11 million, respectively. For the six months ended June 30, 2012, the Company granted 1.5 million RSUs and 1.2 million stock options. The total compensation expense, net of estimated forfeitures, for these RSUs and stock options was $63 million and $11 million, respectively. The expense will be recognized over a weighted average vesting period of 3 years.

Employee Stock Purchase Plans

The employee stock purchase plans allow eligible participants to purchase shares of the Company's common stock through payroll deductions of eligible compensation on an after-tax basis. Effective April 1, 2012, the Company increased the maximum purchase from 10% to 20% of eligible compensation. Plan participants cannot purchase more than $25,000 of stock in any calendar year.