Stock-based Compensation and Other Stock Plans - (Tables)

6 Months Ended

Jul. 02, 2022

Share-Based Payment Arrangement [Abstract]

Summary of Weighted-Average Assumptions of Fair Value Granted Using Black-Scholes Valuation Model

The following weighted-average assumptions were used in calculating the fair value of stock options granted during the three month period ended July 2, 2022, and the six month periods ended July 2, 2022 and July 3, 2021, using the Black-Scholes valuation model; no stock options were granted during the three month period ended July 3, 2021:

	Three Months Ended		Six Months Ended
	July 2, 2022	July 3, 2021	July 2, 2022	July 3, 2021
Expected term of option (in years)	3.74	N/A	5.14	5.33
Expected volatility factor	23.12%	N/A	22.61%	21.80%
Expected dividend yield	2.73%	N/A	2.68%	2.59%
Risk-free interest rate	2.73%	N/A	2.00%	0.67%

Summary of Stock Option Activity

A summary of stock option activity as of and for the six months ended July 2, 2022, is presented below:

	Shares (in thousands)	Exercise Price Per Share*		Remaining Contractual Term* (in years)	Aggregate Intrinsic Value (in millions)
Outstanding at January 1, 2022	2,432	$	151.32
Granted	289	211.41
Exercised	(118)	131.85
Forfeited or expired	(16)	183.40
Outstanding at July 2, 2022	2,587	158.72		5.7	$	106.0
Exercisable at July 2, 2022	1,954	147.97		4.7	98.2

* Weighted-average

Summary of Changes in Non-Vested Performance Awards

Changes to the company’s non-vested PSUs and RSUs during the six months ended July 2, 2022, are as follows:

	Shares (in thousands)	Fair Value Price per Share*
Non-vested PSUs and RSUs at January 1, 2022	215	$	180.29
Granted	111	206.58
Vested	—	—
Cancellations and other	(6)	192.40
Non-vested PSUs and RSUs at July 2, 2022	320	189.21

* Weighted-average

Summary of Weighted-Average Assumptions of Fair Value Granted Using Black-Scholes Valuation Model

The following weighted-average assumptions were used in calculating the fair value of stock-settled SARs granted during the six months ended July 2, 2022, and July 3, 2021, using the Black-Scholes valuation model:

	Six Months Ended
	July 2, 2022	July 3, 2021
Expected term of stock-settled SARs (in years)	4.02	3.94
Expected volatility factor	23.09%	22.50%
Expected dividend yield	2.68%	2.59%
Risk-free interest rate	1.96%	0.19%

The following weighted-average assumptions were used in calculating the fair value of cash-settled SARs granted during the six months ended July 2, 2022, and July 3, 2021, using the Black-Scholes valuation model:

	Six Months Ended
	July 2, 2022	July 3, 2021
Expected term of cash-settled SARs (in years)	3.58	3.59
Expected volatility factor	23.68%	22.49%
Expected dividend yield	2.87%	2.20%
Risk-free interest rate	2.85%	0.45%

Summary of Changes in SARs

A summary of stock-settled SARs as of and for the six months ended July 2, 2022, are as follows:

	Stock-settled SARs (in thousands)	Exercise Price Per Share*		Remaining Contractual Term* (in years)	Aggregate Intrinsic Value (in millions)
Outstanding at January 1, 2022	397	$	160.09
Granted	75	211.67
Exercised	(11)	153.13
Forfeited or expired	(41)	168.44
Outstanding at July 2, 2022	420	168.65		6.7	$	13.4
Exercisable at July 2, 2022	273	154.97		5.5	11.8

* Weighted-average

Changes to the company’s non-vested cash-settled SARs during the six months ended July 2, 2022, are as follows:

	Cash-settled SARs (in thousands)	Fair Value Price per Share*
Non-vested cash-settled SARs at January 1, 2022	2	$	47.13
Granted	1	31.67
Vested	(1)	41.69
Non-vested cash-settled SARs at July 2, 2022	2	34.56

* Weighted-average