Stock-based Compensation and Other Stock Plans (Tables)

6 Months Ended

Jul. 01, 2017

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 six months ended July 1, 2017, and July 2, 2016, using the Black-Scholes valuation model; there were no stock options granted during the three months ended July 1, 2017, or July 2, 2016:

	Six Months Ended
	July 1, 2017	July 2, 2016
Expected term of option (in years)	5.15	5.05
Expected volatility factor	22.01%	22.17%
Expected dividend yield	1.63%	1.77%
Risk-free interest rate	1.78%	1.04%

Summary of Stock Option Activity

A summary of stock option activity as of and for the six months ended July 1, 2017, is presented below:

	Shares (in thousands)		Exercise Price Per Share*		Remaining Contractual Term* (in years)		Aggregate Intrinsic Value (in millions)
Outstanding at December 31, 2016		3,011	$	100.78
Granted		655		168.71
Exercised		(253)		89.07
Forfeited or expired		(71)		153.52
Outstanding at July 1, 2017		3,342		113.86		6.8	$	154.2
Exercisable at July 1, 2017		2,133		90.60		5.5		143.7

* Weighted-average

Nonvested Performance Shares [Member]

Summary of Changes in Non-Vested Performance Awards

Changes to the company’s non-vested performance awards during the six months ended July 1, 2017, are as follows:

	Shares (in thousands)		Fair Value Price per Share*
Non-vested performance awards at December 31, 2016		207	$	141.94
Granted		77		168.70
Vested		(5)		142.78
Cancellations and other		(17)		147.78
Non-vested performance awards at July 1, 2017		262		149.31

* Weighted-average

Stock-Settled SARs [Member]

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 1, 2017, and July 2, 2016, using the Black-Scholes valuation model; there were no stock-settled SARs granted during the three months ended July 1, 2017, or July 2, 2016:

	Six Months Ended
	July 1, 2017	July 2, 2016
Expected term of stock-settled SARs (in years)	3.99	4.03
Expected volatility factor	19.39%	20.09%
Expected dividend yield	1.46%	1.66%
Risk-free interest rate	1.55%	1.11%

Summary of Changes in SARs

Changes to the company’s stock-settled SARs during the six months ended July 1, 2017, are as follows:

	Stock-settled SARs (in thousands)		Exercise Price Per Share*		Remaining Contractual Term* (in years)		Aggregate Intrinsic Value (in millions)
Outstanding at December 31, 2016		303	$	125.38
Granted		100		168.73
Exercised		(8)		106.01
Forfeited or expired		(20)		123.06
Outstanding at July 1, 2017		375		137.52		8.1	$	8.8
Exercisable at July 1, 2017		179		118.55		7.1		7.1

* Weighted-average

Cash-Settled Stock Appreciation Rights [Member]

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 cash-settled SARs granted during the six months ended July 1, 2017, and July 2, 2016, using the Black-Scholes valuation model; no cash-settled SARs were granted during the three months ended July 1, 2017, or July 2, 2016:

	Six Months Ended
	July 1, 2017	July 2, 2016
Expected term of cash-settled SARs (in years)	3.62	3.68
Expected volatility factor	19.56%	19.20%
Expected dividend yield	1.55%	1.60%
Risk-free interest rate	1.55%	0.71%

Summary of Changes in SARs

Changes to the company’s non-vested cash-settled SARs during the six months ended July 1, 2017, are as follows:

	Cash-settled SARs (in thousands)		Fair Value Price per Share*
Non-vested cash-settled SARs at December 31, 2016		7	$	40.83
Granted		1		18.10
Vested		(3)		33.47
Non-vested cash-settled SARs at July 1, 2017		5		24.94

* Weighted-average