Share-Based Compensation Plans

3 Months Ended

Apr. 02, 2022

Share-based Payment Arrangement [Abstract]

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


	Three Months Ended
	April 2, 2022		April 3, 2021
Share-based compensation expense included in:
Costs of sales	$	6	$	4
Selling, general and administrative expenses	21		17
Research and development expenditures	10		8
Share-based compensation expense included in Operating earnings	37		29
Tax benefit	(8)		(6)
Share-based compensation expense, net of tax	$	29	$	23
Decrease in basic earnings per share	$	(0.17)	$	(0.14)
Decrease in diluted earnings per share	$	(0.17)	$	(0.13)

During the three months ended April 2, 2022, the Company granted 0.7 million restricted stock units (RSUs), 0.1 million performance stock units (PSUs) and 0.1 million market stock units (MSUs) with an aggregate grant-date fair value of $140 million, $16 million, and $10 million, respectively, and 0.1 million stock options and 0.1 million performance options (POs) with an aggregate grant-date fair value of $7 million and $10 million, respectively. The share-based compensation expense will generally be recognized over the vesting period of three years.

During the three months ended April 2, 2022, the Company granted 0.01 million shares of restricted stock with an aggregate grant-date fair value of $3 million and 0.02 million shares of RSUs with a grant-date fair value of $4 million (included in the amounts noted above) to certain key employees as share-based compensation in connection with the acquisition of Ava, which will be expensed over an average service period of 2 years.