Share-Based Compensation Plans

6 Months Ended

Jul. 01, 2023

Share-Based Payment Arrangement [Abstract]

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


	Three Months Ended				Six Months Ended
	July 1, 2023		July 2, 2022		July 1, 2023		July 2, 2022
Share-based compensation expense included in:
Costs of sales	$	10	$	7	$	20	$	13
Selling, general and administrative expenses	29		25		59		46
Research and development expenditures	14		12		29		22
Share-based compensation expense included in Operating earnings	53		44		108		81
Tax benefit	(11)		(9)		(22)		(17)
Share-based compensation expense, net of tax	$	42	$	35	$	86	$	64
Decrease in basic earnings per share	$	(0.25)	$	(0.21)	$	(0.51)	$	(0.38)
Decrease in diluted earnings per share	$	(0.24)	$	(0.21)	$	(0.50)	$	(0.37)

During the six months ended July 1, 2023, the Company granted 0.6 million restricted stock units (RSUs) and 0.1 million performance stock units (PSUs) and 0.1 million market stock units (MSUs) with an aggregate grant-date fair value of $166 million, $19 million and $13 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 $13 million, respectively. The share-based compensation expense will generally be recognized over the vesting period of three years.