v3.25.4

Share-Based Compensation (Tables) | 12 Months Ended
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Jan. 03, 2026
Share-Based Payment Arrangement [Abstract] |
Compensation expense included in net income | Compensation expense included in net income for our share-based compensation plans is as follows:
(In millions) | 2025 | 2024 | 2023
Compensation expense | $ | 81 |  | $ | 66 |  | $ | 94 |
Income tax benefit | (20) |  | (16) |  | (23) |
Total compensation expense included in net income | $ | 61 |  | $ | 50 |  | $ | 71 |
Weighted-average fair value of stock options and assumptions used in option-pricing model | The assumptions used in our option-pricing model for these grants and the weighted-average fair value for these options are as follows:
| 2025 | 2024 | 2023
Fair value of options at grant date | $ | 22.01 | $ | 27.69 | $ | 23.83
Dividend yield | 0.1% | 0.1% | 0.1%
Expected volatility | 25.1% | 27.2% | 29.4%
Risk-free interest rate | 4.1% | 4.3% | 4.2%
Expected term (in years) | 4.8 | 4.8 | 4.8
Stock option activity | The stock option activity during 2025 is provided below:
(Options in thousands) | Number of Options | Weighted- Average Exercise Price
Outstanding at beginning of year | 6,649 |  | $ | 61.70 |
Granted | 1,022 |  | 74.73 |
Exercised | (809) |  | (52.23) |
Forfeited or expired | (70) |  | (79.25) |
Outstanding at end of year | 6,792 |  | $ | 64.61 |
Exercisable at end of year | 4,791 |  | $ | 58.58 |
Activity for Restricted Stock Units | The 2025 activity for restricted stock units is provided below:
| Units Payable in Stock |  | Units Payable in Cash
(Shares/Units in thousands) | Number of Shares | Weighted- Average Grant Date Fair Value |  | Number of Units | Weighted- Average Grant Date Fair Value
Outstanding at beginning of year, nonvested | 331 |  | $ | 75.50 |  |  | 631 |  | $ | 77.75 |
Granted | 129 |  | 73.07 |  |  | 259 |  | 74.72 |
Vested | (101) |  | (70.65) |  |  | (195) |  | (71.14) |
Forfeited | — |  | — |  |  | (22) |  | (78.39) |
Outstanding at end of year, nonvested | 359 |  | $ | 75.99 |  |  | 673 |  | $ | 78.48 |
Fair value of awards vested and cash paid during respective periods | The fair value of the restricted stock unit awards that vested and/or amounts paid under these awards is as follows:
(In millions) | 2025 | 2024 | 2023
Fair value of awards vested | $ | 22 |  | $ | 42 |  | $ | 45 |
Cash paid | 15 |  | 33 |  | 34 |
The fair value of the performance share units that vested and/or amounts paid under these awards is as follows:
(In millions) | 2025 | 2024 | 2023
Fair value of awards vested | $ | 18 |  | $ | 13 |  | $ | 19 |
Cash paid | 16 |  | 35 |  | 27 |
Activity for Performance Share Units | The 2025 activity for our performance share units is as follows:
(Units in thousands) | Number of Units | Weighted- Average Grant Date Fair Value
Outstanding at beginning of year, nonvested | 394 |  | $ | 80.81 |
Granted | 202 |  | 74.73 |
Vested | (200) |  | (73.19) |
Outstanding at end of year, nonvested | 396 |  | $ | 81.57 |

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- Definition The total fair value of equity-based awards other than options for which the grantee gained the right during the reporting period, by satisfying service or performance requirements, to receive or retain shares or units, other instruments, or cash in accordance with the terms of the arrangement. + References No definition available. + Details
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- Definition Tabular disclosure of allocation of amount expensed and capitalized for award under share-based payment arrangement to statement of income or comprehensive income and statement of financial position. Includes, but is not limited to, corresponding line item in financial statement. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (h)(1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480429/718-10-50-2 + Details
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- Definition Tabular disclosure for stock option plans. Includes, but is not limited to, outstanding awards at beginning and end of year, grants, exercises, forfeitures, and weighted-average grant date fair value. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (c)(1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480429/718-10-50-2 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (d) -SubTopic 10 -Topic 718 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480429/718-10-50-2 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (e) -SubTopic 10 -Topic 718 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480429/718-10-50-2 + Details
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- Definition Tabular disclosure of the significant assumptions used during the year to estimate the fair value of stock options, including, but not limited to: (a) expected term of share options and similar instruments, (b) expected volatility of the entity's shares, (c) expected dividends, (d) risk-free rate(s), and (e) discount for post-vesting restrictions. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 718 -SubTopic 10 -Subparagraph (f)(2) -Name Accounting Standards Codification -Paragraph 2 -Section 50 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480429/718-10-50-2 + Details
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- Definition Disclosure of the number and weighted-average grant date fair value for restricted stock and restricted stock units that were outstanding at the beginning and end of the year, and the number of restricted stock and restricted stock units that were granted, vested, or forfeited during the year. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (c)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480429/718-10-50-2 + Details
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