XML 42 R26.htm IDEA: XBRL DOCUMENT
v3.22.0.1

Stockholders' Equity (Tables) | 12 Months Ended
--- | ---
Jan. 02, 2022
Equity [Abstract] |
Schedule of Restricted Stock Activity and Related Information, Restricted Stock | Restricted stock activity was as follows:
|  | Restricted Stock Units (RSU) (1) |  | Performance Stock Units (PSU)(2) |  | Weighted-Average Grant- Date Fair Value per Share
Units in thousands |  |  |  | RSU |  | PSU
Outstanding at December 30, 2018 |  | 1,840 |  |  | 660 |  |  | $ | 227.00 |  |  | $ | 196.99 |
Awarded |  | 698 |  |  | (41) |  |  | $ | 313.70 |  |  | $ | 254.52 |
Vested |  | (694) |  |  | (283) |  |  | $ | 205.51 |  |  | $ | 133.11 |
Cancelled |  | (144) |  |  | (65) |  |  | $ | 225.48 |  |  | $ | 181.79 |
Outstanding at December 29, 2019 |  | 1,700 |  |  | 271 |  |  | $ | 271.49 |  |  | $ | 258.66 |
Awarded |  | 878 |  |  | (78) |  |  | $ | 329.83 |  |  | $ | 344.22 |
Vested |  | (655) |  |  | (117) |  |  | $ | 239.19 |  |  | $ | 400.74 |
Cancelled |  | (202) |  |  | (76) |  |  | $ | 273.13 |  |  | $ | 266.63 |
Outstanding at January 3, 2021 |  | 1,721 |  |  | — |  |  | $ | 313.35 |  |  | $ | — |
Awarded |  | 259 |  |  | 456 |  |  | $ | 438.46 |  |  | $ | 471.63 |
Vested |  | (606) |  |  | (72) |  |  | $ | 303.08 |  |  | $ | 492.55 |
Cancelled |  | (244) |  |  | (56) |  |  | $ | 321.93 |  |  | $ | 475.38 |
Outstanding at January 2, 2022 |  | 1,130 |  |  | 328 |  |  | $ | 345.66 |  |  | $ | 466.42 |
_____________ (1)In connection with the GRAIL acquisition, replacement awards of 59,000 RSU were awarded to GRAIL employees in 2021. (2)The number of units reflect the estimated number of shares to be issued at the end of the performance period. Awarded units are presented net of performance adjustments.
Schedule of Restricted Stock Activity and Related Information, Performance Units | Restricted stock activity was as follows:
|  | Restricted Stock Units (RSU) (1) |  | Performance Stock Units (PSU)(2) |  | Weighted-Average Grant- Date Fair Value per Share
Units in thousands |  |  |  | RSU |  | PSU
Outstanding at December 30, 2018 |  | 1,840 |  |  | 660 |  |  | $ | 227.00 |  |  | $ | 196.99 |
Awarded |  | 698 |  |  | (41) |  |  | $ | 313.70 |  |  | $ | 254.52 |
Vested |  | (694) |  |  | (283) |  |  | $ | 205.51 |  |  | $ | 133.11 |
Cancelled |  | (144) |  |  | (65) |  |  | $ | 225.48 |  |  | $ | 181.79 |
Outstanding at December 29, 2019 |  | 1,700 |  |  | 271 |  |  | $ | 271.49 |  |  | $ | 258.66 |
Awarded |  | 878 |  |  | (78) |  |  | $ | 329.83 |  |  | $ | 344.22 |
Vested |  | (655) |  |  | (117) |  |  | $ | 239.19 |  |  | $ | 400.74 |
Cancelled |  | (202) |  |  | (76) |  |  | $ | 273.13 |  |  | $ | 266.63 |
Outstanding at January 3, 2021 |  | 1,721 |  |  | — |  |  | $ | 313.35 |  |  | $ | — |
Awarded |  | 259 |  |  | 456 |  |  | $ | 438.46 |  |  | $ | 471.63 |
Vested |  | (606) |  |  | (72) |  |  | $ | 303.08 |  |  | $ | 492.55 |
Cancelled |  | (244) |  |  | (56) |  |  | $ | 321.93 |  |  | $ | 475.38 |
Outstanding at January 2, 2022 |  | 1,130 |  |  | 328 |  |  | $ | 345.66 |  |  | $ | 466.42 |
_____________ (1)In connection with the GRAIL acquisition, replacement awards of 59,000 RSU were awarded to GRAIL employees in 2021. (2)The number of units reflect the estimated number of shares to be issued at the end of the performance period. Awarded units are presented net of performance adjustments.
Schedule of Pre-tax Intrinsic Values of Vested Restricted Stock | Pre-tax intrinsic values and fair value of vested restricted stock was as follows:
In millions | 2021 |  | 2020 |  | 2019
Pre-tax intrinsic value of outstanding restricted stock: |  |  |  |  |
RSU | $ | 430 |  |  | $ | 637 |  |  | $ | 565 |
PSU | $ | 125 |  |  | $ | — |  |  | $ | 90 |
Fair value of restricted stock vested: |  |  |  |  |
RSU | $ | 247 |  |  | $ | 206 |  |  | $ | 210 |
PSU | $ | 35 |  |  | $ | 47 |  |  | $ | 38 |
Schedule of Total Fair Value of Vested Restricted Stock | Pre-tax intrinsic values and fair value of vested restricted stock was as follows:
In millions | 2021 |  | 2020 |  | 2019
Pre-tax intrinsic value of outstanding restricted stock: |  |  |  |  |
RSU | $ | 430 |  |  | $ | 637 |  |  | $ | 565 |
PSU | $ | 125 |  |  | $ | — |  |  | $ | 90 |
Fair value of restricted stock vested: |  |  |  |  |
RSU | $ | 247 |  |  | $ | 206 |  |  | $ | 210 |
PSU | $ | 35 |  |  | $ | 47 |  |  | $ | 38 |
Schedule of Stock Option Activity Under all Stock Option Plans | Stock option activity was as follows:
Units in thousands | Options |  | Weighted-Average Exercise Price |  | Performance Stock Options(1) |  | Weighted-Average Exercise Price
Outstanding at December 30, 2018 | 192 |  |  | $ | 54.52 |  |  | — |  |  | $ | — |
Exercised | (134) |  |  | $ | 53.61 |  |  | — |  |  | $ | — |
Outstanding at December 29, 2019 | 58 |  |  | $ | 56.65 |  |  | — |  |  | $ | — |
Exercised | (48) |  |  | $ | 56.16 |  |  | — |  |  | $ | — |
Outstanding at January 3, 2021 | 10 |  |  | $ | 59.11 |  |  | — |  |  | $ | — |
Granted | — |  |  | $ | — |  |  | 48 |  |  | $ | 86.73 |
Exercised | (2) |  |  | $ | 20.06 |  |  | (21) |  |  | $ | 86.72 |
Cancelled | — |  |  | $ | — |  |  | (10) |  |  | $ | 89.63 |
Outstanding at January 2, 2022 | 8 |  |  | $ | 66.42 |  |  | 17 |  |  | $ | 85.54 |
_____________ (1)In connection with the GRAIL acquisition, we issued replacement performance stock options to GRAIL employees in 2021. The number of units reflect awards that have been granted and for which it is assumed to be probable that the underlying performance goals will be achieved.
Schedule of Share-based Compensation Expense for all Stock Awards | Share-based compensation expense, which includes expense for both equity and liability-classified awards, reported in our consolidated statements of income was as follows:
In millions | 2021 |  | 2020 |  | 2019
Cost of product revenue | $ | 23 |  |  | $ | 21 |  |  | $ | 19 |
Cost of service and other revenue | 4 |  |  | 4 |  |  | 4 |
Research and development | 276 |  |  | 74 |  |  | 66 |
Selling, general and administrative | 638 |  |  | 95 |  |  | 105 |
Share-based compensation expense, before taxes | 941 |  |  | 194 |  |  | 194 |
Related income tax benefits | (64) |  |  | (43) |  |  | (41) |
Share-based compensation expense, net of taxes | $ | 877 |  |  | $ | 151 |  |  | $ | 153 |
Schedule of Assumptions used to Estimate the Weighted-Average Fair Value Per Share for Stock Purchase under the Employee Stock Purchase Plan | The assumptions used for the specified reporting periods and the resulting estimates of weighted-average fair value per share for stock purchased under the ESPP were as follows:
| 2021 |  | 2020 |  | 2019
Risk-free interest rate | 0.06% - 0.12% |  | 0.11% - 2.04% |  | 1.88% - 2.56%
Expected volatility | 37% - 47% |  | 30% - 45% |  | 30% - 38%
Expected term | 0.5 - 1.0 year |  | 0.5 - 1.0 year |  | 0.5 - 1.0 year
Expected dividends | 0% |  | 0% |  | 0%
Weighted-average grant-date fair value per share | $ | 134.47 |  |  | $ | 75.57 |  |  | $ | 75.47 |

X
- Definition Tabular disclosure of share-based payment arrangement. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=120381028&loc=d3e5047-113901 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=120381028&loc=d3e5070-113901 + Details
Name: | us-gaap_DisclosureOfShareBasedCompensationArrangementsByShareBasedPaymentAwardTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_EquityAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (h)(1) -URI http://asc.fasb.org/extlink&oid=120381028&loc=d3e5070-113901 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB Topic 14.F) -URI http://asc.fasb.org/extlink&oid=122041274&loc=d3e301413-122809 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=120381028&loc=d3e5047-113901 + Details
Name: | us-gaap_ScheduleOfEmployeeServiceShareBasedCompensationAllocationOfRecognizedPeriodCostsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of number, weighted-average exercise price or conversion ratio, aggregate intrinsic value, and weighted-average remaining contractual term for outstanding restricted stock units that are fully vested and expected to vest. Includes, but is not limited to, unvested restricted stock units for which requisite service period has not been rendered but that are expected to vest based on achievement of performance condition, if forfeitures are recognized when they occur. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (e)(1) -URI http://asc.fasb.org/extlink&oid=120381028&loc=d3e5070-113901 + Details
Name: | us-gaap_ScheduleOfShareBasedCompensationArrangementByShareBasedPaymentAwardRestrictedStockUnitsVestedAndExpectedToVestTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- 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 -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=120381028&loc=d3e5070-113901 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=120381028&loc=d3e5070-113901 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c)(1) -URI http://asc.fasb.org/extlink&oid=120381028&loc=d3e5070-113901 + Details
Name: | us-gaap_ScheduleOfShareBasedCompensationStockOptionsActivityTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the significant assumptions used during the year to estimate the fair value of employee stock purchase plans, including, but not limited to: (a) expected term, (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 -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (f)(2) -URI http://asc.fasb.org/extlink&oid=120381028&loc=d3e5070-113901 + Details
Name: | us-gaap_ScheduleOfShareBasedPaymentAwardEmployeeStockPurchasePlanValuationAssumptionsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- 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 No definition available. + Details
Name: | us-gaap_ScheduleOfSharebasedCompensationRestrictedStockAndRestrictedStockUnitsActivityTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of number and weighted-average grant date fair value for nonvested performance shares. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=120381028&loc=d3e5070-113901 + Details
Name: | us-gaap_ShareBasedCompensationPerformanceSharesAwardUnvestedActivityTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration