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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

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