v3.26.1
Share-Based Compensation (Tables)
3 Months Ended
Apr. 04, 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:
Three Months Ended
(In millions)April 4,
2026
March 29,
2025
Compensation expense$40 $34 
Income tax benefit(10)(8)
Total compensation expense included in net income$30 $26 
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:
March 1,
2026
March 1,
2025
Fair value of options at grant date$28.71$22.01 
Dividend yield0.1%0.1%
Expected volatility26.1%25.1%
Risk-free interest rate3.6%4.1%
Expected term (in years)4.84.8
Stock Option Activity
The stock option activity during the first quarter of 2026 is provided below:
(Options in thousands)Number of
Options
Weighted-
Average
Exercise Price
Outstanding at January 3, 20266,792 $64.61 
Granted883 98.65 
Exercised(1,005)(56.17)
Forfeited or expired(16)(84.88)
Outstanding at April 4, 20266,654 $70.36 
Exercisable at April 4, 20264,719 $63.07 
Restricted Stock Units Activity
The activity for restricted stock units during the first quarter of 2026 is provided below:
Units Payable in StockUnits 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 January 3, 2026, nonvested359 $75.99 673 $78.48 
Granted75 98.65 202 98.65 
Vested(98)(73.19)(213)(73.18)
Forfeited— — (8)(68.21)
Outstanding at April 4, 2026, nonvested336 $81.85 654 $86.40 
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:
Three Months Ended
(In millions)April 4,
2026
March 29,
2025
Fair value of awards vested$28 $20 
Cash paid21 14 
Performance Share Units Activity
The activity for our performance share units during the first quarter of 2026 is as follows:
(Units in thousands)Number of
Units
Weighted-
Average Grant
Date Fair Value
Outstanding at January 3, 2026, nonvested396 $81.57 
Granted156 98.65 
Outstanding at April 4, 2026, nonvested552 $86.40