v3.26.3
Stock-based Compensation and Other Stock Plans (Tables)
 9 Months Ended
Oct. 03, 2026
Share-Based Payment Arrangement [Abstract]  
Schedule of Weighted-Average Assumptions of Fair Value Granted Using Black-Scholes Valuation Model
The following weighted-average assumptions were used in calculating the fair value of stock options granted during the nine month periods ended October 3, 2026, and September 27, 2025, using the Black-Scholes valuation model:

Nine Months Ended
October 3,
2026		September 27,
2025
Expected term of stock option (in years)
4.574.57
Expected volatility factor23.82%23.86%
Expected dividend yield2.58%2.52%
Risk-free interest rate3.63%4.36%
Schedule of Stock Option Activity
Below is a summary of stock option activity as of and for the nine months ended October 3, 2026:
Shares
(in thousands)
Exercise
Price Per
Share*
Remaining
Contractual
Term*
(in years)
Aggregate
Intrinsic
Value
(in millions)
Outstanding at January 3, 20261,528 $214.14 
Granted199 378.55 
Exercised(314)200.68 
Forfeited or expired(21)339.16 
Outstanding at October 3, 20261,392 238.75 5.3$183.1 
Exercisable at October 3, 20261,014 198.29 4.1173.0 
*Weighted-average
Schedule of Changes in Non-Vested PSUs
Changes to the company’s non-vested PSUs during the nine months ended October 3, 2026, are as follows:
Shares
(in thousands)
Fair Value
Price per
Share*
Non-vested PSUs at January 3, 202680 $305.17 
Granted43 378.55 
Performance assumption change**(20)305.13 
Cancellations and other(1)349.72 
Non-vested PSUs at October 3, 2026102 335.50 
*Weighted-average
**Reflects the number of PSUs adjusted based on performance metrics.
Schedule of Changes in Nonvested RSUs Activity
Changes to the company’s non-vested RSUs during the nine months ended October 3, 2026, are as follows:
Shares
(in thousands)
Fair Value
Price per
Share*
Non-vested RSUs at January 3, 202663 $282.28 
Granted19 378.55 
Vested(23)249.34 
Cancellations and other(1)350.61 
Non-vested RSUs at October 3,202658 326.39 
*Weighted-average
Schedule of Weighted-Average Assumptions of Fair Value Granted Using Black-Scholes Valuation Model, SAR's
The following weighted-average assumptions were used in calculating the fair value of stock-settled SARs granted during the nine month periods ended October 3, 2026, and September 27, 2025, using the Black-Scholes valuation model:
Nine Months Ended
October 3,
2026		September 27,
2025
Expected term of stock-settled SARs (in years)
4.074.11
Expected volatility factor23.94%23.79%
Expected dividend yield2.58%2.52%
Risk-free interest rate3.67%4.39%
The following weighted-average assumptions were used in calculating the fair value of cash-settled SARs granted during the nine month periods ended October 3, 2026, and September 27, 2025, using the Black-Scholes valuation model:
Nine Months Ended
October 3,
2026		September 27,
2025
Expected term of cash-settled SARs (in years)
3.593.54
Expected volatility factor22.68%24.88%
Expected dividend yield2.65%2.50%
Risk-free interest rate4.96%3.66%
Schedule of Changes in SARs
Below is a summary of stock-settled SARs as of and for the nine months ended October 3, 2026:
Stock-settled
SARs
(in thousands)
Exercise
Price Per
Share*
Remaining
Contractual
Term*
(in years)
Aggregate
Intrinsic
Value
(in millions)
Outstanding at January 3, 2026309 $233.57 
Granted52 378.55 
Exercised(34)194.90 
Forfeited or expired(40)223.61 
Outstanding at October 3, 2026287 265.53 6.4$30.2 
Exercisable at October 3, 2026182 218.40 5.127.4 
*Weighted-average
Changes to the company’s non-vested cash-settled SARs during the nine months ended October 3, 2026, are as follows:
Cash-settled
SARs
(in thousands)
Fair Value
Price per
Share*
Non-vested cash-settled SARs at January 3, 20262 $79.24 
Granted1 65.08 
Vested(1)99.79 
Non-vested cash-settled SARs at October 3, 20262 73.99 
*Weighted-average