Stockholders' Equity and Stock-based Compensation (Tables)

6 Months Ended

Jul. 01, 2022

Share-Based Payment Arrangement [Abstract]

Summary of Share Activity

The following table summarizes the Company’s share activity (shares in millions):

	Three-Month Period Ended		Six-Month Period Ended
	July 1, 2022	July 2, 2021	July 1, 2022	July 2, 2021
Preferred stock - shares issued:
Balance, beginning of period	3.4	3.4	3.4	3.4
Conversion of MCPS to common stock	(1.7)	—	(1.7)	—
Balance, end of period	1.7	3.4	1.7	3.4
Common stock - shares issued:
Balance, beginning of period	857.0	853.7	855.7	851.3
Common stock-based compensation awards	0.4	0.7	1.7	2.2
Common stock issued in connection with Liquid Yield Option Notes (“LYONs”) conversions	—	—	—	0.9
Conversion of MCPS to common stock	11.0	—	11.0	—
Balance, end of period	868.4	854.4	868.4	854.4

Components of Stock-Based Compensation Program

The following summarizes the components of the Company’s stock-based compensation expense ($ in millions):

	Three-Month Period Ended				Six-Month Period Ended
	July 1, 2022		July 2, 2021		July 1, 2022		July 2, 2021
Restricted stock units (“RSUs”)/performance stock units (“PSUs”):
Pretax compensation expense	$	58	$	31	$	104	$	64
Income tax benefit	(12)		(6)		(21)		(13)
RSU/PSU expense, net of income taxes	46		25		83		51
Stock options:
Pretax compensation expense	43		22		77		43
Income tax benefit	(9)		(5)		(16)		(9)
Stock option expense, net of income taxes	34		17		61		34
Total stock-based compensation:
Pretax compensation expense	101		53		181		107
Income tax benefit	(21)		(11)		(37)		(22)
Total stock-based compensation expense, net of income taxes	$	80	$	42	$	144	$	85

Components of Accumulated Other Comprehensive Income (Loss)

The changes in accumulated other comprehensive income (loss) by component are summarized below ($ in millions).

	Foreign Currency Translation Adjustments		Pension and Postretirement Plan Benefit Adjustments			Cash Flow Hedge Adjustments			Accumulated Comprehensive Income (Loss)
For the Three-Month Period Ended July 1, 2022:
Balance, April 1, 2022	$	(882)	$	(536)		$	42		$	(1,376)
Other comprehensive income (loss) before reclassifications:
(Decrease) increase	(1,390)		—			381			(1,009)
Income tax impact	(52)		—			(92)			(144)
Other comprehensive income (loss) before reclassifications, net of income taxes	(1,442)		—			289			(1,153)
Reclassification adjustments:
Increase (decrease)	—		10		(a)	(223)		(b)	(213)
Income tax impact	—		(3)			—			(3)
Reclassification adjustments, net of income taxes	—		7			(223)			(216)
Net other comprehensive income (loss), net of income taxes	(1,442)		7			66			(1,369)
Balance, July 1, 2022	$	(2,324)	$	(529)		$	108		$	(2,745)
For the Three-Month Period Ended July 2, 2021:
Balance, April 2, 2021	$	(177)	$	(918)		$	(227)		$	(1,322)
Other comprehensive income (loss) before reclassifications:
Increase	418		—			192			610
Income tax impact	(10)		—			—			(10)
Other comprehensive income (loss) before reclassifications, net of income taxes	408		—			192			600
Reclassification adjustments:
Increase	—		15		(a)	36		(b)	51
Income tax impact	—		(4)			—			(4)
Reclassification adjustments, net of income taxes	—		11			36			47
Net other comprehensive income (loss), net of income taxes	408		11			228			647
Balance, July 2, 2021	$	231	$	(907)		$	1		$	(675)

	Foreign Currency Translation Adjustments		Pension and Postretirement Plan Benefit Adjustments			Cash Flow Hedge Adjustments			Accumulated Comprehensive Income (Loss)
For the Six-Month Period Ended July 1, 2022:
Balance, December 31, 2021	$	(539)	$	(550)		$	62		$	(1,027)
Other comprehensive income (loss) before reclassifications:
(Decrease) increase	(1,721)		—			506			(1,215)
Income tax impact	(64)		—			(122)			(186)
Other comprehensive income (loss) before reclassifications, net of income taxes	(1,785)		—			384			(1,401)
Reclassification adjustments:
Increase (decrease)	—		28		(a)	(338)		(b)	(310)
Income tax impact	—		(7)			—			(7)
Reclassification adjustments, net of income taxes	—		21			(338)			(317)
Net other comprehensive income (loss), net of income taxes	(1,785)		21			46			(1,718)
Balance, July 1, 2022	$	(2,324)	$	(529)		$	108		$	(2,745)
For the Six-Month Period Ended July 2, 2021:
Balance, December 31, 2020	$	745	$	(928)		$	(185)		$	(368)
Other comprehensive income (loss) before reclassifications:
(Decrease) increase	(499)		—			302			(197)
Income tax impact	(15)		—			—			(15)
Other comprehensive income (loss) before reclassifications, net of income taxes	(514)		—			302			(212)
Reclassification adjustments:
Increase (decrease)	—		28		(a)	(116)		(b)	(88)
Income tax impact	—		(7)			—			(7)
Reclassification adjustments, net of income taxes	—		21			(116)			(95)
Net other comprehensive income (loss), net of income taxes	(514)		21			186			(307)
Balance, July 2, 2021	$	231	$	(907)		$	1		$	(675)

(a) This accumulated other comprehensive income (loss) component is included in the computation of net periodic benefit cost (refer to Notes 8 and 13 for additional details).

(b) Reflects reclassification to earnings related to cash flow hedges of certain long-term debt (refer to Note 12 for additional details).