Stockholders' Equity and Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2022

Share-Based Payment Arrangement, Noncash Expense [Abstract]

Summary of Share Activity

The following table summarizes the Company’s share activity for the years ended December 31 (shares in millions):

	2022	2021	2020
Preferred stock - shares issued:
Balance, beginning of period	3.4	3.4	1.7
Issuance of MCPS	—	—	1.7
Conversion of MCPS to common stock	(1.7)	—	—
Balance, end of period	1.7	3.4	3.4
Common stock - shares issued:
Balance, beginning of period	855.7	851.3	835.5
Issuance of common stock attributable to stock-based compensation	2.6	3.4	4.5
Conversion of MCPS to common stock	11.0	—	—
Common stock issued in connection with acquisitions	—	0.1	—
Common stock issued in connection with LYONs’ conversions	—	0.9	0.4
Other issuance of common stock	—	—	10.9
Balance, end of period	869.3	855.7	851.3

Assumptions Used in the Black-Scholes Model to Value Options Granted

The following summarizes the assumptions used in the Black-Scholes model to value options granted during the years ended December 31:

	2022		2021		2020
Risk-free interest rate	1.8 – 4.0%		0.6 – 1.5%		0.3 – 1.3%
Weighted average volatility	30.3	%	29.8	%	24.3	%
Dividend yield	0.4	%	0.3	%	0.4	%
Expected years until exercise	5.0 – 7.5		5.0 – 7.5		5.0 – 8.0

Components of Share-Based Compensation Program

The following summarizes the components of the Company’s continuing operations stock-based compensation expense for the years ended December 31 ($ in millions):

	2022		2021		2020
RSUs/PSUs:
Pretax compensation expense	$	195	$	129	$	114
Income tax benefit	(40)		(26)		(24)
RSU/PSU expense, net of income taxes	155		103		90
Stock options:
Pretax compensation expense	141		89		73
Income tax benefit	(28)		(18)		(15)
Stock option expense, net of income taxes	113		71		58
Total stock-based compensation:
Pretax compensation expense	336		218		187
Income tax benefit	(68)		(44)		(39)
Total stock-based compensation expense, net of income taxes	$	268	$	174	$	148

Option Activity Under the Company's Stock Plans

The following summarizes option activity under the Company’s stock plans (in millions, except weighted exercise price and number of years):

	Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value
Outstanding as of January 1, 2020	17.0	$	82.95
Granted	2.9	160.71
Exercised	(3.5)	62.54
Cancelled/forfeited	(0.5)	113.94
Outstanding as of December 31, 2020	15.9	100.65
Granted	2.8	240.75
Exercised	(2.4)	79.16
Cancelled/forfeited	(0.7)	144.60
Outstanding as of December 31, 2021	15.6	127.13
Granted	2.3	269.10
Exercised	(1.6)	89.62
Cancelled/forfeited	(0.6)	198.85
Outstanding as of December 31, 2022	15.7	149.01		6	$	1,847
Vested and expected to vest as of December 31, 2022 (a)	15.3	$	147.34	6	$	1,833
Vested as of December 31, 2022	8.2	$	102.64	5	$	1,341

(a)    The “expected to vest” options are the net unvested options that remain after applying the forfeiture rate assumption to total unvested options.

Summary of Options Outstanding

Options outstanding as of December 31, 2022 are summarized below (in millions, except price per share and number of years):

	Outstanding				Exercisable
Exercise Price	Shares	Average Exercise Price		Average Remaining Life (in years)	Shares	Average Exercise Price
$39.6 to $66.79	1.8	$	62.75	2	1.8	$	62.75
$66.8 to $92.41	2.4	81.60		4	2.4	81.60
$92.42 to $141.10	4.4	107.41		5	2.7	105.90
$141.11 to $249.18	4.2	185.12		7	1.1	173.94
$249.19 to $299.68	2.9	272.79		9	0.2	283.43

RSU and PSU Activity

The following summarizes information on unvested RSU and PSU activity (in millions, except weighted average grant-date fair value):

	Number of RSUs/PSUs	Weighted Average Grant-Date Fair Value
Unvested as of January 1, 2020	3.5	$	94.85
Granted	1.1	159.93
Vested	(1.0)	91.08
Forfeited	(0.2)	111.59
Unvested as of December 31, 2020	3.4	116.03
Granted	0.9	234.52
Vested	(1.0)	101.86
Forfeited	(0.2)	147.20
Unvested as of December 31, 2021	3.1	152.99
Granted	1.1	268.00
Vested	(1.0)	159.42
Forfeited	(0.2)	202.55
Unvested as of December 31, 2022	3.0	189.71

Schedule 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)
Balance, January 1, 2020	$	(2,174)	$	(781)		$	(113)		$	(3,068)
Other comprehensive income (loss) before reclassifications:
Increase (decrease)	2,894		(239)			(432)			2,223
Income tax impact	25		57			—			82
Other comprehensive income (loss) before reclassifications, net of income taxes	2,919		(182)			(432)			2,305
Reclassification adjustments
Increase (decrease)	—		46		(a)	361		(b)	407
Income tax impact	—		(11)			(1)			(12)
Reclassification adjustments, net of income taxes	—		35			360			395
Net other comprehensive income (loss), net of income taxes	2,919		(147)			(72)			2,700
Balance, December 31, 2020	745		(928)			(185)			(368)
Other comprehensive income (loss) before reclassifications:
Increase (decrease)	(1,277)		436			523			(318)
Income tax impact	(7)		(102)			5			(104)
Other comprehensive income (loss) before reclassifications, net of income taxes	(1,284)		334			528			(422)
Reclassification adjustments
Increase (decrease)	—		58		(a)	(280)		(b)	(222)
Income tax impact	—		(14)			(1)			(15)
Reclassification adjustments, net of income taxes	—		44			(281)			(237)
Net other comprehensive income (loss), net of income taxes	(1,284)		378			247			(659)
Balance, December 31, 2021	(539)		(550)			62			(1,027)
Other comprehensive income (loss) before reclassifications:
Increase (decrease)	(2,051)		233			378			(1,440)
Income tax impact	(54)		(56)			(91)			(201)
Other comprehensive income (loss) before reclassifications, net of income taxes	(2,105)		177			287			(1,641)
Reclassification adjustments
Increase (decrease)	—		42		(a)	(235)		(b)	(193)
Income tax impact	—		(10)			(1)			(11)
Reclassification adjustments, net of income taxes	—		32			(236)			(204)
Net other comprehensive income (loss), net of income taxes	(2,105)		209			51			(1,845)
Balance, December 31, 2022	$	(2,644)	$	(341)		$	113		$	(2,872)

(a)    This accumulated other comprehensive income (loss) component is included in the computation of net periodic pension and postretirement cost (refer to Note 16 for additional details).

(b)    Reflects reclassification to earnings related to remeasurement of certain long-term debt (refer to Note 15 for additional details).