Stockholders' Equity and Stock-based Compensation (Tables)

9 Months Ended

Sep. 29, 2023

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		Nine-Month Period Ended
	September 29, 2023	September 30, 2022	September 29, 2023	September 30, 2022
Preferred stock - shares issued:
Balance, beginning of period	—	1.7	1.7	3.4
Conversion of MCPS to common stock	—	—	(1.7)	(1.7)
Balance, end of period	—	1.7	—	1.7
Common stock - shares issued:
Balance, beginning of period	879.5	868.4	869.3	855.7
Common stock-based compensation awards	0.7	0.5	2.3	2.2
Conversion of MCPS to common stock	—	—	8.6	11.0
Balance, end of period	880.2	868.9	880.2	868.9

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				Nine-Month Period Ended
	September 29, 2023		September 30, 2022		September 29, 2023		September 30, 2022
RSUs/PSUs:
Pretax compensation expense	$	51	$	52	$	157	$	156
Income tax benefit	(11)		(11)		(32)		(32)
RSU/PSU expense, net of income taxes	40		41		125		124
Stock options:
Pretax compensation expense	41		37		123		114
Income tax benefit	(8)		(7)		(25)		(23)
Stock option expense, net of income taxes	33		30		98		91
Total stock-based compensation:
Pretax compensation expense	92		89		280		270
Income tax benefit	(19)		(18)		(57)		(55)
Total stock-based compensation expense, net of income taxes	$	73	$	71	$	223	$	215

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 September 29, 2023:
Balance, June 30, 2023	$	(3,323)	$	(341)		$	88		$	(3,576)
Other comprehensive income (loss) before reclassifications:
Increase (decrease)	(296)		—			22			(274)
Income tax impact	(7)		—			—			(7)
Other comprehensive income (loss) before reclassifications, net of income taxes	(303)		—			22			(281)
Reclassification adjustments:
Increase (decrease)	—		1		(a)	(102)		(b)	(101)
Income tax impact	—		—			(1)			(1)
Reclassification adjustments, net of income taxes	—		1			(103)			(102)
Net other comprehensive income (loss), net of income taxes	(303)		1			(81)			(383)
Balance, September 29, 2023	$	(3,626)	$	(340)		$	7		$	(3,959)
For the Three-Month Period Ended September 30, 2022:
Balance, July 1, 2022	$	(2,324)	$	(529)		$	108		$	(2,745)
Other comprehensive income (loss) before reclassifications:
Increase (decrease)	(1,008)		—			214			(794)
Income tax impact	(31)		—			(51)			(82)
Other comprehensive income (loss) before reclassifications, net of income taxes	(1,039)		—			163			(876)
Reclassification adjustments:
Increase (decrease)	—		9		(a)	(240)		(b)	(231)
Income tax impact	—		(2)			—			(2)
Reclassification adjustments, net of income taxes	—		7			(240)			(233)
Net other comprehensive income (loss), net of income taxes	(1,039)		7			(77)			(1,109)
Balance, September 30, 2022	$	(3,363)	$	(522)		$	31		$	(3,854)

	Foreign Currency Translation Adjustments		Pension and Postretirement Plan Benefit Adjustments			Cash Flow Hedge Adjustments			Accumulated Comprehensive Income (Loss)
For the Nine-Month Period Ended September 29, 2023:
Balance, December 31, 2022	$	(2,644)	$	(341)		$	113		$	(2,872)
Other comprehensive income (loss) before reclassifications:
Increase (decrease)	(991)		—			(68)			(1,059)
Income tax impact	9		—			—			9
Other comprehensive income (loss) before reclassifications, net of income taxes	(982)		—			(68)			(1,050)
Reclassification adjustments:
Increase (decrease)	—		1		(a)	(37)		(b)	(36)
Income tax impact	—		—			(1)			(1)
Reclassification adjustments, net of income taxes	—		1			(38)			(37)
Net other comprehensive income (loss), net of income taxes	(982)		1			(106)			(1,087)
Balance, September 29, 2023	$	(3,626)	$	(340)		$	7		$	(3,959)
For the Nine-Month Period Ended September 30, 2022:
Balance, December 31, 2021	$	(539)	$	(550)		$	62		$	(1,027)
Other comprehensive income (loss) before reclassifications:
Increase (decrease)	(2,729)		—			720			(2,009)
Income tax impact	(95)		—			(173)			(268)
Other comprehensive income (loss) before reclassifications, net of income taxes	(2,824)		—			547			(2,277)
Reclassification adjustments:
Increase (decrease)	—		37		(a)	(578)		(b)	(541)
Income tax impact	—		(9)			—			(9)
Reclassification adjustments, net of income taxes	—		28			(578)			(550)
Net other comprehensive income (loss), net of income taxes	(2,824)		28			(31)			(2,827)
Balance, September 30, 2022	$	(3,363)	$	(522)		$	31		$	(3,854)

(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).