Stockholders' Equity and Stock-Based Compensation

3 Months Ended

Mar. 28, 2025

Share-Based Payment Arrangement [Abstract]

Stockholders' Equity and Stock-Based Compensation

STOCKHOLDERS' EQUITY AND STOCK-BASED COMPENSATION

Stockholders’ Equity

On July 22, 2024, the Company’s Board of Directors approved a repurchase program (the “Repurchase Program”) authorizing the repurchase of up to 20 million shares of the Company’s common stock from time to time on the open market or in privately negotiated transactions. During the three-month period ended March 28, 2025 the Company repurchased approximately 4.5 million shares of the Company’s common stock for approximately $1.1 billion (which includes $11 million of excise taxes which will be paid in 2026) as part of the Repurchase Program.

As of March 28, 2025, approximately 12 million shares remained available for repurchase pursuant to the Repurchase Program. There is no expiration date for the Repurchase Program, and the timing and amount of any shares repurchased under the program will be determined by members of the Company’s management based on its evaluation of market conditions and other factors. The Repurchase Program may be suspended or discontinued at any time. Any repurchased shares will be available for use in connection with the Company’s equity compensation plans (or any successor plans) and for other corporate purposes.

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

	Three-Month Period Ended
	March 28, 2025	March 29, 2024
Common stock - shares issued:
Balance, beginning of period	884.3	880.5
Common stock-based compensation awards	1.3	1.8
Balance, end of period	885.6	882.3

Stock-Based Compensation

For a full description of the Company’s stock-based compensation programs, refer to Note 18 of the Company’s financial statements as of and for the year ended December 31, 2024 included in the Company’s 2024 Annual Report. As of March 28, 2025, approximately 42 million shares of the Company’s common stock were reserved for issuance under the 2007 Omnibus Incentive Plan.

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

	Three-Month Period Ended
	March 28, 2025		March 29, 2024
RSUs/PSUs:
Pretax compensation expense	$	35	$	32
Income tax benefit	(7)		(6)
RSU/PSU expense, net of income taxes	28		26
Stock options:
Pretax compensation expense	26		28
Income tax benefit	(5)		(6)
Stock option expense, net of income taxes	21		22
Total stock-based compensation:
Pretax compensation expense	61		60
Income tax benefit	(12)		(12)
Total stock-based compensation expense, net of income taxes	$	49	$	48

Stock-based compensation has been recognized as a component of SG&A expenses in the accompanying Consolidated Condensed Statements of Earnings. As of March 28, 2025, $294 million of total unrecognized compensation cost related to RSUs/PSUs is expected to be recognized over a weighted average period of approximately two years. As of March 28, 2025, $242 million of total unrecognized compensation cost related to stock options is expected to be recognized over a weighted average period of approximately two years. Future compensation amounts will be adjusted for any changes in estimated forfeitures.

Accumulated Other Comprehensive Income

Accumulated OCI refers to certain gains and losses that under U.S. GAAP are included in comprehensive income (loss) but are excluded from net earnings as these amounts are initially recorded as an adjustment to stockholders’ equity. Foreign currency translation adjustments generally relate to indefinite investments in non-U.S. subsidiaries, as well as the impact from the Company’s hedges of its net investment in foreign operations, including the Company’s cross-currency swap derivatives, net of any income tax impacts.

The changes in accumulated OCI 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 March 28, 2025:
Balance, December 31, 2024	$	(2,904)	$	(300)		$	(14)		$	(3,218)
OCI before reclassifications:
Increase (decrease)	1,436		—			39			1,475
Income tax impact	13		—			—			13
OCI before reclassifications, net of income taxes	1,449		—			39			1,488
Reclassification adjustments:
Increase (decrease)	—		2		(a)	117		(b)	119
Income tax impact	—		(1)			—			(1)
Reclassification adjustments, net of income taxes	—		1			117			118
Net OCI, net of income taxes	1,449		1			156			1,606
Balance, March 28, 2025	$	(1,455)	$	(299)		$	142		$	(1,612)
For the Three-Month Period Ended March 29, 2024:
Balance, December 31, 2023	$	(1,446)	$	(401)		$	99		$	(1,748)
OCI before reclassifications:
Increase (decrease)	(935)		—			23			(912)
Income tax impact	(13)		—			—			(13)
OCI before reclassifications, net of income taxes	(948)		—			23			(925)
Reclassification adjustments:
Increase (decrease)	—		3		(a)	(73)		(b)	(70)
Income tax impact	—		(1)			—			(1)
Reclassification adjustments, net of income taxes	—		2			(73)			(71)
Net OCI, net of income taxes	(948)		2			(50)			(996)
Balance, March 29, 2024	$	(2,394)	$	(399)		$	49		$	(2,744)

(a) This accumulated other comprehensive income (loss) component is included in the computation of net periodic benefit cost (refer to Note 7 for additional details).

(b) Reflects reclassification to earnings related to cash flow hedges of certain long-term debt (refer to Note 11 for additional details).