Shareholders' Equity

6 Months Ended

Jun. 30, 2025

Equity [Abstract]

Shareholders' Equity

Shareholders’ Equity

The Company has authorized one billion shares of common stock and 500,000 shares of preferred stock, each with zero par value. No preferred stock has been issued. 

Treasury stock

At June 30, 2025 and December 31, 2024, the Company had approximately 235.7 million shares and 237.6 million shares, respectively, of its common shares in treasury. Treasury stock is recorded at cost with $4.8 billion at each of June 30, 2025 and December 31, 2024 as a reduction of common stock, and $2.3 billion at each of June 30, 2025 and December 31, 2024 as a reduction of reinvested earnings.

Repurchase Program

On December 11, 2024, the Company's Board of Directors approved a second extension of its existing stock repurchase program through December 31, 2029 and the repurchase of up to an additional 100 million shares under the extended program. As of June 30, 2025, the Company had 115 million shares remaining under its share repurchase program until December 31, 2029.

Accumulated Other Comprehensive Income

The following tables set forth the changes in AOCI by component for the three and six months ended June 30, 2025 and 2024 (in millions).

	Three Months Ended June 30, 2025
	Foreign Currency Translation Adjustment		Deferred Gain (Loss) on Cash Flow Hedging Activities		Pension and Other Postretirement Benefit Liabilities		Unrealized Gain (Loss) on Investments		Accumulated Other Comprehensive Income (Loss)
Balance at April 1, 2025	$	(3,094)	$	120	$	(116)	$	(18)	$	(3,108)
Other comprehensive income (loss) before reclassifications	599		(70)		12		(1)		540
Gain (loss) on net investment hedges	(317)		—		—		—		(317)
Amounts reclassified from AOCI	—		11		(4)		—		7
Tax effect	75		13		(2)		—		86
Net of tax amount	357		(46)		6		(1)		316
Balance at June 30, 2025	$	(2,737)	$	74	$	(110)	$	(19)	$	(2,792)
	Six Months Ended June 30, 2025
	Foreign Currency Translation Adjustment		Deferred Gain (Loss) on Cash Flow Hedging Activities		Pension and Other Postretirement Benefit Liabilities		Unrealized Gain (Loss) on Investments		Accumulated Other Comprehensive Income (Loss)
Balance at January 1, 2025	$	(2,999)	$	126	$	(100)	$	(15)	$	(2,988)
Other comprehensive income (loss) before reclassifications	624		(58)		(8)		(4)		554
Gain (loss) on net investment hedges	(475)		—		—		—		(475)
Amounts reclassified from AOCI	—		(6)		(6)		—		(12)
Tax effect	113		12		4		—		129
Net of tax amount	262		(52)		(10)		(4)		196
Balance at June 30, 2025	$	(2,737)	$	74	$	(110)	$	(19)	$	(2,792)

	Three Months Ended June 30, 2024
	Foreign Currency Translation Adjustment		Deferred Gain (Loss) on Cash Flow Hedging Activities		Pension and Other Postretirement Benefit Liabilities		Unrealized Gain (Loss) on Investments		Accumulated Other Comprehensive Income (Loss)
Balance at April 1, 2024	$	(2,552)	$	99	$	(111)	$	(6)	$	(2,570)
Other comprehensive (loss) before reclassifications	(285)		(71)		1		—		(355)
Gain on net investment hedges	25		—		—		—		25
Amounts reclassified from AOCI	—		23		(4)		—		19
Tax effect	(6)		6		1		—		1
Net of tax amount	(266)		(42)		(2)		—		(310)
Balance at June 30, 2024	$	(2,818)	$	57	$	(113)	$	(6)	$	(2,880)
	Six Months Ended June 30, 2024
	Foreign Currency Translation Adjustment		Deferred Gain (Loss) on Cash Flow Hedging Activities		Pension and Other Postretirement Benefit Liabilities		Unrealized Gain (Loss) on Investments		Accumulated Other Comprehensive Income (Loss)
Balance at January 1, 2024	$	(2,539)	$	158	$	(108)	$	2	$	(2,487)
Other comprehensive income (loss) before reclassifications	(362)		(121)		(1)		(7)		(491)
Gain (loss) on net investment hedges	109		—		—		—		109
Amounts reclassified from AOCI	—		4		(6)		—		(2)
Tax effect	(26)		16		2		(1)		(9)
Net of tax amount	(279)		(101)		(5)		(8)		(393)
Balance at June 30, 2024	$	(2,818)	$	57	$	(113)	$	(6)	$	(2,880)

The following table sets forth the reclassifications out of AOCI related to deferred (gains)/ losses on cash flow hedging activities for the three and six months ended June 30, 2025 and 2024 (in millions).

Affected line item in the Consolidated Statements of Earnings	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2025		2024		2025		2024
Cost of products sold	$	11	$	23	$	(6)	$	4
Earnings before income tax	11		23		(6)		4
Income tax expense	(3)		(4)		1		—
Net earnings	$	8	$	19	$	(5)	$	4

The Company’s accounting policy is to release the income tax effects from AOCI when the individual units of account are sold, terminated, or extinguished.