Share-Based Compensation

9 Months Ended

Sep. 30, 2021

Share-based Payment Arrangement [Abstract]

Shareholders' Equity and Share-based Payments

Share-Based Compensation and Equity

Stock Options

Stock option activity for the nine months ended September 30, 2021 was as follows:

(In thousands, except per share and term data)	Number of Shares	Weighted- Average Exercise  Price (Per Share)		Aggregate Intrinsic  Value		Weighted-Average  Remaining Contractual Term (Yrs)
Outstanding at beginning of year	10,204	$	58.59
Exercised	(3,779)	56.92
Forfeited and expired	(180)	56.49
Outstanding as of September 30, 2021	6,245	$	59.66	$	67,999	4.48
Exercisable as of September 30, 2021	4,748	$	59.06	$	54,598	3.81

As of September 30, 2021, there was $20 million of total unrecognized compensation cost related to stock options granted under all plans. That cost is expected to be recognized over a weighted-average period of 1.39 years.

Non-vested Shares and Share Units

Non-vested share and share unit activity for the nine months ended September 30, 2021 was as follows:

(In thousands, except per share data)	Number of Shares	Weighted-Average Grant Date Fair Value Per Share
Outstanding at beginning of year	4,131	$	68.05
Granted	2,158	77.31
Vested	(2,386)	67.94
Forfeited	(522)	72.40
Outstanding as of September 30, 2021	3,381	$	73.36

As of September 30, 2021, there was $195 million of total unrecognized compensation cost related to non-vested share and share unit awards granted under all plans. That cost is expected to be recognized over a weighted-average period of 2.13 years.

Share-Based Compensation Cost

The following table presents total compensation expense recognized with respect to stock options, non-vested shares and share units, and our associate stock purchase plan:

	Three Months Ended				Nine Months Ended
(In thousands)	2021		2020		2021		2020
Stock option and non-vested share and share unit compensation expense	$	55,274	$	37,920	$	157,165	$	110,500
Associate stock purchase plan expense	1,300		1,367		4,461		4,195
Amounts capitalized in software development costs, net of amortization	(908)		(1,150)		(4,034)		(2,971)
Amounts charged against earnings, before income tax benefit	$	55,666	$	38,137	$	157,592	$	111,724
Amount of related income tax benefit recognized in earnings	$	11,155	$	7,818	$	31,602	$	22,452

Treasury Stock

Under one of our share repurchase programs, which was initially approved by our Board of Directors on May 23, 2017, and most recently amended on December 12, 2019 (the "2017 Share Repurchase Program"), the Company was authorized to repurchase up to $3.70 billion of shares of our common stock, excluding transaction costs. The repurchases were to be effectuated in the open market, by block purchase, in privately negotiated transactions, or through other transactions managed by broker-dealers, or any combination thereof.

On April 23, 2021, our Board of Directors approved a new share repurchase program (the "2021 Share Repurchase Program"), which authorizes the Company to repurchase up to $3.75 billion in the aggregate of shares of our common stock, excluding transaction costs. The 2021 Share Repurchase Program is incremental to our 2017 Share Repurchase Program. The repurchases are to be effectuated in the open market, by block purchase, in privately negotiated transactions, or through other transactions managed by broker-dealers, or any combination thereof. The 2021 Share Repurchase Program will expire on December 31, 2023.

During the nine months ended September 30, 2021, we repurchased 14.8 million shares for total consideration of $1.12 billion under our share repurchase programs. The shares were recorded as treasury stock and accounted for under the cost method. No repurchased shares have been retired. The 2017 Share Repurchase Program was completed during the third quarter of 2021. As of September 30, 2021, an aggregate of $3.55 billion remained available for repurchase under the 2021 Share Repurchase Program.

Dividends

On March 25, 2021, our Board of Directors declared a cash dividend of $0.22 per share on our issued and outstanding common stock, which was paid on April 20, 2021 to shareholders of record as of April 6, 2021. On May 19, 2021, our Board of Directors declared a cash dividend of $0.22 per share on our issued and outstanding common stock, which was paid on July 13, 2021 to shareholders of record as of June 28, 2021. On September 9, 2021, our Board of Directors declared a cash dividend of $0.22 per share on our issued and outstanding common stock, which was paid on October 12, 2021 to shareholders of record as of September 27, 2021. In connection with the declaration of such dividends, our non-vested shares and share units are entitled to dividend equivalents, which will be payable to the holder subject to, and upon vesting of, the underlying awards. Our outstanding stock options are not entitled to dividend or dividend equivalents. At September 30, 2021 and December 31, 2020, our condensed consolidated balance sheets included liabilities for dividends payable of $67 million and $69 million, respectively, which are included in "Other current liabilities".

Accumulated Other Comprehensive Loss, Net (AOCI)

The components of AOCI, net of tax, were as follows:

	Foreign currency translation adjustment and other		Unrealized loss on cash flow hedge		Unrealized holding gain (loss) on available-for-sale investments		Total
(In thousands)
Balance at December 31, 2020	$	(93,450)	$	(27,788)	$	434	$	(120,804)
Other comprehensive income (loss) before reclassifications	(8,991)		2,061		(217)		(7,147)
Amounts reclassified from AOCI	—		2,527		—		2,527
Balance at March 31, 2021	(102,441)		(23,200)		217		(125,424)
Other comprehensive income (loss) before reclassifications	4,486		(429)		(26)		4,031
Amounts reclassified from AOCI	—		2,667		(1)		2,666
Balance at June 30, 2021	(97,955)		(20,962)		190		(118,727)
Other comprehensive income (loss) before reclassifications	(13,259)		(384)		(23)		(13,666)
Amounts reclassified from AOCI	—		2,657		40		2,697
Balance at September 30, 2021	$	(111,214)	$	(18,689)	$	207	$	(129,696)

	Foreign currency translation adjustment and other		Unrealized loss on cash flow hedge		Unrealized holding gain (loss) on available-for-sale investments		Total
(In thousands)
Balance at December 28, 2019	$	(106,347)	$	(12,578)	$	265	$	(118,660)
Other comprehensive income (loss) before reclassifications	(20,546)		(20,430)		(849)		(41,825)
Amounts reclassified from AOCI	—		1,122		—		1,122
Balance at March 31, 2020	(126,893)		(31,886)		(584)		(159,363)
Other comprehensive income (loss) before reclassifications	9,197		(3,205)		1,502		7,494
Amounts reclassified from AOCI	—		2,198		—		2,198
Balance at June 30, 2020	(117,696)		(32,893)		918		(149,671)
Other comprehensive income (loss) before reclassifications	9,611		(289)		(220)		9,102
Amounts reclassified from AOCI	—		2,554		—		2,554
Balance at September 30, 2020	$	(108,085)	$	(30,628)	$	698	$	(138,015)

The effects on net earnings of amounts reclassified from AOCI were as follows:

(In thousands)		Three Months Ended				Nine Months Ended
AOCI Component	Location	2021		2020		2021		2020
Unrealized loss on cash flow hedge	Other income, net	$	(3,322)	$	(3,213)	$	(9,826)	$	(7,383)
	Income taxes	665		659		1,975		1,509
	Net of tax	(2,657)		(2,554)		(7,851)		(5,874)
Unrealized holding gain (loss) on available-for-sale investments	Other income, net	(51)		—		(49)		—
	Income taxes	11		—		10		—
	Net of tax	(40)		—		(39)		—
Total amount reclassified, net of tax		$	(2,697)	$	(2,554)	$	(7,890)	$	(5,874)