STOCKHOLDERS’ EQUITY

Stock Repurchase Programs

In the first quarter of 2016, our Board of Directors authorized a $12.0 billion stock repurchase program (2016 Program) under which repurchases may be made in the open market or in privately negotiated transactions. The 2016 Program commenced in April 2016 after the $15.0 billion stock repurchase program authorized by our Board of Directors in January 2015 (2015 Program) was completed. As of December 31, 2018, the remaining authorized repurchase amount under the 2016 Program was $5.1 billion.

The following table summarizes our stock repurchases under the above-described programs (in millions, except per share data):



	Year ended December 31,
	2018 ⁽¹⁾		2017 ⁽¹⁾		2016 ⁽²⁾
Shares repurchased and retired	40		13		123
Amount	$	2,900	$	954	$	11,001
Average price per share	$	72.95	$	71.79	$	89.15
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Notes:
⁽¹⁾	All repurchases were under the 2016 Program.
⁽²⁾	Includes 36 million shares repurchased for $3.0 billion under the 2016 Program and 87 million shares repurchased for $8.0 billion under the 2015 Program.

In addition to repurchases from our stock repurchase programs, we repurchased shares of common stock withheld by us from employee restricted stock awards to satisfy our applicable tax withholding obligations, which are immaterial and excluded from the table above.

We use the par value method of accounting for our stock repurchases. Under the par value method, common stock is first charged with the par value of the shares involved. The excess of the cost of shares acquired over the par value is allocated to APIC based on an estimated average sales price per issued share with the excess amounts charged to retained earnings.

The following table summarizes the reduction of common stock and APIC and the charge to retained earnings as a result of our stock repurchases (in millions):



	Year ended December 31,
	2018		2017		2016
Reduction of common stock and APIC	$	112	$	34	$	302
Charge to retained earnings	2,940		$	1,028	$	10,883

Dividends

The following table summarizes cash dividends declared on our common stock (in millions, except per share data):



	2018				2017
	Dividend Per Share		Amount		Dividend Per Share		Amount
First quarter	$	0.57	$	752	$	0.52	$	685
Second quarter	0.57		747		0.52		685
Third quarter	0.57		746		0.52		685
Fourth quarter	0.57		741		0.52		687
Total	$	2.28	$	2,986	$	2.08	$	2,742

Our restricted stock and performance-based stock units have dividend equivalent rights entitling holders to dividend equivalents to be paid upon vesting for each share of the underlying units.

On February 4, 2019, we announced that our Board of Directors declared a quarterly cash dividend of $0.63 per share of our common stock, with a payment date of March 28, 2019 to all stockholders of record as of the close of business on March 15, 2019. Future dividends are subject to declaration by the Board of Directors.

Preferred Stock

We have 5 million shares of authorized preferred stock issuable in series. Our Board is authorized to determine the designation, powers, preferences and rights of any such series. There was no preferred stock outstanding as of December 31, 2018 and 2017.

Accumulated Other Comprehensive Income (Loss)

The following table summarizes the changes in AOCI by component, net of tax (in millions):



	Foreign Currency Translation			Unrealized Gains and Losses on Available-for-Sale Securities			Unrealized Gains and Losses on Cash Flow Hedges			Total
Balance at December 31, 2016	$	132		$	(16	)	$	162		$	278
Other comprehensive income (loss) before reclassifications	(47		)	218			(304		)	(133		)
Amounts reclassified from accumulated other comprehensive income	—			(8		)	28			20
Net current period other comprehensive income (loss)	(47		)	210			(276		)	(113		)
Balance at December 31, 2017	$	85		$	194		$	(114	)	$	165
Reclassifications to retained earnings as a result of the adoption of new accounting standards	—			(293		)	—			(293		)
Balance at January 1, 2018	$	85		$	(99	)	$	(114	)	$	(128	)
Net unrealized gain (loss)	(38		)	43			112			117
Reclassifications to net income	—			4			87			91
Net current period other comprehensive income (loss)	(38		)	47			199			208
Balance at December 31, 2018	$	47		$	(52	)	$	85		$	80

The amounts reclassified to net income for gains and losses on cash flow hedges are recorded as part of Product sales on our Consolidated Statements of Income. See Note 5, Derivative Financial Instruments, for additional information. The amounts reclassified to net income for gains and losses on available-for-sale debt securities are recorded as part of Other income (expense), net, on our Consolidated Statements of Income.