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Share Repurchase Program
9 Months Ended
Sep. 29, 2013
Share Repurchase Program [Abstract]  
Treasury Stock [Text Block]
Share Repurchase Program

During the three months ended September 29, 2013, the Company’s Board of Directors increased the share repurchase program authorization by $2.50 billion, up to an aggregate amount of $3.75 billion for share repurchases. Under this program, shares repurchased are recorded as a reduction to capital in excess of par value and retained earnings in the Company’s Condensed Consolidated Balance Sheets. The repurchases will be made from time to time in the open market, in privately negotiated transactions, or in structured stock repurchase programs, and may be made in one or more repurchases, in compliance with Rule 10b-18 of the Securities Exchange Act, subject to market conditions, applicable legal requirements, and other factors. The program does not obligate the Company to acquire any particular amount of common stock, and the program may be suspended at any time at the Company’s discretion. As part of the share repurchase program, the Company has entered into, and may continue to enter into, structured share repurchase transactions with financial institutions. These agreements generally require that the Company make an up-front payment in exchange for the right to receive a fixed number of shares of its common stock upon execution of the agreement, with a potential increase or decrease in the number of shares at the end of the term of the agreement.

On July 31, 2013, the Company entered into an accelerated share repurchase (“ASR”) agreement with a financial institution to purchase $1.0 billion of the Company’s common stock. In exchange for up-front payments totaling $1.0 billion, the financial institution committed to deliver shares during the ASR’s purchase period, which will end between December 6, 2013 and April 8, 2014, at the financial institution’s discretion. The total number of shares ultimately delivered, and therefore the average price paid per share, will be determined at the end of the purchase period based on the volume weighted average price of the Company’s stock during the period. During the three months ended September 29, 2013, 14.5 million shares under this ASR program were initially delivered to the Company. This does not represent the final number of shares to be delivered under the ASR. Depending on the average price of the Company’s common stock while the ASR is outstanding, upon the maturity of the ASR, the financial institution may be required to deliver additional shares to the Company or the Company may be required to deliver shares to the financial institution. The up-front payment of $1.0 billion was accounted for as a reduction to stockholders’ equity in the Company’s Condensed Consolidated Balance Sheet.

The Company reflected the ASR as a repurchase of common stock for purposes of calculating earnings per share and as a forward contract indexed to its own common stock. The forward contract met all of the applicable criteria for equity classification, and, therefore, was not accounted for as a derivative instrument.

In addition, from inception through September 29, 2013, the Company has repurchased on the open market 13.7 million shares for an aggregate purchase price of $673.3 million, of which 8.0 million shares for an aggregate purchase price of $439.3 million were repurchased during the nine months ended September 29, 2013.

As of September 29, 2013, $2.08 billion remains available for share repurchases under the Company’s share repurchase program.