Stock Transactions And Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2021

Share-based Payment Arrangement, Noncash Expense [Abstract]

Summary of Share Activity

The following table summarizes the Company’s share activity for the years ended December 31 (shares in millions):

	2021	2020	2019
Preferred stock - shares issued:
Balance, beginning of period	3.4	1.7	—
Issuance of MCPS	—	1.7	1.7
Balance, end of period	3.4	3.4	1.7
Common stock - shares issued:
Balance, beginning of period	851.3	835.5	817.9
Issuance of common stock attributable to stock-based compensation	3.4	4.5	4.6
Common stock issued in connection with acquisitions	0.1	—	—
Common stock issued in connection with LYONs’ conversions	0.9	0.4	0.9
Other issuance of common stock	—	10.9	12.1
Balance, end of period	855.7	851.3	835.5

Key Terms of Shares

The following summarizes the key terms of the MCPS Shares as of December 31, 2021:

	Annual Cumulative Dividend Rate		Liquidation Preference per Share		Minimum Conversion Rate	Maximum Conversion Rate	Mandatory Conversion Date
Series A	4.75	%	$	1,000	6.6611 shares	8.1598 shares	April 15, 2022
Series B	5.00	%	$	1,000	5.0103 shares	6.1376 shares	April 15, 2023

Assumptions Used In The Black-Scholes Model To Value Options Granted

The following summarizes the assumptions used in the Black-Scholes model to value options granted during the years ended December 31:

	2021		2020		2019
Risk-free interest rate	0.6 – 1.5%		0.3 – 1.3%		1.7 – 2.6%
Weighted average volatility	29.8	%	24.3	%	20.4	%
Dividend yield	0.3	%	0.4	%	0.5	%
Expected years until exercise	5.0 – 7.5		5.0 – 8.0		5.0 – 8.0

Components Of Share-Based Compensation Program

The following summarizes the components of the Company’s continuing operations stock-based compensation expense for the years ended December 31 ($ in millions):

	2021		2020		2019
RSUs/PSUs:
Pretax compensation expense	$	129	$	114	$	97
Income tax benefit	(26)		(24)		(20)
RSU/PSU expense, net of income taxes	103		90		77
Stock options:
Pretax compensation expense	89		73		62
Income tax benefit	(18)		(15)		(13)
Stock option expense, net of income taxes	71		58		49
Total stock-based compensation:
Pretax compensation expense	218		187		159
Income tax benefit	(44)		(39)		(33)
Total stock-based compensation expense, net of income taxes	$	174	$	148	$	126

Option Activity Under The Company's Stock Plans

The following summarizes option activity under the Company’s stock plans (in millions, except weighted exercise price and number of years):

	Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value
Outstanding as of January 1, 2019	18.6	$	70.86
Granted	4.3	117.32
Exercised	(3.5)	53.02
Cancelled/forfeited	(0.9)	98.98
Adjustment due to Envista Split-Off (a)	(1.5)	91.65
Outstanding as of December 31, 2019	17.0	82.95
Granted	2.9	160.71
Exercised	(3.5)	62.54
Cancelled/forfeited	(0.5)	113.94
Outstanding as of December 31, 2020	15.9	100.65
Granted	2.8	240.75
Exercised	(2.4)	79.16
Cancelled/forfeited	(0.7)	144.60
Outstanding as of December 31, 2021	15.6	127.13		6	$	3,141
Vested and expected to vest as of December 31, 2021 (b)	15.1	$	125.23	6	$	3,077
Vested as of December 31, 2021	7.0	$	85.81	5	$	1,691

(a)    The “Adjustment due to Envista Split-Off” reflects the cancellation of options which were outstanding as of December 18, 2019 and held by Envista employees, which have been terminated and replaced by Envista equity awards as part of the Envista Split-Off.

(b)    The “expected to vest” options are the net unvested options that remain after applying the forfeiture rate assumption to total unvested options.

Summary Of Options Outstanding

Options outstanding as of December 31, 2021 are summarized below (in millions, except price per share and number of years):

	Outstanding				Exercisable
Exercise Price	Shares	Average Exercise Price		Average Remaining Life (in years)	Shares	Average Exercise Price
$38.64 to $62.18	1.0	$	52.21	2	1.0	$	52.21
$62.19 to $80.91	2.2	67.02		4	2.2	67.02
$80.92 to $100.23	4.2	92.60		5	2.4	91.21
$100.24 to $163.84	5.1	131.98		7	1.3	124.92
$163.85 to $299.68	3.1	231.03		9	0.1	189.56

RSU And PSU Activity

The following summarizes information on unvested RSU and PSU activity (in millions, except weighted average grant-date fair value):

	Number of RSUs/PSUs	Weighted Average Grant-Date Fair Value
Unvested as of January 1, 2019	3.9	$	82.21
Granted	1.4	115.38
Vested	(1.1)	75.51
Forfeited	(0.3)	92.82
Adjustment due to Envista Split-Off (a)	(0.4)	98.18
Unvested as of December 31, 2019	3.5	94.85
Granted	1.1	159.93
Vested	(1.0)	91.08
Forfeited	(0.2)	111.59
Unvested as of December 31, 2020	3.4	116.03
Granted	0.9	234.52
Vested	(1.0)	101.86
Forfeited	(0.2)	147.20
Unvested as of December 31, 2021	3.1	152.99

(a)    The “Adjustment due to Envista Split-Off” reflects the cancellation of RSUs and PSUs which were outstanding as of December 18, 2019 and held by Envista employees which have been terminated and replaced by Envista equity awards as part of the Envista Split-Off.

Schedule of Accumulated Other Comprehensive Income (Loss)

The changes in accumulated other comprehensive income (loss) 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)
Balance, January 1, 2019	$	(2,100)		$	(691)		$	—		$	(2,791)
Other comprehensive income (loss) before reclassifications:
Decrease	(176)			(149)			(149)			(474)
Income tax impact	(7)			32			9			34
Other comprehensive income (loss) before reclassifications, net of income taxes	(183)			(117)			(140)			(440)
Reclassification adjustments
Increase	109		(c)	36		(a)	27		(b)	172
Income tax impact	—			(9)			—			(9)
Reclassification adjustments, net of income taxes	109			27			27			163
Net other comprehensive income (loss), net of income taxes	(74)			(90)			(113)			(277)
Balance, December 31, 2019	(2,174)			(781)			(113)			(3,068)
Other comprehensive income (loss) before reclassifications:
Increase (decrease)	2,894			(239)			(432)			2,223
Income tax impact	25			57			—			82
Other comprehensive income (loss) before reclassifications, net of income taxes	2,919			(182)			(432)			2,305
Reclassification adjustments
Increase	—			46		(a)	361		(b)	407
Income tax impact	—			(11)			(1)			(12)
Reclassification adjustments, net of income taxes	—			35			360			395
Net other comprehensive income (loss), net of income taxes	2,919			(147)			(72)			2,700
Balance, December 31, 2020	745			(928)			(185)			(368)
Other comprehensive income (loss) before reclassifications:
Increase (decrease)	(1,277)			436			523			(318)
Income tax impact	(7)			(102)			5			(104)
Other comprehensive income (loss) before reclassifications, net of income taxes	(1,284)			334			528			(422)
Reclassification adjustments
Increase (decrease)	—			58		(a)	(280)		(b)	(222)
Income tax impact	—			(14)			(1)			(15)
Reclassification adjustments, net of income taxes	—			44			(281)			(237)
Net other comprehensive income (loss), net of income taxes	(1,284)			378			247			(659)
Balance, December 31, 2021	$	(539)		$	(550)		$	62		$	(1,027)

(a)    This accumulated other comprehensive income (loss) component is included in the computation of net periodic pension and postretirement cost (refer to Note 16 for additional details).

(b)    Reflects reclassification to earnings related to remeasurement of certain long-term debt (refer to Note 15 for additional details).

(c)    Reflects reclassification to earnings related to the Envista Disposition (refer to Note 3 for additional details).