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Stockholders' Equity and Stock-based Compensation (Tables)
9 Months Ended
Sep. 30, 2022
Share-Based Payment Arrangement [Abstract]  
Summary of Share Activity
The following table summarizes the Company’s share activity (shares in millions):
Three-Month Period EndedNine-Month Period Ended
September 30, 2022October 1, 2021September 30, 2022October 1, 2021
Preferred stock - shares issued:
Balance, beginning of period1.7 3.4 3.4 3.4 
Conversion of MCPS to common stock— — (1.7)— 
Balance, end of period1.7 3.4 1.7 3.4 
Common stock - shares issued:
Balance, beginning of period868.4 854.4 855.7 851.3 
Common stock-based compensation awards0.5 0.8 2.2 3.0 
Common stock issued in connection with Liquid Yield Option Notes (“LYONs”) conversions— — — 0.9 
Conversion of MCPS to common stock— — 11.0 — 
Balance, end of period868.9 855.2 868.9 855.2 
Components of Stock-Based Compensation Program
The following summarizes the components of the Company’s stock-based compensation expense ($ in millions):
 Three-Month Period EndedNine-Month Period Ended
 September 30, 2022October 1, 2021September 30, 2022October 1, 2021
Restricted stock units (“RSUs”)/performance stock units (“PSUs”):
Pretax compensation expense$52 $31 $156 $95 
Income tax benefit(11)(6)(32)(19)
RSU/PSU expense, net of income taxes41 25 124 76 
Stock options:
Pretax compensation expense37 21 114 64 
Income tax benefit(7)(4)(23)(13)
Stock option expense, net of income taxes30 17 91 51 
Total stock-based compensation:
Pretax compensation expense89 52 270 159 
Income tax benefit(18)(10)(55)(32)
Total stock-based compensation expense, net of income taxes$71 $42 $215 $127 
Components of Accumulated Other Comprehensive Income (Loss)
The changes in accumulated other comprehensive income (loss) by component are summarized below ($ in millions).
Foreign Currency Translation AdjustmentsPension and Postretirement Plan Benefit AdjustmentsCash Flow Hedge AdjustmentsAccumulated Comprehensive Income (Loss)
For the Three-Month Period Ended September 30, 2022:
Balance, July 1, 2022$(2,324)$(529)$108 $(2,745)
Other comprehensive income (loss) before reclassifications:
Increase (decrease)(1,008)— 214 (794)
Income tax impact(31)— (51)(82)
Other comprehensive income (loss) before reclassifications, net of income taxes(1,039)— 163 (876)
Reclassification adjustments:
Increase (decrease)— (a)(240)(b)(231)
Income tax impact— (2)— (2)
Reclassification adjustments, net of income taxes— (240)(233)
Net other comprehensive income (loss), net of income taxes(1,039)(77)(1,109)
Balance, September 30, 2022$(3,363)$(522)$31 $(3,854)
For the Three-Month Period Ended October 1, 2021:
Balance, July 2, 2021$231 $(907)$$(675)
Other comprehensive income (loss) before reclassifications:
Increase (decrease)(387)— 87 (300)
Income tax impact(9)— — (9)
Other comprehensive income (loss) before reclassifications, net of income taxes(396)— 87 (309)
Reclassification adjustments:
Increase (decrease)— 15 (a)(89)(b)(74)
Income tax impact— (3)— (3)
Reclassification adjustments, net of income taxes— 12 (89)(77)
Net other comprehensive income (loss), net of income taxes(396)12 (2)(386)
Balance, October 1, 2021
$(165)$(895)$(1)$(1,061)
Foreign Currency Translation AdjustmentsPension and Postretirement Plan Benefit AdjustmentsCash Flow Hedge AdjustmentsAccumulated Comprehensive Income (Loss)
For the Nine-Month Period Ended September 30, 2022:
Balance, December 31, 2021$(539)$(550)$62 $(1,027)
Other comprehensive income (loss) before reclassifications:
Increase (decrease)(2,729)— 720 (2,009)
Income tax impact(95)— (173)(268)
Other comprehensive income (loss) before reclassifications, net of income taxes(2,824)— 547 (2,277)
Reclassification adjustments:
Increase (decrease)— 37 (a)(578)(b)(541)
Income tax impact— (9)— (9)
Reclassification adjustments, net of income taxes— 28 (578)(550)
Net other comprehensive income (loss), net of income taxes(2,824)28 (31)(2,827)
Balance, September 30, 2022$(3,363)$(522)$31 $(3,854)
For the Nine-Month Period Ended October 1, 2021:
Balance, December 31, 2020$745 $(928)$(185)$(368)
Other comprehensive income (loss) before reclassifications:
Increase (decrease)(886)— 389 (497)
Income tax impact(24)— — (24)
Other comprehensive income (loss) before reclassifications, net of income taxes(910)— 389 (521)
Reclassification adjustments:
Increase (decrease)— 43 (a)(205)(b)(162)
Income tax impact— (10)— (10)
Reclassification adjustments, net of income taxes— 33 (205)(172)
Net other comprehensive income (loss), net of income taxes(910)33 184 (693)
Balance, October 1, 2021
$(165)$(895)$(1)$(1,061)
(a) This accumulated other comprehensive income (loss) component is included in the computation of net periodic benefit cost (refer to Notes 9 and 14 for additional details).
(b) Reflects reclassification to earnings related to cash flow hedges of certain long-term debt (refer to Note 13 for additional details).