Summary of Share Activity |
The following table summarizes the Company’s share activity (shares in millions): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three-Month Period Ended | | Nine-Month Period Ended | | | | September 30, 2022 | | October 1, 2021 | | September 30, 2022 | | October 1, 2021 | | | | | Preferred stock - shares issued: | | | | | | | | | | | | Balance, beginning of period | 1.7 | | | 3.4 | | | 3.4 | | | 3.4 | | | | | | Conversion of MCPS to common stock | — | | | — | | | (1.7) | | | — | | | | | | Balance, end of period | 1.7 | | | 3.4 | | | 1.7 | | | 3.4 | | | | | | | | | | | | | | | | | | Common stock - shares issued: | | | | | | | | | | | | Balance, beginning of period | 868.4 | | | 854.4 | | | 855.7 | | | 851.3 | | | | | | Common stock-based compensation awards | 0.5 | | | 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 period | 868.9 | | | 855.2 | | | 868.9 | | | 855.2 | | | | | |
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Components of Stock-Based Compensation Program |
The following summarizes the components of the Company’s stock-based compensation expense ($ in millions): | | | | | | | | | | | | | | | | | | | | | | | | | Three-Month Period Ended | | Nine-Month Period Ended | | September 30, 2022 | | October 1, 2021 | | September 30, 2022 | | October 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 taxes | 41 | | | 25 | | | 124 | | | 76 | | Stock options: | | | | | | | | Pretax compensation expense | 37 | | | 21 | | | 114 | | | 64 | | Income tax benefit | (7) | | | (4) | | | (23) | | | (13) | | Stock option expense, net of income taxes | 30 | | | 17 | | | 91 | | | 51 | | Total stock-based compensation: | | | | | | | | Pretax compensation expense | 89 | | | 52 | | | 270 | | | 159 | | Income tax benefit | (18) | | | (10) | | | (55) | | | (32) | | Total stock-based compensation expense, net of income taxes | $ | 71 | | | $ | 42 | | | $ | 215 | | | $ | 127 | |
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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 Adjustments | | Pension and Postretirement Plan Benefit Adjustments | | | | Cash Flow Hedge Adjustments | | Accumulated 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) | — | | | 9 | | (a) | | | (240) | | (b) | (231) | | Income tax impact | — | | | (2) | | | | | — | | | (2) | | Reclassification adjustments, net of income taxes | — | | | 7 | | | | | (240) | | | (233) | | Net other comprehensive income (loss), net of income taxes | (1,039) | | | 7 | | | | | (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) | | | | | $ | 1 | | | $ | (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 Adjustments | | Pension and Postretirement Plan Benefit Adjustments | | | | Cash Flow Hedge Adjustments | | Accumulated 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).
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