Stockholders' Equity and Stock-based Compensation (Tables)

6 Months Ended

Jun. 30, 2023

Share-Based Payment Arrangement [Abstract]

Summary of Share Activity

The following table summarizes the Company’s share activity (shares in millions):

	Three-Month Period Ended		Six-Month Period Ended
	June 30, 2023	July 1, 2022	June 30, 2023	July 1, 2022
Preferred stock - shares issued:
Balance, beginning of period	1.7	3.4	1.7	3.4
Conversion of MCPS to common stock	(1.7)	(1.7)	(1.7)	(1.7)
Balance, end of period	—	1.7	—	1.7
Common stock - shares issued:
Balance, beginning of period	870.4	857.0	869.3	855.7
Common stock-based compensation awards	0.5	0.4	1.6	1.7
Conversion of MCPS to common stock	8.6	11.0	8.6	11.0
Balance, end of period	879.5	868.4	879.5	868.4

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				Six-Month Period Ended
	June 30, 2023		July 1, 2022		June 30, 2023		July 1, 2022
RSUs/PSUs:
Pretax compensation expense	$	60	$	58	$	106	$	104
Income tax benefit	(12)		(12)		(21)		(21)
RSU/PSU expense, net of income taxes	48		46		85		83
Stock options:
Pretax compensation expense	49		43		82		77
Income tax benefit	(10)		(9)		(17)		(16)
Stock option expense, net of income taxes	39		34		65		61
Total stock-based compensation:
Pretax compensation expense	109		101		188		181
Income tax benefit	(22)		(21)		(38)		(37)
Total stock-based compensation expense, net of income taxes	$	87	$	80	$	150	$	144

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 June 30, 2023:
Balance, March 31, 2023	$	(2,619)	$	(341)		$	194		$	(2,766)
Other comprehensive income (loss) before reclassifications:
Increase (decrease)	(718)		—			(127)			(845)
Income tax impact	14		—			—			14
Other comprehensive income (loss) before reclassifications, net of income taxes	(704)		—			(127)			(831)
Reclassification adjustments:
Increase (decrease)	—		—		(a)	21		(b)	21
Income tax impact	—		—			—			—
Reclassification adjustments, net of income taxes	—		—			21			21
Net other comprehensive income (loss), net of income taxes	(704)		—			(106)			(810)
Balance, June 30, 2023	$	(3,323)	$	(341)		$	88		$	(3,576)
For the Three-Month Period Ended July 1, 2022:
Balance, April 1, 2022	$	(882)	$	(536)		$	42		$	(1,376)
Other comprehensive income (loss) before reclassifications:
Increase (decrease)	(1,390)		—			381			(1,009)
Income tax impact	(52)		—			(92)			(144)
Other comprehensive income (loss) before reclassifications, net of income taxes	(1,442)		—			289			(1,153)
Reclassification adjustments:
Increase (decrease)	—		10		(a)	(223)		(b)	(213)
Income tax impact	—		(3)			—			(3)
Reclassification adjustments, net of income taxes	—		7			(223)			(216)
Net other comprehensive income (loss), net of income taxes	(1,442)		7			66			(1,369)
Balance, July 1, 2022	$	(2,324)	$	(529)		$	108		$	(2,745)

	Foreign Currency Translation Adjustments		Pension and Postretirement Plan Benefit Adjustments			Cash Flow Hedge Adjustments			Accumulated Comprehensive Income (Loss)
For the Six-Month Period Ended June 30, 2023:
Balance, December 31, 2022	$	(2,644)	$	(341)		$	113		$	(2,872)
Other comprehensive income (loss) before reclassifications:
Increase (decrease)	(695)		—			(90)			(785)
Income tax impact	16		—			—			16
Other comprehensive income (loss) before reclassifications, net of income taxes	(679)		—			(90)			(769)
Reclassification adjustments:
Increase (decrease)	—		—		(a)	65		(b)	65
Income tax impact	—		—			—			—
Reclassification adjustments, net of income taxes	—		—			65			65
Net other comprehensive income (loss), net of income taxes	(679)		—			(25)			(704)
Balance, June 30, 2023	$	(3,323)	$	(341)		$	88		$	(3,576)
For the Six-Month Period Ended July 1, 2022:
Balance, December 31, 2021	$	(539)	$	(550)		$	62		$	(1,027)
Other comprehensive income (loss) before reclassifications:
Increase (decrease)	(1,721)		—			506			(1,215)
Income tax impact	(64)		—			(122)			(186)
Other comprehensive income (loss) before reclassifications, net of income taxes	(1,785)		—			384			(1,401)
Reclassification adjustments:
Increase (decrease)	—		28		(a)	(338)		(b)	(310)
Income tax impact	—		(7)			—			(7)
Reclassification adjustments, net of income taxes	—		21			(338)			(317)
Net other comprehensive income (loss), net of income taxes	(1,785)		21			46			(1,718)
Balance, July 1, 2022	$	(2,324)	$	(529)		$	108		$	(2,745)

(a) This accumulated other comprehensive income (loss) component is included in the computation of net periodic benefit cost (refer to Notes 7 and 12 for additional details).

(b) Reflects reclassification to earnings related to cash flow hedges of certain long-term debt (refer to Note 11 for additional details).