Stockholders' equity

6 Months Ended

Jun. 30, 2015

Equity [Abstract]

Stockholders' equity

Stockholders’ equity

Stock repurchase program

Activity under our stock repurchase program was as follows (in millions):

	2015			2014
	Shares	Dollars		Shares	Dollars
First quarter	2.9	$	451	—	$	—
Second quarter	3.3	515		—	—
Total stock repurchases	6.2	$	966	—	$	—

As of June 30, 2015, $2.9 billion remained available under our stock repurchase program.

Dividends

On December 17, 2014 and March 4, 2015 the Board of Directors declared quarterly cash dividends of $0.79 per share of common stock, which were paid on March 6 and June 5, 2015, respectively. On July 28, 2015, the Board of Directors declared a cash dividend of $0.79 per share of common stock, which will be paid on September 8, 2015, to all stockholders of record as of the close of business on August 17, 2015.

Accumulated other comprehensive income

The components of accumulated other comprehensive income (AOCI) were as follows (in millions):

	Foreign currency translation			Cash flow hedges			Available-for-sale securities			Other			AOCI
Balance as of December 31, 2014	$	(264	)	$	290		$	(19	)	$	(15	)	$	(8	)
Foreign currency translation adjustments	(184		)	—			—			—			(184		)
Unrealized gains	—			168			188			—			356
Reclassification adjustments to income	—			114			35			—			149
Income taxes	11			(104		)	(83		)	—			(176		)
Balance as of March 31, 2015	$	(437	)	$	468		$	121		$	(15	)	$	137
Foreign currency translation adjustments	24			—			—			—			24
Unrealized gains (losses)	—			44			(180		)	—			(136		)
Reclassification adjustments to income	—			(226		)	9			—			(217		)
Income taxes	(6		)	67			63			—			124
Balance as of June 30, 2015	$	(419	)	$	353		$	13		$	(15	)	$	(68	)

The reclassifications out of AOCI to earnings were as follows (in millions):

	Amounts reclassified out of AOCI
Components of AOCI	Three months ended June 30, 2015			Three months ended June 30, 2014			Line item affected in the Statements of Income
Cash flow hedges:
Foreign currency contract gains	$	91		$	—		Product sales
Cross-currency swap contract gains	136			48			Interest and other income, net
Forward interest rate contract losses	(1		)	—			Interest expense
	226			48			Total before income tax
	(81		)	(18		)	Tax expense
	$	145		$	30		Net of taxes
Available-for-sale securities:
Net realized (losses) gains	$	(9	)	$	40		Interest and other income, net
	3			(15		)	Tax benefit/(expense)
	$	(6	)	$	25		Net of taxes

	Amounts reclassified out of AOCI
Components of AOCI	Six months ended June 30, 2015			Six months ended June 30, 2014			Line item affected in the Statements of Income
Cash flow hedges:
Foreign currency contract gains	$	160		$	—		Product sales
Cross-currency swap contract (losses) gains	(47		)	62			Interest and other income, net
Forward interest rate contract losses	(1		)	—			Interest expense
	112			62			Total before income tax
	(40		)	(23		)	Tax expense
	$	72		$	39		Net of taxes
Available-for-sale securities:
Net realized (losses) gains	$	(44	)	$	42		Interest and other income, net
	16			(16		)	Tax benefit/(expense)
	$	(28	)	$	26		Net of taxes