Stockholders' equity

9 Months Ended

Sep. 30, 2016

Equity [Abstract]

Stockholders' equity

Stockholders’ equity

Stock repurchase program

Activity under our stock repurchase program, on a trade date basis, was as follows (in millions):

	2016			2015
	Shares*	Dollars		Shares	Dollars
First quarter	4.7	$	690	2.9	$	451
Second quarter	3.9	591		3.3	515
Third quarter	4.4	747		4.6	703
	12.9	$	2,028	10.8	$	1,669
* Shares do not foot due to rounding.

As of September 30, 2016, $2.9 billion remained available under our stock repurchase program. In October 2016, our Board of Directors authorized an increase that resulted in a total of $5.0 billion available under the stock repurchase program.

Dividends

In October 2016, the Board of Directors declared a quarterly cash dividend of $1.00 per share of common stock, which will be paid in December 2016.

In July 2016, March 2016 and December 2015, the Board of Directors declared quarterly cash dividends of $1.00 per share of common stock, which were paid in September 2016, June 2016 and March 2016, respectively.

Accumulated other comprehensive income/(loss)

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

	Foreign currency translation			Cash flow hedges			Available-for-sale securities			Other			AOCI
Balance as of December 31, 2015	$	(511	)	$	297		$	(260	)	$	(6	)	$	(480	)
Foreign currency translation adjustments	36			—			—			—			36
Unrealized (losses) gains	—			(117		)	379			—			262
Reclassification adjustments to income	—			(166		)	30			—			(136		)
Income taxes	(3		)	104			(51		)	—			50
Balance as of March 31, 2016	$	(478	)	$	118		$	98		$	(6	)	$	(268	)
Foreign currency translation adjustments	(22		)	—			—			—			(22		)
Unrealized (losses) gains	—			(144		)	268			—			124
Reclassification adjustments to income	—			133			23			—			156
Other	—			—			—			1			1
Income taxes	5			5			(107		)	—			(97		)
Balance as of June 30, 2016	$	(495	)	$	112		$	282		$	(5	)	$	(106	)
Foreign currency translation adjustments	11			—			—			—			11
Unrealized gains (losses)	—			35			(19		)	—			16
Reclassification adjustments to income	—			(65		)	(23		)	—			(88		)
Other	—			—			—			1			1
Income taxes	(2		)	14			15			—			27
Balance as of September 30, 2016	$	(486	)	$	96		$	255		$	(4	)	$	(139	)

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

	Amounts reclassified out of AOCI
Components of AOCI	Three months ended September 30, 2016			Three months ended September 30, 2015			Line item affected in the  Statements of Income
Cash flow hedges:
Foreign currency contract gains	$	67		$	86		Product sales
Cross-currency swap contract losses	(1		)	(67		)	Interest and other income, net
Forward interest rate contract losses	(1		)	—			Interest expense, net
	65			19			Total before income tax
	(27		)	(7		)	Tax expense
	$	38		$	12		Net of taxes
Available-for-sale securities:
Net realized gains (losses)	$	23		$	(39	)	Interest and other income, net
	(8		)	15			Tax (expense) benefit
	$	15		$	(24	)	Net of taxes

	Amounts reclassified out of AOCI
Components of AOCI	Nine months ended September 30, 2016			Nine months ended September 30, 2015			Line item affected in the  Statements of Income
Cash flow hedges:
Foreign currency contract gains	$	242		$	246		Product sales
Cross-currency swap contract losses	(143		)	(114		)	Interest and other income, net
Forward interest rate contract losses	(1		)	(1		)	Interest expense, net
	98			131			Total before income tax
	(39		)	(47		)	Tax expense
	$	59		$	84		Net of taxes
Available-for-sale securities:
Net realized losses	$	(30	)	$	(83	)	Interest and other income, net
	—			31			Tax benefit
	$	(30	)	$	(52	)	Net of taxes