Stockholders' equity

6 Months Ended

Jun. 30, 2022

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):

	2022			2021
	Shares	Dollars		Shares	Dollars
First quarter	24.6	$	5,410	3.7	$	865
Second quarter	—	—		6.5	1,592
Total stock repurchases	24.6	$	5,410	10.2	$	2,457

On February 24, 2022, the Company entered into ASR agreements with three third-party financial institutions (Dealers). Under the ASR agreements, the Company made payments in an aggregate amount of $6.0 billion on February 25, 2022, to the Dealers and received and retired an initial 23.3 million shares of the Company’s common stock from the Dealers. The payments were recorded as reductions to shareholders’ equity, consisting of a $5.1 billion increase to accumulated deficit, which reflects the value of the initial shares received, and a $0.9 billion decrease in additional paid-in capital, which reflects the value of the stock that remains to be delivered by the Dealers pending final settlement. The final number of shares to be repurchased by the Company will be based on the daily volume-weighted average stock price of the Company’s common stock during the terms of the ASR agreements, less a discount and subject to adjustments pursuant to the terms and conditions of the ASR agreements. At settlement, under certain circumstances, one or more of the Dealers may be required to deliver additional shares of common stock to the Company, or under certain circumstances, the Company may be required to deliver shares of common stock or to make a cash payment, at its election, to a Dealer. The final settlement under the ASR agreements is scheduled to occur in the third quarter of 2022, subject to an earlier termination under certain limited circumstances, as set forth in the ASR agreements. In total, we repurchased 24.6 million shares of common stock in the first quarter of 2022, including shares received under the ASR agreements.

As of June 30, 2022, $4.6 billion of authorization remained available under our stock repurchase program.

Dividends

In March 2022 and December 2021, the Board of Directors declared a quarterly cash dividend of $1.94 per share, which were paid in June 2022 and March 2022, respectively. In August 2022, the Board of Directors declared a quarterly cash dividend of $1.94 per share, which will be paid on September 8, 2022.

Accumulated other comprehensive income (loss)

The components of AOCI were as follows (in millions):

	Foreign currency translation		Cash flow hedges		Available-for-sale securities		Other		AOCI
Balance as of December 31, 2021	$	(844)	$	61	$	—	$	(13)	$	(796)
Foreign currency translation adjustments	(51)		—		—		—		(51)
Unrealized gains	—		56		—		—		56
Reclassification adjustments to income	—		51		—		—		51
Income taxes	—		(23)		—		—		(23)
Balance as of March 31, 2022	(895)		145		—		(13)		(763)
Foreign currency translation adjustments	(65)		—		—		—		(65)
Unrealized gains	—		67		—		—		67
Reclassification adjustments to income	—		132		—		—		132
Income taxes	—		(43)		—		—		(43)
Balance as of June 30, 2022	$	(960)	$	301	$	—	$	(13)	$	(672)

Reclassifications out of AOCI and into earnings, including related income tax expenses, were as follows (in millions):

	Three months ended June 30,
Components of AOCI	2022		2021		Condensed Consolidated Statements of Income locations
Cash flow hedges:
Foreign currency contract gains (losses)	$	53	$	(18)	Product sales
Cross-currency swap contract (losses) gains	(185)		46		Other (expense) income, net
	(132)		28		Income before income taxes
	28		(6)		Provision for income taxes
	$	(104)	$	22	Net income
	Six months ended June 30,
Components of AOCI	2022		2021		Condensed Consolidated Statements of Income locations
Cash flow hedges:
Foreign currency contract gains (losses)	$	80	$	(19)	Product sales
Cross-currency swap contract losses	(263)		(86)		Other (expense) income, net
	(183)		(105)		Income before income taxes
	39		22		Provision for income taxes
	$	(144)	$	(83)	Net income