Stockholders' equity

12 Months Ended

Dec. 31, 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):

	Years ended December 31,
	2022			2021			2020
	Shares	Dollars		Shares	Dollars		Shares	Dollars
First quarter	24.6	$	5,410	3.7	$	865	4.3	$	933
Second quarter	—	—		6.5	1,592		2.6	591
Third quarter	1.5	900		4.6	1,069		3.0	752
Fourth quarter	—	—		6.9	1,461		5.3	1,221
Total stock repurchases	26.1	$	6,310	21.7	$	4,987	15.2	$	3,497

During the first quarter of 2022, the Company entered into ASR agreements with third-party financial institutions (Dealers) whereby the Company made payments in an aggregate amount of $6.0 billion 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 remained to be delivered by the Dealers. During the third quarter of 2022, an additional 1.5 million shares of the Company’s common stock were received from the Dealers which constituted final settlement under the ASR agreements, and accordingly, the $0.9 billion decrease in additional paid-in capital recorded in the first quarter was reclassified to accumulated deficit. In total, we repurchased 26.1 million shares of common stock during the year ended December 31, 2022, consisting primarily of the 24.8 million shares received under the ASR agreements.

In October 2022, our Board of Directors increased the amount authorized under our stock repurchase program by an additional $2.4 billion. As of December 31, 2022, $7.0 billion remained available under our stock repurchase program.

Dividends

Our Board of Directors declared quarterly dividends per share of $1.94, $1.76 and $1.60, which were paid in each of the four quarters of 2022, 2021 and 2020, respectively.

Historically, we have declared dividends in December of each year, which were paid in the first quarter of the following fiscal year and in March, July and October, which were paid in the second, third and fourth quarters, respectively, of the same fiscal year. Additionally, on December 12, 2022, the Board of Directors declared a quarterly cash dividend of $2.13 per share of common stock, which will be paid in March 2023, to all stockholders of record as of the close of business on February 15, 2023.

Accumulated other comprehensive 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, 2019	$	(718)	$	175	$	22	$	(7)	$	(528)
Foreign currency translation adjustments	9		—		—		—		9
Unrealized (losses) gains	—		(61)		6		—		(55)
Reclassification adjustments to income	—		(501)		(33)		—		(534)
Other losses	—		—		—		(7)		(7)
Income taxes	—		124		6		—		130
Balance as of December 31, 2020	(709)		(263)		1		(14)		(985)
Foreign currency translation adjustments	(135)		—		—		—		(135)
Unrealized gains (losses)	—		159		(1)		—		158
Reclassification adjustments to income	—		253		—		—		253
Other gains	—		—		—		1		1
Income taxes	—		(88)		—		—		(88)
Balance as of December 31, 2021	(844)		61		—		(13)		(796)
Foreign currency translation adjustments	496		—		—		—		496
Unrealized gains	—		84		—		—		84
Reclassification adjustments to income	—		2		—		—		2
Other gains	—		—		—		2		2
Income taxes	—		(19)		—		—		(19)
Balance as of December 31, 2022	$	(348)	$	128	$	—	$	(11)	$	(231)

With respect to the table above, income tax expenses or benefits for unrealized gains and losses and the related reclassification adjustments to income for cash flow hedges were a $19 million expense and a $0 million expense in 2022, a $33 million expense and a $55 million expense in 2021 and a $14 million benefit and a $110 million benefit in 2020, respectively. Income tax expenses or benefits for unrealized gains and losses and the related reclassification adjustments to income for available-for-sale securities were a $1 million expense and a $7 million benefit in 2020, respectively.

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

	Years ended December 31,
Components of AOCI	2022		2021		2020		Consolidated Statements of Income locations
Cash flow hedges:
Foreign currency contract gains (losses)	$	231	$	(8)	$	178	Product sales
Cross-currency swap contract (losses) gains	(233)		(245)		323		Other (expense) income, net
	(2)		(253)		501		Income before income taxes
	—		55		(110)		Provision for income taxes
	$	(2)	$	(198)	$	391	Net income
Available-for-sale securities:
Net realized gains	$	—	$	—	$	33	Other (expense) income, net
	—		—		(7)		Provision for income taxes
	$	—	$	—	$	26	Net income

Other

In addition to common stock, our authorized capital includes 5 million shares of preferred stock, $0.0001 par value. As of December 31, 2022 and 2021, no shares of preferred stock were issued or outstanding.