Share-Based Compensation

3 Months Ended

Mar. 31, 2021

Share-based Payment Arrangement [Abstract]

Shareholders' Equity and Share-based Payments

Share-Based Compensation and Equity

Stock Options

Stock option activity for the three months ended March 31, 2021 was as follows:

(In thousands, except per share and term data)	Number of Shares	Weighted- Average Exercise  Price (Per Share)		Aggregate Intrinsic  Value		Weighted-Average  Remaining Contractual Term (Yrs)
Outstanding at beginning of year	10,204	$	58.59
Exercised	(705)	51.57
Forfeited and expired	(41)	58.83
Outstanding as of March 31, 2021	9,458	$	59.11	$	120,781	5.36
Exercisable as of March 31, 2021	5,997	$	57.99	$	83,349	4.53

As of March 31, 2021, there was $39 million of total unrecognized compensation cost related to stock options granted under all plans. That cost is expected to be recognized over a weighted-average period of 1.77 years.

Non-vested Shares and Share Units

Non-vested share and share unit activity for the three months ended March 31, 2021 was as follows:

(In thousands, except per share data)	Number of Shares	Weighted-Average Grant Date Fair Value Per Share
Outstanding at beginning of year	4,131	$	68.05
Granted	71	73.95
Vested	(188)	65.89
Forfeited	(64)	69.07
Outstanding as of March 31, 2021	3,950	$	68.24

As of March 31, 2021, there was $158 million of total unrecognized compensation cost related to non-vested share and share unit awards granted under all plans. That cost is expected to be recognized over a weighted-average period of 1.68 years.

Share-Based Compensation Cost

The following table presents total compensation expense recognized with respect to stock options, non-vested shares and share units, and our associate stock purchase plan:

	Three Months Ended
(In thousands)	2021		2020
Stock option and non-vested share and share unit compensation expense	$	47,950	$	35,031
Associate stock purchase plan expense	1,548		1,101
Amounts capitalized in software development costs, net of amortization	(1,663)		(745)
Amounts charged against earnings, before income tax benefit	$	47,835	$	35,387
Amount of related income tax benefit recognized in earnings	$	10,256	$	6,443

Treasury Stock

Under our current share repurchase program, which was initially approved by our Board of Directors in May 2017 and most recently amended in December 2019, the Company is authorized to repurchase up to $3.70 billion of shares of our common stock, excluding transaction costs. The repurchases are to be effectuated in the open market, by block purchase, in privately negotiated transactions, or through other transactions managed by broker-dealers. No time limit was set for the completion of the program. During the three months ended March 31, 2021, we repurchased 4.9 million shares for total consideration of $350 million under the program. The shares were recorded as treasury stock and accounted for under the cost method. No repurchased shares have been retired. As of March 31, 2021, $577 million remained available for repurchase under the program.

Dividends

On March 25, 2021, our Board of Directors declared a cash dividend of $0.22 per share on our issued and outstanding common stock, which was paid on April 20, 2021 to shareholders of record as of April 6, 2021. In connection with the declaration of such dividend, our non-vested shares and share units are entitled to dividend equivalents, which will be payable to the holder subject to, and upon vesting of, the underlying awards. Our outstanding stock options are not entitled to dividend or dividend equivalents. At both March 31, 2021 and December 31, 2020, our condensed consolidated balance sheets included liabilities for dividends payable of $69 million, which are included in "Other current liabilities".

Accumulated Other Comprehensive Loss, Net (AOCI)

The components of AOCI, net of tax, were as follows:

	Foreign currency translation adjustment and other		Unrealized loss on cash flow hedge		Unrealized holding gain (loss) on available-for-sale investments		Total
(In thousands)
Balance at December 31, 2020	$	(93,450)	$	(27,788)	$	434	$	(120,804)
Other comprehensive income (loss) before reclassifications	(8,991)		2,061		(217)		(7,147)
Amounts reclassified from AOCI	—		2,527		—		2,527
Balance at March 31, 2021	$	(102,441)	$	(23,200)	$	217	$	(125,424)

	Foreign currency translation adjustment and other		Unrealized loss on cash flow hedge		Unrealized holding gain (loss) on available-for-sale investments		Total
(In thousands)
Balance at December 28, 2019	$	(106,347)	$	(12,578)	$	265	$	(118,660)
Other comprehensive income (loss) before reclassifications	(20,546)		(20,430)		(849)		(41,825)
Amounts reclassified from AOCI	—		1,122		—		1,122
Balance at March 31, 2020	$	(126,893)	$	(31,886)	$	(584)	$	(159,363)

The effects on net earnings of amounts reclassified from AOCI were as follows:

(In thousands)		Three Months Ended
AOCI Component	Location	2021		2020
Unrealized loss on cash flow hedge	Other income, net	$	(3,217)	$	(1,372)
	Income taxes	690		250
Total amount reclassified, net of tax		$	(2,527)	$	(1,122)