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Stockholders' Equity
 12 Months Ended
Dec. 31, 2017
Stockholders' Equity Attributable to Parent [Abstract]  
Stockholders' Equity Note Disclosure
STOCKHOLDERS’ EQUITY
Stock Repurchase Programs
In the first quarter of 2016, our Board of Directors authorized a $12.0 billion stock repurchase program (2016 Program) under which repurchases may be made in the open market or in privately negotiated transactions. The 2016 Program commenced after the $15.0 billion stock repurchase program authorized by our Board of Directors in January 2015 (2015 Program) was completed in the second quarter of 2016. The $5.0 billion stock repurchase program authorized by our Board of Directors in May 2014 (2014 Program) was completed in the first quarter of 2015.
During 2017, we repurchased and retired 13 million shares of our common stock for $954 million through open market transactions under the 2016 Program. As of December 31, 2017, the remaining authorized repurchase amount under the 2016 Program was $8.0 billion.
In February 2016, we entered into an accelerated stock repurchase program (ASR) to repurchase $5.0 billion of our common stock under the 2015 Program. We made an upfront payment of $5.0 billion and received 46 million shares of our common stock. The 46 million shares represented approximately 80% of the total shares calculated based on our common stock closing price of $86.68 per share on the date we entered into the ASR. In April 2016, the ASR settled, and we received an additional 8 million shares of our common stock based on the average price of our common stock during the ASR purchase period less a predetermined discount. As a result, the average purchase price of our common stock from the ASR was $92.09 per share.
We accounted for the ASR as two separate transactions: (a) as shares of common stock acquired in a treasury stock transaction recorded on the transaction date and (b) as a forward contract indexed to our own common stock. As such, the up-front payment of $5.0 billion was accounted for as a reduction to Stockholders’ equity on our Consolidated Balance Sheets in the period the payment was made. The ASR met all of the applicable criteria for equity classification and therefore was not accounted for as a derivative instrument. The shares received under the ASR were retired in the periods they were received.
The following table summarizes our stock repurchases under the above-described programs (in millions, except per share data):
 
 
Year ended December 31,
 
 
2017 (1)
 
2016 (2)
 
2015 (3)
Shares repurchased and retired
 
13

 
123

 
95

Amount
 
$
954

 
$
11,001

 
$
10,002

Average price per share
 
$
71.79

 
$
89.15

 
$
104.91

_______________________
 
 
 
 
 
 
Notes:
(1) 
All repurchases were under the 2016 Program.
(2) 
Includes 36 million shares repurchased for $3.0 billion under the 2016 Program and 87 million shares repurchased for $8.0 billion under the 2015 Program.
(3) 
Includes 65 million shares repurchased for $7.0 billion under the 2015 Program and 30 million shares repurchased for $3.0 billion under the 2014 Program.

In addition to repurchases from our stock repurchase programs, we repurchased shares of common stock withheld by us from employee restricted stock awards to satisfy our applicable tax withholding obligations, which are immaterial and excluded from the table above.
We use the par value method of accounting for our stock repurchases. Under the par value method, common stock is first charged with the par value of the shares involved. The excess of the cost of shares acquired over the par value is allocated to APIC based on an estimated average sales price per issued share with the excess amounts charged to retained earnings.
The following table summarizes the reduction of common stock and APIC and the charge to retained earnings as a result of our stock repurchases (in millions):
 
 
Year ended December 31,
 
 
2017
 
2016
 
2015
Reduction of common stock and APIC
 
$
34

 
$
302

 
$
223

Charge to retained earnings
 
$
1,028

 
$
10,883

 
$
10,115


Dividends
The following table summarizes cash dividends declared on our common stock (in millions, except per share data):
 
 
2017
 
2016
 
 
Dividend Per Share
 
Amount
 
Dividend Per Share
 
Amount
First quarter
 
$
0.52

 
$
685

 
$
0.43

 
$
587

Second quarter
 
0.52

 
685

 
0.47

 
631

Third quarter
 
0.52

 
685

 
0.47

 
625

Fourth quarter
 
0.52

 
687

 
0.47

 
622

Total
 
$
2.08

 
$
2,742

 
$
1.84

 
$
2,465


Our restricted stock and performance-based stock units have dividend equivalent rights entitling holders to dividend equivalents to be paid upon vesting for each share of the underlying units.
On February 6, 2018, we announced that our Board of Directors declared a quarterly cash dividend of $0.57 per share of our common stock, with a payment date of March 29, 2018 to all stockholders of record as of the close of business on March 16, 2018. Future dividends are subject to declaration by the Board of Directors.
Preferred Stock
We have 5 million shares of authorized preferred stock issuable in series. Our Board is authorized to determine the designation, powers, preferences and rights of any such series. There was no preferred stock outstanding as of December 31, 2017 and 2016.
Accumulated Other Comprehensive Income
The following table summarizes the changes in AOCI by component, net of tax (in millions):
 
 
Foreign Currency Translation
 
Unrealized Gains and Losses on Available-for-Sale Securities
 
Unrealized Gains and Losses on Cash Flow Hedges
 
Total
Balance at December 31, 2015
 
$
(45
)
 
$
(16
)
 
$
149

 
$
88

Other comprehensive income before reclassifications
 
177

 
7

 
5

 
189

Amounts reclassified from accumulated other comprehensive income
 
—

 
(7
)
 
8

 
1

Net current period other comprehensive income
 
177

 
—

 
13

 
190

Balance at December 31, 2016
 
132

 
(16
)
 
162

 
278

Other comprehensive income (loss) before reclassifications
 
(47
)
 
218

 
(304
)
 
(133
)
Amounts reclassified from accumulated other comprehensive income
 
—

 
(8
)
 
28

 
20

Net current period other comprehensive income (loss)
 
(47
)
 
210

 
(276
)
 
(113
)
Balance at December 31, 2017
 
$
85

 
$
194

 
$
(114
)
 
$
165


The amounts reclassified for gains and losses on cash flow hedges were recorded as part of Product sales on our Consolidated Statements of Income. See Note 4, Derivative Financial Instruments for additional information. Amounts reclassified for gains and losses on available-for-sale securities were recorded as part of Other income (expense), net, on our Consolidated Statements of Income.