Stockholders' Equity

12 Months Ended

Dec. 31, 2020

Stockholders' Equity Attributable to Parent [Abstract]

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. We started repurchases under the 2016 Program in April 2016.

In the first quarter of 2020, our Board of Directors authorized a new $5.0 billion stock repurchase program (“2020 Program”), which will commence upon the completion of the 2016 Program. Purchases under the 2020 Program may be made in the open market or in privately negotiated transactions.

As of December 31, 2020, the remaining authorized repurchase amount from both programs was $6.8 billion.

The following table summarizes our stock repurchases under the 2016 Program:


	Year ended December 31,
(in millions, except per share amounts)	2020		2019		2018
Shares repurchased and retired	22		26		40
Amount	$	1,583	$	1,749	$	2,900
Average price per share	$	70.64	$	66.36	$	72.95

In addition to repurchases from the 2016 Program and 2020 Program, 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 additional paid-in capital (“APIC”) based on an estimated average sales price per issued share with the excess amounts charged to retained earnings.

Dividends

The following table summarizes cash dividends declared on our common stock:


	2020				2019
(in millions, except per share amounts)	Dividend Per Share		Amount		Dividend Per Share		Amount
First quarter	$	0.68	$	867	$	0.63	$	814
Second quarter	0.68		866		0.63		810
Third quarter	0.68		866		0.63		807
Fourth quarter	0.68		865		0.63		808
Total	$	2.72	$	3,464	$	2.52	$	3,239

Our restricted stock and performance share awards or units have dividend equivalent rights entitling holders to dividend equivalents to be paid upon vesting for each share of the underlying unit.

On February 4, 2021, we announced that our Board of Directors declared a quarterly cash dividend of $0.71 per share of our common stock, with a payment date of March 30, 2021 to all stockholders of record as of the close of business on March 15, 2021. Future dividends are subject to declaration by our 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, 2020 and 2019.

Accumulated Other Comprehensive Income

The following table summarizes the changes in AOCI by component, net of tax:


(in millions)	Foreign Currency Translation, Net of Tax		Unrealized Gains and Losses on Available-for-Sale Debt Securities, Net of Tax		Unrealized Gains and Losses on Cash Flow Hedges, Net of Tax		Total
Balance at January 1, 2018	$	85	$	(99)	$	(114)	$	(128)
Net unrealized gain (loss)	(38)		43		112		117
Reclassifications to net income	—		4		87		91
Net current period other comprehensive income (loss)	(38)		47		199		208
Balance at December 31, 2018	$	47	$	(52)	$	85	$	80
Net unrealized gain	6		54		72		132
Reclassifications to net income	—		(1)		(126)		(127)
Net current period other comprehensive income (loss)	6		53		(54)		5
Balance at December 31, 2019	$	53	$	1	$	31	$	85
Net unrealized gain (loss)	$	(2)	$	43	$	(103)	$	(62)
Reclassifications to net income	—		(42)		(41)		(83)
Net current period other comprehensive income (loss)	(2)		1		(144)		(145)
Balance at December 31, 2020	$	51	$	2	$	(113)	$	(60)

The amounts reclassified to net income for gains and losses on cash flow hedges are recorded as part of Product sales on our Consolidated Statements of Income. See Note 5. Derivative Financial Instruments for additional information. The amounts reclassified to net income for gains and losses on available-for-sale debt securities are recorded as part of Other income (expense), net, on our Consolidated Statements of Income. The income tax impact allocated to each component of other comprehensive income was not material for the periods presented.