XML 33 R20.htm IDEA: XBRL DOCUMENT
v3.24.1.u1

Stockholders' Equity and Stock-based Compensation | 3 Months Ended
--- | ---
Mar. 29, 2024
Share-Based Payment Arrangement [Abstract] |
Stockholders' Equity and Stock-based Compensation | STOCKHOLDERS' EQUITY AND STOCK-BASED COMPENSATION Stockholders’ Equity On July 16, 2013, the Company’s Board of Directors approved a repurchase program (the “Repurchase Program”) authorizing the repurchase of up to 20 million shares of the Company’s common stock from time to time on the open market or in privately negotiated transactions. A s of March 29, 2024, approximately 20 million shares remained available f or repurchase pursuant to the Repurchase Program. The following table summarizes the Company’s share activity (shares in millions):
| Three-Month Period Ended |  |
| March 29, 2024 |  | March 31, 2023 |  |  |  |
Preferred stock - shares issued: |  |  |  |  |  |  |
Balance, beginning and end of period | — |  |  | 1.7 |  |  |  |  |
Common stock - shares issued: |  |  |  |  |  |  |
Balance, beginning of period | 880.5 |  |  | 869.3 |  |  |  |  |
Common stock-based compensation awards | 1.8 |  |  | 1.1 |  |  |  |  |
Balance, end of period | 882.3 |  |  | 870.4 |  |  |  |  |
As of April 17, 2023, all outstanding shares of the Company’s MCPS converted to common shares at a rate of 5.0175 common shares per share of preferred stock into an aggregate of 8.6 million shares of the Company’s common stock, pursuant to the terms of the Certificate of Designation governing the Preferred Stock. For additional information on the MCPS, refer to Note 19 in the Company’s 2023 Annual Report. Stock-Based Compensation For a full description of the Company’s stock-based compensation programs, refer to Note 19 of the Company’s financial statements as of and for the year ended December 31, 2023 included in the Company’s 2023 Annual Report. As of March 29, 2024, approximately 47 million shares of the Com pany’s common stock were reserved for issuance under the 2007 Omnibus Incentive Plan. The following summarizes the components of the Company’s stock-based compensation expense ($ in millions):
| Three-Month Period Ended |  |
| March 29, 2024 |  | March 31, 2023 |  |  |  |
RSUs/PSUs: |  |  |  |  |  |  |
Pretax compensation expense | $ | 32 |  |  | $ | 41 |  |  |  |  |
Income tax benefit | (6) |  |  | (8) |  |  |  |  |
RSU/PSU expense, net of income taxes | 26 |  |  | 33 |  |  |  |  |
Stock options: |  |  |  |  |  |  |
Pretax compensation expense | 28 |  |  | 29 |  |  |  |  |
Income tax benefit | (6) |  |  | (6) |  |  |  |  |
Stock option expense, net of income taxes | 22 |  |  | 23 |  |  |  |  |
Total stock-based compensation: |  |  |  |  |  |  |
Pretax compensation expense | 60 |  |  | 70 |  |  |  |  |
Income tax benefit | (12) |  |  | (14) |  |  |  |  |
Total stock-based compensation expense, net of income taxes | $ | 48 |  |  | $ | 56 |  |  |  |  |
Stock-based compensation has been recognized as a component of selling, general and administrative expenses in the accompanying Consolidated Condensed Statements of Earnings. As of March 29, 2024, $252 million of total unrecognized compensation cost related to RSUs/PSUs is expected to be recognized over a weighted average period of approximately two years. As of March 29, 2024, $274 million of total unrecognized compensation cost related to stock options is expected to be recognized over a weighted average period of approximately two years. Future compensation amounts will be adjusted for any changes in estimated forfeitures. Accumulated Other Comprehensive Income Accumulated OCI refers to certain gains and losses that under U.S. GAAP are included in comprehensive income (loss) but are excluded from net earnings as these amounts are initially recorded as an adjustment to stockholders’ equity. Foreign currency translation adjustments generally relate to indefinite investments in non-U.S. subsidiaries, as well as the impact from the Company’s hedges of its net investment in foreign operations, including the Company’s cross-currency swap derivatives, net of any income tax impacts. The changes in accumulated OCI by component are summarized below ($ in millions).
| Foreign Currency Translation Adjustments |  | Pension and Postretirement Plan Benefit Adjustments |  |  |  | Cash Flow Hedge Adjustments |  | Accumulated Comprehensive Income (Loss)
For the Three-Month Period Ended March 29, 2024: |  |  |  |  |  |  |  |  |
Balance, December 31, 2023 | $ | (1,446) |  |  | $ | (401) |  |  |  |  | $ | 99 |  |  | $ | (1,748) |
OCI before reclassifications: |  |  |  |  |  |  |  |  |
Increase (decrease) | (935) |  |  | — |  |  |  |  | 23 |  |  | (912) |
Income tax impact | (13) |  |  | — |  |  |  |  | — |  |  | (13) |
OCI before reclassifications, net of income taxes | (948) |  |  | — |  |  |  |  | 23 |  |  | (925) |
Reclassification adjustments: |  |  |  |  |  |  |  |  |
Increase (decrease) | — |  |  | 3 |  | (a) |  |  | (73) |  | (b) | (70) |
Income tax impact | — |  |  | (1) |  |  |  |  | — |  |  | (1) |
Reclassification adjustments, net of income taxes | — |  |  | 2 |  |  |  |  | (73) |  |  | (71) |
Net OCI, net of income taxes | (948) |  |  | 2 |  |  |  |  | (50) |  |  | (996) |
Balance, March 29, 2024 | $ | (2,394) |  |  | $ | (399) |  |  |  |  | $ | 49 |  |  | $ | (2,744) |
For the Three-Month Period Ended March 31, 2023: |  |  |  |  |  |  |  |  |
Balance, December 31, 2022 | $ | (2,644) |  |  | $ | (341) |  |  |  |  | $ | 113 |  |  | $ | (2,872) |
OCI before reclassifications: |  |  |  |  |  |  |  |  |
Increase (decrease) | 23 |  |  | — |  |  |  |  | 37 |  |  | 60 |
Income tax impact | 2 |  |  | — |  |  |  |  | — |  |  | 2 |
OCI before reclassifications, net of income taxes | 25 |  |  | — |  |  |  |  | 37 |  |  | 62 |
Reclassification adjustments: |  |  |  |  |  |  |  |  |
Increase (decrease) | — |  |  | — |  | (a) |  |  | 44 |  | (b) | 44 |
Income tax impact | — |  |  | — |  |  |  |  | — |  |  | — |
Reclassification adjustments, net of income taxes | — |  |  | — |  |  |  |  | 44 |  |  | 44 |
Net OCI, net of income taxes | 25 |  |  | — |  |  |  |  | 81 |  |  | 106 |
Balance, March 31, 2023 | $ | (2,619) |  |  | $ | (341) |  |  |  |  | $ | 194 |  |  | $ | (2,766) |
(a) This accumulated other comprehensive income (loss) component is included in the computation of net periodic benefit cost (refer to Note 8 for additional details). (b) Reflects reclassification to earnings related to cash flow hedges of certain long-term debt (refer to Note 12 for additional details).

X
- Definition The entire disclosure for share-based payment arrangement. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a)(1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480429/718-10-50-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//718/tableOfContent Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480429/718-10-50-2 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h)(2) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480429/718-10-50-2 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h)(2)(i) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480429/718-10-50-2 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (l) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480429/718-10-50-2 + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsSharebasedPaymentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration