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Stockholders' Equity and Stock-based Compensation | 6 Months Ended
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Jun. 28, 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. During the second quarter of 2024, the Company repurchased approximately 17.4 million shares of the Company’s common stock for approximately $4.6 billion (which includes $46 million of excise taxes which will be paid in 2025) as part of the Repurchase Program. As of June 28, 2024, approximately 2.6 million shares remained available for repurchase pursuant to the Repurchase Program. In July 2024, the Company repurchased approximately 1.9 million shares under the Repurchase Program. On July 22, 2024, the Company’s Board of Directors approved a new repurchase program (the “New Repurchase Program”) authorizing the repurchase of up to an additional 20 million shares of the Company’s common stock from time to time on the open market or in privately negotiated transactions (in addition to the shares remaining available for repurchase under the Repurchase Program). There is no expiration date for either the Repurchase Program or the New Repurchase Program, and the timing and amount of any shares repurchased under either program will be determined by members of the Company’s management based on its evaluation of market conditions and other factors. Either program may be suspended or discontinued at any time. Any repurchased shares will be available for use in connection with the Company’s equity compensation plans (or any successor plans) and for other corporate purposes. The following table summarizes the Company’s share activity (shares in millions):
| Three-Month Period Ended |  | Six-Month Period Ended
| June 28, 2024 |  | June 30, 2023 |  | June 28, 2024 |  | June 30, 2023
Preferred stock - shares issued: |  |  |  |  |  |  |
Balance, beginning of period | — |  |  | 1.7 |  |  | — |  |  | 1.7 |
Conversion of MCPS to common stock | — |  |  | (1.7) |  |  | — |  |  | (1.7) |
Balance, end of period | — |  |  | — |  |  | — |  |  | — |
Common stock - shares issued: |  |  |  |  |  |  |
Balance, beginning of period | 882.3 |  |  | 870.4 |  |  | 880.5 |  |  | 869.3 |
Common stock-based compensation awards | 0.9 |  |  | 0.5 |  |  | 2.7 |  |  | 1.6 |
Issuance of common stock | — |  |  | 8.6 |  |  | — |  |  | 8.6 |
Balance, end of period | 883.2 |  |  | 879.5 |  |  | 883.2 |  |  | 879.5 |
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 June 28, 2024, approximately 47 million shares of the Company’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 |  | Six-Month Period Ended
| June 28, 2024 |  | June 30, 2023 |  | June 28, 2024 |  | June 30, 2023
RSUs/PSUs: |  |  |  |  |  |  |
Pretax compensation expense | $ | 46 |  |  | $ | 53 |  |  | $ | 78 |  |  | $ | 94 |
Income tax benefit | (10) |  |  | (12) |  |  | (16) |  |  | (20) |
RSU/PSU expense, net of income taxes | 36 |  |  | 41 |  |  | 62 |  |  | 74 |
Stock options: |  |  |  |  |  |  |
Pretax compensation expense | 41 |  |  | 43 |  |  | 69 |  |  | 72 |
Income tax benefit | (8) |  |  | (9) |  |  | (14) |  |  | (15) |
Stock option expense, net of income taxes | 33 |  |  | 34 |  |  | 55 |  |  | 57 |
Total stock-based compensation: |  |  |  |  |  |  |
Pretax compensation expense | 87 |  |  | 96 |  |  | 147 |  |  | 166 |
Income tax benefit | (18) |  |  | (21) |  |  | (30) |  |  | (35) |
Total stock-based compensation expense, net of income taxes | $ | 69 |  |  | $ | 75 |  |  | $ | 117 |  |  | $ | 131 |
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 June 28, 2024, $202 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 June 28, 2024, $230 million of total unrecognized compensation cost related to stock options is expected to be recognized over a weighted average period of approximately two years. Future compensation amounts will be adjusted for any changes in estimated forfeitures. Accumulated Other Comprehensive Income Accumulated OCI refers to certain gains and losses that under U.S. GAAP are included in comprehensive income (loss) but are excluded from net earnings as these amounts are initially recorded as an adjustment to stockholders’ equity. Foreign currency translation adjustments generally relate to indefinite investments in non-U.S. subsidiaries, as well as the impact from the Company’s hedges of its net investment in foreign operations, including the Company’s cross-currency swap derivatives, net of any income tax impacts. The changes in accumulated OCI by component are summarized below ($ 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 June 28, 2024: |  |  |  |  |  |  |  |  |
Balance, March 29, 2024 | $ | (2,394) |  |  | $ | (399) |  |  |  |  | $ | 49 |  |  | $ | (2,744) |
OCI before reclassifications: |  |  |  |  |  |  |  |  |
Increase (decrease) | 133 |  |  | — |  |  |  |  | 55 |  |  | 188 |
Income tax impact | (12) |  |  | — |  |  |  |  | — |  |  | (12) |
OCI before reclassifications, net of income taxes | 121 |  |  | — |  |  |  |  | 55 |  |  | 176 |
Reclassification adjustments: |  |  |  |  |  |  |  |  |
Increase (decrease) | — |  |  | 2 |  | (a) |  |  | (24) |  | (b) | (22) |
Income tax impact | — |  |  | — |  |  |  |  | (1) |  |  | (1) |
Reclassification adjustments, net of income taxes | — |  |  | 2 |  |  |  |  | (25) |  |  | (23) |
Net OCI, net of income taxes | 121 |  |  | 2 |  |  |  |  | 30 |  |  | 153 |
Balance, June 28, 2024 | $ | (2,273) |  |  | $ | (397) |  |  |  |  | $ | 79 |  |  | $ | (2,591) |
For the Three-Month Period Ended June 30, 2023: |  |  |  |  |  |  |  |  |
Balance, March 31, 2023 | $ | (2,619) |  |  | $ | (341) |  |  |  |  | $ | 194 |  |  | $ | (2,766) |
OCI before reclassifications: |  |  |  |  |  |  |  |  |
Increase (decrease) | (718) |  |  | — |  |  |  |  | (127) |  |  | (845) |
Income tax impact | 14 |  |  | — |  |  |  |  | — |  |  | 14 |
OCI before reclassifications, net of income taxes | (704) |  |  | — |  |  |  |  | (127) |  |  | (831) |
Reclassification adjustments: |  |  |  |  |  |  |  |  |
Increase (decrease) | — |  |  | — |  | (a) |  |  | 21 |  | (b) | 21 |
Income tax impact | — |  |  | — |  |  |  |  | — |  |  | — |
Reclassification adjustments, net of income taxes | — |  |  | — |  |  |  |  | 21 |  |  | 21 |
Net OCI, net of income taxes | (704) |  |  | — |  |  |  |  | (106) |  |  | (810) |
Balance, June 30, 2023 | $ | (3,323) |  |  | $ | (341) |  |  |  |  | $ | 88 |  |  | $ | (3,576) |
| Foreign Currency Translation Adjustments |  | Pension and Postretirement Plan Benefit Adjustments |  |  |  | Cash Flow Hedge Adjustments |  | Accumulated Comprehensive Income (Loss)
For the Six-Month Period Ended June 28, 2024: |  |  |  |  |  |  |  |  |
Balance, December 31, 2023 | $ | (1,446) |  |  | $ | (401) |  |  |  |  | $ | 99 |  |  | $ | (1,748) |
OCI before reclassifications: |  |  |  |  |  |  |  |  |
Increase (decrease) | (802) |  |  | — |  |  |  |  | 78 |  |  | (724) |
Income tax impact | (25) |  |  | — |  |  |  |  | — |  |  | (25) |
OCI before reclassifications, net of income taxes | (827) |  |  | — |  |  |  |  | 78 |  |  | (749) |
Reclassification adjustments: |  |  |  |  |  |  |  |  |
Increase (decrease) | — |  |  | 5 |  | (a) |  |  | (97) |  | (b) | (92) |
Income tax impact | — |  |  | (1) |  |  |  |  | (1) |  |  | (2) |
Reclassification adjustments, net of income taxes | — |  |  | 4 |  |  |  |  | (98) |  |  | (94) |
Net OCI, net of income taxes | (827) |  |  | 4 |  |  |  |  | (20) |  |  | (843) |
Balance, June 28, 2024 | $ | (2,273) |  |  | $ | (397) |  |  |  |  | $ | 79 |  |  | $ | (2,591) |
For the Six-Month Period Ended June 30, 2023: |  |  |  |  |  |  |  |  |
Balance, December 31, 2022 | $ | (2,644) |  |  | $ | (341) |  |  |  |  | $ | 113 |  |  | $ | (2,872) |
OCI before reclassifications: |  |  |  |  |  |  |  |  |
Increase (decrease) | (695) |  |  | — |  |  |  |  | (90) |  |  | (785) |
Income tax impact | 16 |  |  | — |  |  |  |  | — |  |  | 16 |
OCI before reclassifications, net of income taxes | (679) |  |  | — |  |  |  |  | (90) |  |  | (769) |
Reclassification adjustments: |  |  |  |  |  |  |  |  |
Increase (decrease) | — |  |  | — |  | (a) |  |  | 65 |  | (b) | 65 |
Income tax impact | — |  |  | — |  |  |  |  | — |  |  | — |
Reclassification adjustments, net of income taxes | — |  |  | — |  |  |  |  | 65 |  |  | 65 |
Net OCI, net of income taxes | (679) |  |  | — |  |  |  |  | (25) |  |  | (704) |
Balance, June 30, 2023 | $ | (3,323) |  |  | $ | (341) |  |  |  |  | $ | 88 |  |  | $ | (3,576) |
(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).

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