Quarterly report pursuant to Section 13 or 15(d)

Stockholders' Equity (Notes)

v3.10.0.1
Stockholders' Equity (Notes)
 3 Months Ended
Dec. 30, 2018
Stockholders' Equity Attributable to Parent [Abstract]  
Stockholders' Equity
Stockholders’ Equity
Changes in stockholders’ equity in the three months ended December 30, 2018 were as follows (in millions):
 
Total Stockholders’ Equity
Balance at September 30, 2018
$
807

Cumulative effect of accounting changes (Note 1)
3,403

Net income
1,068

Other comprehensive loss
(12
)
Common stock issued under employee benefit plans and related tax benefits
27

Share-based compensation
249

Tax withholdings related to vesting of share-based payments
(139
)
Dividends
(767
)
Stock repurchases
(1,019
)
Balance at December 30, 2018
$
3,617


Accumulated Other Comprehensive Income. Changes in the components of accumulated other comprehensive income, net of income taxes, in stockholders’ equity in the three months ended December 30, 2018 were as follows (in millions):
 
Foreign Currency Translation Adjustment
 
Noncredit Other-than-Temporary Impairment Losses and Subsequent Changes in Fair Value for Certain Available-for-Sale Debt Securities
 
Net Unrealized Gain (Loss) on Other Available-for-Sale Securities
 
Net Unrealized (Loss) Gain on Derivative Instruments
 
Other Gains
 
Total Accumulated Other Comprehensive Income
Balance at September 30, 2018
$
11

 
$
23

 
$
243

 
$
(13
)
 
$
1

 
$
265

Other comprehensive (loss) income before reclassifications
(24
)
 
—

 
(5
)
 
16

 
—

 
(13
)
Reclassifications from accumulated other comprehensive income
3

 
—

 
(51
)
 
(2
)
 
—

 
(50
)
Other comprehensive (loss) income
(21
)
 
—

 
(56
)
 
14

 
—

 
(63
)
Balance at December 30, 2018
$
(10
)
 
$
23

 
$
187

 
$
1

 
$
1

 
$
202


Reclassifications from accumulated other comprehensive income included adjustments of $51 million to the opening retained earnings balance as a result of the adoption of new accounting guidance in the first quarter of fiscal 2019 related to financial instruments and hedge instruments (Note 1). Reclassifications from accumulated other comprehensive income (excluding adjustments to opening retained earnings) related to available-for-sale securities were negligible in the three months ended December 30, 2018 and December 24, 2017 and were recorded in investment and other income, net (Note 2).
Stock Repurchase Program. On July 26, 2018, we announced a stock repurchase program authorizing us to repurchase up to $30 billion of our common stock. The stock repurchase program has no expiration date.
In September 2018, we entered into three accelerated share repurchase agreements (ASR Agreements) with three financial institutions under which we paid an aggregate of $16.0 billion upfront and received an initial delivery of 178.4 million shares of our common stock, which were retired. The final number of shares to be repurchased will be based on the volume-weighted average stock price of our common stock during the terms of the transactions, less a discount and subject to adjustments pursuant to the terms and conditions of the ASR Agreements, and will also be retired upon delivery to us. The ASR Agreements are scheduled to terminate in early September 2019 but may terminate earlier in certain circumstances. At settlement, one or more of the financial institutions may be required to deliver additional shares of common stock to us, or under certain circumstances, we may be required to deliver shares of common stock or make a cash payment to one or more of the financial institutions, with the method of settlement at our election.
In the three months ended December 30, 2018 and December 24, 2017, we repurchased and retired 16.8 million and 3.7 million shares for $1.0 billion and $225 million, respectively, before commissions. To reflect share repurchases in the consolidated balance sheet, we (i) reduce common stock for the par value of the shares, (ii) reduce paid-in capital for the amount in excess of par to zero during the quarter in which the shares are repurchased and (iii) record the residual amount to retained earnings. At December 30, 2018, $7.8 billion remained authorized for repurchase under our stock repurchase program.
Dividends. Cash dividends announced in the three months ended December 30, 2018 and December 24, 2017 were $0.62 and $0.57 per share, respectively. Dividends charged to retained earnings in the three months ended December 30, 2018 and December 24, 2017 were $767 million and $862 million, respectively. On January 14, 2019, we announced a cash dividend of $0.62 per share on our common stock, payable on March 28, 2019 to stockholders of record as of the close of business on March 7, 2019.