Shareholders' Equity

12 Months Ended

Jan. 02, 2021

Shareholders’ Equity

Capital Stock

We have authorization for 15 million shares of preferred stock with a par value of $0.01 and 500 million shares of common stock with a par value of $0.125. Outstanding common stock activity is presented below:


(In thousands)	2020	2019	2018
Balance at beginning of year	227,956	235,621	261,471
Share repurchases	(4,145)	(10,011)	(29,094)
Share-based compensation activity	2,633	2,346	3,244
Balance at end of year	226,444	227,956	235,621

Earnings Per Share

We calculate basic and diluted earnings per share (EPS) based on net income, which approximates income available to common shareholders for each period. Basic EPS is calculated using the two-class method, which includes the weighted-average number of common shares outstanding during the period and restricted stock units to be paid in stock that are deemed participating securities as they provide nonforfeitable rights to dividends. Diluted EPS considers the dilutive effect of all potential future common stock, including stock options.

The weighted-average shares outstanding for basic and diluted EPS are as follows:


(In thousands)	2020	2019	2018
Basic weighted-average shares outstanding	228,536	231,315	250,196
Dilutive effect of stock options	443	1,394	3,041
Diluted weighted-average shares outstanding	228,979	232,709	253,237

In 2020, 2019 and 2018, stock options to purchase 7.6 million, 4.3 million and 1.3 million shares, respectively, of common stock are excluded from the calculation of diluted weighted-average shares outstanding as their effect would have been anti-dilutive.

Accumulated Other Comprehensive Loss

The components of Accumulated other comprehensive loss are presented below:


(In millions)	Pension and Postretirement Benefits Adjustments		Foreign Currency Translation Adjustments		Deferred Gains (Losses) on Hedge Contracts		Accumulated Other Comprehensive Loss
Balance at December 29, 2018	$	(1,727)	$	(32)	$	(3)	$	(1,762)
Other comprehensive loss before reclassifications	(166)		(4)		5		(165)
Reclassified from Accumulated other comprehensive loss	82		—		(2)		80
Balance at January 4, 2020	$	(1,811)	$	(36)	$	—	$	(1,847)
Other comprehensive loss before reclassifications	(115)		78		3		(34)
Reclassified from Accumulated other comprehensive loss	146		—		(4)		142
Balance at January 2, 2021	$	(1,780)	$	42	$	(1)	$	(1,739)

Other comprehensive income (loss)

The before and after-tax components of other comprehensive income (loss) are presented below:


	2020						2019						2018
(In millions)	Pre-Tax Amount		Tax (Expense) Benefit		After- Tax Amount		Pre-Tax Amount		Tax (Expense) Benefit		After- Tax Amount		Pre-Tax Amount		Tax (Expense) Benefit		After- Tax Amount
Pension and postretirement benefits adjustments:
Unrealized losses	$	(144)	$	35	$	(109)	$	(218)	$	52	$	(166)	$	(248)	$	58	$	(190)
Amortization of net actuarial loss*	184		(43)		141		99		(23)		76		152		(35)		117
Amortization of prior service cost*	6		(1)		5		8		(2)		6		9		(2)		7
Recognition of prior service cost	(8)		2		(6)		—		—		—		(20)		5		(15)
Business disposition	—		—		—		—		—		—		7		—		7
Pension and postretirement benefits adjustments, net	38		(7)		31		(111)		27		(84)		(100)		26		(74)
Foreign currency translation adjustments:
Foreign currency translation adjustments	81		(3)		78		(6)		2		(4)		(46)		(3)		(49)
Business disposition	—		—		—		—		—		—		6		—		6
Foreign currency translation adjustments, net	81		(3)		78		(6)		2		(4)		(40)		(3)		(43)
Deferred gains (losses) on hedge contracts:
Current deferrals	4		(1)		3		8		(3)		5		(8)		—		(8)
Reclassification adjustments	(6)		2		(4)		(2)		—		(2)		(7)		2		(5)
Deferred gains (losses) on hedge contracts, net	(2)		1		(1)		6		(3)		3		(15)		2		(13)
Total	$	117	$	(9)	$	108	$	(111)	$	26	$	(85)	$	(155)	$	25	$	(130)

* These components of other comprehensive income (loss) are included in the computation of net periodic pension cost. See Note 16 for additional information.