Shareholders' Equity (Tables)

6 Months Ended

Jul. 02, 2022

A reconciliation of Shareholders’ equity is presented below:


(In millions)	Common Stock		Capital Surplus		Treasury Stock		Retained Earnings		Accumulated Other Comprehensive Loss		Total Shareholders' Equity
Three months ended July 2, 2022
Beginning of period	$	28	$	1,924	$	(314)	$	6,058	$	(779)	$	6,917
Net income	—		—		—		217		—		217
Other comprehensive loss	—		—		—		—		(76)		(76)
Share-based compensation activity	—		29		—		—		—		29
Dividends declared	—		—		—		(4)		—		(4)
Purchases of common stock	—		—		(282)		—		—		(282)

End of period	$	28	$	1,953	$	(596)	$	6,271	$	(855)	$	6,801
Three months ended July 3, 2021
Beginning of period	$	29	$	1,845	$	(294)	$	6,139	$	(1,723)	$	5,996
Net income	—		—		—		183		—		183
Other comprehensive income	—		—		—		—		47		47
Share-based compensation activity	—		75		—		—		—		75
Dividends declared	—		—		—		(4)		—		(4)
Purchases of common stock	—		—		(196)		—		—		(196)
End of period	$	29	$	1,920	$	(490)	$	6,318	$	(1,676)	$	6,101
Six months ended July 2, 2022
Beginning of period	$	28	$	1,863	$	(157)	$	5,870	$	(789)	$	6,815
Net income	—		—		—		410		—		410
Other comprehensive loss	—		—		—		—		(66)		(66)
Share-based compensation activity	—		90		—		—		—		90
Dividends declared	—		—		—		(9)		—		(9)
Purchases of common stock	—		—		(439)		—		—		(439)

End of period	$	28	$	1,953	$	(596)	$	6,271	$	(855)	$	6,801
Six months ended July 3, 2021
Beginning of period	$	29	$	1,785	$	(203)	$	5,973	$	(1,739)	$	5,845
Net income	—		—		—		354		—		354
Other comprehensive income	—		—		—		—		63		63
Share-based compensation activity	—		135		—		—		—		135
Dividends declared	—		—		—		(9)		—		(9)
Purchases of common stock	—		—		(287)		—		—		(287)
End of period	$	29	$	1,920	$	(490)	$	6,318	$	(1,676)	$	6,101

Schedule of Weighted-Average Shares Outstanding for Basic and Diluted EPS

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


	Three Months Ended		Six Months Ended
(In thousands)	July 2, 2022	July 3, 2021	July 2, 2022	July 3, 2021
Basic weighted-average shares outstanding	214,587	225,963	215,799	226,486
Dilutive effect of stock options	2,071	2,483	2,334	1,810
Diluted weighted-average shares outstanding	216,658	228,446	218,133	228,296

Schedule of Components of 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 January 1, 2022	$	(799)	$	9	$	1	$	(789)
Other comprehensive loss before reclassifications	—		(104)		4		(100)
Reclassified from Accumulated other comprehensive loss	34		—		—		34
Balance at July 2, 2022	$	(765)	$	(95)	$	5	$	(855)
Balance at January 2, 2021	$	(1,780)	$	42	$	(1)	$	(1,739)
Other comprehensive loss before reclassifications	—		(17)		6		(11)
Reclassified from Accumulated other comprehensive loss	60		14		—		74
Balance at July 3, 2021	$	(1,720)	$	39	$	5	$	(1,676)

Schedule of Before and After-Tax Components of Other Comprehensive Income (Loss)

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


	July 2, 2022						July 3, 2021
(In millions)	Pre-Tax Amount		Tax (Expense) Benefit		After-tax Amount		Pre-Tax Amount		Tax (Expense) Benefit		After-tax Amount
Three Months Ended
Pension and postretirement benefits adjustments:
Amortization of net actuarial loss*	$	21	$	(6)	$	15	$	38	$	(9)	$	29
Amortization of prior service cost*	2		—		2		2		(1)		1
Pension and postretirement benefits adjustments, net	23		(6)		17		40		(10)		30
Foreign currency translation adjustments	(90)		—		(90)		15		—		15
Deferred gains (losses) on hedge contracts:
Current deferrals	(5)		2		(3)		2		—		2

Deferred gains (losses) on hedge contracts, net	(5)		2		(3)		2		—		2
Total	$	(72)	$	(4)	$	(76)	$	57	$	(10)	$	47
Six Months Ended
Pension and postretirement benefits adjustments:
Amortization of net actuarial loss*	$	42	$	(11)	$	31	$	76	$	(18)	$	58
Amortization of prior service cost*	4		(1)		3		4		(2)		2
Pension and postretirement benefits adjustments, net	46		(12)		34		80		(20)		60
Foreign currency translation adjustments:
Foreign currency translation adjustments	(104)		—		(104)		(17)		—		(17)
Business disposition	—		—		—		14		—		14
Foreign currency translation adjustments, net	(104)		—		(104)		(3)		—		(3)
Deferred gains on hedge contracts:
Current deferrals	5		(1)		4		7		(1)		6

Deferred gains on hedge contracts, net	5		(1)		4		7		(1)		6
Total	$	(53)	$	(13)	$	(66)	$	84	$	(21)	$	63

*These components of other comprehensive income (loss) are included in the computation of net periodic pension cost (income). See Note 15 of our 2021 Annual Report on Form 10-K for additional information