Shareholders' Equity (Tables)

9 Months Ended

Sep. 30, 2023

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 September 30, 2023
Beginning of period	$	26	$	1,973	$	(740)	$	6,349	$	(574)	$	7,034
Net income	—		—		—		269		—		269
Other comprehensive loss	—		—		—		—		(54)		(54)
Share-based compensation activity	—		58		—		—		—		58
Dividends declared	—		—		—		(4)		—		(4)
Purchases of common stock, including excise tax*	—		—		(236)		—		—		(236)

End of period	$	26	$	2,031	$	(976)	$	6,614	$	(628)	$	7,067
Three months ended October 1, 2022
Beginning of period	$	28	$	1,953	$	(596)	$	6,271	$	(855)	$	6,801
Net income	—		—		—		225		—		225
Other comprehensive loss	—		—		—		—		(87)		(87)
Share-based compensation activity	—		27		—		—		—		27
Dividends declared	—		—		—		(4)		—		(4)
Purchases of common stock	—		—		(200)		—		—		(200)
End of period	$	28	$	1,980	$	(796)	$	6,492	$	(942)	$	6,762
Nine months ended September 30, 2023
Beginning of period	$	26	$	1,880	$	(84)	$	5,903	$	(612)	$	7,113
Net income	—		—		—		723		—		723
Other comprehensive loss	—		—		—		—		(16)		(16)
Share-based compensation activity	—		151		—		—		—		151
Dividends declared	—		—		—		(12)		—		(12)
Purchases of common stock, including excise tax*	—		—		(892)		—		—		(892)

End of period	$	26	$	2,031	$	(976)	$	6,614	$	(628)	$	7,067
Nine months ended October 1, 2022
Beginning of period	$	28	$	1,863	$	(157)	$	5,870	$	(789)	$	6,815
Net income	—		—		—		635		—		635
Other comprehensive loss	—		—		—		—		(153)		(153)
Share-based compensation activity	—		117		—		—		—		117
Dividends declared	—		—		—		(13)		—		(13)
Purchases of common stock	—		—		(639)		—		—		(639)
End of period	$	28	$	1,980	$	(796)	$	6,492	$	(942)	$	6,762

*Includes amounts accrued for excise tax imposed on common share repurchases beginning on January 1, 2023 as part of the Inflation Reduction Act that totaled $1 million for the third quarter of 2023 and $7 million for first nine months of 2023.

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		Nine Months Ended
(In thousands)	September 30, 2023	October 1, 2022	September 30, 2023	October 1, 2022
Basic weighted-average shares outstanding	197,947	211,307	201,161	214,301
Dilutive effect of stock options	2,045	1,833	2,009	2,167
Diluted weighted-average shares outstanding	199,992	213,140	203,170	216,468

Schedule of Components of Accumulated Other Comprehensive Income (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 31, 2022	$	(516)	$	(94)	$	(2)	$	(612)
Other comprehensive loss before reclassifications	—		(19)		(1)		(20)
Reclassified from Accumulated other comprehensive loss	—		—		4		4
Balance at September 30, 2023	$	(516)	$	(113)	$	1	$	(628)
Balance at January 1, 2022	$	(799)	$	9	$	1	$	(789)
Other comprehensive loss before reclassifications	—		(201)		(4)		(205)
Reclassified from Accumulated other comprehensive loss	52		—		—		52
Balance at October 1, 2022	$	(747)	$	(192)	$	(3)	$	(942)

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

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


	September 30, 2023						October 1, 2022
(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 (gain) loss*	$	(2)	$	1	$	(1)	$	21	$	(4)	$	17
Amortization of prior service cost*	2		(1)		1		2		(1)		1
Pension and postretirement benefits adjustments, net	—		—		—		23		(5)		18
Foreign currency translation adjustments	(51)		—		(51)		(97)		—		(97)
Deferred gains (losses) on hedge contracts:
Current deferrals	(6)		2		(4)		(11)		3		(8)
Reclassification adjustments	2		(1)		1		—		—		—
Deferred gains (losses) on hedge contracts, net	(4)		1		(3)		(11)		3		(8)
Total	$	(55)	$	1	$	(54)	$	(85)	$	(2)	$	(87)
Nine Months Ended
Pension and postretirement benefits adjustments:
Amortization of net actuarial (gain) loss*	$	(5)	$	2	$	(3)	$	63	$	(15)	$	48
Amortization of prior service cost*	6		(3)		3		6		(2)		4
Pension and postretirement benefits adjustments, net	1		(1)		—		69		(17)		52

Foreign currency translation adjustments	(19)		—		(19)		(201)		—		(201)


Deferred gains (losses) on hedge contracts:
Current deferrals	(3)		2		(1)		(6)		2		(4)
Reclassification adjustments	6		(2)		4		—		—		—
Deferred gains (losses) on hedge contracts, net	3		—		3		(6)		2		(4)
Total	$	(15)	$	(1)	$	(16)	$	(138)	$	(15)	$	(153)

*These components of other comprehensive loss are included in the computation of net periodic pension cost (income). See Note 15 of our 2022 Annual Report on Form 10-K for additional information.