Shareholders' Equity

6 Months Ended

Jun. 30, 2018

Shareholders' Equity

Shareholders' Equity

Note 10.  Shareholders’ Equity

A reconciliation of Shareholder’s equity is presented below:

(In millions)		Common Stock		Capital Surplus		Treasury Stock		Retained Earnings		Accumulated Other Comprehensive Loss		Total Shareholders’ Equity
Balance at December 30, 2017	$	33	$	1,669	$	(48)	$	5,368	$	(1,375)	$	5,647
Adoption of ASC 606		—		—		—		90		—		90
Balance at December 31, 2017		33		1,669		(48)		5,458		(1,375)		5,737
Net income		—		—		—		413		—		413
Other comprehensive income		—		—		—		—		32		32
Share-based compensation activity		—		105		—		—		—		105
Dividends declared		—		—		—		(10)		—		(10)
Purchases of common stock		—		—		(915)		—		—		(915)
Balance at June 30, 2018	$	33	$	1,774	$	(963)	$	5,861	$	(1,343)	$	5,362

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
For the six months ended June 30, 2018
Beginning of period	$	(1,396)	$	11	$	10	$	(1,375)
Other comprehensive income before reclassifications		—		(27)		(2)		(29)
Reclassified from Accumulated other comprehensive loss		62		—		(1)		61
Other comprehensive income		62		(27)		(3)		32
End of period	$	(1,334)	$	(16)	$	7	$	(1,343)
For the six months ended July 1, 2017
Beginning of period	$	(1,505)	$	(96)	$	(4)	$	(1,605)
Other comprehensive income before reclassifications		—		64		3		67
Reclassified from Accumulated other comprehensive loss		47		—		5		52
Other comprehensive income		47		64		8		119
End of period	$	(1,458)	$	(32)	$	4	$	(1,486)

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

	June 30, 2018						July 1, 2017
(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*	$	39	$	(9)	$	30	$	34	$	(12)	$	22
Amortization of prior service cost*		2		(1)		1		2		(1)		1
Pension and postretirement benefits adjustments, net		41		(10)		31		36		(13)		23
Deferred gains (losses) on hedge contracts:
Current deferrals		(4)		1		(3)		2		(1)		1
Reclassification adjustments		(1)		—		(1)		4		(1)		3
Deferred gains (losses) on hedge contracts, net		(5)		1		(4)		6		(2)		4
Foreign currency translation adjustments		(66)		(3)		(69)		39		3		42
Total	$	(30)	$	(12)	$	(42)	$	81	$	(12)	$	69
Six Months Ended
Pension and postretirement benefits adjustments:
Amortization of net actuarial loss*	$	77	$	(18)	$	59	$	68	$	(24)	$	44
Amortization of prior service cost*		4		(1)		3		4		(1)		3
Pension and postretirement benefits adjustments, net		81		(19)		62		72		(25)		47
Deferred gains (losses) on hedge contracts:
Current deferrals		(2)		—		(2)		5		(2)		3
Reclassification adjustments		(1)		—		(1)		6		(1)		5
Deferred gains (losses) on hedge contracts, net		(3)		—		(3)		11		(3)		8
Foreign currency translation adjustments		(26)		(1)		(27)		60		4		64
Total	$	52	$	(20)	$	32	$	143	$	(24)	$	119

*These components of Other comprehensive income (loss) are included in the computation of net periodic pension cost.  See Note 11 of our 2017 Annual Report on Form 10-K for additional information.