Note 9. 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 29, 2018	$	30	$	1,646	$	(129)	$	5,407	$	(1,762)	$	5,192
Net income		—		—		—		179		—		179
Other comprehensive income		—		—		—		—		26		26
Share-based compensation activity		—		43		—		—		—		43
Dividends declared		—		—		—		(5)		—		(5)
Purchases of common stock		—		—		(202)		—		—		(202)
Balance at March 30, 2019	$	30	$	1,689	$	(331)	$	5,581	$	(1,736)	$	5,233
Balance at December 30, 2017	$	33	$	1,669	$	(48)	$	5,368	$	(1,375)	$	5,647
Adoption of ASC 606		—		—		—		90		—		90
Net income		—		—		—		189		—		189
Other comprehensive income		—		—		—		—		74		74
Share-based compensation activity		—		41		—		—		—		41
Dividends declared		—		—		—		(5)		—		(5)
Purchases of common stock		—		—		(344)		—		—		(344)
Balance at March 31, 2018	$	33	$	1,710	$	(392)	$	5,642	$	(1,301)	$	5,692

Dividends per share of common stock were $0.02 for both the three months ended March 30, 2019 and March 31, 2018.

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:

	Three Months Ended
(In thousands)	March 30, 2019	March 31, 2018
Basic weighted-average shares outstanding	234,839	260,497
Dilutive effect of stock options	1,598	3,175
Diluted weighted-average shares outstanding	236,437	263,672

Stock options to purchase 3.1 million and 1.3 million shares of common stock are excluded from the calculation of diluted weighted-average shares outstanding for the first quarter of 2019 and 2018, respectively, as their effect would have been anti-dilutive.

Accumulated Other Comprehensive Loss and Other Comprehensive Income

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 income before reclassifications		—		3		3		6
Reclassified from Accumulated other comprehensive loss		21		—		(1)		20
Balance at March 30, 2019	$	(1,706)	$	(29)	$	(1)	$	(1,736)
Balance at December 30, 2017	$	(1,396)	$	11	$	10	$	(1,375)
Other comprehensive income before reclassifications		—		42		1		43
Reclassified from Accumulated other comprehensive loss		31		—		—		31
Balance at March 31, 2018	$	(1,365)	$	53	$	11	$	(1,301)

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

		March 30, 2019						March 31, 2018
(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*	$	25	$	(5)	$	20	$	38	$	(9)	$	29
Amortization of prior service cost*		1		—		1		2		—		2
Pension and postretirement benefits adjustments, net		26		(5)		21		40		(9)		31
Deferred gains on hedge contracts:
Current deferrals		4		(1)		3		2		(1)		1
Reclassification adjustments		(1)		—		(1)		—		—		—
Deferred gains on hedge contracts, net		3		(1)		2		2		(1)		1
Foreign currency translation adjustments		1		2		3		40		2		42
Total	$	30	$	(4)	$	26	$	82	$	(8)	$	74

*These components of other comprehensive income are included in the computation of net periodic pension cost. See Note 14 of our 2018 Annual Report on Form 10-K for additional information.