Equity

9 Months Ended

Sep. 26, 2020

Earnings per share

Basic earnings per share is determined by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share is similarly determined, except that the denominator is increased to include the number of additional common shares that would have been outstanding if all dilutive potential common shares had been issued. Dilutive potential common shares consist principally of employee stock options issued by the Company, restricted stock units, and to a lesser extent, certain contingently issuable performance shares. There were 7 million anti-dilutive potential common shares excluded from the reconciliation for the quarter and year-to-date periods ended September 26, 2020. There were 10 million and 14 million anti-dilutive potential common shares excluded from the reconciliation for the quarter and year-to-date periods ended September 28, 2019. Please refer to the Consolidated Statement of Income for basic and diluted earnings per share for the quarter and year-to-date periods ended September 26, 2020 and September 28, 2019.

Share repurchases

In February 2020, the board of directors approved a new authorization to repurchase up to $1.5 billion of our common stock through December 2022. During the year-to-date period ended September 26, 2020, the company did not repurchase any shares of common stock and $1.5 billion remains available under the authorization.

During the year-to-date period ended September 28, 2019, the Company repurchased approximately 4 million shares of common stock for a total of $220 million.

Comprehensive income

Comprehensive income includes net income and all other changes in equity during a period except those resulting from investments by or distributions to shareholders. Other comprehensive income consists of foreign currency translation adjustments, fair value adjustments associated with cash flow hedges, adjustments for net experience losses and prior service cost related to employee benefit plans, and adjustments for unrealized gains and losses on available-for-sale securities, net of related tax effects.

Reclassifications out of Accumulated other comprehensive income (AOCI) for the quarter and year-to-date periods ended September 26, 2020 and September 28, 2019, consisted of the following:


(millions)
Details about AOCI components	Amount reclassified from AOCI				Line item impacted within Income Statement
	Quarter ended September 26, 2020		Year-to-date period ended September 26, 2020
(Gains) losses on cash flow hedges:


Interest rate contracts	$	4	$	11	Interest expense

	$	4	$	11	Total before tax
	(1)		(3)		Tax expense (benefit)
	$	3	$	8	Net of tax
Amortization of postretirement and postemployment benefits:
Net experience (gain) loss	$	—	$	(2)	OIE
Prior service cost	—		(1)		See Note 9 for further details
	$	—	$	(3)	Total before tax
	—		1		Tax expense (benefit)
	$	—	$	(2)	Net of tax





Total reclassifications	$	3	$	6	Net of tax



(millions)
Details about AOCI components	Amount reclassified from AOCI				Line item impacted within Income Statement
	Quarter ended September 28, 2019		Year-to-date period ended September 28, 2019
(Gains) losses on cash flow hedges:


Interest rate contracts	$	(1)	$	2	Interest expense

	$	(1)	$	2	Total before tax
	—		(1)		Tax expense (benefit)
	$	(1)	$	1	Net of tax
Amortization of postretirement and postemployment benefits:
Net experience loss	$	(1)	$	(3)	See Note 9 for further details

	$	(1)	$	(3)	Total before tax
	—		1		Tax expense (benefit)
	$	(1)	$	(2)	Net of tax
(Gain) loss on available-for-sale securities:
Corporate bonds	$	(4)	$	(4)	OIE
	$	(4)	$	(4)	Total before tax
	—		—		Tax expense (benefit)
	$	(4)	$	(4)	Net of tax
Total reclassifications	$	(6)	$	(5)	Net of tax

Accumulated other comprehensive income (loss), net of tax, as of September 26, 2020 and December 28, 2019 consisted of the following:


(millions)	September 26, 2020		December 28, 2019
Foreign currency translation adjustments	$	(1,688)	$	(1,399)
Cash flow hedges — unrealized net gain (loss)	(80)		(60)
Postretirement and postemployment benefits:
Net experience gain (loss)	6		7
Prior service credit (cost)	3		4
Available-for-sale securities unrealized net gain (loss)	2		—
Total accumulated other comprehensive income (loss)	$	(1,757)	$	(1,448)