STOCKHOLDERS' EQUITY

3 Months Ended

Apr. 01, 2023

Equity [Abstract]

STOCKHOLDERS' EQUITY

NOTE 8. STOCKHOLDERS’ EQUITY

Accumulated other comprehensive loss activity, net of tax, where applicable, is provided in the following table:

	Foreign			Change in
	Currency			Deferred
	Translation			Pension and
(In millions)	Adjustments			Other			Total
Balance at December 31, 2022	$	(39	)	$	(38	)	$	(77	)
Other comprehensive income activity		2						2
Balance at April 1, 2023	$	(37	)	$	(38	)	$	(75	)

TREASURY STOCK

In October 2022, the Board of Directors approved a new stock repurchase program of up to $1 billion, available through December 31, 2025, which replaced the existing $600 million stock repurchase program effective November 3, 2022. The new authorization may be suspended or discontinued at any time. The exact timing of share repurchases will depend on market conditions and other factors, and will be funded through available cash balances.

The Company repurchased 4 million shares in the first quarter of 2023 for total consideration of $202 million. Of the total shares repurchased, 2 million shares were purchased from HG Vora for a cost of $89 million pursuant to the related stock purchase agreement that the Company entered into with HG Vora, effective March 13, 2023. As of April 1, 2023, $646 million remains available for stock repurchases under the current stock repurchase program. Subsequent to the end of the first quarter of 2023 and through May 3, 2023, the Company repurchased less than 1 million shares of its common stock at a cost of $11 million.

At April 1, 2023, there were 28 million shares of common stock held in treasury. The Company’s Third Amended Credit Agreement permits restricted payments, such as common stock repurchases, but may be limited if the Company does not meet the required minimum liquidity or fixed charge coverage ratio requirements. Refer to Note 7 for additional information about the Company’s compliance with covenants.

DIVIDENDS ON COMMON STOCK

The Company did not declare any cash dividends in the first quarter of 2023. The Company does not anticipate declaring cash dividends in the foreseeable future. The Company’s Third Amended Credit Agreement permits restricted payments, such as dividends, but may be limited if the Company does not meet the required minimum liquidity or fixed charge coverage ratio requirements. Refer to Note 7 for additional information about the Company’s compliance with covenants.