STOCKHOLDERS' EQUITY

12 Months Ended

Dec. 31, 2016

STOCKHOLDERS' EQUITY

NOTE 10. STOCKHOLDERS’ EQUITY

Preferred Stock

As of December 31, 2016 and December 26, 2015, there were 1,000,000 shares of $0.01 par value preferred stock authorized; no shares were issued and outstanding.

Treasury Stock

In May 2016, the Company’s Board of Directors authorized a stock repurchase program of up to $100 million of its outstanding common stock. During July 2016, the Board of Directors authorized increasing the share repurchase program to $250 million of its outstanding common stock. The stock repurchase authorization permits the Company to repurchase stock from time-to-time through a combination of open market repurchases, privately negotiated transactions, 10b5-1 trading plans, accelerated stock repurchase transactions and/or other derivative transactions. The authorization extends through the end of 2018 and 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 existing liquidity.

Under the stock repurchase program, the Company purchased approximately 37 million shares at a cost of $132 million. As of December 31, 2016, $118 million remains available for repurchase under the current authorization.

At December 31, 2016, there were 43 million common shares held in treasury. The Company’s Amended Credit Facility includes certain covenants on restricted payments which include common stock repurchases, based on the Company’s liquidity and borrowing availability. The restrictions include the following: the Company may not acquire any equity interests in an aggregate amount exceeding approximately $125 million during any fiscal year provided that; (i) no default or event of default shall have occurred and be continuing, and; (ii) liquidity shall be at least $500 million, including aggregate availability of at least $400 million. There were no repurchases of common stock in 2015. Refer to Note 7 for additional information.

Accumulated Other Comprehensive Income

With the disposition of the OD European Business on December 31, 2016, the CTA balance associated with that business was recognized in earnings. Balances associated with the remaining disposal groups in discontinued operations will be recognized in earrings during the period in which those dispositions are completed. Accumulated other comprehensive income activity, net of tax, where applicable, is provided in the following tables:

(In millions)	Foreign Currency Translation Adjustments			Change in Deferred Pension			Total
Balance at December 26, 2015	$	108		$	(78	)	$	30
Other comprehensive income (loss) activity before reclassifications		(11	)		30			19
Reclassification of foreign currency translation adjustments realized upon disposal of business (a)		(164	)		—			(164	)
Tax impact		—			(14	)		(14	)
Net year-to-date other comprehensive income		(175	)		16			(159	)
Balance at December 31, 2016	$	(67	)	$	(62	)	$	(129	)

^(a)  Amounts in parentheses indicate an increase to earnings.

(In millions)	Foreign Currency Translation Adjustments			Change in Deferred Pension			Total
Balance at December 27, 2014	$	186		$	(79	)	$	107
Other comprehensive income (loss) activity before reclassifications		(78	)		2			(76	)
Reclassification of foreign currency translation adjustments realized upon disposal of business (a)		—			—			—
Tax impact		—			(1	)		(1	)
Net year-to-date other comprehensive income		(78	)		1			(77	)
Balance at December 26, 2015	$	108		$	(78	)	$	30

^(a)  Amounts in parentheses indicate an increase to earnings.

The component balances are net of immaterial tax impacts, where applicable.