Stockholders' Equity and Accumulated Other Comprehensive Loss

3 Months Ended

Apr. 02, 2022

Stockholders' Equity and Accumulated Other Comprehensive Loss

Stockholders' Equity and Accumulated Other Comprehensive Loss

Note 7 – Stockholders’ Equity and Accumulated Other Comprehensive Loss

The components of accumulated other comprehensive loss (“AOCL”), net of related taxes, were as follows:

	Cumulative
	Foreign			Cumulative
	Currency			Unrecognized
	Translation			Pension
(Millions of dollars)	Adjustment			Cost			Total
Balance December 31, 2020	$	(376)		$	(95)		$	(471)
Other comprehensive loss before reclassifications		15			(1)			14
Amounts reclassified from AOCL to net earnings		—			2	(a)		2
Other comprehensive income, net of tax		15			1			16
Balance April 3, 2021		(361)			(94)			(455)
Balance December 31, 2021	$	(368)		$	(64)		$	(432)
Other comprehensive income before reclassifications		(10)			(1)			(11)
Amounts reclassified from AOCL to net earnings		9	(b)		1	(a)		10
Other comprehensive income, net of tax		(1)			—			(1)
Balance April 2, 2022	$	(369)		$	(64)		$	(433)

(a) This reclassification adjustment primarily represents the amortization of actuarial losses (gains) that were included in net periodic pension cost.

(b) This reclassification adjustment primarily reflects the recognition of currency translation adjustments upon the disposition of a CT&M business in Brazil whose functional currency was the Brazilian real. Upon management’s commitment to a plan to dispose, substantially all of this adjustment was previously recognized as an impairment in cost of sales for the year ended December 31, 2021. During the first quarter of 2022, cash proceeds of $4 million, net of cash sold, were received, and accounts receivable of $3 million were recognized for working capital adjustments and other pending matters.