| Schedule of Shareholder's Equity |
A reconciliation of Shareholders’ equity is presented below: | | | | | | | | | | | | | | | | | | | | | | (In millions) | Common
Stock | Capital
Surplus | Treasury
Stock | Retained
Earnings | Accumulated
Other
Comprehensive
Loss | Total
Shareholders'
Equity | | Three months ended June 29, 2024 | | | | | | | | Beginning of period | $ | 25 | | $ | 2,012 | | $ | (484) | | $ | 6,059 | | $ | (681) | | $ | 6,931 | | | Net income | — | | — | | — | | 259 | | — | | 259 | | | Other comprehensive loss | — | | — | | — | | — | | (12) | | (12) | | | Share-based compensation activity | — | | 38 | | — | | — | | — | | 38 | | | Dividends declared | — | | — | | — | | (4) | | — | | (4) | | | Purchases of common stock, including excise tax* | — | | — | | (360) | | — | | — | | (360) | | | | | | | | | | End of period | $ | 25 | | $ | 2,050 | | $ | (844) | | $ | 6,314 | | $ | (693) | | $ | 6,852 | | | Three months ended July 1, 2023 | | | | | | | | Beginning of period | $ | 26 | | $ | 1,942 | | $ | (464) | | $ | 6,090 | | $ | (586) | | $ | 7,008 | | | Net income | — | | — | | — | | 263 | | — | | 263 | | | Other comprehensive income | — | | — | | — | | — | | 12 | | 12 | | | Share-based compensation activity | — | | 31 | | — | | — | | — | | 31 | | | Dividends declared | — | | — | | — | | (4) | | — | | (4) | | | Purchases of common stock, including excise tax* | — | | — | | (276) | | — | | — | | (276) | | | End of period | $ | 26 | | $ | 1,973 | | $ | (740) | | $ | 6,349 | | $ | (574) | | $ | 7,034 | | | Six months ended June 29, 2024 | | | | | | | | Beginning of period | $ | 24 | | $ | 1,910 | | $ | (165) | | $ | 5,862 | | $ | (644) | | $ | 6,987 | | | Net income | — | | — | | — | | 460 | | — | | 460 | | | Other comprehensive loss | — | | — | | — | | — | | (49) | | (49) | | | Share-based compensation activity | 1 | | 140 | | — | | — | | — | | 141 | | | Dividends declared | — | | — | | — | | (8) | | — | | (8) | | | Purchases of common stock, including excise tax* | — | | — | | (679) | | — | | — | | (679) | | | | | | | | | | End of period | $ | 25 | | $ | 2,050 | | $ | (844) | | $ | 6,314 | | $ | (693) | | $ | 6,852 | | | Six months ended July 1, 2023 | | | | | | | | Beginning of period | $ | 26 | | $ | 1,880 | | $ | (84) | | $ | 5,903 | | $ | (612) | | $ | 7,113 | | | Net income | — | | — | | — | | 454 | | — | | 454 | | | Other comprehensive income | — | | — | | — | | — | | 38 | | 38 | | | Share-based compensation activity | — | | 93 | | — | | — | | — | | 93 | | | Dividends declared | — | | — | | — | | (8) | | — | | (8) | | | Purchases of common stock, including excise tax* | — | | — | | (656) | | — | | — | | (656) | | | End of period | $ | 26 | | $ | 1,973 | | $ | (740) | | $ | 6,349 | | $ | (574) | | $ | 7,034 | |
*Includes amounts accrued for excise tax imposed on common share repurchases of $2 million and $4 million for the second quarter and first half of 2024, respectively, and $3 million and $6 million for the second quarter and first half of 2023, respectively.
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| Schedule of Weighted-Average Shares Outstanding for Basic and Diluted EPS |
The weighted-average shares outstanding for basic and diluted EPS are as follows: | | | | | | | | | | | | | | | | Three Months Ended | Six Months Ended | | (In thousands) | June 29,
2024 | July 1,
2023 | June 29,
2024 | July 1,
2023 | | Basic weighted-average shares outstanding | 189,746 | | 200,701 | | 191,273 | | 202,768 | | | Dilutive effect of stock options | 2,109 | | 1,808 | | 2,085 | | 1,992 | | | Diluted weighted-average shares outstanding | 191,855 | | 202,509 | | 193,358 | | 204,760 | |
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| Schedule of Components of Accumulated Other Comprehensive Income (Loss) |
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 30, 2023 | $ | (598) | | $ | (49) | | $ | 3 | | $ | (644) | | | Other comprehensive loss before reclassifications | — | | (47) | | (4) | | (51) | | | Reclassified from Accumulated other comprehensive loss | 2 | | — | | — | | 2 | | | Balance at June 29, 2024 | $ | (596) | | $ | (96) | | $ | (1) | | $ | (693) | | | Balance at December 31, 2022 | $ | (516) | | $ | (94) | | $ | (2) | | $ | (612) | | | Other comprehensive income before reclassifications | — | | 32 | | 3 | | 35 | | | Reclassified from Accumulated other comprehensive loss | — | | — | | 3 | | 3 | | | Balance at July 1, 2023 | $ | (516) | | $ | (62) | | $ | 4 | | $ | (574) | |
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| Schedule of Before and After-Tax Components of Other Comprehensive Income (Loss) |
The before and after-tax components of Other comprehensive income (loss) are presented below: | | | | | | | | | | | | | | | | | | | | | | June 29, 2024 | July 1, 2023 | | (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 gain* | $ | (1) | | $ | — | | $ | (1) | | $ | (1) | | $ | — | | $ | (1) | | | Amortization of prior service cost* | 2 | | — | | 2 | | 2 | | (1) | | 1 | | | Pension and postretirement benefits adjustments, net | 1 | | — | | 1 | | 1 | | (1) | | — | | | Foreign currency translation adjustments | (14) | | — | | (14) | | 4 | | — | | 4 | | | Deferred gains (losses) on hedge contracts: | | | | | | | | Current deferrals | 1 | | — | | 1 | | 7 | | (1) | | 6 | | | Reclassification adjustments | (1) | | 1 | | — | | 2 | | — | | 2 | | | Deferred gains (losses) on hedge contracts, net | — | | 1 | | 1 | | 9 | | (1) | | 8 | | | Total | $ | (13) | | $ | 1 | | $ | (12) | | $ | 14 | | $ | (2) | | $ | 12 | | | Six Months Ended | | | | | | | | Pension and postretirement benefits adjustments: | | | | | | | | Amortization of net actuarial gain* | $ | (2) | | $ | — | | $ | (2) | | $ | (3) | | $ | 1 | | $ | (2) | | | Amortization of prior service cost* | 4 | | — | | 4 | | 4 | | (2) | | 2 | | | Pension and postretirement benefits adjustments, net | 2 | | — | | 2 | | 1 | | (1) | | — | | | | | | | | | | Foreign currency translation adjustments | (47) | | — | | (47) | | 32 | | — | | 32 | | | | | | | | | | | | | | | | | Deferred gains (losses) on hedge contracts: | | | | | | | | Current deferrals | (6) | | 2 | | (4) | | 3 | | — | | 3 | | | Reclassification adjustments | (2) | | 2 | | — | | 4 | | (1) | | 3 | | | Deferred gains (losses) on hedge contracts, net | (8) | | 4 | | (4) | | 7 | | (1) | | 6 | | | Total | $ | (53) | | $ | 4 | | $ | (49) | | $ | 40 | | $ | (2) | | $ | 38 | |
*These components of other comprehensive income (loss) are included in the computation of net periodic pension cost (income). See Note 15 of our 2023 Annual Report on Form 10-K for additional information. |