EQUITY

9 Months Ended

Sep. 30, 2022

Equity [Abstract]

EQUITY

EQUITY

A summary of changes in equity for the three months and nine months ended September 30, 2022 and 2021 is provided below:

Three Months Ended September 30, 2022
In millions	Shares	Common Stock		Paid-In Capital		Retained Earnings		Accumulated  Other Comprehensive Loss		Common Stock Held In Treasury, At Cost		Total Equity
Balance, June 30, 2022	44	$	44	$	14	$	1,897	$	(1,701)	$	(2)	$	252
Stock-based employee compensation	—	—		6		—		—		—		6
Dividends ($0.1125 per share)	—	—		—		(5)		—		—		(5)
Comprehensive income (loss)	—	—		—		57		(52)		—		5
Balance, September 30, 2022	44	$	44	$	20	$	1,949	$	(1,753)	$	(2)	$	258

Nine Months Ended September 30, 2022
In millions	Shares	Common Stock		Paid-In Capital		Retained Earnings		Accumulated  Other Comprehensive Loss		Common Stock Held In Treasury, At Cost		Total Equity
Balance, December 31, 2021	44	$	44	$	4	$	1,935	$	(1,801)	$	—	$	182
Stock-based employee compensation	—	—		16		—		—		(2)		14
Dividends ($0.2250 per share)	—	—		—		(10)		—		—		(10)
Comprehensive income (loss)	—	—		—		24		48		—		72
Balance, September 30, 2022	44	$	44	$	20	$	1,949	$	(1,753)	$	(2)	$	258

Three Months Ended September 30, 2021
In millions	Parent Company Investment		Accumulated  Other Comprehensive Loss		Total Equity
Balance, June 30, 2021	3,777		(1,493)		2,284
Net transfers from Parent	(457)		(30)		(487)
Special payment to Parent	(1,520)		—		(1,520)
Comprehensive income (loss)	92		(104)		(12)
Balance, September 30, 2021	$	1,892	$	(1,627)	$	265

Nine Months Ended September 30, 2021
In millions	Parent Company Investment		Accumulated  Other Comprehensive Loss		Total Equity
Balance, December 31, 2020	3,592		(1,480)		2,112
Net transfers from Parent	(449)		(30)		(479)
Special payment to Parent	(1,520)		—		(1,520)
Comprehensive income (loss)	269		(117)		152
Balance,September 30, 2021	$	1,892	$	(1,627)	$	265

Rights Agreement

On April 22, 2022, the board of directors of the Company (the “Board”) adopted a Rights Agreement (the “Rights Agreement”) and declared a dividend of one preferred share purchase right (a “Right”), payable on May 2, 2022, for each share of common stock, par value $1.00 per share, of the Company (the “Common Shares”) outstanding on May 2, 2022 (the “Record Date”) to the registered holders of Common Shares on that date. Each Right entitles the registered holder to purchase from the Company one one-thousandth of a share of Series A Preferred Stock, par value $1.00 per share, of the Company (the “Preferred Shares”) at a price of $190.00 per one one-thousandth of a Preferred Share represented by a Right (the “Purchase Price”), subject to adjustment. The Rights initially trade with the Common Shares and generally become exercisable only if any person (or any persons acting as a group) acquires 10% (or 20% in the case of certain passive investors) or more of the Company’s outstanding Common Shares. Existing 10% or greater holders of Common Shares are grandfathered to the extent of their April 22, 2022 ownership levels.

In the event the Rights are triggered, the Rights will become exercisable for Common Shares having a value equal to two times the exercise price of the Right. If, at any time after the Rights are triggered, the Company engages in a merger or sale of 50% or more of the Company’s consolidated assets or earning power, then each holder of a Right, upon the exercise thereof, will receive the number of shares of common stock of the acquiring company which at the time of such transaction will have a market value of two times the exercise price of the Right.

The Rights will expire on the close of business on April 21, 2023, unless earlier redeemed or terminated by the Company, as provided in the Rights Agreement. Until a Right is exercised, the holder thereof will have no voting or dividend privileges with respect to the rights.