Equity

Earnings per share

Basic earnings per share is determined by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share is similarly determined, except that the denominator is increased to include the number of additional common shares that would have been outstanding if all dilutive potential common shares had been issued. Dilutive potential common shares consist principally of employee stock options issued by the Company, restricted stock units, and to a lesser extent, certain contingently issuable performance shares. Basic earnings per share is reconciled to diluted earnings per share in the following table. There were 6 million anti-dilutive potential common shares excluded from the reconciliation for the quarter ended March 31, 2018. There were 4 million anti-dilutive potential common shares excluded from the reconciliation for the quarter ended April 1, 2017, respectively.

Quarters ended March 31, 2018 and April 1, 2017:




(millions, except per share data)	Net income		Average shares outstanding	Earnings per share
2018
Basic	$	444	346	$	1.28
Dilutive potential common shares			2	(0.01		)
Diluted	$	444	348	$	1.27
2017
Basic	$	266	351	$	0.76
Dilutive potential common shares			3	(0.01		)
Diluted	$	266	354	$	0.75

In December 2017, the board of directors approved a new authorization to repurchase up to $1.5 billion of our common stock beginning in January 2018 through December 2019. As of March 31, 2018, $1.5 billion remains available under the authorization.

During the quarter ended March 31, 2018, the Company did not repurchase any shares of common stock. During the quarter ended April 1, 2017, the Company repurchased 2 million shares of common stock for a total of $125 million.

Comprehensive income

Comprehensive income includes net income and all other changes in equity during a period except those resulting from investments by or distributions to shareholders. Other comprehensive income consists of foreign currency translation adjustments, fair value adjustments associated with cash flow hedges and adjustments for net experience losses and prior service cost related to employee benefit plans.

Reclassifications out of AOCI for the quarters ended March 31, 2018 and April 1, 2017, consisted of the following:



(millions)
Details about AOCI components	Amount reclassified from AOCI						Line item impacted within Income Statement
	Quarter ended March 31, 2018			Quarter ended April 1, 2017
(Gains) losses on cash flow hedges:
Foreign currency exchange contracts	$	—		$	(1	)	COGS
Interest rate contracts	2			2			Interest expense
	$	2		$	1		Total before tax
	—			—			Tax expense (benefit)
	$	2		$	1		Net of tax
Amortization of postretirement and postemployment benefits:
Net experience loss	$	(1	)	$	1		OIE
	$	(1	)	$	1		Total before tax
	—			—			Tax expense (benefit)
	$	(1	)	$	1		Net of tax
Total reclassifications	$	1		$	2		Net of tax

Accumulated other comprehensive income (loss), net of tax, as of March 31, 2018 and December 30, 2017 consisted of the following:



(millions)	March 31, 2018			December 30, 2017
Foreign currency translation adjustments	$	(1,377	)	$	(1,426	)
Cash flow hedges — unrealized net gain (loss)	(59		)	(61		)
Postretirement and postemployment benefits:
Net experience loss	33			34
Prior service cost	(4		)	(4		)
Total accumulated other comprehensive income (loss)	$	(1,407	)	$	(1,457	)