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 7 million and 6 million anti-dilutive potential common shares excluded from the reconciliation for the quarter and year-to-date periods ended September 29, 2018, respectively. There were 5 million anti-dilutive potential common shares excluded from the reconciliation for the quarter and year-to-date periods ended September 30, 2017, respectively.

Quarters ended September 29, 2018 and September 30, 2017:




(millions, except per share data)	Net income		Average shares outstanding	Earnings per share
2018
Basic	$	380	347	$	1.10
Dilutive potential common shares			2	(0.01		)
Diluted	$	380	349	$	1.09
2017
Basic	$	288	345	$	0.83
Dilutive potential common shares			3	—
Diluted	$	288	348	$	0.83

Year-to-date periods ended September 29, 2018 and September 30, 2017:




(millions, except per share data)	Net income		Average shares outstanding	Earnings per share
2018
Basic	$	1,420	346	$	4.10
Dilutive potential common shares			3	(0.03		)
Diluted	$	1,420	349	$	4.07
2017
Basic	$	837	348	$	2.40
Dilutive potential common shares			3	(0.02		)
Diluted	$	837	351	$	2.38

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 September 29, 2018, $1.4 billion remains available under the authorization.

During the year-to-date period ended September 29, 2018, the Company repurchased approximately 2 million shares of common stock for a total of $120 million. During the year-to-date period ended September 30, 2017, the Company repurchased approximately 7 million shares of common stock for a total of $516 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, net of related tax effects.

Reclassifications out of AOCI for the quarter and year-to-date periods ended September 29, 2018 and September 30, 2017, consisted of the following:



(millions)
Details about AOCI components	Amount reclassified from AOCI						Line item impacted within Income Statement
	Quarter ended September 29, 2018			Year-to-date period ended September 29, 2018
(Gains) losses on cash flow hedges:
Foreign currency exchange contracts	$	—		$	—		COGS
Interest rate contracts	2			6			Interest expense
	$	2		$	6		Total before tax
	(1		)	(2		)	Tax expense (benefit)
	$	1		$	4		Net of tax
Amortization of postretirement and postemployment benefits:
Net experience loss	$	(1	)	$	(3	)	OIE
	$	(1	)	$	(3	)	Total before tax
	—			—			Tax expense (benefit)
	$	(1	)	$	(3	)	Net of tax
Total reclassifications	$	—		$	1		Net of tax




(millions)
Details about AOCI components	Amount reclassified from AOCI						Line item impacted within Income Statement
	Quarter ended September 30, 2017			Year-to-date period ended September 30, 2017
(Gains) losses on cash flow hedges:
Foreign currency exchange contracts	$	—		$	(1	)	COGS
Interest rate contracts	3			8			Interest expense
	$	3		$	7		Total before tax
	(1		)	(2		)	Tax expense (benefit)
	$	2		$	5		Net of tax
Amortization of postretirement and postemployment benefits:
Net experience loss	$	—		$	1		See Note 8 for further details
	$	—		$	1		Total before tax
	—			—			Tax expense (benefit)
	$	—		$	1		Net of tax
Total reclassifications	$	2		$	6		Net of tax

Accumulated other comprehensive income (loss), net of tax, as of September 29, 2018 and December 30, 2017 consisted of the following:



(millions)	September 29, 2018			December 30, 2017
Foreign currency translation adjustments	$	(1,483	)	$	(1,426	)
Cash flow hedges — unrealized net gain (loss)	(55		)	(61		)
Postretirement and postemployment benefits:
Net experience loss	31			34
Prior service cost	(5		)	(4		)
Total accumulated other comprehensive income (loss)	$	(1,512	)	$	(1,457	)