Equity

6 Months Ended

Jun. 29, 2019

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. There were 15 million and 14 million anti-dilutive potential common shares excluded from the reconciliation for the quarter and year-to-date periods ended June 29, 2019. There were 9 million and 6 million anti-dilutive potential common shares excluded from the reconciliation for the quarter and year-to-date periods ended June 30, 2018. Please refer to the Consolidated Statement of Income for basic and diluted earnings per share for the quarters ended June 29, 2019 and June 30, 2018.

Share repurchases

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 June 29, 2019, $960 million remains available under the authorization.

During the year-to-date period ended June 29, 2019, the Company repurchased approximately 4 million shares of common stock for a total of $220 million. During the year-to-date period ended June 30, 2018, the Company repurchased less than 1 million shares of common stock for a total of $50 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 June 29, 2019 and June 30, 2018, consisted of the following:



(millions)
Details about AOCI components	Amount reclassified from AOCI						Line item impacted within Income Statement
	Quarter ended June 29, 2019			Year-to-date period ended June 29, 2019
(Gains) losses on cash flow hedges:
Interest rate contracts	$	2		$	3		Interest expense
	$	2		$	3		Total before tax
	(1		)	(1		)	Tax expense (benefit)
	$	1		$	2		Net of tax
Amortization of postretirement and postemployment benefits:
Net experience (gain) loss	$	(1	)	$	(2	)	OIE
	$	(1	)	$	(2	)	Total before tax
	1			1			Tax expense (benefit)
	$	—		$	(1	)	Net of tax
Total reclassifications	$	1		$	1		Net of tax




(millions)
Details about AOCI components	Amount reclassified from AOCI						Line item impacted within Income Statement
	Quarter ended June 30, 2018			Year-to-date period ended June 30, 2018
(Gains) losses on cash flow hedges:
Interest rate contracts	$	2		$	4		Interest expense
	$	2		$	4		Total before tax
	(1		)	(1		)	Tax expense (benefit)
	$	1		$	3		Net of tax
Amortization of postretirement and postemployment benefits:
Net experience loss	$	(1	)	$	(2	)	See Note 8 for further details
	$	(1	)	$	(2	)	Total before tax
	—			—			Tax expense (benefit)
	$	(1	)	$	(2	)	Net of tax
Total reclassifications	$	—		$	1		Net of tax

Accumulated other comprehensive income (loss), net of tax, as of June 29, 2019 and December 29, 2018 consisted of the following:



(millions)	June 29, 2019			December 29, 2018
Foreign currency translation adjustments	$	(1,431	)	$	(1,467	)
Cash flow hedges — unrealized net gain (loss)	(65		)	(53		)
Postretirement and postemployment benefits:
Net experience gain (loss)	21			23
Prior service credit (cost)	3			(3		)
Available-for-sale securities unrealized net gain (loss)	3			—
Total accumulated other comprehensive income (loss)	$	(1,469	)	$	(1,500	)