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STOCKHOLDERS' EQUITY
 12 Months Ended
Dec. 25, 2021
Equity [Abstract]  
STOCKHOLDERS' EQUITY

NOTE 12. STOCKHOLDERS’ EQUITY

PREFERRED STOCK

As of each of December 25, 2021, and December 26, 2020, there were 1,000,000 shares of $0.01 par value per share of preferred stock authorized; no shares were issued and outstanding.

TREASURY STOCK

In May 2021, the Board of Directors approved a new stock repurchase program of up to $300 million of its common stock, available through June 30, 2022, which replaced the then existing $200 million stock repurchase program. On November 16, 2021, the Company entered into an accelerated share repurchase agreement (“ASR”) to repurchase shares of the Company’s common stock in exchange for an up-front payment $150 million and increased the authorization to $450 million. The total number of shares ultimately delivered under the ASR, and therefore the average repurchase price paid per share, will be determined based on the volume weighted-

average price of the Company’s stock during the purchase period less a discount. The repurchase period runs through June 2022. The Company received 2.8 million shares of its common stock at the initiation of the ASR, which has increased treasury stock by $120 million, and the $30 million additional up-front payment was accounted for as a reduction in additional paid in capital. The ASR is a forward contract indexed to the Company’s common stock and met all of the applicable criteria for equity classification; therefore, it was not accounted for as a derivative instrument. Expenses incurred in connection with the ASR were recorded as a charge to additional paid in capital. The Board of Directors reviewed the Company’s existing capital allocation programs in connection with the sale of CompuCom, and on December 31, 2021, authorized an additional $200 million for share repurchases under the existing stock repurchase program, for a total authorization of $650 million. The new authorization may be suspended or discontinued at any time. The exact timing of share repurchases will depend on market conditions and other factors, and will be funded through available cash balances.

Under the current stock repurchase program, the Company purchased approximately 6 million shares of its common stock at a cost of $277 million in 2021. As of December 25, 2021, $142 million remains available for stock repurchases under the current stock repurchase program.

At December 25, 2021, there were 16 million shares of common stock held in treasury. The Company’s Third Amended Credit Facility permits restricted payments, such as common stock repurchases, but may be limited if the Company does not meet the required minimum liquidity or fixed charge coverage ratio requirements. Refer to Note 10 for additional information about the Company’s compliance with covenants.

DIVIDENDS ON COMMON STOCK

In May 2020, in order to preserve liquidity during the COVID-19 pandemic and in light of the uncertainties as to its duration and economic impact, the Company’s Board of Directors suspended the Company’s quarterly cash dividend beginning in the second quarter of 2020. There was no quarterly cash dividend declared and paid in fiscal 2021. The Company’s quarterly cash dividend remains suspended. Prior to its suspension, dividends had been recorded as a reduction to additional paid-in capital as the Company is in an accumulated deficit position. The Company’s Third Amended Credit Agreement permits restricted payments, such as dividends, but may be limited if the Company does not meet the required minimum liquidity or fixed charge coverage ratio requirements. Refer to Note 10 for additional information about the Company’s compliance with covenants.

ACCUMULATED OTHER COMPREHENSIVE LOSS

Accumulated other comprehensive loss activity, net of tax, where applicable, is provided in the following tables:

 

(In millions)

 

Foreign

Currency

Translation

Adjustments

 

 

Change in

Deferred

Pension

 

 

Total

 

Balance at December 26, 2020

 

$

(27

)

 

$

(5

)

 

$

(32

)

Other comprehensive income activity

 

 

—

 

 

 

32

 

 

 

32

 

Tax impact

 

 

—

 

 

 

(6

)

 

 

(6

)

Total other comprehensive income, net of tax, where applicable

 

 

—

 

 

 

26

 

 

 

26

 

Balance at December 25, 2021

 

$

(27

)

 

$

21

 

 

$

(6

)

 

 

(In millions)

 

Foreign

Currency

Translation

Adjustments

 

 

Change in

Deferred

Pension

 

 

Total

 

Balance at December 28, 2019

 

$

(29

)

 

$

(37

)

 

$

(66

)

Other comprehensive income activity

 

 

2

 

 

 

39

 

 

 

41

 

Tax impact

 

 

—

 

 

 

(7

)

 

 

(7

)

Total other comprehensive income, net of tax, where applicable

 

 

2

 

 

 

32

 

 

 

34

 

Balance at December 26, 2020

 

$

(27

)

 

$

(5

)

 

$

(32

)