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Detailed steps to reproduce:
Add data to ArcMap (anything), just so it sets a spatial reference in the data frame (US States is a good choice)
Add the Excel spread Sheet using the named range "ForGIS", I removed all of the confidential data out of the file, the only thing left is the X,Y.
Right click on table in TOC and create Event Theme from X,Y Data, set coordinate system to WGS 1984.
Right click on Event Theme and navigate to Data --> export data.
Save data as a shapefile on disk, use the data's source coordinate system (not the data frame)
Every time I do this, ArcMap just disappears :)
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