Changes in Equity and Redeemable Noncontrolling Interests

6 Months Ended

Jun. 30, 2020

Changes in Equity and Redeemable Noncontrolling Interests

6. CHANGES IN EQUITY AND REDEEMABLE NONCONTROLLING INTERESTS


	Attributable to Baidu, Inc.
	Ordinary shares					Additional paid-in capital			Retained earnings			Accumulated other comprehensive income		Noncontrolling interests			Total shareholders’ equity			Redeemable noncontrolling interests
	Number of shares			Amount		Additional paid-in capital			Retained earnings			Accumulated other comprehensive income		Noncontrolling interests			Total shareholders’ equity			Redeemable noncontrolling interests
				RMB		RMB			RMB			RMB		RMB			RMB			RMB
	(In millions)
Balances at December 31, 2018		34,934,946			—		33,441			129,246			210		12,139			175,036			716
Net income (loss)		—			—		—			2,085			—		(1,360	)		725			—
Other comprehensive income (loss)		—			—		—			—			26		(17	)		9			—
Business combinations		—			—		—			—			—		125			125			182
Issuance of shares by the Company’s subsidiaries to noncontrolling interests		—			—		(16	)		—			—		239			223			—
Exercise of share-based awards		178,264			—		10						—		—			10			—
Share-based compensation		—			—		2,523			—			—		245			2,768			—
Repurchase and retirement of ordinary shares		(259,142	)		—		—			(1,999	)		—		—			(1,999	)		—
Dividends paid and payable by the Company’s subsidiaries		—			—		—			—			—		(10	)		(10	)		—
Disposal of subsidiaries’ shares		—			—		—			—			—		(2	)		(2	)		—
Accretion of redeemable noncontrolling interests		—			—		—			(35	)		—		(16	)		(51	)		51
Equity component of convertible senior notes, net of issuance costs		—			—		559			—			—		429			988			—
Purchase of capped call		—			—		(321	)		—			—		(246	)		(567	)		—

Balances at Jun e 30, 2019 (unaudited)		34,854,068			—		36,196			129,297			236		11,526			177,255			949


	Attributable to Baidu, Inc.
	Ordinary shares					Additional paid-in capital			Retained earnings			Accumulated other comprehensive loss			Noncontrolling interests			Total shareholders’ equity			Redeemable noncontrolling interests
	Number of shares			Amount		Additional paid-in capital			Retained earnings			Accumulated other comprehensive loss			Noncontrolling interests			Total shareholders’ equity			Redeemable noncontrolling interests
				RMB		RMB			RMB			RMB			RMB			RMB			RMB
	(In millions)
Balances at December 31, 2019		34,582,875			—		38,714			126,268			(1,383	)		8,107			171,706			1,109
Cumulative effect of accounting change		—			—		—			(314	)		—			(43	)		(357	)		—
Net income (loss)		—			—		—			3,620			—			(2,510	)		1,110			—
Other comprehensive (loss) income		—			—		—			—			(257	)		84			(173	)		—
Business combinations		—			—		—			—			—			113			113			—
Issuance of shares by the Company’s subsidiaries to noncontrolling interest		—			—		36			—			—			75			111			—
Exercise of share-based awards		209,780			—		2			—			—			—			2			—
Share-based compensation		—			—		3,019			—			—			309			3,328			—
Dividends paid and payable by a subsidiary		—			—		—			—			—			(23	)		(23	)		—
Accretion of redeemable noncontrolling interests		—			—		—			(46	)		—			(18	)		(64	)		64
Others		—			—		(20	)		—			—			20			—			—
Repurchase and retirement of ordinary shares		(685,091	)		—		—			(5,130	)		—			—			(5,130	)		—

Balances at June 30, 2020 (unaudited)		34,107,564			—		41,751			124,398			(1,640	)		6,114			170,623			1,173

Balances at June 30, 2020, in US$ (unaudited)		—			—		5,909			17,607			(232	)		865			24,149			166

On May 16, 2019, the Company announced a share repurchase program under which the Company proposed to acquire up to an aggregate of US$1.0 billion of its ordinary shares, effective until July 1, 2020 in the open market or through privately negotiated transactions, depending on market conditions and in accordance with applicable rules and regulations.

On May 13, 2020, the Company announced a share repurchase program

(“2020 share repurchase program”)

under which the Company proposed to acquire up to an aggregate of US$1.0 billion of its ordinary shares, effective until July 1, 2021 in the open market or through privately negotiated transactions, depending on market conditions and in accordance with applicable rules and regulations.

In August, 2020, the board of directors approved a change to the 2020 share repurchase program, increasing the repurchase authorization from US$1 billion to US$3 billion, which is effective through December 31,2022.

The Company repurchased 259,142 and 685,091 Class A ordinary shares from the open market with an aggregate purchase price of US$291 and US$725 million during the

six-month

period

ended June 30, 2019 and June 30, 2020, respectively. The repurchased shares were cancelled under Cayman Islands law upon repurchase and the difference between the par value and the repurchase price was debited to retained earnings.