Equity (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of reconciliation of common stock share activity


(Shares of common stock, in thousands)	Issued	Held in Treasury	Outstanding
Balance at December 31, 2015	77,811	6,195	71,616
Issuance of restricted stock units as compensation	—	(94)	94
Performance shares and other share-based awards	—	(70)	70
Stock options exercised	—	(636)	636
Purchase/acquisition of treasury stock	—	2	(2)
Balance at December 31, 2016	77,811	5,397	72,414
Issuance of restricted stock units as compensation	—	(103)	103
Performance shares and other share-based awards	—	(75)	75
Stock options exercised	—	(443)	443
Purchase/acquisition of treasury stock	—	1,039	(1,039)
Balance at December 31, 2017	77,811	5,815	71,996
Issuance of restricted stock units as compensation	—	(100)	100
Performance shares and other share-based awards	—	(68)	68
Stock options exercised	—	(209)	209
Purchase/acquisition of treasury stock	—	5,847	(5,847)
Balance at December 31, 2018	77,811	11,285	66,526

Schedule of stock based compensation expense


(in millions)	2018		2017		2016
Stock options:
Pre-tax compensation expense	$	5	$	7	$	9
Income tax benefit		(1)		(2)		(3)
Stock option expense, net of income taxes		4		5		6

RSUs:
Pre-tax compensation expense		12		13		12
Income tax benefit		(2)		(4)		(5)
RSUs, net of income taxes		10		9		7

Performance shares and other share-based awards:
Pre-tax compensation expense		4		6		7
Income tax benefit		—		(2)		(3)
Performance shares and other share-based compensation expense, net of income taxes		4		4		4

Total share-based compensation:
Pre-tax compensation expense		21		26		28
Income tax benefit		(3)		(8)		(11)
Total share-based compensation expense, net of income taxes	$	18	$	18	$	17

Schedule of valuation assumptions for stock options


	For the Year Ended December 31,
	2018		2017		2016
Expected life (in years)	5.5		5.5		5.5
Risk-free interest rate	2.5	%	1.9	%	1.4	%
Expected volatility	19.8	%	22.5	%	23.4	%
Expected dividend yield	1.8	%	1.7	%	1.8	%

Schedule of stock option transactions


	Number of Options (in thousands)	Weighted Average Exercise Price per Share		Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value (in millions)
Outstanding as of December 31, 2017	2,095	$	71.81	5.87	$	142
Granted	215		133.61
Exercised	(209)		48.50
Cancelled	(22)		99.81
Outstanding as of December 31, 2018	2,079	$	80.25	5.51	$	42
Exercisable as of December 31, 2018	1,599	$	67.85	4.68	$	42

Schedule of additional information pertaining to stock option activity



	Year Ended December 31,
(dollars in millions, except per share)	2018		2017		2016
Weighted average grant date fair value of stock options granted (per share)	$	24.01	$	23.90	$	18.73
Total intrinsic value of stock options exercised		15		35		46

Schedule of restricted unit activity


		Weighted
	Number of	Average
	Restricted	Fair Value
(shares in thousands)	Shares	per Share
Non-vested at December 31, 2017	387	$	100.13
Granted	114		128.76
Vested	(137)		84.05
Cancelled	(20)		114.98
Non-vested at December 31, 2018	344	$	115.06

Summary of net changes in accumulated other comprehensive loss


(in millions)	Cumulative Translation Adjustment		Deferred (Loss) Gain on Hedging Activities		Pension and Postretirement Adjustment		Unrealized (Loss) Gain on Investment		Accumulated Other Comprehensive Loss
Balance, December 31, 2015	$	(1,025)	$	(29)	$	(47)	$	(1)	$	(1,102)
Other comprehensive income (loss) before reclassification adjustments		17		(17)		(14)		1		(13)
Amount reclassified from accumulated OCI		—		49		1		—		50
Tax (provision) benefit		—		(10)		4		—		(6)
Net other comprehensive income (loss)		17		22		(9)		1		31
Balance, December 31, 2016		(1,008)		(7)		(56)		—		(1,071)
Other comprehensive income (loss) before reclassification adjustments		57		(16)		8		3		52
Amount reclassified from accumulated OCI		—		6		(2)		—		4
Tax benefit (provision)		—		4		(1)		(1)		2
Net other comprehensive income (loss)		57		(6)		5		2		58
Balance, December 31, 2017		(951)		(13)		(51)		2		(1,013)
Other comprehensive (loss) income before reclassification adjustments		(129)		8		(20)		—		(141)
Amount reclassified from accumulated OCI		—		6		—		—		6
Tax (provision) benefit		—		(4)		5		—		1
Net other comprehensive (loss) income		(129)		10		(15)		—		(134)
Adoption of ASU 2016-01*		—		—		—		(2)		(2)
Adoption of ASU 2018-02*		—		(2)		(3)		—		(5)
Other		—		(2)		(3)		(2)		(7)
Balance, December 31, 2018	$	(1,080)	$	(5)	$	(69)	$	—	$	(1,154)

Schedule of reclassifications from AOCI into net income


							Affected Line Item in
	Amount Reclassified from AOCI						Consolidated
(in millions)	2018		2017		2016		Statements of Income
(Losses) gains on cash flow hedges:
Commodity contracts	$	(6)	$	(5)	$	(45)	Cost of sales
Foreign currency contracts		1		1		(2)	Net sales/Cost of sales
Interest rate contracts		(1)		(2)		(2)	Financing costs, net
Gains related to pension and other postretirement obligations		-		2		(1)	(a)
Total before-tax reclassifications		(6)		(4)		(50)
Tax benefit		2		1		16
Total after-tax reclassifications	$	(4)	$	(3)	$	(34)

(a)

This component is included in the computation of net periodic benefit cost and affects both cost of sales and operating expenses on the Consolidated Statements of Income.

Schedule of basic and diluted earnings per common share


		2018					2017					2016
		Net Income	Weighted		Per		Net Income	Weighted		Per		Net Income	Weighted		Per
		Available	Average		Share		Available	Average		Share		Available	Average		Share
(in millions, except per share amounts)		to Ingredion	Shares		Amount		to Ingredion	Shares		Amount		to Ingredion	Shares		Amount
Basic EPS	$	443	70.9	$	6.25	$	519	72.0	$	7.21	$	485	72.3	$	6.70

Effect of Dilutive Securities:
Incremental shares from assumed exercise of dilutive stock options and vesting of dilutive RSUs and other awards			0.9					1.5					1.8
Diluted EPS	$	443	71.8	$	6.17	$	519	73.5	$	7.06	$	485	74.1	$	6.55