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Equity (Tables)

9 Months Ended

Sep. 30, 2020

Equity

Schedule of stock based compensation expense


		Three Months Ended						Nine Months Ended
		September 30,						September 30,
(in millions)		2020			2019			2020			2019
Stock options:
Pre-tax compensation expense		$	1		$	—		$	3		$	2
Income tax benefit			—			—			—			—
Stock option expense, net of income taxes			1			—			3			2

Restricted stock units ("RSUs"):
Pre-tax compensation expense			3			2			9			7
Income tax benefit			—			—			(1)			(1)
RSUs, net of income taxes			3			2			8			6

Performance shares and other share-based awards:
Pre-tax compensation expense			2			2			6			5
Income tax benefit			(1)			—			(1)			—
Performance shares and other share-based compensation expense, net of income taxes			1			2			5			5

Total share-based compensation:
Pre-tax compensation expense			6			4			18			14
Income tax benefit			(1)			—			(2)			(1)
Total share-based compensation expense, net of income taxes		$	5		$	4		$	16		$	13

Schedule of valuation assumptions for stock options


		Nine Months Ended September 30,
		2020			2019
Expected life (in years)		5.5			5.5
Risk-free interest rate		1.4	%		2.5	%
Expected volatility		19.8	%		19.7	%
Expected dividend yield		2.9	%		2.7	%

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, 2019		2,055		$	84.36		5.30		$	34
Granted		336			88.35
Exercised		(93)			45.12
Cancelled		(19)			85.75
Outstanding as of September 30, 2020		2,279		$	86.55		5.37		$	12
Exercisable as of September 30, 2020		1,740		$	84.09		4.33		$	12

Schedule of additional information pertaining to stock option activity


		Three Months Ended						Nine Months Ended
		September 30,						September 30,
(dollars in millions, except per share)		2020			2019			2020			2019
Weighted average grant date fair value of stock options granted (per share)		$	—		$	—		$	11.48		$	14.02
Total intrinsic value of stock options exercised		$	—		$	1		$	4		$	7

Schedule of restricted unit activity


(RSUs in thousands)		Number of Restricted Shares		Weighted Average Fair Value per Share
Non-vested as of December 31, 2019		339		$	108.02
Granted		178			88.10
Vested		(92)			117.18
Cancelled		(14)			102.71
Non-vested as of September 30, 2020		411		$	97.52

Summary of net changes in accumulated other comprehensive loss


(in millions)		Cumulative Translation Adjustment			Hedging Activities			Pension and Postretirement Adjustment			Accumulated Other Comprehensive Loss
Balance, December 31, 2019		$	(1,089)		$	(9)		$	(60)		$	(1,158)
Other comprehensive (loss) before reclassification adjustments			(105)			(50)			—			(155)
Loss reclassified from accumulated OCI			—			56			—			56
Tax (provision)			—			(2)			—			(2)
Net other comprehensive (loss) income			(105)			4			—			(101)
Balance, September 30, 2020		$	(1,194)		$	(5)		$	(60)		$	(1,259)


(in millions)		Cumulative Translation Adjustment			Hedging Activities			Pension and Postretirement Adjustment			Accumulated Other Comprehensive Loss
Balance, December 31, 2018		$	(1,080)		$	(5)		$	(69)		$	(1,154)
Other comprehensive (loss) before reclassification adjustments			(48)			(16)			(2)			(66)
Loss reclassified from accumulated OCI			—			3			—			3
Tax benefit			—			3			—			3
Net other comprehensive loss			(48)			(10)			(2)			(60)
Balance, September 30, 2019		$	(1,128)		$	(15)		$	(71)		$	(1,214)

Schedule of stockholders equity and redeemable equity


		Total Equity
																				Non-
														Accumulated						Redeemable			Share-based			Redeemable
								Additional						Other						Non-			Payments			Non-
		Preferred			Common			Paid-In			Treasury			Comprehensive			Retained			Controlling			Subject to			Controlling
(in millions)		Stock			Stock			Capital			Stock			Loss			Earnings			Interests			Redemption			Interests
Balance, December 31, 2019		$	—		$	1		$	1,137		$	(1,040)		$	(1,158)		$	3,780		$	21		$	31		$	—
Net income attributable to Ingredion																		75
Net income attributable to non-controlling interests																					3
Dividends declared, common stock ($0.63/share)																		(42)
Share-based compensation, net of issuance									5			12												(8)
Other comprehensive loss															(164)						(3)
Balance, March 31, 2020		$	—		$	1		$	1,142		$	(1,028)		$	(1,322)		$	3,813		$	21		$	23		$	—
Net income attributable to Ingredion																		66
Net income attributable to non-controlling interests																					1
Dividends declared, common stock ($0.63/share)																		(43)
Dividends declared, non-controlling interests																					(3)
Share-based compensation, net of issuance									1			1												4
Other comprehensive income															15						1
Balance, June 30, 2020		$	—		$	1		$	1,143		$	(1,027)		$	(1,307)		$	3,836		$	20		$	27		$	—
Net income attributable to Ingredion																		92
Net income attributable to non-controlling interests																					3						(2)
Dividends declared, common stock ($0.64/share)																		(44)
Dividends declared, non-controlling interests																					(2)
Acquisition of redeemable non-controlling interests																											74
Share-based compensation, net of issuance									2															5
Other comprehensive (loss) income															48												2
Balance, September 30, 2020		$	—		$	1		$	1,145		$	(1,027)		$	(1,259)		$	3,884		$	21		$	32		$	74


		Total Equity
																				Non-
														Accumulated						Redeemable			Share-based			Redeemable
								Additional						Other						Non-			Payments			Non-
		Preferred			Common			Paid-In			Treasury			Comprehensive			Retained			Controlling			Subject to			Controlling
(in millions)		Stock			Stock			Capital			Stock			Loss			Earnings			Interests			Redemption			Interests
Balance, December 31, 2018		$	—		$	1		$	1,096		$	(1,091)		$	(1,154)		$	3,536		$	20		$	37		$	—
Net income attributable to Ingredion																		100
Net income attributable to non-controlling interests																					2
Dividends declared, common stock ($0.625/share)																		(42)
Repurchases of common stock									32			31
Share-based compensation, net of issuance									9			10												(16)
Other comprehensive loss															(6)
Balance, March 31, 2019		$	—		$	1		$	1,137		$	(1,050)		$	(1,160)		$	3,594		$	22		$	21		$	—
Net income attributable to Ingredion																		105
Net income attributable to non-controlling interests																					2
Dividends declared, common stock ($0.625/share)																		(43)
Dividends declared, non-controlling interests																					(4)
Share-based compensation, net of issuance									1			3												4
Other comprehensive income (loss)															8						(4)
Balance, June 30, 2019		$	—		$	1		$	1,138		$	(1,047)		$	(1,152)		$	3,656		$	16		$	25		$	—
Net income attributable to Ingredion																		99
Net income attributable to non-controlling interests																					3
Dividends declared, common stock ($0.63/share)																		(42)
Dividends declared, non-controlling interests																					(2)
Repurchases of common stock
Share-based compensation, net of issuance									(1)			3												3
Other comprehensive (loss) income															(62)						2
Balance, September 30, 2019		$	—		$	1		$	1,137		$	(1,044)		$	(1,214)		$	3,713		$	19		$	28		$	—

Schedule of basic and diluted earnings per common share


		Three Months Ended September 30, 2020								Three Months Ended September 30, 2019
(in millions, except per share amounts)		Net Income Available to Ingredion			Weighted Average Shares		Per Share Amount			Net Income Available to Ingredion			Weighted Average Shares		Per Share Amount
Basic EPS		$	92		67.2		$	1.37		$	99		66.9		$	1.48

Effect of Dilutive Securities:
Incremental shares from assumed exercise of dilutive stock options and vesting of dilutive RSUs and other awards					0.4								0.5
Diluted EPS		$	92		67.6		$	1.36		$	99		67.4		$	1.47


		Nine Months Ended September 30, 2020								Nine Months Ended September 30, 2019
(in millions, except per share amounts)		Net Income Available to Ingredion			Weighted Average Shares		Per Share Amount			Net Income Available to Ingredion			Weighted Average Shares		Per Share Amount
Basic EPS		$	233		67.2		$	3.47		$	304		66.9		$	4.54

Effect of Dilutive Securities:
Incremental shares from assumed exercise of dilutive stock options and vesting of dilutive RSUs and other awards					0.4								0.5
Diluted EPS		$	233		67.6		$	3.45		$	304		67.4		$	4.51