Treasury stock: On September 26, 2022, the Board of Directors authorized a new stock repurchase program permitting us to purchase up to 6 million shares of our outstanding common stock from September 26, 2022 through December 31, 2025. We may repurchase shares from time to time in the open market, in privately negotiated transactions, or otherwise, at prices we deem appropriate. We are not obligated to repurchase any shares under the authorization, and the new repurchase program may be suspended, discontinued, or modified at any time, for any reason and without notice. The parameters of our stock repurchase program are not established solely with reference to the dilutive impact of shares issued under our stock incentive plan. However, we expect that, over time, share repurchases will offset the dilutive impact of shares issued under the stock incentive plan.

There were zero shares of common stock repurchased in the first quarter of 2023. During the first quarter of 2022, we repurchased approximately 455 thousand shares of common stock in open market transactions at a net cost of $39 million.


	Three Months Ended March 31,
(in millions)	2023		2022
Stock options:
Pre-tax compensation expense	$	1	$	1
Income tax benefit	—		—
Stock option expense, net of income taxes	1		1

Restricted stock units ("RSUs"):
Pre-tax compensation expense	4		3
Income tax benefit	(1)		—
RSUs, net of income taxes	3		3

Performance shares and other share-based awards:
Pre-tax compensation expense	4		3
Income tax benefit	—		(1)
Performance shares and other share-based compensation expense, net of income taxes	4		2

Total share-based compensation:
Pre-tax compensation expense	9		7
Income tax benefit	(1)		(1)
Total share-based compensation expense, net of income taxes	$	8	$	6

Stock Options: Under our stock incentive plan, stock options are granted at exercise prices that equal the market value of the underlying common stock on the date of grant. The options have a 10-year term and are exercisable upon vesting, which occurs over a three-year period at the anniversary dates of the date of grant. Compensation expense is generally recognized on a straight-line basis for all awards over the employee’s vesting period or over a one-year required service period for certain retirement-eligible executive level employees. We estimate a forfeiture rate at the time of grant and update the estimate throughout the vesting period of the stock options within the amount of compensation costs recognized in each period.

We granted non-qualified options to purchase 197 thousand shares and 281 thousand shares for the first quarter of 2023 and 2022, respectively. The fair value of each option grant was estimated using the Black-Scholes option-pricing model with the following assumptions:


	Three Months Ended March 31,
	2023		2022
Expected life (in years)	5.5		5.5
Risk-free interest rate	4.0	%	2.0	%
Expected volatility	28.3	%	23.8	%
Expected dividend yield	2.9	%	2.9	%

The expected life of options represents the weighted average period that we expect options granted to be outstanding giving consideration to vesting schedules and our historical exercise patterns. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the grant date for the period corresponding to the expected life of the options. Expected volatility is based on historical volatilities of our common stock, and dividend yields are based on our dividend yield at the date of issuance.


	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, 2022	2,222	$	92.32	5.16	$	24
Granted	197	98.69
Exercised	(148)	63.51
Cancelled	—	—
Outstanding as of March 31, 2023	2,271	$	94.75	5.61	$	25
Exercisable as of March 31, 2023	1,786	$	95.38	4.67	$	20

For the first quarter of 2023, cash received from the exercise of stock options was approximately $9 million. As of March 31, 2023, the unrecognized compensation cost related to non-vested stock options totaled $6 million, which is expected to be amortized over the weighted-average period of approximately 1.7 years.


	Three Months Ended March 31,
(dollars in millions, except per share)	2023		2022
Weighted average grant date fair value of stock options granted (per share)	$	23.80	$	15.04
Total intrinsic value of stock options exercised	6		1

Restricted Stock Units: We have granted restricted stock units (“RSUs”) to certain key employees. The RSUs are primarily subject to cliff vesting, generally after three years, provided the employee remains in our service. The fair value of the RSUs is determined based upon the number of shares granted and the quoted market price of our common stock at the grant date.


(shares in thousands)	Number of Restricted Shares	Weighted Average Fair Value per Share
Non-vested at December 31, 2022	517	$	88.04
Granted	203	98.46
Vested	(137)	88.44
Cancelled	(5)	89.11
Non-vested at March 31, 2023	578	$	91.64

At March 31, 2023, the total remaining unrecognized compensation cost related to RSUs was $33 million, which will be amortized on a weighted-average basis over approximately 2.1 years.

Performance Shares: We have a long-term incentive plan for senior management in the form of performance shares. The vesting of the performance shares is generally based on two performance metrics. Fifty percent of the performance shares awarded vest based on our total shareholder return as compared to the total shareholder return of our peer group and the remaining fifty percent vest based on the calculation of our three-year average Adjusted Return on Invested Capital (“ROIC”) against an established ROIC target.

For the 2023 performance shares awarded based on our total shareholder return, the number of shares that ultimately vest can range from zero to 200 percent of the grant depending on our total shareholder return as compared to the total shareholder return of our peer group. The share award vesting will be calculated at the end of the three-year period and is subject to approval by management and the People, Culture, and Compensation Committee ("Compensation Committee") of the Board of Directors. Compensation expense is based on the fair value of the performance shares at the

For the 2023 performance shares awarded based on Adjusted ROIC, the number of shares that ultimately vest can range from zero to 200 percent of the grant depending on our Adjusted ROIC performance against the target. The share award vesting will be calculated at the end of the three-year period and is subject to approval by management and the Compensation Committee. Compensation expense is based on the market price of our common stock on the grant date and the final number of shares that ultimately vest. We estimate the potential share vesting at least annually to adjust the compensation expense for these awards over the vesting period to reflect our estimated Adjusted ROIC performance against the target. The total compensation expense for these awards is amortized over a three-year graded vesting schedule.

For the first quarter of 2023, we awarded 92,628 thousand performance shares at a weighted average fair value of $114.26 per share. As of March 31, 2023, the unrecognized compensation cost related to these awards was $19 million, which will be amortized over the remaining service period of 2.3 years. The 2020 performance share awards that vested in February 2023 achieved a 77 percent payout of the granted performance shares. As of March 31, 2023, the 2021 performance share awards are estimated to pay out at 180 percent. There were zero shares cancelled during the first quarter of 2023.


(in millions)	Cumulative Translation Adjustment		Hedging Activities		Pension and Postretirement Adjustment		AOCL
Balance, December 31, 2022	$	(1,008)	$	6	$	(46)	$	(1,048)
Other comprehensive income (loss) before reclassification adjustments	6		(58)		—		(52)
(Gain) loss reclassified from accumulated OCL	—		(18)		—		(18)
Tax benefit	—		20		—		20
Net other comprehensive income (loss)	6		(56)		—		(50)
Balance, March 31, 2023	$	(1,002)	$	(50)	$	(46)	$	(1,098)


(in millions)	Cumulative Translation Adjustment		Hedging Activities		Pension and Postretirement Adjustment		AOCL
Balance, December 31, 2021	$	(903)	$	48	$	(42)	$	(897)
Other comprehensive gain before reclassification adjustments	38		176		—		214
(Gain) reclassified from accumulated OCL	—		(46)		—		(46)
Tax (provision)	—		(34)		—		(34)
Net other comprehensive income	38		96		—		134
Balance, March 31, 2022	$	(865)	$	144	$	(42)	$	(763)


	Three Months Ended March 31, 2023					Three Months Ended March 31, 2022
(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	$	191	66.1	$	2.89	$	130	66.9	$	1.94

Effect of Dilutive Securities:
Incremental shares from assumed exercise of dilutive stock options and vesting of dilutive RSUs and other awards			1.0					0.7
Diluted EPS	$	191	67.1	$	2.85	$	130	67.6	$	1.92

Approximately 0.7 million and 1.3 million share-based awards of common stock were excluded for the first quarter of 2023 and 2022, respectively, from the calculation of the weighted average number of shares outstanding for diluted EPS because their effects were anti-dilutive.