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Equity (Tables)

9 Months Ended

Sep. 30, 2023

Stockholders' Equity Note [Abstract]

Schedule of Share-Based Compensation Expense

The following table summarizes the components of our share-based compensation expense for the periods presented:

						Three Months Ended September 30,												Nine Months Ended September 30,
(in millions)						2023						2022						2023						2022
Stock options:
Pre-tax compensation expense						$	1					$	1					$	3					$	3
Income tax benefit						—						—						—						—
Stock option expense, net of income taxes						1						1						3						3
Restricted stock units (“RSUs”):
Pre-tax compensation expense						4						4						11						10
Income tax benefit						—						—						(1)						(1)
RSUs, net of income taxes						4						4						10						9
Performance shares and other share-based awards:
Pre-tax compensation expense						4						2						9						9
Income tax benefit						(1)						—						(1)						(1)
Performance shares and other share-based compensation expense, net of income taxes						3						2						8						8
Total share-based compensation:
Pre-tax compensation expense						9						7						23						22
Income tax benefit						(1)						—						(2)						(2)
Total share-based compensation expense, net of income taxes						$	8					$	7					$	21					$	20

Schedule of Valuation Assumptions for Stock Options

he fair value of each option grant by using the Black-Scholes option-pricing model with the following assumptions:

						Nine Months Ended September 30,
						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%

Schedule of Stock Option Transactions

A summary of stock option transactions for the nine months ended September 30, 2023 is as follows:

						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						(345)						72.76
Cancelled						(62)						105.47
Outstanding as of September 30, 2023						2,012						$	95.89					5.17						$	15
Exercisable as of September 30, 2023						1,565						$	96.88					4.20						$	12

Schedule of Additional Information Pertaining to Stock Option Activity

Additional information pertaining to stock option activity is as follows:

						Three Months Ended September 30,									Nine Months Ended September 30,
(dollars in millions, except per share amounts)						2023						2022			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						1						1			11						2

Schedule of Restricted Unit Activity

The following table summarizes RSU activity in 2023:

(shares in thousands)						Number of Restricted Shares						Weighted Average Fair Value per Share
Non-vested at December 31, 2022						517						$	88.04
Granted						217						98.29
Vested						(145)						88.13
Cancelled						(33)						91.18
Non-vested at September 30, 2023						556						$	91.94

Summary of Accumulated Other Comprehensive Loss

The following is a summary of accumulated other comprehensive income (loss) for the nine months ended September 30, 2023 and 2022:

(in millions)						Cumulative Translation Adjustment						Hedging Activities						Pension and Postretirement Adjustment						AOCL
Balance, December 31, 2022						$	(1,008)					$	6					$	(46)					$	(1,048)
Other comprehensive (loss) before reclassification adjustments						(30)						(123)						(2)						(155)
Loss reclassified from accumulated OCL						—						36						1						37
Tax benefit						—						21						1						22
Net other comprehensive (loss)						(30)						(66)						—						(96)
Balance, September 30, 2023						$	(1,038)					$	(60)					$	(46)					$	(1,144)

(in millions)						Cumulative Translation Adjustment						Hedging Activities						Pension and Postretirement Adjustment						AOCL
Balance, December 31, 2021						$	(903)					$	48					$	(42)					$	(897)
Other comprehensive (loss) gain before reclassification adjustments						(195)						254						—						59
(Gain) loss reclassified from accumulated OCL						—						(201)						1						(200)
Tax (provision)						—						(14)						—						(14)
Net other comprehensive (loss) income						(195)						39						1						(155)
Balance, September 30, 2022						$	(1,098)					$	87					$	(41)					$	(1,052)

Schedule of Basic and Diluted Earnings Per Common Share

The following table provides the computation of basic and diluted earnings per common share (“EPS”) for the periods presented.

						Three Months Ended September 30, 2023																		Three Months Ended September 30, 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						$	158					66.0						$	2.39					$	106					65.8						$	1.61
Effect of Dilutive Securities:
Incremental shares from assumed exercise of dilutive stock options and vesting of dilutive RSUs and other awards												1.0																		0.8
Diluted EPS						$	158					67.0						$	2.36					$	106					66.6						$	1.59

						Nine Months Ended September 30, 2023																		Nine Months Ended September 30, 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						$	512					66.1						$	7.75					$	378					66.4						$	5.69
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						$	512					67.1						$	7.63					$	378					67.1						$	5.63

Schedule of Stockholders Equity

The following Condensed Consolidated Statements of Equity and Redeemable Equity present the dividends per share for common stock for the periods indicated:

						Total Equity																																										Share-based Payments Subject to Redemption						Redeemable Non- Controlling Interests
(in millions)						Preferred Stock						Common Stock						Additional Paid-In Capital						Treasury Stock						Accumulated Other Comprehensive Loss						Retained Earnings						Non- Redeemable Non- Controlling Interests
Balance, December 31, 2022						$	—					$	1					$	1,132					$	(1,148)					$	(1,048)					$	4,210					$	16					$	48					$	51
Net income attributable to Ingredion																																				191
Net income attributable to non-controlling interests																																										3
Dividends declared, common stock ($0.71/share)																																				(47)
Share-based compensation, net of issuance																		1						21																								(10)
Other comprehensive (loss)																														(50)												(6)
Balance, March 31, 2023						$	—					$	1					$	1,133					$	(1,127)					$	(1,098)					$	4,354					$	13					$	38					$	51
Net income attributable to Ingredion																																				163
Net income attributable to non-controlling interests																																										1
Dividends declared, common stock ($0.71/share)																																				(48)
Dividends declared, non-controlling interests																																										(1)
Share-based compensation, net of issuance																		2						11																								5
Fair market value adjustment to non-controlling interests																		7																																				(7)
Other comprehensive (loss)																														(21)												(1)												(1)
Balance, June 30, 2023						$	—					$	1					$	1,142					$	(1,116)					$	(1,119)					$	4,469					$	12					$	43					$	43
Net income attributable to Ingredion																																				158
Net income attributable to non-controlling interests																																										2
Dividends declared, common stock ($0.78/share)																																				(52)
Dividends declared, non-controlling interests																																										(1)
Repurchases of common stock																								(101)
Share-based compensation, net of issuance																		1						6																								6
Non-controlling interest purchases																																																						(2)
Other comprehensive (loss)																														(25)
Balance, September 30, 2023						$	—					$	1					$	1,143					$	(1,211)					$	(1,144)					$	4,575					$	13					$	49					$	41

						Total Equity																																										Share-based Payments Subject to Redemption						Redeemable Non- Controlling Interests
(in millions)						Preferred Stock						Common Stock						Additional Paid-In Capital						Treasury Stock						Accumulated Other Comprehensive Loss						Retained Earnings						Non- Redeemable Non- Controlling Interests
Balance, December 31, 2021						$	—					$	1					$	1,158					$	(1,061)					$	(897)					$	3,899					$	18					$	36					$	71
Net income attributable to Ingredion																																				130
Net income attributable to non-controlling interests																																										3
Dividends declared, common stock ($0.65/share)																																				(43)
Repurchases of common stock																								(39)
Share-based compensation, net of issuance																		2						9																								(5)
Other comprehensive income (loss)																														134												(2)
Balance, March 31, 2022						$	—					$	1					$	1,160					$	(1,091)					$	(763)					$	3,986					$	19					$	31					$	71
Net income attributable to Ingredion																																				142
Net income attributable to non-controlling interests																																										2												1
Dividends declared, common stock ($0.65/share)																																				(43)
Dividends declared, non-controlling interests																																										(4)
Repurchases of common stock																								(44)
Share-based compensation, net of issuance																		2						2																								6
Fair market value adjustment to non-controlling interests																		(29)																																				29
Non-controlling interest purchases																																																						(27)
Other comprehensive (loss)																														(177)												(2)												(4)
Balance, June 30, 2022						$	—					$	1					$	1,133					$	(1,133)					$	(940)					$	4,085					$	15					$	37					$	70
Net income attributable to Ingredion																																				106
Net income attributable to non-controlling interests																																										2												1
Dividends declared, common stock ($0.71/share)																																				(48)
Repurchases of common stock																								(29)
Share-based compensation, net of issuance																								3																								6
Non-controlling interest purchases																																																						(13)
Other comprehensive (loss)																														(112)												(3)												(2)
Balance, September 30, 2022						$	—					$	1					$	1,133					$	(1,159)					$	(1,052)					$	4,143					$	14					$	43					$	56

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