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STOCKHOLDERS' EQUITY AND EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2023

STOCKHOLDERS' EQUITY AND EARNINGS PER SHARE

STOCKHOLDERS' EQUITY AND EARNINGS PER SHARE

NOTE 5. STOCKHOLDERS’ EQUITY AND EARNINGS PER SHARE

Accumulated Other Comprehensive Income

The following table summarizes the components of and changes in accumulated other comprehensive income (loss), net of income taxes.


		Foreign Currency Translation		Change in Fair Value of Cash Flow Hedges		Minimum Pension Benefit Retirement Liability		Total
Balance at December 31, 2020	$	9,982	$	(2,139)	$	(10,448)	$	(2,605)
Other comprehensive income prior to reclassifications		(12,262)		3,116		8,585		(561)
Amounts reclassified from accumulated other comprehensive income		-		1,130		820		1,950
Balance at December 31, 2021		(2,280)		2,107		(1,043)		(1,216)
Other comprehensive income prior to reclassifications		(10,543)		12,625		18,016		20,098
Amounts reclassified from accumulated other comprehensive income		-		(2,884)		322		(2,562)
Balance at December 31, 2022		(12,823)		11,848		17,295		16,320
Other comprehensive income prior to reclassifications		2,027		4,502		(5,455)		1,074
Amounts reclassified from accumulated other comprehensive income		-		(10,876)		(404)		(11,280)
Balance at December 31, 2023	$	(10,796)	$	5,474	$	11,436	$	6,114

Amounts reclassified from accumulated other comprehensive income (loss) to the specific caption within the Consolidated Statements of Operations were as follows:


	Years Ended December 31,						To Caption on
	2023		2022		2021		Consolidated Statements of Operations
Change in fair value of cash flow hedges	$	(10,876)	$	(2,884)	$	1,130	Interest expense
Minimum pension benefit retirement liability		(404)		322		820	Other income (expense), net
Total reclassifications	$	(11,280)	$	(2,562)	$	1,950

Earnings Per Share

The following table summarizes our earnings per share (“EPS”):


	Years Ended December 31,
	2023		2022		2021
Income from continuing operations	$	130,749	$	201,891	$	134,707
Less: income from continuing operations attributable to noncontrolling interest		—		16		44
Income from continuing operations attributable to Advanced Energy Industries, Inc.	$	130,749	$	201,875	$	134,663


Basic weighted-average common shares outstanding		37,480		37,463		38,143
Dilutive effect of stock awards		270		258		212
Diluted weighted-average common shares outstanding		37,750		37,721		38,355


EPS from continuing operations
Basic EPS	$	3.49	$	5.39	$	3.53
Diluted EPS	$	3.46	$	5.35	$	3.51


Anti-dilutive shares not included above
Stock awards		95		67		1
Warrants		3,486		—		—
Total anti-dilutive shares		3,581		67		1

We compute basic earnings per share of common stock (“Basic EPS”) by dividing income available to common stockholders by the weighted-average number of common shares outstanding during the period.

See Note 18. Long-Term Debt for information regarding our Convertible Notes, Note Hedges, and Warrants. For diluted earnings per share of common stock (“Diluted EPS”), we increase the weighted-average number of common shares outstanding during the period, as needed, to include the following:

●

Dilutive impact associated with the Convertible Notes using the if-converted method. The Convertible Notes are repayable in cash up to par value and in cash or shares of common stock for the excess over par value, as such when the stock price is lower than the strike price, there is no dilutive or anti-dilutive impact. Prior to conversion, we do not consider the Note Hedges for purposes of Diluted EPS as their effect would be anti-dilutive. Upon conversion, we expect the Note Hedges to offset the dilutive effect of the Convertible Notes when the stock price is above $137.46;

●

Additional common shares that would have been outstanding if our outstanding stock awards had been converted to common shares using the treasury stock method. We exclude any stock awards that have an anti-dilutive effect; and

●

Dilutive effect of the Warrants issued concurrently with the Convertible Notes using the treasury stock method. For all periods presented, the Warrants did not increase the weighted-average number of common shares outstanding because the exercise price of the Warrants exceeded the average market price of our common stock.

Share Repurchases

To repurchase shares of our common stock, we periodically enter into stock repurchase agreements. The following table summarizes these repurchases:


	Years Ended December 31,
(in thousands, except per share amounts)	2023		2022		2021
Amount paid or accrued to repurchase shares	$	40,132	$	26,635	$	78,125
Number of shares repurchased		378		356		901
Average repurchase price per share	$	105.74	$	74.90	$	86.76

There were no shares repurchased from related parties. Repurchased shares were retired and assumed the status of authorized and unissued shares.

At December 31, 2023, the remaining amount authorized by the Board of Directors (“our Board” or “the Board”) for future share repurchases was $199.2 million with no time limitation.