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Shareholders' Equity | 9 Months Ended
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Sep. 30, 2021
Stockholders' Equity Note [Abstract] |
Shareholders' Equity | Preferred Stock We have authorized the issuance of 10 million shares of preferred stock with no par value. In the event of a liquidation, dissolution, or winding up of the affairs of the corporation, whether voluntary or involuntary, the holders of any outstanding preferred stock would be entitled to be paid a preferential amount per share to be determined by the Board of Directors prior to any payment to holders of common stock. There was no preferred stock issued or outstanding at September 30, 2021 or December 31, 2020. Issuance of Common Stock On March 12, 2021, we closed the sale of 4,472,222 shares of our common stock in a public offering, resulting in net proceeds to us of approximately $389.4 million, after deducting underwriters’ discounts of the offering. Convertible Note Hedge Transactions We paid an aggregate amount of $84.1 million for the Convertible Note Hedge Transactions. The Convertible Note Hedge Transactions cover, subject to anti-dilution adjustments substantially similar to those in the Convertible Notes, approximately 3.7 million shares of our common stock, the same number of shares initially underlying the Convertible Notes, at a strike price of approximately $126.00, subject to customary adjustments. The Convertible Note Hedge Transactions will expire upon the maturity of the Convertible Notes, subject to earlier exercise or termination. The Convertible Note Hedge Transactions are expected generally to reduce the potential dilutive effect of the conversion of our Convertible Notes and/or offset any cash payments we are required to make in excess of the principal amount of the converted notes, as the case may be, in the event the price per share of our common stock, as measured under the terms of the Convertible Note Hedge Transactions, is greater than the strike price of the Convertible Note Hedge Transactions. The Convertible Note Hedge Transactions meet the criteria in ASC 815-40 to be classified within Stockholders' Equity, therefore the Convertible Note Hedge Transactions are not revalued after their issuance. We made a tax election to integrate the Convertible Notes and the call options. We are retaining the identification statements in our books and records, together with a schedule providing the accruals on the synthetic debt instruments. The accounting impact of this tax election makes the call options deductible as original issue discount for tax purposes over the term of the Convertible Note, and results in a $20.6 million deferred tax asset recognized through equity. Warrant Transactions In addition, concurrently with entering into the Convertible Note Hedge Transactions, we separately entered into privately-negotiated Warrant Transactions, whereby we sold to the Counterparties warrants to acquire, collectively, subject to anti-dilution adjustments, 3.7 million shares of our common stock at an initial strike price of $180.00 per share, which represents a premium of 100% over the public offering price in the common stock issuance. We received aggregate proceeds of $45.3 million from the Warrant Transactions with the Counterparties, with such proceeds partially offsetting the costs of entering into the Convertible Note Hedge Transactions. The warrants expire in June 2026. If the market value per share of our common stock, as measured under the Warrant Transactions, exceeds the strike price of the warrants, the warrants will have a dilutive effect on our earnings per share, unless we elect, subject to certain conditions, to settle the warrants in cash. The warrants meet the criteria in ASC 815-40 to be classified within Stockholders' Equity, and therefore the warrants are not revalued after issuance. Accumulated Other Comprehensive Income (Loss) The changes in the components of AOCI, net of tax, were as follows:
In thousands | Foreign Currency Translation Adjustments |  | Net Unrealized Gain (Loss) on Derivative Instruments |  | Net Unrealized Gain (Loss) on Nonderivative Instruments |  | Pension Benefit Obligation Adjustments |  | Accumulated Other Comprehensive Income (Loss)
Balances at January 1, 2020 | $ | (157,999) |  |  | $ | (723) |  |  | $ | (14,380) |  |  | $ | (31,570) |  |  | $ | (204,672) |
OCI before reclassifications | (147) |  |  | (4,727) |  |  | — |  |  | (1,151) |  |  | (6,025) |
Amounts reclassified from AOCI | 52,074 |  |  | 2,570 |  |  | — |  |  | 2,040 |  |  | 56,684 |
Total other comprehensive income (loss) | 51,927 |  |  | (2,157) |  |  | — |  |  | 889 |  |  | 50,659 |
Balances at September 30, 2020 | $ | (106,072) |  |  | $ | (2,880) |  |  | $ | (14,380) |  |  | $ | (30,681) |  |  | $ | (154,013) |
Balances at January 1, 2021 | $ | (84,843) |  |  | $ | (1,621) |  |  | $ | (14,380) |  |  | $ | (37,682) |  |  | $ | (138,526) |
OCI before reclassifications | (17,118) |  |  | 1,085 |  |  | — |  |  | — |  |  | (16,033) |
Amounts reclassified from AOCI | — |  |  | 733 |  |  | — |  |  | 2,087 |  |  | 2,820 |
Total other comprehensive income (loss) | (17,118) |  |  | 1,818 |  |  | — |  |  | 2,087 |  |  | (13,213) |
Balances at September 30, 2021 | $ | (101,961) |  |  | $ | 197 |  |  | $ | (14,380) |  |  | $ | (35,595) |  |  | $ | (151,739) |
The before-tax, income tax (provision) benefit, and net-of-tax amounts related to each component of OCI were as follows:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
In thousands | 2021 |  | 2020 |  | 2021 |  | 2020
Before-tax amount |  |  |  |  |  |  |
Foreign currency translation adjustment | $ | (7,827) |  |  | $ | 15,521 |  |  | $ | (16,941) |  |  | $ | (387) |
Foreign currency translation adjustment reclassified to net income (loss) on sale of business | — |  |  | (14) |  |  | — |  |  | 52,074 |
Net unrealized gain (loss) on derivative instruments, designated as cash flow hedges | 478 |  |  | (2,887) |  |  | 1,103 |  |  | (5,228) |
Net hedging (gain) loss reclassified to net income (loss) | 32 |  |  | 2,879 |  |  | 1,200 |  |  | 2,588 |
Net unrealized gain (loss) on defined benefit plans | — |  |  | (893) |  |  | — |  |  | (812) |
Net defined benefit plan (gain) loss reclassified to net income (loss) | 698 |  |  | 499 |  |  | 2,121 |  |  | 1,439 |
Total other comprehensive income (loss), before tax | $ | (6,619) |  |  | $ | 15,105 |  |  | $ | (12,517) |  |  | $ | 49,674 |
Tax (provision) benefit |  |  |  |  |  |  |
Foreign currency translation adjustment | $ | 63 |  |  | $ | (1,533) |  |  | $ | (177) |  |  | $ | 240 |
Foreign currency translation adjustment reclassified to net income (loss) on sale of business | — |  |  | — |  |  | — |  |  | — |
Net unrealized gain (loss) on derivative instruments, designated as cash flow hedges | — |  |  | 74 |  |  | (18) |  |  | 501 |
Net hedging (gain) loss reclassified to net income (loss) | — |  |  | (67) |  |  | (467) |  |  | (18) |
Net unrealized gain (loss) on defined benefit plans | — |  |  | (341) |  |  | — |  |  | (339) |
Net defined benefit plan (gain) loss reclassified to net income (loss) | (11) |  |  | 576 |  |  | (34) |  |  | 601 |
Total other comprehensive income (loss) tax (provision) benefit | $ | 52 |  |  | $ | (1,291) |  |  | $ | (696) |  |  | $ | 985 |
Net-of-tax amount |  |  |  |  |  |  |
Foreign currency translation adjustment | $ | (7,764) |  |  | $ | 13,988 |  |  | $ | (17,118) |  |  | $ | (147) |
Foreign currency translation adjustment reclassified to net income (loss) on sale of business | — |  |  | (14) |  |  | — |  |  | 52,074 |
Net unrealized gain (loss) on derivative instruments, designated as cash flow hedges | 478 |  |  | (2,813) |  |  | 1,085 |  |  | (4,727) |
Net hedging (gain) loss reclassified to net income (loss) | 32 |  |  | 2,812 |  |  | 733 |  |  | 2,570 |
Net unrealized gain (loss) on defined benefit plans | — |  |  | (1,234) |  |  | — |  |  | (1,151) |
Net defined benefit plan (gain) loss reclassified to net income (loss) | 687 |  |  | 1,075 |  |  | 2,087 |  |  | 2,040 |
Total other comprehensive income (loss), net of tax | $ | (6,567) |  |  | $ | 13,814 |  |  | $ | (13,213) |  |  | $ | 50,659 |

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- Definition The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(e)(1)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.3-04) -URI http://asc.fasb.org/extlink&oid=120397183&loc=d3e187085-122770 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -URI http://asc.fasb.org/topic&trid=2208762 + Details
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