XML 60 R17.htm IDEA: XBRL DOCUMENT v3.24.3
Stockholders' Equity
 9 Months Ended
Sep. 30, 2024
Equity [Abstract]  
Stockholders' Equity
11. Stockholders' Equity
Stock repurchase program
Under our stock repurchase program, we are authorized to repurchase shares from time to time in accordance with applicable laws both on the open market, including under trading plans established pursuant to Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, and in privately negotiated transactions. The timing and amount of repurchases depends on several factors, including market and business conditions, the trading price of our common stock and the nature of other investment opportunities. The repurchase program does not have an expiration date and may be limited, suspended or discontinued at any time without prior notice. Under the 2024 Credit Agreement, we have restrictions on our ability to repurchase shares of our common stock, which are summarized on page 47 in this report.
We account for purchases of treasury stock under the cost method. On January 17, 2024, our Board of Directors reauthorized, expanded and replenished our stock repurchase program by expanding the total capacity under the program from $250.0 million to $500.0 million available for repurchases.
In March 2024, we entered into an issuer forward repurchase transaction with a large financial institution to repurchase an aggregate $200 million of shares of our common stock (the "ASR Transaction"). Pursuant to the terms of the ASR Transaction, we provided the financial institution with a prepayment of $200 million and received an initial delivery of 2.1 million shares of our common stock, representing approximately 70% of the total shares then-expected to be repurchased under the ASR Transaction. The final number of shares of common stock delivered to us under the ASR Transaction will be based on the average of the daily volume-weighted average prices of the common stock during the term of the ASR Transaction, less a discount and subject to customary adjustments upon events affecting the common stock (e.g., dilutive or concentrative events, mergers and acquisitions, and market disruptions). At settlement, the financial institution may be required to deliver additional shares of our common stock to us or, under certain circumstances, we may be required to deliver a cash payment
or shares of our common stock to the financial institution, with the method of settlement at our election. See Note 13 to these unaudited, condensed consolidated financial statements for additional information about the final settlement of the ASR Transaction which occurred in October 2024.
The difference of $52.2 million between the prepayment of $200 million and the value of the shares repurchased on the ASR Transaction date represents an unsettled prepaid forward contract indexed to our common stock and met all of the applicable criteria for equity classification; therefore, it was not accounted for as a derivative instrument as of September 30, 2024. Because of our ability to settle in shares, the $52.2 million prepaid forward contract was classified as a reduction to additional paid-in capital within our unaudited, condensed consolidated statement of stockholders' equity. We funded the ASR Transaction prepayment with borrowings pursuant to a revolving credit loan under the 2020 Credit Agreement.
On July 16, 2024, our Board of Directors reauthorized, expanded and replenished our stock repurchase program by expanding the total capacity under the program from $500.0 million to $800.0 million available for repurchases.
During the three months ended September 30, 2024, we repurchased 807,774 shares for $62.8 million. During the nine months ended September 30, 2024, we repurchased an aggregate of 3,761,985 shares for $325.4 million, including the initial delivery of shares repurchased pursuant to the ASR Transaction. The remaining amount available to purchase stock under the approved stock repurchase program was $737.2 million as of September 30, 2024.
Changes in accumulated other comprehensive income (loss) by component
The changes in accumulated other comprehensive income (loss) by component, consisted of the following:
Three months ended
September 30,
Nine months ended
September 30,
(in thousands)
2024
2023
2024
2023
Accumulated other comprehensive income (loss), beginning of period$175 $8,842 $(1,688)$8,938 
By component:
Gains and losses on cash flow hedges:
Accumulated other comprehensive income balance, beginning of period$10,867 $18,524 $8,158 $23,833 
Other comprehensive (loss) income before reclassifications, net of tax effects of $3,315, $(2,873), $(625) and $(3,545)
(9,294)8,124 1,558 10,066 
Amounts reclassified from accumulated other comprehensive (loss) income(5,740)(5,456)(16,832)(15,272)
Tax expense included in provision for income taxes1,509 1,425 4,458 3,990 
Total amounts reclassified from accumulated other comprehensive (loss) income(4,231)(4,031)(12,374)(11,282)
Net current-period other comprehensive (loss) income(13,525)4,093 (10,816)(1,216)
Accumulated other comprehensive (loss) income balance, end of period$(2,658)$22,617 $(2,658)$22,617 
Foreign currency translation adjustment:
Accumulated other comprehensive loss balance, beginning of period$(10,692)$(9,682)$(9,846)$(14,895)
Translation adjustment6,463 (4,794)5,617 419 
Accumulated other comprehensive loss balance, end of period(4,229)(14,476)(4,229)(14,476)
Accumulated other comprehensive (loss) income, end of period$(6,887)$8,141 $(6,887)$8,141