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Stockholders' Equity
 12 Months Ended
Dec. 31, 2021
Stockholders' Equity/(Deficit)  
Stockholders' Equity

14. Stockholders’ Equity

Accumulated Other Comprehensive Loss

AOCL includes all changes in equity during a period that have not yet been recognized in income, except those resulting from transactions with shareholders. The components include unrealized gains and losses on investment securities, unrealized gains and losses from cash flow hedging activities, foreign currency translation adjustments, and defined benefit pension plan adjustments.

Unrealized gains and losses on investment securities that are available for sale, primarily state and municipal debt securities, are included in AOCL until the investment is either sold or experiences a credit loss. See Note 8 for further discussion.

The effective portion of the change in the fair value of derivatives that qualifies as a cash flow hedge is recorded in AOCL. Generally, amounts are recognized in income when the related forecasted transaction affects earnings. See Note 15 for further discussion.

While the United States dollar is the functional currency for substantially all of the Company’s businesses, the assets and liabilities of foreign subsidiaries whose functional currency is not the United States dollar are translated using the appropriate exchange rate as of the end of the year. Foreign currency translation adjustments represent unrealized gains and losses on assets and liabilities arising from the difference in these foreign currencies compared to the United States dollar. These gains and losses are accumulated in other comprehensive income/(loss). When a foreign subsidiary is substantially liquidated or sold, the cumulative translation gain or loss is removed from AOCL and recognized as a component of the gain or loss on the liquidation or sale.

On July 22, 2021, the Company’s Board of Directors approved a plan to terminate and settle the Company’s frozen defined benefit pension plan. As discussed in Note 12, in the fourth quarter of 2021, the Company settled its defined benefit pension plan and incurred approximately $109.8 million of charges associated with this settlement. The pre-tax balance in AOCL was reclassified as a component of Total other income/(expense), net, with the related income tax effects recorded in Provision for income taxes in the Consolidated Statements of Income.

The following table details reclassifications out of AOCL and into Net income. All amounts reclassified from AOCL affect the line items as indicated below, and the amounts in parentheses indicate decreases to Net income in the Consolidated Statements of Income.

 

 

 

Amounts Reclassified from AOCL to Net Income

 

 

 

Income Statement

 

Year Ended December 31,

 

Income for the period (in millions)

 

Location

 

2021

 

 

2020

 

 

2019

 

Accumulated other comprehensive loss components:

 

 

 

 

 

 

 

 

 

 

 

Gains/(losses) on investment securities:

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale securities

 

Revenues

 

$

3.7

 

 

$

0.6

 

 

$

0.6

 

Income tax expense

 

Provision for income taxes

 

 

(0.8

)

 

 

(0.1

)

 

 

(0.1

)

Total reclassification adjustments related to investment securities, net of tax

 

 

 

 

2.9

 

 

 

0.5

 

 

 

0.5

 

Gains/(losses) on cash flow hedges:

 

 

 

 

 

 

 

 

 

 

 

Foreign currency contracts

 

Revenues

 

 

(7.6

)

 

 

1.2

 

 

 

14.2

 

Interest rate contracts

 

Interest expense

 

 

(0.6

)

 

 

(0.6

)

 

 

—

 

Interest rate contracts

 

Other income/(expense), net

 

 

0.7

 

 

 

—

 

 

 

—

 

Income tax benefit/(expense)

 

Provision for income taxes

 

 

—

 

 

 

0.1

 

 

 

(0.1

)

Total reclassification adjustments related to cash flow hedges, net of tax

 

 

 

 

(7.5

)

 

 

0.7

 

 

 

14.1

 

Effects of 2021 settlement and amortization of components of defined benefit plans:

 

 

 

 

 

 

 

 

 

 

 

Settlement charges

 

Pension settlement charges

 

 

(109.8

)

 

 

—

 

 

 

—

 

Actuarial loss

 

Other income/(expense), net

 

 

(9.9

)

 

 

(12.1

)

 

 

(10.8

)

Income tax benefit

 

Provision for income taxes

 

 

25.7

 

 

 

2.7

 

 

 

2.4

 

Total reclassification adjustments related to defined benefit plans, net of tax

 

 

 

 

(94.0

)

 

 

(9.4

)

 

 

(8.4

)

Total reclassifications, net of tax

 

 

 

$

(98.6

)

 

$

(8.2

)

 

$

6.2

 

 

The following tables summarize the components of AOCL, net of tax in the accompanying Consolidated Balance Sheets (in millions):

 

 

 

Investment

 

 

Hedging

 

 

Foreign
Currency

 

 

Defined
Benefit

 

 

 

 

 

 

Securities

 

 

Activities

 

 

Translation

 

 

Pension Plan

 

 

Total

 

As of December 31, 2020

 

$

58.3

 

 

$

(30.5

)

 

$

(101.2

)

 

$

(86.1

)

 

$

(159.5

)

Unrealized gains/(losses)

 

 

(31.0

)

 

 

42.9

 

 

 

—

 

 

 

(8.7

)

 

 

3.2

 

Tax benefit/(expense)

 

 

6.0

 

 

 

(1.2

)

 

 

—

 

 

 

0.8

 

 

 

5.6

 

Amounts reclassified from AOCL into earnings, net of tax

 

 

(2.9

)

 

 

7.5

 

 

 

—

 

 

 

94.0

 

 

 

98.6

 

As of December 31, 2021

 

$

30.4

 

 

$

18.7

 

 

$

(101.2

)

 

$

—

 

 

$

(52.1

)

 

 

 

Investment

 

 

Hedging

 

 

Foreign
Currency

 

 

Defined
Benefit

 

 

 

 

 

 

Securities

 

 

Activities

 

 

Translation

 

 

Pension Plan

 

 

Total

 

As of December 31, 2019

 

$

24.7

 

 

$

(3.6

)

 

$

(101.2

)

 

$

(128.9

)

 

$

(209.0

)

Unrealized gains/(losses)

 

 

41.5

 

 

 

(26.4

)

 

 

—

 

 

 

43.5

 

 

 

58.6

 

Tax benefit/(expense)

 

 

(7.4

)

 

 

0.2

 

 

 

—

 

 

 

(10.1

)

 

 

(17.3

)

Amounts reclassified from AOCL into earnings, net of tax

 

 

(0.5

)

 

 

(0.7

)

 

 

—

 

 

 

9.4

 

 

 

8.2

 

As of December 31, 2020

 

$

58.3

 

 

$

(30.5

)

 

$

(101.2

)

 

$

(86.1

)

 

$

(159.5

)

 

 

 

Investment

 

 

Hedging

 

 

Foreign
Currency

 

 

Defined
Benefit

 

 

 

 

 

 

Securities

 

 

Activities

 

 

Translation

 

 

Pension Plan

 

 

Total

 

As of December 31, 2018

 

$

(1.1

)

 

$

7.4

 

 

$

(101.2

)

 

$

(136.1

)

 

$

(231.0

)

Unrealized gains/(losses)

 

 

33.6

 

 

 

2.0

 

 

 

—

 

 

 

(2.0

)

 

 

33.6

 

Tax benefit/(expense)

 

 

(7.3

)

 

 

1.1

 

 

 

—

 

 

 

0.8

 

 

 

(5.4

)

Amounts reclassified from AOCL into earnings, net of tax

 

 

(0.5

)

 

 

(14.1

)

 

 

—

 

 

 

8.4

 

 

 

(6.2

)

As of December 31, 2019

 

$

24.7

 

 

$

(3.6

)

 

$

(101.2

)

 

$

(128.9

)

 

$

(209.0

)

 

Cash Dividends Paid

Cash dividends paid for the years ended December 31, 2021, 2020, and 2019 were $380.5 million, $369.9 million, and $340.8 million, respectively. Dividends per share declared quarterly by the Company’s Board of Directors during the years ended 2021, 2020, and 2019 were as follows:

 

Year

 

Q1

 

 

Q2

 

 

Q3

 

 

Q4

 

 2021

 

$

0.235

 

 

$

0.235

 

 

$

0.235

 

 

$

0.235

 

 2020

 

$

0.225

 

 

$

0.225

 

 

$

0.225

 

 

$

0.225

 

 2019

 

$

0.20

 

 

$

0.20

 

 

$

0.20

 

 

$

0.20

 

 

On February 10, 2022, the Company’s Board of Directors declared a quarterly cash dividend of $0.235 per common share payable on March 31, 2022.

Share Repurchases

During the years ended December 31, 2021, 2020, and 2019, 19.5 million, 8.5 million, and 26.9 million shares, respectively, were repurchased for $400.0 million, $217.4 million, and $540.0 million, respectively, excluding commissions, at an average cost of $20.56, $25.45, and $20.07, respectively, under the share repurchase authorizations approved by the Company's Board of Directors, including one which expired on December 31, 2021. On February 10, 2022, the Company's Board of Directors authorized $1.0 billion of common stock repurchases through December 31, 2024. The amounts included in the Common stock repurchased line in the Company’s Consolidated Statements of Cash Flows represent both shares authorized by the Board of Directors for repurchase under publicly announced authorizations and shares withheld from employees to cover tax withholding obligations on restricted stock units that have vested.