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Stockholders' Equity
 9 Months Ended
Sep. 30, 2022
Equity [Abstract]  
Stockholders' Equity

9. Stockholders’ Equity

Accumulated Other Comprehensive Loss

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 Condensed Consolidated Statements of Income.

 

 

 

Amounts Reclassified from AOCL to Net Income

 

 

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

Income Statement

 

September 30,

 

 

September 30,

 

Income for the period (in millions)

 

Location

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Accumulated other comprehensive loss components:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gains/(losses) on investment securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale securities

 

Revenues

 

$

(8.4

)

 

$

2.5

 

 

$

(8.5

)

 

$

2.3

 

Income tax benefit/(expense)

 

Provision for income taxes

 

 

1.6

 

 

 

(0.5

)

 

 

1.6

 

 

 

(0.5

)

Total reclassification adjustments related to investment securities, net of tax

 

 

 

 

(6.8

)

 

 

2.0

 

 

 

(6.9

)

 

 

1.8

 

Gains/(losses) on cash flow hedges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency contracts

 

Revenues

 

 

17.5

 

 

 

(0.6

)

 

 

32.4

 

 

 

(10.0

)

Interest rate contracts

 

Interest expense

 

 

—

 

 

 

(0.1

)

 

 

(0.1

)

 

 

(0.5

)

Interest rate contracts

 

Other income/(expense), net

 

 

—

 

 

 

—

 

 

 

—

 

 

 

0.7

 

Income tax benefit/(expense)

 

Provision for income taxes

 

 

(0.2

)

 

 

0.1

 

 

 

(0.2

)

 

 

0.1

 

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

 

 

 

 

17.3

 

 

 

(0.6

)

 

 

32.1

 

 

 

(9.7

)

Foreign currency translation adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation

 

Gain on divestiture of business

 

 

—

 

 

 

—

 

 

 

17.8

 

 

 

—

 

Total reclassification adjustments related to foreign currency translation adjustments, net of tax

 

 

 

 

—

 

 

 

—

 

 

 

17.8

 

 

 

—

 

Amortization of components of defined benefit plans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Actuarial loss

 

Other income/(expense), net

 

 

—

 

 

 

(3.0

)

 

 

—

 

 

 

(9.1

)

Income tax benefit

 

Provision for income taxes

 

 

—

 

 

 

0.7

 

 

 

—

 

 

 

2.0

 

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

 

 

 

 

—

 

 

 

(2.3

)

 

 

—

 

 

 

(7.1

)

Total reclassifications, net of tax

 

 

 

$

10.5

 

 

$

(0.9

)

 

$

43.0

 

 

$

(15.0

)

 

 

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

 

 

 

Investment

 

 

Hedging

 

 

Foreign Currency

 

 

 

 

 

 

Securities

 

 

Activities

 

 

Translation

 

 

Total

 

As of December 31, 2021

 

$

30.4

 

 

$

18.7

 

 

$

(101.2

)

 

$

(52.1

)

Unrealized gains/(losses)

 

 

(63.6

)

 

 

6.2

 

 

 

—

 

 

 

(57.4

)

Tax benefit

 

 

11.9

 

 

 

—

 

 

 

—

 

 

 

11.9

 

Amounts reclassified from AOCL into earnings, net of tax

 

 

0.1

 

 

 

(0.9

)

 

 

(17.8

)

 

 

(18.6

)

As of March 31, 2022

 

 

(21.2

)

 

 

24.0

 

 

 

(119.0

)

 

 

(116.2

)

Unrealized gains/(losses)

 

 

(28.7

)

 

 

37.3

 

 

 

—

 

 

 

8.6

 

Tax benefit/(expense)

 

 

5.0

 

 

 

(0.3

)

 

 

—

 

 

 

4.7

 

Amounts reclassified from AOCL into earnings, net of tax

 

 

—

 

 

 

(13.9

)

 

 

—

 

 

 

(13.9

)

As of June 30, 2022

 

 

(44.9

)

 

 

47.1

 

 

 

(119.0

)

 

 

(116.8

)

Unrealized gains/(losses)

 

 

(44.7

)

 

 

43.4

 

 

 

—

 

 

 

(1.3

)

Tax benefit/(expense)

 

 

7.9

 

 

 

(0.5

)

 

 

—

 

 

 

7.4

 

Amounts reclassified from AOCL into earnings, net of tax

 

 

6.8

 

 

 

(17.3

)

 

 

—

 

 

 

(10.5

)

As of September 30, 2022

 

$

(74.9

)

 

$

72.7

 

 

$

(119.0

)

 

$

(121.2

)

 

 

 

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)

 

 

(16.0

)

 

 

24.2

 

 

 

—

 

 

 

—

 

 

 

8.2

 

Tax benefit/(expense)

 

 

2.9

 

 

 

(0.9

)

 

 

—

 

 

 

—

 

 

 

2.0

 

Amounts reclassified from AOCL into earnings, net of tax

 

 

0.1

 

 

 

5.6

 

 

 

—

 

 

 

2.5

 

 

 

8.2

 

As of March 31, 2021

 

 

45.3

 

 

 

(1.6

)

 

 

(101.2

)

 

 

(83.6

)

 

 

(141.1

)

Unrealized gains/(losses)

 

 

2.3

 

 

 

(6.2

)

 

 

—

 

 

 

—

 

 

 

(3.9

)

Tax expense

 

 

(0.2

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(0.2

)

Amounts reclassified from AOCL into earnings, net of tax

 

 

0.1

 

 

 

3.5

 

 

 

—

 

 

 

2.3

 

 

 

5.9

 

As of June 30, 2021

 

 

47.5

 

 

 

(4.3

)

 

 

(101.2

)

 

 

(81.3

)

 

 

(139.3

)

Unrealized gains/(losses)

 

 

(7.3

)

 

 

17.7

 

 

 

—

 

 

 

—

 

 

 

10.4

 

Tax benefit/(expense)

 

 

1.4

 

 

 

(0.1

)

 

 

—

 

 

 

—

 

 

 

1.3

 

Amounts reclassified from AOCL into earnings, net of tax

 

 

(2.0

)

 

 

0.6

 

 

 

—

 

 

 

2.3

 

 

 

0.9

 

As of September 30, 2021

 

$

39.6

 

 

$

13.9

 

 

$

(101.2

)

 

$

(79.0

)

 

$

(126.7

)

 

 

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. In the fourth quarter of 2021, the Company settled its defined benefit pension plan. Refer to Part II, Item 8, Financial Statements and Supplementary Data, Note 12, Employee Benefit Plans, in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 for details on the termination and settlement of the Company's frozen defined benefit pension plan.

Cash Dividends Paid

The Company's Board of Directors declared quarterly cash dividends of $0.235 per common share in each of the first three quarters of 2022 and 2021, representing $273.2 million and $287.6 million in total dividends, respectively. $90.7 million was paid on September 30, 2022, $90.8 million was paid on June 30, 2022, $91.7 million was paid on March 31, 2022, $95.1 million was paid on September 30, 2021, $95.9 million was paid on June 30, 2021, and $96.6 million was paid on March 31, 2021.

Share Repurchases

During the nine months ended September 30, 2022 and 2021, 9.6 million and 9.6 million shares were repurchased for $176.8 million and $225.0 million, respectively, excluding commissions, at an average cost of $18.45 and $23.45, 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. As of September 30, 2022, $823.2 million remained available under this share repurchase authorization. The amounts included in the Common stock repurchased line in the Company’s Condensed 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.