Stockholders' Equity

3 Months Ended

May 31, 2019

Equity [Abstract]

Stockholders' Equity

Stockholders’ Equity

The following table summarizes the changes in the Company’s stockholders’ equity during the three months ended May 31, 2019 (in thousands): 

	Common Stock			Additional Paid-In Capital			Retained Earnings		Treasury Stock			Accumulated Other Comprehensive Loss			Total Stockholders’ Equity
	Shares	Amount
Balance at February 28, 2019	244,403	$	24	$	2,791,895		$	2,054,069	$	(3,189,434	)	$	(42,622	)	$	1,613,932
Net income	—	—		—			141,120		—			—			141,120
Other comprehensive loss, net of tax	—	—		—			—		—			(5,036		)	(5,036		)
Vest and exercise of share-based awards	944	1		368			—		—			—			369
Common stock repurchase	—	—		—			—		—			—			—
Share-based compensation expense	—	—		50,168			—		—			—			50,168
Minimum tax withholdings paid by the Company on behalf of employees related to net settlement of employee share-based awards	—	—		(81,274		)	—		—			—			(81,274		)
Re-issuance of treasury stock under employee stock purchase plan		—		23,323			—		16,614			—			39,937
Convertible note conversions	943	—		(1,296		)	—		—			—			(1,296		)
Exercises of convertible note hedges	—	—		69,380			—		(69,364		)	—			16
Other adjustments				541			—		(541		)	—			—
Balance at May 31, 2019	246,290	$	25	$	2,853,105		$	2,195,189	$	(3,242,725	)	$	(47,658	)	$	1,757,936

The following table summarizes the changes in the Company’s stockholders’ equity during the three months ended May 31, 2018 (in thousands):

	Common Stock			Additional Paid-In Capital			Retained Earnings		Treasury Stock			Accumulated Other Comprehensive Loss			Total Stockholders’ Equity
	Shares	Amount
Balance at February 28, 2018	238,689	$	24	$	2,416,080		$	1,619,688	$	(2,525,072	)	$	(32,596	)	$	1,478,124
Net income	—	—		—			113,190		—			—			113,190
Other comprehensive loss, net of tax	—	—		—			—		—			(10,905		)	(10,905		)
Vest and exercise of share-based awards	905	—		875			—		—			—			875
Common stock repurchase	—	—		(17,175		)	—		(132,844		)	—			(150,019		)
Share-based compensation expense	—	—		46,005			—		—			—			46,005
Minimum tax withholdings paid by the Company on behalf of employees related to net settlement of employee share-based awards	—	—		(77,094		)	—		—			—			(77,094		)
Re-issuance of treasury stock under employee stock purchase plan		—		18,471			—		13,740			—			32,211
Convertible note conversions	185	—		(835		)	—		—			—			(835		)
Exercises of convertible note hedges		—		13,598			—		(13,598		)	—			—
Cumulative-effect adjustment from adoption of ASU 2016-01		—		—			392		—			—			392
Balance at May 31, 2018	239,779	$	24	$	2,399,925		$	1,733,270	$	(2,657,774	)	$	(43,501	)	$	1,431,944

Share repurchase programs

On June 21, 2018, the Company announced that its board of directors authorized the repurchase of up to $1.0 billion of Red Hat’s common stock from time to time on the open market or in privately negotiated transactions. The new program commenced on July 1, 2018, and will expire on the earlier of (i) June 30, 2020 or (ii) a determination by the board of directors, Chief Executive Officer or Chief Financial Officer to discontinue the program. The new program replaced the previous $1.0 billion repurchase program, which expired on June 30, 2018.

During the three months ended May 31, 2019, the Company did not repurchase any shares of its common stock under this repurchase plan program.

From its commencement on July 1, 2018 through May 31, 2019, the Company repurchased 1,838,241 shares of its common stock at an aggregate cost of $262.8 million under this repurchase program.

As of May 31, 2019, the amount available under this program for the repurchase of the Company’s common stock was $737.2 million, which remains unchanged from February 28, 2019. Pursuant to the Merger Agreement, the Company does not anticipate additional repurchases of the Company’s common stock prior to the consummation of the Merger with IBM.

Accumulated other comprehensive loss

Accumulated other comprehensive loss was comprised of the following (in thousands):

	May 31, 2019			February 28, 2019
Accumulated loss from foreign currency translation adjustment, net of tax	$	(47,756	)	$	(41,500	)
Accumulated unrealized gain (loss), net of tax, on available-for-sale securities	98			(1,122		)
Accumulated other comprehensive loss	$	(47,658	)	$	(42,622	)