Stockholders' Equity

3 Months Ended

May 31, 2017

Equity [Abstract]

Stockholders' Equity

NOTE 3—Stockholders’ Equity

The following table summarizes the changes in the Company’s stockholders’ equity during the three months ended May 31, 2017 (in thousands):

	Common Stock		Additional Paid-In Capital			Retained Earnings		Treasury Stock			Accumulated Other Comprehensive Loss			Total Stockholders’ Equity
Balance at February 28, 2017	$	24	$	2,294,462		$	1,352,991	$	(2,311,805	)	$	(88,352	)	$	1,247,320
Net income		—		—			73,190		—			—			73,190
Other comprehensive income, net of tax		—		—			—		—			22,612			22,612
Exercise of common stock options		—		2,968			—		—			—			2,968
Common stock repurchase		—		—			—		(61,987	)		—			(61,987	)
Share-based compensation expense		—		43,718			—		—			—			43,718
Minimum tax withholdings paid by the Company on behalf of employees related to net settlement of employee share-based awards		—		(41,010	)		—		—			—			(41,010	)
Re-issuance of treasury stock under employee stock purchase plan		—		—			—		23,748			—			23,748
Other adjustments		—		(5,015	)		—		—			—			(5,015	)
Balance at May 31, 2017	$	24	$	2,295,123		$	1,426,181	$	(2,350,044	)	$	(65,740	)	$	1,305,544

The following table summarizes the changes in the Company’s stockholders’ equity during the three months ended May 31, 2016 (in thousands):

	Common Stock		Additional Paid-In Capital			Retained Earnings			Treasury Stock			Accumulated Other Comprehensive Loss			Total Stockholders’ Equity
Balance at February 29, 2016	$	23	$	2,162,264		$	1,099,738		$	(1,853,144	)	$	(74,449	)	$	1,334,432
Net income		—		—			61,184			—			—			61,184
Other comprehensive income, net of tax		—		—			—			—			6,702			6,702
Exercise of common stock options		1		1,379			—			—			—			1,380
Common stock repurchase		—		—			—			(66,478	)		—			(66,478	)
Share-based compensation expense		—		41,275			—			—			—			41,275
Minimum tax withholdings paid by the Company on behalf of employees related to net settlement of employee share-based awards		—		(31,079	)		—			—			—			(31,079	)
Cumulative-effect adjustment from adoption of ASU 2016-09		—		2,369			(450	)		—			—			1,919
Balance at May 31, 2016	$	24	$	2,176,208		$	1,160,472		$	(1,919,622	)	$	(67,747	)	$	1,349,335

Share Repurchase Programs

On June 22, 2016, 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 program commenced on July 1, 2016, and will expire on the earlier of (i) June 30, 2018 or (ii) a determination by the Board, Chief Executive Officer or Chief Financial Officer to discontinue the program. The program replaced the previous $500.0 million repurchase program authorized on March 25, 2015, which was discontinued by the Board effective June 30, 2016.

During the three months ended May 31, 2017, the Company repurchased 714,906 shares of its common stock for $62.0 million under the repurchase program.

From its commencement on July 1, 2016 through May 31, 2017, the Company has repurchased 5,615,555 shares of its common stock under the program. As of May 31, 2017, the amount available under the program for the repurchase of the Company’s common stock was $573.8 million.

Accumulated other comprehensive loss

The following is a summary of accumulated other comprehensive loss as of May 31, 2017 and February 28, 2017 (in thousands):

	As of May 31, 2017			As of February 28, 2017
Accumulated loss from foreign currency translation adjustment	$	(65,114	)	$	(87,784	)
Accumulated unrealized loss, net of tax, on available-for-sale securities		(626	)		(568	)
Accumulated other comprehensive loss	$	(65,740	)	$	(88,352	)