Stockholders' Equity

6 Months Ended

Jun. 30, 2020

Stockholders' equity

Stockholders' Equity

10. STOCKHOLDERS’ EQUITY

As a result of the Company’s U.S. Domestication on January 1, 2019, a reclassification between Common Stock and Additional paid-in capital was necessary to reflect the Company’s new par value of $0.0001. The reclassification between Common Stock and Additional paid-in capital of $1.7 billion was recorded within the Unaudited Condensed Consolidated Statements of Change in Stockholders’ Equity in the first quarter of 2019.

Tax Benefit Preservation Plan

On May 12, 2019, the Company implemented a Tax Benefit Preservation Plan (“Tax Plan”), with the intent to preserve the value of certain deferred tax benefits (“Tax Benefits”). The Tax Plan is intended to act as a deterrent to any person or entity acquiring shares of the Company equal to or exceeding 4.9%. For each common stock outstanding as of May 28, 2019, a dividend of one preferred stock purchase right is granted. The Tax Plan gives current shareholders the right to purchase one one-hundredth of a share of Series A Junior Participating Preferred Stock (“Series A Preferred”) at a set price of $30.92 which, upon exercise, provides for one additional share of common stock at a 50% discount on the exercise date with no cash settlement options. The Tax Plan reduces the likelihood that changes in the Company’s investor base have the unintended effect of limiting the use of the Company’s Tax Benefits. There is no impact to the financial statements as a result of the Tax Plan. The Tax Plan will expire on October 5, 2020.

As of June 30, 2020 and December 31, 2019, the Company had 2,400,000 shares authorized and no shares outstanding of the Series A Preferred stock.

Changes in the components of Accumulated other comprehensive (loss) income are as follows:

	Foreign Currency Translation Adjustments		Unrecognized (Loss) Gain on Interest Rate Swaps		Loss on Pension and Other Postretirement Plans		Total Accumulated Other Comprehensive Income (Loss)
Balance as of December 31, 2019	$	126	$	(12)	$	(55)	$	59
Other comprehensive (loss) income		(49)		(15)		1		(63)
Balance as of March 31, 2020		77		(27)		(54)		(4)
Other comprehensive income		—		1		—		1
Tax expense		—		(1)		—		(1)
Reclassification of currency translation adjustment to gain on disposal of discontinued operations 1		(78)		(5)		19		(64)
Balance as of June 30, 2020	$	(1)	$	(32)	$	(35)	$	(68)

¹ Relates to the reclassification of foreign currency translation from Accumulated other comprehensive (loss) income to the Gain on disposal of discontinued operations due to the completion of the MDA Transaction. See Note 3 for details.