EQUITY

Common Stock Repurchase Program

On March 20, 2018, the Company announced a $250.0 million stock repurchase plan authorized by its board of directors. Repurchases under the program may be made in the open market, in privately negotiated transactions, through the net settlement of the Company’s restricted stock grants or otherwise, with the amount and timing of repurchases dependent on market conditions and subject to the company’s discretion. Kennedy Wilson had a $100 million stock repurchase program that expired on February 25, 2018.

During the six months ended June 30, 2018, Kennedy Wilson repurchased and retired 8,286,841 shares for 148.7 million under the stock repurchase program. During the six months ended June 30, 2017, Kennedy Wilson repurchased and retired 77,155 shares for $1.6 million under the previous stock repurchase program.

Dividend Distributions

During the following periods, Kennedy Wilson declared and paid the following cash distributions on its common stock:



	Six Months Ended June 30, 2018				Six Months Ended June 30, 2017
(Dollars in millions)	Declared		Paid		Declared		Paid
Common Stock⁽¹⁾	$	56.1	$	57.5	$	39.1	$	37.9

⁽¹⁾ The difference between declared and paid is the amount accrued on the consolidated balance sheets.

Share-based Compensation

During the three months ended June 30, 2018 and 2017, Kennedy Wilson recognized $8.8 million and $9.4 million of compensation expense related to the vesting of restricted stock grants. During the six months ended June 30, 2018 and 2017, Kennedy Wilson recognized $18.7 million and $20.1 million of compensation expense related to the vesting of restricted stock grants. The decrease for the three and six months ended June 30, 2018 is mainly due to shares which fully vested in 2017.

Generally, upon vesting, the restricted stock granted to employees is net share-settled such that the Company will withhold shares with value equivalent to the employees’ minimum statutory obligation for the applicable income and other employment taxes, and remit the cash to the appropriate taxing authorities. Only a certain amount of the restricted shares that vested during the six months ended June 30, 2018 were net share settled. The employees' minimum statutory obligation for the restricted shares which were not net share-settled were funded by the employees and remitted to the appropriate taxing authorities. However, all of the restricted shares that vested during 2017 were net-share settled. The total shares withheld during the six months ended June 30, 2018 and 2017 were 380,768 shares and 1,460,251 shares, respectively. During the six months ended June 30, 2018 and 2017, total payments for the employees’ tax obligations to the taxing authorities for the shares which were net-share settled were $6.8 million and $34.0 million, respectively. These activities are reflected as a financing activity within Kennedy Wilson's consolidated statements of cash flows.

Accumulated Other Comprehensive Income

The following table summarizes the changes in each component of accumulated other comprehensive loss, net of taxes:



(Dollars in millions)	Foreign Currency Translation			Currency Derivative Contracts			Marketable Securities			Total Accumulated Other Comprehensive Loss⁽¹⁾
Balance at December 31, 2017	$	(46.6	)	$	(22.2	)	$	0.1		$	(68.7	)
Unrealized (losses) gains, arising during the period	(39.6		)	28.1			—			(11.5		)
Amounts reclassified out of AOCI during the period, gross	22.5			(7.9		)	(0.2		)	14.4
Amounts reclassified out of AOCI during the period, taxes	(4.2		)	2.8			0.1			(1.3		)
Noncontrolling interest	(6.0		)	—			—			(6.0		)
Deferred taxes on unrealized gains (losses), arising during the period	0.7			(5.9		)	—			(5.2		)
Balance at June 30, 2018	$	(73.2	)	$	(5.1	)	$	—		$	(78.3	)

⁽¹⁾As a result of the KWE Transaction the Company was required to record inception to date accumulated other comprehensive losses of $358.4 million associated with noncontrolling interest holders of KWE. This amount has been excluded from the beginning and ending balances of the table to give a more appropriate depiction of the Company's accumulated other comprehensive loss activity. If this amount is included, the accumulated other comprehensive loss is $436.7 million and $427.1 million as of June 30, 2018 and December 31, 2017, respectively.

The local currencies for the Company's interests in foreign operations include the euro and the British pound sterling. The related amounts on Kennedy Wilson's balance sheets are translated into U.S. dollars at the exchange rates at the respective financial statement date, while amounts on its statements of operations are translated at the average exchange rates during the respective period. The increase in the unrealized losses on foreign currency translation is a result of the strengthening of the U.S. dollar against the euro and the British pound during the six months ended June 30, 2018.

The Company is required under U.S. GAAP to consolidate certain non-wholly owned subsidiaries or investments that it controls. As such, the Company's financial statements reflect currency translation adjustments and related hedging activities on a gross basis. It is helpful to look at the provided currency translation and currency derivative adjustment information net of noncontrolling interests to get a more accurate understanding of the actual currency exposure for the Company.

In order to manage currency fluctuations, Kennedy Wilson entered into currency derivative contracts to manage its exposure to currency fluctuations between its functional currency (U.S. dollar) and the functional currency (euro and the British pound) of certain of its wholly-owned and consolidated subsidiaries. See Note 6 for a more detailed discussion of Kennedy Wilson's currency derivative contracts.

Noncontrolling Interests

Noncontrolling interests consist of the ownership interests of noncontrolling shareholders in consolidated subsidiaries and are presented separately on Kennedy Wilson's balance sheet. As of June 30, 2018 and December 31, 2017, Kennedy Wilson had noncontrolling interest of $179.4 million and $211.9 million, respectively. The decrease in noncontrolling interest for the year is primarily due to the deconsolidation of three properties in the AXA Joint Venture. See Note 4 for additional details.