EQUITY

Changes in common shares and treasury stock were as follows:



(In millions)	Common Shares Issued		Treasury Stock		Treasury Stock - at Cost
Balance as of January 1, 2014	206.8		4.8		$	351.9
Stock-based Compensation	1.0		0.1		7.9
Repurchase of Common Stock	—		0.6		52.9
Retirement of Treasury Stock	(0.6	)	(0.6	)	(50.1		)
Balance as of December 31, 2014	207.2		4.9		362.6

Stock-based Compensation	0.5		—		—
Repurchase of Common Stock	—		5.6		437.0
Retirement of Treasury Stock	(5.6	)	(5.6	)	(437.0		)
Accelerated Share Repurchase	(10.7	)	—		—
Balance as of December 31, 2015	191.4		4.9		362.6

Stock-based Compensation	0.4		—		—
Repurchase and Retirement of Common Stock	(1.4	)	—		—
Accelerated Share Repurchase	(2.1	)	—		—
Balance as of December 31, 2016	188.3		4.9		$	362.6

The Company may use either authorized and unissued shares or treasury shares to meet share requirements resulting from the exercise of stock options and vesting of performance share awards and restricted stock units. Treasury stock is recognized at the cost to reacquire the shares. Shares issued from treasury are recognized using the first-in first-out method.

Share Repurchase Authorizations and Accelerated Share Repurchase Agreement

In September 2013, the Company’s board of directors approved a share repurchase authorization of up to $500.0 million of the Company’s common stock (the “2013 Authorization”). During the year ended December 31, 2016, the Company repurchased $0.4 million of its common stock which completed all purchases remaining under the 2013 Authorization. During the year ended December 31, 2015, the Company repurchased $437.0 million of its common stock under the 2013 Authorization.

In October 2015, the Company’s board of directors approved a new share repurchase authorization of an additional $1,500.0 million of the Company’s common stock (the “2015 Authorization”). The 2015 Authorization does not have an expiration date. On October 22, 2015, the Company entered into an accelerated share repurchase agreement (the “ASR Agreement”) with Goldman, Sachs & Co. (“Goldman”) to repurchase $1,000.0 million (the “Repurchase Price”) of its common stock. Under the terms of the ASR Agreement, the Company paid the Repurchase Price in advance in exchange for 10,725,552 shares of its common stock received by the Company on October 27, 2015 (which shares are equivalent to approximately 85% of the number of shares of its common stock that could have been purchased with an amount of cash equal to the Repurchase Price based on the closing price of its common stock on October 22, 2015). Upon final settlement of the ASR Agreement in June 2016, an additional 2,086,050 shares were delivered to the Company for no additional consideration based generally on the daily volume-weighted average prices of its common stock over the term of the ASR Agreement. The total shares received and retired under the terms of the ASR Agreement was 12,811,602 shares with an average price paid per share of approximately $78.05. The par value of the retired shares were reflected as a reduction to common stock and the payment made to Goldman was recorded as a reduction to retained earnings within shareholders’ equity. In addition to the shares delivered upon final settlement of the ASR Agreement, during the year ended December 31, 2016, the Company repurchased $100.0 million of its common stock pursuant to the 2015 Authorization. As of December 31, 2016 and 2015, the Company had $400.0 million and $500.0 million remaining available under the 2015 Authorization, respectively.

Share repurchases made pursuant to the ASR Agreement were primarily funded by the issuance of the 2020 Notes and 2025 Notes. See “—Note 15. Debt” for additional information regarding the Company’s debt.

Redeemable Noncontrolling Interest

On March 15, 2012, the Company acquired 80% of the outstanding capital stock of Nutricion para el Conosur S.A. (“Nutricion”) which manufactures, distributes and sells infant formula and children’s nutrition products in Argentina under the SanCor Bebé and Bebé Plus brands (the “Argentine Acquisition”). Under the terms of an agreement related to the Argentine Acquisition, the noncontrolling interest owner had the right to require MJN to purchase (the “Put Right”) its remaining 20% interest or to sell (the “Call Right”) up to an additional 20% of the outstanding capital stock of Nutricion. The Put Right was to be exercisable once from September 15, 2015 to September 15, 2018 and the decision to exercise was not within the control of MJN. The price paid upon exercise was to be determined based on established multiples of sales and earnings of the acquired business. As a result of the Put Right, the noncontrolling interest was presented as redeemable noncontrolling interest outside of equity on the balance sheet. Accretion to the redemption value of the Put Right was being recognized through equity using an interest method over the period from March 2012 to June 2015.

On June 30, 2015, the noncontrolling partner exercised its single trigger put option and MJN acquired an additional 10% of the outstanding capital stock of the local entity, thereby increasing MJN’s ownership interest to 90%. The agreed upon purchase price paid to the noncontrolling interest owner was $24.4 million as of June 30, 2015 (based upon the agreed local currency price). The purchase price was settled during the second and third quarters of 2015. Following the impact of foreign exchange, the cash outflow associated with the acquisition was $24.2 million.

As a result of the transaction, the noncontrolling interest owner no longer has a Put Right and the Call Right was amended. The amended Call Right gives the noncontrolling interest owner the right to require MJN to sell up to 10% of the outstanding capital stock of Nutricion, exercisable from June 30, 2015 to June 30, 2022. Due to the termination of the Put Right, the remaining noncontrolling interest was recharacterized from redeemable noncontrolling interest outside of equity to noncontrolling interests within equity on the balance sheet beginning on June 30, 2015.

Accumulated Other Comprehensive Loss

Changes in accumulated other comprehensive loss by component were as follows:



(Dollars in millions)	Foreign Currency Translation Adjustments			Deferred Gains/(Losses) on Derivatives Qualifying as Hedges			Pension and Other Post-employment Benefits			Total			Noncontrolling Interest					Redeemable Noncontrolling Interest
Balance as of January 1, 2016	$	(329.8	)	$	(17.2	)	$	(0.8	)	$	(347.8	)	$	(12.7	)			$	—
Deferred Gains/(Losses)	(68.1		)	7.7			—			(60.4		)	(1.5		)	(1	)	—
Reclassification Adjustment for (Gains)/ Losses Included in Net Earnings	—			(4.6		)	—			(4.6		)	—					—
Tax Benefit/(Expense)	2.9			(1.5		)	—			1.4			1.0					—
Balance as of December 31, 2016	$	(395.0	)	$	(15.6	)	$	(0.8	)	$	(411.4	)	$	(13.2	)			$	—

Balance as of January 1, 2015	$	(180.4	)	$	(17.8	)	$	(0.7	)	$	(198.9	)	$	1.9				$	(21.6	)
Deferred Gains/(Losses)	(138.9		)	19.7			(0.2		)	(119.4		)	(3.2		)			(1.3		)	(1	)
Reclassification Adjustment for (Gains)/ Losses Included in Net Earnings	—			(20.6		)	0.1			(20.5		)	—					—
Tax Benefit/(Expense)	1.0			1.5			—			2.5			—					—
Acquisition of Noncontrolling Interest	(11.5		)	—			—			(11.5		)	(11.4		)			22.9
Balance as of December 31, 2015	$	(329.8	)	$	(17.2	)	$	(0.8	)	$	(347.8	)	$	(12.7	)			$	—

(1) Represents foreign currency translation adjustments.

Reclassification adjustments out of accumulated other comprehensive loss were as follows:



	Years Ended December 31,
	Affected Statement of Earnings Lines
(Dollars in millions)	Cost of Products Sold						Selling, General and Administrative				Tax Benefit/(Expense)						Net
	2016			2015			2016		2015		2016			2015			2016			2015
Deferred Gains/(Losses) on Derivatives Qualifying as Hedges:
Forward Exchange Contracts	$	6.9		$	23.8		$	—	$	—	$	(0.3	)	$	(5.4	)	$	6.6		$	18.4
Commodity Contracts	(0.9		)	(1.8		)	—		—		0.4			0.7			(0.5		)	(1.1		)
Interest Rate Forward Swap	(1.4		)	(1.4		)	—		—		0.5			0.5			(0.9		)	(0.9		)

Pension and Other Post-employment Benefit Plans:
Prior Service Benefits	—			—			—		0.1		—			—			—			0.1
Total Reclassifications	$	4.6		$	20.6		$	—	$	0.1	$	0.6		$	(4.2	)	$	5.2		$	16.5