Shareholders' Equity and Redeemable Non-controlling Interests

3 Months Ended

Mar. 31, 2020

Shareholders Equity and Redeemable Non-controlling Interests Abstract [Abstract]

Shareholders' Equity and Redeemable Non-controlling Interests Disclosure [Text Block]

10. Shareholders’ Equity and Redeemable Non-controlling Interests

Shareholders’ Equity

Dividend Distributions—In March 2020, we paid a cash dividend of $1.05 per share for an aggregate of $351 million to shareholders of record on March 2, 2020.

Share Repurchase Authorization—In September 2019, our shareholders approved a proposal to authorize us to repurchase up to 33.3 million ordinary shares, through March 12, 2021 (“September 2019 Share Repurchase Authorization”), which superseded any prior repurchase authorizations. The timing and amount of these repurchases, which are determined based on our evaluation of market conditions and other factors, may be executed from time to time through open market or privately negotiated transactions. The repurchased shares, which are recorded at cost, are classified as Treasury stock and may be retired or used for general corporate purposes, including for various employee benefit and compensation plans.

The following table summarizes our share repurchase activity for the periods presented:

Millions of dollars, except shares and per share amounts	Shares Repurchased	Average Purchase Price		Total Purchase Price, Including Commissions and Fees
For three months ended March 31, 2020:
September 2019 Share Repurchase Authorization	50,685	$	78.93	$	4
For three months ended March 31, 2019:
June 2018 Share Repurchase Authorization	5,648,900	$	86.38	$	488

Due to the timing of settlements, total cash paid for share repurchases for the three months ended March 31, 2020 and 2019 was $4 million and $512 million, respectively.

Ordinary Shares—The changes in the outstanding amounts of ordinary shares are as follows:

	Three Months Ended March 31,
	2020	2019
Ordinary shares outstanding:
Beginning balance	333,476,883	375,696,661
Share-based compensation	196,037	235,550
Employee stock purchase plan	81,215	42,792
Purchase of ordinary shares	(50,685)	(5,648,900)
Ending balance	333,703,450	370,326,103

Treasury Shares—The changes in the amounts of treasury shares held by the Company are as follows:

	Three Months Ended March 31,
	2020	2019
Ordinary shares held as treasury shares:
Beginning balance	6,568,745	24,513,619
Share-based compensation	(196,037)	(235,550)
Employee stock purchase plan	(81,215)	(42,792)
Purchase of ordinary shares	50,685	5,648,900
Ending balance	6,342,178	29,884,177

Accumulated Other Comprehensive Income (Loss)—The components of, and after-tax changes in, Accumulated other comprehensive loss as of and for the three months ended March 31, 2020 and 2019 are presented in the following tables:

Millions of dollars	Financial Derivatives		Unrealized Gains on Available -for-Sale Debt Securities		Defined Benefit Pension and Other Postretirement Benefit Plans		Foreign Currency Translation Adjustments		Total
Balance – January 1, 2020	$	(200)	$	—	$	(711)	$	(873)	$	(1,784)
Other comprehensive loss before reclassifications	(388)		(3)		—		(195)		(586)
Tax (expense) benefit before reclassifications	88		1		—		(4)		85
Amounts reclassified from accumulated other comprehensive loss	(53)		—		14		—		(39)
Tax (expense) benefit	15		—		(4)		—		11
Net other comprehensive income (loss)	(338)		(2)		10		(199)		(529)
Balance – March 31, 2020	$	(538)	$	(2)	$	(701)	$	(1,072)	$	(2,313)

Millions of dollars	Financial Derivatives		Defined Benefit Pension and Other Postretirement Benefit Plans		Foreign Currency Translation Adjustments		Total
Balance – January 1, 2019	$	(68)	$	(442)	$	(853)	$	(1,363)
Other comprehensive loss before reclassifications	(19)		—		(7)		(26)
Tax (expense) benefit before reclassifications	4		—		(3)		1
Amounts reclassified from accumulated other comprehensive loss	(45)		7		—		(38)
Tax (expense) benefit	10		(2)		—		8
Net other comprehensive income (loss)	(50)		5		(10)		(55)
Balance – March 31, 2019	$	(118)	$	(437)	$	(863)	$	(1,418)

The amounts reclassified out of each component of Accumulated other comprehensive loss are as follows: 

	Three Months Ended March 31,				Affected Line Item on the Consolidated Statements of Income
Millions of dollars	2020		2019
Reclassification adjustments for:
Financial derivatives:
Foreign currency	$	(53)	$	(39)	Other income, net
Commodities	—		(6)		Sales and other operating revenue
Commodities	—		4		Cost of sales
Interest rates	—		(4)		Interest expense
Income tax benefit	(15)		(10)		Provision for income taxes
Financial derivatives, net of tax	(38)		(35)
Amortization of defined pension items:
Prior service cost	1		—		Other income, net
Actuarial loss	13		7		Other income, net
Income tax expense	4		2		Provision for income taxes
Defined pension items, net of tax	10		5
Total reclassifications, before tax	(39)		(38)
Income tax benefit	(11)		(8)		Provision for income taxes
Total reclassifications, after tax	$	(28)	$	(30)	Amount included in net income

Non-controlling Interest—In February 2019, we increased our interest in our subsidiary La Porte Methanol Company, L.P., from 85% to 100%, for cash consideration of $63 million.

Redeemable Non-controlling Interests

Our redeemable non-controlling interests relate to shares of cumulative perpetual special stock (“redeemable non-controlling

interest stock”) issued by our consolidated subsidiary, formerly known as A. Schulman. As of March 31, 2020 and December 31, 2019, we had 115,374 shares of redeemable non-controlling interest stock outstanding.

In February 2020, we paid a cash dividend of $15.00 per share to our redeemable non-controlling interest shareholders of record as of January 15, 2020. These dividends totaled $2 million for both the three months ended March 31, 2020 and 2019, respectively.