Shareholders' Equity and Redeemable Non-controlling Interests

9 Months Ended

Sep. 30, 2020

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

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

12.    Shareholders’ Equity and Redeemable Non-controlling Interests

Shareholders’ Equity

Dividend Distributions—The following table summarizes the dividends paid in the periods presented:

Millions of dollars, except per share amounts	Dividend Per Ordinary Share		Aggregate Dividends Paid		Date of Record
March 2020	$	1.05	$	351	March 2, 2020
June 2020	1.05		350		June 8, 2020
September 2020	1.05		352		August 31, 2020
	$	3.15	$	1,053

Share Repurchase Authorization—In May 2020, our shareholders approved a proposal to authorize us to repurchase up to 34.0 million ordinary shares, through November 29, 2021 (“May 2020 Share Repurchase Authorization”), which superseded any prior repurchase authorizations.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.

Upon completion of the tender offer in July 2019, we repurchased 35.1 million ordinary shares for a total of $3,099 million, including $6 million of fees and expenses related to the tender offer, under our May 2019 Share Repurchase Authorization.

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 nine months ended September 30, 2020:
September 2019 Share Repurchase Authorization	50,685	$	78.93	$	4
May 2020 Share Repurchase Authorization	—	—		—
	50,685	$	78.93	$	4
For nine months ended September 30, 2019:
June 2018 Share Repurchase Authorization	5,648,900	$	86.38	$	488
May 2019 Share Repurchase Authorization	37,032,594	87.50		3,240
	42,681,494	$	87.35	$	3,728

Due to the timing of settlements, total cash paid for share repurchases for the nine months ended September 30, 2020 and 2019 was $4 million and $3,752 million, respectively.

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

	Nine Months Ended September 30,
	2020	2019
Ordinary shares outstanding:
Beginning balance	333,476,883	375,696,661
Share-based compensation	246,640	268,851
Employee stock purchase plan	245,521	123,869
Purchase of ordinary shares	(50,685)	(42,681,505)
Ending balance	333,918,359	333,407,876

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

	Nine Months Ended September 30,
	2020	2019
Ordinary shares held as treasury shares:
Beginning balance	6,568,745	24,513,619
Share-based compensation	(246,640)	(268,851)
Employee stock purchase plan	(245,521)	(123,869)
Purchase of ordinary shares	50,685	42,681,505
Ending balance	6,127,269	66,802,404

Accumulated Other Comprehensive Loss—The components of, and after-tax changes in, Accumulated other comprehensive loss as of and for the nine months ended September 30, 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 income (loss) before reclassifications	(447)		1		—		(53)		(499)
Tax (expense) benefit before reclassifications	93		—		—		6		99
Amounts reclassified from accumulated other comprehensive loss	84		—		42		—		126
Tax (expense) benefit	(19)		—		(11)		—		(30)
Net other comprehensive income (loss)	(289)		1		31		(47)		(304)
Balance – September 30, 2020	$	(489)	$	1	$	(680)	$	(920)	$	(2,088)

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, 2019	$	(68)	$	—	$	(442)	$	(853)	$	(1,363)
Other comprehensive income (loss) before reclassifications	(184)		1		—		(92)		(275)
Tax (expense) benefit before reclassifications	36		—		—		(14)		22
Amounts reclassified from accumulated other comprehensive loss	(110)		—		20		—		(90)
Tax (expense) benefit	28		—		(5)		—		23
Net other comprehensive income (loss)	(230)		1		15		(106)		(320)
Balance – September 30, 2019	$	(298)	$	1	$	(427)	$	(959)	$	(1,683)

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

	Three Months Ended September 30,				Nine Months Ended September 30,				Affected Line Item on the Consolidated Statements of Income
Millions of dollars	2020		2019		2020		2019
Reclassification adjustments for:
Financial derivatives:
Foreign currency	$	89	$	(86)	$	81	$	(99)	Other income, net
Commodities	—		(10)		—		(18)		Sales and other operating revenue
Commodities	—		8		—		12		Cost of sales
Interest rates	1		(1)		3		(5)		Interest expense
Income tax expense (benefit)	22		(25)		19		(28)		Provision for income taxes
Financial derivatives, net of tax	68		(64)		65		(82)
Amortization of defined pension items:
Prior service cost	1		—		3		1		Other income, net
Actuarial loss	13		6		39		19		Other income, net
Income tax expense (benefit)	4		1		11		5		Provision for income taxes
Defined pension items, net of tax	10		5		31		15
Total reclassifications, before tax	104		(83)		126		(90)
Income tax expense (benefit)	26		(24)		30		(23)		Provision for income taxes
Total reclassifications, after tax	$	78	$	(59)	$	96	$	(67)	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 September 30, 2020 and December 31, 2019, we had 115,374 shares of redeemable non-controlling interest stock outstanding.

In February, May and August 2020, we paid cash dividends of $15.00 per share to our redeemable non-controlling interest shareholders of record as of January 15, 2020, April 15, 2020, and July 15, 2020, respectively. These dividends totaled $5 million for each of the nine months ended September 30, 2020 and 2019.