Stockholders' Equity

12 Months Ended

Dec. 31, 2020

Stockholders’ Equity

Cash Dividend Payments

During 2020, 2019 and 2018, the Company did not declare or pay any cash dividends. The Company’s ability to pay dividends to holders of its common stock is limited by the Company’s senior credit facility, the indentures governing its senior notes and its vehicle financing programs.

Share Repurchases

The Company’s Board of Directors has authorized the repurchase of up to approximately $1.8 billion of its common stock under a plan originally approved in 2013 and subsequently expanded, most recently in August 2019. During 2020, 2019 and 2018, the Company repurchased approximately 13 million shares of common stock at a cost of approximately $375 million under the program. As of December 31, 2020, approximately $76 million of authorization remained available to repurchase common stock under this plan.

In June 2019, as part of its share repurchase program, the Company entered into a structured repurchase agreement involving the use of capped call options for the purchase of its common stock. The Company paid a fixed sum upon the execution of the agreement in exchange for the right to receive either a pre-determined amount of cash or stock. The Company paid net premiums of $16 million to enter into this agreement, which was recorded as a reduction of additional paid in capital. In September 2019, the capped call options expired and all outstanding options settled for 0.6 million shares.

Share Issuances

On February 10, 2020, the Company announced it had appointed a new Chairman of the Board of Directors and in connection with this appointment, the new Chairman purchased an aggregate $15 million of unregistered shares of the Company’s common stock at a price per share equal to the closing price of the Company’s common stock on February 7, 2020. The Company issued the common stock from treasury shares.

Accumulated Other Comprehensive Income (Loss)

The components of accumulated other comprehensive income (loss) are as follows:


	Currency Translation Adjustments (a)		Net Unrealized Gains (Losses) on Cash Flow Hedges (b)		Net Unrealized Gains (Losses) on Available-For-Sale Securities		Minimum Pension Liability Adjustment (c)		Accumulated Other Comprehensive Income (Loss)
Balance, December 31, 2017	71		5		2		(102)		(24)
Cumulative effect of accounting change	7		1		(2)		(12)		(6)
Balance, January 1, 2018	78		6		—		(114)		(30)
Other comprehensive income (loss) before reclassifications	(81)		(2)		—		(23)		(106)
Amounts reclassified from accumulated other comprehensive income (loss)	—		(2)		—		5		3
Net current-period other comprehensive income (loss)	(81)		(4)		—		(18)		(103)
Balance, December 31, 2018	(3)		2		—		(132)		(133)
Cumulative effect of accounting change	—		1		—		—		1
Balance, January 1, 2019	(3)		3		—		(132)		(132)
Other comprehensive income (loss) before reclassifications	12		(20)		—		(20)		(28)
Amounts reclassified from accumulated other comprehensive income (loss)	—		(3)		—		6		3
Net current-period other comprehensive income (loss)	12		(23)		—		(14)		(25)
Balance, December 31, 2019	9		(20)		—		(146)		(157)
Other comprehensive income (loss) before reclassifications	33		(39)		—		(36)		(42)
Amounts reclassified from accumulated other comprehensive income (loss)	(2)		8		—		6		12
Net current-period other comprehensive income (loss)	31		(31)		—		(30)		(30)
Balance, December 31, 2020	$	40	$	(51)	$	—	$	(176)	$	(187)

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All components of accumulated other comprehensive income (loss) are net of tax, except currency translation adjustments, which exclude income taxes related to indefinite investments in foreign subsidiaries (see Note 9-Income Taxes for impacts of the Tax Act) and include a $14 million gain, net of tax, related to the Company’s hedge of its investment in euro-denominated foreign operations (See Note 19-Financial Instruments).

(a)For the year ended December 31, 2020, the amount reclassified from accumulated other comprehensive income (loss) into restructuring and other related charges.

(b)For the years ended December 31, 2020, 2019 and 2018, the amounts reclassified from accumulated other comprehensive income (loss) into corporate interest expense were $9 million ($6 million, net of tax), $4 million ($3 million, net of tax) and $3 million ($2 million, net of tax), respectively. For the year ended December 31, 2020, the amounts reclassified from accumulated other comprehensive income (loss) into vehicle interest expense was $2 million ($2 million, net of tax).

(c)For the years ended December 31, 2020, 2019 and 2018, amounts reclassified from accumulated other comprehensive income (loss) into selling, general and administrative expenses were $9 million ($6 million, net of tax), $8 million ($6 million, net of tax) and $7 million ($5 million, net of tax), respectively