Capital Stock

12 Months Ended

Dec. 31, 2019

Common Stock

At December 31, 2019, we had 100 million shares of common stock authorized and 50.1 million shares issued and outstanding.

Dividends

We paid regular quarterly dividends on our common stock during the last three years. On January 16, 2020, the Board declared a regular quarterly dividend of 15 cents per share payable on March 2, 2020. The payment of future dividends is at the discretion of the Board of Directors and is dependent on our future earnings, financial condition, shareholder equity levels, cash flow, business requirements and other factors.

Preferred Stock

At December 31, 2019, we had the authority to issue up to 2.0 million shares of preferred stock with a par value of $10 per share.

Share Repurchase Program

In May 2017, our board of directors authorized a $200 million share repurchase program. We were not obligated to repurchase any specific dollar amount or number of shares, and, at December 31, 2019, the share repurchase program expired with approximately $106 million remaining available under that program. The timing and volume of share repurchases that could have been executed under this program was at the discretion of management on an opportunistic basis, or pursuant to trading plans or other arrangements. Share repurchases under this program were made in the open market, in privately negotiated transactions, or otherwise.

In December 2018, we entered into an ASR with a financial institution. In exchange for a $50 million up-front payment at the beginning of the purchase period, the financial institution delivered to us 700,000 shares of our common stock for an average repurchase price of $71.43 per share. The shares received were retired in the period they were delivered to us, and the up-front payment was accounted for as a reduction to shareholders' equity in the consolidated balance sheet. For purposes of calculating earnings per share, we reported the ASR as a repurchase of our common stock in December 2018 and as a forward contract indexed to our common stock. The ASR met all of the applicable criteria for equity classification, and, as a result, was not being accounted for as a derivative instrument.

The ASR purchase period subsequently ended in February 2019 and we received and retired an additional 37,387 shares under the ASR, resulting in an overall average repurchase price of $67.81 per share.

Additionally, during the year ended December 31, 2018, we used $43.5 million to repurchase, in the open market, 610,177 shares at an average repurchase price of $71.22 per share. These shares were retired upon repurchase. No additional shares were repurchased in the year ended December 31, 2019.

Shares Used to Calculate Earnings per Share



	Years Ended December 31,
(In millions)	2019	2018	2017

Weighted-average shares

Basic^(a)	50.2	50.9	50.7
Effect of dilutive stock awards	0.9	—	1.1
Diluted^(a)	51.1	50.9	51.8

Antidilutive stock awards excluded from denominator	0.1	1.6	0.1

(a)

We have deferred compensation plans for directors and certain of our employees. Some amounts owed to participants are denominated in common stock units. Each unit represents one share of common stock. The number of shares used to calculate basic earnings per share includes the weighted-average common stock units credited to employees and directors under the deferred compensation plans. Additionally, nonvested units containing only a service requirement are also included in the computation of basic weighted-average shares when the requisite service period has been completed. Accordingly, basic and diluted shares include weighted-average units of 0.3 million in 2019, 0.3 million in 2018 and 0.3 million in 2017.