Share Capital

12 Months Ended

Dec. 31, 2020

The preferred shares issued in connection with the acquisition of OppenheimerFunds have a $0.20 par value, liquidation preference of $1,000 per share and fixed cash dividend rate of 5.90% per annum, payable quarterly on a non-cumulative basis. Shares of preferred stock are not redeemable prior to the 21st anniversary of their original issue date of May 24, 2019. The number of preferred shares issued and outstanding is represented in the table below:


	As of
in millions	December 31, 2020	December 31, 2019
Preferred shares issued (1)	4.0	4.0

Preferred shares outstanding (1)	4.0	4.0

__________

(1) Shares held by MassMutual and are subject to a lock-up period of five years, which disallows the sale of shares by MassMutual during the five-year period beginning on the original issue date of May 24, 2019.

The number of common shares and common share equivalents issued are represented in the table below:


In millions	December 31, 2020	December 31, 2019	December 31, 2018


Common shares issued	566.1	566.1	490.4
Less: Treasury shares for which dividend and voting rights do not apply	(107.0)	(112.8)	(93.3)
Common shares outstanding	459.1	453.3	397.1

During the year ended December 31, 2019, the company entered into three forward contracts to purchase its common shares. The details of the forward contracts for the years ended December 31, 2020 and December 31, 2019, respectively, are as follows:


	Year ended December 31, 2020
In millions, except strike price	Common Shares Purchased	Initial Strike Price		Forward price	Hedge Completion Date	Total Treasury Shares Recorded		Settlement Date	Total Liability Recorded
$200 million - entered on May 13, 2019	9.8	$	20.51	$ 12.00	05/30/2019	$	198.7	01/04/2021	$	117.0
$200 million - entered on July 2, 2019	10.0	$	20.00	$ 12.00	07/30/2019	$	193.7	04/01/2021	$	119.4
$100 million - entered on August 27, 2019	6.0	$	16.59	$ 12.00	09/27/2019	$	102.6	04/01/2021	$	72.6
	25.8					$	495.0		$	309.0


	Year ended December 31, 2019
In millions, except strike price	Common Shares Purchased	Initial Strike Price		Forward Price		Hedge Completion Date	Total Treasury Shares Recorded		Settlement Date	Total Liability Recorded
$200 million - entered on May 13, 2019	9.8	$	20.51	$	20.51	05/30/2019	$	198.7	01/04/2021	$	199.1
$200 million - entered on July 2, 2019	10.0	$	20.00	$	20.00	07/30/2019	$	193.7	04/01/2021	$	195.3
$100 million - entered on August 27, 2019	6.0	$	16.59	$	16.59	09/27/2019	$	102.6	04/01/2021	$	102.1
	25.8						$	495.0		$	496.5

Treasury shares were calculated by multiplying the number of common shares being purchased by the fair market value of Invesco’s common share price as of the hedge completion date. The company has recorded a corresponding payable to the counterparty, which represents the present value of the amount to be paid at settlement, discounted by using the implicit interest rate at inception of the forward contract. The implicit interest rate was calculated using the effective interest method. The payable includes a discount or premium on the forward purchase price represented by the difference between the fair market value of the common share price and the strike price on hedge completion date.

During the first quarter of 2020, the company amended its forward contracts resulting in a reduced forward price of $12.00. The company applied $190.6 million of collateral already paid against the forward payable, which reduced the amount the company will be required to pay at the time of settlement. The collateral is determined based on Invesco's common share price in relation to the forward price per the amended forward contract. If the forward price is greater than Invesco's common share price, the collateral is in a net paid position. If the forward price is less than Invesco's common share price, the collateral is in a net received position. As of December 31, 2020, the company's net collateral received related to the forward contracts was $104.1 million (December 31, 2019: $37.8 million net collateral paid). The company's total liability and collateral received are recorded in accounts payable and accrued expense on the Consolidated Balance Sheets (December 31, 2019: collateral paid recorded in other assets on the Consolidated Balance Sheets). The forward contract entered into on May 13, 2019 settled on January 4, 2021. The forward contract entered into on October 24, 2018 settled on July 1, 2019.

The company did not purchase shares in the open market during the year ended December 31, 2020, (December 31, 2019: 5.6 million common shares at a cost of $110.8 million). Separately, an aggregate of 3.4 million shares were withheld on vesting events during the year ended December 31, 2020 to meet employees' withholding tax obligations (December 31, 2019: 3.3 million). The fair value of these common shares withheld at the respective withholding dates was $47.1 million (December 31, 2019: $59.0 million). At December 31, 2020, approximately $732.2 million remained authorized under the company's common share repurchase authorization approved by the Board on July 22, 2016 (December 31, 2019: $732.2 million).

Total treasury shares at December 31, 2020 were 121.6 million (December 31, 2019: 128.2 million), including 14.6 million unvested restricted common stock awards (December 31, 2019: 15.4 million) for which dividend and voting rights apply. The market price of common shares at the end of 2020 was $17.43. The total market value of the company's 121.6 million treasury shares was $2.1 billion at December 31, 2020.

Movements in Treasury Shares comprise:


	Year ended
In millions	December 31, 2020	December 31, 2019	December 31, 2018
Beginning balance	128.2	103.0	92.4
Acquisition of common shares	3.4	34.7	16.0
Distribution of common shares	(9.3)	(9.2)	(5.2)
Common shares distributed to meet ESPP obligation	(0.7)	(0.3)	(0.2)

Ending balance	121.6	128.2	103.0