STOCKHOLDERS' EQUITY AND EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2024

STOCKHOLDERS' EQUITY AND EARNINGS PER SHARE

STOCKHOLDERS' EQUITY AND EARNINGS PER SHARE

NOTE 5.           STOCKHOLDERS’ EQUITY AND EARNINGS PER SHARE

Accumulated Other Comprehensive Income (Loss)

The following table summarizes the components of, and changes in, accumulated other comprehensive income (loss), net of income taxes.

		Foreign Currency Translation		Change in Fair Value of Cash Flow Hedges		Defined Employee Benefit Plan		Total
	(in thousands)
Balance at December 31, 2021	$	(2,280)	$	2,107	$	(1,043)	$	(1,216)
Other comprehensive income (loss) prior to reclassifications		(10,543)		12,625		18,016		20,098
Amounts reclassified from accumulated other comprehensive income		-		(2,884)		322		(2,562)
Balance at December 31, 2022		(12,823)		11,848		17,295		16,320
Other comprehensive income (loss) prior to reclassifications		2,027		4,502		(5,455)		1,074
Amounts reclassified from accumulated other comprehensive income		-		(10,876)		(404)		(11,280)
Balance at December 31, 2023		(10,796)		5,474		11,436		6,114
Other comprehensive income (loss) prior to reclassifications		(13,126)		2,244		(673)		(11,555)
Amounts reclassified from accumulated other comprehensive loss		1,585		(7,718)		(210)		(6,343)
Balance at December 31, 2024	$	(22,337)	$	—	$	10,553	$	(11,784)

Amounts reclassified from accumulated other comprehensive income (loss) to the specific caption within the Consolidated Statements of Operations were as follows:

	Years Ended December 31,						To Caption on Consolidated
	2024		2023		2022		Statements of Operations
	(in thousands)
Foreign currency translation	$	1,585	$	—	$	—	Other income (expense), net
Cash flow hedges		(7,718)		(10,876)		(2,884)	Interest expense
Defined employee benefit plan		(210)		(404)		322	Other income (expense), net
Total reclassifications	$	(6,343)	$	(11,280)	$	(2,562)

Earnings Per Share

The following table summarizes our earnings per share (“EPS”):

	Years Ended December 31,
	2024		2023		2022
	(in thousands, except per share amounts)
Income from continuing operations	$	56,306	$	130,749	$	201,891
Less: income from continuing operations attributable to noncontrolling interest		—		—		16
Income from continuing operations attributable to Advanced Energy Industries, Inc.	$	56,306	$	130,749	$	201,875
Basic weighted-average common shares outstanding		37,476		37,480		37,463
Dilutive effect of stock awards		363		270		258
Diluted weighted-average common shares outstanding		37,839		37,750		37,721
EPS from continuing operations
Basic EPS	$	1.50	$	3.49	$	5.39
Diluted EPS	$	1.49	$	3.46	$	5.35
Anti-dilutive shares not included above
Stock awards		-		95		67
Warrants		3,046		3,486		—
Total anti-dilutive shares		3,046		3,581		67

We compute basic earnings per share of common stock (“Basic EPS”) by dividing income available to common stockholders by the weighted-average number of common shares outstanding during the period.

See Note 18. Long-Term Debt for information regarding our Convertible Notes, Note Hedges, and Warrants. For diluted earnings per share of common stock (“Diluted EPS”), we increase the weighted-average number of common shares outstanding during the period, as needed, to include the following:

● Additional common shares that would have been outstanding if our outstanding stock awards had been converted to common shares using the treasury stock method. We exclude any stock awards that have an anti-dilutive effect;

● Dilutive impact associated with the Convertible Notes using the if-converted method. The Convertible Notes are repayable in cash up to par value and in cash or shares of common stock for the excess over par value. When the stock price is lower than the strike price, there is no dilutive or anti-dilutive impact. Prior to conversion, we do not consider the Note Hedges for purposes of Diluted EPS as their effect would be anti-dilutive. Upon conversion, we expect the Note Hedges to offset the dilutive effect of the Convertible Notes when the stock price is above $137.46 but below $179.76; and

● Dilutive effect of the Warrants issued concurrently with the Convertible Notes using the treasury stock method. For all periods presented, the Warrants did not increase the weighted-average number of common shares outstanding because the $179.76 exercise price of the Warrants exceeded the average market price of our common stock.

Share Repurchases

To repurchase shares of our common stock, we periodically enter into share repurchase agreements. The following table summarizes these repurchases:

	Years Ended December 31,
	2024		2023		2022
	(in thousands, except per share amounts)
Amount paid or accrued to repurchase shares	$	1,770	$	40,132	$	26,635
Number of shares repurchased		19		378		356
Average repurchase price per share	$	93.58	$	105.74	$	74.90

There were no shares repurchased from related parties. Repurchased shares were retired and assumed the status of authorized and unissued shares.

At December 31, 2024, the remaining amount authorized by the Board of Directors (“our Board” or “the Board”) for future share repurchases was $197.4 million with no time limitation.