Equity (Tables)

9 Months Ended

Sep. 30, 2019

Equity

Schedule of stock based compensation expense

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in millions)	2019		2018		2019		2018
Stock options:
Pre-tax compensation expense	$	—	$	1	$	2	$	4
Income tax benefit		—		—		—		(1)
Stock option expense, net of income taxes		—		1		2		3
Restricted stock units ("RSUs"):
Pre-tax compensation expense		2		3		7		9
Income tax benefit		—		(1)		(1)		(2)
RSUs, net of income taxes		2		2		6		7
Performance shares and other share-based awards:
Pre-tax compensation expense		2		—		5		2
Income tax benefit		—		(1)		—		(1)
Performance shares and other share-based compensation expense, net of income taxes		2		(1)		5		1
Total share-based compensation:
Pre-tax compensation expense		4		4		14		15
Income tax benefit		—		(2)		(1)		(4)
Total share-based compensation expense, net of income taxes	$	4	$	2	$	13	$	11

Schedule of valuation assumptions for stock options

	Nine Months Ended September 30,
	2019		2018
Expected life (in years)	5.5		5.5
Risk-free interest rate	2.5	%	2.5	%
Expected volatility	19.7	%	19.8	%
Expected dividend yield	2.7	%	1.8	%

Schedule of stock option transactions

	Number of Options (in thousands)	Weighted Average Exercise Price per Share		Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value (in millions)
Outstanding as of December 31, 2018	2,079	$	80.25	5.51	$	42
Granted	247		91.85
Exercised	(129)		34.09
Cancelled	(56)		113.73
Outstanding as of September 30, 2019	2,141	$	83.49	5.46	$	22
Exercisable as of September 30, 2019	1,696	$	76.92	4.63	$	22

Schedule of additional information pertaining to stock option activity

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(dollars in millions, except per share)	2019		2018		2019		2018
Weighted average grant date fair value of stock options granted (per share)	$	—	$	—	$	14.02	$	24.01
Total intrinsic value of stock options exercised	$	1	$	1	$	7	$	12

Schedule of restricted unit activity

(RSUs in thousands)	Number of Restricted Shares	Weighted Average Fair Value per Share
Non-vested as of December 31, 2018	344	$	115.06
Granted	174		91.28
Vested	(136)		101.40
Cancelled	(37)		115.79
Non-vested as of September 30, 2019	345	$	108.37

Summary of net changes in accumulated other comprehensive loss

(in millions)	Cumulative Translation Adjustment		Deferred (Loss) Gain on Hedging Activities		Pension and Postretirement Adjustment		Unrealized (Loss) Gain on Investment		Accumulated Other Comprehensive Loss
Balance, December 31, 2018	$	(1,080)	$	(5)	$	(69)	$	—	$	(1,154)
Other comprehensive loss before reclassification adjustments		(48)		(16)		(2)		—		(66)
Amount reclassified from accumulated OCI		—		3		—		—		3
Tax benefit		—		3		—		—		3
Net other comprehensive loss		(48)		(10)		(2)		—		(60)
Balance, September 30, 2019	$	(1,128)	$	(15)	$	(71)	$	—	$	(1,214)

(in millions)	Cumulative Translation Adjustment		Deferred (Loss) Gain on Hedging Activities		Pension and Postretirement Adjustment		Unrealized (Loss) Gain on Investment		Accumulated Other Comprehensive Loss
Balance, December 31, 2017	$	(951)	$	(13)	$	(51)	$	2	$	(1,013)
Other comprehensive loss before reclassification adjustments		(113)		(1)		(1)		—		(115)
Amount reclassified from accumulated OCI		—		5		—		—		5
Adoption of ASU 2016-01		—		—		—		(2)		(2)
Adoption of ASU 2018-02		—		(2)		(3)		—		(5)
Tax provision		—		(1)		—		—		(1)
Net other comprehensive (loss) income		(113)		1		(4)		(2)		(118)
Balance, September 30, 2018	$	(1,064)	$	(12)	$	(55)	$	—	$	(1,131)

Schedule of stockholders equity and redeemable equity

	Total Equity												Share-based
			Additional				Accumulated Other				Non-		Payments
	Common		Paid-In		Treasury		Comprehensive		Retained		Controlling		Subject to
(in millions)	Stock		Capital		Stock		Loss		Earnings		Interests		Redemption
Balance, December 31, 2018	$	1	$	1,096	$	(1,091)	$	(1,154)	$	3,536	$	20	$	37
Net income attributable to Ingredion										100
Net income attributable to non-controlling interests												2
Dividends declared, common stock ($0.625/share)										(42)
Repurchases of common stock				32		31
Share-based compensation, net of issuance				9		10								(16)
Other comprehensive loss								(6)
Balance, March 31, 2019	$	1	$	1,137	$	(1,050)	$	(1,160)	$	3,594	$	22	$	21
Net income attributable to Ingredion										105
Net income attributable to non-controlling interests												2
Dividends declared, common stock ($0.625/share)										(43)
Dividends declared, non-controlling interests												(4)
Share-based compensation, net of issuance				1		3								4
Other comprehensive income (loss)								8				(4)
Balance, June 30, 2019	$	1	$	1,138	$	(1,047)	$	(1,152)	$	3,656	$	16	$	25
Net income attributable to Ingredion										99
Net income attributable to non-controlling interests												3
Dividends declared, common stock ($0.63/share)										(42)
Dividends declared, non-controlling interests												(2)
Share-based compensation, net of issuance				(1)		3								3
Other comprehensive (loss) income								(62)				2
Balance, September 30, 2019	$	1	$	1,137	$	(1,044)	$	(1,214)	$	3,713	$	19	$	28

	Total Equity												Share-based
			Additional				Accumulated Other				Non-		Payments
	Common		Paid-In		Treasury		Comprehensive		Retained		Controlling		Subject to
(in millions)	Stock		Capital		Stock		Loss		Earnings		Interests		Redemption
Balance, December 31, 2017	$	1	$	1,138	$	(494)	$	(1,013)	$	3,259	$	26	$	36
Net income attributable to Ingredion										140
Net income attributable to non-controlling interests												3
Dividends declared, common stock ($0.60/share)										(44)
Dividends declared, non-controlling interests												(3)
Share-based compensation, net of issuance				(6)		18								(9)
Other comprehensive income (loss)								41				(2)
Balance, March 31, 2018	$	1	$	1,132	$	(476)	$	(972)	$	3,355	$	24	$	27
Net income attributable to Ingredion										114
Net income attributable to non-controlling interests												2
Dividends declared, common stock ($0.60/share)										(44)
Dividends declared, non-controlling interests												(1)
Repurchase of common stock						(141)
Share-based compensation, net of issuance						2								4
Other comprehensive loss								(134)				(2)
Other				(4)						1		(1)
Balance, June 30, 2018	$	1	$	1,128	$	(615)	$	(1,106)	$	3,426	$	22	$	31
Net income attributable to Ingredion										95
Net income attributable to non-controlling interests												3
Dividends declared, common stock ($0.625/share)										(43)
Dividends declared, non-controlling interests												(3)
Repurchases of common stock						(36)
Share-based compensation, net of issuance				3		1								1
Other comprehensive loss								(18)
Other								(7)		6
Balance, September 30, 2018	$	1	$	1,131	$	(650)	$	(1,131)	$	3,484	$	22	$	32

Schedule of basic and diluted earnings per common share

	Three Months Ended September 30, 2019					Three Months Ended September 30, 2018
(in millions, except per share amounts)	Net Income Available to Ingredion		Weighted Average Shares	Per Share Amount		Net Income Available to Ingredion		Weighted Average Shares	Per Share Amount
Basic EPS	$	99	66.9	$	1.48	$	95	71.2	$	1.33
Effect of Dilutive Securities:
Incremental shares from assumed exercise of dilutive stock options and vesting of dilutive RSUs and other awards			0.5					0.7
Diluted EPS	$	99	67.4	$	1.47	$	95	71.9	$	1.32

	Nine Months Ended September 30, 2019					Nine Months Ended September 30, 2018
(in millions, except per share amounts)	Net Income Available to Ingredion		Weighted Average Shares	Per Share Amount		Net Income Available to Ingredion		Weighted Average Shares	Per Share Amount
Basic EPS	$	304	66.9	$	4.54	$	349	71.8	$	4.86
Effect of Dilutive Securities:
Incremental shares from assumed exercise of dilutive stock options and vesting of dilutive RSUs and other awards			0.5					0.9
Diluted EPS	$	304	67.4	$	4.51	$	349	72.7	$	4.80