Equity (Tables)

3 Months Ended

Mar. 31, 2020

Equity

Schedule of stock based compensation expense

	Three Months Ended
	March 31,
(in millions)	2020		2019
Stock options:
Pre-tax compensation expense	$	1	$	1
Income tax benefit		—		—
Stock option expense, net of income taxes		1		1
Restricted stock units ("RSUs"):
Pre-tax compensation expense		3		2
Income tax benefit		(1)		—
RSUs, net of income taxes		2		2
Performance shares and other share-based awards:
Pre-tax compensation expense		2		1
Income tax benefit		—		—
Performance shares and other share-based compensation expense, net of income taxes		2		1
Total share-based compensation:
Pre-tax compensation expense		6		4
Income tax benefit		(1)		—
Total share-based compensation expense, net of income taxes	$	5	$	4

Schedule of valuation assumptions for stock options

	Three Months Ended March 31,
	2020		2019
Expected life (in years)	5.5		5.5
Risk-free interest rate	1.4	%	2.5	%
Expected volatility	19.8	%	19.7	%
Expected dividend yield	2.9	%	2.7	%

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, 2019	2,055	$	84.36	5.30	$	34
Granted	336		88.35
Exercised	(79)		43.74
Cancelled	(3)		28.75
Outstanding as of March 31, 2020	2,309	$	86.39	5.85	$	11
Exercisable as of March 31, 2020	1,757	$	83.88	4.81	$	11

Schedule of additional information pertaining to stock option activity

	Three Months Ended
	March 31,
(dollars in millions, except per share)	2020		2019
Weighted average grant date fair value of stock options granted (per share)	$	11.48	$	14.02
Total intrinsic value of stock options exercised	$	4	$	4

Schedule of restricted unit activity

(RSUs in thousands)	Number of Restricted Shares	Weighted Average Fair Value per Share
Non-vested as of December 31, 2019	339	$	108.02
Granted	168		88.38
Vested	(87)		117.23
Cancelled	(5)		107.37
Non-vested as of March 31, 2020	415	$	98.16

Summary of net changes in accumulated other comprehensive loss

(in millions)	Cumulative Translation Adjustment		Deferred (Loss) Gain on Hedging Activities		Pension and Postretirement Adjustment		Accumulated Other Comprehensive Loss
Balance, December 31, 2019	$	(1,089)	$	(9)	$	(60)	$	(1,158)
Other comprehensive loss before reclassification adjustments		(134)		(46)		—		(180)
Amount reclassified from accumulated OCI		—		6		—		6
Tax benefit		—		10		—		10
Net other comprehensive loss		(134)		(30)		—		(164)
Balance, March 31, 2020	$	(1,223)	$	(39)	$	(60)	$	(1,322)

(in millions)	Cumulative Translation Adjustment		Deferred (Loss) Gain on Hedging Activities		Pension and Postretirement Adjustment		Accumulated Other Comprehensive Loss
Balance, December 31, 2018	$	(1,080)	$	(5)	$	(69)	$	(1,154)
Other comprehensive income (loss) before reclassification adjustments		1		(12)		—		(11)
Amount reclassified from accumulated OCI		—		2		—		2
Tax benefit		—		3		—		3
Net other comprehensive income (loss)		1		(7)		—		(6)
Balance, March 31, 2019	$	(1,079)	$	(12)	$	(69)	$	(1,160)

Schedule of stockholders equity and redeemable equity

	Total Equity														Share-based
					Additional				Accumulated Other				Non-		Payments
	Preferred		Common		Paid-In		Treasury		Comprehensive		Retained		Controlling		Subject to
(in millions)	Stock		Stock		Capital		Stock		Loss		Earnings		Interests		Redemption
Balance, December 31, 2019	$	—	$	1	$	1,137	$	(1,040)	$	(1,158)	$	3,780	$	21	$	31
Net income attributable to Ingredion												75
Net income attributable to non-controlling interests														3
Dividends declared, common stock ($0.63/share)												(42)
Share-based compensation, net of issuance						5		12								(8)
Other comprehensive loss										(164)				(3)
Balance, March 31, 2020	$	—	$	1	$	1,142	$	(1,028)	$	(1,322)	$	3,813	$	21	$	23

	Total Equity														Share-based
					Additional				Accumulated Other				Non-		Payments
	Preferred		Common		Paid-In		Treasury		Comprehensive		Retained		Controlling		Subject to
(in millions)	Stock		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

Schedule of basic and diluted earnings per common share

	Three Months Ended March 31, 2020					Three Months Ended March 31, 2019
(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	$	75	67.1	$	1.12	$	100	66.8	$	1.50
Effect of Dilutive Securities:
Incremental shares from assumed exercise of dilutive stock options and vesting of dilutive RSUs and other awards			0.7					0.6
Diluted EPS	$	75	67.8	$	1.11	$	100	67.4	$	1.48