Stockholders' Equity

6 Months Ended

Jun. 30, 2021

Stockholders' Equity

Stockholders' Equity

10. Stockholders’ Equity

Accumulated Other Comprehensive Loss

The following table details reclassifications out of Accumulated other comprehensive loss (“AOCL”) and into Net income. All amounts reclassified from AOCL affect the line items as indicated below and the amounts in parentheses indicate decreases to Net income in the Condensed Consolidated Statements of Income.

	Amounts Reclassified from AOCL to Net Income
		Three Months Ended				Six Months Ended
	Income Statement	June 30,				June 30,
Income for the period (in millions)	Location	2021		2020		2021		2020
Accumulated other comprehensive loss components:
Gains/(losses) on investment securities:
Available-for-sale securities	Revenues	$	(0.1)	$	0.3	$	(0.2)	$	0.9
Income tax expense	Provision for income taxes		—		—		—		(0.2)
Total reclassification adjustments related to investment securities, net of tax			(0.1)		0.3		(0.2)		0.7
Gains/(losses) on cash flow hedges:
Foreign currency contracts	Revenues		(3.3)		4.2		(9.4)		10.8
Interest rate contracts	Interest expense		(0.2)		(0.1)		(0.4)		(0.3)
Interest rate contracts	Other income/(expense), net		—		—		0.7		—
Income tax expense	Provision for income taxes		—		—		—		(0.1)
Total reclassification adjustments related to cash flow hedges, net of tax			(3.5)		4.1		(9.1)		10.4
Amortization of components of defined benefit plans:
Actuarial loss	Other income/(expense), net		(3.0)		(3.1)		(6.1)		(6.1)
Income tax benefit	Provision for income taxes		0.7		1.0		1.3		1.7
Total reclassification adjustments related to defined benefit plans, net of tax			(2.3)		(2.1)		(4.8)		(4.4)
Total reclassifications, net of tax		$	(5.9)	$	2.3	$	(14.1)	$	6.7

The following tables summarize the components of AOCL, net of tax on the accompanying Condensed Consolidated Balance Sheets (in millions):

	Investment		Hedging		Foreign Currency		Defined Benefit
	Securities		Activities		Translation		Pension Plan		Total
As of December 31, 2020	$	58.3	$	(30.5)	$	(101.2)	$	(86.1)	$	(159.5)
Unrealized gains/(losses)		(16.0)		24.2		—		—		8.2
Tax benefit/(expense)		2.9		(0.9)		—		—		2.0
Amounts reclassified from AOCL into earnings, net of tax		0.1		5.6		—		2.5		8.2
As of March 31, 2021		45.3		(1.6)		(101.2)		(83.6)		(141.1)
Unrealized gains/(losses)		2.3		(6.2)		—		—		(3.9)
Tax benefit/(expense)		(0.2)		—		—		—		(0.2)
Amounts reclassified from AOCL into earnings, net of tax		0.1		3.5		—		2.3		5.9
As of June 30, 2021	$	47.5	$	(4.3)	$	(101.2)	$	(81.3)	$	(139.3)

	Investment		Hedging		Foreign Currency		Defined Benefit
	Securities		Activities		Translation		Pension Plan		Total
As of December 31, 2019	$	24.7	$	(3.6)	$	(101.2)	$	(128.9)	$	(209.0)
Unrealized gains		7.2		27.3		—		—		34.5
Tax expense		(1.1)		(0.3)		—		—		(1.4)
Amounts reclassified from AOCL into earnings, net of tax		(0.4)		(6.3)		—		2.3		(4.4)
As of March 31, 2020		30.4		17.1		(101.2)		(126.6)		(180.3)
Unrealized gains/(losses)		24.6		(15.1)		—		—		9.5
Tax benefit/(expense)		(4.8)		0.1		—		—		(4.7)
Amounts reclassified from AOCL into earnings, net of tax		(0.3)		(4.1)		—		2.1		(2.3)
As of June 30, 2020	$	49.9	$	(2.0)	$	(101.2)	$	(124.5)	$	(177.8)

On July 22, 2021, the Company’s Board of Directors approved a plan to terminate and settle the Company’s frozen defined benefit pension plan, which was in an overfunded position as of June 30, 2021 and December 31, 2020. Upon termination and settlement, which is expected in the fourth quarter of 2021 and subject to required notices, filings, and reviews, the pre-tax balance in AOCL will be reclassified as a component of Total other income/(expense), net, with the related income tax effects recorded in Provision for income taxes, in the Condensed Consolidated Statements of Income.

Cash Dividends Paid

The Company’s Board of Directors declared quarterly cash dividends of $0.235 per common share in the first and second quarters of 2021, representing $192.5 million in total dividends. Of this amount $95.9 million was paid on June 30, 2021 and $96.6 million was paid on March 31, 2021. The Company’s Board of Directors declared quarterly cash dividends of $0.225 per common share in the first and second quarters of 2020, representing $184.9 million in total dividends. Of this amount, $92.5 million was paid on June 30, 2020 and $92.4 million was paid on March 31, 2020.

On July 22, 2021, the Company’s Board of Directors declared a quarterly cash dividend of $0.235 per common share, payable on September 30, 2021.

Share Repurchases

During the six months ended June 30, 2021 and 2020, 6.1 million and 8.5 million shares were repurchased for $150.0 million and $217.4 million, respectively, excluding commissions, at an average cost of $24.42 and $25.45, respectively. These amounts represent shares authorized by the Board of Directors for repurchase under publicly announced authorizations. As of June 30, 2021, $632.6 million remained available under the share repurchase authorization approved by the Company’s Board of Directors through December 31, 2021. The amounts included in the Common stock repurchased line in the Company’s Condensed Consolidated Statements of Cash Flows represent both shares authorized by the Board of Directors for repurchase under publicly announced authorizations and shares withheld from employees to cover tax withholding obligations on restricted stock units that have vested.