13. Shareholders’ Equity

Fixed Rate Cumulative Convertible Preferred Stock, Series A

Corning has 2,300 outstanding shares of Fixed Rate Cumulative Convertible Preferred Stock, Series A. The Preferred Stock is convertible at the option of the holder and the Company upon certain events, at a conversion rate of 50,000 shares of Corning’s common stock per one share of Preferred Stock, subject to certain anti-dilution provisions. As of March 31, 2018, the Preferred Stock has not been converted, and none of the anti-dilution provisions have been triggered.

Share Repurchases

2017 Share Repurchases

In December 2016, Corning’s Board of Directors approved a $4 billion share repurchase program with no expiration (the “2016 Repurchase Program”). In the year ended December 31, 2017, Corning entered into two separate accelerated share repurchase agreements under this program (the “2017 ASR agreements”). In the second quarter of 2017, Corning entered into and finalized an accelerated share repurchase agreement under which we paid $500 million for a total of 17.1 million shares. In the third quarter of 2017, Corning entered into and finalized an additional accelerated share repurchase agreement under which we paid $500 million for a total of 17.2 million shares.

In addition to the 2017 ASR agreements, during the year ended December 31, 2017, the Company repurchased 50.1 million shares of common stock on the open market for approximately $1.4 billion, resulting in a total of 84.4 million shares repurchased for approximately $2.4 billion during 2017.

2018 Share Repurchases

In the three months ended March 31, 2018, the Company repurchased 27.1 million shares of common stock on the open market for approximately $814.3 million as part of its 2016 Repurchase Program.

On April 26, 2018, Corning’s Board of Directors approved a $2 billion share repurchase program with no expiration (the “2018 Repurchase Program”). The 2018 Repurchase Program will commence when the authorization under the 2016 Repurchase Program is exhausted.

Accumulated Other Comprehensive Loss

In the three months ended March 31, 2018 and 2017, the change in accumulated other comprehensive loss was primarily related to the foreign currency translation adjustment.

A summary of changes in the foreign currency translation adjustment component of accumulated other comprehensive loss is as follows (in millions) (1):



	Three months ended
	March 31,
	2018		2017
Beginning balance	$	(529)	$	(1,275)
Other comprehensive income (2)		260		434
Equity method affiliates (3)		4		16
Net current-period other comprehensive income		264		450
Ending balance	$	(265)	$	(825)

(1)

All amounts are after tax. Amounts in parentheses indicate debits to accumulated other comprehensive loss.

(2)

For the three months ended March 31, 2018 and 2017, amounts are net of tax expense of $10 million and $57 million, respectively.

(3)

Tax effects are not significant.