STOCKHOLDERS' EQUITY

9 Months Ended

Sep. 30, 2016

Stockholders Equity Note [Abstract]

STOCKHOLDERS’ EQUITY

NOTE 11—STOCKHOLDERS’ EQUITY

The changes in the number of shares outstanding and treasury shares held by the Company are as follows:

	Nine Months Ended September 30,
	2016			2015
Shares outstanding
Beginning balance		239,016,924			237,809,823
Common stock issued		3,234,994			1,564,317
Purchase of common stock		(912,344	)		(410,019	)
Ending balance		241,339,574			238,964,121
Shares held as Treasury shares
Beginning balance		7,824,204			7,400,027
Purchase of common stock		912,344			410,019
Retirement of common stock		(447,173	)		-
Ending balance		8,289,375			7,810,046
Ordinary shares issued at the end of the period		249,628,949			246,774,167

Accumulated Other Comprehensive Income (Loss) (AOCI)

The components of AOCI included in stockholders’ equity are as follows:  

	September 30, 2016			December 31, 2015
	(In thousands)
Foreign currency translation adjustments ("FCTA")	$	(42,326	)	$	(29,925	)
Net gain on investments		261			247
Net loss on derivative financial instruments		(25,267	)		(64,277	)
Accumulated other comprehensive loss	$	(67,332	)	$	(93,955	)

During the first quarter of 2016, we recorded a $7 million adjustment decreasing FCTA, with an offsetting reduction of Loss on foreign currency, net, to correct amounts accounted for inappropriately in a previous period.

In the second quarter of 2016, foreign currency instruments associated with construction of our DLV 2000 vessel were settled upon the final payment to the shipyard. These instruments were designated as cash flow hedges and, as such, $20 million of cumulative loss is recorded in AOCI and will be amortized consistent with the depreciation of the vessel.

The following table presents the components of AOCI and the amounts that were reclassified during the periods indicated:

2016 Period
For the three months ended September 30, 2016	Foreign currency translation adjustments			Unrealized holding gain (loss) on investments			Gain (loss) on derivative (1)					TOTAL
	(In thousands)
Balance, June 30, 2016	$	(37,295	)	$	264		$	(28,844	)			$	(65,875	)
Other comprehensive income (loss) before reclassification		(5,031	)		(3	)		4,228					(806	)
Amounts reclassified from AOCI		-			-			(651	)	(2)			(651	)
Net current period other comprehensive income (loss)		(5,031	)		(3	)		3,577					(1,457	)
Balance, September 30, 2016	$	(42,326	)	$	261		$	(25,267	)			$	(67,332	)
For the nine months ended September 30, 2016	Foreign currency translation adjustments			Unrealized holding gain (loss) on investments			Gain (loss) on derivatives (1)					TOTAL
	(In thousands)
Balance, January 1, 2016	$	(29,925	)	$	247		$	(64,277	)			$	(93,955	)
Other comprehensive income (loss) before reclassification		(12,401	)		14			14,458					2,071
Amounts reclassified from AOCI		-			-			24,552		(2)			24,552
Net current period other comprehensive income (loss)		(12,401	)		14			39,010					26,623
Balance, September 30, 2016	$	(42,326	)	$	261		$	(25,267	)			$	(67,332	)
2015 Period
For the three months ended September 30, 2015	Foreign currency translation adjustments			Unrealized holding gain (loss) on investments			Gain (loss) on derivative(1)					TOTAL
	(In thousands)
Balance, June 30, 2015	$	(22,198	)	$	257		$	(72,083	)			$	(94,024	)
Other comprehensive income (loss) before reclassification		(9,333	)		(27	)		(28,249	)				(37,609	)
Amounts reclassified from AOCI		-						27,548			(2)		27,548
Net current period other comprehensive income (loss)		(9,333	)		(27	)		(701	)				(10,061	)
Balance, September 30, 2015	$	(31,531	)	$	230		$	(72,784	)			$	(104,085	)
For the nine months ended September 30, 2015	Foreign currency translation adjustments			Unrealized holding gain (loss) on investments			Gain (loss) on derivative(1)					TOTAL
	(In thousands)
Balance, January 1, 2015	$	(15,212	)	$	241		$	(82,837	)			$	(97,808	)
Other comprehensive income (loss) before reclassification		(14,076	)		(11	)		(56,905	)				(70,992	)
Amounts reclassified from AOCI		(2,243	)		-			66,958			(2)		64,715
Net current period other comprehensive income (loss)		(16,319	)		(11	)		10,053					(6,277	)
Balance, September 30, 2015	$	(31,531	)	$	230		$	(72,784	)			$	(104,085	)

⁽¹⁾ Refer to Note 9 for additional details.

⁽²⁾ Reclassified to Cost of operations and Gain on foreign currency, net.

Noncontrolling Interest

In 2013, we entered into certain joint ventures with TH Heavy Engineering Berhad (“THHE”), whereby we acquired a 30% interest in THHE Fabricators Sdn. Bhd. (“THF”), a subsidiary of THHE, and THHE acquired a 30% interest in our Malaysian subsidiary, Berlian McDermott Sdn. Bhd (“BMD”). In the third quarter of 2016, we reacquired the 30% of noncontrolling interest in BMD from THHE in exchange for our 30% equity interest in THF. We determined the fair value of the asset surrendered to be $17 million. As of and for the periods ended September 30, 2016, in connection with the acquisition of the BMD noncontrolling interest, we recorded an $18 million decrease in Noncontrolling interest, and, in connection with the sale of our investment in THF, we recorded a $12 million decrease in Investments in unconsolidated affiliates and a $5 million gain in Other income (expense), net in our Consolidated Financial Statements.