STOCKHOLDERS’ EQUITY

6 Months Ended

Jun. 30, 2017

Stockholders Equity Note [Abstract]

STOCKHOLDERS’ EQUITY

NOTE 13—STOCKHOLDERS’ EQUITY

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

	Six Months Ended June 30,
	2017			2016
Shares outstanding
Beginning balance		241,388,277			239,016,924
Common stock issued		43,584,281			2,206,027
Purchase of common stock		(997,160	)		(651,291	)
Ending balance		283,975,398			240,571,660
Shares held as Treasury shares
Beginning balance		8,302,004			7,824,204
Purchase of common stock		997,160			651,291
Retirement of common stock		(805,146	)		(400,701	)
Ending balance		8,494,018			8,074,794
Ordinary shares issued at the end of the period		292,469,416			248,646,454

During the second quarter of 2017, we delivered 40.8 million shares of our common stock to holders of the prepaid common stock purchase contracts comprising part of the TEUs, based on the settlement rate of 3.5496 shares per unit. For further discussion see Note 9, Debt.

Accumulated Other Comprehensive Income (Loss)

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

	June 30, 2017			December 31, 2016
	(In thousands)
Foreign currency translation adjustments ("CTA")	$	(42,074	)	$	(42,082	)
Net unrealized gain on investments		308			269
Net unrealized loss on derivative financial instruments		(14,425	)		(25,082	)
Accumulated other comprehensive loss	$	(56,191	)	$	(66,895	)

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

	Foreign currency translation adjustments			Unrealized holding gain (loss) on investments		Gain (loss) on derivative (1)				TOTAL
For the Three Months Ended June 30, 2017	(In thousands)
Balance at April 1, 2017	$	(41,843	)	$	288	$	(22,929	)		$	(64,484	)
Other comprehensive income (loss) before reclassification		(231	)		20		4,610				4,399
Acquisition of NCI		-			-		2,284				2,284
Amounts reclassified from AOCI		-			-		1,610		(2)		1,610
Net current period other comprehensive income		(231	)		20		8,504				8,293
Balance at June 30, 2017	$	(42,074	)	$	308	$	(14,425	)		$	(56,191	)
For the Six Months Ended June 30, 2017
Balance at January 1, 2017	$	(42,082	)	$	269	$	(25,082	)		$	(66,895	)
Other comprehensive income before reclassification		8			39		10,212				10,259
Acquisition of NCI		-			-		2,284				2,284
Amounts reclassified from AOCI		-			-		(1,839	)	(2)		(1,839	)
Net current period other comprehensive income		8			39		10,657				10,704
Balance at June 30, 2017	$	(42,074	)	$	308	$	(14,425	)		$	(56,191	)
For the Three Months Ended June 30, 2016											-
Balance at April 1, 2016	$	(33,268	)	$	252	$	(33,473	)		$	(66,489	)
Other comprehensive income (loss) before reclassification		(4,027	)		12		(10,304	)			(14,319	)
Amounts reclassified from AOCI		-			-		14,933		(2)		14,933
Net current period other comprehensive income		(4,027	)		12		4,629				614
Balance at June 30, 2016	$	(37,295	)	$	264	$	(28,844	)		$	(65,875	)
For the Six Months Ended June 30, 2016
Balance at January 1, 2016	$	(29,925	)	$	247	$	(64,277	)		$	(93,955	)
Other comprehensive income (loss) before reclassification		(7,370	)		17		10,230				2,877
Amounts reclassified from AOCI		-			-		25,203		(2)		25,203
Net current period other comprehensive income		(7,370	)		17		35,433				28,080
Balance at June 30, 2016	$	(37,295	)	$	264	$	(28,844	)		$	(65,875	)

⁽¹⁾ Refer to Note 11, Derivative Financial Instruments, for additional details.

⁽²⁾ Reclassified to Cost of operations and Other non-operating income (expense), net.

Noncontrolling Interest

North Ocean 105― In December 2010, J. Ray McDermott (Norway), AS (the “JRM”), one of our indirectly wholly owned subsidiaries, and Oceanteam entered into an Equity Owner’s Agreement (as amended to date, the “Equity Agreement”) to acquire a 75% interest in North Ocean 105 AS, the vessel-owning company. Under the Equity Agreement JRM was given an option to purchase Oceanteam ASA’s 25% ownership interest in the second quarter of 2017.

In the second quarter of 2017, we exercised our option under the Equity Agreement and purchased Oceanteam’s 25% interest in the vessel-owning company for approximately $11 million in cash. As part of that transaction, we also assumed the right to a $5 million note payable from North Ocean 105 AS to Oceanteam (which had been issued in connection with a dividend declared by North Ocean 105 AS in 2016). In connection with this acquisition, we recorded a $9 million decrease in noncontrolling interest and a $5 million decrease in note payable to Oceanteam and we recognized a $2 million gain in Capital-in-excess of par value in our Consolidated Financial Statements.