STOCKHOLDERS' EQUITY AND EQUITY-BASED INCENTIVE PLANS

3 Months Ended

Mar. 31, 2020

STOCKHOLDERS' EQUITY AND EQUITY-BASED INCENTIVE PLANS

NOTE 18—STOCKHOLDERS’ EQUITY AND EQUITY-BASED INCENTIVE PLANS

Shares Outstanding and Treasury Shares―The changes in the number of shares outstanding and treasury shares held by us are as follows (in millions):

	Three Months Ended March 31,
	2020		2019
Shares outstanding
Beginning balance		193		181
Common stock issued		-		2
Purchase of common stock		-		(1	)
Ending balance		193		182

Shares held as Treasury shares
Beginning balance		3		3
Purchase of common stock		-		1
Retirement of common stock		-		(1	)
Ending balance		3		3

Ordinary shares issued at the end of the period ⁽¹⁾		196		184

⁽¹⁾

^{Amounts in this table may not sum due to rounding.}

Effects of the Chapter 11 Cases on the Common Stock — The provisions of the RSA and the Plan of Reorganization contemplate that the existing equity interests will be cancelled and discharged in connection with the Chapter 11 Cases and the holders of those equity interests, including the holders of our outstanding shares of common stock, will be entitled to no recovery relating to those equity interests.

Stock-Based Compensation Expense―During the three months ended March 31, 2020, we recognized $4 million of stock-based equity compensation expense in “Restructuring and integration costs” in our Statements of Operations. The provisions of the RSA and the Plan of Reorganization contemplate that the obligations to issue securities under our equity compensation plans will be cancelled and discharged in connection with the Chapter 11 Cases.

During the three months ended March 31, 2019, we recognized $6 million of stock-based equity compensation expense in “Selling, general and administrative expenses” in our Statements of Operations.

Compensation expense associated with awards classified as liability awards was not material during the three months ended March 31, 2020 and 2019.

As of March 31, 2020, the unrecognized compensation expense was approximately $18 million. This cost will be recognized over a weighted-average period of two years or upon our emergence from the Chapter 11 proceedings, whichever is earlier.

Accumulated Other Comprehensive (Loss) Income―The components of AOCI included in stockholders’ equity are as follows:

	March 31, 2020			December 31, 2019
	(In millions)
Foreign currency translation adjustments ("CTA")	$	(129	)	$	(97	)
Net unrealized loss on derivative financial instruments		(54	)		(12	)
Defined benefit pension and other postretirement plans		6			6
Accumulated other comprehensive loss	$	(177	)	$	(103	)

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

	Foreign currency translation adjustments			Net unrealized loss on derivative financial instruments ⁽¹⁾			Defined benefit pension and other postretirement plans		TOTAL
	(In millions)
December 31, 2018	$	(73	)	$	(40	)	$	6	$	(107	)
Other comprehensive income before reclassification		(39	)		(22	)		-		(61	)
Amounts reclassified from AOCI ⁽²⁾		-			3			-		3
Net current period other comprehensive income		(39	)		(19	)		-		(58	)
March 31, 2019	$	(112	)	$	(59	)	$	6	$	(165	)

December 31, 2019		(97	)		(12	)		6		(103	)
Other comprehensive income before reclassification		(32	)		(49	)		-		(81	)
Amounts reclassified from AOCI ⁽²⁾		-			7			-		7
Net current period other comprehensive income		(32	)		(42	)		-		(74	)
March 31, 2020	$	(129	)	$	(54	)	$	6	$	(177	)

⁽¹⁾	Refer to Note 16, Derivative Financial Instruments, for additional details.

⁽²⁾	^{Amounts are net of tax, which was not material during the three months ended March 31, 2020 and 2019.}