Shareholders' Equity

12 Months Ended

Dec. 31, 2018

NOTE 24. SHAREHOLDERS' EQUITY

Common Stock Repurchase Plan

On July 29, 2016, we announced that our Board of Directors had approved a share repurchase program pursuant to which the Company is authorized to repurchase up to $150.0 million of its outstanding shares of common stock through July 31, 2018 (the “Program”). On October 30, 2017, we announced that our Board of Directors had approved an additional $250.0 million authorization to repurchase shares under the Program. The Program was also extended through October 31, 2020. On July 31, 2018, we announced that our Board of Directors had approved an additional $300.0 million authorization to repurchase shares, increasing the total authorized amount under the Program to $700.0 million.

Repurchases under the Program may be made through open market, block and privately-negotiated transactions, including Rule 10b5-1 plans, at times and in such amounts as management deems appropriate, subject to market and business conditions, regulatory requirements and other factors. The Program does not obligate the Company to repurchase any particular amount of common stock and may be suspended or discontinued at any time without notice.

On August 2, 2018, we entered into an accelerated share repurchase (“ASR”) agreement with Deutsche Bank AG under the Program. The ASR included a pre-payment of $150.0 million to Deutsche Bank, at which time we received 1,766,004 shares. The ASR terminated on October 8, 2018, with additional 389,825 shares returned on that day to complete the ASR.

During 2018, including the ASR, we repurchased 4.7 million shares under the Program for a total cost of $306.5 million, or an average price of $64.74 per share. Since inception of the Program, including the ASR, we have repurchased 7.7 million shares under the Program for a total cost of $430.6 million, or an average price of $56.01 per share. During 2017, 1.8 million shares were repurchased under the Program for a total cost of $80.4 million, or an average price of $43.58 per share.

Accumulated Other Comprehensive (Loss)

The balance of each component of accumulated other comprehensive (loss), net of tax as of December 31, 2018 and 2017 is presented in the table below.

	December 31, 2018			December 31, 2017
Foreign currency translation adjustments	$	(74.7	)	$	(47.1	)
Derivative gain, net		5.3			3.5
Pension and postretirement adjustments		(390.2	)		(302.3	)
Accumulated other comprehensive (loss)	$	(459.6	)	$	(345.9	)

The amounts and related tax effects allocated to each component of other comprehensive income for 2018, 2017, and 2016 are presented in the table below.

	Pre-tax Amount			Tax Benefit		After- tax Amount
2018
Foreign currency translation adjustments	$	(27.6	)	$	-	$	(27.6	)
Derivative gain, net		0.9			0.2		1.1
Pension and postretirement adjustments		(41.6	)		8.7		(32.9	)
Total other comprehensive income (loss)	$	(68.3	)	$	8.9	$	(59.4	)

	Pre-tax Amount			Tax (Expense) Benefit			After-tax Amount
2017
Foreign currency translation adjustments	$	24.5		$	-		$	24.5
Derivative (loss) gain, net		(0.8	)		0.5			(0.3	)
Pension and postretirement adjustments		50.4			(16.7	)		33.7
Total other comprehensive income (loss)	$	74.1		$	(16.2	)	$	57.9

	Pre-tax Amount			Tax Benefit			After-tax Amount
2016
Foreign currency translation adjustments	$	(33.2	)	$	-		$	(33.2	)
Derivative gain (loss), net		11.9			(4.4	)		7.5
Pension and postretirement adjustments		75.7			(26.4	)		49.3
Total other comprehensive income (loss)	$	54.4		$	(30.8	)	$	23.6

The following table summarizes the activity, by component, related to the change in AOCI for December 31, 2018 and 2017:

	Foreign Currency Translation Adjustments ⁽¹⁾			Derivative (Loss) Gain ⁽¹⁾			Pension and Postretirement Adjustments ⁽¹⁾			Total Accumulated Other Comprehensive (Loss) ⁽¹⁾
Balance, December 31, 2016	$	(71.6	)	$	3.8		$	(336.0	)	$	(403.8	)
Other comprehensive income (loss) income before reclassifications, net of tax expense (benefit) of $ -, $0.8, ($3.6), and ($2.8)		24.5			(0.7	)		9.3			33.1
Amounts reclassified from accumulated other comprehensive income		-			0.4			24.4			24.8
Net current period other comprehensive income (loss)		24.5			(0.3	)		33.7			57.9
Balance, December 31, 2017		(47.1	)		3.5			(302.3	)		(345.9	)
Impact of ASU 2018-02 adoption		-			0.7			(55.0	)		(54.3	)
Other comprehensive (loss) income before reclassifications, net of tax expense of $ -, $0.6, $11.3, and $11.9		(27.6	)		-			(44.7	)		(72.3	)
Amounts reclassified from accumulated other comprehensive income		-			1.1			11.8			12.9
Net current period other comprehensive income (loss)		(27.6	)		1.1			(32.9	)		(59.4	)
Balance, December 31, 2018	$	(74.7	)	$	5.3		$	(390.2	)	$	(459.6	)

⁽¹⁾	Amounts are net of tax

The amounts reclassified from AOCI and the affected line item of the Consolidated Statement of Earnings and Comprehensive Income are presented in the table below.

	Amounts Reclassified from Accumulated Other Comprehensive (Loss)(1)						Affected Line Item in the Consolidated Statement of Earnings and Comprehensive Income
	2018			2017
Derivative Adjustments:
Natural gas commodity contracts	$	(0.1	)	$	(0.3	)	Cost of goods sold
Foreign exchange contracts - purchases		-			0.1		Cost of goods sold
Foreign exchange contracts - sales		-			(0.1	)	Net sales
Interest rate swap contracts		1.6			0.9		Interest expense
Total income, before tax		1.5			0.6
Tax impact		(0.4	)		(0.2	)	Income tax expense
Total income net of tax		1.1			0.4

Pension and Postretirement Adjustments:
Prior service cost amortization		(0.1	)		1.5		Other non-operating (income) expense
Amortization of net actuarial loss		14.9			15.2		Other non-operating (income) expense
Partial settlement		-			20.8		Other non-operating (income) expense
Total expense before tax		14.8			37.5
Tax impact		(3.0	)		(13.1	)	Income tax expense
Total expense, net of tax		11.8			24.4
Total reclassifications for the period	$	12.9		$	24.8

(1) Includes activity from discontinued operations