Shareholders' Equity

12 Months Ended

Dec. 31, 2015

Equity [Abstract]

Shareholders' Equity

Shareholders' Equity

During the fourth and third quarters of 2015, we declared a cash dividend on our common stock of $0.375 per share which was paid in the first quarter of 2016 and fourth quarter of 2015, respectively. We also declared and paid a cash dividend on our common stock of $0.30 per share during the first and second quarters of 2015.

During the fourth and third quarters of 2014, we declared a cash dividend on our common stock of $0.30 per share which was paid in the first quarter of 2015 and fourth quarter of 2014, respectively. We also declared and paid a cash dividend on our common stock of $0.25 per share during the first and second quarters of 2014. During the first quarter of 2014, we also paid a cash dividend on our common stock of $0.25 per share which was declared during the fourth quarter of 2013.

In October 2015, our board of directors authorized a common stock repurchase program for up to $500 million. The timing and number of shares purchased will depend on a variety of factors including price and market conditions.  Subsequently, in 2015, we executed an agreement with an investment bank to purchase a total of $200 million, of the $500 million authorized amount, of our common stock under an accelerated stock repurchase (ASR) transaction. Under the terms of the ASR agreement, on October 23, 2015, we received 1.6 million shares of our common stock to be repurchased based on current market prices in exchange for a prepayment of $200 million. The ASR transaction was settled on November 30, 2015 and an additional 0.5 million shares were delivered to us. In total, we repurchased 2.1 million shares at an average price of $95.09 per share. The final number of shares repurchased was determined upon settlement based on the average of the daily volume-weighted average prices of our common stock during the term of the transaction, less a discount. The initial shares received upon prepayment and additional shares received at settlement were recorded within Shareholders’ equity. Future stock repurchase transactions could include open market purchases or additional accelerated share repurchases. We expect to complete the program by the end of 2016.

During February 2016, we repurchased an additional 2.1 million shares for a total of $150.0 million in open market transactions resulting in $150 million available for future stock repurchases.

During the fourth quarter of 2014, we repurchased from A. Wilhelmsen AS, our largest shareholder, 3.5 million shares of our common stock directly from them in a private transaction at $67.45 per share, which was equal to the price paid by a third-party financial institution for the simultaneous purchase of an additional 3.5 million shares from A. Wilhelmsen AS. Total consideration paid to repurchase such shares was approximately $236.1 million and was recorded within Shareholders' equity as a component of treasury stock.