| Stockholders' Equity |
11. STOCKHOLDERS’ EQUITY
A summary of the changes in stockholders’ equity for the three months ended March 31, 2018 is as follows:
|
(In thousands) |
|
Stockholders’ Equity |
|
|
Balance, December 31, 2017 |
|
$ |
497,911 |
|
|
Net income |
|
|
(10,814 |
) |
|
Dividend payments |
|
|
(4,367 |
) |
|
Dividends accrued for unvested restricted stock units |
|
|
(2 |
) |
|
Net unrealized gains (losses) on available-for-sale securities (net of tax) |
|
|
(3,412 |
) |
|
Defined benefit plan adjustments (net of tax) |
|
|
62 |
|
|
Foreign currency translation adjustment |
|
|
842 |
|
|
Proceeds from stock option exercises |
|
|
369 |
|
|
Purchase of treasury stock |
|
|
(10,171 |
) |
|
Adoption of new accounting standards (see note 1) |
|
|
3,499 |
|
|
Stock-based compensation expense |
|
|
1,819 |
|
|
Balance, March 31, 2018 |
|
$ |
475,736 |
|
Stock Repurchase Program
Since 1997, our Board of Directors has approved multiple share repurchase programs that have authorized open market repurchase transactions of up to 50.0 million shares of our common stock, which will be implemented through open market or private purchases from time to time as conditions warrant. During the three months ended March 31, 2018, we repurchased 0.6 million shares of our common stock at an average price of $16.18 per share. As of March 31, 2018, we have the authority to purchase an additional 2.9 million shares of our common stock under the current plans approved by the Board of Directors.
Stock Option Exercises
We issued 24 thousand shares of treasury stock during the three months ended March 31, 2018 to accommodate employee stock option exercises. The stock options had exercise prices ranging from $15.29 to $18.97. We received proceeds totaling $0.4 million from the exercise of these stock options during the three months ended March 31, 2018.
Dividend Payments
During the three months ended March 31, 2018, we paid cash dividends as follows (in thousands except per share amounts):
|
Record Date |
|
Payment Date |
|
Per Share Amount |
|
|
Total Dividend Paid |
|
|
January 31, 2018 |
|
February 14, 2018 |
|
$ |
0.09 |
|
|
$ |
4,367 |
|
Other Comprehensive Income
Other comprehensive income consists of unrealized gains (losses) on available-for-sale securities; unrealized gains (losses) on cash flow hedges; reclassification adjustments for amounts included in net income related to impairments of available-for-sale securities, realized gains (losses) on available-for-sale securities, realized gains (losses) on cash flow hedges, and amortization of actuarial gains (losses) related to our defined benefit plan; defined benefit plan adjustments; and foreign currency translation adjustments.
The following tables present the changes in accumulated other comprehensive income, net of tax, by component for the three months ended March 31, 2018 and 2017:
|
|
|
Three Months Ended March 31, 2018 |
|
|
(In thousands) |
|
Unrealized
Gains
(Losses)
on
Available-
for-Sale
Securities |
|
|
Defined
Benefit Plan
Adjustments |
|
|
Foreign
Currency
Adjustments |
|
|
Total |
|
|
Beginning balance |
|
$ |
2,567 |
|
|
$ |
(4,286 |
) |
|
$ |
(1,576 |
) |
|
$ |
(3,295 |
) |
|
Other comprehensive income (loss) before
reclassifications |
|
|
(257 |
) |
|
|
— |
|
|
|
842 |
|
|
|
585 |
|
|
Amounts reclassified from accumulated other
comprehensive income |
|
|
65 |
|
|
|
62 |
|
|
|
— |
|
|
|
127 |
|
|
Amounts reclassified to retained earnings (1) |
|
|
(3,220 |
) |
|
|
— |
|
|
|
— |
|
|
|
(3,220 |
) |
|
Net current period other comprehensive income (loss) |
|
|
(3,412 |
) |
|
|
62 |
|
|
|
842 |
|
|
|
(2,508 |
) |
|
Ending balance |
|
$ |
(845 |
) |
|
$ |
(4,224 |
) |
|
$ |
(734 |
) |
|
$ |
(5,803 |
) |
|
|
(1) |
With the adoption of ASU 2016-01, the unrealized gains on our equity investments were reclassified to retained earnings. See note 1 for more information. |
|
|
|
Three Months Ended March 31, 2017 |
|
|
(In thousands) |
|
Unrealized
Gains
(Losses)
on
Available-
for-Sale
Securities |
|
|
Unrealized Gains (Losses) on Cash Flow Hedges |
|
|
Defined
Benefit Plan
Adjustments |
|
|
Foreign
Currency
Adjustments |
|
|
Total |
|
|
Beginning balance |
|
$ |
404 |
|
|
$ |
— |
|
|
$ |
(5,017 |
) |
|
$ |
(7,575 |
) |
|
$ |
(12,188 |
) |
|
Other comprehensive income (loss) before
reclassifications |
|
|
1,620 |
|
|
|
79 |
|
|
|
— |
|
|
|
1,242 |
|
|
|
2,941 |
|
|
Amounts reclassified from accumulated other
comprehensive income |
|
|
(285 |
) |
|
|
— |
|
|
|
55 |
|
|
|
— |
|
|
|
(230 |
) |
|
Net current period other comprehensive income (loss) |
|
|
1,335 |
|
|
|
79 |
|
|
|
55 |
|
|
|
1,242 |
|
|
|
2,711 |
|
|
Ending balance |
|
$ |
1,739 |
|
|
$ |
79 |
|
|
$ |
(4,962 |
) |
|
$ |
(6,333 |
) |
|
$ |
(9,477 |
) |
The following tables present the details of reclassifications out of accumulated other comprehensive income for the three months ended March 31, 2018 and 2017:
|
(In thousands) |
|
Three Months Ended March 31, 2018 |
|
Details about Accumulated Other Comprehensive Income Components |
|
Amount
Reclassified
from
Accumulated
Other
Comprehensive
Income |
|
|
Affected Line Item in the
Statement Where Net
Income Is Presented |
|
Unrealized gains (losses) on available-for-sale securities: |
|
|
|
|
|
|
|
Net realized gain on sales of securities |
|
$ |
(73 |
) |
|
Net realized investment gain |
|
Defined benefit plan adjustments – actuarial losses |
|
|
(90 |
) |
|
(1) |
|
Total reclassifications for the period, before tax |
|
|
(163 |
) |
|
|
|
Tax (expense) benefit |
|
|
36 |
|
|
|
|
Total reclassifications for the period, net of tax |
|
$ |
(127 |
) |
|
|
|
(1) |
Included in the computation of net periodic pension cost. See Note 5 of Notes to Consolidated Financial Statements. |
|
(In thousands) |
|
Three Months Ended March 31, 2017 |
|
Details about Accumulated Other Comprehensive Income Components |
|
Amount
Reclassified
from
Accumulated
Other
Comprehensive
Income |
|
|
Affected Line Item in the
Statement Where Net
Income Is Presented |
|
Unrealized gains (losses) on available-for-sale securities: |
|
|
|
|
|
|
|
Net realized gain on sales of securities |
|
$ |
572 |
|
|
Net realized investment gain |
|
Impairment expense |
|
|
(103 |
) |
|
Net realized investment gain |
|
Defined benefit plan adjustments – actuarial losses |
|
|
(80 |
) |
|
(1) |
|
Total reclassifications for the period, before tax |
|
|
389 |
|
|
|
|
Tax (expense) benefit |
|
|
(159 |
) |
|
|
|
Total reclassifications for the period, net of tax |
|
$ |
230 |
|
|
|
|
|
(1) |
Included in the computation of net periodic pension cost. See Note 5 of Notes to Consolidated Financial Statements. |
The following table presents the tax effects related to the change in each component of other comprehensive income for the three months ended March 31, 2018 and 2017:
|
|
|
Three Months Ended |
|
|
Three Months Ended |
|
|
|
|
March 31, 2018 |
|
|
March 31, 2017 |
|
|
(In thousands) |
|
Before-Tax
Amount |
|
|
Tax
(Expense)
Benefit |
|
|
Net-of-Tax
Amount |
|
|
Before-Tax
Amount |
|
|
Tax
(Expense)
Benefit |
|
|
Net-of-Tax
Amount |
|
|
Unrealized gains (losses) on available-for-sale
securities |
|
$ |
(347 |
) |
|
$ |
90 |
|
|
$ |
(257 |
) |
|
$ |
2,656 |
|
|
$ |
(1,036 |
) |
|
$ |
1,620 |
|
|
Unrealized gains (losses) on cash flow hedges |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
79 |
|
|
|
— |
|
|
|
79 |
|
|
Reclassification adjustment for amounts related to
available-for-sale investments included in net
income |
|
|
73 |
|
|
|
(8 |
) |
|
|
65 |
|
|
|
(469 |
) |
|
|
184 |
|
|
|
(285 |
) |
|
Reclassification adjustment for amounts reclassed
to retained earnings related to the adoption of
ASU 2016-01 |
|
|
(3,220 |
) |
|
|
— |
|
|
|
(3,220 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Reclassification adjustment for amounts related to
defined benefit plan adjustments included in net
income |
|
|
90 |
|
|
|
(28 |
) |
|
|
62 |
|
|
|
80 |
|
|
|
(25 |
) |
|
|
55 |
|
|
Foreign currency translation adjustment |
|
|
842 |
|
|
|
— |
|
|
|
842 |
|
|
|
1,242 |
|
|
|
— |
|
|
|
1,242 |
|
|
Total Other Comprehensive Income (Loss) |
|
$ |
(2,562 |
) |
|
$ |
54 |
|
|
$ |
(2,508 |
) |
|
$ |
3,588 |
|
|
$ |
(877 |
) |
|
$ |
2,711 |
|
|