Note 9—Stockholders' Equity

As-converted class A common stock. The following table⁽¹⁾ presents number of shares of each series and class and the number of shares of class A common stock on an as-converted basis:



	December 31, 2018					September 30, 2018
	Shares Outstanding	Conversion Rate Into Class A Common Stock		As-converted Class A Common Stock⁽²⁾		Shares Outstanding	Conversion Rate Into Class A Common Stock		As-converted Class A Common Stock⁽²⁾
	(in millions, except conversion rates)
UK&I preferred stock	2	12.9390		32	⁽³⁾	2	12.9550		32	⁽³⁾
Europe preferred stock	3	13.8860		44	⁽³⁾	3	13.8880		44	⁽³⁾
Class A common stock⁽⁴⁾	1,754	—		1,754		1,768	—		1,768
Class B common stock	245	1.6298	⁽⁵⁾	400		245	1.6298	⁽⁵⁾	400
Class C common stock	12	4.0000		47		12	4.0000		47
Total				2,277					2,291


⁽¹⁾	Figures in the table may not recalculate exactly due to rounding.


⁽²⁾	As-converted class A common stock is calculated based on unrounded numbers.


⁽³⁾	The reduction in equivalent number of shares of class A common stock was less than one million shares during the three months ended December 31, 2018.


⁽⁴⁾	Class A common stock shares outstanding reflect repurchases settled on or before December 31, 2018 and September 30, 2018.


⁽⁵⁾	The class B to class A common stock conversion rate is presented on a rounded basis. Conversion calculations for dividend payments are based on a conversion rate rounded to the tenth decimal.

Reduction in as-converted shares. Under the terms of the Europe retrospective responsibility plan, the Company is entitled to recover VE territory covered losses through periodic adjustments to the class A common stock conversion rates applicable to the UK&I and Europe preferred stock. The recovery has the same economic effect on earnings per share as repurchasing the Company’s class A common stock, because it reduces the UK&I and Europe preferred stock conversion rates and consequently, reduces the as-converted class A common stock share count.

The following table presents effective price per share and recovery of VE territory covered losses through conversion rate adjustments:



	Three Months Ended December 31, 2018				Twelve Months Ended September 30, 2018
	Preferred Stock
	UK&I		Europe		UK&I		Europe
	(in millions, except per share data)
Effective price per share⁽¹⁾	$	137.19	$	137.19	$	113.05	$	112.92
Recovery through conversion rate adjustment	$	5	$	1	$	35	$	21

⁽¹⁾

Effective price per share for the quarter is calculated using the volume-weighted average price of the Company’s class A common stock over a pricing period in accordance with the Company’s current certificates of designations for its series B and C convertible participating preferred stock. Effective price per share for the fiscal year is calculated using the weighted-average effective prices of the respective adjustments made during the year.

Common stock repurchases. The following table⁽¹⁾ presents share repurchases in the open market for the following periods:



	Three Months Ended December 31,
	2018		2017
	(in millions, except per share data)
Shares repurchased in the open market⁽²⁾	17		16
Average repurchase price per share⁽³⁾	$	138.11	$	110.24
Total cost	$	2,393	$	1,778

⁽¹⁾

Figures in the table may not recalculate exactly due to rounding. Shares repurchased in the open market reflect repurchases settled during the three months ended December 31, 2018 and 2017. These amounts include repurchases traded but not yet settled on or before September 30, 2018 and 2017, respectively, and exclude repurchases traded but not yet settled on or before December 31, 2018 and 2017, respectively.


⁽²⁾	All shares repurchased in the open market have been retired and constitute authorized but unissued shares.


⁽³⁾	Average repurchase price per share is calculated based on unrounded numbers.

As of December 31, 2018, the Company’s January 2018 share repurchase program had remaining authorized funds of $1.8 billion for share repurchase. All share repurchase programs authorized prior to January 2018 have been completed. In January 2019, the Company’s board of directors authorized an additional $8.5 billion share repurchase program.

Dividends. On January 29, 2019, the Company’s board of directors declared a quarterly cash dividend of $0.25 per share of class A common stock (determined in the case of class B and C common stock and UK&I and Europe preferred stock on an as-converted basis). The cash dividend will be paid on March 5, 2019, to all holders of record as of February 15, 2019. The Company declared and paid $572 million in dividends to holders of the Company’s common stock during the three months ended December 31, 2018.