NOTE 14. SHAREOWNERS’ EQUITY



(In millions)	2017			2016			2015

Preferred stock issued	$	6		$	6		$	6
Common stock issued	$	702		$	702		$	702
Accumulated other comprehensive income (loss)
Balance at January 1	$	(18,598	)	$	(16,529	)	$	(18,172	)
Other comprehensive income (loss) before reclassifications
Investment securities - net of deferred taxes of $(335), $84, $(270)(a)	(627)			170			(486)
Currency translation adjustments (CTA) - net of deferred taxes of $(537), $719, $1,348	866			(1,606)			(4,932)
Cash flow hedges - net of deferred taxes of $31, $(41), $(21)	171			(234)			(732)
Benefit plans - net of deferred taxes of $32, $(1,016), $1,506	550			(2,946)			2,768
Total	$	960		$	(4,616	)	$	(3,382	)
Reclassifications from other comprehensive income
Investment securities - net of deferred taxes of $(81), $30, $(36)(b)	(149		)	34			(67		)
Currency translation gains (losses) on dispositions - net of deferred taxes of $(543), $241, $(1,489)(b)	1,332			294			1,794
Cash flow hedges - net of deferred taxes of $(28), $37, $86(c)	(120		)	327			831
Benefit plans - net of deferred taxes of $1,111, $966, $1,260(d)	2,232			1,878			2,397
Total(e)	$	3,295		$	2,533		$	4,955
Other comprehensive income (loss)	4,255			(2,083		)	1,575
Less other comprehensive income (loss) attributable to noncontrolling interests	53			(14		)	(69		)
Other comprehensive income (loss), net, attributable to GE	$	4,202		$	(2,069	)	$	1,644
Balance at December 31	$	(14,396	)	$	(18,598	)	$	(16,529	)
Other capital
Balance at January 1	$	37,224		$	37,613		$	32,889
Gains (losses) on treasury stock dispositions and other(f)(g)	(53		)	(389		)	4,724
Balance at December 31	$	37,171		$	37,224		$	37,613
Retained earnings
Balance at January 1	$	139,532		$	140,020		$	155,333
Net earnings (loss) attributable to the Company	(5,786		)	8,831			(6,126		)
Dividends and other transactions with shareowners	(7,741		)	(9,054		)	(9,161		)
Redemption value adjustment on redeemable noncontrolling interests(h)	(322		)	(266		)	(25		)
Balance at December 31	$	125,682		$	139,532		$	140,020
Common stock held in treasury
Balance at January 1	$	(83,038	)	$	(63,539	)	$	(42,593	)
Purchases(i)(j)	(3,849		)	(22,073		)	(23,762		)
Dispositions	1,985			2,574			2,816
Balance at December 31	$	(84,902	)	$	(83,038	)	$	(63,539	)
Total equity
GE shareowners' equity balance	$	64,263		$	75,828		$	98,274
Noncontrolling interests balance	17,723			1,663			1,864
Total equity balance at December 31	$	81,986		$	77,491		$	100,138

(a)

Included adjustments of $(1,259) million, $(57) million and $611 million in 2017, 2016 and 2015, respectively, to deferred acquisition costs, present value of future profits, and investment contracts, insurance liabilities and annuity benefits in our run-off insurance operations to reflect the effects that would have been recognized had the related unrealized investment securities holding gains and losses been realized. See Note 11 for further information.


(b)	Recorded in total revenues and other income and income taxes in benefit (provision) for income taxes in the Statement of Earnings (Loss). Currency translation gains (losses) on dispositions included $483 million, $211 million and $1,730 million in 2017, 2016 and 2015, respectively, in earnings (loss) from discontinued operations, net of taxes.


(c)	Cash flow hedges primarily includes impact of foreign exchange contracts and gains (losses) on interest rate derivatives, primarily recorded in GE Capital revenue from services, interest and other financial charges and other costs and expenses. See Note 19 for further information.


(d)	Primarily includes amortization of actuarial gains (losses), amortization of prior service cost and curtailment gain (loss). These components are included in the computation of net periodic pension cost. See Note 12 for further information.


(e)	Included $784 million after-tax reclassification of AOCI to additional paid in capital as a result of recognition of noncontrolling interest in GE Oil & Gas as part of Baker Hughes transaction in 2017.


(f)	Included $4,949 million related to issuance of new preferred stock in exchange for existing GE Capital preferred stock in 2015.


(g)	Included $(126) million decrease in additional paid in capital in 2017 as a result of Baker Hughes transaction. See Note 8 for further information.


(h)	Amount of redemption value adjustment on redeemable noncontrolling interest shown net of deferred taxes.


(i)	Included $(20,383) million related to the split-off of Synchrony Financial from GE, where GE shares were exchanged for shares of Synchrony Financial in 2015.


(j)	Included $(11,370) million of GE shares purchased under accelerated share repurchase (ASR) agreements in 2016.

SHARES OF GE PREFERRED STOCK

On January 20, 2016, we issued $5,694 million of GE Series D preferred stock following an exchange offer for existing GE series A, B and C. The Series D preferred stock bear a fixed interest rate of 5.00% through January 21, 2021 and floating rate equal to three-month LIBOR plus 3.33% thereafter. The Series D preferred stock are callable on January 21, 2021. Following the exchange offer, $250 million of GE Series A, B and C preferred stock still remain outstanding with an initial average fixed dividend rate of 4.07%. The total carrying value of GE preferred stock at December 31, 2017 was $5,424 million and will increase to $5,944 million through periodic accretion. Dividends on GE preferred stock are payable semi-annually, in June and December and accretion is recorded on a quarterly basis. Dividends on GE preferred stock totaled $436 million, including cash dividends of $295 million, $656 million, including cash dividends of $332 million and $18 million, including cash dividends of $8 million, for the years ended December 31, 2017, 2016 and 2015, respectively.

In conjunction with the exchange of the GE Capital preferred stock into GE preferred stock and the exchange of Series A, B and C preferred stock into Series D preferred stock, GE Capital issued preferred stock to GE for which the amount and terms mirror the GE preferred stock held by external investors ($5,424 million carrying value at December 31, 2017).

GE has 50.0 million authorized shares of preferred stock ($1.00 par value). 5,939,874, 5,944,250 and 5,944,250 shares are outstanding as of December 31, 2017, 2016 and 2015, respectively.

SHARES OF GE COMMON STOCK

On April 10, 2015, we announced a new repurchase program of up to $50.0 billion in common stock, excluding the Synchrony Financial exchange we completed in 2015. Under our share purchase programs, on a book basis, we repurchased shares of 129.0 million, 725.8 million and 109.8 million for a total of $3,783 million, $22,005 million and $3,320 million for the years ended 2017, 2016, and 2015, respectively.

During 2016, we repurchased $11,370 million of our common stock under accelerated share repurchase (ASR) agreements.

On November 17, 2015, we completed the split-off of Synchrony Financial through which we acquired 671,366,809 shares of GE common stock from our shareholders in exchange for 705,270,833 shares of Synchrony Financial stock we held.

GE’s authorized common stock consists of 13,200,000,000 shares having a par value of $0.06 each.

Common shares issued and outstanding are summarized in the following table.



December 31 (In thousands)	2017	2016	2015

Issued	11,693,841	11,693,841	11,693,841
In treasury	(3,013,270)	(2,951,227)	(2,314,553)
Outstanding	8,680,571	8,742,614	9,379,288

NONCONTROLLING INTERESTS

Noncontrolling interests in equity of consolidated affiliates includes common shares in consolidated affiliates and preferred stock issued by our affiliates.

Prior to the fourth quarter of 2015, the preferred stock issued by GECC was classified as noncontrolling interests in our consolidated Statement of Financial Position, with dividends presented as noncontrolling interest in our consolidated Statement of Earnings (Loss). This preferred stock was converted to a corresponding series of preferred stock issued by GE and on January 20, 2016 a substantial majority of those shares were exchanged into GE Series D preferred stock. Effective with these changes, the preferred stock issued by GE is reflected in our shareowners’ equity and dividends are presented as a reduction of net earnings attributable to GE in the Statement of Earnings (Loss) (under the caption “Preferred stock dividends”).



CHANGES TO NONCONTROLLING INTERESTS

(In millions)	2017			2016			2015

Balance at January 1	$	1,663		$	1,864		$	8,674
Net earnings (loss)	(17		)	(46		)	377
GECC preferred stock(a)	—			—			(4,949		)
GECC preferred stock dividend	—			—			(311		)
Dividends	(222		)	(72		)	(43		)
Dispositions	(92		)	(232		)	189
Synchrony Financial(b)	—			—			(2,840		)
Other (including AOCI)(c)(d)(e)(f)(g)	16,390			150			767
Balance at December 31	$	17,723		$	1,663		$	1,864


(a)	In 2015, included $(4,949) million related to the issuance of GE preferred stock in exchange for existing GECC preferred stock. GE preferred stock is reflected in shareowners’ equity in the consolidated Statement of Financial Position.


(b)	Related to the split-off of Synchrony Financial from GE in 2015, where GE shares were exchanged for shares of Synchrony Financial; related to the Synchrony Financial IPO in 2014.


(c)	In 2017, included $16,462 million related to Baker Hughes transaction. See Note 8 for further information.


(d)	In 2016, included $155 million related to Arcam AB acquisition in our Aviation segment.


(e)	In 2016, included $(123) million for deconsolidation of investment funds managed by GE Asset Management (GEAM) upon the adoption of ASU 2015-2, Amendments to the Consolidation Analysis.


(f)	In 2015, included $695 million related to the Alstom acquisition.


(g)	Includes research & development partner funding arrangements, acquisitions and eliminations.

REDEEMABLE NONCONTROLLING INTERESTS

Redeemable noncontrolling interest presented in our Statement of Financial Position includes common shares issued by our affiliates that are redeemable at the option of the holder of those interests.

As part of the Alstom acquisition, in 2015 we formed three joint ventures in grid technology, renewable energy, and global nuclear and French steam power. Noncontrolling interests in these joint ventures hold certain redemption rights. Our retained earnings will be adjusted for subsequent changes in the redemption value of the noncontrolling interest in these entities to the extent that the redemption value exceeds the carrying amount of the noncontrolling interest.

Alstom holds redemption rights with respect to its interest in the grid technology and renewable energy joint ventures, which, if exercised, would require us to purchase all of their interest during September 2018 or September 2019. Alstom also holds similar redemption rights for the global nuclear and French steam power joint venture that are exercisable during the first quarter of 2021 or the first quarter of 2022. The redemption price would generally be equal to Alstom's initial investment plus annual accretion of 3% for the grid technology and renewable energy joint ventures and plus annual accretion of 2% for the nuclear and French steam power joint venture, with potential upside sharing based on an EBITDA multiple. Alstom also holds additional redemption rights in other limited circumstances as well as a call option to require GE to sell all of its interests in the renewable energy joint venture at the higher of fair value or Alstom's initial investment plus annual accretion of 3% during the month of May in the years 2017 through 2019 and also upon a decision to IPO the joint venture.

In January 2018, Alstom informed us that they intend to exercise their redemption rights with respect to the grid technology and renewable energy joint ventures in September 2018. The minimum price that GE would be required to pay, pursuant to the agreements, to purchase Alstom’s interest at that time would be a net amount of €1,828 million for the grid technology joint venture and €636 million for the renewable energy joint venture. Alstom has also informed us that they intend to exercise their redemption rights with respect to the global nuclear and French steam power joint venture in the first quarter of 2021.

GE holds a call option on Alstom's interest in the global nuclear and French steam power joint venture at the same amount as Alstom's redemption price in the event that Alstom exercises its put option in the grid technology or renewable energy joint ventures. GE also has call options on Alstom's interest in the three joint ventures in other limited circumstances. In addition, the French Government holds a preferred interest in the global nuclear and French steam power joint venture, giving it certain protective rights.



CHANGES TO REDEEMABLE NONCONTROLLING INTERESTS

(In millions)	2017			2016			2015

Balance at January 1	$	3,025		$	2,972		$	98
Net earnings (loss)	(254		)	(244		)	(46		)
Dividends	(62		)	(17		)	(11		)
Redemption value adjustment	353			266			25
Other(a)(b)	337			49			2,906
Balance at December 31(c)	$	3,399		$	3,025		$	2,972


(a)	In 2016, included $204 million related to the Concept Laser GmbH acquisition in our Aviation segment.


(b)	Includes impact of foreign currency changes.


(c)	Included $3,065 million, $2,709 million and $2,859 million related to Alstom joint ventures for the years ended December 31, 2017, 2016 and 2015. respectively.

OTHER

Dividends from GE Capital to GE totaled $4,105 million, including cash dividends of $4,016 million, $20,118 million and $4,311 million for the years ended December 31, 2017, 2016 and 2015, respectively.