SHAREHOLDERS’ EQUITY

12 Months Ended

Dec. 31, 2020

NOTE 16. SHAREHOLDERS’ EQUITY


ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	2020		2019		2018
Beginning balance	$	61	$	(39)	$	(102)
Other comprehensive income (loss) (OCI) before reclassifications – net of deferred taxes of $10, $32 and $41(a)	55		141		87
Reclassifications from OCI – net of deferred taxes of $(14), $(11) and $(6)	(56)		(42)		(23)
Other comprehensive income (loss)	(1)		100		64
Less OCI attributable to noncontrolling interests	—		—		—
Investment securities ending balance	$	60	$	61	$	(39)

Beginning balance	$	(4,818)	$	(6,134)	$	(4,661)
OCI before reclassifications – net of deferred taxes of $(25), $(98) and $29	(255)		41		(2,076)
Reclassifications from OCI – net of deferred taxes of $0, $(9) and $89(b)(c)	691		1,234		412
Other comprehensive income (loss)	435		1,275		(1,664)
Less OCI attributable to noncontrolling interests	2		(40)		(192)
Currency translation adjustments ending balance	$	(4,386)	$	(4,818)	$	(6,134)

Beginning balance	$	49	$	13	$	62
OCI before reclassifications – net of deferred taxes of $11, $6 and $(26)	(94)		(21)		(149)
Reclassifications from OCI – net of deferred taxes of $(11), $2 and $4(b)	17		58		98
Other comprehensive income (loss)	(77)		37		(51)
Less OCI attributable to noncontrolling interests	—		2		(2)
Cash flow hedges ending balance	$	(28)	$	49	$	13

Beginning balance	$	(7,024)	$	(8,254)	$	(9,702)
OCI before reclassifications – net of deferred taxes of $(283), $(418) and $115	(1,256)		(2,097)		71
Reclassifications from OCI – net of deferred taxes of $805, $915 and $2,610 (b)(c)	2,888		3,325		1,345
Other comprehensive income (loss)	1,632		1,228		1,416
Less OCI attributable to noncontrolling interests	4		(2)		(32)
Benefit plans ending balance	$	(5,395)	$	(7,024)	$	(8,254)

Accumulated other comprehensive income (loss) at December 31	$	(9,749)	$	(11,732)	$	(14,414)

(a) Included adjustments of $(1,979) million, $(2,693) million and $1,825 million in 2020, 2019 and 2018, respectively, related to 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 security gains been realized. See Note 12 for further information.

(b) The total reclassification from AOCI included $836 million, including currency translation of $688 million, net of taxes, in 2020, related to the sale of our BioPharma business within our Healthcare segment.

(c) Currency translation and benefit plan gains and losses included $1,343 million, including currency translation of $1,066 million, net of taxes, in 2019 earnings (loss) from discontinued operations related to deconsolidation of Baker Hughes.

In 2016, we issued $5,694 million of GE Series D preferred stock, in addition to $245 million of existing GE Series A, B and C preferred stock, which are also outstanding. The total carrying value of GE Industrial preferred stock at December 31, 2020 was $5,918 million and will increase to $5,940 million by the respective call dates through periodic accretion. Dividends on GE Industrial preferred stock are payable semi-annually in June and December and accretion is recorded on a quarterly basis. Dividends on GE Industrial preferred stock totaled $474 million, including cash dividends of $295 million, $460 million, including cash dividends of $295 million, and $447 million, including cash dividends of $295 million, for the years ended December 31, 2020, 2019 and 2018, respectively. On January 21, 2021, the GE Series D preferred stock became callable and its dividends converted from 5% fixed rate to 3-month LIBOR plus 3.33%. As of the filing date of this Form 10-K for the year ended December 31, 2020, the GE Series D preferred stock has not been called.

In conjunction with the 2016 exchange of GE Capital preferred stock into GE preferred stock, GE Capital issued preferred stock to GE Industrial for which the amount and terms mirrored the GE Industrial external preferred stock. In 2018, GE Capital and GE Industrial exchanged the existing Series D preferred stock issued to GE Industrial for new Series D preferred stock, which is mandatorily convertible into GE Capital common stock on January 21, 2021. In the first quarter of 2021, GE Capital and GE Industrial also agreed to retire the Series A, B and C GE Capital preferred stock effective on the Series D conversion date of January 21, 2021. As a result of these actions, effective January 21, 2021, there is no remaining preferred stock between GE Industrial and GE Capital, and accordingly GE Capital will no longer pay preferred dividends to GE Industrial and all preferred stock dividend costs have become a GE Industrial obligation effective January 21, 2021. The exchange of GE Capital Series D preferred stock has no impact on the GE Series D preferred stock, which remains callable for $5,694 million effective on January 21, 2021 or thereafter on dividend payment dates. Similarly, there were no changes to the GE Series A, B or C preferred stock, which become callable at various dates in 2022 and 2023.

GE has 50 million authorized shares of preferred stock ($1.00 par value), of which 5,939,875 shares are outstanding as of December 31, 2020, 2019 and 2018. GE's authorized common stock consists of 13,200 million shares having a par value of $0.06 each, with 11,694 million shares issued. To facilitate settlement of employee compensation programs, we repurchased shares of 0.5 million and 1.1 million, for a total of $15.3 million and $9.6 million for the years ended December 31, 2020 and 2019, respectively.

Noncontrolling interests in equity of consolidated affiliates amounted to $1,522 million and $1,545 million at December 31, 2020 and 2019, respectively. Net earnings (loss) attributable to noncontrolling interests were $(33) million, $33 million and $203 million in 2020, 2019 and 2018, respectively. Dividends attributable to noncontrolling interests were $(16) million, $(331) million and $(362) million in 2020, 2019 and 2018, respectively.Redeemable noncontrolling interests presented in All other liabilities in our consolidated Statement of Financial Position include common shares issued by our affiliates that are redeemable at the option of the holder of those interests and amounted to $487 million and $439 million as of December 31, 2020 and 2019, respectively. Net earnings (loss) attributable to redeemable noncontrolling interests was $(125) million, $33 million and $(291) million for the years ended December 31, 2020, 2019 and 2018, respectively.