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EQUITY
 9 Months Ended
Sep. 30, 2016
EQUITY  
EQUITY

11. EQUITY

Shares Outstanding

The following table presents a rollforward of outstanding shares:

CommonTreasuryCommon Stock
Stock IssuedStockOutstanding
Nine Months Ended September 30, 2016
Shares, beginning of year1,906,671,492(712,754,875)1,193,916,617
Shares issued-2,054,0432,054,043
Shares repurchased-(153,082,104)(153,082,104)
Shares, end of period1,906,671,492(863,782,936)1,042,888,556

Dividends

Payment of future dividends to our shareholders and repurchases of AIG Common Stock depends in part on the regulatory framework that we are currently subject to and that will ultimately be applicable to us, including as a nonbank systemically important financial institution under the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) and a global systemically important insurer. In addition, dividends are payable on AIG Common Stock only when, as and if declared by our Board of Directors in its discretion, from funds legally available for this purpose. In considering whether to pay a dividend or purchase shares of AIG Common Stock, our Board of Directors considers a number of factors, including, but not limited to: the capital resources available to support our insurance operations and business strategies, AIG’s funding capacity and capital resources in comparison to internal benchmarks, expectations for capital generation, rating agency expectations for capital, regulatory standards for capital and capital distributions, and such other factors as our Board of Directors may deem relevant.

On March 28, 2016, we paid a dividend of $0.32 per share on AIG Common Stock to shareholders of record on March 14, 2016. On June 27, 2016, we paid a dividend of $0.32 per share on AIG Common Stock to shareholders of record on June 13, 2016. On September 29, 2016, we paid a dividend of $0.32 per share on AIG Common Stock to shareholders of record on September 15, 2016.

See Note 18 to the Consolidated Financial Statements in the 2015 Annual Report for a discussion of restrictions on payments of dividends to AIG Parent by its subsidiaries.

Repurchase of AIG Common Stock

Our Board of Directors has authorized the repurchase of shares of AIG Common Stock through a series of actions. On August 2, 2016, our Board of Directors authorized an additional increase of $3.0 billion to its previous share repurchase authorization. As of September 30, 2016, approximately $2.4 billion remained under our share repurchase authorization. Shares may be repurchased from time to time in the open market, private purchases, through forward, derivative, accelerated repurchase or automatic repurchase transactions or otherwise (including through the purchase of warrants). Certain of our share repurchases have been and may from time to time be effected through Exchange Act Rule 10b5-1 repurchase plans.

We repurchased approximately 153 million shares of AIG Common Stock in the nine-month period ended September 30, 2016 for an aggregate purchase price of approximately $8.5 billion, and we repurchased 15 million warrants to purchase shares of AIG Common Stock for an aggregate purchase price of $263 million.

The timing of any future repurchases will depend on market conditions, our financial condition, results of operations, liquidity and other factors.

Accumulated Other Comprehensive Income

The following table presents a rollforward of Accumulated other comprehensive income:

Unrealized Appreciation (Depreciation) of Fixed Maturity Investments on Which Other-Than- Temporary Credit Impairments Were Taken
Unrealized Appreciation (Depreciation) of All Other InvestmentsForeign Currency Translation AdjustmentsRetirement Plan Liabilities Adjustment
(in millions)Total
Balance, December 31, 2015, net of tax$696$5,566$(2,879)$(846)$2,537
Change in unrealized appreciation (depreciation) of investments(318)10,873--10,555
Change in deferred policy acquisition costs adjustment and other*(40)(887)--(927)
Change in future policy benefits-(2,099)--(2,099)
Change in foreign currency translation adjustments--179-179
Change in net actuarial loss---1313
Change in prior service credit---(20)(20)
Change in deferred tax asset (liability)248(1,585)1533(1,181)
Total other comprehensive income (loss)(110)6,302332(4)6,520
Noncontrolling interests-----
Balance, September 30, 2016, net of tax$586$11,868$(2,547)$(850)$9,057
Balance, December 31, 2014, net of tax$1,043$12,327$(1,784)$(969)$10,617
Change in unrealized depreciation of investments(315)(6,372)--(6,687)
Change in deferred policy acquisition costs adjustment and other-763--763
Change in future policy benefits92807--899
Change in foreign currency translation adjustments--(901)-(901)
Change in net actuarial loss---417417
Change in prior service credit---(210)(210)
Change in deferred tax asset (liability)541,493167(59)1,655
Total other comprehensive income (loss)(169)(3,309)(734)148(4,064)
Noncontrolling interests--(4)-(4)
Balance, September 30, 2015, net of tax$874$9,018$(2,514)$(821)$6,557

* Includes net unrealized gains attributable to businesses held for sale.

The following table presents the other comprehensive income reclassification adjustments for the three-month periods ended September 30, 2016 and 2015, respectively:

Unrealized Appreciation (Depreciation) of Fixed Maturity Investments on Which Other-Than- Temporary Credit Impairments Were Taken
Unrealized Appreciation (Depreciation) of All Other InvestmentsForeign Currency Translation AdjustmentsRetirement Plan Liabilities Adjustment
(in millions)Total
Three Months Ended September 30, 2016
Unrealized change arising during period$147$816$21$(8)$976
Less: Reclassification adjustments
included in net income6163-(3)166
Total other comprehensive income,
before income tax expense (benefit)14165321(5)810
Less: Income tax expense (benefit)(76)187(90)(9)12
Total other comprehensive income,
net of income tax expense (benefit)$217$466$111$4$798
Three Months Ended September 30, 2015
Unrealized change arising during period$(98)$(1,275)$(217)$303$(1,287)
Less: Reclassification adjustments
included in net income13(17)-164160
Total other comprehensive income (loss),
before income tax expense (benefit)(111)(1,258)(217)139(1,447)
Less: Income tax expense (benefit)(50)(401)2147(383)
Total other comprehensive income (loss),
net of income tax expense (benefit)$(61)$(857)$(238)$92$(1,064)
Nine Months Ended September 30, 2016
Unrealized change arising during period$(252)$8,733$179$(18)$8,642
Less: Reclassification adjustments
included in net income106846-(11)941
Total other comprehensive income (loss),
before income tax expense (benefit)(358)7,887179(7)7,701
Less: Income tax expense (benefit)(248)1,585(153)(3)1,181
Total other comprehensive income (loss),
net of income tax expense (benefit)$(110)$6,302$332$(4)$6,520
Nine Months Ended September 30, 2015
Unrealized change arising during period$(155)$(4,243)$(901)$324$(4,975)
Less: Reclassification adjustments
included in net income68559-117744
Total other comprehensive income (loss),
before income tax expense (benefit)(223)(4,802)(901)207(5,719)
Less: Income tax expense (benefit)(54)(1,493)(167)59(1,655)
Total other comprehensive income (loss),
net of income tax expense (benefit)$(169)$(3,309)$(734)$148$(4,064)

The following table presents the effect of the reclassification of significant items out of Accumulated other comprehensive income on the respective line items in the Condensed Consolidated Statements of Income:

Amount Reclassified from Accumulated Other Comprehensive IncomeAffected Line Item in the Condensed Consolidated Statements of Income
Three Months Ended September 30,
(in millions) 20162015
Unrealized appreciation (depreciation) of fixed maturity investments on which other-than-temporary credit impairments were taken
Investments$6$13Other realized capital gains
Total613
Unrealized appreciation (depreciation) of all other investments
Investments182(15)Other realized capital gains
Deferred acquisition costs adjustment(19)(2)Amortization of deferred policy acquisition costs
Future policy benefits--Policyholder benefits and losses incurred
Total163(17)
Change in retirement plan liabilities adjustment
Prior - service credit4187*
Actuarial losses(7)(23)*
Total(3)164
Total reclassifications for the period$166$160
Amount Reclassified from Accumulated Other Comprehensive IncomeAffected Line Item in the Condensed Consolidated Statements of Income
Nine Months Ended September 30,
(in millions) 20162015
Unrealized appreciation (depreciation) of fixed maturity investments on which other-than-temporary credit impairments were taken
Investments$106$68Other realized capital gains
Total10668
Unrealized appreciation (depreciation) of all other investments
Investments843609Other realized capital gains
Deferred acquisition costs adjustment3(67)Amortization of deferred policy acquisition costs
Future policy benefits-17Policyholder benefits and losses incurred
Total846559
Change in retirement plan liabilities adjustment
Prior - service credit13210*
Actuarial losses(24)(93)*
Total(11)117-
Total reclassifications for the period$941$744-

* These Accumulated other comprehensive income components are included in the computation of net periodic pension cost. See Note 13 to the Condensed Consolidated Financial Statements.