Equity and Comprehensive Income

12 Months Ended

Dec. 31, 2021


Note 14. Equity and Comprehensive Income

Equity

In December 2019, 46,100 preferred shares of a foreign affiliate of Verizon was sold for cash consideration of $51 million and is reflected in non-controlling interests. The preferred shares pay cumulative dividends of 8.25% per annum.

Common Stock

In February 2020, the Verizon Board of Directors authorized a share buyback program to repurchase up to 100 million shares of Verizon's common stock. The program will terminate when the aggregate number of shares purchased reaches 100 million, or a new share repurchase plan superseding the current plan is authorized, whichever is sooner. During the years ended December 31, 2021, 2020, and 2019, Verizon did not repurchase any shares of Verizon’s common stock under our current or previously authorized share buyback programs. At December 31, 2021, the maximum number of shares that could be purchased by or on behalf of Verizon under our share buyback program was 100 million.

Common stock has been used from time to time to satisfy some of the funding requirements of employee and shareholder plans. During the years ended December 31, 2021, 2020, and 2019, we issued 2.1 million, 2.3 million and 3.8 million common shares from treasury stock, respectively, which had an insignificant aggregate value.

In connection with our acquisition of Tracfone in November 2021, we issued approximately 57.6 million shares of Verizon common shares from treasury stock valued at approximately $3.0 billion. See Note 3 for additional information.

Accumulated Other Comprehensive Income (Loss)

Comprehensive income consists of net income and other gains and losses affecting equity that, under U.S. GAAP, are excluded from net income. Significant changes in the components of Other comprehensive loss, net of provision for income taxes are described below.

The changes in the balances of Accumulated other comprehensive income (loss) by component are as follows:


(dollars in millions)	Foreign currency translation adjustments		Unrealized gains (losses) on cash flow hedges		Unrealized gains (losses) on marketable securities		Defined benefit pension and postretirement plans		Total
Balance at January 1, 2019	$	(600)	$	(80)	$	20	$	3,030	$	2,370


Other comprehensive income (loss)	16		(699)		8		—		(675)
Amounts reclassified to net income	—		(37)		(1)		(659)		(697)
Net other comprehensive income (loss)	16		(736)		7		(659)		(1,372)
Balance at December 31, 2019	(584)		(816)		27		2,371		998
Other comprehensive income (loss)	180		953		7		—		1,140
Amounts reclassified to net income	—		(1,524)		(9)		(676)		(2,209)
Net other comprehensive income (loss)	180		(571)		(2)		(676)		(1,069)
Balance at December 31, 2020	(404)		(1,387)		25		1,695		(71)
Other comprehensive income (loss)	(141)		(1,318)		(8)		—		(1,467)
Amounts reclassified to net income	—		1,233		(1)		(621)		611
Net other comprehensive income (loss)	(141)		(85)		(9)		(621)		(856)
Balance at December 31, 2021	$	(545)	$	(1,472)	$	16	$	1,074	$	(927)

The amounts presented above in Net other comprehensive income (loss) are net of taxes. The amounts reclassified to net income related to unrealized gains (losses) on cash flow hedges in the table above are included in Other income (expense), net and Interest expense in our consolidated statements of income. See Note 9 for additional information. The amounts reclassified to net income related to unrealized gains (losses) on marketable securities in the table above are included in Other income (expense), net in our consolidated statements of income. The amounts reclassified to net income related to defined benefit pension and postretirement plans in the table above are included in Other income (expense), net in our consolidated statements of income. See Note 11 for additional information.