Note 19.

Shareholders’ Equity

Common Equity

On April 17, 2017, the Board of Directors of Group Inc. (Board) increased the firm’s quarterly dividend to $0.75 per common share from $0.65 per common share. The dividend will be paid on June 29, 2017 to common shareholders of record on June 1, 2017.

The firm’s share repurchase program is intended to help maintain the appropriate level of common equity. The share repurchase program is effected primarily through regular open-market purchases (which may include repurchase plans designed to comply with Rule 10b5-1), the amounts and timing of which are determined primarily by the firm’s current and projected capital position, but which may also be influenced by general market conditions and the prevailing price and trading volumes of the firm’s common stock. Prior to repurchasing common stock, the firm must receive confirmation that the Federal Reserve Board does not object to such capital action.

The table below presents the amount of common stock repurchased by the firm under the share repurchase program.


in millions, except per share amounts			Three Months Ended March 2017
Common share repurchases			6.2

Average cost per share			$243.22

Total cost of common share repurchases			$ 1,500

Pursuant to the terms of certain share-based compensation plans, employees may remit shares to the firm or the firm may cancel RSUs or stock options to satisfy minimum statutory employee tax withholding requirements and the exercise price of stock options. Under these plans, during the three months ended March 2017, 12,136 shares were remitted with a total value of $3 million, and the firm cancelled 5.7 million of RSUs with a total value of $1.32 billion and 2.6 million of stock options with a total value of $632 million.

Preferred Equity

The tables below present details about the perpetual preferred stock issued and outstanding as of March 2017.


Series	Shares Authorized	Shares Issued	Shares Outstanding	Depositary Shares Per Share
A	50,000	30,000	29,999	1,000

B	50,000	32,000	32,000	1,000

C	25,000	8,000	8,000	1,000

D	60,000	54,000	53,999	1,000

E	17,500	7,667	7,667	N/A

F	5,000	1,615	1,615	N/A

I	34,500	34,000	34,000	1,000

J	46,000	40,000	40,000	1,000

K	32,200	28,000	28,000	1,000

L	52,000	52,000	52,000	25

M	80,000	80,000	80,000	25

N	31,050	27,000	27,000	1,000

O	26,000	26,000	26,000	25
Total	509,250	420,282	420,280

Series

Earliest Redemption Date

Liquidation
Preference

Redemption
Value
($ in millions)

Currently redeemable

$ 25,000

$ 750

Currently redeemable

$ 25,000

800

Currently redeemable

$ 25,000

200

Currently redeemable

$ 25,000

1,350

Currently redeemable

$100,000

767

Currently redeemable

$100,000

161

November 10, 2017

$ 25,000

850

May 10, 2023

$ 25,000

1,000

May 10, 2024

$ 25,000

700

May 10, 2019

$ 25,000

1,300

May 10, 2020

$ 25,000

2,000

May 10, 2021

$ 25,000

675

November 10, 2026

$ 25,000

650

Total

$11,203

In the tables above:

•

All shares have a par value of $0.01 per share and, where applicable, each share is represented by the specified number of depositary shares.

•

The earliest redemption date represents the date on which each share of non-cumulative Preferred Stock is redeemable at the firm’s option.

•

Prior to redeeming preferred stock, the firm must receive confirmation that the Federal Reserve Board does not object to such capital action.

•

The redemption price per share for Series A through F Preferred Stock is the liquidation preference plus declared and unpaid dividends. The redemption price per share for Series I through O Preferred Stock is the liquidation preference plus accrued and unpaid dividends. Each share of non-cumulative Series E and Series F Preferred Stock issued and outstanding is redeemable at the firm’s option, subject to certain covenant restrictions governing the firm’s ability to redeem the preferred stock without issuing common stock or other instruments with equity-like characteristics. See Note 16 for information about the replacement capital covenants applicable to the Series E and Series F Preferred Stock.

•

All series of preferred stock are pari passu and have a preference over the firm’s common stock on liquidation.

•

Dividends on each series of preferred stock, excluding Series L, Series M and Series O Preferred Stock, if declared, are payable quarterly in arrears. Dividends on Series L, Series M and Series O Preferred Stock, if declared, are payable semi-annually in arrears from the issuance date to, but excluding, May 10, 2019, May 10, 2020 and November 10, 2026, respectively, and quarterly thereafter.

•

The firm’s ability to declare or pay dividends on, or purchase, redeem or otherwise acquire, its common stock is subject to certain restrictions in the event that the firm fails to pay or set aside full dividends on the preferred stock for the latest completed dividend period.

During 2016, the firm delivered a par amount of $1.32 billion (fair value of $1.04 billion, including $505 million of fair value delivered during the first quarter of 2016) of APEX to the APEX Trusts in exchange for 9,833 shares of Series E Preferred Stock and 3,385 shares of Series F Preferred Stock for a total redemption value of $1.32 billion (net carrying value of $1.31 billion, including $666 million of net carrying value redeemed during the first quarter of 2016). Following the exchange, shares of Series E and Series F Preferred Stock were cancelled. The difference between the fair value of the APEX and the net carrying value of the preferred stock at the time of cancellation was $266 million for 2016 (including $161 million for the first quarter of 2016), and was recorded in “Preferred stock dividends,” along with preferred dividends declared on the firm’s preferred stock. See Note 16 for further information about APEX.

The table below presents the dividend rates of the firm’s perpetual preferred stock as of March 2017.


Series			Dividend Rate
A			3 month LIBOR + 0.75%, with floor of 3.75% per annum

B			6.20% per annum

C			3 month LIBOR + 0.75%, with floor of 4.00% per annum

D			3 month LIBOR + 0.67%, with floor of 4.00% per annum

E			3 month LIBOR + 0.77%, with floor of 4.00% per annum

F			3 month LIBOR + 0.77%, with floor of 4.00% per annum

I			5.95% per annum

J			5.50% per annum to, but excluding, May 10, 2023; 3 month LIBOR + 3.64% per annum thereafter

K			6.375% per annum to, but excluding, May 10, 2024; 3 month LIBOR + 3.55% per annum thereafter

L			5.70% per annum to, but excluding, May 10, 2019; 3 month LIBOR + 3.884% per annum thereafter

M			5.375% per annum to, but excluding, May 10, 2020; 3 month LIBOR + 3.922% per annum thereafter

N			6.30% per annum

O			5.30% per annum to, but excluding, November 10, 2026; 3 month LIBOR + 3.834% per annum thereafter

The table below presents preferred dividends declared on the firm’s preferred stock.


	Three Months Ended March
	2017			2016
Series		*per share*	*$ in millions*		per share	$ in millions
A		$ 239.58	$ 7		$ 239.58	$ 7

B		$ 387.50	12		$ 387.50	12

C		$ 255.56	2		$ 255.56	2

D		$ 255.56	14		$ 255.56	14

E		$1,000.00	7		$1,011.11	18

F		$1,000.00	2		$1,011.11	5

I		$ 371.88	13		$ 371.88	13

J		$ 343.75	14		$ 343.75	14

K		$ 398.44	11		$ 398.44	11

N		$ 393.75	11		$ —	—
Total			$93			$96

Accumulated Other Comprehensive Loss

The table below presents accumulated other comprehensive loss, net of tax, by type.


$ in millions	Beginning balance		Other comprehensive income/(loss) adjustments, net of tax		Ending balance
As of March 2017
Currency translation	$ (647	)	$ (16	)	$ (663	)

Debt valuation adjustment	(239	)	(139	)	(378	)

Pension and postretirement liabilities	(330	)	1		(329	)
Total	$(1,216	)	$(154	)	$(1,370	)

As of December 2016
Currency translation	$ (587	)	$ (60	)	$ (647	)

Debt valuation adjustment	305		(544	)	(239	)

Pension and postretirement liabilities	(131	)	(199	)	(330	)
Total	$ (413	)	$(803	)	$(1,216	)

In the table above, the beginning balance of accumulated other comprehensive loss for December 2016 has been adjusted to reflect the cumulative effect of the change in accounting principle related to debt valuation adjustment, net of tax. See Note 3 for further information about the adoption of ASU No. 2016-01. See Note 8 for further information about the debt valuation adjustment.