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Shareholders' Equity
 9 Months Ended
Sep. 30, 2020
Text Block [Abstract]  
Shareholders' Equity
Note 19.
Shareholders’ Equity
Common Equity
As of both September 2020 and December 2019, the firm had 4.00 billion authorized shares of common stock and 200 million authorized shares of nonvoting common stock, each with a par value of $0.01 per share.
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
and accelerated share repurchases), the amounts and timing of which are determined primarily by the firm’s current and projected capital position, and capital deployment opportunities, but which may also be influenced by general market conditions and the prevailing price and trading volumes of the firm’s common stock. The firm suspended stock repurchases during the first quarter of 2020 and through the third quarter of 2020. Consistent with the FRB’s requirement for all large bank holding companies (BHCs), the firm has extended the suspension of stock repurchases through the fourth quarter of 2020.
The table below presents information about common stock repurchases.
 
   
September 2020
  
in millions, except per share amounts
  
 
Three Months
Ended
 
 
   
 
Nine Months
Ended
 
 
Common share repurchases
  
 
–
 
   
 
8.2
 
Average cost per share
  
 
$    –
 
   
 
$236.35
 
Total cost of common share repurchases
  
 
$    –
 
   
 
$  1,928
 
Pursuant to the terms of certain share-based compensation plans, employees may remit shares to the firm or the firm may cancel share-based awards to satisfy statutory employee tax withholding requirements. Under these plans, during the nine months ended September 2020, 3,476 shares were remitted with a total value of $0.9 million and the firm cancelled 3.4 million share-based awards with a total value of $828 million.
The table below presents common stock dividends declared.
 
    Three Months
Ended September		            Nine Months
Ended September		  
 
  
 
2020
 
      2019    
 
  
 
2020
 
      2019  
Dividends declared per common share
  
 
$1.25
 
      $1.25    
 
  
 
$3.75
 
      $2.90  
On October 13, 2020, the Board of Directors of Group Inc. declared a dividend of $1.25 per common share to be paid on December 30, 2020 to common shareholders of record on December 2, 2020.
Preferred Equity
The tables below present information about the perpetual preferred stock issued and outstanding as of September 2020.
 
Series
  
 
Shares
Authorized
 
 
   
 
Shares
Issued
 
 
   
 
Shares
Outstanding
 
 
   
 
Depositary Shares
Per Share
 
 
A
     50,000        30,000        29,999        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  
J
     46,000        40,000        40,000        1,000  
K
     32,200        28,000        28,000        1,000  
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  
P
     66,000        60,000        60,000        25  
Q
     20,000        20,000        20,000        25  
R
     24,000        24,000        24,000        25  
S
     14,000        14,000        14,000        25  
Total
  
 
496,750
 
   
 
420,282
 
   
 
420,280
 
   
 
 
 
Series
  
 
Earliest Redemption Date
 
   
 
Liquidation
Preference
 
 
   
 

 
Redemption
Value

($ in millions)
 
 

 
A
     Currently redeemable        $  25,000     
 
$    
 
750
 
C
     Currently redeemable        $  25,000     
 
200
 
D
     Currently redeemable        $  25,000     
 
1,350
 
E
     Currently redeemable        $100,000     
 
767
 
F
     Currently redeemable        $100,000     
 
161
 
J
     May 10, 2023        $  25,000     
 
1,000
 
K
     May 10, 2024        $  25,000     
 
700
 
M
     Currently redeemable        $  25,000     
 
2,000
 
N
     May 10, 2021        $  25,000     
 
675
 
O
     November 10, 2026        $  25,000     
 
650
 
P
     November 10, 2022        $  25,000     
 
1,500
 
Q
     August 10, 2024        $  25,000     
 
500
 
R
     February 10, 2025        $  25,000     
 
600
 
S
     February 10, 2025        $  25,000     
 
350
 
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 approval from the FRB.
 
•  
In January 2020, the firm issued 14,000 shares of Series S 4.40% Fixed-Rate Reset
Non-Cumulative
Preferred Stock (Series S Preferred Stock).
 
•  
The redemption price per share for Series A through F and Series Q through S Preferred Stock is the liquidation preference plus declared and unpaid dividends. The redemption price per share for Series J through P Preferred Stock is the liquidation preference plus accrued and unpaid dividends. Each share of Series E and Series F Preferred Stock 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 14 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.
 
•  
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.
In the first quarter of 2020, the firm redeemed the remaining 14,000 outstanding shares of its Series L 5.70%
Non-Cumulative
Preferred Stock (Series L Preferred Stock) with a redemption value of $350 million ($25,000 per share), plus accrued and unpaid dividends. The difference between the redemption value and net carrying value at the time of this redemption was $1 million, which was recorded as an addition to preferred stock dividends in 2020.
In 2019, the firm redeemed 38,000 shares of its outstanding Series L Preferred Stock with a redemption value of $950 million ($25,000 per share), plus accrued and unpaid dividends. In addition, in 2019, the firm redeemed the remaining 6,000 outstanding shares of its Series B 6.20%
Non-Cumulative
Preferred Stock (Series B Preferred Stock) with a redemption value of $150 million ($25,000 per share). The difference between the redemption value and net carrying value at the time of these redemptions was $9 million ($7 million of which was recorded during the nine months ended September 2019), which was recorded as an addition to preferred stock dividends in 2019.
The table below presents the dividend rates of perpetual preferred stock as of September 2020.
 
Series
  
Per Annum Dividend Rate
A
  
3 month LIBOR + 0.75%, with floor of 3.75%, payable quarterly
C
  
3 month LIBOR + 0.75%, with floor of 4.00%, payable quarterly
D
  
3 month LIBOR + 0.67%, with floor of 4.00%, payable quarterly
E
  
3 month LIBOR + 0.7675%, with floor of 4.00%, payable quarterly
F
  
3 month LIBOR + 0.77%, with floor of 4.00%, payable quarterly
J
  
5.50% to, but excluding, May 10, 2023;
3 month LIBOR + 3.64% thereafter, payable quarterly
K
  
6.375% to, but excluding, May 10, 2024;
3 month LIBOR + 3.55% thereafter, payable quarterly
M
  
3 month LIBOR + 3.922%, payable quarterly
N
  
6.30%, payable quarterly
O
  
5.30%, payable semi-annually, from issuance date to, but excluding,
November 10, 2026; 3 month LIBOR + 3.834%, payable quarterly, thereafter
P
  
5.00%, payable semi-annually, from issuance date to, but excluding,
November 10, 2022; 3 month LIBOR + 2.874%, payable quarterly, thereafter
Q
  
5.50%, payable semi-annually, from issuance date to, but excluding,
August 10, 2024; 5 year treasury rate + 3.623%, payable semi-annually, thereafter
R
  
4.95%, payable semi-annually, from issuance date to, but excluding,
February 10, 2025; 5 year treasury rate + 3.224%, payable semi-annually, thereafter
S
  
4.40%, payable semi-annually, from issuance date to, but excluding,
February 10, 2025; 5 year treasury rate + 2.85%, payable semi-annually thereafter
In the table above, dividends on each series of preferred stock are payable in arrears for the periods specified.
The table below presents preferred stock dividends declared.
 
   
2020
    
    
   2019  
Series
  
 
per share
 
   
 
$ in millions
 
  
 
  
 
per share
 
   
 
$ in millions
 
Three Months Ended September
 
       
A
  
 
$  
 
236.98
 
   
 
$    7
 
       $   244.79        $    7  
C
  
 
$  
 
252.78
 
   
 
2
 
       $   261.11        2  
D
  
 
$  
 
252.78
 
   
 
14
 
       $   261.11        14  
E
  
 
$1,022.22
 
   
 
8
 
       $1,022.22        8  
F
  
 
$1,022.22
 
   
 
2
 
       $1,022.22        2  
J
  
 
$  
 
343.75
 
   
 
13
 
       $   343.75        13  
K
  
 
$  
 
398.44
 
   
 
11
 
       $   398.44        11  
L
  
 
$            
 
–
 
   
 
–
 
       $   419.68        16  
M
  
 
$  
 
279.17
 
   
 
22
 
       $
  
           –		        –  
N
  
 
$  
 
393.75
 
   
 
11
 
       $   393.75        11  
Q
  
 
$  
 
687.50
 
   
 
14
 
       $
  
           –		        –  
R
  
 
$  
 
910.94
 
   
 
22
 
       $
  
           –		        –  
S
  
 
$  
 
586.67
 
   
 
8
 
  
 
     $
  
           –		        –  
Total
  
 
 
 
   
 
$134
 
  
 
  
 
 
 
      $  84  
 
Nine Months Ended September
 
       
A
  
 
$  
 
708.34
 
   
 
$  21
 
       $   708.34        $  21  
B
  
 
$            
 
–
 
   
 
–
 
       $   775.00        5  
C
  
 
$  
 
755.56
 
   
 
6
 
       $   755.55        6  
D
  
 
$  
 
755.56
 
   
 
41
 
       $   755.55        41  
E
  
 
$3,044.44
 
   
 
23
 
       $3,044.44        23  
F
  
 
$3,044.44
 
   
 
5
 
       $3,044.44        5  
J
  
 
$1,031.25
 
   
 
41
 
       $1,031.25        41  
K
  
 
$1,195.32
 
   
 
33
 
       $1,195.32        33  
L
  
 
$  
 
361.54
 
   
 
4
 
       $1,132.18        53  
M
  
 
$  
 
951.05
 
   
 
76
 
       $   671.88        54  
N
  
 
$1,181.25
 
   
 
32
 
       $1,181.25        32  
O
  
 
$  
 
662.50
 
   
 
17
 
       $   662.50        17  
P
  
 
$  
 
625.00
 
   
 
38
 
       $   625.00        38  
Q
  
 
$1,577.43
 
   
 
32
 
       $
  
           –		        –  
R
  
 
$  
 
910.94
 
   
 
22
 
       $
  
           –		        –  
S
  
 
$  
 
586.67
 
   
 
8
 
  
 
     $
  
           –		        –  
Total
  
 
 
 
   
 
$399
 
  
 
  
 
 
 
      $369  
On October 6, 2020, Group Inc. declared dividends of $239.58 per share of Series A Preferred Stock, $255.56 per share of Series C Preferred Stock, $255.56 per share of Series D Preferred Stock, $343.75 per share of Series J Preferred Stock, $398.44 per share of Series K Preferred Stock, $266.11 per share of Series M Preferred Stock, $393.75 per share of Series N Preferred Stock, $662.50 per share of Series O Preferred Stock and $625.00 per share of Series P Preferred Stock to be paid on November 10, 2020 to preferred shareholders of record on October 26, 2020. In addition, the firm declared dividends of $1,011.11 per share of Series E Preferred Stock and $1,011.11 per share of Series F Preferred Stock to be paid on December 1, 2020 to preferred shareholders of record on November 16, 2020.
Accumulated Other Comprehensive Income/(Loss)
The table below presents changes in the accumulated other comprehensive income/(loss), net of tax, by type.
 
$ in millions
     Beginning
balance		  
 		    


 		 Other
comprehensive
income/(loss)
adjustments,
net of tax		  
 
 
 
 		     Ending
balance		  
 
Three Months Ended September 2020
 
    
Currency translation
  
 
$  
 
(677
) 
  
 
$    
 
(13
) 
  
 
$(690
) 
Debt valuation adjustment
  
 
124
 
  
 
(268
) 
  
 
(144
) 
Pension and postretirement liabilities
  
 
(339
) 
  
 
(2
) 
  
 
(341
) 
Available-for-sale
securities
  
 
551
 
  
 
(11
) 
  
 
540
 
Total
  
 
$  
 
(341
) 
  
 
$  
 
(294
) 
  
 
$(635
) 
Three Months Ended September 2019
 
    
Currency translation
     $  
  
(610		 )      $       (9 )      $
  
(619		 ) 
Debt valuation adjustment
     (221 )      278       57  
Pension and postretirement liabilities
     (90 )      (5 )      (95 ) 
Available-for-sale
securities
     106       67       173  
Total
     $  
  
(815		 )      $    331       $
  
(484		 ) 
 
Nine Months Ended September 2020
      
Currency translation
  
 
$  
 
(616
) 
  
 
$    
 
(74
) 
  
 
$(690
) 
Debt valuation adjustment
  
 
(572
) 
  
 
428
 
  
 
(144
) 
Pension and postretirement liabilities
  
 
(342
) 
  
 
1
 
  
 
(341
) 
Available-for-sale
securities
  
 
46
 
  
 
494
 
  
 
540
 
Total
  
 
$(1,484
) 
  
 
$    849
 
  
 
$(635
) 
 
Nine Months Ended September 2019
      
Currency translation
     $  
  
(621		 )      $        2       $
  
(619		 ) 
Debt valuation adjustment
     1,507       (1,450 )      57  
Pension and postretirement liabilities
     (81 )      (14 )      (95 ) 
Available-for-sale
securities
     (112 )      285       173  
Total
     $    
 
693		       $(1,177 )      $
  
(484		 )