Equity

9 Months Ended

Sep. 30, 2020

Stockholders' Equity Note [Abstract]

The following summarizes the changes in equity for the nine months ended September 30, 2020 (dollars in thousands):


	Common stock		Additional paid-in capital		Accumulated earnings less dividends		Accumulated other comprehensive loss		Total AvalonBay stockholder's equity		Noncontrolling interests		Total equity

Balance at December 31, 2019	$	1,406	$	10,736,733	$	282,913	$	(31,503)	$	10,989,549	$	649	$	10,990,198
Net income attributable to common stockholders	—		—		167,971		—		167,971		—		167,971
Loss on cash flow hedges, net	—		—		—		(17,603)		(17,603)		—		(17,603)
Cash flow hedge losses reclassified to earnings	—		—		—		1,949		1,949		—		1,949
Change in redemption value of redeemable noncontrolling interest	—		—		471		—		471		—		471
Noncontrolling interest distribution and income allocation	—		—		—		—		—		(35)		(35)
Dividends declared to common stockholders ($1.59 per share)	—		—		(224,083)		—		(224,083)		—		(224,083)
Issuance of common stock, net of withholdings	1		(12,492)		(1,616)		—		(14,107)		—		(14,107)
Amortization of deferred compensation	—		7,781		—		—		7,781		—		7,781
Balance at March 31, 2020	$	1,407	$	10,732,022	$	225,656	$	(47,157)	$	10,911,928	$	614	$	10,912,542
Net income attributable to common stockholders	—		—		170,828		—		170,828		—		170,828
Loss on cash flow hedges, net	—		—		—		(1,461)		(1,461)		—		(1,461)
Cash flow hedge losses reclassified to earnings	—		—		—		2,301		2,301		—		2,301
Change in redemption value of redeemable noncontrolling interest	—		—		(146)		—		(146)		—		(146)
Noncontrolling interest distribution and income allocation	—		—		—		—		—		1		1
Dividends declared to common stockholders ($1.59 per share)	—		—		(224,172)		—		(224,172)		—		(224,172)
Issuance of common stock, net of withholdings	—		1,050		138		—		1,188		—		1,188
Amortization of deferred compensation	—		9,724		—		—		9,724		—		9,724
Balance at June 30, 2020	$	1,407	$	10,742,796	$	172,304	$	(46,317)	$	10,870,190	$	615	$	10,870,805
Net income attributable to common stockholders	—		—		147,703		—		147,703		—		147,703
Gain on cash flow hedges, net	—		—		—		1,333		1,333		—		1,333
Cash flow hedge losses reclassified to earnings	—		—		—		2,367		2,367		—		2,367
Change in redemption value of redeemable noncontrolling interest	—		—		62		—		62		—		62
Noncontrolling interest distribution and income allocation	—		—		—		—		—		(17)		(17)
Dividends declared to common stockholders ($1.59 per share)	—		—		(222,694)		—		(222,694)		—		(222,694)
Issuance of common stock, net of withholdings	—		105		—		—		105		—		105
Repurchase of common stock, including repurchase costs	(9)		(69,779)		(67,670)		—		(137,458)		—		(137,458)
Amortization of deferred compensation	—		8,036		—		—		8,036		—		8,036
Balance at September 30, 2020	$	1,398	$	10,681,158	$	29,705	$	(42,617)	$	10,669,644	$	598	$	10,670,242

The following summarizes the changes in equity for the nine months ended September 30, 2019 (dollars in thousands):


	Common stock		Additional paid-in capital		Accumulated earnings less dividends		Accumulated other comprehensive loss		Total AvalonBay stockholder's equity		Noncontrolling interests		Total equity

Balance at December 31, 2018	$	1,385	$	10,306,588	$	350,777	$	(26,144)	$	10,632,606	$	—	$	10,632,606
Net income attributable to common stockholders	—		—		170,366		—		170,366		—		170,366
Loss on cash flow hedges, net	—		—		—		(7,231)		(7,231)		—		(7,231)
Cash flow hedge losses reclassified to earnings	—		—		—		1,468		1,468		—		1,468
Change in redemption value of redeemable noncontrolling interest	—		—		(224)		—		(224)		—		(224)
Dividends declared to common stockholders ($1.52 per share)	—		—		(212,166)		—		(212,166)		—		(212,166)
Issuance of common stock, net of withholdings	9		143,202		(1,892)		—		141,319		—		141,319
Amortization of deferred compensation	—		7,861		—		—		7,861		—		7,861
Balance at March 31, 2019	$	1,394	$	10,457,651	$	306,861	$	(31,907)	$	10,733,999	$	—	$	10,733,999
Net income attributable to common stockholders	—		—		168,281		—		168,281		—		168,281
Loss on cash flow hedges, net	—		—		—		(2,888)		(2,888)		—		(2,888)
Cash flow hedge losses reclassified to earnings	—		—		—		1,611		1,611		—		1,611
Change in redemption value of redeemable noncontrolling interest	—		—		(45)		—		(45)		—		(45)
Noncontrolling interests income allocation	—		—		—		—		—		530		530
Dividends declared to common stockholders ($1.52 per share)	—		—		(212,549)		—		(212,549)		—		(212,549)
Issuance of common stock, net of withholdings	3		50,803		—		—		50,806		—		50,806
Amortization of deferred compensation	—		10,785		—		—		10,785		—		10,785
Balance at June 30, 2019	$	1,397	$	10,519,239	$	262,548	$	(33,184)	$	10,750,000	$	530	$	10,750,530
Net income attributable to common stockholders	—		—		279,677		—		279,677		—		279,677
Loss on cash flow hedges, net	—		—		—		(13,644)		(13,644)		—		(13,644)
Cash flow hedge losses reclassified to earnings	—		—		—		1,746		1,746		—		1,746
Change in redemption value of redeemable noncontrolling interest	—		—		(113)		—		(113)		—		(113)
Noncontrolling interests income allocation	—		—		—		—		—		118		118
Dividends declared to common stockholders ($1.52 per share)	—		—		(212,526)		—		(212,526)		—		(212,526)
Issuance of common stock, net of withholdings	—		(454)		(263)		—		(717)		—		(717)
Amortization of deferred compensation	—		10,002		—		—		10,002		—		10,002
Balance at September 30, 2019	$	1,397	$	10,528,787	$	329,323	$	(45,082)	$	10,814,425	$	648	$	10,815,073

As of September 30, 2020 and December 31, 2019, the Company's charter had authorized for issuance a total of 280,000,000 shares of common stock and 50,000,000 shares of preferred stock.

During the nine months ended September 30, 2020, the Company:

i.issued 1,902 shares of common stock in connection with stock options exercised;

ii.issued 1,967 common shares through the Company's dividend reinvestment plan;

iii.issued 165,426 common shares in connection with restricted stock grants and the conversion of performance awards to restricted shares;

iv.withheld 73,103 common shares to satisfy employees' tax withholding and other liabilities;

v.issued 8,685 common shares through the Employee Stock Purchase Plan;

vi.canceled 7,421 common shares of restricted stock upon forfeiture; and

vii.purchased 912,733 common shares through the 2020 Stock Repurchase Program.

Any deferred compensation related to the Company's stock option, restricted stock and performance award grants during the nine months ended September 30, 2020 is not reflected on the accompanying Condensed Consolidated Balance Sheets as of September 30, 2020, and will not be reflected until recognized as compensation cost.

In July 2020, the Company’s Board of Directors voted to terminate the Company’s prior $500,000,000 Stock Repurchase Program (the "Amended 2005 Stock Repurchase Program") and approved a new stock repurchase program under which the Company may acquire shares of its common stock in open market or negotiated transactions up to an aggregate purchase price of $500,000,000 (the "2020 Stock Repurchase Program"). Purchases of common stock under the 2020 Stock Repurchase Program may be exercised from time to time in the Company’s discretion and in such amounts as market conditions warrant. The timing and actual number of shares repurchased will depend on a variety of factors including price, corporate and regulatory requirements, market conditions and other corporate liquidity requirements and priorities. The 2020 Stock Repurchase Program does not have an expiration date and may be suspended or terminated at any time without prior notice. During the three months ended September 30, 2020, the Company repurchased 912,733 shares of common stock at an average price of $150.58 per share. As of September 30, 2020, the Company had $362,560,000 remaining authorized for purchase under this program.

In May 2019, the Company commenced a fifth continuous equity program ("CEP V") under which the Company may sell (and/or enter into forward sale agreements for the sale of) up to $1,000,000,000 of its common stock from time to time. Actual sales will depend on a variety of factors to be determined by the Company, including market conditions, the trading price of the Company's common stock and determinations by the Company of the appropriate sources of funding for the Company. In conjunction with CEP V, the Company engaged sales agents who will receive compensation of up to 1.5% of the gross sales price for shares sold. The Company expects that, if entered into, it will physically settle each forward sale agreement on one or more dates specified by the Company on or prior to the maturity date of that particular forward sale agreement, in which case the Company will expect to receive aggregate net cash proceeds at settlement equal to the number of shares underlying the particular forward agreement multiplied by the relevant forward sale price. However, the Company may also elect to cash settle or net share settle a forward sale agreement. In connection with each forward sale agreement, the Company will pay the relevant forward seller, in the form of a reduced initial forward sale price, a commission of up to 1.5% of the sales prices of all borrowed shares of common stock sold. During the three and nine months ended September 30, 2020, the Company had no sales under the program. As of September 30, 2020, the Company had $752,878,000 remaining authorized for issuance under this program.