GE 2008 Annual Report Download - page 86

84 ge 2008 annual report
notes to consolidated financial statements
Note 23.
Shareowners’ Equity
(In millions) 2008 2007 2006
PREFERRED STOCK ISSUED(a) (b) $— $—$—
COMMON STOCK ISSUED(a) (b) $ 702 $ 669 $ 669
ACCUMULATED OTHER COMPREHENSIVE INCOME
Balance at January 1 $ 8,324 $ 3,254 $ 3,137
Investment securities —net of deferred taxes of $(2,528), $(510) and $111 (3,813) (972) 297
Currency translation adjustments— net of deferred taxes of $4,082, $(1,319) and $(1,417) (10,890) 4,662 3,776
Cash flow hedges —net of deferred taxes of $(1,982), $(213) and $75 (2,781) 23 599
Benefit plans —net of deferred taxes of $(7,379), $860 and $182 (c) (13,288) 2,566 287
Reclassification adjustments
Investment securities —net of deferred taxes of $734, $(375) and $(279) 595 (512) (520)
Currency translation adjustments (117) (135) (127)
Cash flow hedges —net of deferred taxes of $295, $(119) and $(60) 117 (562) (376)
Cumulative effect of change in accounting principle —net of deferred taxes of $(2,715) —— (3,819)
Balance at December 31 (d) $ (21,853) $ 8,324 $ 3,254
OTHER CAPITAL
Balance at January 1 $ 26,100 $ 25,486 $ 25,227
Common stock issuance (b) 11,972 ——
Preferred stock and warrant issuance (b) 2,965 ——
Gains (losses) on treasury stock dispositions and other(b) (647) 614 259
Balance at December 31 $ 40,390 $ 26,100 $ 25,486
RETAINED EARNINGS
Balance at January 1 (e) $117,362 $106,867 $ 96,926
Net earnings 17,410 22,208 20,742
Dividends (b) (f) (12,649) (11,713) (10,675)
Balance at December 31 $122,123 $117,362 $106,993
COMMON STOCK HELD IN TREASURY
Balance at January 1 $ (36,896) $ (24,893) $ (17,326)
Purchases (b) (3,508) (14,913) (10,512)
Dispositions (b) 3,707 2,910 2,945
Balance at December 31 $ (36,697) $ (36,896) $ (24,893)
TOTAL EQUITY
Balance at December 31 $104,665 $115,559 $111,509
(a) Additions resulting from issuances in 2008 were inconsequential for preferred stock and $33 million for common stock.
(b) Total dividends and other transactions with shareowners, inclusive of additions to par value discussed in note (a), increased equity by $1,873 million in 2008, and reduced equity
by $23,102 million in 2007 and $17,983 million in 2006.
(c) For 2008, included $(43) million of prior service costs for plan amendments, $534 million of amortization of prior service costs, $(13,980) million of gains (losses) arising during
the year and $201 million of amortization of gains (losses) — net of deferred taxes of $(24) million, $441 million, $(7,893) million and $97 million, respectively. For 2007, included
$(3,122) million of prior service costs for plan amendments, $494 million of amortization of prior service costs, $4,666 million of gains (losses) arising during the year and
$528 million of amortization of gains (losses) — net of deferred taxes of $(2,482) million, $339 million, $2,639 million and $364 million, respectively.
(d) At December 31, 2008, included additions to equity of $2,865 million related to hedges of our investments in financial services subsidiaries that have functional currencies
other than the U.S. dollar and reductions of $3,332 million related to cash flow hedges of forecasted transactions, of which we expect to transfer $1,892 million to earnings as
an expense in 2009 along with the earnings effects of the related forecasted transaction.
(e) 2007 opening balance change reflects cumulative effect of changes in accounting principles of $(49) million related to adopting FIN 48 and $(77) million related to adoption of
FSP FAS 13-2. The cumulative effect of adopting SFAS 159 at January 1, 2008, was insignificant. See Note 1.
(f) For 2008, included $75 million of dividends on preferred stock.