GE 2014 Annual Report Download - page 206

186 GE 2014 FORM 10-K
FINANCIAL STATEMENTS SHAREOWNERS' EQUITY
NOTE 15. SHAREOWNERS’ EQUITY
(In millions) 2014 2013 2012
Preferred stock issued $ - $ - $ -
Common stock issued $ 702 $ 702 $ 702
Accumulated other comprehensive income
Balance at January 1 $ (9,120) $
(20,230) $ (23,974)
Other comprehensive income before reclassifications (12,087) 8,844 841
Reclassifications from other comprehensive income 3,035 2,266 2,903
Other comprehensive income, net, attributable to GE (9,052) 11,110 3,744
Balance at December 31 $ (18,172) $ (9,120) $ (20,230)
Other capital
Balance at January 1 $ 32,494 $
33,070 $ 33,693
Gains (losses) on treasury stock dispositions and other(a) 395 (576) (623)
Balance at December 31 $ 32,889 $
32,494 $ 33,070
Retained earnings
Balance at January 1 $ 149,051 $
144,055 $ 137,786
Net earnings attributable to the Company 15,233 13,057 13,641
Dividends and other transactions with shareowners (8,951) (8,061) (7,372)
Balance at December 31 $ 155,333 $
149,051 $ 144,055
Common stock held in treasury
Balance at January 1 $ (42,561) $
(34,571) $ (31,769)
Purchases (1,950) (10,466) (5,295)
Dispositions 1,918 2,476 2,493
Balance at December 31 $ (42,593) $
(42,561) $ (34,571)
Total equity
GE shareowners' equity balance at December 31 $ 128,159 $
130,566 $ 123,026
Noncontrolling interests balance at December 31 8,674 6,217 5,444
Total equity balance at December 31 $ 136,833 $ 136,783 $ 128,470
(a) 2014 included $440 million related to the excess of the net proceeds from the Synchrony Financial IPO over the carrying value of the interest sold.
SHARES OF GE PREFERRED STOCK
On October 16, 2008, we issued 30,000 shares of 10% cumulative perpetual preferred stock (par value $1.00 per share)
having an aggregate liquidation value of $3,000 million, and warrants to purchase 134,831,460 shares of common stock (par
value $0.06 per share) to Berkshire Hathaway Inc. (Berkshire Hathaway) for net proceeds of $2,965 million in cash. The
proceeds were allocated to the preferred shares ($2,494 million) and the warrants ($471 million) on a relative fair value basis
and recorded in other capital. The warrants were exercisable through October 16, 2013, at an exercise price of $22.25 per
share of common stock and were to be settled through physical share issuance. The terms of the warrants were amended in
January 2013 to allow for net share settlement where the total number of issued shares is based on the amount by which the
average market price of GE common stock over the 20 trading days preceding the date of exercise exceeds the exercise price
of $22.25. On October 16, 2013, Berkshire Hathaway Inc. (Berkshire Hathaway) exercised in full their warrants to purchase
shares of GE common stock and on October 17, 2013, GE delivered 10.7 million shares to Berkshire Hathaway. The
transaction had equal and offsetting effects on other capital and common stock held in treasury.
The preferred stock was redeemable at our option three years after issuance at a price of 110% of liquidation value plus
accrued and unpaid dividends. On September 13, 2011, we provided notice to Berkshire Hathaway that we would redeem the
shares for the stated redemption price of $3,300 million, plus accrued and unpaid dividends. In connection with this notice, we
recognized a preferred dividend of $806 million (calculated as the difference between the carrying value and redemption value
of the preferred stock), which was recorded as a reduction to earnings attributable to common shareowners and common
shareowners’ equity. The preferred shares were redeemed on October 17, 2011.
GE has 50 million authorized shares of preferred stock ($1.00 par value). No shares were issued and outstanding as of
December 31, 2014 and 2013.