v3.21.2
Shareholders' Equity
 6 Months Ended
Jun. 30, 2021
Text Block [Abstract]  
Shareholders' Equity
Note 19.
Shareholders’ Equity
Common Equity
As of both June 2021 and December 2020, 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, consistent with the FRB’s requirement for all large bank holding companies (BHCs), extended the suspension of stock repurchases through the fourth quarter of 2020. The firm resumed stock repurchases in the first quarter of 2021.
The table below presents information about common stock repurchases.
 
    Three Months
Ended June		         
Six Months
Ended June
  
           
in millions, except per share amounts
  
 
2021
 
     2020    
 
  
 
2021
 
     2020  
Common share repurchases
  
 
2.8
 
     –        
 
11.6
 
     8.2  
Average cost per share
  
 
$350.90
 
     $    –        
 
$320.12
 
     $236.35  
Total cost of common share repurchases
  
 
$  1,000
 
     $    –    
 
  
 
$  3,700
 
     $  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 six months ended June 2021, 1,830 shares were remitted with a total value of $0.5 million and the firm cancelled 3.3 million share-based awards with a total value of $969 million.
The table below presents common stock dividends declared.
 
    Three Months
Ended June		            Six Months
Ended June		  
           
 
  
 
2021
 
      2020    
 
  
 
2021
 
      2020  
Dividends declared per common share
  
 
$1.25
 
      $1.25    
 
  
 
$2.50
 
      $2.50  
On July 12, 2021, the Board of Directors of Group Inc. (Board) increased the quarterly dividend to $2.00 per common share from $1.25 per common share. The dividend will be paid on September 29, 2021 to common shareholders of record on September 1, 2021.
Preferred Equity
The tables below present information about the perpetual preferred stock issued and outstanding as of June 2021.
 
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  
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  
T
     27,000        27,000        27,000        25  
Total
  
 
412,700
 
   
 
340,282
 
   
 
340,280
 
   
 
 
 
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
 
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
 
T
     May 10, 2026        $  25,000     
 
675
 
Total
  
 
 
 
   
 
 
 
   
 
$9,203
 
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 April 2021, the firm issued 27,000 shares of Series T 3.80% Fixed-Rate Reset
Non-Cumulative
Preferred Stock (Series T Preferred Stock).
 
•  
The redemption price per share for Series A through F and Series Q through T 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 July 2021, the firm issued 30,000 shares of Series U 3.65% Fixed-Rate Reset Non-Cumulative Preferred Stock (Series U Preferred Stock). Each share of Series U Preferred Stock issued and outstanding has a liquidation preference of $25,000, is represented by 25 depositary shares and is redeemable at the firm’s option beginning August 10, 2026 at a redemption price equal to $25,000 plus declared and unpaid dividends. Dividends on Series U Preferred Stock, if declared, are payable semi-annually at (i) 3.65% per annum from the issuance date to, but excluding, August 10, 2026 and, thereafter, (ii) 2.915% per annum plus the five-year treasury rate.
In the second quarter of 2021, the firm redeemed all outstanding shares of its Series N 6.30%
Non-Cumulative
Preferred Stock (Series N Preferred Stock) with a redemption value of $675 million ($25,000 per share), plus accrued and unpaid dividends on May 19, 2021. The difference between the redemption value and net carrying value was $20 million, which was recorded as an addition to preferred stock dividends in the second quarter of 2021.
In the first quarter of 2021, the firm redeemed all outstanding shares of its Series M 5.375%
Fixed-to-Floating
Rate
Non-Cumulative
Preferred Stock (Series M Preferred Stock) with a redemption value of $2 billion ($25,000 per share), plus accrued and unpaid dividends. The difference between the redemption value and net carrying value was $21 million, which was recorded as an addition to preferred stock dividends in the first quarter of 2021.
In 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 was $1 million, which was recorded as an addition to preferred stock dividends in 2020.
The table below presents the dividend rates of perpetual preferred stock as of June 2021.
 
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
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
T
  
3.80%, payable semi-annually, from issuance date to, but excluding,
May 10, 2026; 5 year treasury rate + 2.969%, 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.
 
   
2021
         2020  
           
Series
  
 
per share
 
   
 
$ in millions
 
             
 
per share
 
   
 
$ in millions
 
Three Months Ended June
 
                     
A
  
 
$  
 
231.77
 
   
 
$    7
 
         $   236.98        $    7  
C
  
 
$  
 
247.22
 
   
 
2
 
         $   252.78        2  
D
  
 
$  
 
247.22
 
   
 
13
 
         $   252.78        14  
E
  
 
$1,022.22
 
   
 
8
 
         $1,011.11        8  
F
  
 
$1,022.22
 
   
 
1
 
         $1,011.11        1  
J
  
 
$  
 
343.75
 
   
 
13
 
         $   343.75        14  
K
  
 
$  
 
398.44
 
   
 
11
 
         $   398.44        11  
M
  
 
$           
 
–
 
   
 
–
 
         $   671.88        54  
N
  
 
$  
 
393.75
 
   
 
9
 
         $   393.75        10  
O
  
 
$  
 
662.50
 
   
 
17
 
         $   662.50        17  
P
  
 
$  
 
625.00
 
   
 
38
 
  
 
     $   625.00        38  
Total
  
 
 
 
   
 
$119
 
  
 
  
 
 
 
      $176  
 
Six Months Ended June
 
         
A
  
 
$  
 
471.35
 
   
 
$  14
 
         $   471.36        $  14  
C
  
 
$  
 
502.78
 
   
 
4
 
         $   502.78        4  
D
  
 
$  
 
502.78
 
   
 
27
 
         $   502.78        27  
E
  
 
$2,022.22
 
   
 
15
 
         $2,022.22        15  
F
  
 
$2,022.22
 
   
 
3
 
         $2,022.22        3  
J
  
 
$  
 
687.50
 
   
 
27
 
         $   687.50        28  
K
  
 
$  
 
796.88
 
   
 
22
 
         $   796.88        22  
L
  
 
$           
 
–
 
   
 
–
 
         $   361.54        4  
M
  
 
$           
 
–
 
   
 
–
 
         $   671.88        54  
N
  
 
$  
 
787.50
 
   
 
19
 
         $   787.50        21  
O
  
 
$  
 
662.50
 
   
 
17
 
         $   662.50        17  
P
  
 
$  
 
625.00
 
   
 
38
 
         $   625.00        38  
Q
  
 
$  
 
687.50
 
   
 
14
 
         $   889.93        18  
R
  
 
$  
 
618.75
 
   
 
15
 
      
 
 $           
  
–
 
      –  
S
  
 
$  
 
550.00
 
   
 
8
 
  
 
  
 
 $           
  
–
 
      –  
Total
  
 
 
 
   
 
$223
 
  
 
  
 
 
 
      $265  
On July 7, 2021, 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, $687.50 per share of Series Q Preferred Stock, $618.75 per share of Series R Preferred Stock, and $550.00 per share of Series S Preferred Stock to be paid on August 10, 2021 to preferred shareholders of record on July 26, 2021. In addition, the firm declared dividends of $1,022.22 per share of Series E Preferred Stock and $1,022.22 per share of Series F Preferred Stock to be paid on September 1, 2021 to preferred shareholders of record on August 17, 2021.
Accumulated Other Comprehensive Income/(Loss)
The table below presents changes in 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 June 2021
                        
Currency translation
  
 
$  
    
(696
) 
  
 
$    
 
(16
) 
  
 
$  
 
(712
) 
Debt valuation adjustment
  
 
(852
) 
  
 
117
 
  
 
(735
) 
Pension and postretirement liabilities
  
 
(361
) 
  
 
–
 
  
 
(361
) 
Available-for-sale
securities
  
 
(165
) 
  
 
84
 
  
 
(81
) 
Total
  
 
$(2,074
) 
  
 
$   
 
185
 
  
 
$(1,889
) 
 
Three Months Ended June 2020
                        
Currency translation
     $  
    
(633		 )      $  
    
  (44		 )      $  
  
(677		 ) 
Debt valuation adjustment
     2,342       (2,218 )      124  
Pension and postretirement liabilities
     (335 )      (4 )      (339 ) 
Available-for-sale
securities
     563       (12 )      551  
Total
     $
    
1,937		       $(2,278 )      $  
  
(341		 ) 
 
Six Months Ended June 2021
                        
Currency translation
  
 
$  
    
(696
) 
  
 
$    
 
(16
) 
  
 
$  
  
(712
) 
Debt valuation adjustment
  
 
(833
) 
  
 
98
 
  
 
(735
) 
Pension and postretirement liabilities
  
 
(368
) 
  
 
7
 
  
 
(361
) 
Available-for-sale
securities
  
 
463
 
  
 
(544
) 
  
 
(81
) 
Total
  
 
$(1,434
) 
  
 
$  
 
(455
) 
  
 
$(1,889
) 
 
Six Months Ended June 2020
                        
Currency translation
     $  
    
(616		 )      $  
    
  (61		 )      $  
  
(677		 ) 
Debt valuation adjustment
     (572 )      696       124  
Pension and postretirement liabilities
     (342 )      3       (339 ) 
Available-for-sale
securities
     46       505       551  
Total
     $
    
(1,484		 )      $ 1,143       $  
  
(341		 )