v3.22.0.1
Shareholders' Equity
 12 Months Ended
Dec. 31, 2021
Text Block [Abstract]  
Shareholders' Equity
Note 19.
Shareholders’ Equity
Common Equity
As of both December 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.
 
    Year Ended December  
       
in millions, except per share amounts
  
 
2021
 
     2020       2019  
Common share repurchases
  
 
15.3
 
     8.2       25.8  
Average cost per share
  
 
$339.81
 
     $236.35       $206.56  
Total cost of common share repurchases
  
 
$  5,200
 
     $  1,928       $  5,335  
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, 1,830 shares in 2021, 3,476 shares in 2020 and 7,490 shares in 2019 were remitted with a total value of $0.5 million in 2021, $0.9 million in 2020 and $2 million in 2019, and the firm cancelled 3.4 million share-based awards in 2021, 3.4 million in 2020 and 3.8 million in 2019 with a total value of $984 million in 2021, $829 million in 2020 and $743 million in 2019.
The table below presents common stock dividends declared.
 
    Year Ended December  
       
 
  
 
2021
 
      2020        2019  
Dividends declared per common share
  
 
$6.50
 
      $5.00        $4.15  
On
January 14, 2022
, the Board of Directors of Group Inc. (Board) declared a dividend of $
2.00
per common share to be paid on
 
March 30, 2022
to common shareholders of record on
 
March 2, 2022.
Preferred Equity
The tables below present information about the perpetual preferred stock issued and outstanding as of December 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  
U     30,000       30,000       30,000       25  
V     30,000       30,000       30,000       25  
Total
  
 
472,700
 
  
 
400,282
 
  
 
400,280
 
  
 
 
 
 
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
 
U
     August 10, 2026        $  25,000     
 
750
 
V
     November 10, 2026        $  25,000     
 
750
 
Total
  
 
 
 
   
 
 
 
   
 
$10,703
 
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 October 2021, the firm issued 30,000 shares of Series V 4.125% Fixed-Rate Reset
Non-Cumulative
Preferred Stock (Series V Preferred Stock).
 
•  
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).
 
•  
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 V 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 2021, the firm
redeemed
all outstanding shares of its (i) Series N 6.30%
Non-Cumulative
Preferred Stock with a redemption value of $675 million ($25,000 per share), plus accrued and unpaid dividends and its (ii) Series M 5.375%
Fixed-to-Floating
Rate
Non-Cumulative
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 at the time of these redemptions was $41 million, which was recorded as an addition to preferred stock dividends in 2021.
In 2020, the firm redeemed the remaining 14,000 outstanding shares of its Series L 5.70%
Non-Cumulative
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 December 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
U
  
3.65%, payable semi-annually, from issuance date to, but excluding,
August 10, 2026; 5 year treasury rate + 2.915%, payable semi-annually, thereafter
V
  
4.125%, payable semi-annually, from issuance date to, but excluding,
November 10, 2026; 5 year treasury rate + 2.949%, 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.
 
    Year Ended December  
           
   
2021
         2020         2019  
                 
Series
  
 
 
per
share
 
 
  
 
 
$ in
millions
 
 
  
      
  
 
 
per
share
 
 
  
 
 
$ in
millions
 
 
  
      
  
 
 
per
share
 
 
  
 
 
$ in
millions
 
 
A  
 
$
  
 950.51
 
  
 
$  28
 
         $   947.92       $  28           $   947.92       $  28  
B  
 
$
  
           –
 
  
 
–
 
         $     
 
       –		       –           $   775.00       5  
C  
 
$1,013.90
 
  
 
8
 
         $1,011.12       8           $1,011.11       8  
D  
 
$1,013.90
 
  
 
55
 
         $1,011.12       55           $1,011.11       54  
E  
 
$4,055.55
 
  
 
31
 
         $4,055.55       31           $4,044.44       31  
F  
 
$4,055.55
 
  
 
7
 
         $4,055.55       6           $4,044.44       7  
J  
 
$1,375.00
 
  
 
55
 
         $1,375.00       55           $1,375.00       55  
K  
 
$1,593.76
 
  
 
44
 
         $1,593.76       45           $1,593.76       45  
L  
 
$
  
           –
 
  
 
–
 
         $   361.54       4           $1,519.67       68  
M  
 
$
  
           –
 
  
 
–
 
         $1,217.16       97           $1,343.76       107  
N  
 
$
  
 787.50
 
  
 
19
 
         $1,575.00       43           $1,575.00       43  
O  
 
$1,325.00
 
  
 
34
 
         $1,325.00       34           $1,325.00       34  
P  
 
$1,250.00
 
  
 
75
 
         $1,250.00       75           $1,250.00       75  
Q  
 
$1,375.00
 
  
 
28
 
         $1,577.43       32           $     
 
       –		       –  
R  
 
$1,237.50
 
  
 
30
 
         $   910.94       22           $     
 
       –		       –  
S  
 
$1,100.00
 
  
 
15
 
         $   586.67       8           $     
 
       –		       –  
T  
 
$
  
 511.94
 
  
 
14
 
  
 
     $     
 
       –		       –    
 
     $     
 
       –		       –  
Total
  
 
 
 
  
 
$443
 
  
 
  
 
 
 
     $543    
 
  
 
 
 
     $560  
On January 6, 2022, 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, $550.00 per share of Series S Preferred Stock and $486.67 per share of Series U Preferred Stock to be paid on February 10, 2022 to preferred shareholders of record on January 26, 2022. In addition, the firm declared dividends of $1,000.00 per share of Series E Preferred Stock and $1,000.00 per share of Series F Preferred Stock to be paid on March 1, 2022 to preferred shareholders of record on February 14, 2022.
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
  
 
Year Ended December 2021
                        
Currency translation
  
 
$
  
 (696
) 
  
 
$
  
    (42
) 
  
 
$
  
 (738
) 
Debt valuation adjustment
  
 
(833
) 
  
 
322
 
  
 
(511
) 
Pension and postretirement liabilities
  
 
(368
) 
  
 
41
 
  
 
(327
) 
Available-for-sale
securities
  
 
463
 
  
 
(955
) 
  
 
(492
) 
Total
  
 
$(1,434
) 
  
 
$
  
  (634
) 
  
 
$(2,068
) 
 
Year Ended December 2020
                        
Currency translation
     $
  
  (616		 )      $     (80 )      $
  
  (696		 ) 
Debt valuation adjustment
     (572 )      (261 )      (833 ) 
Pension and postretirement liabilities
     (342 )      (26 )      (368 ) 
Available-for-sale
securities
     46       417       463  
Total
     $
 
(1,484		 )      $      50       $
 
(1,434		 ) 
 
Year Ended December 2019
                        
Currency translation
     $
  
  (621		 )      $        5       $
  
  (616		 ) 
Debt valuation adjustment
     1,507       (2,079 )      (572 ) 
Pension and postretirement liabilities
     (81 )      (261 )      (342 ) 
Available-for-sale
securities
     (112 )      158       46  
Total
     $
  
   693		       $(2,177 )      $
 
(1,484		 )