Shareholders' Equity |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Shareholders' Equity |
Shareholders’ Equity
Common Stock
During the three and nine months ended September 30, 2018, the Corporation repurchased and retired 164 million and 482 million shares of common stock, which reduced shareholders’ equity by $5.0 billion and $14.9 billion.
At September 30, 2018, the Corporation had unexercised warrants outstanding to purchase 122 million shares of its common stock expiring on October 29, 2018, and warrants outstanding and exercisable to purchase 130 million shares of common stock expiring on January 16, 2019. These warrants were originally issued in connection with preferred stock issuances to the U.S. Department of the Treasury in 2009 and 2008, and are listed on the New York Stock Exchange. The exercise price of the warrants expiring on January 16, 2019 is subject to continued adjustment each time the quarterly cash dividend is in excess of $0.01 per common share to compensate the holders of the warrants for dilution resulting from an increased dividend. As a result of the Corporation’s third-quarter 2018 dividend of $0.15 per common share, the exercise price of the warrants expiring on January 16, 2019 was adjusted to $12.609 per share. The unexercised warrants expiring on October 29, 2018 have an exercise price of $30.79 per share.
During the nine months ended September 30, 2018, in connection with employee stock plans, the Corporation issued 74 million shares of its common stock and, to satisfy tax withholding obligations, repurchased 29 million shares of its common stock. At September 30, 2018, the Corporation had reserved 787 million unissued shares of common stock for future issuances under employee stock plans, common stock warrants, convertible notes and preferred stock.
Preferred Stock
During the three months ended March 31, 2018, June 30, 2018 and September 30, 2018, the Corporation declared $428 million, $318 million and $466 million of cash dividends on preferred stock, or a total of $1.2 billion for the nine months ended September 30, 2018.
On July 24, 2018, the Corporation issued 34,160 shares of 5.875% Non-Cumulative Preferred Stock, Series HH for $844 million, net of deferred fees. Dividends are paid quarterly commencing on October 24, 2018. The Series HH preferred stock has a liquidation preference of $25,000 per share and is subject to certain restrictions in the event the Corporation fails to declare and pay full dividends.
During the three months ended September 30, 2018, the Corporation fully redeemed Series D, Series I, Series K and Series 3 preferred stock for a total of $1.7 billion. For additional information on the Corporation’s preferred stock, including liquidation preference, dividend requirements and redemption period, see Note 13 – Shareholders’ Equity to the Consolidated Financial Statements of the Corporation’s 2017 Annual Report on Form 10-K.
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