GE 2012 Annual Report Download - page 113

GE 2012 ANNUAL REPORT 111
notes to consolidated financial statements
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 allo-
cated 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 are 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.
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 pro-
vided 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 are issued and outstanding as of
December 31, 2012.
SHARES OF GE COMMON STOCK
On December 14, 2012, we increased the existing authorization
by $10 billion to $25 billion for our share repurchase program
and extended the program (which would have otherwise expired
on December 31, 2013) through 2015. Under this program, on
a book basis, we repurchased 248.6 million shares for a total of
$5,185 million during 2012 and 111.3 million shares for a total
of $1,968 million during 2011. On February 12, 2013, we increased
the existing authorization by an additional $10 billion resulting in
authorization to repurchase up to a total of $35 billion of our com-
mon stock through 2015.
GE has 13.2 billion authorized shares of common stock ($0.06
par value).
Common shares issued and outstanding are summarized in
the following table.
December 31 (In thousands) 2012 2011 2010
Issued 11,693,841 11,693,841 11,693,841
In treasury (1,288,216) (1,120,824) (1,078,465)
Outstanding 10,405,625 10,573,017 10,615,376