Shareholders’ Equity

Preferred Stock

We are authorized to issue approximately 22 million shares of cumulative preferred stock, $1.00 par value per share. Refer to Note 20 - Preferred Stock for additional information.

Common Stock

We have 437.5 million authorized shares of common stock, $1.00 par value per share. At December 31, 2018, 23 million shares were reserved for issuance under our incentive compensation plans, 12 million shares were reserved for debt to equity exchanges and 7 million shares were reserved for conversion of the Series B convertible perpetual preferred stock.

Treasury Stock

We account for the repurchased common stock under the cost method and include such treasury stock as a component of our common shareholders' equity. Retirement of treasury stock is recorded as a reduction of Common stock and Additional paid-in capital at the time such retirement is approved by our Board of Directors.

In July 2018, the Board of Directors authorized a $1.0 billion share repurchase program (exclusive of any commissions and other transaction fees and costs). The program replaced the $245 of authority remaining under the Company's previously authorized share repurchase program. In January 2019, the Board of Directors authorized an incremental $1.0 billion share repurchase program (exclusive of any commissions and other transaction fees and costs).

The following provides cumulative information relating to our share repurchase program from its inception in July 2018 through December 31, 2018 (shares in thousands):



Authorized share repurchase program	$	1,000
Share repurchase cost	$	700
Share repurchase fees	$	—
Number of shares repurchased	26,093

Of the $1.0 billion of share repurchase granted in 2018 by our Board of Directors, approximately $300 of that authority remained available as of December 31, 2018.

The following table reflects the changes in Common and Treasury stock shares (shares in thousands):



	Common Stock Shares		Treasury Stock Shares
Balance at December 31, 2015	253,209		—
Stock based compensation plans, net	385		—
Balance at December 31, 2016	253,594		—
Stock based compensation plans, net	1,019		—
Balance at December 31, 2017	254,613		—
Stock based compensation plans, net	1,103		—
Acquisition of Treasury stock	—		26,093
Cancellation of Treasury stock	(24,026	)	(24,026	)
Balance at December 31, 2018	231,690		2,067