EQUITY

COMMON STOCK

We are authorized to issue 2 billion shares of Class A common stock, 1.25 billion shares of Class B common stock and 50 million shares of preferred stock each of which have a par value of $0.0001 per share. The number of shares of Class A common stock and Class B common stock outstanding at December 31, 2018 is 513 million and 522 million, respectively. We have not issued any preferred stock. GE owns all the issued and outstanding Class B common stock. Each share of Class A and Class B common stock and the associated membership interest in BHGE LLC form a paired interest. While each share of Class B common stock has equal voting rights to a share of Class A common stock, it has no economic rights, meaning holders of Class B common stock have no right to dividends and any assets in the event of liquidation of the Company.

During 2018 and 2017, the Company declared and paid aggregate regular dividends of $0.72 per share and $0.35 per share, respectively, to holders of record of the Company's Class A common stock. In addition, in 2017 former Baker Hughes stockholders, immediately after the completion of the Transactions, received a special one-time cash dividend of $17.50 per share paid by the Company to holders of record of the Company's Class A common stock.

The following table presents the changes in the number of shares outstanding (in thousands):



	2018				2017
	Class A Common Stock		Class B Common Stock		Class A Common Stock		Class B Common Stock
Balance at beginning of year	422,208		706,985		—		—
Issue of shares on business combination at July 3, 2017	—		—		427,709		717,111
Issue of shares upon vesting of restricted stock units ⁽¹⁾	835		—		290		—
Issue of shares on exercises of stock options ⁽¹⁾	657		—		256		—
Exchange of Class B Common Stock for Class A Common Stock ⁽²⁾	101,200		(101,200	)	—		—
Stock repurchase program ^{(3) (4)}	(11,501	)	(84,241	)	(6,047	)	(10,126	)
Balance at end of year	513,399		521,543		422,208		706,985


⁽¹⁾	Share amounts reflected above are net of shares withheld to satisfy the employee's tax withholding obligation.

⁽²⁾

In November 2018, we completed an underwritten secondary public offering in which GE and its affiliates sold 101.2 million shares of our Class A common stock. We did not receive any proceeds from the shares sold by GE and its affiliates in this offering. The offering included the exchange of BHGE LLC Units (together with the corresponding shares of Class B common stock) for Class A common stock by GE and its affiliates per the Exchange Agreement.


⁽³⁾	In November 2017, our board of directors authorized BHGE LLC to repurchase up to $3 billion of its common units from the Company and GE. The $3 billion repurchase authorization is the aggregate authorization for repurchases of Class A common stock and Class B common stock together with its paired common unit. As of December 31, 2018, the stock repurchase program has been substantially completed.

⁽⁴⁾

During 2018, we repurchased and canceled 11,500,992 shares of Class A common stock for a total of $374 million and 19,241,160 shares of Class B common stock from GE together with the paired common units of BHGE LLC for $626 million. Additionally, in November 2018, we also repurchased 65 million of BHGE LLC Units from GE and its affiliates for an aggregate of $1,461 million, or $22.48 per share, which is the same per share price, net of discounts and commissions paid by the underwriters to GE and its affiliates in the underwritten public offering. In connection with this repurchase, the corresponding shares of Class B common stock held by GE and its affiliates were canceled.

As a result of the exchange of shares in the secondary offering and the BHGE LLC Units repurchased in November 2018, GE's economic interest in BHGE LLC reduced during the fourth quarter of 2018 from approximately 62.5% to approximately 50.4%. The effect of this change in ownership resulted in a decrease in noncontrolling interests of $3,761 million and accumulated other comprehensive income of $282 million with a corresponding increase in capital in excess of par value totaling $4,043 million.

ACCUMULATED OTHER COMPREHENSIVE LOSS (AOCL)

The following table presents the changes in accumulated other comprehensive loss, net of tax:



	Investment Securities			Foreign Currency Translation Adjustments			Cash Flow Hedges			Benefit Plans			Accumulated Other Comprehensive Loss
Balance at December 31, 2016	$	—		$	(1,795	)	$	(10	)	$	(83	)	$	(1,888	)
Other comprehensive income (loss) before reclassifications	41			(4		)	8			45			90
Amounts reclassified from accumulated other comprehensive loss	(39		)	—			7			1			(31		)
Deferred taxes	2			(10		)	(3		)	9			(2		)
Other comprehensive income (loss)	4			(14		)	12			55			57
Less: Other comprehensive income attributable to noncontrolling interests	3			38			2			37			80
Less: Other adjustments	—			—			—			13			13
Less: Reallocation of AOCL based on ownership of GE and previous Baker Hughes stockholders	—			(1,170		)	(1		)	(63		)	(1,234		)
Less: Activity related to noncontrolling interest	—			5			—			8			13
Balance at December 31, 2017	1			(682		)	1			(23		)	(703		)
Other comprehensive loss before reclassifications	(1		)	(502		)	(6		)	(70		)	(579		)
Amounts reclassified from accumulated other comprehensive loss	—			—			1			5			6
Deferred taxes	(2		)	—			1			1			—
Other comprehensive loss	(3		)	(502		)	(4		)	(64		)	(573		)
Less: Other comprehensive loss attributable to noncontrolling interests	(2		)	(303		)	(2		)	(36		)	(343		)
Less: Reallocation of AOCL based on change in ownership of BHGE LLC Units	—			271			—			11			282
Less: Activity related to noncontrolling interest	—			—			—			4			4
Balance at December 31, 2018	$	—		$	(1,152	)	$	(1	)	$	(66	)	$	(1,219	)

The amounts reclassified from accumulated other comprehensive loss during the years ended December 31, 2018 and 2017 represent (i) realized gains (losses) on investment securities recorded in other non operating income, net (ii) gains (losses) reclassified on cash flow hedges when the hedged transaction occurs and (iii) the amortization of net actuarial loss and prior service credit, and curtailments which are included in the computation of net periodic pension cost (see "Note 11. Employee Benefit Plans" for additional details). Net periodic pension cost is recorded across the various cost and expense line items within the consolidated and combined statements of income (loss).

NONCONTROLLING INTEREST

Noncontrolling interests represent the portion of net assets in consolidated entities that are not owned by the Company. As a result of the exchange of shares in the secondary offering and the BHGE LLC Units repurchased in November 2018, GE's economic interest in BHGE LLC reduced during the fourth quarter of 2018 from approximately 62.5% to approximately 50.4%. The effect of this change in ownership resulted in a decrease in noncontrolling interests of $3,761 million and accumulated other comprehensive income of $282 million with a corresponding increase in capital in excess of par value totaling $4,043 million.

As of December 31, 2018 and December 31, 2017, GE owned approximately 50.4% and 62.5%, respectively, of BHGE LLC and this represents the majority of the noncontrolling interest balance reported within equity.



	2018		2017
GE's interest in BHGE LLC	$	17,438	$	23,993
Other noncontrolling interests	110		140
Total noncontrolling interests	$	17,548	$	24,133