 For The Years Ended December 31, 1997, 1996 and 1995 |
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| Note 14. Preferred and Preference Stock |
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The following shares of stock were authorized with or without sinking fund requirements as of December 31, 1997 and 1996: |
| Par Value | Shares (in millions) |
| Preferred Stock | $ | 100 | 12.5 | |||
| Preferred Stock A | $ | 25 | 10.0 | |||
| Preference Stock | $ | 100 | 1.5 |
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As of December 31, 1997 and 1996, there were no shares of preference stock outstanding. Preferred stock with sinking fund requirements as of December 31, 1997 and 1996, was as follows (dollars in millions): |
| Rate/Series | Year Issued | Shares Outstanding |
1997 | 1996 |
| 5.95% B (Preferred Stock A) | 1992 | 800,000 | $ | 20.0 | $ | 20.0 | ||
| 6.10% C (Preferred Stock A) | 1992 | 800,000 | 20.0 | 20.0 | ||||
| 6.10% D (Preferred Stock A) | 1992 | 800,000 | 20.0 | 20.0 | ||||
| 6.20% T | 1992 | 130,000 | 13.0 | 13.0 | ||||
| 6.30% U | 1992 | 130,000 | 13.0 | 13.0 | ||||
| 6.40% V | 1992 | 130,000 | 13.0 | 13.0 | ||||
| 6.75% X | 1993 | 500,000 | 50.0 | 50.0 | ||||
| 7.50% R | 1992 | 850,000 | -- | 85.0 | ||||
| Total | $ | 149.0 | $ | 234.0 | ||||
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The annual sinking fund requirements for 1998 through 2002 are $0, $20.0 million, $33.0 million, $33.0 million and $13.0 million, respectively. Some additional redemptions are permitted at the Corporation’s option. The call provisions for the outstanding preferred stock specify various redemption prices not exceeding 104 percent of par value, plus accumulated dividends to the redemption date. Preferred stock without sinking fund requirements as of December 31, 1997 and 1996, was as follows (dollars in millions): |
| Rate/Series | Year Issued | Shares Outstanding |
1997 | 1996 |
| 4.50% C | 1964 | 350,000 | $ | 35.0 | $ | 35.0 | ||
| 7.85% S | 1992 | 600,000 | 60.0 | 60.0 | ||||
| 7.00% W | 1993 | 500,000 | 50.0 | 50.0 | ||||
| 7.04% Y | 1993 | 600,000 | 60.0 | 60.0 | ||||
| 6.375% (Preferred Stock A) | 1993 | 2,400,000 | 60.0 | 60.0 | ||||
| Auction Series A | 1990 | 750,000 | 75.0 | 75.0 | ||||
| 5.72% D | 1966 | 350,000 | -- | 35.0 | ||||
| 6.72% E | 1968 | 350,000 | -- | 35.0 | ||||
| 7.72% (Preferred Stock A) | 1992 | 1,600,000 | -- | 40.0 | ||||
| Total | $ | 340.0 | $ | 450.0 | ||||
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During December 1997, the Corporation redeemed approximately 3.2 million shares of preferred stock for $203.4 million. On December 18, 1997, the Corporation also commenced a tender offer to purchase a portion of six of its preferred issues totaling $315 million. The tender offer expired on February 3, 1998, with acceptances limited to a maximum of 50 percent of the outstanding shares of each issue. The premiums related to these redemptions were included in Dividends and Premiums on Redemptions of Preferred and Preference Stock in the Consolidated Statements of Income. |
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