SHAREHOLDERS' EQUITY

6 Months Ended

Jun. 30, 2014

Stockholders' Equity Note [Abstract]

SHAREHOLDERS' EQUITY

SHAREHOLDERS’ EQUITY

The following table is a reconciliation of the number of shares of the Company's common stock for the six-month periods ended June 30.

(In thousands of shares)	2014		2013
Common stock - issued:
Balance, beginning of period	667,046		665,239
Exercise of stock options and issuance of restricted shares	750		770
Balance, end of period	667,796		666,009
Treasury stock:
Balance, beginning of period	207,633		197,453
Purchases of treasury stock:
Open market	8,142		5,263
Other	122		144
Dispositions of treasury stock:
Shares issued to AFL Stock Plan	(626	)	(770	)
Exercise of stock options	(303	)	(755	)
Other	(122	)	(146	)
Balance, end of period	214,846		201,189
Shares outstanding, end of period	452,950		464,820

Outstanding share-based awards are excluded from the calculation of weighted-average shares used in the computation of basic earnings per share (EPS). The following table presents the approximate number of share-based awards to purchase shares, on a weighted-average basis, that were considered to be anti-dilutive and were excluded from the calculation of diluted earnings per share for the following periods.

	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands)	2014		2013		2014		2013
Anti-dilutive share-based awards		733		3,235		612		3,429

Share Repurchase Program

During the first six months of 2014, we repurchased 8.1 million shares of our common stock in the open market for $515 million as part of our share repurchase program. During the first six months of 2013, we repurchased 5.3 million shares of our common stock in the open market for $279 million as part of our share repurchase program. As of June 30, 2014, a remaining balance of 41.1 million shares of our common stock was available for purchase under share repurchase authorizations by our board of directors.

Reclassifications from Accumulated Other Comprehensive Income

The tables below are reconciliations of accumulated other comprehensive income by component for the following periods.

Changes in Accumulated Other Comprehensive Income

Three Months Ended June 30, 2014
(In millions)	Unrealized Foreign Currency Translation Gains (Losses)				Unrealized Gains (Losses) on Investment Securities			Unrealized Gains (Losses) on Derivatives				Pension Liability Adjustment				Total
Balance, beginning of period		$	(1,542	)		$	1,944		$	(13	)		$	(82	)		$	307
Other comprehensive income before reclassification		326				964			2				2				1,294
Amounts reclassified from accumulated other comprehensive income		0				7			0				(2		)		5
Net current-period other comprehensive income		326				971			2				0				1,299
Balance, end of period		$	(1,216	)		$	2,915		$	(11	)		$	(82	)		$	1,606

All amounts in the table above are net of tax.

Three Months Ended June 30, 2013
(In millions)	Unrealized Foreign Currency Translation Gains (Losses)				Unrealized Gains (Losses) on Investment Securities				Unrealized Gains (Losses) on Derivatives				Pension Liability Adjustment				Total
Balance, beginning of period		$	(141	)		$	1,981			$	(9	)		$	(180	)		$	1,651
Other comprehensive income before reclassification		(300		)		(2,135		)		(2		)		(1		)		(2,438		)
Amounts reclassified from accumulated other comprehensive income		(12		)		(44		)		0				3				(53		)
Net current-period other comprehensive income		(312		)		(2,179		)		(2		)		2				(2,491		)
Balance, end of period		$	(453	)		$	(198	)		$	(11	)		$	(178	)		$	(840	)

All amounts in the table above are net of tax.

Six Months Ended June 30, 2014
(In millions)	Unrealized Foreign Currency Translation Gains (Losses)				Unrealized Gains (Losses) on Investment Securities			Unrealized Gains (Losses) on Derivatives				Pension Liability Adjustment				Total
Balance, beginning of period		$	(1,505	)		$	1,035		$	(12	)		$	(81	)		$	(563	)
Other comprehensive income before reclassification		289				1,874			1				1				2,165
Amounts reclassified from accumulated other comprehensive income		0				6			0				(2		)		4
Net current-period other comprehensive income		289				1,880			1				(1		)		2,169
Balance, end of period		$	(1,216	)		$	2,915		$	(11	)		$	(82	)		$	1,606

All amounts in the table above are net of tax.

Six Months Ended June 30, 2013
(In millions)	Unrealized Foreign Currency Translation Gains (Losses)				Unrealized Gains (Losses) on Investment Securities				Unrealized Gains (Losses) on Derivatives				Pension Liability Adjustment				Total
Balance, beginning of period		$	333			$	2,570			$	(5	)		$	(183	)		$	2,715
Other comprehensive income before reclassification		(770		)		(2,686		)		(6		)		(1		)		(3,463		)
Amounts reclassified from accumulated other comprehensive income		(16		)		(82		)		0				6				(92		)
Net current-period other comprehensive income		(786		)		(2,768		)		(6		)		5				(3,555		)
Balance, end of period		$	(453	)		$	(198	)		$	(11	)		$	(178	)		$	(840	)

All amounts in the table above are net of tax.

The tables below summarize the amounts reclassified from each component of accumulated other comprehensive income based on source for the following periods.

Reclassifications Out of Accumulated Other Comprehensive Income

(In millions)	Three Months Ended June 30, 2014
Details about Accumulated Other Comprehensive Income Components	Amount Reclassified from Accumulated Other Comprehensive Income				Affected Line Item in the Statements of Earnings
Unrealized gains (losses) on available-for-sale securities		$	(11	)	Sales and redemptions
		0			Other-than-temporary impairment losses realized
		(11		)	Total before tax
		4			Tax (expense) or benefit(1)
		$	(7	)	Net of tax
Amortization of defined benefit pension items:
Actuarial gains (losses)		$	(2	)	Acquisition and operating expenses(2)
Prior service (cost) credit		5			Acquisition and operating expenses(2)
		(1		)	Tax (expense) or benefit(1)
		$	2		Net of tax
Total reclassifications for the period		$	(5	)	Net of tax

⁽¹⁾ Based on 35% tax rate

⁽²⁾ These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see

Note 10 for additional details).    

(In millions)	Three Months Ended June 30, 2013
Details about Accumulated Other Comprehensive Income Components	Amount Reclassified from Accumulated Other Comprehensive Income				Affected Line Item in the Statements of Earnings
Unrealized foreign currency translation gains (losses)		$	18		Sales and redemptions
		(6		)	Tax (expense) or benefit(1)
		$	12		Net of tax
Unrealized gains (losses) on available-for-sale securities		$	68		Sales and redemptions
		0			Other-than-temporary impairment losses realized
		68			Total before tax
		(24		)	Tax (expense) or benefit(1)
		$	44		Net of tax
Amortization of defined benefit pension items:
Actuarial gains (losses)		$	(4	)	Acquisition and operating expenses(2)
		1			Tax (expense) or benefit(1)
		$	(3	)	Net of tax
Total reclassifications for the period		$	53		Net of tax

⁽¹⁾ Based on 35% tax rate

⁽²⁾ These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see

Note 10 for additional details).

(In millions)	Six Months Ended June 30, 2014
Details about Accumulated Other Comprehensive Income Components	Amount Reclassified from Accumulated Other Comprehensive Income				Affected Line Item in the Statements of Earnings
Unrealized gains (losses) on available-for-sale securities		$	(6	)	Sales and redemptions
		(3		)	Other-than-temporary impairment losses realized
		(9		)	Total before tax
		3			Tax (expense) or benefit(1)
		$	(6	)	Net of tax
Amortization of defined benefit pension items:
Actuarial gains (losses)		$	(6	)	Acquisition and operating expenses(2)
Prior service (cost) credit		9			Acquisition and operating expenses(2)
		(1		)	Tax (expense) or benefit(1)
		$	2		Net of tax
Total reclassifications for the period		$	(4	)	Net of tax

⁽¹⁾ Based on 35% tax rate

⁽²⁾ These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see

Note 10 for additional details).

(In millions)	Six Months Ended June 30, 2013
Details about Accumulated Other Comprehensive Income Components	Amount Reclassified from Accumulated Other Comprehensive Income				Affected Line Item in the Statements of Earnings
Unrealized foreign currency translation gains (losses)		$	24		Sales and redemptions
		(8		)	Tax (expense) or benefit(1)
		$	16		Net of tax
Unrealized gains (losses) on available-for-sale securities		$	181		Sales and redemptions
		(55		)	Other-than-temporary impairment losses realized
		126			Total before tax
		(44		)	Tax (expense) or benefit(1)
		$	82		Net of tax
Amortization of defined benefit pension items:
Actuarial gains (losses)		$	(9	)	Acquisition and operating expenses(2)
		3			Tax (expense) or benefit(1)
		$	(6	)	Net of tax
Total reclassifications for the period		$	92		Net of tax

⁽¹⁾ Based on 35% tax rate

⁽²⁾ These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see

Note 10 for additional details).