SHAREHOLDERS' EQUITY

9 Months Ended

Sep. 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 nine-month periods ended September 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	921		1,254
Balance, end of period	667,967		666,493
Treasury stock:
Balance, beginning of period	207,633		197,453
Purchases of treasury stock:
Open market	11,070		5,571
Other	132		163
Dispositions of treasury stock:
Shares issued to AFL Stock Plan	(930	)	(1,080	)
Exercise of stock options	(316	)	(1,161	)
Other	(121	)	(163	)
Balance, end of period	217,468		200,783
Shares outstanding, end of period	450,499		465,710

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 September 30,				Nine Months Ended September 30,
(In thousands)	2014		2013		2014		2013
Anti-dilutive share-based awards		1,486		1,716		903		2,858

Share Repurchase Program

During the first nine months of 2014, we repurchased 11.1 million shares of our common stock in the open market for $690 million as part of our share repurchase program. During the first nine months of 2013, we repurchased 5.6 million shares of our common stock in the open market for $298 million as part of our share repurchase program. As of September 30, 2014, a remaining balance of 38.1 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 September 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		$	(1,216	)		$	2,915			$	(11	)		$	(82	)		$	1,606
Other comprehensive income before reclassification		(589		)		505				(6		)		1				(89		)
Amounts reclassified from accumulated other comprehensive income		0				(18		)		0				1				(17		)
Net current-period other comprehensive income		(589		)		487				(6		)		2				(106		)
Balance, end of period		$	(1,805	)		$	3,402			$	(17	)		$	(80	)		$	1,500

All amounts in the table above are net of tax.

Three Months Ended September 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		$	(453	)		$	(198	)		$	(11	)		$	(178	)		$	(840	)
Other comprehensive income before reclassification		14				402				3				(2		)		417
Amounts reclassified from accumulated other comprehensive income		21				(61		)		0				2				(38		)
Net current-period other comprehensive income		35				341				3				0				379
Balance, end of period		$	(418	)		$	143			$	(8	)		$	(178	)		$	(461	)

All amounts in the table above are net of tax.

Nine Months Ended September 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		(300		)		2,379				(5		)		2				2,076
Amounts reclassified from accumulated other comprehensive income		0				(12		)		0				(1		)		(13		)
Net current-period other comprehensive income		(300		)		2,367				(5		)		1				2,063
Balance, end of period		$	(1,805	)		$	3,402			$	(17	)		$	(80	)		$	1,500

All amounts in the table above are net of tax.

Nine Months Ended September 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		(756		)		(2,284		)		(3		)		(3		)		(3,046		)
Amounts reclassified from accumulated other comprehensive income		5				(143		)		0				8				(130		)
Net current-period other comprehensive income		(751		)		(2,427		)		(3		)		5				(3,176		)
Balance, end of period		$	(418	)		$	143			$	(8	)		$	(178	)		$	(461	)

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 September 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		$	27		Sales and redemptions
		0			Other-than-temporary impairment losses realized
		27			Total before tax
		(9		)	Tax (expense) or benefit(1)
		$	18		Net of tax
Amortization of defined benefit pension items:
Actuarial gains (losses)		$	(5	)	Acquisition and operating expenses(2)
Prior service (cost) credit		4			Acquisition and operating expenses(2)
		0			Tax (expense) or benefit(1)
		$	(1	)	Net of tax
Total reclassifications for the period		$	17		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 September 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)		$	(32	)	Sales and redemptions
		11			Tax (expense) or benefit(1)
		$	(21	)	Net of tax
Unrealized gains (losses) on available-for-sale securities		$	104		Sales and redemptions
		(10		)	Other-than-temporary impairment losses realized
		94			Total before tax
		(33		)	Tax (expense) or benefit(1)
		$	61		Net of tax
Amortization of defined benefit pension items:
Actuarial gains (losses)		$	(4	)	Acquisition and operating expenses(2)
		2			Tax (expense) or benefit(1)
		$	(2	)	Net of tax
Total reclassifications for the period		$	38		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)	Nine Months Ended September 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		$	21		Sales and redemptions
		(3		)	Other-than-temporary impairment losses realized
		18			Total before tax
		(6		)	Tax (expense) or benefit(1)
		$	12		Net of tax
Amortization of defined benefit pension items:
Actuarial gains (losses)		$	(11	)	Acquisition and operating expenses(2)
Prior service (cost) credit		13			Acquisition and operating expenses(2)
		(1		)	Tax (expense) or benefit(1)
		$	1		Net of tax
Total reclassifications for the period		$	13		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)	Nine Months Ended September 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)		$	(8	)	Sales and redemptions
		3			Tax (expense) or benefit(1)
		$	(5	)	Net of tax
Unrealized gains (losses) on available-for-sale securities		$	285		Sales and redemptions
		(65		)	Other-than-temporary impairment losses realized
		220			Total before tax
		(77		)	Tax (expense) or benefit(1)
		$	143		Net of tax
Amortization of defined benefit pension items:
Actuarial gains (losses)		$	(13	)	Acquisition and operating expenses(2)
		5			Tax (expense) or benefit(1)
		$	(8	)	Net of tax
Total reclassifications for the period		$	130		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).