SHAREHOLDERS’ EQUITY

See Note 1 for a discussion of the stock split that occurred in March 2018. All share and per-share amounts have been adjusted to reflect the stock split for any of the periods presented.

The following table is a reconciliation of the number of shares of the Company's common stock for the three-month periods ended March 31.



(In thousands of shares)	2018		2017
Common stock - issued:
Balance, beginning of period	1,345,762		1,342,498
Exercise of stock options and issuance of restricted shares	1,014		868
Balance, end of period	1,346,776		1,343,366
Treasury stock:
Balance, beginning of period	564,852		530,877
Purchases of treasury stock:
Open market	6,640		16,986
Other	315		288
Dispositions of treasury stock:
Shares issued to AFL Stock Plan	(384	)	(494	)
Exercise of stock options	(305	)	(256	)
Other	(99	)	(40	)
Balance, end of period	571,019		547,361
Shares outstanding, end of period	775,757		796,005

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 March 31,
(In thousands)	2018		2017
Anti-dilutive share-based awards		9		642

Share Repurchase Program

During the first three months of 2018, the Company repurchased 6.6 million shares of its common stock in the open market for $296 million as part of its share repurchase program. During the first three months of 2017, the Company repurchased 17.0 million shares of its common stock in the open market for $600 million as part of its share repurchase program. In August 2017, the Company's board of directors authorized the purchase of an additional 80 million shares of its common stock. As of March 31, 2018, a remaining balance of 91.4 million shares of the Company's common stock was available for purchase under share repurchase authorizations by its 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 March 31, 2018
(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		$	(1,750	)		$	5,964				$	(23	)		$	(163	)		$	4,028
Other comprehensive income (loss) before reclassification		447				(983		)			2				(37		)		(571		)
Amounts reclassified from accumulated other comprehensive income (loss)		0				225			⁽¹⁾		0				3				228
Net current-period other comprehensive income (loss)		447				(758		)			2				(34		)		(343		)
Balance, end of period		$	(1,303	)		$	5,206				$	(21	)		$	(197	)		$	3,685

⁽¹⁾Includes amounts reclassified due to changes in accounting principles of $(148) related to financial instruments and $374 related to tax effects from tax reform

All amounts in the table above are net of tax.



Three Months Ended March 31, 2017
(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		$	(1,983	)		$	4,805			$	(24	)		$	(168	)		$	2,630
Other comprehensive income (loss) before reclassification		333				(341		)		2				(4		)		(10		)
Amounts reclassified from accumulated other comprehensive income (loss)		0				10				0				2				12
Net current-period other comprehensive income (loss)		333				(331		)		2				(2		)		2
Balance, end of period		$	(1,650	)		$	4,474			$	(22	)		$	(170	)		$	2,632

All amounts in the table above are net of tax.

For the three-month period ended March 31, 2018, see Note 1 for discussion of the amounts reclassified between AOCI and retained earnings upon the adoption of new accounting pronouncements.

The tables below summarize the amounts reclassified from each component of accumulated other comprehensive income into net earnings for the following periods.

Reclassifications Out of Accumulated Other Comprehensive Income



(In millions)	Three Months Ended March 31, 2018
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		$	2		Sales and redemptions
		0			Other-than-temporary impairment losses realized
		2			Total before tax
		(1		)	Tax (expense) or benefit⁽¹⁾
		$	1		Net of tax
Amortization of defined benefit pension items:
Actuarial gains (losses)		$	(4	)	Acquisition and operating expenses⁽²⁾
Prior service (cost) credit		0			Acquisition and operating expenses⁽²⁾
		1			Tax (expense) or benefit⁽¹⁾
		$	(3	)	Net of tax
Total reclassifications for the period		$	(2	)	Net of tax

⁽¹⁾Based on 27% blended tax rate

⁽²⁾These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 12 for additional details).



(In millions)	Three Months Ended March 31, 2017
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
		(10		)	Other-than-temporary impairment losses realized
		(16		)	Total before tax
		6			Tax (expense) or benefit⁽¹⁾
		$	(10	)	Net of tax
Amortization of defined benefit pension items:
Actuarial gains (losses)		$	(3	)	Acquisition and operating expenses⁽²⁾
Prior service (cost) credit		0			Acquisition and operating expenses⁽²⁾
		1			Tax (expense) or benefit⁽¹⁾
		$	(2	)	Net of tax
Total reclassifications for the period		$	(12	)	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 12 for additional details)