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 six-month periods ended June 30.



(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	1,299		1,576
Balance, end of period	1,347,061		1,344,074
Treasury stock:
Balance, beginning of period	564,852		530,877
Purchases of treasury stock:
Open market	13,441		22,310
Other	328		346
Dispositions of treasury stock:
Shares issued to AFL Stock Plan	(400	)	(998	)
Exercise of stock options	(327	)	(414	)
Other	(105	)	(44	)
Balance, end of period	577,789		552,077
Shares outstanding, end of period	769,272		791,997

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)	2018		2017		2018		2017
Anti-dilutive share-based awards		48		838		28		740

Share Repurchase Program

During the first six months of 2018, the Company repurchased 13.4 million shares of its common stock in the open market for $601 million as part of its share repurchase program. During the first six months of 2017, the Company repurchased 22.4 million shares of its common stock in the open market for $800 million as part of its share repurchase program. In August 2017, the Company's board of directors authorized the purchase of an additional 40 million shares of its common stock, which increased to 80 million shares in February 2018 in connection with the Company's stock split scheduled for March 2018. As of June 30, 2018, a remaining balance of 84.6 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 June 30, 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		$	(1,303	)		$	5,206			$	(21	)		$	(197	)		$	3,685
Other comprehensive income (loss) before reclassification ⁽¹⁾		(463		)		(391		)		(2		)		(1		)		(857		)
Amounts reclassified from accumulated other comprehensive income (loss)		0				21				0				3				24
Net current-period other comprehensive income (loss)		(463		)		(370		)		(2		)		2				(833		)
Balance, end of period		$	(1,766	)		$	4,836			$	(23	)		$	(195	)		$	2,852

All amounts in the table above are net of tax.



Three Months Ended June 30, 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		$	(1,650	)		$	4,474		$	(22	)		$	(170	)		$	2,632
Other comprehensive income (loss) before reclassification		70				698			(1		)		(2		)		765
Amounts reclassified from accumulated other comprehensive income (loss)		0				1			0				3				4
Net current-period other comprehensive income (loss)		70				699			(1		)		1				769
Balance, end of period		$	(1,580	)		$	5,173		$	(23	)		$	(169	)		$	3,401

All amounts in the table above are net of tax.



Six Months Ended June 30, 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
Cumulative effect of change in accounting principle - financial instruments		0				(148		)		0				0				(148		)
Cumulative effect of change in accounting principle - tax effects from tax reform		(325		)		734				(3		)		(32		)		374
Other comprehensive income (loss) before reclassification ⁽¹⁾		309				(1,733		)		3				(5		)		(1,426		)
Amounts reclassified from accumulated other comprehensive income (loss)		0				19				0				5				24
Net current-period other comprehensive income (loss)		309				(1,714		)		3				0				(1,402		)
Balance, end of period		$	(1,766	)		$	4,836			$	(23	)		$	(195	)		$	2,852

All amounts in the table above are net of tax.

⁽¹⁾ Amounts have been corrected to exclude the cumulative effects of changes in accounting principles for financial instruments and the tax effects from tax reform as identified in the rollforward of Accumulated Other Comprehensive Income within the Consolidated Statements of Shareholder’s Equity.



Six Months Ended June 30, 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		403				357			1				(6		)		755
Amounts reclassified from accumulated other comprehensive income (loss)		0				11			0				5				16
Net current-period other comprehensive income (loss)		403				368			1				(1		)		771
Balance, end of period		$	(1,580	)		$	5,173		$	(23	)		$	(169	)		$	3,401

All amounts in the table above are net of tax.

For the six-month period ended June 30, 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 June 30, 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	)	Other-than-temporary impairment losses realized
		(26		)	Other gains (losses)
		(28		)	Total before tax
		7			Tax (expense) or benefit⁽¹⁾
		$	(21	)	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		$	(24	)	Net of tax

⁽¹⁾Based on 26% 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 June 30, 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	)	Other-than-temporary impairment losses realized
		5			Other gains (losses)
		(1		)	Total before tax
		0			Tax (expense) or benefit⁽¹⁾
		$	(1	)	Net of tax
Amortization of defined benefit pension items:
Actuarial gains (losses)		$	(5	)	Acquisition and operating expenses⁽²⁾
Prior service (cost) credit		0			Acquisition and operating expenses⁽²⁾
		2			Tax (expense) or benefit⁽¹⁾
		$	(3	)	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 12 for additional details)



(In millions)	Six Months Ended June 30, 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	)	Other-than-temporary impairment losses realized
		(24		)	Other gains (losses)
		(26		)	Total before tax
		7			Tax (expense) or benefit⁽¹⁾
		$	(19	)	Net of tax
Amortization of defined benefit pension items:
Actuarial gains (losses)		$	(8	)	Acquisition and operating expenses⁽²⁾
Prior service (cost) credit		0			Acquisition and operating expenses⁽²⁾
		3			Tax (expense) or benefit⁽¹⁾
		$	(5	)	Net of tax
Total reclassifications for the period		$	(24	)	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)	Six Months Ended June 30, 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		$	(16	)	Other-than-temporary impairment losses realized
		(1		)	Other gains (losses)
		(17		)	Total before tax
		6			Tax (expense) or benefit⁽¹⁾
		$	(11	)	Net of tax
Amortization of defined benefit pension items:
Actuarial gains (losses)		$	(8	)	Acquisition and operating expenses⁽²⁾
Prior service (cost) credit		0			Acquisition and operating expenses⁽²⁾
		3			Tax (expense) or benefit⁽¹⁾
		$	(5	)	Net of tax
Total reclassifications for the period		$	(16	)	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)