SHAREHOLDERS' EQUITY

9 Months Ended

Sep. 30, 2021

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)	2021	2020
Common stock - issued:
Balance, beginning of period	1,351,018	1,349,309
Exercise of stock options and issuance of restricted shares	1,544	1,546
Balance, end of period	1,352,562	1,350,855
Treasury stock:
Balance, beginning of period	658,564	622,516
Purchases of treasury stock:
Share repurchase program	32,186	26,108
Other	419	541
Dispositions of treasury stock:
Shares issued to AFL Stock Plan	(967)	(1,584)
Exercise of stock options	(240)	(49)
Other	(217)	(251)
Balance, end of period	689,745	647,281
Shares outstanding, end of period	662,817	703,574

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)	2021		2020		2021		2020
Anti-dilutive share-based awards		0		592		1		857

Share Repurchase Program

During the first nine months of 2021, the Company repurchased 32.2 million shares of its common stock for $1.7 billion as part of its share repurchase program. During the first nine months of 2020, the Company repurchased 26.1 million shares of its common stock for $1.0 billion as part of its share repurchase program. As of September 30, 2021, a remaining balance of 67.0 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 September 30, 2021
(In millions)	Unrealized Foreign Currency Translation Gains (Losses)			Unrealized Gains (Losses) on Fixed Maturity Securities			Unrealized Gains (Losses) on Derivatives			Pension Liability Adjustment			Total
Balance at June 30, 2021		$	(1,661)		$	9,992		$	(33)		$	(279)		$	8,019
Other comprehensive    income (loss) before    reclassification		(99)			(251)			0			(5)			(355)
Amounts reclassified from    accumulated other    comprehensive income   (loss)		0			(10)			2			6			(2)
Net current-period other    comprehensive    income (loss)		(99)			(261)			2			1			(357)
Balance at September 30, 2021		$	(1,760)		$	9,731		$	(31)		$	(278)		$	7,662

All amounts in the table above are net of tax.

Three Months Ended September 30, 2020
(In millions)	Unrealized Foreign Currency Translation Gains (Losses)			Unrealized Gains (Losses) on Fixed Maturity Securities			Unrealized Gains (Losses) on Derivatives			Pension Liability Adjustment			Total
Balance at June 30, 2020		$	(1,469)		$	8,532		$	(36)		$	(277)		$	6,750
Other comprehensive    income (loss) before    reclassification		179			995			1			(5)			1,170
Amounts reclassified from    accumulated other    comprehensive income   (loss)		0			(7)			0			4			(3)
Net current-period other    comprehensive    income (loss)		179			988			1			(1)			1,167
Balance at September 30, 2020		$	(1,290)		$	9,520		$	(35)		$	(278)		$	7,917

All amounts in the table above are net of tax.

Nine Months Ended September 30, 2021
(In millions)	Unrealized Foreign Currency Translation Gains (Losses)			Unrealized Gains (Losses) on Fixed Maturity Securities			Unrealized Gains (Losses) on Derivatives			Pension Liability Adjustment			Total
Balance at December 31, 2020		$	(1,109)		$	10,361		$	(34)		$	(284)		$	8,934
Other comprehensive    income (loss) before    reclassification		(651)			(632)			0			(15)			(1,298)
Amounts reclassified from    accumulated other    comprehensive income   (loss)		0			2			3			21			26
Net current-period other    comprehensive    income (loss)		(651)			(630)			3			6			(1,272)
Balance at September 30, 2021		$	(1,760)		$	9,731		$	(31)		$	(278)		$	7,662

All amounts in the table above are net of tax.

Nine Months Ended September 30, 2020
(In millions)	Unrealized Foreign Currency Translation Gains (Losses)			Unrealized Gains (Losses) on Fixed Maturity Securities			Unrealized Gains (Losses) on Derivatives			Pension Liability Adjustment			Total
Balance at December 31, 2019		$	(1,623)		$	8,548		$	(33)		$	(277)		$	6,615
Cumulative effect of change    in accounting principle -    ASU 2019-04		0			848			0			0			848
Balance at January 1, 2020		$	(1,623)		$	9,396		$	(33)		$	(277)		$	7,463
Other comprehensive    income (loss) before    reclassification		333			20			(2)			(18)			333
Amounts reclassified from    accumulated other    comprehensive income   (loss)		0			104			0			17			121
Net current-period other    comprehensive    income (loss)		333			124			(2)			(1)			454
Balance at September 30, 2020		$	(1,290)		$	9,520		$	(35)		$	(278)		$	7,917

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 into net earnings for the following periods.

Reclassifications Out of Accumulated Other Comprehensive Income

(In millions)	Three Months Ended September 30, 2021
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		$	13	Net investment gains (losses)
		(3)		Tax (expense) or benefit(1)
		$	10	Net of tax
Unrealized gains (losses) on derivatives		$	(2)	Net investment gains (losses)
		0		Tax (expense) or benefit(1)
		$	(2)	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)
		2		Tax (expense) or benefit(1)
		$	(6)	Net of tax
Total reclassifications for the period		$	2	Net of tax

(1) Based on 21% tax rate

(2) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 11 for additional details).

(In millions)	Three Months Ended September 30, 2020
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		$	13	Net investment gains (losses)
		(6)		Tax (expense) or benefit(1)
		$	7	Net of tax
Amortization of defined benefit pension items:
Actuarial gains (losses)		$	(7)	Acquisition and operating expenses(2)
Prior service (cost) credit		0		Acquisition and operating expenses(2)
		3		Tax (expense) or benefit(1)
		$	(4)	Net of tax
Total reclassifications for the period		$	3	Net of tax

(1) Based on 21% tax rate, with a cumulative adjustment to the first six months of 2020 due to the effects of Final and Proposed Regulations released on September 29, 2020 by the U.S. Treasury and Internal Revenue Service and addressing, among other items, the allocation of insurance expenses in the calculation of the foreign tax credit limitation. See Note 10 of the Notes to the Consolidated Financial Statements in the Company's 2020 Annual Report on Form 10-K.

(2) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 11 for additional details).

(In millions)	Nine Months Ended September 30, 2021
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)	Net investment gains (losses)
		0		Tax (expense) or benefit(1)
		$	(2)	Net of tax
Unrealized gains (losses) on derivatives		$	(4)	Net investment gains (losses)
		1		Tax (expense) or benefit(1)
		$	(3)	Net of tax
Amortization of defined benefit pension items:
Actuarial gains (losses)		$	(27)	Acquisition and operating expenses(2)
Prior service (cost) credit		0		Acquisition and operating expenses(2)
		6		Tax (expense) or benefit(1)
		$	(21)	Net of tax
Total reclassifications for the period		$	(26)	Net of tax

(1) Based on 21% tax rate

(2) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 11 for additional details).

(In millions)	Nine Months Ended September 30, 2020
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		$	(132)	Net investment gains (losses)
		28		Tax (expense) or benefit(1)
		$	(104)	Net of tax
Amortization of defined benefit pension items:
Actuarial gains (losses)		$	(22)	Acquisition and operating expenses(2)
Prior service (cost) credit		0		Acquisition and operating expenses(2)
		5		Tax (expense) or benefit(1)
		$	(17)	Net of tax
Total reclassifications for the period		$	(121)	Net of tax

(1) Based on 21% tax rate

(2) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 11 for additional details).