SHAREHOLDERS' EQUITY

9 Months Ended

Sep. 30, 2022

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)	2022	2021
Common stock - issued:
Balance, beginning of period	1,352,739	1,351,018
Exercise of stock options and issuance of restricted shares	1,230	1,544
Balance, end of period	1,353,969	1,352,562
Treasury stock:
Balance, beginning of period	700,607	658,564
Purchases of treasury stock:
Share repurchase program	30,249	32,186
Other	354	419
Dispositions of treasury stock:
Shares issued to AFL Stock Plan	(787)	(967)
Exercise of stock options	(108)	(240)
Other	(214)	(217)
Balance, end of period	730,101	689,745
Shares outstanding, end of period	623,868	662,817

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 EPS for the following periods.

	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands)	2022		2021		2022		2021
Anti-dilutive share-based awards		53		0		158		1

Share Repurchase Program

During the first nine months of 2022, the Company repurchased 30.2 million shares of its common stock for $1.8 billion as part of its 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. As of September 30, 2022, a remaining balance of 25.6 million shares of the Company's common stock was available for purchase under share repurchase authorizations by its board of directors.

In August 2022, the Inflation Reduction Act of 2022 (IRA) was signed into U.S. law. Effective January 1, 2023, the law will impose a 1% excise tax on the Company’s repurchases of its common stock.

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, 2022
(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, 2022		$	(3,289)		$	2,930		$	(29)		$	(160)		$	(548)
Other comprehensive    income (loss) before    reclassification		(1,166)			(1,753)			(1)			(4)			(2,924)
Amounts reclassified from    accumulated other    comprehensive income   (loss)		0			(46)			1			6			(39)
Net current-period other    comprehensive    income (loss)		(1,166)			(1,799)			0			2			(2,963)
Balance at September 30, 2022		$	(4,455)		$	1,131		$	(29)		$	(158)		$	(3,511)

All amounts in the table above are net of tax.

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.

Nine Months Ended September 30, 2022
(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, 2021		$	(2,013)		$	9,602		$	(30)		$	(166)		$	7,393
Other comprehensive    income (loss) before    reclassification		(2,442)			(8,272)			(1)			(6)			(10,721)
Amounts reclassified from    accumulated other    comprehensive income   (loss)		0			(199)			2			14			(183)
Net current-period other    comprehensive    income (loss)		(2,442)			(8,471)			1			8			(10,904)
Balance at September 30, 2022		$	(4,455)		$	1,131		$	(29)		$	(158)		$	(3,511)

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.

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, 2022
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		$	58	Net investment gains (losses)
		(12)		Tax (expense) or benefit(1)
		$	46	Net of tax
Unrealized gains (losses) on derivatives		$	(1)	Net investment gains (losses)
		0		Tax (expense) or benefit(1)
		$	(1)	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)
		1		Tax (expense) or benefit(1)
		$	(6)	Net of tax
Total reclassifications for the period		$	39	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 12 for additional details).

(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 12 for additional details).

(In millions)	Nine Months Ended September 30, 2022
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		$	252	Net investment gains (losses)
		(53)		Tax (expense) or benefit(1)
		$	199	Net of tax
Unrealized gains (losses) on derivatives		$	(3)	Net investment gains (losses)
		1		Tax (expense) or benefit(1)
		$	(2)	Net of tax
Amortization of defined benefit pension items:
Actuarial gains (losses)		$	(18)	Acquisition and operating expenses(2)
Prior service (cost) credit		0		Acquisition and operating expenses(2)
		4		Tax (expense) or benefit(1)
		$	(14)	Net of tax
Total reclassifications for the period		$	183	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 12 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 12 for additional details).