SHAREHOLDERS' EQUITY

9 Months Ended

Sep. 30, 2023

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)	2023	2022
Common stock - issued:
Balance, beginning of period	1,354,079	1,352,739
Exercise of stock options and issuance of restricted shares	1,233	1,230
Balance, end of period	1,355,312	1,353,969
Treasury stock:
Balance, beginning of period	738,823	700,607
Purchases of treasury stock:
Share repurchase program	30,199	30,249
Other	360	354
Dispositions of treasury stock:
Shares issued to AFL Stock Plan	(707)	(787)
Exercise of stock options	(81)	(108)
Other	(179)	(214)
Balance, end of period	768,415	730,101
Shares outstanding, end of period	586,897	623,868

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)	2023		2022		2023		2022
Anti-dilutive share-based awards		0		53		68		158

Share Repurchase Program

During the first nine months of 2023, the Company repurchased 30.2 million shares of its common stock for $2.1 billion as part of its 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. As of September 30, 2023, a remaining balance of 86.4 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 September 30, 2023
(In millions)	Unrealized Foreign Currency Translation Gains (Losses)			Unrealized Gains (Losses) on Fixed Maturity Securities			Unrealized Gains (Losses) on Derivatives			Effect of Changes in Discount Rate Assumptions			Pension Liability Adjustment			Total
Balance at June 30, 2023		$	(4,249)		$	1,978		$	(25)		$	(5,059)		$	17		$	(7,338)
Other comprehensive    income (loss) before    reclassification		(235)			(2,349)			0			4,193			0			1,609
Amounts reclassified from    accumulated other    comprehensive income   (loss)		0			(32)			1			0			0			(31)
Net current-period other    comprehensive    income (loss)		(235)			(2,381)			1			4,193			0			1,578
Balance at September 30, 2023		$	(4,484)		$	(403)		$	(24)		$	(866)		$	17		$	(5,760)

All amounts in the table above are net of tax.

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			Effect of Changes in Discount Rate Assumptions			Pension Liability Adjustment			Total
Balance at June 30, 2022		$	(3,218)		$	2,930		$	(29)		$	(6,503)		$	(160)		$	(6,980)
Other comprehensive    income (loss) before    reclassification		(1,156)			(1,753)			(1)			2,428			(4)			(486)
Amounts reclassified from    accumulated other    comprehensive income   (loss)		0			(46)			1			0			6			(39)
Net current-period other    comprehensive    income (loss)		(1,156)			(1,799)			0			2,428			2			(525)
Balance at September 30, 2022		$	(4,374)		$	1,131		$	(29)		$	(4,075)		$	(158)		$	(7,505)

All amounts in the table above are net of tax.

Prior-year amounts have been adjusted for the adoption of accounting guidance on January 1, 2023 related to accounting for long-duration insurance contracts.

Nine Months Ended September 30, 2023
(In millions)	Unrealized Foreign Currency Translation Gains (Losses)			Unrealized Gains (Losses) on Fixed Maturity Securities			Unrealized Gains (Losses) on Derivatives			Effect of Changes in Discount Rate Assumptions			Pension Liability Adjustment			Total
Balance at December 31, 2022		$	(3,564)		$	(702)		$	(27)		$	(2,100)		$	(36)		$	(6,429)
Other comprehensive    income (loss) before    reclassification		(920)			398			0			1,234			52			764
Amounts reclassified from    accumulated other    comprehensive income   (loss)		0			(99)			3			0			1			(95)
Net current-period other    comprehensive    income (loss)		(920)			299			3			1,234			53			669
Balance at September 30, 2023		$	(4,484)		$	(403)		$	(24)		$	(866)		$	17		$	(5,760)

All amounts in the table above are net of tax.

Prior-year amounts have been adjusted for the adoption of accounting guidance on January 1, 2023 related to accounting for long-duration insurance contracts.

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			Effect of Changes in Discount Rate Assumptions			Pension Liability Adjustment			Total
Balance at December 31, 2021		$	(1,985)		$	9,602		$	(30)		$	(15,832)		$	(166)		$	(8,411)
Other comprehensive    income (loss) before    reclassification		(2,389)			(8,272)			(1)			11,757			(6)			1,089
Amounts reclassified from    accumulated other    comprehensive income   (loss)		0			(199)			2			0			14			(183)
Net current-period other    comprehensive    income (loss)		(2,389)			(8,471)			1			11,757			8			906
Balance at September 30, 2022		$	(4,374)		$	1,131		$	(29)		$	(4,075)		$	(158)		$	(7,505)

All amounts in the table above are net of tax.

Prior-year amounts have been adjusted for the adoption of accounting guidance on January 1, 2023 related to accounting for long-duration insurance contracts.

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, 2023
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		$	41	Net investment gains (losses)
		(9)		Tax (expense) or benefit(1)
		$	32	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)		$	0	Acquisition and operating expenses(2)
Prior service (cost) credit		0		Acquisition and operating expenses(2)
		0		Tax (expense) or benefit(1)
		$	0	Net of tax
Total reclassifications for the period		$	31	Net of tax

(1) Based on 21% tax rate

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

(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 benefit cost (see Note 12 for additional details).

(In millions)	Nine Months Ended September 30, 2023
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		$	125	Net investment gains (losses)
		(26)		Tax (expense) or benefit(1)
		$	99	Net of tax
Unrealized gains (losses) on derivatives		$	(3)	Net investment gains (losses)
		(1)		Net investment income
		(4)		Total before tax
		1		Tax (expense) or benefit(1)
		$	(3)	Net of tax
Amortization of defined benefit pension items:
Actuarial gains (losses)		$	(1)	Acquisition and operating expenses(2)
Prior service (cost) credit		0		Acquisition and operating expenses(2)
		0		Tax (expense) or benefit(1)
		$	(1)	Net of tax
Total reclassifications for the period		$	95	Net of tax

(1) Based on 21% tax rate

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