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Shareholders' Equity
 6 Months Ended
Jun. 30, 2018
Stockholders' Equity Note [Abstract]  
Shareholders' Equity [Text Block]
Shareholders’ Equity
The following tables provide the amounts related to each component of OCI:
 
Three Months Ended June 30,
2018
 
2017
Pretax
 
Income Tax Benefit (Expense)
 
Net of Tax
Pretax
 
Income Tax Benefit (Expense)
 
Net of Tax
(in millions)
Net unrealized securities gains (losses):
 
 
 
 
 
 
 
 
 
 
 
Net unrealized securities gains (losses) arising during the period (1)
$
(266
)
 
$
59

 
$
(207
)
 
$
191

 
$
(68
)
 
$
123

Reclassification of net securities (gains) losses included in net income (2)
(5
)
 
1

 
(4
)
 
(21
)
 
8

 
(13
)
Impact of deferred acquisition costs, deferred sales inducement costs, unearned revenue, benefit reserves and reinsurance recoverables
103

 
(22
)
 
81

 
(81
)
 
28

 
(53
)
Net unrealized securities gains (losses)
(168
)
 
38

 
(130
)
 
89

 
(32
)
 
57

 
 
 
 
 
 
 
 
 
 
 
 
Net unrealized derivatives gains (losses):
 
 
 
 
 
 
 
 
 
 
 
Reclassification of net derivative (gains) losses included in net income (3)
—

 
—

 
—

 
—

 
—

 
—

Net unrealized derivatives gains (losses)
—

 
—

 
—

 
—

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
Defined benefit plans:
 
 
 
 
 
 
 
 
 
 
 
Net gain (loss) arising during the period
—

 
—

 
—

 
—

 
—

 
—

Defined benefit plans
—

 
—

 
—

 
—

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency translation
(46
)
 
2

 
(44
)
 
35

 
(12
)
 
23

Other
—

 
—

 
—

 
—

 
—

 
—

Total other comprehensive income (loss)
$
(214
)
 
$
40

 
$
(174
)
 
$
124

 
$
(44
)
 
$
80


 
Six Months Ended June 30,
2018
 
2017
Pretax
 
Income Tax Benefit (Expense)
 
Net of Tax
Pretax
 
Income Tax Benefit (Expense)
 
Net of Tax
(in millions)
Net unrealized securities gains (losses):
 
 
 
 
 
 
 
 
 
 
 
Net unrealized securities gains (losses) arising during the period (1)
$
(818
)
 
$
182

 
$
(636
)
 
$
244

 
$
(85
)
 
$
159

Reclassification of net securities (gains) losses included in net income (2)
(10
)
 
2

 
(8
)
 
(39
)
 
14

 
(25
)
Impact of deferred acquisition costs, deferred sales inducement costs, unearned revenue, benefit reserves and reinsurance recoverables
319

 
(67
)
 
252

 
(107
)
 
37

 
(70
)
Net unrealized securities gains (losses)
(509
)
 
117

 
(392
)
 
98

 
(34
)
 
64

 
 
 
 
 
 
 
 
 
 
 
 
Net unrealized derivatives gains (losses):
 
 
 
 
 
 
 
 
 
 
 
Reclassification of net derivative (gains) losses included in net income (4)
—

 
—

 
—

 
2

 
(1
)
 
1

Net unrealized derivatives gains (losses)
—

 
—

 
—

 
2

 
(1
)
 
1

 
 
 
 
 
 
 
 
 
 
 
 
Defined benefit plans:
 
 
 
 
 
 
 
 
 
 
 
Net gain (loss) arising during the period
—

 
—

 
—

 
7

 
(2
)
 
5

Defined benefit plans
—

 
—

 
—

 
7

 
(2
)
 
5

 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency translation
(16
)
 
1

 
(15
)
 
46

 
(16
)
 
30

Other
—

 
—

 
—

 
(1
)
 
—

 
(1
)
Total other comprehensive income (loss)
$
(525
)
 
$
118

 
$
(407
)
 
$
152

 
$
(53
)
 
$
99


(1) Includes other-than-temporary impairment losses on Available-for-Sale securities related to factors other than credit that were recognized in other comprehensive income (loss) during the period.
(2) Pretax amounts are recorded in net investment income.
(3) Includes a $1 million pretax gain reclassified to interest and debt expense for both the three months ended June 30, 2018 and 2017, and a $1 million pretax loss reclassified to net investment income for both the three months ended June 30, 2018 and 2017.
(4) Includes a $1 million pretax gain reclassified to interest and debt expense for both the six months ended June 30, 2018 and 2017, and a $1 million and $2 million pretax loss reclassified to net investment income for the six months ended June 30, 2018 and 2017, respectively.
Other comprehensive income (loss) related to net unrealized securities gains (losses) includes three components: (i) unrealized gains (losses) that arose from changes in the market value of securities that were held during the period; (ii) (gains) losses that were previously unrealized, but have been recognized in current period net income due to sales of Available-for-Sale securities and due to the reclassification of noncredit other-than-temporary impairment losses to credit losses; and (iii) other adjustments primarily consisting of changes in insurance and annuity asset and liability balances, such as DAC, DSIC, unearned revenue, benefit reserves and reinsurance recoverables, to reflect the expected impact on their carrying values had the unrealized gains (losses) been realized as of the respective balance sheet dates.
The following tables present the changes in the balances of each component of AOCI, net of tax:
 
Net Unrealized Securities Gains (Losses)
 
Net Unrealized Derivatives Gains (Losses)
 
Defined
Benefit Plans
 
Foreign Currency Translation
 
Other
 
Total
(in millions)
Balance, April 1, 2018
$
223

 
$
8

 
$
(97
)
 
$
(138
)
 
$
(1
)
 
$
(5
)
OCI before reclassifications
(126
)
 
—

 
—

 
(44
)
 
—

 
(170
)
Amounts reclassified from AOCI
(4
)
 
—

 
—

 
—

 
—

 
(4
)
Total OCI
(130
)
 
—

 
—

 
(44
)
 
—

 
(174
)
Balance, June 30, 2018
$
93

(1) 
$
8

 
$
(97
)
 
$
(182
)
 
$
(1
)
 
$
(179
)
 
 
 
 
 
 
 
 
 
 
 
 
Balance, January 1, 2018
$
486

 
$
8

 
$
(97
)
 
$
(167
)
 
$
(1
)
 
$
229

Cumulative effect of change in accounting policies
(1
)
 
—

 
—

 
—

 
—

 
(1
)
OCI before reclassifications
(384
)
 
—

 
—

 
(15
)
 
—

 
(399
)
Amounts reclassified from AOCI
(8
)
 
—

 
—

 
—

 
—

 
(8
)
Total OCI
(392
)
 
—

 
—

 
(15
)
 
—

 
(407
)
Balance, June 30, 2018
$
93

(1) 
$
8

 
$
(97
)
 
$
(182
)
 
$
(1
)
 
$
(179
)
 
Net Unrealized Securities Gains (Losses)
 
Net Unrealized Derivatives Gains (Losses)
 
Defined
Benefit Plans
 
Foreign Currency Translation
 
Other
 
Total
(in millions)
Balance, April 1, 2017
$
486

 
$
6

 
$
(120
)
 
$
(152
)
 
$
(1
)
 
$
219

OCI before reclassifications
70

 
—

 
—

 
23

 
—

 
93

Amounts reclassified from AOCI
(13
)
 
—

 
—

 
—

 
—

 
(13
)
Total OCI
57

 
—

 
—

 
23

 
—

 
80

Balance, June 30, 2017
$
543

(1) 
$
6

 
$
(120
)
 
$
(129
)
 
$
(1
)
 
$
299

 
 
 
 
 
 
 
 
 
 
 
 
Balance, January 1, 2017
$
479

 
$
5

 
$
(125
)
 
$
(159
)
 
$
—

 
$
200

OCI before reclassifications
89

 
—

 
—

 
30

 
(1
)
 
118

Amounts reclassified from AOCI
(25
)
 
1

 
5

 
—

 
—

 
(19
)
Total OCI
64

 
1

 
5

 
30

 
(1
)
 
99

Balance, June 30, 2017
$
543

(1) 
$
6

 
$
(120
)
 
$
(129
)
 
$
(1
)
 
$
299

(1) Includes $1 million and $4 million of noncredit related impairments on securities and net unrealized securities gains (losses) on previously impaired securities as of June 30, 2018 and June 30, 2017, respectively.
For the six months ended June 30, 2018 and 2017, the Company repurchased a total of 5.3 million shares and 5.7 million shares, respectively, of its common stock for an aggregate cost of $787 million and $709 million, respectively. In April 2017, the Company’s Board of Directors authorized an expenditure of up to $2.5 billion for the repurchase of shares of the Company’s common stock through June 30, 2019. As of June 30, 2018, the Company had $1.3 billion remaining under its share repurchase authorization.
The Company may also reacquire shares of its common stock under its share-based compensation plans related to restricted stock awards and certain option exercises. The holders of restricted shares may elect to surrender a portion of their shares on the vesting date to cover their income tax obligation. These vested restricted shares are reacquired by the Company and the Company’s payment of the holders’ income tax obligations are recorded as a treasury share purchase.
For the six months ended June 30, 2018 and 2017, the Company reacquired 0.2 million shares and 0.2 million shares, respectively, of its common stock through the surrender of shares upon vesting and paid in the aggregate $39 million and $30 million, respectively, related to the holders’ income tax obligations on the vesting date. Option holders may elect to net settle their vested awards resulting in the surrender of the number of shares required to cover the strike price and tax obligation of the options exercised. These shares are reacquired by the Company and recorded as treasury shares. For the six months ended June 30, 2018 and 2017, the Company reacquired 0.5 million shares and 1.1 million shares, respectively, of its common stock through the net settlement of options for an aggregate value of $74 million and $138 million, respectively.
During both the six months ended June 30, 2018 and 2017, the Company reissued 0.8 million treasury shares for restricted stock award grants, performance share units and issuance of shares vested under advisor deferred compensation plans.