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Shareholders' Equity
 3 Months Ended
Mar. 31, 2019
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 March 31,
2019
 
2018
Pretax
 
Income Tax Benefit (Expense)
 
Net of Tax
Pretax
 
Income Tax Benefit (Expense)
 
Net of Tax
(in millions)
Net unrealized gains (losses) on securities:
 
 
 
 
 
 
 
 
 
 
 
  Net unrealized gains (losses) on securities arising during the period (1)
$
657

 
$
(141
)
 
$
516

 
$
(552
)
 
$
123

 
$
(429
)
  Reclassification of net (gains) losses on securities included in net income (2)
(5
)
 
1

 
(4
)
 
(5
)
 
1

 
(4
)
  Impact of deferred acquisition costs, deferred sales inducement costs, unearned revenue, benefit reserves and reinsurance recoverables
(240
)
 
50

 
(190
)
 
216

 
(45
)
 
171

Net unrealized gains (losses) on securities
412

 
(90
)
 
322

 
(341
)
 
79

 
(262
)
 
 
 
 
 
 
 
 
 
 
 
 
Net unrealized gains (losses) on derivatives:
 
 
 
 
 
 
 
 
 
 
 
  Reclassification of net (gains) losses on derivatives included in net income (3)
(1
)
 
—

 
(1
)
 
—

 
—

 
—

Net unrealized gains (losses) on derivatives
(1
)
 
—

 
(1
)
 
—

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency translation
6

 
(1
)
 
5

 
37

 
(8
)
 
29

Other
—

 
—

 
—

 
—

 
—

 
—

Total other comprehensive income (loss)
$
417

 
$
(91
)
 
$
326

 
$
(304
)
 
$
71

 
$
(233
)

(1) Includes OTTI losses on Available-for-Sale securities related to factors other than credit that were recognized in other comprehensive income (loss) during the period.
(2) Reclassification amounts are recorded in net investment income.
(3) Includes $1 million pretax gain reclassified to interest and debt expense for the three months ended March 31, 2019.
 
 
 
 
 
 
 
 
 
 
 
 
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 OTTI 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 Gains (Losses) on Securities
 
Net Unrealized Gains (Losses) on Derivatives
 
Defined
Benefit Plans
 
Foreign Currency Translation
 
Other
 
Total
(in millions)
Balance, January 1, 2019
$
20

 
$
8

 
$
(120
)
 
$
(198
)
 
$
(1
)
 
$
(291
)
OCI before reclassifications
326

 
—

 
—

 
5

 
—

 
331

Amounts reclassified from AOCI
(4
)
 
(1
)
 
—

 
—

 
—

 
(5
)
Total OCI
322

 
(1
)
 
—

 
5

 
—

 
326

Balance, March 31, 2019
$
342

(1) 
$
7

 
$
(120
)
 
$
(193
)
 
$
(1
)
 
$
35

 
Net Unrealized Gains (Losses) on Securities
 
Net Unrealized Gains (Losses) on Derivatives
 
Defined
Benefit Plans
 
Foreign Currency Translation
 
Other
 
Total
(in millions)
Balance, January 1, 2018
$
486

 
$
8

 
$
(97
)
 
$
(167
)
 
$
(1
)
 
$
229

Cumulative effect of change in accounting policies
(1
)
 
—

 
—

 
—

 
—

 
(1
)
OCI before reclassifications
(258
)
 
—

 
—

 
29

 
—

 
(229
)
Amounts reclassified from AOCI
(4
)
 
—

 
—

 
—

 
—

 
(4
)
Total OCI
(262
)
 
—

 
—

 
29

 
—

 
(233
)
Balance, March 31, 2018
$
223

(1) 
$
8

 
$
(97
)
 
$
(138
)
 
$
(1
)
 
$
(5
)
(1) Includes $(4) million and nil of noncredit related impairments on securities and net unrealized gains (losses) on previously impaired securities as of March 31, 2019 and March 31, 2018, respectively.
For the three months ended March 31, 2019 and 2018, the Company repurchased a total of 2.8 million shares and 2.4 million shares, respectively, of its common stock for an aggregate cost of $355 million and $387 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 March 31, 2019, the Company had $154 million remaining under this share repurchase authorization. In February 2019, the Company’s Board of Directors authorized an additional repurchase up to $2.5 billion of the Company’s common stock through March 31, 2021.
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 three months ended March 31, 2019 and 2018, the Company reacquired 0.3 million shares and 0.2 million shares, respectively, of its common stock through the surrender of shares upon vesting and paid in the aggregate $29 million and $39 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 three months ended March 31, 2019 and 2018, the Company reacquired 0.1 million shares and 0.4 million shares, respectively, of its common stock through the net settlement of options for an aggregate value of $15 million and $56 million, respectively.
During the three months ended March 31, 2019 and 2018, the Company reissued 0.7 million and 0.8 million, respectively, treasury shares for restricted stock award grants, performance share units and issuance of shares vested under advisor deferred compensation plans.