Shareholders' Equity

6 Months Ended

Jun. 30, 2020

Stockholders' Equity Note [Abstract]

The following tables provide the amounts related to each component of OCI:


	Three Months Ended June 30,
			2020															2019
			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⁾	$	1,532		$	(329)		$	1,203		$	512		$	(60)		$	452
Reclassification of net (gains) losses on securities included in net income ⁽²⁾	(4)			1			(3)			—			—			—
Impact of DAC, DSIC, unearned revenue, benefit reserves and reinsurance recoverables	(637)			134			(503)			(259)			55			(204)
Net unrealized gains (losses) on securities	891			(194)			697			253			(5)			248








Foreign currency translation	(8)			—			(8)			(15)			1			(14)

Total other comprehensive income (loss)	$	883		$	(194)		$	689		$	238		$	(4)		$	234


	Six Months Ended June 30,
			2020															2019
			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⁾	$	337		$	(65)		$	272		$	1,169		$	(201)		$	968
Reclassification of net (gains) losses on securities included in net income ⁽²⁾	4			(1)			3			(5)			1			(4)
Impact of DAC, DSIC, unearned revenue, benefit reserves and reinsurance recoverables	(129)			27			(102)			(499)			105			(394)
Net unrealized gains (losses) on securities	212			(39)			173			665			(95)			570
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	(42)			1			(41)			(9)			—			(9)

Total other comprehensive income (loss)	$	170		$	(38)		$	132		$	655		$	(95)		$	560

⁽¹⁾ Includes impairments on Available-for-Sale securities related to factors other than credit that were recognized in OCI during the period.

⁽²⁾ Reclassification amounts are recorded in net investment income.

⁽³⁾ Includes nil and $1 million pretax gain reclassified to interest and debt expense for the six months ended June 30, 2020 and 2019, respectively.

Other comprehensive income (loss) related to net unrealized gains (losses) on securities 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 impairments 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, April 1, 2020	$	52		$	6	$	(138)	$	(214)	$	(1)	$	(295)

OCI before reclassifications	700			—		—		(8)		—		692
Amounts reclassified from AOCI	(3)			—		—		—		—		(3)
Total OCI	697			—		—		(8)		—		689
Balance, June 30, 2020	$	749	(1)	$	6	$	(138)	$	(222)	$	(1)	$	394

Balance, January 1, 2020	$	576		$	6	$	(138)	$	(181)	$	(1)	$	262

OCI before reclassifications	170			—		—		(41)		—		129
Amounts reclassified from AOCI	3			—		—		—		—		3
Total OCI	173			—		—		(41)		—		132
Balance, June 30, 2020	$	749	(1)	$	6	$	(138)	$	(222)	$	(1)	$	394


	Net Unrealized Gains (Losses) on Securities			Net Unrealized Gains (Losses) on Derivatives		Defined Benefit Plans		Foreign Currency Translation		Other		Total
			(in millions)
Balance, April 1, 2019	$	342		$	7	$	(120)	$	(193)	$	(1)	$	35

OCI before reclassifications	248			—		—		(14)		—		234
Amounts reclassified from AOCI	—			—		—		—		—		—
Total OCI	248			—		—		(14)		—		234
Balance, June 30, 2019	$	590	(1)	$	7	$	(120)	$	(207)	$	(1)	$	269

Balance, January 1, 2019	$	20		$	8	$	(120)	$	(198)	$	(1)	$	(291)

OCI before reclassifications	574			—		—		(9)		—		565
Amounts reclassified from AOCI	(4)			(1)		—		—		—		(5)
Total OCI	570			(1)		—		(9)		—		560
Balance, June 30, 2019	$	590	(1)	$	7	$	(120)	$	(207)	$	(1)	$	269

⁽¹⁾ Includes nil and $(1) million of noncredit related impairments on securities and net unrealized gains (losses) on previously impaired securities as of June 30, 2020 and June 30, 2019, respectively.

For the six months ended June 30, 2020 and 2019, the Company repurchased a total of 4.3 million shares and 5.8 million shares, respectively, of its common stock for an aggregate cost of $637 million and $791 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, which was exhausted in the second quarter of 2019. 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. As of June 30, 2020, the Company had $473 million remaining under this 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, 2020 and 2019, the Company reacquired 0.3 million shares and 0.3 million shares, respectively, of its common stock through the surrender of shares upon vesting and paid in the aggregate $47 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, 2020 and 2019, the Company reacquired 0.6 million shares and 0.4 million shares, respectively, of its common stock through the net settlement of options for an aggregate value of $110 million and $51 million, respectively.

During the six months ended June 30, 2020 and 2019, the Company reissued 0.5 million and 0.7 million, respectively, treasury shares for restricted stock award grants, performance share units and issuance of shares vested under advisor deferred compensation plans.