Shareholders' Equity

3 Months Ended

Mar. 31, 2021

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


	Three Months Ended March 31,
	2021						2020
	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)	$	(690)	$	152	$	(538)	$	(1,195)	$	264	$	(931)
Reclassification of net (gains) losses on securities included in net income (2)	(50)		11		(39)		8		(2)		6
Impact of DAC, DSIC, unearned revenue, benefit reserves and reinsurance recoverables	300		(63)		237		508		(107)		401
Net unrealized gains (losses) on securities	(440)		100		(340)		(679)		155		(524)





Defined benefit plans	37		(8)		29		—		—		—
Foreign currency translation	(1)		—		(1)		(34)		1		(33)
Total other comprehensive income (loss)	$	(404)	$	92	$	(312)	$	(713)	$	156	$	(557)

(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.

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 fair 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, January 1, 2021	$	983	$	5	$	(204)	$	(154)	$	(1)	$	629

OCI before reclassifications	(301)		—		29		(1)		—		(273)
Amounts reclassified from AOCI	(39)		—		—		—		—		(39)
Total OCI	(340)		—		29		(1)		—		(312)
Balance, March 31, 2021	$	643	$	5	$	(175)	$	(155)	$	(1)	$	317


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

OCI before reclassifications	(530)		—		—		(33)		—		(563)
Amounts reclassified from AOCI	6		—		—		—		—		6
Total OCI	(524)		—		—		(33)		—		(557)
Balance, March 31, 2020	$	52	$	6	$	(138)	$	(214)	$	(1)	$	(295)

For the three months ended March 31, 2021 and 2020, the Company repurchased a total of 1.7 million shares and 2.5 million shares, respectively, of its common stock for an aggregate cost of $363 million and $386 million, respectively. In August 2020, the Company’s Board of Directors authorized a repurchase of up to $2.5 billion for the repurchase of shares of the Company’s common stock through September 30, 2022. As of March 31, 2021, the Company had $1.9 billion remaining under the 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 three months ended March 31, 2021 and 2020, 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 $57 million and $46.0 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, 2021 and 2020, the Company reacquired 0.6 million shares and 0.6 million shares, respectively, of its common stock through the net settlement of options for an aggregate value of $134 million and $105 million, respectively.

During the three months ended March 31, 2021 and 2020, the Company reissued 0.3 million and 0.5 million, respectively, treasury shares for restricted stock award grants, performance share units and issuance of shares vested under advisor deferred compensation plans.