Share-based compensation arrangement by share-based payment award, maximum number of shares issuable other than options and stock appreciation rights

  


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| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions) | Six Months EndedJune 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 |  | $ | 192  |  |  | Net investment gains (losses) |
|  |  | (40) |  |  | Tax (expense) or benefit(1) |
|  |  | $ | 152  |  |  | 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) |  | $ | (11) |  |  | Acquisition and operating expenses(2) |
| Prior service (cost) credit |  | 0  |  |  | Acquisition and operating expenses(2) |
|  |  | 2  |  |  | Tax (expense) or benefit(1) |
|  |  | $ | (9) |  |  | Net of tax |
| Total reclassifications for the period |  | $ | 142  |  |  | Net of tax |

(1) Based on 21% tax rate(2) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 11 for additional details).  


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|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions) | Six Months EndedJune 30, 2021 |  |
| 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 |  | $ | (15) |  |  | Net investment gains (losses) |
|  |  | 3  |  |  | Tax (expense) or benefit(1) |
|  |  | $ | (12) |  |  | Net of tax |
| Unrealized gains (losses) on derivatives |  | $ | (2) |  |  | Net investment gains (losses) |
|  |  | 0  |  |  | Tax (expense) or benefit(1) |
|  |  | $ | (2) |  |  | Net of tax |
| Amortization of defined benefit pension items: |  |  |  |  |
|        Actuarial gains (losses) |  | $ | (19) |  |  | Acquisition and operating expenses(2) |
| Prior service (cost) credit |  | 0  |  |  | Acquisition and operating expenses(2) |
|  |  | 4  |  |  | Tax (expense) or benefit(1) |
|  |  | $ | (15) |  |  | Net of tax |
| Total reclassifications for the period |  | $ | (29) |  |  | Net of tax |

(1) Based on 21% tax rate(2) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 11 for additional details).  
10.    SHARE-BASED COMPENSATION  
As of June 30, 2022, the Company has outstanding share-based awards under the Aflac Incorporated Long-Term Incentive Plan (the Plan). Share-based awards are designed to reward employees for their long-term contributions to the Company and provide incentives for them to remain with the Company. The number and frequency of share-based awards are based on competitive practices, operating results of the Company, government regulations, and other factors.  
The Plan, as amended on February 14, 2017, allows for a maximum number of shares issuable over its term of 75 million shares including 38 million shares that may be awarded in respect of awards other than options or stock appreciation 64
