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Shares and Stockholders' Equity | 6 Months Ended
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Jun. 30, 2021
Shares and Stockholders' Equity [Abstract] |
Shares and Stockholders' Equity | 12. Shares and Stockholders’ Equity Common Shares The changes in our common stock (number of shares) were as follows:
| For the Three |  | For the Six |
| Months Ended |  | Months Ended |
| June 30, |  | June 30, |
| 2021 |  | 2020 |  | 2021 |  | 2020 |
Common Stock |  |  |  |  |  |  |  |
Balance as of beginning-of-period | 191,149,192 |  | 193,208,244 |  | 192,329,691 |  | 196,668,532 |
Stock compensation/issued for benefit plans | 171,688 |  | 38,859 |  | 882,826 |  | 388,495 |
Retirement/cancellation of shares | (2,230,932 | ) | - |  | (4,122,569 | ) | (3,809,924 | )
Balance as of end-of-period | 189,089,948 |  | 193,247,103 |  | 189,089,948 |  | 193,247,103 |
Common Stock as of End-of-Period |  |  |  |  |  |  |  |
Basic basis | 189,089,948 |  | 193,247,103 |  | 189,089,948 |  | 193,247,103 |
Diluted basis | 191,389,750 |  | 193,962,833 |  | 191,389,750 |  | 193,962,833 |
Our common stock is without par value. Average Shares A reconciliation of the denominator (number of shares) in the calculations of basic and diluted earnings (loss) per common share was as follows:
| For the Three |  | For the Six |
| Months Ended |  | Months Ended |
| June 30, |  | June 30, |
| 2021 |  | 2020 |  | 2021 |  | 2020 |
Weighted-average shares, as used in basic calculation | 189,987,670 |  | 193,228,547 |  | 190,878,951 |  | 194,152,672 |
Shares to cover non-vested stock | 1,278,175 |  | 448,982 |  | 1,133,618 |  | 651,289 |
Average stock options outstanding during the period | 1,902,854 |  | 572,544 |  | 1,483,184 |  | 784,396 |
Assumed acquisition of shares with assumed |  |  |  |  |  |  |  |
proceeds and benefits from exercising stock |  |  |  |  |  |  |  |
options (at average market price for the period) | (1,462,891 | ) | (469,928 | ) | (1,114,026 | ) | (586,764 | )
Shares repurchasable from measured but |  |  |  |  |  |  |  |
unrecognized stock option expense | (38,204 | ) | (3,693 | ) | (19,715 | ) | (1,846 | )
Average deferred compensation shares | 534,794 |  | - |  | - |  | 1,236,744 |
Weighted-average shares, as used in diluted calculation (1) | 192,202,398 |  | 193,776,452 |  | 192,362,012 |  | 196,236,491 |
(1)Due to reporting a net loss for the three and six months ended June 30, 2020, basic shares were used in the diluted earnings per share (“EPS”) calculation for these periods, as the use of diluted shares would have resulted in a lower loss per share. In the event the average market price of LNC common stock exceeds the issue price of stock options and the options have a dilutive effect to our EPS, such options will be shown in the table above. We have participants in our deferred compensation plans who selected LNC stock as the measure for the investment return attributable to all or a portion of their deferral amounts. This obligation is settled in either cash or LNC stock pursuant to the applicable plan document. For the three months ended June 30, 2021, and the six months ended June 30, 2020, the effect of settling obligations in LNC stock (“equity classification”) was more dilutive than the scenario of settling in cash (“liability classification”). Therefore, for our EPS calculation for these periods, we added these shares to the denominator and adjusted the numerator to present net income as if the shares had been accounted for under equity classification by removing the mark-to-market adjustment included in net income attributable to these deferred units of LNC stock. The amount of this adjustment was less than $1 million for the three months ended June 30, 2021, and $10 million for the six months ended June 30, 2020. AOCI The following summarizes the components and changes in AOCI (in millions):
| For the Six |
| Months Ended |
| June 30, |
| 2021 |  | 2020 |
Unrealized Gain (Loss) on Fixed Maturity AFS Securities |  |  |  |  |  |
Balance as of beginning-of-year | $ | 9,611 |  | $ | 5,983 |
Cumulative effect from adoption of new accounting standard |  | - |  |  | 45 |
Unrealized holding gains (losses) arising during the period |  | (3,329 | ) |  | 3,775 |
Change in foreign currency exchange rate adjustment |  | (39 | ) |  | (93 | )
Change in DAC, VOBA, DSI, future contract benefits and other contract holder funds |  | 1,345 |  |  | (1,351 | )
Income tax benefit (expense) |  | 429 |  |  | (495 | )
Less: |  |  |  |  |  |
Reclassification adjustment for gains (losses) included in net income (loss) |  | (2 | ) |  | (44 | )
Associated amortization of DAC, VOBA, DSI and DFEL |  | (9 | ) |  | 62 |
Income tax benefit (expense) |  | 2 |  |  | (4 | )
Balance as of end-of-period | $ | 8,026 |  | $ | 7,850 |
Unrealized Other-Than-Temporary-Impairment on Fixed Maturity AFS Securities |  |  |  |  |  |
Balance as of beginning-of-year | $ | - |  | $ | 45 |
Cumulative effect from adoption of new accounting standard |  | - |  |  | (45 | )
Balance as of end-of-period | $ | - |  | $ | - |
Unrealized Gain (Loss) on Derivative Instruments |  |  |  |  |  |
Balance as of beginning-of-year | $ | (402 | ) | $ | (11 | )
Unrealized holding gains (losses) arising during the period |  | 140 |  |  | (192 | )
Change in foreign currency exchange rate adjustment |  | 45 |  |  | 97 |
Change in DAC, VOBA, DSI and DFEL |  | (11 | ) |  | (116 | )
Income tax benefit (expense) |  | (36 | ) |  | 43 |
Less: |  |  |  |  |  |
Reclassification adjustment for gains (losses) included in net income (loss) |  | 8 |  |  | 23 |
Associated amortization of DAC, VOBA, DSI and DFEL |  | (1 | ) |  | (19 | )
Income tax benefit (expense) |  | (1 | ) |  | (1 | )
Balance as of end-of-period | $ | (270 | ) | $ | (182 | )
Foreign Currency Translation Adjustment |  |  |  |  |  |
Balance as of beginning-of-year | $ | (12 | ) | $ | (17 | )
Foreign currency translation adjustment arising during the period |  | 2 |  |  | (11 | )
Balance as of end-of-period | $ | (10 | ) | $ | (28 | )
Funded Status of Employee Benefit Plans |  |  |  |  |  |
Balance as of beginning-of-year | $ | (266 | ) | $ | (327 | )
Adjustment arising during the period |  | (1 | ) |  | 10 |
Balance as of end-of-period | $ | (267 | ) | $ | (317 | )
The following summarizes the reclassifications out of AOCI (in millions) and the associated line item in the Consolidated Statements of Comprehensive Income (Loss):
| For the Six |  |
| Months Ended |  |
| June 30, |  |
| 2021 |  |  | 2020 |  |
Unrealized Gain (Loss) on Fixed Maturity AFS Securities |  |  |  |  |  |  |  |
Gross reclassification | $ | (2 | ) |  | $ | (44 | ) | Realized gain (loss)
Associated amortization of DAC, |  |  |  |  |  |  |  |
VOBA, DSI and DFEL |  | (9 | ) |  |  | 62 |  | Realized gain (loss)
Reclassification before income |  |  |  |  |  |  |  |
tax benefit (expense) |  | (11 | ) |  |  | 18 |  | Income (loss) before taxes
Income tax benefit (expense) |  | 2 |  |  |  | (4 | ) | Federal income tax expense (benefit)
Reclassification, net of income tax | $ | (9 | ) |  | $ | 14 |  | Net income (loss)
Unrealized Gain (Loss) on Derivative Instruments |  |  |  |  |  |  |  |
Gross reclassifications: |  |  |  |  |  |  |  |
Interest rate contracts | $ | 1 |  |  | $ | 1 |  | Net investment income
Interest rate contracts |  | (12 | ) |  |  | (8 | ) | Interest and debt expense
Foreign currency contracts |  | 21 |  |  |  | 22 |  | Net investment income
Foreign currency contracts |  | (2 | ) |  |  | 8 |  | Realized gain (loss)
Total gross reclassifications |  | 8 |  |  |  | 23 |  |
Associated amortization of DAC, |  |  |  |  |  |  |  |
VOBA, DSI and DFEL |  | (1 | ) |  |  | (19 | ) | Commissions and other expenses
Reclassifications before income |  |  |  |  |  |  |  |
tax benefit (expense) |  | 7 |  |  |  | 4 |  | Income (loss) before taxes
Income tax benefit (expense) |  | (1 | ) |  |  | (1 | ) | Federal income tax expense (benefit)
Reclassifications, net of income tax | $ | 6 |  |  | $ | 3 |  | Net income (loss)

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- Definition This element is used to capture the complete disclosure pertaining to an entity's stock. Disclosure of the methodology and assumptions used in the reconciliation of earnings per share, which may include the individual income and share amount effects of all securities that affect EPS, the effect that has been given to preferred dividends in arriving at income available to common stockholders in computing basic EPS, securities that could dilute basic EPS in the future that would have been antidilutive. + References No definition available. + Details
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