Equity

6 Months Ended

Jun. 30, 2020

8. Equity

Preferred Stock

Preferred stock authorized, issued and outstanding were as follows at:


	June 30, 2020					December 31, 2019
	Shares Authorized	Shares Issued	Shares Outstanding	Shares Authorized	Shares Issued	Shares Outstanding
6.600% Non-Cumulative Preferred Stock, Series A	17,000	17,000	17,000	17,000	17,000	17,000
6.750% Non-Cumulative Preferred Stock, Series B	16,100	16,100	16,100	—	—	—
Not designated	99,966,900	—	—	99,983,000	—	—
Total	100,000,000	33,100	33,100	100,000,000	17,000	17,000

In May 2020, BHF issued depositary shares (the “Series B Depositary Shares”), each representing a 1/1,000th ownership interest in a share of its perpetual 6.750% non-cumulative preferred stock, Series B (the “Series B Preferred Stock”) and in the aggregate representing 16,100 shares of Series B Preferred Stock, with a stated amount of $25,000 per share, for aggregate net cash proceeds of $390 million. Dividends, if declared, will accrue and be payable quarterly, in arrears, at an annual rate of 6.750% on the stated amount per share. In connection with the issuance of the Series B Depositary Shares and the underlying Series B Preferred Stock, BHF incurred $13 million of issuance costs, which have been recorded as a reduction of additional paid-in capital.

The declaration, record and payment dates, as well as per share and aggregate dividend amounts for BHF’s perpetual 6.600% non-cumulative preferred stock, Series A for the six months ended June 30, 2020 and 2019 were as follows:


Declaration Date	Record Date	Payment Date	Per Share		Aggregate
					(In millions)
May 15, 2020	June 10, 2020	June 25, 2020	$	412.50	$	7
February 14, 2020	March 10, 2020	March 25, 2020	412.50		7
			$	825.00	$	14

May 15, 2019	June 10, 2019	June 25, 2019	$	412.50	$	7
			$	412.50	$	7

Common Stock Repurchase Program

On February 6, 2020, BHF authorized the repurchase of up to an additional $500 million of its common stock. Repurchases under this authorization may be made through open market purchases, including pursuant to 10b5-1 plans or pursuant to accelerated stock repurchase plans, or through privately negotiated transactions, from time to time at management’s discretion in accordance with applicable legal requirements. On May 11, 2020, the Company announced that it had temporarily suspended repurchases of its common stock. The temporary suspension remains in effect while the Company continues to assess market conditions and other factors.

During the six months ended June 30, 2020 and 2019, BHF repurchased 13,250,927 and 4,993,424 shares, respectively, of its common stock through open market purchases pursuant to 10b5-1 plans for $322 million and $188 million, respectively. At June 30, 2020, BHF had $231 million remaining under its common stock repurchase program.

Accumulated Other Comprehensive Income (Loss)

Information regarding changes in the balances of each component of AOCI was as follows:


	Three Months Ended June 30, 2020
	Unrealized Investment Gains (Losses), Net of Related Offsets (1)		Unrealized Gains (Losses) on Derivatives		Foreign Currency Translation Adjustments		Defined Benefit Plans Adjustment		Total
	(In millions)
Balance at March 31, 2020	$	2,083	$	612	$	(19)	$	(29)	$	2,647
OCI before reclassifications	3,059		(140)		5		1		2,925
Deferred income tax benefit (expense)	(643)		30		(10)		—		(623)
AOCI before reclassifications, net of income tax	4,499		502		(24)		(28)		4,949
Amounts reclassified from AOCI	23		(3)		—		—		20
Deferred income tax benefit (expense)	(5)		1		—		—		(4)
Amounts reclassified from AOCI, net of income tax	18		(2)		—		—		16



Balance at June 30, 2020	$	4,517	$	500	$	(24)	$	(28)	$	4,965


	Three Months Ended June 30, 2019
	Unrealized Investment Gains (Losses), Net of Related Offsets (1)		Unrealized Gains (Losses) on Derivatives		Foreign Currency Translation Adjustments		Defined Benefit Plans Adjustment		Total
	(In millions)
Balance at March 31, 2019	$	1,580	$	140	$	(27)	$	(23)	$	1,670
OCI before reclassifications	1,293		75		7		—		1,375
Deferred income tax benefit (expense)	(271)		(16)		—		—		(287)
AOCI before reclassifications, net of income tax	2,602		199		(20)		(23)		2,758
Amounts reclassified from AOCI	(48)		(22)		—		—		(70)
Deferred income tax benefit (expense)	10		4		—		—		14
Amounts reclassified from AOCI, net of income tax	(38)		(18)		—		—		(56)



Balance at June 30, 2019	$	2,564	$	181	$	(20)	$	(23)	$	2,702


	Six Months Ended June 30, 2020
	Unrealized Investment Gains (Losses), Net of Related Offsets (1)		Unrealized Gains (Losses) on Derivatives		Foreign Currency Translation Adjustments		Defined Benefit Plans Adjustment		Total
	(In millions)
Balance at December 31, 2019	$	3,111	$	172	$	(15)	$	(28)	$	3,240
OCI before reclassifications (2)	1,768		420		—		—		2,188
Deferred income tax benefit (expense)	(371)		(88)		(9)		—		(468)
AOCI before reclassifications, net of income tax	4,508		504		(24)		(28)		4,960
Amounts reclassified from AOCI	12		(5)		—		—		7
Deferred income tax benefit (expense)	(3)		1		—		—		(2)
Amounts reclassified from AOCI, net of income tax	9		(4)		—		—		5



Balance at June 30, 2020	$	4,517	$	500	$	(24)	$	(28)	$	4,965


	Six Months Ended June 30, 2019
	Unrealized Investment Gains (Losses), Net of Related Offsets (1)		Unrealized Gains (Losses) on Derivatives		Foreign Currency Translation Adjustments		Defined Benefit Plans Adjustment		Total
	(In millions)
Balance at December 31, 2018	$	576	$	187	$	(27)	$	(20)	$	716
OCI before reclassifications	2,545		41		7		(3)		2,590
Deferred income tax benefit (expense)	(534)		(9)		—		—		(543)
AOCI before reclassifications, net of income tax	2,587		219		(20)		(23)		2,763
Amounts reclassified from AOCI	(29)		(48)		—		—		(77)
Deferred income tax benefit (expense)	6		10		—		—		16
Amounts reclassified from AOCI, net of income tax	(23)		(38)		—		—		(61)



Balance at June 30, 2019	$	2,564	$	181	$	(20)	$	(23)	$	2,702

__________________

(1)See Note 4 for information on offsets to investments related to future policy benefits, DAC, VOBA and DSI.

(2)Includes $3 million related to the adoption of ASU 2016-13, see Note 1.

Information regarding amounts reclassified out of each component of AOCI was as follows:


AOCI Components	Amounts Reclassified from AOCI									Consolidated Statements of Operations and Comprehensive Income (Loss) Locations
	Three Months Ended June 30,						Six Months Ended June 30,
	2020		2019		2020		2019
	(In millions)
Net unrealized investment gains (losses):
Net unrealized investment gains (losses)	$	(20)	$	70	$	(7)	$	55	Net investment gains (losses)

Net unrealized investment gains (losses)	(3)		(22)		(5)		(26)		Net derivative gains (losses)
Net unrealized investment gains (losses), before income tax	(23)		48		(12)		29
Income tax (expense) benefit	5		(10)		3		(6)
Net unrealized investment gains (losses), net of income tax	(18)		38		(9)		23
Unrealized gains (losses) on derivatives - cash flow hedges:
Interest rate swaps	—		6		1		28		Net derivative gains (losses)
Interest rate swaps	—		—		1		1		Net investment income


Foreign currency swaps	3		16		3		19		Net derivative gains (losses)
Gains (losses) on cash flow hedges, before income tax	3		22		5		48
Income tax (expense) benefit	(1)		(4)		(1)		(10)
Gains (losses) on cash flow hedges, net of income tax	2		18		4		38






Total reclassifications, net of income tax	$	(16)	$	56	$	(5)	$	61