Shares and Stockholder's Equity

6 Months Ended

Jun. 30, 2022

Shares and Stockholder's Equity [Abstract]

Shares and Stockholder's Equity

10. Shares and Stockholder’s Equity

All authorized and issued shares of LNL are owned by LNC.

AOCI

The following summarizes the components and changes in AOCI (in millions):

	For the Six
	Months Ended
	June 30,
	2022			2021
Unrealized Gain (Loss) on Fixed Maturity AFS Securities and Certain Other
Investments
Balance as of beginning-of-year	$	6,315		$	8,993
Unrealized holding gains (losses) arising during the period		(19,013	)		(3,175	)
Change in foreign currency exchange rate adjustment		(371	)		(37	)
Change in DAC, VOBA, DSI, future contract benefits and other contract holder funds		6,039			1,362
Income tax benefit (expense)		2,850			395
Less:
Reclassification adjustment for gains (losses) included in net income (loss)		(4	)		(3	)
Associated amortization of DAC, VOBA, DSI and DFEL		3			9
Income tax benefit (expense)		-			(1	)
Balance as of end-of-period	$	(4,179	)	$	7,533
Unrealized Gain (Loss) on Derivative Instruments
Balance as of beginning-of-year	$	240		$	42
Unrealized holding gains (losses) arising during the period		(288	)		(14	)
Change in foreign currency exchange rate adjustment		373			45
Change in DAC, VOBA, DSI and DFEL		4			(29	)
Income tax benefit (expense)		(18	)		(1	)
Less:
Reclassification adjustment for gains (losses) included in net income (loss)		35			20
Associated amortization of DAC, VOBA, DSI and DFEL		(10	)		(19	)
Income tax benefit (expense)		(5	)		-
Balance as of end-of-period	$	291		$	42
Funded Status of Employee Benefit Plans
Balance as of beginning-of-year	$	(11	)	$	(14	)
Adjustment arising during the period		-			-
Balance as of end-of-period	$	(11	)	$	(14	)

‎

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,
	2022			2021
Unrealized Gain (Loss) on Fixed Maturity AFS
Securities and Certain Other Investments
Gross reclassification	$	(4	)	$	(3	)	Realized gain (loss)
Associated amortization of DAC,
VOBA, DSI and DFEL		3			9		Realized gain (loss)
Reclassification before income
tax benefit (expense)		(1	)		6		Income (loss) before taxes
Income tax benefit (expense)		-			(1	)	Federal income tax expense (benefit)
Reclassification, net of income tax	$	(1	)	$	5		Net income (loss)
Unrealized Gain (Loss) on Derivative Instruments
Gross reclassifications:
Interest rate contracts	$	1		$	1		Net investment income
Foreign currency contracts		30			21		Net investment income
Foreign currency contracts		4			(2	)	Realized gain (loss)
Total gross reclassifications		35			20
Associated amortization of DAC,
VOBA, DSI and DFEL		(10	)		(19	)	Commissions and other expenses
Reclassifications before income
tax benefit (expense)		25			1		Income (loss) before taxes
Income tax benefit (expense)		(5	)		-		Federal income tax expense (benefit)
Reclassifications, net of income tax	$	20		$	1		Net income (loss)