Shares and Stockholder's Equity

9 Months Ended

Sep. 30, 2022

Shares and Stockholder's Equity [Abstract]

Shares and Stockholder's Equity

11. 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 Nine
	Months Ended
	September 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		(25,927	)		(4,049	)
Change in foreign currency exchange rate adjustment		(621	)		(123	)
Change in DAC, VOBA, DSI, future contract benefits and other contract holder funds		7,632			1,360
Income tax benefit (expense)		4,040			599
Less:
Reclassification adjustment for gains (losses) included in net income (loss)		(9	)		(5	)
Associated amortization of DAC, VOBA, DSI and DFEL		(3	)		(18	)
Income tax benefit (expense)		3			5
Balance as of end-of-period	$	(8,552	)	$	6,798
Unrealized Gain (Loss) on Derivative Instruments
Balance as of beginning-of-year	$	240		$	42
Unrealized holding gains (losses) arising during the period		(214	)		55
Change in foreign currency exchange rate adjustment		623			129
Change in DAC, VOBA, DSI and DFEL		28			-
Income tax benefit (expense)		(92	)		(40	)
Less:
Reclassification adjustment for gains (losses) included in net income (loss)		78			34
Associated amortization of DAC, VOBA, DSI and DFEL		(9	)		(1	)
Income tax benefit (expense)		(14	)		(7	)
Balance as of end-of-period	$	530		$	160
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 Nine
	Months Ended
	September 30,
	2022			2021
Unrealized Gain (Loss) on Fixed Maturity AFS
Securities and Certain Other Investments
Gross reclassification	$	(9	)	$	(5	)	Realized gain (loss)
Associated amortization of DAC,
VOBA, DSI and DFEL		(3	)		(18	)	Realized gain (loss)
Reclassification before income
tax benefit (expense)		(12	)		(23	)	Income (loss) before taxes
Income tax benefit (expense)		3			5		Federal income tax expense (benefit)
Reclassification, net of income tax	$	(9	)	$	(18	)	Net income (loss)
Unrealized Gain (Loss) on Derivative Instruments
Gross reclassifications:
Interest rate contracts	$	1		$	2		Net investment income
Foreign currency contracts		48			34		Net investment income
Foreign currency contracts		29			(2	)	Realized gain (loss)
Total gross reclassifications		78			34
Associated amortization of DAC,
VOBA, DSI and DFEL		(9	)		(1	)	Commissions and other expenses
Reclassifications before income
tax benefit (expense)		69			33		Income (loss) before taxes
Income tax benefit (expense)		(14	)		(7	)	Federal income tax expense (benefit)
Reclassifications, net of income tax	$	55		$	26		Net income (loss)