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Acquisitions | 9 Months Ended
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Sep. 30, 2021
Business Combination and Asset Acquisition [Abstract] |
Acquisitions | Acquisitions F&G On June 1, 2020, we acquired 100% of the outstanding equity of F&G for approximately $2.7 billion. The purchase price is as follows (in millions):
Cash paid for outstanding F&G shares | $ | 1,903 |
Less: Cash Acquired | 827 |
Net cash paid for F&G | 1,076 |
Value of FNF share consideration | 806 |
Value of outstanding converted equity awards attributed to services already rendered | 28 |
Total net consideration paid | $ | 1,910 |
The acquisition was accounted for as a business combination under FASB Accounting Standards Codification Topic 805, Business Combinations ("Topic 805").The purchase price has been allocated to F&G's assets acquired and liabilities assumed based on our estimates of their fair values as of June 1, 2020. Goodwill has been recorded based on the amount that the purchase price exceeds the fair value of the net assets acquired. Goodwill consists primarily of intangible assets that do not qualify for separate recognition. The goodwill recorded is not expected to be deductible for tax purposes, except for $16 million related to a prior F&G transaction. The final purchase price allocation is as follows (dollars in millions):
| Fair Value
Fixed maturity securities | $ | 22,389 |
Preferred securities | 876 |
Equity securities | 52 |
Derivative instruments | 313 |
Mortgage loans | 1,755 |
Investments in unconsolidated affiliates | 1,049 |
Other long-term investments | 430 |
Short-term investments | 37 |
Trade and notes receivable | 1 |
Reinsurance recoverable | 2,998 |
Goodwill | 1,756 |
Prepaid expenses and other assets | 379 |
Lease assets | 8 |
Other intangible assets | 2,107 |
Deferred tax asset | 269 |
Assets of discontinued operations | 2,392 |
Total assets acquired | 36,811 |
Contractholder funds | 26,451 |
Future policy benefits | 3,871 |
Accounts payable and accrued liabilities | 897 |
Notes payable | 589 |
Funds withheld for reinsurance liabilities | 816 |
Lease liabilities | 9 |
Liabilities of discontinued operations | 2,268 |
Total liabilities assumed | 34,901 |
Net assets acquired | $ | 1,910 |
The gross carrying value and weighted average estimated useful lives of Other intangible assets acquired in the F&G acquisition consist of the following (dollars in millions):
| Gross Carrying Value |  | Weighted Average Estimated Useful Life (in years)
Other intangible assets: |  |  |
Value of business acquired | $ | 1,908 |  |  | Various
Value of distribution network acquired | 140 |  |  | 15
Trademarks and licenses | 38 |  |  | 10
Software | 21 |  |  | 2
Total Other intangible assets | 2,107 |  |  |
During the nine months ended September 30, 2021, we adjusted the provisional amounts as of June 1, 2020 that were recognized at the acquisition date to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of the acquisition date. Such adjustments resulted in an increase in Other intangible assets of approximately $61 million, a decrease in Reinsurance recoverable of approximately $289 million, a decrease in Future policy benefits of $227 million, an increase in Goodwill of $5 million, and various other, individually immaterial items. There was no material impact on earnings as a result of the measurement period adjustments recorded.

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- References No definition available. + Details
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- Definition The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -URI http://asc.fasb.org/topic&trid=2303972 + Details
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