Intangibles

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

A summary of the changes in the carrying amounts of our VOBA, DAC and DSI intangible assets are as follows (in millions):


	VOBA		DAC		DSI		Total
Balance at January 1, 2021	$	1,466	$	222	$	36	$	1,724

Purchase price allocation adjustments	61		—		—		61
Deferrals	—		585		90		675
Amortization	(436)		(46)		(35)		(517)
Interest	30		13		1		44
Unlocking	13		1		(2)		12
Adjustment for net unrealized investment losses (gains)	51		(14)		(2)		35
Balance at December 31, 2021	$	1,185	$	761	$	88	$	2,034

	VOBA		DAC		DSI		Total
Balance at January 1, 2020	$	—	$	—	$	—	$	—
F&G acquisition	1,847		—		—		1,847
Deferrals	—		251		46		297
Amortization	(120)		(6)		(5)		(131)
Interest	20		2		—		22
Unlocking	2		—		—		2
Adjustment for net unrealized investment gains	(283)		(25)		(5)		(313)
Balance at December 31, 2020	$	1,466	$	222	$	36	$	1,724

Amortization of VOBA, DAC, and DSI is based on the current and future expected gross margins or profits recognized, including investment gains and losses. The interest accrual rate utilized to calculate the accretion of interest on VOBA ranged from 0% to 4.71%. The adjustment for unrealized net investment losses (gains) represents the amount of VOBA, DAC, and DSI that would have been amortized if such unrealized gains and losses had been recognized. This is referred to as the “shadow adjustments” as the additional amortization is reflected in AOCI rather than the Consolidated Statements of Earnings. As of December 31, 2021 and 2020, the VOBA balances included cumulative adjustments for net unrealized investment gains of $232 million and $283 million respectively, the DAC balances included cumulative adjustments for net unrealized investment gains of $39 million and $25 million, respectively, and the DSI balance included net unrealized investment gains of $7 million and $5 million, respectively.

For the in-force liabilities as of December 31, 2021, the estimated amortization expense for VOBA in future fiscal periods is as follows (in millions):


	Estimated Amortization Expense
Fiscal Year
2022	$	2
2023	159
2024	158
2025	152
2026	140
Thereafter	806

Definite and Indefinite Lived Other Intangible Assets

Other intangible assets as of December 31, 2021 consist of the following (in millions):


	Cost		Accumulated amortization		Net carrying amount		Weighted average useful life (years)
Customer relationships and contracts	$	803	$	(651)	$	152	10
Computer software	488		(307)		181		2 to 10
Value of distribution asset (VODA)	140		(25)		115		15
Definite lived trademarks, tradenames, and other	49		(33)		16		10
Indefinite lived tradenames and other	59		N/A		59		Indefinite
Total					$	523

Other intangible assets as of December 31, 2020 consist of the following (in millions):


	Cost		Accumulated amortization		Net carrying amount		Weighted average useful life (years)
Customer relationships and contracts	$	783	$	(596)	$	187	10
Computer software	416		(262)		154		2 to 10
Value of distribution Asset (VODA)	140		(10)		130		15
Definite lived trademarks, tradenames, and other	73		(39)		34		10
Indefinite lived tradenames and other	35		N/A		35		Indefinite
Total					$	540

Amortization expense for amortizable intangible assets, which consist primarily of VODA, customer relationships and computer software, was $135 million, $138 million, and $131 million for the years ended December 31, 2021, 2020 and 2019, respectively. Estimated amortization expense for the next five years for assets owned at December 31, 2021, is $116 million in 2022, $93 million in 2023, $61 million in 2024, $44 million in 2025 and $34 million in 2026.