XML 33 R21.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Segment Information | 9 Months Ended
--- | ---
Sep. 30, 2018
Segment Information [Abstract] |
Segment Information | 15. Segment Information ﻿ We provide products and services and report results through our Annuities, Retirement Plan Services, Life Insurance and Group Protection segments. As discussed in Note 3, we completed the acquisition of Liberty Life during the second quarter of 2018. Related results are included within the Group Protection segment. We also have Other Operations, which includes the financial data for operations that are not directly related to the business segments. Our reporting segments reflect the manner by which our chief operating decision makers view and manage the business. See Note 21 of our 2017 Form 10-K for a brief description of these segments and Other Operations. ﻿ Segment operating revenues and income (loss) from operations are internal measures used by our management and Board of Directors to evaluate and assess the results of our segments. Income (loss) from operations is GAAP net income excluding the after-tax effects of the following items, as applicable: ﻿
| · |  | Realized gains and losses associated with the following (“excluded realized gain (loss)”):
| § |  | Sales or disposals and impairments of securities;
| § |  | Changes in the fair value of derivatives, embedded derivatives within certain reinsurance arrangements and trading securities;
| § |  | Changes in the fair value of the derivatives we own to hedge our GDB riders within our variable annuities;
| § |  | Changes in the fair value of the embedded derivatives of our GLB riders reflected within variable annuity net derivative results accounted for at fair value;
| § |  | Changes in the fair value of the derivatives we own to hedge our GLB riders reflected within variable annuity net derivative results;
| § |  | Changes in the fair value of the embedded derivative liabilities related to index call options we may purchase in the future to hedge contract holder index allocations applicable to future reset periods for our indexed annuity products accounted for at fair value; and
| § |  | Changes in the fair value of equity securities;
| · |  | Changes in reserves resulting from benefit ratio unlocking on our GDB and GLB riders;
| · |  | Income (loss) from reserve changes, net of related amortization, on business sold through reinsurance;
| · |  | Gains (losses) on early extinguishment of debt;
| · |  | Losses from the impairment of intangible assets;
| · |  | Income (loss) from discontinued operations;
| · |  | Acquisition and integration costs related to mergers and acquisitions; and
| · |  | Income (loss) from the initial adoption of new accounting standards, regulations, and policy changes including the net impact from the Tax Cuts and Jobs Act.
﻿ Operating revenues represent GAAP revenues excluding the pre-tax effects of the following items, as applicable: ﻿
| · |  | Excluded realized gain (loss);
| · |  | Revenue adjustments from the initial adoption of new accounting standards;
| · |  | Amortization of DFEL arising from changes in GDB and GLB benefit ratio unlocking; and
| · |  | Amortization of deferred gains arising from reserve changes on business sold through reinsurance.
﻿ We use our prevailing corporate federal income tax rates of 21% and 35%, where applicable, while taking into account any permanent differences for events recognized differently in our financial statements and federal income tax returns when reconciling our non-GAAP measures to the most comparable GAAP measure. Operating revenues and income (loss) from operations do not replace revenues and net income as the GAAP measures of our consolidated results of operations. ﻿ Segment information (in millions) was as follows: ﻿ ﻿
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |
﻿ | For the Three |  |  | For the Nine |
﻿ | Months Ended |  |  | Months Ended |
﻿ | September 30, |  |  | September 30, |
﻿ | 2018 |  | 2017 |  |  | 2018 |  | 2017 |
﻿Revenues |  |  |  |  |  |  |  |  |  |  |  |  |
﻿Operating revenues: |  |  |  |  |  |  |  |  |  |  |  |  |
﻿Annuities | $ | 1,118 |  | $ | 1,073 |  |  | $ | 3,297 |  | $ | 3,211 |
﻿Retirement Plan Services |  | 294 |  |  | 291 |  |  |  | 878 |  |  | 863 |
﻿Life Insurance |  | 1,766 |  |  | 1,614 |  |  |  | 5,106 |  |  | 4,874 |
﻿Group Protection |  | 1,128 |  |  | 564 |  |  |  | 2,618 |  |  | 1,646 |
﻿Other Operations |  | 56 |  |  | 65 |  |  |  | 182 |  |  | 220 |
﻿Excluded realized gain (loss), pre-tax |  | (98 | ) |  | (97 | ) |  |  | (188 | ) |  | (229 | )
﻿Amortization of deferred gain arising from reserve changes |  |  |  |  |  |  |  |  |  |  |  |  |
﻿on business sold through reinsurance, pre-tax |  | - |  |  | - |  |  |  | - |  |  | 1 |
﻿Amortization of DFEL associated with benefit ratio unlocking, pre-tax |  | - |  |  | 1 |  |  |  | - |  |  | 2 |
﻿Total revenues | $ | 4,264 |  | $ | 3,511 |  |  | $ | 11,893 |  | $ | 10,588 |
﻿ ﻿ ﻿
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |
﻿ | For the Three |  |  | For the Nine |
﻿ | Months Ended |  |  | Months Ended |
﻿ | September 30, |  |  | September 30, |
﻿ | 2018 |  | 2017 |  |  | 2018 |  | 2017 |
﻿Net Income (Loss) |  |  |  |  |  |  |  |  |  |  |  |  |
﻿Income (loss) from operations: |  |  |  |  |  |  |  |  |  |  |  |  |
﻿Annuities | $ | 302 |  | $ | 277 |  |  | $ | 844 |  | $ | 809 |
﻿Retirement Plan Services |  | 40 |  |  | 35 |  |  |  | 125 |  |  | 109 |
﻿Life Insurance |  | 176 |  |  | 121 |  |  |  | 470 |  |  | 384 |
﻿Group Protection |  | 63 |  |  | 41 |  |  |  | 137 |  |  | 83 |
﻿Other Operations |  | (71 | ) |  | (20 | ) |  |  | (171 | ) |  | (71 | )
﻿Excluded realized gain (loss), after-tax |  | (77 | ) |  | (63 | ) |  |  | (149 | ) |  | (149 | )
﻿Gain (loss) on early extinguishment of debt, after-tax |  | - |  |  | (3 | ) |  |  | (18 | ) |  | (3 | )
﻿Income (loss) from reserve changes (net of related amortization) |  |  |  |  |  |  |  |  |  |  |  |  |
﻿on business sold through reinsurance, after-tax |  | - |  |  | - |  |  |  | - |  |  | 1 |
﻿Benefit ratio unlocking, after-tax |  | 33 |  |  | 30 |  |  |  | 32 |  |  | 101 |
﻿Net impact from the Tax Cuts and Jobs Act |  | 32 |  |  | - |  |  |  | 19 |  |  | - |
﻿Acquisition and integration costs related to mergers |  |  |  |  |  |  |  |  |  |  |  |  |
﻿and acquisitions, after-tax |  | (8 | ) |  | - |  |  |  | (47 | ) |  | - |
﻿Net income (loss) | $ | 490 |  | $ | 418 |  |  | $ | 1,242 |  | $ | 1,264 |
﻿ Revenue from Contracts with Customers ﻿ As discussed in Note 2, we adopted ASU 2014-09, Revenue from Contracts with Customers, as of January 1, 2018, that applies primarily to commissions and advisory fees earned by our broker dealer operation. The following table illustrates the revenue recognized from contracts with customers reported within fee income and other revenues on our Consolidated Statements of Comprehensive Income (Loss) and timing of revenue recognition by segment (in millions): ﻿
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿ | For the Three Months Ended September 30, 2018 |
﻿ |  |  |  | Retirement |  |  |  |  |  |  |  |  |  |  |  |  |
﻿ |  |  |  | Plan |  | Life |  | Group |  | Other |  |  |  |
﻿ | Annuities |  | Services |  | Insurance |  | Protection |  | Operations |  | Total |
﻿Revenue from Contracts with Customers |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿Fee income | $ | 137 |  | $ | 42 |  | $ | 6 |  | $ | - |  | $ | - |  | $ | 185 |
﻿Other revenues |  | 120 |  |  | 5 |  |  | 2 |  |  | 41 |  |  | - |  |  | 168 |
﻿Total revenue from contracts |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿with customers | $ | 257 |  | $ | 47 |  | $ | 8 |  | $ | 41 |  | $ | - |  | $ | 353 |
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿Timing of Revenue Recognition |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿Satisfaction of performance obligation: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿Transferred at a point in time | $ | 17 |  | $ | 1 |  | $ | 3 |  | $ | - |  | $ | - |  | $ | 21 |
﻿Transferred over time |  | 240 |  |  | 46 |  |  | 5 |  |  | 41 |  |  | - |  |  | 332 |
﻿Total revenue from contracts |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿with customers | $ | 257 |  | $ | 47 |  | $ | 8 |  | $ | 41 |  | $ | - |  | $ | 353 |
﻿
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿ | For the Nine Months Ended September 30, 2018 |
﻿ |  |  |  | Retirement |  |  |  |  |  |  |  |  |  |  |  |  |
﻿ |  |  |  | Plan |  | Life |  | Group |  | Other |  |  |  |
﻿ | Annuities |  | Services |  | Insurance |  | Protection |  | Operations |  | Total |
﻿Revenue from Contracts with Customers |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿Fee income | $ | 403 |  | $ | 126 |  | $ | 17 |  | $ | - |  | $ | - |  | $ | 546 |
﻿Other revenues |  | 359 |  |  | 14 |  |  | 7 |  |  | 73 |  |  | - |  |  | 453 |
﻿Total revenue from contracts |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿with customers | $ | 762 |  | $ | 140 |  | $ | 24 |  | $ | 73 |  | $ | - |  | $ | 999 |
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿Timing of Revenue Recognition |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿Satisfaction of performance obligation: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿Transferred at a point in time | $ | 53 |  | $ | 3 |  | $ | 6 |  | $ | - |  | $ | - |  | $ | 62 |
﻿Transferred over time |  | 709 |  |  | 137 |  |  | 18 |  |  | 73 |  |  | - |  |  | 937 |
﻿Total revenue from contracts |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿with customers | $ | 762 |  | $ | 140 |  | $ | 24 |  | $ | 73 |  | $ | - |  | $ | 999 |
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenue recognized from contracts with customers included in fee income consists primarily of wholesaling-related 12b-1 fees and net investment advisory fees. The 12b-1 fees are received from separate account fund sponsors as compensation for servicing the underlying mutual funds. The net investment advisory fees are related to asset management of certain separate account funds. Such revenues are recorded based on a contractual percentage of the market value of mutual fund assets over the period shares are owned by customers, and on a contractual percentage of the customer’s managed assets over the period advisory services are provided, respectively. ﻿ Revenue recognized from contracts with customers included in other revenues primarily relates to our retail sales network and consists of commission revenue for the sale of non-affiliated securities recorded on a trade-date basis and advisory fee income. Advisory fee income is asset-based revenues recorded as earned based on a contractual percentage of customer account values.

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration