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Acquisition | 12 Months Ended
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Dec. 31, 2019
Acquisition [Abstract] |
Acquisition | 3. Acquisition On May 1, 2018, we completed the acquisition from Liberty Mutual Insurance Company of 100% of the capital stock of Liberty Life, an operator of a group benefits business (the “Liberty Group Business”) and an individual life and individual and group annuity business (the “Liberty Life Business”). The acquisition expanded the scale and capabilities of the Group Protection business while further diversifying the Company’s sources of earnings. In connection with the acquisition and pursuant to the Master Transaction Agreement (“MTA”), dated January 18, 2018, which is filed as Exhibit 2.1 to this Form 10-K, Liberty Life sold the Liberty Life Business on May 1, 2018, by entering into reinsurance agreements and related ancillary documents (including administrative services agreements and transition services agreements) with Protective Life Insurance Company and its wholly-owned subsidiary, Protective Life and Annuity Insurance Company (together with Protective Life Insurance Company, “Protective”), providing for the reinsurance and administration of the Liberty Life Business. We recognized $85 million of acquisition-related costs, pre-tax, for the year ended December 31, 2018. These costs were included in commissions and other expenses on our Consolidated Statements of Comprehensive Income (Loss). In the year following the May 1, 2018 acquisition date, we adjusted assets acquired by $(5) million and liabilities acquired by $23 million for an increase in goodwill of $28 million. Under the terms of the MTA, a final balance sheet will be agreed upon at a later date. The following table presents the adjusted fair values (in millions) of the net assets acquired related to the Liberty Group Business:
| Adjusted |
| Fair Value |
Assets |  |  |
Investments | $ | 2,493 |
Mortgage loans on real estate |  | 658 |
Cash and invested cash |  | 107 |
Reinsurance recoverables |  | 76 |
Premiums and fees receivable |  | 83 |
Accrued investment income |  | 24 |
Other intangible assets acquired |  | 640 |
Other assets acquired |  | 142 |
Separate account assets |  | 99 |
Total assets acquired | $ | 4,322 |
Liabilities |  |  |
Future contract benefits | $ | 2,930 |
Other contract holder funds |  | 46 |
Other liabilities acquired |  | 140 |
Separate account liabilities |  | 99 |
Total liabilities assumed | $ | 3,215 |
Net identifiable assets acquired | $ | 1,107 |
Goodwill |  | 410 |
Net assets acquired | $ | 1,517 |
Financial Information Since the acquisition date of May 1, 2018, the revenues and net income of the business acquired have been included in our Consolidated Statements of Comprehensive Income (Loss) in the Group Protection segment and were $1.5 billion and $36 million, respectively, for the period ended December 31, 2018. The following unaudited pro forma condensed consolidated results of operations of the Company assume that the acquisition of Liberty Life was completed on January 1, 2017 (in millions):
|  | For the Years Ended |
|  | December 31, |
|  | 2018 |  | 2017 |
Revenue |  | $ | 17,163 |  | $ | 16,189 |
Net income |  |  | 1,707 |  |  | 2,066 |
Pro forma adjustments include the revenue and net income of the acquired business for each period as well as amortization of identifiable intangible assets acquired and the fair value adjustment to acquired insurance reserves and investments. Other pro forma adjustments include the incremental increase to interest expense attributable to financing the acquisition, and the impact of reflecting acquisition and integration costs and investment expenses directly attributable to the business combination in 2017 instead of in 2018. Pro forma adjustments do not include retrospective adjustments to defer and amortize acquisition costs as would be recorded under our accounting policy.

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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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