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Revision of Immaterial Misstatement in Prior Year Financial Statements | 9 Months Ended
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Sep. 30, 2021
Accounting Changes and Error Corrections [Abstract] |
Revision of Immaterial Misstatement in Prior Year Financial Statements | Revision of Immaterial Misstatement in Prior Year Financial Statements Management identified an error in the Company's historical financial statements as further described below. In accordance with the guidance set forth in SEC Staff Accounting Bulletin No. 99, Materiality, and SEC Staff Accounting Bulletin No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements, management concluded that the error was not material to the consolidated financial statements as presented in the Company's quarterly and annual financial statements that had been previously filed in the Company's Quarterly Reports on Form 10-Q and Annual Reports on Form 10-K. As a result, amendment of such reports is not required. The Company revised the previously issued annual consolidated financial statements for 2020 in this Form 10-Q to correct this error. The corrected immaterial error was in the calculation of the impact of unrealized gains and losses on lifetime income benefit reserves as of December 31, 2020 determined in the first quarter of 2021. This immaterial error resulted in an increase in the lifetime income benefit reserves which are included in policy benefit reserves in the consolidated balance sheet, an increase in the deferred policy acquisition costs and deferred sales inducements and a decrease in deferred income taxes with an offsetting change in accumulated other comprehensive income which is a component of total stockholders' equity. The immaterial error had no impact on the consolidated statement of operations or consolidated statement of cash flows. The effect of the revisions on the Company's previously issued financial statements are provided in the tables below. Amounts throughout the consolidated financial statements and notes thereto have been adjusted to incorporate the revised amounts, where applicable. The following tables reconcile selected lines from the Company's year-end December 31, 2020 consolidated balance sheet and the three and nine months ended September 30, 2020 consolidated statement of comprehensive income from the previously reported amounts to the revised amounts.
Revised Consolidated Balance Sheet | Year Ended December 31, 2020
| As Reported |  | Adjustment |  | As Revised
| (Dollars in thousands)
Assets |  |  |  |  |
Deferred policy acquisition costs | $ | 2,045,812 |  |  | $ | 179,387 |  |  | $ | 2,225,199 |
Deferred sales inducements | 1,328,857 |  |  | 119,518 |  |  | 1,448,375 |
Total assets | 71,389,674 |  |  | 298,905 |  |  | 71,688,579 |
Liabilities and Stockholders' Equity |  |  |  |  |
Liabilities: |  |  |  |  |
Policy benefit reserves | 61,768,246 |  |  | 584,636 |  |  | 62,352,882 |
Deferred income taxes | 564,003 |  |  | (60,003) |  |  | 504,000 |
Total liabilities | 64,814,958 |  |  | 524,633 |  |  | 65,339,591 |
Stockholders' equity: |  |  |  |  |
Accumulated other comprehensive income | 2,429,285 |  |  | (225,728) |  |  | 2,203,557 |
Total stockholders' equity | 6,574,716 |  |  | (225,728) |  |  | 6,348,988 |
Total liabilities and stockholders' equity | 71,389,674 |  |  | 298,905 |  |  | 71,688,579 |
Revised Consolidated Statement of Comprehensive Income | Three Months Ended September 30, 2020
| As Reported |  | Adjustment |  | As Revised
| (Dollars in thousands)
Other comprehensive income: |  |  |  |  |
Change in net unrealized investment gains/losses (1) | $ | 494,154 |  |  | $ | (73,607) |  |  | $ | 420,547 |
Other comprehensive income before income tax | 496,546 |  |  | (73,607) |  |  | 422,939 |
Income tax effect related to other comprehensive income | (104,274) |  |  | 15,458 |  |  | (88,816) |
Other comprehensive income | 392,272 |  |  | (58,149) |  |  | 334,123 |
Comprehensive income | 1,059,472 |  |  | (58,149) |  |  | 1,001,323 |
| Nine Months Ended September 30, 2020
| As Reported |  | Adjustment |  | As Revised
| (Dollars in thousands)
Other comprehensive income: |  |  |  |  |
Change in net unrealized investment gains/losses (1) | $ | 767,646 |  |  | $ | (72,053) |  |  | $ | 695,593 |
Other comprehensive income before income tax | 777,456 |  |  | (72,053) |  |  | 705,403 |
Income tax effect related to other comprehensive income | (163,266) |  |  | 15,131 |  |  | (148,135) |
Other comprehensive income | 614,190 |  |  | (56,922) |  |  | 557,268 |
Comprehensive income | 1,276,908 |  |  | (56,922) |  |  | 1,219,986 |
(1)Net of related adjustments to amortization of deferred sales inducements, deferred policy acquisition costs and policy benefit reserves

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- Definition The entire disclosure for reporting error correction. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section 50 -Paragraph 7 -URI http://asc.fasb.org/extlink&oid=124431687&loc=d3e22644-107794 + Details
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