XML 124 R20.htm IDEA: XBRL DOCUMENT v2.4.0.8
Other Expenses
 9 Months Ended
Sep. 30, 2013
Other Income and Expenses [Abstract]  
Other Expenses
12. Other Expenses
Information on other expenses was as follows:
 
Three Months 
 Ended 
 September 30,
 
Nine Months 
 Ended 
 September 30,
 
2013
 
2012
 
2013
 
2012
 
(In millions)
Compensation
$
1,310

 
$
1,307

 
$
3,828

 
$
4,196

Pension, postretirement and postemployment benefit costs
122

 
117

 
367

 
345

Commissions
1,309

 
1,442

 
4,084

 
4,466

Volume-related costs
239

 
154

 
618

 
402

Interest credited to bank deposits
—

 
19

 
2

 
60

Capitalization of DAC
(1,153
)
 
(1,302
)
 
(3,621
)
 
(3,981
)
Amortization of DAC and VOBA
841

 
1,008

 
2,623

 
3,201

Amortization of negative VOBA
(126
)
 
(170
)
 
(410
)
 
(506
)
Interest expense on debt and debt issuance costs
317

 
326

 
959

 
1,026

Premium taxes, licenses and fees
173

 
176

 
498

 
519

Professional services
349

 
432

 
976

 
1,210

Rent, net of sublease income
89

 
107

 
283

 
339

Other (1)
507

 
629

 
1,933

 
2,064

Total other expenses
$
3,977

 
$
4,245

 
$
12,140

 
$
13,341

__________________
(1)
See Note 3 for information on the Japan income tax refund included in other expenses for the nine months ended September 30, 2013.
Restructuring Charges
The Company commenced in 2012 an enterprise-wide strategic initiative. This global strategy focuses on leveraging the Company’s scale to improve the value it provides to customers and shareholders in order to reduce costs, enhance revenues, achieve efficiencies and reinvest in its technology, platforms and functionality to improve its current operations and develop new capabilities.
These restructuring charges are included in other expenses. As the expenses relate to an enterprise-wide initiative, they are reported in Corporate & Other. Estimated restructuring costs may change as management continues to execute this enterprise-wide strategic initiative. Such restructuring charges were as follows:
 
Three Months 
 Ended 
 September 30,
 
2013
 
2012
 
Severance
 
Lease and Asset Impairment
 
Total
 
Severance
 
Lease and Asset Impairment
 
Total
 
(In millions)
Balance, beginning of period
$
12

 
$
9

 
$
21

 
$
21

 
$
—

 
$
21

Restructuring charges
14

 
2

 
16

 
46

 
8

 
54

Cash payments
(13
)
 
(4
)
 
(17
)
 
(40
)
 
—

 
(40
)
Balance, end of period
$
13

 
$
7

 
$
20

 
$
27

 
$
8

 
$
35


 
Nine Months 
 Ended 
 September 30,
 
2013
 
2012
 
Severance
 
Lease and Asset Impairment
 
Total
 
Severance
 
Lease and Asset Impairment
 
Total
 
(In millions)
Balance, beginning of period
$
23

 
$
—

 
$
23

 
$
—

 
$
—

 
$
—

Restructuring charges
51

 
14

 
65

 
93

 
8

 
101

Cash payments
(61
)
 
(7
)
 
(68
)
 
(66
)
 
—

 
(66
)
Balance, end of period
$
13

 
$
7

 
$
20

 
$
27

 
$
8

 
$
35

Total restructuring charges incurred since inception of initiative
$
192

 
$
32

 
$
224

 
$
93

 
$
8

 
$
101


Management anticipates further restructuring charges including severance, as well as lease and asset impairments, through the year ending December 31, 2015. However, such restructuring plans were not sufficiently developed to enable management to make an estimate of such restructuring charges at September 30, 2013.
ALICO Acquisition Integration-Related Expenses
Integration-related costs were $25 million and $115 million for the three months and nine months ended September 30, 2013, respectively, and were $95 million and $239 million for the three months and nine months ended September 30, 2012, respectively. Integration-related costs represent costs directly related to integrating ALICO, including expenses for consulting and the integration of information systems. Such costs have been expensed as incurred and, as the integration of ALICO is an enterprise-wide initiative, these expenses are reported in Corporate & Other.