Other Expenses

12 Months Ended

Dec. 31, 2017

Other Income and Expenses [Abstract]

Other Expenses

16. Other Expenses

Information on other expenses was as follows:

	Years Ended December 31,
	2017			2016			2015
	(In millions)
Employee and related costs	$	3,595		$	3,840		$	3,950
Professional services	1,693			1,619			1,568
General and administrative expenses	1,129			1,007			1,417
Pension, postretirement and postemployment benefit costs	307			400			367
Premium taxes, other taxes, and licenses & fees	842			688			691
Commissions and other variable expenses	5,387			5,741			6,112
Capitalization of DAC	(3,002		)	(3,152		)	(3,319		)
Amortization of DAC and VOBA	2,681			2,718			3,184
Amortization of negative VOBA	(140		)	(269		)	(361		)
Interest expense on debt	1,129			1,157			1,168
Total other expenses	$	13,621		$	13,749		$	14,777

Certain prior year amounts have been reclassified to conform to the current year presentation, which has been revised to align the expense categories with the Company’s businesses. The reclassifications did not result in a change to total other expenses.

See Note 3for further information on Separation-related transaction costs.

Capitalization of DAC and Amortization of DAC and VOBA

See Note 5 for additional information on DAC and VOBA including impacts of capitalization and amortization. See also Note 7 for a description of the DAC amortization impact associated with the closed block.

Interest Expense on Debt

See Notes 12, 13, and 14 for attribution of interest expense by debt issuance. Interest expense on debt includes interest expense related to CSEs. See Note 8.

Income Tax

See Note 18 for information on the charge related to income tax for the year ended December 31, 2015.

Restructuring Charges

The Company commenced in 2016 a unit cost improvement program related to the Company’s refreshed enterprise strategy. This global strategy focuses on transforming the Company to become more digital, driving efficiencies and innovation to achieve competitive advantage, and simplified, decreasing the costs and risks associated with the Company’s highly complex industry to customers and shareholders. Restructuring charges related to this program are included in other expenses. As the expenses relate to an enterprise-wide initiative, they are reported in Corporate & Other. Such restructuring charges were as follows:

	Years Ended December 31,
	2017			2016
	Severance
	(In millions)
Balance at January 1,	$	35		$	—
Restructuring charges	38			35
Cash payments	(51		)	—
Balance at December 31,	$	22		$	35
Total restructuring charges incurred since inception of initiative	$	73		$	35

Management anticipates further restructuring charges through the year ending December 31, 2019. However, such restructuring plans were not sufficiently developed to enable management to make an estimate of such restructuring charges at December 31, 2017.

In 2016, the Company completed a previous enterprise-wide strategic initiative. These restructuring charges were included in other expenses. As the expenses related to an enterprise-wide initiative, they were reported in Corporate & Other. Information regarding such restructuring charges was as follows:

	Years Ended December 31,
	2016									2015
	Severance			Lease and Asset Impairment			Total			Severance			Lease and Asset Impairment			Total
	(In millions)
Balance at January 1,	$	18		$	4		$	22		$	31		$	6		$	37
Restructuring charges	—			1			1			60			4			64
Cash payments	(17		)	(4		)	(21		)	(73		)	(6		)	(79		)
Balance at December 31,	$	1		$	1		$	2		$	18		$	4		$	22
Total restructuring charges incurred since inception of initiative	$	383		$	47		$	430		$	383		$	46		$	429