Other Revenues and Other Expenses

9 Months Ended

Sep. 30, 2019

Other Income and Expenses [Abstract]

Other Income and Other Expense Disclosure

12. Other Revenues and Other Expenses

Other Revenues

Information on other revenues, which primarily includes fees related to service contracts from customers, was as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
	(In millions)
Prepaid legal plans	$	87	$	74	$	259	$	220
Fee-based investment management	67		74		213		219
Recordkeeping and administrative services (1)	52		56		154		170
Administrative services-only contracts	53		53		159		162
Other revenue from service contracts from customers	54		72		189		208
Total revenues from service contracts from customers	313		329		974		979
Other	106		150		417		449
Total other revenues	$	419	$	479	$	1,391	$	1,428

__________________

(1)

Related to products and businesses no longer actively marketed by the Company.

Other Expenses

Information on other expenses was as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
	(In millions)
Employee related costs (1)	$	876		$	921		$	2,714		$	2,752
Third party staffing costs	425			435			1,214			1,217
General and administrative expenses	273			290			733			884
Pension, postretirement and postemployment benefit costs	57			45			170			141
Premium taxes, other taxes, and licenses & fees	164			193			508			559
Commissions and other variable expenses	1,514			1,403			4,433			4,257
Capitalization of DAC	(882		)	(810		)	(2,531		)	(2,440		)
Amortization of DAC and VOBA	797			732			2,110			2,132
Amortization of negative VOBA	(4		)	(7		)	(24		)	(45		)
Interest expense on debt	223			267			731			862
Total other expenses	$	3,443		$	3,469		$	10,058		$	10,319

__________________

(1)

Includes ($59) million and ($176) million for the three months and nine months ended September 30, 2019, respectively, and ($40) million and ($57) million for the three months and nine months ended September 30, 2018, respectively, for the net change in cash surrender value of investments in certain life insurance policies, net of premiums paid.

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:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
	Severance
	(In millions)
Balance, beginning of period	$	20		$	20		$	23		$	22
Restructuring charges	40			17			61			35
Cash payments	(13		)	(17		)	(37		)	(37		)
Balance, end of period	$	47		$	20		$	47		$	20
Total restructuring charges incurred since inception of initiative	$	197		$	108		$	197		$	108

Management anticipates further restructuring charges through the year ending December 31, 2019 and expects to bring the program to a close at that time. While management anticipates final restructuring charges in the fourth quarter, program assumptions, which include a significant amount of variability, are still being evaluated and finalized. Therefore, management is unable to make an estimate of remaining restructuring charges at September 30, 2019.