Other Expenses

3 Months Ended

Mar. 31, 2012

Other Expenses [Abstract]

Other Expenses

13.  Other Expenses

Information on other expenses was as follows:

	Three Months Ended March 31,
	2012			2011
	(In millions)
Compensation	$	1,494		$	1,327
Pension, postretirement and postemployment benefit costs		118			95
Commissions		1,557			1,416
Volume-related costs		92			83
Interest credited to bank deposits		21			23
Capitalization of DAC		(1,364	)		(1,264	)
Amortization of DAC and VOBA		714			939
Amortization of negative VOBA		(155	)		(183	)
Interest expense on debt and debt issuance costs		358			415
Premium taxes, licenses and fees		199			135
Professional services		415			283
Rent, net of sublease income		120			107
Other		752			714
Total other expenses	$	4,321		$	4,090

Capitalization of DAC and Amortization of DAC and VOBA

See Note 6 for DAC and VOBA by segment and a rollforward of each including impacts of capitalization and amortization. See also Note 9 for a description of the DAC amortization impact associated with the closed block. See Note 1 for information on the retrospective application of the adoption of new accounting guidance related to DAC.

Costs Related to the Acquisition of ALICO

Integration-Related Expenses

Integration-related costs were $85 million and $68 million for the three months ended March 31, 2012 and 2011, respectively. Integration-related costs represent costs directly related to integrating American Life and Delaware American Life Insurance Company (collectively, “ALICO”), including expenses for consulting, rebranding 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 within Corporate & Other.

Restructuring Charges

As part of the integration of ALICO’s operations, management initiated restructuring plans focused on increasing productivity and improving the efficiency of the Company’s operations. See Note 2 of the Notes to the Consolidated Financial Statements included in the 2011 Annual Report. Estimated restructuring charges may change as management continues to execute its restructuring plans. Management anticipates further restructuring charges, including severance, contract termination costs and other associated costs through the year ended December 31, 2013. However, such restructuring plans are not sufficiently developed to enable management to make an estimate of such restructuring charges at March 31, 2012.

Restructuring charges associated with restructuring plans related to the acquisition of ALICO are included in other expenses within Corporate & Other. Such restructuring charges included:

	Three Months Ended March 31,
	2012			2011
	(In millions)
Balance, beginning of period	$	13		$	10
Restructuring charges		3			17
Cash payments		(5	)		(14	)
Balance, end of period	$	11		$	13
Restructuring charges incurred in current period	$	3		$	17
Total restructuring charges incurred since inception of restructuring plans	$	59		$	27