Other Expenses

3 Months Ended

Mar. 31, 2013

Other Expenses [Abstract]

Other Expenses

10. Other Expenses

Information on other expenses was as follows:

	Three Months Ended March 31,
	2013		2012
	(In millions)
Compensation	$	1,291	$	1,494
Pension, postretirement and postemployment benefit costs		123		118
Commissions		1,388		1,557
Volume-related costs		183		92
Interest credited to bank deposits		2		21
Capitalization of DAC		(1,256)		(1,364)
Amortization of DAC and VOBA		824		714
Amortization of negative VOBA		(146)		(155)
Interest expense on debt and debt issuance costs		321		358
Premium taxes, licenses and fees		159		199
Professional services		303		415
Rent, net of sublease income		93		120
Other (1)		853		752
Total other expenses	$	4,138	$	4,321

(1) See Note 3 for information on the Japan income tax refund included in other expenses for the three months ended March 31, 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, primarily related to severance, were as follows:

	Three Months Ended March 31,
	2013		2012
	(In millions)
Balance, beginning of period	$	23	$	—
Restructuring charges		33		27
Cash payments		(36)		—
Balance, end of period	$	20	$	27
Total restructuring charges incurred since inception of initiative	$	192	$	27

Management anticipates further restructuring charges including severance, lease and asset impairments, through the year ending December 31, 2014. However, such restructuring plans were not sufficiently developed to enable management to make an estimate of such restructuring charges at March 31, 2013.

ALICO Acquisition Integration-Related Expenses

Integration-related costs were $36 million and $85 million for the three months ended March 31, 2013 and 2012, respectively. Integration-related costs represent costs directly related to integrating American Life and Delaware American Life Insurance Company (collectively, “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.