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OTHER OPERATING STATEMENT DATA
 12 Months Ended
Dec. 31, 2016
Insurance [Abstract]  
OTHER OPERATING STATEMENT DATA
OTHER OPERATING STATEMENT DATA

Insurance policy income consisted of the following (dollars in millions):

 
2016
 
2015
 
2014
Direct premiums collected
$
3,942.7

 
$
3,769.6

 
$
3,856.2

Reinsurance assumed
33.8

 
38.4

 
34.5

Reinsurance ceded
(132.9
)
 
(142.8
)
 
(187.9
)
Premiums collected, net of reinsurance
3,843.6

 
3,665.2

 
3,702.8

Change in unearned premiums
6.2

 
5.9

 
9.1

Less premiums on interest-sensitive life and products without mortality and morbidity risk which are recorded as additions to insurance liabilities
(1,386.7
)
 
(1,241.9
)
 
(1,295.4
)
Premiums on traditional products with mortality or morbidity risk
2,463.1

 
2,429.2

 
2,416.5

Fees and surrender charges on interest-sensitive products
138.0

 
126.8

 
213.2

Insurance policy income
$
2,601.1

 
$
2,556.0

 
$
2,629.7



The four states with the largest shares of 2016 collected premiums were Florida (9 percent), Pennsylvania (6 percent), Texas (5 percent) and California (5 percent). No other state accounted for more than five percent of total collected premiums.

Other operating costs and expenses were as follows (dollars in millions):

 
2016
 
2015
 
2014
Commission expense
$
110.5

 
$
103.8

 
$
99.4

Salaries and wages
231.0

 
205.2

 
242.4

Other
454.8

 
430.2

 
461.0

Total other operating costs and expenses
$
796.3

 
$
739.2

 
$
802.8



Changes in the present value of future profits were as follows (dollars in millions):

 
2016
 
2015
 
2014
Balance, beginning of year
$
449.0

 
$
489.4

 
$
679.3

Amortization
(62.2
)
 
(69.1
)
 
(76.2
)
Effect of reinsurance transaction
—

 
—

 
5.0

Amounts related to CLIC prior to being sold
—

 
—

 
(15.5
)
Amounts related to changes in unrealized investment gains (losses) on fixed maturities, available for sale
15.0

 
28.7

 
(103.2
)
Balance, end of year
$
401.8

 
$
449.0

 
$
489.4



Based on current conditions and assumptions as to future events on all policies inforce, the Company expects to amortize approximately 11 percent of the December 31, 2016 balance of the present value of future profits in 2017, 10 percent in 2018, 9 percent in 2019, 8 percent in 2020 and 7 percent in 2021. The discount rate used to determine the amortization of the present value of future profits averaged approximately 5 percent in the years ended December 31, 2016, 2015 and 2014.

In accordance with authoritative guidance, we are required to amortize the present value of future profits in relation to estimated gross profits for interest-sensitive life products and annuity products. Such guidance also requires that estimates of expected gross profits used as a basis for amortization be evaluated regularly, and that the total amortization recorded to date be adjusted by a charge or credit to the statement of operations, if actual experience or other evidence suggests that earlier estimates should be revised.

Changes in deferred acquisition costs were as follows (dollars in millions):

 
2016
 
2015
 
2014
Balance, beginning of year
$
1,083.3

 
$
770.6

 
$
968.1

Additions
242.7

 
246.4

 
242.8

Amortization
(191.1
)
 
(190.9
)
 
(171.2
)
Effect of reinsurance transaction
—

 
—

 
24.0

Amounts related to CLIC prior to being sold
—

 
—

 
(37.6
)
Amounts related to changes in unrealized investment gains (losses) on fixed maturities, available for sale
(90.2
)
 
257.2

 
(255.5
)
Balance, end of year
$
1,044.7

 
$
1,083.3

 
$
770.6