Acquisitions (Tables)

6 Months Ended

Jun. 30, 2020

The initial purchase price is as follows (in millions):


Cash paid for outstanding F&G shares	$	1,803
Less: Cash Acquired	827
Net cash paid for F&G	976
Value of FNF share consideration	772
Value of outstanding converted equity awards attributed to services already rendered	28
Liability accrued to former owners of F&G common shares	132
Total net consideration paid	$	1,908

Schedule of Assets Acquired and Liabilities Assumed

The following table summarizes the preliminary fair value amounts recognized for the assets acquired and liabilities assumed as of the acquisition date (dollars in millions):


	Fair Value
Fixed maturity securities	$	22,389
Preferred securities	876
Equity securities	52
Derivative instruments	313
Mortgage loans	1,754
Investments in unconsolidated affiliates	1,019
Other long-term investments	430
Short-term investments	37

Trade and notes receivable	1
Reinsurance recoverable	3,241

Goodwill	1,725
Prepaid expenses and other assets	352
Lease assets	8
Other intangible assets	2,139
Assets of discontinued operations	2,392
Total assets acquired	36,728

Contractholder funds	26,454
Future policy benefits	4,106
Accounts payable and accrued liabilities	858
Notes payable	589
Funds withheld for reinsurance liabilities	816
Lease liabilities	9
Income taxes payable	(26)
Deferred tax liability	(254)
Liabilities of discontinued operations	2,268
Total liabilities assumed	34,820



Net assets acquired	$	1,908

Gross Carrying Value and Weighted Average Useful Lives of Property and Equipment and Other Intangible Assets Acquired

The gross carrying value and weighted average estimated useful lives of Other intangible assets acquired in the F&G acquisition consist of the following (dollars in millions):


	Gross Carrying Value		Weighted Average Estimated Useful Life (in years)

Other intangible assets:

Value of business acquired	$	1,890	Various
Value of distribution network acquired	185		15
Trademarks and licenses	43		10
Software	21		2
Total Other intangible assets	2,139

Unaudited Pro Forma Results

For comparative purposes, selected unaudited pro-forma consolidated results of operations of FNF for the three and six-month periods ending June 30, 2020 and 2019 are presented below. Pro-forma results presented assume the consolidation of F&G occurred as of the beginning of the respective 2019 periods.




	Three months ended June 30,						Six months ended June 30,
	2020		2019		2020		2019
	(In millions)
Total revenues	$	2,770	$	2,596	$	4,151	$	4,848
Net earnings attributable to FNF common shareholders	306		271		54		581