Intangibles

1 Months Ended

9 Months Ended

Jun. 30, 2020

Sep. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

A summary of the changes in the carrying amounts of the Company's VOBA, DAC and DSI intangible assets are as follows (in millions):


	VOBA		DAC		DSI		Total
Balance at Balance at December 31, 2019	$	—	$	—	$	—	$	—
F&G acquisition	1,903		—		—		1,903
Deferrals	—		130		25		155
Amortization	(56)		(3)		(2)		(61)
Interest	12		1		—		13
Unlocking	(1)		—		—		(1)
Adjustment for net unrealized investment (gains) losses	(228)		(15)		(4)		(247)
Balance at September 30, 2020	$	1,630	$	113	$	19	$	1,762

Amortization of VOBA, DAC, and DSI is based on the current and future expected gross margins or profits recognized, including investment gains and losses. The interest accrual rate utilized to calculate the accretion of interest on VOBA ranged from 0% to 4.71%. The adjustment for unrealized net investment losses (gains) represents the amount of VOBA, DAC, and DSI that would have been amortized if such unrealized gains and losses had been recognized. This is referred to as the “shadow adjustments” as the additional amortization is reflected in AOCI rather than the unaudited Condensed Consolidated Statements of Earnings. As of September 30, 2020, the VOBA balances included cumulative adjustments for net unrealized investment gains of $228 million, the DAC balances included cumulative adjustments for net unrealized investment gains of $15 million, and the DSI balance included net unrealized investment gains of $4 million.

For the inforce liabilities as of September 30, 2020, the estimated amortization expense for VOBA in future fiscal periods is as follows (in millions):


	Estimated Amortization Expense
Fiscal Year
2020	$	27
2021	146
2022	197
2023	198
2024	187
Thereafter	1,103

The Company had an unearned revenue liability balance of $(1) as of September 30, 2020, including deferrals of $(17) million, amortization of $3, interest of $0, unlocking of $0 and adjustment for net unrealized investment gains (losses) of $13 million.

Definite and Indefinite Lived Other Intangible Assets

Other intangible assets as of September 30, 2020 consist of the following (in millions):


	Cost		Accumulated amortization		Net carrying amount		Weighted average useful life (years)
Customer relationships and contracts	$	768	$	(594)	$	174	10
Computer software	394		(246)		148		2 to 10
Value of Distribution Asset (VODA)	140		(6)		134		15
Definite lived trademarks, tradenames, and other	69		(22)		47		10
Indefinite lived tradenames and other	40		N/A		40		Indefinite
Total					$	543

Other intangible assets as of September 30, 2020 consist of the following (in millions):


	Cost		Accumulated amortization		Net carrying amount		Weighted average useful life (years)
Customer relationships and contracts	$	768	$	(594)	$	174	10
Computer software	394		(246)		148		2 to 10
Value of Distribution Asset (VODA)	140		(6)		134		15
Definite lived trademarks, tradenames, and other	69		(22)		47		10
Indefinite lived tradenames and other	40		N/A		40		Indefinite
Total					$	543