Other Revenues and Other Expenses

6 Months Ended

Jun. 30, 2020

Other Income and Expenses [Abstract]

9. Other Revenues and Other Expenses

Other Revenues

The Company has entered into contracts with mutual funds, fund managers, and their affiliates (collectively, the “Funds”) whereby the Company is paid monthly or quarterly fees (“12b-1 fees”) for providing certain services to customers and distributors of the Funds. The 12b-1 fees are generally equal to a fixed percentage of the average daily balance of the customer’s investment in a fund. The percentage is specified in the contract between the Company and the Funds. Payments are generally collected when due and are neither refundable nor able to offset future fees.

To earn these fees, the Company performs services such as responding to phone inquiries, maintaining records, providing information to distributors and shareholders about fund performance and providing training to account managers and sales agents. The passage of time reflects the satisfaction of the Company’s performance obligations to the Funds and is used to recognize revenue associated with 12b-1 fees.

Other revenues consisted primarily of 12b-1 fees of $76 million and $157 million for the three months and six months ended June 30, 2020, respectively, and $85 million and $167 million for the three months and six months ended June 30, 2019, respectively, of which substantially all were reported in the Annuities segment.

Other Expenses

Information on other expenses was as follows:


	Three Months Ended June 30,						Six Months Ended June 30,
	2020		2019		2020		2019
	(In millions)
Compensation	$	93	$	80	$	162	$	162
Contracted services and other labor costs	78		65		146		112
Transition services agreements	15		65		53		132
Establishment costs	35		38		53		72
Premium and other taxes, licenses and fees	14		13		26		20
Separate account fees	108		122		225		242
Volume related costs, excluding compensation, net of DAC capitalization	162		153		290		317
Interest expense on debt	45		48		92		95
Other	27		37		47		61
Total other expenses	$	577	$	621	$	1,094	$	1,213