Deferred Acquisition Costs (Tables)

12 Months Ended

Dec. 31, 2014

Deferred Acquisition Costs

DAC at December 31 and the changes in the balance for the years then ended are as follows:

	2014			2013			2012
Balance, beginning of year	$	4,820,215			2,603,307			4,858,136
Capitalization (1)		1,349,236			812,006			737,390
Interest		177,754			186,157			222,229
Amortization		(853,904	)		(1,204,862	)		(1,643,969	)
Change in shadow DAC		(1,130,530	)		2,423,607			(1,570,479	)
Balance, end of year	$	4,362,771			4,820,215			2,603,307

(1) Reflects prospective adoption of new acquisition cost guidance in 2012. See note 2 for adoption impact.

Pretax Impact on Assets and Liabilities as Result of Unlocking

The pretax impact on the Company’s assets and liabilities as a result of the unlocking during 2014, 2013, and 2012 is as follows:

	2014			2013			2012
Assets:
DAC	$	(5,294	)		(82,082	)		(63,616	)
DSI		(8,673	)		(20,860	)		(14,512	)
VOBA		(120	)		116			(1,012	)
Total assets (decrease) increase		(14,087	)		(102,826	)		(79,140	)
Liabilities:
Account balances and future policy benefit reserves		(38,411	)		(224,074	)		86,596
Unearned premiums		(1,851	)		2,439			96
Total liabilities (decrease) increase		(40,262	)		(221,635	)		86,692
Net increase (decrease)		26,175			118,809			(165,832	)
Deferred income tax expense (benefit)		9,161			41,583			(58,041	)
Net increase (decrease)	$	17,014			77,226			(107,791	)