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REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS
 3 Months Ended
Mar. 31, 2019
Accounting Changes and Error Corrections [Abstract]  
Revision of Prior Period Financial Statements
    REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS
Reclassification of DAC Capitalization
During the fourth quarter of 2018, the Company changed the presentation of the capitalization of DAC in the consolidated statements of income for all prior periods presented herein by netting the capitalized amounts within the applicable expense line items, such as Compensation and benefits, Commissions and Other operating costs and expenses. Previously, the Company had netted the capitalized amounts within the Amortization of DAC. There was no impact on Net income (loss) or Comprehensive income (loss) from this reclassification. See Note 2 for further details of this reclassification.
Revisions of Prior Period Financial Statements
During the second and third quarter of 2018, the Company revised its financial statements to reflect the correction of errors identified by the Company in its previously issued financial statements. The impact of these errors was not considered to be material. However, in order to improve the consistency and comparability of the financial statements, management revised the Company’s consolidated financial statements as of and for the three and six months ended March 31, 2018 and June 30, 2018, respectively.
In addition, during the fourth quarter of 2018, the Company identified certain cash flows that were incorrectly classified in the Company’s consolidated statements of cash flows. The Company has determined that these misclassifications were not material to its financial statements of any period.
The impact of the misclassifications detailed in the revision tables included on the consolidated statement of cash flows for the three months ended March 31, 2018 were corrected in the comparative consolidated statements of cash flows for the three months ended March 31, 2019 and 2018 contained elsewhere in the financial statements. The misclassifications for the six and nine months ended June 30, 2018 and September 30, 2018 will be corrected in the Company’s comparative consolidated statements of cash flows to be included in the Form 10-Q filings as of and for the three and six months ended June 30, 2019 and as of and for the three and nine months ended September 30, 2019, respectively.
Discontinued Operations
As further described in Note 13, as a result of the AB Business Transfer in the fourth quarter of 2018, AB’s operations are now reflected as discontinued operations in the Company’s consolidated financial statements. The financial information for prior periods presented in the consolidated financial statements have been adjusted to reflect AB as discontinued operations.
Revision of Consolidated Financial Statements as of and for the Three Months Ended March 31, 2018
The following tables present line items of the consolidated financial statements as of and for the three months ended March 31, 2018 that have been affected by the revisions. This information has been corrected from the information previously presented in the Company’s March 31, 2018 Form 10-Q. For these items, the tables detail the amounts as previously reported and the impact upon those line items due to the reclassifications to conform to the current presentation, adjustment for the discontinued operations, revisions and the amounts as currently revised. Prior period amounts have been reclassified to conform to current period presentation, where applicable, and are summarized in the accompanying tables.
 
As of March 31, 2018
 
As Previously
Reported
 
Discontinued Operations Adjustment
 
As Adjusted
 
Impact of Revisions
 
As Revised
 
(in millions)
Consolidated Balance Sheet:
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
DAC
$
4,826

 
$
—

 
$
4,826

 
$
(119
)
 
$
4,707

Total Assets
$
222,424

 
$
—

 
$
222,424

 
$
(119
)
 
$
222,305

 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
Future policy benefits and other policyholders’ liabilities
$
28,374

 
$
—

 
$
28,374

 
$
(10
)
 
$
28,364

Current and deferred income taxes
1,728

 
(432
)
 
1,296

 
(38
)
 
1,258

Other liabilities
3,041

 
(1,941
)
 
1,100

 
70

 
1,170

Total Liabilities
$
202,767

 
$
—

 
$
202,767

 
$
22

 
$
202,789

 
 
 
 
 
 
 
 
 
 
Equity:
 
 
 
 
 
 
 
 
 
Retained earnings
$
8,824

 
$
—

 
$
8,824

 
$
(141
)
 
$
8,683

Total equity attributable to AXA Equitable
15,545

 
—

 
15,545

 
(141
)
 
15,404

Total Equity
18,633

 
—

 
18,633

 
(141
)
 
18,492

Total Liabilities, Redeemable Noncontrolling Interest and Equity
$
222,424

 
$
—

 
$
222,424

 
$
(119
)
 
$
222,305

 
Three Months Ended March 31, 2018
 
As Previously
Reported
 
Gross DAC Adjustment
 
Discontinued Operations Adjustment
 
As Adjusted
 
Impact of Revisions
 
As Revised
 
(in millions)
Consolidated Statement of Income (Loss):
 
 
 
 
 
 
 
 
 
 
 
Revenues:
 
 
 
 
 
 
 
 
 
 
 
Policy charges and fee income
$
869

 
$
—

 
$
—

 
$
869

 
$
(8
)
 
$
861

Net derivative gains (losses)
(777
)
 
—

 
(2
)
 
(779
)
 
(38
)
 
(817
)
Total revenues
2,031

 
—

 
(846
)
 
1,185

 
(46
)
 
1,139

 
 
 
 
 
 
 
 
 
 
 
 
Benefits and other deductions:
 
 
 
 
 
 
 
 
 
 
 
Policyholders’ benefits
489

 
—

 
—

 
489

 
(9
)
 
480

Interest credited to policyholders’ account balances
338

 
—

 
—

 
338

 
(83
)
 
255

Compensation and benefits
456

 
(33
)
 
(344
)
 
79

 
70

 
149

Commissions
371

 
(101
)
 
(110
)
 
160

 
—

 
160

Amortization of DAC
10

 
135

 
—

 
145

 
64

 
209

Other operating costs and expenses
440

 
(1
)
 
(189
)
 
250

 
—

 
250

Total benefits and other deductions
2,115

 
—

 
(645
)
 
1,470

 
42

 
1,512

Income (loss) from continuing operations, before income taxes
(84
)
 
—

 
(201
)
 
(285
)
 
(88
)
 
(373
)
Income tax (expense) benefit from continuing operations
44

 
—

 
17

 
61

 
19

 
80

Net income (loss) from continuing operations
(40
)
 
—

 
(184
)
 
(224
)
 
(69
)
 
(293
)
Net income (loss)
(40
)
 
—

 
(155
)
 
(195
)
 
(69
)
 
(264
)
Net income (loss) attributable to AXA Equitable
$
(194
)
 
$
—

 
$
—

 
$
(194
)
 
$
(69
)
 
$
(263
)
 
Three Months Ended March 31, 2018
 
As Previously
Reported
 
Discontinued Operations Adjustment
 
As Adjusted
 
Impact of Revisions
 
As Revised
 
(in millions)
Statement of Comprehensive Income (Loss):
 
 
 
 
 
 
 
 
 
Net income (loss)
$
(40
)
 
$
(155
)
 
$
(195
)
 
$
(69
)
 
$
(264
)
Comprehensive income (loss)
$
(789
)
 
$
(162
)
 
$
(951
)
 
$
(69
)
 
$
(1,020
)
Comprehensive income (loss) attributable to AXA Equitable
$
(950
)
 
$
(1
)
 
$
(951
)
 
$
(69
)
 
$
(1,020
)
 
Three Months Ended March 31, 2018
 
As Previously
Reported
 
Discontinued Operations Adjustment
 
As Adjusted
 
Impact of Revisions
 
As Revised
 
(in millions)
Consolidated Statement of Equity:
 
 
 
 
 
 
 
 
 
Retained earnings, beginning of year
$
9,010

 
$
—

 
$
9,010

 
$
(72
)
 
$
8,938

Net income (loss)
(194
)
 
—

 
(194
)
 
(69
)
 
(263
)
Retained earnings, end of period
8,824

 
—

 
8,824

 
(141
)
 
8,683

Total AXA Equitable’s equity, end of period
15,545

 
—

 
15,545

 
(141
)
 
15,404

Total Equity, End of Period
$
18,633

 
$
—

 
$
18,633

 
$
(141
)
 
$
18,492


 
Three Months Ended March 31, 2018
 
As Previously
Reported
 
Presentation Reclassifi- cations
 
Impact of Revisions
 
As Revised
 
(in millions)
Consolidated Statement of Cash Flows:
 
 
 
 
 
 
 
Cash flows from operating activities:
 
 
 
 
 
 
 
Net income (loss) (1)
$
(40
)
 
$
—

 
$
(69
)
 
$
(109
)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
 
 
 
 
 
 
 
Interest credited to policyholders’ account balances
338

 
—

 
(83
)
 
255

Policy charges and fee income
(869
)
 
—

 
8

 
(861
)
Net derivative (gains) losses
777

 
—

 
38

 
815

Amortization and depreciation
—

 
137

 
64

 
201

Amortization of deferred sales commission
7

 
(7
)
 
—

 
—

Other depreciation and amortization
(23
)
 
23

 
—

 
—

Amortization of other intangibles
8

 
(8
)
 
—

 
—

Equity (income) loss from limited partnerships
—

 
(39
)
 
—

 
(39
)
Distributions from joint ventures and limited partnerships
25

 
(25
)
 
—

 
—

Changes in:
 
 
 
 
 
 
 
Reinsurance recoverable
2

 
—

 
(149
)
 
(147
)
DAC
10

 
(10
)
 
—

 
—

Capitalization of DAC
—

 
(135
)
 
—

 
(135
)
Future policy benefits
(191
)
 
—

 
(7
)
 
(198
)
Current and deferred income taxes
(52
)
 
—

 
132

 
80

Other, net
(122
)
 
64

 
70

 
12

Net cash provided by (used in) operating activities
$
(21
)
 
$
—

 
$
4

 
$
(17
)
 
 
 
 
 
 
 
 
Cash flows from investing activities:
 
 
 
 
 
 
 
Proceeds from the sale/maturity/prepayment of:
 
 
 
 
 
 
 
Trading account securities
$
1,606

 
$
—

 
$
77

 
$
1,683

Real estate joint ventures
—

 
140

 
—

 
140

Short-term investments
—

 
688

 
—

 
688

Other
54

 
(140
)
 
—

 
(86
)
Payment for the purchase/origination of:
 
 
 
 
 
 
 
Short-term investments
—

 
(377
)
 
—

 
(377
)
Cash settlements related to derivative instruments
(14
)
 
—

 
(489
)
 
(503
)
Change in short-term investments
396

 
(311
)
 
(85
)
 
—

Other, net
(560
)
 
—

 
153

 
(407
)
Net cash provided by (used in) investing activities
$
(639
)
 
$
—

 
$
(344
)
 
$
(983
)
 
 
 
 
 
 
 
 
Cash flows from financing activities:
 
 
 
 
 
 
 
Policyholders’ account balances:
 
 
 
 
 
 
 
Deposits
$
2,366

 
$
—

 
$
(468
)
 
$
1,898

Withdrawals
(1,322
)
 
—

 
241

 
(1,081
)
Transfers (to) from Separate Accounts
(115
)
 
—

 
567

 
452

Net cash provided by (used in) financing activities
$
1,040

 
$
—

 
$
340

 
$
1,380

 
 
 
 
 
 
 
 
Non-cash transactions during the period:
 
 
 
 
 
 
 
(Settlement) issuance of long-term debt
$
—

 
$
—

 
$
(202
)
 
$
(202
)
Transfer of assets to reinsurer
$
—

 
$
—

 
$
(604
)
 
$
(604
)
______________
(1)
Net income (loss) includes $155 million in the three months ended March 31, 2018 of the discontinued operations that are not included in Net income (loss) in the Consolidated Statements of Income (Loss).