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Other Revenues and Other Expenses
 9 Months Ended
Sep. 30, 2018
Other Income and Expenses [Abstract]  
Other Expenses
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 are based on a 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 $65 million and $195 million for the three months and nine months ended September 30, 2018, respectively, and $66 million and $197 million for the three months and nine months ended September 30, 2017, respectively, of which substantially all were reported in the Annuities segment.
Other Expenses
Information on other expenses was as follows:
 
Three Months Ended 
 September 30,
 
Nine Months Ended 
 September 30,
 
2018
 
2017
 
2018
 
2017
 
(In millions)
Compensation
$
95

 
$
77

 
$
245

 
$
195

Commissions
199

 
189

 
582

 
557

Volume-related costs
27

 
31

 
83

 
146

Expenses on ceded and assumed reinsurance with current and former affiliates
(1
)
 
(3
)
 
(9
)
 
1

Capitalization of DAC
(82
)
 
(57
)
 
(233
)
 
(185
)
Interest expense on debt
4

 
(1
)
 
2

 
56

Premium taxes, licenses and fees
11

 
15

 
51

 
45

Professional services
119

 
53

 
212

 
134

Rent and related expenses
3

 
2

 
9

 
9

Other
134

 
140

 
411

 
384

Total other expenses
$
509

 
$
446

 
$
1,353

 
$
1,342


Related Party Expenses
Commissions and capitalization of DAC include the impact of related party reinsurance transactions. See Note 11 for a discussion of related party expenses included in the table above.