Other Revenues and Other Expenses

9 Months Ended

Sep. 30, 2019

Other Income and Expenses [Abstract]

Other Revenues and 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. 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 $60 million and $179 million for the three months and nine months ended September 30, 2019, respectively, and $65 million and $195 million for the three months and nine months ended September 30, 2018, 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,
	2019		2018		2019		2018
	(In millions)
Compensation	$	71	$	63	$	217	$	213
Contracted services and other labor costs	66		53		162		152
Transition services agreements	62		67		189		206
Establishment costs	20		100		93		100
Premium and other taxes, licenses and fees	14		11		30		51
Separate account fees	—		—		2		1
Volume related costs, excluding compensation, net of DAC capitalization	144		154		436		462
Interest expense on debt	17		—		43		2
Other	70		61		181		166
Total other expenses	$	464	$	509	$	1,353	$	1,353

Related Party Expenses

See Note 11 for a discussion of related party expenses included in the table above.