Other Revenues and Other Expenses

12 Months Ended

Dec. 31, 2019

Other Income and Expenses [Abstract]

Other Expenses

12. 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 $240 million, $255 million and $264 million for the years ended December 31, 2019, 2018 and 2017, respectively, of which substantially all were reported in the Annuities segment.

Other Expenses

Information on other expenses was as follows:

	Years Ended December 31,
	2019		2018		2017
	(In millions)
Compensation	$	304	$	278	$	263
Contracted services and other labor costs	252		194		130
Transition services agreements	237		268		295
Establishment costs	76		131		116
Premium and other taxes, licenses and fees	43		64		58
Separate account fees	3		2		3
Volume related costs, excluding compensation, net of DAC capitalization	591		595		687
Interest expense on debt	60		6		56
Other	243		225		225
Total other expenses	$	1,809	$	1,763	$	1,833

Capitalization of DAC

See Note 5 for additional information on the capitalization of DAC.

Interest Expense on Debt

See Note 10 for attribution of interest expense by debt issuance.

Related Party Expenses

See Note 15 for a discussion of related party expenses included in the table above.