Other Revenues and Other Expenses

3 Months Ended

Mar. 31, 2022

Other Income and Expenses [Abstract]

Other Revenues and Other Expenses

8. 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 $61 million and $65 million for the three months ended March 31, 2022 and 2021, respectively, of which substantially all were reported in the Annuities segment.

Other Expenses

Information on other expenses was as follows:

	Three Months Ended March 31,
	2022		2021
	(In millions)
Compensation	$	81	$	85
Contracted services and other labor costs	50		53
Transition services agreements	26		30
Establishment costs	14		16
Premium and other taxes, licenses and fees	12		13
Volume related costs, excluding compensation, net of DAC capitalization	137		158
Interest expense on debt	17		17
Other	49		52
Total other expenses	$	386	$	424

Related Party Expenses

See Note 10 for a discussion of related party expenses included in the table above.