Stockholders' Equity (Tables)

9 Months Ended

Sep. 30, 2013

Stockholders' Equity

Reconciliation of Outstanding Shares (Table)

	Series A	Series B	Common
	preferred stock	preferred stock	stock
	(in millions)
Outstanding shares at January 1, 2012	3.0	10.0	301.1
Shares issued	—	—	3.0
Treasury stock acquired	—	—	(10.5	)
Outstanding shares at September 30, 2012	3.0	10.0	293.6
Outstanding shares at January 1, 2013	3.0	10.0	293.8
Shares issued	—	—	4.5
Treasury stock acquired	—	—	(4.4	)
Outstanding shares at September 30, 2013	3.0	10.0	293.9

Other Comprehensive Income (Loss) (Table)

	For the three months ended									For the nine months ended
	September 30, 2013									September 30, 2013
	Pre-Tax			Tax			After-Tax			Pre-Tax			Tax			After-Tax
	(in millions)
Net unrealized losses on available-for-sale securities during the period	$	(40.9	)	$	9.1		$	(31.8	)	$	(1,578.4	)	$	511.6		$	(1,066.8	)
Reclassification adjustment for losses included in net income (1)	8.4			(2.9		)	5.5			66.8			(22.7		)	44.1
Adjustments for assumed changes in amortization patterns	29.3			(10.3		)	19.0			241.1			(84.4		)	156.7
Adjustments for assumed changes in policyholder liabilities	54.1			(17.5		)	36.6			505.7			(163.4		)	342.3
Net unrealized gains (losses) on available-for-sale securities	50.9			(21.6		)	29.3			(764.8		)	241.1			(523.7		)
Noncredit component of impairment losses on fixed maturities, available-for-sale during the period	9.3			(2.9		)	6.4			(8.8		)	3.9			(4.9		)
Adjustments for assumed changes in amortization patterns	(13.7		)	4.9			(8.8		)	(13.6		)	4.9			(8.7		)
Adjustments for assumed changes in policyholder liabilities	(0.2		)	0.1			(0.1		)	0.8			(0.3		)	0.5
Noncredit component of impairment losses on fixed maturities, available-for-sale (2)	(4.6		)	2.1			(2.5		)	(21.6		)	8.5			(13.1		)
Net unrealized losses on derivative instruments during the period	(45.7		)	15.9			(29.8		)	(31.7		)	11.7			(20.0		)
Reclassification adjustment for losses included in net income (3)	1.9			(0.8		)	1.1			1.6			(0.8		)	0.8
Adjustments for assumed changes in amortization patterns	2.6			(1.0		)	1.6			9.0			(3.2		)	5.8
Adjustments for assumed changes in policyholder liabilities	2.7			(0.7		)	2.0			15.3			(5.3		)	10.0
Net unrealized losses on derivative instruments	(38.5		)	13.4			(25.1		)	(5.8		)	2.4			(3.4		)
Foreign currency translation adjustment	(32.0		)	(1.5		)	(33.5		)	(177.3		)	7.8			(169.5		)
Amortization of prior service cost and actuarial loss included in net periodic benefit cost (4)	21.2			(7.4		)	13.8			63.7			(22.3		)	41.4
Net unrecognized postretirement benefit obligation	21.2			(7.4		)	13.8			63.7			(22.3		)	41.4
Other comprehensive loss	$	(3.0	)	$	(15.0	)	$	(18.0	)	$	(905.8	)	$	237.5		$	(668.3	)

	For the three months ended									For the nine months ended
	September 30, 2012									September 30, 2012
	Pre-Tax			Tax			After-Tax			Pre-Tax			Tax			After-Tax
	(in millions)
Net unrealized gains on available-for-sale securities during the period	$	810.7		$	(273.0	)	$	537.7		$	1,436.7		$	(468.4	)	$	968.3
Reclassification adjustment for losses included in net income (1)	56.4			(20.3		)	36.1			96.5			(34.3		)	62.2
Adjustments for assumed changes in amortization patterns	(145.8		)	51.1			(94.7		)	(225.4		)	78.9			(146.5		)
Adjustments for assumed changes in policyholder liabilities	(271.5		)	88.4			(183.1		)	(474.1		)	148.1			(326.0		)
Net unrealized gains on available-for-sale securities	449.8			(153.8		)	296.0			833.7			(275.7		)	558.0
Noncredit component of impairment losses on fixed maturities, available-for-sale during the period	(9.2		)	3.2			(6.0		)	(31.2		)	10.9			(20.3		)
Adjustments for assumed changes in amortization patterns	3.0			(1.0		)	2.0			8.5			(3.0		)	5.5
Noncredit component of impairment losses on fixed maturities, available-for-sale (2)	(6.2		)	2.2			(4.0		)	(22.7		)	7.9			(14.8		)
Net unrealized gains (losses) on derivative instruments during the period	(23.9		)	8.3			(15.6		)	5.6			(2.0		)	3.6
Reclassification adjustment for (gains) losses included in net income (3)	(0.5		)	0.2			(0.3		)	10.2			(3.7		)	6.5
Adjustments for assumed changes in amortization patterns	(3.5		)	1.2			(2.3		)	26.4			(9.3		)	17.1
Net unrealized gains (losses) on derivative instruments	(27.9		)	9.7			(18.2		)	42.2			(15.0		)	27.2
Foreign currency translation adjustment	46.0			(0.6		)	45.4			5.5			16.0			21.5
Amortization of prior service cost and actuarial loss included in net periodic benefit cost (4)	13.4			(4.7		)	8.7			40.3			(14.1		)	26.2
Net unrecognized postretirement benefit obligation	13.4			(4.7		)	8.7			40.3			(14.1		)	26.2
Other comprehensive income	$	475.1		$	(147.2	)	$	327.9		$	899.0		$	(280.9	)	$	618.1

(1) Pre-tax reclassification adjustments relating to available-for-sale securities are reported in net realized capital gains (losses) on the consolidated statements of operations.

(2) Represents the net impact of (1) unrealized gains resulting from reclassification of previously recognized noncredit impairment losses from OCI to net realized capital gains (losses) for fixed maturities with bifurcated OTTI that had additional credit losses or fixed maturities that previously had bifurcated OTTI that have now been sold or are intended to be sold and (2) unrealized losses resulting from reclassification of noncredit impairment losses for fixed maturities with bifurcated OTTI from net realized capital gains (losses) to OCI.

(3) See Note 5, Derivative Financial Instruments — Cash Flow Hedges, for further details.

(4) Pre-tax amortization of prior service cost and actuarial loss included in net periodic benefit cost, which is comprised of amortization of prior service cost (benefit) and recognized net actuarial (gain) loss, is reported in operating expenses on the consolidated statements of operations. See Note 7, Employee and Agent Benefits — Components of Net Periodic Benefit Cost, for further details.

Accumulated Other Comprehensive Income (Loss) (Table)

				Noncredit
	Net unrealized			component of			Net unrealized			Foreign			Unrecognized			Accumulated
	gains on			impairment losses			gains (losses) on			currency			postretirement			other
	available-for-sale			on fixed maturities			derivative			translation			benefit			comprehensive
	securities			available-for-sale			instruments			adjustment			obligation			income (loss)
	(in millions)
Balances at January 1, 2012	$	860.7		$	(167.2	)	$	34.9		$	(95.9	)	$	(361.1	)	$	271.4
Other comprehensive income during the period, net of adjustments	495.8			(14.8		)	20.7			20.5			—			522.2
Amounts reclassified from AOCI	62.2			—			6.5			—			26.2			94.9
Other comprehensive income	558.0			(14.8		)	27.2			20.5			26.2			617.1
Balances at September 30, 2012	$	1,418.7		$	(182.0	)	$	62.1		$	(75.4	)	$	(334.9	)	$	888.5
Balances at January 1, 2013	$	1,418.3		$	(173.9	)	$	(8.7	)	$	(106.9	)	$	(488.5	)	$	640.3
Other comprehensive loss during the period, net of adjustments	(567.8		)	(13.1		)	(4.2		)	(159.2		)	—			(744.3		)
Amounts reclassified from AOCI	44.1			—			0.8			—			41.4			86.3
Other comprehensive loss	(523.7		)	(13.1		)	(3.4		)	(159.2		)	41.4			(658.0		)
Balances at September 30, 2013	$	894.6		$	(187.0	)	$	(12.1	)	$	(266.1	)	$	(447.1	)	$	(17.7	)

Redeemable Noncontrolling Interest (Table)

Following is a reconciliation of the changes in the redeemable noncontrolling interest (in millions):

Balance at January 1, 2012	$	22.2
Net income attributable to redeemable noncontrolling interest	1.6
Redeemable noncontrolling interest assumed related to acquisition	37.6
Distributions to redeemable noncontrolling interest	(1.3		)
Foreign currency translation adjustment	0.9
Balance at September 30, 2012	$	61.0
Balance at January 1, 2013	$	60.4
Net income attributable to redeemable noncontrolling interest	9.0
Reclassification from stockholders’ equity (1)	173.9
Contributions from redeemable noncontrolling interest	1.2
Distributions to redeemable noncontrolling interest	(9.9		)
Purchase of subsidiary shares from redeemable noncontrolling interest	(2.4		)
Change in redemption value of redeemable noncontrolling interest	5.6
Foreign currency translation adjustment	(3.3		)
Balance at September 30, 2013	$	234.5

(1) During the third quarter of 2013, we identified a classification error of certain of our noncontrolling interests. The classification error had no impact on net income, but did impact earnings per share to the extent the redemption value of the redeemable noncontrolling interest exceeds the fair value. We evaluated the classification error and related earnings per share impact based on qualitative and quantitative factors in accordance with SEC Staff Accounting Bulletins 99 and 108 and concluded the impact was not material in the current or any prior quarterly or annual periods presented. During the third quarter of 2013, we recorded a $173.9 million increase to redeemable noncontrolling interest and a corresponding decrease to stockholders’ equity. See related discussion in Note 13, Earnings Per Share.