Stockholders' Equity (Tables)

9 Months Ended

Sep. 30, 2017

Stockholders' Equity

Reconciliation of Outstanding Shares (Table)

	For the nine months ended September 30,
	2017	2016
	(in millions)
Beginning balance	287.7	291.4
Shares issued	4.3	2.5
Treasury stock acquired	(3.5)	(6.2)
Ending balance	288.5	287.7

Other Comprehensive Income (Loss) (Table)

	For the three months ended						For the nine months ended
	September 30, 2017						September 30, 2017
	Pre-Tax		Tax		After-Tax		Pre-Tax		Tax		After-Tax
	(in millions)
Net unrealized gains on available-for-sale securities during the period	$	137.3	$	(52.6)	$	84.7	$	1,044.2	$	(365.9)	$	678.3
Reclassification adjustment for losses included in net income (1)	0.3		0.2		0.5		49.9		(17.0)		32.9
Adjustments for assumed changes in amortization patterns	(0.2)		(0.1)		(0.3)		(48.4)		16.9		(31.5)
Adjustments for assumed changes in policyholder liabilities	(23.7)		8.9		(14.8)		(167.2)		56.6		(110.6)
Net unrealized gains on available-for-sale securities	113.7		(43.6)		70.1		878.5		(309.4)		569.1
Noncredit component of impairment losses on fixed maturities, available-for-sale during the period	19.2		(5.1)		14.1		32.5		(9.8)		22.7
Adjustments for assumed changes in amortization patterns	(1.0)		0.4		(0.6)		(2.1)		0.8		(1.3)
Adjustments for assumed changes in policyholder liabilities	(0.2)		—		(0.2)		(0.6)		0.2		(0.4)
Noncredit component of impairment losses on fixed maturities, available-for-sale (2)	18.0		(4.7)		13.3		29.8		(8.8)		21.0
Net unrealized losses on derivative instruments during the period	(17.0)		5.9		(11.1)		(32.5)		11.1		(21.4)
Reclassification adjustment for gains included in net income (3)	(2.5)		0.8		(1.7)		(21.0)		7.2		(13.8)
Adjustments for assumed changes in amortization patterns	0.6		(0.2)		0.4		2.6		(0.9)		1.7
Adjustments for assumed changes in policyholder liabilities	1.9		(0.6)		1.3		6.3		(2.1)		4.2
Net unrealized losses on derivative instruments	(17.0)		5.9		(11.1)		(44.6)		15.3		(29.3)
Foreign currency translation adjustment	95.7		(7.1)		88.6		155.3		(4.0)		151.3
Amortization of amounts included in net periodic benefit cost (4)	7.7		(3.5)		4.2		23.3		(10.5)		12.8
Net unrecognized postretirement benefit obligation	7.7		(3.5)		4.2		23.3		(10.5)		12.8
Other comprehensive income	$	218.1	$	(53.0)	$	165.1	$	1,042.3	$	(317.4)	$	724.9

	For the three months ended						For the nine months ended
	September 30, 2016						September 30, 2016
	Pre-Tax		Tax		After-Tax		Pre-Tax		Tax		After-Tax
	(in millions)
Net unrealized gains on available-for-sale securities during the period	$	312.3	$	(96.2)	$	216.1	$	2,178.4	$	(739.7)	$	1,438.7
Reclassification adjustment for (gains) losses included in net income (1)	0.6		(2.2)		(1.6)		20.6		(9.2)		11.4
Adjustments for assumed changes in amortization patterns	(7.6)		2.6		(5.0)		(119.7)		41.9		(77.8)
Adjustments for assumed changes in policyholder liabilities	(126.5)		37.3		(89.2)		(813.7)		269.3		(544.4)
Net unrealized gains on available-for-sale securities	178.8		(58.5)		120.3		1,265.6		(437.7)		827.9
Noncredit component of impairment losses on fixed maturities, available-for-sale during the period	(10.7)		3.4		(7.3)		(11.6)		3.7		(7.9)
Adjustments for assumed changes in amortization patterns	2.1		(0.7)		1.4		0.5		(0.1)		0.4
Adjustments for assumed changes in policyholder liabilities	0.9		(0.3)		0.6		0.9		(0.3)		0.6
Noncredit component of impairment losses on fixed maturities, available-for-sale (2)	(7.7)		2.4		(5.3)		(10.2)		3.3		(6.9)
Net unrealized gains (losses) on derivative instruments during the period	(1.2)		0.3		(0.9)		20.7		(7.3)		13.4
Reclassification adjustment for gains included in net income (3)	(2.6)		0.9		(1.7)		(8.7)		2.7		(6.0)
Adjustments for assumed changes in amortization patterns	0.4		(0.2)		0.2		1.4		(0.5)		0.9
Adjustments for assumed changes in policyholder liabilities	9.5		(3.4)		6.1		12.2		(4.3)		7.9
Net unrealized gains on derivative instruments	6.1		(2.4)		3.7		25.6		(9.4)		16.2
Foreign currency translation adjustment	(21.4)		5.4		(16.0)		142.6		(14.8)		127.8
Amortization of amounts included in net periodic benefit cost (4)	13.6		(5.6)		8.0		41.0		(17.0)		24.0
Net unrecognized postretirement benefit obligation	13.6		(5.6)		8.0		41.0		(17.0)		24.0
Other comprehensive income	$	169.4	$	(58.7)	$	110.7	$	1,464.6	$	(475.6)	$	989.0

(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 4, Derivative Financial Instruments – Cash Flow Hedges, for further details.

(4) Amount is comprised of amortization of prior service cost (benefit) and recognized net actuarial (gain) loss, which 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		currency		postretirement		other
	available-for-sale		on fixed maturities		on derivative		translation		benefit		comprehensive
	securities		available-for-sale		instruments		adjustment		obligation		income (loss)
	(in millions)
Balances as of January 1, 2016	$	732.1	$	(86.0)	$	69.8	$	(1,148.2)	$	(450.2)	$	(882.5)
Other comprehensive income during the period, net of adjustments	816.5		(6.9)		22.2		122.4		—		954.2
Amounts reclassified from AOCI	11.4		—		(6.0)		—		24.0		29.4
Other comprehensive income	827.9		(6.9)		16.2		122.4		24.0		983.6
Purchase of subsidiary shares from noncontrolling interest	—		—		—		(9.3)		—		(9.3)
Balances as of September 30, 2016	$	1,560.0	$	(92.9)	$	86.0	$	(1,035.1)	$	(426.2)	$	91.8
Balances as of January 1, 2017	$	831.2	$	(89.5)	$	85.3	$	(1,093.8)	$	(408.4)	$	(675.2)
Other comprehensive income during the period, net of adjustments	536.2		—		(15.5)		148.6		—		669.3
Amounts reclassified from AOCI	32.9		21.0		(13.8)		—		12.8		52.9
Other comprehensive income	569.1		21.0		(29.3)		148.6		12.8		722.2
Balances as of September 30, 2017	$	1,400.3	$	(68.5)	$	56.0	$	(945.2)	$	(395.6)	$	47.0

Redeemable Noncontrolling Interest (Table)

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

Balance as of January 1, 2016	$	85.7
Net income attributable to redeemable noncontrolling interest	20.8
Redeemable noncontrolling interest of newly consolidated entities (1)	179.5
Redeemable noncontrolling interest of deconsolidated entities (2)	(181.2)
Contributions from redeemable noncontrolling interest	132.5
Distributions to redeemable noncontrolling interest	(46.9)
Purchase of subsidiary shares from redeemable noncontrolling interest	(8.2)
Change in redemption value of redeemable noncontrolling interest	4.1
Other comprehensive income attributable to redeemable noncontrolling interest	3.6
Balance as of September 30, 2016	$	189.9
Balance as of January 1, 2017	$	97.5
Net income attributable to redeemable noncontrolling interest	6.9
Redeemable noncontrolling interest of deconsolidated entities (2)	(1.4)
Contributions from redeemable noncontrolling interest	54.5
Distributions to redeemable noncontrolling interest	(28.2)
Purchase of subsidiary shares from redeemable noncontrolling interest	(4.4)
Change in redemption value of redeemable noncontrolling interest	2.8
Other comprehensive income attributable to redeemable noncontrolling interest	1.4
Balance as of September 30, 2017	$	129.1

(1) Effective January 1, 2016, certain sponsored investment funds were consolidated as a result of the implementation of new accounting guidance.

(2) We deconsolidated certain sponsored investment funds as they no longer met the requirements for consolidation.