XML 40 R25.htm IDEA: XBRL DOCUMENT v3.10.0.1
Equity (Tables)
9 Months Ended
Sep. 30, 2018
Equity [Abstract]  
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]
The following table presents the weighted average assumptions used to determine the grant-date fair value of stock options that Brighthouse Financial, Inc. has granted:
 
September 30, 2018
Risk-free rate of return
2.93%
Expected volatility
25.00%
Expected option life, years
5.80
Weighted average exercise price of stock options granted
$53.47
Weighted average fair value of stock options granted
$12.54
Schedule of Other Share-based Compensation, Activity [Table Text Block]
The following table presents a summary of PSU and RSU activity:
 
Restricted
 
Performance
 
Units
 
Weighted Average Grant-Date Fair Value
 
Units
 
Weighted Average Grant-Date Fair Value
Outstanding at January 1, 2018

 
$

 

 
$

Granted
995,861

 
$
48.06

 
73,849

 
$
48.10

Forfeited
15,007

 
$
48.10

 

 
$

Paid

 
$

 

 
$

Outstanding at September 30, 2018
980,854

 
$
48.05

 
73,849

 
$
48.10

Vested at September 30, 2018
648,561

 
$
48.10

 

 
$

Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan [Table Text Block]
The following table presents total share-based compensation expense:
 
Three Months Ended
 September 30, 2018
 
Nine Months Ended
 September 30, 2018
 
(In millions)
Restricted stock units, Founders’ Grant
$
21

 
$
31

Restricted stock units
$
3

 
$
4

Stock options
$

 
$
1

Performance share units
$

 
$

Components of Accumulated Other Comprehensive Income (Loss)
Information regarding changes in the balances of each component of AOCI was as follows:
 
Three Months Ended
 September 30, 2018
 
Unrealized
Investment Gains
(Losses), Net of
Related Offsets (1)
 
Unrealized
Gains (Losses)
on Derivatives
 
Foreign
Currency
Translation
Adjustments
 
Defined Benefit Plans Adjustment
 
Total
 
(In millions)
Balance, June 30, 2018
$
690

 
$
168

 
$
(19
)
 
$
(24
)
 
$
815

OCI before reclassifications
(310
)
 
(7
)
 
(7
)
 

 
(324
)
Deferred income tax benefit (expense)
66

 
1

 
1

 

 
68

AOCI before reclassifications, net of income tax
446

 
162

 
(25
)
 
(24
)
 
559

Amounts reclassified from AOCI
38

 
(47
)
 

 

 
(9
)
Deferred income tax benefit (expense)
(8
)
 
10

 

 

 
2

Amounts reclassified from AOCI, net of income tax
30

 
(37
)
 

 

 
(7
)
Balance, September 30, 2018
$
476

 
$
125

 
$
(25
)
 
$
(24
)
 
$
552

 
Three Months Ended
 September 30, 2017
 
Unrealized
Investment Gains
(Losses), Net of
Related Offsets (1)
 
Unrealized
Gains (Losses)
on Derivatives
 
Foreign
Currency
Translation
Adjustments
 
Defined Benefit Plans Adjustment
 
Total
 
(In millions)
Balance, June 30, 2017
$
1,721

 
$
223

 
$
(33
)
 
$
(17
)
 
$
1,894

OCI before reclassifications
(844
)
 
(52
)
 
9

 

 
(887
)
Deferred income tax benefit (expense)
302

 
18

 
(2
)
 
(1
)
 
317

AOCI before reclassifications, net of income tax
1,179

 
189

 
(26
)
 
(18
)
 
1,324

Amounts reclassified from AOCI
(26
)
 
(1
)
 

 

 
(27
)
Deferred income tax benefit (expense)
9

 
2

 

 

 
11

Amounts reclassified from AOCI, net of income tax
(17
)
 
1

 

 

 
(16
)
Balance, September 30, 2017
$
1,162

 
$
190

 
$
(26
)
 
$
(18
)
 
$
1,308

 
Nine Months Ended
 September 30, 2018
 
Unrealized
Investment Gains
(Losses), Net of
Related Offsets (1)
 
Unrealized
Gains (Losses)
on Derivatives
 
Foreign
Currency
Translation
Adjustments
 
Defined Benefit Plans Adjustment
 
Total
 
(In millions)
Balance, December 31, 2017
$
1,572

 
$
154

 
$
(24
)
 
$
(26
)
 
$
1,676

Cumulative effect of change in accounting principle and other, net of income tax (see Note 1)
(79
)
 

 

 

 
(79
)
Balance, January 1, 2018
1,493

 
154

 
(24
)
 
(26
)
 
1,597

OCI before reclassifications
(1,448
)
 
28

 
(1
)
 
3

 
(1,418
)
Deferred income tax benefit (expense)
325

 
(6
)
 

 
(1
)
 
318

AOCI before reclassifications, net of income tax
370

 
176

 
(25
)
 
(24
)
 
497

Amounts reclassified from AOCI
138

 
(65
)
 

 

 
73

Deferred income tax benefit (expense)
(32
)
 
14

 

 

 
(18
)
Amounts reclassified from AOCI, net of income tax
106

 
(51
)
 

 

 
55

Balance, September 30, 2018
$
476

 
$
125

 
$
(25
)
 
$
(24
)
 
$
552

 
Nine Months Ended
 September 30, 2017
 
Unrealized
Investment Gains
(Losses), Net of
Related Offsets (1)
 
Unrealized
Gains (Losses)
on Derivatives
 
Foreign
Currency
Translation
Adjustments
 
Defined Benefit Plans Adjustment
 
Total
 
(In millions)
Balance, December 31, 2016
$
1,044

 
$
268

 
$
(31
)
 
$
(16
)
 
$
1,265

OCI before reclassifications
118

 
(104
)
 
5

 
(14
)
 
5

Deferred income tax benefit (expense)
(41
)
 
36

 

 
12

 
7

AOCI before reclassifications, net of income tax
1,121

 
200

 
(26
)
 
(18
)
 
1,277

Amounts reclassified from AOCI
64

 
(17
)
 

 

 
47

Deferred income tax benefit (expense)
(23
)
 
7

 

 

 
(16
)
Amounts reclassified from AOCI, net of income tax
41

 
(10
)
 

 

 
31

Balance, September 30, 2017
$
1,162

 
$
190

 
$
(26
)
 
$
(18
)
 
$
1,308

__________________
(1)
See Note 4 for information on offsets to investments related to future policy benefits, DAC, VOBA and DSI.
Reclassification out of Accumulated Other Comprehensive Income (Loss)
Information regarding amounts reclassified out of each component of AOCI was as follows:
AOCI Components
 
Amounts Reclassified from AOCI
 
Consolidated Statements of Operations and Comprehensive Income (Loss) Locations
 
 
Three Months Ended
 September 30,
 
Nine Months Ended
 September 30,
 
 
 
 
2018
 
2017
 
2018
 
2017
 
 
 
 
(In millions)
 
 
Net unrealized investment gains (losses):
 
 
 
 
 
 
 
 
 
 
Net unrealized investment gains (losses)
 
$
(36
)
 
$
24

 
$
(137
)
 
$
(22
)
 
Net investment gains (losses)
Net unrealized investment gains (losses)
 

 

 
1

 
2

 
Net investment income
Net unrealized investment gains (losses)
 
(2
)
 
2

 
(2
)
 
(44
)
 
Net derivative gains (losses)
Net unrealized investment gains (losses), before income tax
 
(38
)
 
26

 
(138
)
 
(64
)
 
 
Income tax (expense) benefit
 
8

 
(9
)
 
32

 
23

 
 
 Net unrealized investment gains (losses), net of income tax
 
(30
)
 
17

 
(106
)
 
(41
)
 
 
Unrealized gains (losses) on derivatives - cash flow hedges:
 
 
 
 
 
 
 
 
 
 
Interest rate swaps
 
15

 

 
31

 

 
Net derivative gains (losses)
Interest rate swaps
 

 

 
2

 
2

 
Net investment income
Interest rate forwards
 
31

 

 
31

 
2

 
Net derivative gains (losses)
Interest rate forwards
 
1

 
1

 
2

 
2

 
Net investment income
Foreign currency swaps
 

 

 
(1
)
 
11

 
Net derivative gains (losses)
Gains (losses) on cash flow hedges, before income tax
 
47

 
1

 
65

 
17

 
 
Income tax (expense) benefit
 
(10
)
 
(2
)
 
(14
)
 
(7
)
 
 
Gains (losses) on cash flow hedges, net of income tax
 
37

 
(1
)
 
51

 
10

 
 
Total reclassifications, net of income tax
 
$
7

 
$
16

 
$
(55
)
 
$
(31
)