Quarterly Financial Data (Unaudited)

12 Months Ended

Dec. 31, 2023

The following table presents the effect of adoption of ASU 2018-12 on selected 2022 financial data.


	2022
(In millions, except per share data)	Q1		Q2		Q3		Q4		Full Year
Components of Income (Loss)

Core income (loss)
Prior to adoption	$	316	$	245	$	213	$	274	$	1,048
Effect of adoption	(18)		(15)		(170)		(9)		(212)
As reported	$	298	$	230	$	43	$	265	$	836
Net income (loss)
Prior to adoption	$	313	$	205	$	128	$	248	$	894
Effect of adoption	(18)		(15)		(170)		(9)		(212)
As reported	$	295	$	190	$	(42)	$	239	$	682

Other comprehensive income (loss), net of tax
Prior to adoption	$	(1,623)	$	(1,410)	$	(1,426)	$	582	$	(3,877)
Effect of adoption	603		627		586		(177)		1,639
As reported	$	(1,020)	$	(783)	$	(840)	$	405	$	(2,238)

Diluted Earnings (Loss) Per Common Share

Core income (loss)
Prior to adoption	$	1.16	$	0.90	$	0.78	$	1.01
Effect of adoption	(0.07)		(0.06)		(0.62)		(0.04)
As reported	$	1.09	$	0.84	$	0.16	$	0.97
Net income (loss)
Prior to adoption	$	1.15	$	0.75	$	0.47	$	0.91
Effect of adoption	(0.07)		(0.06)		(0.62)		(0.04)
As reported	$	1.08	$	0.69	$	(0.15)	$	0.87

As of January 1, 2023, the Company adopted ASU 2018-12 using the modified retrospective method applied as of the transition date of January 1, 2021. Prior period amounts in the financial statements have been adjusted to reflect application of the new guidance. See Note A to the Consolidated Financial Statements for additional information.

Core income (loss) and Net income (loss) for 2022 decreased from what was previously reported under legacy accounting guidance generally driven by the cumulative effect of assumption differences and differences in reserving methodologies between legacy and new accounting guidance.

Core income (loss) and Net income (loss) for the third quarter of 2022 decreased $170 million from what was previously reported under legacy accounting guidance, primarily related to the third quarter 2022 annual review of cash flow reserving assumptions. Under legacy accounting guidance, the third quarter 2022 gross premium valuation assessment indicated a pretax margin of $125 million and no unlocking event occurred. Under the new guidance favorable changes to the upper-medium grade fixed income instrument discount rate were recorded through Accumulated other comprehensive income quarterly, while the net unfavorable impact of increased cost of care inflation offset by favorable premium rate action assumptions was recorded in income.

Other comprehensive income (loss), net of tax, for 2022 decreased from what was previously reported under legacy accounting guidance driven by increases in the upper-medium grade fixed-income instrument yield, which was used as the discount rate to re-measure the LFPB.