COMMITMENT AND CONTINGENT LIABILITIES

6 Months Ended

Jun. 30, 2017

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENT LIABILITIES

Restructuring

In an effort to further reduce its global real estate footprint, AB completed a comprehensive review of its worldwide office locations and began implementing a global space consolidation plan in 2012. This resulted in the sublease of office space primarily in New York as well as offices in England, Australia and various U.S. locations.

In the first six months of 2017 and 2016, AB recorded new real estate charges of $21 million and $25 million respectively, relating to the further consolidation of office space at its New York offices. Real estate charges are recorded in Other operating costs and expenses in the Company’s Consolidated Statements of Earnings (Loss).

Obligation under funding agreements

As a member of the FHLBNY, AXA Equitable has access to collateralized borrowings. It also may issue funding agreements to the FHLBNY. Both the collateralized borrowings and funding agreements would require AXA Equitable to pledge qualified mortgage-backed assets and/or government securities as collateral. AXA Equitable issues short-term funding agreements to the FHLBNY and uses the funds for asset liability and cash management purposes. AXA Equitable issues long-term funding agreements to the FHLBNY and uses the funds for spread lending purposes. Funding agreements are reported in Policyholders’ account balances in the consolidated balance sheets. For other instruments used for asset liability management purposes see “Derivative and offsetting assets and liabilities” included in Note 3. Funding agreements are reported in Policyholders’ account balances in the consolidated balance sheets.



	Outstanding balance at end of period		Maturity of Outstanding balance	Issued during the period		Repaid during the period
June 30, 2017:	(In Millions)
Short-term FHLBNY funding agreements	$	500	less than one month	$	3,000	$	3,000
Long-term FHLBNY funding agreements	548		less than 4 years	174		—
	828		Less than 5 years	208		—
	744		greater than five years	—		—
Total long-term funding agreements	2,120			382		—
Total FHLBNY funding agreements at June 30, 2017	$	2,620		$	3,382	$	3,000
December 31, 2016:
Short-term FHLBNY funding agreements	$	500	less than one month	$	6,000	$	6,000
Long-term FHLBNY funding agreements	58		less than 4 years	58		—
	862		Less than 5 years	862		—
	818		greater than five years	818		—
Total long-term funding agreements	1,738			1,738		—
Total FHLBNY funding agreements at December 31, 2016	$	2,238		$	7,738	$	6,000

Other Commitments

AXA Equitable had approximately $20 million of undrawn letters of credit issued in favor of third party beneficiaries primarily related to reinsurance as well as $801 million (including $226 million with affiliates) and $852 million of commitments under equity financing arrangements to certain limited partnership and existing mortgage loan agreements, respectively, at June 30, 2017.

AXA Financial has legally assumed primary liability from AXA Equitable for all current and future liabilities of AXA Equitable under certain employee benefit plans that provide participants with medical, life insurance, and deferred compensation benefits. AXA Equitable remains secondarily liable for its obligations under these plans and would recognize such liability in the event AXA Financial does not perform under the terms of the agreements.