Deferred Acquisition Costs and Deferred Sales Inducement Costs

3 Months Ended

Mar. 31, 2017

Deferred Acquisition Costs and Deferred Sales Inducement Costs

Deferred acquisition costs and deferred sales inducement costs [Text Block]

Deferred Acquisition Costs and Deferred Sales Inducement Costs

The balances of and changes in DAC were as follows:



	2017			2016
	(in millions)
Balance at January 1	$	2,648		$	2,730		⁽¹⁾
Capitalization of acquisition costs	67			82
Amortization	(72		)	(110		)
Impact of change in net unrealized securities gains	—			(47		)
Balance at March 31	$	2,643		$	2,655		⁽¹⁾

⁽¹⁾DAC balances were restated for the correction of commission expense accrual for certain insurance and annuity products in the fourth quarter of 2016. See Note 1 in the 2016 10-K.

The balances of and changes in DSIC, which is included in other assets, were as follows:



	2017			2016
	(in millions)
Balance at January 1	$	302		$	335
Capitalization of sales inducement costs	2			1
Amortization	(9		)	(12		)
Impact of change in net unrealized securities gains	—			(8		)
Balance at March 31	$	295		$	316