Held for Sale Classification Held for Sale Classification

6 Months Ended

Jun. 30, 2019

Discontinued Operations and Disposal Groups [Abstract]

Held for Sale Classification Disclosure [Text Block]

Held for Sale Classification

On April 2, 2019, the Company announced it signed a definitive agreement with a subsidiary of American Family Insurance Mutual Holding Company (American Family Insurance) for the sale of Ameriprise Auto & Home, a business unit of Ameriprise Financial. The Ameriprise Auto & Home legal entities are being sold in the transaction. The Company will receive gross proceeds of $1.05 billion in cash. After a payment to an affinity partner, the net proceeds will be approximately $950 million, subject to certain post-closing financial adjustments. The transaction is subject to customary conditions and regulatory approvals and is expected to close in the fourth quarter of 2019.

A business is required to be classified as held for sale in the period in which the following criteria are met: (i) management has approved the sale and commits to a plan to sell the business, (ii) the business is available for immediate sale, (iii) an active program to locate a buyer has been initiated, (iv) the sale of the business is probable and the transfer of the business is expected to occur within one year, (v) the business is being actively marketed and (vi) it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. The Company has met the requirements to classify assets and liabilities related to AAH as held for sale on its Consolidated Balance Sheet as of June 30, 2019. A business classified as held for sale is recorded at the lower of its carrying amount or estimated fair value less cost to sell. If the carrying amount of the business exceeds its estimated fair value, a loss is recognized. The Company did not recognize a loss as the carrying amount of the business did not exceed its estimated fair value as of June 30, 2019. The Company recognized an impairment of $5 million in the first quarter of 2019 on investments held by AAH as the Company no longer intends to hold the securities until the recovery of fair value to book value.

The following table summarizes the components of assets and liabilities held for sale on the Company’s Consolidated Balance Sheet as of June 30, 2019:

	(in millions)
Assets
Cash and cash equivalents	$	166
Investments	1,599
Receivables	216
Deferred acquisition costs	16
Other assets	30
Total assets held for sale	$	2,027
Liabilities
Policyholder account balances, future policy benefits and claims	$	686
Accounts payable and accrued expenses	81
Other liabilities	374
Total liabilities held for sale	$	1,141