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Held for Sale Classification Held for Sale Classification
9 Months Ended
Sep. 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 AAH, a business unit of Ameriprise Financial. On October 1, 2019, the Company completed its sale of AAH and received gross proceeds of $1.135 billion in cash. After a payment to an affinity partner, the net proceeds were approximately $1.035 billion, subject to certain post-closing financial adjustments expected to be finalized by first quarter 2020.
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actively marketed and (vi) it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn.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 September 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 September 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 September 30, 2019:
 
(in millions)
Assets
 
Cash and cash equivalents
$
204

Investments
1,545

Receivables
197

Deferred acquisition costs
15

Other assets
25

Total assets held for sale
$
1,986

 
 
Liabilities
 
Policyholder account balances, future policy benefits and claims
$
696

Accounts payable and accrued expenses
28

Other liabilities
381

Total liabilities held for sale
$
1,105