XML 25 R14.htm IDEA: XBRL DOCUMENT v3.8.0.1
Equity
 9 Months Ended
Sep. 30, 2017
Equity [Abstract]  
Equity
EQUITY

Accumulated Other Comprehensive Income (Loss)

The balance of and changes in each component of “Accumulated other comprehensive income (loss)” for the nine months ended September 30, 2017 and 2016 are as follows:
 
Accumulated Other Comprehensive Income (Loss)
 
Foreign Currency Translation Adjustments
 
Net Unrealized
Investment Gains
(Losses)(1)
 
Total Accumulated Other Comprehensive Income (Loss)
 
(in thousands)
Balance, December 31, 2016
$
(78
)
 
$
(314,870
)
 
$
(314,948
)
Change in OCI before reclassifications
95

 
222,991

 
223,086

Amounts reclassified from AOCI
0

 
4,407

 
4,407

Income tax benefit (expense)
(33
)
 
(79,589
)
 
(79,622
)
Balance, September 30, 2017
$
(16
)
 
$
(167,061
)
 
$
(167,077
)
 
 
 
Accumulated Other Comprehensive Income (Loss)
 
Foreign Currency Translation Adjustments
 
Net Unrealized
Investment Gains
(Losses)(1)
 
Total Accumulated Other Comprehensive Income (Loss)
 
(in thousands)
Balance, December 31, 2015
$
(65
)
 
$
46,231

 
$
46,166

Change in OCI before reclassifications
20

 
371,299

 
371,319

Amounts reclassified from AOCI
0

 
(94,834
)
 
(94,834
)
Income tax benefit (expense)
(7
)
 
(96,762
)
 
(96,769
)
Balance, September 30, 2016
$
(52
)
 
$
225,934

 
$
225,882


(1)
Includes cash flow hedges of $(15) million and $12 million as of September 30, 2017 and December 31, 2016, respectively, and $8 million and $15 million as of September 30, 2016 and December 31, 2015, respectively.

Reclassifications out of Accumulated Other Comprehensive Income (Loss)
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2017
 
2016
 
2017
 
2016
 
(in thousands)
Amounts reclassified from AOCI(1)(2):
 
 
 
 
 
 
 
Net unrealized investment gains (losses):
 
 
 
 
 
 
 
Cash flow hedges—Currency/ Interest rate(3)
$
(1,484
)
 
$
1,342

 
$
(1,861
)
 
$
6,989

Net unrealized investment gains (losses) on available-for-sale securities
(1,180
)
 
8,555

 
(2,546
)
 
87,845

Total net unrealized investment gains (losses)(4)
(2,664
)
 
9,897

 
(4,407
)
 
94,834

Total reclassifications for the period
$
(2,664
)
 
$
9,897

 
$
(4,407
)
 
$
94,834


(1)
All amounts are shown before tax.
(2)
Positive amounts indicate gains/benefits reclassified out of AOCI. Negative amounts indicate losses/costs reclassified out of AOCI.
(3)
See Note 5 for additional information on cash flow hedges.
(4)
See table below for additional information on unrealized investment gains (losses), including the impact on deferred policy acquisition costs, other costs and future policy benefits.
Net Unrealized Investment Gains (Losses)

Net unrealized investment gains (losses) on securities classified as available-for-sale and certain other long-term investments and other assets are included in the Company’s Unaudited Interim Statements of Financial Position as a component of AOCI. Changes in these amounts include reclassification adjustments to exclude from "Other comprehensive income (loss)" those items that are included as part of “Net income” for a period that had been part of "Other comprehensive income (loss)" in earlier periods. The amounts for the periods indicated below, split between amounts related to fixed maturity securities on which an OTTI loss has been recognized, and all other net unrealized investment gains (losses), are as follows:

Net Unrealized Investment Gains (Losses) on Fixed Maturity Securities on which an OTTI loss has been recognized
 
Net Unrealized
Gains (Losses)
on Investments
 
Deferred Policy Acquisition Costs and Other Costs
 
Future Policy Benefits and Other Liabilities
 
Deferred
Income Tax
(Liability)
Benefit
 
Accumulated Other Comprehensive
Income (Loss) Related to Net Unrealized Investment Gains (Losses)
 
(in thousands)
Balance, December 31, 2016
$
(1,261
)
 
$
(2,133
)
 
$
(522
)
 
$
1,387

 
$
(2,529
)
Net investment gains (losses) on investments arising during the period
8,351

 
0

 
0

 
(2,923
)
 
5,428

Reclassification adjustment for (gains) losses included in net income
1,834

 
0

 
0

 
(642
)
 
1,192

Reclassification adjustment for OTTI (gains) losses excluded from net income(1)
61

 
0

 
0

 
(21
)
 
40

Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs
0

 
1,804

 
0

 
(630
)
 
1,174

Impact of net unrealized investment (gains) losses on future policy benefits and other liabilities
0

 
0

 
524

 
(183
)
 
341

Balance, September 30, 2017
$
8,985

 
$
(329
)
 
$
2

 
$
(3,012
)
 
$
5,646


(1)
Represents "transfers in" related to the portion of OTTI losses recognized during the period that were not recognized in earnings for securities with no prior OTTI loss.


All Other Net Unrealized Investment Gains (Losses) in AOCI
 
Net Unrealized
Gains (Losses)
on Investments(2)
 
Deferred Policy Acquisition Costs and Other Costs
 
Future Policy Benefits and Other Liabilities
 
Deferred
Income Tax
(Liability)
Benefit
 
Accumulated Other Comprehensive
Income (Loss) Related to Net Unrealized Investment Gains (Losses)
 
(in thousands)
Balance, December 31, 2016
$
(442,314
)
 
$
(31,251
)
 
$
(5,664
)
 
$
166,888

 
$
(312,341
)
Net investment gains (losses) on investments arising during the period
275,382

 
0

 
0

 
(96,384
)
 
178,998

Reclassification adjustment for (gains) losses included in net income
(6,241
)
 
0

 
0

 
2,184

 
(4,057
)
Reclassification adjustment for OTTI (gains) losses excluded from net income(1)
(61
)
 
0

 
0

 
21

 
(40
)
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs
0

 
(44,571
)
 
0

 
15,600

 
(28,971
)
Impact of net unrealized investment (gains) losses on future policy benefits and other liabilities
0

 
0

 
(9,685
)
 
3,389

 
(6,296
)
Balance, September 30, 2017
$
(173,234
)
 
$
(75,822
)
 
$
(15,349
)
 
$
91,698

 
$
(172,707
)

(1)
Includes cash flow hedges. See Note 5 for information on cash flow hedges.
(2)
Represents "transfers out" related to the portion of OTTI losses recognized during the period that were not recognized in earnings for securities with no prior OTTI loss.