2016 Q1 Form 10-Q Financial Statement

#000000497716000309 Filed on May 04, 2016

View on sec.gov

Income Statement

Concept 2016 Q1 2015 Q1
Revenue $5.451B $5.226B
YoY Change 4.31% -7.34%
Cost Of Revenue $3.025B $2.952B
YoY Change 2.47% -8.32%
Gross Profit $2.426B $2.274B
YoY Change 6.68% -6.03%
Gross Profit Margin 44.51% 43.51%
Selling, General & Admin $563.0M $530.0M
YoY Change 6.23% -0.75%
% of Gross Profit 23.21% 23.31%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $292.0M $277.0M
YoY Change 5.42% -5.78%
% of Gross Profit 12.04% 12.18%
Operating Expenses $563.0M $530.0M
YoY Change 6.23% -0.75%
Operating Profit $1.077B $1.035B
YoY Change 4.06% -11.46%
Interest Expense $65.00M $83.00M
YoY Change -21.69% 3.75%
% of Operating Profit 6.04% 8.02%
Other Income/Expense, Net $0.00 -$18.00M
YoY Change -100.0% 100.0%
Pretax Income $1.117B $1.013B
YoY Change 10.27% -8.24%
Income Tax $386.0M $350.0M
% Of Pretax Income 34.56% 34.55%
Net Earnings $731.0M $663.0M
YoY Change 10.26% -9.43%
Net Earnings / Revenue 13.41% 12.69%
Basic Earnings Per Share $1.75 $1.52
Diluted Earnings Per Share $1.74 $1.51
COMMON SHARES
Basic Shares Outstanding 418.7M shares 437.3M shares
Diluted Shares Outstanding 420.9M shares 439.9M shares

Balance Sheet

Concept 2016 Q1 2015 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments
YoY Change
Cash & Equivalents $3.449B $4.363B
Short-Term Investments
Other Short-Term Assets
YoY Change
Inventory
Prepaid Expenses
Receivables
Other Receivables
Total Short-Term Assets
YoY Change
LONG-TERM ASSETS
Property, Plant & Equipment $443.0M $428.0M
YoY Change 3.5% -11.02%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments $110.9B $104.3B
YoY Change 6.25% -3.83%
Other Assets
YoY Change
Total Long-Term Assets
YoY Change
TOTAL ASSETS
Total Short-Term Assets
Total Long-Term Assets
Total Assets $127.8B $121.4B
YoY Change 5.24% -1.53%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable
YoY Change
Accrued Expenses
YoY Change
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $5.936B $7.937B
YoY Change -25.21% 4.83%
LONG-TERM LIABILITIES
Long-Term Debt $4.984B $6.282B
YoY Change -20.66% 27.86%
Other Long-Term Liabilities $2.697B $2.981B
YoY Change -9.53% 32.96%
Total Long-Term Liabilities $7.681B $9.263B
YoY Change -17.08% 29.46%
TOTAL LIABILITIES
Total Short-Term Liabilities $5.936B $7.937B
Total Long-Term Liabilities $7.681B $9.263B
Total Liabilities $107.7B $102.8B
YoY Change 4.85% -4.51%
SHAREHOLDERS EQUITY
Retained Earnings $24.57B $22.65B
YoY Change 8.46% 10.76%
Common Stock $1.933B $1.812B
YoY Change 6.68% 4.5%
Preferred Stock
YoY Change
Treasury Stock (at cost) $9.413B $8.155B
YoY Change 15.43% 19.72%
Treasury Stock Shares 255.2M shares 235.1M shares
Shareholders Equity $20.02B $18.64B
YoY Change
Total Liabilities & Shareholders Equity $127.8B $121.4B
YoY Change 5.24% -1.53%

Cashflow Statement

Concept 2016 Q1 2015 Q1
OPERATING ACTIVITIES
Net Income $731.0M $663.0M
YoY Change 10.26% -9.43%
Depreciation, Depletion And Amortization $292.0M $277.0M
YoY Change 5.42% -5.78%
Cash From Operating Activities $1.331B $1.460B
YoY Change -8.84% -9.6%
INVESTING ACTIVITIES
Capital Expenditures
YoY Change
Acquisitions
YoY Change
Other Investing Activities $159.0M -$60.00M
YoY Change -365.0% -385.71%
Cash From Investing Activities -$1.487B -$2.078B
YoY Change -28.44% -2.12%
FINANCING ACTIVITIES
Cash Dividend Paid $167.0M $165.0M
YoY Change 1.21% 1.23%
Common Stock Issuance & Retirement, Net $612.0M $610.0M
YoY Change 0.33% 44.89%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -$766.0M $322.0M
YoY Change -337.89% -1106.25%
NET CHANGE
Cash From Operating Activities $1.331B $1.460B
Cash From Investing Activities -$1.487B -$2.078B
Cash From Financing Activities -$766.0M $322.0M
Net Change In Cash -$922.0M -$296.0M
YoY Change 211.49% -45.19%
FREE CASH FLOW
Cash From Operating Activities $1.331B $1.460B
Capital Expenditures
Free Cash Flow
YoY Change

Facts In Submission

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CY2016Q1 us-gaap Common Stock Shares Issued
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CY2016Q1 us-gaap Common Stock Shares Outstanding
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CY2016Q1 us-gaap Common Stock Value
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CY2016Q1 us-gaap Comprehensive Income Net Of Tax
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CY2016Q1 us-gaap Debt And Capital Lease Obligations
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CY2016Q1 us-gaap Deferred Policy Acquisition Cost Amortization Expense
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CY2016Q1 us-gaap Deferred Policy Acquisition Costs
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CY2016Q1 us-gaap Derivative Asset Fair Value Gross Liability
DerivativeAssetFairValueGrossLiability
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CY2015Q4 us-gaap Derivative Asset Fair Value Of Collateral
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CY2015Q4 us-gaap Derivative Assets
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676000000 USD
CY2016Q1 us-gaap Derivative Assets
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CY2015Q4 us-gaap Derivative Collateral Obligation To Return Cash
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CY2016Q1 us-gaap Derivative Collateral Obligation To Return Cash
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277000000 USD
CY2015Q4 us-gaap Derivative Collateral Obligation To Return Securities
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CY2016Q1 us-gaap Derivative Collateral Obligation To Return Securities
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CY2015Q4 us-gaap Derivative Fair Value Of Derivative Liability
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CY2016Q1 us-gaap Derivative Fair Value Of Derivative Liability
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332000000 USD
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CY2016Q1 us-gaap Derivative Fair Value Of Derivative Liability Amount Offset Against Collateral
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258000000 USD
CY2015Q4 us-gaap Derivative Fair Value Of Derivative Net
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CY2015Q4 us-gaap Derivative Collateral Right To Reclaim Cash
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CY2016Q1 us-gaap Derivative Collateral Right To Reclaim Cash
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CY2015Q4 us-gaap Derivative Collateral Right To Reclaim Securities
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CY2015Q4 us-gaap Derivative Fair Value Of Derivative Asset
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CY2016Q1 us-gaap Derivative Fair Value Of Derivative Asset
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264000000 USD
CY2016Q1 us-gaap Derivative Fair Value Of Derivative Asset Amount Offset Against Collateral
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206000000 USD
CY2016Q1 us-gaap Derivative Fair Value Of Derivative Net
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CY2015Q4 us-gaap Derivative Liabilities
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371000000 USD
CY2016Q1 us-gaap Derivative Liabilities
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332000000 USD
CY2015Q4 us-gaap Derivative Liability Fair Value Gross Asset
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CY2016Q1 us-gaap Derivative Liability Fair Value Gross Asset
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CY2015Q4 us-gaap Derivative Net Liability Position Aggregate Fair Value
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CY2016Q1 us-gaap Derivative Net Liability Position Aggregate Fair Value
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CY2015Q1 us-gaap Direct Premiums Earned
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CY2016Q1 us-gaap Direct Premiums Earned
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CY2015Q1 us-gaap Earnings Per Share Basic
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1.52
CY2016Q1 us-gaap Earnings Per Share Basic
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CY2016Q1 us-gaap Earnings Per Share Diluted
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CY2015Q1 us-gaap Effect Of Exchange Rate On Cash And Cash Equivalents
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CY2016Q1 us-gaap Effect Of Exchange Rate On Cash And Cash Equivalents
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CY2015Q1 us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
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CY2016Q1 us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
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CY2015Q1 us-gaap Employee Service Share Based Compensation Cash Received From Exercise Of Stock Options
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CY2016Q1 us-gaap Employee Service Share Based Compensation Cash Received From Exercise Of Stock Options
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CY2015Q1 us-gaap Employee Service Share Based Compensation Tax Benefit Realized From Exercise Of Stock Options
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CY2016Q1 us-gaap Employee Service Share Based Compensation Tax Benefit Realized From Exercise Of Stock Options
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CY2015Q1 us-gaap Fair Value Assets Level1 To Level2 Transfers Amount
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0 USD
CY2016Q1 us-gaap Fair Value Assets Level1 To Level2 Transfers Amount
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CY2015Q1 us-gaap Fair Value Assets Level2 To Level1 Transfers Amount
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0 USD
CY2016Q1 us-gaap Fair Value Assets Level2 To Level1 Transfers Amount
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CY2015Q1 us-gaap Fair Value Assets Measured On Recurring Basis Change In Unrealized Gain Loss
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CY2016Q1 us-gaap Fair Value Assets Measured On Recurring Basis Change In Unrealized Gain Loss
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126000000 USD
CY2015Q4 us-gaap Fair Value Concentration Of Risk Derivative Financial Instruments Assets
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CY2016Q1 us-gaap Fair Value Concentration Of Risk Derivative Financial Instruments Assets
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CY2015Q4 us-gaap Fair Value Concentration Of Risk Derivative Financial Instruments Liabilities
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CY2016Q1 us-gaap Fair Value Concentration Of Risk Derivative Financial Instruments Liabilities
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332000000 USD
CY2015Q1 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Gain Loss Included In Earnings1
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CY2016Q1 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Gain Loss Included In Other Comprehensive Income Loss
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CY2015Q1 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Issues
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CY2016Q1 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Issues
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CY2015Q1 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Purchases
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CY2016Q1 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Purchases
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CY2015Q1 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Sales
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CY2016Q1 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Sales
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CY2015Q1 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Settlements
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CY2016Q1 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Settlements
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CY2015Q1 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Transfers Into Level3
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CY2016Q1 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Transfers Into Level3
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CY2015Q1 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Transfers Out Of Level3
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CY2016Q1 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Transfers Out Of Level3
FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisAssetTransfersOutOfLevel3
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CY2014Q4 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Value
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CY2015Q1 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Value
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CY2015Q4 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Value
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CY2016Q1 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Value
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205000000 USD
CY2015Q1 us-gaap Gain Loss On Derivative Instruments Net Pretax
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CY2016Q1 us-gaap Gain Loss On Derivative Instruments Net Pretax
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CY2015Q1 us-gaap Gain Loss On Investments
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CY2016Q1 us-gaap Gain Loss On Investments
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172000000 USD
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CY2016Q1 us-gaap Held To Maturity Securities Fair Value
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1013000000 USD
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CY2015Q1 us-gaap Income Tax Expense Benefit
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CY2016Q1 us-gaap Income Tax Expense Benefit
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CY2016Q1 us-gaap Income Taxes Paid Net
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779000000 USD
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CY2015Q1 us-gaap Increase Decrease In Deferred Policy Acquisition Costs
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37000000 USD
CY2015Q1 us-gaap Increase Decrease In Insurance Liabilities
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CY2015Q1 us-gaap Insurance Commissions
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CY2016Q1 us-gaap Insurance Commissions
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CY2016Q1 us-gaap Interest Paid
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CY2016Q1 us-gaap Liabilities
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332000000 USD
CY2015Q4 us-gaap Liability For Future Policy Benefits
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CY2016Q1 us-gaap Liability For Future Policy Benefits
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3990000000 USD
CY2015Q1 us-gaap Marketable Securities Realized Gain Loss Excluding Other Than Temporary Impairments
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68000000 USD
CY2016Q1 us-gaap Marketable Securities Realized Gain Loss Excluding Other Than Temporary Impairments
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91000000 USD
CY2015Q1 us-gaap Net Cash Provided By Used In Financing Activities
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CY2016Q1 us-gaap Net Cash Provided By Used In Investing Activities
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CY2015Q1 us-gaap Net Change Annuities And Investment Certificates
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CY2016Q1 us-gaap Net Change Annuities And Investment Certificates
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CY2015Q1 us-gaap Net Income Loss
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CY2015Q1 us-gaap Net Investment Income
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CY2016Q1 us-gaap Notes Payable
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CY2015Q4 us-gaap Notes Payable Fair Value Disclosure
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CY2016Q1 us-gaap Number Of Reportable Segments
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CY2015Q1 us-gaap Operating Income Loss
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CY2016Q1 us-gaap Operating Income Loss
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CY2016Q1 us-gaap Other Assets
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CY2015Q1 us-gaap Other Comprehensive Income Loss Before Reclassifications Net Of Tax
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CY2016Q1 us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Before Tax
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689000000 USD
CY2015Q1 us-gaap Other Comprehensive Income Loss Net Of Tax
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353000000 USD
CY2015Q1 us-gaap Other Comprehensive Income Loss Derivatives Qualifying As Hedges Before Tax
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CY2016Q1 us-gaap Other Comprehensive Income Loss Net Of Tax
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CY2015Q1 us-gaap Other Comprehensive Income Loss Pension And Other Postretirement Benefit Plans Adjustment Before Tax
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CY2016Q1 us-gaap Other Comprehensive Income Loss Pension And Other Postretirement Benefit Plans Adjustment Before Tax
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CY2015Q1 us-gaap Other Comprehensive Income Loss Tax
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CY2016Q1 us-gaap Other Comprehensive Income Loss Tax
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593000000 USD
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CY2015Q1 us-gaap Other Cost And Expense Operating
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CY2015Q4 us-gaap Other Liabilities
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CY2016Q1 us-gaap Other Liabilities
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CY2015Q1 us-gaap Other Noncash Expense
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CY2016Q1 us-gaap Other Noncash Expense
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CY2016Q1 us-gaap Other Noncash Income Expense
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CY2015Q4 us-gaap Other Policyholder Funds
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CY2016Q1 us-gaap Other Policyholder Funds
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CY2015Q1 us-gaap Other Than Temporary Impairment Losses Investments Portion Recognized In Earnings Net
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CY2016Q1 us-gaap Other Than Temporary Impairment Losses Investments Portion Recognized In Earnings Net
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14000000 USD
CY2015Q1 us-gaap Payments For Proceeds From Hedge Investing Activities
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CY2016Q1 us-gaap Payments For Proceeds From Hedge Investing Activities
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CY2015Q1 us-gaap Payments For Proceeds From Other Investing Activities
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CY2016Q1 us-gaap Payments For Proceeds From Other Investing Activities
PaymentsForProceedsFromOtherInvestingActivities
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CY2015Q1 us-gaap Payments For Repurchase Of Common Stock
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610000000 USD
CY2016Q1 us-gaap Payments For Repurchase Of Common Stock
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CY2015Q1 us-gaap Payments Of Dividends
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165000000 USD
CY2016Q1 us-gaap Payments Of Dividends
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167000000 USD
CY2015Q1 us-gaap Payments To Acquire Available For Sale Securities Debt
PaymentsToAcquireAvailableForSaleSecuritiesDebt
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CY2016Q1 us-gaap Payments To Acquire Available For Sale Securities Debt
PaymentsToAcquireAvailableForSaleSecuritiesDebt
1911000000 USD
CY2015Q1 us-gaap Payments To Acquire Available For Sale Securities Equity
PaymentsToAcquireAvailableForSaleSecuritiesEquity
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CY2016Q1 us-gaap Payments To Acquire Available For Sale Securities Equity
PaymentsToAcquireAvailableForSaleSecuritiesEquity
364000000 USD
CY2015Q1 us-gaap Policyholder Benefits And Claims Incurred Gross
PolicyholderBenefitsAndClaimsIncurredGross
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CY2016Q1 us-gaap Policyholder Benefits And Claims Incurred Gross
PolicyholderBenefitsAndClaimsIncurredGross
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PolicyholderBenefitsAndClaimsIncurredNet
2952000000 USD
CY2016Q1 us-gaap Policyholder Benefits And Claims Incurred Net
PolicyholderBenefitsAndClaimsIncurredNet
3025000000 USD
CY2015Q4 us-gaap Premiums And Other Receivables Net
PremiumsAndOtherReceivablesNet
705000000 USD
CY2016Q1 us-gaap Premiums And Other Receivables Net
PremiumsAndOtherReceivablesNet
723000000 USD
CY2015Q1 us-gaap Premiums Earned Net
PremiumsEarnedNet
4432000000 USD
CY2016Q1 us-gaap Premiums Earned Net
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4602000000 USD
CY2015Q1 us-gaap Proceeds From Issuance Of Long Term Debt And Capital Securities Net
ProceedsFromIssuanceOfLongTermDebtAndCapitalSecuritiesNet
989000000 USD
CY2016Q1 us-gaap Proceeds From Issuance Of Long Term Debt And Capital Securities Net
ProceedsFromIssuanceOfLongTermDebtAndCapitalSecuritiesNet
0 USD
CY2015Q1 us-gaap Proceeds From Maturities Prepayments And Calls Of Available For Sale Securities
ProceedsFromMaturitiesPrepaymentsAndCallsOfAvailableForSaleSecurities
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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-style:italic;text-decoration:underline;">Accounting Pronouncements Pending Adoption</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-weight:bold;">Compensation - Stock Compensation - Improvements to Employee Share-Based Payment Accounting: </font><font style="font-family:Arial;font-size:10pt;">In March 2016, the FASB issued amendments which simplify several aspects for share-based payment award transactions, including income tax consequences, classification of awards as either liability or equities, and classification on the statement of cash flows. The amendments are effective for public companies for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted for any interim or annual period. We are currently evaluating the impact of this guidance on our financial position, results of operations or disclosures.</font></div><div style="line-height:174%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-weight:bold;">Investments - Equity Method and Joint Ventures - Simplifying the Transition to the Equity Method of Accounting: </font><font style="font-family:Arial;font-size:10pt;">In March 2016, the FASB issued amendments which</font><font style="font-family:Arial;font-size:10pt;font-weight:bold;"> </font><font style="font-family:Arial;font-size:10pt;">eliminate the requirement that when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations, and retained earnings retroactively on a step-by-step basis as if the equity method had been in effect during all previous periods that the investment had been held. Per the amendments, upon qualifying for the equity method of accounting, no retroactive adjustment of the investment is required. The amendments also require that an entity that has an available-for-sale equity security that becomes qualified for the equity method of accounting recognize through earnings the unrealized holding gain or loss in accumulated other comprehensive income at the date the investment becomes qualified for use of the equity method. The amendments are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. The amendments should be applied prospectively upon their effective date to increases in the level of ownership interest or degree of influence that result in the adoption of the equity method. Early adoption is permitted. The adoption of this guidance is not expected to have a significant impact on our financial position or results of operations.</font></div><div style="line-height:174%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-weight:bold;">Derivatives and Hedging - Contingent Put and Call Options in Debt Instruments: </font><font style="font-family:Arial;font-size:10pt;">In March 2016, the FASB issued amendments which clarify what steps are required when assessing whether the economic characteristics and risks of call (put) options are clearly and closely related to the economic characteristics and risks of their debt hosts, which is one of the criteria for bifurcating an embedded derivative. Consequently, when a call (put) option is contingently exercisable, an entity does not have to assess whether the event that triggers the ability to exercise a call (put) option is related to interest rates or credit risks. The amendments are effective for public business entities for fiscal years beginning after December 15, 2016 and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The adoption of this guidance is not expected to have a significant impact on our financial position or results of operations.</font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-weight:bold;">Derivatives and Hedging - Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships: </font><font style="font-family:Arial;font-size:10pt;">In March 2016, the FASB issued amendments which clarify that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument does not, in and of itself, require dedesignation of that hedging relationship provided that all other hedge accounting criteria remain intact. The amendments are effective for public business entities for financial statements issued for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The adoption of this guidance is not expected to have a significant impact on our financial position or results of operations.</font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-weight:bold;">Leases: </font><font style="font-family:Arial;font-size:10pt;">In January 2016, the FASB issued updated guidance for accounting for leases. Per the amendments, lessees will be required to recognize all leases on the balance sheet, with the exception of short-term leases. A lease liability will be recorded for the obligation of a lessee to make lease payments arising from a lease. A right-of-use asset, will be recorded which represents the lessee&#8217;s right to use, or to control the use of, a specified asset for a least term. Under the new guidance, lessor accounting is largely unchanged. The amendments are effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. We are currently evaluating the impact of this guidance on our financial position, results of operations or disclosures.</font></div><div style="line-height:120%;text-indent:24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-indent:24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-weight:bold;">Financial Instruments - Recognition and Measurement of Financial Assets and Financial Liabilities:</font><font style="font-family:Arial;font-size:10pt;"> In January 2016, the FASB issued guidance to address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The main provisions require that equity investments be measured at fair value with changes recognized in net income; that changes in instrument-specific credit risk for financial liabilities that are measured under the fair value option be recognized in other comprehensive income; and that entities would make the assessment of the ability to realize a deferred tax asset (DTA) related to an available-for-sale (AFS) debt security in combination with the entity's other DTAs. The amendments are effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is not permitted, with the exception of the own credit provision if an entity has elected to measure a liability at fair value. We are evaluating whether the adoption of this guidance will have a significant impact on our financial position, results of operations or disclosures.</font></div><div style="line-height:120%;text-indent:24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-weight:bold;">Financial Services - Insurance - Disclosures about Short-Duration Contracts:</font><font style="font-family:Arial;font-size:10pt;"> In May 2015, the FASB issued updated guidance requiring enhanced disclosures by all insurance entities that issue short-duration contracts. The amendments require insurance entities to disclose for annual reporting periods information about the liability for unpaid claims and claim adjustment expenses. The amendments also require insurance entities to disclose information about significant changes in methodologies and assumptions used to calculate the liability for unpaid claims and claim adjustment expenses. In addition, the amendments require insurance entities to disclose for annual and interim reporting periods a roll-forward of the liability for unpaid claims and claim adjustment expenses. For health insurance claims, the amendments require the disclosure of the total of incurred-but-not-reported liabilities and expected development on reported claims included in the liability for unpaid claims and claim adjustment expenses. The amendments are effective for public business entities for annual periods beginning after December 15, 2015, and interim periods within annual periods beginning after December 15, 2016. Early application of the amendments is permitted. The adoption of this guidance will not have a significant impact on our financial position or results of operations.</font></div><div style="line-height:120%;text-indent:24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-weight:bold;">Presentation of Financial Statements - Going Concern - Disclosure of uncertainties about an entity&#8217;s ability to continue as a going concern: </font><font style="font-family:Arial;font-size:10pt;">In August 2014, the FASB issued this amendment that provides U.S. GAAP guidance on management&#8217;s responsibility in evaluating whether there is substantial doubt about a company&#8217;s ability to continue as a going concern and about related footnote disclosures. For each reporting period, management will be required to evaluate whether there are conditions or events that raise substantial doubt about a company&#8217;s ability to continue as a going concern within one year from the date the financial statements are issued. The amendment is effective for annual periods ending after December 15, 2016, and interim periods within annual periods beginning after December 15, 2016. Early application is permitted for annual or interim reporting periods for which the financial statements have not previously been issued. The adoption of this guidance will not have a significant impact on our financial position or results of operations.</font></div><div style="line-height:120%;text-indent:24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-weight:bold;">Revenue from contracts with customers:</font><font style="font-family:Arial;font-size:10pt;"> In May 2014, the FASB issued updated guidance that affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards (e.g., insurance contracts or lease contracts). The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In August 2015, the FASB deferred the effective date for this standard to annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early application is not permitted. We are currently evaluating the impact of this guidance on our financial position, results of operations or disclosures.</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"></font></div></div>

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