2018 Q3 Form 10-Q Financial Statement

#000004054518000081 Filed on October 30, 2018

View on sec.gov

Income Statement

Concept 2018 Q3 2017 Q3
Revenue $23.39B $30.66B
YoY Change -23.71% 4.77%
Cost Of Revenue $17.85B $7.279B
YoY Change 145.18% 27.46%
Gross Profit $5.545B $23.38B
YoY Change -76.29% 266.05%
Gross Profit Margin 23.7% 76.26%
Selling, General & Admin $4.100B $4.741B
YoY Change -13.52% 9.16%
% of Gross Profit 73.94% 20.28%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $1.257B $1.397B
YoY Change -10.02% 22.98%
% of Gross Profit 22.67% 5.97%
Operating Expenses $4.100B $4.741B
YoY Change -13.52% 9.16%
Operating Profit $1.445B $18.64B
YoY Change -92.25% 811.59%
Interest Expense -$451.0M -$442.0M
YoY Change 2.04% 28.49%
% of Operating Profit -31.21% -2.37%
Other Income/Expense, Net $279.0M $2.165B
YoY Change -87.11% 853.74%
Pretax Income -$22.96B $746.0M
YoY Change -3178.02% -64.03%
Income Tax $52.00M -$551.0M
% Of Pretax Income -73.86%
Net Earnings -$22.77B $1.360B
YoY Change -1774.19% -32.91%
Net Earnings / Revenue -97.34% 4.44%
Basic Earnings Per Share -$2.62 $0.15
Diluted Earnings Per Share -$2.62 $0.15
COMMON SHARES
Basic Shares Outstanding 8.694B shares 8.665B shares
Diluted Shares Outstanding 8.694B shares 8.732B shares

Balance Sheet

Concept 2018 Q3 2017 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $26.93B $39.85B
YoY Change -32.42% -24.13%
Cash & Equivalents $22.05B $40.45B
Short-Term Investments
Other Short-Term Assets
YoY Change
Inventory $20.64B $25.85B
Prepaid Expenses
Receivables $20.41B $25.03B
Other Receivables $0.00 $0.00
Total Short-Term Assets $67.99B $90.73B
YoY Change -25.06% -10.91%
LONG-TERM ASSETS
Property, Plant & Equipment $50.64B $54.10B
YoY Change -6.4% 5.15%
Goodwill $60.38B $87.07B
YoY Change -30.66% 24.4%
Intangibles $18.84B $21.44B
YoY Change -12.12% 27.75%
Long-Term Investments $0.00 $0.00
YoY Change
Other Assets $44.15B $37.87B
YoY Change 16.6% -35.55%
Total Long-Term Assets $243.7B $287.3B
YoY Change -15.18% 0.51%
TOTAL ASSETS
Total Short-Term Assets $67.99B $90.73B
Total Long-Term Assets $243.7B $287.3B
Total Assets $311.7B $378.0B
YoY Change -17.55% -2.49%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $15.75B $14.91B
YoY Change 5.64% 14.08%
Accrued Expenses $17.93B $17.42B
YoY Change 2.93% -13.89%
Deferred Revenue
YoY Change
Short-Term Debt $15.21B $28.13B
YoY Change -45.94% -10.91%
Long-Term Debt Due $8.191B $20.25B
YoY Change -59.55% -17.58%
Total Short-Term Liabilities $126.0B $128.3B
YoY Change -1.79% -3.54%
LONG-TERM LIABILITIES
Long-Term Debt $99.76B $108.3B
YoY Change -7.86% -8.14%
Other Long-Term Liabilities $37.70B $43.97B
YoY Change -14.26% -12.45%
Total Long-Term Liabilities $137.5B $152.2B
YoY Change -9.71% -9.43%
TOTAL LIABILITIES
Total Short-Term Liabilities $126.0B $128.3B
Total Long-Term Liabilities $137.5B $152.2B
Total Liabilities $263.5B $280.5B
YoY Change -6.09% -6.83%
SHAREHOLDERS EQUITY
Retained Earnings $90.87B $136.7B
YoY Change -33.53% -1.11%
Common Stock $702.0M $702.0M
YoY Change 0.0% 0.0%
Preferred Stock
YoY Change
Treasury Stock (at cost) $84.20B $85.20B
YoY Change -1.17% 6.7%
Treasury Stock Shares
Shareholders Equity $31.45B $69.05B
YoY Change
Total Liabilities & Shareholders Equity $311.7B $378.0B
YoY Change -17.55% -2.49%

Cashflow Statement

Concept 2018 Q3 2017 Q3
OPERATING ACTIVITIES
Net Income -$22.77B $1.360B
YoY Change -1774.19% -32.91%
Depreciation, Depletion And Amortization $1.257B $1.397B
YoY Change -10.02% 22.98%
Cash From Operating Activities -$2.915B $857.0M
YoY Change -440.14% -10.91%
INVESTING ACTIVITIES
Capital Expenditures -$1.070B -$1.923B
YoY Change -44.36% -6.51%
Acquisitions
YoY Change
Other Investing Activities $7.269B $2.358B
YoY Change 208.27% -80.0%
Cash From Investing Activities $6.199B $435.0M
YoY Change 1325.06% -95.53%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -4.054B -6.142B
YoY Change -34.0% -46.21%
NET CHANGE
Cash From Operating Activities -2.915B 857.0M
Cash From Investing Activities 6.199B 435.0M
Cash From Financing Activities -4.054B -6.142B
Net Change In Cash -770.0M -4.850B
YoY Change -84.12% 571.75%
FREE CASH FLOW
Cash From Operating Activities -$2.915B $857.0M
Capital Expenditures -$1.070B -$1.923B
Free Cash Flow -$1.845B $2.780B
YoY Change -166.37% -7.92%

Facts In Submission

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501000000 USD
us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax
1829000000 USD
CY2018Q3 us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax
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us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
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CY2017Q3 us-gaap Other Comprehensive Income Loss Net Of Tax
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1046000000 USD
us-gaap Other Comprehensive Income Loss Net Of Tax
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4184000000 USD
CY2018Q3 us-gaap Other Comprehensive Income Loss Net Of Tax
OtherComprehensiveIncomeLossNetOfTax
164000000 USD
us-gaap Other Comprehensive Income Loss Net Of Tax
OtherComprehensiveIncomeLossNetOfTax
1082000000 USD
CY2017Q3 us-gaap Other Comprehensive Income Loss Net Of Tax Portion Attributable To Noncontrolling Interest
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124000000 USD
us-gaap Other Comprehensive Income Loss Net Of Tax Portion Attributable To Noncontrolling Interest
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131000000 USD
CY2018Q3 us-gaap Other Comprehensive Income Loss Net Of Tax Portion Attributable To Noncontrolling Interest
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-39000000 USD
us-gaap Other Comprehensive Income Loss Net Of Tax Portion Attributable To Noncontrolling Interest
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-92000000 USD
CY2017Q3 us-gaap Other Comprehensive Income Loss Net Of Tax Portion Attributable To Parent
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922000000 USD
us-gaap Other Comprehensive Income Loss Net Of Tax Portion Attributable To Parent
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4053000000 USD
CY2018Q3 us-gaap Other Comprehensive Income Loss Net Of Tax Portion Attributable To Parent
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203000000 USD
us-gaap Other Comprehensive Income Loss Net Of Tax Portion Attributable To Parent
OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParent
1174000000 USD
CY2017Q3 us-gaap Other Comprehensive Income Loss Pension And Other Postretirement Benefit Plans Adjustment Net Of Tax
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us-gaap Other Comprehensive Income Loss Pension And Other Postretirement Benefit Plans Adjustment Net Of Tax
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-2032000000 USD
CY2018Q3 us-gaap Other Comprehensive Income Loss Pension And Other Postretirement Benefit Plans Adjustment Net Of Tax
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-863000000 USD
us-gaap Other Comprehensive Income Loss Pension And Other Postretirement Benefit Plans Adjustment Net Of Tax
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CY2017Q3 us-gaap Other Cost And Expense Operating
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261000000 USD
us-gaap Other Cost And Expense Operating
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584000000 USD
CY2018Q3 us-gaap Other Cost And Expense Operating
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98000000 USD
us-gaap Other Cost And Expense Operating
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286000000 USD
CY2017Q4 us-gaap Other Inventory In Transit
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441000000 USD
CY2018Q3 us-gaap Other Inventory In Transit
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217000000 USD
us-gaap Payments For Losses And Loss Adjustment Expense
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1499000000 USD
us-gaap Payments For Proceeds From Other Investing Activities
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us-gaap Payments For Proceeds From Other Investing Activities
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us-gaap Payments For Software
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418000000 USD
us-gaap Payments For Software
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278000000 USD
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6417000000 USD
us-gaap Payments Of Ordinary Dividends
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3282000000 USD
us-gaap Payments To Acquire Businesses Net Of Cash Acquired
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6053000000 USD
us-gaap Payments To Acquire Businesses Net Of Cash Acquired
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21000000 USD
us-gaap Payments To Acquire Property Plant And Equipment
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5071000000 USD
us-gaap Payments To Acquire Property Plant And Equipment
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4983000000 USD
CY2017Q3 us-gaap Preferred Stock Dividends Income Statement Impact
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36000000 USD
us-gaap Preferred Stock Dividends Income Statement Impact
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252000000 USD
CY2018Q3 us-gaap Preferred Stock Dividends Income Statement Impact
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39000000 USD
us-gaap Preferred Stock Dividends Income Statement Impact
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260000000 USD
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CY2017Q4 us-gaap Preferred Stock Value
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6301000000 USD
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6115000000 USD
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3030000000 USD
us-gaap Proceeds From Divestiture Of Businesses
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5564000000 USD
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1018000000 USD
us-gaap Proceeds From Divestiture Of Businesses Net Of Cash Divested
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29000000 USD
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us-gaap Proceeds From Payments For Other Financing Activities
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us-gaap Proceeds From Repayments Of Short Term Debt Maturing In Three Months Or Less
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531000000 USD
us-gaap Proceeds From Repayments Of Short Term Debt Maturing In Three Months Or Less
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-1975000000 USD
us-gaap Proceeds From Repurchase Of Equity
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us-gaap Proceeds From Repurchase Of Equity
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us-gaap Proceeds From Sale Of Available For Sale Securities Debt
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2433000000 USD
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1483000000 USD
us-gaap Proceeds From Sale Of Available For Sale Securities Debt
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2189000000 USD
us-gaap Proceeds From Sale Of Notes Receivable
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us-gaap Proceeds From Sale Of Property Plant And Equipment
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3768000000 USD
us-gaap Proceeds From Sale Of Property Plant And Equipment
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2707000000 USD
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1191000000 USD
us-gaap Profit Loss
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2023000000 USD
CY2018Q3 us-gaap Profit Loss
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us-gaap Profit Loss
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CY2018Q3 us-gaap Property Plant And Equipment Gross
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87516000000 USD
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53874000000 USD
CY2018Q3 us-gaap Property Plant And Equipment Net
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50638000000 USD
CY2017Q4 us-gaap Receivables Net Current
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40846000000 USD
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us-gaap Reclassification From Accumulated Other Comprehensive Income Current Period Net Of Tax
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-1780000000 USD
CY2018Q3 us-gaap Reclassification From Accumulated Other Comprehensive Income Current Period Net Of Tax
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-812000000 USD
us-gaap Reclassification From Accumulated Other Comprehensive Income Current Period Net Of Tax
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CY2016Q4 us-gaap Redeemable Noncontrolling Interest Equity Carrying Amount
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3017000000 USD
CY2017Q2 us-gaap Redeemable Noncontrolling Interest Equity Carrying Amount
RedeemableNoncontrollingInterestEquityCarryingAmount
3185000000 USD
CY2017Q3 us-gaap Redeemable Noncontrolling Interest Equity Carrying Amount
RedeemableNoncontrollingInterestEquityCarryingAmount
3433000000 USD
CY2017Q4 us-gaap Redeemable Noncontrolling Interest Equity Carrying Amount
RedeemableNoncontrollingInterestEquityCarryingAmount
3391000000 USD
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RedeemableNoncontrollingInterestEquityCarryingAmount
3376000000 USD
CY2018Q3 us-gaap Redeemable Noncontrolling Interest Equity Carrying Amount
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386000000 USD
CY2017Q4 us-gaap Reinsurance Recoverables
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2458000000 USD
CY2018Q3 us-gaap Reinsurance Recoverables
ReinsuranceRecoverables
2217000000 USD
CY2017Q4 us-gaap Reinsurance Recoverables Allowance
ReinsuranceRecoverablesAllowance
715000000 USD
CY2018Q3 us-gaap Reinsurance Recoverables Allowance
ReinsuranceRecoverablesAllowance
749000000 USD
CY2017Q4 us-gaap Repurchase Agreement Counterparty Amount At Risk
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1000000 USD
CY2018Q3 us-gaap Repurchase Agreement Counterparty Amount At Risk
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0 USD
CY2017Q4 us-gaap Restricted Cash
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668000000 USD
CY2018Q3 us-gaap Restricted Cash
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CY2017Q4 us-gaap Retained Earnings Accumulated Deficit
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117245000000 USD
CY2018Q3 us-gaap Retained Earnings Accumulated Deficit
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CY2017Q3 us-gaap Revenue From Contract With Customer Including Assessed Tax
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us-gaap Revenue From Contract With Customer Including Assessed Tax
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80456000000 USD
CY2018Q3 us-gaap Revenue From Contract With Customer Including Assessed Tax
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us-gaap Revenue From Contract With Customer Including Assessed Tax
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82432000000 USD
CY2018Q3 us-gaap Revenue Remaining Performance Obligation
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CY2017Q3 us-gaap Revenues
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us-gaap Revenues
Revenues
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CY2018Q3 us-gaap Revenues
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us-gaap Revenues
Revenues
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CY2017Q4 us-gaap Securities Purchased Under Agreements To Resell Collateral Obligation To Return Securities
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16000000 USD
CY2018Q3 us-gaap Securities Purchased Under Agreements To Resell Collateral Obligation To Return Securities
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CY2017Q4 us-gaap Securities Purchased Under Agreements To Resell Gross
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469000000 USD
CY2018Q3 us-gaap Securities Purchased Under Agreements To Resell Gross
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228000000 USD
CY2017Q4 us-gaap Securities Sold Under Agreements To Repurchase Gross
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38000000 USD
CY2018Q3 us-gaap Securities Sold Under Agreements To Repurchase Gross
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2541000000 USD
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3865000000 USD
CY2017Q3 us-gaap Selling General And Administrative Expense
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us-gaap Selling General And Administrative Expense
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CY2018Q3 us-gaap Selling General And Administrative Expense
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us-gaap Selling General And Administrative Expense
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CY2017Q4 us-gaap Short Term Borrowings
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CY2018Q3 us-gaap Short Term Borrowings
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CY2017Q4 us-gaap Shortduration Insurance Contracts Liability For Unpaid Claims And Claim Adjustment Expense Aggregate Reconciling Items
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CY2018Q3 us-gaap Shortduration Insurance Contracts Liability For Unpaid Claims And Claim Adjustment Expense Aggregate Reconciling Items
ShortdurationInsuranceContractsLiabilityForUnpaidClaimsAndClaimAdjustmentExpenseAggregateReconcilingItems
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CY2017Q4 us-gaap Shortduration Insurance Contracts Liability For Unpaid Claims And Claims Adjustment Expense Accumulated Unallocated Claim Adjustment Expense
ShortdurationInsuranceContractsLiabilityForUnpaidClaimsAndClaimsAdjustmentExpenseAccumulatedUnallocatedClaimAdjustmentExpense
372000000 USD
CY2018Q3 us-gaap Shortduration Insurance Contracts Liability For Unpaid Claims And Claims Adjustment Expense Accumulated Unallocated Claim Adjustment Expense
ShortdurationInsuranceContractsLiabilityForUnpaidClaimsAndClaimsAdjustmentExpenseAccumulatedUnallocatedClaimAdjustmentExpense
382000000 USD
CY2016Q4 us-gaap Standard Product Warranty Accrual
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1929000000 USD
CY2017Q3 us-gaap Standard Product Warranty Accrual
StandardProductWarrantyAccrual
2191000000 USD
CY2017Q4 us-gaap Standard Product Warranty Accrual
StandardProductWarrantyAccrual
2348000000 USD
CY2018Q3 us-gaap Standard Product Warranty Accrual
StandardProductWarrantyAccrual
2534000000 USD
us-gaap Standard Product Warranty Accrual Payments
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598000000 USD
us-gaap Standard Product Warranty Accrual Payments
StandardProductWarrantyAccrualPayments
735000000 USD
us-gaap Standard Product Warranty Accrual Preexisting Increase Decrease
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606000000 USD
us-gaap Standard Product Warranty Accrual Preexisting Increase Decrease
StandardProductWarrantyAccrualPreexistingIncreaseDecrease
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CY2017Q3 us-gaap Stockholders Equity
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CY2017Q4 us-gaap Stockholders Equity
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CY2018Q3 us-gaap Stockholders Equity
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CY2017Q3 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
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CY2017Q4 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
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CY2018Q3 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
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CY2017Q3 us-gaap Subsidiary Or Equity Method Investee Minority Interest In Income Of Subsidiary
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us-gaap Subsidiary Or Equity Method Investee Minority Interest In Income Of Subsidiary
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22000000 USD
CY2018Q3 us-gaap Subsidiary Or Equity Method Investee Minority Interest In Income Of Subsidiary
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0 USD
us-gaap Subsidiary Or Equity Method Investee Minority Interest In Income Of Subsidiary
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us-gaap Supplemental Information For Property Casualty Insurance Underwriters Prior Year Claims And Claims Adjustment Expense
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us-gaap Supplemental Information For Property Casualty Insurance Underwriters Prior Year Claims And Claims Adjustment Expense
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us-gaap Translation Adjustment For Net Investment Hedge Increase Decrease Gross Of Tax
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us-gaap Translation Adjustment For Net Investment Hedge Increase Decrease Gross Of Tax
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CY2017Q4 us-gaap Treasury Stock Value
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CY2018Q3 us-gaap Treasury Stock Value
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CY2017Q4 us-gaap Unrecognized Tax Benefits
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CY2018Q3 us-gaap Unrecognized Tax Benefits
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CY2017Q4 us-gaap Unrecognized Tax Benefits Income Tax Penalties Accrued
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CY2018Q3 us-gaap Unrecognized Tax Benefits Income Tax Penalties Accrued
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CY2018Q3 us-gaap Unrecognized Tax Benefits Interest On Income Taxes Accrued
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CY2017Q4 us-gaap Unrecognized Tax Benefits That Would Impact Effective Tax Rate
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us-gaap Weighted Average Number Of Diluted Shares Outstanding
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CY2018Q3 us-gaap Weighted Average Number Of Diluted Shares Outstanding
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us-gaap Weighted Average Number Of Diluted Shares Outstanding
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CY2017Q3 us-gaap Weighted Average Number Of Shares Issued Basic
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us-gaap Weighted Average Number Of Shares Issued Basic
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CY2018Q3 us-gaap Weighted Average Number Of Shares Issued Basic
WeightedAverageNumberOfSharesIssuedBasic
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us-gaap Weighted Average Number Of Shares Issued Basic
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WeightedAverageNumberOfSharesOutstandingBasic
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us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
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CY2018Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
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us-gaap Weighted Average Number Of Shares Outstanding Basic
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us-gaap Prior Period Reclassification Adjustment Description
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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;font-size:9pt;"><font style="font-family:Arial;font-size:9pt;">We have reclassified certain prior-period amounts to conform to the current-period presentation.</font></div></div>
us-gaap Schedule Of Liability For Unpaid Claims And Claims Adjustment Expense
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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:4px;font-size:10pt;"><div style="padding-left:0px;text-indent:0px;line-height:normal;padding-top:10px;"><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman;font-size:10pt;width:100%;border-collapse:collapse;text-align:left;"><tr><td colspan="7" rowspan="1"></td></tr><tr><td style="width:72%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td><td style="width:12%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td><td style="width:12%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:8pt;"><font style="font-family:Arial Narrow;font-size:8pt;color:#404040;font-style:italic;font-weight:bold;">(In millions)</font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;padding-left:2px;font-size:8pt;"><font style="font-family:Arial Narrow;font-size:8pt;color:#454545;font-weight:bold;">September&#160;30, 2018</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #005cb9;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;padding-left:2px;font-size:8pt;"><font style="font-family:Arial Narrow;font-size:8pt;color:#454545;font-weight:bold;">December&#160;31, 2017</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #005cb9;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:1px solid #005cb9;" rowspan="1" colspan="1"><div style="overflow:hidden;height:6px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="3" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:1px solid #005cb9;" rowspan="1"><div style="overflow:hidden;height:6px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="3" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:1px solid #005cb9;" rowspan="1"><div style="overflow:hidden;height:6px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:8pt;"><font style="font-family:Arial;font-size:8pt;">Future policy benefit reserves</font></div></td><td colspan="3" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="3" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:12px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:8pt;"><font style="font-family:Arial;font-size:8pt;">Long-term care insurance contracts</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:8pt;"><font style="font-family:Arial;font-size:8pt;">$</font></div></td><td style="vertical-align:bottom;padding-top:2px;padding-bottom:2px;" rowspan="1" colspan="1"><div style="text-align:right;font-size:8pt;"><font style="font-family:Arial;font-size:8pt;">16,119</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:8pt;"><font style="font-family:Arial;font-size:8pt;">$</font></div></td><td style="vertical-align:bottom;padding-top:2px;padding-bottom:2px;" rowspan="1" colspan="1"><div style="text-align:right;font-size:8pt;"><font style="font-family:Arial;font-size:8pt;">16,522</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:12px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:8pt;"><font style="font-family:Arial;font-size:8pt;">Structured settlement annuities with life contingencies and other contracts</font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:8pt;"><font style="font-family:Arial;font-size:8pt;">9,450</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:8pt;"><font style="font-family:Arial;font-size:8pt;">9,448</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:12px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:8pt;"><font style="font-family:Arial;font-size:8pt;">Shadow adjustments(a)</font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:8pt;"><font style="font-family:Arial;font-size:8pt;">2,409</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:8pt;"><font style="font-family:Arial;font-size:8pt;">4,582</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:8pt;"><font style="font-family:Arial;font-size:8pt;">27,978</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;border-top:1px solid #000000;" rowspan="1"><div style="text-align:right;font-size:8pt;"><font style="font-family:Arial;font-size:8pt;">30,552</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:8pt;"><font style="font-family:Arial;font-size:8pt;">Investment contracts</font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:8pt;"><font style="font-family:Arial;font-size:8pt;">2,433</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:8pt;"><font style="font-family:Arial;font-size:8pt;">2,569</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:8pt;"><font style="font-family:Arial;font-size:8pt;">Claim reserves(b)</font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:8pt;"><font style="font-family:Arial;font-size:8pt;">5,277</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:8pt;"><font style="font-family:Arial;font-size:8pt;">5,094</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:8pt;"><font style="font-family:Arial;font-size:8pt;">Unearned premiums and other</font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:8pt;"><font style="font-family:Arial;font-size:8pt;">382</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:8pt;"><font style="font-family:Arial;font-size:8pt;">372</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:8pt;"><font style="font-family:Arial;font-size:8pt;">36,070</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:8pt;"><font style="font-family:Arial;font-size:8pt;">38,587</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:8pt;"><font style="font-family:Arial;font-size:8pt;">Eliminations</font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:8pt;"><font style="font-family:Arial;font-size:8pt;">(495</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding-right:2px;padding-top:2px;padding-bottom:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:8pt;"><font style="font-family:Arial;font-size:8pt;">)</font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:8pt;"><font style="font-family:Arial;font-size:8pt;">(451</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding-right:2px;padding-top:2px;padding-bottom:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:8pt;"><font style="font-family:Arial;font-size:8pt;">)</font></div></td></tr><tr><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:8pt;"><font style="font-family:Arial;font-size:8pt;">Total</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:8pt;"><font style="font-family:Arial;font-size:8pt;">$</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding-top:2px;padding-bottom:2px;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:right;font-size:8pt;"><font style="font-family:Arial;font-size:8pt;">35,575</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:8pt;"><font style="font-family:Arial;font-size:8pt;">$</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding-top:2px;padding-bottom:2px;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:right;font-size:8pt;"><font style="font-family:Arial;font-size:8pt;">38,136</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr></table></div></div><table cellpadding="0" cellspacing="0" style="padding-bottom:4px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:8pt;padding-left:0px;"><font style="font-family:Arial;font-size:8pt;color:#000000;">(a)</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:left;font-size:8pt;"><font style="font-family:Arial;font-size:8pt;">To the extent that unrealized gains on debt securities supporting our insurance contracts would result in a premium deficiency should those gains be realized, an increase in future policy benefit reserves is recorded, with an offsetting amount recorded in Other comprehensive income, net of taxes.</font><font style="font-family:Arial;font-size:8pt;"> </font><font style="font-family:Arial;font-size:8pt;"> </font><font style="font-family:Arial;font-size:8pt;"> </font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:8pt;padding-left:0px;"><font style="font-family:Arial;font-size:8pt;color:#000000;">(b)</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:left;font-size:8pt;"><font style="color:#000000;font-family:Arial;font-size:8pt;">Includes </font><font style="font-family:Arial;font-size:8pt;color:#000000;">$3,816 million</font><font style="color:#000000;font-family:Arial;font-size:8pt;"> and </font><font style="font-family:Arial;font-size:8pt;color:#000000;">$3,590</font><font style="color:#000000;font-family:Arial;font-size:8pt;"> million related to long-term care insurance contracts and </font><font style="font-family:Arial;font-size:8pt;color:#000000;">$368 million</font><font style="color:#000000;font-family:Arial;font-size:8pt;"> and </font><font style="font-family:Arial;font-size:8pt;color:#000000;">$364 million</font><font style="color:#000000;font-family:Arial;font-size:8pt;"> related to short-duration contracts, net of eliminations, at September 30, 2018 and December 31, 2017, respectively.</font><font style="color:#000000;font-family:Arial;font-size:8pt;"> </font><font style="color:#000000;font-family:Arial;font-size:8pt;"> </font></div></td></tr></table></div>

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