Sun Life 2012 Annual Report Download - page 104

2.B.i Financial Statement Restatements
The effects of these restatements on our Consolidated Statements of Operations are as follows:
For the year ended December 31, 2011
Prior to
restatement Restatement Restated
Increase (decrease) in insurance contract liabilities from continuing operations $ 7,104 $ 287 $ 7,391
Increase (decrease) in insurance contract liabilities from discontinued operation 480 18 498
Total increase (decrease) in insurance contract liabilities $ 7,584(1) $ 305 $ 7,889
Decrease (increase) in reinsurance assets from continuing operations $ 578 $ (194) $ 384
Decrease (increase) in reinsurance assets from discontinued operation 12 – 12
Total decrease (increase) in reinsurance assets $ 590(1) $ (194) $ 396
Income tax expense (benefit) from continuing operations $ (116) $ (35) $ (151)
Income tax expense (benefit) from discontinued operation (331) (6) (337)
Combined income tax expense (benefit) $ (447)(1) $ (41) $ (488)
(Decrease) in net income from continuing operations $ (58)
(Decrease) in net income from discontinued operation (12)
Total (decrease) in net income $ (70)
(1) As previously published.
The effects of these restatements on our Consolidated Statements of Financial Position are as follows:
As at December 31, 2011
As previously
published Restatement Restated
Assets
Reinsurance assets $ 3,277 $ 181 $ 3,458
Deferred tax assets $ 1,648 $ 46 $ 1,694
Liabilities and equity
Insurance contract liabilities $ 96,374 $ 313 $ 96,687
Retained earnings and accumulated other comprehensive income $ 5,390 $ (86) $ 5,304
The effects of these restatements on our Consolidated Statements of Changes in Equity are as follows:
Shareholders’
retained
earnings
Total
equity
Balances, as at January 1, 2011 as previously published $ 6,489 $ 16,071
Increase (decrease) (16) (16)
Balances restated as at January 1, 2011 $ 6,473 $ 16,055
Balances, as at December 31, 2011 as previously published $ 5,219 $ 15,730
Increase (decrease) (86) (86)
Balances restated as at December 31, 2011 $ 5,133 $ 15,644
3. Held for Sale Classification and Discontinued Operation
On December 17, 2012, SLF Inc. and certain of its subsidiaries entered into a definitive stock purchase agreement with Delaware Life
Holdings, LLC (the “purchaser”), a Delaware limited liability company, pursuant to which we agreed to sell our U.S. Annuities business
and certain of our U.S. life insurance businesses to the purchaser for a base purchase price of US$1,350, which will be adjusted to
reflect the performance of the business through closing. The transaction will consist primarily of the sale of 100% of the shares of Sun
Life Assurance Company of Canada (U.S.) (“Sun Life (U.S.)”), which includes the U.S. domestic variable annuity, fixed annuity and
fixed indexed annuity products, corporate and bank-owned life insurance products and variable life insurance products. This
transaction will include the transfer of certain related operating assets, systems and employees that support these businesses. The
transaction is subject to regulatory approvals and other closing conditions and is expected to close by the end of the second quarter of
2013.
The assets and liabilities of the disposal group are comprised almost entirely of financial assets and liabilities that are not within the
scope of the measurement requirements of IFRS 5 Non-current Assets Held for Sale and Discontinued Operations. IFRS 5 does not
address the situation which arises when the carrying amount of scoped-in non-current assets are less than the amount by which a
102 Sun Life Financial Inc. Annual Report 2012 Notes to Consolidated Financial Statements