The Hartford 2013 Annual Report Download - page 202

F-66
8. Deferred Policy Acquisition Costs and Present Value of Future Profits
Changes in the DAC balance are as follows: For the years ended December 31,
2013 2012 2011
Balance, beginning of period $ 5,725 $ 6,556 $ 7,473
Deferred Costs 1,330 1,639 1,696
Amortization — DAC (1,615)(1,844) (2,025)
Amortization — Unlock benefit (charge), pre-tax [1] (1,086)(144) (419)
Amortization — DAC related to business dispositions [2] [3] (2,229) — —
Adjustments to unrealized gains and losses on securities available-for-sale
and other [4] 122 (364) (240)
Effect of currency translation (86)(118) 71
Balance, end of period $ 2,161 $ 5,725 $ 6,556
[1] Includes Unlock charge of $887 in 2013 related to elimination of future estimated gross profits on the Japan variable annuity block due to the
increased costs associated with expanding the Japan variable annuity hedging program.
[2] Includes accelerated amortization of $352 and $2,374 recognized upon the sale of the Retirement Plans and Individual Life businesses,
respectively, in 2013. For further information, see Note 2 - Business Dispositions of Notes to Consolidated Financial Statements.
[3] Includes previously unrealized gains on securities AFS of $148 and $349 recognized upon the sale of the Retirement Plans and Individual Life
businesses, respectively, in 2013.
[4] Other includes a $16 reduction of the DAC asset as a result of the sale of assets used to administer the Company's PPLI business in 2012. The
reduction is directly attributable to this transaction as it results in lower future estimated gross profits than originally estimated on these products.
As of December 31, 2013, estimated future net amortization expense of present value of future profits for the succeeding five years is $8,
$7, $6, $5 and $5 in 2014, 2015, 2016, 2017 and 2018, respectively.
Table of Contents THE HARTFORD FINANCIAL SERVICES GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)