Allstate 2011 Annual Report Download - page 245

DSI activity for Allstate Financial, which primarily relates to fixed annuities and interest-sensitive life contracts, for
the years ended December 31 was as follows:
($ in millions) 2010 2009 2008
Balance, beginning of year $ 195 $ 453 $ 295
Impact of adoption of new OTTI accounting
guidance before unrealized impact (1) — (35) —
Impact of adoption of new OTTI accounting
guidance effect of unrealized capital gains and
losses (2) —35 —
Sales inducements deferred 14 28 47
Amortization charged to income (27) (129) (53)
Effect of unrealized gains and losses (96) (157) 164
Balance, end of year $ 86 $ 195 $ 453
(1) The adoption of new OTTI accounting guidance on April 1, 2009 resulted in an adjustment to DSI to reverse previously
recorded DSI accretion related to realized capital losses that were reclassified to other comprehensive income upon
adoption.
(2) The adoption of new OTTI accounting guidance resulted in an adjustment to DSI due to the change in unrealized
capital gains and losses that occurred upon adoption on April 1, 2009 when previously recorded realized capital losses
were reclassified to other comprehensive income. The adjustment was recorded as an increase of the DSI balance and
unrealized capital gains and losses.
11. Capital Structure
Debt outstanding
Total debt outstanding as of December 31 consisted of the following:
($ in millions) 2010 2009
6.125% Senior Notes, due 2012 (1) $ 350 $ 350
7.50% Debentures, due 2013 250 250
5.00% Senior Notes, due 2014 (1) 650 650
6.20% Senior Notes, due 2014 (1) 300 300
6.75% Senior Debentures, due 2018 250 250
7.45% Senior Notes, due 2019 (1) 700 700
6.125% Senior Notes, due 2032 (1) 250 250
5.350% Senior Notes due 2033 (1) 400 400
5.55% Senior Notes due 2035 (1) 800 800
5.95% Senior Notes, due 2036 (1) 650 650
6.90% Senior Debentures, due 2038 250 250
6.125% Junior Subordinated Debentures, due 2067 500 500
6.50% Junior Subordinated Debentures, due 2067 500 500
Synthetic lease VIE obligations, floating rates, due 2011 42 42
Federal Home Loan Bank (‘‘FHLB’’) advances, due 2018 16 18
Total long-term debt 5,908 5,910
Short-term debt (2) ——
Total debt $ 5,908 $ 5,910
(1) Senior Notes are subject to redemption at the Company’s option in whole or in part at any time at the greater of either
100% of the principal amount plus accrued and unpaid interest to the redemption date or the discounted sum of the
present values of the remaining scheduled payments of principal and interest and accrued and unpaid interest to the
redemption date.
(2) The Company classifies any borrowings which have a maturity of twelve months or less at inception as short-term
debt.
165
Notes