Voya 2014 Annual Report Download - page 262

Voya Financial, Inc.
Notes to the Consolidated Financial Statements
(Dollar amounts in millions, unless otherwise stated)
Repurchase”) (the November 2014 Offering and the November 2014 Direct Share Repurchase collectively, the
“November 2014 Transactions”). Upon completion of the November 2014 Transactions, ING Group’s ownership
of Voya Financial, Inc. was reduced to 19%. Pursuant to an agreement with the European Union, ING Group is
required to divest its remaining ownership stake in the Company by the end of 2016.
Basis of Presentation
On April 11, 2013, the Company filed an amended restated certificate of incorporation that provides for an
authorized capital stock consisting of 1,000,000,000 shares, of which 900,000,000 shares (par value $0.01 per
share) are designated as Common stock and 100,000,000 shares (par value $0.01 per share) are designated as
preferred stock. In addition, the amended and restated certificate of incorporation effected a 2,295.248835-for-1
split of the Company’s then outstanding Common stock, resulting in 230,079,120 shares of Common stock
issued, including 79,120 shares of Treasury stock, and 230,000,000 shares of Common stock outstanding and
held by ING International, prior to the IPO. The accompanying Consolidated Financial Statements and Notes to
the Consolidated Financial Statements give retroactive effect to the stock split for all periods presented. There are
no preferred shares issued or outstanding.
The accompanying Consolidated Financial Statements of the Company have been prepared in accordance with
accounting principles generally accepted in the United States (“U.S. GAAP”).
The Consolidated Financial Statements include the accounts of Voya Financial, Inc. and its subsidiaries, as well
as partnerships (voting interest entities (“VOEs”)) in which the Company has control and variable interest
entities (“VIEs”) for which the Company is the primary beneficiary. See the Consolidated Investment Entities
Note to these Consolidated Financial Statements.
Intercompany transactions and balances have been eliminated in consolidation.
Significant Accounting Policies
Estimates and Assumptions
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and
liabilities as of the date of the Consolidated Financial Statements and the reported amounts of revenues and
expenses during the reporting period. Those estimates are inherently subject to change and actual results could
differ from those estimates.
The Company has identified the following accounts and policies as the most significant in that they involve a
higher degree of judgment, are subject to a significant degree of variability and/or contain significant accounting
estimates:
Reserves for future policy benefits, deferred policy acquisition costs (“DAC”), value of business
acquired (“VOBA”) and other intangibles (collectively, “DAC/VOBA and other intangibles”),
valuation of investments and derivatives, impairments, income taxes, contingencies and employee
benefit plans
Fair Value Measurement
The Company measures the fair value of its financial assets and liabilities based on assumptions used by market
participants in pricing the asset or liability, which may include inherent risk, restrictions on the sale or use of an
asset or nonperformance risk, which is the risk that the issuing subsidiary will not fulfill its obligation. The
239