Voya 2014 Annual Report Download - page 282

Voya Financial, Inc.
Notes to the Consolidated Financial Statements
(Dollar amounts in millions, unless otherwise stated)
arrangements for which the total amount of the obligation within the scope of this guidance is fixed at the
reporting date, as the sum of (1) the amount the reporting entity agreed to pay on the basis of its arrangement
among its co-obligors and (2) any additional amount it expects to pay on behalf of its co-obligors. ASU 2013-04
also requires an entity to disclose the nature and amount of the obligation, as well as other information about
those obligations.
The provisions of ASU 2013-04 were adopted by the Company on January 1, 2014. The adoption had no effect
on the Company’s financial condition, results of operations or cash flows, as the Company did not have any fixed
obligations under joint and several liability arrangements during 2014.
Fees Paid to the Federal Government by Health Insurers
In July 2011, the FASB issued ASU 2011-06, “Other Expenses (ASC Topic 720): Fees Paid to the Federal
Government by Health Insurers” (“ASU 2011-06”), which specifies how health insurers should recognize and
classify the annual fee imposed by the Patient Protection and Affordable Care Act as amended by the Health
Care Education Reconciliation Act (the “Acts”). The liability for the fee should be estimated and recorded in full
at the time the entity provides qualifying health insurance in the year in which the fee is payable, with a
corresponding deferred cost that is amortized to expense.
The provisions of ASU 2011-06 were adopted by the Company on January 1, 2014, when the fee initially became
effective. The adoption of ASU 2011-06 had no effect on the Company’s financial condition, results of
operations or cash flows, as the amount of net premium written for qualifying health insurance by the Company
in 2014 was below the $25.0 threshold as defined by the Acts and, thus, not subject to the fee.
Future Adoption of Accounting Pronouncements
Consolidation
In February 2015, the FASB issued ASU 2015-02, “Consolidation (ASC Topic 810): Amendments to the
Consolidation Analysis” (“ASU 2015-02”), which:
• Modifies the evaluation of whether limited partnerships and similar legal entities are VIEs or
VOEs, including the requirement to consider the rights of all equity holders at risk to determine if they
have the power to direct the entity’s most significant activities.
• Eliminates the presumption that a general partner should consolidate a limited partnership. Limited
partnerships and similar entities will be VIEs unless the limited partners hold substantive kick-out
rights or participating rights.
• Affects the consolidation analysis of reporting entities that are involved with VIEs, particularly those
that have fee arrangements and related party relationships.
• Provides a new scope exception for registered money market funds and similar unregistered money
market funds, and ends the deferral granted to investment companies from applying the VIE guidance.
The provisions of ASU 2015-02 are effective for annual periods, and for interim periods within those annual
periods, beginning after December 15, 2015, with early adoption permitted, using either a retrospective or
modified retrospective approach. The Company is currently in the process of determining the impact of the
adoptions of the provisions of ASU 2015-02.
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