Segment Information

6 Months Ended

Jun. 30, 2015

Segment Reporting [Abstract]

Segment Information[Text Block]

Segment Information

The Company’s segments are Advice & Wealth Management, Asset Management, Annuities, Protection and Corporate & Other.

Management uses segment operating measures in goal setting, as a basis for determining employee compensation and in evaluating performance on a basis comparable to that used by some securities analysts and investors. Consistent with GAAP accounting guidance for segment reporting, operating earnings is the Company’s measure of segment performance. Operating earnings should not be viewed as a substitute for GAAP income from continuing operations before income tax provision. The Company believes the presentation of segment operating earnings as the Company measures it for management purposes enhances the understanding of its business by reflecting the underlying performance of its core operations and facilitating a more meaningful trend analysis.

The accounting policies of the segments are the same as those of the Company, except for operating adjustments defined below, the method of capital allocation, the accounting for gains (losses) from intercompany revenues and expenses and not providing for income taxes on a segment basis.

Operating earnings is defined as operating net revenues less operating expenses. Operating net revenues and operating expenses exclude the results of discontinued operations, the market impact on IUL benefits (net of hedges and the related DAC amortization, unearned revenue amortization, and the reinsurance accrual), integration and restructuring charges and the impact of consolidating investment entities. Operating net revenues also exclude net realized investment gains or losses and the market impact of hedges to offset interest rate changes on unrealized gains or losses for certain investments. Operating expenses also exclude the market impact on variable annuity guaranteed benefits (net of hedges and the related DSIC and DAC amortization). The market impact on variable annuity guaranteed benefits and IUL benefits includes changes in liability values caused by changes in financial market conditions, net of changes in associated economic hedge values. The market impact also includes certain valuation adjustments made in accordance with FASB Accounting Standards Codification 820, Fair Value Measurements and Disclosures, including the impact on liability values of discounting projected benefits to reflect a current estimate of the Company’s life insurance subsidiary’s nonperformance spread.

The following tables summarize selected financial information by segment and reconcile segment totals to those reported on the consolidated financial statements:

	June 30,   2015		December 31,   2014
	(in millions)
Assets:
Advice & Wealth Management	$	10,630	$	10,220
Asset Management	7,935		7,509
Annuities	97,406		98,535
Protection	20,955		20,779
Corporate & Other	11,880		11,767
Total assets	$	148,806	$	148,810

	Three Months Ended   June 30,						Six Months Ended   June 30,
	2015			2014			2015			2014
	(in millions)
Operating net revenues:
Advice & Wealth Management	$	1,274		$	1,198		$	2,502		$	2,347
Asset Management	832			844			1,639			1,651
Annuities	651			651			1,282			1,287
Protection	600			579			1,190			1,134
Corporate & Other	(2		)	(2		)	(8		)	4
Eliminations(1) (2)	(372		)	(355		)	(724		)	(696		)
Total segment operating revenues	2,983			2,915			5,881			5,727
Net realized gains	5			1			15			6
Revenues attributable to CIEs	141			160			290			337
Market impact on IUL benefits, net	—			(4		)	(4		)	(2		)
Market impact of hedges on investments	(1		)	—			(1		)	—
Total net revenues per consolidated statements of operations	$	3,128		$	3,072		$	6,181		$	6,068

⁽¹⁾ Represents the elimination of intersegment revenues recognized for the three months ended June 30, 2015 and 2014 in each segment as follows: Advice & Wealth Management ($264 and $250, respectively); Asset Management ($11 and $11, respectively); Annuities ($86 and $83, respectively); Protection ($11 and $10, respectively); and Corporate & Other (nil and $1, respectively).

⁽²⁾ Represents the elimination of intersegment revenues recognized for the six months ended June 30, 2015 and 2014 in each segment as follows: Advice & Wealth Management ($511 and $490, respectively); Asset Management ($22 and $22, respectively); Annuities ($170 and $163, respectively); Protection ($21 and $20, respectively); and Corporate & Other (nil and $1, respectively).

	Three Months Ended   June 30,						Six Months Ended   June 30,
	2015			2014			2015			2014
	(in millions)
Operating earnings:
Advice & Wealth Management	$	220		$	194		$	430		$	375
Asset Management	197			199			388			382
Annuities	150			170			322			346
Protection	72			91			123			150
Corporate & Other	(57		)	(75		)	(119		)	(130		)
Total segment operating earnings	582			579			1,144			1,123
Net realized gains	5			1			15			6
Net income attributable to noncontrolling interests	61			93			147			208
Market impact on variable annuity guaranteed benefits, net	(36		)	(54		)	(70		)	(69		)
Market impact on IUL benefits, net	5			—			(1		)	1
Market impact of hedges on investments	(1		)	—			(1		)	—
Integration and restructuring charges	(1		)	—			(1		)	—
Income from continuing operations before income tax provision per consolidated statements of operations	$	615		$	619		$	1,233		$	1,269