Segment Information

3 Months Ended

Mar. 31, 2016

Segment Reporting [Abstract]

Segment Information[Text Block]

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

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.

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 pretax income. 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.

Operating earnings is defined as operating net revenues less operating expenses. Operating net revenues and operating expenses exclude 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 (net of unearned revenue amortization and the reinsurance accrual) 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) and the DSIC and DAC amortization offset to net realized investment gains or losses. The market impact on variable annuity guaranteed benefits and IUL benefits includes changes in embedded derivative values caused by changes in financial market conditions, net of changes in economic hedge values and unhedged items including the difference between assumed and actual underlying separate account investment performance, fixed income credit exposures, transaction costs and certain policyholder contract elections, net of related impacts on DAC and DSIC amortization. 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 embedded derivative 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:

	March 31, 2016		December 31, 2015
	(in millions)
Advice & Wealth Management	$	11,534	$	11,338
Asset Management	7,755		7,931
Annuities	95,156		94,002
Protection	21,082		20,755
Corporate & Other	4,723		11,293
Total assets	$	140,250	$	145,319

	Three Months Ended March 31,
	2016			2015
	(in millions)
Operating net revenues:
Advice & Wealth Management	$	1,198		$	1,228
Asset Management	724			807
Annuities	596			631
Protection	608			590
Corporate & Other	2			(6		)
Eliminations (1)	(340		)	(352		)
Total segment operating revenues	2,788			2,898
Net realized gains (losses)	(16		)	10
Revenues attributable to CIEs	24			149
Market impact on IUL benefits, net	9			(4		)
Market impact of hedges on investments	(40		)	—
Total net revenues per consolidated statements of operations (2)	$	2,765		$	3,053

⁽¹⁾ Represents the elimination of intersegment revenues recognized for the three months ended March 31, 2016 and 2015 in each segment as follows: Advice & Wealth Management ($239 and $247, respectively); Asset Management ($11 and $11, respectively); Annuities ($79 and $84, respectively); Protection ($11 and $10, respectively); and Corporate & Other (nil and nil, respectively).

⁽²⁾ Includes foreign net revenues of $172 million and $233 million for the three months ended March 31, 2016 and 2015, respectively.

	Three Months Ended March 31,
	2016			2015
	(in millions)
Operating earnings:
Advice & Wealth Management	$	205		$	210
Asset Management	149			191
Annuities	124			172
Protection	69			51
Corporate & Other	(50		)	(62		)
Total segment operating earnings	497			562
Net realized gains (losses)	(16		)	10
Net income (loss) attributable to CIEs	(2		)	86
Market impact on variable annuity guaranteed benefits, net	17			(34		)
Market impact on IUL benefits, net	19			(6		)
Market impact of hedges on investments	(40		)	—
Pretax income per consolidated statements of operations	$	475		$	618