Segment Information

6 Months Ended

Jun. 30, 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:

	June 30, 2016		December 31, 2015
	(in millions)
Advice & Wealth Management	$	11,738	$	11,338
Asset Management	8,318		7,931
Annuities	96,009		94,002
Protection	22,026		20,755
Corporate & Other	4,593		11,293
Total assets	$	142,684	$	145,319

	Three Months Ended June 30,						Six Months Ended June 30,
	2016			2015			2016			2015
	(in millions)
Operating net revenues:
Advice & Wealth Management	$	1,250		$	1,274		$	2,448		$	2,502
Asset Management	739			832			1,463			1,639
Annuities	619			651			1,215			1,282
Protection	604			600			1,212			1,190
Corporate & Other	(7		)	(2		)	(5		)	(8		)
Eliminations (1)(2)	(349		)	(372		)	(689		)	(724		)
Total segment operating revenues	2,856			2,983			5,644			5,881
Net realized gains (losses)	5			5			(11		)	15
Revenues attributable to CIEs	26			141			50			290
Market impact on IUL benefits, net	3			—			12			(4		)
Market impact of hedges on investments	(19		)	(1		)	(59		)	(1		)
Total net revenues per consolidated statements of operations (3)(4)	$	2,871		$	3,128		$	5,636		$	6,181

⁽¹⁾ Represents the elimination of intersegment revenues recognized for the three months ended June 30, 2016 and 2015 in each segment as follows: Advice & Wealth Management ($244 million and $264 million, respectively); Asset Management ($10 million and $11 million, respectively); Annuities ($83 million and $86 million, respectively); Protection ($11 million and $11 million, respectively); and Corporate & Other ($1 million and nil, respectively).

⁽²⁾ Represents the elimination of intersegment revenues recognized for the six months ended June 30, 2016 and 2015 in each segment as follows: Advice & Wealth Management ($483 million and $511 million, respectively); Asset Management ($21 million and $22 million, respectively); Annuities ($162 million and $170 million, respectively); Protection ($22 million and $21 million, respectively); and Corporate & Other ($1 million and nil, respectively).

⁽³⁾ Includes foreign net revenues of $166 million and $293 million for the three months ended June 30, 2016 and 2015, respectively.

⁽⁴⁾ Includes foreign net revenues of $338 million and $526 million for the six months ended June 30, 2016 and 2015, respectively.

	Three Months Ended June 30,						Six Months Ended June 30,
	2016			2015			2016			2015
	(in millions)
Operating earnings:
Advice & Wealth Management	$	221		$	220		$	426		$	430
Asset Management	148			197			297			388
Annuities	146			150			270			322
Protection	37			72			106			123
Corporate & Other	(76		)	(57		)	(126		)	(119		)
Total segment operating earnings	476			582			973			1,144
Net realized gains (losses)	5			5			(11		)	15
Net income (loss) attributable to CIEs	1			61			(1		)	147
Market impact on variable annuity guaranteed benefits, net	(58		)	(36		)	(41		)	(70		)
Market impact on IUL benefits, net	5			5			24			(1		)
Market impact of hedges on investments	(19		)	(1		)	(59		)	(1		)
Integration and restructuring charges	—			(1		)	—			(1		)
Pretax income per consolidated statements of operations	$	410		$	615		$	885		$	1,233