Segment Information

9 Months Ended

Sep. 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:

	September 30, 2016		December 31, 2015
	(in millions)
Advice & Wealth Management	$	11,996	$	11,338
Asset Management	7,436		7,931
Annuities	97,006		94,002
Protection	22,212		20,755
Corporate & Other	4,973		11,293
Total assets	$	143,623	$	145,319

	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
	(in millions)
Operating net revenues:
Advice & Wealth Management	$	1,272		$	1,245		$	3,720		$	3,747
Asset Management	740			782			2,203			2,421
Annuities	631			632			1,846			1,914
Protection	679			586			1,891			1,776
Corporate & Other	(15		)	(4		)	(20		)	(12		)
Eliminations (1)(2)	(353		)	(366		)	(1,042		)	(1,090		)
Total segment operating revenues	2,954			2,875			8,598			8,756
Net realized gains (losses)	6			(10		)	(5		)	5
Revenues attributable to CIEs	27			43			77			333
Market impact on IUL benefits, net	6			9			18			5
Market impact of hedges on investments	5			(31		)	(54		)	(32		)
Total net revenues per consolidated statements of operations (3)(4)	$	2,998		$	2,886		$	8,634		$	9,067

⁽¹⁾ Represents the elimination of intersegment revenues recognized for the three months ended September 30, 2016 and 2015 in each segment as follows: Advice & Wealth Management ($244 and $259, respectively); Asset Management ($12 and $11, respectively); Annuities ($85 and $85, respectively); Protection ($12 and $10, respectively); and Corporate & Other (nil and $1, respectively).

⁽²⁾ Represents the elimination of intersegment revenues recognized for the nine months ended September 30, 2016 and 2015 in each segment as follows: Advice & Wealth Management ($727 and $770, respectively); Asset Management ($33 and $33, respectively); Annuities ($247 and $255, respectively); Protection ($34 and $31, respectively); and Corporate & Other ($1 and $1, respectively).

⁽³⁾ Includes foreign net revenues of $162 million and $230 million for the three months ended September 30, 2016 and 2015, respectively.

⁽⁴⁾ Includes foreign net revenues of $500 million and $756 million for the nine months ended September 30, 2016 and 2015, respectively.

	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
	(in millions)
Operating earnings:
Advice & Wealth Management	$	231		$	219		$	657		$	649
Asset Management	155			180			452			568
Annuities	(68		)	176			202			498
Protection	11			25			117			148
Corporate & Other	(72		)	(42		)	(198		)	(161		)
Total segment operating earnings	257			558			1,230			1,702
Net realized gains (losses)	6			(10		)	(5		)	5
Net income (loss) attributable to CIEs	—			(45		)	(1		)	102
Market impact on variable annuity guaranteed benefits, net	(37		)	(5		)	(78		)	(75		)
Market impact on IUL benefits, net	7			(1		)	31			(2		)
Market impact of hedges on investments	5			(31		)	(54		)	(32		)
Integration and restructuring charges	—			(3		)	—			(4		)
Pretax income per consolidated statements of operations	$	238		$	463		$	1,123		$	1,696