The Company’s reporting segments are Advice & Wealth Management, Asset Management, Annuities, Protection and Corporate & Other. Prior period results have been restated for the retrospective adoption of the new revenue recognition accounting standard as discussed in Note 1 and Note 2.

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 adjusted 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, adjusted operating earnings is the Company’s measure of segment performance. Adjusted operating earnings should not be viewed as a substitute for GAAP pretax income. The Company believes the presentation of segment adjusted 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.

Adjusted operating earnings is defined as adjusted operating net revenues less adjusted operating expenses. Adjusted operating net revenues and adjusted 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. Adjusted 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. Adjusted 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 fixed index annuity benefits (net of hedges and the related DAC amortization), and the DSIC and DAC amortization offset to net realized investment gains or losses. The market impact on variable annuity guaranteed benefits, fixed index annuity 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, 2018		December 31, 2017
	(in millions)
Advice & Wealth Management	$	13,319	$	13,270
Asset Management	8,849		8,401
Annuities	95,802		98,276
Protection	17,728		18,039
Corporate & Other	9,064		9,494
Total assets	$	144,762	$	147,480



	Three Months Ended March 31,
	2018		2017
	(in millions)
Adjusted operating net revenues:
Advice & Wealth Management	$	1,501	$	1,321
Asset Management	778		725
Annuities	613		608
Protection	519		521
Corporate & Other	57		57
Less: Eliminations ⁽¹⁾	357		347
Total segment adjusted operating net revenues	3,111		2,885
Net realized gains (losses)	6		17
Revenue attributable to CIEs	22		22
Market impact on IUL benefits, net	13		1
Market impact of hedges on investments	16		1
Total net revenues per consolidated statements of operations	$	3,168	$	2,926

⁽¹⁾

Represents the elimination of intersegment revenues recognized for the three months ended March 31, 2018 and 2017 in each segment as follows: Advice & Wealth Management ($240 million and $237 million, respectively); Asset Management ($12 million and $11 million, respectively); Annuities ($90 million and $84 million, respectively); Protection ($16 million and $15 million, respectively); and Corporate & Other ($(1) million and nil, respectively).



	Three Months Ended March 31,
	2018			2017
	(in millions)
Adjusted operating earnings:
Advice & Wealth Management	$	316		$	248
Asset Management	195			150
Annuities	132			139
Protection	70			63
Corporate & Other	(56		)	(80		)
Total segment adjusted operating earnings	657			520
Net realized gains (losses)	6			16
Net income (loss) attributable to CIEs	—			1
Market impact on variable annuity guaranteed benefits, net	(5		)	(63		)
Market impact on IUL benefits, net	25			—
Market impact of hedges on investments	16			1
Integration and restructuring charges	(3		)	—
Pretax income per consolidated statements of operations	$	696		$	475