Segment Information

3 Months Ended

Mar. 31, 2013

Segment Information

Segment Information

17.  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 gains or losses. Operating expenses also exclude the market impact on variable annuity guaranteed living benefits (net of hedges and the related DSIC and DAC amortization). The market impact on variable annuity guaranteed living 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. Integration and restructuring charges primarily relate to the Company’s acquisition of the long-term asset management business of Columbia Management Group on April 30, 2010. The costs include system integration costs, proxy and other regulatory filing costs, employee reduction and retention costs and investment banking, legal and other acquisition costs. Beginning in the second quarter of 2012, integration and restructuring charges also include expenses related to the Company’s transition of its federal savings bank subsidiary, Ameriprise Bank, FSB, to a limited powers national trust bank.

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

	March 31, 2013		December 31, 2012
	(in millions)
Advice & Wealth Management	$	8,938	$	8,962
Asset Management	6,455		6,267
Annuities	93,249		91,587
Protection	19,537		19,065
Corporate & Other	9,117		8,848
Total assets	$	137,296	$	134,729

	Three Months Ended March 31,
	2013			2012
	(in millions)
Operating net revenues:
Advice & Wealth Management	$	1,018		$	954
Asset Management	746			711
Annuities	630			628
Protection	538			522
Corporate & Other	(3		)	8
Eliminations (1)	(321		)	(312		)
Total segment operating net revenues	2,608			2,511
Net realized gains (losses)	1			(2)
Revenues of consolidated investment entities	82			52
Total net revenues per consolidated statements of operations	$	2,691		$	2,561

(1) Represents the elimination of intersegment revenues recognized for the three months ended March 31, 2013 and 2012 in each segment as follows:Advice & Wealth Management ($228 and $229, respectively); Asset Management ($9 and $10, respectively); Annuities ($73 and $63, respectively); Protection ($10 and $9, respectively); and Corporate & Other ($1 and $1, respectively).

	Three Months Ended March 31,
	2013			2012
	(in millions)
Operating earnings:
Advice & Wealth Management	$	131		$	94
Asset Management	144			131
Annuities	156			189
Protection	110			107
Corporate & Other	(81		)	(65		)
Total segment operating earnings	460			456
Net realized gains (losses)	1			(2		)
Net income attributable to noncontrolling interests	30			4
Market impact on variable annuity living benefits	(2		)	(113		)
Integration and restructuring charges	(2		)	(23		)
Income from continuing operations before income tax provision per consolidated statements of operations	$	487		$	322