Ameriprise 2008 Annual Report Download - page 86
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General and administrative expense in 2007 relative to 2006 increased 3%, or $78 million, to $2.6 billion as a result of increased
expense related to professional and consultant fees representing increased spending on investment initiatives, expenses related to
Ameriprise Bank, increased hedge fund performance compensation and an increase in technology related costs, partially offset by a
decrease in expense in 2007 related to our defined contribution recordkeeping business which we sold in the second quarter of
2006.
Income Taxes
Our effective tax rate decreased to 19.9% in 2007 from 20.8% in 2006 primarily due to the impact of a $16 million tax benefit
related to the finalization of certain income tax audits and a $19 million tax benefit relating to our plan to begin repatriating earnings
of certain Threadneedle entities through dividends partially offset by lower levels of tax advantaged items relative to the level of
pretax income.
Results of Operations by Segment
Year Ended December 31, 2007 Compared to Year Ended December 31, 2006
The following tables present summary financial information by segment and reconciliation to consolidated totals derived from
Note 26 to our Consolidated Financial Statements for the years ended December 31, 2007 and 2006:
Years Ended December 31,
Percent Share Percent Share
2007 of Total 2006 of Total
(in millions, except percentages)
Total net revenues
Advice & Wealth Management $ 3,813 45 % $ 3,335 42 %
Asset Management 1,762 21 1,751 22
Annuities 2,206 26 2,202 27
Protection 1,985 23 1,891 24
Corporate & Other 24 — 28 —
Eliminations (1,234) (15) (1,181) (15)
Total net revenues $ 8,556 100 % $ 8,026 100 %
Total expenses
Advice & Wealth Management $ 3,528 47 % $ 3,139 43 %
Asset Management 1,455 19 1,498 21
Annuities 1,783 24 1,738 24
Protection 1,500 20 1,457 20
Corporate & Other 508 7 578 8
Eliminations (1,234) (17) (1,181) (16)
Total expenses $ 7,540 100 % $ 7,229 100 %
Pretax income (loss)
Advice & Wealth Management $ 285 28 % $ 196 25 %
Asset Management 307 30 253 32
Annuities 423 42 464 58
Protection 485 48 434 54
Corporate & Other (484) (48) (550) (69)
Pretax income $ 1,016 100 % $ 797 100 %
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