Ameriprise 2009 Annual Report Download - page 78

Net revenues increased $3 million compared to the prior year. Net investment loss for the year ended December 31, 2009 reflects the
transfer priced interest income allocated to the Annuities and Protection segments for maintaining excess liquidity and the
period-over-period decline in short-term interest rates. The increase in other revenues compared to the prior year was due to a
$58 million gain on the repurchase of $135 million of our junior notes in 2009 compared to a gain of $19 million on the repurchase of
$43 million of our junior notes in 2008.
Total expenses decreased $96 million, or 26%, to $267 million for the year ended December 31, 2009. Interest and debt expense for the
year ended December 31, 2009 included a $13 million expense related to the early retirement of $450 million of our 5.35% senior notes
due 2010. General and administrative expense decreased $116 million, or 46%, compared to the prior year due to money market support
costs incurred in 2008, including $77 million related to the mark-to-market of Lehman Brothers securities that we purchased from
various 2a-7 money market mutual funds managed by our subsidiary, RiverSource Investments, LLC and $36 million for the cost of
guaranteeing specific client holdings in an unaffiliated money market mutual fund, and $60 million in restructuring charges in 2008,
partially offset by higher performance compensation accruals and legal expenses in 2009.
Consolidated Results of Operations
Year Ended December 31, 2008 Compared to Year Ended December 31, 2007
The following table presents our consolidated results of operations:
Years Ended December 31,
2008 2007 Change
(in millions, except percentages)
Revenues
Management and financial advice fees $ 2,899 $ 3,238 $ (339) (10)%
Distribution fees 1,565 1,762 (197) (11)
Net investment income 817 2,014 (1,197) (59)
Premiums 1,048 1,017 31 3
Other revenues 766 724 42 6
Total revenues 7,095 8,755 (1,660) (19)
Banking and deposit interest expense 179 249 (70) (28)
Total net revenues 6,916 8,506 (1,590) (19)
Expenses
Distribution expenses 1,912 2,011 (99) (5)
Interest credited to fixed accounts 790 847 (57) (7)
Benefits, claims, losses and settlement expenses 1,125 1,179 (54) (5)
Amortization of deferred acquisition costs 933 551 382 69
Interest and debt expense 109 112 (3) (3)
Separation costs — 236 (236) (100)
General and administrative expense 2,472 2,562 (90) (4)
Total expenses 7,341 7,498 (157) (2)
Pretax income (loss) (425) 1,008 (1,433) NM
Income tax provision (benefit) (333) 202 (535) NM
Net income (loss) (92) 806 (898) NM
Less: Net loss attributable to noncontrolling interests (54) (8) (46) NM
Net income (loss) attributable to Ameriprise Financial $ (38) $ 814 $ (852) NM
NM Not Meaningful.
ANNUAL REPORT 2009 63