Ameriprise 2010 Annual Report Download - page 71

Results of Operations by Segment
Year Ended December 31, 2010 Compared to Year Ended December 31, 2009
The following table presents summary financial information by segment:
Years Ended December 31,
2010 2009
Less: Less:
GAAP Adjustments(1) Operating GAAP Adjustments(1) Operating
(in millions)
Advice & Wealth Management
Net revenues $ 3,810 $ 1 $ 3,809 $ 3,216 $ (15) $ 3,231
Expenses 3,509 7 3,502 3,250 64 3,186
Pretax income (loss) $ 301 $ (6) $ 307 $ (34) $ (79) $ 45
Asset Management
Net revenues $ 2,368 $ 3 $ 2,365 $ 1,346 $ (3) $ 1,349
Expenses 2,050 95 1,955 1,286 30 1,256
Pretax income $ 318 $ (92) $ 410 $ 60 $ (33) $ 93
Annuities
Net revenues $ 2,500 $ 9 $ 2,491 $ 2,265 $ 44 $ 2,221
Expenses 1,852 — 1,852 1,617 — 1,617
Pretax income $ 648 $ 9 $ 639 $ 648 $ 44 $ 604
Protection
Net revenues $ 2,055 $ 1 $ 2,054 $ 1,971 $ 27 $ 1,944
Expenses 1,651 — 1,651 1,475 — 1,475
Pretax income $ 404 $ 1 $ 403 $ 496 $ 27 $ 469
Corporate & Other
Net revenues $ 423 $ 419 $ 4 $ 26 $ 24 $ 2
Expenses 500 246 254 276 13 263
Pretax loss $ (77) $ 173 $ (250) $ (250) $ 11 $ (261)
Less: Pretax income attributable to
noncontrolling interests 163 163 — 15 15 —
Pretax loss attributable to Ameriprise
Financial $ (240) $ 10 $ (250) $ (265) $ (4) $ (261)
Eliminations
Net revenues $ (1,180) $ (38) $ (1,142) $ (1,019) $ (2) $ (1,017)
Expenses (1,180) (38) (1,142) (1,019) (2) (1,017)
Pretax income $ — $ — $ — $ — $ — $ —
(1) Includes the elimination of management fees we earn for services provided to the CIEs and the related expense, revenues and
expenses of the CIEs, net realized gains or losses and integration and restructuring charges.
Advice & Wealth Management
Our Advice & Wealth Management segment provides financial planning and advice, as well as full service brokerage and
banking services, primarily to retail clients through our financial advisors. Our affiliated financial advisors utilize a diversified
selection of both affiliated and non-affiliated products to help clients meet their financial needs. A significant portion of
revenues in this segment is fee-based, driven by the level of client assets, which is impacted by both market movements
and net asset flows. We also earn net investment income on owned assets primarily from certificate and banking products.
This segment earns revenues (distribution fees) for distributing non-affiliated products and earns intersegment revenues
(distribution fees) for distributing our affiliated products and services provided to our retail clients. Intersegment expenses
for this segment include expenses for investment management services provided by the Asset Management segment.
In addition to purchases of affiliated and non-affiliated mutual funds and other securities on a stand-alone basis, clients
may purchase mutual funds, among other securities, in connection with investment advisory fee-based ‘‘wrap account’’
programs or services, and pay fees based on a percentage of their assets.
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