Ameriprise 2010 Annual Report Download - page 76

primarily reflected continued outflows in Zurich-related portfolios. Investment track records remained strong across one-,
three- and five-year periods.
Management believes that operating measures, which exclude net realized gains or losses and integration charges for our
Asset Management segment, best reflect the underlying performance of our 2010 and 2009 core operations and facilitate
a more meaningful trend analysis. See our discussion on the use of these non-GAAP measures in the Overview section
above.
The following table presents the results of operations of our Asset Management segment:
Years Ended December 31,
2010 2009
Less: Less:
GAAP Adjustments(1) Operating GAAP Adjustments(1) Operating Operating Change
(in millions, except percentages)
Revenues
Management and financial advice
fees $ 1,979 $ — $ 1,979 $ 1,106 $ — $ 1,106 $ 873 79%
Distribution fees 358 — 358 216 — 216 142 66
Net investment income 17 3 14 18 (3) 21 (7) (33)
Other revenues 15 — 15 8 — 8 7 88
Total revenues 2,369 3 2,366 1,348 (3) 1,351 1,015 75
Banking and deposit interest
expense 1 — 1 2 — 2 (1) (50)
Total net revenues 2,368 3 2,365 1,346 (3) 1,349 1,016 75
Expenses
Distribution expenses 734 — 734 371 — 371 363 98
Amortization of deferred
acquisition costs 20 — 20 21 — 21 (1) (5)
General and administrative
expense 1,296 95 1,201 894 30 864 337 39
Total expenses 2,050 95 1,955 1,286 30 1,256 699 56%
Pretax income $ 318 $ (92) $ 410 $ 60 $ (33) $ 93 $ 317 NM
NM Not Meaningful.
(1) Adjustments include net realized gains or losses and integration charges.
Our Asset Management segment pretax income was $318 million for the year ended December 31, 2010 compared to
$60 million for the prior year. Our Asset Management segment pretax operating income, which excludes net realized gains
or losses and integration charges, was $410 million for the year ended December 31, 2010 compared to $93 million for
the prior year reflecting eight months of earnings from business acquired in the Columbia Management Acquisition and
market appreciation. Pretax margin for 2010 was 13.4% and operating pretax margin was 17.3%.
Net Revenues
Net revenues increased $1.0 billion, or 76%, to $2.4 billion for the year ended December 31, 2010 compared to
$1.3 billion for the prior year driven by an increase in asset-based management fees and distribution fees due to growth in
assets from the Columbia Management Acquisition and market appreciation.
Management and financial advice fees increased $873 million, or 79%, to $2.0 billion for the year ended December 31,
2010 compared to $1.1 billion for the prior year primarily due to growth in assets from the Columbia Management
Acquisition and market appreciation, partially offset by lower hedge fund performance fees. The daily average S&P 500
Index increased 20% compared to the prior year. Total Asset Management managed assets increased $213.7 billion, or
88%, to $456.8 billion at December 31, 2010 compared to the prior year primarily due to the Columbia Management
Acquisition and market appreciation, partially offset by net outflows.
Distribution fees increased $142 million, or 66%, to $358 million for the year ended December 31, 2010 compared to
$216 million for the prior year primarily driven by growth in assets from the Columbia Management Acquisition and market
appreciation.
Expenses
Total expenses increased $764 million, or 59%, to $2.1 billion for the year ended December 31, 2010 compared to
$1.3 billion for the prior year. Operating expenses, which exclude integration charges, increased $699 million, or 56%, to
$2.0 billion for the year ended December 31, 2010 compared to $1.3 billion for the prior year due to an increase in
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