Ameriprise 2010 Annual Report Download - page 87

1%, to $2.4 billion for the year ended December 31, 2009. Operating general and administrative expense in 2009
included ongoing costs resulting from our 2008 acquisitions and increases in hedge fund performance compensation, our
performance compensation pool and legal expenses, partially offset by cost controls. Operating general and administrative
expense in 2008 included a $77 million expense related to the mark-to-market of Lehman Brothers securities that we
purchased from various 2a-7 money market mutual funds managed by RiverSource Investments, LLC and $36 million in
costs related to guaranteeing specific client holdings in an unaffiliated money market mutual fund. The positive impact of
foreign currency translation on general and administrative expense in 2009 partially offset the negative impact of foreign
currency translation on management and financial advice fees.
Income Taxes
Our effective tax rate on net income (loss) including net income (loss) attributable to noncontrolling interests was 19.9%
for the year ended December 31, 2009, compared to 78.8% for the year ended December 31, 2008. Our effective tax
rate on net income (loss) excluding net income (loss) attributable to noncontrolling interests was 20.2% for the year ended
December 31, 2009, compared to 90.2% for the year ended December 31, 2008. Our effective tax rate for the year
ended December 31, 2008 reflects the level of pretax income relative to tax advantaged items and $79 million in tax
benefits related to changes in the status of current audits and closed audits, tax planning initiatives, and the finalization of
prior year tax returns.
Results of Operations by Segment
Year Ended December 31, 2009 Compared to Year Ended December 31, 2008
The following table presents summary financial information by segment:
Years Ended December 31,
2009 2008
Less: Less:
GAAP Adjustments(1) Operating GAAP Adjustments(1) Operating
(in millions)
Advice & Wealth Management
Net revenues $ 3,216 $ (15) $ 3,231 $ 3,110 $ (333) $ 3,443
Expenses 3,250 64 3,186 3,259 12 3,247
Pretax income (loss) $ (34) $ (79) $ 45 $ (149) $ (345) $ 196
Asset Management
Net revenues $ 1,346 $ (3) $ 1,349 $ 1,340 $ 1 $ 1,339
Expenses 1,286 30 1,256 1,261 5 1,256
Pretax income $ 60 $ (33) $ 93 $ 79 $ (4) $ 83
Annuities
Net revenues $ 2,265 $ 44 $ 2,221 $ 1,618 $ (350) $ 1,968
Expenses 1,617 — 1,617 1,905 — 1,905
Pretax income (loss) $ 648 $ 44 $ 604 $ (287) $ (350) $ 63
Protection
Net revenues $ 1,971 $ 27 $ 1,944 $ 1,954 $ (92) $ 2,046
Expenses 1,475 — 1,475 1,602 — 1,602
Pretax income $ 496 $ 27 $ 469 $ 352 $ (92) $ 444
Corporate & Other
Net revenues $ 26 $ 24 $ 2 $ (48) $ (50) $ 2
Expenses 276 13 263 370 69 301
Pretax loss $ (250) $ 11 $ (261) $ (418) $ (119) $ (299)
Less: Pretax income (loss) attributable to
noncontrolling interests 15 15 — (54) (54) —
Pretax loss attributable to Ameriprise
Financial $ (265) $ (4) $ (261) $ (364) $ (65) $ (299)
Eliminations
Net revenues $ (1,019) $ (2) $ (1,017) $ (1,056) $ (2) $ (1,054)
Expenses (1,019) (2) (1,017) (1,056) (2) (1,054)
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.
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