Ameriprise 2010 Annual Report Download - page 96

The following table presents the components of the adjustments in the table above:
Years Ended December 31,
2009 2008
Other Total Other Total
CIEs Adjustments(1) Adjustments CIEs Adjustments(1) Adjustments
(in millions)
Revenues
Net investment income (loss) $ 2 $ — $ 2 $ — $ (3) $ (3)
Other revenues 28 — 28 (46) — (46)
Total revenues 30 — 30 (46) (3) (49)
Banking and deposit interest expense 6 — 6 1 — 1
Total net revenues 24 — 24 (47) (3) (50)
Expenses
Distribution expenses — — — — — —
Interest and debt expense — — — — — —
General and administrative expense 9 4 13 7 62 69
Total expenses 9 4 13 7 62 69
Pretax income (loss) 15 (4) 11 (54) (65) (119)
Less: Net income (loss) attributable to
noncontrolling interests 15 — 15 (54) — (54)
Pretax loss attributable to Ameriprise Financial $ — $ (4) $ (4) $ — $ (65) $ (65)
(1) Other adjustments include net realized gains or losses and integration and restructuring charges.
Our Corporate & Other segment pretax loss attributable to Ameriprise Financial was $265 million for the year ended
December 31, 2009 compared to $364 million in the prior year. Our Corporate & Other segment pretax operating loss
attributable to Ameriprise Financial, which excludes revenues and expenses of the CIEs, net realized gains or losses and
integration and restructuring charges, was $261 million for the year ended December 31, 2009 compared to $299 million
in the prior year.
Net revenues were $26 million for the year ended December 31, 2009 compared to a negative $48 million for the prior
year. Operating net revenues, which exclude net realized gains or losses and revenues of the CIEs, remained constant at
$2 million for the year ended December 31, 2009. 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. Other revenues were $90 million for the year ended
December 31, 2009 compared to a negative $20 million for the prior year reflecting the impact of the CIEs. Operating
other revenues, which exclude the impact of the CIEs, increased $36 million to $62 million for the year ended
December 31, 2009 due to a $58 million gain on the repurchase of $135 million of our junior notes in 2009 compared
to a $19 million gain on the repurchase of $43 million of our junior notes in 2008.
Total expenses decreased $94 million, or 25%, to $276 million for the year ended December 31, 2009. Operating
expenses, which exclude expenses of the CIEs and integration and restructuring charges, decreased $38 million, or 13%,
to $263 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 senior notes due 2010.
General and administrative expense decreased $114 million, or 44%, to $146 million for the year ended December 31,
2009. Integration and restructuring charges in 2009 were $4 million compared to $62 million in 2008. Operating general
and administrative expense, which excludes expenses of the CIEs and integration and restructuring charges, decreased
$58 million, or 30%, to $133 million for the year ended December 31, 2009 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, partially offset by higher
performance compensation accruals and legal expenses in 2009.
Fair Value Measurements
We report certain assets and liabilities at fair value; specifically, separate account assets, derivatives, embedded
derivatives, properties held by our consolidated property funds, and most investments and cash equivalents. Fair value
assumes the exchange of assets or liabilities occurs in orderly transactions. Companies are not permitted to use market
prices that are the result of a forced liquidation or distressed sale. We include actual market prices, or observable inputs,
in our fair value measurements to the extent available. Broker quotes are obtained when quotes from pricing services are
not available. We validate prices obtained from third parties through a variety of means such as: price variance analysis,
subsequent sales testing, stale price review, price comparison across pricing vendors and due diligence reviews of vendors.
80