Ameriprise 2011 Annual Report Download - page 79

The following table presents the results of operations of our Asset Management segment:
Years Ended December 31,
2011 2010
Less: Less:
GAAP Adjustments(1) Operating GAAP Adjustments(1) Operating Operating Change
(in millions)
Revenues
Management and financial advice
fees $ 2,434 $ — $ 2,434 $ 1,979 $ — $ 1,979 $ 455 23%
Distribution fees 450 — 450 358 — 358 92 26
Net investment income 14 3 11 17 3 14 (3) (21)
Other revenues 5 — 5 15 — 15 (10) (67)
Total revenues 2,903 3 2,900 2,369 3 2,366 534 23
Banking and deposit interest
expense 3 — 3 1 — 1 2 NM
Total net revenues 2,900 3 2,897 2,368 3 2,365 532 22
Expenses
Distribution expenses 1,026 — 1,026 734 — 734 292 40
Amortization of deferred acquisition
costs 19 — 19 20 — 20 (1) (5)
General and administrative expense 1,419 95 1,324 1,296 95 1,201 123 10
Total expenses 2,464 95 2,369 2,050 95 1,955 414 21
Pretax income $ 436 $ (92) $ 528 $ 318 $ (92) $ 410 $ 118 29%
NM Not Meaningful.
(1) Adjustments include net realized gains or losses and integration charges.
Our Asset Management segment pretax income increased $118 million, or 37%, to $436 million for the year ended
December 31, 2011 compared to $318 million for the prior year. Our Asset Management segment pretax operating
income, which excludes net realized gains or losses and integration charges, increased $118 million, or 29%, to
$528 million for the year ended December 31, 2011 compared to $410 million for the prior year. Earnings in 2011
reflected twelve months of Columbia Management earnings compared to eight months in the prior year, which impacted
revenues and expenses. Pretax margin was 15.0% for the year ended December 31, 2011 compared to 13.4% for the
prior year. Pretax operating margin was 18.2% for the year ended December 31, 2011 compared to 17.3% for the prior
year.
Net Revenues
Net revenues increased $532 million, or 22%, to $2.9 billion for the year ended December 31, 2011 compared to
$2.4 billion for the prior year. Operating net revenues, which exclude net realized gains or losses, increased $532 million,
or 22%, to $2.9 billion for the year ended December 31, 2011 compared to $2.4 billion for the prior year driven by an
increase in management and distribution fees.
Management and financial advice fees increased $455 million, or 23%, to $2.4 billion for the year ended December 31,
2011 compared to $2.0 billion for the prior year due to an additional four months of business resulting from the Columbia
Management Acquisition, as well the impact of higher average equity market levels on assets, partially offset by net
outflows and lower hedge fund performance fees.
Distribution fees increased $92 million, or 26%, to $450 million for the year ended December 31, 2011 compared to
$358 million for the prior year driven by an additional four months of business resulting from the Columbia Management
Acquisition, as well the impact of higher average equity market levels on assets, partially offset by net outflows.
Expenses
Total expenses increased $414 million, or 20%, to $2.5 billion for the year ended December 31, 2011 compared to
$2.1 billion for the prior year. Operating expenses, which exclude integration charges, increased $414 million, or 21%, to
$2.4 billion for the year ended December 31, 2011 compared to $2.0 billion for the prior year due to an increase in
distribution expenses and general and administrative expense.
Distribution expenses increased $292 million, or 40%, to $1.0 billion for the year ended December 31, 2011 compared
to $734 million for the prior year due to an additional four months of business resulting from the Columbia Management
Acquisition, as well the impact of higher average equity market levels on assets, partially offset by net outflows.
General and administrative expense increased $123 million, or 9%, to $1.4 billion for the year ended December 31, 2011
compared to $1.3 billion for the prior year. Integration charges remained flat at $95 million for both 2011 and 2010.
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