Ameriprise 2012 Annual Report Download - page 70

Assets under administration (‘‘AUA’’) include assets for which we provide administrative services such as client assets
invested in other companies’ products that we offer outside of our wrap accounts. These assets include those held in
clients’ brokerage accounts. We generally record fees received from administered assets as distribution fees. We do not
exercise management discretion over these assets and do not earn a management fee. These assets are not reported on
our Consolidated Balance Sheets. AUA also includes certain assets on our Consolidated Balance Sheets for which we do
not provide investment management services and do not recognize management fees, such as investments in
non-affiliated funds held in the separate accounts of our life insurance subsidiaries. These assets do not include assets
under advisement, for which we provide model portfolios but do not have full discretionary investment authority.
The following table presents detail regarding our AUM and AUA:
December 31,
2012 2011 Change
(in billions)
Assets Under Management and Administration
Advice & Wealth Management AUM $ 125.0 $ 104.7 $ 20.3 19%
Asset Management AUM 455.4 435.5 19.9 5
Eliminations (18.0) (12.6) (5.4) (43)
Total Assets Under Management 562.4 527.6 34.8 7
Total Assets Under Administration 118.6 103.7 14.9 14
Total AUM and AUA $ 681.0 $ 631.3 49.7 8%
Total AUM increased $49.7 billion, or 8%, to $681.0 billion as of December 31, 2012 compared to the prior year due to
a $20.3 billion increase in Asset Management AUM and a $19.9 billion increase in Advice & Wealth Management AUM.
See our segment results of operations discussion below for additional information on changes in our AUM.
Consolidated Results of Operations
Year Ended December 31, 2012 Compared to Year Ended December 31, 2011
The following table presents our consolidated results of operations:
Years Ended
December 31,
2012 2011 Change
(in millions)
Revenues
Management and financial advice fees $ 4,692 $ 4,537 $ 155 3%
Distribution fees 1,616 1,573 43 3
Net investment income 1,933 2,046 (113) (6)
Premiums 1,223 1,220 3 —
Other revenues 795 863 (68) (8)
Total revenues 10,259 10,239 20 —
Banking and deposit interest expense 42 47 (5) (11)
Total net revenues 10,217 10,192 25 —
Expenses
Distribution expenses 2,698 2,559 139 5
Interest credited to fixed accounts 831 856 (25) (3)
Benefits, claims, losses and settlement expenses 1,846 1,557 289 19
Amortization of deferred acquisition costs 286 397 (111) (28)
Interest and debt expense 276 317 (41) (13)
General and administrative expense 3,042 3,059 (17) (1)
Total expenses 8,979 8,745 234 3
Income from continuing operations before income tax provision 1,238 1,447 (209) (14)
Income tax provision 335 377 (42) (11)
Income from continuing operations 903 1,070 (167) (16)
Loss from discontinued operations, net of tax (2) (60) 58 97
Net income 901 1,010 (109) (11)
Less: Net loss attributable to noncontrolling interests (128) (106) (22) (21)
Net income attributable to Ameriprise Financial $ 1,029 $ 1,116 $ (87) (8)%
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