Ameriprise 2012 Annual Report Download - page 85

Consolidated Results of Operations
Year Ended December 31, 2011 Compared to Year Ended December 31, 2010
The following table presents our consolidated results of operations:
Years Ended
December 31,
2011 2010 Change
(in millions)
Revenues
Management and financial advice fees $ 4,537 $ 3,784 $ 753 20%
Distribution fees 1,573 1,447 126 9
Net investment income 2,046 2,309 (263) (11)
Premiums 1,220 1,179 41 3
Other revenues 863 863 — —
Total revenues 10,239 9,582 657 7
Banking and deposit interest expense 47 70 (23) (33)
Total net revenues 10,192 9,512 680 7
Expenses
Distribution expenses 2,559 2,135 424 20
Interest credited to fixed accounts 856 909 (53) (6)
Benefits, claims, losses and settlement expenses 1,557 1,750 (193) (11)
Amortization of deferred acquisition costs 397 114 283 NM
Interest and debt expense 317 290 27 9
General and administrative expense 3,059 2,845 214 8
Total expenses 8,745 8,043 702 9
Income from continuing operations before income tax provision 1,447 1,469 (22) (1)
Income tax provision 377 293 84 29
Income from continuing operations 1,070 1,176 (106) (9)
Loss from discontinued operations, net of tax (60) (24) (36) NM
Net income 1,010 1,152 (142) (12)
Less: Net income (loss) attributable to noncontrolling interests (106) 163 (269) NM
Net income attributable to Ameriprise Financial $ 1,116 $ 989 $ 127 13%
NM Not Meaningful.
Overall
Income from continuing operations before income tax provision decreased $22 million, or 1%, compared to the prior year
reflecting a $269 million decrease in net income attributable to noncontrolling interests, which was mostly offset by a
$247 million increase in pretax income attributable to Ameriprise Financial. The decrease in net income attributable to
noncontrolling interests was primarily driven by a $184 million decline in net investment income of CIEs. The increase in
pretax income attributable to Ameriprise Financial was driven by an increase in assets under management primarily due to
the Columbia Management Acquisition, net inflows in wrap account assets and market appreciation, partially offset by the
negative impact of the low interest rate environment and higher general and administrative expense.
The market impact on variable annuity guaranteed living benefits (net of hedges and the related DSIC and DAC
amortization) was a decrease to pretax earnings of $62 million for the year ended December 31, 2011, which included a
$4 million negative impact associated with unlocking. This compares to a decrease of $19 million for the prior year, which
included a $27 million benefit associated with unlocking. The market impact on DAC and DSIC was an expense of
$11 million for the year ended December 31, 2011 compared to a benefit of $20 million for the prior year.
The following table presents the total pretax impacts on our revenues and expenses attributable to unlocking and model
changes for the year ended December 31:
Pretax Increase (Decrease) 2011 2010
(in millions)
Other revenues $ (20) $ (20)
Benefits, claims, losses and settlement expenses (40) 263
Amortization of DAC 38 (197)
Total expenses (2) 66
Total(1) $ (18) $ (86)
(1) Includes a $4 million expense and a $27 million benefit related to the market impact on variable annuity guaranteed living benefits
for the years ended December 31, 2011 and 2010, respectively.
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