Ameriprise 2013 Annual Report Download - page 63

impact pretax income. The net income (loss) of the CIEs is reflected in net income (loss) attributable to noncontrolling
interests. The results of operations of the CIEs are reflected in the Corporate & Other segment. On a consolidated basis,
the management fees we earn for the services we provide to the CIEs and the related general and administrative expenses
are eliminated and the changes in the assets and liabilities related to the CIEs, primarily debt and underlying syndicated
loans, are reflected in net investment income. We continue to include the fees in the management and financial advice
fees line within our Asset Management segment.
While our consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles
(‘‘GAAP’’), management believes that operating measures, which exclude net realized gains or losses; the market impact
on variable annuity guaranteed benefits, net of hedges and the related DSIC and DAC amortization; the market impact on
indexed universal life benefits, net of hedges and the related DAC amortization, unearned revenue amortization and the
reinsurance accrual; integration and restructuring charges; income (loss) from discontinued operations; and the impact of
consolidating CIEs, best reflect the underlying performance of our core operations and facilitate a more meaningful trend
analysis. While the consolidation of the CIEs impacts our balance sheet and income statement, our exposure to these
entities is unchanged and there is no impact to the underlying business results. Management uses certain of these
non-GAAP measures to evaluate our financial performance on a basis comparable to that used by some securities analysts
and investors. Also, certain of these non-GAAP measures are taken into consideration, to varying degrees, for purposes of
business planning and analysis and for certain compensation-related matters. Throughout our Management’s Discussion
and Analysis, these non-GAAP measures are referred to as operating measures.
It is management’s priority to increase shareholder value over a multi-year horizon by achieving our on-average, over-time
financial targets.
Our financial targets are:
• Operating total net revenue growth of 6% to 8%,
• Operating earnings per diluted share growth of 12% to 15%, and
• Operating return on equity excluding accumulated other comprehensive income of 15% to 18%.
The following tables reconcile our GAAP measures to operating measures:
Years Ended
December 31,
2013 2012
(in millions)
Total net revenues $ 11,199 $ 10,217
Less: Revenue attributable to CIEs 345 71
Less: Net realized gains 77
Less: Market impact on indexed universal life benefits, net (10) —
Less: Integration/restructuring charges —(4)
Operating total net revenues $ 10,857 $ 10,143
Per Diluted Share
Years Ended Years Ended
December 31, December 31,
2013 2012 2013 2012
(in millions, except per share amounts)
Net income $ 1,475 $ 901
Less: Net income (loss) attributable to noncontrolling interests 141 (128)
Net income attributable to Ameriprise Financial 1,334 1,029 $ 6.44 $ 4.62
Less: Loss from discontinued operations, net of tax (3) (2) (0.02) (0.01)
Net income from continuing operations attributable to Ameriprise Financial 1,337 1,031 6.46 4.63
Add: Integration/restructuring charges, net of tax(1) 9 46 0.04 0.21
Add: Market impact on variable annuity guaranteed benefits, net of tax(1) 111 173 0.53 0.77
Add: Market impact on indexed universal life benefits, net of tax(1) 8 — 0.04 —
Less: Net realized gains, net of tax(1) 5 5 0.02 0.02
Operating earnings $ 1,460 $ 1,245 $ 7.05 $ 5.59
Weighted average common shares outstanding:
Basic 203.2 218.7
Diluted 207.1 222.8
(1) Calculated using the statutory tax rate of 35%.
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