Ameriprise 2015 Annual Report Download - page 67

rates, partially offset by a benefit from updating our variable annuity living benefit withdrawal utilization assumption. See
our Consolidated and Segment Results of Operations sections below for the pretax impacts on our revenues and expenses
attributable to unlocking and additional discussion of the drivers of the unlocking impact.
We consolidate certain collateralized loan obligations (‘‘CLOs’’) and property funds for which we provide asset management
services. These entities are defined as consolidated investment entities (‘‘CIEs’’). 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. For further information on CIEs, see Note 4 to our Consolidated Financial Statements.
Changes in the valuation of the CIE assets and liabilities 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 syndicated loans and debt, are reflected in net investment income. We continue to include
the fees from these entities 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 investment gains or losses, net of
the related DSIC and DAC amortization, unearned revenue amortization and the reinsurance accrual; 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; the market impact of hedges to offset interest rate changes on unrealized gains or losses for certain
investments; 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. 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. These non-GAAP measures should not be viewed as a substitute for U.S. GAAP 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 (‘‘AOCI’’) of 19% to 23%.
The following tables reconcile our GAAP measures to operating measures:
Years Ended
December 31,
2015 2014
(in millions)
Total net revenues $ 12,170 $ 12,268
Less: Revenue attributable to CIEs 446 651
Less: Net realized investment gains 437
Less: Market impact on indexed universal life benefits 7 (11)
Less: Market impact of hedges on investments (21) —
Operating total net revenues $ 11,734 $ 11,591
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