Voya 2013 Annual Report Download - page 377

ING U.S., Inc.
Notes to the Consolidated Financial Statements
(Dollar amounts in millions, unless otherwise stated)
Operating revenues is a measure of the Company’s segment revenues. The Company calculates operating
revenues by adjusting each segment’s revenues for the following items:
• Net realized investment gains (losses) and related charges and adjustments include gains (losses) on the
sale of securities, impairments, changes in the fair value of investments using the fair value option
(“FVO”) unrelated to the implied loan-backed security income recognition for certain mortgage-backed
obligations and changes in the fair value of derivative instruments, excluding realized gains (losses)
associated with swap settlements and accrued interest. These are net of related amortization of
unearned revenue;
• Gain (loss) on change in fair value of derivatives related to guaranteed benefits include changes in the
fair value of derivatives related to guaranteed benefits, less the estimated cost of these benefits. The
estimated cost, which is reflected in operating results, reflects the expected cost of these benefits if
markets perform in line with the Company’s long-term expectations and includes the cost of hedging.
All other derivative and reserve changes related to guaranteed benefits are excluded from operating
revenues, including the impacts related to changes in the Company’s nonperformance spread;
• Revenues related to businesses exited through reinsurance or divestment;
• Revenues attributable to noncontrolling interests; and
• Other adjustments to operating revenues primarily reflect fee income earned by the Company’s broker-
dealers for sales of non-proprietary products, which are reflected net of commission expense in the
Company’s segments’ operating revenues, as well as other items where the income is passed on to third
parties.
Operating revenues also do not reflect the revenues of the Company’s Closed Block Variable Annuity segment,
since this segment is managed to focus on protecting regulatory and rating agency capital rather than achieving
operating metrics. When the Company presents the adjustments to Total revenues on a consolidated basis, each
adjustment excludes the relative portions attributable to the Company’s Closed Block Variable Annuity segment.
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