Voya 2014 Annual Report Download - page 138

• Net guaranteed benefit hedging gains (losses), which include changes in the fair value of derivatives
related to guaranteed benefits, net of related reserve increases (decreases) and net of related
amortization of DAC, VOBA and sales inducements, 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 our long-term expectations and includes the cost of hedging. Other
derivative and reserve changes related to guaranteed benefits are excluded from operating results,
including the impacts related to changes in our nonperformance spread;
• Income (loss) related to businesses exited through reinsurance or divestment (including net investment
gains (losses) on securities sold and expenses directly related to these transactions);
• Income (loss) attributable to noncontrolling interest;
• Income (loss) related to early extinguishment of debt;
• Impairment of goodwill, value of management contract rights and value of customer relationships
acquired;
• Immediate recognition of net actuarial gains (losses) related to our pension and other postretirement
benefit obligations and gains (losses) from plan amendments and curtailments; and
• Other items, including restructuring expenses (severance, lease write-offs, etc.), certain third-party
expenses and deal incentives related to the divestment of the Company by ING Group and expenses
associated with the rebranding of Voya Financial, Inc. from ING U.S., Inc.
Operating earnings before income taxes also does not reflect the results of operations of our CBVA
segment, since this segment is managed to focus on protecting regulatory and rating agency capital rather than
achieving operating metrics. When we present the adjustments to Income (loss) before income taxes on a
consolidated basis, each adjustment excludes the relative portions attributable to our CBVA segment.
The most directly comparable U.S. GAAP measure to Operating earnings before income taxes is Income
(loss) before income taxes. For a reconciliation of Operating earnings before income taxes to Income (loss)
before income taxes, see “-Results of Operations—Company Consolidated” below.
Operating Revenues
Operating revenues is a measure of our segment revenues. Each segment’s Operating revenues are
calculated by adjusting Total revenues to exclude 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 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 our long-term expectations and includes the cost of hedging. Other
derivative and reserve changes related to guaranteed benefits are excluded from operating revenues,
including the impacts related to changes in our nonperformance spread;
• Revenues related to businesses exited through reinsurance or divestment (including net investment
gains (losses) on securities sold directly related to these transactions);
• Revenues attributable to noncontrolling interest; and
• Other adjustments to Operating revenues primarily reflect Fee income earned by our broker-dealers for
sales of non-proprietary products, which are reflected net of commission expense in our segments’
Operating revenues, as well as other items where the income is passed on to third parties.
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