Voya 2014 Annual Report Download - page 384

Voya Financial, Inc.
Notes to the Consolidated Financial Statements
(Dollar amounts in millions, unless otherwise stated)
Before
Consolidation(1) CLOs VOEs
CLOs
Adjustments(2)
VOEs
Adjustments(2) Total
December 31, 2012
Revenues:
Net investment income ......... $4,830.0 $ 0.5 $ — $(20.7) $(111.9) $ 4,697.9
Fee income .................. 3,565.6 — — (14.4) (35.8) 3,515.4
Premiums ................... 1,861.1 — — — — 1,861.1
Net realized capital losses ...... (1,280.8) — — — — (1,280.8)
Other income ................ 384.5 — — (6.0) — 378.5
Income related to consolidated
investment entities .......... — 21.5 415.1 6.6 — 443.2
Total revenues ................... 9,360.4 22.0 415.1 (34.5) (147.7) 9,615.3
Benefits and expenses:
Policyholder benefits and Interest
credited and other benefits to
contract owners ............ 4,861.6 — — — — 4,861.6
Other expense ................ 4,031.0 — — — — 4,031.0
Operating expenses related to
consolidated investment
entities ................... — 142.1 44.9 (34.5) (35.8) 116.7
Total benefits and expenses ......... 8,892.6 142.1 44.9 (34.5) (35.8) 9,009.3
Income (loss) before income taxes .... 467.8 (120.1) 370.2 — (111.9) 606.0
Income tax expense (benefit) ........ (5.2) — — — — (5.2)
Net income (loss) ................. 473.0 (120.1) 370.2 — (111.9) 611.2
Less: Net income (loss)
attributable to noncontrolling
interest ................... — (120.1) — — 258.3 138.2
Net income (loss) available to Voya
Financial, Inc.’s common
shareholders ................... $ 473.0 $ — $370.2 $ — $(370.2) $ 473.0
(1) The Before Consolidation column includes the Company’s equity interest in the investment products
accounted for as equity method (private equity and real estate partnership funds) and available-for-sale
investments (CLOs). The net income arising from consolidation of CLOs is completely attributable to other
investors in these CLOs, as the Company’s share has been eliminated through consolidation.
(2) Adjustments include the elimination of intercompany transactions between the Company and its
consolidated investment products, primarily the elimination of the Company’s management fees expensed
by the funds and recorded as operating revenues (before consolidation) by the Company.
Fair Value Measurement
Upon consolidation of CLO entities, the Company elected to apply the FVO for financial assets and financial
liabilities held by these entities and continued to measure these assets (primarily corporate loans) and liabilities
(debt obligations issued by CLO entities) at fair value in subsequent periods. The Company has elected the FVO to
more closely align its accounting with the economics of its transactions and allows the Company to more effectively
align changes in the fair value of CLO assets with a commensurate change in the fair value of CLO liabilities.
361