Voya 2014 Annual Report Download - page 450

Non-GAAP Measures
This Annual Report contains references to Ongoing Business Adjusted Operating Return on Equity and
Ongoing Business Adjusted Operating Earnings, each of which is a “non-GAAP financial measure”, which
means it is a financial measure calculated other than in accordance with U.S. generally accepted accounting
principles (US GAAP).
The following tables provide a reconciliation of (i) Ongoing Business Adjusted Operating Return on Equity
to Return on equity, and (ii) Ongoing Business Adjusted Operating Earnings to Net income, each of which is the
most comparable financial measure calculated in accordance with US GAAP.
Additional information on these non-GAAP financial measures may be found in the Voya Financial, Inc.
investor supplement for the three months ended December 31, 2014 and in the Voya Financial, Inc. earnings
release for the three and twelve months ended December 31, 2014, each of which is available on the company’s
investor website at investors.voya.com.
Voya Financial
Calculation and Reconciliation of Ongoing Business Adjusted Operating Return on Equity and
US GAAP Return on Equity
($ in millions, unless otherwise indicated)
Year ended
December 31, 2014
Year ended
December 31, 2013
Year ended
December 31, 2012
GAAP Return on Equity
Net income (loss) available to Voya Financial, Inc.’s common
shareholders ............................................ $ 2,299.7 $ 600.5 $ 473.0
Voya Financial, Inc. shareholders’ equity: beginning of period ....... $13,272.2 $13,874.9 $12,353.9
Voya Financial, Inc. shareholders’ equity: end of period ............ $16,107.9 $13,272.2 $13,874.9
Voya Financial, Inc. shareholders’ equity: average for period ........ $14,524.0 $13,573.6 $13,114.4
GAAP Return on Equity ................................... 15.8% 4.4% 3.6%
Ongoing Business Adjusted Operating Return on Equity
Ongoing Business adjusted operating earnings before income
taxes1.................................................. $ 1,377.9 $ 1,211.8 $ 1,093.2
Income taxes on adjusted operating earnings (based on an assumed tax
rate of 35%) ............................................. (482.2) (424.2) (382.7)
Ongoing Business adjusted operating earnings after income taxes .... 895.7 787.6 710.5
Interest expense after-tax2.................................... (77.3) (79.9) (88.7)
Ongoing Business adjusted operating earnings after income taxes
and interest expense ..................................... $ 818.4 $ 707.7 $ 621.7
Beginning of period capital for Ongoing Business ................... $ 9,216.0 $ 9,057.0 $10,037.0
End of period capital for Ongoing Business3,4 ...................... $ 8,777.0 $ 9,216.0 $ 9,823.0
Average capital for Ongoing Business5........................... $ 9,027.5 9,137.0 9,930.0
Average debt (based on 25% debt-to-capital ratio) .................. $(2,256.9) (2,284.3) (2,482.5)
Average equity for Ongoing Business ............................ $ 6,770.6 $ 6,852.7 $ 7,447.5
Adjusted Operating Return on Equity for Ongoing Business ....... 12.1% 10.3% 8.3%
2