Exhibit 99.1
AXA FINANCIAL, INC.
RECONCILIATION OF THE CONTRIBUTION TO AXA FRENCH GAAP UNDERLYING EARNINGS
TO AXA FINANCIAL'S CONSOLIDATED US GAAP NET EARNINGS
(in millions)
YEARS ENDED DECEMBER 31,
-------------------------
2003 2004
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CONTRIBUTION TO AXA FRENCH GAAP UNDERLYING EARNINGS PER AXA PRESS RELEASE IN EURO
AXA Equitable 575 587
MONY - 56
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US Life & Savings 575 643
Asset Management- Alliance Capital 70 207
AXA Financial Holding Company (54) (62)
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TOTAL CONTRIBUTION TO AXA FRENCH GAAP UNDERLYING EARNINGS 592 788
Total After-tax Capital Gains (losses), net (46) 32
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TOTAL CONTRIBUTION TO AXA FRENCH GAAP ADJUSTED EARNINGS IN EURO 546 821
Average exchange rate US$1.00 = 0.884 0.804
IN US$ 617 1,021
Reconciling items:
(A) Prior Period adjustment - Deferred Tax Liability (27)
(B) GMIB/DB Reserves, Reinsurance Assets & Hedge (60) (21)
(C) Investment income & capital gains (losses) 2 51
(D) Interest rate swap contracts 6 (13)
(E) AXF Holding - reduction of state tax on DLJ sale 53
(F) Alliance amortization of intangible assets (29) (32)
(G) MONY amortization of intangible assets (6)
(H) MONY integration employee Severance (30)
(I) Employee stock based compensation (50) (14)
(J) MONY integration write off of software (21)
(K) Software amortizaton 12 5
(L) Impact of SOP 03-01 (7)
Other (14) (24)
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Total Reconciling items (160) (59)
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CONSOLIDATED US GAAP NET EARNINGS $ 457 $ 962
========== ==========
(A) Reflects decrease in Deferred Tax Liability related to periods
subsequent to the acquisition of Registrant by AXA.
(B) Reflects the accounting for reinsurance contracts ceding variable
annuity Guaranted Minimum Income Benefit ("GMIB") risks and the program to
hedge certain risks associated with Guaranteed Minimum Death Benefit
("GMDB") and GMIB features as derivative contracts at fair value under US
GAAP vs. ceded reinsurance reserves and derivative contracts qualifying
for hedge accounting, respectively, under French GAAP.
(C) Primarily reflects accounting for certain equity investments on the
equity method of accounting under US GAAP vs. historical cost less cash
distributions and valuation allowances under French GAAP.
(D) Reflects the accounting for interest rate swaps contracts as
derivative contracts at fair value under US GAAP vs. derivative contracts
qualifying for hedge accounting under French GAAP.
(E) Reflects the earnings impact of the reduction of state tax
liabilities associated with the 2000 sale of DLJ, treated as a "one off
item" and excluded from AXA French GAAP Adjusted Earnings.
(F&G) Reflects amortization of acquisition related intangible assets
excluded from AXA French GAAP Adjusted Earnings.
(H) Represents severance paid to AXA Equitable employees as part of the
reduction in force associated with the MONY integration. Under French
GAAP, treated as an additional cost of the purchase.
(I) Primarily reflects variable plan accounting of Stock Appreciation Rights
under US GAAP vs. fixed plan accrual accounting under French GAAP.
(J) Reflects the write-off of AXA Equitable capitalized software
replaced as a result of the MONY integration under US GAAP. Under
French GAAP, it was treated as a cost of the purchase.
(K) Under US GAAP, software is capitalized and amortized over the
life of the assets, whereas prior to 1/1/03 in French GAAP, it
was amortized over 5 years.
(L) Effective 1/1/04, AXA Financial adopted SOP 03-01, "Accounting
and Reporting by Insurance Enterprises for Certain Nontraditional
Long-Duration Contracts and for Separate Accounts", for US GAAP requiring
a change in our policies relating to
1) general account interests in separate accounts,
2) assets and liabilities associated with market-value adjusted
annuities,
3) liabilities related to group pension participating contracts, and
4) liabilities related to certain mortality and annuitization benefits,
such as the no lapse guarantee feature contained in variable and
universal life contracts.
AXA FINANCIAL, INC.
RECONCILIATION OF THE CONTRIBUTION TO AXA FRENCH GAAP NET INCOME - GROUP SHARE
TO AXA FINANCIAL'S CONSOLIDATED US GAAP NET EARNINGS
(in millions)
YEARS ENDED DECEMBER 31,
---------------------------
2003 2004
------------- ------------
CONTRIBUTION TO AXA FRENCH GAAP NET INCOME - GROUP SHARE PER AXA PRESS RELEASE IN EURO
US Life & Savings 433 525
Asset Management- Alliance Capital (89) 170
AXA Financial Holding Company (57) (21)
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TOTAL CONTRIBUTION TO AXA FRENCH GAAP NET INCOME - GROUP SHARE IN EURO 288 674
Average exchanage rate US$1.00 = 0.884 0.804
IN US$ 326 839
Reconciling items:
(A) Prior Period adjustment - Deferred Tax Liability (222)
(B) GMIB/DB Reserves, Reinsurance Assets & Hedge (60) (21)
(C) Investment income & capital gains (losses) 2 51
(D) Interest rate swap contracts 6 (13)
(E) Alliance amortization of intangible assets (29) (32)
(F) MONY integration employee Severance (30)
(G) Employee stock based compensation (50) (14)
(H) MONY integration write off of software (21)
(I) Software amortizaton 12 5
(J) Impact of SOP 03-01 (7)
(K) AXA Goodwill Amortization 486 751
(L) Bernstein put option gains (522)
Other (14) (24)
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Total Reconciling items 131 123
-------- --------
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CONSOLIDATED US GAAP NET EARNINGS $ 457 $ 962
======== ========
(A) Reflects decrease in Deferred Tax Liability related to periods
subsequent to the acquisition of Registrant by AXA.
(B) Reflects the accounting for reinsurance contracts ceding variable annuity
Guaranted Minimum Income Benefit ("GMIB") risks and the program to hedge
certain risks associated with Guaranteed Minimum Death Benefit ("GMDB")
and GMIB features as derivative contracts at fair value under US GAAP vs.
ceded reinsurance reserves and derivative contracts qualifying for hedge
accounting, respectively, under French GAAP.
(C) Primarily reflects accounting for certain equity investments on the
equity method of accounting under US GAAP vs. historical cost less cash
distributions and valuation allowances under French GAAP.
(D) Reflects the accounting for interest rate swaps contracts as
derivative contracts at fair value under US GAAP vs. derivative contracts
qualifying for hedge accounting under French GAAP.
(E) Reflects amortization of acquisition related intangible assets
excluded from AXA French GAAP Adjusted Earnings.
(F) Represents severance paid to AXA Equitable employees as part of the
reduction in force associated with the MONY integration. Under French
GAAP, treated as an additional cost of the purchase.
(G) Primarily reflects variable plan accounting of Stock Appreciation
Rights under US GAAP vs. fixed plan accrual accounting under
French GAAP.
(H) Reflects the write-off of AXA Equitable capitalized software
replaced as a result of the MONY integration under US GAAP. Under French
GAAP, it was treated as a cost of the purchase.
(I) Under US GAAP, software is capitalized and amortized over the life
of the assets, whereas prior to 1/1/03 in French GAAP, it was
amortized over 5 years.
(J) Effective 1/1/04, AXA Financial adopted SOP 03-01, "Accounting and
Reporting by Insurance Enterprises for Certain Nontraditional
Long-Duration Contracts and for Separate Accounts", for US GAAP
requiring a change in our policies relating to
1) general account interests in separate accounts,
2) assets and liabilities associated with market-value adjusted annuities,
3) liabilities related to group pension participating contracts, and
4) liabilities related to certain mortality and annuitization
benefits, such as the no lapse guarantee feature contained in
variable and universal life contracts.
(K) Under US GAAP, Goodwill is no longer amortized but is tested for
impairment.
(L) Represents release of provision established under French GAAP, but not US
GAAP, for put options granted to former Bernstein shareholders.