485APOS 1 rava-partc.txt RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-4 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 Pre-Effective Amendment No. [ ] Post-Effective Amendment No. 21 (File No. 333-79311) [X] and/or REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 Amendment No. 22 (File No. 811-07355) [X] --------- (Check appropriate box or boxes) IDS LIFE VARIABLE ACCOUNT 10 -------------------------------------------------------------------------------- (Exact Name of Registrant) IDS Life Insurance Company -------------------------------------------------------------------------------- (Name of Depositor) 70100 AXP Financial Center, Minneapolis, MN 55474 -------------------------------------------------------------------------------- (Address of Depositor's Principal Executive Offices) (Zip Code) Depositor's Telephone Number, including Area Code (612) 671-3678 -------------------------------------------------------------------------------- Mary Ellyn Minenko, 50607 AXP Financial Center, Minneapolis, MN 55474 -------------------------------------------------------------------------------- (Name and Address of Agent for Service) It is proposed that this filing will become effective (check appropriate box) [ ] immediately upon filing pursuant to paragraph (b) of Rule 485 [ ] on (date) pursuant to paragraph (b) of Rule 485 [ ] 60 days after filing pursuant to paragraph (a)(1) of Rule 485 [X] on as soon as practicable pursuant to paragraph (a)(1) of Rule 485 If appropriate, check the following box: [ ] this post-effective amendment designates a new effective date for a previously filed post-effective amendment. The prospectus and Statement of Additional Information filed electronically herewith are not intended to supersede the prospectuses and Statements of Additional Information filed with Post-Effective Amendment No. 14 to Registration Statement No. 333-79311, filed on or about April 28, 2003. The prospectus and Statement of Additional Information filed electronically herewith are intended to supersede the prospectus and Statement of Additional Information filed with Post-Effective Amendment No. 15 to Registration Statement No. 333-79311, filed on or about August 1, 2003. Prospectus Jan. __, 2004 American Express Retirement Advisor Advantage Plus(SM) Variable Annuity Retirement Advisor Select Plus(SM) Variable Annuity INDIVIDUAL FLEXIBLE PREMIUM DEFERRED COMBINATION FIXED/VARIABLE ANNUITIES Issued by: IDS Life Insurance Company (IDS Life) 70100 AXP Financial Center Minneapolis, MN 55474 Telephone: (800) 862-7919 americanexpress.com IDS Life Variable Account 10 This prospectus contains information that you should know before investing in the American Express Retirement Advisor Advantage Plus(SM) Variable Annuity (RAVA Advantage Plus), or the American Express Retirement Advisor Select Plus(SM) Variable Annuity (RAVA Select Plus). The information in this prospectus applies to both contracts unless stated otherwise. Prospectuses are also available for: o American Express(R) Variable Portfolio Funds o AIM Variable Insurance Funds o AllianceBernstein Variable Products Series Fund, Inc. o American Century(R) Variable Portfolios, Inc. o Calvert Variable Series, Inc. o Evergreen Variable Annuity Trust o Fidelity(R) Variable Insurance Products - Service Class 2 o Franklin(R) Templeton(R) Variable Insurance Products Trust (FTVIPT) - Class 2 o Goldman Sachs Variable Insurance Trust (VIT) o INVESCO Variable Investment Funds, Inc. o Lazard Retirement Series, Inc. o Liberty Variable Investment Trust o MFS(R) Variable Insurance Trust(SM) o Oppenheimer Variable Account Funds - Service Shares o Putnam Variable Trust - Class IB Shares o Strong Opportunity Fund II, Inc. o Van Kampen Life Investment Trust o Wanger Advisors Trust Please read the prospectuses carefully and keep them for future reference. The contracts provide for purchase payment credits which we may reverse under certain circumstances. Expenses may be higher and surrender charges may be higher and longer for contracts with purchase payment credits than for contracts without such credits. The amount of the credit may be more than offset by additional charges associated with the credit. The Securities and Exchange Commission (SEC) has not approved or disapproved these securities or passed upon the accuracy or adequacy of this prospectus. Any representation to the contrary is a criminal offense. An investment in this contract is not a deposit of a bank or financial institution and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. An investment in this contract involves investment risk including the possible loss of principal. A Statement of Additional Information (SAI), dated the same date as this prospectus, is incorporated by reference into this prospectus. It is filed with the SEC and is available without charge by contacting IDS Life at the telephone number and address listed above. The table of contents of the SAI is on the last page of this prospectus. The SEC maintains an Internet site. This prospectus, the SAI and other information about the product are available on the EDGAR Database on the SEC's Internet site at (http://www.sec.gov). Variable annuities are complex investment vehicles. Before you invest, be sure to ask your sales representative about the contract features, benefits, risks and fees, and whether the contract is appropriate for you, based upon your financial situation and objectives. The contracts may not be available in all jurisdictions. This prospectus constitutes an offering or solicitation only in those jurisdictions where such offering or solicitation may lawfully be made. State variations are covered in a special contract form used in that state. This prospectus provides a general description of the contracts. Your actual contract and any riders or endorsements are the controlling documents. -------------------------------------------------------------------------------- 1 AMERICAN EXPRESS RETIREMENT ADVISOR ADVANTAGE PLUS / RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS IDS Life has not authorized any person to give any information or to make any representations regarding the contracts other than those contained in this prospectus or the fund prospectuses. Do not rely on any such information or representations. IDS Life and its affiliated insurance companies offer several different annuities which your sales representative may be authorized to offer to you. Each annuity has different features and benefits that may be appropriate for you based on your financial situation and needs, your age and how you intend to use the annuity. The different features and benefits may include the investment and fund manager options, variations in interest rate amount and guarantees, credits, surrender charge schedules and access to annuity account values. The fees and charges may also be different between each annuity. Table of Contents Key Terms 3 The Contract in Brief 4 Expense Summary 6 Condensed Financial Information (Unaudited) 14 Financial Statements 33 The Variable Account and the Funds 34 The Fixed Account 41 The Special DCA Account 42 Buying Your Contract 42 Charges 44 Valuing Your Investment 50 Making the Most of Your Contract 52 Surrenders 55 TSA - Special Surrender Provisions 56 Changing Ownership 57 Benefits in Case of Death - Standard Death Benefit 57 Optional Benefits 59 The Annuity Payout Period 67 Taxes 69 Voting Rights 71 Substitution of Investments 71 About the Service Providers 72 Table of Contents of the Statement of Additional Information 72 -------------------------------------------------------------------------------- 2 AMERICAN EXPRESS RETIREMENT ADVISOR ADVANTAGE PLUS / RETIREMENT ADVISOR SELECT PLUSVARIABLE ANNUITY -- PROSPECTUS Key Terms These terms can help you understand details about your contract. Accumulation unit: A measure of the value of each subaccount before annuity payouts begin. Annuitant: The person on whose life or life expectancy the annuity payouts are based. Annuity payouts: An amount paid at regular intervals under one of several plans. Assumed investment rate: The rate of return we assume your investments will earn when we calculate your initial annuity payout amount using the annuity table in your contract. The standard assumed investment rate we use is 5% but you may request we substitute an assumed investment rate of 3.5%. Band 3 annuities: RAVA Advantage Plus and RAVA Select Plus contracts that are available for: o current or retired employees of American Express Financial Corporation (AEFC) or its subsidiaries and their spouses (employees), o current or retired American Express financial advisors and their spouses (advisors), or o individuals investing an initial purchase payment of $1 million or more, with our approval (other individuals). Beneficiary: The person you designate to receive benefits in case of the owner's death while the contract is in force. Close of business: When the New York Stock Exchange (NYSE) closes, normally 4 p.m. Eastern time. Contract: A deferred annuity contract that permits you to accumulate money for retirement by making one or more purchase payments. It provides for lifetime or other forms of payouts beginning at a specified time in the future. Contract value: The total value of your contract before we deduct any applicable charges. Contract year: A period of 12 months, starting on the effective date of your contract and on each anniversary of the effective date. Enhanced Earnings Death Benefit (EEB) and Enhanced Earnings Plus Death Benefit (EEP): These are optional benefits you can add to your contract for an extra charge. Each is intended to provide an additional benefit to your beneficiary to help offset expenses after your death such as funeral expenses or federal and state taxes. You can elect to purchase either the EEB or the EEP, subject to certain restrictions. Fixed account: An account to which you may allocate purchase payments. Amounts you allocate to this account earn interest at rates that we declare periodically. Funds: Investment options under your contract. You may allocate your purchase payments into subaccounts investing in shares of any or all of these funds. IDS Life: In this prospectus, "we," "us," "our" and "IDS Life" refer to IDS Life Insurance Company. Maximum Anniversary Value Death Benefit (MAV) and Maximum Five-Year Anniversary Value Death Benefit (5-Year MAV): These are optional benefits you can add to your contract for an extra charge. Each is intended to provide additional death benefit protection in the event of fluctuating fund values. You can elect to purchase either the MAV or the 5-Year MAV, subject to certain restrictions. Owner (you, your): A natural person (including a revocable trust) who controls the contract (decides on investment allocations, transfers, payout options, etc.). Usually, but not always, the owner is also the annuitant. The owner is responsible for taxes, regardless of whether he or she receives the contract's benefits. If the contract has a non-natural person as the owner, "you, your" means the annuitant. Purchase payment credits: An addition we make to your contract value. We base the amount of the credit on the surrender charge schedule you elect and/or total purchase payments. Return of Purchase Payments Death Benefit (ROPP): This is an optional benefit that you can add to your contract for an extra charge if you are age 76 or older at contract issue that is intended to provide additional death benefit protection in the event of fluctuating fund values. ROPP is included in the standard death benefits for contract owners age 75 and under on the contract effective date at no additional cost. Special Dollar-Cost Averaging (Special DCA) account: An account to which you may allocate new purchase payments of at least $10,000. Amounts you allocate to this account earn interest at rates that we declare periodically and will transfer into your specified subaccount allocations in six monthly transfers. The Special DCA account may not be available at all times. -------------------------------------------------------------------------------- 3 AMERICAN EXPRESS RETIREMENT ADVISOR ADVANTAGE PLUS / RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS Qualified annuity: A contract that you purchase to fund one of the following tax-deferred retirement plans that is subject to applicable federal law and any rules of the plan itself: o Individual Retirement Annuities (IRAs) under Section 408(b) of the Internal Revenue Code of 1986, as amended (the Code) o Roth IRAs under Section 408A of the Code o SIMPLE IRAs under Section 408(p) of the Code o Simplified Employee Pension (SEP) plans under Section 408(k) of the Code o Plans under Section 401(k) of the Code o Custodial and trusteed plans under Section 401(a) of the Code o Tax-Sheltered Annuities (TSAs) under Section 403(b) of the Code A qualified annuity will not provide any necessary or additional tax deferral if it is used to fund a retirement plan that is already tax-deferred. All other contracts are considered nonqualified annuities. Rider: You receive a rider to your contract when you purchase the EEB, EEP, MAV, 5-Year MAV and/or ROPP. The rider adds the terms of the optional benefit to your contract. Rider effective date: The date you add a rider to your contract. Settlement date: The date when annuity payouts are scheduled to begin. Surrender value: The amount you are entitled to receive if you make a full surrender from your contract. It is the contract value minus any applicable charges. Valuation date: Any normal business day, Monday through Friday, that the NYSE is open. Each valuation date ends at the close of business. We calculate the value of each subaccount at the close of business on each valuation date. Variable account: Consists of separate subaccounts to which you may allocate purchase payments; each invests in shares of one fund. The value of your investment in each subaccount changes with the performance of the particular fund. The Contract in Brief This prospectus describes two contracts. RAVA Advantage Plus offers a choice of a seven-year or a ten-year surrender charge schedule and relatively lower expenses. RAVA Select Plus offers a three-year surrender charge schedule and relatively higher expenses. The information in this prospectus applies to both contracts unless stated otherwise. Purpose: The purpose of each contract is to allow you to accumulate money for retirement. You do this by making one or more purchase payments. You may allocate your purchase payments to the fixed accounts, subaccounts and/or Special DCA account (when available) under the contract. These accounts, in turn, may earn returns that increase the value of the contract. Beginning at a specified time in the future called the settlement date, the contract provides lifetime or other forms of payouts of your contract value (less any applicable premium tax). As in the case of other annuities, it may not be advantageous for you to purchase one of these contracts as a replacement for, or in addition to, an existing annuity or life insurance contract. Most annuities have a tax-deferred feature. So do many retirement plans under the Code. As a result, when you use one of these contracts to fund a retirement plan that is tax-deferred, your contract will not provide any necessary or additional tax deferral for that retirement plan. But the contracts do have features other than tax deferral that may help you reach your retirement goals. You should consult your tax advisor prior to making a purchase for an explanation of the tax implications to you. Free look period: You may return your contract to your sales representative or to our office within the time stated on the first page of your contract. You will receive a full refund of the contract value, less the amount of any purchase payment credits. (See "Valuing Your Investment -- Purchase payment credits.") We will not deduct any other charges. However, you bear the investment risk from the time of purchase until you return the contract; the refund amount may be more or less than the payment you made. (Exception: If the law requires, we will refund all of your purchase payments.) Accounts: Currently, you may allocate your purchase payments among any or all of: o the subaccounts, each of which invests in a fund with a particular investment objective. The value of each subaccount varies with the performance of the particular fund in which it invests. We cannot guarantee that the value at the settlement date will equal or exceed the total purchase payments you allocate to the subaccounts. (p. 34) o the fixed account, which earns interest at a rate that we adjust periodically. Purchase payment allocations to the fixed account may be subject to special restrictions. (p. 41) o the Special DCA account, when available. -------------------------------------------------------------------------------- 4 AMERICAN EXPRESS RETIREMENT ADVISOR ADVANTAGE PLUS / RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS Buying your contract: Your sales representative will help you complete and submit an application. Applications are subject to acceptance at our office. You may buy a nonqualified annuity or a qualified annuity. After your initial purchase payment, you have the option of making additional purchase payments in the future. (p. 42) Purchase payments: Minimum allowable purchase payments If paying by installments under a scheduled payment plan: $23.08 biweekly, or $50 per month
RAVA Advantage Plus RAVA Select Plus If paying by any other method: initial payment for qualified annuities $1,000 $ 2,000 initial payment for nonqualified annuities 2,000 10,000 for any additional payments 50 50
Maximum allowable purchase payments (without home office approval) based on your age on the effective date of the contract:
RAVA Advantage Plus RAVA Select Plus For the first year: up to age 85 $999,999* $999,999* for ages 86 to 90 100,000 100,000 For each subsequent year: up to age 85 100,000 100,000 for ages 86-90 50,000 50,000
* RAVA Advantage Plus and RAVA Select Plus band 3 annuities sold to individuals other than advisors and employees: Require a minimum $1,000,000 initial purchase payment and our approval. Contracts already approved may make payments in subsequent years up to $100,000 if your age on the effective date of the contract is up to age 85 and $50,000 if your age on the effective date of the contract is age 86-90. Transfers: Subject to certain restrictions, you currently may redistribute your contract value among the subaccounts without charge at any time until annuity payouts begin, and once per contract year after annuity payouts begin. You may establish automated transfers among the accounts. You may not transfer existing amounts to the Special DCA account. Fixed account transfers are subject to special restrictions. (p. 53) Surrenders: You may surrender all or part of your contract value at any time before the settlement date. You also may establish automated partial surrenders. Surrenders may be subject to charges and income taxes (including an IRS penalty if you surrender prior to your reaching age 59 1/2) and may have other tax consequences; also, certain restrictions apply. (p. 55) Changing ownership: You may change ownership of a nonqualified annuity by written instruction, but this may have federal income tax consequences. Restrictions apply to changing ownership of a qualified annuity. (p. 57) Benefits in case of death: If you die before annuity payouts begin, we will pay the beneficiary an amount at least equal to the contract value, except in the case of a purchase payment credit reversal. (p. 57) Optional benefits: These contracts offer optional features that are available for additional charges if you meet certain criteria. (p. 59) Annuity payouts: You can apply your contract value to an annuity payout plan that begins on the settlement date. You may choose from a variety of plans to make sure that payouts continue as long as you like. If you purchased a qualified annuity, the payout schedule must meet the requirements of the tax-deferred retirement plan. We can make payouts on a fixed or variable basis, or both. Total monthly payouts may include amounts from each subaccount and the fixed account. During the annuity payout period, you cannot be invested in more than five subaccounts at any one time unless we agree otherwise. (p. 67) Taxes: Generally, your contract grows tax-deferred until you surrender it or begin to receive payouts. (Under certain circumstances, IRS penalty taxes may apply.) Even if you direct payouts to someone else, you will be taxed on the income if you are the owner. (p. 69) -------------------------------------------------------------------------------- 5 AMERICAN EXPRESS RETIREMENT ADVISOR ADVANTAGE PLUS / RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS Expense Summary The following tables describe the fees and expenses that you will pay when buying, owning and surrendering the contract. The first table describes the fees and expenses that you will pay at the time that you buy the contract or surrender the contract. State premium taxes also may be deducted. CONTRACT OWNER TRANSACTION EXPENSES Surrender charge for RAVA Advantage Plus (Contingent deferred sales load as a percentage of purchase payment surrendered) You select either a seven-year or ten-year surrender charge schedule at the time of application.**
Seven-year schedule Ten-year schedule** Number of completed Number of completed years from date of each Surrender charge years from date of each Surrender charge purchase payment percentage purchase payment percentage 0 7% 0 8% 1 7 1 8 2 7 2 8 3 6 3 7 4 5 4 7 5 4 5 6 6 2 6 5 7+ 0 7 4 8 3 9 2 10+ 0
** Ten-year surrender charge schedule is not available for contracts issued in Oregon. In Connecticut, the ten-year surrender charge schedule is 8% for years 0-2, 7% for year 3 and declining by 1% each year thereafter until it is 0% for years 10+. For contracts issued in Massachusetts, Oregon and Washington, surrender charges are waived after the tenth contract anniversary. Surrender charge for RAVA Select Plus (except Texas) (Contingent deferred sales load as a percentage of purchase payment surrendered) Years from Surrender charge contract date percentage 1 7% 2 7 3 7 Thereafter 0 Surrender charge for RAVA Select Plus in Texas (Contingent deferred sales load)
Surrender charge percentage (as a percentage of purchase payments surrendered) in contract year Payments made in contract year 1 2 3 Thereafter 1 8% 7% 6% 0% 2 8 7 0 3 8 0 Thereafter 0
A surrender charge also applies to payouts under certain annuity payout plans (see "Charges -- Surrender Charge" p. 46 and "The Annuity Payout Period -- Annuity Payout Plans" p. 67). -------------------------------------------------------------------------------- 6 AMERICAN EXPRESS RETIREMENT ADVISOR ADVANTAGE PLUS / RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS Surrender charge under Annuity Payout Plan E -- Payouts for a specified period: Under this payout plan, you can choose to take a surrender. The amount that you can surrender is the present value of any remaining variable payouts. The discount rate we use in the calculation will be 5.17% if the assumed investment rate is 3.5% and 6.67% if the assumed investment rate is 5%. The surrender charge equals the present value of the remaining payouts using the assumed investment rate minus the present value of the remaining payouts using the discount rate. The next two tables describe the fees and expenses that you will pay periodically during the time that you own the contract, not including fund fees and expenses.
PERIODIC EXPENSES Annual contract administrative charge Maximum: $50 Current: $30 (We will waive this charge when your contract value, or total purchase payments less any payments surrendered, is $50,000 or more on the current contract anniversary, except at full surrender.) ROPP rider fee* Maximum: 0.30% Current: 0.20% (As a percentage of the contract value charged annually at the contract anniversary.) MAV rider fee* Maximum: 0.35% Current: 0.25% (As a percentage of the contract value charged annually at the contract anniversary.) 5-Year MAV rider fee* Maximum: 0.20% Current: 0.10% (As a percentage of the contract value charged annually at the contract anniversary.) EEB rider fee* Maximum: 0.40% Current: 0.30% (As a percentage of the contract value charged annually at the contract anniversary.) EEP rider fee* Maximum: 0.50% Current: 0.40% (As a percentage of the contract value charged annually at the contract anniversary.)
* This fee applies only if you elect this optional feature.
ANNUAL VARIABLE ACCOUNT EXPENSES (As a percentage of average subaccount value) Mortality and expense risk fee: RAVA Advantage Plus RAVA Select Plus For nonqualified annuities 0.95% 1.20% For qualified annuities 0.75% 1.00% For band 3 annuities 0.55% 0.75%
-------------------------------------------------------------------------------- 7 AMERICAN EXPRESS RETIREMENT ADVISOR ADVANTAGE PLUS / RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS ANNUAL OPERATING EXPENSES OF THE FUNDS The next two tables describe the operating expenses of the funds. The first table shows the minimum and maximum total operating expenses charged by the funds that you may pay periodically during the time that you own the contract. The second table shows the fees and expenses charged by each fund for the last fiscal year. More detail concerning each fund's fees and expenses is contained in the prospectus for each fund. Minimum and maximum total annual operating expenses for the funds (Including management fee, distribution and/or service (12b-1) fees and other expenses)
Minimum Maximum Total expenses before contractual fee waivers and/or expense reimbursements .69% 3.62%
Total annual operating expenses for each fund underlying RAVA Advantage and RAVA Select (Before fee waivers and/or expense reimbursements, if applicable, as a percentage of average daily net assets) Gross total Management 12b-1 Other annual fees fees expenses expenses AXP(R) Variable Portfolio - Capital Resource Fund .64% .13% .08% .85%(1) Cash Management Fund .51 .13 .06 .70(1) Core Bond Fund .63 .13 .45 1.21(2) Diversified Bond Fund .60 .13 .08 .81(1) Diversified Equity Income Fund .53 .13 .10 .76(1) Emerging Markets Fund 1.13 .13 .78 2.04(3) Equity Select Fund .68 .13 .25 1.06(1) Global Bond Fund .84 .13 .12 1.09(1) Growth Fund .65 .13 .21 .99(1) High Yield Bond Fund .62 .13 .08 .83(1) International Fund .84 .13 .09 1.06(1) Large Cap Value Fund .63 .13 .43 1.19(2) Managed Fund .61 .13 .06 .80(1) New Dimensions Fund(R) .62 .13 .07 .82(1) Partners Select Value Fund .81 .13 .46 1.40(2) Partners Small Cap Value Fund .99 .13 .43 1.55(1) S&P 500 Index Fund .29 .13 .22 .64(3) Short Duration U.S. Government Fund .61 .13 .08 .82(1) Small Cap Advantage Fund .81 .13 .25 1.19(1) Strategy Aggressive Fund .61 .13 .09 .83(1) AIM V.I. Capital Appreciation Fund, Series II Shares .61 .25 .24 1.10(4) Capital Development Fund, Series II Shares .75 .25 .39 1.39(4) AllianceBernstein Variable Products Series Fund, Inc. AllianceBernstein VP Growth and Income Portfolio (Class B) .63 .25 .05 .93(5) AllianceBernstein VP International Value Portfolio (Class B) 1.00 .25 1.22 2.47(6) American Century(R) Variable Portfolios, Inc. VP International, Class II 1.20 .25 -- 1.45(7) VP Value, Class II .85 .25 -- 1.10(7) Calvert Variable Series, Inc. Social Balanced Portfolio .70 -- .21 .91(8) Evergreen VA International Equity Fund - Class 2 .66 .25 .73 1.64(9)
-------------------------------------------------------------------------------- 8 AMERICAN EXPRESS RETIREMENT ADVISOR ADVANTAGE PLUS / RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS
Total annual operating expenses for each fund underlying RAVA Advantage and RAVA Select (continued) (Before fee waivers and/or expense reimbursements, if applicable, as a percentage of average daily net assets) Gross total Management 12b-1 Other annual fees fees expenses expenses Fidelity(R) VIP Growth & Income Portfolio Service Class 2 .48% .25% .12% .85%(5) Mid Cap Portfolio Service Class 2 .58 .25 .12 .95(5) Overseas Portfolio Service Class 2 .73 .25 .18 1.16(5) FTVIPT Franklin Real Estate Fund - Class 2 .53 .25 .04 .82(10),(11) Franklin Small Cap Value Securities Fund - Class 2 .59 .25 .20 1.04(11),(12) Mutual Shares Securities Fund - Class 2 .60 .25 .21 1.06(11),(12) Goldman Sachs VIT CORE(SM) U.S. Equity Fund .70 -- .16 .86(13) Mid Cap Value Fund .80 -- .13 .93(13) INVESCO VIF Financial Services Fund .75 -- .34 1.09(14),(15) Technology Fund .75 -- .36 1.11(14),(15) Lazard Retirement Series International Equity Portfolio .75 .25 .65 1.65(16) Liberty Columbia High Yield Fund, Variable Series, Class B .69 .25 2.68 3.62(17) MFS(R) Investors Growth Stock Series - Service Class .75 .25 .13 1.13(18),(19) New Discovery Series - Service Class .90 .25 .15 1.30(18),(19) Total Return Series - Service Class .75 .25 .11 1.11(18) Utilities Series - Service Class .75 .25 .19 1.19(18),(19) Oppenheimer Variable Account Funds Global Securities Fund/VA, Service Shares .65 .23 .02 .90(20) Main Street Small Cap Fund/VA, Service Shares .75 .24 .22 1.21(20) Strategic Bond Fund/VA, Service Shares .74 .25 .07 1.06(20) Putnam Variable Trust Putnam VT Health Sciences Fund - Class IB Shares .70 .25 .13 1.08(5) Putnam VT International Equity Fund - Class IB Shares .77 .25 .22 1.24(5) Putnam VT Vista Fund - Class IB Shares .64 .25 .10 .99(5) Strong Funds Strong Opportunity Fund II - Advisor Class .75 .25 .39 1.39(21) Van Kampen LIT Comstock Portfolio, Class II Shares .60 .25 .09 .94(5) Wanger International Small Cap 1.24 -- .23 1.47(22) U.S. Smaller Companies .94 -- .11 1.05(22)
We entered into certain arrangements under which it is compensated by the funds' advisers and/or distributors for the administrative services it provides to these funds. (1) The Fund's expense figures are based on actual expenses for the fiscal year ended Aug. 31, 2003. (2) The Fund's expense figures are based on estimated expenses, before fee waivers and expense reimbursements. Through Aug. 31, 2004, IDS Life and AEFC have agreed to waive certain fees and reimburse expenses to the extent that total expenses exceed the following percentage of Fund average daily net assets. "Gross total annual expenses" after these fee waivers and expense reimbursements would have been 0.95% for AXP(R) Variable Portfolio - Core Bond Fund, 1.05% for AXP(R) Variable Portfolio - Large Cap Value Fund and 1.15% for AXP(R) Variable Portfolio - Partners Select Value Fund. -------------------------------------------------------------------------------- 9 AMERICAN EXPRESS RETIREMENT ADVISOR ADVANTAGE PLUS / RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS (3) The Fund's expense figures are based on actual expenses, before fee waivers and expense reimbursements, for the fiscal year ending Aug. 31, 2003. Through April 30, 2004, IDS Life and AEFC have agreed to waive certain fees and reimburse expenses to the extent that total expenses exceed the following percentage of Fund average daily net assets. "Gross total annual expenses" after these fee waivers and expense reimbursements would have been 1.75% for AXP(R) Variable Portfolio - Emerging Markets Fund and 0.50% for AXP(R) Variable Portfolio - S&P 500 Index Fund. (4) Figures shown in the table are for the year ended Dec. 31, 2002 and are expressed as a percentage of Fund average daily net assets. There is no guarantee that actual expenses will be the same as those shown in the table. (5) The Fund's expense figures are based on actual expenses for the fiscal year ended Dec. 31, 2002. (6) From Jan. 1, 2002 through April 30, 2002, Fund was capped at 1.20%. From May 1, 2002 on, Fund was capped at 1.45%. After such waivers, "Management fees," "Other expenses," and "Gross total annual expenses" would be 0.71%, 0.32% and 1.44%. (7) Annualized operating expenses of funds at Dec. 31, 2002. The Fund has a stepped fee schedule. As a result, the Fund's management fee generally decreases as fund assets increase. (8) Expenses are based on the Portfolio's most recent fiscal year. Management fees include the Subadvisory fee paid by the Advisor (Calvert Asset Management Company, Inc.) and the administrative fee paid by the Portfolio to Calvert Administrative Services Company, an affiliate of the Advisor. (9) The Total ratio of expenses to average net assets excludes expense reductions and fee waivers. From time to time, the Fund's investment advisor may, at its discretion, reduce or waive its fees or reimburse the Fund for certain of its expenses in order to reduce expense ratios. The Fund's investment advisor may cease these waivers or reimbursements at any time. With fee waivers and expense reimbursements, "Other expenses" and "Gross total annual expenses" would be 0.34% and 1.25% for Evergreen VA International Equity Fund - Class 2. (10) The Fund administration fee is paid indirectly through the management fee. (11) The Fund's Class 2 distribution plan or "Rule 12b-1 plan" is described in the Fund's prospectus. (12) The manager has agreed in advance to reduce its fee to reflect reduced services resulting from the Fund's investment in a Franklin Templeton money fund for cash management. This reduction is required by the Fund's Board of Trustees and an exemptive order of the Securities and Exchange Commission. (13) Goldman Sachs Asset Management, L.P. and Goldman Sachs Asset Management International, the investment advisers to the funds, have voluntarily agreed to reduce or limit certain "Other expenses" of such funds (excluding management fees, transfer agent fees, taxes, interest, brokerage fees, litigation, indemnification, shareholder meeting and other extraordinary expenses) to the extent that such expenses exceed 0.24% and 0.29% of the average daily net assets of the CORE(SM) US. Equity, and Mid Cap Value Fund, respectively. There were no expense reductions and limitations for Mid Cap Value or CORE(SM) U.S. Equity for the period ended Dec. 31, 2002. The expense reductions or limitations may be discontinued or modified by the investment adviser at their discretion at any time. CORE(SM) is a service mark of Goldman, Sachs & Co. (14) The Fund's actual "Other expenses" and "Gross total annual expenses" were lower than the figures shown, because their custodian fees were reduced under an expense offset arrangement. (15) Effective June 1, 2002, INVESCO is entitled to reimbursement from the Fund for fees and expenses absorbed pursuant to a voluntary expense limitation commitment between INVESCO and the Fund, if such reimbursements do not cause the Fund to exceed expense limitations and the reimbursement is made within three years after INVESCO incurred the expense. The voluntary expense limitations may be changed at any time following consultation with the Board of Directors. (16) The Investment Manager of the Portfolios has voluntarily agreed, for the year ended Dec. 31, 2002, to reduce its fees and, if necessary, reimburse the Portfolio's expenses to the extent that annualized operating expenses exceed 1.25% of the respective Portfolio's average net assets. After fee waivers and expense reimbursements "Other expense" and "Gross total annual expenses" would be 0.25% and 1.25% for Lazard Retirement International Equity Portfolio. (17) The Fund's expense figures are based on actual expenses, before fee waivers and expense reimbursements, for the fiscal year ending Dec. 31, 2002. The advisor will waive expenses to the extent necessary to prevent gross total annual expenses from exceeding 0.95%. The adviser has undertaken to continue this waiver until April 14, 2004, after which this waiver may be modified or terminated at any time. (18) Each series has adopted a distribution plan under Rule 12b-1 that permits it to pay marketing and other fees to support the sales and distribution of service class shares (these fees are referred to as distribution fees). (19) Each series has an expense offset arrangement that reduces the series' custodian fee based upon the amount of cash maintained by the series with its custodian and dividend disbursing agent. Each series may enter into other similar arrangements and directed brokerage arrangements, which would also have the effect of reducing the series' expenses. "Other expenses" do not take into account these fee reductions, and are therefore higher than the actual expenses of the series. Had these fee reductions been taken into account, "Gross total annual expenses" would be lower for certain series and would equal: 1.12% for Investors Growth Stock Series, 1.29% for New Discovery Series and 1.18% for Utilities Series. (20) Current 12b-1 is 0.25 basis points. Figure shown is actual 12b-1 for calendar year 2002. After fee waivers and/or reimbursements, "Other expenses" and "Gross total annual expenses" would be 0.20% and 1.19% for Main Street Small Cap Fund/VA, Service Shares and 0.04% and 1.03% for Strategic Bond Fund/VA, Service Shares. Waivers and/or reimbursements are voluntary and may be terminated at the managers discretion. (21) As compensation for its advisory services, the fund pays Strong a monthly management fee at an annual rate of 0.75% of the fund's average daily net asset value. Strong has voluntarily agreed to waive the management fee and/or absorb the Fund's other expenses. Strong has no current intention to, but may in the future, discontinue or modify any fee waivers or expense absorptions after any appropriate notice to the Fund's shareholders. After fee waivers and expense reimbursements "Other expenses" and "Gross total annual expenses" would be 0.38% and 1.38% for Strong Opportunity Fund II - Advisor Class. (22) Figures in "Management fees," "12b-1 fees," "Other expenses," and "Gross total annual expenses" are based on actual expenses for the fiscal year ended Dec. 31, 2002. Liberty Wanger Asset Management, L.P. will reimburse the Fund if its annual ordinary operating expenses exceed 2.00% of average daily net assets. This commitment expired on July 31, 2003. -------------------------------------------------------------------------------- 10 AMERICAN EXPRESS RETIREMENT ADVISOR ADVANTAGE PLUS / RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS Examples These examples are intended to help you compare the cost of investing in these contracts with the cost of investing in other variable annuity contracts. These costs include your transaction expenses, contract administrative charges*, variable account annual expenses and fund fees and expenses. These examples assume that you invest $10,000 in the contract for the time periods indicated. These examples also assume that your investment has a 5% return each year. Maximum Expenses. These examples assume the most expensive combination of contract features and benefits and the maximum fees and expense of any of the funds if you are age 75 or younger at contract issue. They assume that you select the optional MAV and EEP. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:
If you do not surrender your contract If you surrender your contract or if you select an annuity payout plan at the end of the applicable time period: at the end of the applicable time period: Nonqualified Annuity 1 year 3 years 5 years 10 years 1 year 3 years 5 years 10 years RAVA Advantage Plus With a ten-year surrender charge schedule** $1,349.91 $2,441.52 $3,422.25 $5,577.24 $549.91 $1,641.52 $2,722.25 $5,377.24 RAVA Advantage Plus With a seven-year surrender charge schedule 1,249.91 2,341.52 3,222.25 5,377.24 549.91 1,641.52 2,722.25 5,377.24 RAVA Select Plus 1,276.67 2,416.77 2,839.45 5,571.72 576.67 1,716.77 2,839.45 5,571.72 RAVA Select Plus - Texas 1,376.67 2,316.77 2,839.45 5,571.72 576.67 1,716.77 2,839.45 5,571.72 If you do not surrender your contract If you surrender your contract or if you select an annuity payout plan at the end of the applicable time period: at the end of the applicable time period: Qualified Annuity 1 year 3 years 5 years 10 years 1 year 3 years 5 years 10 years RAVA Advantage Plus With a ten-year surrender charge schedule** $1,329.41 $2,383.57 $3,331.54 $5,424.60 $529.41 $1,583.57 $2,631.54 $5,224.60 RAVA Advantage Plus With a seven-year surrender charge schedule 1,229.41 2,283.57 3,131.54 5,224.60 529.41 1,583.57 2,631.54 5,224.60 RAVA Select Plus 1,256.17 2,359.14 2,749.76 5,423.17 556.17 1,659.14 2,749.76 5,423.17 RAVA Select Plus - Texas 1,356.17 2,259.14 2,749.76 5,423.17 556.17 1,659.14 2,749.76 5,423.17 If you do not surrender your contract If you surrender your contract or if you select an annuity payout plan at the end of the applicable time period: at the end of the applicable time period: Band 3 Annuity 1 year 3 years 5 years 10 years 1 year 3 years 5 years 10 years RAVA Advantage Plus - Band 3 With a ten-year surrender charge schedule** $1,308.91 $2,325.38 $3,240.03 $5,268.76 $508.91 $1,525.38 $2,540.03 $5,068.76 RAVA Advantage Plus - Band 3 With a seven-year surrender charge schedule 1,208.91 2,225.38 3,040.03 5,068.76 508.91 1,525.38 2,540.03 5,068.76 RAVA Select Plus - Band 3 1,230.54 2,286.76 2,636.55 5,233.08 530.54 1,586.76 2,636.55 5,233.08 RAVA Select Plus - Texas - Band 3 1,330.54 2,186.76 2,636.55 5,233.08 530.54 1,586.76 2,636.55 5,233.08
-------------------------------------------------------------------------------- 11 AMERICAN EXPRESS RETIREMENT ADVISOR ADVANTAGE PLUS / RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS These examples assume the most expensive combination of contract features and benefits and the maximum fees and expense of any of the funds if you are age 76 or older at contract issue. They assume that you select the optional ROPP. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:
If you do not surrender your contract If you surrender your contract or if you select an annuity payout plan at the end of the applicable time period: at the end of the applicable time period: Nonqualified Annuity 1 year 3 years 5 years 10 years 1 year 3 years 5 years 10 years RAVA Advantage Plus With a ten-year surrender charge schedule** $1,303.79 $2,310.79 $3,217.03 $5,229.30 $503.79 $1,510.79 $2,517.03 $5,029.30 RAVA Advantage Plus With a seven-year surrender charge schedule 1,203.79 2,210.79 3,017.03 5,029.30 503.79 1,510.79 2,517.03 5,029.30 RAVA Select Plus 1,230.54 2,286.76 2,636.55 5,233.08 530.54 1,586.76 2,636.55 5,233.08 RAVA Select Plus - Texas 1,330.54 2,186.76 2,636.55 5,233.08 530.54 1,586.76 2,636.55 5,233.08 If you do not surrender your contract If you surrender your contract or if you select an annuity payout plan at the end of the applicable time period: at the end of the applicable time period: Qualified Annuity 1 year 3 years 5 years 10 years 1 year 3 years 5 years 10 years RAVA Advantage Plus With a ten-year surrender charge schedule** $1,283.29 $2,252.29 $3,124.53 $5,069.38 $483.29 $1,452.29 $2,424.53 $4,869.38 RAVA Advantage Plus With a seven-year surrender charge schedule 1,183.29 2,152.29 2,924.53 4,869.38 483.29 1,452.29 2,424.53 4,869.38 RAVA Select Plus 1,210.04 2,228.58 2,545.08 5,077.42 510.04 1,528.58 2,545.08 5,077.42 RAVA Select Plus - Texas 1,310.04 2,128.58 2,545.08 5,077.42 510.04 1,528.58 2,545.08 5,077.42 If you do not surrender your contract If you surrender your contract or if you select an annuity payout plan at the end of the applicable time period: at the end of the applicable time period: Band 3 Annuity 1 year 3 years 5 years 10 years 1 year 3 years 5 years 10 years RAVA Advantage Plus - Band 3 With a ten-year surrender charge schedule** $1,262.79 $2,193.54 $3,031.22 $4,906.15 $462.79 $1,393.54 $2,331.22 $4,706.15 RAVA Advantage Plus - Band 3 With a seven-year surrender charge schedule 1,162.79 2,093.54 2,831.22 4,706.15 462.79 1,393.54 2,331.22 4,706.15 RAVA Select Plus - Band 3 1,184.42 2,155.51 2,429.64 4,878.26 484.42 1,455.51 2,429.64 4,878.26 RAVA Select Plus - Texas - Band 3 1,284.42 2,055.51 2,429.64 4,878.26 484.42 1,455.51 2,429.64 4,878.26
-------------------------------------------------------------------------------- 12 AMERICAN EXPRESS RETIREMENT ADVISOR ADVANTAGE PLUS / RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS Minimum Expenses. These examples assume the least expensive combination of contract features and benefits and the minimum fees and expenses of any of the funds. They assume that you do not select any optional benefits. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:
If you do not surrender your contract If you surrender your contract or if you select an annuity payout plan at the end of the applicable time period: at the end of the applicable time period: Nonqualified Annuity 1 year 3 years 5 years 10 years 1 year 3 years 5 years 10 years RAVA Advantage Plus RAVA Advantage Plus With a ten-year surrender charge schedule** $967.59 $1,319.66 $1,595.53 $2,150.13 $167.59 $519.66 $ 895.53 $1,950.13 RAVA Advantage Plus With a seven-year surrender charge schedule 867.59 1,219.66 1,395.53 1,950.13 167.59 519.66 895.53 1,950.13 RAVA Select Plus 894.34 1,301.02 1,032.95 2,233.71 194.34 601.02 1,032.95 2,233.71 RAVA Select Plus - Texas 994.34 1,201.02 1,032.95 2,233.71 194.34 601.02 1,032.95 2,233.71 If you do not surrender your contract If you surrender your contract or if you select an annuity payout plan at the end of the applicable time period: at the end of the applicable time period: Qualified Annuity 1 year 3 years 5 years 10 years 1 year 3 years 5 years 10 years RAVA Advantage Plus With a ten-year surrender charge schedule** $947.09 $1,257.02 $1,489.21 $1,927.87 $147.09 $457.02 $789.21 $1,727.87 RAVA Advantage Plus With a seven-year surrender charge schedule 847.09 1,157.02 1,289.21 1,727.87 147.09 457.02 789.21 1,727.87 RAVA Select Plus 873.84 1,238.71 927.78 2,017.06 173.84 538.71 927.78 2,017.06 RAVA Select Plus - Texas 973.84 1,138.71 927.78 2,017.06 173.84 538.71 927.78 2,017.06 If you do not surrender your contract If you surrender your contract or if you select an annuity payout plan at the end of the applicable time period: at the end of the applicable time period: Band 3 Annuity 1 year 3 years 5 years 10 years 1 year 3 years 5 years 10 years RAVA Advantage Plus - Band 3 With a ten-year surrender charge schedule** $926.59 $1,194.12 $1,382.01 $1,701.22 $126.59 $394.12 $682.01 $1,501.22 RAVA Advantage Plus - Band 3 With a seven-year surrender charge schedule 826.59 1,094.12 1,182.01 1,501.22 126.59 394.12 682.01 1,501.22 RAVA Select Plus - Band 3 848.22 1,160.47 795.08 1,740.20 148.22 460.47 795.08 1,740.20 RAVA Select Plus - Texas - Band 3 948.22 1,060.47 795.08 1,740.20 148.22 460.47 795.08 1,740.20
* In these examples, the contract administrative charge is approximated as a .045% charge for RAVA Advantage Plus, a .056% charge for RAVA Select Plus, a .056% for RAVA Select Plus - Texas, a 0.045% charge for RAVA Advantage Plus - Band 3, a .056% charge for RAVA Select Plus - Band 3 and a .056% charge for RAVA Select Plus - Texas - Band 3. These percentages were determined by dividing the total amount of the contract administrative charges collected during the year that are attributable to each contract by the total average net assets that are attributable to that contract. ** In Connecticut, your expenses would be slightly lower due to the modified ten-year surrender charge schedule. -------------------------------------------------------------------------------- 13 AMERICAN EXPRESS RETIREMENT ADVISOR ADVANTAGE PLUS / RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS Condensed Financial Information (Unaudited) The following tables give per-unit information about the financial history of the subaccounts. The date in which operations commenced in each sub-account is noted in parentheses. We have not provided this information for some of the subaccounts because they are new and do not have any history. Variable account expenses of 0.55% of the daily net assets of the variable account.
Year ended Dec. 31, 2002 2001 2000 1999 ---------------------------------------------------------------------------------------------------------------------------- Subaccount CR3 (Investing in shares of AXP(R) Variable Portfolio - Capital Resource Fund) (9/15/1999) Accumulation unit value at beginning of period $0.76 $0.94 $1.14 $1.00 Accumulation unit value at end of period $0.59 $0.76 $0.94 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 202 291 266 872 ---------------------------------------------------------------------------------------------------------------------------- Subaccount CM3 (Investing in shares of AXP(R) Variable Portfolio - Cash Management Fund) (9/15/1999) Accumulation unit value at beginning of period $1.10 $1.07 $1.01 $1.00 Accumulation unit value at end of period $1.11 $1.10 $1.07 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 3,911 5,658 6,615 2,266 ---------------------------------------------------------------------------------------------------------------------------- Subaccount BD3 (Investing in shares of AXP(R) Variable Portfolio - Diversified Bond Fund) (9/15/1999) Accumulation unit value at beginning of period $1.14 $1.06 $1.02 $1.00 Accumulation unit value at end of period $1.20 $1.14 $1.06 $1.02 Number of accumulation units outstanding at end of period (000 omitted) 762 985 410 47 ---------------------------------------------------------------------------------------------------------------------------- Subaccount DE3 (Investing in shares of AXP(R) Variable Portfolio - Diversified Equity Income Fund) (9/15/1999) Accumulation unit value at beginning of period $1.02 $1.01 $1.02 $1.00 Accumulation unit value at end of period $0.82 $1.02 $1.01 $1.02 Number of accumulation units outstanding at end of period (000 omitted) 1,262 281 218 23 ---------------------------------------------------------------------------------------------------------------------------- Subaccount EM3 (Investing in shares of AXP(R) Variable Portfolio - Emerging Markets Fund) (5/1/2000) Accumulation unit value at beginning of period $0.73 $0.75 $1.00 -- Accumulation unit value at end of period $0.69 $0.73 $0.75 -- Number of accumulation units outstanding at end of period (000 omitted) 277 3 1 -- ---------------------------------------------------------------------------------------------------------------------------- Subaccount ES3 (Investing in shares of AXP(R) Variable Portfolio - Equity Select Fund) (5/1/2001) Accumulation unit value at beginning of period $1.01 $1.00 -- -- Accumulation unit value at end of period $0.87 $1.01 -- -- Number of accumulation units outstanding at end of period (000 omitted) 328 38 -- -- ---------------------------------------------------------------------------------------------------------------------------- Subaccount GB3 (Investing in shares of AXP(R) Variable Portfolio - Global Bond Fund) (9/15/1999) Accumulation unit value at beginning of period $1.04 $1.03 $1.00 $1.00 Accumulation unit value at end of period $1.18 $1.04 $1.03 $1.00 Number of accumulation units outstanding at end of period (000 omitted) 251 249 4 3 ---------------------------------------------------------------------------------------------------------------------------- Subaccount GR3 (Investing in shares of AXP(R) Variable Portfolio - Growth Fund) (9/15/1999) Accumulation unit value at beginning of period $0.64 $0.94 $1.17 $1.00 Accumulation unit value at end of period $0.47 $0.64 $0.94 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 1,064 1,285 1,762 401 ---------------------------------------------------------------------------------------------------------------------------- Subaccount EI3 (Investing in shares of AXP(R) Variable Portfolio - High Yield Bond Fund) (9/15/1999) Accumulation unit value at beginning of period $0.95 $0.91 $1.01 $1.00 Accumulation unit value at end of period $0.89 $0.95 $0.91 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 1,480 1,549 1,186 48 ---------------------------------------------------------------------------------------------------------------------------- Subaccount IE3 (Investing in shares of AXP(R) Variable Portfolio - International Fund) (9/15/1999) Accumulation unit value at beginning of period $0.67 $0.95 $1.27 $1.00 Accumulation unit value at end of period $0.55 $0.67 $0.95 $1.27 Number of accumulation units outstanding at end of period (000 omitted) 488 65 81 133 ---------------------------------------------------------------------------------------------------------------------------- Subaccount MF3 (Investing in shares of AXP(R) Variable Portfolio - Managed Fund) (9/15/1999) Accumulation unit value at beginning of period $0.94 $1.06 $1.09 $1.00 Accumulation unit value at end of period $0.81 $0.94 $1.06 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 120 296 145 10 ---------------------------------------------------------------------------------------------------------------------------- Subaccount ND3 (Investing in shares of AXP(R) Variable Portfolio - New Dimensions Fund(R)) (9/15/1999) Accumulation unit value at beginning of period $0.89 $1.08 $1.19 $1.00 Accumulation unit value at end of period $0.69 $0.89 $1.08 $1.19 Number of accumulation units outstanding at end of period (000 omitted) 3,029 3,252 3,919 426 ----------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- 14 AMERICAN EXPRESS RETIREMENT ADVISOR ADVANTAGE PLUS / RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS
Variable account expenses of 0.55% of the daily net assets of the variable account. (continued) Year ended Dec. 31, 2002 2001 2000 1999 ---------------------------------------------------------------------------------------------------------------------------- Subaccount SV3 (Investing in shares of AXP(R) Variable Portfolio - Partners Small Cap Value Fund) (8/14/2001) Accumulation unit value at beginning of period $1.07 $1.00 -- -- Accumulation unit value at end of period $0.93 $1.07 -- -- Number of accumulation units outstanding at end of period (000 omitted) 627 411 -- -- ---------------------------------------------------------------------------------------------------------------------------- Subaccount IV3 (Investing in shares of AXP(R) Variable Portfolio - S&P 500 Index Fund) (5/1/2000) Accumulation unit value at beginning of period $0.79 $0.90 $1.00 -- Accumulation unit value at end of period $0.61 $0.79 $0.90 -- Number of accumulation units outstanding at end of period (000 omitted) 973 770 285 -- ---------------------------------------------------------------------------------------------------------------------------- Subaccount FI3 (Investing in shares of AXP(R) Variable Portfolio - Short Duration U.S. Government Fund) (9/15/1999) Accumulation unit value at beginning of period $1.15 $1.09 $1.01 $1.00 Accumulation unit value at end of period $1.21 $1.15 $1.09 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 1,275 592 1 10 ---------------------------------------------------------------------------------------------------------------------------- Subaccount SC3 (Investing in shares of AXP(R) Variable Portfolio - Small Cap Advantage Fund) (9/15/1999) Accumulation unit value at beginning of period $1.08 $1.16 $1.12 $1.00 Accumulation unit value at end of period $0.89 $1.08 $1.16 $1.12 Number of accumulation units outstanding at end of period (000 omitted) 393 378 286 28 ---------------------------------------------------------------------------------------------------------------------------- Subaccount SA3 (Investing in shares of AXP(R) Variable Portfolio - Strategy Aggressive Fund) (9/15/1999) Accumulation unit value at beginning of period $0.81 $1.22 $1.52 $1.00 Accumulation unit value at end of period $0.55 $0.81 $1.22 $1.52 Number of accumulation units outstanding at end of period (000 omitted) 386 607 798 33 ---------------------------------------------------------------------------------------------------------------------------- Subaccount 3AC (Investing in shares of AIM V.I. Capital Appreciation Fund, Series II Shares) (8/13/2001) Accumulation unit value at beginning of period $0.98 $1.00 -- -- Accumulation unit value at end of period $0.73 $0.98 -- -- Number of accumulation units outstanding at end of period (000 omitted) 4 6 -- -- ---------------------------------------------------------------------------------------------------------------------------- Subaccount 3AD (Investing in shares of AIM V.I. Capital Development Fund, Series II Shares) (8/13/2001) Accumulation unit value at beginning of period $0.98 $1.00 -- -- Accumulation unit value at end of period $0.77 $0.98 -- -- Number of accumulation units outstanding at end of period (000 omitted) 180 3 -- -- ---------------------------------------------------------------------------------------------------------------------------- Subaccount 3AL (Investing in shares of AllianceBernstein VP Growth and Income Portfolio (Class B)) (8/13/2001) Accumulation unit value at beginning of period $0.97 $1.00 -- -- Accumulation unit value at end of period $0.75 $0.97 -- -- Number of accumulation units outstanding at end of period (000 omitted) 310 136 -- -- ---------------------------------------------------------------------------------------------------------------------------- Subaccount 3AB (Investing in shares of AllianceBernstein VP International Value Portfolio (Class B)) (8/13/2001) Accumulation unit value at beginning of period $0.98 $1.00 -- -- Accumulation unit value at end of period $0.92 $0.98 -- -- Number of accumulation units outstanding at end of period (000 omitted) 606 210 -- -- ---------------------------------------------------------------------------------------------------------------------------- Subaccount 3AI (Investing in shares of American Century(R) VP International, Class II) (8/13/2001) Accumulation unit value at beginning of period $0.93 $1.00 -- -- Accumulation unit value at end of period $0.74 $0.93 -- -- Number of accumulation units outstanding at end of period (000 omitted) 254 1 -- -- ---------------------------------------------------------------------------------------------------------------------------- Subaccount 3AV (Investing in shares of American Century(R) VP Value, Class II) (8/13/2001) Accumulation unit value at beginning of period $1.04 $1.00 -- -- Accumulation unit value at end of period $0.90 $1.04 -- -- Number of accumulation units outstanding at end of period (000 omitted) 483 146 -- -- ---------------------------------------------------------------------------------------------------------------------------- Subaccount 3SR (Investing in shares of Calvert Variable Series, Inc. Social Balanced Portfolio) (5/1/2000) Accumulation unit value at beginning of period $0.89 $0.96 $1.00 -- Accumulation unit value at end of period $0.78 $0.89 $0.96 -- Number of accumulation units outstanding at end of period (000 omitted) 8 6 5 -- ---------------------------------------------------------------------------------------------------------------------------- Subaccount 3FG (Investing in shares of Fidelity(R) VIP Growth & Income Portfolio Service Class 2) (8/13/2001) Accumulation unit value at beginning of period $1.00 $1.00 -- -- Accumulation unit value at end of period $0.83 $1.00 -- -- Number of accumulation units outstanding at end of period (000 omitted) 233 132 -- -- ----------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- 15 AMERICAN EXPRESS RETIREMENT ADVISOR ADVANTAGE PLUS / RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS
Variable account expenses of 0.55% of the daily net assets of the variable account. (continued) Year ended Dec. 31, 2002 2001 2000 1999 ---------------------------------------------------------------------------------------------------------------------------- Subaccount 3FM (Investing in shares of Fidelity(R) VIP Mid Cap Portfolio Service Class 2) (8/13/2001) Accumulation unit value at beginning of period $1.04 $1.00 -- -- Accumulation unit value at end of period $0.93 $1.04 -- -- Number of accumulation units outstanding at end of period (000 omitted) 325 132 -- -- ---------------------------------------------------------------------------------------------------------------------------- Subaccount 3FO (Investing in shares of Fidelity(R) VIP Overseas Portfolio Service Class 2) (8/13/2001) Accumulation unit value at beginning of period $0.95 $1.00 -- -- Accumulation unit value at end of period $0.75 $0.95 -- -- Number of accumulation units outstanding at end of period (000 omitted) 324 7 -- -- ---------------------------------------------------------------------------------------------------------------------------- Subaccount 3RE (Investing in shares of FTVIPT Franklin Real Estate Fund - Class 2) (9/15/1999) Accumulation unit value at beginning of period $1.35 $1.26 $0.96 $1.00 Accumulation unit value at end of period $1.37 $1.35 $1.26 $0.96 Number of accumulation units outstanding at end of period (000 omitted) 205 211 148 4 ---------------------------------------------------------------------------------------------------------------------------- Subaccount 3SI (Investing in shares of FTVIPT Franklin Small Cap Value Securities Fund - Class 2) (9/15/1999) Accumulation unit value at beginning of period $1.35 $1.20 $0.96 $1.00 Accumulation unit value at end of period $1.22 $1.35 $1.20 $0.96 Number of accumulation units outstanding at end of period (000 omitted) 282 150 9 2 ---------------------------------------------------------------------------------------------------------------------------- Subaccount 3MS (Investing in shares of FTVIPT Mutual Shares Securities Fund - Class 2) (8/13/2001) Accumulation unit value at beginning of period $0.97 $1.00 -- -- Accumulation unit value at end of period $0.85 $0.97 -- -- Number of accumulation units outstanding at end of period (000 omitted) 130 -- -- -- ---------------------------------------------------------------------------------------------------------------------------- Subaccount 3UE (Investing in shares of Goldman Sachs VIT CORE(SM) U.S. Equity Fund) (9/15/1999) Accumulation unit value at beginning of period $0.87 $0.99 $1.10 $1.00 Accumulation unit value at end of period $0.67 $0.87 $0.99 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 694 943 577 170 ---------------------------------------------------------------------------------------------------------------------------- Subaccount 3MC (Investing in shares of Goldman Sachs VIT Mid Cap Value Fund) (9/15/1999) Accumulation unit value at beginning of period $1.38 $1.24 $0.95 $1.00 Accumulation unit value at end of period $1.31 $1.38 $1.24 $0.95 Number of accumulation units outstanding at end of period (000 omitted) 450 200 15 8 ---------------------------------------------------------------------------------------------------------------------------- Subaccount 3FS (Investing in shares of INVESCO VIF - Financial Services Fund) (8/13/2001) Accumulation unit value at beginning of period $0.97 $1.00 -- -- Accumulation unit value at end of period $0.82 $0.97 -- -- Number of accumulation units outstanding at end of period (000 omitted) 3 -- -- -- ---------------------------------------------------------------------------------------------------------------------------- Subaccount 3TC (Investing in shares of INVESCO VIF - Technology Fund) (8/13/2001) Accumulation unit value at beginning of period $0.91 $1.00 -- -- Accumulation unit value at end of period $0.48 $0.91 -- -- Number of accumulation units outstanding at end of period (000 omitted) 3 -- -- -- ---------------------------------------------------------------------------------------------------------------------------- Subaccount 3IP (Investing in shares of Lazard Retirement International Equity Portfolio) (9/15/1999) Accumulation unit value at beginning of period $0.73 $0.96 $1.07 $1.00 Accumulation unit value at end of period $0.65 $0.73 $0.96 $1.07 Number of accumulation units outstanding at end of period (000 omitted) 636 253 57 8 ---------------------------------------------------------------------------------------------------------------------------- Subaccount 3MG (Investing in shares of MFS(R) Investors Growth Stock Series - Service Class) (5/1/2000) Accumulation unit value at beginning of period $0.68 $0.91 $1.00 -- Accumulation unit value at end of period $0.49 $0.68 $0.91 -- Number of accumulation units outstanding at end of period (000 omitted) 785 913 533 -- ---------------------------------------------------------------------------------------------------------------------------- Subaccount 3MD (Investing in shares of MFS(R) New Discovery Series - Service Class) (5/1/2000) Accumulation unit value at beginning of period $0.90 $0.96 $1.00 -- Accumulation unit value at end of period $0.61 $0.90 $0.96 -- Number of accumulation units outstanding at end of period (000 omitted) 485 548 352 -- ---------------------------------------------------------------------------------------------------------------------------- Subaccount 3UT (Investing in shares of MFS(R) Utilities Series - Service Class) (8/13/2001) Accumulation unit value at beginning of period $0.89 $1.00 -- -- Accumulation unit value at end of period $0.68 $0.89 -- -- Number of accumulation units outstanding at end of period (000 omitted) 139 138 -- -- ---------------------------------------------------------------------------------------------------------------------------- Subaccount 3HS (Investing in shares of Putnam VT Health Sciences Fund - Class IB Shares) (8/13/2001) Accumulation unit value at beginning of period $0.98 $1.00 -- -- Accumulation unit value at end of period $0.78 $0.98 -- -- Number of accumulation units outstanding at end of period (000 omitted) 145 129 -- -- ----------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- 16 AMERICAN EXPRESS RETIREMENT ADVISOR ADVANTAGE PLUS / RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS
Variable account expenses of 0.55% of the daily net assets of the variable account. (continued) Year ended Dec. 31, 2002 2001 2000 1999 ---------------------------------------------------------------------------------------------------------------------------- Subaccount 3PI (Investing in shares of Putnam VT International Equity Fund - Class IB Shares) (8/13/2001) Accumulation unit value at beginning of period $0.96 $1.00 -- -- Accumulation unit value at end of period $0.79 $0.96 -- -- Number of accumulation units outstanding at end of period (000 omitted) 881 418 -- -- ---------------------------------------------------------------------------------------------------------------------------- Subaccount 3VS (Investing in shares of Putnam VT Vista Fund - Class IB Shares) (9/15/1999) Accumulation unit value at beginning of period $0.86 $1.29 $1.36 $1.00 Accumulation unit value at end of period $0.59 $0.86 $1.29 $1.36 Number of accumulation units outstanding at end of period (000 omitted) 525 1,092 1,330 183 ---------------------------------------------------------------------------------------------------------------------------- Subaccount 3SO (Investing in shares of Strong Opportunity Fund II - Advisor Class) (8/13/2001) Accumulation unit value at beginning of period $0.99 $1.00 -- -- Accumulation unit value at end of period $0.72 $0.99 -- -- Number of accumulation units outstanding at end of period (000 omitted) 314 136 -- -- ---------------------------------------------------------------------------------------------------------------------------- Subaccount 3IT (Investing in shares of Wanger International Small Cap) (9/15/1999) Accumulation unit value at beginning of period $0.85 $1.09 $1.51 $1.00 Accumulation unit value at end of period $0.73 $0.85 $1.09 $1.51 Number of accumulation units outstanding at end of period (000 omitted) 1,484 769 599 112 ---------------------------------------------------------------------------------------------------------------------------- Subaccount 3SP (Investing in shares of Wanger U.S. Smaller Companies) (9/15/1999) Accumulation unit value at beginning of period $1.17 $1.05 $1.15 $1.00 Accumulation unit value at end of period $0.96 $1.17 $1.05 $1.15 Number of accumulation units outstanding at end of period (000 omitted) 847 820 990 125 ----------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- 17 AMERICAN EXPRESS RETIREMENT ADVISOR ADVANTAGE PLUS / RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS
Variable account expenses of 0.75% of the daily net assets of the variable account. Year ended Dec. 31, 2002 2001 2000 1999 ---------------------------------------------------------------------------------------------------------------------------- Subaccount CR2 (Investing in shares of AXP(R) Variable Portfolio - Capital Resource Fund) (9/15/1999) Accumulation unit value at beginning of period $0.76 $0.93 $1.14 $1.00 Accumulation unit value at end of period $0.59 $0.76 $0.93 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 52,124 26,327 24,003 5,333 ---------------------------------------------------------------------------------------------------------------------------- Subaccount CM2 (Investing in shares of AXP(R) Variable Portfolio - Cash Management Fund) (9/15/1999) Accumulation unit value at beginning of period $1.09 $1.06 $1.01 $1.00 Accumulation unit value at end of period $1.10 $1.09 $1.06 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 255,251 243,870 171,785 65,522 ---------------------------------------------------------------------------------------------------------------------------- Subaccount BD2 (Investing in shares of AXP(R) Variable Portfolio - Diversified Bond Fund) (9/15/1999) Accumulation unit value at beginning of period $1.13 $1.06 $1.01 $1.00 Accumulation unit value at end of period $1.19 $1.13 $1.06 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 154,530 83,968 30,783 7,186 ---------------------------------------------------------------------------------------------------------------------------- Subaccount DE2 (Investing in shares of AXP(R) Variable Portfolio - Diversified Equity Income Fund) (9/15/1999) Accumulation unit value at beginning of period $1.02 $1.01 $1.03 $1.00 Accumulation unit value at end of period $0.82 $1.02 $1.01 $1.03 Number of accumulation units outstanding at end of period (000 omitted) 86,442 43,328 12,124 3,149 ---------------------------------------------------------------------------------------------------------------------------- Subaccount EM2 (Investing in shares of AXP(R) Variable Portfolio - Emerging Markets Fund) (5/1/2000) Accumulation unit value at beginning of period $0.72 $0.74 $1.00 -- Accumulation unit value at end of period $0.68 $0.72 $0.74 -- Number of accumulation units outstanding at end of period (000 omitted) 4,750 1,789 906 -- ---------------------------------------------------------------------------------------------------------------------------- Subaccount ES2 (Investing in shares of AXP(R) Variable Portfolio - Equity Select Fund) (5/1/2001) Accumulation unit value at beginning of period $1.00 $1.00 -- -- Accumulation unit value at end of period $0.85 $1.00 -- -- Number of accumulation units outstanding at end of period (000 omitted) 16,388 2,489 -- -- ---------------------------------------------------------------------------------------------------------------------------- Subaccount GB2 (Investing in shares of AXP(R) Variable Portfolio - Global Bond Fund) (9/15/1999) Accumulation unit value at beginning of period $1.03 $1.03 $1.00 $1.00 Accumulation unit value at end of period $1.18 $1.03 $1.03 $1.00 Number of accumulation units outstanding at end of period (000 omitted) 31,133 16,572 8,968 1,552 ---------------------------------------------------------------------------------------------------------------------------- Subaccount GR2 (Investing in shares of AXP(R) Variable Portfolio - Growth Fund) (9/15/1999) Accumulation unit value at beginning of period $0.65 $0.95 $1.18 $1.00 Accumulation unit value at end of period $0.48 $0.65 $0.95 $1.18 Number of accumulation units outstanding at end of period (000 omitted) 135,693 129,186 97,754 16,891 ---------------------------------------------------------------------------------------------------------------------------- Subaccount EI2 (Investing in shares of AXP(R) Variable Portfolio - High Yield Bond Fund) (9/15/1999) Accumulation unit value at beginning of period $0.95 $0.91 $1.01 $1.00 Accumulation unit value at end of period $0.88 $0.95 $0.91 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 93,845 58,348 31,722 7,774 ---------------------------------------------------------------------------------------------------------------------------- Subaccount IE2 (Investing in shares of AXP(R) Variable Portfolio - International Fund) (9/15/1999) Accumulation unit value at beginning of period $0.67 $0.95 $1.27 $1.00 Accumulation unit value at end of period $0.55 $0.67 $0.95 $1.27 Number of accumulation units outstanding at end of period (000 omitted) 20,012 15,821 13,967 2,575 ---------------------------------------------------------------------------------------------------------------------------- Subaccount MF2 (Investing in shares of AXP(R) Variable Portfolio - Managed Fund) (9/15/1999) Accumulation unit value at beginning of period $0.94 $1.05 $1.09 $1.00 Accumulation unit value at end of period $0.81 $0.94 $1.05 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 64,273 37,760 28,348 5,220 ---------------------------------------------------------------------------------------------------------------------------- Subaccount ND2 (Investing in shares of AXP(R) Variable Portfolio - New Dimensions Fund(R)) (9/15/1999) Accumulation unit value at beginning of period $0.89 $1.07 $1.19 $1.00 Accumulation unit value at end of period $0.69 $0.89 $1.07 $1.19 Number of accumulation units outstanding at end of period (000 omitted) 373,715 276,054 177,036 31,537 ---------------------------------------------------------------------------------------------------------------------------- Subaccount SV2 (Investing in shares of AXP(R) Variable Portfolio - Partners Small Cap Value Fund) (8/14/2001) Accumulation unit value at beginning of period $1.07 $1.00 -- -- Accumulation unit value at end of period $0.93 $1.07 -- -- Number of accumulation units outstanding at end of period (000 omitted) 43,199 6,885 -- -- ---------------------------------------------------------------------------------------------------------------------------- Subaccount IV2 (Investing in shares of AXP(R) Variable Portfolio - S&P 500 Index Fund) (5/1/2000) Accumulation unit value at beginning of period $0.79 $0.91 $1.00 -- Accumulation unit value at end of period $0.61 $0.79 $0.91 -- Number of accumulation units outstanding at end of period (000 omitted) 64,771 35,957 9,812 -- ----------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- 18 AMERICAN EXPRESS RETIREMENT ADVISOR ADVANTAGE PLUS / RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS
Variable account expenses of 0.75% of the daily net assets of the variable account. (continued) Year ended Dec. 31, 2002 2001 2000 1999 ---------------------------------------------------------------------------------------------------------------------------- Subaccount FI2 (Investing in shares of AXP(R) Variable Portfolio - Short Duration U.S. Government Fund) (9/15/1999) Accumulation unit value at beginning of period $1.14 $1.08 $1.00 $1.00 Accumulation unit value at end of period $1.20 $1.14 $1.08 $1.00 Number of accumulation units outstanding at end of period (000 omitted) 124,866 50,510 16,258 11,135 ---------------------------------------------------------------------------------------------------------------------------- Subaccount SC2 (Investing in shares of AXP(R) Variable Portfolio - Small Cap Advantage Fund) (9/15/1999) Accumulation unit value at beginning of period $1.08 $1.16 $1.12 $1.00 Accumulation unit value at end of period $0.89 $1.08 $1.16 $1.12 Number of accumulation units outstanding at end of period (000 omitted) 29,202 22,792 14,830 2,970 ---------------------------------------------------------------------------------------------------------------------------- Subaccount SA2 (Investing in shares of AXP(R) Variable Portfolio - Strategy Aggressive Fund) (9/15/1999) Accumulation unit value at beginning of period $0.81 $1.22 $1.51 $1.00 Accumulation unit value at end of period $0.55 $0.81 $1.22 $1.51 Number of accumulation units outstanding at end of period (000 omitted) 58,958 58,748 46,978 4,470 ---------------------------------------------------------------------------------------------------------------------------- Subaccount 2AC (Investing in shares of AIM V.I. Capital Appreciation Fund, Series II Shares) (8/13/2001) Accumulation unit value at beginning of period $0.98 $1.00 -- -- Accumulation unit value at end of period $0.73 $0.98 -- -- Number of accumulation units outstanding at end of period (000 omitted) 11,313 1,710 -- -- ---------------------------------------------------------------------------------------------------------------------------- Subaccount 2AD (Investing in shares of AIM V.I. Capital Development Fund, Series II Shares) (8/13/2001) Accumulation unit value at beginning of period $0.98 $1.00 -- -- Accumulation unit value at end of period $0.76 $0.98 -- -- Number of accumulation units outstanding at end of period (000 omitted) 6,981 1,459 -- -- ---------------------------------------------------------------------------------------------------------------------------- Subaccount 2AL (Investing in shares of AllianceBernstein VP Growth and Income Portfolio (Class B)) (8/13/2001) Accumulation unit value at beginning of period $0.96 $1.00 -- -- Accumulation unit value at end of period $0.74 $0.96 -- -- Number of accumulation units outstanding at end of period (000 omitted) 43,189 5,550 -- -- ---------------------------------------------------------------------------------------------------------------------------- Subaccount 2AB (Investing in shares of AllianceBernstein VP International Value Portfolio (Class B)) (8/13/2001) Accumulation unit value at beginning of period $0.98 $1.00 -- -- Accumulation unit value at end of period $0.92 $0.98 -- -- Number of accumulation units outstanding at end of period (000 omitted) 12,313 805 -- -- ---------------------------------------------------------------------------------------------------------------------------- Subaccount 2AI (Investing in shares of American Century(R) VP International, Class II) (8/13/2001) Accumulation unit value at beginning of period $0.93 $1.00 -- -- Accumulation unit value at end of period $0.73 $0.93 -- -- Number of accumulation units outstanding at end of period (000 omitted) 11,378 1,950 -- -- ---------------------------------------------------------------------------------------------------------------------------- Subaccount 2AV (Investing in shares of American Century(R) VP Value, Class II) (8/13/2001) Accumulation unit value at beginning of period $1.04 $1.00 -- -- Accumulation unit value at end of period $0.90 $1.04 -- -- Number of accumulation units outstanding at end of period (000 omitted) 42,497 7,356 -- -- ---------------------------------------------------------------------------------------------------------------------------- Subaccount 2SR (Investing in shares of Calvert Variable Series, Inc. Social Balanced Portfolio) (5/1/2000) Accumulation unit value at beginning of period $0.89 $0.96 $1.00 -- Accumulation unit value at end of period $0.78 $0.89 $0.96 -- Number of accumulation units outstanding at end of period (000 omitted) 9,520 4,490 1,283 -- ---------------------------------------------------------------------------------------------------------------------------- Subaccount 2FG (Investing in shares of Fidelity(R) VIP Growth & Income Portfolio Service Class 2) (8/13/2001) Accumulation unit value at beginning of period $1.00 $1.00 -- -- Accumulation unit value at end of period $0.82 $1.00 -- -- Number of accumulation units outstanding at end of period (000 omitted) 48,686 6,363 -- -- ---------------------------------------------------------------------------------------------------------------------------- Subaccount 2FM (Investing in shares of Fidelity(R) VIP Mid Cap Portfolio Service Class 2) (8/13/2001) Accumulation unit value at beginning of period $1.04 $1.00 -- -- Accumulation unit value at end of period $0.93 $1.04 -- -- Number of accumulation units outstanding at end of period (000 omitted) 50,458 6,903 -- -- ---------------------------------------------------------------------------------------------------------------------------- Subaccount 2FO (Investing in shares of Fidelity(R) VIP Overseas Portfolio Service Class 2) (8/13/2001) Accumulation unit value at beginning of period $0.95 $1.00 -- -- Accumulation unit value at end of period $0.75 $0.95 -- -- Number of accumulation units outstanding at end of period (000 omitted) 13,157 2,147 -- -- ----------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- 19 AMERICAN EXPRESS RETIREMENT ADVISOR ADVANTAGE PLUS / RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS
Variable account expenses of 0.75% of the daily net assets of the variable account. (continued) Year ended Dec. 31, 2002 2001 2000 1999 ---------------------------------------------------------------------------------------------------------------------------- Subaccount 2RE (Investing in shares of FTVIPT Franklin Real Estate Fund - Class 2) (9/15/1999) Accumulation unit value at beginning of period $1.34 $1.25 $0.96 $1.00 Accumulation unit value at end of period $1.36 $1.34 $1.25 $0.96 Number of accumulation units outstanding at end of period (000 omitted) 59,317 24,477 6,879 885 ---------------------------------------------------------------------------------------------------------------------------- Subaccount 2SI (Investing in shares of FTVIPT Franklin Small Cap Value Securities Fund - Class 2) (9/15/1999) Accumulation unit value at beginning of period $1.35 $1.19 $0.96 $1.00 Accumulation unit value at end of period $1.21 $1.35 $1.19 $0.96 Number of accumulation units outstanding at end of period (000 omitted) 29,743 10,800 2,846 586 ---------------------------------------------------------------------------------------------------------------------------- Subaccount 2MS (Investing in shares of FTVIPT Mutual Shares Securities Fund - Class 2) (8/13/2001) Accumulation unit value at beginning of period $0.97 $1.00 -- -- Accumulation unit value at end of period $0.85 $0.97 -- -- Number of accumulation units outstanding at end of period (000 omitted) 10,942 942 -- -- ---------------------------------------------------------------------------------------------------------------------------- Subaccount 2UE (Investing in shares of Goldman Sachs VIT CORE(SM) U.S. Equity Fund) (9/15/1999) Accumulation unit value at beginning of period $0.86 $0.99 $1.10 $1.00 Accumulation unit value at end of period $0.67 $0.86 $0.99 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 71,820 60,343 42,626 8,981 ---------------------------------------------------------------------------------------------------------------------------- Subaccount 2MC (Investing in shares of Goldman Sachs VIT Mid Cap Value Fund) (9/15/1999) Accumulation unit value at beginning of period $1.37 $1.23 $0.95 $1.00 Accumulation unit value at end of period $1.30 $1.37 $1.23 $0.95 Number of accumulation units outstanding at end of period (000 omitted) 56,079 23,748 7,622 1,634 ---------------------------------------------------------------------------------------------------------------------------- Subaccount 2FS (Investing in shares of INVESCO VIF - Financial Services Fund) (8/13/2001) Accumulation unit value at beginning of period $0.97 $1.00 -- -- Accumulation unit value at end of period $0.82 $0.97 -- -- Number of accumulation units outstanding at end of period (000 omitted) 5,572 1,081 -- -- ---------------------------------------------------------------------------------------------------------------------------- Subaccount 2TC (Investing in shares of INVESCO VIF - Technology Fund) (8/13/2001) Accumulation unit value at beginning of period $0.91 $1.00 -- -- Accumulation unit value at end of period $0.48 $0.91 -- -- Number of accumulation units outstanding at end of period (000 omitted) 3,769 490 -- -- ---------------------------------------------------------------------------------------------------------------------------- Subaccount 2IP (Investing in shares of Lazard Retirement International Equity Portfolio) (9/15/1999) Accumulation unit value at beginning of period $0.72 $0.96 $1.07 $1.00 Accumulation unit value at end of period $0.64 $0.72 $0.96 $1.07 Number of accumulation units outstanding at end of period (000 omitted) 29,532 15,860 7,958 1,981 ---------------------------------------------------------------------------------------------------------------------------- Subaccount 2MG (Investing in shares of MFS(R) Investors Growth Stock Series - Service Class) (5/1/2000) Accumulation unit value at beginning of period $0.68 $0.91 $1.00 -- Accumulation unit value at end of period $0.48 $0.68 $0.91 -- Number of accumulation units outstanding at end of period (000 omitted) 69,576 50,212 19,521 -- ---------------------------------------------------------------------------------------------------------------------------- Subaccount 2MD (Investing in shares of MFS(R) New Discovery Series - Service Class) (5/1/2000) Accumulation unit value at beginning of period $0.90 $0.96 $1.00 -- Accumulation unit value at end of period $0.61 $0.90 $0.96 -- Number of accumulation units outstanding at end of period (000 omitted) 59,272 34,072 12,308 -- ---------------------------------------------------------------------------------------------------------------------------- Subaccount 2UT (Investing in shares of MFS(R) Utilities Series - Service Class) (8/13/2001) Accumulation unit value at beginning of period $0.89 $1.00 -- -- Accumulation unit value at end of period $0.68 $0.89 -- -- Number of accumulation units outstanding at end of period (000 omitted) 10,543 2,997 -- -- ---------------------------------------------------------------------------------------------------------------------------- Subaccount 2HS (Investing in shares of Putnam VT Health Sciences Fund - Class IB Shares) (8/13/2001) Accumulation unit value at beginning of period $0.98 $1.00 -- -- Accumulation unit value at end of period $0.78 $0.98 -- -- Number of accumulation units outstanding at end of period (000 omitted) 11,416 2,137 -- -- ---------------------------------------------------------------------------------------------------------------------------- Subaccount 2PI (Investing in shares of Putnam VT International Equity Fund - Class IB Shares) (8/13/2001) Accumulation unit value at beginning of period $0.96 $1.00 -- -- Accumulation unit value at end of period $0.78 $0.96 -- -- Number of accumulation units outstanding at end of period (000 omitted) 20,773 2,460 -- -- ---------------------------------------------------------------------------------------------------------------------------- Subaccount 2VS (Investing in shares of Putnam VT Vista Fund - Class IB Shares) (9/15/1999) Accumulation unit value at beginning of period $0.85 $1.29 $1.36 $1.00 Accumulation unit value at end of period $0.59 $0.85 $1.29 $1.36 Number of accumulation units outstanding at end of period (000 omitted) 72,033 74,819 49,764 5,084 ----------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- 20 AMERICAN EXPRESS RETIREMENT ADVISOR ADVANTAGE PLUS / RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS
Variable account expenses of 0.75% of the daily net assets of the variable account. (continued) Year ended Dec. 31, 2002 2001 2000 1999 ---------------------------------------------------------------------------------------------------------------------------- Subaccount 2SO (Investing in shares of Strong Opportunity Fund II - Advisor Class) (8/13/2001) Accumulation unit value at beginning of period $0.99 $1.00 -- -- Accumulation unit value at end of period $0.72 $0.99 -- -- Number of accumulation units outstanding at end of period (000 omitted) 25,397 3,701 -- -- ---------------------------------------------------------------------------------------------------------------------------- Subaccount 2IT (Investing in shares of Wanger International Small Cap) (9/15/1999) Accumulation unit value at beginning of period $0.85 $1.08 $1.51 $1.00 Accumulation unit value at end of period $0.72 $0.85 $1.08 $1.51 Number of accumulation units outstanding at end of period (000 omitted) 43,554 27,818 18,245 1,234 ---------------------------------------------------------------------------------------------------------------------------- Subaccount 2SP (Investing in shares of Wanger U.S. Smaller Companies) (9/15/1999) Accumulation unit value at beginning of period $1.16 $1.05 $1.15 $1.00 Accumulation unit value at end of period $0.96 $1.16 $1.05 $1.15 Number of accumulation units outstanding at end of period (000 omitted) 78,311 40,791 23,813 2,476 ----------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- 21 AMERICAN EXPRESS RETIREMENT ADVISOR ADVANTAGE PLUS / RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS
Variable account expenses of 0.95% of the daily net assets of the variable account. Year ended Dec. 31, 2002 2001 2000 1999 ---------------------------------------------------------------------------------------------------------------------------- Subaccount CR1 (Investing in shares of AXP(R) Variable Portfolio - Capital Resource Fund) (9/15/1999) Accumulation unit value at beginning of period $0.76 $0.93 $1.14 $1.00 Accumulation unit value at end of period $0.58 $0.76 $0.93 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 34,956 26,779 22,159 3,227 ---------------------------------------------------------------------------------------------------------------------------- Subaccount CM1 (Investing in shares of AXP(R) Variable Portfolio - Cash Management Fund) (9/15/1999) Accumulation unit value at beginning of period $1.09 $1.06 $1.01 $1.00 Accumulation unit value at end of period $1.09 $1.09 $1.06 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 228,237 265,455 203,922 87,424 ---------------------------------------------------------------------------------------------------------------------------- Subaccount BD1 (Investing in shares of AXP(R) Variable Portfolio - Diversified Bond Fund) (9/15/1999) Accumulation unit value at beginning of period $1.13 $1.06 $1.01 $1.00 Accumulation unit value at end of period $1.18 $1.13 $1.06 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 159,405 106,760 43,920 11,675 ---------------------------------------------------------------------------------------------------------------------------- Subaccount DE1 (Investing in shares of AXP(R) Variable Portfolio - Diversified Equity Income Fund) (9/15/1999) Accumulation unit value at beginning of period $1.02 $1.01 $1.03 $1.00 Accumulation unit value at end of period $0.82 $1.02 $1.01 $1.03 Number of accumulation units outstanding at end of period (000 omitted) 67,958 41,299 14,227 3,441 ---------------------------------------------------------------------------------------------------------------------------- Subaccount EM1 (Investing in shares of AXP(R) Variable Portfolio - Emerging Markets Fund) (5/1/2000) Accumulation unit value at beginning of period $0.72 $0.74 $1.00 -- Accumulation unit value at end of period $0.67 $0.72 $0.74 -- Number of accumulation units outstanding at end of period (000 omitted) 3,888 1,542 693 -- ---------------------------------------------------------------------------------------------------------------------------- Subaccount ES1 (Investing in shares of AXP(R) Variable Portfolio - Equity Select Fund) (5/1/2001) Accumulation unit value at beginning of period $0.99 $1.00 -- -- Accumulation unit value at end of period $0.85 $0.99 -- -- Number of accumulation units outstanding at end of period (000 omitted) 12,145 2,238 -- -- ---------------------------------------------------------------------------------------------------------------------------- Subaccount GB1 (Investing in shares of AXP(R) Variable Portfolio - Global Bond Fund) (9/15/1999) Accumulation unit value at beginning of period $1.03 $1.02 $1.00 $1.00 Accumulation unit value at end of period $1.17 $1.03 $1.02 $1.00 Number of accumulation units outstanding at end of period (000 omitted) 36,626 23,970 14,137 2,368 ---------------------------------------------------------------------------------------------------------------------------- Subaccount GR1 (Investing in shares of AXP(R) Variable Portfolio - Growth Fund) (9/15/1999) Accumulation unit value at beginning of period $0.64 $0.94 $1.18 $1.00 Accumulation unit value at end of period $0.47 $0.64 $0.94 $1.18 Number of accumulation units outstanding at end of period (000 omitted) 118,986 130,764 106,410 13,813 ---------------------------------------------------------------------------------------------------------------------------- Subaccount EI1 (Investing in shares of AXP(R) Variable Portfolio - High Yield Bond Fund) (9/15/1999) Accumulation unit value at beginning of period $0.94 $0.91 $1.01 $1.00 Accumulation unit value at end of period $0.87 $0.94 $0.91 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 122,784 88,813 52,655 10,137 ---------------------------------------------------------------------------------------------------------------------------- Subaccount IE1 (Investing in shares of AXP(R) Variable Portfolio - International Fund) (9/15/1999) Accumulation unit value at beginning of period $0.67 $0.95 $1.27 $1.00 Accumulation unit value at end of period $0.54 $0.67 $0.95 $1.27 Number of accumulation units outstanding at end of period (000 omitted) 19,189 18,664 15,670 2,173 ---------------------------------------------------------------------------------------------------------------------------- Subaccount MF1 (Investing in shares of AXP(R) Variable Portfolio - Managed Fund) (9/15/1999) Accumulation unit value at beginning of period $0.93 $1.05 $1.09 $1.00 Accumulation unit value at end of period $0.80 $0.93 $1.05 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 64,613 53,096 39,810 6,539 ---------------------------------------------------------------------------------------------------------------------------- Subaccount ND1 (Investing in shares of AXP(R) Variable Portfolio - New Dimensions Fund(R)) (9/15/1999) Accumulation unit value at beginning of period $0.88 $1.07 $1.19 $1.00 Accumulation unit value at end of period $0.68 $0.88 $1.07 $1.19 Number of accumulation units outstanding at end of period (000 omitted) 347,841 307,320 219,316 32,483 ---------------------------------------------------------------------------------------------------------------------------- Subaccount SV1 (Investing in shares of AXP(R) Variable Portfolio - Partners Small Cap Value Fund) (8/14/2001) Accumulation unit value at beginning of period $1.07 $1.00 -- -- Accumulation unit value at end of period $0.93 $1.07 -- -- Number of accumulation units outstanding at end of period (000 omitted) 28,099 6,314 -- -- ---------------------------------------------------------------------------------------------------------------------------- Subaccount IV1 (Investing in shares of AXP(R) Variable Portfolio - S&P 500 Index Fund) (5/1/2000) Accumulation unit value at beginning of period $0.79 $0.91 $1.00 -- Accumulation unit value at end of period $0.60 $0.79 $0.91 -- Number of accumulation units outstanding at end of period (000 omitted) 65,011 40,575 14,084 -- ----------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- 22 AMERICAN EXPRESS RETIREMENT ADVISOR ADVANTAGE PLUS / RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS
Variable account expenses of 0.95% of the daily net assets of the variable account. (continued) Year ended Dec. 31, 2002 2001 2000 1999 ---------------------------------------------------------------------------------------------------------------------------- Subaccount FI1 (Investing in shares of AXP(R) Variable Portfolio - Short Duration U.S. Government Fund) (9/15/1999) Accumulation unit value at beginning of period $1.13 $1.08 $1.00 $1.00 Accumulation unit value at end of period $1.19 $1.13 $1.08 $1.00 Number of accumulation units outstanding at end of period (000 omitted) 116,147 56,966 24,654 12,796 ---------------------------------------------------------------------------------------------------------------------------- Subaccount SC1 (Investing in shares of AXP(R) Variable Portfolio - Small Cap Advantage Fund) (9/15/1999) Accumulation unit value at beginning of period $1.07 $1.16 $1.12 $1.00 Accumulation unit value at end of period $0.88 $1.07 $1.16 $1.12 Number of accumulation units outstanding at end of period (000 omitted) 29,341 24,346 16,349 3,029 ---------------------------------------------------------------------------------------------------------------------------- Subaccount SA1 (Investing in shares of AXP(R) Variable Portfolio - Strategy Aggressive Fund) (9/15/1999) Accumulation unit value at beginning of period $0.81 $1.21 $1.51 $1.00 Accumulation unit value at end of period $0.54 $0.81 $1.21 $1.51 Number of accumulation units outstanding at end of period (000 omitted) 55,183 65,574 58,414 3,901 ---------------------------------------------------------------------------------------------------------------------------- Subaccount 1AC (Investing in shares of AIM V.I. Capital Appreciation Fund, Series II Shares) (8/13/2001) Accumulation unit value at beginning of period $0.98 $1.00 -- -- Accumulation unit value at end of period $0.73 $0.98 -- -- Number of accumulation units outstanding at end of period (000 omitted) 7,624 1,711 -- -- ---------------------------------------------------------------------------------------------------------------------------- Subaccount 1AD (Investing in shares of AIM V.I. Capital Development Fund, Series II Shares) (8/13/2001) Accumulation unit value at beginning of period $0.98 $1.00 -- -- Accumulation unit value at end of period $0.76 $0.98 -- -- Number of accumulation units outstanding at end of period (000 omitted) 4,808 1,224 -- -- ---------------------------------------------------------------------------------------------------------------------------- Subaccount 1AL (Investing in shares of AllianceBernstein VP Growth and Income Portfolio (Class B)) (8/13/2001) Accumulation unit value at beginning of period $0.96 $1.00 -- -- Accumulation unit value at end of period $0.74 $0.96 -- -- Number of accumulation units outstanding at end of period (000 omitted) 29,770 4,363 -- -- ---------------------------------------------------------------------------------------------------------------------------- Subaccount 1AB (Investing in shares of AllianceBernstein VP International Value Portfolio (Class B)) (8/13/2001) Accumulation unit value at beginning of period $0.98 $1.00 -- -- Accumulation unit value at end of period $0.92 $0.98 -- -- Number of accumulation units outstanding at end of period (000 omitted) 9,270 790 -- -- ---------------------------------------------------------------------------------------------------------------------------- Subaccount 1AI (Investing in shares of American Century(R) VP International, Class II) (8/13/2001) Accumulation unit value at beginning of period $0.93 $1.00 -- -- Accumulation unit value at end of period $0.73 $0.93 -- -- Number of accumulation units outstanding at end of period (000 omitted) 8,200 1,927 -- -- ---------------------------------------------------------------------------------------------------------------------------- Subaccount 1AV (Investing in shares of American Century(R) VP Value, Class II) (8/13/2001) Accumulation unit value at beginning of period $1.04 $1.00 -- -- Accumulation unit value at end of period $0.89 $1.04 -- -- Number of accumulation units outstanding at end of period (000 omitted) 30,523 7,298 -- -- ---------------------------------------------------------------------------------------------------------------------------- Subaccount 1SR (Investing in shares of Calvert Variable Series, Inc. Social Balanced Portfolio) (5/1/2000) Accumulation unit value at beginning of period $0.89 $0.96 $1.00 -- Accumulation unit value at end of period $0.77 $0.89 $0.96 -- Number of accumulation units outstanding at end of period (000 omitted) 9,832 6,090 1,693 -- ---------------------------------------------------------------------------------------------------------------------------- Subaccount 1FG (Investing in shares of Fidelity(R) VIP Growth & Income Portfolio Service Class 2) (8/13/2001) Accumulation unit value at beginning of period $1.00 $1.00 -- -- Accumulation unit value at end of period $0.82 $1.00 -- -- Number of accumulation units outstanding at end of period (000 omitted) 36,320 8,177 -- -- ---------------------------------------------------------------------------------------------------------------------------- Subaccount 1FM (Investing in shares of Fidelity(R) VIP Mid Cap Portfolio Service Class 2) (8/13/2001) Accumulation unit value at beginning of period $1.04 $1.00 -- -- Accumulation unit value at end of period $0.93 $1.04 -- -- Number of accumulation units outstanding at end of period (000 omitted) 35,541 6,689 -- -- ---------------------------------------------------------------------------------------------------------------------------- Subaccount 1FO (Investing in shares of Fidelity(R) VIP Overseas Portfolio Service Class 2) (8/13/2001) Accumulation unit value at beginning of period $0.94 $1.00 -- -- Accumulation unit value at end of period $0.74 $0.94 -- -- Number of accumulation units outstanding at end of period (000 omitted) 10,123 2,157 -- -- ----------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- 23 AMERICAN EXPRESS RETIREMENT ADVISOR ADVANTAGE PLUS / RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS
Variable account expenses of 0.95% of the daily net assets of the variable account. (continued) Year ended Dec. 31, 2002 2001 2000 1999 ---------------------------------------------------------------------------------------------------------------------------- Subaccount 1RE (Investing in shares of FTVIPT Franklin Real Estate Fund - Class 2) (9/15/1999) Accumulation unit value at beginning of period $1.33 $1.25 $0.96 $1.00 Accumulation unit value at end of period $1.35 $1.33 $1.25 $0.96 Number of accumulation units outstanding at end of period (000 omitted) 44,591 19,803 6,181 683 ---------------------------------------------------------------------------------------------------------------------------- Subaccount 1SI (Investing in shares of FTVIPT Franklin Small Cap Value Securities Fund - Class 2) (9/15/1999) Accumulation unit value at beginning of period $1.34 $1.19 $0.96 $1.00 Accumulation unit value at end of period $1.21 $1.34 $1.19 $0.96 Number of accumulation units outstanding at end of period (000 omitted) 23,553 9,584 2,897 590 ---------------------------------------------------------------------------------------------------------------------------- Subaccount 1MS (Investing in shares of FTVIPT Mutual Shares Securities Fund - Class 2) (8/13/2001) Accumulation unit value at beginning of period $0.96 $1.00 -- -- Accumulation unit value at end of period $0.84 $0.96 -- -- Number of accumulation units outstanding at end of period (000 omitted) 9,151 1,114 -- -- ---------------------------------------------------------------------------------------------------------------------------- Subaccount 1UE (Investing in shares of Goldman Sachs VIT CORE(SM) U.S. Equity Fund) (9/15/1999) Accumulation unit value at beginning of period $0.86 $0.99 $1.10 $1.00 Accumulation unit value at end of period $0.67 $0.86 $0.99 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 75,489 71,185 55,239 9,951 ---------------------------------------------------------------------------------------------------------------------------- Subaccount 1MC (Investing in shares of Goldman Sachs VIT Mid Cap Value Fund) (9/15/1999) Accumulation unit value at beginning of period $1.37 $1.23 $0.95 $1.00 Accumulation unit value at end of period $1.29 $1.37 $1.23 $0.95 Number of accumulation units outstanding at end of period (000 omitted) 47,539 24,711 10,265 2,023 ---------------------------------------------------------------------------------------------------------------------------- Subaccount 1FS (Investing in shares of INVESCO VIF - Financial Services Fund) (8/13/2001) Accumulation unit value at beginning of period $0.96 $1.00 -- -- Accumulation unit value at end of period $0.82 $0.96 -- -- Number of accumulation units outstanding at end of period (000 omitted) 3,709 901 -- -- ---------------------------------------------------------------------------------------------------------------------------- Subaccount 1TC (Investing in shares of INVESCO VIF - Technology Fund) (8/13/2001) Accumulation unit value at beginning of period $0.91 $1.00 -- -- Accumulation unit value at end of period $0.48 $0.91 -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,845 911 -- -- ---------------------------------------------------------------------------------------------------------------------------- Subaccount 1IP (Investing in shares of Lazard Retirement International Equity Portfolio) (9/15/1999) Accumulation unit value at beginning of period $0.72 $0.96 $1.07 $1.00 Accumulation unit value at end of period $0.64 $0.72 $0.96 $1.07 Number of accumulation units outstanding at end of period (000 omitted) 28,853 19,727 10,774 2,504 ---------------------------------------------------------------------------------------------------------------------------- Subaccount 1MG (Investing in shares of MFS(R) Investors Growth Stock Series - Service Class) (5/1/2000) Accumulation unit value at beginning of period $0.67 $0.90 $1.00 -- Accumulation unit value at end of period $0.48 $0.67 $0.90 -- Number of accumulation units outstanding at end of period (000 omitted) 62,663 51,051 21,973 -- ---------------------------------------------------------------------------------------------------------------------------- Subaccount 1MD (Investing in shares of MFS(R) New Discovery Series - Service Class) (5/1/2000) Accumulation unit value at beginning of period $0.90 $0.96 $1.00 -- Accumulation unit value at end of period $0.61 $0.90 $0.96 -- Number of accumulation units outstanding at end of period (000 omitted) 53,383 36,822 15,060 -- ---------------------------------------------------------------------------------------------------------------------------- Subaccount 1UT (Investing in shares of MFS(R) Utilities Series - Service Class) (8/13/2001) Accumulation unit value at beginning of period $0.89 $1.00 -- -- Accumulation unit value at end of period $0.68 $0.89 -- -- Number of accumulation units outstanding at end of period (000 omitted) 7,093 2,778 -- -- ---------------------------------------------------------------------------------------------------------------------------- Subaccount 1HS (Investing in shares of Putnam VT Health Sciences Fund - Class IB Shares) (8/13/2001) Accumulation unit value at beginning of period $0.98 $1.00 -- -- Accumulation unit value at end of period $0.77 $0.98 -- -- Number of accumulation units outstanding at end of period (000 omitted) 6,574 1,743 -- -- ---------------------------------------------------------------------------------------------------------------------------- Subaccount 1PI (Investing in shares of Putnam VT International Equity Fund - Class IB Shares) (8/13/2001) Accumulation unit value at beginning of period $0.96 $1.00 -- -- Accumulation unit value at end of period $0.78 $0.96 -- -- Number of accumulation units outstanding at end of period (000 omitted) 15,138 2,180 -- -- ---------------------------------------------------------------------------------------------------------------------------- Subaccount 1VS (Investing in shares of Putnam VT Vista Fund - Class IB Shares) (9/15/1999) Accumulation unit value at beginning of period $0.85 $1.29 $1.36 $1.00 Accumulation unit value at end of period $0.58 $0.85 $1.29 $1.36 Number of accumulation units outstanding at end of period (000 omitted) 73,930 87,722 68,407 7,245 ----------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- 24 AMERICAN EXPRESS RETIREMENT ADVISOR ADVANTAGE PLUS / RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS
Variable account expenses of 0.95% of the daily net assets of the variable account. (continued) Year ended Dec. 31, 2002 2001 2000 1999 ---------------------------------------------------------------------------------------------------------------------------- Subaccount 1SO (Investing in shares of Strong Opportunity Fund II - Advisor Class) (8/13/2001) Accumulation unit value at beginning of period $0.99 $1.00 -- -- Accumulation unit value at end of period $0.72 $0.99 -- -- Number of accumulation units outstanding at end of period (000 omitted) 17,130 3,747 -- -- ---------------------------------------------------------------------------------------------------------------------------- Subaccount 1IT (Investing in shares of Wanger International Small Cap) (9/15/1999) Accumulation unit value at beginning of period $0.84 $1.08 $1.51 $1.00 Accumulation unit value at end of period $0.72 $0.84 $1.08 $1.51 Number of accumulation units outstanding at end of period (000 omitted) 42,309 30,297 21,844 1,343 ---------------------------------------------------------------------------------------------------------------------------- Subaccount 1SP (Investing in shares of Wanger U.S. Smaller Companies) (9/15/1999) Accumulation unit value at beginning of period $1.15 $1.05 $1.15 $1.00 Accumulation unit value at end of period $0.95 $1.15 $1.05 $1.15 Number of accumulation units outstanding at end of period (000 omitted) 72,853 46,456 29,881 2,723 ----------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- 25 AMERICAN EXPRESS RETIREMENT ADVISOR ADVANTAGE PLUS / RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS
Variable account expenses of 1.00% of the daily net assets of the variable account. Year ended Dec. 31, 2002 ---------------------------------------------------------------------------------------------------------------------------- Subaccount CR5 (Investing in shares of AXP(R) Variable Portfolio - Capital Resource Fund) (2/13/2002) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $0.75 Number of accumulation units outstanding at end of period (000 omitted) 291 ---------------------------------------------------------------------------------------------------------------------------- Subaccount CM5 (Investing in shares of AXP(R) Variable Portfolio - Cash Management Fund) (2/13/2002) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.00 Number of accumulation units outstanding at end of period (000 omitted) 12,452 ---------------------------------------------------------------------------------------------------------------------------- Subaccount BD5 (Investing in shares of AXP(R) Variable Portfolio - Diversified Bond Fund) (2/13/2002) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.04 Number of accumulation units outstanding at end of period (000 omitted) 6,481 ---------------------------------------------------------------------------------------------------------------------------- Subaccount DE5 (Investing in shares of AXP(R) Variable Portfolio - Diversified Equity Income Fund) (2/13/2002) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $0.83 Number of accumulation units outstanding at end of period (000 omitted) 3,101 ---------------------------------------------------------------------------------------------------------------------------- Subaccount EM5 (Investing in shares of AXP(R) Variable Portfolio - Emerging Markets Fund) (2/13/2002) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $0.90 Number of accumulation units outstanding at end of period (000 omitted) 220 ---------------------------------------------------------------------------------------------------------------------------- Subaccount ES5 (Investing in shares of AXP(R) Variable Portfolio - Equity Select Fund) (2/13/2002) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $0.88 Number of accumulation units outstanding at end of period (000 omitted) 1,153 ---------------------------------------------------------------------------------------------------------------------------- Subaccount GB5 (Investing in shares of AXP(R) Variable Portfolio - Global Bond Fund) (2/13/2002) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.14 Number of accumulation units outstanding at end of period (000 omitted) 1,060 ---------------------------------------------------------------------------------------------------------------------------- Subaccount GR5 (Investing in shares of AXP(R) Variable Portfolio - Growth Fund) (2/13/2002) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $0.77 Number of accumulation units outstanding at end of period (000 omitted) 973 ---------------------------------------------------------------------------------------------------------------------------- Subaccount EI5 (Investing in shares of AXP(R) Variable Portfolio - High Yield Bond Fund) (2/13/2002) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $0.94 Number of accumulation units outstanding at end of period (000 omitted) 3,957 ---------------------------------------------------------------------------------------------------------------------------- Subaccount IE5 (Investing in shares of AXP(R) Variable Portfolio - International Fund) (2/13/2002) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $0.85 Number of accumulation units outstanding at end of period (000 omitted) 55 ---------------------------------------------------------------------------------------------------------------------------- Subaccount MF5 (Investing in shares of AXP(R) Variable Portfolio - Managed Fund) (2/13/2002) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $0.90 Number of accumulation units outstanding at end of period (000 omitted) 531 ---------------------------------------------------------------------------------------------------------------------------- Subaccount ND5 (Investing in shares of AXP(R) Variable Portfolio - New Dimensions Fund(R)) (2/13/2002) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $0.80 Number of accumulation units outstanding at end of period (000 omitted) 6,565 ---------------------------------------------------------------------------------------------------------------------------- Subaccount SV5 (Investing in shares of AXP(R) Variable Portfolio - Partners Small Cap Value Fund) (2/13/2002) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $0.88 Number of accumulation units outstanding at end of period (000 omitted) 3,316 ---------------------------------------------------------------------------------------------------------------------------- Subaccount IV5 (Investing in shares of AXP(R) Variable Portfolio - S&P 500 Index Fund) (2/13/2002) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $0.80 Number of accumulation units outstanding at end of period (000 omitted) 1,889 ----------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- 26 AMERICAN EXPRESS RETIREMENT ADVISOR ADVANTAGE PLUS / RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS
Variable account expenses of 1.00% of the daily net assets of the variable account. (continued) Year ended Dec. 31, 2002 ---------------------------------------------------------------------------------------------------------------------------- Subaccount FI5 (Investing in shares of AXP(R) Variable Portfolio - Short Duration U.S. Government Fund) (2/13/2002) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.04 Number of accumulation units outstanding at end of period (000 omitted) 6,107 ---------------------------------------------------------------------------------------------------------------------------- Subaccount SC5 (Investing in shares of AXP(R) Variable Portfolio - Small Cap Advantage Fund) (2/13/2002) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $0.85 Number of accumulation units outstanding at end of period (000 omitted) 900 ---------------------------------------------------------------------------------------------------------------------------- Subaccount SA5 (Investing in shares of AXP(R) Variable Portfolio - Strategy Aggressive Fund) (2/13/2002) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $0.72 Number of accumulation units outstanding at end of period (000 omitted) 114 ---------------------------------------------------------------------------------------------------------------------------- Subaccount 5AC (Investing in shares of AIM V.I. Capital Appreciation Fund, Series II Shares) (2/13/2002) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $0.78 Number of accumulation units outstanding at end of period (000 omitted) 379 ---------------------------------------------------------------------------------------------------------------------------- Subaccount 5AD (Investing in shares of AIM V.I. Capital Development Fund, Series II Shares) (2/13/2002) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $0.80 Number of accumulation units outstanding at end of period (000 omitted) 552 ---------------------------------------------------------------------------------------------------------------------------- Subaccount 5AL (Investing in shares of AllianceBernstein VP Growth and Income Portfolio (Class B)) (2/13/2002) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $0.81 Number of accumulation units outstanding at end of period (000 omitted) 3,503 ---------------------------------------------------------------------------------------------------------------------------- Subaccount 5AB (Investing in shares of AllianceBernstein VP International Value Portfolio (Class B)) (2/13/2002) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $0.95 Number of accumulation units outstanding at end of period (000 omitted) 1,417 ---------------------------------------------------------------------------------------------------------------------------- Subaccount 5AI (Investing in shares of American Century(R) VP International, Class II) (2/13/2002) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $0.85 Number of accumulation units outstanding at end of period (000 omitted) 944 ---------------------------------------------------------------------------------------------------------------------------- Subaccount 5AV (Investing in shares of American Century(R) VP Value, Class II) (2/13/2002) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $0.89 Number of accumulation units outstanding at end of period (000 omitted) 2,837 ---------------------------------------------------------------------------------------------------------------------------- Subaccount 5SR (Investing in shares of Calvert Variable Series, Inc. Social Balanced Portfolio) (2/13/2002) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $0.88 Number of accumulation units outstanding at end of period (000 omitted) 211 ---------------------------------------------------------------------------------------------------------------------------- Subaccount 5FG (Investing in shares of Fidelity(R) VIP Growth & Income Portfolio Service Class 2) (2/13/2002) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $0.85 Number of accumulation units outstanding at end of period (000 omitted) 3,592 ---------------------------------------------------------------------------------------------------------------------------- Subaccount 5FM (Investing in shares of Fidelity(R) VIP Mid Cap Portfolio Service Class 2) (2/13/2002) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $0.90 Number of accumulation units outstanding at end of period (000 omitted) 4,182 ---------------------------------------------------------------------------------------------------------------------------- Subaccount 5FO (Investing in shares of Fidelity(R) VIP Overseas Portfolio Service Class 2) (2/13/2002) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $0.83 Number of accumulation units outstanding at end of period (000 omitted) 553 ----------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- 27 AMERICAN EXPRESS RETIREMENT ADVISOR ADVANTAGE PLUS / RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS
Variable account expenses of 1.00% of the daily net assets of the variable account. (continued) Year ended Dec. 31, 2002 ---------------------------------------------------------------------------------------------------------------------------- Subaccount 5RE (Investing in shares of FTVIPT Franklin Real Estate Fund - Class 2) (2/13/2002) Accumulation unit value at beginning of period $1.00 Sccumulation unit value at end of period $1.01 Number of accumulation units outstanding at end of period (000 omitted) 2,887 ---------------------------------------------------------------------------------------------------------------------------- Subaccount 5SI (Investing in shares of FTVIPT Franklin Small Cap Value Securities Fund - Class 2) (2/13/2002) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $0.92 Number of accumulation units outstanding at end of period (000 omitted) 2,075 ---------------------------------------------------------------------------------------------------------------------------- Subaccount 5MS (Investing in shares of FTVIPT Mutual Shares Securities Fund - Class 2) (2/13/2002) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $0.89 Number of accumulation units outstanding at end of period (000 omitted) 1,735 ---------------------------------------------------------------------------------------------------------------------------- Subaccount 5UE (Investing in shares of Goldman Sachs VIT CORE(SM) U.S. Equity Fund) (2/13/2002) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $0.80 Number of accumulation units outstanding at end of period (000 omitted) 1,048 ---------------------------------------------------------------------------------------------------------------------------- Subaccount 5MC (Investing in shares of Goldman Sachs VIT Mid Cap Value Fund) (2/13/2002) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $0.95 Number of accumulation units outstanding at end of period (000 omitted) 2,583 ---------------------------------------------------------------------------------------------------------------------------- Subaccount 5FS (Investing in shares of INVESCO VIF - Financial Services Fund) (2/13/2002) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $0.87 Number of accumulation units outstanding at end of period (000 omitted) 526 ---------------------------------------------------------------------------------------------------------------------------- Subaccount 5TC (Investing in shares of INVESCO VIF - Technology Fund) (2/13/2002) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $0.56 Number of accumulation units outstanding at end of period (000 omitted) 192 ---------------------------------------------------------------------------------------------------------------------------- Subaccount 5IP (Investing in shares of Lazard Retirement International Equity Portfolio) (2/13/2002) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $0.92 Number of accumulation units outstanding at end of period (000 omitted) 499 ---------------------------------------------------------------------------------------------------------------------------- Subaccount 5MG (Investing in shares of MFS(R) Investors Growth Stock Series - Service Class) (2/13/2002) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $0.76 Number of accumulation units outstanding at end of period (000 omitted) 1,088 ---------------------------------------------------------------------------------------------------------------------------- Subaccount 5MD (Investing in shares of MFS(R) New Discovery Series - Service Class) (2/13/2002) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $0.72 Number of accumulation units outstanding at end of period (000 omitted) 2,112 ---------------------------------------------------------------------------------------------------------------------------- Subaccount 5UT (Investing in shares of MFS(R) Utilities Series - Service Class) (2/13/2002) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $0.85 Number of accumulation units outstanding at end of period (000 omitted) 276 ---------------------------------------------------------------------------------------------------------------------------- Subaccount 5HS (Investing in shares of Putnam VT Health Sciences Fund - Class IB Shares) (2/13/2002) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $0.81 Number of accumulation units outstanding at end of period (000 omitted) 617 ---------------------------------------------------------------------------------------------------------------------------- Subaccount 5PI (Investing in shares of Putnam VT International Equity Fund - Class IB Shares) (2/13/2002) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $0.86 Number of accumulation units outstanding at end of period (000 omitted) 2,086 ---------------------------------------------------------------------------------------------------------------------------- Subaccount 5VS (Investing in shares of Putnam VT Vista Fund - Class IB Shares) (2/13/2002) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $0.73 Number of accumulation units outstanding at end of period (000 omitted) 267 ----------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- 28 AMERICAN EXPRESS RETIREMENT ADVISOR ADVANTAGE PLUS / RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS
Variable account expenses of 1.00% of the daily net assets of the variable account. (continued) Year ended Dec. 31, 2002 ---------------------------------------------------------------------------------------------------------------------------- Subaccount 5SO (Investing in shares of Strong Opportunity Fund II - Advisor Class) (2/13/2002) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $0.75 Number of accumulation units outstanding at end of period (000 omitted) 2,340 ---------------------------------------------------------------------------------------------------------------------------- Subaccount 5IT (Investing in shares of Wanger International Small Cap) (2/13/2002) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $0.87 Number of accumulation units outstanding at end of period (000 omitted) 1,523 ---------------------------------------------------------------------------------------------------------------------------- Subaccount 5SP (Investing in shares of Wanger U.S. Smaller Companies) (2/13/2002) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $0.85 Number of accumulation units outstanding at end of period (000 omitted) 3,732 ----------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- 29 AMERICAN EXPRESS RETIREMENT ADVISOR ADVANTAGE PLUS / RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS
Variable account expenses of 1.20% of the daily net assets of the variable account. Year ended Dec. 31, 2002 ---------------------------------------------------------------------------------------------------------------------------- Subaccount CR4 (Investing in shares of AXP(R) Variable Portfolio - Capital Resource Fund) (2/13/2002) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $0.81 Number of accumulation units outstanding at end of period (000 omitted) 96 ---------------------------------------------------------------------------------------------------------------------------- Subaccount CM4 (Investing in shares of AXP(R) Variable Portfolio - Cash Management Fund) (2/13/2002) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.00 Number of accumulation units outstanding at end of period (000 omitted) 12,148 ---------------------------------------------------------------------------------------------------------------------------- Subaccount BD4 (Investing in shares of AXP(R) Variable Portfolio - Diversified Bond Fund) (2/13/2002) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.04 Number of accumulation units outstanding at end of period (000 omitted) 5,971 ---------------------------------------------------------------------------------------------------------------------------- Subaccount DE4 (Investing in shares of AXP(R) Variable Portfolio - Diversified Equity Income Fund) (2/13/2002) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $0.83 Number of accumulation units outstanding at end of period (000 omitted) 2,058 ---------------------------------------------------------------------------------------------------------------------------- Subaccount EM4 (Investing in shares of AXP(R) Variable Portfolio - Emerging Markets Fund) (2/13/2002) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $0.90 Number of accumulation units outstanding at end of period (000 omitted) 121 ---------------------------------------------------------------------------------------------------------------------------- Subaccount ES4 (Investing in shares of AXP(R) Variable Portfolio - Equity Select Fund) (2/13/2002) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $0.88 Number of accumulation units outstanding at end of period (000 omitted) 889 ---------------------------------------------------------------------------------------------------------------------------- Subaccount GB4 (Investing in shares of AXP(R) Variable Portfolio - Global Bond Fund) (2/13/2002) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.14 Number of accumulation units outstanding at end of period (000 omitted) 1,529 ---------------------------------------------------------------------------------------------------------------------------- Subaccount GR4 (Investing in shares of AXP(R) Variable Portfolio - Growth Fund) (2/13/2002) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $0.76 Number of accumulation units outstanding at end of period (000 omitted) 392 ---------------------------------------------------------------------------------------------------------------------------- Subaccount EI4 (Investing in shares of AXP(R) Variable Portfolio - High Yield Bond Fund) (2/13/2002) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $0.93 Number of accumulation units outstanding at end of period (000 omitted) 4,269 ---------------------------------------------------------------------------------------------------------------------------- Subaccount IE4 (Investing in shares of AXP(R) Variable Portfolio - International Fund) (2/13/2002) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $0.85 Number of accumulation units outstanding at end of period (000 omitted) 105 ---------------------------------------------------------------------------------------------------------------------------- Subaccount MF4 (Investing in shares of AXP(R) Variable Portfolio - Managed Fund) (2/13/2002) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $0.90 Number of accumulation units outstanding at end of period (000 omitted) 462 ---------------------------------------------------------------------------------------------------------------------------- Subaccount ND4 (Investing in shares of AXP(R) Variable Portfolio - New Dimensions Fund(R)) (2/13/2002) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $0.80 Number of accumulation units outstanding at end of period (000 omitted) 5,049 ---------------------------------------------------------------------------------------------------------------------------- Subaccount SV4 (Investing in shares of AXP(R) Variable Portfolio - Partners Small Cap Value Fund) (2/13/2002) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $0.88 Number of accumulation units outstanding at end of period (000 omitted) 2,665 ---------------------------------------------------------------------------------------------------------------------------- Subaccount IV4 (Investing in shares of AXP(R) Variable Portfolio - S&P 500 Index Fund) (2/13/2002) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $0.80 Number of accumulation units outstanding at end of period (000 omitted) 1,648 ----------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- 30 AMERICAN EXPRESS RETIREMENT ADVISOR ADVANTAGE PLUS / RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS
Variable account expenses of 1.20% of the daily net assets of the variable account. (continued) Year ended Dec. 31, 2002 ---------------------------------------------------------------------------------------------------------------------------- Subaccount FI4 (Investing in shares of AXP(R) Variable Portfolio - Short Duration U.S. Government Fund) (2/13/2002) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.04 Number of accumulation units outstanding at end of period (000 omitted) 7,646 ---------------------------------------------------------------------------------------------------------------------------- Subaccount SC4 (Investing in shares of AXP(R) Variable Portfolio - Small Cap Advantage Fund) (2/13/2002) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $0.85 Number of accumulation units outstanding at end of period (000 omitted) 516 ---------------------------------------------------------------------------------------------------------------------------- Subaccount SA4 (Investing in shares of AXP(R) Variable Portfolio - Strategy Aggressive Fund) (2/13/2002) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $0.72 Number of accumulation units outstanding at end of period (000 omitted) 161 ---------------------------------------------------------------------------------------------------------------------------- Subaccount 4AC (Investing in shares of AIM V.I. Capital Appreciation Fund, Series II Shares) (2/13/2002) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $0.78 Number of accumulation units outstanding at end of period (000 omitted) 447 ---------------------------------------------------------------------------------------------------------------------------- Subaccount 4AD (Investing in shares of AIM V.I. Capital Development Fund, Series II Shares) (2/13/2002) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $0.80 Number of accumulation units outstanding at end of period (000 omitted) 463 ---------------------------------------------------------------------------------------------------------------------------- Subaccount 4AL (Investing in shares of AllianceBernstein VP Growth and Income Portfolio (Class B)) (2/13/2002) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $0.81 Number of accumulation units outstanding at end of period (000 omitted) 4,072 ---------------------------------------------------------------------------------------------------------------------------- Subaccount 4AB (Investing in shares of AllianceBernstein VP International Value Portfolio (Class B)) (2/13/2002) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $0.95 Number of accumulation units outstanding at end of period (000 omitted) 1,371 ---------------------------------------------------------------------------------------------------------------------------- Subaccount 4AI (Investing in shares of American Century(R) VP International, Class II) (2/13/2002) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $0.85 Number of accumulation units outstanding at end of period (000 omitted) 448 ---------------------------------------------------------------------------------------------------------------------------- Subaccount 4AV (Investing in shares of American Century(R) VP Value, Class II) (2/13/2002) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $0.89 Number of accumulation units outstanding at end of period (000 omitted) 2,396 ---------------------------------------------------------------------------------------------------------------------------- Subaccount 4SR (Investing in shares of Calvert Variable Series, Inc. Social Balanced Portfolio) (2/13/2002) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $0.88 Number of accumulation units outstanding at end of period (000 omitted) 208 ---------------------------------------------------------------------------------------------------------------------------- Subaccount 4FG (Investing in shares of Fidelity(R) VIP Growth & Income Portfolio Service Class 2) (2/13/2002) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $0.85 Number of accumulation units outstanding at end of period (000 omitted) 3,508 ---------------------------------------------------------------------------------------------------------------------------- Subaccount 4FM (Investing in shares of Fidelity(R) VIP Mid Cap Portfolio Service Class 2) (2/13/2002) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $0.90 Number of accumulation units outstanding at end of period (000 omitted) 3,541 ---------------------------------------------------------------------------------------------------------------------------- Subaccount 4FO (Investing in shares of Fidelity(R) VIP Overseas Portfolio Service Class 2) (2/13/2002) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $0.83 Number of accumulation units outstanding at end of period (000 omitted) 610 ----------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- 31 AMERICAN EXPRESS RETIREMENT ADVISOR ADVANTAGE PLUS / RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS
Variable account expenses of 1.20% of the daily net assets of the variable account. (continued) Year ended Dec. 31, 2002 ---------------------------------------------------------------------------------------------------------------------------- Subaccount 4RE (Investing in shares of FTVIPT Franklin Real Estate Fund - Class 2) (2/13/2002) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.01 Number of accumulation units outstanding at end of period (000 omitted) 2,989 ---------------------------------------------------------------------------------------------------------------------------- Subaccount 4SI (Investing in shares of FTVIPT Franklin Small Cap Value Securities Fund - Class 2) (2/13/2002) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $0.92 Number of accumulation units outstanding at end of period (000 omitted) 1,610 ---------------------------------------------------------------------------------------------------------------------------- Subaccount 4MS (Investing in shares of FTVIPT Mutual Shares Securities Fund - Class 2) (2/13/2002) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $0.89 Number of accumulation units outstanding at end of period (000 omitted) 1,418 ---------------------------------------------------------------------------------------------------------------------------- Subaccount 4UE (Investing in shares of Goldman Sachs VIT CORE(SM) U.S. Equity Fund) (2/13/2002) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $0.80 Number of accumulation units outstanding at end of period (000 omitted) 1,483 ---------------------------------------------------------------------------------------------------------------------------- Subaccount 4MC (Investing in shares of Goldman Sachs VIT Mid Cap Value Fund) (2/13/2002) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $0.95 Number of accumulation units outstanding at end of period (000 omitted) 2,777 ---------------------------------------------------------------------------------------------------------------------------- Subaccount 4FS (Investing in shares of INVESCO VIF - Financial Services Fund) (2/13/2002) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $0.87 Number of accumulation units outstanding at end of period (000 omitted) 446 ---------------------------------------------------------------------------------------------------------------------------- Subaccount 4TC (Investing in shares of INVESCO VIF - Technology Fund) (2/13/2002) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $0.56 Number of accumulation units outstanding at end of period (000 omitted) 157 ---------------------------------------------------------------------------------------------------------------------------- Subaccount 4IP (Investing in shares of Lazard Retirement International Equity Portfolio) (2/13/2002) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $0.92 Number of accumulation units outstanding at end of period (000 omitted) 566 ---------------------------------------------------------------------------------------------------------------------------- Subaccount 4MG (Investing in shares of MFS(R) Investors Growth Stock Series - Service Class) (2/13/2002) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $0.76 Number of accumulation units outstanding at end of period (000 omitted) 712 ---------------------------------------------------------------------------------------------------------------------------- Subaccount 4MD (Investing in shares of MFS(R) New Discovery Series - Service Class) (2/13/2002) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $0.72 Number of accumulation units outstanding at end of period (000 omitted) 1,784 ---------------------------------------------------------------------------------------------------------------------------- Subaccount 4UT (Investing in shares of MFS(R) Utilities Series - Service Class) (2/13/2002) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $0.85 Number of accumulation units outstanding at end of period (000 omitted) 431 ---------------------------------------------------------------------------------------------------------------------------- Subaccount 4HS (Investing in shares of Putnam VT Health Sciences Fund - Class IB Shares) (2/13/2002) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $0.80 Number of accumulation units outstanding at end of period (000 omitted) 583 ---------------------------------------------------------------------------------------------------------------------------- Subaccount 4PI (Investing in shares of Putnam VT International Equity Fund - Class IB Shares) (2/13/2002) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $0.86 Number of accumulation units outstanding at end of period (000 omitted) 1,392 ---------------------------------------------------------------------------------------------------------------------------- Subaccount 4VS (Investing in shares of Putnam VT Vista Fund - Class IB Shares) (2/13/2002) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $0.73 Number of accumulation units outstanding at end of period (000 omitted) 192 ----------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- 32 AMERICAN EXPRESS RETIREMENT ADVISOR ADVANTAGE PLUS / RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS
Variable account expenses of 1.20% of the daily net assets of the variable account. (continued) Year ended Dec. 31, 2002 ---------------------------------------------------------------------------------------------------------------------------- Subaccount 4SO (Investing in shares of Strong Opportunity Fund II - Advisor Class) (2/13/2002) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $0.75 Number of accumulation units outstanding at end of period (000 omitted) 1,985 ---------------------------------------------------------------------------------------------------------------------------- Subaccount 4IT (Investing in shares of Wanger International Small Cap) (2/13/2002) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $0.87 Number of accumulation units outstanding at end of period (000 omitted) 1,055 ---------------------------------------------------------------------------------------------------------------------------- Subaccount 4SP (Investing in shares of Wanger U.S. Smaller Companies) (2/13/2002) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $0.85 Number of accumulation units outstanding at end of period (000 omitted) 3,131 ----------------------------------------------------------------------------------------------------------------------------
Financial Statements You can find our audited financial statements and the audited financial statements for certain subaccounts in the SAI. The SAI does not include the audited financial statements for some subaccounts because they are new and did not have any activity as of the date of the financial statements. -------------------------------------------------------------------------------- 33 AMERICAN EXPRESS RETIREMENT ADVISOR ADVANTAGE PLUS / RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS The Variable Account and the Funds You may allocate purchase payments and transfers to any or all of the subaccounts of the variable account that invest in shares of the following funds:
-------------------------------- --------------------------------------- ------------------------ Fund Name Investment Objectives and Policies Investment Adviser -------------------------------- --------------------------------------- ------------------------ AXP(R) Variable Portfolio - Objective: capital appreciation. American Express Capital Resource Fund Invests primarily in U.S. common Financial Corporation stocks and other securities (AEFC) convertible into common stocks. -------------------------------- --------------------------------------- ------------------------ AXP(R) Variable Portfolio - Objective: maximum current income AEFC Cash Management Fund consistent with liquidity and stability of principal. Invests primarily in money market securities. -------------------------------- --------------------------------------- ------------------------ AXP(R) Variable Portfolio - Objective: high total return through AEFC Core Bond Fund current income and capital appreciation. Invests at least 80% of its net assets in bonds and other debt securities. -------------------------------- --------------------------------------- ------------------------ AXP(R) Variable Portfolio - Objective: high level of current AEFC Diversified Bond Fund income while conserving the value of (previously AXP(R) Variable the investment and continuing a high Portfolio - Bond Fund) level of income for the longest time period. Invests primarily in bonds and other debt obligations. -------------------------------- --------------------------------------- ------------------------ AXP(R) Variable Portfolio - Objective: high level of current AEFC Diversified Equity Income Fund income and, as a secondary goal, steady growth of capital. Invests primarily in dividend-paying common and preferred stocks. -------------------------------- --------------------------------------- ------------------------ AXP(R) Variable Portfolio - Objective: long-term capital growth. AEFC, adviser; Emerging Markets Fund Invests primarily in equity American Express Asset securities of emerging markets Management companies. International, Inc., a wholly-owned subsidiary of AEFC, subadviser. -------------------------------- --------------------------------------- ------------------------ AXP(R) Variable Portfolio - Objective: growth of capital. Invests AEFC Equity Select Fund primarily in equity securities of medium-sized companies. -------------------------------- --------------------------------------- ------------------------ AXP(R) Variable Portfolio - Objective: high total return through AEFC Global Bond Fund income and growth of capital. Non-diversified mutual fund that invests primarily in debt obligations of U.S. and foreign issuers. -------------------------------- --------------------------------------- ------------------------ AXP(R) Variable Portfolio - Objective: long-term capital growth. AEFC Growth Fund Invests primarily in common stocks and securities convertible into common stocks that appear to offer growth opportunities. -------------------------------- --------------------------------------- ------------------------ AXP(R) Variable Portfolio - Objective: high current income, with AEFC High Yield Bond Fund capital growth as a secondary (previously AXP(R) Variable objective. Invests primarily in Portfolio - Extra Income Fund) high-yielding, high-risk corporate bonds (junk bonds) issued by U.S. and foreign companies and governments. -------------------------------- --------------------------------------- ------------------------
-------------------------------------------------------------------------------- 34 AMERICAN EXPRESS RETIREMENT ADVISOR ADVANTAGE PLUS / RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS
-------------------------------- --------------------------------------- ------------------------ Fund Name Investment Objectives and Policies Investment Adviser -------------------------------- --------------------------------------- ------------------------ AXP(R) Variable Portfolio - Objective: capital appreciation. AEFC, adviser; International Fund Invests primarily in equity American Express Asset securities of foreign issuers that Management offer strong growth potential. International, Inc., a wholly-owned subsidiary of AEFC, subadviser. -------------------------------- --------------------------------------- ------------------------ AXP(R) Variable Portfolio - Objective: long-term growth of AEFC Large Cap Value Fund capital. Invests primarily in equity securities of companies with market capitalization greater than $5 billion. -------------------------------- --------------------------------------- ------------------------ AXP(R) Variable Portfolio - Objective: maximum total investment AEFC Managed Fund return through a combination of capital growth and current income. Invests primarily in a combination of common and preferred stocks, convertible securities, bonds and other debt securities. -------------------------------- --------------------------------------- ------------------------ AXP(R) Variable Portfolio - Objective: long-term growth of AEFC New Dimensions Fund(R) capital. Invests primarily in common stocks showing potential for significant growth. -------------------------------- --------------------------------------- ------------------------ AXP(R) Variable Portfolio - Objective: long-term growth of AEFC, adviser; GAMCO Partners Select Value Fund capital. Invests primarily in common Investors, Inc., stocks, preferred stocks and subadviser. securities convertible into common stocks that are listed on a nationally recognized securities exchange or traded on the NASDAQ National Market System of the National Association of Securities Dealers. -------------------------------- --------------------------------------- ------------------------ AXP(R) Variable Portfolio - Objective: long-term capital AEFC, adviser; Partners Small Cap Value Fund appreciation. Non-diversified fund Goldman Sachs Asset that invests primarily in equity Management, L.P., securities. Royce & Associates, LLC and Third Avenue Management LLC, subadvisers. -------------------------------- --------------------------------------- ------------------------ AXP(R) Variable Portfolio - Objective: long-term capital AEFC S&P 500 Index Fund appreciation. Non-diversified fund that invests primarily in securities that are expected to provide investment results that correspond to the performance of the S&P 500(R) Index. -------------------------------- --------------------------------------- ------------------------ AXP(R) Variable Portfolio - Objective: a high level of current AEFC Short Duration U.S. Government income and safety of principal Fund (previously AXP(R) consistent with an investment in U.S. Variable Portfolio - Federal government and government agency Income Fund) securities. Invests primarily in debt obligations issued or guaranteed as to principal and interest by the U.S. government, its agencies or instrumentalities. -------------------------------- --------------------------------------- ------------------------ AXP(R) Variable Portfolio - Objective: long-term capital growth. AEFC, adviser; Kenwood Small Cap Advantage Fund Invests primarily in equity stocks of Capital Management small companies that are often LLC, subadviser. included in the Russell 2000 Index and/or have market capitalization under $2 billion. -------------------------------- --------------------------------------- ------------------------
-------------------------------------------------------------------------------- 35 AMERICAN EXPRESS RETIREMENT ADVISOR ADVANTAGE PLUS / RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS
-------------------------------- --------------------------------------- ------------------------ Fund Name Investment Objectives and Policies Investment Adviser -------------------------------- --------------------------------------- ------------------------ AXP(R) Variable Portfolio - Objective: capital appreciation. AEFC Strategy Aggressive Fund Invests primarily in equity securities of growth companies. -------------------------------- --------------------------------------- ------------------------ AIM V.I. Capital Appreciation Objective: growth of capital. Invests A I M Advisors, Inc. Fund, Series II Shares principally in common stocks of companies likely to benefit from new or innovative products, services or processes as well as those with above-average long-term growth and excellent prospects for future growth. The Fund may invest up to 25% of its assets in foreign securities. -------------------------------- --------------------------------------- ------------------------ AIM V.I. Capital Development Objective: long-term growth of A I M Advisors, Inc. Fund, Series II Shares capital. Invests primarily in securities (including common stocks, convertible securities and bonds) of small- and medium-sized companies. The Fund may invest up to 25% of its assets in foreign securities. -------------------------------- --------------------------------------- ------------------------ AllianceBernstein VP Growth Objective: reasonable current income Alliance Capital and Income Portfolio (Class B) and reasonable appreciation. Invests Management, L.P. primarily in dividend-paying common stocks of good quality. -------------------------------- --------------------------------------- ------------------------ AllianceBernstein VP Objective: long-term growth of Alliance Capital International Value Portfolio capital. Invests primarily in a Management, L.P. (Class B) diversified portfolio of foreign equity securities. -------------------------------- --------------------------------------- ------------------------ American Century(R) VP Objective: long-term capital growth. American Century International, Class II Invests primarily in stocks of Investment growing foreign companies in Management, Inc. developed countries. -------------------------------- --------------------------------------- ------------------------ American Century(R) VP Value, Objective: long-term capital growth, American Century Class II with income as a secondary objective. Investment Invests primarily in stocks of Management, Inc. companies that management believes to be undervalued at the time of purchase. -------------------------------- --------------------------------------- ------------------------ Calvert Variable Series, Inc. Objective: income and capital growth. Calvert Asset Social Balanced Portfolio Invests primarily in stocks, bonds Management Company, and money market instruments which Inc. (CAMCO), offer income and capital growth investment adviser. opportunity and which satisfy the SsgA Funds Management, investment and social criteria. Inc. and Brown Capital Management are the investment subadvisers. -------------------------------- --------------------------------------- ------------------------ Evergreen VA International Objective: long-term capital growth Evergreen Investment Equity Fund - Class 2 with modest income as a secondary Management Company, objective. The Fund seeks to achieve LLC its goal by investing primarily in equity securities issued by established, quality non-U.S. companies located in countries with developed markets and may purchase securities across all market capitalizations, The Fund may also invest in emerging markets. -------------------------------- --------------------------------------- ------------------------
-------------------------------------------------------------------------------- 36 AMERICAN EXPRESS RETIREMENT ADVISOR ADVANTAGE PLUS / RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS
-------------------------------- --------------------------------------- ------------------------ Fund Name Investment Objectives and Policies Investment Adviser -------------------------------- --------------------------------------- ------------------------ Fidelity(R) VIP Growth & Objective: seeks high total return Fidelity Management & Income Portfolio Service Class 2 through a combination of current Research Company income and capital appreciation. (FMR), investment Normally invests a majority of assets manager; FMR U.K., in common stocks of foreign and FMR Far East, domestic issuers with a focus on sub-investment those that pay current dividends and advisers. show potential for capital appreciation. May invest in bonds, including lower-quality debt securities, as well as stocks that are not currently paying dividends, but offer prospects for future income or capital appreciation. -------------------------------- --------------------------------------- ------------------------ Fidelity(R) VIP Mid Cap Objective: seeks long-term growth of Fidelity Management & Portfolio Service Class 2 capital. Normally invests at least Research Company 80% of assets in securities of (FMR), investment foreign and domestic companies with manager; FMR U.K., medium market capitalization common FMR Far East, stocks. Invests in growth or value sub-investment common common stocks. May invest in advisers. companies with smaller or larger market capitalizations. -------------------------------- --------------------------------------- ------------------------ Fidelity(R) VIP Overseas Objective: seeks long-term growth of Fidelity Management & Portfolio Service Class 2 capital. Normally invests primarily Research Company in common stocks of foreign (FMR), investment securities. Normally invests at least manager; FMR U.K., 80% of assets in non-U.S. securities. FMR Far East, Fidelity International Investment Advisors (FIIA) and FIIA U.K., sub-investment advisers. -------------------------------- --------------------------------------- ------------------------ FTVIPT Franklin Real Estate Objective: seeks capital Franklin Advisers, Inc. Fund - Class 2 appreciation, with current income as a secondary goal. The Fund normally invests at least 80% of its net assets in investments of companies operating in the real estate sector. The Fund invests primarily in equity real estate investment trusts (REITs). -------------------------------- --------------------------------------- ------------------------ FTVIPT Franklin Small Cap Objective: seeks long-term total Franklin Advisory Value Securities Fund - Class 2 return. The Fund normally invests at Services, LLC least 80% of its net assets in investments of small capitalization companies. For this Fund, small cap companies are those with market cap values not exceeding $2.5 billion, at the time of purchase. The Fund's manager invests in small companies that it believes are undervalued. -------------------------------- --------------------------------------- ------------------------ FTVIPT Mutual Shares Objective: seeks capital Franklin Mutual Securities Fund - Class 2 appreciation, with income as a Advisers, LLC secondary goal. The Fund normally invests mainly in U.S. equity securities that the Fund's manager believes are available at market prices less than their intrinsic value on certain recognized or objective criteria, including undervalued stocks, restructuring companies and distressed companies. -------------------------------- --------------------------------------- ------------------------
-------------------------------------------------------------------------------- 37 AMERICAN EXPRESS RETIREMENT ADVISOR ADVANTAGE PLUS / RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS
-------------------------------- --------------------------------------- ------------------------ Fund Name Investment Objectives and Policies Investment Adviser -------------------------------- --------------------------------------- ------------------------ Goldman Sachs VIT CORE(SM) Objective: The Goldman Sachs VIT CORE Goldman Sachs Asset U.S. Equity Fund CORE(SM) is U.S. Equity Fund seeks long-term Management, L.P. a service mark of Goldman, growth of capital and dividend Sachs & Co. income. The Fund invests, under normal circumstances, at least 90% of its total assets (not including securities lending collateral and any investment of that collateral) measured at time of purchase in a broadly diversified portfolio of large-cap and blue chip equity investments representing all major sectors of the U.S. economy. -------------------------------- --------------------------------------- ------------------------ Goldman Sachs VIT Mid Cap Objective: The Goldman Sachs VIT Mid Goldman Sachs Asset Value Fund Cap Value Fund seeks long-term Management, L.P. capital appreciation. The Fund invests, under normal circumstances, at least 80% of its net assets plus any borrowing for investment purposes (measured at time of purchase) in a diversified portfolio of equity investments in mid-capitalization issuers within the range of the market capitalization of companies constituting the Russell Midcap Value Index at the time of investment. -------------------------------- --------------------------------------- ------------------------ INVESCO VIF - Financial Objective: long-term growth of INVESCO Funds Group, Services Fund capital. Aggressively managed. Inc. Invests at least 80% of its assets in the equity securities and equity-related instruments of companies involved in the financial services sector. These companies include, but are not limited to, banks, insurance companies, investment and miscellaneous industries (asset managers, brokerage firms, and government-sponsored agencies and suppliers to financial services companies). -------------------------------- --------------------------------------- ------------------------ INVESCO VIF - Technology Fund Objective: long-term growth of INVESCO Funds Group, capital. The Fund is aggressively Inc. managed. Invests at least 80% of its assets in equity securities and equity-related instruments of companies engaged in technology-related industries. These include, but are not limited to, various applied technologies, hardware, software, semiconductors, telecommunications equipment and services, and service-related companies in information technology. Many of these products and services are subject to rapid obsolescence, which may lower the market value of securities of the companies in this sector. -------------------------------- --------------------------------------- ------------------------
-------------------------------------------------------------------------------- 38 AMERICAN EXPRESS RETIREMENT ADVISOR ADVANTAGE PLUS / RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS
-------------------------------- --------------------------------------- ------------------------ Fund Name Investment Objectives and Policies Investment Adviser -------------------------------- --------------------------------------- ------------------------ Lazard Retirement Objective: long-term capital Lazard Asset International Equity Portfolio appreciation. Invests primarily in Management, LLC equity securities, principally common stocks, of relatively large non-U.S. companies with market capitalizations in the range of the Morgan Stanley Capital International (MSCI) Europe, Australia and Far East (EAFE(R)) Index that the Investment Manager believes are undervalued based on their earnings, cash flow or asset values. -------------------------------- --------------------------------------- ------------------------ Liberty Columbia High Yield Objective: high level of current Columbia Management Fund, Variable Series, Class B income with capital appreciation as a Co. (Columbia), secondary objective. The Fund investment adviser. normally invests at least 80% of its net assets (plus any borrowings for investment purposes) in high yielding corporate debt securities, such as bonds, debentures and notes that are rated below investment grade. -------------------------------- --------------------------------------- ------------------------ MFS(R) Investors Growth Stock Objective: long-term growth of MFS Investment Series - Service Class capital and future income. Invests at Management(R) least 80% of its net assets in common stocks and related securities of companies which MFS(R) believes offer better than average prospects for long-term growth. -------------------------------- --------------------------------------- ------------------------ MFS(R) New Discovery Series - Objective: capital appreciation. MFS Investment Service Class Invests in at least 65% of its net Management(R) assets in equity securities of emerging growth companies. -------------------------------- --------------------------------------- ------------------------ MFS(R) Total Return Series - Objective: above average income MFS Investment Service Class consistent with the prudent Management(R) employment of capital, with growth of capital and income as a secondary objective. Invests primarily in a combination of equity and fixed income securities. -------------------------------- --------------------------------------- ------------------------ MFS(R) Utilities Series - Objective: capital growth and current MFS Investment Service Class income. Invests primarily in equity Management(R) and debt securities of domestic and foreign companies in the utilities industry. -------------------------------- --------------------------------------- ------------------------ Oppenheimer Global Securities Objective: long-term capital OppenheimerFunds, Inc. Fund/VA, Service Shares appreciation. Invests mainly in common stocks of U.S. and foreign issuers that are "growth-type" companies, cyclical industries and special situations that are considered to have appreciation possibilities. -------------------------------- --------------------------------------- ------------------------ Oppenheimer Main Street Small Objective: seeks capital OppenheimerFunds, Inc. Cap Fund/VA, Service Shares appreciation. Invests mainly in common stocks of small-capitalization U.S. companies that the investment manager believes have favorable business trends or prospects. -------------------------------- --------------------------------------- ------------------------
-------------------------------------------------------------------------------- 39 AMERICAN EXPRESS RETIREMENT ADVISOR ADVANTAGE PLUS / RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS
-------------------------------- --------------------------------------- ------------------------ Fund Name Investment Objectives and Policies Investment Adviser -------------------------------- --------------------------------------- ------------------------ Oppenheimer Strategic Bond Objective: high level of current OppenheimerFunds, Inc. Fund/VA, Service Shares income principally derived from interest on debt securities. Invests mainly in three market sectors: debt securities of foreign governments and companies, U.S. government securities, and lower-rated high yield securities of U.S. and foreign companies. -------------------------------- --------------------------------------- ------------------------ Putnam VT Health Sciences Fund Objective: capital appreciation. The Putnam Investment - Class IB Shares fund pursues its goal by investing Management, LLC mainly in growth stocks of companies in the health sciences industries. Under normal circumstances, the fund invests at least 80% of the fund's net assets in securities of (a) companies that derive at least 50% of their assets, revenues or profits from the pharmaceutical, health care services, applied research and development and medical equipment and supplies industries, or (b) companies we think have the potential for growth as a result of their particular products, technology, patents or other market advantages in the health sciences industries. -------------------------------- --------------------------------------- ------------------------ Putnam VT International Equity Objective: capital appreciation. The Putnam Investment Fund - Class IB Shares fund pursues its goal by investing Management, LLC mainly in common stocks of companies outside the United States. -------------------------------- --------------------------------------- ------------------------ Putnam VT Vista Fund - Class Objective: capital appreciation. The Putnam Investment IB Shares fund pursues its goal by investing Management, LLC mainly in common stocks of U.S. companies with a focus on growth stocks. -------------------------------- --------------------------------------- ------------------------ Strong Opportunity Fund II - Objective: seeks capital growth. Strong Capital Advisor Class Invests primarily in common stocks of Management, Inc. medium-capitalization companies that the Fund's managers believe are under-priced, yet have attractive growth prospects. -------------------------------- --------------------------------------- ------------------------ Van Kampen LIT Comstock Objective: seeks capital growth and Van Kampen Asset Portfolio, Class II Shares income through investments in equity Management Inc. securities, including common stocks, preferred stocks and securities convertible into common and preferred stocks. -------------------------------- --------------------------------------- ------------------------ Wanger International Small Cap Objective: long-term growth of Liberty Wanger Asset capital. Invests primarily in stocks Management, L.P. of small and medium-size non-U.S. companies with capitalizations of less than $2 billion at time of purchase. -------------------------------- --------------------------------------- ------------------------ Wanger U.S. Smaller Companies Objective: long-term growth of Liberty Wanger Asset capital. Invests primarily in stocks Management, L.P. of small- and medium-size U.S. companies with capitalizations of less than $5 billion at time of purchase. -------------------------------- --------------------------------------- ------------------------
-------------------------------------------------------------------------------- 40 AMERICAN EXPRESS RETIREMENT ADVISOR ADVANTAGE PLUS / RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS A fund underlying your contract in which a subaccount invests may have a name, portfolio manager, objectives, strategies and characteristics that are the same or substantially similar to those of a publicly-traded retail mutual fund. Despite these similarities, an underlying fund is not the same as any publicly-traded retail mutual fund. Each underlying fund will have its own unique portfolio holdings, fees, operating expenses and operating results. The results of each underlying fund may differ significantly from any publicly-traded retail mutual fund. The investment advisers cannot guarantee that the funds will meet their investment objectives. Please read the funds' prospectuses for facts you should know before investing. These prospectuses are available by contacting us at the address or telephone number on the first page of this prospectus. All funds are available to serve as the underlying investments for variable annuities and variable life insurance policies. Some funds also are available to serve as investment options for tax-deferred retirement plans. It is possible that in the future, it may be disadvantageous for variable annuity accounts and variable life insurance accounts and/or tax-deferred retirement plans to invest in the available funds simultaneously. Although the insurance company and the funds do not currently foresee any such disadvantages, the boards of directors or trustees of the appropriate funds will monitor events in order to identify any material conflicts between annuity owners, policy owners and tax-deferred retirement plans and to determine what action, if any, should be taken in response to a conflict. If a board were to conclude that it should establish separate funds for the variable annuity, variable life insurance and tax-deferred retirement plan accounts, you would not bear any expenses associated with establishing separate funds. Please refer to the funds' prospectuses for risk disclosure regarding simultaneous investments by variable annuity, variable life insurance and tax-deferred retirement plan accounts. The Internal Revenue Service (IRS) issued final regulations relating to the diversification requirements under Section 817(h) of the Code. Each fund intends to comply with these requirements. The variable account was established under Minnesota law on Aug. 23, 1995, and the subaccounts are registered together as a single unit investment trust under the Investment Company Act of 1940 (the 1940 Act). This registration does not involve any supervision of our management or investment practices and policies by the SEC. All obligations arising under the contracts are general obligations of IDS Life. The variable account meets the definition of a separate account under federal securities laws. We credit or charge income, capital gains and capital losses of each subaccount only to that subaccount. State insurance law prohibits us from charging a subaccount with liabilities of any other subaccount or of our general business. The variable account includes other subaccounts that are available under contracts that are not described in this prospectus. Although the IRS has issued some guidance on investment control, the U.S. Treasury and the IRS may continue to examine this aspect of variable contracts and provide additional guidance on investor control. Their concern involves how many investment choices (subaccounts) may be offered by an insurance company and how many exchanges among those subaccounts may be allowed before the contract owner would be currently taxed on income earned within the contract. At this time, we do not know what the additional guidance will be or when action will be taken. We reserve the right to modify the contract, as necessary, so that the owner will not be subject to current taxation as the owner of the subaccount assets. We intend to comply with all federal tax laws so that the contract continues to qualify as an annuity for federal income tax purposes. We reserve the right to modify the contract as necessary to comply with any new tax laws. The Fixed Account You also may allocate purchase payments and transfers to the fixed account. We back the principal and interest guarantees relating to the fixed account. These guarantees are based on the continued claims-paying ability of the company. The value of the fixed account increases as we credit interest to the account. Purchase payments and transfers to the fixed account become part of our general account. Interest is calculated and compounded daily based on a 365-day year so as to produce the annual effective rate which we declare. We do not credit interest on leap days (Feb. 29). The interest rate we apply to each purchase payment or transfer to the fixed account is guaranteed for one year. Thereafter, we will change rates from time to time at our discretion. These rates will be based on various factors including, but not limited to, the interest rate environment, returns earned on investments backing these annuities, the rates currently in effect for new and existing company annuities, product design, competition, and the company's revenues and expenses. We reserve the right to limit purchase payment allocations to the fixed account if the interest rate we are then currently crediting to the fixed account is equal to the minimum interest rate stated in the contract. Interests in the fixed account are not required to be registered with the SEC. The SEC staff does not review the disclosures in this prospectus on the fixed account. Disclosures regarding the fixed account, however, may be subject to certain generally applicable provisions of the federal securities laws relating to the accuracy and completeness of statements made in prospectuses. (See "Making the Most of Your Contract -- Transfer Policies" for restrictions on transfers involving the fixed account.) -------------------------------------------------------------------------------- 41 AMERICAN EXPRESS RETIREMENT ADVISOR ADVANTAGE PLUS / RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS The Special DCA Account You also may allocate purchase payments to the Special DCA account, when available. The Special DCA account is available for promotional purposes for new purchase payments only and may not be available at all times. We back the principal and interest guarantees relating to the Special DCA account. These guarantees are based on the continued claims-paying ability of the company. The value of the Special DCA account increases as we credit interest to the account. Purchase payments to the Special DCA account become part of our general account. Interest is calculated and compounded daily based on a 365-day year so as to produce the annual effective rate which we declare. We do not credit interest on leap days (Feb. 29). The interest rate we apply to each purchase payment is guaranteed for the period of time money remains in the Special DCA account. The rates credited to the Special DCA account will be based on various factors including, but not limited to, the interest rate environment, returns earned on investments backing these annuities, the rates currently in effect for new and existing company annuities, product design, competition, and the company's revenues and expenses. Interests in the Special DCA account are not required to be registered with the SEC. The SEC staff does not review the disclosures in this prospectus on the Special DCA account. Disclosures regarding the Special DCA account, however, may be subject to certain generally applicable provisions of the federal securities laws relating to the accuracy and completeness of statements made in prospectuses. (See "Making the Most of Your Contract -- Special Dollar Cost Averaging Program" for more information on the Special DCA account.) Buying Your Contract You can fill out an application and send it along with your initial purchase payment to our office. As the owner, you have all rights and may receive all benefits under the contract. You can own a nonqualified annuity in joint tenancy with rights of survivorship only in spousal situations. You cannot own a qualified annuity in joint tenancy. You can buy a contract if you are 90 or younger. When you apply, you may select among the following: o the optional ROPP rider;(1) o the optional MAV rider;(1) o the optional 5-Year MAV rider;(1) o the optional EEB rider;(1) o the optional EEP rider;(1) o the fixed account, subaccounts and/or the special DCA account;(3) in which you want to invest; o how you want to make purchase payments; o a beneficiary; and o under RAVA Advantage Plus, the length of the surrender charge period (seven or ten years).(2) (1) You may select any one of the ROPP, MAV, 5-Year MAV, EEB or EEP riders or certain combinations thereof. You may select the MAV and either the EEB or the EEP. You may select the 5-Year MAV and either the EEB or the EEP. You cannot select both the EEB and EEP. You cannot select both the MAV and 5-Year MAV. Riders may not be available in all states. The MAV, EEB, EEP and 5-Year MAV are only available if you are 75 or younger at the rider effective date. EEP is only available on contracts purchased through a transfer or exchange. ROPP is only available if you are 76 or older at the rider effective date. (2) The ten-year surrender charge schedule under RAVA Advantage Plus is not available for contracts issued in Oregon. In Connecticut, the ten-year surrender charge schedule is 8% for years 0-2, 7% for year 3 and declining by 1% each year thereafter until it is 0% for years 10+. For contracts issued in Massachusetts, Oregon and Washington, we waive surrender charges after the tenth contract anniversary. (3) The Special DCA account may not be available for new purchase payments at all times. The contract provides for allocation of purchase payments to the subaccounts of the variable account, to the fixed account and/or to the Special DCA account (when available) in even 1% increments. There are may be certain restrictions on the amount you may allocate to the fixed account. (See "Purchase Payments.) If your application is complete, we will process it and apply your purchase payment to the fixed account, Special DCA account (when available) and/or subaccounts you selected within two business days after we receive it at our office. If we accept your application, we will send you a contract. If your application is not complete, you must give us the information to complete it within five business days. If we cannot accept your application within five business days, we will decline it and return your payment unless you specifically ask us to keep the payment and apply it once your application is complete. We will credit additional purchase payments you make to your accounts on the valuation date we receive them. We will value the additional payments at the next accumulation unit value calculated after we receive your payments at our office. -------------------------------------------------------------------------------- 42 AMERICAN EXPRESS RETIREMENT ADVISOR ADVANTAGE PLUS / RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS THE SETTLEMENT DATE Annuity payouts are scheduled to begin on the settlement date. When we process your application, we will establish the settlement date to the maximum age or date described below. You can also select a date within the maximum limits. You can align this date with your actual retirement from a job, or it can be a different future date, depending on your needs and goals and on certain restrictions. You also can change the date, provided you send us written instructions at least 30 days before annuity payouts begin. For nonqualified annuities and Roth IRAs, the settlement date must be: o no earlier than the 60th day after the contract's effective date; and o no later than your 85th birthday or the tenth contract anniversary, if purchased after age 75. For qualified annuities except Roth IRAs, to avoid IRS penalty taxes, the settlement date generally must be: o on or after the date you reach age 59 1/2; and o for IRAs, SIMPLE IRAs and SEPs, by April 1 of the year following the calendar year when you reach age 70 1/2; or o for all other qualified annuities, by April 1 of the year following the calendar year when you reach age 70 1/2, or, if later, retire (except that 5% business owners may not select a settlement date that is later than April 1 of the year following the calendar year when they reach age 70 1/2). If you take the minimum IRA or TSA distributions as required by the Code from another tax-qualified investment, or in the form of partial surrenders from this contract, annuity payouts can start as late as your 85th birthday or the tenth contract anniversary, if later. BENEFICIARY If death benefits become payable before the settlement date while the contract is in force and before annuity payouts begin, we will pay your named beneficiary all or part of the contract value. If there is no named beneficiary, then you or your estate will be the beneficiary. (See "Benefits in Case of Death" for more about beneficiaries.) PURCHASE PAYMENTS Minimum allowable purchase payments* If paying by installments under a scheduled payment plan: $23.08 biweekly, or $50 per month
RAVA Advantage Plus RAVA Select Plus If paying by any other method: initial payment for qualified annuities $1,000 $ 2,000 initial payment for nonqualified annuities 2,000 10,000 for any additional payments 50 50
* RAVA Advantage Plus and RAVA Select Plus band 3 annuities sold individuals other than advisors and employees: Require a minimum $1,000,000 initial purchase payment and home office approval. Contracts already approved may make payments in subsequent years up to $100,000 if your age on the effective date of the contract is up to age 85 and $50,000 if your age on the effective date of the contract is age 86-90. Maximum allowable purchase payments** (without home office approval) based on your age on the effective date of the contract:
RAVA Advantage Plus RAVA Select Plus For the first year: up to age 85 $999,999*** $999,999*** for ages 86 to 90 100,000 100,000 For each subsequent year: up to age 85 100,000 100,000 for ages 86-90 50,000 50,000
** Installments must total at least $600 in the first year. If you do not make any purchase payments for 24 months, and your previous payments total $600 or less, we have the right to give you 30 days' written notice and pay you the total value of your contract in a lump sum. This right does not apply to contracts in New Jersey. *** These limits apply in total to all IDS Life annuities you own. We reserve the right to increase maximum limits. For qualified annuities the tax-deferred retirement plan's or the Code's limits on annual contributions also apply. -------------------------------------------------------------------------------- 43 AMERICAN EXPRESS RETIREMENT ADVISOR ADVANTAGE PLUS / RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS For RAVA Advantage Plus, except for TSAs, purchase payments are limited and may not be made after the third contract anniversary in Massachusetts, Washington and Oregon. We reserve the right to not accept purchase payments allocated to the fixed account for twelve months following either: 1. a partial surrender from the fixed account; or 2. a lump sum transfer from the fixed account to a subaccount. HOW TO MAKE PURCHASE PAYMENTS 1 By letter Send your check along with your name and contract number to: IDS Life Insurance Company 70200 AXP Financial Center Minneapolis, MN 55474 2 By scheduled payment plan We can help you set up: o an automatic payroll deduction, salary reduction or other group billing arrangement; or o a bank authorization. Charges CONTRACT ADMINISTRATIVE CHARGE We charge this fee for establishing and maintaining your records. Currently, we deduct $30 from your contract value on your contract anniversary at the end of each contract year. We prorate this charge among the subaccounts and the fixed account in the same proportion your interest in each account bears to your total contract value, less amounts invested in the Special DCA account. The contract administrative charge is only deducted from any Special DCA account if insufficient amounts are available in the fixed account and the subaccounts. We reserve the right to increase this charge after the first contract anniversary to a maximum of $50. We will waive this $30 charge when your contract value, or total purchase payments less any payments surrendered, is $50,000 or more on the current contract anniversary. If you surrender your contract, we will deduct the full charge at the time of surrender regardless of the contract value or purchase payments made. This charge does not apply after annuity payouts begin or when we pay death benefits. MORTALITY AND EXPENSE RISK FEE We charge this fee daily to the subaccounts. The unit values of your subaccounts reflect this fee, which is a percentage of their average daily net assets, on an annual basis as follows: RAVA Advantage Plus RAVA Select Plus For nonqualified annuities 0.95% 1.20% For qualified annuities 0.75% 1.00% For band 3 annuities 0.55% 0.75% This fee covers the mortality and expense risk that we assume. Approximately two-thirds of this amount is for our assumption of mortality risk, and one-third is for our assumption of expense risk. This fee does not apply to the fixed account or the Special DCA account. Mortality risk arises because of our guarantee to pay a death benefit and our guarantee to make annuity payouts according to the terms of the contract, no matter how long a specific owner lives and no matter how long our entire group of owners live. If, as a group, owners outlive the life expectancy we assumed in our actuarial tables, we must take money from our general assets to meet our obligations. If, as a group, owners do not live as long as expected, we could profit from the mortality risk fee. Expense risk arises because we cannot increase the contract administrative charge more than $20.00 per contract and this charge may not cover our expenses. We would have to make up any deficit from our general assets. We could profit from the expense risk fee if future expenses are less than expected. -------------------------------------------------------------------------------- 44 AMERICAN EXPRESS RETIREMENT ADVISOR ADVANTAGE PLUS / RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS The subaccounts pay us the mortality and expense risk fee they accrued as follows: o first, to the extent possible, the subaccounts pay this fee from any dividends distributed from the funds in which they invest; o then, if necessary, the funds redeem shares to cover any remaining fees payable. We may use any profits we realize from the subaccounts' payment to us of the mortality and expense risk fee for any proper corporate purpose, including, among others, payment of distribution (selling) expenses. We do not expect that the surrender charge, discussed in the following paragraphs, will cover sales and distribution expenses. ROPP RIDER FEE We charge a fee for this optional feature only if you select it(1). If selected, we deduct 0.20% of your contract value on your contract anniversary at the end of each contract year. We prorate this fee among the subaccounts and fixed account in the same proportion your interest in each account bears to your total contract value, less amounts invested in the Special DCA account. Such fee is only deducted from any Special DCA account if insufficient amounts are available in the fixed account and the subaccounts. We reserve the right to increase the fee for this rider after the tenth rider anniversary to a maximum of 0.30%. If the rider terminates for any reason other than due to a change in ownership of the contract, we will deduct this fee, adjusted for the number of calendar days coverage was in place. If you choose to drop this rider on a contract anniversary (subject to the restrictions given in "Optional Benefits"), we will deduct this fee on that anniversary. This fee does not apply after annuity payouts begin. (1) Available if you are 76 or older at the rider effective date. ROPP is included in the standard death benefit if you are age 75 or younger on the contract effective date at no additional cost. May not be available in all states. MAV RIDER FEE We charge a fee for this optional feature only if you select it(2). If selected, we deduct 0.25%of your contract value on your contract anniversary at the end of each contract year. We prorate this fee among the subaccounts and fixed account in the same proportion your interest in each account bears to your total contract value, less amounts invested in the Special DCA account. Such fee is only deducted from any Special DCA account if insufficient amounts are available in the fixed account and the subaccounts. We reserve the right to increase the fee for this rider after the tenth rider anniversary to a maximum of 0.35%. If the rider terminates for any reason other than due to a change in ownership of the contract, we will deduct this fee, adjusted for the number of calendar days coverage was in place. If you choose to drop this rider on a contract anniversary (subject to the restrictions given in "Optional Benefits"), we will deduct this fee on that anniversary. This fee does not apply after annuity payouts begin. (2) Available if you are 75 or younger at the rider effective date. Not available with 5-Year MAV. May not be available in all states. 5-YEAR MAV RIDER FEE We charge a fee for this optional feature only if you select it(3). If selected, we deduct 0.10% of your contract value on your contract anniversary at the end of each contract year. We prorate this fee among the subaccounts and fixed account in the same proportion your interest in each account bears to your total contract value, less amounts invested in the Special DCA account. Such fee is only deducted from any Special DCA account if insufficient amounts are available in the fixed account and the subaccounts. We reserve the right to increase the fee for this rider after the tenth rider anniversary to a maximum of 0.20%. If the rider terminates for any reason other than due to a change in ownership of the contract, we will deduct this fee, adjusted for the number of calendar days coverage was in place. If you choose to drop this rider on a contract anniversary (subject to the restrictions given in "Optional Benefits"), we will deduct this fee on that anniversary. This fee does not apply after annuity payouts begin. (3) Available if you are 75 or younger at the rider effective date. Not available with MAV. May not be available in all states. EEB RIDER FEE We charge a fee for this optional feature only if you select it(4). If selected, we deduct 0.30% of your contract value on your contract anniversary at the end of each contract year. We prorate this fee among the subaccounts and fixed accounts in the same proportion your interest in each account bears to your total contract value, less amounts invested in the Special DCA account. . Such fee is only deducted from any Special DCA account if insufficient amounts are available in the fixed account and the subaccounts. We reserve the right to increase the fee for this rider after the tenth rider anniversary to a maximum of 0.40%. If the rider terminates for any reason other than due to a change in ownership of the contract, we will deduct this fee, adjusted for the number of calendar days coverage was in place. If you choose to drop this rider on an anniversary (subject to the restrictions given in "Optional Benefits"), we will deduct this fee on that anniversary. This fee does not apply after annuity payouts begin. (4) Available if you are 75 or younger at the rider effective date. Not available with EEP. May not be available in all states. -------------------------------------------------------------------------------- 45 AMERICAN EXPRESS RETIREMENT ADVISOR ADVANTAGE PLUS / RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS EEP RIDER FEE We charge a fee for this optional feature only if you select it(5). If selected, we deduct 0.40% of your contract value on your contract anniversary at the end of each contract year. We prorate this fee among the subaccounts and fixed accounts in the same proportion your interest in each account bears to your total contract value, less amounts invested in the Special DCA account. . Such fee is only deducted from any Special DCA account if insufficient amounts are available in the fixed account and the subaccounts. We reserve the right to increase the fee for this rider after the tenth rider anniversary to a maximum of 0.50%. If the rider terminates for any reason other than due to a change in ownership of the contract, we will deduct this fee, adjusted for the number of calendar days coverage was in place. If you choose to drop this rider on an anniversary (subject to the restrictions given in "Optional Benefits"), we will deduct this fee on that anniversary. This fee does not apply after annuity payouts begin. (5) Available if you are 75 or younger at the rider effective date. Not available with EEB. May not be available in all states. EEP is only available on contracts purchased through a transfer or exchange. RIDER COMBINATION DISCOUNT A fee discount of 0.05% applies if you purchase 5-Year MAV with either EEB or EEP. A fee discount of 0.10% applies if you purchase MAV with either EEB or EEP. SURRENDER CHARGE If you surrender all or part of your contract, you may be subject to a surrender charge. For RAVA Advantage Plus, a surrender charge applies if all or part of the surrender amount is from purchase payments we received within seven (7) or ten (10) years before surrender. You select the surrender charge period at the time of your application for the contract.* For RAVA Select Plus, a surrender charge applies if you surrender all or part of your purchase payments in the first three (3) contract years. The surrender charge percentages that apply to you are shown in your contract. * The ten-year surrender charge schedule under RAVA Advantage Plus is not available in Oregon. For contracts issued in Massachusetts, Oregon and Washington, surrender charges are waived after the tenth contract anniversary. Surrender charge under RAVA Advantage Plus: For purposes of calculating any surrender charge under RAVA Advantage Plus, we treat amounts surrendered from your contract value in the following order: 1. First, we surrender any contract earnings (contract value less purchase payments received and not previously surrendered). We do not assess a surrender charge on contract earnings. NOTE: We determine contract earnings by looking at the entire contract value, not the earnings of any particular subaccount, the fixed account or the Special DCA account. 2. Next, in each contract year, we surrender amounts totaling up to 10% of your prior contract anniversary contract value, but only to the extent not included and surrendered in number one above. (Your initial purchase payment is considered the prior contract anniversary contract value during the first contract year.) We do not assess a surrender charge on this amount. 3. Next we surrender purchase payments received prior to the surrender charge period you selected and shown in your contract. We do not assess a surrender charge on these purchase payments. 4. Finally, if necessary, we surrender purchase payments received that are still within the surrender charge period you selected and shown in your contract. We surrender these payments on a first-in, first-out (FIFO) basis. We do assess a surrender charge on these payments. We determine your surrender charge by multiplying each of your payments surrendered by the applicable surrender charge percentage, and then adding the total surrender charges. -------------------------------------------------------------------------------- 46 AMERICAN EXPRESS RETIREMENT ADVISOR ADVANTAGE PLUS / RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS The surrender charge percentage depends on the number of years since you made the payments that are surrendered, depending on the schedule you selected*:
Seven-year schedule Ten-year schedule* Number of completed Number of completed years from date of each Surrender charge years from date of each Surrender charge purchase payment percentage purchase payment percentage 0 7% 0 8% 1 7 1 8 2 7 2 8 3 6 3 7 4 5 4 7 5 4 5 6 6 2 6 5 7+ 0 7 4 8 3 9 2 10+ 0
* The ten-year surrender charge schedule under RAVA Advantage Plus is not available in Oregon. In Connecticut, the ten-year surrender charge schedule is 8% for years 0-2, 7% for year 3 and declining by 1% each year thereafter until it is 0% for years 10+. For contracts issued in Massachusetts, Oregon and Washington, we waive surrender charges after the tenth contract anniversary. Surrender charge under RAVA Select Plus (except Texas) : For purposes of calculating any surrender charge under RAVA Select Plus, we treat amounts surrendered from your contract value in the following order: 1. First, we surrender any contract earnings (contract value less purchase payments received and not previously surrendered). We do not assess a surrender charge on contract earnings. NOTE: We determine contract earnings by looking at the entire contract value, not the earnings of any particular subaccount, the fixed account or the Special DCA account. 2. Next, in each contract year, we surrender amounts totaling up to 10% of your prior contract anniversary contract value, but only to the extent not included and surrendered in number one above. We do not assess a surrender charge on this amount. (Your initial purchase payment is considered the prior contract anniversary contract value during the first contract year.) 3. Finally, if necessary, we surrender purchase payments. We do assess a surrender charge on these payments during the first three contract years as follows: Contract year Surrender charge percentage 1 7% 2 7 3 7 Thereafter 0 -------------------------------------------------------------------------------- 47 AMERICAN EXPRESS RETIREMENT ADVISOR ADVANTAGE PLUS / RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS Surrender charge under RAVA Select Plus in Texas: For purposes of calculating any surrender charge under RAVA Select Plus in Texas, we treat amounts surrendered from your contract value in the following order: 1. First, we surrender any contract earnings (contract value less purchase payments received and not previously surrendered). We do not assess a surrender charge on contract earnings. NOTE: We determine contract earnings by looking at the entire contract value, not the earnings of any particular subaccount, the fixed account or the Special DCA account. 2. Next, in each contract year, we surrender amounts totaling up to 10% of your prior contract anniversary contract value, but only to the extent not included and surrendered in number one above. We do not assess a surrender charge on this amount. (Your initial purchase payment is considered the prior contract anniversary contract value during the first contract year.) 3. Finally, if necessary, we surrender purchase payments. We surrender amounts from the oldest purchase payments first. We do assess a surrender charge on these payments during the first three contract years as follows:
Surrender charge percentage (as a percentage of purchase payments surrendered) in contract year Payments made in contract year 1 2 3 Thereafter 1 8% 7% 6% 0% 2 8 7 0 3 8 0 Thereafter 0
Partial surrenders For a partial surrender that is subject to a surrender charge, the amount we actually deduct from your contract value will be the amount you request plus any applicable surrender charge. For partial surrenders, we determine the amount that represents purchase payments which are subject to a surrender charge by the following formula: PS - FA x (PP - PE) ------- CV - FA Where PS = Amount of partial surrender FA = Free amount (amounts that are subject to a waiver of surrender charge) CV = Contract value prior to the surrender PP = Purchase payments not previously surrendered PE = Amounts surrendered totaling up to10% of the prior contract anniversary value to the extent it is larger than amounts surrendered that represent contract earnings After calculating the amount of purchase payments that might be subject to a surrender charge, we use the surrender order described above to determine the surrender charge. For a partial surrender that is subject to a surrender charge, the amount we actually surrender from your contract value will be the amount you request plus any applicable surrender charge. The surrender charge is applied to this total amount. We pay you the amount you requested. Surrender charge under Annuity Payout Plan E -- Payouts for a specified period: Under this payout plan, you can choose to take a surrender. The amount that you can surrender is the present value of any remaining variable payouts. The discount rate we use in the calculation will be 5.17% if the assumed investment rate is 3.5% and 6.67% if the assumed investment rate is 5%. The surrender charge equals the present value of the remaining payouts using the assumed investment rate minus the present value of the remaining payouts using the discount rate. -------------------------------------------------------------------------------- 48 AMERICAN EXPRESS RETIREMENT ADVISOR ADVANTAGE PLUS / RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS Surrender charge calculation example The following is an example of the calculation we would make to determine the surrender charge on a RAVA Advantage Plus contract that contains a seven-year surrender charge schedule with this history: o The contract date is July 1, 2003 with a contract year of July 1 through June 30 and with an anniversary date of July 1 each year; and o We received these payments: -- $5,000 July 1, 2003; -- $55,000 Dec. 31, 2005; -- $40,000 Feb. 20, 2011; and You wish to take a partial surrender of $60,000 at Sept. 1, 2011. At that date, the contract value is equal to $80,000. The previous contract anniversary value was equal to $100,000. Using the terminology above, PS = $60,000, CV = $80,000, PP = $100,000. FA = $10,000 (10% of the previous contract anniversary value). Since there are no contract earnings, PE = $10,000. This results in the following amount being subject to a surrender charge for this partial surrender: ($60,000 - $10,000) x ($100,000 - $10,000) = $64,286 ------------------- ($80,000 - $10,000) We surrender the purchase payments on a first-in-first-out basis. We surrender the following amounts with the indicated surrender charge rates: o $5,000 from the July 1, 2003 purchase payment with no surrender charge (part of 10% of prior contract anniversary value). o $5,000 from the Dec. 31, 2005 purchase payment with no surrender charge (rest of 10% of prior contract anniversary value). o $50,000 from the Dec. 31, 2005 purchase payment with a 4% surrender charge. o $14,286 from the Feb. 20, 2011 purchase payment with a 7% surrender charge. This results in a total surrender charge of $3,000 (4% x $50,000 + 7% x $14,286). Waiver of surrender charges We do not assess surrender charges under any contract for: o surrenders of any contract earnings; o surrenders of amounts totaling up to 10% of your prior contract anniversary contract value to the extent it exceeds contract earnings; o amounts surrendered after the tenth contract anniversary in Massachusetts, Washington and Oregon; o required minimum distributions from a qualified annuity (for those amounts required to be distributed from a contract described in this prospectus); o contracts settled using an annuity payout plan*, unless an annuity payout Plan E is later surrendered; o amounts we refund to you during the free look period*; o death benefits*; o surrenders you make under your contract's "Waiver of Surrender Charges for Nursing Home Confinement" provision*. To the extent permitted by state law, this provision applies when you are under age 76 on the date that we issue the contract. Under this provision, we will waive surrender charges that we normally assess upon full or partial surrender. You must provide proof satisfactory to us that, as of the date you request the surrender, you or your spouse are confined to a nursing home or hospital and have been for the prior 60 days and the confinement began after the contract date. (See your contract for additional conditions and restrictions on this waiver.); and o surrenders you make under your contract's "Waiver of Surrender Charges for Terminal Illness Disability Diagnosis" provision.* To the extent permitted by state law, this provision applies when you are under age 76 on the date we issue the contract. Under this provision, surrenders you make if you are diagnosed in the second or later contract years as disabled with a medical condition that with reasonable medical certainty will result in death within 12 months or less from the date of a licensed physician's statement. You must provide us with a licensed physician's statement containing the terminal illness diagnosis and the date the terminal illness was initially diagnosed. (See your contract for additional conditions and restrictions on this waiver.) * However, we will reverse certain purchase payment credits. (See "Valuing Your Investment -- Purchase payment credits.") Other information on charges: AEFC makes certain custodial services available to some profit sharing, money purchase and target benefit plans funded by our annuities. Fees for these services start at $30 per calendar year per participant. AEFC will charge a termination fee for owners under age 59 1/2 (fee waived in case of death or disability). -------------------------------------------------------------------------------- 49 AMERICAN EXPRESS RETIREMENT ADVISOR ADVANTAGE PLUS / RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS Possible group reductions: In some cases we may incur lower sales and administrative expenses due to the size of the group, the average contribution and the use of group enrollment procedures. In such cases, we may be able to reduce or eliminate certain charges such as the contract administrative and surrender charges. However, we expect this to occur infrequently. PREMIUM TAXES Certain state and local governments impose premium taxes on us (up to 3.5%). These taxes depend upon your state of residence or the state in which the contract was sold. Currently, we deduct any applicable premium tax when annuity payouts begin, but we reserve the right to deduct this tax at other times such as when you surrender your contract. Valuing Your Investment We value your accounts as follows: FIXED ACCOUNT We value the amounts you allocate to the fixed account directly in dollars. The fixed account value equals: o the sum of your purchase payments and transfer amounts allocated to the fixed account; o plus any purchase payment credits allocated to the fixed account; o plus interest credited; o minus the sum of amounts surrendered (including any applicable surrender charges) and amounts transferred out; o minus any prorated portion of the contract administrative charge; o minus any prorated portion of the ROPP rider fee (if selected); o minus any prorated portion of the MAV rider fee (if selected); o minus any prorated portion of the 5-Year MAV rider fee (if selected); o minus any prorated portion of the EEB rider fee (if selected); and o minus any prorated portion of the EEP rider fee (if selected). SPECIAL DCA ACCOUNT We value the amounts you allocate to the special DCA account directly in dollars. The special DCA account value equals: o the sum of your purchase payments allocated to the special DCA account; o plus interest credited; o minus the sum of amounts surrendered (including any applicable surrender charges); o minus amounts transferred out; and o minus any remaining portion of fees where the values of the fixed account and the subaccounts are insufficient to cover those fees. SUBACCOUNTS We convert amounts you allocated to the subaccounts into accumulation units. Each time you make a purchase payment or transfer amounts into one of the subaccounts or we apply any purchase payment credits to a subaccount, we credit a certain number of accumulation units to your contract for that subaccount. Conversely, each time you take a partial surrender, transfer amounts out of a subaccount, or we assess a contract administrative charge, a surrender charge or any applicable charge for an optional death benefit, we subtract a certain number of accumulation units from your contract. The accumulation units are the true measure of investment value in each subaccount during the accumulation period. They are related to, but not the same as, the net asset value of the fund in which the subaccount invests. The dollar value of each accumulation unit can rise or fall daily depending on the variable account expenses, performance of the fund and on certain fund expenses. Here is how we calculate accumulation unit values: Number of units: to calculate the number of accumulation units for a particular subaccount we divide your investment by the current accumulation unit value. Accumulation unit value: the current accumulation unit value for each subaccount equals the last value times the subaccount's current net investment factor. -------------------------------------------------------------------------------- 50 AMERICAN EXPRESS RETIREMENT ADVISOR ADVANTAGE PLUS / RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS We determine the net investment factor by: o adding the fund's current net asset value per share, plus the per share amount of any accrued income or capital gain dividends to obtain a current adjusted net asset value per share; then o dividing that sum by the previous adjusted net asset value per share; and o subtracting the percentage factor representing the mortality and expense risk fee from the result. Because the net asset value of the fund may fluctuate, the accumulation unit value may increase or decrease. You bear all the investment risk in a subaccount. Factors that affect subaccount accumulation units: accumulation units may change in two ways -- in number and in value. The number of accumulation units you own may fluctuate due to: o additional purchase payments you allocate to the subaccounts; o any purchase payment credits allocated to the subaccounts; o transfers into or out of the subaccounts; o partial surrenders; o surrender charges; o a prorated portion of the contract administrative charge; o a prorated portion of the ROPP rider fee (if selected); o a prorated portion of the MAV rider fee (if selected); o a prorated portion of the 5-Year MAV rider fee (if selected); o a prorated portion of the EEB rider fee (if selected); and/or o a prorated portion of the EEP rider fee (if selected). Accumulation unit values will fluctuate due to: o changes in funds' net asset value; o dividends distributed to the subaccounts; o capital gains or losses of funds; o fund operating expenses; and/or o mortality and expense risk fees. PURCHASE PAYMENT CREDITS For RAVA Advantage Plus: we add a credit to your contract in the amount of: o 1% of each purchase payment received: -- if you elect the ten-year surrender charge schedule for your contract* and the initial purchase payment is under $100,000; or -- if you elect the seven-year surrender charge schedule for your contract and your initial purchase payment to the contract is at least $100,000 but less than $1,000,000. o 2% of each purchase payment received if you elect the ten-year surrender charge schedule for your contract* and your initial purchase payment to the contract is at least $100,000 but less than $1,000,000. For RAVA Advantage Plus - Band 3: we add a credit to your contract in the amount of: o 2% of each purchase payment received: -- if you elect the seven-year surrender charge schedule for your contract. o 3% of each purchase payment received -- if you elect the ten-year surrender charge schedule for your contract*. Surrender charges under RAVA Advantage Plus and RAVA Advantage Plus - Band 3 may be higher and longer than those for contracts that do not have purchase payment credits. The amount of the credits may be more than offset by the additional charges associated with them. Because of higher charges, there could be circumstances where you may be worse off purchasing one of these contracts with the credits than purchasing other contracts. All things being equal (such as fund performance and availability), this may occur if you select the ten-year surrender charge and you make a full withdrawal in years five through ten. We pay for the credits under RAVA Advantage Plus and RAVA Advantage Plus - Band 3 primarily through revenue from a higher and longer surrender charge schedule and through lower costs associated with larger sized contracts, including lower compensation paid on the sales of these contracts. For RAVA Select Plus: we add a credit to your contract in the amount of 1% of each purchase payment received in the first contract year if your initial purchase payment to the contract is at least $250,000 but less than $1,000,000. -------------------------------------------------------------------------------- 51 AMERICAN EXPRESS RETIREMENT ADVISOR ADVANTAGE PLUS / RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS For RAVA Select Plus - Band 3: we add a credit to your contract in the amount of 2% of each purchase payment received in the first contract year. Expenses under RAVA Select Plus and RAVA Select Plus - Band 3 may be higher than those for contracts that do not have purchase payment credits. The amount of the credits may be more than offset by the additional charges associated with them. Because of higher charges, you may be worse off purchasing one of these contracts with the credits than purchasing other contracts. We pay for the credits under RAVA Select Plus and RAVA Select Plus - Band 3 primarily through lower costs associated with larger sized contracts, including lower compensation paid on the sales of these contracts. We fund all credits from our general account. We do not consider credits to be "investments" for income tax purposes. (See "Taxes.") We allocate each credit to your contract value when the applicable purchase payment is applied to your contract value. We allocate such credits to your contract value according to allocation instructions in effect for your purchase payments. We will reverse credits from the contract value for any purchase payment that is not honored. The amount returned to you under the free look provision also will not include any credits applied to your contract. (See "The Contract in Brief - Free look period.") We will assess a charge, similar to a surrender charge, equal to the amount of the purchase payment credits to the extent a death benefit, surrender payment, or settlement under an annuity payout plan includes purchase payment credits applied within twelve months preceding: (1) the date of death that results in a lump sum death benefit under this contract; (2) a request for surrender charge waiver due to Nursing Home Confinement or Terminal Illness Disability Diagnosis; or (3) settlement of the contract under an annuity payout plan. The amount we pay to you under these circumstances will always equal or exceed your surrender value. We reserve the right to increase the amount of the credit for certain groups of contract owners. The increase will not be greater than 8% of total net purchase payments. We would pay for increases in credit amounts primarily through reduced expenses expected from such groups. * The ten-year surrender charge under RAVA Advantage Plus and RAVA Advantage Plus - Band 3 is not available in Oregon. Contracts purchased in Oregon are only eligible for a 1% purchase payment credit if the initial purchase payment is at least $100,000. Making the Most of Your Contract AUTOMATED DOLLAR-COST AVERAGING Currently, you can use automated transfers to take advantage of dollar-cost averaging (investing a fixed amount at regular intervals). For example, you might transfer a set amount monthly from a relatively conservative subaccount to a more aggressive one, or to several others, or from the fixed account to one or more subaccounts. You may not set-up an automated transfer to the fixed account or the Special DCA account. There is no charge for dollar-cost averaging. This systematic approach can help you benefit from fluctuations in accumulation unit values caused by fluctuations in the market values of the funds. Since you invest the same amount each period, you automatically acquire more units when the market value falls and fewer units when it rises. The potential effect is to lower your average cost per unit.
How dollar-cost averaging works Number Amount Accumulation of units Month invested unit value purchased By investing an equal number of dollars each month... Jan $100 $20 5.00 Feb 100 18 5.56 you automatically buy more Mar 100 17 5.88 units when the per unit Apr 100 15 6.67 market price is low ... ----> May 100 16 6.25 Jun 100 18 5.56 Jul 100 17 5.88 and fewer units when the per Aug 100 19 5.26 unit market price is high. ----> Sept 100 21 4.76 Oct 100 20 5.00
You paid an average price of only $17.91 per unit over the 10 months, while the average market price actually was $18.10. Dollar-cost averaging does not guarantee that any subaccount will gain in value nor will it protect against a decline in value if market prices fall. Because dollar-cost averaging involves continuous investing, your success will depend upon your willingness to continue to invest regularly through periods of low price levels. Dollar-cost averaging can be an effective way to help meet your long-term goals. For specific features contact your sales representative. -------------------------------------------------------------------------------- 52 AMERICAN EXPRESS RETIREMENT ADVISOR ADVANTAGE PLUS / RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS SPECIAL DOLLAR-COST AVERAGING (SPECIAL DCA) PROGRAM If your purchase payment is at least $10,000, you can choose to participate in the Special DCA program (if available). There is no charge for the Special DCA program. Under the Special DCA program, you can allocate a new purchase payment and any applicable purchase payment credit to a six-month Special DCA account according to the following rules: o You may only allocate a new purchase payment of at least $10,000 to a Special DCA account. o You cannot transfer existing contract values into a Special DCA account. o Each Special DCA arrangement consists of 6 monthly transfers that begin 7 days after we receive your purchase payment. o We make monthly transfers of your Special DCA account value into the subaccounts you select. o You may not use the fixed account or the Special DCA account as a destination for the Special DCA monthly transfer. o We will change the interest rate on each Special DCA account from time to time at our discretion based on factors that include the competition and the interest rate we are crediting to the fixed account at the time of the change. o We credit each Special DCA account with the current guaranteed annual rate that is in effect on the date we receive your purchase payment. However, we credit this annual rate over the length of the Special DCA arrangement on the balance remaining in your Special DCA account. Therefore, the net effective interest rate you receive is less than the stated annual rate. o We do not credit this interest after we transfer the value out of the Special DCA account into the accounts you selected. o Once you establish a Special DCA account, you cannot allocate additional purchase payments to it. However, you may establish another new Special DCA account and allocate new purchase payments to it. o Funding from multiple sources are treated as individual purchase payments and a new Special DCA account is opened for each payment (if the Special DCA accounts are available the date we receive payment). o You may terminate your participation in the Special DCA program at any time. If you do, we will transfer the remaining balance from your Special DCA account to the fixed account. Interest will be credited according to the rates in effect on the fixed account and not the rate that was in effect on the Special DCA account. o We can modify the terms or discontinue the Special DCA program at any time. Any modifications will not affect any purchase payments that are already in a Special DCA account. For more information on the Special DCA program, contact your sales representative. Dollar-cost averaging does not guarantee that any subaccount will gain in value nor will it protect against a decline in value if market prices fall. Because dollar-cost averaging involves continuous investing, your success will depend upon your willingness to continue to invest regularly through periods of low price levels. Dollar-cost averaging can be an effective way to help meet your long-term goals. For specific features, contact your sales representative. ASSET REBALANCING You can ask to have the variable subaccount portion of your contract value allocated according to the percentages (in whole percentage amounts ) that you choose. We automatically will rebalance the variable subaccount portion of your contract value either quarterly, semi-annually, or annually. The period you select will start to run on the date we record your request. On the first valuation date of each of these periods, we automatically will rebalance your contract value so that the value in each subaccount matches your current subaccount percentage allocations. These percentage allocations must be in whole numbers. Asset rebalancing does not apply to the fixed account or the Special DCA account. There is no charge for asset rebalancing. The contract value must be at least $2,000. You can change your percentage allocations or your rebalancing period at any time by contacting us in writing. We will restart the rebalancing period you selected as of the date we record your change. You also can ask us in writing to stop rebalancing your contract value. You must allow 30 days for us to change any instructions that currently are in place. For more information on asset rebalancing, contact your sales representative. TRANSFERRING BETWEEN ACCOUNTS You may transfer contract value from any one subaccount, or the fixed account, to another subaccount before annuity payouts begin. (Certain restrictions apply to transfers involving the fixed account.) We will process your transfer on the valuation date we receive your request. We will value your transfer at the next accumulation unit value calculated after we receive your request. There is no charge for transfers. Before making a transfer, you should consider the risks involved in changing investments. We may suspend or modify transfer privileges at any time. The contract is not designed for use by individuals, professional market timing organizations, or other entities that do "market timing," programmed transfers, frequent transfers or excessive trading, or transfers that are large in relation to the total assets of any fund underlying the contract. These and similar activities may adversely affect a fund's ability to invest effectively in accordance with its investment objectives and policies, may increase expenses and may harm other contract owners who allocated purchase payments to the fund regardless of their transfer activity. Accordingly, individuals and organizations that use market-timing investment strategies and make frequent transfers should not own this contract. -------------------------------------------------------------------------------- 53 AMERICAN EXPRESS RETIREMENT ADVISOR ADVANTAGE PLUS / RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS We monitor the frequency of transfers, including the size of transfers in relation to fund assets in each underlying fund, and we take appropriate action as necessary. In order to prevent market timing activities that may harm or disadvantage other contract owners, we may apply modifications or restrictions (including suspending the transfer privilege) in any reasonable manner to prevent a transfer. We may also reject or restrict any specific payment or transfer request and impose specific limitations with respect to market timers, including restricting transfers by market timers to certain underlying funds. We may also apply other restrictions or modifications that could include, but not be limited to: o not accepting telephone or electronic transfer requests; o requiring a minimum time period between each transfer; o not accepting transfer requests of an agent acting under power of attorney on behalf of more than one contract owner; or o limiting the dollar amount that a contract owner may transfer at any one time. We agree to provide notice of our intent to restrict transfer privileges to contract owners who have engaged in disruptive activity. In addition, some of the underlying funds have reserved the right to temporarily or permanently refuse payments or transfer requests from us if, in the judgment of the fund's investment adviser, the fund would be unable to invest effectively in accordance with its investment objective or policies, or would otherwise potentially be adversely affected. Accordingly, we may not be in a position to effect certain allocations or transfers requested by market timers and may refuse such requests without prior notice. Subject to state law, we reserve the right to impose, without prior notice, restrictions on allocations and transfers that we determine, in our sole discretion, will disadvantage or potentially hurt the rights or interests of other contract owners. For information on transfers after annuity payouts begin, see "Transfer policies" below. Transfer policies o Before annuity payouts begin, you may transfer contract values between the subaccounts, at any time. You may also transfer contract values from the subaccounts to the fixed account. However, if you made a transfer from the fixed account to the subaccounts, you may not make a transfer from any subaccount back to the fixed account until the next contract anniversary. We reserve the right to limit transfers to the fixed account if the interest rate we are then currently crediting to the fixed account is equal to the minimum interest rate stated in the contract. You may not make a transfer to the Special DCA account. o You may transfer contract values from the fixed account to the subaccounts once a year during a 31-day transfer period starting on each contract anniversary (except for automated transfers, which can be set up at any time for certain transfer periods subject to certain minimums). Currently, transfers out of the fixed account are limited to the greater of: a) 30% of the fixed account value at the beginning of the contract year, or b) the amount transferred out of the fixed account in the previous contract year, excluding any automated transfer amounts. o If we receive your request within 30 days before the contract anniversary date, the transfer from the fixed account to the subaccounts will be effective on the anniversary. o If we receive your request on or within 30 days after the contract anniversary date, the transfer from the fixed account to the subaccounts will be effective on the valuation date we receive it. o We will not accept requests for transfers from the fixed account at any other time. o Once annuity payouts begin, you may not make transfers to or from the fixed account, but you may make transfers once per contract year among the subaccounts. During the annuity payout period, you cannot invest in more than five subaccounts at any one time unless we agree otherwise. HOW TO REQUEST A TRANSFER OR SURRENDER 1 By letter Send your name, contract number, Social Security Number or Taxpayer Identification Number* and signed request for a transfer or surrender to: Regular mail: IDS Life Insurance Company 70100 AXP Financial Center Minneapolis, MN 55474 Minimum amount Transfers or surrenders: $250 or entire account balance Maximum amount Transfers or surrenders: Contract value or entire account balance * Failure to provide TIN may result in mandatory tax withholding on the taxable portion of the distribution. -------------------------------------------------------------------------------- 54 AMERICAN EXPRESS RETIREMENT ADVISOR ADVANTAGE PLUS / RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 2 By automated transfers and automated partial surrenders Your sales representative can help you set up automated transfers among your subaccounts or fixed account or partial surrenders from the accounts.* You can start or stop this service by written request or other method acceptable to us. You must allow 30 days for us to change any instructions that are currently in place. o Automated transfers to the fixed account or the Special DCA account are not allowed. o Automated surrenders may be restricted by applicable law under some contracts. o You may not make additional purchase payments if automated partial surrenders are in effect. o Automated partial surrenders may result in IRS taxes and penalties on all or part of the amount surrendered. o The balance in any account from which you make an automated transfer or automated partial surrender must be sufficient to satisfy your instructions. If not, we will suspend your entire automated arrangement until the balance is adequate. o If we must suspend your automated transfer or automated partial surrender arrangement for six months, we reserve the right to discontinue the arrangement in its entirety. Minimum amount Transfers or surrenders: $50 Maximum amount Transfers or surrenders: None (except for automated transfers from the fixed account) * Failure to provide TIN may result in mandatory tax withholding on the taxable portion of the distribution. 3 By phone Call between 7 a.m. and 10 p.m. Central time: (800) 862-7919 TTY service for the hearing impaired: (800) 285-8846 Minimum amount Transfers or surrenders: $250 or entire account balance Maximum amount Transfers: Contract value or entire account balance Surrenders: $100,000 We answer telephone requests promptly, but you may experience delays when the call volume is unusually high. If you are unable to get through, use the mail procedure as an alternative.* We will honor any telephone transfer or surrender requests that we believe are authentic and we will use reasonable procedures to confirm that they are. This includes asking identifying questions and tape recording calls. We will not allow a telephone surrender within 30 days of a phoned-in address change. As long as we follow the procedures, we (and our affiliates) will not be liable for any loss resulting from fraudulent requests. Telephone transfers or surrenders are automatically available. You may request that telephone transfers or surrenders not be authorized from your account by writing to us. * Failure to provide TIN may result in mandatory tax withholding on the taxable portion of the distribution. Surrenders You may surrender all or part of your contract at any time before annuity payouts begin by sending us a written request or calling us. We will process your surrender request on the valuation date we receive it. For total surrenders, we will compute the value of your contract at the next accumulation unit value calculated after we receive your request. We may ask you to return the contract. You may have to pay surrender charges, ROPP charges, MAV charges, 5-Year MAV charges, EEB charges, EEP charges (see "Charges") and IRS taxes and penalties (see "Taxes"). You cannot make surrenders after annuity payouts begin except under Plan E (see "The Annuity Payout Period -- Annuity Payout Plans"). SURRENDER POLICIES If you have a balance in more than one account and you request a partial surrender, we will withdraw money from all your subaccounts and/or the fixed account, in the same proportion as your value in each account correlates to your total contract value, unless you request otherwise. We will not withdraw money from any Special DCA account you may have. The minimum contract value after partial surrender is $600. -------------------------------------------------------------------------------- 55 AMERICAN EXPRESS RETIREMENT ADVISOR ADVANTAGE PLUS / RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS RECEIVING PAYMENT 1 By regular or express mail o payable to you; o mailed to address of record. NOTE: We will charge you a fee if you request express mail delivery. 2 By wire o request that payment be wired to your bank; o bank account must be in the same ownership as your contract; and o pre-authorization required. NOTE: We will charge you a fee if you request that payment be wired to your bank. For instructions, please contact your sales representative. Normally, we will send the payment within seven days after receiving your request. However, we may postpone the payment if: -- the surrender amount includes a purchase payment check that has not cleared; -- the NYSE is closed, except for normal holiday and weekend closings; -- trading on the NYSE is restricted, according to SEC rules; -- an emergency, as defined by SEC rules, makes it impractical to sell securities or value the net assets of the accounts; or -- the SEC permits us to delay payment for the protection of security holders. TSA -- Special Surrender Provisions PARTICIPANTS IN TAX-SHELTERED ANNUITIES The Code imposes certain restrictions on your right to receive early distributions from a TSA: o Distributions attributable to salary reduction contributions (plus earnings) made after Dec. 31, 1988, or to transfers or rollovers from other contracts, may be made from the TSA only if: -- you are at least age 59 1/2; -- you are disabled as defined in the Code; -- you severed employment with the employer who purchased the contract; or -- the distribution is because of your death. o If you encounter a financial hardship (as provided by the Code), you may be eligible to receive a distribution of all contract values attributable to salary reduction contributions made after Dec. 31, 1988, but not the earnings on them. o Even though a distribution may be permitted under the above rules, it may be subject to IRS taxes and penalties (see "Taxes"). o The employer must comply with certain nondiscrimination requirements for certain types of contributions under a TSA contract to be excluded from taxable income. You should consult your employer to determine whether the nondiscrimination rules apply to you. o The above restrictions on distributions do not affect the availability of the amount credited to the contract as of Dec. 31, 1988. The restrictions also do not apply to transfers or exchanges of contract value within the contract, or to another registered variable annuity contract or investment vehicle available through the employer. o If the contract has a loan provision, the right to receive a loan is described in detail in your contract. -------------------------------------------------------------------------------- 56 AMERICAN EXPRESS RETIREMENT ADVISOR ADVANTAGE PLUS / RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS Changing Ownership You may change ownership of your nonqualified annuity at any time by completing a change of ownership form we approve and sending it to our office. The change will become binding on us when we receive and record it. We will honor any change of ownership request that we believe is authentic and we will use reasonable procedures to confirm authenticity. If we follow these procedures, we will not take any responsibility for the validity of the change. Please consider carefully whether or not you wish to change ownership of your nonqualified annuity if you have elected the MAV, 5-Year MAV, EEB or EEP. If you change ownership of your contract, we will terminate the EEP. This includes both the EEP Part I benefits and the EEP Part II benefits. (See the description of these terms in "Optional Benefits".) In addition, the terms of the EEB, MAV and the 5-Year MAV will change due to a change of ownership. If the new owner is older than age 75, the EEB will terminate. Otherwise, the EEB will effectively "start over." We will treat the EEB as if it is issued on the day the change of ownership is made, using the attained age of the new owner as the "issue age" to determine the benefit levels. The account value on the date of the ownership change will be treated as a "purchase payment" in determining future values of "earnings at death" under the EEB. If the new owner is older than age 75, the MAV and 5-Year MAV will terminate. If the MAV or the 5-Year MAV on the date of ownership change is greater than the account value on the date of the ownership change, we will set the MAV or the 5-Year MAV equal to the account value. Otherwise, the MAV or the 5-Year MAV value will not change due to a change in ownership. Please see the descriptions of these riders in "Optional Benefits." The rider charges described in "Charges" will be assessed at the next contract anniversary (and all future anniversaries when the rider is in force) for any rider that continues after a change of ownership. We reserve the right to assess charges for the number of days the rider was in force for any rider that is terminated due to a change of ownership. If you have a nonqualified annuity, you may incur income tax liability by transferring, assigning or pledging any part of it. (See "Taxes.") If you have a qualified annuity, you may not sell, assign, transfer, discount or pledge your contract as collateral for a loan, or as security for the performance of an obligation or for any other purpose except as required or permitted by the Code. However, if the owner is a trust or custodian, or an employer acting in similar capacity, ownership of the contract may be transferred to the annuitant. Benefits in Case of Death -- Standard Death Benefit We will pay the death benefit to your beneficiary upon your death. If a contract has more than one person as the owner, we will pay benefits upon the first to die of any owner. If you die before annuity payouts begin while this contract is in force, we will pay the beneficiary as follows: If you are age 75 or younger on the date we issue the contract, the beneficiary receives the greater of: o contract value, less any purchase payment credits subject to reversal less pro rata portion of rider fees; or o purchase payments minus adjusted partial surrenders. If you are age 76 or older on the date we issue the contract, the beneficiary receives the contract value, less any purchase payment credits subject to reversal, less pro rata portion of rider fees. Adjusted partial surrenders PS x DB ------------ CV PS = the partial surrender including any applicable surrender charge. DB = the death benefit on the date of (but prior to) the partial surrender. CV = the contract value on the date of (but prior to) the partial surrender. Example of standard death benefit calculation when you are age 75 or younger on the contract effective date: o You purchase the contract with a payment of $20,000 on Jan. 1, 2003. o On March 1, 2004 the contract value falls to $18,000, at which point you take a $1,500 partial surrender, leaving a contract value of $16,500. We calculate the death benefit on March 1, 2004 as follows: The total purchase payments minus adjustments for partial surrenders: Total purchase payments $20,000 minus adjusted partial surrenders, calculated as: $1,500 x $20,000 = -1,667 ---------------- ----- $18,000 for a death benefit of: $18,333 -------------------------------------------------------------------------------- 57 AMERICAN EXPRESS RETIREMENT ADVISOR ADVANTAGE PLUS / RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS IF YOU DIE BEFORE YOUR SETTLEMENT DATE When paying the beneficiary, we will process the death claim on the valuation date that our death claim requirements are fulfilled. We will determine the contract's value at the next accumulation unit value calculated after our death claim requirements are fulfilled. We pay interest, if any, at a rate no less than required by law. We will mail payment to the beneficiary within seven days after our death claim requirements are fulfilled. Nonqualified annuities If your spouse is sole beneficiary and you die before the settlement date, your spouse may keep the contract as owner. To do this your spouse must, within 60 days after we receive proof of death, give us written instructions to keep the contract in force. If your spouse elects to keep the contract as owner, the following describes the standard death benefit: o If you are age 75 or younger on the date we issue the contract, the beneficiary of your spouse's contract receives the greater of: o contract value, less any purchase payment credits subject to reversal less pro rata portion of rider fees; or o purchase payments minus adjusted partial surrenders. If you are age 76 or older on the date we issue the contract, the beneficiary of your spouse's contract receives the contract value, less any purchase payment credits subject to reversal, less pro rata portion of rider fees. If your beneficiary is not your spouse, we will pay the beneficiary in a single sum unless you give us other written instructions. We must fully distribute the death benefit within five years of your death. However, the beneficiary may receive payouts under any annuity payout plan available under this contract if: o the beneficiary asks us in writing within 60 days after we receive proof of death; and o payouts begin no later than one year after your death, or other date as permitted by the Code; and o the payout period does not extend beyond the beneficiary's life or life expectancy. Qualified annuities o Spouse beneficiary: If you have not elected an annuity payout plan, and if your spouse is the sole beneficiary, your spouse may either elect to treat the contract as his/her own or elect an annuity payout plan or another plan agreed to by us. If your spouse elects to treat the contract as his/her own, the following describes the standard death benefit: o If you are age 75 or younger on the date we issue the contract, the beneficiary of your spouse's contract receives the greater of: o contract value, less any purchase payment credits subject to reversal less pro rata portion of rider fees; or o purchase payments minus adjusted partial surrenders. If you are age 76 or older on the date we issue the contract, the beneficiary of your spouse's contract receives the contract value, less any purchase payment credits subject to reversal, less pro rata portion of rider fees. If your spouse elects a payout plan, the payouts must begin no later than the year in which you would have reached age 70 1/2. If you attained age 70 1/2 at the time of death, payouts must begin no later than Dec. 31 of the year following the year of your death. o Non-spouse beneficiary: If you have not elected an annuity payout plan, and if death occurs prior to the year you would have attained age 70 1/2, the beneficiary may elect to receive payouts from the contract over a five year period. If your death occurs after attaining age 70 1/2, we will pay the beneficiary in a single sum unless the beneficiary elects to receive payouts under any payout plan available under this contract if: o the beneficiary asks us in writing within 60 days after we receive proof of death; and o payouts begin no later than one year following the year of your death; and o the payout period does not extend beyond the beneficiary's life or life expectancy. o Annuity payout plan: If you elect an annuity payout plan, the payouts to your beneficiary will continue pursuant to the annuity payout plan you elect. -------------------------------------------------------------------------------- 58 AMERICAN EXPRESS RETIREMENT ADVISOR ADVANTAGE PLUS / RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS Optional Benefits RETURN OF PURCHASE PAYMENTS DEATH BENEFIT (ROPP) The ROPP is intended to provide additional death benefit protection in the event of fluctuating fund values. This is an optional benefit that you may select for an additional annual charge (see "Charges"). If you die before annuity payouts begin while this contract is in force, we will pay the beneficiary the greater of: o contract value, less any purchase payment credits subject to reversal less pro rata portion of rider fees; or o purchase payments minus adjusted partial surrenders. Adjusted partial surrenders for the ROPP death benefit PS x DB ---------- CV PS = the partial surrender including any applicable surrender charge. DB = the death benefit on the date of (but prior to) the partial surrender. CV = the contract value on the date of (but prior to) the partial surrender. If this ROPP rider is available in your state and you are age 76 or older at contract issue, you may choose to add the ROPP to your contract. Generally, you must elect the ROPP at the time you purchase your contract and your rider effective date will be the contract issue date. In some instances the rider effective date for the ROPP may be after we issue the contract according to terms determined by us and at our sole discretion. We reserve the right to discontinue offering the ROPP for new contracts. When annuity payouts begin, or if you terminate the contract for any reason other than death, this rider will terminate. Terminating the ROPP o You may terminate the ROPP rider within 30 days of the first contract anniversary after the rider effective date. o You may terminate the ROPP rider within 30 days of any contract anniversary beginning with the seventh contract anniversary. o The ROPP rider will terminate when you make a full surrender from the contract or when annuity payouts begin. If you terminate the ROPP, the standard death benefit applies. Example o You purchase the contract (with the ROPP rider) with a payment of $20,000 on Jan. 1, 2003. o On March 1, 2004 the contract value falls to $18,000, at which point you take a $1,500 partial surrender, leaving a contract value of $16,500. We calculate the death benefit on March 1, 2004 as follows: The total purchase payments minus adjustments for partial surrenders: Total purchase payments $20,000 minus adjusted partial surrenders, calculated as: $1,500 x $20,000 = -1,667 ------------------ -------- $18,000 for a death benefit of: $18,333 If your spouse is the sole beneficiary, he or she may choose to continue the ROPP. In that case, the ROPP rider charges described in "Charges - Return of Premium Rider Fee" will be assessed at the next contract anniversary (and all future anniversaries when the rider is in force). These charges will be based on the total contract value on the anniversary, including the additional amounts paid into the contract under the ROPP rider. Your spouse also has the option of discontinuing the ROPP rider within 30 days of the date he or she elects to continue the contract. NOTE: For special tax considerations associated with the ROPP, see "Taxes." MAXIMUM ANNIVERSARY VALUE DEATH BENEFIT (MAV) The MAV is intended to provide additional death benefit protection in the event of fluctuating fund values. This is an optional benefit that you may select for an additional annual charge (see "Charges"). The MAV does not provide any additional benefit before the first contract anniversary after the rider effective date. The MAV may be of less value if you are older since we stop resetting the maximum anniversary value at age 81. Although we stop resetting the maximum anniversary value at age 81, the MAV rider fee continues to apply until the rider terminates. In addition, the MAV does not provide any additional benefit with respect to fixed account or Special DCA account values during the time you have amounts allocated to these accounts. Be sure to discuss with your sales representative whether or not the MAV is appropriate for your situation. -------------------------------------------------------------------------------- 59 AMERICAN EXPRESS RETIREMENT ADVISOR ADVANTAGE PLUS / RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS If this MAV rider is available in your state and you are age 75 or younger at contract issue, you may choose to add the MAV to your contract. Generally, you must elect the MAV at the time you purchase your contract and your rider effective date will be the contract issue date. In some instances the rider effective date for the MAV may be after we issue the contract according to terms determined by us and at our sole discretion. We reserve the right to discontinue offering the MAV for new contracts. On the first contract anniversary after the rider effective date we set the maximum anniversary value equal to the highest of your (a) current contract value, or (b) total purchase payments minus adjusted partial surrenders. Every contract anniversary after that, through age 80, we compare the previous anniversary's maximum anniversary value plus subsequent purchase payments less subsequent adjusted partial surrenders to the current contract value and we reset the maximum anniversary value to the higher of these values. We stop resetting the maximum anniversary value after you reach age 81. However, we continue to add subsequent purchase payments and subtract adjusted partial surrenders from the maximum anniversary value. If you die before annuity payouts begin while this contract is in force, we will pay the beneficiary the greatest of: o contract value, less any purchase payment credits subject to reversal less pro rata portion of rider fees; or o purchase payments minus adjusted partial surrenders; or o the maximum anniversary value as calculated on the most recent contract anniversary plus subsequent purchase payments made to the contract minus adjustments for partial surrenders since that contract anniversary. When annuity payouts begin, or if you terminate the contract for any reason other than death, this rider will terminate. Terminating the MAV o You may terminate the MAV rider within 30 days of the first contract anniversary after the rider effective date. o You may terminate the MAV rider within 30 days of any contract anniversary beginning with the seventh contract anniversary. o The MAV rider will terminate when you make a full surrender from the contract or when annuity payouts begin. o The MAV rider will terminate in the case of spousal continuation or ownership change if the new owner is age 76 or older. If you terminate the MAV, the standard death benefit applies. Example o You purchase the contract (with the MAV rider) with a payment of $20,000 on Jan. 1, 2003. o On Jan. 1, 2004 (the first contract anniversary) the contract value grows to $24,000. o On March 1, 2004 the contract value falls to $22,000, at which point you take a $1,500 partial surrender, leaving a contract value of $20,500. We calculate the death benefit on March 1, 2004 as follows: The maximum anniversary value immediately preceding the date of death plus any payments made since that anniversary minus adjusted partial surrenders: Greatest of your contract anniversary contract values: $24,000 plus purchase payments made since that anniversary: +0 minus adjusted partial surrenders, calculated as: $1,500 x $24,000 = -1,636 ---------------- ------ $22,000 for a death benefit of: $22,364 If your spouse is the sole beneficiary, your spouse may choose to continue the contract as the contract owner. If it is a qualified contract, your spouse may continue the contract until the date on which you would have reached age 70 1/2, or any other date permitted by the Code. The contract value will be equal to the death benefit that would otherwise have been paid under the MAV. To do this your spouse must, within 60 days after we receive proof of death, give us written instructions to keep the contract in force. If your spouse has reached age 76 at the time he or she elects to continue the contract, the MAV rider will terminate. If your spouse has not yet reached age 76 at the time he or she elects to continue the contract, he or she may choose to continue the MAV rider. In this case, the rider charges described in "Charges" will be assessed at the next contract anniversary (and all future anniversaries when the rider is in force). These charges will be based on the total contract value on the anniversary, including the additional amounts paid into the contract under the MAV rider. If, at the time he or she elects to continue the contract, your spouse has not yet reached age 76 and chooses not to continue the MAV rider, the contract value will be increased to the MAV death benefit amount if it is greater than the contract value on the death benefit valuation date. -------------------------------------------------------------------------------- 60 AMERICAN EXPRESS RETIREMENT ADVISOR ADVANTAGE PLUS / RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS MAXIMUM FIVE YEAR ANNIVERSARY VALUE DEATH BENEFIT (5-Year MAV) The 5-Year MAV is intended to provide additional death benefit protection in the event of fluctuating fund values. This is an optional benefit that you may select for an additional annual charge (see "Charges"). The 5-Year MAV does not provide any additional benefit before the fifth contract anniversary after the rider effective date. The 5-Year MAV may be of less value if you are older since we stop resetting the maximum anniversary value at age 81. Although we stop resetting the maximum five year anniversary value at age 81, the 5-Year MAV rider fee continues to apply until the rider terminates. In addition, the 5-Year MAV does not provide any additional benefit with respect to fixed account or Special DCA account values during the time you have amounts allocated to these accounts. Be sure to discuss with your sales representative whether or not the 5-Year MAV is appropriate for your situation. If this 5-Year MAV rider is available in your state and you are age 75 or younger at contract issue, you may choose to add the 5-Year MAV to your contract. Generally, you must elect the 5-Year MAV at the time you purchase your contract and your rider effective date will be the contract issue date. In some instances the rider effective date for the 5-Year MAV may be after we issue the contract according to terms determined by us and at our sole discretion. We reserve the right to discontinue offering the 5-Year MAV for new contracts. On the 5th contract anniversary after the rider effective date we set the maximum anniversary value equal to the highest of your (a) current contract value, or (b) total purchase payments minus adjusted partial surrenders. Every 5th contract anniversary after that, through age 80, we compare the previous 5-year anniversary's maximum anniversary value plus subsequent purchase payments less subsequent adjusted partial surrenders to the current contract value and we reset the maximum anniversary value to the higher of these values. We stop resetting the maximum anniversary value after you reach age 81. However, we continue to add subsequent purchase payments and subtract adjusted partial surrenders from the maximum anniversary value. If you die before annuity payouts begin while this contract is in force, we will pay the beneficiary the greatest of: o contract value, less any purchase payment credits subject to reversal less pro rata portion of rider fees; or o purchase payments minus adjusted partial surrenders; or o the maximum anniversary value as calculated on the most recent 5th contract anniversary plus subsequent purchase payments made to the contract minus adjustments for partial surrenders since that contract anniversary. When annuity payouts begin, or if you terminate the contract for any reason other than death, this rider will terminate. Terminating the 5-Year MAV o You may terminate the 5-Year MAV rider within 30 days of the first contract anniversary after the rider effective date. o You may terminate the 5-Year MAV rider within 30 days of any contract anniversary beginning with the seventh contract anniversary. o The 5-Year MAV rider will terminate when you make a full surrender from the contract or when annuity payouts begin. o The 5-Year MAV rider will terminate in the case of spousal continuation or ownership change if the new owner is age 76 or older. If you terminate the 5-Year MAV, the standard death benefit applies. Example o You purchase the contract (with the 5-Year MAV rider) with a payment of $20,000 on Jan. 1, 2003. o On Jan. 1, 2008 (the fifth contract anniversary) the contract value grows to $30,000. o On March 1, 2008 the contract value falls to $25,000, at which point you take a $1,500 partial surrender, leaving a contract value of $23,500. We calculate the death benefit on March 1, 2008 as follows: The maximum 5-year anniversary value immediately preceding the date of death plus any payments made since that anniversary minus adjusted partial surrenders: Greatest of your 5-year contract anniversary contract values: $30,000 plus purchase payments made since that anniversary: +0 minus adjusted partial surrenders, calculated as: $1,500 x $30,000 = -1,800 --------------- ------ $25,000 for a death benefit of: $28,200 -------------------------------------------------------------------------------- 61 AMERICAN EXPRESS RETIREMENT ADVISOR ADVANTAGE PLUS / RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS If your spouse is the sole beneficiary, your spouse may choose to continue the contract as the contract owner. If it is a qualified contract, your spouse may continue the contract until the date on which you would have reached age 70 1/2, or any other date permitted by the Code. The contract value will be equal to the death benefit that would otherwise have been paid under the 5-Year MAV. To do this your spouse must, within 60 days after we receive proof of death, give us written instructions to keep the contract in force. If your spouse has reached age 76 at the time he or she elects to continue the contract, the 5-Year MAV rider will terminate. If your spouse has not yet reached age 76 at the time he or she elects to continue the contract, he or she may choose to continue the 5-Year MAV rider. In this case, the rider charges described in "Charges" will be assessed at the next contract anniversary (and all future anniversaries when the rider is in force). These charges will be based on the total contract value on the anniversary, including the additional amounts paid into the contract under the 5-Year MAV rider. If, at the time he or she elects to continue the contract, your spouse has not yet reached age 76 and chooses not to continue the 5-Year MAV rider, the contract value will be increased to the 5-Year MAV death benefit amount if it is greater than the contract value on the death benefit valuation date. ENHANCED EARNINGS DEATH BENEFIT The EEB is intended to provide an additional benefit to your beneficiary to help offset expenses after your death such as funeral expenses or federal and state taxes. This is an optional benefit that you may select for an additional annual charge (see "Charges"). The EEB provides for reduced benefits if you are age 70 or older at the rider effective date and it does not provide any additional benefit before the first contract anniversary. The EEB also may result in reduced benefits if you take required minimum distributions from your qualified annuity or any partial surrenders during the life of your contract, both of which may reduce contract earnings. This is because the benefit paid by the EEB is determined by the amount of earnings at death. Be sure to discuss with your sales representative and your tax advisor whether or not the EEB is appropriate for your situation. If this EEB rider is available in your state and you are age 75 or younger at the rider effective date, you may choose to add the EEB to your contract. Generally, you must elect the EEB at the time you purchase your contract and your rider effective date will be the contract issue date. In some instances the rider effective date for the EEB may be after we issue the contract according to terms determined by us and at our sole discretion. You may not select this rider if you select the EEP. We reserve the right to discontinue offering the EEB for new contracts. When annuity payouts begin, or if you terminate the contract for any reason other than death, this rider will terminate. The EEB provides that if you die after the first contract anniversary, but before annuity payouts begin, and while this contract is in force, we will pay the beneficiary: o the standard death benefit amount (see "Benefits in Case of Death - Standard Benefit"), the MAV death benefit amount, if applicable, or the 5-Year MAV death benefit amount, if applicable, PLUS o 40% of your earnings at death if you were under age 70 on the rider effective date; or o 15% of your earnings at death if you were age 70 or older on the rider effective date. Additional death benefits payable under the EEB are not included in the adjusted partial surrender calculation. Earnings at death for the EEB and EEP: If the rider effective date for the EEB or EEP is the contract issue date, earnings at death is an amount equal to: o the standard death benefit amount, the MAV death benefit amount, or the 5-year death benefit amount if applicable (the "death benefit amount") o minus purchase payments not previously surrendered. The earnings at death may not be less than zero and may not be more than 250% of the purchase payments not previously surrendered that are one or more years old. If the rider effective date for the EEB is AFTER the contract issue date, earnings at death is an amount equal to the death benefit amount o minus the greater of: o the contract value as of the EEB rider effective date (determined before we apply any purchase payment or purchase payment credit), less any surrenders of that contract value since that rider effective date; or o an amount equal to the death benefit amount as of the EEB rider effective date (determined before we apply any purchase payment or purchase payment credit), less any surrenders of that death benefit amount since that rider effective date o plus any purchase payments made on or after the EEB rider effective date not previously surrendered. -------------------------------------------------------------------------------- 62 AMERICAN EXPRESS RETIREMENT ADVISOR ADVANTAGE PLUS / RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS The earnings at death may not be less than zero and may not be more than 250% multiplied by: o the greater of: o the contract value as of the EEB rider effective date (determined before we apply any purchase payment or purchase payment credit), less any surrenders of that contract value since that rider effective date; or o an amount equal to the death benefit amount as of the EEB rider effective date (determined before we apply any purchase payment or purchase payment credit), less any surrenders of that death benefit amount since that rider effective date o plus any purchase payments made on or after the EEB rider effective date not previously surrendered that are one or more years old. Terminating the EEB o You may terminate the EEB rider within 30 days of the first contract anniversary after the rider effective date. o You may terminate the EEB rider within 30 days of any contract anniversary beginning with the seventh contract anniversary after the rider effective date. o The EEB rider will terminate when you make a full surrender from the contract or when annuity payouts begin. o The EEB rider will terminate in the case of spousal continuation or ownership change if the new owner is age 76 or older. Example of the EEB o You purchase the contract with a payment of $100,000 on Jan. 01, 2003 and you are under age 70. You select the seven-year surrender charge schedule, the MAV and the EEB. o On July 1, 2003 the contract value grows to $105,000. The death benefit on July 1, 2003 equals the standard death benefit, which is the contract value less purchase payment credits reversed, or $104,000. You have not reached the first contract anniversary so the EEB does not provide any additional benefit at this time. o On Jan. 1, 2004 the contract value grows to $110,000. The death benefit on Jan. 1, 2004 equals: MAV death benefit amount (contract value): $110,000 plus the EEB which equals 40% of earnings at death (MAV death benefit amount minus payments not previously surrendered): 0.40 x ($110,000 - $100,000) = +4,000 ------ Total death benefit of: $114,000 o On Jan. 1, 2005 the contract value falls to $105,000. The death benefit on Jan. 1, 2005 equals: MAV death benefit amount (maximum anniversary value): $110,000 plus the EEB (40% of earnings at death): 0.40 x ($110,000 - $100,000) = +4,000 ------ Total death benefit of: $114,000 o On Feb. 1, 2005 the contract value remains at $105, 000 and you request a partial surrender, including the applicable 7% surrender charge, of $50,000. We will surrender $10,500 from your contract value free of charge (10% of your prior anniversary's contract value). The remainder of the surrender is subject to a 7% surrender charge because your purchase payment is two years old, so we will surrender $39,500 ($36,735 + $2,765 in surrender charges) from your contract value. Altogether, we will surrender $50,000 and pay you $47,235. We calculate purchase payments not previously surrendered as $100,000 - $45,000 = $55,000 (remember that $5,000 of the partial surrender is contract earnings). The death benefit on Feb. 1, 2005 equals: MAV death benefit amount (maximum anniversary value adjusted for partial surrenders): $110,000 - ($50,000 x $110,000) = $57,619 -------------------------------- $105,000 plus the EEB (40% of earnings at death): 0.40 x ($57,619 - $55,000) = +1,048 ------ Total death benefit of: $58,667 o On Jan. 1, 2006 the contract value falls by $40,000. The death benefit on Jan. 1, 2006 equals the death benefit on Feb. 1, 2005. The reduction in contract value has no effect. -------------------------------------------------------------------------------- 63 AMERICAN EXPRESS RETIREMENT ADVISOR ADVANTAGE PLUS / RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS o On Jan. 1, 2012 the contract value grows to a new high of $200,000. Earnings at death reaches its maximum of 250% of purchase payments not previously surrendered that are one or more years old. The death benefit on Jan. 1, 2012 equals: MAV death benefit amount (contract value): $200,000 plus the EEB (40% of earnings at death) 0.40 x 2.50 x ($55,000) = +55,000 ------ Total death benefit of: $255,000 o On July 1, 2012 you make an additional purchase payment of $50,000 and your contract value grows to $250,500. The new purchase payment is less than one year old and so it has no effect on the EEB. The death benefit on July 1, 2012 equals: MAV death benefit amount (contract value less purchase payment credits reversed ) $250,000 plus the EEB (40% of earnings at death) 0.40 x 2.50 x ($55,000) = +55,000 ------ Total death benefit of: $305,000 o On July 1, 2013 the contract value remains $250,500 and the "new" purchase payment is one year old. The value of the EEB changes. The death benefit on July 1, 2013 equals: MAV death benefit amount (contract value): $250,500 plus the EEB which equals 40% of earnings at death (the standard death benefit amount minus payments not previously surrendered): 0.40 x ($250,500 - $105,000) = +58,200 ------ Total death benefit of: $308,700 If your spouse is the sole beneficiary, your spouse may choose to continue the contract as the contract owner. If it is a qualified contract, your spouse may continue the contract until the date on which you would have reached age 70 1/2, or any other date permitted by the Code. If the spouse is age 76 or older at the time he or she elects to continue the contract, then the EEB rider will terminate. If your spouse is less than age 76 at the time he or she elects to continue the contract, he or she may choose to continue the EEB. In this case, the following conditions will apply: o the EEB rider will continue, but we will treat the new contract value on the date the ownership of the contract changes to your spouse (after the additional amount is paid into the contract) as if it is a purchase payment in calculating future values of "earnings at death." o the percentages of "earnings at death" payable will be based on your spouse's age at the time he or she elects to continue the contract. o the EEB rider charges described in "Charges - Enhanced Earnings Death Benefit Rider Fee" will be assessed at the next contract anniversary (and all future anniversaries when the rider is in force). These charges will be based on the total contract value on the anniversary, including the additional amounts paid into the contract under the EEB rider. NOTE: For special tax considerations associated with the EEB, see "Taxes." ENHANCED EARNINGS PLUS DEATH BENEFIT The EEP is intended to provide an additional benefit to your beneficiary to help offset expenses after your death such as funeral expenses or federal and state taxes. This is an optional benefit that you may select for an additional annual charge (see "Charges"). The EEP provides for reduced benefits if you are age 70 or older at the rider effective date. It does not provide any additional benefit before the first contract anniversary and it does not provide any benefit beyond what is offered under the EEB during the second contract year. The EEP also may result in reduced benefits if you take required minimum distributions from your qualified annuity or any partial surrenders during the life of your contract, both of which may reduce contract earnings. This is because part of the benefit paid by the EEP is determined by the amount of earnings at death. Be sure to discuss with your sales representative and your tax advisor whether or not the EEP is appropriate for your situation. If this EEP rider is available in your state and you are age 75 or younger at contract issue, you may choose to add the EEP to your contract. You must elect the EEP at the time you purchase your contract and your rider effective date will be the contract issue date. This rider is only available under annuities purchased through an exchange. You may not select this rider if you select the EEB. We reserve the right to discontinue offering the EEP for new contracts. When annuity payouts begin, or if you terminate the contract for any reason other than death, this rider will terminate. -------------------------------------------------------------------------------- 64 AMERICAN EXPRESS RETIREMENT ADVISOR ADVANTAGE PLUS / RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS The EEP provides that if you die after the first contract anniversary, but before annuity payouts begin, and while this contract is in force, we will pay the beneficiary: o EEP Part I benefits, which equal the benefits payable under the EEB described above; PLUS o EEP Part II benefits, which equal a percentage of exchange purchase payments identified at issue not previously surrendered as follows:
Percentage if you are Percentage if you are Contract year under age 70 on the rider effective date 70 or older on the rider effective date One and Two 0% 0% Three and Four 10% 3.75% Five or more 20% 7.5%
Additional death benefits payable under the EEP are not included in the adjusted partial surrender calculation. If after 6 months, no exchange purchase payments have been received, we will contact you and you will have an additional 30 days to follow-up on exchange purchase payments identified at issue but not received by us. If after these 30 days we have not received any exchange purchase payments, we will convert the EEP rider into an EEB. Another way to describe the benefits payable under the EEP rider is as follows: o the standard death benefit amount (see "Benefits in Case of Death - Standard Death Benefit"), the MAV death benefit amount, or 5-Year MAV death benefit amount, if applicable, PLUS
If you are under age 70 If you are age 70 Contract year on the rider effective date, add... or older on the rider effective date, add... 1 Zero Zero 2 40% X earnings at death (see above) 15% X earnings at death 3 & 4 40% X (earnings at death + 25% of 15% X (earnings at death + 25% of exchange purchase payment*) exchange purchase payment*) 5+ 40% X (earnings at death + 50% of 15% X (earnings at death + 50% of exchange purchase payment*) exchange purchase payment*)
* Exchange purchase payments are purchase payments exchanged from another contract that are identified at issue and not previously surrendered. The company is not responsible for identifying exchange purchase payments if we did not receive proper notification from the company from which the purchase payments are exchanged. Terminating the EEP o You may terminate the EEP rider within 30 days of the first contract anniversary after the rider effective date. o You may terminate the EEP rider within 30 days of any contract anniversary beginning with the seventh contract anniversary. o The EEP rider will terminate when you make a full surrender from the contract or when annuity payouts begin. o The EEP rider will terminate in the case of an ownership change. o The EEP rider will terminate in the case of the spousal continuation if the new owner is age 76 or older. Example of the EEP o You purchase the contract with an exchange purchase payment of $100,000 on Jan. 01, 2003 and you are under age 70. You select the seven-year surrender charge schedule, the MAV and the EEP. o On July 1, 2003 the contract value grows to $105,000. The death benefit on July 1, 2003 equals the standard death benefit amount, which is the contract value less purchase payment credits reversed, or $104,000. You have not reached the first contract anniversary so neither the EEP Part I nor Part II provides any additional benefit at this time. o On Jan. 1, 2004 the contract value grows to $110,000. You have not reached the second contract anniversary so the EEP-Part II does not provide any additional benefit at this time. The death benefit on Jan. 1, 2004 equals: MAV death benefit amount (contract value): $110,000 plus the EEP Part I which equals 40% of earnings at death (the MAV death benefit amount minus purchase payments not previously surrendered): 0.40 x ($110,000 - $100,000) = +4,000 ------ Total death benefit of: $114,000 -------------------------------------------------------------------------------- 65 AMERICAN EXPRESS RETIREMENT ADVISOR ADVANTAGE PLUS / RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS o On Jan. 1, 2005 the contract value falls to $105,000. The death benefit on Jan. 1, 2005 equals: MAV death benefit amount (maximum anniversary value): $110,000 plus the EEP Part I (40% of earnings at death): 0.40 x ($110,000 - $100,000) = +4,000 plus the EEP Part II which in the third contract year equals 10% of exchange purchase payments identified at issue and not previously surrendered: 0.10 x $100,000 = +10,000 --------- Total death benefit of: $124,000 o On Feb. 1, 2005 the contract value remains at $105,000 and you request a partial surrender, including the applicable 7% surrender charge, of $50,000. We will surrender $10,500 from your contract value free of charge (10% of your prior anniversary's contract value). The remainder of the surrender is subject to a 7% surrender charge because your purchase payment is two years old, so we will surrender $39,500 ($36,735 + $2,765 in surrender charges) from your contract value. Altogether, we will surrender $50,000 and pay you $47,235. We calculate purchase payments not previously surrendered as $100,000 - $45,000 = $55,000 (remember that $5,000 of the partial surrender is contract earnings). The death benefit on Feb. 1, 2005 equals: MAV death benefit amount (maximum anniversary value adjusted for partial surrenders): $110,000 - ($50,000 x $110,000) = $57,619 ------------------- ------- $105,000 plus the EEP Part I (40% of earnings at death): 0.40 x ($57,619 - $55,000) = +1,048 plus the EEP Part II which in the third contract year equals 10% of exchange purchase payments identified at issue and not previously surrendered: 0.10 x $55,000 = +5,500 --------- Total death benefit of: $64,167 o On Jan. 1, 2006 the contract value falls by $40,000. The death benefit on Jan. 1, 2006 equals the death benefit on Feb. 1, 2005. The reduction in contract value has no effect. o On Jan. 1, 2012 the contract value grows to a new high of $200,000. Earnings at death reaches its maximum of 250% of purchase payments not previously surrendered that are one or more years old. Because we are beyond the fourth contract anniversary the EEP also reaches its maximum of 20%. The death benefit on Jan. 1, 2012 equals: MAV death benefit amount (contract value): $200,000 plus the EEP Part I (40% of earnings at death) .40 x (2.50 x $55,000) = +55,000 plus the EEP Part II which after the fourth contract year equals 20% of exchange purchase payments identified at issue and not previously surrendered: 0.20 x $55,000 = +11,000 --------- Total death benefit of: $266,000 o On July 1, 2012 you make an additional purchase payment of $50,000 and your contract value grows to $250,500. The new purchase payment is less than one year old and so it has no effect on either the EEP Part I or EEP Part II. The death benefit on July 1, 2012 equals: MAV death benefit amount (contract value less purchase payment credits reversed): $250,000 plus the EEP Part I (40% of earnings at death) .40 x (2.50 x $55,000)= +55,000 plus the EEP Part II, which after the fourth contract year equals 20% of exchange purchase payments identified at issue and not previously surrendered: 0.20 x $55,000 = +11,000 --------- Total death benefit of: $316,000 -------------------------------------------------------------------------------- 66 AMERICAN EXPRESS RETIREMENT ADVISOR ADVANTAGE PLUS / RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS o On July 1, 2013 the contract value remains $250,500 and the "new" purchase payment is one year old. The value of the EEP Part I changes but the value of the EEP Part II remains constant. The death benefit on July 1, 2013 equals: MAV death benefit amount (contract value): $250,500 plus the EEP Part I which equals 40% of earnings at death (the MAV death benefit minus payments not previously surrendered): 0.40 x ($250,500 - $105,000) = +58,200 plus the EEP Part II, which after the fourth contract year equals 20% of exchange purchase payments identified at issue and not previously surrendered: 0.20 x $55,000 = +11,000 --------- Total death benefit of: $319,700 If your spouse is the sole beneficiary, your spouse may choose to continue the contract as the contract owner. If it is a qualified contract, your spouse may continue the contract until the date on which you would have reached age 70 1/2, or any other date permitted by the Code. If your spouse has reached age 76 at the time he or she elects to continue the contract, the EEP rider will terminate. If your spouse has not yet reached age 76 at the time he or she elects to continue the contract, he or she cannot continue the EEP. However, he or she may choose to convert the EEP rider into an EEB. In this case, the following conditions will apply: o the EEB rider will treat the new contract value on the date the ownership of the contract changes to your spouse (after the additional amount is paid into the contract) as if it is a purchase payment in calculating future values of "earnings at death." o the percentages of "earnings at death" payable will be based on your spouse's age at the time he or she elects to continue the contract. o the EEB rider charges described in "Charges -- Enhanced Earnings Death Benefit Rider Fee" will be assessed at the next contract anniversary (and all future anniversaries when the EEB rider is in force). These charges will be based on the total contract value on the anniversary, including the additional amounts paid into the contract under the EEP rider. If your spouse chooses not to convert the EEP rider into an EEB, the standard death benefit amount (or the MAV or 5-Year MAV death benefit amount, if applicable,) will apply. NOTE: For special tax considerations associated with the EEP, see "Taxes." The Annuity Payout Period As owner of the contract, you have the right to decide how and to whom annuity payouts will be made starting at the settlement date. You may select one of the annuity payout plans outlined below, or we may mutually agree on other payout arrangements. We do not deduct any surrender charges under the payout plans listed below. You also decide whether we will make annuity payouts on a fixed or variable basis, or a combination of fixed and variable. The amount available to purchase payouts under the plan you select is the contract value on your settlement date (less any applicable premium tax). You may reallocate this contract value to the fixed account to provide fixed dollar payouts and/or among the subaccounts to provide variable annuity payouts. During the annuity payout period, you cannot invest in more than five subaccounts at any one time unless we agree otherwise. Amounts of fixed and variable payouts depend on: o the annuity payout plan you select; o your age and, in most cases, sex; o the annuity table in the contract; and o the amounts you allocated to the accounts at settlement. In addition, for variable payouts only, amounts depend on the investment performance of the subaccounts you select. These payouts will vary from month to month because the performance of the funds will fluctuate. (Fixed payouts remain the same from month to month.) For information with respect to transfers between accounts after annuity payouts begin, see "Making the Most of Your Contract -- Transfer policies." ANNUITY TABLES The annuity tables in your contract show the amount of the monthly payout for each $1,000 of contract value according to your age and, when applicable, your sex. (Where required by law, we will use a unisex table of settlement rates.) Table B shows the minimum amount of each fixed payout. Amounts in Table B are based on the guaranteed annual effective interest rate shown in your contract. We declare current payout rates that we use in determining the actual amount of your fixed payout. The current payout rates will equal or exceed the guaranteed payout rates shown in Table B. We will furnish these rates to you upon request. -------------------------------------------------------------------------------- 67 AMERICAN EXPRESS RETIREMENT ADVISOR ADVANTAGE PLUS / RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS Table A shows the amount of the first variable payout assuming that the contract value is invested at the beginning of the annuity payout period and earns a 5% rate of return, which is reinvested and helps to support future payouts. If you ask us at least 30 days before the settlement date, we will substitute an annuity table based on an assumed 3.5% investment rate for the 5% Table A in the contract. The assumed investment rate affects both the amount of the first payout and the extent to which subsequent payouts increase or decrease. For example, annuity payouts will increase if the investment return is above the assumed investment rate and payouts will decrease if the return is below the assumed investment rate. Using the 5% Table A results in a higher initial payment, but later payouts will increase more slowly when annuity unit values rise and decrease more rapidly when they decline. ANNUITY PAYOUT PLANS You may choose any one of these annuity payout plans by giving us written instructions at least 30 days before contract values are used to purchase the payout plan: o Plan A: Life annuity -- no refund: We make monthly payouts until your death. Payouts end with the last payout before your death. We will not make any further payouts. This means that if you die after we made only one monthly payout, we will not make any more payouts. o Plan B: Life annuity with five, ten or 15 years certain: We make monthly payouts for a guaranteed payout period of five, ten or 15 years that you elect. This election will determine the length of the payout period to the beneficiary if you should die before the elected period expires. We calculate the guaranteed payout period from the settlement date. If you outlive the elected guaranteed payout period, we will continue to make payouts until your death. o Plan C: Life annuity -- installment refund: We make monthly payouts until your death, with our guarantee that payouts will continue for some period of time. We will make payouts for at least the number of months determined by dividing the amount applied under this option by the first monthly payout, whether you living or not. o Plan D: Joint and last survivor life annuity -- no refund: We make monthly payouts while both the owner and a joint owner are living. If either owner dies, we will continue to make monthly payouts at the full amount until the death of the surviving owner. Payouts end with the death of the second owner. o Plan E: Payouts for a specified period: We make monthly payouts for a specific payout period of ten to 30 years that you elect. We will make payouts only for the number of years specified whether you are living or not. Depending on the selected time period, it is foreseeable that you can outlive the payout period selected. During the payout period, you can elect to have us determine the present value of any remaining variable payouts and pay it to you in a lump sum. We determine the present value of the remaining annuity payouts which are assumed to remain level at the initial payout. The discount rate we use in the calculation will vary between 5.17% and 6.67%, depending on the applicable assumed investment rate (See "Charges -- Surrender charge under Annuity Payout Plan E.") You can also take a portion of the discounted value once a year. If you do so, your monthly payouts will be reduced by the proportion of your surrender to the full discounted value. A 10% IRS penalty tax could apply if you take a surrender. (See "Taxes.") Annuity payout plan requirements for qualified annuities: If you elect an annuity payout plan from your qualified annuity, it must comply with certain IRS regulations governing required minimum distributions. In general, your annuity payout plan will meet these regulations if payouts are made: o in equal or substantially equal payments over a period not longer than the life of the owner or over the life of the owner and designated beneficiary; or o in equal or substantially equal payments over a period not longer than the life expectancy of the owner or over the life expectancy of the owner and designated beneficiary; or o over a period certain not longer than the life expectancy of the owner or over the life expectancy of the owner and designated beneficiary. Withholding, generally: If you receive all or part of the contract value, we may deduct withholding against the taxable income portion of the payment. Any withholding represents a prepayment of your tax due for the year. You take credit for these amounts on your annual income tax return. If the payment is part of an annuity payout plan, we generally compute the amount of withholding using payroll tables. You may provide us with a statement of how many exemptions to use in calculating the withholding. As long as you've provided us with a valid Social Security Number or Taxpayer Identification Number, you can elect not to have any withholding occur. If the distribution is any other type of payment (such as a partial or full surrender), we compute withholding using 10% of the taxable portion. Similar to above, as long as you have provided us with a valid Social Security Number or Taxpayer Identification Number, you can elect not to have this withholding occur. The withholding requirements may differ if we are making payment to a non-U.S. citizen or if we deliver the payment outside the United States. Some states also impose withholding requirements similar to the federal withholding described above. If this should be the case, we may deduct state withholding from any payment from which we deduct federal withholding. -------------------------------------------------------------------------------- 68 AMERICAN EXPRESS RETIREMENT ADVISOR ADVANTAGE PLUS / RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS Withholding from qualified annuities: If you receive directly all or part of the contract value from a qualified annuity (except an IRA, Roth IRA, or SEP), mandatory 20% federal income tax withholding (and possibly state income tax withholding) generally will be imposed at the time the payout is made from the plan. This mandatory withholding is in place of the elective withholding discussed above. This mandatory withholding will not be imposed if: o instead of receiving the distribution check, you elect to have the distribution rolled over directly to an IRA or another eligible plan; o the payout is one in a series of substantially equal periodic payouts, made at least annually, over your life or life expectancy (or the joint lives or life expectancies of you and your designated beneficiary) or over a specified period of 10 years or more; or o the payout is a minimum distribution required under the Code; o the payout is made on account of an eligible hardship; or o the payout is a corrective distribution. Payments we make to a surviving spouse instead of being directly rolled over to an IRA also may be subject to mandatory 20% income tax withholding. State withholding also may be imposed on taxable distributions. If we do not receive instructions: You must give us written instructions for the annuity payouts at least 30 days before your settlement date. If you do not, we will make payouts under Plan B, with 120 monthly payouts guaranteed. Contract values that you allocated to the fixed account will provide fixed dollar payouts and contract values that you allocated among the subaccounts will provide variable annuity payouts. If monthly payouts would be less than $20: We will calculate the amount of monthly payouts at the time the contract value is used to purchase a payout plan. If the calculations show that monthly payouts would be less than $20, we have the right to pay the contract value to the owner in a lump sum or to change the frequency of the payouts. Death after annuity payouts begin: If you die after annuity payouts begin, we will pay any amount payable to the beneficiary as provided in the annuity payout plan in effect. Taxes Generally, under current law, your contract has a tax-deferral feature. This means any increase in the value of the GPAs, the one-year fixed account and/or subaccounts in which you invest is taxable to you only when you receive a payout or withdrawal (see detailed discussion below). Any portion of the annuity payouts and any withdrawals you request that represent ordinary income normally are taxable. We will send you a tax information reporting form for any year in which we made a taxable distribution according to our records. Roth IRAs may grow and be distributed tax free if you meet certain distribution requirements. NONQUALIFIED ANNUITIES Tax law requires that all nonqualified deferred annuity contracts issued by the same company (and possibly its affiliates) to the same owner during a calendar year be taxed as a single, unified contract when you take distributions from any one of those contracts. Annuity payouts: A portion of each payout will be ordinary income and subject to tax, and a portion of each payout will be considered a return of part of your investment and will not be taxed. Under Annuity Payout Plan A: Life annuity - no refund, where the annuitant dies before your investment in the contract is fully recovered, the remaining portion of the unrecovered investment may be available as a federal income tax deduction to the owner for the last taxable year of the annuitant. Under all other annuity payout plans, where the annuity payouts end before your investment in the contract is fully recovered, the remaining portion of the unrecovered investment may be available as a federal income tax deduction to the taxpayer for the tax year in which the payouts end. (See "Annuity Payout Plans.") All amounts you receive after your investment in the contract is fully recovered will be subject to tax. Surrenders: If you surrender part or all of your nonqualified contract before your annuity payouts begin, your surrender payment will be taxed to the extent that the value of your contract immediately before the surrender exceeds your investment. You also may have to pay a 10% IRS penalty for surrenders of taxable income you make before reaching age 59 1/2 unless certain exceptions apply. Death benefits to beneficiaries: The death benefit under a contract is not tax exempt. Any amount your beneficiary receives that represents previously deferred earnings within the contract is taxable as ordinary income to the beneficiary in the year he or she receives the payments. Payments made upon the death of the annuitant may be subject to the 10% penalty. Annuities owned by corporations, partnerships or trusts: For nonqualified annuities, any annual increase in the value of annuities held by such entities generally will be treated as ordinary income received during that year. This provision is effective for purchase payments made after Feb. 28, 1986. However, if the trust was set up for the benefit of a natural person only, the income will remain tax-deferred. -------------------------------------------------------------------------------- 69 AMERICAN EXPRESS RETIREMENT ADVISOR ADVANTAGE PLUS / RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS Penalties: If you receive amounts from your nonqualified annuity before reaching age 59 1/2, you may have to pay a 10% IRS penalty on the amount includable in your ordinary income. However, this penalty will not apply to any amount received: o because of your death; o because you become disabled (as defined in the Code); o if the distribution is part of a series of substantially equal periodic payments, made at least annually, over your life or life expectancy (or joint lives or life expectancies of you and your beneficiary); or o if it is allocable to an investment before Aug. 14, 1982. Transfer of ownership: If you transfer a nonqualified annuity without receiving adequate consideration, the transfer is a gift and also may be treated as a surrender for federal income tax purposes. If the gift is a currently taxable event for income tax purposes, the original owner will be taxed on the amount of deferred earnings at the time of the transfer and also may be subject to the 10% IRS penalty discussed earlier. In this case, the new owner's investment in the contract will be the value of the contract at the time of the transfer. In general, this rule does not apply to transfers between spouses. Please consult your tax advisor for further details. Collateral assignment: If you collaterally assign or pledge your contract, earnings on purchase payments you made after Aug. 13, 1982 will be taxed to you like a withdrawal and you may have to pay a 10% IRS penalty. You may not collaterally assign or pledge your qualified contracts. QUALIFIED ANNUITIES Adverse tax consequences may result if you do not ensure that contributions, distributions and other transactions under the contract comply with the law. Qualified (under Sections 401, 403 or 408 of the Code) annuities have minimum distribution rules that govern the timing and amount of distributions. You should refer to your retirement plan's Summary Plan Description, your IRA disclosure statement, or consult a tax advisor for additional information about the distribution rules applicable to your situation. When you use your contract to fund a retirement plan or IRA that is already tax-deferred under the Code, the contract will not provide any necessary or additional tax deferral. Annuity payouts: Under a qualified annuity, the entire payout generally is includable as ordinary income and is subject to tax unless: (1) the contract is an IRA to which you made non-deductible contributions; or (2) you rolled after-tax dollars from a retirement plan into your IRA, or (3) the contract is used to fund a retirement plan and you or your employer have contributed after-tax dollars. Annuity payouts from Roth IRAs: In general, the entire payout from a Roth IRA can be free from income and penalty taxes if you have attained age 59 1/2 and met the five year holding period. Surrenders: Under a qualified annuity, the entire surrender will generally be includable as ordinary income and is subject to tax unless: (1) the contract is an IRA to which you made non-deductible contributions; or (2) you rolled after-tax dollars from a retirement plan into your IRA, or (3) the contract is used to fund a retirement plan and you or your employer have contributed after-tax dollars. Surrenders from Roth IRAs: In general, the entire payout from a Roth IRA can be free from income and penalty taxes if you have attained age 59 1/2 and met the five year holding period. Penalties: If you receive amounts from your qualified annuity before reaching age 59 1/2, you may have to pay a 10% penalty on the amount includable in your ordinary income. However, this penalty will not apply to any amount received: o Because of your death, o Because you become disabled (as defined in the Code); o If the distribution is part of a series of substantially equal periodic payments made at least annually, over your life or life expectancy (or joint lives or life expectancies of you and your beneficiary); or o To pay certain medical or education expenses (IRAs only). Death benefits to beneficiaries: Upon your death, any death benefits available under the contract will be taxable as ordinary income to your beneficiary in the year he/she receives the payments. Purchase payment credits: These are considered earnings and are taxed accordingly when surrendered or paid out. Special considerations if you select one of the death benefit riders (ROPP, MAV, 5-Year MAV, EEB or EEP): As of the date of this prospectus, we believe that charges related to these riders are not subject to current taxation. Therefore, we will not report these charges as partial surrenders from your contract. However, the IRS may determine that these charges should be treated as partial surrenders subject to taxation to the extent of any gain as well as the 10% IRS tax penalty for surrenders before the age of 59 1/2, if applicable. We reserve the right to report charges for these riders as partial withdrawals if we, as a withholding and reporting agent, believe that we are required to report them. In addition, we will report the benefits attributable to these riders on the death of you or the annuitant as an annuity death benefit distribution, not as proceeds from life insurance. -------------------------------------------------------------------------------- 70 AMERICAN EXPRESS RETIREMENT ADVISOR ADVANTAGE PLUS / RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS Important: Our discussion of federal tax laws is based upon our understanding of current interpretations of these laws. Federal tax laws or current interpretations of them may change. For this reason and because tax consequences are complex and highly individual and cannot always be anticipated, you should consult a tax advisor if you have any questions about taxation of your contract. IDS Life's tax status: IDS Life is taxed as a life insurance company under the Code. For federal income tax purposes, the subaccounts are considered a part of IDS Life, although their operations are treated separately in accounting and financial statements. Investment income from the subaccounts is reinvested and becomes part of the subaccounts' value. This investment income, including realized capital gains, is not taxed to IDS Life, and therefore no charge is made against the subaccounts for federal income taxes. IDS Life reserves the right to make such a charge in the future if there is a change in the tax treatment of variable annuities. Tax qualification: We intend that the contract qualify as an annuity for federal income tax purposes. To that end, the provisions of the contract are to be interpreted to ensure or maintain such tax qualification, in spite of any other provisions of the contract. We reserve the right to amend the contract to reflect any clarifications that may be needed or are appropriate to maintain such qualification or to conform the contract to any applicable changes in the tax qualification requirements. We will send you a copy of any amendments. Voting Rights As a contract owner with investments in the subaccounts, you may vote on important fund policies until annuity payouts begin. Once they begin, the person receiving them has voting rights. We will vote fund shares according to the instructions of the person with voting rights. Before annuity payouts begin, the number of votes you have is determined by applying your percentage interest in each subaccount to the total number of votes allowed to the subaccount. After annuity payouts begin, the number of votes you have is equal to: o the reserve held in each subaccount for your contract; divided by o the net asset value of one share of the applicable fund. As we make annuity payouts, the reserve for the contract decreases; therefore, the number of votes also will decrease. We calculate votes separately for each subaccount. We will send notice of shareholders' meetings, proxy materials and a statement of the number of votes to which the voter is entitled. We will vote shares for which we have not received instructions in the same proportion as the votes for which we received instructions. We also will vote the shares for which we have voting rights in the same proportion as the votes for which we received instructions. Substitution of Investments We may substitute the funds in which the subaccounts invest if: o laws or regulations change; o the existing funds become unavailable; or o in our judgment, the funds no longer are suitable for the subaccounts. If any of these situations occur, and if we believe it is in the best interest of persons having voting rights under the contract, we have the right to substitute the funds currently listed in this prospectus for other funds. We may also: o add new subaccounts; o combine any two or more subaccounts; o make additional subaccounts investing in additional funds; o transfer assets to and from the subaccounts or the variable account; and o eliminate or close any subaccounts. In the event of substitution or any of these changes, we may amend the contract and take whatever action is necessary and appropriate without your consent or approval. However, we will not make any substitution or change without the necessary approval of the SEC and state insurance departments. We will notify you of any substitution or change. -------------------------------------------------------------------------------- 71 AMERICAN EXPRESS RETIREMENT ADVISOR ADVANTAGE PLUS / RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS About the Service Providers ISSUER AND PRINCIPAL UNDERWRITER IDS Life issues and is the principal underwriter for the contracts. IDS Life is a stock life insurance company organized in 1957 under the laws of the State of Minnesota and is located at 70100 AXP Financial Center, Minneapolis, MN 55474. IDS Life conducts a conventional life insurance business. IDS Life is a wholly-owned subsidiary of AEFC, which itself is a wholly-owned subsidiary of American Express Company, a financial services company headquartered in New York City. The AEFC family of companies offers not only insurance and annuities, but also mutual funds, investment certificates, and a broad range of financial management services. American Express Financial Advisors Inc. (AEFA) serves individuals and businesses through its nationwide network of more than 3,700 registered branch offices and more than 10,400 financial advisors. IDS Life pays commissions for sales of the contracts of up to 7% of the total purchase payments received. This revenue is used to cover distribution costs that include compensation to advisors and field leadership for the selling advisors. These commissions consist of a combination of time of sale and on-going service/trail commissions (which, when totaled, could exceed 7% of purchase payments). From time to time, IDS Life will pay or permit other promotional incentives, in cash or credit or other compensation. LEGAL PROCEEDINGS We are a party to litigation and arbitration proceedings in the ordinary course of our business, none of which is expected to have a material adverse effect on us. In November 2002, a suit, captioned Haritos et. al. v. American Express Financial Corporation and IDS Life Insurance Company, was filed in the United States District Court for the District of Arizona. The suit is filed by the plaintiffs who purport to represent a class of all persons that have purchased financial plans from AEFA advisors during an undefined class period. Plaintiffs allege that the sale of the plans violate the Investment Advisers Act of 1940. The suit seeks an unspecified amount of damages, rescission and injunctive relief. We believe that we have meritorious defenses to this suit and intend to defend this case vigorously. The outcome of any litigation or threatened litigation cannot be predicted with any certainty. However, in the aggregate, we do not consider any lawsuits in which we are named as a defendant to have a material impact on our financial position or operating results. Table of Contents of the Statement of Additional Information Calculating Annuity Payouts p. 3 Rating Agencies p. 4 Principal Underwriter p. 4 Independent Auditors p. 4 Financial Statements p. 5 -------------------------------------------------------------------------------- 72 AMERICAN EXPRESS RETIREMENT ADVISOR ADVANTAGE PLUS / RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS -------------------------------------------------------------------------------- (logo) AMERICAN EXPRESS (R) -------------------------------------------------------------------------------- IDS Life Insurance Company 70100 AXP Financial Center Minneapolis, MN 55474 (800) 862-7919 S-6273 A (12/03) STATEMENT OF ADDITIONAL INFORMATION FOR AMERICAN EXPRESS RETIREMENT ADVISOR ADVANTAGE PLUS(SM) VARIABLE ANNUITY AMERICAN EXPRESS RETIREMENT ADVISOR SELECT PLUS(SM) VARIABLE ANNUITY IDS LIFE VARIABLE ACCOUNT 10 JAN. __, 2004 IDS Life Variable Account 10 is a separate account established and maintained by IDS Life Insurance Company (IDS Life). This Statement of Additional Information (SAI) is not a prospectus. It should be read together with the prospectus dated the same date as this SAI, which may be obtained by writing or calling us at the address and telephone number below. IDS Life Insurance Company 70100 AXP Financial Center Minneapolis, MN 55474 (800) 862-7919 Table of Contents Calculating Annuity Payouts p. 3 Rating Agencies p. 4 Principal Underwriter p. 4 Independent Auditors p. 4 Financial Statements p. 5 -------------------------------------------------------------------------------- 2 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS Calculating Annuity Payouts THE VARIABLE ACCOUNT We do the following calculations separately for each of the subaccounts of the variable account. The separate monthly payouts, added together, make up your total variable annuity payout. Initial Payout: To compute your first monthly payment, we: o determine the dollar value of your contract on the valuation date and then deduct any applicable premium tax; then o apply the result to the annuity table contained in the contract or another table at least as favorable. The annuity table shows the amount of the first monthly payment for each $1,000 of value which depends on factors built into the table, as described below. Annuity Units: We then convert the value of your subaccount to annuity units. To compute the number of units credited to you, we divide the first monthly payment by the annuity unit value (see below) on the valuation date. The number of units in your subaccount is fixed. The value of the units fluctuates with the performance of the underlying fund. Subsequent Payouts: To compute later payouts, we multiply: o the annuity unit value on the valuation date; by o the fixed number of annuity units credited to you. Annuity Unit Values: We originally set this value at $1 for each subaccount. To calculate later values we multiply the last annuity value by the product of: o the net investment factor; and o the neutralizing factor. The purpose of the neutralizing factor is to offset the effect of the assumed rate built into the annuity table. With an assumed investment rate of 5%, the neutralizing factor is 0.999866 for a one day valuation period. Net Investment Factor: We determine the net investment factor by: o adding the fund's current net asset value per share plus the per share amount of any accrued income or capital gain dividends to obtain a current adjusted net asset value per share; then o dividing that sum by the previous adjusted net asset value per share; and o subtracting the percentage factor representing the mortality and expense risk fee from the result. Because the net asset value of the fund may fluctuate, the net investment factor may be greater or less than one, and the annuity unit value may increase or decrease. You bear this investment risk in a subaccount. THE FIXED ACCOUNT We guarantee your fixed annuity payout amounts. Once calculated, your payout will remain the same and never change. To calculate your annuity payouts we: o take the value of your fixed account at the settlement date or the date you selected to begin receiving your annuity payouts; then o using an annuity table, we apply the value according to the annuity payout plan you select. The annuity payout table we use will be the one in effect at the time you choose to begin your annuity payouts. The values in the table will be equal to or greater than the table in your contract. -------------------------------------------------------------------------------- 3 -- IDS LIFE VARIABLE ACCOUINT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS Rating Agencies We receive ratings from independent rating agencies. These agencies evaluate the financial soundness and claims-paying ability of insurance companies on a number of different factors. The ratings reflect each agency's estimation of our ability to meet our contractual obligations such as making annuity payouts and paying death benefits and other distributions. As such, the ratings relate to our fixed account and not to the subaccounts. This information generally does not relate to the management or performance of the subaccounts. For detailed information on the agency ratings given to IDS Life, refer to the American Express Web site at americanexpress.com/advisors or contact your sales representative. Or view our current ratings by visiting the agency Web sites directly at: A.M. Best www.ambest.com Fitch (formerly Duff and Phelps) www.fitchratings.com Moody's www.moodys.com/insurance A.M. Best -- Rates insurance companies for their financial strength. Fitch -- Rates insurance companies for their claims-paying ability. Moody's -- Rates insurance companies for their financial strength. Principal Underwriter IDS Life serves as principal underwriter for the contract, which it offers on a continuous basis. IDS Life is registered with the Securities and Exchange Commission under the Securities Exchange Act of 1934 as a broker-dealer and is a member of the National Association of Securities Dealers, Inc. (NASD). Our sales representatives are licensed insurance and annuity agents and are registered with the NASD as our representatives. IDS Life is ultimately controlled by American Express Company. IDS Life currently pays underwriting commissions for its role as principal underwriter. For the past three years, the aggregate dollar amount of underwriting commissions paid in its role as principal underwriter has been: 2002: $37,418,102; 2001: $41,792,624; and 2000: $56,851,815. IDS Life retains no underwriting commission from the sale of the contract. Independent Auditors The financial statements appearing in this SAI have been audited by Ernst &Young LLP (220 South Sixth Street, Suite 1400, Minneapolis, MN 55402) independent auditors, as stated in their report appearing herein. -------------------------------------------------------------------------------- 4 -- IDS LIFE VARIABLE ACCOUINT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS REPORT OF INDEPENDENT AUDITORS THE BOARD OF DIRECTORS IDS LIFE INSURANCE COMPANY We have audited the accompanying individual Statements of Assets and Liabilities of the segregated Asset Subaccounts of IDS Life Variable Account 10 - American Express Retirement Advisor Advantage Plus(SM) Variable Annuity /American Express Retirement Advisor Select Plus(SM) Variable Annuity (comprised of subaccounts CR3, CR2, CR1, CR5, CR4, CM3, CM2, CM1, CM5, CM4, BD3, BD2, BD1, BD5, BD4, DE3, DE2, DE1, DE5, DE4, EM3, EM2, EM1, EM5, EM4, ES3, ES2, ES1, ES5, ES4, GB3, GB2, GB1, GB5, GB4, GR3, GR2, GR1, GR5, GR4, EI3, EI2, EI1, EI5, EI4, IE3, IE2, IE1, IE5, IE4, MF3, MF2, MF1, MF5, MF4, ND3, ND2, ND1, ND5, ND4, SV3, SV2, SV1, SV5, SV4, IV3, IV2, IV1, IV5, IV4, FI3, FI2, FI1, FI5, FI4, SC3, SC2, SC1, SC5, SC4, SA3, SA2, SA1, SA5, SA4, 3AC, 2AC, 1AC, 5AC, 4AC, 3AD, 2AD, 1AD, 5AD, 4AD, 3AL, 2AL, 1AL, 5AL, 4AL, 3AB, 2AB, 1AB, 5AB, 4AB, 3AI, 2AI, 1AI, 5AI, 4AI, 3AV, 2AV, 1AV, 5AV, 4AV, 3SR, 2SR, 1SR, 5SR, 4SR, 3FG, 2FG, 1FG, 5FG, 4FG, 3FM, 2FM, 1FM, 5FM, 4FM, 3FO, 2FO, 1FO, 5FO, 4FO, 3RE, 2RE, 1RE, 5RE, 4RE, 3SI, 2SI, 1SI, 5SI, 4SI, 3MS, 2MS, 1MS, 5MS, 4MS, 3UE, 2UE, 1UE, 5UE, 4UE, 3MC, 2MC, 1MC, 5MC, 4MC, 3FS, 2FS, 1FS, 5FS, 4FS, 3TC, 2TC, 1TC, 5TC, 4TC, 3MG, 2MG, 1MG, 5MG, 4MG, 3MD, 2MD, 1MD, 5MD, 4MD, 3UT, 2UT, 1UT, 5UT, 4UT, 3HS, 2HS, 1HS, 5HS, 4HS, 3PI, 2PI, 1PI, 5PI, 4PI, 3VS, 2VS, 1VS, 5VS, 4VS, 3SO, 2SO, 1SO, 5SO, 4SO, 3IT, 2IT, 1IT, 5IT, 4IT, 3SP, 2SP, 1SP, 5SP, 4SP, 3IP, 2IP, 1IP, 5IP and 4IP) as of December 31, 2002, and the related statements of operations and changes in net assets for the periods indicated therein. These financial statements are the responsibility of the management of IDS Life Insurance Company. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned at December 31, 2002 with the affiliated and unaffiliated mutual fund managers. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the individual financial position of the segregated asset subaccounts of IDS Life Variable Account 10 - American Express Retirement Advisor Advantage Plus(SM) Variable Annuity /American Express Retirement Advisor Select Plus(SM) Variable Annuity at December 31, 2002, and the individual results of their operations and the changes in their net assets for the periods indicated therein, in conformity with accounting principles generally accepted in the United States. Ernst & Young LLP Minneapolis, Minnesota March 21, 2003 -------------------------------------------------------------------------------- 5 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Assets and Liabilities Segregated Asset Subaccounts December 31, 2002 CR3 CR2 CR1 CR5 CR4 Assets Investments in shares of mutual funds and portfolios: at cost $122,124 $46,348,886 $33,199,904 $232,444 $82,279 -------- ----------- ----------- -------- ------- at market value $119,810 $30,864,931 $20,453,731 $217,579 $77,529 Dividends receivable -- -- -- -- -- Accounts receivable from IDS Life for contract purchase payments -- -- 74,513 -- -- Receivable from mutual funds and portfolios for share redemptions -- -- -- -- -- -------- ----------- ----------- -------- ------- Total assets 119,810 30,864,931 20,528,244 217,579 77,529 ======= ========== ========== ======= ====== Liabilities Payable to IDS Life for: Mortality and expense risk fee 58 20,126 16,666 191 77 Contract terminations -- 11,464 -- -- -- Payable to mutual funds and portfolios for investments purchased -- -- -- -- -- -------- ----------- ----------- -------- ------- Total liabilities 58 31,590 16,666 191 77 -------- ----------- ----------- -------- ------- Net assets applicable to contracts in accumulation period 119,752 30,647,685 20,417,812 217,388 77,452 Net assets applicable to contracts in payment period -- 185,656 93,766 -- -- Net assets applicable to seed money -- -- -- -- -- -------- ----------- ----------- -------- ------- Total net assets $119,752 $30,833,341 $20,511,578 $217,388 $77,452 ======== =========== =========== ======== ======= Accumulation units outstanding 202,292 52,123,863 34,956,260 291,408 95,879 ======= ========== ========== ======= ====== Net asset value per accumulation unit $ 0.59 $ 0.59 $ 0.58 $ 0.75 $ 0.81 ======== =========== =========== ======== =======
Segregated Asset Subaccounts December 31, 2002 (continued) CM3 CM2 CM1 CM5 CM4 Assets Investments in shares of mutual funds and portfolios: at cost $3,241,265 $280,636,092 $250,201,802 $12,331,021 $12,161,192 ---------- ------------ ------------ ----------- ----------- at market value $3,241,265 $280,620,683 $250,182,254 $12,331,021 $12,161,192 Dividends receivable 4,206 213,338 190,655 8,962 8,569 Accounts receivable from IDS Life for contract purchase payments 1,081,894 -- -- 129,062 -- Receivable from mutual funds and portfolios for share redemptions -- -- -- -- -- ---------- ------------ ------------ ----------- ----------- Total assets 4,327,365 280,834,021 250,372,909 12,469,045 12,169,761 ========= =========== =========== ========== ========== Liabilities Payable to IDS Life for: Mortality and expense risk fee 2,625 184,194 208,470 10,299 11,853 Contract terminations -- 30,430 884,039 -- 24,867 Payable to mutual funds and portfolios for investments purchased -- -- -- -- -- ---------- ------------ ------------ ----------- ----------- Total liabilities 2,625 214,624 1,092,509 10,299 36,720 ---------- ------------ ------------ ----------- ----------- Net assets applicable to contracts in accumulation period 4,324,740 280,380,189 249,079,091 12,458,746 12,133,041 Net assets applicable to contracts in payment period -- 239,208 201,309 -- -- Net assets applicable to seed money -- -- -- -- -- ---------- ------------ ------------ ----------- ----------- Total net assets $4,324,740 $280,619,397 $249,280,400 $12,458,746 $12,133,041 ========== ============ ============ =========== =========== Accumulation units outstanding 3,911,088 255,250,520 228,237,367 12,452,405 12,148,193 ========= =========== =========== ========== ========== Net asset value per accumulation unit $ 1.11 $ 1.10 $ 1.09 $ 1.00 $ 1.00 ========== ============ ============ =========== ===========
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 6 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Assets and Liabilities Segregated Asset Subaccounts December 31, 2002 (continued) BD3 BD2 BD1 BD5 BD4 Assets Investments in shares of mutual funds and portfolios: at cost $885,758 $182,366,315 $186,809,428 $6,598,180 $6,076,146 -------- ------------ ------------ ---------- ---------- at market value $900,431 $183,885,714 $188,204,547 $6,700,438 $6,165,877 Dividends receivable 3,667 778,597 797,556 28,024 25,479 Accounts receivable from IDS Life for contract purchase payments 7,468 43,156 106,913 7,783 4,725 Receivable from mutual funds and portfolios for share redemptions -- -- -- -- -- -------- ------------ ------------ ---------- ---------- Total assets 911,566 184,707,467 189,109,016 6,736,245 6,196,081 ======= =========== =========== ========= ========= Liabilities Payable to IDS Life for: Mortality and expense risk fee 417 119,989 155,699 5,757 6,290 Contract terminations -- -- -- -- -- Payable to mutual funds and portfolios for investments purchased -- -- -- -- -- -------- ------------ ------------ ---------- ---------- Total liabilities 417 119,989 155,699 5,757 6,290 -------- ------------ ------------ ---------- ---------- Net assets applicable to contracts in accumulation period 911,149 183,649,627 188,198,925 6,730,488 6,189,791 Net assets applicable to contracts in payment period -- 937,851 754,392 -- -- Net assets applicable to seed money -- -- -- -- -- -------- ------------ ------------ ---------- ---------- Total net assets $911,149 $184,587,478 $188,953,317 $6,730,488 $6,189,791 ======== ============ ============ ========== ========== Accumulation units outstanding 761,704 154,529,994 159,405,103 6,480,849 5,970,662 ======= =========== =========== ========= ========= Net asset value per accumulation unit $ 1.20 $ 1.19 $ 1.18 $ 1.04 $ 1.04 ======== ============ ============ ========== ==========
Segregated Asset Subaccounts December 31, 2002 (continued) DE3 DE2 DE1 DE5 DE4 Assets Investments in shares of mutual funds and portfolios: at cost $1,040,408 $85,854,933 $67,334,003 $2,848,038 $1,963,495 ---------- ----------- ----------- ---------- ---------- at market value $1,040,055 $71,669,272 $55,770,767 $2,580,130 $1,703,074 Dividends receivable -- -- -- -- -- Accounts receivable from IDS Life for contract purchase payments -- -- 728 6,897 81 Receivable from mutual funds and portfolios for share redemptions -- -- -- -- -- ---------- ----------- ----------- ---------- ---------- Total assets 1,040,055 71,669,272 55,771,495 2,587,027 1,703,155 ========= ========== ========== ========= ========= Liabilities Payable to IDS Life for: Mortality and expense risk fee 251 46,701 45,978 2,201 1,728 Contract terminations -- 13,682 -- -- -- Payable to mutual funds and portfolios for investments purchased -- -- -- -- -- ---------- ----------- ----------- ---------- ---------- Total liabilities 251 60,383 45,978 2,201 1,728 ---------- ----------- ----------- ---------- ---------- Net assets applicable to contracts in accumulation period 1,039,804 71,185,748 55,594,588 2,584,826 1,701,427 Net assets applicable to contracts in payment period -- 423,141 130,929 -- -- Net assets applicable to seed money -- -- -- -- -- ---------- ----------- ----------- ---------- ---------- Total net assets $1,039,804 $71,608,889 $55,725,517 $2,584,826 $1,701,427 ========== =========== =========== ========== ========== Accumulation units outstanding 1,262,412 86,442,399 67,958,228 3,100,817 2,058,283 ========= ========== ========== ========= ========= Net asset value per accumulation unit $ 0.82 $ 0.82 $ 0.82 $ 0.83 $ 0.83 ========== =========== =========== ========== ==========
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 7 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Assets and Liabilities Segregated Asset Subaccounts December 31, 2002 (continued) EM3 EM2 EM1 EM5 EM4 Assets Investments in shares of mutual funds and portfolios: at cost $4,281,090 $3,582,157 $2,838,241 $201,724 $118,103 ---------- ---------- ---------- -------- -------- at market value $3,646,305 $3,223,477 $2,621,605 $193,835 $108,744 Dividends receivable -- -- -- -- -- Accounts receivable from IDS Life for contract purchase payments -- -- -- 4,463 -- Receivable from mutual funds and portfolios for share redemptions -- -- -- -- -- ---------- ---------- ---------- -------- -------- Total assets 3,646,305 3,223,477 2,621,605 198,298 108,744 ========= ========= ========= ======= ======= Liabilities Payable to IDS Life for: Mortality and expense risk fee 1,737 2,086 2,123 164 110 Contract terminations -- 5,183 1,001 -- -- Payable to mutual funds and portfolios for investments purchased -- -- -- -- -- ---------- ---------- ---------- -------- -------- Total liabilities 1,737 7,269 3,124 164 110 ---------- ---------- ---------- -------- -------- Net assets applicable to contracts in accumulation period 191,345 3,216,208 2,618,481 198,134 108,634 Net assets applicable to contracts in payment period -- -- -- -- -- Net assets applicable to seed money 3,453,223 -- -- -- -- ---------- ---------- ---------- -------- -------- Total net assets $3,644,568 $3,216,208 $2,618,481 $198,134 $108,634 ========== ========== ========== ======== ======== Accumulation units outstanding 277,030 4,749,583 3,887,863 219,785 120,719 ======= ========= ========= ======= ======= Net asset value per accumulation unit $ 0.69 $ 0.68 $ 0.67 $ 0.90 $ 0.90 ========== ========== ========== ======== ========
Segregated Asset Subaccounts December 31, 2002 (continued) ES3 ES2 ES1 ES5 ES4 Assets Investments in shares of mutual funds and portfolios: at cost $2,223,700 $14,666,217 $10,718,199 $1,042,718 $808,771 ---------- ----------- ----------- ---------- -------- at market value $2,021,954 $13,907,541 $10,277,832 $1,013,785 $780,439 Dividends receivable -- -- -- -- -- Accounts receivable from IDS Life for contract purchase payments -- 59,720 39,885 507 -- Receivable from mutual funds and portfolios for share redemptions -- -- -- -- -- ---------- ----------- ----------- ---------- -------- Total assets 2,021,954 13,967,261 10,317,717 1,014,292 780,439 ========= ========== ========== ========= ======= Liabilities Payable to IDS Life for: Mortality and expense risk fee 970 8,750 8,097 808 755 Contract terminations -- -- -- -- -- Payable to mutual funds and portfolios for investments purchased -- -- -- -- -- ---------- ----------- ----------- ---------- -------- Total liabilities 970 8,750 8,097 808 755 ---------- ----------- ----------- ---------- -------- Net assets applicable to contracts in accumulation period 284,547 13,958,511 10,309,620 1,013,484 779,684 Net assets applicable to contracts in payment period -- -- -- -- -- Net assets applicable to seed money 1,736,437 -- -- -- -- ---------- ----------- ----------- ---------- -------- Total net assets $2,020,984 $13,958,511 $10,309,620 $1,013,484 $779,684 ========== =========== =========== ========== ======== Accumulation units outstanding 327,689 16,387,615 12,144,553 1,153,261 888,768 ======= ========== ========== ========= ======= Net asset value per accumulation unit $ 0.87 $ 0.85 $ 0.85 $ 0.88 $ 0.88 ========== =========== =========== ========== ========
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 8 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Assets and Liabilities Segregated Asset Subaccounts December 31, 2002 (continued) GB3 GB2 GB1 GB5 GB4 Assets Investments in shares of mutual funds and portfolios: at cost $286,141 $33,918,086 $39,515,405 $1,145,279 $1,650,153 -------- ----------- ----------- ---------- ---------- at market value $297,056 $36,564,985 $42,701,353 $1,202,388 $1,750,138 Dividends receivable 1,094 74,343 86,903 2,367 3,499 Accounts receivable from IDS Life for contract purchase payments -- 52,190 99,287 7,023 -- Receivable from mutual funds and portfolios for share redemptions -- -- -- -- -- -------- ----------- ----------- ---------- ---------- Total assets 298,150 36,691,518 42,887,543 1,211,778 1,753,637 ======= ========== ========== ========= ========= Liabilities Payable to IDS Life for: Mortality and expense risk fee 207 23,670 35,052 1,016 1,796 Contract terminations -- -- -- -- 10,308 Payable to mutual funds and portfolios for investments purchased -- -- -- -- -- -------- ----------- ----------- ---------- ---------- Total liabilities 207 23,670 35,052 1,016 12,104 -------- ----------- ----------- ---------- ---------- Net assets applicable to contracts in accumulation period 297,943 36,659,285 42,843,722 1,210,762 1,741,533 Net assets applicable to contracts in payment period -- 8,563 8,769 -- -- Net assets applicable to seed money -- -- -- -- -- -------- ----------- ----------- ---------- ---------- Total net assets $297,943 $36,667,848 $42,852,491 $1,210,762 $1,741,533 ======== =========== =========== ========== ========== Accumulation units outstanding 251,492 31,132,807 36,626,392 1,060,493 1,528,873 ======= ========== ========== ========= ========= Net asset value per accumulation unit $ 1.18 $ 1.18 $ 1.17 $ 1.14 $ 1.14 ======== =========== =========== ========== ==========
Segregated Asset Subaccounts December 31, 2002 (continued) GR3 GR2 GR1 GR5 GR4 Assets Investments in shares of mutual funds and portfolios: at cost $ 656,791 $136,449,771 $125,562,710 $787,713 $328,256 ---------- ------------ ------------ -------- -------- at market value $ 502,915 $ 64,684,853 $ 56,288,025 $742,955 $299,756 Dividends receivable -- -- -- -- -- Accounts receivable from IDS Life for contract purchase payments 303 -- 26,509 2,731 150 Receivable from mutual funds and portfolios for share redemptions -- -- -- -- -- ---------- ------------ ------------ -------- -------- Total assets 503,218 64,684,853 56,314,534 745,686 299,906 ======= ========== ========== ======= ======= Liabilities Payable to IDS Life for: Mortality and expense risk fee 243 42,357 46,792 581 290 Contract terminations -- 9,436 -- -- -- Payable to mutual funds and portfolios for investments purchased -- -- -- -- -- ---------- ------------ ------------ -------- -------- Total liabilities 243 51,793 46,792 581 290 ---------- ------------ ------------ -------- -------- Net assets applicable to contracts in accumulation period 502,975 64,478,819 56,168,373 745,105 299,616 Net assets applicable to contracts in payment period -- 154,241 99,369 -- -- Net assets applicable to seed money -- -- -- -- -- ---------- ------------ ------------ -------- -------- Total net assets $ 502,975 $ 64,633,060 $ 56,267,742 $745,105 $299,616 ========== ============ ============ ======== ======== Accumulation units outstanding 1,063,816 135,693,177 118,986,168 972,984 391,907 ========= =========== =========== ======= ======= Net asset value per accumulation unit $ 0.47 $ 0.48 $ 0.47 $ 0.77 $ 0.76 ========== ============ ============ ======== ========
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 9 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Assets and Liabilities Segregated Asset Subaccounts December 31, 2002 (continued) EI3 EI2 EI1 EI5 EI4 Assets Investments in shares of mutual funds and portfolios: at cost $2,814,753 $98,840,641 $131,224,012 $3,811,173 $4,098,535 ---------- ----------- ------------ ---------- ---------- at market value $2,811,596 $82,528,540 $107,358,600 $3,684,086 $3,968,843 Dividends receivable 5,624 341,423 443,446 15,097 16,124 Accounts receivable from IDS Life for contract purchase payments -- 123,401 35,828 4,767 5,605 Receivable from mutual funds and portfolios for share redemptions -- -- -- -- -- ---------- ----------- ------------ ---------- ---------- Total assets 2,817,220 82,993,364 107,837,874 3,703,950 3,990,572 ========= ========== =========== ========= ========= Liabilities Payable to IDS Life for: Mortality and expense risk fee 799 53,698 88,463 3,056 4,001 Contract terminations 1,505,278 -- -- -- -- Payable to mutual funds and portfolios for investments purchased -- -- -- -- -- ---------- ----------- ------------ ---------- ---------- Total liabilities 1,506,077 53,698 88,463 3,056 4,001 ---------- ----------- ------------ ---------- ---------- Net assets applicable to contracts in accumulation period 1,311,143 82,634,498 107,380,080 3,700,894 3,986,571 Net assets applicable to contracts in payment period -- 305,168 369,331 -- -- Net assets applicable to seed money -- -- -- -- -- ---------- ----------- ------------ ---------- ---------- Total net assets $1,311,143 $82,939,666 $107,749,411 $3,700,894 $3,986,571 ========== =========== ============ ========== ========== Accumulation units outstanding 1,479,516 93,845,145 122,784,360 3,956,584 4,269,455 ========= ========== =========== ========= ========= Net asset value per accumulation unit $ 0.89 $ 0.88 $ 0.87 $ 0.94 $ 0.93 ========== =========== ============ ========== ==========
Segregated Asset Subaccounts December 31, 2002 (continued) IE3 IE2 IE1 IE5 IE4 Assets Investments in shares of mutual funds and portfolios: at cost $264,567 $17,063,636 $15,523,451 $50,649 $ 93,898 -------- ----------- ----------- ------- -------- at market value $267,600 $10,981,701 $10,469,583 $47,197 $ 89,510 Dividends receivable -- -- -- -- -- Accounts receivable from IDS Life for contract purchase payments -- -- 7,658 -- -- Receivable from mutual funds and portfolios for share redemptions -- -- -- -- -- -------- ----------- ----------- ------- -------- Total assets 267,600 10,981,701 10,477,241 47,197 89,510 ======= ========== ========== ====== ====== Liabilities Payable to IDS Life for: Mortality and expense risk fee 107 7,150 8,637 41 92 Contract terminations -- 12,608 -- -- -- Payable to mutual funds and portfolios for investments purchased -- -- -- -- -- -------- ----------- ----------- ------- -------- Total liabilities 107 19,758 8,637 41 92 -------- ----------- ----------- ------- -------- Net assets applicable to contracts in accumulation period 267,493 10,906,875 10,389,582 47,156 89,418 Net assets applicable to contracts in payment period -- 55,068 79,022 -- -- Net assets applicable to seed money -- -- -- -- -- -------- ----------- ----------- ------- -------- Total net assets $267,493 $10,961,943 $10,468,604 $47,156 $ 89,418 ======== =========== =========== ======= ======== Accumulation units outstanding 487,561 20,011,954 19,189,221 55,372 105,028 ======= ========== ========== ====== ======= Net asset value per accumulation unit $ 0.55 $ 0.55 $ 0.54 $ 0.85 $ 0.85 ======== =========== =========== ======= ========
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 10 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Assets and Liabilities Segregated Asset Subaccounts December 31, 2002 (continued) MF3 MF2 MF1 MF5 MF4 Assets Investments in shares of mutual funds and portfolios: at cost $104,755 $68,814,828 $72,011,061 $499,161 $438,212 -------- ----------- ----------- -------- -------- at market value $ 97,883 $52,522,647 $52,147,436 $477,052 $414,396 Dividends receivable -- -- -- -- -- Accounts receivable from IDS Life for contract purchase payments -- -- 141,004 -- -- Receivable from mutual funds and portfolios for share redemptions -- -- -- -- -- -------- ----------- ----------- -------- -------- Total assets 97,883 52,522,647 52,288,440 477,052 414,396 ====== ========== ========== ======= ======= Liabilities Payable to IDS Life for: Mortality and expense risk fee 53 34,259 42,682 378 427 Contract terminations -- 35,532 -- -- -- Payable to mutual funds and portfolios for investments purchased -- -- -- -- -- -------- ----------- ----------- -------- -------- Total liabilities 53 69,791 42,682 378 427 -------- ----------- ----------- -------- -------- Net assets applicable to contracts in accumulation period 97,830 51,990,992 51,923,400 476,674 413,969 Net assets applicable to contracts in payment period -- 461,864 322,358 -- -- Net assets applicable to seed money -- -- -- -- -- -------- ----------- ----------- -------- -------- Total net assets $ 97,830 $52,452,856 $52,245,758 $476,674 $413,969 ======== =========== =========== ======== ======== Accumulation units outstanding 120,076 64,272,980 64,613,329 530,719 461,790 ======= ========== ========== ======= ======= Net asset value per accumulation unit $ 0.81 $ 0.81 $ 0.80 $ 0.90 $ 0.90 ======== =========== =========== ======== ========
Segregated Asset Subaccounts December 31, 2002 (continued) ND3 ND2 ND1 ND5 ND4 Assets Investments in shares of mutual funds and portfolios: at cost $1,916,812 $387,500,123 $380,077,682 $5,731,374 $4,572,762 ---------- ------------ ------------ ---------- ---------- at market value $1,723,204 $258,058,792 $239,183,418 $5,209,759 $4,048,774 Dividends receivable -- -- -- -- -- Accounts receivable from IDS Life for contract purchase payments 376,428 253,743 82,925 49,924 -- Receivable from mutual funds and portfolios for share redemptions -- -- -- -- -- ---------- ------------ ------------ ---------- ---------- Total assets 2,099,632 258,312,535 239,266,343 5,259,683 4,048,774 ========= =========== =========== ========= ========= Liabilities Payable to IDS Life for: Mortality and expense risk fee 831 168,239 197,907 4,341 4,059 Contract terminations -- -- -- -- 9,773 Payable to mutual funds and portfolios for investments purchased -- -- -- -- -- ---------- ------------ ------------ ---------- ---------- Total liabilities 831 168,239 197,907 4,341 13,832 ---------- ------------ ------------ ---------- ---------- Net assets applicable to contracts in accumulation period 2,098,801 257,246,909 237,850,481 5,255,342 4,034,942 Net assets applicable to contracts in payment period -- 897,387 1,217,955 -- -- Net assets applicable to seed money -- -- -- -- -- ---------- ------------ ------------ ---------- ---------- Total net assets $2,098,801 $258,144,296 $239,068,436 $5,255,342 $4,034,942 ========== ============ ============ ========== ========== Accumulation units outstanding 3,029,005 373,715,274 347,841,415 6,564,582 5,049,205 ========= =========== =========== ========= ========= Net asset value per accumulation unit $ 0.69 $ 0.69 $ 0.68 $ 0.80 $ 0.80 ========== ============ ============ ========== ==========
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 11 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Assets and Liabilities Segregated Asset Subaccounts December 31, 2002 (continued) SV3 SV2 SV1 SV5 SV4 Assets Investments in shares of mutual funds and portfolios: at cost $4,629,380 $44,594,930 $28,514,825 $3,176,301 $2,665,438 ---------- ----------- ----------- ---------- ---------- at market value $4,325,970 $40,431,530 $26,256,785 $2,921,688 $2,360,419 Dividends receivable -- -- -- -- -- Accounts receivable from IDS Life for contract purchase payments 10 59,485 56,820 8,320 -- Receivable from mutual funds and portfolios for share redemptions -- -- -- -- -- ---------- ----------- ----------- ---------- ---------- Total assets 4,325,980 40,491,015 26,313,605 2,930,008 2,360,419 ========= ========== ========== ========= ========= Liabilities Payable to IDS Life for: Mortality and expense risk fee 2,082 26,066 21,113 2,453 2,418 Contract terminations -- -- -- -- 9,137 Payable to mutual funds and portfolios for investments purchased -- -- -- -- -- ---------- ----------- ----------- ---------- ---------- Total liabilities 2,082 26,066 21,113 2,453 11,555 ---------- ----------- ----------- ---------- ---------- Net assets applicable to contracts in accumulation period 585,779 40,381,930 26,194,197 2,927,555 2,348,864 Net assets applicable to contracts in payment period -- 83,019 98,295 -- -- Net assets applicable to seed money 3,738,119 -- -- -- -- ---------- ----------- ----------- ---------- ---------- Total net assets $4,323,898 $40,464,949 $26,292,492 $2,927,555 $2,348,864 ========== =========== =========== ========== ========== Accumulation units outstanding 626,823 43,198,794 28,099,482 3,315,597 2,664,887 ======= ========== ========== ========= ========= Net asset value per accumulation unit $ 0.93 $ 0.93 $ 0.93 $ 0.88 $ 0.88 ========== =========== =========== ========== ==========
Segregated Asset Subaccounts December 31, 2002 (continued) IV3 IV2 IV1 IV5 IV4 Assets Investments in shares of mutual funds and portfolios: at cost $672,257 $50,181,514 $51,813,253 $1,564,389 $1,444,395 -------- ----------- ----------- ---------- ---------- at market value $543,809 $39,381,275 $39,375,603 $1,447,396 $1,311,659 Dividends receivable -- -- -- -- -- Accounts receivable from IDS Life for contract purchase payments 47,065 53,940 61,413 58,883 -- Receivable from mutual funds and portfolios for share redemptions -- -- -- -- -- -------- ----------- ----------- ---------- ---------- Total assets 590,874 39,435,215 39,437,016 1,506,279 1,311,659 ======= ========== ========== ========= ========= Liabilities Payable to IDS Life for: Mortality and expense risk fee 260 25,460 32,386 1,230 1,344 Contract terminations -- -- -- -- -- Payable to mutual funds and portfolios for investments purchased -- -- -- -- -- -------- ----------- ----------- ---------- ---------- Total liabilities 260 25,460 32,386 1,230 1,344 -------- ----------- ----------- ---------- ---------- Net assets applicable to contracts in accumulation period 590,614 39,304,239 39,239,097 1,505,049 1,310,315 Net assets applicable to contracts in payment period -- 105,516 165,533 -- -- Net assets applicable to seed money -- -- -- -- -- -------- ----------- ----------- ---------- ---------- Total net assets $590,614 $39,409,755 $39,404,630 $1,505,049 $1,310,315 ======== =========== =========== ========== ========== Accumulation units outstanding 973,266 64,770,944 65,010,707 1,889,437 1,647,721 ======= ========== ========== ========= ========= Net asset value per accumulation unit $ 0.61 $ 0.61 $ 0.60 $ 0.80 $ 0.80 ======== =========== =========== ========== ==========
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 12 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Assets and Liabilities Segregated Asset Subaccounts December 31, 2002 (continued) FI3 FI2 FI1 FI5 FI4 Assets Investments in shares of mutual funds and portfolios: at cost $1,525,440 $146,954,000 $135,569,400 $6,300,038 $7,884,136 ---------- ------------ ------------ ---------- ---------- at market value $1,539,965 $149,454,247 $138,227,005 $6,337,627 $7,942,833 Dividends receivable 3,680 361,715 334,153 14,867 19,209 Accounts receivable from IDS Life for contract purchase payments -- 252,746 -- 10,467 -- Receivable from mutual funds and portfolios for share redemptions -- -- -- -- -- ---------- ------------ ------------ ---------- ---------- Total assets 1,543,645 150,068,708 138,561,158 6,362,961 7,962,042 ========= =========== =========== ========= ========= Liabilities Payable to IDS Life for: Mortality and expense risk fee 723 96,886 113,336 5,317 8,228 Contract terminations -- -- 42,094 -- 7,723 Payable to mutual funds and portfolios for investments purchased -- -- -- -- -- ---------- ------------ ------------ ---------- ---------- Total liabilities 723 96,886 155,430 5,317 15,951 ---------- ------------ ------------ ---------- ---------- Net assets applicable to contracts in accumulation period 1,542,922 149,519,781 138,165,634 6,357,644 7,946,091 Net assets applicable to contracts in payment period -- 452,041 240,094 -- -- Net assets applicable to seed money -- -- -- -- -- ---------- ------------ ------------ ---------- ---------- Total net assets $1,542,922 $149,971,822 $138,405,728 $6,357,644 $7,946,091 ========== ============ ============ ========== ========== Accumulation units outstanding 1,274,641 124,866,303 116,147,349 6,107,066 7,645,777 ========= =========== =========== ========= ========= Net asset value per accumulation unit $ 1.21 $ 1.20 $ 1.19 $ 1.04 $ 1.04 ========== ============ ============ ========== ==========
Segregated Asset Subaccounts December 31, 2002 (continued) SC3 SC2 SC1 SC5 SC4 Assets Investments in shares of mutual funds and portfolios: at cost $386,254 $31,721,698 $31,848,399 $811,322 $464,658 -------- ----------- ----------- -------- -------- at market value $349,481 $25,963,763 $25,876,974 $767,701 $433,638 Dividends receivable -- -- -- -- -- Accounts receivable from IDS Life for contract purchase payments -- 5,863 42,002 -- 5,663 Receivable from mutual funds and portfolios for share redemptions -- -- -- -- -- -------- ----------- ----------- -------- -------- Total assets 349,481 25,969,626 25,918,976 767,701 439,301 ======= ========== ========== ======= ======= Liabilities Payable to IDS Life for: Mortality and expense risk fee 165 16,933 21,448 621 395 Contract terminations -- -- -- 369 -- Payable to mutual funds and portfolios for investments purchased -- -- -- -- -- -------- ----------- ----------- -------- -------- Total liabilities 165 16,933 21,448 990 395 -------- ----------- ----------- -------- -------- Net assets applicable to contracts in accumulation period 349,316 25,935,159 25,886,139 766,711 438,906 Net assets applicable to contracts in payment period -- 17,534 11,389 -- -- Net assets applicable to seed money -- -- -- -- -- -------- ----------- ----------- -------- -------- Total net assets $349,316 $25,952,693 $25,897,528 $766,711 $438,906 ======== =========== =========== ======== ======== Accumulation units outstanding 392,663 29,202,084 29,341,081 900,351 516,328 ======= ========== ========== ======= ======= Net asset value per accumulation unit $ 0.89 $ 0.89 $ 0.88 $ 0.85 $ 0.85 ======== =========== =========== ======== ========
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 13 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Segregated Asset Subaccounts December 31, 2002 (continued) SA3 SA2 SA1 SA5 SA4 Assets Investments in shares of mutual funds and portfolios: at cost $220,116 $92,185,325 $92,571,548 $ 92,939 $135,093 -------- ----------- ----------- -------- -------- at market value $212,666 $32,394,046 $30,137,616 $ 82,316 $115,788 Dividends receivable -- -- -- -- -- Accounts receivable from IDS Life for contract purchase payments -- -- 2,054 56 -- Receivable from mutual funds and portfolios for share redemptions -- -- -- -- -- -------- ----------- ----------- -------- -------- Total assets 212,666 32,394,046 30,139,670 82,372 115,788 ======= ========== ========== ====== ======= Liabilities Payable to IDS Life for: Mortality and expense risk fee 120 21,322 25,175 67 123 Contract terminations -- 3,615 -- -- -- Payable to mutual funds and portfolios for investments purchased -- -- -- -- -- -------- ----------- ----------- -------- -------- Total liabilities 120 24,937 25,175 67 123 -------- ----------- ----------- -------- -------- Net assets applicable to contracts in accumulation period 212,546 32,280,715 30,013,975 82,305 115,665 Net assets applicable to contracts in payment period -- 88,394 100,520 -- -- Net assets applicable to seed money -- -- -- -- -- -------- ----------- ----------- -------- -------- Total net assets $212,546 $32,369,109 $30,114,495 $ 82,305 $115,665 ======== =========== =========== ======== ======== Accumulation units outstanding 385,725 58,958,487 55,182,791 114,119 160,658 ======= ========== ========== ======= ======= Net asset value per accumulation unit $ 0.55 $ 0.55 $ 0.54 $ 0.72 $ 0.72 ======== =========== =========== ======== ========
Segregated Asset Subaccounts December 31, 2002 (continued) 3AC 2AC 1AC 5AC 4AC Assets Investments in shares of mutual funds and portfolios: at cost $3,276 $ 9,695,267 $6,653,399 $325,633 $383,844 ------ ----------- ---------- -------- -------- at market value $2,720 $ 8,275,892 $5,561,808 $295,635 $347,402 Dividends receivable -- -- -- -- -- Accounts receivable from IDS Life for contract purchase payments -- 23,756 17,678 336 5,285 Receivable from mutual funds and portfolios for share redemptions 1 5,251 4,428 235 314 ------ ----------- ---------- -------- -------- Total assets 2,721 8,304,899 5,583,914 296,206 353,001 ===== ========= ========= ======= ======= Liabilities Payable to IDS Life for: Mortality and expense risk fee 1 5,251 4,428 235 314 Contract terminations -- -- -- -- -- Payable to mutual funds and portfolios for investments purchased -- 23,756 17,678 336 5,285 ------ ----------- ---------- -------- -------- Total liabilities 1 29,007 22,106 571 5,599 ------ ----------- ---------- -------- -------- Net assets applicable to contracts in accumulation period 2,720 8,275,892 5,561,808 295,635 347,402 Net assets applicable to contracts in payment period -- -- -- -- -- Net assets applicable to seed money -- -- -- -- -- ------ ----------- ---------- -------- -------- Total net assets $2,720 $ 8,275,892 $5,561,808 $295,635 $347,402 ====== =========== ========== ======== ======== Accumulation units outstanding 3,708 11,313,117 7,624,114 379,463 446,713 ===== ========== ========= ======= ======= Net asset value per accumulation unit $ 0.73 $ 0.73 $ 0.73 $ 0.78 $ 0.78 ====== =========== ========== ======== ========
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 14 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Assets and Liabilities Segregated Asset Subaccounts December 31, 2002 (continued) 3AD 2AD 1AD 5AD 4AD Assets Investments in shares of mutual funds and portfolios: at cost $150,522 $6,231,600 $4,247,387 $479,472 $420,235 -------- ---------- ---------- -------- -------- at market value $138,171 $5,335,521 $3,686,899 $444,030 $371,618 Dividends receivable -- -- -- -- -- Accounts receivable from IDS Life for contract purchase payments -- 2,157 1,064 86 -- Receivable from mutual funds and portfolios for share redemptions 60 3,450 2,973 373 373 -------- ---------- ---------- -------- -------- Total assets 138,231 5,341,128 3,690,936 444,489 371,991 ======= ========= ========= ======= ======= Liabilities Payable to IDS Life for: Mortality and expense risk fee 60 3,450 2,973 373 373 Contract terminations -- -- -- -- -- Payable to mutual funds and portfolios for investments purchased -- 2,157 1,064 86 -- -------- ---------- ---------- -------- -------- Total liabilities 60 5,607 4,037 459 373 -------- ---------- ---------- -------- -------- Net assets applicable to contracts in accumulation period 138,171 5,335,521 3,664,297 444,030 371,618 Net assets applicable to contracts in payment period -- -- 22,602 -- -- Net assets applicable to seed money -- -- -- -- -- -------- ---------- ---------- -------- -------- Total net assets $138,171 $5,335,521 $3,686,899 $444,030 $371,618 ======== ========== ========== ======== ======== Accumulation units outstanding 180,289 6,981,444 4,808,019 552,297 463,048 ======= ========= ========= ======= ======= Net asset value per accumulation unit $ 0.77 $ 0.76 $ 0.76 $ 0.80 $ 0.80 ======== ========== ========== ======== ========
Segregated Asset Subaccounts December 31, 2002 (continued) 3AL 2AL 1AL 5AL 4AL Assets Investments in shares of mutual funds and portfolios: at cost $260,103 $37,415,566 $25,779,034 $3,153,427 $3,772,848 -------- ----------- ----------- ---------- ---------- at market value $231,150 $32,201,389 $22,175,676 $2,831,362 $3,285,211 Dividends receivable -- -- -- -- -- Accounts receivable from IDS Life for contract purchase payments 7,124 93,926 33,576 5,064 264 Receivable from mutual funds and portfolios for share redemptions 103 20,578 17,813 2,390 3,387 -------- ----------- ----------- ---------- ---------- Total assets 238,377 32,315,893 22,227,065 2,838,816 3,288,862 ======= ========== ========== ========= ========= Liabilities Payable to IDS Life for: Mortality and expense risk fee 103 20,578 17,813 2,390 3,387 Contract terminations -- -- -- -- -- Payable to mutual funds and portfolios for investments purchased 7,124 93,926 33,576 5,064 264 -------- ----------- ----------- ---------- ---------- Total liabilities 7,227 114,504 51,389 7,454 3,651 -------- ----------- ----------- ---------- ---------- Net assets applicable to contracts in accumulation period 231,150 32,144,038 22,106,301 2,831,362 3,285,211 Net assets applicable to contracts in payment period -- 57,351 69,375 -- -- Net assets applicable to seed money -- -- -- -- -- -------- ----------- ----------- ---------- ---------- Total net assets $231,150 $32,201,389 $22,175,676 $2,831,362 $3,285,211 ======== =========== =========== ========== ========== Accumulation units outstanding 309,718 43,189,143 29,770,134 3,502,781 4,071,558 ======= ========== ========== ========= ========= Net asset value per accumulation unit $ 0.75 $ 0.74 $ 0.74 $ 0.81 $ 0.81 ======== =========== =========== ========== ==========
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 15 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Assets and Liabilities Segregated Asset Subaccounts December 31, 2002 (continued) 3AB 2AB 1AB 5AB 4AB Assets Investments in shares of mutual funds and portfolios: at cost $553,760 $11,916,496 $8,698,310 $1,395,991 $1,391,549 -------- ----------- ---------- ---------- ---------- at market value $557,441 $11,302,907 $8,490,407 $1,349,934 $1,303,572 Dividends receivable -- -- -- -- -- Accounts receivable from IDS Life for contract purchase payments -- 13,736 35,556 3,229 -- Receivable from mutual funds and portfolios for share redemptions 230 7,110 6,787 1,144 1,440 -------- ----------- ---------- ---------- ---------- Total assets 557,671 11,323,753 8,532,750 1,354,307 1,305,012 ======= ========== ========= ========= ========= Liabilities Payable to IDS Life for: Mortality and expense risk fee 230 7,110 6,787 1,144 1,306 Contract terminations -- -- -- -- 134 Payable to mutual funds and portfolios for investments purchased -- 13,736 35,556 3,229 -- -------- ----------- ---------- ---------- ---------- Total liabilities 230 20,846 42,343 4,373 1,440 -------- ----------- ---------- ---------- ---------- Net assets applicable to contracts in accumulation period 557,441 11,302,907 8,485,789 1,349,934 1,303,572 Net assets applicable to contracts in payment period -- -- 4,618 -- -- Net assets applicable to seed money -- -- -- -- -- -------- ----------- ---------- ---------- ---------- Total net assets $557,441 $11,302,907 $8,490,407 $1,349,934 $1,303,572 ======== =========== ========== ========== ========== Accumulation units outstanding 605,559 12,313,462 9,269,912 1,417,103 1,370,961 ======= ========== ========= ========= ========= Net asset value per accumulation unit $ 0.92 $ 0.92 $ 0.92 $ 0.95 $ 0.95 ======== =========== ========== ========== ==========
Segregated Asset Subaccounts December 31, 2002 (continued) 3AI 2AI 1AI 5AI 4AI Assets Investments in shares of mutual funds and portfolios: at cost $187,827 $ 9,616,957 $6,903,901 $876,656 $426,280 -------- ----------- ---------- -------- -------- at market value $187,069 $ 8,359,833 $6,016,733 $802,043 $379,813 Dividends receivable -- -- -- -- -- Accounts receivable from IDS Life for contract purchase payments 5 6,357 40,005 338 -- Receivable from mutual funds and portfolios for share redemptions 65 5,356 4,769 641 9,919 -------- ----------- ---------- -------- -------- Total assets 187,139 8,371,546 6,061,507 803,022 389,732 ======= ========= ========= ======= ======= Liabilities Payable to IDS Life for: Mortality and expense risk fee 65 5,356 4,769 641 396 Contract terminations -- -- -- -- 9,523 Payable to mutual funds and portfolios for investments purchased 5 6,357 40,005 338 -- -------- ----------- ---------- -------- -------- Total liabilities 70 11,713 44,774 979 9,919 -------- ----------- ---------- -------- -------- Net assets applicable to contracts in accumulation period 187,069 8,359,833 6,008,102 802,043 379,813 Net assets applicable to contracts in payment period -- -- 8,631 -- -- Net assets applicable to seed money -- -- -- -- -- -------- ----------- ---------- -------- -------- Total net assets $187,069 $ 8,359,833 $6,016,733 $802,043 $379,813 ======== =========== ========== ======== ======== Accumulation units outstanding 253,884 11,378,093 8,200,172 944,495 448,082 ======= ========== ========= ======= ======= Net asset value per accumulation unit $ 0.74 $ 0.73 $ 0.73 $ 0.85 $ 0.85 ======== =========== ========== ======== ========
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 16 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Assets and Liabilities Segregated Asset Subaccounts December 31, 2002 (continued) 3AV 2AV 1AV 5AV 4AV Assets Investments in shares of mutual funds and portfolios: at cost $478,557 $41,713,776 $30,149,995 $2,674,192 $2,307,842 -------- ----------- ----------- ---------- ---------- at market value $434,296 $38,114,493 $27,549,269 $2,522,546 $2,126,714 Dividends receivable -- -- -- -- -- Accounts receivable from IDS Life for contract purchase payments 7,279 54,282 64,213 10,099 -- Receivable from mutual funds and portfolios for share redemptions 201 24,470 22,244 2,140 6,389 -------- ----------- ----------- ---------- ---------- Total assets 441,776 38,193,245 27,635,726 2,534,785 2,133,103 ======= ========== ========== ========= ========= Liabilities Payable to IDS Life for: Mortality and expense risk fee 201 24,470 22,244 2,140 2,192 Contract terminations -- -- -- -- 4,197 Payable to mutual funds and portfolios for investments purchased 7,279 54,282 64,213 10,099 -- -------- ----------- ----------- ---------- ---------- Total liabilities 7,480 78,752 86,457 12,239 6,389 -------- ----------- ----------- ---------- ---------- Net assets applicable to contracts in accumulation period 434,296 38,100,718 27,289,194 2,522,546 2,126,714 Net assets applicable to contracts in payment period -- 13,775 260,075 -- -- Net assets applicable to seed money -- -- -- -- -- -------- ----------- ----------- ---------- ---------- Total net assets $434,296 $38,114,493 $27,549,269 $2,522,546 $2,126,714 ======== =========== =========== ========== ========== Accumulation units outstanding 483,056 42,497,368 30,522,982 2,836,507 2,395,632 ======= ========== ========== ========= ========= Net asset value per accumulation unit $ 0.90 $ 0.90 $ 0.89 $ 0.89 $ 0.89 ======== =========== =========== ========== ==========
Segregated Asset Subaccounts December 31, 2002 (continued) 3SR 2SR 1SR 5SR 4SR Assets Investments in shares of mutual funds and portfolios: at cost $7,531 $8,750,071 $9,163,350 $194,578 $196,096 ------ ---------- ---------- -------- -------- at market value $6,235 $7,427,146 $7,586,830 $185,796 $183,196 Dividends receivable -- -- -- -- -- Accounts receivable from IDS Life for contract purchase payments -- 5,032 996 -- -- Receivable from mutual funds and portfolios for share redemptions 3 4,765 6,263 150 188 ------ ---------- ---------- -------- -------- Total assets 6,238 7,436,943 7,594,089 185,946 183,384 ===== ========= ========= ======= ======= Liabilities Payable to IDS Life for: Mortality and expense risk fee 3 4,765 6,263 150 188 Contract terminations -- -- -- -- -- Payable to mutual funds and portfolios for investments purchased -- 5,032 996 -- -- ------ ---------- ---------- -------- -------- Total liabilities 3 9,797 7,259 150 188 ------ ---------- ---------- -------- -------- Net assets applicable to contracts in accumulation period 6,235 7,385,249 7,586,830 185,796 183,196 Net assets applicable to contracts in payment period -- 41,897 -- -- -- Net assets applicable to seed money -- -- -- -- -- ------ ---------- ---------- -------- -------- Total net assets $6,235 $7,427,146 $7,586,830 $185,796 $183,196 ====== ========== ========== ======== ======== Accumulation units outstanding 8,008 9,519,993 9,832,066 211,143 208,474 ===== ========= ========= ======= ======= Net asset value per accumulation unit $ 0.78 $ 0.78 $ 0.77 $ 0.88 $ 0.88 ====== ========== ========== ======== ========
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 17 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Assets and Liabilities Segregated Asset Subaccounts December 31, 2002 (continued) 3FG 2FG 1FG 5FG 4FG Assets Investments in shares of mutual funds and portfolios: at cost $217,903 $43,532,647 $33,079,310 $3,178,377 $3,226,176 -------- ----------- ----------- ---------- ---------- at market value $192,711 $40,221,927 $30,006,142 $3,070,730 $2,994,291 Dividends receivable -- -- -- -- -- Accounts receivable from IDS Life for contract purchase payments -- 60,825 86,017 12,117 8,710 Receivable from mutual funds and portfolios for share redemptions 88 25,548 24,145 2,560 3,059 -------- ----------- ----------- ---------- ---------- Total assets 192,799 40,308,300 30,116,304 3,085,407 3,006,060 ======= ========== ========== ========= ========= Liabilities Payable to IDS Life for: Mortality and expense risk fee 88 25,548 24,145 2,560 3,059 Contract terminations -- -- -- -- -- Payable to mutual funds and portfolios for investments purchased -- 60,825 86,017 12,117 8,710 -------- ----------- ----------- ---------- ---------- Total liabilities 88 86,373 110,162 14,677 11,769 -------- ----------- ----------- ---------- ---------- Net assets applicable to contracts in accumulation period 192,711 40,125,330 29,850,379 3,070,730 2,994,291 Net assets applicable to contracts in payment period -- 96,597 155,763 -- -- Net assets applicable to seed money -- -- -- -- -- -------- ----------- ----------- ---------- ---------- Total net assets $192,711 $40,221,927 $30,006,142 $3,070,730 $2,994,291 ======== =========== =========== ========== ========== Accumulation units outstanding 233,173 48,686,158 36,319,587 3,591,656 3,508,493 ======= ========== ========== ========= ========= Net asset value per accumulation unit $ 0.83 $ 0.82 $ 0.82 $ 0.85 $ 0.85 ======== =========== =========== ========== ==========
Segregated Asset Subaccounts December 31, 2002 (continued) 3FM 2FM 1FM 5FM 4FM Assets Investments in shares of mutual funds and portfolios: at cost $317,481 $49,869,334 $34,833,838 $3,954,272 $3,406,627 -------- ----------- ----------- ---------- ---------- at market value $303,009 $46,915,811 $32,954,935 $3,758,714 $3,177,016 Dividends receivable -- -- -- -- -- Accounts receivable from IDS Life for contract purchase payments 8 128,841 94,541 17,474 16,468 Receivable from mutual funds and portfolios for share redemptions 139 29,816 26,383 3,183 3,195 -------- ----------- ----------- ---------- ---------- Total assets 303,156 47,074,468 33,075,859 3,779,371 3,196,679 ======= ========== ========== ========= ========= Liabilities Payable to IDS Life for: Mortality and expense risk fee 139 29,816 26,383 3,183 3,195 Contract terminations -- -- -- -- -- Payable to mutual funds and portfolios for investments purchased 8 128,841 94,541 17,474 16,468 -------- ----------- ----------- ---------- ---------- Total liabilities 147 158,657 120,924 20,657 19,663 -------- ----------- ----------- ---------- ---------- Net assets applicable to contracts in accumulation period 303,009 46,850,864 32,908,339 3,758,714 3,177,016 Net assets applicable to contracts in payment period -- 64,947 46,596 -- -- Net assets applicable to seed money -- -- -- -- -- -------- ----------- ----------- ---------- ---------- Total net assets $303,009 $46,915,811 $32,954,935 $3,758,714 $3,177,016 ======== =========== =========== ========== ========== Accumulation units outstanding 325,426 50,457,516 35,541,388 4,182,372 3,541,343 ======= ========== ========== ========= ========= Net asset value per accumulation unit $ 0.93 $ 0.93 $ 0.93 $ 0.90 $ 0.90 ======== =========== =========== ========== ==========
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 18 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Assets and Liabilities Segregated Asset Subaccounts December 31, 2002 (continued) 3FO 2FO 1FO 5FO 4FO Assets Investments in shares of mutual funds and portfolios: at cost $245,672 $11,356,972 $ 8,851,728 $511,534 $571,747 -------- ----------- ----------- -------- -------- at market value $242,627 $ 9,829,072 $ 7,632,288 $457,588 $504,211 Dividends receivable -- -- -- -- -- Accounts receivable from IDS Life for contract purchase payments -- 3,852 28,992 1,567 -- Receivable from mutual funds and portfolios for share redemptions 78 6,345 6,127 385 525 -------- ----------- ----------- -------- -------- Total assets 242,705 9,839,269 7,667,407 459,540 504,736 ======= ========= ========= ======= ======= Liabilities Payable to IDS Life for: Mortality and expense risk fee 78 6,345 6,127 385 525 Contract terminations -- -- -- -- -- Payable to mutual funds and portfolios for investments purchased -- 3,852 28,992 1,567 -- -------- ----------- ----------- -------- -------- Total liabilities 78 10,197 35,119 1,952 525 -------- ----------- ----------- -------- -------- Net assets applicable to contracts in accumulation period 242,627 9,816,231 7,531,856 457,588 504,211 Net assets applicable to contracts in payment period -- 12,841 100,432 -- -- Net assets applicable to seed money -- -- -- -- -- -------- ----------- ----------- -------- -------- Total net assets $242,627 $ 9,829,072 $ 7,632,288 $457,588 $504,211 ======== =========== =========== ======== ======== Accumulation units outstanding 324,271 13,156,775 10,123,150 552,700 610,117 ======= ========== ========== ======= ======= Net asset value per accumulation unit $ 0.75 $ 0.75 $ 0.74 $ 0.83 $ 0.83 ======== =========== =========== ======== ========
Segregated Asset Subaccounts December 31, 2002 (continued) 3RE 2RE 1RE 5RE 4RE Assets Investments in shares of mutual funds and portfolios: at cost $281,160 $80,892,935 $59,985,284 $3,007,305 $3,134,925 -------- ----------- ----------- ---------- ---------- at market value $279,651 $80,774,443 $60,236,914 $2,914,704 $3,011,866 Dividends receivable -- -- -- -- -- Accounts receivable from IDS Life for contract purchase payments 7,462 90,108 105,798 8,857 -- Receivable from mutual funds and portfolios for share redemptions 132 52,521 49,648 2,444 13,454 -------- ----------- ----------- ---------- ---------- Total assets 287,245 80,917,072 60,392,360 2,926,005 3,025,320 ======= ========== ========== ========= ========= Liabilities Payable to IDS Life for: Mortality and expense risk fee 132 52,521 49,648 2,444 3,087 Contract terminations -- -- -- -- 10,367 Payable to mutual funds and portfolios for investments purchased 7,462 90,108 105,798 8,857 -- -------- ----------- ----------- ---------- ---------- Total liabilities 7,594 142,629 155,446 11,301 13,454 -------- ----------- ----------- ---------- ---------- Net assets applicable to contracts in accumulation period 279,651 80,550,785 60,153,053 2,914,704 3,011,866 Net assets applicable to contracts in payment period -- 223,658 83,861 -- -- Net assets applicable to seed money -- -- -- -- -- -------- ----------- ----------- ---------- ---------- Total net assets $279,651 $80,774,443 $60,236,914 $2,914,704 $3,011,866 ======== =========== =========== ========== ========== Accumulation units outstanding 204,619 59,317,320 44,591,201 2,887,240 2,988,751 ======= ========== ========== ========= ========= Net asset value per accumulation unit $ 1.37 $ 1.36 $ 1.35 $ 1.01 $ 1.01 ======== =========== =========== ========== ==========
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 19 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Assets and Liabilities Segregated Asset Subaccounts December 31, 2002 (continued) 3SI 2SI 1SI 5SI 4SI Assets Investments in shares of mutual funds and portfolios: at cost $370,595 $39,056,521 $30,161,937 $2,004,713 $1,587,819 -------- ----------- ----------- ---------- ---------- at market value $344,449 $36,181,649 $28,428,787 $1,906,023 $1,476,557 Dividends receivable -- -- -- -- -- Accounts receivable from IDS Life for contract purchase payments -- 55,021 47,536 6,598 5,179 Receivable from mutual funds and portfolios for share redemptions 159 23,460 23,311 1,612 1,465 -------- ----------- ----------- ---------- ---------- Total assets 344,608 36,260,130 28,499,634 1,914,233 1,483,201 ======= ========== ========== ========= ========= Liabilities Payable to IDS Life for: Mortality and expense risk fee 159 23,460 23,311 1,612 1,465 Contract terminations -- -- -- -- -- Payable to mutual funds and portfolios for investments purchased -- 55,021 47,536 6,598 5,179 -------- ----------- ----------- ---------- ---------- Total liabilities 159 78,481 70,847 8,210 6,644 -------- ----------- ----------- ---------- ---------- Net assets applicable to contracts in accumulation period 344,449 36,124,390 28,417,857 1,906,023 1,476,557 Net assets applicable to contracts in payment period -- 57,259 10,930 -- -- Net assets applicable to seed money -- -- -- -- -- -------- ----------- ----------- ---------- ---------- Total net assets $344,449 $36,181,649 $28,428,787 $1,906,023 $1,476,557 ======== =========== =========== ========== ========== Accumulation units outstanding 281,793 29,742,583 23,552,851 2,074,525 1,609,875 ======= ========== ========== ========= ========= Net asset value per accumulation unit $ 1.22 $ 1.21 $ 1.21 $ 0.92 $ 0.92 ======== =========== =========== ========== ==========
Segregated Asset Subaccounts December 31, 2002 (continued) 3MS 2MS 1MS 5MS 4MS Assets Investments in shares of mutual funds and portfolios: at cost $120,916 $ 9,937,516 $8,268,164 $1,611,893 $1,358,298 -------- ----------- ---------- ---------- ---------- at market value $110,521 $ 9,246,262 $7,710,925 $1,543,986 $1,260,071 Dividends receivable -- -- -- -- -- Accounts receivable from IDS Life for contract purchase payments -- 13,074 31,468 43,537 36 Receivable from mutual funds and portfolios for share redemptions 53 5,832 6,124 1,242 1,233 -------- ----------- ---------- ---------- ---------- Total assets 110,574 9,265,168 7,748,517 1,588,765 1,261,340 ======= ========= ========= ========= ========= Liabilities Payable to IDS Life for: Mortality and expense risk fee 53 5,832 6,124 1,242 1,233 Contract terminations -- -- -- -- -- Payable to mutual funds and portfolios for investments purchased -- 13,074 31,468 43,537 36 -------- ----------- ---------- ---------- ---------- Total liabilities 53 18,906 37,592 44,779 1,269 -------- ----------- ---------- ---------- ---------- Net assets applicable to contracts in accumulation period 110,521 9,246,262 7,710,925 1,543,986 1,260,071 Net assets applicable to contracts in payment period -- -- -- -- -- Net assets applicable to seed money -- -- -- -- -- -------- ----------- ---------- ---------- ---------- Total net assets $110,521 $ 9,246,262 $7,710,925 $1,543,986 $1,260,071 ======== =========== ========== ========== ========== Accumulation units outstanding 130,426 10,942,213 9,150,582 1,734,761 1,418,309 ======= ========== ========= ========= ========= Net asset value per accumulation unit $ 0.85 $ 0.85 $ 0.84 $ 0.89 $ 0.89 ======== =========== ========== ========== ==========
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 20 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Assets and Liabilities Segregated Asset Subaccounts December 31, 2002 (continued) 3UE 2UE 1UE 5UE 4UE Assets Investments in shares of mutual funds and portfolios: at cost $537,647 $69,913,880 $75,101,887 $ 893,322 $1,367,884 -------- ----------- ----------- ---------- ---------- at market value $467,842 $48,248,557 $50,351,755 $ 842,294 $1,189,608 Dividends receivable -- -- -- -- -- Accounts receivable from IDS Life for contract purchase payments -- -- -- -- 10,293 Receivable from mutual funds and portfolios for share redemptions 222 88,473 81,323 54,543 1,217 -------- ----------- ----------- ---------- ---------- Total assets 468,064 48,337,030 50,433,078 896,837 1,201,118 ======= ========== ========== ======= ========= Liabilities Payable to IDS Life for: Mortality and expense risk fee 222 31,546 41,956 767 1,217 Contract terminations -- 56,927 39,367 53,776 -- Payable to mutual funds and portfolios for investments purchased -- -- -- -- 10,293 -------- ----------- ----------- ---------- ---------- Total liabilities 222 88,473 81,323 54,543 11,510 -------- ----------- ----------- ---------- ---------- Net assets applicable to contracts in accumulation period 467,842 48,078,069 50,201,518 842,294 1,189,608 Net assets applicable to contracts in payment period -- 170,488 150,237 -- -- Net assets applicable to seed money -- -- -- -- -- -------- ----------- ----------- ---------- ---------- Total net assets $467,842 $48,248,557 $50,351,755 $ 842,294 $1,189,608 ======== =========== =========== ========== ========== Accumulation units outstanding 694,276 71,819,842 75,488,735 1,048,190 1,483,019 ======= ========== ========== ========= ========= Net asset value per accumulation unit $ 0.67 $ 0.67 $ 0.67 $ 0.80 $ 0.80 ======== =========== =========== ========== ==========
Segregated Asset Subaccounts December 31, 2002 (continued) 3MC 2MC 1MC 5MC 4MC Assets Investments in shares of mutual funds and portfolios: at cost $634,944 $75,794,397 $62,803,045 $2,607,739 $2,860,322 -------- ----------- ----------- ---------- ---------- at market value $587,651 $72,845,282 $61,488,264 $2,464,248 $2,644,281 Dividends receivable -- -- -- -- -- Accounts receivable from IDS Life for contract purchase payments -- 104,297 75,990 35,043 -- Receivable from mutual funds and portfolios for share redemptions 1,200 47,194 50,314 2,056 3,044 -------- ----------- ----------- ---------- ---------- Total assets 588,851 72,996,773 61,614,568 2,501,347 2,647,325 ======= ========== ========== ========= ========= Liabilities Payable to IDS Life for: Mortality and expense risk fee 275 47,194 50,314 2,056 2,703 Contract terminations 925 -- -- -- 341 Payable to mutual funds and portfolios for investments purchased -- 104,297 75,990 35,043 -- -------- ----------- ----------- ---------- ---------- Total liabilities 1,200 151,491 126,304 37,099 3,044 -------- ----------- ----------- ---------- ---------- Net assets applicable to contracts in accumulation period 587,651 72,805,558 61,311,816 2,464,248 2,644,281 Net assets applicable to contracts in payment period -- 39,724 176,448 -- -- Net assets applicable to seed money -- -- -- -- -- -------- ----------- ----------- ---------- ---------- Total net assets $587,651 $72,845,282 $61,488,264 $2,464,248 $2,644,281 ======== =========== =========== ========== ========== Accumulation units outstanding 449,654 56,079,335 47,538,674 2,583,087 2,776,737 ======= ========== ========== ========= ========= Net asset value per accumulation unit $ 1.31 $ 1.30 $ 1.29 $ 0.95 $ 0.95 ======== =========== =========== ========= =========
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 21 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Assets and Liabilities Segregated Asset Subaccounts December 31, 2002 (continued) 3FS 2FS 1FS 5FS 4FS Assets Investments in shares of mutual funds and portfolios: at cost $3,209 $5,120,695 $3,397,616 $466,228 $425,272 ------ ---------- ---------- -------- -------- at market value $2,860 $4,558,713 $3,026,234 $456,777 $386,610 Dividends receivable 19 29,918 19,900 2,972 2,541 Accounts receivable from IDS Life for contract purchase payments -- 5,188 -- 4,582 85 Receivable from mutual funds and portfolios for share redemptions 1 2,934 4,444 392 399 ------ ---------- ---------- -------- -------- Total assets 2,880 4,596,753 3,050,578 464,723 389,635 ===== ========= ========= ======= ======= Liabilities Payable to IDS Life for: Mortality and expense risk fee 1 2,934 2,433 392 400 Contract terminations -- -- 2,011 -- -- Payable to mutual funds and portfolios for investments purchased 19 35,106 19,900 7,554 2,625 ------ ---------- ---------- -------- -------- Total liabilities 20 38,040 24,344 7,946 3,025 ------ ---------- ---------- -------- -------- Net assets applicable to contracts in accumulation period 2,860 4,558,713 3,026,234 456,777 386,610 Net assets applicable to contracts in payment period -- -- -- -- -- Net assets applicable to seed money -- -- -- -- -- ------ ---------- ---------- -------- -------- Total net assets $2,860 $4,558,713 $3,026,234 $456,777 $386,610 ====== ========== ========== ======== ======== Accumulation units outstanding 3,484 5,571,814 3,709,075 526,263 446,207 ===== ========= ========= ======= ======= Net asset value per accumulation unit $ 0.82 $ 0.82 $ 0.82 $ 0.87 $ 0.87 ====== ========== ========== ======== ========
Segregated Asset Subaccounts December 31, 2002 (continued) 3TC 2TC 1TC 5TC 4TC Assets Investments in shares of mutual funds and portfolios: at cost $1,351 $2,496,585 $2,031,919 $138,761 $114,374 ------ ---------- ---------- -------- -------- at market value $1,240 $1,807,238 $1,360,238 $107,569 $87,727 Dividends receivable -- -- -- -- -- Accounts receivable from IDS Life for contract purchase payments -- 2,683 198 6,972 148 Receivable from mutual funds and portfolios for share redemptions 182 1,175 1,113 87 89 ------ ---------- ---------- -------- -------- Total assets 1,422 1,811,096 1,361,549 114,628 87,964 ===== ========= ========= ======= ====== Liabilities Payable to IDS Life for: Mortality and expense risk fee 182 1,175 1,113 87 89 Contract terminations -- -- -- -- -- Payable to mutual funds and portfolios for investments purchased -- 2,683 198 6,972 148 ------ ---------- ---------- -------- -------- Total liabilities 182 3,858 1,311 7,059 237 ------ ---------- ---------- -------- -------- Net assets applicable to contracts in accumulation period 1,240 1,807,238 1,360,238 107,569 87,727 Net assets applicable to contracts in payment period -- -- -- -- -- Net assets applicable to seed money -- -- -- -- -- ------ ---------- ---------- -------- -------- Total net assets $1,240 $1,807,238 $1,360,238 $107,569 $ 87,727 ====== ========== ========== ======== ======== Accumulation units outstanding 2,576 3,768,877 2,844,559 191,673 156,591 ===== ========= ========= ======= ======= Net asset value per accumulation unit $ 0.48 $ 0.48 $ 0.48 $ 0.56 $ 0.56 ====== ========== ========== ======== ========
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 22 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Segregated Asset Subaccounts December 31, 2002 (continued) 3MG 2MG 1MG 5MG 4MG Assets Investments in shares of mutual funds and portfolios: at cost $530,082 $52,628,771 $48,664,041 $ 951,631 $614,319 -------- ----------- ----------- ---------- -------- at market value $382,341 $33,834,025 $30,233,795 $ 825,560 $539,102 Dividends receivable -- -- -- -- -- Accounts receivable from IDS Life for contract purchase payments -- -- 33,097 5,109 7,273 Receivable from mutual funds and portfolios for share redemptions 178 77,755 25,068 687 551 -------- ----------- ----------- ---------- -------- Total assets 382,519 33,911,780 30,291,960 831,356 546,926 ======= ========== ========== ======= ======= Liabilities Payable to IDS Life for: Mortality and expense risk fee 178 22,204 25,068 687 551 Contract terminations -- 55,551 -- -- -- Payable to mutual funds and portfolios for investments purchased -- -- 33,097 5,109 7,273 -------- ----------- ----------- ---------- -------- Total liabilities 178 77,755 58,165 5,796 7,824 -------- ----------- ----------- ---------- -------- Net assets applicable to contracts in accumulation period 382,341 33,703,372 30,192,889 825,560 539,102 Net assets applicable to contracts in payment period -- 130,653 40,906 -- -- Net assets applicable to seed money -- -- -- -- -- -------- ----------- ----------- ---------- -------- Total net assets $382,341 $33,834,025 $30,233,795 $ 825,560 $539,102 ======== =========== =========== ========== ======== Accumulation units outstanding 785,044 69,576,415 62,662,560 1,087,891 711,527 ======= ========== ========== ========= ======= Net asset value per accumulation unit $ 0.49 $ 0.48 $ 0.48 $ 0.76 $ 0.76 ======== =========== =========== ========== ========
Segregated Asset Subaccounts December 31, 2002 (continued) 3MD 2MD 1MD 5MD 4MD Assets Investments in shares of mutual funds and portfolios: at cost $388,228 $50,668,754 $46,522,104 $1,776,200 $1,537,646 -------- ----------- ----------- ---------- ---------- at market value $297,200 $36,167,112 $32,375,226 $1,526,747 $1,287,511 Dividends receivable -- -- -- -- -- Accounts receivable from IDS Life for contract purchase payments 49 44,170 54,940 -- 5,246 Receivable from mutual funds and portfolios for share redemptions 138 23,439 26,782 16,840 1,327 -------- ----------- ----------- ---------- ---------- Total assets 297,387 36,234,721 32,456,948 1,543,587 1,294,084 ======= ========== ========== ========= ========= Liabilities Payable to IDS Life for: Mortality and expense risk fee 138 23,439 26,782 1,315 1,327 Contract terminations -- -- -- 15,525 -- Payable to mutual funds and portfolios for investments purchased 49 44,170 54,940 -- 5,246 -------- ----------- ----------- ---------- ---------- Total liabilities 187 67,609 81,722 16,840 6,573 -------- ----------- ----------- ---------- ---------- Net assets applicable to contracts in accumulation period 297,200 36,123,785 32,360,327 1,526,747 1,287,511 Net assets applicable to contracts in payment period -- 43,327 14,899 -- -- Net assets applicable to seed money -- -- -- -- -- -------- ----------- ----------- ---------- ---------- Total net assets $297,200 $36,167,112 $32,375,226 $1,526,747 $1,287,511 ======== =========== =========== ========== ========== Accumulation units outstanding 485,070 59,272,471 53,383,319 2,111,723 1,783,862 ======= ========== ========== ========= ========= Net asset value per accumulation unit $ 0.61 $ 0.61 $ 0.61 $ 0.72 $ 0.72 ======== =========== =========== ========== ==========
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 23 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Assets and Liabilities Segregated Asset Subaccounts December 31, 2002 (continued) 3UT 2UT 1UT 5UT 4UT Assets Investments in shares of mutual funds and portfolios: at cost $124,284 $ 8,287,983 $5,700,977 $246,032 $406,030 -------- ----------- ---------- -------- -------- at market value $ 95,219 $ 7,194,077 $4,853,128 $234,603 $365,983 Dividends receivable -- -- -- -- -- Accounts receivable from IDS Life for contract purchase payments -- 6,916 -- 20 24 Receivable from mutual funds and portfolios for share redemptions 46 4,637 4,141 204 371 -------- ----------- ---------- -------- -------- Total assets 95,265 7,205,630 4,857,269 234,827 366,378 ====== ========= ========= ======= ======= Liabilities Payable to IDS Life for: Mortality and expense risk fee 46 4,637 3,910 204 371 Contract terminations -- -- 231 -- -- Payable to mutual funds and portfolios for investments purchased -- 6,916 -- 20 24 -------- ----------- ---------- -------- -------- Total liabilities 46 11,553 4,141 224 395 -------- ----------- ---------- -------- -------- Net assets applicable to contracts in accumulation period 95,219 7,194,077 4,826,458 234,603 365,983 Net assets applicable to contracts in payment period -- -- 26,670 -- -- Net assets applicable to seed money -- -- -- -- -- -------- ----------- ---------- -------- -------- Total net assets $ 95,219 $ 7,194,077 $4,853,128 $234,603 $365,983 ======== =========== ========== ======== ======== Accumulation units outstanding 139,161 10,543,457 7,093,279 275,519 430,620 ======= ========== ========= ======= ======= Net asset value per accumulation unit $ 0.68 $ 0.68 $ 0.68 $ 0.85 $ 0.85 ======== =========== ========== ======== ========
Segregated Asset Subaccounts December 31, 2002 (continued) 3HS 2HS 1HS 5HS 4HS Assets Investments in shares of mutual funds and portfolios: at cost $141,588 $ 9,982,943 $5,842,745 $546,437 $525,055 -------- ----------- ---------- -------- -------- at market value $112,740 $ 8,862,644 $5,089,749 $497,167 $468,927 Dividends receivable -- -- -- -- -- Accounts receivable from IDS Life for contract purchase payments -- 29,618 -- 5,539 63 Receivable from mutual funds and portfolios for share redemptions 54 5,665 9,007 417 483 -------- ----------- ---------- -------- -------- Total assets 112,794 8,897,927 5,098,756 503,123 469,473 ======= ========= ========= ======= ======= Liabilities Payable to IDS Life for: Mortality and expense risk fee 54 5,665 4,072 417 483 Contract terminations -- -- 4,935 -- -- Payable to mutual funds and portfolios for investments purchased -- 29,618 -- 5,539 63 -------- ----------- ---------- -------- -------- Total liabilities 54 35,283 9,007 5,956 546 -------- ----------- ---------- -------- -------- Net assets applicable to contracts in accumulation period 112,740 8,862,644 5,089,749 497,167 468,927 Net assets applicable to contracts in payment period -- -- -- -- -- Net assets applicable to seed money -- -- -- -- -- -------- ----------- ---------- -------- -------- Total net assets $112,740 $ 8,862,644 $5,089,749 $497,167 $468,927 ======== =========== ========== ======== ======== Accumulation units outstanding 144,808 11,415,725 6,574,222 617,256 583,153 ======= ========== ========= ======= ======= Net asset value per accumulation unit $ 0.78 $ 0.78 $ 0.77 $ 0.81 $ 0.80 ======== =========== ========== ======== ========
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 24 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Assets and Liabilities Segregated Asset Subaccounts December 31, 2002 (continued) 3PI 2PI 1PI 5PI 4PI Assets Investments in shares of mutual funds and portfolios: at cost $686,120 $18,098,750 $13,100,472 $1,931,507 $1,307,824 -------- ----------- ----------- ---------- ---------- at market value $693,574 $16,304,433 $11,848,515 $1,793,791 $1,194,995 Dividends receivable -- -- -- -- -- Accounts receivable from IDS Life for contract purchase payments -- 50,960 36,363 10,906 17,689 Receivable from mutual funds and portfolios for share redemptions 288 10,269 9,397 1,493 1,201 -------- ----------- ----------- ---------- ---------- Total assets 693,862 16,365,662 11,894,275 1,806,190 1,213,885 ======= ========== ========== ========= ========= Liabilities Payable to IDS Life for: Mortality and expense risk fee 288 10,269 9,397 1,493 1,201 Contract terminations -- -- -- -- -- Payable to mutual funds and portfolios for investments purchased -- 50,960 36,363 10,906 17,689 -------- ----------- ----------- ---------- ---------- Total liabilities 288 61,229 45,760 12,399 18,890 -------- ----------- ----------- ---------- ---------- Net assets applicable to contracts in accumulation period 693,574 16,304,433 11,848,515 1,793,791 1,194,995 Net assets applicable to contracts in payment period -- -- -- -- -- Net assets applicable to seed money -- -- -- -- -- -------- ----------- ----------- ---------- ---------- Total net assets $693,574 $16,304,433 $11,848,515 $1,793,791 $1,194,995 ======== =========== =========== ========== ========== Accumulation units outstanding 881,161 20,772,705 15,137,852 2,086,004 1,392,095 ======= ========== ========== ========= ========= Net asset value per accumulation unit $ 0.79 $ 0.78 $ 0.78 $ 0.86 $ 0.86 ======== =========== =========== ========== ==========
Segregated Asset Subaccounts December 31, 2002 (continued) 3VS 2VS 1VS 5VS 4VS Assets Investments in shares of mutual funds and portfolios: at cost $641,783 $96,774,996 $104,881,721 $224,461 $152,839 -------- ----------- ------------ -------- -------- at market value $310,130 $42,343,162 $ 43,207,781 $194,920 $140,170 Dividends receivable -- -- -- -- -- Accounts receivable from IDS Life for contract purchase payments 65 -- -- 6,653 92 Receivable from mutual funds and portfolios for share redemptions 151 37,331 58,530 159 146 -------- ----------- ------------ -------- -------- Total assets 310,346 42,380,493 43,266,311 201,732 140,408 ======= ========== ========== ======= ======= Liabilities Payable to IDS Life for: Mortality and expense risk fee 151 27,890 36,338 159 146 Contract terminations -- 9,441 22,192 -- -- Payable to mutual funds and portfolios for investments purchased 65 -- -- 6,653 92 -------- ----------- ------------ -------- -------- Total liabilities 216 37,331 58,530 6,812 238 -------- ----------- ------------ -------- -------- Net assets applicable to contracts in accumulation period 310,130 42,265,844 43,094,099 194,920 140,170 Net assets applicable to contracts in payment period -- 77,318 113,682 -- -- Net assets applicable to seed money -- -- -- -- -- -------- ----------- ------------ -------- -------- Total net assets $310,130 $42,343,162 $ 43,207,781 $194,920 $140,170 ======== =========== ============ ======== ======== Accumulation units outstanding 524,988 72,032,593 73,929,757 267,112 192,412 ======= ========== ========== ======= ======= Net asset value per accumulation unit $ 0.59 $ 0.59 $ 0.58 $ 0.73 $ 0.73 ======== =========== ============ ======== ========
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 25 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Assets and Liabilities Segregated Asset Subaccounts December 31, 2002 (continued) 3SO 2SO 1SO 5SO 4SO Assets Investments in shares of mutual funds and portfolios: at cost $295,340 $22,592,562 $15,655,996 $2,033,015 $1,834,108 -------- ----------- ----------- ---------- ---------- at market value $226,551 $18,291,026 $12,297,078 $1,752,418 $1,483,667 Dividends receivable -- -- -- -- -- Accounts receivable from IDS Life for contract purchase payments 5 15,060 22,576 871 8,917 Receivable from mutual funds and portfolios for share redemptions 103 11,863 10,096 1,493 1,567 -------- ----------- ----------- ---------- ---------- Total assets 226,659 18,317,949 12,329,750 1,754,782 1,494,151 ======= ========== ========== ========= ========= Liabilities Payable to IDS Life for: Mortality and expense risk fee 103 11,863 10,096 1,493 1,567 Contract terminations -- -- -- -- -- Payable to mutual funds and portfolios for investments purchased 5 15,060 22,576 871 8,917 -------- ----------- ----------- ---------- ---------- Total liabilities 108 26,923 32,672 2,364 10,484 -------- ----------- ----------- ---------- ---------- Net assets applicable to contracts in accumulation period 226,551 18,252,232 12,276,822 1,752,418 1,483,667 Net assets applicable to contracts in payment period -- 38,794 20,256 -- -- Net assets applicable to seed money -- -- -- -- -- -------- ----------- ----------- ---------- ---------- Total net assets $226,551 $18,291,026 $12,297,078 $1,752,418 $1,483,667 ======== =========== =========== ========== ========== Accumulation units outstanding 314,349 25,396,635 17,129,844 2,340,277 1,984,910 ======= ========== ========== ========= ========= Net asset value per accumulation unit $ 0.72 $ 0.72 $ 0.72 $ 0.75 $ 0.75 ======== =========== =========== ========== ==========
Segregated Asset Subaccounts December 31, 2002 (continued) 3IT 2IT 1IT 5IT 4IT Assets Investments in shares of mutual funds and portfolios: at cost $1,056,488 $54,627,197 $56,318,783 $1,371,988 $ 977,184 ---------- ----------- ----------- ---------- ---------- at market value $1,082,377 $31,617,592 $30,548,546 $1,326,843 $ 917,352 Dividends receivable -- -- -- -- -- Accounts receivable from IDS Life for contract purchase payments -- 95,115 83,364 14,019 592 Receivable from mutual funds and portfolios for share redemptions 464 20,560 25,291 1,088 906 ---------- ----------- ----------- ---------- ---------- Total assets 1,082,841 31,733,267 30,657,201 1,341,950 918,850 ========= ========== ========== ========= ======= Liabilities Payable to IDS Life for: Mortality and expense risk fee 464 20,560 25,291 1,088 906 Contract terminations -- -- -- -- -- Payable to mutual funds and portfolios for investments purchased -- 95,115 83,364 14,019 592 ---------- ----------- ----------- ---------- ---------- Total liabilities 464 115,675 108,655 15,107 1,498 ---------- ----------- ----------- ---------- ---------- Net assets applicable to contracts in accumulation period 1,082,377 31,560,711 30,456,523 1,326,843 917,352 Net assets applicable to contracts in payment period -- 56,881 92,023 -- -- Net assets applicable to seed money -- -- -- -- -- ---------- ----------- ----------- ---------- ---------- Total net assets $1,082,377 $31,617,592 $30,548,546 $1,326,843 $ 917,352 ========== =========== =========== ========== ========== Accumulation units outstanding 1,483,880 43,554,002 42,308,837 1,523,249 1,054,991 ========= ========== ========== ========= ========= Net asset value per accumulation unit $ 0.73 $ 0.72 $ 0.72 $ 0.87 $ 0.87 ========== =========== =========== ========== ==========
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 26 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Assets and Liabilities Segregated Asset Subaccounts December 31, 2002 (continued) 3SP 2SP 1SP 5SP 4SP Assets Investments in shares of mutual funds and portfolios: at cost $893,932 $83,474,024 $77,745,653 $3,331,376 $2,920,626 -------- ----------- ----------- ---------- ---------- at market value $818,631 $75,035,838 $69,472,375 $3,171,726 $2,655,756 Dividends receivable -- -- -- -- -- Accounts receivable from IDS Life for contract purchase payments 6,834 20,362 43,654 20,407 15,376 Receivable from mutual funds and portfolios for share redemptions 379 48,787 57,328 2,660 2,715 -------- ----------- ----------- ---------- ---------- Total assets 825,844 75,104,987 69,573,357 3,194,793 2,673,847 ======= ========== ========== ========= ========= Liabilities Payable to IDS Life for: Mortality and expense risk fee 379 48,787 57,328 2,660 2,715 Contract terminations -- -- -- -- -- Payable to mutual funds and portfolios for investments purchased 6,834 20,362 43,654 20,407 15,376 -------- ----------- ----------- ---------- ---------- Total liabilities 7,213 69,149 100,982 23,067 18,091 -------- ----------- ----------- ---------- ---------- Net assets applicable to contracts in accumulation period 816,189 74,993,825 69,306,345 3,171,726 2,655,756 Net assets applicable to contracts in payment period 2,442 42,013 166,030 -- -- Net assets applicable to seed money -- -- -- -- -- -------- ----------- ----------- ---------- ---------- Total net assets $818,631 $75,035,838 $69,472,375 $3,171,726 $2,655,756 ======== =========== =========== ========== ========== Accumulation units outstanding 846,698 78,311,083 72,852,973 3,732,304 3,130,677 ======= ========== ========== ========= ========= Net asset value per accumulation unit $ 0.96 $ 0.96 $ 0.95 $ 0.85 $ 0.85 ======== =========== =========== ========== ==========
Segregated Asset Subaccounts December 31, 2002 (continued) 3IP 2IP 1IP 5IP 4IP Assets Investments in shares of mutual funds and portfolios: at cost $417,532 $23,721,864 $23,886,769 $472,311 $552,625 -------- ----------- ----------- -------- -------- at market value $410,768 $19,063,340 $18,542,571 $459,707 $520,526 Dividends receivable -- -- -- -- -- Accounts receivable from IDS Life for contract purchase payments -- 60,937 55,147 5,278 2,647 Receivable from mutual funds and portfolios for share redemptions 178 12,262 15,054 369 520 -------- ----------- ----------- -------- -------- Total assets 410,946 19,136,539 18,612,772 465,354 523,693 ======= ========== ========== ======= ======= Liabilities Payable to IDS Life for: Mortality and expense risk fee 178 12,262 15,054 369 520 Contract terminations -- -- -- -- -- Payable to mutual funds and portfolios for investments purchased -- 60,937 55,147 5,278 2,647 -------- ----------- ----------- -------- -------- Total liabilities 178 73,199 70,201 5,647 3,167 -------- ----------- ----------- -------- -------- Net assets applicable to contracts in accumulation period 410,768 18,961,181 18,404,290 459,707 520,526 Net assets applicable to contracts in payment period -- 102,159 138,281 -- -- Net assets applicable to seed money -- -- -- -- -- -------- ----------- ----------- -------- -------- Total net assets $410,768 $19,063,340 $18,542,571 $459,707 $520,526 ======== =========== =========== ======== ======== Accumulation units outstanding 635,602 29,531,927 28,853,362 499,387 566,444 ======= ========== ========== ======= ======= Net asset value per accumulation unit $ 0.65 $ 0.64 $ 0.64 $ 0.92 $ 0.92 ======== =========== =========== ======== ========
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 27 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Operations Segregated Asset Subaccounts Period ended December 31, 2002 CR3 CR2 CR1 CR5(1) CR4(1) Investment income Dividend income from mutual funds and portfolios $ 784 $ 138,189 $ 99,448 $ 713 $ 163 Variable account expenses 1,027 180,944 173,496 1,148 309 ----- ------- ------- ----- --- Investment income (loss) -- net (243) (42,755) (74,048) (435) (146) ==== ======= ======= ==== ==== Realized and unrealized gain (loss) on investments -- net Realized gain (loss) on sales of investments in mutual funds and portfolios: Proceeds from sales 3,473,104 1,676,941 3,016,713 62,378 70,320 Cost of investments sold 3,493,950 2,587,011 5,032,404 66,673 73,612 --------- --------- --------- ------ ------ Net realized gain (loss) on sales of investments (20,846) (910,070) (2,015,691) (4,295) (3,292) Distributions from capital gains 15,738 1,518,493 1,484,998 -- 2 Net change in unrealized appreciation or depreciation of investments (6,954) (6,406,494) (4,059,077) (14,865) (4,750) ------ ---------- ---------- ------- ------ Net gain (loss) on investments (12,062) (5,798,071) (4,589,770) (19,160) (8,040) ------- ---------- ---------- ------- ------ Net increase (decrease) in net assets resulting from operations $ (12,305) $(5,840,826) $(4,663,818) $(19,595) $(8,186) ========== =========== =========== ======== =======
Segregated Asset Subaccounts Period ended December 31, 2002 (continued) CM3 CM2 CM1 CM5(1) CM4(1) Investment income Dividend income from mutual funds and portfolios $ 80,209 $ 3,146,596 $ 3,052,650 $ 63,422 $ 73,441 Variable account expenses 37,643 2,043,044 2,490,223 59,602 81,696 ------ --------- --------- ------ ------ Investment income (loss) -- net 42,566 1,103,552 562,427 3,820 (8,255) ====== ========= ======= ===== ====== Realized and unrealized gain (loss) on investments -- net Realized gain (loss) on sales of investments in mutual funds and portfolios: Proceeds from sales 201,164,166 84,862,411 111,192,272 6,484,989 9,746,495 Cost of investments sold 201,164,176 84,868,112 111,202,553 6,484,989 9,746,503 ----------- ---------- ----------- --------- --------- Net realized gain (loss) on sales of investments (10) (5,701) (10,281) -- (8) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 9 5,691 10,272 -- -- ----------- ---------- ----------- --------- --------- Net gain (loss) on investments (1) (10) (9) -- (8) ----------- ---------- ----------- --------- --------- Net increase (decrease) in net assets resulting from operations $ 42,565 $ 1,103,542 $ 562,418 $ 3,820 $ (8,263) ============ =========== ============ ========== ==========
Segregated Asset Subaccounts Period ended December 31, 2002 (continued) BD3 BD2 BD1 BD5(1) BD4(1) Investment income Dividend income from mutual funds and portfolios $ 36,196 $7,090,994 $7,611,085 $ 137,056 $133,126 Variable account expenses 3,750 1,045,293 1,425,660 26,152 30,825 ---------- ---------- ---------- ---------- -------- Investment income (loss) -- net 32,446 6,045,701 6,185,425 110,904 102,301 ========== ========== ========== ========== ======== Realized and unrealized gain (loss) on investments -- net Realized gain (loss) on sales of investments in mutual funds and portfolios: Proceeds from sales 6,675,424 2,341,529 3,687,765 1,401,527 339,801 Cost of investments sold 6,679,233 2,361,776 3,718,827 1,398,076 339,360 ---------- ---------- ---------- ---------- -------- Net realized gain (loss) on sales of investments (3,809) (20,247) (31,062) 3,451 441 Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 17,554 1,390,239 1,152,469 102,258 89,731 ---------- ---------- ---------- ---------- -------- Net gain (loss) on investments 13,745 1,369,992 1,121,407 105,709 90,172 ---------- ---------- ---------- ---------- -------- Net increase (decrease) in net assets resulting from operations $ 46,191 $7,415,693 $7,306,832 $ 216,613 $192,473 ========== ========== ========== ========== ========
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 28 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Operations Segregated Asset Subaccounts Period ended December 31, 2002 (continued) DE3 DE2 DE1 DE5(1) DE4(1) Investment income Dividend income from mutual funds and portfolios $ 10,775 $ 983,788 $ 816,927 $ 21,129 $ 16,438 Variable account expenses 2,926 454,148 486,959 11,187 11,001 ----------- ------------ ------------ --------- --------- Investment income (loss) -- net 7,849 529,640 329,968 9,942 5,437 =========== ============ ============ ========= ========= Realized and unrealized gain (loss) on investments -- net Realized gain (loss) on sales of investments in mutual funds and portfolios: Proceeds from sales 14,676,397 1,031,171 1,917,970 102,153 179,391 Cost of investments sold 14,810,456 1,230,349 2,283,918 112,304 221,271 ----------- ------------ ------------ --------- --------- Net realized gain (loss) on sales of investments (134,059) (199,178) (365,948) (10,151) (41,880) Distributions from capital gains 1,303 176,946 167,098 2 -- Net change in unrealized appreciation or depreciation of investments (3,499) (14,847,317) (12,178,448) (267,908) (260,421) ----------- ------------ ------------ --------- --------- Net gain (loss) on investments (136,255) (14,869,549) (12,377,298) (278,057) (302,301) ----------- ------------ ------------ --------- --------- Net increase (decrease) in net assets resulting from operations $ (128,406) $(14,339,909) $(12,047,330) $(268,115) $(296,864) =========== ============ ============ ========= =========
Segregated Asset Subaccounts Period ended December 31, 2002 (continued) EM3 EM2 EM1 EM5(1) EM4(1) Investment income Dividend income from mutual funds and portfolios $ -- $ -- $ -- $ -- $ -- Variable account expenses 20,414 17,726 18,044 830 811 --------- --------- --------- -------- -------- Investment income (loss) -- net (20,414) (17,726) (18,044) (830) (811) ========= ========= ========= ======== ======== Realized and unrealized gain (loss) on investments -- net Realized gain (loss) on sales of investments in mutual funds and portfolios: Proceeds from sales 537,090 276,438 530,179 34,682 22,891 Cost of investments sold 641,316 292,392 546,184 37,466 26,185 --------- --------- --------- -------- -------- Net realized gain (loss) on sales of investments (104,226) (15,954) (16,005) (2,784) (3,294) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments (85,109) (252,312) (166,342) (7,889) (9,359) --------- --------- --------- -------- -------- Net gain (loss) on investments (189,335) (268,266) (182,347) (10,673) (12,653) --------- --------- --------- -------- -------- Net increase (decrease) in net assets resulting from operations $(209,749) $(285,992) $(200,391) $(11,503) $(13,464) ========= ========= ========= ======== ========
Segregated Asset Subaccounts Period ended December 31, 2002 (continued) ES3 ES2 ES1 ES5(1) ES4(1) Investment income Dividend income from mutual funds and portfolios $ -- $ -- $ -- $ -- $ -- Variable account expenses 10,679 54,808 48,361 3,597 3,752 --------- --------- --------- -------- -------- Investment income (loss) -- net (10,679) (54,808) (48,361) (3,597) (3,752) ========= ========= ========= ======== ======== Realized and unrealized gain (loss) on investments -- net Realized gain (loss) on sales of investments in mutual funds and portfolios: Proceeds from sales 631,854 273,872 216,100 24,848 117,308 Cost of investments sold 633,744 288,962 233,527 25,850 126,300 --------- --------- --------- -------- -------- Net realized gain (loss) on sales of investments (1,890) (15,090) (17,427) (1,002) (8,992) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments (286,993) (924,791) (585,605) (28,933) (28,332) --------- --------- --------- -------- -------- Net gain (loss) on investments (288,883) (939,881) (603,032) (29,935) (37,324) --------- --------- --------- -------- -------- Net increase (decrease) in net assets resulting from operations $(299,562) $(994,689) $(651,393) $(33,532) $(41,076) ========= ========= ========= ======== ========
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 29 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Operations Segregated Asset Subaccounts Period ended December 31, 2002 (continued) GB3 GB2 GB1 GB5(1) GB4(1) Investment income Dividend income from mutual funds and portfolios $ 19,857 $1,198,530 $1,489,414 $18,698 $ 36,136 Variable account expenses 2,173 189,495 301,042 3,956 8,890 ---------- ---------- ---------- ------- -------- Investment income (loss) -- net 17,684 1,009,035 1,188,372 14,742 27,246 ========== ========== ========== ======= ======== Realized and unrealized gain (loss) on investments -- net Realized gain (loss) on sales of investments in mutual funds and portfolios: Proceeds from sales 2,830,358 1,297,101 2,797,306 96,060 60,455 Cost of investments sold 2,814,930 1,264,756 2,723,619 94,660 58,685 ---------- ---------- ---------- ------- -------- Net realized gain (loss) on sales of investments 15,428 32,345 73,687 1,400 1,770 Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 14,834 2,629,912 3,149,519 57,109 99,985 ---------- ---------- ---------- ------- -------- Net gain (loss) on investments 30,262 2,662,257 3,223,206 58,509 101,755 ---------- ---------- ---------- ------- -------- Net increase (decrease) in net assets resulting from operations $ 47,946 $3,671,292 $4,411,578 $73,251 $129,001 ========== ========== ========== ======= ========
Segregated Asset Subaccounts Period ended December 31, 2002 (continued) GR3 GR2 GR1 GR5(1) GR4(1) Investment income Dividend income from mutual funds and portfolios $ 412 $ 51,256 $ 44,879 $ 465 $ 203 Variable account expenses 3,755 532,035 630,907 2,522 1,462 ---------- ------------ ------------ -------- -------- Investment income (loss) -- net (3,343) (480,779) (586,028) (2,057) (1,259) ========== ============ ============ ======== ======== Realized and unrealized gain (loss) on investments -- net Realized gain (loss) on sales of investments in mutual funds and portfolios: Proceeds from sales 977,913 5,022,777 10,680,020 52,222 4,552 Cost of investments sold 1,261,846 10,189,598 22,079,264 55,078 4,930 ---------- ------------ ------------ -------- -------- Net realized gain (loss) on sales of investments (283,933) (5,166,821) (11,399,244) (2,856) (378) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 29,442 (17,529,137) (10,217,973) (44,758) (28,500) ---------- ------------ ------------ -------- -------- Net gain (loss) on investments (254,491) (22,695,958) (21,617,217) (47,614) (28,878) ---------- ------------ ------------ -------- -------- Net increase (decrease) in net assets resulting from operations $ (257,834) $(23,176,737) $(22,203,245) $(49,671) $(30,137) ========== ============ ============ ======== ========
Segregated Asset Subaccounts Period ended December 31, 2002 (continued) EI3 EI2 EI1 EI5(1) EI4(1) Investment income Dividend income from mutual funds and portfolios $ 121,580 $ 5,336,390 $ 7,282,044 $ 119,165 $ 129,342 Variable account expenses 9,062 517,492 891,899 16,243 21,084 ----------- ----------- ------------ --------- --------- Investment income (loss) -- net 112,518 4,818,898 6,390,145 102,922 108,258 =========== =========== ============ ========= ========= Realized and unrealized gain (loss) on investments -- net Realized gain (loss) on sales of investments in mutual funds and portfolios: Proceeds from sales 34,293,082 2,460,506 4,602,758 223,097 177,201 Cost of investments sold 34,460,817 2,954,332 5,724,752 237,998 186,042 ----------- ----------- ------------ --------- --------- Net realized gain (loss) on sales of investments (167,735) (493,826) (1,121,994) (14,901) (8,841) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 11,888 (9,179,710) (12,316,535) (127,087) (129,692) ----------- ----------- ------------ --------- --------- Net gain (loss) on investments (155,847) (9,673,536) (13,438,529) (141,988) (138,533) ----------- ----------- ------------ --------- --------- Net increase (decrease) in net assets resulting from operations $ (43,329) $(4,854,638) $ (7,048,384) $ (39,066) $ (30,275) =========== =========== ============ ========= =========
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 30 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Operations Segregated Asset Subaccounts Period ended December 31, 2002 (continued) IE3 IE2 IE1 IE5(1) IE4(1) Investment income Dividend income from mutual funds and portfolios $ 4,288 $ 106,448 $ 104,305 $ 275 $ 323 Variable account expenses 3,397 80,133 104,736 237 413 ----------- ------------ ------------ -------- -------- Investment income (loss) -- net 891 26,315 (431) 38 (90) =========== ============ ============ ======== ======== Realized and unrealized gain (loss) on investments -- net Realized gain (loss) on sales of investments in mutual funds and portfolios: Proceeds from sales 87,048,601 6,100,176 7,961,650 19,142 49,658 Cost of investments sold 86,136,509 10,082,744 12,496,128 20,768 52,759 ----------- ------------ ------------ -------- -------- Net realized gain (loss) on sales of investments 912,092 (3,982,568) (4,534,478) (1,626) (3,101) Distributions from capital gains 82 20,548 24,316 -- 1 Net change in unrealized appreciation or depreciation of investments 2,013 1,720,801 2,327,173 (3,452) (4,388) ----------- ------------ ------------ -------- -------- Net gain (loss) on investments 914,187 (2,241,219) (2,182,989) (5,078) (7,488) ----------- ------------ ------------ -------- -------- Net increase (decrease) in net assets resulting from operations $ 915,078 $ (2,214,904) $ (2,183,420) $ (5,040) $ (7,578) =========== ============ ============ ======== ========
Segregated Asset Subaccounts Period ended December 31, 2002 (continued) MF3 MF2 MF1 MF5(1) MF4(1) Investment income Dividend income from mutual funds and portfolios $ 5,079 $ 1,168,860 $ 1,230,281 $ 5,830 $ 6,267 Variable account expenses 1,096 318,848 443,770 1,931 2,318 --------- ----------- ----------- --------- --------- Investment income (loss) -- net 3,983 850,012 786,511 3,899 3,949 ========= =========== =========== ========= ========= Realized and unrealized gain (loss) on investments -- net Realized gain (loss) on sales of investments in mutual funds and portfolios: Proceeds from sales 363,319 2,572,891 5,426,292 141,173 111,676 Cost of investments sold 414,541 3,396,909 7,603,873 147,509 115,364 --------- ----------- ----------- --------- --------- Net realized gain (loss) on sales of investments (51,222) (824,018) (2,177,581) (6,336) (3,688) Distributions from capital gains 20,944 3,229,895 4,109,822 4,877 4,462 Net change in unrealized appreciation or depreciation of investments (8,418) (9,041,112) (9,529,068) (22,109) (23,816) --------- ----------- ----------- --------- --------- Net gain (loss) on investments (38,696) (6,635,235) (7,596,827) (23,568) (23,042) --------- ----------- ----------- --------- --------- Net increase (decrease) in net assets resulting from operations $ (34,713) $(5,785,223) $(6,810,316) $ (19,669) $ (19,093) ========= =========== =========== ========= =========
Segregated Asset Subaccounts Period ended December 31, 2002 (continued) ND3 ND2 ND1 ND5(1) ND4(1) Investment income Dividend income from mutual funds and portfolios $ 11,439 $ 1,305,279 $ 1,293,133 $ 13,022 $ 11,342 Variable account expenses 12,237 1,878,621 2,388,563 21,763 23,825 ---------- ------------ ------------ --------- --------- Investment income (loss) -- net (798) (573,342) (1,095,430) (8,741) (12,483) ========== ============ ============ ========= ========= Realized and unrealized gain (loss) on investments -- net Realized gain (loss) on sales of investments in mutual funds and portfolios: Proceeds from sales 5,748,826 5,640,326 14,389,345 185,566 184,073 Cost of investments sold 6,182,811 8,559,585 22,268,068 191,333 208,722 ---------- ------------ ------------ --------- --------- Net realized gain (loss) on sales of investments (433,985) (2,919,259) (7,878,723) (5,767) (24,649) Distributions from capital gains 2,613 229,075 249,762 48 48 Net change in unrealized appreciation or depreciation of investments (148,644) (62,280,465) (57,715,115) (521,615) (523,988) ---------- ------------ ------------ --------- --------- Net gain (loss) on investments (580,016) (64,970,649) (65,344,076) (527,334) (548,589) ---------- ------------ ------------ --------- --------- Net increase (decrease) in net assets resulting from operations $ (580,814) $(65,543,991) $(66,439,506) $(536,075) $(561,072) ========== ============ ============ ========= =========
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 31 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Operations Segregated Asset Subaccounts Period ended December 31, 2002 (continued) SV3 SV2 SV1 SV5(1) SV4(1) Investment income Dividend income from mutual funds and portfolios $ 4,960 $ 45,293 $ 28,367 $ 3,094 $ 2,603 Variable account expenses 25,281 187,615 164,183 12,653 14,484 --------- ----------- ----------- --------- --------- Investment income (loss) -- net (20,321) (142,322) (135,816) (9,559) (11,881) ========= =========== =========== ========= ========= Realized and unrealized gain (loss) on investments -- net Realized gain (loss) on sales of investments in mutual funds and portfolios: Proceeds from sales 30,103 198,316 1,342,323 167,846 93,470 Cost of investments sold 29,109 211,675 1,404,846 181,889 104,254 --------- ----------- ----------- --------- --------- Net realized gain (loss) on sales of investments 994 (13,359) (62,523) (14,043) (10,784) Distributions from capital gains 17,888 159,932 101,010 11,051 9,064 Net change in unrealized appreciation or depreciation of investments (608,764) (4,882,493) (2,894,370) (254,613) (305,019) --------- ----------- ----------- --------- --------- Net gain (loss) on investments (589,882) (4,735,920) (2,855,883) (257,605) (306,739) --------- ----------- ----------- --------- --------- Net increase (decrease) in net assets resulting from operations $(610,203) $(4,878,242) $(2,991,699) $(267,164) $(318,620) ========= =========== =========== ========= =========
Segregated Asset Subaccounts Period ended December 31, 2002 (continued) IV3 IV2 IV1 IV5(1) IV4(1) Investment income Dividend income from mutual funds and portfolios $ 5,348 $ 340,138 $ 352,380 $ 7,545 $ 7,128 Variable account expenses 3,055 252,358 337,690 5,852 7,022 --------- ----------- ----------- --------- --------- Investment income (loss) -- net 2,293 87,780 14,690 1,693 106 ========= =========== =========== ========= ========= Realized and unrealized gain (loss) on investments -- net Realized gain (loss) on sales of investments in mutual funds and portfolios: Proceeds from sales 401,047 2,267,091 2,316,845 55,720 59,148 Cost of investments sold 535,717 3,021,641 2,986,095 60,597 68,390 --------- ----------- ----------- --------- --------- Net realized gain (loss) on sales of investments (134,670) (754,550) (669,250) (4,877) (9,242) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments (7,021) (8,268,536) (8,957,858) (116,993) (132,736) --------- ----------- ----------- --------- --------- Net gain (loss) on investments (141,691) (9,023,086) (9,627,108) (121,870) (141,978) --------- ----------- ----------- --------- --------- Net increase (decrease) in net assets resulting from operations $(139,398) $(8,935,306) $(9,612,418) $(120,177) $(141,872) ========= =========== =========== ========= =========
Segregated Asset Subaccounts Period ended December 31, 2002 (continued) FI3 FI2 FI1 FI5(1) FI4(1) Investment income Dividend income from mutual funds and portfolios $ 23,677 $2,768,741 $ 2,632,265 $ 67,258 $ 95,918 Variable account expenses 4,461 723,504 879,121 22,758 38,563 ---------- ---------- ----------- -------- ---------- Investment income (loss) -- net 19,216 2,045,237 1,753,144 44,500 57,355 ========== ========== =========== ======== ========== Realized and unrealized gain (loss) on investments -- net Realized gain (loss) on sales of investments in mutual funds and portfolios: Proceeds from sales 1,014,227 5,513,936 11,226,795 473,078 1,035,422 Cost of investments sold 1,013,628 5,449,565 11,035,544 470,159 1,027,948 ---------- ---------- ----------- -------- ---------- Net realized gain (loss) on sales of investments 599 64,371 191,251 2,919 7,474 Distributions from capital gains 6,166 664,882 627,626 21,659 29,490 Net change in unrealized appreciation or depreciation of investments 16,060 1,933,332 1,738,654 37,589 58,697 ---------- ---------- ----------- -------- ---------- Net gain (loss) on investments 22,825 2,662,585 2,557,531 62,167 95,661 ---------- ---------- ----------- -------- ---------- Net increase (decrease) in net assets resulting from operations $ 42,041 $4,707,822 $ 4,310,675 $106,667 $ 153,016 ========== ========== =========== ======== ==========
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 32 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Operations Segregated Asset Subaccounts Period ended December 31, 2002 (continued) SC3 SC2 SC1 SC5(1) SC4(1) Investment income Dividend income from mutual funds and portfolios $ -- $ -- $ -- $ -- $ -- Variable account expenses 2,270 191,218 250,290 2,808 1,839 --------- ----------- ----------- -------- -------- Investment income (loss) -- net (2,270) (191,218) (250,290) (2,808) (1,839) ========= =========== =========== ======== ======== Realized and unrealized gain (loss) on investments -- net Realized gain (loss) on sales of investments in mutual funds and portfolios: Proceeds from sales 566,564 1,592,620 1,367,414 30,437 21,004 Cost of investments sold 628,785 1,813,988 1,626,124 32,513 21,854 --------- ----------- ----------- -------- -------- Net realized gain (loss) on sales of investments (62,221) (221,368) (258,710) (2,076) (850) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments (38,976) (4,712,134) (4,777,707) (43,621) (31,020) --------- ----------- ----------- -------- -------- Net gain (loss) on investments (101,197) (4,933,502) (5,036,417) (45,697) (31,870) --------- ----------- ----------- -------- -------- Net increase (decrease) in net assets resulting from operations $(103,467) $(5,124,720) $(5,286,707) $(48,505) $(33,709) ========= =========== =========== ======== ========
Segregated Asset Subaccounts Period ended December 31, 2002 (continued) SA3 SA2 SA1 SA5(1) SA4(1) Investment income Dividend income from mutual funds and portfolios $ -- $ -- $ -- $ -- $ -- Variable account expenses 2,298 280,565 363,565 448 855 ----------- ------------ ------------ -------- -------- Investment income (loss) -- net (2,298) (280,565) (363,565) (448) (855) =========== ============ ============ ======== ======== Realized and unrealized gain (loss) on investments -- net Realized gain (loss) on sales of investments in mutual funds and portfolios: Proceeds from sales 12,093,417 4,078,767 8,804,718 24,589 25,987 Cost of investments sold 12,297,015 10,508,154 24,183,967 28,164 31,499 ----------- ------------ ------------ -------- -------- Net realized gain (loss) on sales of investments (203,598) (6,429,387) (15,379,249) (3,575) (5,512) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments (11,779) (8,853,948) (687,288) (10,623) (19,305) ----------- ------------ ------------ -------- -------- Net gain (loss) on investments (215,377) (15,283,335) (16,066,537) (14,198) (24,817) ----------- ------------ ------------ -------- -------- Net increase (decrease) in net assets resulting from operations $ (217,675) $(15,563,900) $(16,430,102) $(14,646) $(25,672) =========== ============ ============ ======== ========
Segregated Asset Subaccounts Period ended December 31, 2002 (continued) 3AC 2AC 1AC 5AC(1) 4AC(1) Investment income Dividend income from mutual funds and portfolios $ -- $ -- $ -- $ -- $ -- Variable account expenses 34 38,996 35,916 1,288 1,554 -------- ----------- ----------- -------- -------- Investment income (loss) -- net (34) (38,996) (35,916) (1,288) (1,554) ======== =========== =========== ======== ======== Realized and unrealized gain (loss) on investments -- net Realized gain (loss) on sales of investments in mutual funds and portfolios: Proceeds from sales 11,955 89,548 197,716 36,403 9,029 Cost of investments sold 13,523 103,972 227,690 39,353 10,516 -------- ----------- ----------- -------- -------- Net realized gain (loss) on sales of investments (1,568) (14,424) (29,974) (2,950) (1,487) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments (543) (1,397,621) (1,090,574) (29,998) (36,442) -------- ----------- ----------- -------- -------- Net gain (loss) on investments (2,111) (1,412,045) (1,120,548) (32,948) (37,929) -------- ----------- ----------- -------- -------- Net increase (decrease) in net assets resulting from operations $ (2,145) $(1,451,041) $(1,156,464) $(34,236) $(39,483) ======== =========== =========== ======== ========
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 33 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Operations Segregated Asset Subaccounts Period ended December 31, 2002 (continued) 3AD 2AD 1AD 5AD(1) 4AD(1) Investment income Dividend income from mutual funds and portfolios $ -- $ -- $ -- $ -- $ -- Variable account expenses 271 26,625 23,874 1,786 2,170 -------- ----------- --------- -------- -------- Investment income (loss) -- net (271) (26,625) (23,874) (1,786) (2,170) ======== =========== ========= ======== ======== Realized and unrealized gain (loss) on investments -- net Realized gain (loss) on sales of investments in mutual funds and portfolios: Proceeds from sales 5,373 162,222 218,972 22,511 32,563 Cost of investments sold 5,912 188,593 240,622 23,831 37,238 -------- ----------- --------- -------- -------- Net realized gain (loss) on sales of investments (539) (26,371) (21,650) (1,320) (4,675) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments (12,591) (996,364) (645,931) (35,442) (48,617) -------- ----------- --------- -------- -------- Net gain (loss) on investments (13,130) (1,022,735) (667,581) (36,762) (53,292) -------- ----------- --------- -------- -------- Net increase (decrease) in net assets resulting from operations $(13,401) $(1,049,360) $(691,455) $(38,548) $(55,462) ======== =========== ========= ======== ========
Segregated Asset Subaccounts Period ended December 31, 2002 (continued) 3AL 2AL 1AL 5AL(1) 4AL(1) Investment income Dividend income from mutual funds and portfolios $ 747 $ 96,111 $ 68,911 $ 6,001 $ 9,032 Variable account expenses 832 142,478 125,392 13,177 20,747 --------- ----------- ----------- --------- --------- Investment income (loss) -- net (85) (46,367) (56,481) (7,176) (11,715) ========= =========== =========== ========= ========= Realized and unrealized gain (loss) on investments -- net Realized gain (loss) on sales of investments in mutual funds and portfolios: Proceeds from sales 117,337 39,832 281,298 87,988 124,629 Cost of investments sold 131,387 47,658 309,523 103,827 146,149 --------- ----------- ----------- --------- --------- Net realized gain (loss) on sales of investments (14,050) (7,826) (28,225) (15,839) (21,520) Distributions from capital gains 4,595 590,804 423,602 36,888 55,519 Net change in unrealized appreciation or depreciation of investments (27,646) (5,364,132) (3,733,546) (322,065) (487,637) --------- ----------- ----------- --------- --------- Net gain (loss) on investments (37,101) (4,781,154) (3,338,169) (301,016) (453,638) --------- ----------- ----------- --------- --------- Net increase (decrease) in net assets resulting from operations $ (37,186) $(4,827,521) $(3,394,650) $(308,192) $(465,353) ========= =========== =========== ========= =========
Segregated Asset Subaccounts Period ended December 31, 2002 (continued) 3AB 2AB 1AB 5AB(1) 4AB(1) Investment income Dividend income from mutual funds and portfolios $ 287 $ 5,671 $ 3,729 $ 329 $ 560 Variable account expenses 1,720 40,070 35,222 5,019 6,782 ---------- ---------- ----------- -------- --------- Investment income (loss) -- net (1,433) (34,399) (31,493) (4,690) (6,222) ========== ========== =========== ======== ========= Realized and unrealized gain (loss) on investments -- net Realized gain (loss) on sales of investments in mutual funds and portfolios: Proceeds from sales 2,355,311 22,190 41,597 50,665 78,010 Cost of investments sold 2,325,394 20,383 41,746 54,232 89,734 ---------- ---------- ----------- -------- --------- Net realized gain (loss) on sales of investments 29,917 1,807 (149) (3,567) (11,724) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments (1,729) (645,989) (243,997) (46,057) (87,977) ---------- ---------- ----------- -------- --------- Net gain (loss) on investments 28,188 (644,182) (244,146) (49,624) (99,701) ---------- ---------- ----------- -------- --------- Net increase (decrease) in net assets resulting from operations $ 26,755 $ (678,581) $ (275,639) $(54,314) $(105,923) ========== ========== =========== ======== =========
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 34 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Operations Segregated Asset Subaccounts Period ended December 31, 2002 (continued) 3AI 2AI 1AI 5AI(1) 4AI(1) Investment income Dividend income from mutual funds and portfolios $ 1,202 $ 21,033 $ 18,529 $ 160 $ 245 Variable account expenses 643 40,528 37,961 3,285 2,398 ---------- ----------- --------- -------- -------- Investment income (loss) -- net 559 (19,495) (19,432) (3,125) (2,153) ========== =========== ========= ======== ======== Realized and unrealized gain (loss) on investments -- net Realized gain (loss) on sales of investments in mutual funds and portfolios: Proceeds from sales 6,694,566 41,180 133,471 49,607 46,150 Cost of investments sold 6,647,067 45,425 155,166 54,907 53,112 ---------- ----------- --------- -------- -------- Net realized gain (loss) on sales of investments 47,499 (4,245) (21,695) (5,300) (6,962) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments (809) (1,277,854) (907,389) (74,613) (46,467) ---------- ----------- --------- -------- -------- Net gain (loss) on investments 46,690 (1,282,099) (929,084) (79,913) (53,429) ---------- ----------- --------- -------- -------- Net increase (decrease) in net assets resulting from operations $ 47,249 $(1,301,594) $(948,516) $(83,038) $(55,582) ========== =========== ========= ======== ========
Segregated Asset Subaccounts Period ended December 31, 2002 (continued) 3AV 2AV 1AV 5AV(1) 4AV(1) Investment income Dividend income from mutual funds and portfolios $ 1,244 $ 96,291 $ 89,786 $ 776 $ 699 Variable account expenses 1,519 176,382 165,847 11,684 13,168 -------- ----------- ----------- --------- --------- Investment income (loss) -- net (275) (80,091) (76,061) (10,908) (12,469) ======== =========== =========== ========= ========= Realized and unrealized gain (loss) on investments -- net Realized gain (loss) on sales of investments in mutual funds and portfolios: Proceeds from sales 7,744 21,357 179,786 108,478 72,303 Cost of investments sold 8,555 23,843 204,225 117,936 78,594 -------- ----------- ----------- --------- --------- Net realized gain (loss) on sales of investments (811) (2,486) (24,439) (9,458) (6,291) Distributions from capital gains 8,681 671,809 626,430 5,413 4,879 Net change in unrealized appreciation or depreciation of investments (46,738) (4,106,385) (3,071,603) (151,646) (181,128) -------- ----------- ----------- --------- --------- Net gain (loss) on investments (38,868) (3,437,062) (2,469,612) (155,691) (182,540) -------- ----------- ----------- --------- --------- Net increase (decrease) in net assets resulting from operations $(39,143) $(3,517,153) $(2,545,673) $(166,599) $(195,009) ======== =========== =========== ========= =========
Segregated Asset Subaccounts Period ended December 31, 2002 (continued) 3SR 2SR 1SR 5SR(1) 4SR(1) Investment income Dividend income from mutual funds and portfolios $ 183 $ 217,165 $ 223,683 $ 5,434 $ 5,382 Variable account expenses 33 42,552 61,591 595 873 ----- --------- ----------- ------- -------- Investment income (loss) -- net 150 174,613 162,092 4,839 4,509 ===== ========= =========== ======= ======== Realized and unrealized gain (loss) on investments -- net Realized gain (loss) on sales of investments in mutual funds and portfolios: Proceeds from sales 668 415,145 488,737 7,361 29,343 Cost of investments sold 788 492,084 581,622 7,790 29,991 ----- --------- ----------- ------- -------- Net realized gain (loss) on sales of investments (120) (76,939) (92,885) (429) (648) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments (839) (853,336) (957,880) (8,782) (12,900) ----- --------- ----------- ------- -------- Net gain (loss) on investments (959) (930,275) (1,050,765) (9,211) (13,548) ----- --------- ----------- ------- -------- Net increase (decrease) in net assets resulting from operations $(809) $(755,662) $ (888,673) $(4,372) $ (9,039) ===== ========= =========== ======= ========
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 35 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Operations Segregated Asset Subaccounts Period ended December 31, 2002 (continued) 3FG 2FG 1FG 5FG(1) 4FG(1) Investment income Dividend income from mutual funds and portfolios $ 1,650 $ 112,618 $ 141,081 $ -- $ -- Variable account expenses 799 169,058 179,698 12,565 17,453 -------- ----------- ----------- --------- --------- Investment income (loss) -- net 851 (56,440) (38,617) (12,565) (17,453) ======== =========== =========== ========= ========= Realized and unrealized gain (loss) on investments -- net Realized gain (loss) on sales of investments in mutual funds and portfolios: Proceeds from sales 4,831 -- 170,874 210,425 130,768 Cost of investments sold 5,035 -- 194,090 237,961 142,070 -------- ----------- ----------- --------- --------- Net realized gain (loss) on sales of investments (204) -- (23,216) (27,536) (11,302) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments (26,404) (3,535,427) (3,356,075) (107,647) (231,885) -------- ----------- ----------- --------- --------- Net gain (loss) on investments (26,608) (3,535,427) (3,379,291) (135,183) (243,187) -------- ----------- ----------- --------- --------- Net increase (decrease) in net assets resulting from operations $(25,757) $(3,591,867) $(3,417,908) $(147,748) $(260,640) ======== =========== =========== ========= =========
Segregated Asset Subaccounts Period ended December 31, 2002 (continued) 3FM 2FM 1FM 5FM(1) 4FM(1) Investment income Dividend income from mutual funds and portfolios $ 1,256 $ 84,572 $ 81,028 $ -- $ -- Variable account expenses 1,045 199,663 185,636 16,339 19,080 -------- ----------- ----------- --------- --------- Investment income (loss) -- net 211 (115,091) (104,608) (16,339) (19,080) ======== =========== =========== ========= ========= Realized and unrealized gain (loss) on investments -- net Realized gain (loss) on sales of investments in mutual funds and portfolios: Proceeds from sales 2,985 -- 909,798 101,610 113,766 Cost of investments sold 3,212 -- 982,555 114,140 118,173 -------- ----------- ----------- --------- --------- Net realized gain (loss) on sales of investments (227) -- (72,757) (12,530) (4,407) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments (17,373) (3,304,662) (2,234,071) (195,558) (229,611) -------- ----------- ----------- --------- --------- Net gain (loss) on investments (17,600) (3,304,662) (2,306,828) (208,088) (234,018) -------- ----------- ----------- --------- --------- Net increase (decrease) in net assets resulting from operations $(17,389) $(3,419,753) $(2,411,436) $(224,427) $(253,098) ======== =========== =========== ========= =========
Segregated Asset Subaccounts Period ended December 31, 2002 (continued) 3FO 2FO 1FO 5FO(1) 4FO(1) Investment income Dividend income from mutual funds and portfolios $ 49 $ 20,178 $ 22,242 $ -- $ -- Variable account expenses 616 46,977 48,210 1,949 2,772 ---------- ----------- ----------- -------- -------- Investment income (loss) -- net (567) (26,799) (25,968) (1,949) (2,772) ========== =========== =========== ======== ======== Realized and unrealized gain (loss) on investments -- net Realized gain (loss) on sales of investments in mutual funds and portfolios: Proceeds from sales 6,017,201 663,062 241,932 88,675 9,272 Cost of investments sold 5,960,885 751,311 265,411 97,673 10,388 ---------- ----------- ----------- -------- -------- Net realized gain (loss) on sales of investments 56,316 (88,249) (23,479) (8,998) (1,116) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments (3,144) (1,573,298) (1,248,421) (53,946) (67,536) ---------- ----------- ----------- -------- -------- Net gain (loss) on investments 53,172 (1,661,547) (1,271,900) (62,944) (68,652) ---------- ----------- ----------- -------- -------- Net increase (decrease) in net assets resulting from operations $ 52,605 $(1,688,346) $(1,297,868) $(64,893) $(71,424) ========== =========== =========== ======== ========
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 36 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Operations Segregated Asset Subaccounts Period ended December 31, 2002 (continued) 3RE 2RE 1RE 5RE(1) 4RE(1) Investment income Dividend income from mutual funds and portfolios $ 8,459 $ 1,465,028 $ 1,123,492 $ 23,578 $ 33,618 Variable account expenses 1,689 427,762 413,878 11,970 16,382 -------- ----------- ----------- --------- --------- Investment income (loss) -- net 6,770 1,037,266 709,614 11,608 17,236 ======== =========== =========== ========= ========= Realized and unrealized gain (loss) on investments -- net Realized gain (loss) on sales of investments in mutual funds and portfolios: Proceeds from sales 200,589 139,063 182,498 411,922 140,018 Cost of investments sold 195,535 139,682 180,516 437,963 147,196 -------- ----------- ----------- --------- --------- Net realized gain (loss) on sales of investments 5,054 (619) 1,982 (26,041) (7,178) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments (9,803) (2,049,365) (1,334,802) (92,601) (123,059) -------- ----------- ----------- --------- --------- Net gain (loss) on investments (4,749) (2,049,984) (1,332,820) (118,642) (130,237) -------- ----------- ----------- --------- --------- Net increase (decrease) in net assets resulting from operations $ 2,021 $(1,012,718) $ (623,206) $(107,034) $(113,001) ======== =========== =========== ========= =========
Segregated Asset Subaccounts Period ended December 31, 2002 (continued) 3SI 2SI 1SI 5SI(1) 4SI(1) Investment income Dividend income from mutual funds and portfolios $ 812 $ 96,079 $ 75,164 $ 1,745 $ 1,773 Variable account expenses 1,411 192,201 194,633 6,882 7,131 -------- ----------- ----------- -------- --------- Investment income (loss) -- net (599) (96,122) (119,469) (5,137) (5,358) ======== =========== =========== ======== ========= Realized and unrealized gain (loss) on investments -- net Realized gain (loss) on sales of investments in mutual funds and portfolios: Proceeds from sales 86,684 178,634 417,952 40,637 97,147 Cost of investments sold 99,663 180,033 417,791 44,304 109,576 -------- ----------- ----------- -------- --------- Net realized gain (loss) on sales of investments (12,979) (1,399) 161 (3,667) (12,429) Distributions from capital gains 5,679 672,078 525,770 12,206 12,398 Net change in unrealized appreciation or depreciation of investments (33,497) (4,282,792) (3,037,959) (98,690) (111,262) -------- ----------- ----------- -------- --------- Net gain (loss) on investments (40,797) (3,612,113) (2,512,028) (90,151) (111,293) -------- ----------- ----------- -------- --------- Net increase (decrease) in net assets resulting from operations $(41,396) $(3,708,235) $(2,631,497) $(95,288) $(116,651) ======== =========== =========== ======== =========
Segregated Asset Subaccounts Period ended December 31, 2002 (continued) 3MS 2MS 1MS 5MS(1) 4MS(1) Investment income Dividend income from mutual funds and portfolios $ 4 $ 33,119 $ 30,205 $ 2,846 $ 4,710 Variable account expenses 308 33,455 35,673 5,300 6,753 -------- --------- --------- -------- -------- Investment income (loss) -- net (304) (336) (5,468) (2,454) (2,043) ======== ========= ========= ======== ======== Realized and unrealized gain (loss) on investments -- net Realized gain (loss) on sales of investments in mutual funds and portfolios: Proceeds from sales 292 331,420 190,755 38,683 78,350 Cost of investments sold 320 344,576 207,055 41,871 83,229 -------- --------- --------- -------- -------- Net realized gain (loss) on sales of investments (28) (13,156) (16,300) (3,188) (4,879) Distributions from capital gains 11 82,117 74,894 7,057 11,680 Net change in unrealized appreciation or depreciation of investments (10,395) (722,518) (591,167) (67,907) (98,227) -------- --------- --------- -------- -------- Net gain (loss) on investments (10,412) (653,557) (532,573) (64,038) (91,426) -------- --------- --------- -------- -------- Net increase (decrease) in net assets resulting from operations $(10,716) $(653,893) $(538,041) $(66,492) $(93,469) ======== ========= ========= ======== ========
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 37 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Operations Segregated Asset Subaccounts Period ended December 31, 2002 (continued) 3UE 2UE 1UE 5UE(1) 4UE(1) Investment income Dividend income from mutual funds and portfolios $ 2,962 $ 310,361 $ 326,433 $ 5,776 $ 7,565 Variable account expenses 3,718 373,370 524,178 3,548 7,935 ---------- ------------ ------------ --------- --------- Investment income (loss) -- net (756) (63,009) (197,745) 2,228 (370) ========== ============ ============ ========= ========= Realized and unrealized gain (loss) on investments -- net Realized gain (loss) on sales of investments in mutual funds and portfolios: Proceeds from sales 1,557,749 2,166,130 4,170,478 114,249 60,183 Cost of investments sold 1,828,438 3,130,085 6,046,597 123,143 70,214 ---------- ------------ ------------ --------- --------- Net realized gain (loss) on sales of investments (270,689) (963,955) (1,876,119) (8,894) (10,031) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 51,197 (12,166,443) (12,710,694) (51,028) (178,276) ---------- ------------ ------------ --------- --------- Net gain (loss) on investments (219,492) (13,130,398) (14,586,813) (59,922) (188,307) ---------- ------------ ------------ --------- --------- Net increase (decrease) in net assets resulting from operations $ (220,248) $(13,193,407) $(14,784,558) $ (57,694) $(188,677) ========== ============ ============ ========= =========
Segregated Asset Subaccounts Period ended December 31, 2002 (continued) 3MC 2MC 1MC 5MC(1) 4MC(1) Investment income Dividend income from mutual funds and portfolios $ 6,125 $ 776,125 $ 654,698 $ 25,487 $ 27,982 Variable account expenses 2,410 412,267 475,200 10,506 15,787 --------- ----------- ----------- --------- --------- Investment income (loss) -- net 3,715 363,858 179,498 14,981 12,195 ========= =========== =========== ========= ========= Realized and unrealized gain (loss) on investments -- net Realized gain (loss) on sales of investments in mutual funds and portfolios: Proceeds from sales 134,802 27,721 919,819 141,337 53,252 Cost of investments sold 145,021 29,613 918,723 153,343 58,639 --------- ----------- ----------- --------- --------- Net realized gain (loss) on sales of investments (10,219) (1,892) 1,096 (12,006) (5,387) Distributions from capital gains 1,787 226,426 191,001 7,436 8,164 Net change in unrealized appreciation or depreciation of investments (48,745) (5,353,378) (4,290,020) (143,491) (216,041) --------- ----------- ----------- --------- --------- Net gain (loss) on investments (57,177) (5,128,844) (4,097,923) (148,061) (213,264) --------- ----------- ----------- --------- --------- Net increase (decrease) in net assets resulting from operations $ (53,462) $(4,764,986) $(3,918,425) $(133,080) $(201,069) ========= =========== =========== ========= =========
Segregated Asset Subaccounts Period ended December 31, 2002 (continued) 3FS 2FS 1FS 5FS(1) 4FS(1) Investment income Dividend income from mutual funds and portfolios $ 19 $ 29,919 $ 19,899 $ 2,971 $ 2,540 Variable account expenses 12 22,656 19,769 1,713 2,248 ----- --------- --------- ------- -------- Investment income (loss) -- net 7 7,263 130 1,258 292 ===== ========= ========= ======= ======== Realized and unrealized gain (loss) on investments -- net Realized gain (loss) on sales of investments in mutual funds and portfolios: Proceeds from sales 112 133,608 269,162 28,975 15,505 Cost of investments sold 137 135,197 281,368 28,219 18,366 ----- --------- --------- ------- -------- Net realized gain (loss) on sales of investments (25) (1,589) (12,206) 756 (2,861) Distributions from capital gains 9 14,836 9,639 1,484 1,259 Net change in unrealized appreciation or depreciation of investments (350) (608,683) (398,526) (9,451) (38,662) ----- --------- --------- ------- -------- Net gain (loss) on investments (366) (595,436) (401,093) (7,211) (40,264) ----- --------- --------- ------- -------- Net increase (decrease) in net assets resulting from operations $(359) $(588,173) $(400,963) $(5,953) $(39,972) ===== ========= ========= ======= ========
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 38 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Operations Segregated Asset Subaccounts Period ended December 31, 2002 (continued) 3TC 2TC 1TC 5TC(1) 4TC(1) Investment income Dividend income from mutual funds and portfolios $ -- $ -- $ -- $ -- $ -- Variable account expenses 186 9,060 11,128 551 604 ---------- --------- --------- -------- -------- Investment income (loss) -- net (186) (9,060) (11,128) (551) (604) ========== ========= ========= ======== ======== Realized and unrealized gain (loss) on investments -- net Realized gain (loss) on sales of investments in mutual funds and portfolios: Proceeds from sales 1,132,627 108,636 180,383 30,710 14,001 Cost of investments sold 1,165,252 137,918 254,279 30,281 21,033 ---------- --------- --------- -------- -------- Net realized gain (loss) on sales of investments (32,625) (29,282) (73,896) 429 (7,032) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments (112) (716,596) (720,545) (31,192) (26,647) ---------- --------- --------- -------- -------- Net gain (loss) on investments (32,737) (745,878) (794,441) (30,763) (33,679) ---------- --------- --------- -------- -------- Net increase (decrease) in net assets resulting from operations $ (32,923) $(754,938) $(805,569) $(31,314) $(34,283) ========== ========= ========= ======== ========
Segregated Asset Subaccounts Period ended December 31, 2002 (continued) 3MG 2MG 1MG 5MG(1) 4MG(1) Investment income Dividend income from mutual funds and portfolios $ -- $ -- $ -- $ -- $ -- Variable account expenses 2,685 256,634 303,815 3,935 3,333 --------- ------------ ------------ --------- -------- Investment income (loss) -- net (2,685) (256,634) (303,815) (3,935) (3,333) ========= ============ ============ ========= ======== Realized and unrealized gain (loss) on investments -- net Realized gain (loss) on sales of investments in mutual funds and portfolios: Proceeds from sales 279,316 1,492,912 2,045,505 25,594 31,177 Cost of investments sold 363,943 2,286,729 3,153,835 27,843 36,091 --------- ------------ ------------ --------- -------- Net realized gain (loss) on sales of investments (84,627) (793,817) (1,108,330) (2,249) (4,914) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments (84,925) (10,765,671) (9,711,494) (126,071) (75,217) --------- ------------ ------------ --------- -------- Net gain (loss) on investments (169,552) (11,559,488) (10,819,824) (128,320) (80,131) --------- ------------ ------------ --------- -------- Net increase (decrease) in net assets resulting from operations $(172,237) $(11,816,122) $(11,123,639) $(132,255) $(83,464) ========= ============ ============ ========= ========
Segregated Asset Subaccounts Period ended December 31, 2002 (continued) 3MD 2MD 1MD 5MD(1) 4MD(1) Investment income Dividend income from mutual funds and portfolios $ -- $ -- $ -- $ -- $ -- Variable account expenses 2,109 252,889 312,231 7,651 8,103 --------- ------------ ------------ --------- --------- Investment income (loss) -- net (2,109) (252,889) (312,231) (7,651) (8,103) ========= ============ ============ ========= ========= Realized and unrealized gain (loss) on investments -- net Realized gain (loss) on sales of investments in mutual funds and portfolios: Proceeds from sales 295,291 389,263 1,121,069 41,002 29,172 Cost of investments sold 366,758 535,943 1,572,666 48,927 36,892 --------- ------------ ------------ --------- --------- Net realized gain (loss) on sales of investments (71,467) (146,680) (451,597) (7,925) (7,720) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments (89,005) (13,130,549) (12,676,865) (249,453) (250,135) --------- ------------ ------------ --------- --------- Net gain (loss) on investments (160,472) (13,277,229) (13,128,462) (257,378) (257,855) --------- ------------ ------------ --------- --------- Net increase (decrease) in net assets resulting from operations $(162,581) $(13,530,118) $(13,440,693) $(265,029) $(265,958) ========= ============ ============ ========= =========
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 39 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Operations Segregated Asset Subaccounts Period ended December 31, 2002 (continued) 3UT 2UT 1UT 5UT(1) 4UT(1) Investment income Dividend income from mutual funds and portfolios $ 2,527 $ 91,952 $ 84,542 $ 2,098 $ 4,273 Variable account expenses 553 36,996 34,573 1,271 2,462 -------- ----------- --------- -------- -------- Investment income (loss) -- net 1,974 54,956 49,969 827 1,811 ======== =========== ========= ======== ======== Realized and unrealized gain (loss) on investments -- net Realized gain (loss) on sales of investments in mutual funds and portfolios: Proceeds from sales 772 172,180 497,212 44,459 43,489 Cost of investments sold 993 199,746 623,178 49,415 51,566 -------- ----------- --------- -------- -------- Net realized gain (loss) on sales of investments (221) (27,566) (125,966) (4,956) (8,077) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments (30,610) (1,058,976) (813,369) (11,429) (40,047) -------- ----------- --------- -------- -------- Net gain (loss) on investments (30,831) (1,086,542) (939,335) (16,385) (48,124) -------- ----------- --------- -------- -------- Net increase (decrease) in net assets resulting from operations $(28,857) $(1,031,586) $(889,366) $(15,558) $(46,313) ======== =========== ========= ======== ========
Segregated Asset Subaccounts Period ended December 31, 2002 (continued) 3HS 2HS 1HS 5HS(1) 4HS(1) Investment income Dividend income from mutual funds and portfolios $ -- $ -- $ -- $ -- $ -- Variable account expenses 633 42,173 33,448 2,497 3,186 -------- ----------- --------- -------- -------- Investment income (loss) -- net (633) (42,173) (33,448) (2,497) (3,186) ======== =========== ========= ======== ======== Realized and unrealized gain (loss) on investments -- net Realized gain (loss) on sales of investments in mutual funds and portfolios: Proceeds from sales 551 89,284 297,188 24,138 65,788 Cost of investments sold 641 106,455 346,689 25,484 71,717 -------- ----------- --------- -------- -------- Net realized gain (loss) on sales of investments (90) (17,171) (49,501) (1,346) (5,929) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments (26,477) (1,122,822) (758,201) (49,270) (56,128) -------- ----------- --------- -------- -------- Net gain (loss) on investments (26,567) (1,139,993) (807,702) (50,616) (62,057) -------- ----------- --------- -------- -------- Net increase (decrease) in net assets resulting from operations $(27,200) $(1,182,166) $(841,150) $(53,113) $(65,243) ======== =========== ========= ======== ========
Segregated Asset Subaccounts Period ended December 31, 2002 (continued) 3PI 2PI 1PI 5PI(1) 4PI(1) Investment income Dividend income from mutual funds and portfolios $ 3,135 $ 35,934 $ 34,074 $ 1,046 $ 1,687 Variable account expenses 2,874 66,086 63,080 7,416 6,441 ---------- ----------- ----------- --------- --------- Investment income (loss) -- net 261 (30,152) (29,006) (6,370) (4,754) ========== =========== =========== ========= ========= Realized and unrealized gain (loss) on investments -- net Realized gain (loss) on sales of investments in mutual funds and portfolios: Proceeds from sales 8,524,372 32,305 55,694 67,173 89,691 Cost of investments sold 8,540,156 34,776 61,760 73,649 96,155 ---------- ----------- ----------- --------- --------- Net realized gain (loss) on sales of investments (15,784) (2,471) (6,066) (6,476) (6,464) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 5,176 (1,844,441) (1,304,489) (137,716) (112,829) ---------- ----------- ----------- --------- --------- Net gain (loss) on investments (10,608) (1,846,912) (1,310,555) (144,192) (119,293) ---------- ----------- ----------- --------- --------- Net increase (decrease) in net assets resulting from operations $ (10,347) $(1,877,064) $(1,339,561) $(150,562) $(124,047) ========== =========== =========== ========= =========
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 40 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Operations Segregated Asset Subaccounts Period ended December 31, 2002 (continued) 3VS 2VS 1VS 5VS(1) 4VS(1) Investment income Dividend income from mutual funds and portfolios $ -- $ -- $ -- $ -- $ -- Variable account expenses 3,636 385,531 536,834 1,009 696 --------- ------------ ------------ -------- -------- Investment income (loss) -- net (3,636) (385,531) (536,834) (1,009) (696) ========= ============ ============ ======== ======== Realized and unrealized gain (loss) on investments -- net Realized gain (loss) on sales of investments in mutual funds and portfolios: Proceeds from sales 425,328 5,200,829 10,645,808 7,101 7,439 Cost of investments sold 801,876 10,862,452 22,938,804 7,645 8,005 --------- ------------ ------------ -------- -------- Net realized gain (loss) on sales of investments (376,548) (5,661,623) (12,292,996) (544) (566) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 116,409 (14,121,442) (9,589,578) (29,541) (12,669) --------- ------------ ------------ -------- -------- Net gain (loss) on investments (260,139) (19,783,065) (21,882,574) (30,085) (13,235) --------- ------------ ------------ -------- -------- Net increase (decrease) in net assets resulting from operations $(263,775) $(20,168,596) $(22,419,408) $(31,094) $(13,931) ========= ============ ============ ======== ========
Segregated Asset Subaccounts Period ended December 31, 2002 (continued) 3SO 2SO 1SO 5SO(1) 4SO(1) Investment income Dividend income from mutual funds and portfolios $ 1,014 $ 87,277 $ 58,820 $ 8,272 $ 7,070 Variable account expenses 804 86,184 81,955 8,353 10,779 -------- ----------- ----------- --------- --------- Investment income (loss) -- net 210 1,093 (23,135) (81) (3,709) ======== =========== =========== ========= ========= Realized and unrealized gain (loss) on investments -- net Realized gain (loss) on sales of investments in mutual funds and portfolios: Proceeds from sales 570 24,983 72,101 141,960 177,546 Cost of investments sold 751 31,217 103,735 169,156 222,883 -------- ----------- ----------- --------- --------- Net realized gain (loss) on sales of investments (181) (6,234) (31,634) (27,196) (45,337) Distributions from capital gains 4,627 385,946 258,468 36,278 31,934 Net change in unrealized appreciation or depreciation of investments (46,961) (4,121,068) (3,135,858) (280,597) (350,441) -------- ----------- ----------- --------- --------- Net gain (loss) on investments (42,515) (3,741,356) (2,909,024) (271,515) (363,844) -------- ----------- ----------- --------- --------- Net increase (decrease) in net assets resulting from operations $(42,305) $(3,740,263) $(2,932,159) $(271,596) $(367,553) ======== =========== =========== ========= =========
Segregated Asset Subaccounts Period ended December 31, 2002 (continued) 3IT 2IT 1IT 5IT(1) 4IT(1) Investment income Dividend income from mutual funds and portfolios $ -- $ -- $ -- $ -- $ -- Variable account expenses 4,886 208,427 271,063 4,004 3,891 ----------- ----------- ----------- -------- -------- Investment income (loss) -- net (4,886) (208,427) (271,063) (4,004) (3,891) =========== =========== =========== ======== ======== Realized and unrealized gain (loss) on investments -- net Realized gain (loss) on sales of investments in mutual funds and portfolios: Proceeds from sales 12,185,128 305,493 919,591 72,752 42,405 Cost of investments sold 12,299,645 510,334 1,673,395 76,038 47,660 ----------- ----------- ----------- -------- -------- Net realized gain (loss) on sales of investments (114,517) (204,841) (753,804) (3,286) (5,255) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 61,802 (4,210,201) (3,628,072) (45,145) (59,832) ----------- ----------- ----------- -------- -------- Net gain (loss) on investments (52,715) (4,415,042) (4,381,876) (48,431) (65,087) ----------- ----------- ----------- -------- -------- Net increase (decrease) in net assets resulting from operations $ (57,601) $(4,623,469) $(4,652,939) $(52,435) $(68,978) =========== =========== =========== ======== ========
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 41 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Operations Segregated Asset Subaccounts Period ended December 31, 2002 (continued) 3SP 2SP 1SP 5SP(1) 4SP(1) Investment income Dividend income from mutual funds and portfolios $ -- $ -- $ -- $ -- $ -- Variable account expenses 5,004 463,521 595,605 12,148 15,328 --------- ------------ ------------ --------- --------- Investment income (loss) -- net (5,004) (463,521) (595,605) (12,148) (15,328) ========= ============ ============ ========= ========= Realized and unrealized gain (loss) on investments -- net Realized gain (loss) on sales of investments in mutual funds and portfolios: Proceeds from sales 949,573 45,114 794,443 47,200 229,461 Cost of investments sold 979,761 50,507 914,414 56,659 265,838 --------- ------------ ------------ --------- --------- Net realized gain (loss) on sales of investments (30,188) (5,393) (119,971) (9,459) (36,377) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments (152,303) (11,741,930) (11,893,766) (159,650) (264,870) --------- ------------ ------------ --------- --------- Net gain (loss) on investments (182,491) (11,747,323) (12,013,737) (169,109) (301,247) --------- ------------ ------------ --------- --------- Net increase (decrease) in net assets resulting from operations $(187,495) $(12,210,844) $(12,609,342) $(181,257) $(316,575) ========= ============ ============ ========= =========
Segregated Asset Subaccounts Period ended December 31, 2002 (continued) 3IP 2IP 1IP 5IP(1) 4IP(1) Investment income Dividend income from mutual funds and portfolios $ 1,834 $ 13,913 $ 13,594 $ 190 $ 323 Variable account expenses 1,850 114,539 153,494 1,608 2,849 ---------- ----------- ----------- -------- -------- Investment income (loss) -- net (16) (100,626) (139,900) (1,418) (2,526) ========== =========== =========== ======== ======== Realized and unrealized gain (loss) on investments -- net Realized gain (loss) on sales of investments in mutual funds and portfolios: Proceeds from sales 8,687,211 215,350 894,368 51,035 29,628 Cost of investments sold 8,627,935 267,719 1,155,338 53,073 31,537 ---------- ----------- ----------- -------- -------- Net realized gain (loss) on sales of investments 59,276 (52,369) (260,970) (2,038) (1,909) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 5,085 (1,811,344) (1,621,411) (12,604) (32,099) ---------- ----------- ----------- -------- -------- Net gain (loss) on investments 64,361 (1,863,713) (1,882,381) (14,642) (34,008) ---------- ----------- ----------- -------- -------- Net increase (decrease) in net assets resulting from operations $ 64,345 $(1,964,339) $(2,022,281) $(16,060) $(36,534) ========== =========== =========== ======== ========
(1) For the period Feb. 13, 2002 (commencement of operations) to Dec. 31, 2002. See accompanying notes to financial statements. -------------------------------------------------------------------------------- 42 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Changes in Net Assets Segregated Asset Subaccounts Period ended December 31, 2002 CR3 CR2 CR1 CR5(2) CR4(2) Operations Investment income (loss) -- net $ (243) $ (42,755) $ (74,048) $ (435) $ (146) Net realized gain (loss) on sales of investments (20,846) (910,070) (2,015,691) (4,295) (3,292) Distributions from capital gains 15,738 1,518,493 1,484,998 -- 2 Net change in unrealized appreciation or depreciation of investments (6,954) (6,406,494) (4,059,077) (14,865) (4,750) ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (12,305) (5,840,826) (4,663,818) (19,595) (8,186) ============================================================================================================================= Contract transactions Contract purchase payments 1,259 21,283,378 8,320,523 247,183 54,601 Net transfers(1) (87,349) (4,104,074) (2,679,434) (8,756) 31,037 Transfers for policy loans 1,872 (89,501) -- -- -- Annuity payments -- (16,107) (8,037) -- -- Contact charges (70) (14,375) (9,028) -- -- Contract terminations: Surrender benefits (5,956) (595,875) (497,104) (1,444) -- Death benefits -- (33,118) (325,548) -- -- ----------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (90,244) 16,430,328 4,801,372 236,983 85,638 ----------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 222,301 20,243,839 20,374,024 -- -- ----------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $119,752 $30,833,341 $20,511,578 $217,388 $77,452 ============================================================================================================================= Accumulation unit activity Units outstanding at beginning of year 291,207 26,326,833 26,778,956 -- -- Contract purchase payments 1,922 33,323,720 13,769,390 307,772 59,081 Net transfers(1) (85,555) (6,372,729) (4,351,290) (14,526) 36,798 Transfers for policy loans 3,025 (137,173) -- -- -- Contract charges (98) (22,061) (13,695) -- -- Contract terminations: Surrender benefits (8,209) (947,264) (751,406) (1,838) -- Death benefits -- (47,463) (475,695) -- -- ----------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 202,292 52,123,863 34,956,260 291,408 95,879 =============================================================================================================================
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 43 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Changes in Net Assets Segregated Asset Subaccounts Period ended December 31, 2002 (continued) CM3 CM2 CM1 CM5(2) CM4(2) Operations Investment income (loss) -- net $ 42,566 $ 1,103,552 $ 562,427 $ 3,820 $ (8,255) Net realized gain (loss) on sales of investments (10) (5,701) (10,281) -- (8) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 9 5,691 10,272 -- -- ------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 42,565 1,103,542 562,418 3,820 (8,263) =============================================================================================================================== Contract transactions Contract purchase payments 16,400,339 352,620,135 226,515,881 27,036,148 29,659,364 Net transfers(1) (1,768,769) (322,493,178) (253,897,068) (14,422,833) (17,290,614) Transfers for policy loans (19,135) (246,678) -- (83,850) -- Annuity payments -- (6,458) (22,109) -- -- Contact charges (554) (75,696) (64,550) -- -- Contract terminations: Surrender benefits (16,548,478) (14,691,158) (9,935,594) (74,523) (227,446) Death benefits -- (2,651,827) (3,607,854) (16) -- ------------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (1,936,597) 12,455,140 (41,011,294) 12,454,926 12,141,304 ------------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 6,218,772 267,060,715 289,729,276 -- -- ------------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 4,324,740 $ 280,619,397 $ 249,280,400 $ 12,458,746 $ 12,133,041 =============================================================================================================================== Accumulation unit activity Units outstanding at beginning of year 5,658,076 243,869,987 265,455,463 -- -- Contract purchase payments 14,868,286 321,790,962 207,643,721 27,027,854 29,671,166 Net transfers(1) (1,608,368) (294,304,617) (232,372,552) (14,417,129) (17,295,362) Transfers for policy loans (17,331) (224,812) -- (83,818) -- Contract charges (502) (69,006) (59,180) -- -- Contract terminations: Surrender benefits (14,989,073) (13,395,206) (9,122,334) (74,486) (227,611) Death benefits -- (2,416,788) (3,307,751) (16) -- ------------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 3,911,088 255,250,520 228,237,367 12,452,405 12,148,193 ===============================================================================================================================
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 44 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Changes in Net Assets Segregated Asset Subaccounts Period ended December 31, 2002 (continued) BD3 BD2 BD1 BD5(2) BD4(2) Operations Investment income (loss) -- net $ 32,446 $ 6,045,701 $ 6,185,425 $ 110,904 $ 102,301 Net realized gain (loss) on sales of investments (3,809) (20,247) (31,062) 3,451 441 Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 17,554 1,390,239 1,152,469 102,258 89,731 ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 46,191 7,415,693 7,306,832 216,613 192,473 ============================================================================================================================= Contract transactions Contract purchase payments 75,827 75,660,940 56,409,658 6,006,171 5,048,685 Net transfers(1) (308,736) 12,043,348 10,340,498 552,973 990,704 Transfers for policy loans -- (221,836) -- (3,498) -- Annuity payments -- (54,429) (57,668) -- -- Contact charges (80) (45,305) (46,921) -- -- Contract terminations: Surrender benefits (23,949) (4,990,255) (3,832,361) (21,182) (24,633) Death benefits -- (1,130,877) (2,001,884) (20,589) (17,438) ----------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (256,938) 81,261,586 60,811,322 6,513,875 5,997,318 ----------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 1,121,896 95,910,199 120,835,163 -- -- ----------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 911,149 $184,587,478 $188,953,317 $6,730,488 $6,189,791 ============================================================================================================================= Accumulation unit activity Units outstanding at beginning of year 984,546 83,968,345 106,759,873 -- -- Contract purchase payments 65,587 65,949,204 49,215,303 5,980,029 5,024,503 Net transfers(1) (267,402) 10,431,099 9,065,587 545,339 987,596 Transfers for policy loans -- (192,197) -- (3,482) -- Contract charges (70) (39,253) (40,930) -- -- Contract terminations: Surrender benefits (20,957) (4,601,230) (3,847,757) (21,103) (24,382) Death benefits -- (985,974) (1,746,973) (19,934) (17,055) ----------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 761,704 154,529,994 159,405,103 6,480,849 5,970,662 =============================================================================================================================
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 45 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Changes in Net Assets Segregated Asset Subaccounts Period ended December 31, 2002 (continued) DE3 DE2 DE1 DE5(2) DE4(2) Operations Investment income (loss) -- net $ 7,849 $ 529,640 $ 329,968 $ 9,942 $ 5,437 Net realized gain (loss) on sales of investments (134,059) (199,178) (365,948) (10,151) (41,880) Distributions from capital gains 1,303 176,946 167,098 2 -- Net change in unrealized appreciation or depreciation of investments (3,499) (14,847,317) (12,178,448) (267,908) (260,421) ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (128,406) (14,339,909) (12,047,330) (268,115) (296,864) ============================================================================================================================= Contract transactions Contract purchase payments 140,478 28,527,376 14,294,648 2,326,663 1,561,433 Net transfers(1) 859,705 15,281,669 13,351,928 545,728 477,738 Transfers for policy loans (6,893) (77,540) -- (412) -- Annuity payments -- (27,858) (12,622) -- -- Contact charges (112) (34,816) (22,411) -- -- Contract terminations: Surrender benefits (112,852) (1,922,194) (1,052,258) (9,627) (38,087) Death benefits -- (612,062) (967,428) (9,411) (2,793) ----------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 880,326 41,134,575 25,591,857 2,852,941 1,998,291 ----------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 287,884 44,814,223 42,180,990 -- -- ----------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $1,039,804 $ 71,608,889 $ 55,725,517 $2,584,826 $1,701,427 ============================================================================================================================= Accumulation unit activity Units outstanding at beginning of year 281,449 43,328,168 41,299,277 -- -- Contract purchase payments 140,211 30,703,004 15,632,650 2,524,209 1,615,763 Net transfers(1) 983,310 15,440,636 13,403,888 598,753 493,625 Transfers for policy loans (6,515) (77,455) -- (493) -- Contract charges (124) (39,949) (25,626) -- -- Contract terminations: Surrender benefits (135,919) (2,238,773) (1,284,475) (10,376) (47,561) Death benefits -- (673,232) (1,067,486) (11,276) (3,544) ----------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 1,262,412 86,442,399 67,958,228 3,100,817 2,058,283 =============================================================================================================================
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 46 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Changes in Net Assets Segregated Asset Subaccounts Period ended December 31, 2002 (continued) EM3 EM2 EM1 EM5(2) EM4(2) Operations Investment income (loss) -- net $ (20,414) $ (17,726) $ (18,044) $ (830) $ (811) Net realized gain (loss) on sales of investments (104,226) (15,954) (16,005) (2,784) (3,294) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments (85,109) (252,312) (166,342) (7,889) (9,359) ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (209,749) (285,992) (200,391) (11,503) (13,464) ============================================================================================================================= Contract transactions Contract purchase payments 1,687 1,180,002 796,792 182,387 54,887 Net transfers(1) 178,232 1,122,588 981,357 27,250 67,211 Transfers for policy loans -- 188 -- -- -- Annuity payments -- -- -- -- -- Contact charges (4) (1,057) (1,309) -- -- Contract terminations: Surrender benefits -- (64,471) (30,013) -- -- Death benefits -- (26,082) (36,356) -- -- ----------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 179,915 2,211,168 1,710,471 209,637 122,098 ----------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 3,674,402 1,291,032 1,108,401 -- -- ----------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $3,644,568 $3,216,208 $2,618,481 $198,134 $108,634 ============================================================================================================================= Accumulation unit activity Units outstanding at beginning of year 3,269 1,789,442 1,541,506 -- -- Contract purchase payments 2,195 1,605,963 1,112,376 195,357 57,166 Net transfers(1) 271,572 1,484,355 1,326,174 24,428 63,553 Transfers for policy loans -- 280 -- -- -- Contract charges (6) (1,495) (1,885) -- -- Contract terminations: Surrender benefits -- (90,669) (40,992) -- -- Death benefits -- (38,293) (49,316) -- -- ----------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 277,030 4,749,583 3,887,863 219,785 120,719 =============================================================================================================================
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 47 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Changes in Net Assets Segregated Asset Subaccounts Period ended December 31, 2002 (continued) ES3 ES2 ES1 ES5(2) ES4(2) Operations Investment income (loss) -- net $ (10,679) $ (54,808) $ (48,361) $ (3,597) $ (3,752) Net realized gain (loss) on sales of investments (1,890) (15,090) (17,427) (1,002) (8,992) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments (286,993) (924,791) (585,605) (28,933) (28,332) ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (299,562) (994,689) (651,393) (33,532) (41,076) ============================================================================================================================= Contract transactions Contract purchase payments 10,954 6,994,948 5,077,279 831,820 710,007 Net transfers(1) 247,128 5,797,628 3,937,963 219,050 110,753 Transfers for policy loans (116) (18,476) -- -- -- Annuity payments -- -- -- -- -- Contact charges (64) (3,766) (2,471) -- -- Contract terminations: Surrender benefits -- (247,633) (248,163) (3,854) -- Death benefits -- (46,062) (28,026) -- -- ----------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 257,902 12,476,639 8,736,582 1,047,016 820,760 ----------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 2,062,644 2,476,561 2,224,431 -- -- ----------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $2,020,984 $13,958,511 $10,309,620 $1,013,484 $779,684 ============================================================================================================================= Accumulation unit activity Units outstanding at beginning of year 37,676 2,488,770 2,238,352 -- -- Contract purchase payments 11,990 7,855,947 5,833,099 913,006 780,228 Net transfers(1) 278,230 6,411,487 4,391,380 244,703 108,540 Transfers for policy loans (138) (20,716) -- -- -- Contract charges (69) (4,435) (2,932) -- -- Contract terminations: Surrender benefits -- (284,523) (285,841) (4,448) -- Death benefits -- (58,915) (29,505) -- -- ----------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 327,689 16,387,615 12,144,553 1,153,261 888,768 =============================================================================================================================
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 48 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Changes in Net Assets Segregated Asset Subaccounts Period ended December 31, 2002 (continued) GB3 GB2 GB1 GB5(2) GB4(2) Operations Investment income (loss) -- net $ 17,684 $ 1,009,035 $ 1,188,372 $ 14,742 $ 27,246 Net realized gain (loss) on sales of investments 15,428 32,345 73,687 1,400 1,770 Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 14,834 2,629,912 3,149,519 57,109 99,985 ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 47,946 3,671,292 4,411,578 73,251 129,001 ============================================================================================================================= Contract transactions Contract purchase payments 16,488 9,630,015 8,669,594 778,812 979,709 Net transfers(1) (24,917) 7,259,586 6,523,271 361,711 633,154 Transfers for policy loans -- (15,999) -- -- -- Annuity payments -- (1,096) (132) -- -- Contact charges (11) (5,478) (9,172) -- -- Contract terminations: Surrender benefits -- (733,370) (845,127) (3,012) (331) Death benefits -- (236,437) (516,936) -- -- ----------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (8,440) 15,897,221 13,821,498 1,137,511 1,612,532 ----------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 258,437 17,099,335 24,619,415 -- -- ----------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $297,943 $36,667,848 $42,852,491 $1,210,762 $1,741,533 ============================================================================================================================= Accumulation unit activity Units outstanding at beginning of year 249,453 16,572,087 23,970,170 -- -- Contract purchase payments 15,704 8,880,448 8,001,948 727,585 927,453 Net transfers(1) (13,655) 6,603,439 5,933,028 335,624 601,721 Transfers for policy loans -- (14,807) -- -- -- Contract charges (10) (4,987) (8,416) -- -- Contract terminations: Surrender benefits -- (685,434) (791,445) (2,716) (301) Death benefits -- (217,939) (478,893) -- -- ----------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 251,492 31,132,807 36,626,392 1,060,493 1,528,873 =============================================================================================================================
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 49 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Changes in Net Assets Segregated Asset Subaccounts Period ended December 31, 2002 (continued) GR3 GR2 GR1 GR5(2) GR4(2) Operations Investment income (loss) -- net $ (3,343) $ (480,779) $ (586,028) $ (2,057) $ (1,259) Net realized gain (loss) on sales of investments (283,933) (5,166,821) (11,399,244) (2,856) (378) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 29,442 (17,529,137) (10,217,973) (44,758) (28,500) ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (257,834) (23,176,737) (22,203,245) (49,671) (30,137) ============================================================================================================================= Contract transactions Contract purchase payments 90,897 12,949,971 6,610,895 632,485 237,212 Net transfers(1) (59,234) (6,891,728) (9,881,536) 168,667 92,541 Transfers for policy loans (2,095) (66,143) -- (5,109) -- Annuity payments -- (10,942) (9,774) -- -- Contact charges (318) (87,358) (48,574) -- -- Contract terminations: Surrender benefits (95,446) (1,769,289) (1,839,761) (1,267) -- Death benefits -- (234,569) (795,604) -- -- ----------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (66,196) 3,889,942 (5,964,354) 794,776 329,753 ----------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 827,005 83,919,855 84,435,341 -- -- ----------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 502,975 $ 64,633,060 $ 56,267,742 $745,105 $299,616 ============================================================================================================================= Accumulation unit activity Units outstanding at beginning of year 1,285,419 129,185,546 130,763,635 -- -- Contract purchase payments 153,550 24,140,748 12,358,946 772,413 278,544 Net transfers(1) (177,671) (13,595,191) (18,987,870) 208,619 113,363 Transfers for policy loans (2,996) (121,311) -- (6,457) -- Contract charges (583) (165,754) (91,661) -- -- Contract terminations: Surrender benefits (193,903) (3,336,134) (3,557,045) (1,591) -- Death benefits -- (414,727) (1,499,837) -- -- ----------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 1,063,816 135,693,177 118,986,168 972,984 391,907 =============================================================================================================================
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 50 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Changes in Net Assets Segregated Asset Subaccounts Period ended December 31, 2002 (continued) EI3 EI2 EI1 EI5(2) EI4(2) Operations Investment income (loss) -- net $ 112,518 $ 4,818,898 $ 6,390,145 $ 102,922 $ 108,258 Net realized gain (loss) on sales of investments (167,735) (493,826) (1,121,994) (14,901) (8,841) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 11,888 (9,179,710) (12,316,535) (127,087) (129,692) ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (43,329) (4,854,638) (7,048,384) (39,066) (30,275) ============================================================================================================================= Contract transactions Contract purchase payments 364,032 28,574,235 24,104,647 3,256,958 3,148,594 Net transfers(1) (102,421) 6,507,106 10,170,341 497,017 872,880 Transfers for policy loans -- (46,974) -- (2,087) -- Annuity payments -- (23,113) (21,189) -- -- Contact charges (90) (18,012) (28,013) -- -- Contract terminations: Surrender benefits (382,503) (2,095,832) (2,117,180) (11,928) (2,915) Death benefits -- (588,889) (1,327,559) -- (1,713) ----------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (120,982) 32,308,521 30,781,047 3,739,960 4,016,846 ----------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 1,475,454 55,485,783 84,016,748 -- -- ----------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $1,311,143 $82,939,666 $107,749,411 $3,700,894 $3,986,571 ============================================================================================================================= Accumulation unit activity Units outstanding at beginning of year 1,549,237 58,348,189 88,813,366 -- -- Contract purchase payments 381,550 31,849,578 27,188,267 3,432,651 3,325,246 Net transfers(1) (42,003) 6,946,593 10,992,877 539,108 949,252 Transfers for policy loans -- (53,593) -- (2,224) -- Contract charges (97) (20,416) (32,023) -- -- Contract terminations: Surrender benefits (409,171) (2,551,983) (2,684,012) (12,951) (3,163) Death benefits -- (673,223) (1,494,115) -- (1,880) ----------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 1,479,516 93,845,145 122,784,360 3,956,584 4,269,455 =============================================================================================================================
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 51 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Changes in Net Assets Segregated Asset Subaccounts Period ended December 31, 2002 (continued) IE3 IE2 IE1 IE5(2) IE4(2) Operations Investment income (loss) -- net $ 891 $ 26,315 $ (431) $ 38 $ (90) Net realized gain (loss) on sales of investments 912,092 (3,982,568) (4,534,478) (1,626) (3,101) Distributions from capital gains 82 20,548 24,316 -- 1 Net change in unrealized appreciation or depreciation of investments 2,013 1,720,801 2,327,173 (3,452) (4,388) ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 915,078 (2,214,904) (2,183,420) (5,040) (7,578) ============================================================================================================================= Contract transactions Contract purchase payments 34,557 5,059,823 2,940,285 50,346 65,710 Net transfers(1) (704,499) (2,209,704) (2,498,751) 2,273 31,286 Transfers for policy loans -- (20,866) -- -- -- Annuity payments -- (4,198) (5,437) -- -- Contact charges (43) (8,327) (6,190) -- -- Contract terminations: Surrender benefits (21,397) (280,459) (243,402) (423) -- Death benefits -- (12,622) (85,017) -- -- ----------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (691,382) 2,523,647 101,488 52,196 96,996 ----------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 43,797 10,653,200 12,550,536 -- -- ----------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 267,493 $10,961,943 $10,468,604 $47,156 $89,418 ============================================================================================================================= Accumulation unit activity Units outstanding at beginning of year 65,188 15,821,074 18,664,324 -- -- Contract purchase payments 59,499 8,291,256 5,261,904 53,518 71,722 Net transfers(1) 394,472 (3,504,710) (4,139,440) 2,303 33,306 Transfers for policy loans -- (36,566) -- -- -- Contract charges (69) (13,773) (10,240) -- -- Contract terminations: Surrender benefits (31,529) (525,497) (448,787) (449) -- Death benefits -- (19,830) (138,540) -- -- ----------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 487,561 20,011,954 19,189,221 55,372 105,028 =============================================================================================================================
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 52 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Changes in Net Assets Segregated Asset Subaccounts Period ended December 31, 2002 (continued) MF3 MF2 MF1 MF5(2) MF4(2) Operations Investment income (loss) -- net $ 3,983 $ 850,012 $ 786,511 $ 3,899 $ 3,949 Net realized gain (loss) on sales of investments (51,222) (824,018) (2,177,581) (6,336) (3,688) Distributions from capital gains 20,944 3,229,895 4,109,822 4,877 4,462 Net change in unrealized appreciation or depreciation of investments (8,418) (9,041,112) (9,529,068) (22,109) (23,816) ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (34,713) (5,785,223) (6,810,316) (19,669) (19,093) ============================================================================================================================= Contract transactions Contract purchase payments 1,364 29,272,168 15,747,009 490,049 436,050 Net transfers(1) (40,660) (5,450,002) (4,313,328) 6,294 (2,988) Transfers for policy loans -- (81,485) -- -- -- Annuity payments -- (37,898) (31,121) -- -- Contact charges (31) (28,866) (20,636) -- -- Contract terminations: Surrender benefits (106,487) (1,278,760) (1,155,121) -- -- Death benefits -- (154,146) (1,095,898) -- -- ----------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (145,814) 22,241,011 9,130,905 496,343 433,062 ----------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 278,357 35,997,068 49,925,169 -- -- ----------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 97,830 $52,452,856 $52,245,758 $476,674 $413,969 ============================================================================================================================= Accumulation unit activity Units outstanding at beginning of year 295,986 37,760,282 53,096,445 -- -- Contract purchase payments 1,583 34,836,176 19,510,292 522,557 461,983 Net transfers(1) (45,897) (6,477,797) (5,208,250) 8,162 (193) Transfers for policy loans -- (101,556) -- -- -- Contract charges (35) (33,952) (24,371) -- -- Contract terminations: Surrender benefits (131,561) (1,527,227) (1,431,683) -- -- Death benefits -- (182,946) (1,329,104) -- -- ----------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 120,076 64,272,980 64,613,329 530,719 461,790 =============================================================================================================================
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 53 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Changes in Net Assets Segregated Asset Subaccounts Period ended December 31, 2002 (continued) ND3 ND2 ND1 ND5(2) ND4(2) Operations Investment income (loss) -- net $ (798) $ (573,342) $ (1,095,430) $ (8,741) $ (12,483) Net realized gain (loss) on sales of investments (433,985) (2,919,259) (7,878,723) (5,767) (24,649) Distributions from capital gains 2,613 229,075 249,762 48 48 Net change in unrealized appreciation or depreciation of investments (148,644) (62,280,465) (57,715,115) (521,615) (523,988) ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (580,814) (65,543,991) (66,439,506) (536,075) (561,072) ============================================================================================================================= Contract transactions Contract purchase payments 142,999 77,762,083 43,058,058 4,815,164 3,734,594 Net transfers(1) (112,827) 9,431,324 (152,920) 1,015,277 876,737 Transfers for policy loans (7,299) (370,728) -- (11,940) -- Annuity payments -- (72,907) (136,428) -- -- Contact charges (797) (299,746) (155,172) -- -- Contract terminations: Surrender benefits (243,678) (7,304,716) (6,603,268) (27,084) (14,296) Death benefits -- (1,565,414) (3,383,835) -- (1,021) ----------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (221,602) 77,579,896 32,626,435 5,791,417 4,596,014 ----------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 2,901,217 246,108,391 272,881,507 -- -- ----------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $2,098,801 $258,144,296 $239,068,436 $5,255,342 $4,034,942 ============================================================================================================================= Accumulation unit activity Units outstanding at beginning of year 3,252,328 276,053,946 307,319,932 -- -- Contract purchase payments 177,174 100,818,617 56,760,406 5,433,353 4,101,520 Net transfers(1) (77,133) 9,369,722 (2,392,297) 1,176,049 966,183 Transfers for policy loans (8,002) (475,357) -- (14,390) -- Contract charges (1,023) (389,148) (202,531) -- -- Contract terminations: Surrender benefits (314,339) (9,620,229) (9,227,585) (30,430) (17,282) Death benefits -- (2,042,277) (4,416,510) -- (1,216) ----------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 3,029,005 373,715,274 347,841,415 6,564,582 5,049,205 =============================================================================================================================
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 54 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Changes in Net Assets Segregated Asset Subaccounts Period ended December 31, 2002 (continued) SV3 SV2 SV1 SV5(2) SV4(2) Operations Investment income (loss) -- net $ (20,321) $ (142,322) $ (135,816) $ (9,559) $ (11,881) Net realized gain (loss) on sales of investments 994 (13,359) (62,523) (14,043) (10,784) Distributions from capital gains 17,888 159,932 101,010 11,051 9,064 Net change in unrealized appreciation or depreciation of investments (608,764) (4,882,493) (2,894,370) (254,613) (305,019) ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (610,203) (4,878,242) (2,991,699) (267,164) (318,620) ============================================================================================================================= Contract transactions Contract purchase payments 60,999 26,379,690 15,186,765 2,570,076 2,182,749 Net transfers(1) 159,375 12,091,017 7,708,199 631,437 500,420 Transfers for policy loans -- (42,677) -- (2,242) -- Annuity payments -- (2,285) (4,475) -- -- Contact charges (375) (12,546) (8,322) -- -- Contract terminations: Surrender benefits (3,287) (350,541) (249,980) (4,552) (15,685) Death benefits -- (99,878) (110,824) -- -- ----------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 216,712 37,962,780 22,521,363 3,194,719 2,667,484 ----------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 4,717,389 7,380,411 6,762,828 -- -- ----------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $4,323,898 $40,464,949 $26,292,492 $2,927,555 $2,348,864 ============================================================================================================================= Accumulation unit activity Units outstanding at beginning of year 411,004 6,885,287 6,314,047 -- -- Contract purchase payments 59,827 25,298,820 14,851,259 2,644,769 2,169,600 Net transfers(1) 159,599 11,630,922 7,420,899 678,005 512,987 Transfers for policy loans -- (42,778) -- (2,065) -- Contract charges (403) (13,811) (9,114) -- -- Contract terminations: Surrender benefits (3,204) (455,275) (355,449) (5,112) (17,700) Death benefits -- (104,371) (122,160) -- -- ----------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 626,823 43,198,794 28,099,482 3,315,597 2,664,887 =============================================================================================================================
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 55 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Changes in Net Assets Segregated Asset Subaccounts Period ended December 31, 2002 (continued) IV3 IV2 IV1 IV5(2) IV4(2) Operations Investment income (loss) -- net $ 2,293 $ 87,780 $ 14,690 $ 1,693 $ 106 Net realized gain (loss) on sales of investments (134,670) (754,550) (669,250) (4,877) (9,242) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments (7,021) (8,268,536) (8,957,858) (116,993) (132,736) ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (139,398) (8,935,306) (9,612,418) (120,177) (141,872) ============================================================================================================================= Contract transactions Contract purchase payments 19,959 14,733,959 9,951,423 1,284,612 1,252,259 Net transfers(1) 104,499 6,093,063 8,444,429 355,600 201,686 Transfers for policy loans -- (45,123) -- (1,236) -- Annuity payments -- (6,961) (13,083) -- -- Contact charges (50) (24,245) (16,686) -- -- Contract terminations: Surrender benefits (125) (620,019) (1,023,927) (13,750) (1,758) Death benefits -- (114,352) (337,450) -- -- ----------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 124,283 20,016,322 17,004,706 1,625,226 1,452,187 ----------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 605,729 28,328,739 32,012,342 -- -- ----------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 590,614 $39,409,755 $39,404,630 $1,505,049 $1,310,315 ============================================================================================================================= Accumulation unit activity Units outstanding at beginning of year 770,207 35,957,387 40,574,978 -- -- Contract purchase payments 30,090 21,767,822 14,707,250 1,476,669 1,427,906 Net transfers(1) 173,207 8,424,925 11,892,826 430,840 221,741 Transfers for policy loans -- (60,886) -- (1,298) -- Contract charges (69) (37,229) (25,356) -- -- Contract terminations: Surrender benefits (169) (1,116,797) (1,632,150) (16,774) (1,926) Death benefits -- (164,278) (506,841) -- -- ----------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 973,266 64,770,944 65,010,707 1,889,437 1,647,721 =============================================================================================================================
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 56 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Changes in Net Assets Segregated Asset Subaccounts Period ended December 31, 2002 (continued) FI3 FI2 FI1 FI5(2) FI4(2) Operations Investment income (loss) -- net $ 19,216 $ 2,045,237 $ 1,753,144 $ 44,500 $ 57,355 Net realized gain (loss) on sales of investments 599 64,371 191,251 2,919 7,474 Distributions from capital gains 6,166 664,882 627,626 21,659 29,490 Net change in unrealized appreciation or depreciation of investments 16,060 1,933,332 1,738,654 37,589 58,697 ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 42,041 4,707,822 4,310,675 106,667 153,016 ============================================================================================================================= Contract transactions Contract purchase payments 57,819 81,760,298 51,945,608 5,570,686 7,519,444 Net transfers(1) 797,537 9,445,978 21,749,305 717,229 401,496 Transfers for policy loans -- (104,587) -- (1,198) -- Annuity payments -- (32,445) (22,639) -- -- Contact charges (60) (23,772) (25,067) -- -- Contract terminations: Surrender benefits (34,766) (3,057,259) (3,172,722) (35,740) (8,616) Death benefits -- (676,298) (1,205,831) -- (119,249) ----------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 820,530 87,311,915 69,268,654 6,250,977 7,793,075 ----------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 680,351 57,952,085 64,826,399 -- -- ----------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $1,542,922 $149,971,822 $138,405,728 $6,357,644 $7,946,091 ============================================================================================================================= Accumulation unit activity Units outstanding at beginning of year 591,528 50,509,732 56,965,798 -- -- Contract purchase payments 49,632 69,887,068 44,235,559 5,447,876 7,364,242 Net transfers(1) 662,666 7,839,941 18,788,681 695,143 405,206 Transfers for policy loans -- (89,693) -- (1,186) -- Contract charges (51) (20,195) (21,424) -- -- Contract terminations: Surrender benefits (29,134) (2,688,557) (2,784,436) (34,767) (8,384) Death benefits -- (571,993) (1,036,829) -- (115,287) ----------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 1,274,641 124,866,303 116,147,349 6,107,066 7,645,777 =============================================================================================================================
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 57 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Changes in Net Assets Segregated Asset Subaccounts Period ended December 31, 2002 (continued) SC3 SC2 SC1 SC5(2) SC4(2) Operations Investment income (loss) -- net $ (2,270) $ (191,218) $ (250,290) $ (2,808) $ (1,839) Net realized gain (loss) on sales of investments (62,221) (221,368) (258,710) (2,076) (850) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments (38,976) (4,712,134) (4,777,707) (43,621) (31,020) ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (103,467) (5,124,720) (5,286,707) (48,505) (33,709) ============================================================================================================================= Contract transactions Contract purchase payments 36,724 6,345,570 4,111,489 676,596 347,330 Net transfers(1) 126,271 1,130,495 1,850,368 141,308 126,854 Transfers for policy loans 369 (23,188) -- -- -- Annuity payments -- (1,316) (2,422) -- -- Contact charges (79) (18,156) (15,189) -- -- Contract terminations: Surrender benefits (118,641) (754,461) (555,102) (2,688) (1,569) Death benefits -- (195,255) (362,392) -- -- ----------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 44,644 6,483,689 5,026,752 815,216 472,615 ----------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 408,139 24,593,724 26,157,483 -- -- ----------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 349,316 $25,952,693 $25,897,528 $766,711 $438,906 ============================================================================================================================= Accumulation unit activity Units outstanding at beginning of year 378,441 22,792,239 24,346,498 -- -- Contract purchase payments 39,162 6,442,684 4,234,064 740,787 376,372 Net transfers(1) 105,489 994,879 1,735,676 162,652 141,807 Transfers for policy loans 390 (24,316) -- -- -- Contract charges (84) (18,946) (15,901) -- -- Contract terminations: Surrender benefits (130,735) (788,471) (581,296) (3,088) (1,851) Death benefits -- (195,985) (377,960) -- -- ----------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 392,663 29,202,084 29,341,081 900,351 516,328 =============================================================================================================================
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 58 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Changes in Net Assets Segregated Asset Subaccounts Period ended December 31, 2002 (continued) SA3 SA2 SA1 SA5(2) SA4(2) Operations Investment income (loss) -- net $ (2,298) $ (280,565) $ (363,565) $ (448) $ (855) Net realized gain (loss) on sales of investments (203,598) (6,429,387) (15,379,249) (3,575) (5,512) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments (11,779) (8,853,948) (687,288) (10,623) (19,305) ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (217,675) (15,563,900) (16,430,102) (14,646) (25,672) ============================================================================================================================= Contract transactions Contract purchase payments 27,190 9,244,590 4,006,638 98,588 137,171 Net transfers(1) 36,837 (7,727,360) (9,046,635) (1,475) 7,488 Transfers for policy loans (3,138) (21,172) -- -- -- Annuity payments -- (6,943) (11,563) -- -- Contact charges (325) (47,734) (29,138) -- -- Contract terminations: Surrender benefits (124,753) (1,107,826) (1,004,843) (162) (3,322) Death benefits -- (165,130) (414,666) -- -- ----------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (64,189) 168,425 (6,500,207) 96,951 141,337 ----------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 494,410 47,764,584 53,044,804 -- -- ----------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 212,546 $ 32,369,109 $ 30,114,495 $ 82,305 $115,665 ============================================================================================================================= Accumulation unit activity Units outstanding at beginning of year 607,048 58,747,770 65,574,383 -- -- Contract purchase payments 40,231 14,721,858 6,505,504 116,390 157,351 Net transfers(1) (29,395) (12,439,413) (14,563,246) (2,054) 7,912 Transfers for policy loans (3,950) (33,649) -- -- -- Contract charges (476) (73,996) (44,718) -- -- Contract terminations: Surrender benefits (227,733) (1,709,177) (1,642,108) (217) (4,605) Death benefits -- (254,906) (647,024) -- -- ----------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 385,725 58,958,487 55,182,791 114,119 160,658 =============================================================================================================================
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 59 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Changes in Net Assets Segregated Asset Subaccounts Period ended December 31, 2002 (continued) 3AC 2AC 1AC 5AC(2) 4AC(2) Operations Investment income (loss) -- net $ (34) $ (38,996) $ (35,916) $ (1,288) $ (1,554) Net realized gain (loss) on sales of investments (1,568) (14,424) (29,974) (2,950) (1,487) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments (543) (1,397,621) (1,090,574) (29,998) (36,442) ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (2,145) (1,451,041) (1,156,464) (34,236) (39,483) ============================================================================================================================= Contract transactions Contract purchase payments 2,747 5,681,759 3,252,867 282,813 282,240 Net transfers(1) (3,833) 2,505,265 1,872,367 48,392 104,645 Transfers for policy loans -- (7,896) -- -- -- Annuity payments -- -- -- -- -- Contact charges (5) (2,585) (2,057) -- -- Contract terminations: Surrender benefits -- (105,411) (74,664) (1,334) -- Death benefits -- (13,995) -- -- -- ----------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (1,091) 8,057,137 5,048,513 329,871 386,885 ----------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 5,956 1,669,796 1,669,759 -- -- ----------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 2,720 $ 8,275,892 $ 5,561,808 $295,635 $347,402 ============================================================================================================================= Accumulation unit activity Units outstanding at beginning of year 6,095 1,710,005 1,711,418 -- -- Contract purchase payments 3,075 6,787,600 3,850,087 328,278 322,161 Net transfers(1) (5,456) 2,973,776 2,157,649 52,760 124,552 Transfers for policy loans -- (9,625) -- -- -- Contract charges (6) (3,462) (2,762) -- -- Contract terminations: Surrender benefits -- (130,160) (92,278) (1,575) -- Death benefits -- (15,017) -- -- -- ----------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 3,708 11,313,117 7,624,114 379,463 446,713 =============================================================================================================================
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 60 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Changes in Net Assets Segregated Asset Subaccounts Period ended December 31, 2002 (continued) 3AD 2AD 1AD 5AD(2) 4AD(2) Operations Investment income (loss) -- net $ (271) $ (26,625) $ (23,874) $ (1,786) $ (2,170) Net realized gain (loss) on sales of investments (539) (26,371) (21,650) (1,320) (4,675) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments (12,591) (996,364) (645,931) (35,442) (48,617) ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (13,401) (1,049,360) (691,455) (38,548) (55,462) ============================================================================================================================= Contract transactions Contract purchase payments 1,918 3,285,832 2,114,267 359,645 347,872 Net transfers(1) 146,505 1,719,852 1,166,844 126,530 79,934 Transfers for policy loans -- (4,393) -- -- -- Annuity payments -- -- (2,899) -- -- Contact charges (7) (1,684) (1,350) -- -- Contract terminations: Surrender benefits -- (44,529) (65,243) (3,597) (726) Death benefits -- (3,479) (34,979) -- -- ----------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 148,416 4,951,599 3,176,640 482,578 427,080 ----------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 3,156 1,433,282 1,201,714 -- -- ----------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $138,171 $ 5,335,521 $3,686,899 $444,030 $371,618 ============================================================================================================================= Accumulation unit activity Units outstanding at beginning of year 3,211 1,459,193 1,224,392 -- -- Contract purchase payments 1,994 3,619,791 2,420,731 411,494 378,758 Net transfers(1) 175,093 1,963,655 1,314,459 145,195 85,152 Transfers for policy loans -- (3,839) -- -- -- Contract charges (9) (2,181) (1,751) -- -- Contract terminations: Surrender benefits -- (51,361) (105,065) (4,392) (862) Death benefits -- (3,814) (44,747) -- -- ----------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 180,289 6,981,444 4,808,019 552,297 463,048 =============================================================================================================================
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 61 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Changes in Net Assets Segregated Asset Subaccounts Period ended December 31, 2002 (continued) 3AL 2AL 1AL 5AL(2) 4AL(2) Operations Investment income (loss) -- net $ (85) $ (46,367) $ (56,481) $ (7,176) $ (11,715) Net realized gain (loss) on sales of investments (14,050) (7,826) (28,225) (15,839) (21,520) Distributions from capital gains 4,595 590,804 423,602 36,888 55,519 Net change in unrealized appreciation or depreciation of investments (27,646) (5,364,132) (3,733,546) (322,065) (487,637) ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (37,186) (4,827,521) (3,394,650) (308,192) (465,353) ============================================================================================================================= Contract transactions Contract purchase payments 72,168 21,174,367 14,859,137 2,761,387 2,726,916 Net transfers(1) 69,319 10,866,124 6,722,768 396,887 1,026,961 Transfers for policy loans -- (27,102) -- (6,196) -- Annuity payments -- (4,211) (4,562) -- -- Contact charges (163) (7,820) (4,737) -- -- Contract terminations: Surrender benefits (4,407) (232,752) (138,018) (12,524) (3,313) Death benefits -- (105,471) (89,466) -- -- ----------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 136,917 31,663,135 21,345,122 3,139,554 3,750,564 ----------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 131,419 5,365,775 4,225,204 -- -- ----------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $231,150 $32,201,389 $22,175,676 $2,831,362 $3,285,211 ============================================================================================================================= Accumulation unit activity Units outstanding at beginning of year 136,127 5,550,035 4,363,102 -- -- Contract purchase payments 87,887 25,268,621 17,865,965 3,095,275 2,968,314 Net transfers(1) 91,492 12,934,549 7,913,134 428,424 1,107,214 Transfers for policy loans -- (32,852) -- (7,058) -- Contract charges (216) (10,513) (6,303) -- -- Contract terminations: Surrender benefits (5,572) (385,192) (252,129) (13,860) (3,970) Death benefits -- (135,505) (113,635) -- -- ----------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 309,718 43,189,143 29,770,134 3,502,781 4,071,558 =============================================================================================================================
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 62 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Changes in Net Assets Segregated Asset Subaccounts Period ended December 31, 2002 (continued) 3AB 2AB 1AB 5AB(2) 4AB(2) Operations Investment income (loss) -- net $ (1,433) $ (34,399) $ (31,493) $ (4,690) $ (6,222) Net realized gain (loss) on sales of investments 29,917 1,807 (149) (3,567) (11,724) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments (1,729) (645,989) (243,997) (46,057) (87,977) ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 26,755 (678,581) (275,639) (54,314) (105,923) ============================================================================================================================= Contract transactions Contract purchase payments 52,337 7,690,125 5,391,597 1,090,404 1,201,124 Net transfers(1) 273,092 3,581,900 2,628,912 319,111 217,289 Transfers for policy loans -- (7,562) -- (953) -- Annuity payments -- -- (235) -- -- Contact charges (1) (1,351) (1,382) -- -- Contract terminations: Surrender benefits (98) (62,272) (20,618) (4,314) (8,918) Death benefits -- (5,941) (3,440) -- -- ----------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 325,330 11,194,899 7,994,834 1,404,248 1,409,495 ----------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 205,356 786,589 771,212 -- -- ----------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $557,441 $11,302,907 $8,490,407 $1,349,934 $1,303,572 ============================================================================================================================= Accumulation unit activity Units outstanding at beginning of year 209,971 804,909 790,198 -- -- Contract purchase payments 55,284 7,880,684 5,753,004 1,099,322 1,167,044 Net transfers(1) 340,429 3,713,042 2,759,063 322,952 213,675 Transfers for policy loans -- (7,890) -- (808) -- Contract charges (1) (1,505) (1,551) -- -- Contract terminations: Surrender benefits (124) (69,108) (27,088) (4,363) (9,758) Death benefits -- (6,670) (3,714) -- -- ----------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 605,559 12,313,462 9,269,912 1,417,103 1,370,961 =============================================================================================================================
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 63 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Changes in Net Assets Segregated Asset Subaccounts Period ended December 31, 2002 (continued) 3AI 2AI 1AI 5AI(2) 4AI(2) Operations Investment income (loss) -- net $ 559 $ (19,495) $ (19,432) $ (3,125) $ (2,153) Net realized gain (loss) on sales of investments 47,499 (4,245) (21,695) (5,300) (6,962) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments (809) (1,277,854) (907,389) (74,613) (46,467) ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 47,249 (1,301,594) (948,516) (83,038) (55,582) ============================================================================================================================= Contract transactions Contract purchase payments 36,074 5,409,253 3,258,496 720,339 326,849 Net transfers(1) 102,513 2,498,827 2,016,223 169,780 108,546 Transfers for policy loans -- (7,474) -- -- -- Annuity payments -- -- (1,280) -- -- Contact charges (2) (2,365) (1,792) -- -- Contract terminations: Surrender benefits -- (42,994) (72,101) (5,038) -- Death benefits -- (11,304) (31,092) -- -- ----------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 138,585 7,843,943 5,168,454 885,081 435,395 ----------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 1,235 1,817,484 1,796,795 -- -- ----------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $187,069 $ 8,359,833 $6,016,733 $802,043 $379,813 ============================================================================================================================= Accumulation unit activity Units outstanding at beginning of year 1,324 1,950,094 1,926,552 -- -- Contract purchase payments 45,860 6,468,421 3,959,722 766,391 336,365 Net transfers(1) 206,703 3,040,704 2,458,533 183,783 111,717 Transfers for policy loans -- (8,846) -- -- -- Contract charges (3) (3,176) (2,402) -- -- Contract terminations: Surrender benefits -- (55,096) (102,171) (5,679) -- Death benefits -- (14,008) (40,062) -- -- ----------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 253,884 11,378,093 8,200,172 944,495 448,082 =============================================================================================================================
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 64 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Changes in Net Assets Segregated Asset Subaccounts Period ended December 31, 2002 (continued) 3AV 2AV 1AV 5AV(2) 4AV(2) Operations Investment income (loss) -- net $ (275) $ (80,091) $ (76,061) $ (10,908) $ (12,469) Net realized gain (loss) on sales of investments (811) (2,486) (24,439) (9,458) (6,291) Distributions from capital gains 8,681 671,809 626,430 5,413 4,879 Net change in unrealized appreciation or depreciation of investments (46,738) (4,106,385) (3,071,603) (151,646) (181,128) ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (39,143) (3,517,153) (2,545,673) (166,599) (195,009) ============================================================================================================================= Contract transactions Contract purchase payments 59,823 24,806,670 15,214,310 2,202,493 1,809,398 Net transfers(1) 262,878 9,715,110 7,590,600 507,108 517,668 Transfers for policy loans -- (47,183) -- (1,784) -- Annuity payments -- (995) (14,209) -- -- Contact charges (202) (12,993) (9,135) -- -- Contract terminations: Surrender benefits -- (348,898) (247,006) (9,056) (4,352) Death benefits -- (111,802) (179,919) (9,616) (991) ----------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 322,499 33,999,909 22,354,641 2,689,145 2,321,723 ----------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 150,940 7,631,737 7,740,301 -- -- ----------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $434,296 $38,114,493 $27,549,269 $2,522,546 $2,126,714 ============================================================================================================================= Accumulation unit activity Units outstanding at beginning of year 145,573 7,356,170 7,297,887 -- -- Contract purchase payments 63,338 25,702,004 15,988,379 2,320,756 1,852,546 Net transfers(1) 274,370 10,007,752 7,835,930 537,954 548,979 Transfers for policy loans -- (49,957) -- (2,005) -- Contract charges (225) (14,709) (10,333) -- -- Contract terminations: Surrender benefits -- (381,076) (393,033) (9,353) (4,755) Death benefits -- (122,816) (195,848) (10,845) (1,138) ----------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 483,056 42,497,368 30,522,982 2,836,507 2,395,632 =============================================================================================================================
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 65 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Changes in Net Assets Segregated Asset Subaccounts Period ended December 31, 2002 (continued) 3SR 2SR 1SR 5SR(2) 4SR(2) Operations Investment income (loss) -- net $ 150 $ 174,613 $ 162,092 $ 4,839 $ 4,509 Net realized gain (loss) on sales of investments (120) (76,939) (92,885) (429) (648) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments (839) (853,336) (957,880) (8,782) (12,900) ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (809) (755,662) (888,673) (4,372) (9,039) ============================================================================================================================= Contract transactions Contract purchase payments 149 2,820,762 2,277,965 148,734 132,602 Net transfers(1) 1,370 1,554,841 997,129 44,400 69,867 Transfers for policy loans -- (5,923) -- -- -- Annuity payments -- (171) -- -- -- Contact charges (4) (7,167) (3,091) -- -- Contract terminations: Surrender benefits (109) (149,009) (148,474) (2,966) -- Death benefits -- (27,160) (51,565) -- (10,234) ----------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 1,406 4,186,173 3,071,964 190,168 192,235 ----------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 5,638 3,996,635 5,403,539 -- -- ----------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $6,235 $7,427,146 $7,586,830 $185,796 $183,196 ============================================================================================================================= Accumulation unit activity Units outstanding at beginning of year 6,328 4,489,864 6,090,449 -- -- Contract purchase payments 172 3,443,325 2,814,172 166,858 140,290 Net transfers(1) 1,661 1,873,509 1,178,536 47,660 79,770 Transfers for policy loans -- (6,433) -- -- -- Contract charges (5) (8,865) (3,849) -- -- Contract terminations: Surrender benefits (148) (239,568) (181,124) (3,375) -- Death benefits -- (31,839) (66,118) -- (11,586) ----------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 8,008 9,519,993 9,832,066 211,143 208,474 =============================================================================================================================
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 66 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Changes in Net Assets Segregated Asset Subaccounts Period ended December 31, 2002 (continued) 3FG 2FG 1FG 5FG(2) 4FG(2) Operations Investment income (loss) -- net $ 851 $ (56,440) $ (38,617) $ (12,565) $ (17,453) Net realized gain (loss) on sales of investments (204) -- (23,216) (27,536) (11,302) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments (26,404) (3,535,427) (3,356,075) (107,647) (231,885) ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (25,757) (3,591,867) (3,417,908) (147,748) (260,640) ============================================================================================================================= Contract transactions Contract purchase payments 12,974 26,242,377 17,335,094 2,659,978 2,352,879 Net transfers(1) 73,117 11,743,411 8,169,496 585,103 909,216 Transfers for policy loans -- (36,885) -- (3,863) -- Annuity payments -- (4,762) (11,199) -- -- Contact charges (2) (11,669) (8,717) -- -- Contract terminations: Surrender benefits -- (326,723) (272,241) (12,845) (7,164) Death benefits -- (145,557) (111,343) (9,895) -- ----------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 86,089 37,460,192 25,101,090 3,218,478 3,254,931 ----------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 132,379 6,353,602 8,322,960 -- -- ----------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $192,711 $40,221,927 $30,006,142 $3,070,730 $2,994,291 ============================================================================================================================= Accumulation unit activity Units outstanding at beginning of year 132,462 6,362,646 8,177,315 -- -- Contract purchase payments 13,970 29,790,636 19,577,536 2,990,987 2,528,602 Net transfers(1) 86,744 13,302,503 9,068,792 631,591 988,309 Transfers for policy loans -- (42,731) -- (4,465) -- Contract charges (3) (14,131) (10,527) -- -- Contract terminations: Surrender benefits -- (542,044) (360,140) (14,962) (8,418) Death benefits -- (170,721) (133,389) (11,495) -- ----------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 233,173 48,686,158 36,319,587 3,591,656 3,508,493 =============================================================================================================================
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 67 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Changes in Net Assets Segregated Asset Subaccounts Period ended December 31, 2002 (continued) 3FM 2FM 1FM 5FM(2) 4FM(2) Operations Investment income (loss) -- net $ 211 $ (115,091) $ (104,608) $ (16,339) $ (19,080) Net realized gain (loss) on sales of investments (227) -- (72,757) (12,530) (4,407) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments (17,373) (3,304,662) (2,234,071) (195,558) (229,611) ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (17,389) (3,419,753) (2,411,436) (224,427) (253,098) ============================================================================================================================= Contract transactions Contract purchase payments 92,094 31,357,349 20,191,999 3,255,125 2,873,437 Net transfers(1) 94,444 12,293,441 8,528,618 744,513 566,110 Transfers for policy loans -- (60,667) -- -- -- Annuity payments -- (4,578) (1,247) -- -- Contact charges (41) (15,672) (9,882) -- -- Contract terminations: Surrender benefits (3,112) (319,868) (230,161) (16,497) (8,453) Death benefits -- (160,084) (62,456) -- (980) ----------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 183,385 43,089,921 28,416,871 3,983,141 3,430,114 ----------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 137,013 7,245,643 6,949,500 -- -- ----------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $303,009 $46,915,811 $32,954,935 $3,758,714 $3,177,016 ============================================================================================================================= Accumulation unit activity Units outstanding at beginning of year 131,673 6,903,484 6,689,131 -- -- Contract purchase payments 95,615 31,664,963 20,629,517 3,417,303 2,951,794 Net transfers(1) 101,489 12,482,447 8,591,468 783,392 599,852 Transfers for policy loans -- (64,722) -- -- -- Contract charges (44) (16,996) (10,747) -- -- Contract terminations: Surrender benefits (3,307) (342,967) (292,835) (18,323) (9,191) Death benefits -- (168,693) (65,146) -- (1,112) ----------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 325,426 50,457,516 35,541,388 4,182,372 3,541,343 =============================================================================================================================
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 68 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Changes in Net Assets Segregated Asset Subaccounts Period ended December 31, 2002 (continued) 3FO 2FO 1FO 5FO(2) 4FO(2) Operations Investment income (loss) -- net $ (567) $ (26,799) $ (25,968) $ (1,949) $ (2,772) Net realized gain (loss) on sales of investments 56,316 (88,249) (23,479) (8,998) (1,116) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments (3,144) (1,573,298) (1,248,421) (53,946) (67,536) ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 52,605 (1,688,346) (1,297,868) (64,893) (71,424) ============================================================================================================================= Contract transactions Contract purchase payments 39,441 5,704,940 4,647,300 468,929 404,122 Net transfers(1) 146,294 3,924,365 2,317,123 54,151 171,513 Transfers for policy loans -- (7,638) -- -- -- Annuity payments -- (554) (2,834) -- -- Contact charges (13) (2,400) (2,277) -- -- Contract terminations: Surrender benefits (2,412) (91,034) (38,917) (599) -- Death benefits -- (39,094) (26,589) -- -- ----------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 183,310 9,488,585 6,893,806 522,481 575,635 ----------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 6,712 2,028,833 2,036,350 -- -- ----------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $242,627 $ 9,829,072 $7,632,288 $457,588 $504,211 ============================================================================================================================= Accumulation unit activity Units outstanding at beginning of year 7,097 2,146,868 2,156,704 -- -- Contract purchase payments 47,631 6,670,545 5,518,216 492,092 417,687 Net transfers(1) 272,093 4,535,758 2,601,433 61,289 192,430 Transfers for policy loans -- (8,860) -- -- -- Contract charges (17) (3,154) (2,972) -- -- Contract terminations: Surrender benefits (2,533) (132,784) (117,307) (681) -- Death benefits -- (51,598) (32,924) -- -- ----------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 324,271 13,156,775 10,123,150 552,700 610,117 =============================================================================================================================
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 69 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Changes in Net Assets Segregated Asset Subaccounts Period ended December 31, 2002 (continued) 3RE 2RE 1RE 5RE(2) 4RE(2) Operations Investment income (loss) -- net $ 6,770 $ 1,037,266 $ 709,614 $ 11,608 $ 17,236 Net realized gain (loss) on sales of investments 5,054 (619) 1,982 (26,041) (7,178) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments (9,803) (2,049,365) (1,334,802) (92,601) (123,059) ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 2,021 (1,012,718) (623,206) (107,034) (113,001) ============================================================================================================================= Contract transactions Contract purchase payments 59,931 30,039,447 18,431,897 2,721,456 2,521,281 Net transfers(1) (35,080) 20,520,794 17,779,240 326,632 605,996 Transfers for policy loans (368) (60,082) -- (1,591) -- Annuity payments -- (16,017) (7,920) -- -- Contact charges (193) (19,879) (17,422) -- -- Contract terminations: Surrender benefits (30,646) (1,459,045) (1,310,057) (24,759) (2,410) Death benefits -- (210,302) (479,363) -- -- ----------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (6,356) 48,794,916 34,396,375 3,021,738 3,124,867 ----------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 283,986 32,992,245 26,463,745 -- -- ----------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $279,651 $80,774,443 $60,236,914 $2,914,704 $3,011,866 ============================================================================================================================= Accumulation unit activity Units outstanding at beginning of year 210,936 24,476,850 19,803,454 -- -- Contract purchase payments 43,076 21,491,940 13,449,716 2,599,839 2,410,057 Net transfers(1) (26,836) 14,661,797 12,686,885 312,956 581,025 Transfers for policy loans (269) (42,735) -- (1,582) -- Contract charges (139) (14,453) (12,767) -- -- Contract terminations: Surrender benefits (22,149) (1,104,613) (990,253) (23,973) (2,331) Death benefits -- (151,466) (345,834) -- -- ----------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 204,619 59,317,320 44,591,201 2,887,240 2,988,751 =============================================================================================================================
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 70 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Changes in Net Assets Segregated Asset Subaccounts Period ended December 31, 2002 (continued) 3SI 2SI 1SI 5SI(2) 4SI(2) Operations Investment income (loss) -- net $ (599) $ (96,122) $ (119,469) $ (5,137) $ (5,358) Net realized gain (loss) on sales of investments (12,979) (1,399) 161 (3,667) (12,429) Distributions from capital gains 5,679 672,078 525,770 12,206 12,398 Net change in unrealized appreciation or depreciation of investments (33,497) (4,282,792) (3,037,959) (98,690) (111,262) ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (41,396) (3,708,235) (2,631,497) (95,288) (116,651) ============================================================================================================================= Contract transactions Contract purchase payments 24,863 15,962,169 10,037,443 1,672,768 1,223,343 Net transfers(1) 173,726 10,052,041 8,828,278 345,024 373,380 Transfers for policy loans -- (51,308) -- -- -- Annuity payments -- (2,518) (2,162) -- -- Contact charges (104) (12,233) (8,688) -- -- Contract terminations: Surrender benefits (16,317) (610,575) (476,219) (16,481) (3,515) Death benefits -- (55,590) (187,804) -- -- ----------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 182,168 25,281,986 18,190,848 2,001,311 1,593,208 ----------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 203,677 14,607,898 12,869,436 -- -- ----------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $344,449 $36,181,649 $28,428,787 $1,906,023 $1,476,557 ============================================================================================================================= Accumulation unit activity Units outstanding at beginning of year 150,319 10,800,259 9,583,606 -- -- Contract purchase payments 18,008 12,066,957 7,837,429 1,744,618 1,229,627 Net transfers(1) 125,791 7,473,331 6,653,181 347,357 384,113 Transfers for policy loans -- (40,999) -- -- -- Contract charges (77) (9,622) (6,884) -- -- Contract terminations: Surrender benefits (12,248) (502,154) (371,207) (17,450) (3,865) Death benefits -- (45,189) (143,274) -- -- ----------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 281,793 29,742,583 23,552,851 2,074,525 1,609,875 =============================================================================================================================
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 71 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Changes in Net Assets Segregated Asset Subaccounts Period ended December 31, 2002 (continued) 3MS 2MS 1MS 5MS(2) 4MS(2) Operations Investment income (loss) -- net $ (304) $ (336) $ (5,468) $ (2,454) $ (2,043) Net realized gain (loss) on sales of investments (28) (13,156) (16,300) (3,188) (4,879) Distributions from capital gains 11 82,117 74,894 7,057 11,680 Net change in unrealized appreciation or depreciation of investments (10,395) (722,518) (591,167) (67,907) (98,227) ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (10,716) (653,893) (538,041) (66,492) (93,469) ============================================================================================================================= Contract transactions Contract purchase payments 6,460 6,346,151 5,137,777 1,302,356 1,119,696 Net transfers(1) 114,769 2,713,369 2,069,471 311,996 241,940 Transfers for policy loans -- (4,684) -- (950) -- Annuity payments -- -- -- -- -- Contact charges (1) (1,555) (1,128) -- -- Contract terminations: Surrender benefits -- (62,924) (31,104) (2,924) (8,096) Death benefits -- -- (849) -- -- ----------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 121,228 8,990,357 7,174,167 1,610,478 1,353,540 ----------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 9 909,798 1,074,799 -- -- ----------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $110,521 $9,246,262 $7,710,925 $1,543,986 $1,260,071 ============================================================================================================================= Accumulation unit activity Units outstanding at beginning of year 10 942,403 1,114,064 -- -- Contract purchase payments 7,800 7,049,451 5,802,100 1,402,118 1,171,050 Net transfers(1) 122,617 3,028,916 2,272,671 336,793 256,239 Transfers for policy loans -- (4,852) -- (883) -- Contract charges (1) (1,843) (1,339) -- -- Contract terminations: Surrender benefits -- (71,862) (35,909) (3,267) (8,980) Death benefits -- -- (1,005) -- -- ----------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 130,426 10,942,213 9,150,582 1,734,761 1,418,309 =============================================================================================================================
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 72 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Changes in Net Assets Segregated Asset Subaccounts Period ended December 31, 2002 (continued) 3UE 2UE 1UE 5UE(2) 4UE(2) Operations Investment income (loss) -- net $ (756) $ (63,009) $ (197,745) $ 2,228 $ (370) Net realized gain (loss) on sales of investments (270,689) (963,955) (1,876,119) (8,894) (10,031) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 51,197 (12,166,443) (12,710,694) (51,028) (178,276) ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (220,248) (13,193,407) (14,784,558) (57,694) (188,677) ============================================================================================================================= Contract transactions Contract purchase payments 1,206,208 10,890,917 7,150,831 652,283 1,033,928 Net transfers(1) (1,302,594) (426,261) (1,161,061) 249,235 362,206 Transfers for policy loans (2,267) (67,008) -- -- -- Annuity payments -- (7,182) (16,261) -- -- Contact charges (203) (32,335) (26,694) -- -- Contract terminations: Surrender benefits (31,231) (1,058,454) (1,430,830) (1,530) (17,849) Death benefits -- (132,712) (740,275) -- -- ----------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (130,087) 9,166,965 3,775,710 899,988 1,378,285 ----------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 818,177 52,274,999 61,360,603 -- -- ----------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 467,842 $ 48,248,557 $ 50,351,755 $842,294 $1,189,608 ============================================================================================================================= Accumulation unit activity Units outstanding at beginning of year 943,339 60,342,746 71,184,706 -- -- Contract purchase payments 19,129 14,587,614 9,599,116 748,262 1,104,149 Net transfers(1) (224,012) (1,295,472) (2,260,621) 301,816 402,306 Transfers for policy loans (2,630) (86,770) -- -- -- Contract charges (265) (44,138) (36,136) -- -- Contract terminations: Surrender benefits (41,285) (1,515,015) (1,999,970) (1,888) (23,436) Death benefits -- (169,123) (998,360) -- -- ----------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 694,276 71,819,842 75,488,735 1,048,190 1,483,019 =============================================================================================================================
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 73 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Changes in Net Assets Segregated Asset Subaccounts Period ended December 31, 2002 (continued) 3MC 2MC 1MC 5MC(2) 4MC(2) Operations Investment income (loss) -- net $ 3,715 $ 363,858 $ 179,498 $ 14,981 $ 12,195 Net realized gain (loss) on sales of investments (10,219) (1,892) 1,096 (12,006) (5,387) Distributions from capital gains 1,787 226,426 191,001 7,436 8,164 Net change in unrealized appreciation or depreciation of investments (48,745) (5,353,378) (4,290,020) (143,491) (216,041) ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (53,462) (4,764,986) (3,918,425) (133,080) (201,069) ============================================================================================================================= Contract transactions Contract purchase payments 36,908 25,706,114 15,937,064 2,108,887 2,033,410 Net transfers(1) 351,157 20,885,551 17,645,576 494,368 818,992 Transfers for policy loans 1,814 (35,100) -- -- -- Annuity payments -- (3,811) (14,898) -- -- Contact charges (176) (30,266) (22,114) -- -- Contract terminations: Surrender benefits (24,392) (1,420,380) (1,528,386) (5,927) (7,052) Death benefits -- (128,596) (446,497) -- -- ----------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 365,311 44,973,512 31,570,745 2,597,328 2,845,350 ----------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 275,802 32,636,756 33,835,944 -- -- ----------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $587,651 $72,845,282 $61,488,264 $2,464,248 $2,644,281 ============================================================================================================================= Accumulation unit activity Units outstanding at beginning of year 200,117 23,748,152 24,711,163 -- -- Contract purchase payments 26,218 18,629,848 11,743,803 2,094,147 1,977,213 Net transfers(1) 240,159 14,927,262 12,652,556 495,037 806,850 Transfers for policy loans 1,188 (24,652) -- -- -- Contract charges (125) (22,467) (16,502) -- -- Contract terminations: Surrender benefits (17,903) (1,083,441) (1,221,085) (6,097) (7,326) Death benefits -- (95,367) (331,261) -- -- ----------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 449,654 56,079,335 47,538,674 2,583,087 2,776,737 =============================================================================================================================
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 74 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Changes in Net Assets Segregated Asset Subaccounts Period ended December 31, 2002 (continued) 3FS 2FS 1FS 5FS(2) 4FS(2) Operations Investment income (loss) -- net $ 7 $ 7,263 $ 130 $ 1,258 $ 292 Net realized gain (loss) on sales of investments (25) (1,589) (12,206) 756 (2,861) Distributions from capital gains 9 14,836 9,639 1,484 1,259 Net change in unrealized appreciation or depreciation of investments (350) (608,683) (398,526) (9,451) (38,662) ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (359) (588,173) (400,963) (5,953) (39,972) ============================================================================================================================= Contract transactions Contract purchase payments 1,250 2,811,344 1,983,738 204,306 262,165 Net transfers(1) 2,062 1,328,077 621,874 258,736 164,573 Transfers for policy loans -- (6,882) -- -- -- Annuity payments -- -- -- -- -- Contact charges (5) (1,717) (1,502) -- -- Contract terminations: Surrender benefits (98) (27,762) (36,632) (312) (156) Death benefits -- -- (9,421) -- -- ----------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 3,209 4,103,060 2,558,057 462,730 426,582 ----------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 10 1,043,826 869,140 -- -- ----------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $2,860 $4,558,713 $3,026,234 $456,777 $386,610 ============================================================================================================================= Accumulation unit activity Units outstanding at beginning of year 10 1,081,186 900,903 -- -- Contract purchase payments 1,468 3,062,073 2,170,616 218,518 269,224 Net transfers(1) 2,142 1,470,576 692,619 308,061 177,155 Transfers for policy loans -- (7,626) -- -- -- Contract charges (5) (2,113) (1,801) -- -- Contract terminations: Surrender benefits (131) (32,282) (43,471) (316) (172) Death benefits -- -- (9,791) -- -- ----------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 3,484 5,571,814 3,709,075 526,263 446,207 =============================================================================================================================
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 75 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Changes in Net Assets Segregated Asset Subaccounts Period ended December 31, 2002 (continued) 3TC 2TC 1TC 5TC(2) 4TC(2) Operations Investment income (loss) -- net $ (186) $ (9,060) $ (11,128) $ (551) $ (604) Net realized gain (loss) on sales of investments (32,625) (29,282) (73,896) 429 (7,032) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments (112) (716,596) (720,545) (31,192) (26,647) ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (32,923) (754,938) (805,569) (31,314) (34,283) ============================================================================================================================= Contract transactions Contract purchase payments 34,154 1,445,708 889,647 114,702 70,366 Net transfers(1) -- 700,575 502,896 25,473 51,672 Transfers for policy loans -- (1,965) -- -- -- Annuity payments -- -- -- -- -- Contact charges (1) (995) (779) -- -- Contract terminations: Surrender benefits -- (20,127) (30,204) (1,292) (28) Death benefits -- (6,069) (23,472) -- -- ----------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 34,153 2,117,127 1,338,088 138,883 122,010 ----------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 10 445,049 827,719 -- -- ----------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 1,240 $1,807,238 $1,360,238 $107,569 $ 87,727 ============================================================================================================================= Accumulation unit activity Units outstanding at beginning of year 11 489,634 911,194 -- -- Contract purchase payments 2,566 2,277,851 1,343,681 152,836 82,162 Net transfers(1) -- 1,056,896 669,149 40,805 74,472 Transfers for policy loans -- (3,157) -- -- -- Contract charges (1) (2,039) (1,582) -- -- Contract terminations: Surrender benefits -- (37,668) (47,757) (1,968) (43) Death benefits -- (12,640) (30,126) -- -- ----------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 2,576 3,768,877 2,844,559 191,673 156,591 =============================================================================================================================
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 76 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Changes in Net Assets Segregated Asset Subaccounts Period ended December 31, 2002 (continued) 3MG 2MG 1MG 5MG(2) 4MG(2) Operations Investment income (loss) -- net $ (2,685) $ (256,634) $ (303,815) $ (3,935) $ (3,333) Net realized gain (loss) on sales of investments (84,627) (793,817) (1,108,330) (2,249) (4,914) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments (84,925) (10,765,671) (9,711,494) (126,071) (75,217) ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (172,237) (11,816,122) (11,123,639) (132,255) (83,464) ============================================================================================================================= Contract transactions Contract purchase payments 31,554 10,417,521 6,229,638 884,800 451,282 Net transfers(1) (96,311) 2,272,851 1,805,651 74,065 172,365 Transfers for policy loans 1,990 (32,639) -- -- -- Annuity payments -- (8,418) (11,737) -- -- Contact charges (233) (24,920) (16,154) -- -- Contract terminations: Surrender benefits (89) (657,839) (817,902) (1,050) (1,081) Death benefits -- (316,519) (218,845) -- -- ----------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (63,089) 11,650,037 6,970,651 957,815 622,566 ----------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 617,667 34,000,110 34,386,783 -- -- ----------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $382,341 $ 33,834,025 $ 30,233,795 $ 825,560 $539,102 ============================================================================================================================= Accumulation unit activity Units outstanding at beginning of year 913,438 50,211,519 51,051,303 -- -- Contract purchase payments 49,936 18,279,637 11,062,365 1,007,998 519,054 Net transfers(1) (180,943) 3,012,293 2,495,971 81,215 193,764 Transfers for policy loans 3,200 (56,899) -- -- -- Contract charges (439) (45,941) (29,908) -- -- Contract terminations: Surrender benefits (148) (1,288,280) (1,535,284) (1,322) (1,291) Death benefits -- (535,914) (381,887) -- -- ----------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 785,044 69,576,415 62,662,560 1,087,891 711,527 =============================================================================================================================
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 77 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Changes in Net Assets Segregated Asset Subaccounts Period ended December 31, 2002 (continued) 3MD 2MD 1MD 5MD(2) 4MD(2) Operations Investment income (loss) -- net $ (2,109) $ (252,889) $ (312,231) $ (7,651) $ (8,103) Net realized gain (loss) on sales of investments (71,467) (146,680) (451,597) (7,925) (7,720) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments (89,005) (13,130,549) (12,676,865) (249,453) (250,135) ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (162,581) (13,530,118) (13,440,693) (265,029) (265,958) ============================================================================================================================= Contract transactions Contract purchase payments 40,282 13,116,806 8,784,803 1,479,196 1,145,203 Net transfers(1) (10,435) 6,737,157 4,934,262 318,433 409,842 Transfers for policy loans -- (40,577) -- -- -- Annuity payments -- (2,833) (1,677) -- -- Contact charges (145) (24,506) (16,420) -- -- Contract terminations: Surrender benefits (64,533) (552,847) (706,502) (5,853) (1,576) Death benefits -- (217,950) (222,963) -- -- ----------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (34,831) 19,015,250 12,771,503 1,791,776 1,553,469 ----------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 494,612 30,681,980 33,044,416 -- -- ----------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 297,200 $ 36,167,112 $ 32,375,226 $1,526,747 $1,287,511 ============================================================================================================================= Accumulation unit activity Units outstanding at beginning of year 547,539 34,072,333 36,822,197 -- -- Contract purchase payments 52,444 17,942,518 11,870,022 1,745,497 1,293,996 Net transfers(1) (27,085) 8,458,842 6,033,466 373,579 491,967 Transfers for policy loans -- (54,694) -- -- -- Contract charges (220) (35,874) (24,051) -- -- Contract terminations: Surrender benefits (87,608) (829,539) (1,000,783) (7,353) (2,101) Death benefits -- (281,115) (317,532) -- -- ----------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 485,070 59,272,471 53,383,319 2,111,723 1,783,862 =============================================================================================================================
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 78 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Changes in Net Assets Segregated Asset Subaccounts Period ended December 31, 2002 (continued) 3UT 2UT 1UT 5UT(2) 4UT(2) Operations Investment income (loss) -- net $ 1,974 $ 54,956 $ 49,969 $ 827 $ 1,811 Net realized gain (loss) on sales of investments (221) (27,566) (125,966) (4,956) (8,077) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments (30,610) (1,058,976) (813,369) (11,429) (40,047) ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (28,857) (1,031,586) (889,366) (15,558) (46,313) ============================================================================================================================= Contract transactions Contract purchase payments 903 4,182,357 2,280,914 186,408 334,547 Net transfers(1) -- 1,515,571 1,197,847 66,214 78,690 Transfers for policy loans -- (13,399) -- -- -- Annuity payments -- -- (2,706) -- -- Contact charges (141) (2,993) (2,351) -- -- Contract terminations: Surrender benefits (93) (104,789) (190,723) (2,461) (941) Death benefits -- (23,088) (53,790) -- -- ----------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 669 5,553,659 3,229,191 250,161 412,296 ----------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 123,407 2,672,004 2,513,303 -- -- ----------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 95,219 $ 7,194,077 $4,853,128 $234,603 $365,983 ============================================================================================================================= Accumulation unit activity Units outstanding at beginning of year 138,296 2,996,710 2,777,731 -- -- Contract purchase payments 1,235 5,729,510 3,128,074 207,301 352,527 Net transfers(1) -- 2,032,292 1,550,103 71,097 79,232 Transfers for policy loans -- (18,926) -- -- -- Contract charges (213) (4,601) (3,600) -- -- Contract terminations: Surrender benefits (157) (157,252) (280,952) (2,879) (1,139) Death benefits -- (34,276) (78,077) -- -- ----------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 139,161 10,543,457 7,093,279 275,519 430,620 =============================================================================================================================
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 79 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Changes in Net Assets Segregated Asset Subaccounts Period ended December 31, 2002 (continued) 3HS 2HS 1HS 5HS(2) 4HS(2) Operations Investment income (loss) -- net $ (633) $ (42,173) $ (33,448) $ (2,497) $ (3,186) Net realized gain (loss) on sales of investments (90) (17,171) (49,501) (1,346) (5,929) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments (26,477) (1,122,822) (758,201) (49,270) (56,128) ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (27,200) (1,182,166) (841,150) (53,113) (65,243) ============================================================================================================================= Contract transactions Contract purchase payments 13,448 5,850,268 3,107,073 393,032 456,767 Net transfers(1) 375 2,223,581 1,179,650 158,571 77,675 Transfers for policy loans -- (12,920) -- -- -- Annuity payments -- (12) -- -- -- Contact charges (164) (3,660) (2,292) -- -- Contract terminations: Surrender benefits (106) (72,617) (57,239) (1,323) (272) Death benefits -- (38,055) (6,742) -- -- ----------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 13,553 7,946,585 4,220,450 550,280 534,170 ----------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 126,387 2,098,225 1,710,449 -- -- ----------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $112,740 $ 8,862,644 $5,089,749 $497,167 $468,927 ============================================================================================================================= Accumulation unit activity Units outstanding at beginning of year 128,607 2,136,818 1,743,428 -- -- Contract purchase payments 16,064 6,855,015 3,600,002 436,101 492,017 Net transfers(1) 475 2,581,647 1,309,278 182,694 91,458 Transfers for policy loans -- (15,629) -- -- -- Contract charges (201) (4,657) (2,922) -- -- Contract terminations: Surrender benefits (137) (89,519) (68,112) (1,539) (322) Death benefits -- (47,950) (7,452) -- -- ----------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 144,808 11,415,725 6,574,222 617,256 583,153 =============================================================================================================================
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 80 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Changes in Net Assets Segregated Asset Subaccounts Period ended December 31, 2002 (continued) 3PI 2PI 1PI 5PI(2) 4PI(2) Operations Investment income (loss) -- net $ 261 $ (30,152) $ (29,006) $ (6,370) $ (4,754) Net realized gain (loss) on sales of investments (15,784) (2,471) (6,066) (6,476) (6,464) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 5,176 (1,844,441) (1,304,489) (137,716) (112,829) ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (10,347) (1,877,064) (1,339,561) (150,562) (124,047) ============================================================================================================================= Contract transactions Contract purchase payments 21,629 10,519,460 7,375,041 1,598,971 974,738 Net transfers(1) 280,228 5,479,955 3,825,599 348,740 345,682 Transfers for policy loans -- (20,759) -- (1,278) -- Annuity payments -- (20) -- -- -- Contact charges (1) (3,327) (2,589) -- -- Contract terminations: Surrender benefits (96) (113,591) (67,207) (2,080) (699) Death benefits -- (43,467) (34,903) -- (679) ----------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 301,760 15,818,251 11,095,941 1,944,353 1,319,042 ----------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 402,161 2,363,246 2,092,135 -- -- ----------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $693,574 $16,304,433 $11,848,515 $1,793,791 $1,194,995 ============================================================================================================================= Accumulation unit activity Units outstanding at beginning of year 418,356 2,460,406 2,180,274 -- -- Contract purchase payments 22,774 12,139,721 8,647,322 1,709,305 1,016,413 Net transfers(1) 440,166 6,392,363 4,437,292 380,270 377,257 Transfers for policy loans -- (23,498) -- (1,255) -- Contract charges (1) (4,278) (3,291) -- -- Contract terminations: -- Surrender benefits (134) (139,309) (78,177) (2,316) (751) Death benefits -- (52,700) (45,568) -- (824) ----------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 881,161 20,772,705 15,137,852 2,086,004 1,392,095 =============================================================================================================================
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 81 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Changes in Net Assets Segregated Asset Subaccounts Period ended December 31, 2002 (continued) 3VS 2VS 1VS 5VS(2) 4VS(2) Operations Investment income (loss) -- net $ (3,636) $ (385,531) $ (536,834) $ (1,009) $ (696) Net realized gain (loss) on sales of investments (376,548) (5,661,623) (12,292,996) (544) (566) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 116,409 (14,121,442) (9,589,578) (29,541) (12,669) ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (263,775) (20,168,596) (22,419,408) (31,094) (13,931) ============================================================================================================================= Contract transactions Contract purchase payments 27,894 8,492,606 4,004,590 202,082 126,808 Net transfers(1) (291,386) (8,197,615) (10,765,284) 25,098 27,293 Transfers for policy loans (3,812) (92,203) -- -- -- Annuity payments -- (4,672) (22,310) -- -- Contact charges (303) (64,203) (42,622) -- -- Contract terminations: Surrender benefits (93,099) (1,210,509) (1,547,977) (1,166) -- Death benefits -- (264,142) (482,379) -- -- ----------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (360,706) (1,340,738) (8,855,982) 226,014 154,101 ----------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 934,611 63,852,496 74,483,171 -- -- ----------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 310,130 $ 42,343,162 $ 43,207,781 $194,920 $140,170 ============================================================================================================================= Accumulation unit activity Units outstanding at beginning of year 1,092,048 74,818,967 87,722,365 -- -- Contract purchase payments 37,817 12,021,340 5,697,185 235,761 158,308 Net transfers(1) (478,596) (12,432,366) (16,396,966) 32,541 34,104 Transfers for policy loans (4,546) (125,199) -- -- -- Contract charges (447) (93,898) (61,956) -- -- Contract terminations: Surrender benefits (121,288) (1,789,265) (2,339,054) (1,190) -- Death benefits -- (366,986) (691,817) -- -- ----------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 524,988 72,032,593 73,929,757 267,112 192,412 =============================================================================================================================
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 82 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Changes in Net Assets Segregated Asset Subaccounts Period ended December 31, 2002 (continued) 3SO 2SO 1SO 5SO(2) 4SO(2) Operations Investment income (loss) -- net $ 210 $ 1,093 $ (23,135) $ (81) $ (3,709) Net realized gain (loss) on sales of investments (181) (6,234) (31,634) (27,196) (45,337) Distributions from capital gains 4,627 385,946 258,468 36,278 31,934 Net change in unrealized appreciation or depreciation of investments (46,961) (4,121,068) (3,135,858) (280,597) (350,441) ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (42,305) (3,740,263) (2,932,159) (271,596) (367,553) ============================================================================================================================= Contract transactions Contract purchase payments 42,580 13,250,420 7,749,316 1,584,132 1,687,406 Net transfers(1) 92,086 5,336,892 3,912,352 443,313 177,536 Transfers for policy loans -- (11,837) -- -- -- Annuity payments -- (2,052) (1,122) -- -- Contact charges (156) (5,374) (4,551) -- -- Contract terminations: Surrender benefits (82) (178,643) (114,206) (3,431) (13,722) Death benefits -- (29,655) (24,085) -- -- ----------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 134,428 18,359,751 11,517,704 2,024,014 1,851,220 ----------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 134,428 3,671,538 3,711,533 -- -- ----------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $226,551 $18,291,026 $12,297,078 $1,752,418 $1,483,667 ============================================================================================================================= Accumulation unit activity Units outstanding at beginning of year 135,509 3,700,618 3,747,064 -- -- Contract purchase payments 51,413 15,766,810 9,086,671 1,822,128 1,827,717 Net transfers(1) 127,770 6,267,410 4,515,474 522,485 175,474 Transfers for policy loans -- (14,070) -- -- -- Contract charges (213) (7,531) (6,323) -- -- Contract terminations: Surrender benefits (130) (275,225) (180,687) (4,336) (18,281) Death benefits -- (41,377) (32,355) -- -- ----------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 314,349 25,396,635 17,129,844 2,340,277 1,984,910 =============================================================================================================================
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 83 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Changes in Net Assets Segregated Asset Subaccounts Period ended December 31, 2002 (continued) 3IT 2IT 1IT 5IT(2) 4IT(2) Operations Investment income (loss) -- net $ (4,886) $ (208,427) $ (271,063) $ (4,004) $ (3,891) Net realized gain (loss) on sales of investments (114,517) (204,841) (753,804) (3,286) (5,255) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 61,802 (4,210,201) (3,628,072) (45,145) (59,832) ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (57,601) (4,623,469) (4,652,939) (52,435) (68,978) ============================================================================================================================= Contract transactions Contract purchase payments 51,418 9,327,354 6,321,855 1,172,857 774,284 Net transfers(1) 491,742 3,973,057 4,285,898 214,314 212,173 Transfers for policy loans (5,505) (35,902) -- (962) -- Annuity payments -- (2,303) (4,475) -- -- Contact charges (350) (20,280) (14,377) -- -- Contract terminations: Surrender benefits (51,547) (543,855) (739,923) (6,931) (127) Death benefits -- (84,527) (310,882) -- -- ----------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 485,758 12,613,544 9,538,096 1,379,278 986,330 ----------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 654,220 23,627,517 25,663,389 -- -- ----------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $1,082,377 $31,617,592 $30,548,546 $1,326,843 $917,352 ============================================================================================================================= Accumulation unit activity Units outstanding at beginning of year 768,839 27,817,713 30,296,994 -- -- Contract purchase payments 65,599 11,583,078 8,081,187 1,306,733 824,627 Net transfers(1) 713,258 5,032,907 5,288,582 225,488 230,513 Transfers for policy loans (6,332) (44,915) -- (1,120) -- Contract charges (434) (25,558) (18,094) -- -- Contract terminations: Surrender benefits (57,050) (701,350) (953,926) (7,852) (149) Death benefits -- (107,873) (385,906) -- -- ----------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 1,483,880 43,554,002 42,308,837 1,523,249 1,054,991 =============================================================================================================================
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 84 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Changes in Net Assets Segregated Asset Subaccounts Period ended December 31, 2002 (continued) 3SP 2SP 1SP 5SP(2) 4SP(2) Operations Investment income (loss) -- net $ (5,004) $ (463,521) $ (595,605) $ (12,148) $ (15,328) Net realized gain (loss) on sales of investments (30,188) (5,393) (119,971) (9,459) (36,377) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments (152,303) (11,741,930) (11,893,766) (159,650) (264,870) ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (187,495) (12,210,844) (12,609,342) (181,257) (316,575) ============================================================================================================================= Contract transactions Contract purchase payments 68,244 26,715,272 18,130,356 2,790,294 2,488,759 Net transfers(1) 34,504 14,825,155 12,140,991 584,723 497,034 Transfers for policy loans (3,199) (75,788) -- (1,629) -- Annuity payments -- (3,204) (12,497) -- -- Contact charges (319) (38,893) (30,181) -- -- Contract terminations: Surrender benefits (51,246) (1,229,699) (1,477,203) (20,405) (12,056) Death benefits -- (310,011) (432,409) -- (1,406) ----------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 47,984 39,882,832 28,319,057 3,352,983 2,972,331 ----------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 958,142 47,363,850 53,762,660 -- -- ----------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $818,631 $ 75,035,838 $ 69,472,375 $3,171,726 $2,655,756 ============================================================================================================================= Accumulation unit activity Units outstanding at beginning of year 819,784 40,791,482 46,456,080 -- -- Contract purchase payments 62,318 25,474,549 17,344,297 3,109,491 2,604,506 Net transfers(1) 11,404 13,657,813 11,022,673 648,350 542,206 Transfers for policy loans (2,805) (74,886) -- (1,905) -- Contract charges (293) (38,015) (29,565) -- -- Contract terminations: Surrender benefits (43,710) (1,212,634) (1,512,468) (23,632) (14,308) Death benefits -- (287,226) (428,044) -- (1,727) ----------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 846,698 78,311,083 72,852,973 3,732,304 3,130,677 =============================================================================================================================
-------------------------------------------------------------------------------- 85 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Changes in Net Assets Segregated Asset Subaccounts Period ended December 31, 2002 (continued) 3IP 2IP 1IP 5IP(2) 4IP(2) Operations Investment income (loss) -- net $ (16) $ (100,626) $ (139,900) $ (1,418) $ (2,526) Net realized gain (loss) on sales of investments 59,276 (52,369) (260,970) (2,038) (1,909) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 5,085 (1,811,344) (1,621,411) (12,604) (32,099) ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 64,345 (1,964,339) (2,022,281) (16,060) (36,534) ============================================================================================================================= Contract transactions Contract purchase payments 40,891 6,418,148 3,667,889 368,669 415,680 Net transfers(1) 122,639 3,342,871 3,071,393 111,040 141,412 Transfers for policy loans 368 (8,668) -- -- -- Annuity payments -- (8,020) (9,929) -- -- Contact charges (66) (8,330) (6,612) -- -- Contract terminations: Surrender benefits (1,772) (283,564) (294,712) (3,942) (32) Death benefits -- (29,409) (155,011) -- -- ----------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 162,060 9,423,028 6,273,018 475,767 557,060 ----------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 184,363 11,604,651 14,291,834 -- -- ----------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $410,768 $19,063,340 $18,542,571 $459,707 $520,526 ============================================================================================================================= Accumulation unit activity Units outstanding at beginning of year 253,393 15,860,418 19,727,365 -- -- Contract purchase payments 61,088 9,327,334 5,452,579 386,442 428,022 Net transfers(1) 323,069 4,850,797 4,492,775 117,278 138,457 Transfers for policy loans 553 (13,405) -- -- -- Contract charges (97) (12,425) (9,961) -- -- Contract terminations: Surrender benefits (2,404) (437,013) (577,996) (4,333) (35) Death benefits -- (43,779) (231,400) -- -- ----------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 635,602 29,531,927 28,853,362 499,387 566,444 ============================================================================================================================= (1) Includes transfer activity from (to) other subaccounts and transfers from (to) IDS Life's fixed account. (2) For the period Feb. 13, 2002 (commencement of operations) to Dec. 31, 2002. =============================================================================================================================
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 86 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Changes in Net Assets Segregated Asset Subaccounts Year ended December 31, 2001 CR3 CR2 CR1 CM3 CM2 Operations Investment income (loss) -- net $ (727) $ (91,410) $ (130,576) $ 232,236 $ 6,693,209 Net realized gain (loss) on sale of investments (155,527) (1,446,808) (1,013,877) (180) (5,115) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 77,338 (3,108,462) (3,287,133) (9) (2,181) -------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (78,916) (4,646,680) (4,431,586) 232,047 6,685,913 ================================================================================================================================ Contract transactions Contract purchase payments 7,965 4,776,551 4,389,778 12,532,302 369,657,167 Net transfers(1) 46,804 (1,587,827) 594,595 (4,219,613) (281,078,216) Transfers for policy loans -- (16,136) -- (3,472) (646,854) Annuity payments -- (14,795) (8,738) -- (10,821) Contract charges (67) (11,664) (8,792) (422) (34,717) Contract terminations: Surrender benefits (3,000) (674,343) (673,922) (9,369,308) (9,225,653) Death benefits -- (79,495) (292,495) -- (913,821) -------------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 51,702 2,392,291 4,000,426 (1,060,513) 77,747,085 -------------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 249,515 22,498,228 20,805,184 7,047,238 182,627,717 -------------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $222,301 $20,243,839 $20,374,024 $6,218,772 $ 267,060,715 ================================================================================================================================ Accumulation unit activity Units outstanding at beginning of year 266,218 24,003,237 22,158,834 6,615,282 171,785,378 Contract purchase payments 9,392 5,867,959 5,314,026 11,574,554 341,825,045 Net transfers(1) 19,648 (2,553,526) 574,720 (3,894,708) (259,751,737) Transfers for policy loans -- (19,854) -- (3,192) (603,310) Contract charges (82) (14,838) (11,157) (385) (31,998) Contract terminations: Surrender benefits (3,969) (848,811) (874,065) (8,633,475) (8,515,673) Death benefits -- (107,334) (383,402) -- (837,718) -------------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 291,207 26,326,833 26,778,956 5,658,076 243,869,987 ================================================================================================================================
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 87 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Changes in Net Assets Segregated Asset Subaccounts Year ended December 31, 2001 (continued) CM1 BD3 BD2 BD1 DE3 Operations Investment income (loss) -- net $ 6,777,254 $ 34,948 $ 3,511,227 $ 4,472,512 $ 1,754 Net realized gain (loss) on sale of investments (6,224) 9,785 11,539 10,608 15,880 Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments (1,569) (5,986) 21,829 125,819 (3,401) ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 6,769,461 38,747 3,544,595 4,608,939 14,233 ============================================================================================================================= Contract transactions Contract purchase payments 342,222,386 102,774 42,970,829 49,725,069 23,747 Net transfers(1) (263,139,059) 578,387 18,805,553 21,962,987 193,867 Transfers for policy loans -- -- (70,196) -- -- Annuity payments (8,031) -- (29,070) (16,215) -- Contract charges (36,516) (18) (11,523) (14,674) (76) Contract terminations: Surrender benefits (8,710,090) (33,915) (1,777,156) (1,194,952) (163,632) Death benefits (3,529,330) -- (426,007) (879,328) -- ----------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 66,799,360 647,228 59,462,430 69,582,887 53,906 ----------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 216,160,455 435,921 32,903,174 46,643,337 219,745 ----------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 289,729,276 $1,121,896 $95,910,199 $120,835,163 $ 287,884 ============================================================================================================================= Accumulation unit activity Units outstanding at beginning of year 203,921,835 409,536 30,783,302 43,919,764 218,167 Contract purchase payments 317,770,845 93,465 38,716,653 45,045,501 24,242 Net transfers(1) (244,865,486) 511,400 16,518,832 19,675,405 198,574 Transfers for policy loans -- -- (59,966) -- -- Contract charges (33,798) (16) (10,334) (13,229) (77) Contract terminations: Surrender benefits (8,070,470) (29,839) (1,594,166) (1,077,005) (159,457) Death benefits (3,267,463) -- (385,976) (790,563) -- ----------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 265,455,463 984,546 83,968,345 106,759,873 281,449 =============================================================================================================================
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 88 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Changes in Net Assets Segregated Asset Subaccounts Year ended December 31, 2001 (continued) DE2 DE1 EM3 EM2 EM1 Operations Investment income (loss) -- net $ 130,806 $ 75,573 $ (19,606) $ (7,440) $ (7,822) Net realized gain (loss) on sale of investments (18,579) 6,237 (310,796) (32,388) (23,970) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 400,925 318,919 257,738 30,375 24,439 ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 513,152 400,729 (72,664) (9,453) (7,353) ============================================================================================================================= Contract transactions Contract purchase payments 13,752,558 14,054,361 9 423,682 340,551 Net transfers(1) 19,259,054 14,212,636 1,302 224,616 306,917 Transfers for policy loans (45,235) -- -- 6 -- Annuity payments (15,001) (4,776) -- -- -- Contract charges (7,748) (6,393) -- (388) (325) Contract terminations: Surrender benefits (909,530) (479,935) -- (15,340) (38,486) Death benefits (47,949) (378,637) -- -- (3,324) ----------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 31,986,149 27,397,256 1,311 632,576 605,333 ----------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 12,314,922 14,383,005 3,745,755 667,909 510,421 ----------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $44,814,223 $42,180,990 $3,674,402 $1,291,032 $1,108,401 ============================================================================================================================= Accumulation unit activity Units outstanding at beginning of year 12,123,600 14,226,644 1,252 905,842 693,177 Contract purchase payments 13,564,035 13,856,380 14 610,461 474,542 Net transfers(1) 18,634,557 14,080,483 2,003 296,013 437,651 Transfers for policy loans (44,661) -- -- 8 -- Contract charges (7,724) (6,381) -- (585) (495) Contract terminations: Surrender benefits (894,796) (485,399) -- (22,297) (58,645) Death benefits (46,843) (372,450) -- -- (4,724) ----------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 43,328,168 41,299,277 3,269 1,789,442 1,541,506 =============================================================================================================================
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 89 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Changes in Net Assets Segregated Asset Subaccounts Period ended December 31, 2001 (continued) ES3(2) ES2(2) ES1(2) GB3 GB2 Operations Investment income (loss) -- net $ (7,461) $ (4,556) $ (5,336) $ 3,420 $ 374,108 Net realized gain (loss) on sale of investments (47,771) (755) (3,305) 6,523 8,801 Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 85,247 166,115 145,238 (3,993) (248,055) ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 30,015 160,804 136,597 5,950 134,854 ============================================================================================================================= Contract transactions Contract purchase payments 2,001,788 1,104,678 1,223,750 4,415 3,913,988 Net transfers(1) 30,841 1,222,298 865,376 243,869 4,150,291 Transfers for policy loans -- (2,271) -- -- (7,782) Annuity payments -- -- -- -- (223) Contract charges -- (93) (51) (6) (2,027) Contract terminations: Surrender benefits -- (8,855) (821) -- (238,993) Death benefits -- -- (420) -- (49,779) ----------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 2,032,629 2,315,757 2,087,834 248,278 7,765,475 ----------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year -- -- -- 4,209 9,199,006 ----------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $2,062,644 $2,476,561 $2,224,431 $258,437 $17,099,335 ============================================================================================================================= Accumulation unit activity Units outstanding at beginning of year -- -- -- 4,092 8,967,857 Contract purchase payments 1,930 1,194,587 1,328,039 4,248 3,840,138 Net transfers(1) 35,746 1,306,648 911,692 241,119 4,053,818 Transfers for policy loans -- (2,764) -- -- (6,265) Contract charges -- (98) (55) (6) (1,972) Contract terminations: Surrender benefits -- (9,603) (829) -- (233,242) Death benefits -- -- (495) -- (48,247) ----------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 37,676 2,488,770 2,238,352 249,453 16,572,087 =============================================================================================================================
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 90 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Changes in Net Assets Segregated Asset Subaccounts Year ended December 31, 2001 (continued) GB1 GR3 GR2 GR1 EI3 Operations Investment income (loss) -- net $ 515,000 $ (6,112) $ (644,742)$ (854,224) $ 151,488 Net realized gain (loss) on sale of investments 7,743 (626,041) (2,056,467) (2,571,206) (222,323) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments (374,661) 96,024 (31,681,624) (33,312,633) 124,421 ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 148,082 (536,129) (34,382,833) (36,738,063) 53,586 ============================================================================================================================= Contract transactions Contract purchase payments 6,302,051 87,097 22,672,049 16,856,244 28,149 Net transfers(1) 4,226,401 (341,843) 5,300,049 6,551,337 318,431 Transfers for policy loans -- 383 (73,853) -- -- Annuity payments -- -- (13,230) (8,261) -- Contract charges (3,360) (391) (82,403) (50,870) (81) Contract terminations: Surrender benefits (251,279) (32,568) (1,542,695) (1,763,967) (6,983) Death benefits (265,966) -- (577,553) (876,449) -- ----------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 10,007,847 (287,322) 25,682,364 20,708,034 339,516 ----------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 14,463,486 1,650,456 92,620,324 100,465,370 1,082,352 ----------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $24,619,415 $ 827,005 $ 83,919,855 $ 84,435,341 $1,475,454 ============================================================================================================================= Accumulation unit activity Units outstanding at beginning of year 14,136,694 1,761,529 97,753,895 106,410,129 1,185,569 Contract purchase payments 6,194,256 115,884 29,129,404 21,363,294 30,373 Net transfers(1) 4,148,142 (539,779) 5,493,506 6,683,732 340,788 Transfers for policy loans -- 552 (91,133) -- -- Contract charges (3,291) (553) (119,314) (71,973) (85) Contract terminations: Surrender benefits (245,710) (52,214) (2,109,768) (2,419,809) (7,408) Death benefits (259,921) -- (871,044) (1,201,738) -- ----------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 23,970,170 1,285,419 129,185,546 130,763,635 1,549,237 =============================================================================================================================
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 91 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Changes in Net Assets Segregated Asset Subaccounts Year ended December 31, 2001 (continued) EI2 EI1 IE3 IE2 IE1 Operations Investment income (loss) -- net $ 4,393,097 $ 6,782,428 $ 2,231 $ 55,628 $ 37,851 Net realized gain (loss) on sale of investments (160,883) (303,977) 273,137 (1,771,542) (3,129,842) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments (3,021,874) (4,672,141) 15,747 (2,564,164) (1,774,706) ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 1,210,340 1,806,310 291,115 (4,280,078) (4,866,697) ============================================================================================================================= Contract transactions Contract purchase payments 17,068,500 26,521,344 8,016 3,347,153 2,526,895 Net transfers(1) 9,900,374 9,620,050 (320,543) (1,055,780) 322,065 Transfers for policy loans (18,715) -- -- (2,785) -- Annuity payments (7,176) (9,476) -- (1,816) (5,487) Contract charges (7,504) (12,818) (43) (7,519) (5,833) Contract terminations: Surrender benefits (1,163,675) (1,051,390) (11,447) (528,184) (208,700) Death benefits (412,002) (777,077) -- (79,529) (134,254) ----------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 25,359,802 34,290,633 (324,017) 1,671,540 2,494,686 ----------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 28,915,641 47,919,805 76,699 13,261,738 14,922,547 ----------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $55,485,783 $84,016,748 $ 43,797 $10,653,200 $12,550,536 ============================================================================================================================= Accumulation unit activity Units outstanding at beginning of year 31,722,406 52,654,863 80,621 13,967,274 15,669,531 Contract purchase payments 18,004,587 28,119,894 11,347 4,307,312 3,247,058 Net transfers(1) 10,328,772 9,999,258 (12,152) (1,622,539) 239,461 Transfers for policy loans (33,737) -- -- (4,766) -- Contract charges (7,970) (13,626) (55) (10,211) (7,867) Contract terminations: Surrender benefits (1,230,737) (1,120,170) (14,573) (707,757) (289,347) Death benefits (435,132) (826,853) -- (108,239) (194,512) ----------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 58,348,189 88,813,366 65,188 15,821,074 18,664,324 =============================================================================================================================
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 92 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Changes in Net Assets Segregated Asset Subaccounts Year ended December 31, 2001 (continued) MF3 MF2 MF1 ND3 ND2 Operations Investment income (loss) -- net $ 5,143 $ 605,079 $ 743,187 $ (11,509) $ (1,077,220) Net realized gain (loss) on sale of investments (34,787) (613,772) (532,527) (1,421,391) (826,428) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 18,304 (4,117,880) (5,943,562) 616,580 (36,023,903) -------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (11,340) (4,126,573) (5,732,902) (816,320) (37,927,551) ================================================================================================================================ Contract transactions Contract purchase payments 164,766 10,904,709 12,432,772 223,803 69,607,526 Net transfers(1) (18,863) 436,226 2,859,791 (456,464) 30,242,168 Transfers for policy loans -- (62,185) -- 521 (300,355) Annuity payments -- (28,440) (32,558) -- (64,007) Contract charges (36) (18,959) (16,001) (708) (209,732) Contract terminations: Surrender benefits (9,000) (1,016,110) (883,015) (270,298) (4,656,885) Death benefits -- (251,211) (1,023,983) -- (1,242,509) -------------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 136,867 9,964,030 13,337,006 (503,146) 93,376,206 -------------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 152,830 30,159,611 42,321,065 4,220,683 190,659,736 -------------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $278,357 $35,997,068 $49,925,169 $ 2,901,217 $246,108,391 ================================================================================================================================ Accumulation unit activity Units outstanding at beginning of year 144,523 28,347,806 39,809,954 3,919,497 177,036,037 Contract purchase payments 162,392 10,883,619 12,624,783 240,350 75,517,249 Net transfers(1) (1,215) (71,035) 2,672,442 (608,454) 30,544,238 Transfers for policy loans -- (62,503) -- 588 (327,660) Contract charges (36) (19,991) (16,866) (777) (234,162) Contract terminations: Surrender benefits (9,678) (1,055,709) (933,490) (298,876) (5,097,329) Death benefits -- (261,905) (1,060,378) -- (1,384,427) -------------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 295,986 37,760,282 53,096,445 3,252,328 276,053,946 ================================================================================================================================
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 93 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Changes in Net Assets Segregated Asset Subaccounts Period ended December 31, 2001 (continued) ND1 SV3(3) SV2(3) SV1(3) IV3 Operations Investment income (loss) -- net $ (1,772,223) $ (9,094) $ (8,569) $ (9,562) $ (131) Net realized gain (loss) on sale of investments (1,450,035) 9,538 122 134 (1,765,553) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments (43,582,529) 305,354 719,093 636,330 893,596 ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (46,804,787) 305,798 710,646 626,902 (872,088) ============================================================================================================================= Contract transactions Contract purchase payments 59,630,863 4,012,515 4,402,590 4,132,831 2,851 Net transfers(1) 31,815,657 399,076 2,286,137 2,005,237 433,418 Transfers for policy loans -- -- (822) -- -- Annuity payments (106,582) -- -- -- -- Contract charges (122,887) -- -- -- (8) Contract terminations: Surrender benefits (4,269,471) -- (6,910) (2,142) (8,248,026) Death benefits (3,154,328) -- (11,230) -- (3,318) ----------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 83,793,252 4,411,591 6,669,765 6,135,926 (7,815,083) ----------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 235,893,042 -- -- -- 9,292,900 ----------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $272,881,507 $4,717,389 $7,380,411 $6,762,828 $ 605,729 ============================================================================================================================= Accumulation unit activity Units outstanding at beginning of year 219,315,532 -- -- -- 285,103 Contract purchase payments 63,685,877 12,780 4,576,323 4,265,176 3,071 Net transfers(1) 32,657,262 398,224 2,327,936 2,050,945 513,204 Transfers for policy loans -- -- (891) -- -- Contract charges (135,276) -- -- -- (10) Contract terminations: Surrender benefits (4,683,672) -- (6,804) (2,074) (26,869) Death benefits (3,519,791) -- (11,277) -- (4,292) ----------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 307,319,932 411,004 6,885,287 6,314,047 770,207 =============================================================================================================================
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 94 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Changes in Net Assets Segregated Asset Subaccounts Year ended December 31, 2001 (continued) IV2 IV1 FI3 FI2 FI1 Operations Investment income (loss) -- net $ 32,791 $ (8,959) $ 13,713 $ 1,386,303 $ 1,602,320 Net realized gain (loss) on sale of investments (116,886) (266,630) 5,365 105,834 115,344 Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments (1,793,989) (2,445,276) (1,551) 183,508 303,044 ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (1,878,084) (2,720,865) 17,527 1,675,645 2,020,708 ============================================================================================================================= Contract transactions Contract purchase payments 11,375,665 13,255,005 47,030 45,451,233 41,951,942 Net transfers(1) 10,347,928 9,098,862 623,192 (5,340,773) (3,649,829) Transfers for policy loans (8,382) -- (8,413) 13,336 -- Annuity payments (4,371) (12,768) -- (21,104) (17,845) Contract charges (6,867) (5,261) -- (4,504) (5,991) Contract terminations: Surrender benefits (302,197) (298,965) -- (1,246,093) (1,083,884) Death benefits (92,554) (171,996) -- (132,028) (1,132,180) ----------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 21,309,222 21,864,877 661,809 38,720,067 36,062,213 ----------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 8,897,601 12,868,330 1,015 17,556,373 26,743,478 ----------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $28,328,739 $32,012,342 $680,351 $57,952,085 $64,826,399 ============================================================================================================================= Accumulation unit activity Units outstanding at beginning of year 9,811,519 14,083,617 934 16,257,973 24,654,215 Contract purchase payments 13,932,671 16,088,251 41,646 40,630,026 37,617,335 Net transfers(1) 12,722,058 11,020,795 556,291 (5,159,591) (3,318,511) Transfers for policy loans (10,599) -- (7,343) 14,016 -- Contract charges (8,769) (6,709) -- (4,001) (5,337) Contract terminations: Surrender benefits (375,218) (389,780) -- (1,110,127) (970,409) Death benefits (114,275) (221,196) -- (118,564) (1,011,495) ----------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 35,957,387 40,574,978 591,528 50,509,732 56,965,798 =============================================================================================================================
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 95 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Changes in Net Assets Segregated Asset Subaccounts Period ended December 31, 2001 (continued) SC3 SC2 SC1 Operations Investment income (loss) -- net $ (2,670) $ (151,301) $ (209,229) Net realized gain (loss) on sale of investments (30,350) (102,425) (78,014) Distributions from capital gains -- -- -- Net change in unrealized appreciation or depreciation of investments 7,734 (831,931) (950,703) -------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (25,286) (1,085,657) (1,237,946) ================================================================================================== Contract transactions Contract purchase payments 15,918 5,837,161 5,853,998 Net transfers(1) 223,978 3,277,581 3,157,833 Transfers for policy loans 64 (22,951) -- Annuity payments -- (151) (2,360) Contract charges (73) (10,559) (9,334) Contract terminations: Surrender benefits (138,514) (501,925) (385,481) Death benefits -- (146,546) (199,328) -------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 101,373 8,432,610 8,415,328 -------------------------------------------------------------------------------------------------- Net assets at beginning of year 332,052 17,246,771 18,980,101 -------------------------------------------------------------------------------------------------- Net assets at end of year $ 408,139 $24,593,724 $26,157,483 ================================================================================================== Accumulation unit activity Units outstanding at beginning of year 286,198 14,830,157 16,348,580 Contract purchase payments 15,253 5,537,409 5,556,365 Net transfers(1) 205,147 3,075,969 3,010,893 Transfers for policy loans 64 (22,722) -- Contract charges (74) (10,209) (9,009) Contract terminations: Surrender benefits (128,147) (478,787) (373,745) Death benefits -- (139,578) (186,586) -------------------------------------------------------------------------------------------------- Units outstanding at end of year 378,441 22,792,239 24,346,498 ==================================================================================================
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 96 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Changes in Net Assets Segregated Asset Subaccounts Period ended December 31, 2001 (continued) SA3 SA2 SA1 3AC(4) Operations Investment income (loss) -- net $ (2,764) $ (265,336) $ (427,976) $ (6) Net realized gain (loss) on sale of investments (670,328) (2,587,418) (4,487,060) -- Distributions from capital gains -- -- -- 479 Net change in unrealized appreciation or depreciation of investments 336,284 (18,639,966) (20,948,920) (13) -------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (336,808) (21,492,720) (25,863,956) 460 ============================================================================================================== Contract transactions Contract purchase payments 48,432 12,570,125 9,246,850 275 Net transfers(1) (181,643) 887,054 1,648 5,221 Transfers for policy loans 457 (42,648) -- -- Annuity payments -- (9,925) (10,453) -- Contract charges (370) (48,827) (33,125) -- Contract terminations: Surrender benefits (10,151) (1,190,958) (913,800) -- Death benefits -- (242,645) (471,176) -- -------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (143,275) 11,922,176 7,819,944 5,496 -------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 974,493 57,335,128 71,088,816 -- -------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 494,410 $ 47,764,584 $ 53,044,804 $5,956 ============================================================================================================== Accumulation unit activity Units outstanding at beginning of year 798,425 46,977,698 58,413,697 -- Contract purchase payments 55,944 13,376,509 9,712,757 291 Net transfers(1) (236,405) 114,697 (929,954) 5,804 Transfers for policy loans 539 (51,536) -- -- Contract charges (405) (55,627) (37,329) -- Contract terminations: Surrender benefits (11,050) (1,350,333) (1,025,427) -- Death benefits -- (263,638) (559,361) -- -------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 607,048 58,747,770 65,574,383 6,095 ==============================================================================================================
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 97 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Changes in Net Assets Segregated Asset Subaccounts Period ended December 31, 2001 (continued) 2AC(4) 1AC(4) 3AD(4) 2AD(4) 1AD(4) Operations Investment income (loss) -- net $ (1,721) $ (2,608) $ (3) $ (1,641) $ (1,907) Net realized gain (loss) on sale of investments -- (7,432) -- (6,225) -- Distributions from capital gains 108,945 113,227 -- -- -- Net change in unrealized appreciation or depreciation of investments (21,754) (1,017) 240 100,285 85,443 ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 85,470 102,170 237 92,419 83,536 ============================================================================================================================= Contract transactions Contract purchase payments 998,022 1,272,672 578 1,026,467 837,295 Net transfers(1) 586,627 295,221 2,341 317,468 280,883 Transfers for policy loans -- -- -- (1,038) -- Annuity payments -- -- -- -- -- Contract charges -- -- -- -- -- Contract terminations: Surrender benefits (323) (304) -- (2,034) -- Death benefits -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 1,584,326 1,567,589 2,919 1,340,863 1,118,178 ----------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $1,669,796 $1,669,759 $3,156 $1,433,282 $1,201,714 ============================================================================================================================= Accumulation unit activity Units outstanding at beginning of year -- -- -- -- -- Contract purchase payments 1,087,142 1,389,052 622 1,120,921 919,601 Net transfers(1) 623,218 322,693 2,589 341,550 304,791 Transfers for policy loans -- -- -- (1,060) -- Contract charges -- -- -- -- -- Contract terminations: Surrender benefits (355) (327) -- (2,218) -- Death benefits -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 1,710,005 1,711,418 3,211 1,459,193 1,224,392 =============================================================================================================================
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 98 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Changes in Net Assets Segregated Asset Subaccounts Period ended December 31, 2001 (continued) 3AL(4) 2AL(4) 1AL(4) 3AB(4) 2AB(4) Operations Investment income (loss) -- net $ (90) $ (5,751) $ (6,103) $ (65) $ (740) Net realized gain (loss) on sale of investments 3,162 (310) (3) 2 (381) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments (1,307) 149,955 130,188 5,410 32,400 ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 1,765 143,894 124,082 5,347 31,279 ============================================================================================================================= Contract transactions Contract purchase payments 129,654 3,677,719 3,116,862 9 571,388 Net transfers(1) -- 1,550,983 985,097 200,000 184,088 Transfers for policy loans -- (1,703) -- -- -- Annuity payments -- (164) (289) -- -- Contract charges -- -- -- -- -- Contract terminations: Surrender benefits -- (4,954) (548) -- (166) Death benefits -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 129,654 5,221,881 4,101,122 200,009 755,310 ----------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $131,419 $5,365,775 $4,225,204 $205,356 $786,589 ============================================================================================================================= Accumulation unit activity Units outstanding at beginning of year -- -- -- -- -- Contract purchase payments 136,127 3,920,141 3,331,999 10 608,110 Net transfers(1) -- 1,636,834 1,031,695 209,961 196,975 Transfers for policy loans -- (1,783) -- -- -- Contract charges -- -- -- -- -- Contract terminations: Surrender benefits -- (5,157) (592) -- (176) Death benefits -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 136,127 5,550,035 4,363,102 209,971 804,909 =============================================================================================================================
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 99 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Changes in Net Assets Segregated Asset Subaccounts Period ended December 31, 2001 (continued) 1AB(4) 3AI(4) 2AI(4) 1AI(4) 3AV(4) Operations Investment income (loss) -- net $ (1,028) $ (1) $ (2,098) $ (2,701) $ (116) Net realized gain (loss) on sale of investments 3 -- (268) -- 4,300 Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 36,094 51 20,730 20,221 2,477 ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 35,069 50 18,364 17,520 6,661 ============================================================================================================================= Contract transactions Contract purchase payments 574,902 1,185 1,227,141 1,267,311 141,399 Net transfers(1) 161,241 -- 573,507 512,649 2,880 Transfers for policy loans -- -- -- -- -- Annuity payments -- -- -- (35) -- Contract charges -- -- -- -- -- Contract terminations: Surrender benefits -- -- (1,528) (277) -- Death benefits -- -- -- (373) -- ----------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 736,143 1,185 1,799,120 1,779,275 144,279 ----------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $771,212 $1,235 $1,817,484 $1,796,795 $150,940 ============================================================================================================================= Accumulation unit activity Units outstanding at beginning of year -- -- -- -- -- Contract purchase payments 618,416 1,324 1,328,329 1,372,449 142,560 Net transfers(1) 171,782 -- 623,429 554,816 3,013 Transfers for policy loans -- -- -- -- -- Contract charges -- -- -- -- -- Contract terminations: Surrender benefits -- -- (1,664) (304) -- Death benefits -- -- -- (409) -- ----------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 790,198 1,324 1,950,094 1,926,552 145,573 =============================================================================================================================
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 100 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Changes in Net Assets Segregated Asset Subaccounts Period ended December 31, 2001 (continued) 2AV(4) 1AV(4) 3SR 2SR 1SR Operations Investment income (loss) -- net $ (9,729) $ (11,475) $ 198 $ 131,183 $ 170,068 Net realized gain (loss) on sale of investments -- (3,473) (122) (15,222) (32,915) Distributions from capital gains -- -- 104 73,349 98,967 Net change in unrealized appreciation or depreciation of investments 507,102 470,877 (308) (348,450) (464,785) ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 497,373 455,929 (128) (159,140) (228,665) ============================================================================================================================= Contract transactions Contract purchase payments 5,344,703 5,828,858 830 1,627,761 2,027,795 Net transfers(1) 1,868,268 1,457,582 340 1,370,419 2,100,155 Transfers for policy loans (732) -- -- (15,288) -- Annuity payments (63) (819) -- -- -- Contract charges -- -- -- (2,458) (1,091) Contract terminations: Surrender benefits (12,707) (1,249) (122) (57,223) (107,149) Death benefits (65,105) -- -- (2,099) (14,150) ----------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 7,134,364 7,284,372 1,048 2,921,112 4,005,560 ----------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year -- -- 4,718 1,234,663 1,626,644 ----------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $7,631,737 $7,740,301 $5,638 $3,996,635 $5,403,539 ============================================================================================================================= Accumulation unit activity Units outstanding at beginning of year -- -- 4,896 1,282,907 1,692,742 Contract purchase payments 5,522,293 5,997,971 876 1,779,788 2,218,817 Net transfers(1) 1,912,474 1,301,188 693 1,513,134 2,315,274 Transfers for policy loans (705) -- -- (16,900) -- Contract charges -- -- -- (2,766) (1,219) Contract terminations: Surrender benefits (12,833) (1,272) (137) (63,819) (119,334) Death benefits (65,059) -- -- (2,480) (15,831) ----------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 7,356,170 7,297,887 6,328 4,489,864 6,090,449 =============================================================================================================================
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 101 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Changes in Net Assets Segregated Asset Subaccounts Period ended December 31, 2001 (continued) 3FG(4) 2FG(4) 1FG(4) 3FM(4) 2FM(4) Operations Investment income (loss) -- net $ (31) $ (7,836) $ (12,618) $ (41) $ (8,449) Net realized gain (loss) on sale of investments -- -- -- 1 -- Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 1,212 224,707 282,907 2,901 351,139 ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 1,181 216,871 270,289 2,861 342,690 ============================================================================================================================= Contract transactions Contract purchase payments 1,186 4,338,296 5,965,121 9,152 5,165,530 Net transfers(1) 130,012 1,823,373 2,091,085 125,000 1,782,687 Transfers for policy loans -- (715) -- -- (2,340) Annuity payments -- -- (726) -- (427) Contract charges -- -- -- -- -- Contract terminations: Surrender benefits -- (24,223) (2,809) -- (5,687) Death benefits -- -- -- -- (36,810) ----------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 131,198 6,136,731 8,052,671 134,152 6,902,953 ----------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $132,379 $6,353,602 $8,322,960 $137,013 $7,245,643 ============================================================================================================================= Accumulation unit activity Units outstanding at beginning of year -- -- -- -- -- Contract purchase payments 1,277 4,505,678 6,188,074 9,244 5,216,209 Net transfers(1) 131,185 1,882,174 1,992,080 122,429 1,732,488 Transfers for policy loans -- (729) -- -- (2,332) Contract charges -- -- -- -- -- Contract terminations: Surrender benefits -- (24,477) (2,839) -- (5,595) Death benefits -- -- -- -- (37,286) ----------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 132,462 6,362,646 8,177,315 131,673 6,903,484 =============================================================================================================================
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 102 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Changes in Net Assets Segregated Asset Subaccounts Period ended December 31, 2001 (continued) 1FM(4) 3FO(4) 2FO(4) 1FO(4) 3RE Operations Investment income (loss) -- net $ (10,706) $ (5) $ (2,672) $ (3,354) $ 6,928 Net realized gain (loss) on sale of investments -- -- (130) 118 20,183 Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 355,168 99 45,398 28,981 2,232 ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 344,462 94 42,596 25,745 29,343 ============================================================================================================================= Contract transactions Contract purchase payments 5,128,614 6,618 1,262,715 1,566,086 8,238 Net transfers(1) 1,477,269 -- 724,187 444,528 68,584 Transfers for policy loans -- -- -- -- -- Annuity payments -- -- -- -- -- Contract charges -- -- -- -- (72) Contract terminations: Surrender benefits (443) -- (665) (9) (1,253) Death benefits (402) -- -- -- (6,040) ----------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 6,605,038 6,618 1,986,237 2,010,605 69,457 ----------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year -- -- -- -- 185,186 ----------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $6,949,500 $6,712 $2,028,833 $2,036,350 $283,986 ============================================================================================================================= Accumulation unit activity Units outstanding at beginning of year -- -- -- -- 147,540 Contract purchase payments 5,194,892 7,097 1,369,471 1,683,221 6,495 Net transfers(1) 1,495,095 -- 778,105 473,492 62,644 Transfers for policy loans -- -- -- -- -- Contract charges -- -- -- -- (55) Contract terminations: Surrender benefits (450) -- (708) (9) (1,036) Death benefits (406) -- -- -- (4,652) ----------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 6,689,131 7,097 2,146,868 2,156,704 210,936 =============================================================================================================================
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 103 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Changes in Net Assets Segregated Asset Subaccounts Year ended December 31, 2001 (continued) 2RE 1RE 3SI 2SI 1SI Operations Investment income (loss) -- net $ 543,489 $ 438,336 $ (167) $ (31,465)$ (45,755) Net realized gain (loss) on sale of investments 7,290 10,478 (8,415) 51,980 104,043 Distributions from capital gains -- -- 2,370 184,139 160,532 Net change in unrealized appreciation or depreciation of investments 1,105,161 906,281 6,700 856,927 774,134 ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 1,655,940 1,355,095 488 1,061,581 992,954 ============================================================================================================================= Contract transactions Contract purchase payments 10,446,964 8,885,161 33,993 4,522,531 4,041,752 Net transfers(1) 12,674,981 8,981,834 164,697 5,794,604 4,664,868 Transfers for policy loans (27,212) -- -- (2,027) -- Annuity payments (3,884) (1,844) -- (1,529) (1,810) Contract charges (3,675) (3,956) (20) (2,860) (2,243) Contract terminations: Surrender benefits (294,970) (213,105) (6,564) (151,486) (193,616) Death benefits (67,577) (261,009) -- (12,078) (82,052) ----------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 22,724,627 17,387,081 192,106 10,147,155 8,426,899 ----------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 8,611,678 7,721,569 11,083 3,399,162 3,449,583 ----------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $32,992,245 $26,463,745 $203,677 $14,607,898 $12,869,436 ============================================================================================================================= Accumulation unit activity Units outstanding at beginning of year 6,879,005 6,181,452 9,257 2,846,415 2,896,941 Contract purchase payments 8,159,536 6,986,100 25,689 3,562,029 3,191,589 Net transfers(1) 9,745,835 7,011,251 120,960 4,524,344 3,715,737 Transfers for policy loans (21,550) -- -- (1,530) -- Contract charges (2,877) (3,111) (15) (2,263) (1,779) Contract terminations: Surrender benefits (230,473) (166,798) (5,572) (119,134) (151,482) Death benefits (52,626) (205,440) -- (9,602) (67,400) ----------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 24,476,850 19,803,454 150,319 10,800,259 9,583,606 =============================================================================================================================
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 104 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Changes in Net Assets Segregated Asset Subaccounts Period ended December 31, 2001 (continued) 3MS(4) 2MS(4) 1MS(4) 3UE 2UE Operations Investment income (loss) -- net $-- $ (1,015) $ (1,361) $ (127)$ (119,452) Net realized gain (loss) on sale of investments -- (4,175) 30 (23,375) (226,579) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments -- 31,264 33,928 (64,516) (5,877,468) ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations -- 26,074 32,597 (88,018) (6,223,499) ============================================================================================================================= Contract transactions Contract purchase payments 9 649,697 837,177 29,985 11,891,552 Net transfers(1) -- 235,110 205,025 328,864 5,262,528 Transfers for policy loans -- -- -- (53) (24,460) Annuity payments -- -- -- -- (7,300) Contract charges -- -- -- (200) (25,706) Contract terminations: Surrender benefits -- (1,083) -- (24,224) (660,399) Death benefits -- -- -- -- (223,897) ----------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 9 883,724 1,042,202 334,372 16,212,318 ----------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year -- -- -- 571,823 42,286,180 ----------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 9 $909,798 $1,074,799 $818,177 $52,274,999 ============================================================================================================================= Accumulation unit activity Units outstanding at beginning of year -- -- -- 577,230 42,626,277 Contract purchase payments 10 694,027 895,612 32,330 13,184,883 Net transfers(1) -- 249,528 218,452 362,668 5,578,691 Transfers for policy loans -- -- -- (60) (27,757) Contract charges -- -- -- (224) (29,269) Contract terminations: Surrender benefits -- (1,152) -- (28,605) (742,451) Death benefits -- -- -- -- (247,628) ----------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 10 942,403 1,114,064 943,339 60,342,746 =============================================================================================================================
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 105 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Changes in Net Assets Segregated Asset Subaccounts Period ended December 31, 2001 (continued) 1UE 3MC 2MC 1MC 3FS(4) Operations Investment income (loss) -- net $ (273,701) $ 1,658 $ 141,950 $ 89,023 $-- Net realized gain (loss) on sale of investments (413,490) (3,466) 17,660 87,648 -- Distributions from capital gains -- 12,617 1,468,606 1,516,830 -- Net change in unrealized appreciation or depreciation of investments (7,282,490) (676) 801,503 906,258 1 ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (7,969,681) 10,133 2,429,719 2,599,759 1 ============================================================================================================================= Contract transactions Contract purchase payments 11,247,637 81,997 9,221,589 9,032,982 9 Net transfers(1) 5,103,333 227,145 12,104,964 10,002,095 -- Transfers for policy loans -- (4,996) (15,381) -- -- Annuity payments (15,794) -- (1,322) (4,549) -- Contract charges (21,579) (83) (8,207) (6,832) -- Contract terminations: Surrender benefits (953,975) (56,438) (329,366) (232,786) -- Death benefits (656,027) -- (170,149) (209,063) -- ----------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 14,703,595 247,625 20,802,128 18,581,847 9 ----------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 54,626,689 18,044 9,404,909 12,654,338 -- ----------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $61,360,603 $275,802 $32,636,756 $33,835,944 $ 10 ============================================================================================================================= Accumulation unit activity Units outstanding at beginning of year 55,239,000 14,593 7,621,857 10,264,919 -- Contract purchase payments 12,436,157 65,228 7,185,335 7,058,847 10 Net transfers(1) 5,367,228 167,062 9,348,264 7,737,981 -- Transfers for policy loans -- (3,853) (12,103) -- -- Contract charges (24,432) (65) (6,403) (5,370) -- Contract terminations: Surrender benefits (1,083,166) (42,848) (256,934) (180,113) -- Death benefits (750,081) -- (131,864) (165,101) -- ----------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 71,184,706 200,117 23,748,152 24,711,163 10 =============================================================================================================================
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 106 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Changes in Net Assets Segregated Asset Subaccounts Period ended December 31, 2001 (continued) 2FS(4) 1FS(4) 3TC(4) 2TC(4) 1TC(4) Operations Investment income (loss) -- net $ (1,348) $ (1,459) $-- $ (459) $ (1,183) Net realized gain (loss) on sale of investments (224) 8 -- -- (33) Distributions from capital gains 4,132 3,430 -- -- -- Net change in unrealized appreciation or depreciation of investments 46,701 27,144 1 27,249 48,864 ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 49,261 29,123 1 26,790 47,648 ============================================================================================================================= Contract transactions Contract purchase payments 740,869 615,076 9 272,604 620,220 Net transfers(1) 253,940 230,715 -- 146,055 160,253 Transfers for policy loans -- -- -- (40) -- Annuity payments -- -- -- -- -- Contract charges -- -- -- -- -- Contract terminations: Surrender benefits (244) (5,774) -- (360) (402) Death benefits -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 994,565 840,017 9 418,259 780,071 ----------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $1,043,826 $869,140 $ 10 $445,049 $827,719 ============================================================================================================================= Accumulation unit activity Units outstanding at beginning of year -- -- -- -- -- Contract purchase payments 805,555 660,567 11 322,446 732,687 Net transfers(1) 275,889 246,490 -- 167,632 178,929 Transfers for policy loans -- -- -- (44) -- Contract charges -- -- -- -- -- Contract terminations: Surrender benefits (258) (6,154) -- (400) (422) Death benefits -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 1,081,186 900,903 11 489,634 911,194 =============================================================================================================================
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 107 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Changes in Net Assets Segregated Asset Subaccounts Year ended December 31, 2001 (continued) 3MG 2MG 1MG 3MD 2MD Operations Investment income (loss) -- net $ (2,289) $ (174,581) $ (236,686) $ (2,118)$ (155,358) Net realized gain (loss) on sale of investments (107,641) (62,660) (163,423) (34,274) (26,764) Distributions from capital gains 3,682 193,086 202,473 11,262 576,479 Net change in unrealized appreciation or depreciation of investments (25,399) (6,415,382) (6,873,424) 12,810 (833,867) ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (131,647) (6,459,537) (7,071,060) (12,320) (439,510) ============================================================================================================================= Contract transactions Contract purchase payments 141,372 13,407,756 12,812,258 49,174 11,309,994 Net transfers(1) 125,534 9,808,312 9,300,911 127,146 8,326,647 Transfers for policy loans (16) (11,334) -- -- (21,488) Annuity payments -- (3,017) (2,646) -- (1,028) Contract charges (72) (11,958) (8,618) (98) (11,665) Contract terminations: Surrender benefits (123) (308,843) (393,028) (6,910) (250,725) Death benefits -- (129,532) (140,271) -- (33,747) ----------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 266,695 22,751,384 21,568,606 169,312 19,317,988 ----------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 482,619 17,708,263 19,889,237 337,620 11,803,502 ----------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 617,667 $34,000,110 $34,386,783 $494,612 $30,681,980 ============================================================================================================================= Accumulation unit activity Units outstanding at beginning of year 532,539 19,520,956 21,973,127 352,144 12,307,954 Contract purchase payments 208,754 18,104,083 17,264,583 56,265 12,741,013 Net transfers(1) 172,490 13,220,164 12,582,742 147,288 9,389,635 Transfers for policy loans (23) (16,378) -- -- (25,357) Contract charges (104) (18,019) (12,803) (115) (14,113) Contract terminations: Surrender benefits (218) (428,241) (561,954) (8,043) (289,439) Death benefits -- (171,046) (194,392) -- (37,360) ----------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 913,438 50,211,519 51,051,303 547,539 34,072,333 =============================================================================================================================
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 108 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Changes in Net Assets Segregated Asset Subaccounts Period ended December 31, 2001 (continued) 1MD 3UT(4) 2UT(4) 1UT(4) 3HS(4) Operations Investment income (loss) -- net $ (217,120) $ (81) $ (3,369) $ (4,238) $ (84) Net realized gain (loss) on sale of investments (36,363) (2,782) (681) (10,225) 3,560 Distributions from capital gains 641,417 -- -- -- -- Net change in unrealized appreciation or depreciation of investments (884,200) 1,545 (34,930) (34,480) (2,371) ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (496,266) (1,318) (38,980) (48,943) 1,105 ============================================================================================================================= Contract transactions Contract purchase payments 10,978,441 124,725 2,173,364 2,124,621 125,282 Net transfers(1) 8,706,484 -- 542,525 439,371 -- Transfers for policy loans -- -- (516) -- -- Annuity payments (817) -- -- (268) -- Contract charges (7,125) -- -- -- -- Contract terminations: Surrender benefits (328,860) -- (4,389) (1,478) -- Death benefits (214,216) -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 19,133,907 124,725 2,710,984 2,562,246 125,282 ----------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 14,406,775 -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $33,044,416 $123,407 $2,672,004 $2,513,303 $126,387 ============================================================================================================================= Accumulation unit activity Units outstanding at beginning of year 15,060,304 -- -- -- -- Contract purchase payments 12,549,526 138,296 2,393,768 2,344,463 128,607 Net transfers(1) 9,841,991 -- 608,446 434,984 -- Transfers for policy loans -- -- (568) -- -- Contract charges (8,555) -- -- -- -- Contract terminations: Surrender benefits (378,057) -- (4,936) (1,716) -- Death benefits (243,012) -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 36,822,197 138,296 2,996,710 2,777,731 128,607 =============================================================================================================================
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 109 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Changes in Net Assets Segregated Asset Subaccounts Period ended December 31, 2001 (continued) 2HS(4) 1HS(4) 3PI(4) 2PI(4) 1PI(4) Operations Investment income (loss) -- net $ (2,632) $ (2,478) $ (127) $ (2,691) $ (3,052) Net realized gain (loss) on sale of investments 159 151 1 (471) 84 Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 2,523 5,205 2,278 50,124 52,532 ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 50 2,878 2,152 46,962 49,564 ============================================================================================================================= Contract transactions Contract purchase payments 1,650,070 1,390,896 9 1,525,823 1,534,262 Net transfers(1) 450,753 321,405 400,000 790,874 508,344 Transfers for policy loans (807) -- -- -- -- Annuity payments -- -- -- -- -- Contract charges -- -- -- -- -- Contract terminations: Surrender benefits (1,841) (4,730) -- (413) (35) Death benefits -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 2,098,175 1,707,571 400,009 2,316,284 2,042,571 ----------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $2,098,225 $1,710,449 $402,161 $2,363,246 $2,092,135 ============================================================================================================================= Accumulation unit activity Units outstanding at beginning of year -- -- -- -- -- Contract purchase payments 1,681,017 1,420,572 10 1,623,905 1,640,626 Net transfers(1) 458,508 327,778 418,346 836,932 539,684 Transfers for policy loans (835) -- -- -- -- Contract charges -- -- -- -- -- Contract terminations: Surrender benefits (1,872) (4,922) -- (431) (36) Death benefits -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 2,136,818 1,743,428 418,356 2,460,406 2,180,274 =============================================================================================================================
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 110 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Changes in Net Assets Segregated Asset Subaccounts Period ended December 31, 2001 (continued) 3VS 2VS 1VS 3SO(4) 2SO(4) Operations Investment income (loss) -- net $ (6,355) $ (448,604) $ (718,809) $ 415 $ 9,349 Net realized gain (loss) on sale of investments (438,325) (449,268) (2,011,055) 8,142 (1,277) Distributions from capital gains 163,984 6,840,074 8,994,193 20,545 408,628 Net change in unrealized appreciation or depreciation of investments (303,292) (31,629,377) (40,243,494) (21,828) (180,468) ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (583,988) (25,687,175) (33,979,165) 7,274 236,232 ============================================================================================================================= Contract transactions Contract purchase payments 99,376 19,660,439 15,797,036 127,154 2,364,635 Net transfers(1) (271,807) 6,897,008 6,556,174 -- 1,074,013 Transfers for policy loans 383 (33,928) -- -- -- Annuity payments -- (6,159) (11,857) -- (71) Contract charges (338) (55,900) (42,306) -- -- Contract terminations: Surrender benefits (30,701) (1,021,512) (1,205,261) -- (3,271) Death benefits -- (290,696) (866,383) -- -- ----------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (203,087) 25,149,252 20,227,403 127,154 3,435,306 ----------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 1,721,686 64,390,419 88,234,933 -- -- ----------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 934,611 $ 63,852,496 $ 74,483,171 $134,428 $3,671,538 ============================================================================================================================= Accumulation unit activity Units outstanding at beginning of year 1,330,395 49,764,177 68,406,853 -- -- Contract purchase payments 100,690 20,196,251 15,971,024 135,509 2,559,785 Net transfers(1) (306,017) 6,352,975 5,571,397 -- 1,144,282 Transfers for policy loans 424 (34,193) -- -- -- Contract charges (380) (63,132) (47,229) -- -- Contract terminations: Surrender benefits (33,064) (1,112,370) (1,323,108) -- (3,449) Death benefits -- (284,741) (856,572) -- -- ----------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 1,092,048 74,818,967 87,722,365 135,509 3,700,618 =============================================================================================================================
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 111 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Changes in Net Assets Segregated Asset Subaccounts Period ended December 31, 2001 (continued) 1SO(4) 3IT 2IT 1IT 3SP Operations Investment income (loss) -- net $ 7,835 $ (3,283) $ (163,619) $ (234,391) $ (4,873) Net realized gain (loss) on sale of investments (1,524) (272,864) (260,443) (695,201) 36,829 Distributions from capital gains 454,410 177,936 6,456,348 7,477,081 -- Net change in unrealized appreciation or depreciation of investments (223,060) (26,983) (11,400,356) (12,695,973) 83,242 ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 237,661 (125,194) (5,368,070) (6,148,484) 115,198 ============================================================================================================================= Contract transactions Contract purchase payments 2,560,919 120,217 6,525,652 5,516,656 56,138 Net transfers(1) 913,494 23,742 3,196,285 3,132,241 (230,847) Transfers for policy loans -- (799) (22,174) -- -- Annuity payments -- -- (2,146) (3,039) -- Contract charges -- (382) (15,572) (11,914) (202) Contract terminations: Surrender benefits (541) (13,798) (385,501) (284,371) (23,788) Death benefits -- -- (132,811) (232,447) -- ----------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 3,473,872 128,980 9,163,733 8,117,126 (198,699) ----------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year -- 650,434 19,831,854 23,694,747 1,041,643 ----------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $3,711,533 $ 654,220 $ 23,627,517 $ 25,663,389 $ 958,142 ============================================================================================================================= Accumulation unit activity Units outstanding at beginning of year -- 599,215 18,245,122 21,844,002 990,217 Contract purchase payments 2,769,914 132,754 6,894,850 5,822,402 50,060 Net transfers(1) 977,748 52,731 3,288,789 3,201,244 (198,497) Transfers for policy loans -- (1,130) (31,299) -- -- Contract charges -- (415) (16,769) (12,672) (186) Contract terminations: Surrender benefits (598) (14,316) (416,135) (305,412) (21,810) Death benefits -- -- (146,845) (252,570) -- ----------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 3,747,064 768,839 27,817,713 30,296,994 819,784 =============================================================================================================================
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 112 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS Statements of Changes in Net Assets Segregated Asset Subaccounts Year ended December 31, 2001 (continued) 2SP 1SP Operations Investment income (loss) -- net $ (237,638) $ (364,004) Net realized gain (loss) on sale of investments (5,616) (2,457) Distributions from capital gains -- -- Net change in unrealized appreciation or depreciation of investments 3,898,993 4,610,313 -------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 3,655,739 4,243,852 ================================================================================ Contract transactions Contract purchase payments 10,940,739 10,704,962 Net transfers(1) 8,429,669 8,497,550 Transfers for policy loans (29,819) -- Annuity payments (1,601) (7,788) Contract charges (20,088) (16,721) Contract terminations: Surrender benefits (519,636) (498,756) Death benefits (112,238) (541,875) -------------------------------------------------------------------------------- Increase (decrease) from contract transactions 18,687,026 18,137,372 -------------------------------------------------------------------------------- Net assets at beginning of year 25,021,085 31,381,436 -------------------------------------------------------------------------------- Net assets at end of year $47,363,850 $53,762,660 ================================================================================ Accumulation unit activity Units outstanding at beginning of year 23,812,549 29,881,218 Contract purchase payments 10,053,634 9,799,940 Net transfers(1) 7,550,055 7,725,129 Transfers for policy loans (28,015) -- Contract charges (18,584) (15,497) Contract terminations: Surrender benefits (474,882) (452,233) Death benefits (103,275) (482,477) -------------------------------------------------------------------------------- Units outstanding at end of year 40,791,482 46,456,080 ================================================================================ See accompanying notes to financial statements. -------------------------------------------------------------------------------- 113 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
Statements of Changes in Net Assets Segregated Asset Subaccounts Year ended December 31, 2001 (continued) 3IP 2IP 1IP Operations Investment income (loss) -- net $ (713) $ (70,072) $ (112,489) Net realized gain (loss) on sale of investments (11,802) (38,721) (50,200) Distributions from capital gains 953 32,329 40,919 Net change in unrealized appreciation or depreciation of investments (9,460) (2,476,219) (3,156,967) ------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (21,022) (2,552,683) (3,278,737) ================================================================================================= Contract transactions Contract purchase payments 5,085 3,536,625 4,029,595 Net transfers(1) 148,913 3,104,721 3,406,698 Transfers for policy loans 64 (4,243) -- Annuity payments -- (3,743) (5,591) Contract charges (74) (4,305) (3,291) Contract terminations: Surrender benefits (3,464) (110,735) (154,209) Death benefits -- (38,890) (127,739) ------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 150,524 6,479,430 7,145,463 ------------------------------------------------------------------------------------------------- Net assets at beginning of year 54,861 7,677,904 10,425,108 ------------------------------------------------------------------------------------------------- Net assets at end of year $184,363 $11,604,651 $14,291,834 ================================================================================================= Accumulation unit activity Units outstanding at beginning of year 56,924 7,957,614 10,774,085 Contract purchase payments 6,709 4,394,123 5,051,786 Net transfers(1) 193,586 3,706,041 4,255,381 Transfers for policy loans 89 (5,825) -- Contract charges (92) (5,461) (4,139) Contract terminations: Surrender benefits (3,823) (135,186) (188,758) Death benefits -- (50,888) (160,990) ------------------------------------------------------------------------------------------------- Units outstanding at end of year 253,393 15,860,418 19,727,365 =================================================================================================
(1) Includes transfer activity from (to) other subaccounts and transfers from (to) IDS Life's fixed account. (2) For the period May 1, 2001 (commencement of operations) to Dec. 31, 2001. (3) For the period Aug. 14, 2001 (commencement of operations) to Dec. 31, 2001. (4) For the period Aug. 13, 2001 (commencement of operations) to Dec. 31, 2001. See accompanying notes to financial statements. -------------------------------------------------------------------------------- 114 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS Notes to Financial Statements 1. ORGANIZATION IDS Life Variable Account 10 (the Account) was established under Minnesota law as a segregated asset account of IDS Life Insurance Company (IDS Life). The Account is registered as a unit investment trust under the Investment Company Act of 1940, as amended (the 1940 Act) and exists in accordance with the rules and regulations of the Insurance Division, Department of Commerce of the State of Minnesota. The Account is comprised of various subaccounts. Each subaccount invests exclusively in shares of the following funds or portfolios (collectively, the Funds), which are registered under the 1940 Act as open-end management investment companies. The subaccounts' investments in shares of the Funds as of Dec. 31, 2002 were as follows: Subaccount Invests exclusively in shares of Shares -------------------------------------------------------------------------------- CR3 AXP(R) Variable Portfolio - Capital Resource Fund 7,710 CR2 AXP(R) Variable Portfolio - Capital Resource Fund 1,986,191 CR1 AXP(R) Variable Portfolio - Capital Resource Fund 1,316,219 CR5 AXP(R) Variable Portfolio - Capital Resource Fund 14,001 CR4 AXP(R) Variable Portfolio - Capital Resource Fund 4,989 -------------------------------------------------------------------------------- CM3 AXP(R) Variable Portfolio - Cash Management Fund 3,242,428 CM2 AXP(R) Variable Portfolio - Cash Management Fund 280,721,451 CM1 AXP(R) Variable Portfolio - Cash Management Fund 250,272,090 CM5 AXP(R) Variable Portfolio - Cash Management Fund 12,335,449 CM4 AXP(R) Variable Portfolio - Cash Management Fund 12,165,559 -------------------------------------------------------------------------------- BD3 AXP(R) Variable Portfolio - Diversified Bond Fund 85,745 BD2 AXP(R) Variable Portfolio - Diversified Bond Fund 17,510,822 BD1 AXP(R) Variable Portfolio - Diversified Bond Fund 17,922,090 BD5 AXP(R) Variable Portfolio - Diversified Bond Fund 638,060 BD4 AXP(R) Variable Portfolio - Diversified Bond Fund 587,156 -------------------------------------------------------------------------------- DE3 AXP(R) Variable Portfolio - Diversified Equity Income Fund 129,555 DE2 AXP(R) Variable Portfolio - Diversified Equity Income Fund 8,927,534 DE1 AXP(R) Variable Portfolio - Diversified Equity Income Fund 6,947,125 DE5 AXP(R) Variable Portfolio - Diversified Equity Income Fund 321,396 DE4 AXP(R) Variable Portfolio - Diversified Equity Income Fund 212,145 -------------------------------------------------------------------------------- EM3 AXP(R) Variable Portfolio - Emerging Markets Fund 520,679 EM2 AXP(R) Variable Portfolio - Emerging Markets Fund 460,301 EM1 AXP(R) Variable Portfolio - Emerging Markets Fund 374,356 EM5 AXP(R) Variable Portfolio - Emerging Markets Fund 27,679 EM4 AXP(R) Variable Portfolio - Emerging Markets Fund 15,528 -------------------------------------------------------------------------------- ES3 AXP(R) Variable Portfolio - Equity Select Fund 230,734 ES2 AXP(R) Variable Portfolio - Equity Select Fund 1,587,053 ES1 AXP(R) Variable Portfolio - Equity Select Fund 1,172,851 ES5 AXP(R) Variable Portfolio - Equity Select Fund 115,688 ES4 AXP(R) Variable Portfolio - Equity Select Fund 89,059 -------------------------------------------------------------------------------- GB3 AXP(R) Variable Portfolio - Global Bond Fund 28,372 GB2 AXP(R) Variable Portfolio - Global Bond Fund 3,492,335 GB1 AXP(R) Variable Portfolio - Global Bond Fund 4,078,422 GB5 AXP(R) Variable Portfolio - Global Bond Fund 114,841 GB4 AXP(R) Variable Portfolio - Global Bond Fund 167,156 -------------------------------------------------------------------------------- GR3 AXP(R) Variable Portfolio - Growth Fund 104,652 GR2 AXP(R) Variable Portfolio - Growth Fund 13,460,298 GR1 AXP(R) Variable Portfolio - Growth Fund 11,712,998 GR5 AXP(R) Variable Portfolio - Growth Fund 154,602 GR4 AXP(R) Variable Portfolio - Growth Fund 62,376 -------------------------------------------------------------------------------- EI3 AXP(R) Variable Portfolio - High Yield Bond Fund 495,438 EI2 AXP(R) Variable Portfolio - High Yield Bond Fund 14,542,541 EI1 AXP(R) Variable Portfolio - High Yield Bond Fund 18,917,902 EI5 AXP(R) Variable Portfolio - High Yield Bond Fund 649,181 EI4 AXP(R) Variable Portfolio - High Yield Bond Fund 699,359 -------------------------------------------------------------------------------- IE3 AXP(R) Variable Portfolio - International Fund 40,886 IE2 AXP(R) Variable Portfolio - International Fund 1,677,855 IE1 AXP(R) Variable Portfolio - International Fund 1,599,610 IE5 AXP(R) Variable Portfolio - International Fund 7,211 IE4 AXP(R) Variable Portfolio - International Fund 13,676 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 115 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS Subaccount Invests exclusively in shares of Shares -------------------------------------------------------------------------------- MF3 AXP(R) Variable Portfolio - Managed Fund 8,170 MF2 AXP(R) Variable Portfolio - Managed Fund 4,383,678 MF1 AXP(R) Variable Portfolio - Managed Fund 4,352,362 MF5 AXP(R) Variable Portfolio - Managed Fund 39,816 MF4 AXP(R) Variable Portfolio - Managed Fund 34,587 -------------------------------------------------------------------------------- ND3 AXP(R) Variable Portfolio - New Dimensions Fund(R) 138,996 ND2 AXP(R) Variable Portfolio - New Dimensions Fund(R) 20,815,377 ND1 AXP(R) Variable Portfolio - New Dimensions Fund(R) 19,292,863 ND5 AXP(R) Variable Portfolio - New Dimensions Fund(R) 420,226 ND4 AXP(R) Variable Portfolio - New Dimensions Fund(R) 326,580 -------------------------------------------------------------------------------- SV3 AXP(R) Variable Portfolio - Partners Small Cap Value Fund 461,676 SV2 AXP(R) Variable Portfolio - Partners Small Cap Value Fund 4,314,932 SV1 AXP(R) Variable Portfolio - Partners Small Cap Value Fund 2,802,176 SV5 AXP(R) Variable Portfolio - Partners Small Cap Value Fund 311,808 SV4 AXP(R) Variable Portfolio - Partners Small Cap Value Fund 251,909 -------------------------------------------------------------------------------- IV3 AXP(R) Variable Portfolio - S&P 500 Index Fund 90,522 IV2 AXP(R) Variable Portfolio - S&P 500 Index Fund 6,555,401 IV1 AXP(R) Variable Portfolio - S&P 500 Index Fund 6,554,457 IV5 AXP(R) Variable Portfolio - S&P 500 Index Fund 240,933 IV4 AXP(R) Variable Portfolio - S&P 500 Index Fund 218,339 -------------------------------------------------------------------------------- FI3 AXP(R) Variable Portfolio - Short Duration U.S. Government Fund 145,639 FI2 AXP(R) Variable Portfolio - Short Duration U.S. Government Fund 14,134,351 FI1 AXP(R) Variable Portfolio - Short Duration U.S. Government Fund 13,072,556 FI5 AXP(R) Variable Portfolio - Short Duration U.S. Government Fund 599,369 FI4 AXP(R) Variable Portfolio - Short Duration U.S. Government Fund 751,178 -------------------------------------------------------------------------------- SC3 AXP(R) Variable Portfolio - Small Cap Advantage Fund 40,242 SC2 AXP(R) Variable Portfolio - Small Cap Advantage Fund 2,989,636 SC1 AXP(R) Variable Portfolio - Small Cap Advantage Fund 2,979,642 SC5 AXP(R) Variable Portfolio - Small Cap Advantage Fund 88,398 SC4 AXP(R) Variable Portfolio - Small Cap Advantage Fund 49,932 -------------------------------------------------------------------------------- SA3 AXP(R) Variable Portfolio - Strategy Aggressive Fund 37,453 SA2 AXP(R) Variable Portfolio - Strategy Aggressive Fund 5,705,015 SA1 AXP(R) Variable Portfolio - Strategy Aggressive Fund 5,307,628 SA5 AXP(R) Variable Portfolio - Strategy Aggressive Fund 14,497 SA4 AXP(R) Variable Portfolio - Strategy Aggressive Fund 20,392 -------------------------------------------------------------------------------- 3AC AIM V.I. Capital Appreciation Fund, Series II Shares 166 2AC AIM V.I. Capital Appreciation Fund, Series II Shares 505,244 1AC AIM V.I. Capital Appreciation Fund, Series II Shares 339,549 5AC AIM V.I. Capital Appreciation Fund, Series II Shares 18,049 4AC AIM V.I. Capital Appreciation Fund, Series II Shares 21,209 -------------------------------------------------------------------------------- 3AD AIM V.I. Capital Development Fund, Series II Shares 14,762 2AD AIM V.I. Capital Development Fund, Series II Shares 570,034 1AD AIM V.I. Capital Development Fund, Series II Shares 393,899 5AD AIM V.I. Capital Development Fund, Series II Shares 47,439 4AD AIM V.I. Capital Development Fund, Series II Shares 39,703 -------------------------------------------------------------------------------- 3AL AllianceBernstein VP Growth and Income Portfolio (Class B) 14,018 2AL AllianceBernstein VP Growth and Income Portfolio (Class B) 1,952,783 1AL AllianceBernstein VP Growth and Income Portfolio (Class B) 1,344,795 5AL AllianceBernstein VP Growth and Income Portfolio (Class B) 171,702 4AL AllianceBernstein VP Growth and Income Portfolio (Class B) 199,224 -------------------------------------------------------------------------------- 3AB AllianceBernstein VP International Value Portfolio (Class B) 59,747 2AB AllianceBernstein VP International Value Portfolio (Class B) 1,211,458 1AB AllianceBernstein VP International Value Portfolio (Class B) 910,011 5AB AllianceBernstein VP International Value Portfolio (Class B) 144,687 4AB AllianceBernstein VP International Value Portfolio (Class B) 139,718 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 116 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS Subaccount Invests exclusively in shares of Shares -------------------------------------------------------------------------------- 3AI American Century(R) VP International, Class II 35,975 2AI American Century(R) VP International, Class II 1,607,660 1AI American Century(R) VP International, Class II 1,157,064 5AI American Century(R) VP International, Class II 154,239 4AI American Century(R) VP International, Class II 73,041 -------------------------------------------------------------------------------- 3AV American Century(R) VP Value, Class II 71,079 2AV American Century(R) VP Value, Class II 6,238,051 1AV American Century(R) VP Value, Class II 4,508,882 5AV American Century(R) VP Value, Class II 412,855 4AV American Century(R) VP Value, Class II 348,071 -------------------------------------------------------------------------------- 3SR Calvert Variable Series, Inc. Social Balanced Portfolio 4,157 2SR Calvert Variable Series, Inc. Social Balanced Portfolio 4,951,430 1SR Calvert Variable Series, Inc. Social Balanced Portfolio 5,057,886 5SR Calvert Variable Series, Inc. Social Balanced Portfolio 123,864 4SR Calvert Variable Series, Inc. Social Balanced Portfolio 122,131 -------------------------------------------------------------------------------- 3FG Fidelity(R) VIP Growth & Income Portfolio Service Class 2 17,960 2FG Fidelity(R) VIP Growth & Income Portfolio Service Class 2 3,748,549 1FG Fidelity(R) VIP Growth & Income Portfolio Service Class 2 2,796,472 5FG Fidelity(R) VIP Growth & Income Portfolio Service Class 2 286,182 4FG Fidelity(R) VIP Growth & Income Portfolio Service Class 2 279,058 -------------------------------------------------------------------------------- 3FM Fidelity(R) VIP Mid Cap Portfolio Service Class 2 17,424 2FM Fidelity(R) VIP Mid Cap Portfolio Service Class 2 2,697,861 1FM Fidelity(R) VIP Mid Cap Portfolio Service Class 2 1,895,051 5FM Fidelity(R) VIP Mid Cap Portfolio Service Class 2 216,142 4FM Fidelity(R) VIP Mid Cap Portfolio Service Class 2 182,692 -------------------------------------------------------------------------------- 3FO Fidelity(R) VIP Overseas Portfolio Service Class 2 22,259 2FO Fidelity(R) VIP Overseas Portfolio Service Class 2 901,750 1FO Fidelity(R) VIP Overseas Portfolio Service Class 2 700,210 5FO Fidelity(R) VIP Overseas Portfolio Service Class 2 41,981 4FO Fidelity(R) VIP Overseas Portfolio Service Class 2 46,258 -------------------------------------------------------------------------------- 3RE FTVIPT Franklin Real Estate Fund - Class 2 15,640 2RE FTVIPT Franklin Real Estate Fund - Class 2 4,517,586 1RE FTVIPT Franklin Real Estate Fund - Class 2 3,368,955 5RE FTVIPT Franklin Real Estate Fund - Class 2 163,015 4RE FTVIPT Franklin Real Estate Fund - Class 2 168,449 -------------------------------------------------------------------------------- 3SI FTVIPT Franklin Small Cap Value Securities Fund - Class 2 35,843 2SI FTVIPT Franklin Small Cap Value Securities Fund - Class 2 3,765,000 1SI FTVIPT Franklin Small Cap Value Securities Fund - Class 2 2,958,250 5SI FTVIPT Franklin Small Cap Value Securities Fund - Class 2 198,337 4SI FTVIPT Franklin Small Cap Value Securities Fund - Class 2 153,648 -------------------------------------------------------------------------------- 3MS FTVIPT Mutual Shares Securities Fund - Class 2 9,195 2MS FTVIPT Mutual Shares Securities Fund - Class 2 769,240 1MS FTVIPT Mutual Shares Securities Fund - Class 2 641,508 5MS FTVIPT Mutual Shares Securities Fund - Class 2 128,451 4MS FTVIPT Mutual Shares Securities Fund - Class 2 104,831 -------------------------------------------------------------------------------- 3UE Goldman Sachs VIT CORE(SM) U.S. Equity Fund 55,105 2UE Goldman Sachs VIT CORE(SM) U.S. Equity Fund 5,682,987 1UE Goldman Sachs VIT CORE(SM) U.S. Equity Fund 5,930,713 5UE Goldman Sachs VIT CORE(SM) U.S. Equity Fund 99,210 4UE Goldman Sachs VIT CORE(SM) U.S. Equity Fund 140,119 -------------------------------------------------------------------------------- 3MC Goldman Sachs VIT Mid Cap Value Fund 55,386 2MC Goldman Sachs VIT Mid Cap Value Fund 6,865,719 1MC Goldman Sachs VIT Mid Cap Value Fund 5,795,312 5MC Goldman Sachs VIT Mid Cap Value Fund 232,257 4MC Goldman Sachs VIT Mid Cap Value Fund 249,225 -------------------------------------------------------------------------------- 3FS INVESCO VIF - Financial Services Fund 272 2FS INVESCO VIF - Financial Services Fund 434,163 1FS INVESCO VIF - Financial Services Fund 288,213 5FS INVESCO VIF - Financial Services Fund 43,503 4FS INVESCO VIF - Financial Services Fund 36,820 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 117 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS Subaccount Invests exclusively in shares of Shares -------------------------------------------------------------------------------- 3TC INVESCO VIF - Technology Fund 152 2TC INVESCO VIF - Technology Fund 221,204 1TC INVESCO VIF - Technology Fund 166,492 5TC INVESCO VIF - Technology Fund 13,166 4TC INVESCO VIF - Technology Fund 10,738 -------------------------------------------------------------------------------- 3MG MFS(R) Investors Growth Stock Series - Service Class 54,698 2MG MFS(R) Investors Growth Stock Series - Service Class 4,840,347 1MG MFS(R) Investors Growth Stock Series - Service Class 4,325,293 5MG MFS(R) Investors Growth Stock Series - Service Class 118,106 4MG MFS(R) Investors Growth Stock Series - Service Class 77,125 -------------------------------------------------------------------------------- 3MD MFS(R) New Discovery Series - Service Class 28,632 2MD MFS(R) New Discovery Series - Service Class 3,484,308 1MD MFS(R) New Discovery Series - Service Class 3,119,001 5MD MFS(R) New Discovery Series - Service Class 147,085 4MD MFS(R) New Discovery Series - Service Class 124,038 -------------------------------------------------------------------------------- 3UT MFS(R) Utilities Series - Service Class 7,948 2UT MFS(R) Utilities Series - Service Class 600,507 1UT MFS(R) Utilities Series - Service Class 405,103 5UT MFS(R) Utilities Series - Service Class 19,583 4UT MFS(R) Utilities Series - Service Class 30,550 -------------------------------------------------------------------------------- 3HS Putnam VT Health Sciences Fund - Class IB Shares 12,097 2HS Putnam VT Health Sciences Fund - Class IB Shares 950,927 1HS Putnam VT Health Sciences Fund - Class IB Shares 546,110 5HS Putnam VT Health Sciences Fund - Class IB Shares 53,344 4HS Putnam VT Health Sciences Fund - Class IB Shares 50,314 -------------------------------------------------------------------------------- 3PI Putnam VT International Equity Fund - Class IB Shares 68,671 2PI Putnam VT International Equity Fund - Class IB Shares 1,614,300 1PI Putnam VT International Equity Fund - Class IB Shares 1,173,120 5PI Putnam VT International Equity Fund - Class IB Shares 177,603 4PI Putnam VT International Equity Fund - Class IB Shares 118,316 -------------------------------------------------------------------------------- 3VS Putnam VT Vista Fund - Class IB Shares 39,407 2VS Putnam VT Vista Fund - Class IB Shares 5,380,326 1VS Putnam VT Vista Fund - Class IB Shares 5,490,188 5VS Putnam VT Vista Fund - Class IB Shares 24,767 4VS Putnam VT Vista Fund - Class IB Shares 17,811 -------------------------------------------------------------------------------- 3SO Strong Opportunity Fund II - Advisor Class 16,417 2SO Strong Opportunity Fund II - Advisor Class 1,325,437 1SO Strong Opportunity Fund II - Advisor Class 891,093 5SO Strong Opportunity Fund II - Advisor Class 126,987 4SO Strong Opportunity Fund II - Advisor Class 107,512 -------------------------------------------------------------------------------- 3IT Wanger International Small Cap 81,566 2IT Wanger International Small Cap 2,382,637 1IT Wanger International Small Cap 2,302,076 5IT Wanger International Small Cap 99,988 4IT Wanger International Small Cap 69,130 -------------------------------------------------------------------------------- 3SP Wanger U.S. Smaller Companies 44,226 2SP Wanger U.S. Smaller Companies 4,053,800 1SP Wanger U.S. Smaller Companies 3,753,235 5SP Wanger U.S. Smaller Companies 171,352 4SP Wanger U.S. Smaller Companies 143,477 -------------------------------------------------------------------------------- 3IP Lazard Retirement International Equity Portfolio 50,650 2IP Lazard Retirement International Equity Portfolio 2,350,597 1IP Lazard Retirement International Equity Portfolio 2,286,384 5IP Lazard Retirement International Equity Portfolio 56,684 4IP Lazard Retirement International Equity Portfolio 64,183 -------------------------------------------------------------------------------- The assets of each subaccount of the Account are not chargeable with liabilities arising out of the business conducted by any other segregated asset account or by IDS Life. IDS Life serves as issuer of the contract. -------------------------------------------------------------------------------- 118 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Investments in the Funds Investments in shares of the Funds are stated at market value which is the net asset value per share as determined by the respective Funds. Investment transactions are accounted for on the date the shares are purchased and sold. Realized gains and losses on the sales of investments are computed using the average cost method. Income from dividends and gains from realized capital gain distributions are reinvested in additional shares of the Funds and are recorded as income by the subaccounts on the ex-dividend date. Unrealized appreciation or depreciation of investments in the accompanying financial statements represents the subaccounts' share of the Funds' undistributed net investment income, undistributed realized gain or loss and the unrealized appreciation or depreciation on their investment securities. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of increase and decrease in net assets from operations during the period. Actual results could differ from those estimates. Variable Payout Net assets allocated to contracts in the payout period are periodically compared to a computation which uses the Annuity 2000 Basic Mortality Table and which assumes future mortality improvement. The assumed investment return is 5% unless the annuitant elects otherwise, in which case the rate would be 3.5%, as regulated by the laws of the respective states. The mortality risk is fully borne by IDS Life and may result in additional amounts being transferred into the variable annuity account by IDS Life to cover greater longevity of annuitants than expected. Conversely, if amounts allocated exceed amounts required, transfers may be made to the insurance company. Federal Income Taxes IDS Life is taxed as a life insurance company. The Account is treated as part of IDS Life for federal income tax purposes. Under existing federal income tax law, no income taxes are payable with respect to any investment income of the Account to the extent the earnings are credited under the contracts. Based on this, no charge is being made currently to the Account for federal income taxes. The Company will review periodically the status of this policy in the event of changes in the tax law. A charge may be made in future years for any federal income taxes that would be attributable to the contracts. 3. VARIABLE ACCOUNT EXPENSES IDS Life makes contractual assurances to the Account that possible future adverse changes in administrative expenses and mortality experience of the contract owners and annuitants will not affect the Account. IDS Life deducts a daily mortality and expense risk fee equal, on an annual basis, to 0.55% to 1.20% of the average daily net assets of each subaccount, depending on the contract option selected. 4. CONTRACT CHARGES IDS Life deducts a contract administrative charge of $30 per year. This charge reimburses IDS Life for expenses incurred in establishing and maintaining the annuity records. Certain products may waive this charge based upon the underlying contract value. An optional maximum anniversary value death benefit rider, enhanced earnings death benefit rider and enhanced earnings plus death benefit rider are available on certain products and if selected, the related fees are deducted annually from the contract value on the contract anniversary. Additional information can be found in the applicable product's prospectus. 5. SURRENDER CHARGES IDS Life will use a surrender charge to help it recover certain expenses related to the sale of the annuity. A surrender charge of up to 8% may be deducted for surrenders up to the first ten payment years following a purchase payment, as depicted in the surrender charge schedule included in the applicable product's prospectus. Charges by IDS Life for surrenders are not identified on an individual segregated asset account basis. Charges for all segregated asset accounts amounted to $22,560,988 in 2002 and $19,059,480 in 2001. Such charges are not treated as a separate expense of the subaccounts. They are ultimately deducted from contract surrender benefits paid by IDS Life. -------------------------------------------------------------------------------- 119 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS 6. RELATED PARTY TRANSACTIONS Management fees were paid indirectly to IDS Life, in its capacity as investment manager for the American Express(R) Variable Portfolio Funds. The Fund's Investment Management Services Agreement provides for a fee at a percentage of each Fund's average daily net assets in reducing percentages, to give effect to breakpoints in fees due to assets under management within each Fund as follows:
Fund Percentage range ------------------------------------------------------------------------------------------------------- AXP(R) Variable Portfolio - Capital Resource Fund 0.630% to 0.570% AXP(R) Variable Portfolio - Cash Management Fund 0.510% to 0.440% AXP(R) Variable Portfolio - Diversified Bond Fund 0.610% to 0.535% AXP(R) Variable Portfolio - Diversified Equity Income Fund 0.560% to 0.470% AXP(R) Variable Portfolio - Emerging Markets Fund 1.170% to 1.095% AXP(R) Variable Portfolio - Equity Select Fund 0.650% to 0.560% AXP(R) Variable Portfolio - Global Bond Fund 0.840% to 0.780% AXP(R) Variable Portfolio - Growth Fund 0.630% to 0.570% AXP(R) Variable Portfolio - High Yield Bond Fund 0.620% to 0.545% ------------------------------------------------------------------------------------------------------- AXP(R) Variable Portfolio - International Fund 0.870% to 0.795% AXP(R) Variable Portfolio - Managed Fund 0.630% to 0.550% AXP(R) Variable Portfolio - New Dimensions Fund(R) 0.630% to 0.570% AXP(R) Variable Portfolio - Partners Small Cap Value Fund 1.020% to 0.920% AXP(R) Variable Portfolio - S&P 500 Index Fund 0.290% to 0.260% AXP(R) Variable Portfolio - Short Duration U.S. Government Fund 0.610% to 0.535% AXP(R) Variable Portfolio - Small Cap Advantage Fund 0.790% to 0.650% AXP(R) Variable Portfolio - Strategy Aggressive Fund 0.650% to 0.575% -------------------------------------------------------------------------------------------------------
For the following Funds the fee may be adjusted upward or downward by a performance incentive adjustment. The adjustment is based on a comparison of the performance of each Fund to an index of similar funds up to a maximum percentage of each Fund's average daily net assets. Effective Dec. 1, 2002, the performance incentive adjustment was added to some of the funds and the maximum changed for others.
Maximum Maximum adjustment adjustment Fund (prior to Dec. 1, 2002) (after Dec. 1, 2002) ------------------------------------------------------------------------------------------------------- AXP(R) Variable Portfolio - Capital Resource Fund N/A 0.12% AXP(R) Variable Portfolio - Diversified Equity Income Fund 0.08% 0.12% AXP(R) Variable Portfolio - Emerging Markets Fund 0.12% 0.12% AXP(R) Variable Portfolio - Equity Select Fund 0.12% 0.12% AXP(R) Variable Portfolio - Growth Fund 0.12% 0.12% AXP(R) Variable Portfolio - International Fund N/A 0.12% AXP(R) Variable Portfolio - Managed Fund N/A 0.08% AXP(R) Variable Portfolio - New Dimensions Fund(R) N/A 0.12% AXP(R) Variable Portfolio - Partners Small Cap Value Fund 0.12% 0.12% AXP(R) Variable Portfolio - Small Cap Advantage Fund 0.12% 0.12% AXP(R) Variable Portfolio - Strategy Aggressive Fund N/A 0.12% -------------------------------------------------------------------------------------------------------
IDS Life, in turn, paid to American Express Financial Corporation (AEFC) a portion of these management fees based on a percentage of each Fund's average daily net assets for the year. This fee was equal to 0.35% for AXP(R) Variable Portfolio - International Fund and AXP(R) Variable Portfolio - S&P 500 Index Fund and 0.25% for each remaining Fund. The American Express(R) Variable Portfolio Funds also have an agreement with IDS Life for distribution services. Under a Plan and Agreement of Distribution, each Fund pays a distribution fee at an annual rate up to 0.125% of each Fund's average daily net assets. -------------------------------------------------------------------------------- 120 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS The American Express(R) Variable Portfolio Funds have an Administrative Services Agreement with AEFC. Under this agreement, each Fund pays AEFC a fee for administration and accounting services at a percentage of each Fund's average daily net assets in reducing percentages annually as follows:
Fund Percentage range ------------------------------------------------------------------------------------------------------- AXP(R) Variable Portfolio - Capital Resource Fund 0.050% to 0.030% AXP(R) Variable Portfolio - Cash Management Fund 0.030% to 0.020% AXP(R) Variable Portfolio - Diversified Bond Fund 0.050% to 0.025% AXP(R) Variable Portfolio - Diversified Equity Income Fund 0.040% to 0.020% AXP(R) Variable Portfolio - Emerging Markets Fund 0.100% to 0.050% AXP(R) Variable Portfolio - Equity Select Fund 0.060% to 0.030% AXP(R) Variable Portfolio - Global Bond Fund 0.060% to 0.040% AXP(R) Variable Portfolio - Growth Fund 0.050% to 0.030% AXP(R) Variable Portfolio - High Yield Bond Fund 0.050% to 0.025% ------------------------------------------------------------------------------------------------------- AXP(R) Variable Portfolio - International Fund 0.060% to 0.035% AXP(R) Variable Portfolio - Managed Fund 0.040% to 0.020% AXP(R) Variable Portfolio - New Dimensions Fund(R) 0.050% to 0.030% AXP(R) Variable Portfolio - Partners Small Cap Value Fund 0.080% to 0.055% AXP(R) Variable Portfolio - S&P 500 Index Fund 0.080% to 0.065% AXP(R) Variable Portfolio - Short Duration U.S. Government Fund 0.050% to 0.025% AXP(R) Variable Portfolio - Small Cap Advantage Fund 0.060% to 0.035% AXP(R) Variable Portfolio - Strategy Aggressive Fund 0.060% to 0.035% -------------------------------------------------------------------------------------------------------
The American Express(R) Variable Portfolio Funds pay custodian fees to American Express Trust Company, an affiliate of IDS Life. 7. INVESTMENT TRANSACTIONS The subaccounts' purchases of the Funds' shares, including reinvestment of dividend distributions, for the year ended Dec. 31, 2002 were as follows: Subaccount Investment Purchases -------------------------------------------------------------------------------- CR3 AXP(R) Variable Portfolio - Capital Resource Fund $ 3,398,293 CR2 AXP(R) Variable Portfolio - Capital Resource Fund 19,607,609 CR1 AXP(R) Variable Portfolio - Capital Resource Fund 9,162,647 CR5 AXP(R) Variable Portfolio - Capital Resource Fund 299,117 CR4 AXP(R) Variable Portfolio - Capital Resource Fund 155,891 -------------------------------------------------------------------------------- CM3 AXP(R) Variable Portfolio - Cash Management Fund 198,962,427 CM2 AXP(R) Variable Portfolio - Cash Management Fund 99,262,540 CM1 AXP(R) Variable Portfolio - Cash Management Fund 74,160,902 CM5 AXP(R) Variable Portfolio - Cash Management Fund 18,816,010 CM4 AXP(R) Variable Portfolio - Cash Management Fund 21,907,695 -------------------------------------------------------------------------------- BD3 AXP(R) Variable Portfolio - Diversified Bond Fund 7,199,863 BD2 AXP(R) Variable Portfolio - Diversified Bond Fund 89,426,814 BD1 AXP(R) Variable Portfolio - Diversified Bond Fund 70,887,576 BD5 AXP(R) Variable Portfolio - Diversified Bond Fund 7,996,256 BD4 AXP(R) Variable Portfolio - Diversified Bond Fund 6,415,506 -------------------------------------------------------------------------------- DE3 AXP(R) Variable Portfolio - Diversified Equity Income Fund 15,484,879 DE2 AXP(R) Variable Portfolio - Diversified Equity Income Fund 42,979,312 DE1 AXP(R) Variable Portfolio - Diversified Equity Income Fund 28,212,409 DE5 AXP(R) Variable Portfolio - Diversified Equity Income Fund 2,960,342 DE4 AXP(R) Variable Portfolio - Diversified Equity Income Fund 2,184,766 -------------------------------------------------------------------------------- EM3 AXP(R) Variable Portfolio - Emerging Markets Fund 696,615 EM2 AXP(R) Variable Portfolio - Emerging Markets Fund 2,476,844 EM1 AXP(R) Variable Portfolio - Emerging Markets Fund 2,227,797 EM5 AXP(R) Variable Portfolio - Emerging Markets Fund 239,190 EM4 AXP(R) Variable Portfolio - Emerging Markets Fund 144,288 -------------------------------------------------------------------------------- ES3 AXP(R) Variable Portfolio - Equity Select Fund 879,049 ES2 AXP(R) Variable Portfolio - Equity Select Fund 12,647,305 ES1 AXP(R) Variable Portfolio - Equity Select Fund 8,887,413 ES5 AXP(R) Variable Portfolio - Equity Select Fund 1,068,568 ES4 AXP(R) Variable Portfolio - Equity Select Fund 935,071 -------------------------------------------------------------------------------- GB3 AXP(R) Variable Portfolio - Global Bond Fund 2,840,667 GB2 AXP(R) Variable Portfolio - Global Bond Fund 18,257,201 GB1 AXP(R) Variable Portfolio - Global Bond Fund 17,872,512 GB5 AXP(R) Variable Portfolio - Global Bond Fund 1,239,939 GB4 AXP(R) Variable Portfolio - Global Bond Fund 1,708,838 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 121 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS Subaccount Investment Purchases -------------------------------------------------------------------------------- GR3 AXP(R) Variable Portfolio - Growth Fund $ 907,952 GR2 AXP(R) Variable Portfolio - Growth Fund 8,496,516 GR1 AXP(R) Variable Portfolio - Growth Fund 4,117,943 GR5 AXP(R) Variable Portfolio - Growth Fund 842,791 GR4 AXP(R) Variable Portfolio - Growth Fund 333,186 -------------------------------------------------------------------------------- EI3 AXP(R) Variable Portfolio - High Yield Bond Fund 34,261,705 EI2 AXP(R) Variable Portfolio - High Yield Bond Fund 39,700,916 EI1 AXP(R) Variable Portfolio - High Yield Bond Fund 41,951,298 EI5 AXP(R) Variable Portfolio - High Yield Bond Fund 4,049,171 EI4 AXP(R) Variable Portfolio - High Yield Bond Fund 4,284,577 -------------------------------------------------------------------------------- IE3 AXP(R) Variable Portfolio - International Fund 86,358,205 IE2 AXP(R) Variable Portfolio - International Fund 8,688,705 IE1 AXP(R) Variable Portfolio - International Fund 8,071,635 IE5 AXP(R) Variable Portfolio - International Fund 71,417 IE4 AXP(R) Variable Portfolio - International Fund 146,657 -------------------------------------------------------------------------------- MF3 AXP(R) Variable Portfolio - Managed Fund 242,570 MF2 AXP(R) Variable Portfolio - Managed Fund 28,961,852 MF1 AXP(R) Variable Portfolio - Managed Fund 19,322,497 MF5 AXP(R) Variable Portfolio - Managed Fund 646,670 MF4 AXP(R) Variable Portfolio - Managed Fund 553,576 -------------------------------------------------------------------------------- ND3 AXP(R) Variable Portfolio - New Dimensions Fund(R) 4,991,795 ND2 AXP(R) Variable Portfolio - New Dimensions Fund(R) 82,978,941 ND1 AXP(R) Variable Portfolio - New Dimensions Fund(R) 46,206,277 ND5 AXP(R) Variable Portfolio - New Dimensions Fund(R) 5,922,707 ND4 AXP(R) Variable Portfolio - New Dimensions Fund(R) 4,781,484 -------------------------------------------------------------------------------- SV3 AXP(R) Variable Portfolio - Partners Small Cap Value Fund 244,298 SV2 AXP(R) Variable Portfolio - Partners Small Cap Value Fund 38,199,750 SV1 AXP(R) Variable Portfolio - Partners Small Cap Value Fund 23,940,246 SV5 AXP(R) Variable Portfolio - Partners Small Cap Value Fund 3,358,190 SV4 AXP(R) Variable Portfolio - Partners Small Cap Value Fund 2,769,692 -------------------------------------------------------------------------------- IV3 AXP(R) Variable Portfolio - S&P 500 Index Fund 480,530 IV2 AXP(R) Variable Portfolio - S&P 500 Index Fund 22,482,651 IV1 AXP(R) Variable Portfolio - S&P 500 Index Fund 19,481,312 IV5 AXP(R) Variable Portfolio - S&P 500 Index Fund 1,624,986 IV4 AXP(R) Variable Portfolio - S&P 500 Index Fund 1,512,785 -------------------------------------------------------------------------------- FI3 AXP(R) Variable Portfolio - Short Duration U.S. Government Fund 1,860,431 FI2 AXP(R) Variable Portfolio - Short Duration U.S. Government Fund 95,767,884 FI1 AXP(R) Variable Portfolio - Short Duration U.S. Government Fund 82,798,262 FI5 AXP(R) Variable Portfolio - Short Duration U.S. Government Fund 6,770,197 FI4 AXP(R) Variable Portfolio - Short Duration U.S. Government Fund 8,912,084 -------------------------------------------------------------------------------- SC3 AXP(R) Variable Portfolio - Small Cap Advantage Fund 476,235 SC2 AXP(R) Variable Portfolio - Small Cap Advantage Fund 7,891,078 SC1 AXP(R) Variable Portfolio - Small Cap Advantage Fund 6,102,141 SC5 AXP(R) Variable Portfolio - Small Cap Advantage Fund 843,835 SC4 AXP(R) Variable Portfolio - Small Cap Advantage Fund 486,512 -------------------------------------------------------------------------------- SA3 AXP(R) Variable Portfolio - Strategy Aggressive Fund 12,022,872 SA2 AXP(R) Variable Portfolio - Strategy Aggressive Fund 3,983,916 SA1 AXP(R) Variable Portfolio - Strategy Aggressive Fund 1,930,970 SA5 AXP(R) Variable Portfolio - Strategy Aggressive Fund 121,103 SA4 AXP(R) Variable Portfolio - Strategy Aggressive Fund 166,592 -------------------------------------------------------------------------------- 3AC AIM V.I. Capital Appreciation Fund, Series II Shares 10,830 2AC AIM V.I. Capital Appreciation Fund, Series II Shares 8,107,689 1AC AIM V.I. Capital Appreciation Fund, Series II Shares 5,210,313 5AC AIM V.I. Capital Appreciation Fund, Series II Shares 364,986 4AC AIM V.I. Capital Appreciation Fund, Series II Shares 394,360 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 122 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS Subaccount Investment Purchases -------------------------------------------------------------------------------- 3AD AIM V.I. Capital Development Fund, Series II Shares $ 153,518 2AD AIM V.I. Capital Development Fund, Series II Shares 5,087,196 1AD AIM V.I. Capital Development Fund, Series II Shares 3,371,738 5AD AIM V.I. Capital Development Fund, Series II Shares 503,303 4AD AIM V.I. Capital Development Fund, Series II Shares 457,473 -------------------------------------------------------------------------------- 3AL AllianceBernstein VP Growth and Income Portfolio (Class B) 258,764 2AL AllianceBernstein VP Growth and Income Portfolio (Class B) 32,247,404 1AL AllianceBernstein VP Growth and Income Portfolio (Class B) 21,993,541 5AL AllianceBernstein VP Growth and Income Portfolio (Class B) 3,257,254 4AL AllianceBernstein VP Growth and Income Portfolio (Class B) 3,918,997 -------------------------------------------------------------------------------- 3AB AllianceBernstein VP International Value Portfolio (Class B) 2,679,208 2AB AllianceBernstein VP International Value Portfolio (Class B) 11,182,690 1AB AllianceBernstein VP International Value Portfolio (Class B) 8,004,938 5AB AllianceBernstein VP International Value Portfolio (Class B) 1,450,223 4AB AllianceBernstein VP International Value Portfolio (Class B) 1,481,283 -------------------------------------------------------------------------------- 3AI American Century(R) VP International, Class II 6,833,710 2AI American Century(R) VP International, Class II 7,865,628 1AI American Century(R) VP International, Class II 5,282,493 5AI American Century(R) VP International, Class II 931,563 4AI American Century(R) VP International, Class II 479,392 -------------------------------------------------------------------------------- 3AV American Century(R) VP Value, Class II 338,649 2AV American Century(R) VP Value, Class II 34,612,984 1AV American Century(R) VP Value, Class II 23,084,796 5AV American Century(R) VP Value, Class II 2,792,128 4AV American Century(R) VP Value, Class II 2,386,436 -------------------------------------------------------------------------------- 3SR Calvert Variable Series, Inc. Social Balanced Portfolio 2,224 2SR Calvert Variable Series, Inc. Social Balanced Portfolio 4,775,931 1SR Calvert Variable Series, Inc. Social Balanced Portfolio 3,722,793 5SR Calvert Variable Series, Inc. Social Balanced Portfolio 202,368 4SR Calvert Variable Series, Inc. Social Balanced Portfolio 226,087 -------------------------------------------------------------------------------- 3FG Fidelity(R) VIP Growth & Income Portfolio Service Class 2 91,771 2FG Fidelity(R) VIP Growth & Income Portfolio Service Class 2 37,403,752 1FG Fidelity(R) VIP Growth & Income Portfolio Service Class 2 25,233,347 5FG Fidelity(R) VIP Growth & Income Portfolio Service Class 2 3,416,338 4FG Fidelity(R) VIP Growth & Income Portfolio Service Class 2 3,368,246 -------------------------------------------------------------------------------- 3FM Fidelity(R) VIP Mid Cap Portfolio Service Class 2 186,581 2FM Fidelity(R) VIP Mid Cap Portfolio Service Class 2 42,974,830 1FM Fidelity(R) VIP Mid Cap Portfolio Service Class 2 29,222,061 5FM Fidelity(R) VIP Mid Cap Portfolio Service Class 2 4,068,412 4FM Fidelity(R) VIP Mid Cap Portfolio Service Class 2 3,524,800 -------------------------------------------------------------------------------- 3FO Fidelity(R) VIP Overseas Portfolio Service Class 2 6,199,944 2FO Fidelity(R) VIP Overseas Portfolio Service Class 2 10,124,848 1FO Fidelity(R) VIP Overseas Portfolio Service Class 2 7,109,770 5FO Fidelity(R) VIP Overseas Portfolio Service Class 2 609,207 4FO Fidelity(R) VIP Overseas Portfolio Service Class 2 582,135 -------------------------------------------------------------------------------- 3RE FTVIPT Franklin Real Estate Fund - Class 2 201,003 2RE FTVIPT Franklin Real Estate Fund - Class 2 49,971,245 1RE FTVIPT Franklin Real Estate Fund - Class 2 35,288,487 5RE FTVIPT Franklin Real Estate Fund - Class 2 3,445,268 4RE FTVIPT Franklin Real Estate Fund - Class 2 3,282,121 -------------------------------------------------------------------------------- 3SI FTVIPT Franklin Small Cap Value Securities Fund - Class 2 273,932 2SI FTVIPT Franklin Small Cap Value Securities Fund - Class 2 26,036,576 1SI FTVIPT Franklin Small Cap Value Securities Fund - Class 2 19,015,101 5SI FTVIPT Franklin Small Cap Value Securities Fund - Class 2 2,049,017 4SI FTVIPT Franklin Small Cap Value Securities Fund - Class 2 1,697,395 -------------------------------------------------------------------------------- 3MS FTVIPT Mutual Shares Securities Fund - Class 2 121,227 2MS FTVIPT Mutual Shares Securities Fund - Class 2 9,403,558 1MS FTVIPT Mutual Shares Securities Fund - Class 2 7,434,348 5MS FTVIPT Mutual Shares Securities Fund - Class 2 1,653,764 4MS FTVIPT Mutual Shares Securities Fund - Class 2 1,441,527 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 123 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS Subaccount Investment Purchases -------------------------------------------------------------------------------- 3UE Goldman Sachs VIT CORE(SM) U.S. Equity Fund $ 1,426,906 2UE Goldman Sachs VIT CORE(SM) U.S. Equity Fund 11,270,086 1UE Goldman Sachs VIT CORE(SM) U.S. Equity Fund 7,748,443 5UE Goldman Sachs VIT CORE(SM) U.S. Equity Fund 1,016,465 4UE Goldman Sachs VIT CORE(SM) U.S. Equity Fund 1,438,098 -------------------------------------------------------------------------------- 3MC Goldman Sachs VIT Mid Cap Value Fund 505,615 2MC Goldman Sachs VIT Mid Cap Value Fund 45,591,517 1MC Goldman Sachs VIT Mid Cap Value Fund 32,861,063 5MC Goldman Sachs VIT Mid Cap Value Fund 2,761,082 4MC Goldman Sachs VIT Mid Cap Value Fund 2,918,961 -------------------------------------------------------------------------------- 3FS INVESCO VIF - Financial Services Fund 3,337 2FS INVESCO VIF - Financial Services Fund 4,258,767 1FS INVESCO VIF - Financial Services Fund 2,836,988 5FS INVESCO VIF - Financial Services Fund 494,447 4FS INVESCO VIF - Financial Services Fund 443,638 -------------------------------------------------------------------------------- 3TC INVESCO VIF - Technology Fund 1,166,594 2TC INVESCO VIF - Technology Fund 2,216,703 1TC INVESCO VIF - Technology Fund 1,507,343 5TC INVESCO VIF - Technology Fund 169,042 4TC INVESCO VIF - Technology Fund 135,407 -------------------------------------------------------------------------------- 3MG MFS(R) Investors Growth Stock Series - Service Class 213,542 2MG MFS(R) Investors Growth Stock Series - Service Class 12,886,315 1MG MFS(R) Investors Growth Stock Series - Service Class 8,712,341 5MG MFS(R) Investors Growth Stock Series - Service Class 979,474 4MG MFS(R) Investors Growth Stock Series - Service Class 650,410 -------------------------------------------------------------------------------- 3MD MFS(R) New Discovery Series - Service Class 258,351 2MD MFS(R) New Discovery Series - Service Class 19,151,624 1MD MFS(R) New Discovery Series - Service Class 13,580,341 5MD MFS(R) New Discovery Series - Service Class 1,825,127 4MD MFS(R) New Discovery Series - Service Class 1,574,538 -------------------------------------------------------------------------------- 3UT MFS(R) Utilities Series - Service Class 3,415 2UT MFS(R) Utilities Series - Service Class 5,780,795 1UT MFS(R) Utilities Series - Service Class 3,776,372 5UT MFS(R) Utilities Series - Service Class 295,447 4UT MFS(R) Utilities Series - Service Class 457,596 -------------------------------------------------------------------------------- 3HS Putnam VT Health Sciences Fund - Class IB Shares 13,471 2HS Putnam VT Health Sciences Fund - Class IB Shares 7,993,696 1HS Putnam VT Health Sciences Fund - Class IB Shares 4,484,190 5HS Putnam VT Health Sciences Fund - Class IB Shares 571,921 4HS Putnam VT Health Sciences Fund - Class IB Shares 596,772 -------------------------------------------------------------------------------- 3PI Putnam VT International Equity Fund - Class IB Shares 8,826,393 2PI Putnam VT International Equity Fund - Class IB Shares 15,820,404 1PI Putnam VT International Equity Fund - Class IB Shares 11,122,629 5PI Putnam VT International Equity Fund - Class IB Shares 2,005,156 4PI Putnam VT International Equity Fund - Class IB Shares 1,403,979 -------------------------------------------------------------------------------- 3VS Putnam VT Vista Fund - Class IB Shares 60,986 2VS Putnam VT Vista Fund - Class IB Shares 3,474,560 1VS Putnam VT Vista Fund - Class IB Shares 1,252,992 5VS Putnam VT Vista Fund - Class IB Shares 232,106 4VS Putnam VT Vista Fund - Class IB Shares 160,844 -------------------------------------------------------------------------------- 3SO Strong Opportunity Fund II - Advisor Class 139,835 2SO Strong Opportunity Fund II - Advisor Class 18,771,773 1SO Strong Opportunity Fund II - Advisor Class 11,825,138 5SO Strong Opportunity Fund II - Advisor Class 2,202,171 4SO Strong Opportunity Fund II - Advisor Class 2,056,991 -------------------------------------------------------------------------------- 3IT Wanger International Small Cap 12,666,000 2IT Wanger International Small Cap 12,710,610 1IT Wanger International Small Cap 10,186,624 5IT Wanger International Small Cap 1,448,026 4IT Wanger International Small Cap 1,024,844 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 124 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS Subaccount Investment Purchases -------------------------------------------------------------------------------- 3SP Wanger U.S. Smaller Companies $ 992,553 2SP Wanger U.S. Smaller Companies 39,464,425 1SP Wanger U.S. Smaller Companies 28,517,895 5SP Wanger U.S. Smaller Companies 3,388,035 4SP Wanger U.S. Smaller Companies 3,186,464 -------------------------------------------------------------------------------- 3IP Lazard Retirement International Equity Portfolio 8,849,255 2IP Lazard Retirement International Equity Portfolio 9,537,752 1IP Lazard Retirement International Equity Portfolio 7,027,486 5IP Lazard Retirement International Equity Portfolio 525,384 4IP Lazard Retirement International Equity Portfolio 584,162 -------------------------------------------------------------------------------- 8. FINANCIAL HIGHLIGHTS The table below shows certain financial information regarding the subaccounts.
CR3 CR2 CR1 CR5(4) CR4(4) CM3 CM2 CM1 CM5(4) CM4(4) Accumulation unit value At Dec. 31, 2000 $0.94 $0.93 $0.93 -- -- $1.07 $1.06 $1.06 -- -- At Dec. 31, 2001 $0.76 $0.76 $0.76 -- -- $1.10 $1.09 $1.09 -- -- At Dec. 31, 2002 $0.59 $0.59 $0.58 $0.75 $0.81 $1.11 $1.10 $1.09 $1.00 $1.00 ----------------------------------------------------------------------------------------------------------------------------- Units (000s) At Dec. 31, 2001 291 26,327 26,779 -- -- 5,658 243,870 265,455 -- -- At Dec. 31, 2002 202 52,124 34,956 291 96 3,911 255,251 228,237 12,452 12,148 ----------------------------------------------------------------------------------------------------------------------------- Net assets (000s) At Dec. 31, 2001 $222 $20,244 $20,374 -- -- $6,219 $267,061 $289,729 -- -- At Dec. 31, 2002 $120 $30,833 $20,512 $217 $77 $4,325 $280,619 $249,280 $12,459 $12,133 ----------------------------------------------------------------------------------------------------------------------------- Investment income ratio(1) For the year ended Dec. 31, 2001 0.27% 0.30% 0.31% -- -- 3.60% 3.55% 3.57% -- -- For the year ended Dec. 31, 2002 0.42% 0.57% 0.54% 0.62% 0.63% 1.15% 1.16% 1.17% 1.06% 1.08% ----------------------------------------------------------------------------------------------------------------------------- Expense ratio(2) For the year ended Dec. 31, 2001 0.55% 0.75% 0.95% -- -- 0.55% 0.75% 0.95% -- -- For the year ended Dec. 31, 2002 0.55% 0.75% 0.95% 1.00% 1.20% 0.55% 0.75% 0.95% 1.00% 1.20% ----------------------------------------------------------------------------------------------------------------------------- Total return(3) For the year ended Dec. 31, 2001 (19.15%) (18.28%) (18.28%) -- -- 2.80% 2.83% 2.83% -- -- For the year ended Dec. 31, 2002 (22.37%) (22.37%) (23.68%) (25.00%) (19.00%) 0.91% 0.92% 0.00% 0.00% 0.00% -----------------------------------------------------------------------------------------------------------------------------
BD3 BD2 BD1 BD5(4) BD4(4) DE3 DE2 DE1 DE5(4) DE4(4) Accumulation unit value At Dec. 31, 2000 $1.06 $1.06 $1.06 -- -- $1.01 $1.01 $1.01 -- -- At Dec. 31, 2001 $1.14 $1.13 $1.13 -- -- $1.02 $1.02 $1.02 -- -- At Dec. 31, 2002 $1.20 $1.19 $1.18 $1.04 $1.04 $0.82 $0.82 $0.82 $0.83 $0.83 ----------------------------------------------------------------------------------------------------------------------------- Units (000s) At Dec. 31, 2001 985 83,968 106,760 -- -- 281 43,328 41,299 -- -- At Dec. 31, 2002 762 154,530 159,405 6,481 5,971 1,262 86,442 67,958 3,101 2,058 ----------------------------------------------------------------------------------------------------------------------------- Net assets (000s) At Dec. 31, 2001 $1,122 $95,910 $120,835 -- -- $288 $44,814 $42,181 -- -- At Dec. 31, 2002 $911 $184,587 $188,953 $6,730 $6,190 $1,040 $71,609 $55,726 $2,585 $1,701 ----------------------------------------------------------------------------------------------------------------------------- Investment income ratio(1) For the year ended Dec. 31, 2001 6.32% 6.38% 6.38% -- -- 0.98% 1.26% 1.26% -- -- For the year ended Dec. 31, 2002 5.17% 5.10% 5.08% 5.25% 5.19% 2.07% 1.62% 1.59% 1.88% 1.78% ----------------------------------------------------------------------------------------------------------------------------- Expense ratio(2) For the year ended Dec. 31, 2001 0.55% 0.75% 0.95% -- -- 0.55% 0.75% 0.95% -- -- For the year ended Dec. 31, 2002 0.55% 0.75% 0.95% 1.00% 1.20% 0.55% 0.75% 0.95% 1.00% 1.20% ----------------------------------------------------------------------------------------------------------------------------- Total return(3) For the year ended Dec. 31, 2001 7.55% 6.60% 6.60% -- -- 0.99% 0.99% 0.99% -- -- For the year ended Dec. 31, 2002 5.26% 5.31% 4.42% 4.00% 4.00% (19.61%) (19.61%) (19.61%) (17.00%) (17.00%) -----------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- 125 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
EM3 EM2 EM1 EM5(4) EM4(4) ES3(5) ES2(5) ES1(5) ES5(4) ES4(4) Accumulation unit value At Dec. 31, 2000 $0.75 $0.74 $0.74 -- -- -- -- -- -- -- At Dec. 31, 2001 $0.73 $0.72 $0.72 -- -- $1.01 $1.00 $0.99 -- -- At Dec. 31, 2002 $0.69 $0.68 $0.67 $0.90 $0.90 $0.87 $0.85 $0.85 $0.88 $0.88 ------------------------------------------------------------------------------------------------------------------------------ Units (000s) At Dec. 31, 2001 3 1,789 1,542 -- -- 38 2,489 2,238 -- -- At Dec. 31, 2002 277 4,750 3,888 220 121 328 16,388 12,145 1,153 889 ------------------------------------------------------------------------------------------------------------------------------ Net assets (000s) At Dec. 31, 2001 $3,674 $1,291 $1,108 -- -- $2,063 $2,477 $2,224 -- -- At Dec. 31, 2002 $3,645 $3,216 $2,618 $198 $109 $2,021 $13,959 $10,310 $1,013 $780 ------------------------------------------------------------------------------------------------------------------------------ Investment income ratio(1) For the year ended Dec. 31, 2001 0.02% 0.02% 0.02% -- -- -- -- -- -- -- For the year ended Dec. 31, 2002 -- -- -- -- -- -- -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------ Expense ratio(2) For the year ended Dec. 31, 2001 0.55% 0.75% 0.95% -- -- 0.55% 0.75% 0.95% -- -- For the year ended Dec. 31, 2002 0.55% 0.75% 0.95% 1.00% 1.20% 0.55% 0.75% 0.95% 1.00% 1.20% ------------------------------------------------------------------------------------------------------------------------------ Total return(3) For the year ended Dec. 31, 2001 (2.67%) (2.70%) (2.70%) -- -- 1.00% 0.00% (1.00%) -- -- For the year ended Dec. 31, 2002 (5.48%) (5.56%) (6.94%) (10.00%) (10.00%) (13.86%) (15.00%) (14.14%) (12.00%) (12.00%) ------------------------------------------------------------------------------------------------------------------------------
GB3 GB2 GB1 GB5(4) GB4(4) GR3 GR2 GR1 GR5(4) GR4(4) Accumulation unit value At Dec. 31, 2000 $1.03 $1.03 $1.02 -- -- $0.94 $0.95 $0.94 -- -- At Dec. 31, 2001 $1.04 $1.03 $1.03 -- -- $0.64 $0.65 $0.64 -- -- At Dec. 31, 2002 $1.18 $1.18 $1.17 $1.14 $1.14 $0.47 $0.48 $0.47 $0.77 $0.76 ------------------------------------------------------------------------------------------------------------------------------ Units (000s) At Dec. 31, 2001 249 16,572 23,970 -- -- 1,285 129,186 130,764 -- -- At Dec. 31, 2002 251 31,133 36,626 1,060 1,529 1,064 135,693 118,986 973 392 ------------------------------------------------------------------------------------------------------------------------------ Net assets (000s) At Dec. 31, 2001 $258 $17,099 $24,619 -- -- $827 $83,920 $84,435 -- -- At Dec. 31, 2002 $298 $36,668 $42,852 $1,211 $1,742 $503 $64,633 $56,268 $745 $300 ------------------------------------------------------------------------------------------------------------------------------ Investment income ratio(1) For the year ended Dec. 31, 2001 4.82% 3.62% 3.58% -- -- -- -- -- -- -- For the year ended Dec. 31, 2002 4.95% 4.77% 4.72% 4.75% 4.90% 0.06% 0.07% 0.07% 0.18% 0.17% ------------------------------------------------------------------------------------------------------------------------------ Expense ratio(2) For the year ended Dec. 31, 2001 0.55% 0.75% 0.95% -- -- 0.55% 0.75% 0.95% -- -- For the year ended Dec. 31, 2002 0.55% 0.75% 0.95% 1.00% 1.20% 0.55% 0.75% 0.95% 1.00% 1.20% ------------------------------------------------------------------------------------------------------------------------------ Total return(3) For the year ended Dec. 31, 2001 0.97% 0.00% 0.98% -- -- (31.91%) (31.58%) (31.91%) -- -- For the year ended Dec. 31, 2002 13.46% 14.56% 13.59% 14.00% 14.00% (26.56%) (26.15%) (26.56%) (23.00%) (24.00%) ------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- 126 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
EI3 EI2 EI1 EI5(4) EI4(4) IE3 IE2 IE1 IE5(4) IE4(4) Accumulation unit value At Dec. 31, 2000 $0.91 $0.91 $0.91 -- -- $0.95 $0.95 $0.95 -- -- At Dec. 31, 2001 $0.95 $0.95 $0.94 -- -- $0.67 $0.67 $0.67 -- -- At Dec. 31, 2002 $0.89 $0.88 $0.87 $0.94 $0.93 $0.55 $0.55 $0.54 $0.85 $0.85 ------------------------------------------------------------------------------------------------------------------------------ Units (000s) At Dec. 31, 2001 1,549 58,348 88,813 -- -- 65 15,821 18,664 -- -- At Dec. 31, 2002 1,480 93,845 122,784 3,957 4,269 488 20,012 19,189 55 105 ------------------------------------------------------------------------------------------------------------------------------ Net assets (000s) At Dec. 31, 2001 $1,475 $55,486 $84,017 -- -- $44 $10,653 $12,551 -- -- At Dec. 31, 2002 $1,311 $82,940 $107,749 $3,701 $3,987 $267 $10,962 $10,469 $47 $89 ------------------------------------------------------------------------------------------------------------------------------ Investment income ratio(1) For the year ended Dec. 31, 2001 10.89% 10.92% 10.93% -- -- 1.60% 1.23% 1.23% -- -- For the year ended Dec. 31, 2002 7.43% 7.71% 7.73% 7.31% 7.35% 0.75% 0.99% 0.94% 1.16% 0.94% ------------------------------------------------------------------------------------------------------------------------------ Expense ratio(2) For the year ended Dec. 31, 2001 0.55% 0.75% 0.95% -- -- 0.55% 0.75% 0.95% -- -- For the year ended Dec. 31, 2002 0.55% 0.75% 0.95% 1.00% 1.20% 0.55% 0.75% 0.95% 1.00% 1.20% ------------------------------------------------------------------------------------------------------------------------------ Total return(3) For the year ended Dec. 31, 2001 4.40% 4.40% 3.30% -- -- (29.47%) (29.47%) (29.47%) -- -- For the year ended Dec. 31, 2002 (6.32%) (7.37%) (7.45%) (6.00%) (7.00%) (17.91%) (17.91%) (19.40%) (15.00%) (15.00%) ------------------------------------------------------------------------------------------------------------------------------
MF3 MF2 MF1 MF5(4) MF4(4) ND3 ND2 ND1 ND5(4) ND4(4) Accumulation unit value At Dec. 31, 2000 $1.06 $1.05 $1.05 -- -- $1.08 $1.07 $1.07 -- -- At Dec. 31, 2001 $0.94 $0.94 $0.93 -- -- $0.89 $0.89 $0.88 -- -- At Dec. 31, 2002 $0.81 $0.81 $0.80 $0.90 $0.90 $0.69 $0.69 $0.68 $0.80 $0.80 ------------------------------------------------------------------------------------------------------------------------------ Units (000s) At Dec. 31, 2001 296 37,760 53,096 -- -- 3,252 276,054 307,320 -- -- At Dec. 31, 2002 120 64,273 64,613 531 462 3,029 373,715 347,841 6,565 5,049 ------------------------------------------------------------------------------------------------------------------------------ Net assets (000s) At Dec. 31, 2001 $278 $35,997 $49,925 -- -- $2,901 $246,108 $272,882 -- -- At Dec. 31, 2002 $98 $52,453 $52,246 $477 $414 $2,099 $258,144 $239,068 $5,255 $4,035 ------------------------------------------------------------------------------------------------------------------------------ Investment income ratio(1) For the year ended Dec. 31, 2001 2.50% 2.53% 2.53% -- -- 0.21% 0.24% 0.23% -- -- For the year ended Dec. 31, 2002 2.54% 2.74% 2.63% 3.02% 3.24% 0.51% 0.52% 0.51% 0.59% 0.57% ------------------------------------------------------------------------------------------------------------------------------ Expense ratio(2) For the year ended Dec. 31, 2001 0.55% 0.75% 0.95% -- -- 0.55% 0.75% 0.95% -- -- For the year ended Dec. 31, 2002 0.55% 0.75% 0.95% 1.00% 1.20% 0.55% 0.75% 0.95% 1.00% 1.20% ------------------------------------------------------------------------------------------------------------------------------ Total return(3) For the year ended Dec. 31, 2001 (11.32%) (10.48%) (11.43%) -- -- (17.59%) (16.82%) (17.76%) -- -- For the year ended Dec. 31, 2002 (13.83%) (13.83%) (13.98%) (10.00%) (10.00%) (22.47%) (22.47%) (22.73%) (20.00%) (20.00%) ------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- 127 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
SV3(6) SV2(6) SV1(6) SV5(4) SV4(4) IV3 IV2 IV1 IV5(4) IV4(4) Accumulation unit value At Dec. 31, 2000 -- -- -- -- -- $0.90 $0.91 $0.91 -- -- At Dec. 31, 2001 $1.07 $1.07 $1.07 -- -- $0.79 $0.79 $0.79 -- -- At Dec. 31, 2002 $0.93 $0.93 $0.93 $0.88 $0.88 $0.61 $0.61 $0.60 $0.80 $0.80 ------------------------------------------------------------------------------------------------------------------------------ Units (000s) At Dec. 31, 2001 411 6,885 6,314 -- -- 770 35,957 40,575 -- -- At Dec. 31, 2002 627 43,199 28,099 3,316 2,665 973 64,771 65,011 1,889 1,648 ------------------------------------------------------------------------------------------------------------------------------ Net assets (000s) At Dec. 31, 2001 $4,717 $7,380 $6,763 -- -- $606 $28,329 $32,012 -- -- At Dec. 31, 2002 $4,324 $40,465 $26,292 $2,928 $2,349 $591 $39,410 $39,405 $1,505 $1,310 ------------------------------------------------------------------------------------------------------------------------------ Investment income ratio(1) For the year ended Dec. 31, 2001 -- -- -- -- -- 0.55% 0.93% 0.91% -- -- For the year ended Dec. 31, 2002 0.11% 0.18% 0.16% 0.24% 0.21% 0.96% 1.00% 0.98% 1.28% 1.21% ------------------------------------------------------------------------------------------------------------------------------ Expense ratio(2) For the year ended Dec. 31, 2001 0.55% 0.75% 0.95% -- -- 0.55% 0.75% 0.95% -- -- For the year ended Dec. 31, 2002 0.55% 0.75% 0.95% 1.00% 1.20% 0.55% 0.75% 0.95% 1.00% 1.20% ------------------------------------------------------------------------------------------------------------------------------ Total return(3) For the year ended Dec. 31, 2001 7.00% 7.00% 7.00% -- -- (12.22%) (13.19%) (13.19%) -- -- For the year ended Dec. 31, 2002 (13.08%) (13.08%) (13.08%) (12.00%) (12.00%) (22.78%) (22.78%) (24.05%) (20.00%) (20.00%) ------------------------------------------------------------------------------------------------------------------------------
FI3 FI2 FI1 FI5(4) FI4(4) SC3 SC2 SC1 SC5(4) SC4(4) Accumulation unit value At Dec. 31, 2000 $1.09 $1.08 $1.08 -- -- $1.16 $1.16 $1.16 -- -- At Dec. 31, 2001 $1.15 $1.14 $1.13 -- -- $1.08 $1.08 $1.07 -- -- At Dec. 31, 2002 $1.21 $1.20 $1.19 $1.04 $1.04 $0.89 $0.89 $0.88 $0.85 $0.85 ------------------------------------------------------------------------------------------------------------------------------ Units (000s) At Dec. 31, 2001 592 50,510 56,966 -- -- 378 22,792 24,346 -- -- At Dec. 31, 2002 1,275 124,866 116,147 6,107 7,646 393 29,202 29,341 900 516 ------------------------------------------------------------------------------------------------------------------------------ Net assets (000s) At Dec. 31, 2001 $680 $57,952 $64,826 -- -- $408 $24,594 $26,157 -- -- At Dec. 31, 2002 $1,543 $149,972 $138,406 $6,358 $7,946 $349 $25,953 $25,898 $767 $439 ------------------------------------------------------------------------------------------------------------------------------ Investment income ratio(1) For the year ended Dec. 31, 2001 4.22% 4.52% 4.55% -- -- -- -- -- -- -- For the year ended Dec. 31, 2002 2.92% 2.88% 2.85% 2.96% 2.98% -- -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------ Expense ratio(2) For the year ended Dec. 31, 2001 0.55% 0.75% 0.95% -- -- 0.55% 0.75% 0.95% -- -- For the year ended Dec. 31, 2002 0.55% 0.75% 0.95% 1.00% 1.20% 0.55% 0.75% 0.95% 1.00% 1.20% ------------------------------------------------------------------------------------------------------------------------------ Total return(3) For the year ended Dec. 31, 2001 5.50% 5.56% 4.63% -- -- (6.90%) (6.90%) (7.76%) -- -- For the year ended Dec. 31, 2002 5.22% 5.26% 5.31% 4.00% 4.00% (17.59%) (17.59%) (17.76%) (15.00%) (15.00%) ------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- 128 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
SA3 SA2 SA1 SA5(4) SA4(4) Accumulation unit value At Dec. 31, 2000 $1.22 $1.22 $1.21 -- -- At Dec. 31, 2001 $0.81 $0.81 $0.81 -- -- At Dec. 31, 2002 $0.55 $0.55 $0.54 $0.72 $0.72 ------------------------------------------------------------------------------------------------------------------------------ Units (000s) At Dec. 31, 2001 607 58,748 65,574 -- -- At Dec. 31, 2002 386 58,958 55,183 114 161 ------------------------------------------------------------------------------------------------------------------------------ Net assets (000s) At Dec. 31, 2001 $494 $47,765 $53,045 -- -- At Dec. 31, 2002 $213 $32,369 $30,114 $82 $116 ------------------------------------------------------------------------------------------------------------------------------ Investment income ratio(1) For the year ended Dec. 31, 2001 0.19% 0.21% 0.21% -- -- For the year ended Dec. 31, 2002 -- -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------ Expense ratio(2) For the year ended Dec. 31, 2001 0.55% 0.75% 0.95% -- -- For the year ended Dec. 31, 2002 0.55% 0.75% 0.95% 1.00% 1.20% ------------------------------------------------------------------------------------------------------------------------------ Total return(3) For the year ended Dec. 31, 2001 (33.61%) (33.61%) (33.06%) -- -- For the year ended Dec. 31, 2002 (32.10%) (32.10%) (33.33%) (28.00%) (28.00%) ------------------------------------------------------------------------------------------------------------------------------
3AC(7) 2AC(7) 1AC(7) 5AC(4) 4AC(4) 3AD(7) 2AD(7) 1AD(7) 5AD(4) 4AD(4) Accumulation unit value At Dec. 31, 2000 -- -- -- -- -- -- -- -- -- -- At Dec. 31, 2001 $0.98 $0.98 $0.98 -- -- $0.98 $0.98 $0.98 -- -- At Dec. 31, 2002 $0.73 $0.73 $0.73 $0.78 $0.78 $0.77 $0.76 $0.76 $0.80 $0.80 ------------------------------------------------------------------------------------------------------------------------------ Units (000s) At Dec. 31, 2001 6 1,710 1,711 -- -- 3 1,459 1,224 -- -- At Dec. 31, 2002 4 11,313 7,624 379 447 180 6,981 4,808 552 463 ------------------------------------------------------------------------------------------------------------------------------ Net assets (000s) At Dec. 31, 2001 $6 $1,670 $1,670 -- -- $3 $1,433 $1,202 -- -- At Dec. 31, 2002 $3 $8,276 $5,562 $296 $347 $138 $5,336 $3,687 $444 $372 ------------------------------------------------------------------------------------------------------------------------------ Investment income ratio(1) For the year ended Dec. 31, 2001 -- -- -- -- -- -- -- -- -- -- For the year ended Dec. 31, 2002 -- -- -- -- -- -- -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------ Expense ratio(2) For the year ended Dec. 31, 2001 0.55% 0.75% 0.95% -- -- 0.55% 0.75% 0.95% -- -- For the year ended Dec. 31, 2002 0.55% 0.75% 0.95% 1.00% 1.20% 0.55% 0.75% 0.95% 1.00% 1.20% ------------------------------------------------------------------------------------------------------------------------------ Total return(3) For the year ended Dec. 31, 2001 (2.00%) (2.00%) (2.00%) -- -- (2.00%) (2.00%) (2.00%) -- -- For the year ended Dec. 31, 2002 (25.51%) (25.51%) (25.51%) (22.00%) (22.00%) (21.43%) (22.45%) (22.45%) (20.00%) (20.00%) ------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- 129 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
3AL(7) 2AL(7) 1AL(7) 5AL(4) 4AL(4) 3AB(7) 2AB(7) 1AB(7) 5AB(4) 4AB(4) Accumulation unit value At Dec. 31, 2000 -- -- -- -- -- -- -- -- -- -- At Dec. 31, 2001 $0.97 $0.96 $0.96 -- -- $0.98 $0.98 $0.98 -- -- At Dec. 31, 2002 $0.75 $0.74 $0.74 $0.81 $0.81 $0.92 $0.92 $0.92 $0.95 $0.95 ------------------------------------------------------------------------------------------------------------------------------ Units (000s) At Dec. 31, 2001 136 5,550 4,363 -- -- 210 805 790 -- -- At Dec. 31, 2002 310 43,189 29,770 3,503 4,072 606 12,313 9,270 1,417 1,371 ------------------------------------------------------------------------------------------------------------------------------ Net assets (000s) At Dec. 31, 2001 $131 $5,366 $4,225 -- -- $205 $787 $771 -- -- At Dec. 31, 2002 $231 $32,201 $22,176 $2,831 $3,285 $557 $11,303 $8,490 $1,350 $1,304 ------------------------------------------------------------------------------------------------------------------------------ Investment income ratio(1) For the year ended Dec. 31, 2001 -- -- -- -- -- -- -- -- -- -- For the year ended Dec. 31, 2002 0.49% 0.50% 0.51% 0.45% 0.51% 0.09% 0.11% 0.10% 0.06% 0.10% ------------------------------------------------------------------------------------------------------------------------------ Expense ratio(2) For the year ended Dec. 31, 2001 0.55% 0.75% 0.95% -- -- 0.55% 0.75% 0.95% -- -- For the year ended Dec. 31, 2002 0.55% 0.75% 0.95% 1.00% 1.20% 0.55% 0.75% 0.95% 1.00% 1.20% ------------------------------------------------------------------------------------------------------------------------------ Total return(3) For the year ended Dec. 31, 2001 (3.00%) (4.00%) (4.00%) -- -- (2.00%) (2.00%) (2.00%) -- -- For the year ended Dec. 31, 2002 (22.68%) (22.92%) (22.92%) (19.00%) (19.00%) (6.12%) (6.12%) (6.12%) (5.00%) (5.00%) ------------------------------------------------------------------------------------------------------------------------------
3AI(7) 2AI(7) 1AI(7) 5AI(4) 4AI(4) 3AV(7) 2AV(7) 1AV(7) 5AV(4) 4AV(4) Accumulation unit value At Dec. 31, 2000 -- -- -- -- -- -- -- -- -- -- At Dec. 31, 2001 $0.93 $0.93 $0.93 -- -- $1.04 $1.04 $1.04 -- -- At Dec. 31, 2002 $0.74 $0.73 $0.73 $0.85 $0.85 $0.90 $0.90 $0.89 $0.89 $0.89 ------------------------------------------------------------------------------------------------------------------------------ Units (000s) At Dec. 31, 2001 1 1,950 1,927 -- -- 146 7,356 7,298 -- -- At Dec. 31, 2002 254 11,378 8,200 944 448 483 42,497 30,523 2,837 2,396 ------------------------------------------------------------------------------------------------------------------------------ Net assets (000s) At Dec. 31, 2001 $1 $1,817 $1,797 -- -- $151 $7,632 $7,740 -- -- At Dec. 31, 2002 $187 $8,360 $6,017 $802 $380 $434 $38,114 $27,549 $2,523 $2,127 ------------------------------------------------------------------------------------------------------------------------------ Investment income ratio(1) For the year ended Dec. 31, 2001 -- -- -- -- -- -- -- -- -- -- For the year ended Dec. 31, 2002 1.07% 0.38% 0.46% 0.05% 0.12% 0.45% 0.41% 0.51% 0.07% 0.06% ------------------------------------------------------------------------------------------------------------------------------ Expense ratio(2) For the year ended Dec. 31, 2001 0.55% 0.75% 0.95% -- -- 0.55% 0.75% 0.95% -- -- For the year ended Dec. 31, 2002 0.55% 0.75% 0.95% 1.00% 1.20% 0.55% 0.75% 0.95% 1.00% 1.20% ------------------------------------------------------------------------------------------------------------------------------ Total return(3) For the year ended Dec. 31, 2001 (7.00%) (7.00%) (7.00%) -- -- 4.00% 4.00% 4.00% -- -- For the year ended Dec. 31, 2002 (20.43%) (21.51%) (21.51%) (15.00%) (15.00%) (13.46%) (13.46%) (14.42%) (11.00%) (11.00%) ------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- 130 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
3SR 2SR 1SR 5SR(4) 4SR(4) 3FG(7) 2FG(7) 1FG(7) 5FG(4) 4FG(4) Accumulation unit value At Dec. 31, 2000 $0.96 $0.96 $0.96 -- -- -- -- -- -- -- At Dec. 31, 2001 $0.89 $0.89 $0.89 -- -- $1.00 $1.00 $1.00 -- -- At Dec. 31, 2002 $0.78 $0.78 $0.77 $0.88 $0.88 $0.83 $0.82 $0.82 $0.85 $0.85 ------------------------------------------------------------------------------------------------------------------------------ Units (000s) At Dec. 31, 2001 6 4,490 6,090 -- -- 132 6,363 8,177 -- -- At Dec. 31, 2002 8 9,520 9,832 211 208 233 48,686 36,320 3,592 3,508 ------------------------------------------------------------------------------------------------------------------------------ Net assets (000s) At Dec. 31, 2001 $6 $3,997 $5,404 -- -- $132 $6,354 $8,323 -- -- At Dec. 31, 2002 $6 $7,427 $7,587 $186 $183 $193 $40,222 $30,006 $3,071 $2,994 ------------------------------------------------------------------------------------------------------------------------------ Investment income ratio(1) For the year ended Dec. 31, 2001 7.75% 5.83% 5.84% -- -- -- -- -- -- -- For the year ended Dec. 31, 2002 3.04% 3.80% 3.43% 9.05% 7.28% 1.13% 0.49% 0.74% -- -- ------------------------------------------------------------------------------------------------------------------------------ Expense ratio(2) For the year ended Dec. 31, 2001 0.55% 0.75% 0.95% -- -- 0.55% 0.75% 0.95% -- -- For the year ended Dec. 31, 2002 0.55% 0.75% 0.95% 1.00% 1.20% 0.55% 0.75% 0.95% 1.00% 1.20% ------------------------------------------------------------------------------------------------------------------------------ Total return(3) For the year ended Dec. 31, 2001 (7.29%) (7.29%) (7.29%) -- -- 0.00% 0.00% 0.00% -- -- For the year ended Dec. 31, 2002 (12.36%) (12.36%) (13.48%) (12.00%) (12.00%) (17.00%) (18.00%) (18.00%) (15.00%) (15.00%) ------------------------------------------------------------------------------------------------------------------------------
3FM(7) 2FM(7) 1FM(7) 5FM(4) 4FM(4) 3FO(7) 2FO(7) 1FO(7) 5FO(4) 4FO(4) Accumulation unit value At Dec. 31, 2000 -- -- -- -- -- -- -- -- -- -- At Dec. 31, 2001 $1.04 $1.04 $1.04 -- -- $0.95 $0.95 $0.94 -- -- At Dec. 31, 2002 $0.93 $0.93 $0.93 $0.90 $0.90 $0.75 $0.75 $0.74 $0.83 $0.83 ------------------------------------------------------------------------------------------------------------------------------ Units (000s) At Dec. 31, 2001 132 6,903 6,689 -- -- 7 2,147 2,157 -- -- At Dec. 31, 2002 325 50,458 35,541 4,182 3,541 324 13,157 10,123 553 610 ------------------------------------------------------------------------------------------------------------------------------ Net assets (000s) At Dec. 31, 2001 $137 $7,246 $6,950 -- -- $7 $2,029 $2,036 -- -- At Dec. 31, 2002 $303 $46,916 $32,955 $3,759 $3,177 $243 $9,829 $7,632 $458 $504 ------------------------------------------------------------------------------------------------------------------------------ Investment income ratio(1) For the year ended Dec. 31, 2001 -- -- -- -- -- -- -- -- -- -- For the year ended Dec. 31, 2002 0.66% 0.32% 0.41% -- -- 0.04% 0.32% 0.43% -- -- ------------------------------------------------------------------------------------------------------------------------------ Expense ratio(2) For the year ended Dec. 31, 2001 0.55% 0.75% 0.95% -- -- 0.55% 0.75% 0.95% -- -- For the year ended Dec. 31, 2002 0.55% 0.75% 0.95% 1.00% 1.20% 0.55% 0.75% 0.95% 1.00% 1.20% ------------------------------------------------------------------------------------------------------------------------------ Total return(3) For the year ended Dec. 31, 2001 4.00% 4.00% 4.00% -- -- (5.00%) (5.00%) (6.00%) -- -- For the year ended Dec. 31, 2002 (10.58%) (10.58%) (10.58%) (10.00%) (10.00%) (21.05%) (21.05%) (21.28%) (17.00%) (17.00%) ------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- 131 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
3RE 2RE 1RE 5RE(4) 4RE(4) 3SI 2SI 1SI 5SI(4) 4SI(4) Accumulation unit value At Dec. 31, 2000 $1.26 $1.25 $1.25 -- -- $1.20 $1.19 $1.19 -- -- At Dec. 31, 2001 $1.35 $1.34 $1.33 -- -- $1.35 $1.35 $1.34 -- -- At Dec. 31, 2002 $1.37 $1.36 $1.35 $1.01 $1.01 $1.22 $1.21 $1.21 $0.92 $0.92 ------------------------------------------------------------------------------------------------------------------------------ Units (000s) At Dec. 31, 2001 211 24,477 19,803 -- -- 150 10,800 9,584 -- -- At Dec. 31, 2002 205 59,317 44,591 2,887 2,989 282 29,743 23,553 2,075 1,610 ------------------------------------------------------------------------------------------------------------------------------ Net assets (000s) At Dec. 31, 2001 $284 $32,992 $26,464 -- -- $204 $14,608 $12,869 -- -- At Dec. 31, 2002 $280 $80,774 $60,237 $2,915 $3,012 $344 $36,182 $28,429 $1,906 $1,477 ------------------------------------------------------------------------------------------------------------------------------ Investment income ratio(1) For the year ended Dec. 31, 2001 3.55% 3.61% 3.69% -- -- 0.39% 0.38% 0.36% -- -- For the year ended Dec. 31, 2002 2.77% 2.58% 2.59% 1.96% 2.45% 0.32% 0.37% 0.37% 0.25% 0.30% ------------------------------------------------------------------------------------------------------------------------------ Expense ratio(2) For the year ended Dec. 31, 2001 0.55% 0.75% 0.95% -- -- 0.55% 0.75% 0.95% -- -- For the year ended Dec. 31, 2002 0.55% 0.75% 0.95% 1.00% 1.20% 0.55% 0.75% 0.95% 1.00% 1.20% ------------------------------------------------------------------------------------------------------------------------------ Total return(3) For the year ended Dec. 31, 2001 7.14% 7.20% 6.40% -- -- 12.50% 13.45% 12.61% -- -- For the year ended Dec. 31, 2002 1.48% 1.49% 1.50% 1.00% 1.00% (9.63%) (10.37%) (9.70%) (8.00%) (8.00%) ------------------------------------------------------------------------------------------------------------------------------
3MS(7) 2MS(7) 1MS(7) 5MS(4) 4MS(4) 3UE 2UE 1UE 5UE(4) 4UE(4) Accumulation unit value At Dec. 31, 2000 -- -- -- -- -- $0.99 $0.99 $0.99 -- -- At Dec. 31, 2001 $0.97 $0.97 $0.96 -- -- $0.87 $0.86 $0.86 -- -- At Dec. 31, 2002 $0.85 $0.85 $0.84 $0.89 $0.89 $0.67 $0.67 $0.67 $0.80 $0.80 ------------------------------------------------------------------------------------------------------------------------------ Units (000s) At Dec. 31, 2001 -- 942 1,114 -- -- 943 60,343 71,185 -- -- At Dec. 31, 2002 130 10,942 9,151 1,735 1,418 694 71,820 75,489 1,048 1,483 ------------------------------------------------------------------------------------------------------------------------------ Net assets (000s) At Dec. 31, 2001 -- $910 $1,075 -- -- $818 $52,275 $61,361 -- -- At Dec. 31, 2002 $111 $9,246 $7,711 $1,544 $1,260 $468 $48,249 $50,352 $842 $1,190 ------------------------------------------------------------------------------------------------------------------------------ Investment income ratio(1) For the year ended Dec. 31, 2001 -- -- -- -- -- 0.53% 0.50% 0.48% -- -- For the year ended Dec. 31, 2002 0.01% 0.73% 0.80% 0.53% 0.83% 0.43% 0.62% 0.59% 1.60% 1.12% ------------------------------------------------------------------------------------------------------------------------------ Expense ratio(2) For the year ended Dec. 31, 2001 0.55% 0.75% 0.95% -- -- 0.55% 0.75% 0.95% -- -- For the year ended Dec. 31, 2002 0.55% 0.75% 0.95% 1.00% 1.20% 0.55% 0.75% 0.95% 1.00% 1.20% ------------------------------------------------------------------------------------------------------------------------------ Total return(3) For the year ended Dec. 31, 2001 (3.00%) (3.00%) (4.00%) -- -- (12.12%) (13.13%) (13.13%) -- -- For the year ended Dec. 31, 2002 (12.37%) (12.37%) (12.50%) (11.00%) (11.00%) (22.99%) (22.09%) (22.09%) (20.00%) (20.00%) ------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- 132 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
3MC 2MC 1MC 5MC(4) 4MC(4) 3FS(7) 2FS(7) 1FS(7) 5FS(4) 4FS(4) Accumulation unit value At Dec. 31, 2000 $1.24 $1.23 $1.23 -- -- -- -- -- -- -- At Dec. 31, 2001 $1.38 $1.37 $1.37 -- -- $0.97 $0.97 $0.96 -- -- At Dec. 31, 2002 $1.31 $1.30 $1.29 $0.95 $0.95 $0.82 $0.82 $0.82 $0.87 $0.87 ------------------------------------------------------------------------------------------------------------------------------ Units (000s) At Dec. 31, 2001 200 23,748 24,711 -- -- -- 1,081 901 -- -- At Dec. 31, 2002 450 56,079 47,539 2,583 2,777 3 5,572 3,709 526 446 ------------------------------------------------------------------------------------------------------------------------------ Net assets (000s) At Dec. 31, 2001 $276 $32,637 $33,836 -- -- -- $1,044 $869 -- -- At Dec. 31, 2002 $588 $72,845 $61,488 $2,464 $2,644 $3 $4,559 $3,026 $457 $387 ------------------------------------------------------------------------------------------------------------------------------ Investment income ratio(1) For the year ended Dec. 31, 2001 1.73% 1.51% 1.38% -- -- -- -- -- -- -- For the year ended Dec. 31, 2002 1.40% 1.41% 1.31% 2.41% 2.11% 0.88% 0.98% 0.95% 1.73% 1.35% ------------------------------------------------------------------------------------------------------------------------------ Expense ratio(2) For the year ended Dec. 31, 2001 0.55% 0.75% 0.95% -- -- 0.55% 0.75% 0.95% -- -- For the year ended Dec. 31, 2002 0.55% 0.75% 0.95% 1.00% 1.20% 0.55% 0.75% 0.95% 1.00% 1.20% ------------------------------------------------------------------------------------------------------------------------------ Total return(3) For the year ended Dec. 31, 2001 11.29% 11.38% 11.38% -- -- (3.00%) (3.00%) (4.00%) -- -- For the year ended Dec. 31, 2002 (5.07%) (5.11%) (5.84%) (5.00%) (5.00%) (15.46%) (15.46%) (14.58%) (13.00%) (13.00%) ------------------------------------------------------------------------------------------------------------------------------
3TC(7) 2TC(7) 1TC(7) 5TC(4) 4TC(4) 3MG 2MG 1MG 5MG(4) 4MG(4) Accumulation unit value At Dec. 31, 2000 -- -- -- -- -- $0.91 $0.91 $0.90 -- -- At Dec. 31, 2001 $0.91 $0.91 $0.91 -- -- $0.68 $0.68 $0.67 -- -- At Dec. 31, 2002 $0.48 $0.48 $0.48 $0.56 $0.56 $0.49 $0.48 $0.48 $0.76 $0.76 ------------------------------------------------------------------------------------------------------------------------------ Units (000s) At Dec. 31, 2001 -- 490 911 -- -- 913 50,212 51,051 -- -- At Dec. 31, 2002 3 3,769 2,845 192 157 785 69,576 62,663 1,088 712 ------------------------------------------------------------------------------------------------------------------------------ Net assets (000s) At Dec. 31, 2001 -- $445 $828 -- -- $618 $34,000 $34,387 -- -- At Dec. 31, 2002 $1 $1,807 $1,360 $108 $88 $382 $33,834 $30,234 $826 $539 ------------------------------------------------------------------------------------------------------------------------------ Investment income ratio(1) For the year ended Dec. 31, 2001 -- -- -- -- -- 0.06% 0.06% 0.06% -- -- For the year ended Dec. 31, 2002 -- -- -- -- -- -- -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------ Expense ratio(2) For the year ended Dec. 31, 2001 0.55% 0.75% 0.95% -- -- 0.55% 0.75% 0.95% -- -- For the year ended Dec. 31, 2002 0.55% 0.75% 0.95% 1.00% 1.20% 0.55% 0.75% 0.95% 1.00% 1.20% ------------------------------------------------------------------------------------------------------------------------------ Total return(3) For the year ended Dec. 31, 2001 (9.00%) (9.00%) (9.00%) -- -- (25.27%) (25.27%) (25.56%) -- -- For the year ended Dec. 31, 2002 (47.25%) (47.25%) (47.25%) (44.00%) (44.00%) (27.94%) (29.41%) (28.36%) (24.00%) (24.00%) ------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- 133 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
3MD 2MD 1MD 5MD(4) 4MD(4) 3UT(7) 2UT(7) 1UT(7) 5UT(4) 4UT(4) Accumulation unit value At Dec. 31, 2000 $0.96 $0.96 $0.96 -- -- -- -- -- -- -- At Dec. 31, 2001 $0.90 $0.90 $0.90 -- -- $0.89 $0.89 $0.89 -- -- At Dec. 31, 2002 $0.61 $0.61 $0.61 $0.72 $0.72 $0.68 $0.68 $0.68 $0.85 $0.85 ------------------------------------------------------------------------------------------------------------------------------ Units (000s) At Dec. 31, 2001 548 34,072 36,822 -- -- 138 2,997 2,778 -- -- At Dec. 31, 2002 485 59,272 53,383 2,112 1,784 139 10,543 7,093 276 431 ------------------------------------------------------------------------------------------------------------------------------ Net assets (000s) At Dec. 31, 2001 $495 $30,682 $33,044 -- -- $123 $2,672 $2,513 -- -- At Dec. 31, 2002 $297 $36,167 $32,375 $1,527 $1,288 $95 $7,194 $4,853 $235 $366 ------------------------------------------------------------------------------------------------------------------------------ Investment income ratio(1) For the year ended Dec. 31, 2001 -- -- -- -- -- -- -- -- -- -- For the year ended Dec. 31, 2002 -- -- -- -- -- 2.50% 1.85% 2.31% 1.64% 2.06% ------------------------------------------------------------------------------------------------------------------------------ Expense ratio(2) For the year ended Dec. 31, 2001 0.55% 0.75% 0.95% -- -- 0.55% 0.75% 0.95% -- -- For the year ended Dec. 31, 2002 0.55% 0.75% 0.95% 1.00% 1.20% 0.55% 0.75% 0.95% 1.00% 1.20% ------------------------------------------------------------------------------------------------------------------------------ Total return(3) For the year ended Dec. 31, 2001 (6.25%) (6.25%) (6.25%) -- -- (11.00%) (11.00%) (11.00%) -- -- For the year ended Dec. 31, 2002 (32.22%) (32.22%) (32.22%) (28.00%) (28.00%) (23.60%) (23.60%) (23.60%) (15.00%) (15.00%) ------------------------------------------------------------------------------------------------------------------------------
3HS(7) 2HS(7) 1HS(7) 5HS(4) 4HS(4) 3PI(7) 2PI(7) 1PI(7) 5PI(4) 4PI(4) Accumulation unit value At Dec. 31, 2000 -- -- -- -- -- -- -- -- -- -- At Dec. 31, 2001 $0.98 $0.98 $0.98 -- -- $0.96 $0.96 $0.96 -- -- At Dec. 31, 2002 $0.78 $0.78 $0.77 $0.81 $0.80 $0.79 $0.78 $0.78 $0.86 $0.86 ------------------------------------------------------------------------------------------------------------------------------ Units (000s) At Dec. 31, 2001 129 2,137 1,743 -- -- 418 2,460 2,180 -- -- At Dec. 31, 2002 145 11,416 6,574 617 583 881 20,773 15,138 2,086 1,392 ------------------------------------------------------------------------------------------------------------------------------ Net assets (000s) At Dec. 31, 2001 $126 $2,098 $1,710 -- -- $402 $2,363 $2,092 -- -- At Dec. 31, 2002 $113 $8,863 $5,090 $497 $469 $694 $16,304 $11,849 $1,794 $1,195 ------------------------------------------------------------------------------------------------------------------------------ Investment income ratio(1) For the year ended Dec. 31, 2001 -- -- -- -- -- -- -- -- -- -- For the year ended Dec. 31, 2002 -- -- -- -- -- 0.59% 0.40% 0.51% 0.14% 0.31% ------------------------------------------------------------------------------------------------------------------------------ Expense ratio(2) For the year ended Dec. 31, 2001 0.55% 0.75% 0.95% -- -- 0.55% 0.75% 0.95% -- -- For the year ended Dec. 31, 2002 0.55% 0.75% 0.95% 1.00% 1.20% 0.55% 0.75% 0.95% 1.00% 1.20% ------------------------------------------------------------------------------------------------------------------------------ Total return(3) For the year ended Dec. 31, 2001 (2.00%) (2.00%) (2.00%) -- -- (4.00%) (4.00%) (4.00%) -- -- For the year ended Dec. 31, 2002 (20.41%) (20.41%) (21.43%) (19.00%) (20.00%) (17.71%) (18.75%) (18.75%) (14.00%) (14.00%) ------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- 134 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS
3VS 2VS 1VS 5VS(4) 4VS(4) 3SO(7) 2SO(7) 1SO(7) 5SO(4) 4SO(4) Accumulation unit value At Dec. 31, 2000 $1.29 $1.29 $1.29 -- -- -- -- -- -- -- At Dec. 31, 2001 $0.86 $0.85 $0.85 -- -- $0.99 $0.99 $0.99 -- -- At Dec. 31, 2002 $0.59 $0.59 $0.58 $0.73 $0.73 $0.72 $0.72 $0.72 $0.75 $0.75 ------------------------------------------------------------------------------------------------------------------------------ Units (000s) At Dec. 31, 2001 1,092 74,819 87,722 -- -- 136 3,701 3,747 -- -- At Dec. 31, 2002 525 72,033 73,930 267 192 314 25,397 17,130 2,340 1,985 ------------------------------------------------------------------------------------------------------------------------------ Net assets (000s) At Dec. 31, 2001 $935 $63,852 $74,483 -- -- $134 $3,672 $3,712 -- -- At Dec. 31, 2002 $310 $42,343 $43,208 $195 $140 $227 $18,291 $12,297 $1,752 $1,484 ------------------------------------------------------------------------------------------------------------------------------ Investment income ratio(1) For the year ended Dec. 31, 2001 -- -- -- -- -- 0.47% 0.38% 0.34% -- -- For the year ended Dec. 31, 2002 -- -- -- -- -- 0.69% 0.75% 0.67% 0.97% 0.77% ------------------------------------------------------------------------------------------------------------------------------ Expense ratio(2) For the year ended Dec. 31, 2001 0.55% 0.75% 0.95% -- -- 0.55% 0.75% 0.95% -- -- For the year ended Dec. 31, 2002 0.55% 0.75% 0.95% 1.00% 1.20% 0.55% 0.75% 0.95% 1.00% 1.20% ------------------------------------------------------------------------------------------------------------------------------ Total return(3) For the year ended Dec. 31, 2001 (33.33%) (34.11%) (34.11%) -- -- (1.00%) (1.00%) (1.00%) -- -- For the year ended Dec. 31, 2002 (31.40%) (30.59%) (31.76%) (27.00%) (27.00%) (27.27%) (27.27%) (27.27%) (25.00%) (25.00%) ------------------------------------------------------------------------------------------------------------------------------
3IT 2IT 1IT 5IT(4) 4IT(4) 3SP 2SP 1SP 5SP(4) 4SP(4) Accumulation unit value At Dec. 31, 2000 $1.09 $1.08 $1.08 -- -- $1.05 $1.05 $1.05 -- -- At Dec. 31, 2001 $0.85 $0.85 $0.84 -- -- $1.17 $1.16 $1.15 -- -- At Dec. 31, 2002 $0.73 $0.72 $0.72 $0.87 $0.87 $0.96 $0.96 $0.95 $0.85 $0.85 ------------------------------------------------------------------------------------------------------------------------------ Units (000s) At Dec. 31, 2001 769 27,818 30,297 -- -- 820 40,791 46,456 -- -- At Dec. 31, 2002 1,484 43,554 42,309 1,523 1,055 847 78,311 72,853 3,732 3,131 ------------------------------------------------------------------------------------------------------------------------------ Net assets (000s) At Dec. 31, 2001 $654 $23,628 $25,663 -- -- $958 $47,364 $53,763 -- -- At Dec. 31, 2002 $1,082 $31,618 $30,549 $1,327 $917 $819 $75,036 $69,472 $3,172 $2,656 ------------------------------------------------------------------------------------------------------------------------------ Investment income ratio(1) For the year ended Dec. 31, 2001 -- -- -- -- -- 0.07% 0.06% 0.06% -- -- For the year ended Dec. 31, 2002 -- -- -- -- -- -- -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------ Expense ratio(2) For the year ended Dec. 31, 2001 0.55% 0.75% 0.95% -- -- 0.55% 0.75% 0.95% -- -- For the year ended Dec. 31, 2002 0.55% 0.75% 0.95% 1.00% 1.20% 0.55% 0.75% 0.95% 1.00% 1.20% ------------------------------------------------------------------------------------------------------------------------------ Total return(3) For the year ended Dec. 31, 2001 (22.02%) (21.30%) (22.22%) -- -- 11.43% 10.48% 9.52% -- -- For the year ended Dec. 31, 2002 (14.12%) (15.29%) (14.29%) (13.00%) (13.00%) (17.95%) (17.24%) (17.39%) (15.00%) (15.00%) ------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- 135 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS 3IP 2IP 1IP 51P(4) 4IP(4) Accumulation unit value At Dec. 31, 2000 $0.96 $0.96 $0.96 -- -- At Dec. 31, 2001 $0.73 $0.72 $0.72 -- -- At Dec. 31, 2002 $0.65 $0.64 $0.64 $0.92 $0.92 -------------------------------------------------------------------------------- Units (000s) At Dec. 31, 2001 253 15,860 19,727 -- -- At Dec. 31, 2002 636 29,532 28,853 499 566 -------------------------------------------------------------------------------- Net assets (000s) At Dec. 31, 2001 $184 $11,605 $14,292 -- -- At Dec. 31, 2002 $411 $19,063 $18,543 $460 $521 -------------------------------------------------------------------------------- Investment income ratio(1) For the year ended Dec. 31, 2001 0.01% 0.01% 0.01% -- -- For the year ended Dec. 31, 2002 0.54% 0.09% 0.08% 0.12% 0.13% -------------------------------------------------------------------------------- Expense ratio(2) For the year ended Dec. 31, 2001 0.55% 0.75% 0.95% -- -- For the year ended Dec. 31, 2002 0.55% 0.75% 0.95% 1.00% 1.20% -------------------------------------------------------------------------------- Total return(3) For the year ended Dec. 31, 2001 (23.96%) (25.00%) (25.00%) -- -- For the year ended Dec. 31, 2002 (10.96%) (11.11%) (11.11%) (8.00%) (8.00%) -------------------------------------------------------------------------------- (1) These amounts represent the dividends, excluding distributions of capital gains, received by the subaccount from the underlying mutual fund, net of management fees assessed by the fund manager, divided by the average net assets. These ratios exclude variable account expenses that result in direct reductions in the unit values. The recognition of investment income by the subaccount is affected by the timing of the declaration of dividends by the underlying fund in which the subaccounts invest. (2) These ratios represent the annualized contract expenses of the separate account, consisting primarily of mortality and expense charges, for each period indicated. The ratios include only those expenses that result in a direct reduction to unit values. Charges made directly to contract owner accounts through the redemption of units and expenses of the underlying fund are excluded. (3) These amounts represent the total return for the periods indicated, including changes in the value of the underlying fund, and reflect deductions for all items included in the expense ratio. The total return does not include any expenses assessed through the redemption of units; inclusion of these expenses in the calculation would result in a reduction in the total return presented. Investment options with a date notation indicate the effective date of that investment option in the variable account. The total return is calculated for the period indicated or from the effective date through the end of the reporting period. (4) Operations commenced on Feb. 13, 2002. (5) Operations commenced on May 1, 2001. (6) Operations commenced on Aug. 14, 2001. (7) Operations commenced on Aug. 13, 2001. -------------------------------------------------------------------------------- 136 -- IDS LIFE VARIABLE ACCOUNT 10 -- RAVA ADVANTAGE PLUS / RAVA SELECT PLUS IDS Life Insurance Company ------------------------------------------------------------------------------- REPORT OF INDEPENDENT AUDITORS THE BOARD OF DIRECTORS IDS LIFE INSURANCE COMPANY We have audited the accompanying consolidated balance sheets of IDS Life Insurance Company (a wholly-owned subsidiary of American Express Financial Corporation) as of December 31, 2002 and 2001, and the related consolidated statements of income, stockholder's equity and cash flows for each of the three years in the period ended December 31, 2002. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated financial position of IDS Life Insurance Company at December 31, 2002 and 2001, and the consolidated results of its operations and its cash flows for each of the three years in the period ended December 31, 2002, in conformity with accounting principles generally accepted in the United States. ERNST & YOUNG LLP January 27, 2003 Minneapolis, Minnesota IDS Life Insurance Company -------------------------------------------------------------------------------
Consolidated Balance Sheets December 31, (In thousands, except share amounts) 2002 2001 Assets Investments: Available-for-sale: Fixed maturities, at fair value (amortized cost: 2002, $23,209,226; 2001, $20,022,072) $24,052,104 $20,157,137 Common stocks, at fair value (cost: 2002, $19; 2001, $805) 21 1,704 Mortgage loans on real estate 3,417,651 3,680,394 Policy loans 597,144 619,571 Other investments 752,558 621,897 ------- ------- Total investments 28,819,478 25,080,703 Cash and cash equivalents 4,424,061 1,150,251 Amounts recoverable from reinsurers 633,510 529,166 Amounts due from brokers 501 90,794 Other accounts receivable 56,245 46,349 Accrued investment income 296,595 278,199 Deferred policy acquisition costs 3,309,783 3,107,187 Deferred income taxes, net -- 156,308 Other assets 117,788 123,246 Separate account assets 21,980,674 27,333,697 ---------- ---------- Total assets $59,638,635 $57,895,900 =========== =========== Liabilities and stockholder's equity Liabilities: Future policy benefits: Fixed annuities $23,411,314 $19,592,273 Universal life-type insurance 3,515,010 3,433,904 Traditional life insurance 247,441 241,165 Disability income and long-term care insurance 1,466,171 1,227,172 Policy claims and other policyholders' funds 85,400 71,879 Amounts due to brokers 3,342,989 1,740,031 Deferred income taxes, net 182,059 -- Other liabilities 463,326 437,017 Separate account liabilities 21,980,674 27,333,697 ---------- ---------- Total liabilities 54,694,384 54,077,138 ---------- ---------- Commitments and contingencies Stockholder's equity: Capital stock, $30 par value per share; 100,000 shares authorized, issued and outstanding 3,000 3,000 Additional paid-in capital 1,088,327 688,327 Accumulated other comprehensive income, net of tax: Net unrealized securities gains 497,319 83,443 Net unrealized derivative gains (losses) 764 1,332 --- ----- Total accumulated other comprehensive income 498,083 84,775 Retained earnings 3,354,841 3,042,660 --------- --------- Total stockholder's equity 4,944,251 3,818,762 --------- --------- Total liabilities and stockholder's equity $59,638,635 $57,895,900 =========== ===========
See accompanying notes to consolidated financial statements. IDS Life Insurance Company -------------------------------------------------------------------------------
Consolidated Statements of Income Years ended December 31, (In thousands) 2002 2001 2000 Revenues Premiums: Traditional life insurance $ 67,978 $ 59,415 $ 56,187 Disability income and long-term care insurance 273,737 255,428 231,311 ------- ------- ------- Total premiums 341,715 314,843 287,498 Net investment income 1,561,856 1,485,688 1,730,605 Policyholder and contractholder charges 522,777 489,583 438,127 Management and other fees 404,787 473,406 598,168 Net realized loss on investments (4,507) (649,752) (16,975) ------ -------- ------- Total revenues 2,826,628 2,113,768 3,037,423 --------- --------- --------- Benefits and expenses Death and other benefits: Traditional life insurance 36,881 35,519 29,042 Universal life-type insurance and investment contracts 221,544 175,247 131,467 Disability income and long-term care insurance 52,962 44,725 40,246 Increase in liabilities for future policy benefits: Traditional life insurance 2,768 7,231 5,765 Disability income and long-term care insurance 134,605 123,227 113,239 Interest credited on universal life-type insurance and investment contracts 1,157,636 1,137,636 1,169,641 Amortization of deferred policy acquisition costs 312,402 371,342 362,106 Other insurance and operating expenses 437,823 407,798 378,653 ------- ------- ------- Total benefits and expenses 2,356,621 2,302,725 2,230,159 --------- --------- --------- Income (loss) before income tax expense (benefit) and cumulative effect of accounting change 470,007 (188,957) 807,264 Income tax expense (benefit) 87,826 (145,222) 221,627 ------ -------- ------- Income (loss) before cumulative effect of accounting change 382,181 (43,735) 585,637 Cumulative effect of accounting change (net of income tax benefit of $11,532) -- (21,416) -- ---------- ---------- ---------- Net income (loss) $ 382,181 $ (65,151) $ 585,637 ========== ========== ==========
See accompanying notes to consolidated financial statements. IDS Life Insurance Company -------------------------------------------------------------------------------
Consolidated Statements of Stockholder's Equity Accumulated other Additional comprehensive Total Capital paid-in income (loss), Retained stockholder's For the three years ended December 31, 2002 (In thousands) stock capital net of tax earnings equity Balance, January 1, 2000 $3,000 $ 288,327 $(411,230) $2,932,174 $2,812,271 Comprehensive income: Net income -- -- -- 585,637 585,637 Net unrealized holding gains on available-for-sale securities arising during the year, net of deferred policy acquisition costs of ($5,154) and income tax expense of ($46,921) -- -- 87,138 -- 87,138 Reclassification adjustment for gains included in net income, net of income tax expense of $5,192 -- -- (9,642) -- (9,642) ------ ----------- --------- ---------- ---------- Other comprehensive income -- -- 77,496 -- 77,496 ------ ----------- --------- ---------- ---------- Comprehensive income -- -- -- -- 663,133 Cash dividends -- -- -- (410,000) (410,000) ------ ----------- --------- ---------- ---------- Balance, December 31, 2000 3,000 288,327 (333,734) 3,107,811 3,065,404 Comprehensive income: Net loss -- -- -- (65,151) (65,151) Cumulative effect of adopting SFAS No. 133, net of income tax benefit of $626 -- -- (1,162) -- (1,162) Net unrealized holding losses on available-for-sale securities arising during the year, net of deferred policy acquisition costs of ($20,191) and income tax benefit of $6,064 -- -- (11,262) -- (11,262) Reclassification adjustment for losses on available-for-sale securities included in net loss, net of income tax benefit of $228,003 -- -- 423,434 -- 423,434 Reclassification adjustment for losses on derivatives included in net loss, net of income tax benefit of $4,038 -- -- 7,499 -- 7,499 ------ ----------- --------- ---------- ---------- Other comprehensive income -- -- 418,509 -- 418,509 ------ ----------- --------- ---------- ---------- Comprehensive income -- -- -- -- 353,358 Capital contribution -- 400,000 -- -- 400,000 ------ ----------- --------- ---------- ---------- Balance, December 31, 2001 3,000 688,327 84,775 3,042,660 3,818,762 Comprehensive income: Net income -- -- -- 382,181 382,181 Net unrealized holding gains on available-for-sale securities arising during the year, net of deferred policy acquisition costs of ($75,351) and income tax expense of ($228,502) -- -- 424,360 -- 424,360 Reclassification adjustment for gains on available-for-sale securities included in net income, net of income tax expense of $5,645 -- -- (10,484) -- (10,484) Reclassification adjustment for gains on derivatives included in net income, net of income tax expense of $305 -- -- (568) -- (568) ------ ----------- --------- ---------- ---------- Other comprehensive income -- -- 413,308 -- 413,308 ------ ----------- --------- ---------- ---------- Comprehensive income -- -- -- -- 795,489 Cash dividends -- -- -- (70,000) (70,000) Capital contribution -- 400,000 -- -- 400,000 ------ ----------- --------- ---------- ---------- Balance, December 31, 2002 $3,000 $1,088,327 $ 498,083 $3,354,841 $4,944,251 ====== ========== ========= ========== ==========
See accompanying notes to consolidated financial statements. IDS Life Insurance Company -------------------------------------------------------------------------------
Consolidated Statements of Cash Flows Years ended December 31, (In thousands) 2002 2001 2000 Cash flows from operating activities Net income (loss) $ 382,181 $ (65,151) $ 585,637 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Cumulative effect of accounting change, net of tax -- 21,416 -- Policy loans, excluding universal life-type insurance: Issuance (35,345) (43,687) (61,313) Repayment 49,256 54,004 56,088 Change in amounts recoverable from reinsurers (104,344) (112,686) (89,312) Change in other accounts receivable (9,896) (4,025) 6,254 Change in accrued investment income (5,139) 56,729 8,521 Change in deferred policy acquisition costs, net (277,947) (175,723) (291,634) Change in liabilities for future policy benefits for traditional life, disability income and long-term care insurance 245,275 223,177 206,377 Change in policy claims and other policyholder's funds 13,521 19,812 27,467 Deferred income tax provision (benefit) 116,995 (246,205) 37,704 Change in other liabilities 26,309 (24,509) (120,256) Amortization of premium, net 65,869 108,958 37,909 Net realized loss on investments 4,507 649,752 16,975 Policyholder and contractholder charges, non-cash (232,725) (217,496) (151,745) Other, net 13,820 (83,023) (9,279) ------- ------- ------- Net cash provided by operating activities 252,337 161,343 259,393 ------- ------- ------- Cash flows from investing activities Held-to-maturity securities: Purchases -- -- (4,487) Maturities, sinking fund payments and calls -- -- 589,742 Sales -- -- 50,067 Available-for-sale securities: Purchases (16,287,891) (9,477,740) (1,454,010) Maturities, sinking fund payments and calls 3,078,509 2,706,147 1,019,403 Sales 10,093,228 5,493,141 1,237,116 Other investments, excluding policy loans: Purchases (543,843) (442,876) (706,082) Sales 509,588 370,636 435,633 Change in amounts due from brokers 90,293 (75,492) (15,157) Change in amounts due to brokers 1,602,958 1,293,684 298,236 --------- --------- ------- Net cash (used in) provided by investing activities (1,457,158) (132,500) 1,450,461 ---------- -------- --------- Cash flows from financing activities Activities related to universal life-type insurance and investment contracts: Considerations received 4,638,111 2,088,114 1,842,026 Surrenders and other benefits (1,655,631) (2,810,401) (3,974,966) Interest credited to account balances 1,157,636 1,137,636 1,169,641 Universal life-type insurance policy loans: Issuance (80,831) (83,720) (134,107) Repayment 89,346 72,805 82,193 Capital contribution 400,000 400,000 -- Dividends paid (70,000) -- (410,000) --------- ------- ---------- Net cash provided by (used in) financing activities 4,478,631 804,434 (1,425,213) --------- ------- ---------- Net increase in cash and cash equivalents 3,273,810 833,277 284,641 Cash and cash equivalents at beginning of year 1,150,251 316,974 32,333 --------- ------- ---------- Cash and cash equivalents at end of year $ 4,424,061 $ 1,150,251 $ 316,974 ============ =========== =========== Supplemental disclosures: Income taxes paid $ -- $ -- $ 225,704 Interest on borrowings 7,906 23,688 3,299 --------- ------- ----------
See accompanying notes to consolidated financial statements. IDS Life Insurance Company ------------------------------------------------------------------------------- Notes to Consolidated Financial Statements (In thousands) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of business IDS Life Insurance Company (the Company) is a stock life insurance company organized under the laws of the State of Minnesota whose products are primarily distributed through branded financial advisors. The Company is a wholly-owned subsidiary of American Express Financial Corporation (AEFC), which is a wholly-owned subsidiary of American Express Company. The Company serves residents of all states except New York. IDS Life Insurance Company of New York is a wholly-owned subsidiary of the Company and serves New York State residents. The Company also wholly-owns American Enterprise Life Insurance Company, which issues fixed and variable annuity contracts for sale through insurance agencies and broker-dealers who may also be associated with financial institutions, such as banks. American Centurion Life Assurance Company is a wholly-owned subsidiary that offers fixed and variable annuities to American Express(R) Cardmembers and others in New York and through insurance agencies and broker-dealers who may also be associated with financial institutions, such as banks, in New York. American Partners Life Insurance Company is a wholly-owned subsidiary that offers fixed and variable annuities to American Express(R) Cardmembers and others who reside in states other than New York. The Company also wholly-owns IDS REO 1, LLC and American Express Corporation. These subsidiaries hold real estate, mortgage loans on real estate and/or affordable housing investments. The Company's principal products are deferred annuities and universal life insurance which are issued primarily to individuals. It offers single premium and flexible premium deferred annuities on both a fixed and variable dollar basis. Immediate annuities are offered as well. The Company's fixed deferred annuities guarantee a relatively low annual interest rate during the accumulation period (the time before annuity payments begin). However, the Company has the option of paying a higher rate set at its discretion. In addition, persons owning one type of annuity may have their interest calculated based on any increase in a broad-based stock market index. The Company also offers variable annuities, including the American Express Retirement Advisor Advantage(R) Variable Annuity and the American Express Retirement Advisor Select(R) Variable Annuity. Life insurance products currently offered by the Company include universal life (fixed and variable, single life and joint life), single premium life and term products. Waiver of premium and accidental death benefit riders are generally available with these life insurance products. The Company also markets disability income insurance. Although the Company discontinued marketing proprietary long-term care insurance at the end of 2002, long-term care insurance is available through a non-proprietary product distributed by an affiliate. Under the Company's variable life insurance and variable annuity products described above, the purchaser may choose among investment options that include the Company's "general account" as well as from a variety of portfolios including common stocks, bonds, managed assets and/or short- term securities. Basis of presentation The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States which vary in certain respects from reporting practices prescribed or permitted by state insurance regulatory authorities (see Note 4). Certain prior year amounts have been reclassified to conform to the current year's presentation. The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Revenue recognition Profits on fixed deferred annuities are the excess of contractholder charges and investment income earned from investment of contract considerations over interest credited to contract values, amortization of deferred acquisition costs, and other expenses. Profits on variable deferred annuities also include the excess of management and other fees over the costs of guaranteed benefits provided. Policyholder and contractholder charges include policy fees and surrender charges. Management and other fees include investment management fees from underlying proprietary mutual funds, certain fee revenues from underlying nonproprietary mutual funds and mortality and expense risk fees from the variable annuity separate accounts. IDS Life Insurance Company ------------------------------------------------------------------------------- Profits on fixed universal life insurance are the excess of contractholder charges and investment income earned from investment of contract considerations over interest credited to contract values, death and other benefits paid in excess of contract values, amortization of deferred acquisition costs, and other expenses. Profits on variable universal life insurance also include management and other fees. Policyholder and contractholder charges include the monthly cost of insurance charges, issue and administrative fees and surrender charges. These charges also include the minimum death benefit guarantee fees received from the variable life insurance separate accounts. Management and other fees include investment management fees from underlying proprietary mutual funds, certain fee revenues from underlying nonproprietary mutual funds and mortality and expense risk fees from the variable life insurance separate accounts. Premiums on traditional life, disability income and long-term care insurance policies are recognized as revenue when due, and related benefits and expenses are associated with premium revenue in a manner that results in recognition of profits over the lives of the insurance policies. This association is accomplished by means of the provision for future policy benefits and the deferral and subsequent amortization of policy acquisition costs. Investments -- Fixed maturity and equity securities All fixed maturity securities and marketable equity securities are classified as available-for-sale and carried at fair value. Unrealized gains and losses on securities classified as available-for-sale are carried as a separate component of accumulated other comprehensive income (loss), net of the related deferred policy acquisition costs and income taxes. Gains and losses are recognized in the results of operations upon disposition of the securities using the specific identification method. In addition, losses are also recognized when management determines that a decline in a security's fair value is other-than-temporary, which requires judgment regarding the amount and timing of recovery. Indicators of other-than-temporary impairment for fixed maturity securities include, but are not limited to, issuer downgrade, default, or bankruptcy. The Company also considers the extent to which cost exceeds fair value, the duration of time of that decline, and management's judgment about the issuer's current and prospective financial condition. The charges are reflected in net realized loss on investments within the Consolidated Statements of Income. Fair value of fixed maturity and equity securities is generally based on quoted market prices. However, the Company's investment portfolio also contains structured investments of various asset quality, including collateralized debt obligations (CDOs) and secured loan trusts (backed by high-yield bonds and bank loans), which are not readily marketable. As a result, the carrying values of these structured investments are based on estimated cash flow projections which require a significant degree of management judgment as to default and recovery rates of the underlying investments and, as such, are subject to change. The Company's CDO investments are accounted for in accordance with Emerging Issues Task Force (EITF) Issue 99-20 "Recognition of Interest Income and Impairment on Purchased and Retained Beneficial Interests in Securitized Financial Assets." The Company's secured loan trusts are accounted for in accordance with EITF Issue 96-12 "Recognition of Interest Income and Balance Sheet Classification of Structured Notes." Net investment income, which primarily consists of interest earned on fixed maturity securities, is generally accrued as earned using the effective interest method, which makes an adjustment of the yield for security premiums, discounts and anticipated prepayments on mortgage-backed securities. Prepayment estimates are based on information received from brokers who deal in mortgage-backed securities. Investments -- Mortgage loans on real estate Mortgage loans on real estate reflect principal amounts outstanding less reserves for losses. The estimated fair value of the mortgage loans is determined by discounted cash flow analyses using mortgage interest rates currently offered for mortgages of similar maturities. The reserve for losses is measured as the excess of the loan's recorded investment over its present value of expected principal and interest payments discounted at the loan's effective interest rate or the fair value of collateral. Additionally, the level of the reserve for losses considers other factors, including historical experience and current economic and political conditions. Management regularly evaluates the adequacy of the reserve for mortgage loan losses and believes it is adequate to absorb estimated losses in the portfolio. The Company generally stops accruing interest on mortgage loans for which interest payments are delinquent more than three months. Based on management's judgment as to the ultimate collectibility of principal, interest payments received are either recognized as income or applied to the recorded investment in the loan. Investments -- Policy loans Policy loans are carried at the aggregate of the unpaid loan balances, which do not exceed the cash surrender values of the related policies. IDS Life Insurance Company ------------------------------------------------------------------------------- Investments -- Other investments Included in Other investments are affordable housing investments, trading securities, syndicated loans and real estate. Affordable housing investments are carried at amortized cost as the Company has no influence over the operating or financial policies of the general partner. Trading securities are held at fair market value with changes in value recognized in the Consolidated Statements of Income within Net investment income. Syndicated loans reflect principal amounts outstanding less reserves for losses and real estate is carried at its estimated fair value. Cash and cash equivalents The Company considers investments with a maturity at the date of their acquisition of three months or less to be cash equivalents. These securities are carried principally at amortized cost, which approximates fair value. Deferred policy acquisition costs The costs of acquiring new business, including for example, direct sales commissions, related sales incentive bonuses and awards, underwriting costs, policy issue costs and other related costs, have been deferred on the sale of insurance and annuity contracts. The deferred acquisition costs (DAC) for universal life and variable universal life insurance and certain installment annuities are amortized as a percentage of the estimated gross profits expected to be realized on the policies. DAC for other annuities are amortized using the interest method. For traditional life, disability income and long-term care insurance policies, the costs are amortized in proportion to premium revenue. Amortization of DAC requires the use of certain assumptions including interest margins, mortality rates, persistency rates, maintenance expense levels and customer asset value growth rates for variable products. The customer asset value growth rate is the rate at which contract values are assumed to appreciate in the future. This rate is net of asset fees, and anticipates a blend of equity and fixed income investments. Management routinely monitors a wide variety of trends in the business, including comparisons of actual and assumed experience. Management reviews and, where appropriate, adjusts its assumptions with respect to customer asset value growth rates on a quarterly basis. Management monitors other principal DAC assumptions, such as persistency rates, mortality rate, interest margin and maintenance expense level assumptions each quarter. Unless management identifies a material deviation over the course of the quarterly monitoring, management reviews and updates these DAC assumptions annually in the third quarter of each year. When assumptions are changed, the percentage of estimated gross profits or portion of interest margins used to amortize DAC may also change. A change in the required amortization percentage is applied retrospectively; an increase in amortization percentage will result in an acceleration of DAC amortization while a decrease in amortization percentage will result in a deceleration of DAC amortization. The impact on results of operations of changing assumptions with respect to the amortization of DAC can be either positive or negative in any particular period, and is reflected in the period that such changes are made. These adjustments are collectively referred to as unlocking adjustments. Unlocking adjustments resulted in net increases in amortization of $40,000 in 2002 and $33,600 in 2001, with a net decrease in amortization of $12,300 in 2000. Guaranteed minimum death benefits The majority of the variable annuity contracts offered by the Company contain guaranteed minimum death benefit (GMDB) provisions. At time of issue, these contracts typically guarantee that the death benefit payable will not be less than the amount invested, regardless of the performance of the customer's account. Most contracts also provide for some type of periodic adjustment of the guaranteed amount based on the change in value of the contract. A large portion of the Company's contracts containing a GMDB provision adjust once every six years. The periodic adjustment of these contracts can either increase or decrease the guaranteed amount, though not below the amount invested, adjusted for withdrawals. When market values of the customer's accounts decline, the death benefit payable on a contract with a GMDB may exceed the accumulated contract value. Currently, the amount paid in excess of contract value is expensed when payable. Amounts expensed in 2002, 2001 and 2000 were $37,361, $16,202 and $835, respectively. Liabilities for future policy benefits Liabilities for fixed and variable universal life insurance and fixed and variable deferred annuities are accumulation values. Liabilities for equity indexed deferred annuities issued before 1999 are equal to the present value of guaranteed benefits and the intrinsic value of index-based benefits. Liabilities for equity indexed deferred annuities issued in 1999 or later are equal to the accumulation of host contract values covering guaranteed benefits and the market value of embedded equity options. Liabilities for fixed annuities in a benefit status are based on established industry mortality tables and interest rates ranging from 5% to 9.5%, depending on year of issue, with an average rate of approximately 6.5%. IDS Life Insurance Company ------------------------------------------------------------------------------- Liabilities for future benefits on traditional life insurance, principally term and whole life insurance, are based on the net level premium method, using anticipated mortality, policy persistency and interest earning rates. Anticipated mortality rates are based on established industry mortality tables, with modifications based on Company experience. Anticipated policy persistency rates vary by policy form, issue age and policy duration with persistency on level term and cash value plans generally anticipated to be better than persistency on yearly renewable term insurance plans. Anticipated interest rates range from 4% to 10%, depending on policy form, issue year and policy duration. Liabilities for future disability income and long-term care policy benefits include both policy reserves and claim reserves. Policy reserves are based on the net level premium method, using anticipated morbidity, mortality, policy persistency and interest earning rates. Anticipated morbidity and mortality rates are based on established industry morbidity and mortality tables. Anticipated policy persistency rates vary by policy form, issue age, policy duration and, for disability income policies, occupation class. Anticipated interest rates for disability income and long-term care policy reserves are 3% to 9.5% at policy issue and grade to ultimate rates of 5% to 7% over 5 to 10 years. Claim reserves are calculated based on claim continuance tables and anticipated interest earnings. Anticipated claim continuance rates are based on established industry tables. Anticipated interest rates for claim reserves for both disability income and long-term care range from 5% to 8%. Liabilities for reported and unpaid life insurance claims are equal to the death benefits payable. For disability income and long-term care claims, unpaid claims liabilities are equal to benefit amounts due and accrued. Liabilities for incurred but not reported claims are estimated based on periodic analysis of the actual reported claim lag. Where applicable, amounts recoverable from reinsurers are separately recorded as receivables. For life insurance, no claim adjustment expense reserve is held. The claim adjustment expense reserves for disability income and long-term care are based on the claim reserves. The Company does not issue participating insurance contracts and has no short-duration life insurance liabilities. Reinsurance Reinsurance premiums and benefits paid or provided are accounted for on a basis consistent with that used in accounting for original policies issued and with the terms of the reinsurance contracts. The maximum amount of life insurance risk retained by the Company is $750 on any policy insuring a single life and $1,500 on any policy insuring a joint-life combination. The Company generally retains 10% of the mortality risk on new life insurance policies. Risk not retained is reinsured with other life insurance companies. Risk on universal life and variable universal life policies is reinsured on a yearly renewable term basis. Risk on term insurance and long-term care policies is reinsured on a coinsurance basis. The Company retains all accidental death benefit, disability income and waiver of premium risk. Federal income taxes The Company's taxable income is included in the consolidated federal income tax return of American Express Company. The Company provides for income taxes on a separate return basis, except that, under an agreement between AEFC and American Express Company, tax benefit is recognized for losses to the extent they can be used on the consolidated tax return. It is the policy of AEFC and its subsidiaries that AEFC will reimburse subsidiaries for all tax benefits. Separate account business The separate account assets and liabilities represent funds held for the exclusive benefit of the variable annuity and variable life insurance contract owners. The Company receives investment management fees from the proprietary mutual funds used as investment options for variable annuities and variable life insurance. The Company receives mortality and expense risk fees from the separate accounts. The Company makes contractual mortality assurances to the variable annuity contract owners that the net assets of the separate accounts will not be affected by future variations in the actual life expectancy experience of the annuitants and beneficiaries from the mortality assumptions implicit in the annuity contracts. The Company makes periodic fund transfers to, or withdrawals from, the separate account assets for such actuarial adjustments for variable annuities that are in the benefit payment period. The Company also guarantees that the rates at which administrative fees are deducted from contract funds will not exceed contractual maximums. For variable life insurance, the Company guarantees that the rates at which insurance charges and administrative fees are deducted from contract funds will not exceed contractual maximums. The Company also guarantees that the death benefit will continue to be payable at the initial level regardless of investment performance so long as minimum premium payments are made. IDS Life Insurance Company ------------------------------------------------------------------------------- Accounting developments In July 2000, the Financial Accounting Standards Board's (FASB's) Emerging Issues Task Force (EITF) issued a consensus on Issue 99-20, "Recognition of Interest Income and Impairment on Purchased and Retained Beneficial Interests in Securitized Financial Assets." The Company adopted the consensus as of January 1, 2001. Issue 99-20 prescribes procedures for recording interest income and measuring impairment on retained and purchased beneficial interests. The consensus primarily affects the Company's CDO investments. Adoption of the consensus required the Company to adjust the carrying amount of these investments downward by $21,416, net of tax, which is reflected as a cumulative effect of accounting change in the Consolidated Statement of Income. Effective January 1, 2001, the Company adopted Statement of Financial Accounting Standards No. 133, "Accounting for Derivative Instruments and Hedging Activities," as amended (SFAS No. 133), which requires an entity to recognize all derivatives as either assets or liabilities on the balance sheet and measure those instruments at fair value. Changes in the fair value of a derivative are recorded in earnings or directly to other comprehensive income, depending on the instrument's designated use. The adoption of SFAS No. 133 resulted in a cumulative after-tax reduction to other comprehensive income of $1,162. The cumulative impact to earnings was not significant. See Note 8 for further discussion of the Company's derivative and hedging activities. SFAS No. 133 also provided a one-time opportunity to reclassify held-to-maturity security investments to available-for-sale without tainting the remaining securities in the held-to-maturity portfolio. The Company elected to take the opportunity in 2001 to reclass all its held-to-maturity investments to available-for-sale. The Company adopted SFAS No. 140, "Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities," which superseded SFAS No. 125. The Statement was effective for transfers and servicing of financial assets and extinguishments of liabilities occurring after March 31, 2001. The Statement was effective for recognition and reclassification of collateral and for disclosures relating to securitization transactions and collateral for fiscal years ending after December 15, 2000. The impact on the Company's financial position or results of operations of adopting the Statement was not significant. In January 2003, the FASB issued Interpretation No. 46, "Consolidation of Variable Interest Entities" (FIN 46), which addresses consolidation by business enterprises of variable interest entities (VIEs). The accounting provisions and expanded disclosure requirements for VIEs existing at December 31, 2002, are fully effective for reporting periods beginning after June 15, 2003. An entity shall be subject to consolidation according to the provisions of FIN 46, if, by design, either (i) the total equity investment at risk is not sufficient to permit the entity to finance its activities without additional subordinated financial support from other parties, or (ii) as a group, the holders of the equity investment at risk lack: (a) direct or indirect ability to make decisions about an entity's activities; (b) the obligation to absorb the expected losses of the entity if they occur; or (c) the right to receive the expected residual return of the entity if they occur. In general, FIN 46 will require a VIE to be consolidated when an enterprise has a variable interest that will absorb a majority of the VIE's expected losses or receive a majority of the VIE's expected residual return. It is likely that the Company will consolidate or disclose information about VIEs when FIN 46 becomes effective in the third quarter of 2003. The entities primarily impacted by FIN 46 relate to structured investments, including CDOs and secured loan trusts (SLTs), which are owned by the Company. The application of FIN 46 for CDOs and SLTs will have no effect on the cash flows of the Company. The CDO entities contain debt issued to investors, which are non-recourse to the Company and are solely supported by portfolios of high-yield bonds and loans. The Company often invests in the residual and rated debt tranches of the CDO structures that are either managed by a related party or a third-party. With regards to those CDOs in which the Company owns a residual tranche and which a related party manages, the portfolios of high-yield bonds and loans have a fair value at December 31, 2002 of approximately $2.0 billion for the benefit of the $2.7 billion in CDO debt investors. Substantially all of the Company's interest in the rated debt tranches along with rated tranches owned by AEFC were placed in a securitization trust described in Note 2. The SLTs provide returns to investors primarily based on the performance of an underlying portfolio of up to $3.3 billion in high-yield loans. Currently, the underlying portfolio consists of $2.9 billion in high-yield loans with a market value of $2.6 billion, which are managed by a related party. While the potential consolidation of these entities may impact the results of operations at adoption and for each reporting period thereafter, the Company's maximum exposure to economic loss as a result of its investment in these entities is represented by the carrying values at December 31, 2002 because any further reduction in the value of the assets will be absorbed by the non-recourse debt or other unrelated entities. The CDO residual tranches have an adjusted cost basis of $13,363 and the SLTs have an adjusted cost basis of $656,565. The Company continues to evaluate other relationships and interests in entities that may be considered VIEs, including affordable housing investments. The impact of adopting FIN 46 on the Consolidated Financial Statements is still being reviewed. IDS Life Insurance Company ------------------------------------------------------------------------------- 2. INVESTMENTS Fixed maturity and equity securities
The following is a summary of securities available-for-sale at December 31, 2002: Gross Gross Amortized unrealized unrealized Fair cost gains losses value Fixed maturities: U.S. Government agency obligations $ 84,075 $ 12,015 $ 687 $ 95,403 State and municipal obligations 29,202 2,522 -- 31,724 Corporate bonds and obligations 9,614,296 611,060 116,345 10,109,011 Mortgage and other asset-backed securities 12,145,797 393,342 10,067 12,529,072 Structured investments 1,306,245 2,112 59,101 1,249,256 Foreign government bonds and obligations 29,611 8,027 -- 37,638 ----------- ---------- -------- ----------- Total fixed maturity securities $23,209,226 $1,029,078 $186,200 $24,052,104 =========== ========== ======== =========== Common stocks $ 19 $ 2 $ -- $ 21 =========== ========== ======== ===========
The amortized cost and fair value of fixed maturity securities at December 31, 2002 by contractual maturity are as follows: Amortized Fair cost value Due within one year $ 768,066 $ 779,833 Due from one to five years 2,740,513 2,887,899 Due from five to ten years 5,865,084 6,165,165 Due in more than ten years 1,689,766 1,690,135 Mortgage and other asset-backed securities 12,145,797 12,529,072 ---------- ---------- Total $23,209,226 $24,052,104 =========== =========== The timing of actual receipts may differ from contractual maturities because issuers may have the right to call or prepay obligations.
The following is a summary of securities available-for-sale at December 31, 2001: Gross Gross Amortized unrealized unrealized Fair cost gains losses value Fixed maturities: U.S. Government agency obligations $ 31,074 $ 2,190 $ 56 $ 33,208 State and municipal obligations 7,826 149 -- 7,975 Corporate bonds and obligations 10,281,693 272,539 113,061 10,441,171 Mortgage and other asset-backed securities 8,292,576 103,109 32,801 8,362,884 Structured investments 1,377,195 3,793 105,304 1,275,684 Foreign government bonds and obligations 31,708 4,507 -- 36,215 ----------- -------- -------- ----------- Total fixed maturity securities $20,022,072 $386,287 $251,222 $20,157,137 ----------- -------- -------- ----------- Common stocks $ 805 $ 899 $ -- $ 1,704 =========== ======== ========= ===========
Pursuant to the adoption of SFAS No. 133 the Company reclassified all held-to-maturity securities with a carrying value of $6,463,613 and net unrealized gains of $8,185 to available-for-sale as of January 1, 2001. At December 31, 2002 and 2001, bonds carried at $14,523 and $14,639, respectively, were on deposit with various states as required by law. IDS Life Insurance Company ------------------------------------------------------------------------------- At December 31, 2002, fixed maturity securities comprised approximately 84 percent of the Company's total investments. These securities are rated by Moody's and Standard & Poor's (S&P), except for approximately $1.4 billion of securities which are rated by AEFC's internal analysts using criteria similar to Moody's and S&P. Ratings are presented using S&P's convention and if the two agencies' ratings differ, the lower rating is used. A summary of fixed maturity securities, at fair value, by rating on December 31, is as follows: Rating 2002 2001 AAA 53% 45% AA 1 1 A 14 15 BBB 25 34 Below investment grade 7 5 --- --- Total 100% 100% === === At December 31, 2002, approximately 93% of the securities rated AAA are GNMA, FNMA and FHLMC mortgage-backed securities. No holdings of any other issuer were greater than ten percent of stockholder's equity. Available-for-sale securities were sold during 2002 with proceeds of $10,093,228 and gross realized gains and losses of $297,477 and $135,824, respectively. Available-for-sale securities were sold during 2001 with proceeds of $5,493,141 and gross realized gains and losses of $116,565 and $390,732, respectively. Available-for-sale securities were sold during 2000 with proceeds of $1,237,116 and gross realized gains and losses of $25,101 and $21,147, respectively. During the years ended December 31, 2002, 2001, and 2000, the Company also recognized losses of $145,524, $348,730, and $38,816 respectively due to other-than-temporary impairments on structured investments and corporate debt securities. These amounts are reflected in the net realized loss on investments in the Consolidated Statements of Income. The 2001 realized losses and other-than temporary impairments include the effect of the write-downs and sale of high-yield securities discussed below. The net unrealized gain on available-for-sale securities as of December 31, 2002 and 2001, was $842,880 and $135,964, respectively, with the $706,916 change, net of taxes and deferred policy acquisition costs, reflected as a separate component in accumulated other comprehensive income for the year ended December 31, 2002. For the years ended December 31, 2001 and 2000 the change in net unrealized losses on available-for-sale securities was a decrease of $667,340 and $122,196, respectively. During 2001, the Company recorded pretax losses of $828,175 to recognize the impact of higher default rate assumptions on certain structured investments; to write down lower rated securities (most of which were sold during 2001) in connection with Company's decision to lower its risk profile by reducing the level of its high-yield portfolio, allocating holdings toward stronger credits, and reducing the concentration of exposure to individual companies and industry sectors; to write down certain other investments; and, to adopt EITF Issue 99-20, as previously discussed. Within the Consolidated Statements of Income, $623,958 of these losses are included in Net realized losses on investments and $171,269 are included in Net investment income, with the remaining losses recorded as a cumulative effect of accounting change. During 2001, the Company placed a majority of its rated CDO securities and related accrued interest, (collectively referred to as transferred assets), having an aggregate book value of $675,347, into a securitization trust. In return, the Company received $89,535 in cash relating to sales to unaffiliated investors and retained interests with allocated book amounts aggregating $585,812. As of December 31, 2002, the retained interests had a carrying value of approximately $562,000, of which approximately $388,000 is considered investment grade. The book amount is determined by allocating the previous carrying value of the transferred assets between assets sold and the retained interests based on their relative fair values. Fair values are based on the estimated present value of future cash flows. The retained interests are accounted for in accordance with EITF Issue 99-20. Fair values of fixed maturity and equity securities represent quoted market prices and estimated values when quoted prices are not available. Estimated values are determined by established procedures involving, among other things, review of market indices, price levels of current offerings of comparable issues, price estimates, estimated future cash flows and market data from independent brokers. IDS Life Insurance Company ------------------------------------------------------------------------------- Mortgage loans on real estate At December 31, 2002, approximately 12% of the Company's investments were mortgage loans on real estate. Concentration of credit risk by region of the United States and by type of real estate are as follows:
December 31, 2002 December 31, 2001 On balance Funding On balance Funding Region sheet commitments sheet commitments East North Central $ 611,886 $ -- $ 670,387 $ 1,873 West North Central 493,310 25,500 549,015 -- South Atlantic 765,443 2,800 815,837 9,490 Middle Atlantic 318,699 19,100 352,821 9,363 New England 227,150 5,800 274,486 8,700 Pacific 355,622 5,250 355,945 14,618 West South Central 210,435 1,000 214,000 600 East South Central 63,859 -- 55,798 -- Mountain 406,459 -- 413,053 27 ---------- ------- ---------- ------- 3,452,863 59,450 3,701,342 44,671 Less reserves for losses 35,212 -- 20,948 -- ---------- ------- ---------- ------- Total $3,417,651 $59,450 $3,680,394 $44,671 ========== ======= ========== ======= December 31, 2002 December 31, 2001 On balance Funding On balance Funding Property type sheet commitments sheet commitments Department/retail stores $ 991,984 $20,722 $1,117,195 $13,200 Apartments 622,185 -- 694,214 11,531 Office buildings 1,178,434 25,628 1,203,090 7,650 Industrial buildings 344,604 13,100 333,713 2,263 Hotels/motels 102,184 -- 108,019 -- Medical buildings 95,189 -- 106,927 6,000 Nursing/retirement homes 35,873 -- 39,590 -- Mixed use 54,512 -- 86,972 27 Other 27,898 -- 11,622 4,000 ---------- ------- ---------- ------- 3,452,863 59,450 3,701,342 44,671 Less reserves for losses 35,212 -- 20,948 -- ---------- ------- ---------- ------- Total $3,417,651 $59,450 $3,680,394 $44,671 ========== ======= ========== =======
Mortgage loan fundings are restricted by state insurance regulatory authorities to 80 percent or less of the market value of the real estate at the time of origination of the loan. The Company holds the mortgage document, which gives it the right to take possession of the property if the borrower fails to perform according to the terms of the agreement. Commitments to fund mortgages are made in the ordinary course of business. The fair value of the mortgage commitments is $nil. At December 31, 2002, 2001 and 2000, the Company's investment in impaired loans was $33,130, $39,601 and $24,999, respectively, with related reserves of $9,100, $7,225 and $4,350, respectively. During 2002, 2001 and 2000, the average recorded investment in impaired loans was $36,583, $24,498 and $27,063, respectively. The Company recognized $1,090, $1,285 and $1,033 of interest income related to impaired loans for the years ended December 31, 2002, 2001 and 2000, respectively. IDS Life Insurance Company ------------------------------------------------------------------------------- The following table presents changes in the reserves for mortgage loan losses: 2002 2001 2000 Balance, January 1 $20,948 $11,489 $ 28,283 Provision for mortgage loan losses 14,264 14,959 (14,894) Loan payoffs -- -- (1,200) Foreclosures and write-offs -- (5,500) (700) ------- ------- -------- Balance, December 31 $35,212 $20,948 $ 11,489 ======= ======= ======== Sources of investment income and realized losses on investments Net investment income for the years ended December 31 is summarized as follows: 2002 2001 2000 Income on fixed maturities $1,331,547 $1,276,966 $1,473,560 Income on mortgage loans 274,524 290,608 286,611 Other (15,642) (41,927) 9,834 ---------- ---------- ---------- 1,590,429 1,525,647 1,770,005 Less investment expenses 28,573 39,959 39,400 ---------- ---------- ---------- Total $1,561,856 $1,485,688 $1,730,605 ========== ========== ========== Net realized losses on investments for the years ended December 31 is summarized as follows: 2002 2001 2000 Fixed maturities $ 16,129 $(622,897) $(34,862) Mortgage loans (15,586) (17,834) 16,794 Other investments (5,050) (9,321) 1,093 -------- --------- -------- Total $ (4,507) $(649,752) $(16,975) ======== ========= ======== 3. INCOME TAXES The Company qualifies as a life insurance company for federal income tax purposes. As such, the Company is subject to the Internal Revenue Code provisions applicable to life insurance companies.
The income tax expense (benefit) for the years ended December 31 consists of the following: 2002 2001 2000 Federal income taxes Current $(30,648) $ 88,121 $176,397 Deferred 116,996 (234,673) 37,704 -------- --------- -------- 86,348 (146,552) 214,101 State income taxes -- current 1,478 1,330 7,526 -------- --------- -------- Income tax expense (benefit) before cumulative effect of accounting change 87,826 (145,222) 221,627 Cumulative effect of accounting change income tax benefit -- (11,532) -- -------- --------- -------- Income tax expense (benefit) $ 87,826 $(156,754) $221,627 ======== ========= ========
Income tax expense (benefit) before the cumulative effect of accounting change differs from that computed by using the federal statutory rate of 35%. The principal causes of the difference in each year are shown below:
2002 2001 2000 Provision Rate Provision Rate Provision Rate Federal income taxes based on the statutory rate $164,502 35.0% $ (66,136) (35.0)% $282,542 35.0% Tax-exempt interest and dividend income (5,260) (1.1) (4,663) (2.5) (3,788) (0.5) State taxes, net of federal benefit 961 0.2 865 0.4 4,892 0.6 Affordable housing credits (70,000) (14.9) (73,200) (38.7) (54,569) (6.8) Other, net (2,377) (0.5) (2,088) (1.1) (7,450) (0.8) -------- ---- --------- ----- -------- ---- Total income taxes $ 87,826 18.7% $(145,222) (76.9)% $221,627 27.5% ======== ==== ========= ===== ======== ====
A portion of life insurance company income earned prior to 1984 was not subject to current taxation but was accumulated, for tax purposes, in a "policyholders' surplus account." At December 31, 2002, the Company had a policyholders' surplus account balance of $20,114. The policyholders' surplus account is only taxable if dividends to the stockholder exceed the stockholder's surplus account or if the Company is liquidated. Deferred income taxes of $7,040 have not been established because no distributions of such amounts are contemplated. IDS Life Insurance Company ------------------------------------------------------------------------------- Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company's deferred income tax assets and liabilities as of December 31 are as follows: 2002 2001 Deferred income tax assets: Policy reserves $ 683,144 $ 705,637 Other investments 319,829 333,857 Other 29,789 24,640 --------- --------- Total deferred income tax assets 1,032,762 1,064,134 --------- --------- Deferred income tax liabilities: Deferred policy acquisition costs 929,751 861,892 Net unrealized gain -- available-for-sale securities 267,787 45,934 Other 17,283 -- --------- --------- Total deferred income tax liabilities 1,214,821 907,826 --------- --------- Net deferred income tax (liability) asset $ (182,059) $ 156,308 ========== ========== The Company is required to establish a valuation allowance for any portion of the deferred income tax assets that management believes will not be realized. In the opinion of management, it is more likely than not that the Company will realize the benefit of the deferred income tax assets and, therefore, no such valuation allowance has been established. 4. STOCKHOLDER'S EQUITY Retained earnings available for distribution as dividends to AEFC are limited to the Company's surplus as determined in accordance with accounting practices prescribed by state insurance regulatory authorities. The Company's statutory unassigned surplus aggregated $1,323,324 and $1,262,335 as of December 31, 2002 and 2001, respectively (see Note 3 with respect to the income tax effect of certain distributions). In addition, any dividend distributions in 2003 in excess of $240,838 would require approval of the Department of Commerce of the State of Minnesota. Statutory net income (loss) for the years ended December 31 and capital and surplus as of December 31 are summarized as follows: 2002 2001 2000 Statutory net income (loss) $ 159,794 $ (317,973) $ 344,973 Statutory capital and surplus 2,408,379 1,947,350 1,778,306 --------- --------- --------- The National Association of Insurance Commissioners (NAIC) revised the Accounting Practices and Procedures Manual in a process referred to as Codification. The revised regulations took effect January 1, 2001. The domiciliary states of the Company and its insurance subsidiaries adopted the provisions of the revised manual, with the exception of certain provisions not adopted by its subsidiaries organized in the state of New York. The revised manual changed, to some extent, prescribed statutory accounting practices and resulted in changes to the accounting practices that the Company uses to prepare its statutory-basis financial statements. The impact of implementing these changes was a decrease of $39,997 to the Company's statutory-basis capital and surplus as of January 1, 2001. Effective January 1, 2002 the Company's subsidiaries organized in the state of New York adopted additional provisions of the manual which resulted in an increase of $5,597 to the Company's statutory-basis capital and surplus as of January 1, 2002. 5. RELATED PARTY TRANSACTIONS The Company loans funds to AEFC under a collateral loan agreement. The balance of the loan was $nil at December 31, 2002 and 2001. This loan can be increased to a maximum of $75,000 and pays interest at a rate equal to the preceding month's effective new money rate for the Company's permanent investments. Interest income on related party loans totaled $nil in 2002, 2001 and 2000. The Company participates in the American Express Company Retirement Plan which covers all permanent employees age 21 and over who have met certain employment requirements. Company contributions to the plan are based on participants' age, years of service and total compensation for the year. Funding of retirement costs for this plan complies with the applicable minimum funding requirements specified by ERISA. The Company's share of the total net periodic pension cost was $294, $263 and $250 in 2002, 2001 and 2000, respectively. The Company also participates in defined contribution pension plans of American Express Company which cover all employees who have met certain employment requirements. Company contributions to the plans are a percent of either each employee's eligible compensation or basic contributions. Costs of these plans charged to operations in 2002, 2001 and 2000 were $1,411, $662 and $1,707, respectively. IDS Life Insurance Company ------------------------------------------------------------------------------- The Company participates in defined benefit health care plans of AEFC that provide health care and life insurance benefits to retired employees and retired financial advisors. The plans include participant contributions and service related eligibility requirements. Upon retirement, such employees are considered to have been employees of AEFC. AEFC expenses these benefits and allocates the expenses to its subsidiaries. The cost of these plans charged to operations in 2002, 2001 and 2000 was $1,835, $1,011 and $1,136, respectively. Charges by AEFC for use of joint facilities, technology support, marketing services and other services aggregated $526,081, $505,526 and $582,836 for 2002, 2001 and 2000, respectively. Certain of these costs are included in DAC. Expenses allocated to the Company may not be reflective of expenses that would have been incurred by the Company on a stand-alone basis. Included in other liabilities at December 31, 2002 and 2001 are $55,602 and $68,919, respectively, payable to AEFC for federal income taxes. 6. LINES OF CREDIT The Company has available lines of credit with AEFC aggregating $200,000 ($100,000 committed and $100,000 uncommitted). The interest rate for any borrowings is established by reference to various indices plus 20 to 45 basis points, depending on the term. There were no borrowings outstanding under this agreement at December 31, 2002 and 2001. 7. COMMITMENTS AND CONTINGENCIES At December 31, 2002, 2001 and 2000, traditional life and universal life-type insurance in force aggregated $119,173,734, $108,255,014 and $98,060,472 respectively, of which $38,008,734, $25,986,706 and $17,429,851 was reinsured at the respective year ends. The Company also reinsures a portion of the risks assumed under long-term care policies. Under all reinsurance agreements, premiums ceded to reinsurers amounted to $129,345, $114,534 and $89,506 and reinsurance recovered from reinsurers amounted to $60,567, $43,388, and $32,500 for the years ended December 31, 2002, 2001 and 2000, respectively. Reinsurance contracts do not relieve the Company from its primary obligation to policyholders. At December 31, 2002, the Company had no commitments to purchase investments other than mortgage loan fundings (see Note 2). The Company is a party to litigation and arbitration proceedings in the ordinary course of its business, none of which is expected to have a material adverse affect on the Company. In recent years, life insurance companies have been named as defendants in lawsuits, including class action lawsuits, alleging improper life insurance sales practices, alleged agent misconduct, failure to properly supervise agents and other matters relating to life insurance policies and annuity contracts. The Company and its affiliates were named defendants in three purported class-action lawsuits alleging improper insurance and annuity sales practices including improper replacement of existing annuity contracts and insurance policies, improper use of annuities to fund tax deferred contributory retirement plans, alleged agent misconduct, failure to properly supervise agents and other matters relating to life insurance policies and annuity contracts. A fourth lawsuit was filed against the Company and its affiliates in federal court. In January 2000, AEFC reached an agreement in principle to settle the four class action lawsuits described above. It is expected the settlement will provide $215,000 of benefits to more than two million participants in exchange for a release by class members of all insurance and annuity state and federal market conduct claims dating back to 1985. The settlement received court approval. Implementation of the settlement commenced October 15, 2001 and is substantially complete. Claim review payments have been made. Numerous individuals opted out of the settlement described above and therefore did not release their claims against AEFC and its subsidiaries. Some of these class members who opted out were represented by counsel and presented separate claims to AEFC and the Company. Most of their claims have been settled. The outcome of any litigation or threatened litigation cannot be predicted with any certainty. However, in the aggregate, the Company does not consider any lawsuits in which it is named as a defendant to have a material impact on the Company's financial position or operating results. The IRS routinely examines the Company's federal income tax returns and is currently conducting an audit for the 1993 through 1996 tax years. Management does not believe there will be a material adverse effect on the Company's consolidated financial position as a result of these audits. IDS Life Insurance Company ------------------------------------------------------------------------------- 8. DERIVATIVE FINANCIAL INSTRUMENTS The Company maintains an overall risk management strategy that incorporates the use of derivative instruments to minimize significant unplanned fluctuations in earnings caused by interest rate and equity market volatility. The Company does not enter into derivative instruments for speculative purposes. As prescribed by SFAS No. 133, derivative instruments that are designated and qualify as hedging instruments are classified as cash flow hedges, fair value hedges, or hedges of a net investment in a foreign operation, based upon the exposure being hedged. The Company currently has economic hedges that either do not qualify or are not designated for hedge accounting treatment under SFAS No. 133. The Company enters into interest rate swaps, caps and floors to manage the Company's interest rate risk and options and futures to manage equity-based risk. The values of derivative financial instruments are based on market values, dealer quotes or pricing models. Market risk is the possibility that the value of the derivative financial instruments will change due to fluctuations in a factor from which the instrument derives its value, primarily an interest rate or equity market index. The Company is not impacted by market risk related to derivatives held for non- trading purposes beyond that inherent in cash market transactions. Derivatives held for purposes other than trading are largely used to manage risk and, therefore, the cash flow and income effects of the derivatives are inverse to the effects of the underlying transactions. Credit risk is the possibility that the counterparty will not fulfill the terms of the contract. The Company monitors credit risk related to derivative financial instruments through established approval procedures, including setting concentration limits by counterparty, and requiring collateral, where appropriate. A vast majority of the Company's counterparties are rated A or better by Moody's and Standard & Poor's. Interest rate caps, swaps and floors are primarily used to protect the margin between interest rates earned on investments and the interest rates credited to related annuity contract holders. No interest rate swaps or floors were outstanding as of December 31, 2002. The interest rate caps expire in January 2003. The fair value of the interest rate caps is included in Other assets. Changes in the value of the interest rate caps are included in Other insurance and operating expenses. A purchased (written) option conveys the right (obligation) to buy or sell an instrument at a fixed price for a set period of time or on a specific date. The Company writes and purchases index options to manage the risks related to annuity products that pay interest based upon the relative change in a major stock market index between the beginning and end of the product's term (equity-indexed annuities). The Company views this strategy as a prudent management of equity market sensitivity, such that earnings are not exposed to undue risk presented by changes in equity market levels. The equity indexed annuities contain embedded derivatives, essentially the equity based return of the product, which must be separated from the host contract and accounted for as derivative instruments per SFAS No. 133. As a result of fluctuations in equity markets, and the corresponding changes in value of the embedded derivatives, the amount of interest credited incurred by the Company related to the annuity product will positively or negatively impact reported earnings. The purchased and written options are carried at fair value and included in Other assets and Other liabilities, respectively. The fair value of the embedded options are included in Future policy benefits for fixed annuities. The changes in fair value of the options are recognized in Other insurance and operating expenses and the embedded derivatives are recognized in Interest credited on universal life-type insurance and investment contracts. The purchased and written options expire on various dates through 2009. The Company also purchases futures to hedge its obligations under equity indexed annuities. The futures purchased are marked-to-market daily and exchange traded, exposing the Company to no counterparty risk. The futures contracts mature in 2003. Index options may be used to manage the equity market risk related to the fee income that the Company receives from its separate accounts and the underlying mutual funds. The amount of the fee income received is based upon the daily market value of the separate account and mutual fund assets. As a result, the Company's fee income could be impacted significantly by fluctuations in the equity market. There are no index options outstanding as of December 31, 2002 related to this strategy. IDS Life Insurance Company ------------------------------------------------------------------------------- 9. FAIR VALUES OF FINANCIAL INSTRUMENTS The Company discloses fair value information for financial instruments for which it is practicable to estimate that value. Fair values of life insurance obligations and all non-financial instruments, such as DAC, are excluded. Off-balance sheet intangible assets, such as the value of the field force, are also excluded. Management believes the value of excluded assets and liabilities is significant. The fair value of the Company, therefore, cannot be estimated by aggregating the amounts presented.
2002 2001 Carrying Fair Carrying Fair Financial Assets value value value value Fixed maturities $24,052,104 $24,052,104 $20,157,137 $20,157,137 Common stocks 21 21 1,704 1,704 Mortgage loans on real estate 3,417,651 3,815,362 3,680,394 3,845,950 Cash and cash equivalents 4,424,061 4,424,061 1,150,251 1,150,251 Other investment 110,574 108,813 75,721 75,721 Derivatives 24,016 24,016 34,477 34,477 Separate account assets 21,980,674 21,980,674 27,333,697 27,333,697 ---------- ---------- ---------- ---------- Financial Liabilities Future policy benefits for fixed annuities $21,911,497 $21,282,750 $18,139,462 $17,671,777 Derivatives 9,099 9,099 2,506 2,506 Separate account liabilities 19,391,316 18,539,425 24,280,092 23,716,854 ---------- ---------- ---------- ----------
At December 31, 2002 and 2001, the carrying amount and fair value of future policy benefits for fixed annuities exclude life insurance-related contracts carried at $1,432,294 and $1,368,254, respectively, and policy loans of $67,523 and $84,557, respectively. The fair value of these benefits is based on the status of the annuities at December 31, 2002 and 2001. The fair value of deferred annuities is estimated as the carrying amount less any applicable surrender charges and related loans. The fair value for annuities in non-life contingent payout status is estimated as the present value of projected benefit payments at rates appropriate for contracts issued in 2002 and 2001. At December 31, 2002 and 2001, the fair value of liabilities related to separate accounts is estimated as the carrying amount less any applicable surrender charges and less variable insurance contracts carried at $2,589,358 and $3,053,605, respectively. S-6273-20 A (12/03) PART C. Item 24. Financial Statements and Exhibits (a) Financial statements included in Part B of this Registration Statement: The audited financial statements of the IDS Life Variable Account 10 including: Report of Independent Auditors dated March 21, 2003. Statements of Assets and Liabilities for the year ended Dec. 31, 2002. Statements of Operations for the year ended Dec. 31, 2002. Statements of Changes in Net Assets for the years ended Dec. 31, 2002 and 2001. Notes to Financial Statements. The audited financial statements of the IDS Life Insurance Company including: Report of Independent Auditors dated Jan. 27, 2003. Consolidated Balance Sheets as of Dec. 31, 2002 and 2001. Consolidated Statements of Income for the years ended Dec. 31, 2002, 2001 and 2000. Consolidated Statements of Stockholder's Equity for the three years ended Dec. 31, 2002, 2001 and 2000. Consolidated Statements of Cash Flows for the years ended Dec. 31, 2002, 2001 and 2000. Notes to Consolidated Financial Statements. (b) Exhibits: 1.1 Resolution of the Board of Directors of IDS Life Insurance Company establishing the IDS Life Variable Account 10 dated August 23, 1995, filed electronically as Exhibit 1 to Registrant's Initial Registration Statement No. 33-62407 is incorporated herein by reference. 1.2 Resolution of the Board of Directors of IDS Life Insurance Company establishing 105 additional subaccounts within the separate account, filed electronically as Exhibit 1.2 to Pre-Effective Amendment No. 1 to Registration Statement No. 333-79311 filed on or about Aug. 10, 1999, is incorporated herein by reference. 1.3 Resolution of the Board of Directors of IDS life Insurance Company establishing 25 additional subaccounts within the separate account, filed electronically as Exhibit 1.3 to Registrant's Post-Effective Amendment No. 2 to Registration Statement No. 333-79311, is incorporated herein by reference. 1.4 Resolution of the Board of Directors of IDS Life Insurance Company establishing 12 additional subaccounts within the separate account, filed electronically as Exhibit 1.3 to Registrant's Post-Effective Amendment No. 3 to Registration Statement No. 333-79311, is incorporated herein by reference. 1.5 Resolution of the Board of Directors of IDS Life Insurance Company establishing 69 additional subaccounts within the separate account, filed electronically as Exhibit 1.5 to Registrant's Post-Effective Amendment No. 6 to Registration Statement No. 333-79311, is incorporated herein by reference. 1.6 Resolution of the Board of Directors of IDS Life Insurance Company establishing 112 additional subaccounts within the separate account, dated Feb. 11, 2002, filed electronically as Exhibit 1.6 to Registrant's Post-Effective Amendment No. 8 to Registration Statement No. 333-79311, is incorporated herein by reference. 1.7 Resolution of the Board of Directors of IDS Life Insurance Company establishing 3 additional subaccounts within the separate account, dated Feb. 28, 2002, filed electronically as Exhibit 1.7 to Registrant's Post-Effective Amendment No. 10 to Registration Statement No. 333-79311, is incorporated herein by reference. 1.8 Resolution of the Board of Directors of IDS Life Insurance Company establishing 8 additional subaccounts within the separate account, dated January 6, 2004, filed electronically herewith. 2. Not applicable. 3. Not applicable. 4.1 Form of Deferred Annuity Contract for non-qualified contracts (form 31043) filed electronically as Exhibit 4.1 to Registrant's Initial Registration Statement No. 333-79311, filed on or about May 26, 1999, is incorporated herein by reference. 4.2 Form of Deferred Annuity Contract for tax qualified contracts (form 31044) filed electronically as Exhibit 4.2 to Registrant's Initial Registration Statement No. 333-79311, filed on or about May 26, 1999, is incorporated herein by reference. 4.3 Form of Deferred Annuity Contract for IRA contracts (form 31045-IRA) filed electronically as Exhibit 4.3 to Registrant's Initial Registration Statement No. 333-79311, filed on or about May 26, 1999, is incorporated herein by reference. 4.4 Form of Deferred Annuity Contract for non-qualified contracts (form 31046) filed electronically as Exhibit 4.4 to Registrant's Initial Registration Statement No. 333-79311, filed on or about May 26, 1999, is incorporated herein by reference. 4.5 Form of Deferred Annuity Contract for tax qualified contracts (form 31047) filed electronically as Exhibit 4.5 to Registrant's Initial Registration Statement No. 333-79311, filed on or about May 26, 1999, is incorporated herein by reference. 4.6 Form of Deferred Annuity Contract for IRA contracts (form 31048-IRA) filed electronically as Exhibit 4.6 to Registrant's Initial Registration Statement No. 333-79311, filed on or about May 26, 1999, is incorporated herein by reference. 4.7 Form of TSA Endorsement (form 31049), filed electronically as Exhibit 4.7 to Pre-Effective Amendment No. 1 to Registration Statement No. 333-79311 filed on or about Aug. 10, 1999 is incorporated herein by reference. 4.8 Form of Maximum Anniversary Value Death Benefit Rider, filed electronically as Exhibit 4.8 to Post-Effective Amendment No. 4 to Registration Statement No. 333-79311, is incorporated herein by reference. 4.9 Form of Enhanced Earnings Death Benefit Rider, filed electronically as Exhibit 4.9 to Post-Effective Amendment No. 4 to Registration Statement No. 333-79311, is incorporated herein by reference. 4.10 Form of Enhanced Earnings Plus Death Benefit Rider, filed electronically as Exhibit 4.10 to Post-Effective Amendment No. 4 to Registration Statement No. 333-79311, is incorporated herein by reference. 4.11 Form of Traditional IRA or SEP-IRA Annuity Endorsement (form 131061) filed electronically as Exhibit 4.11 to Post-Effective Amendment No. 14 to Registration Statement No. 333-79311, is incorporated herein by reference. 4.12 Form of Roth IRA Annuity Endorsement (form 131062) filed electronically as Exhibit 4.12 to Post-Effective Amendment No. 14 to Registration Statement No. 333-79311, is incorporated herein by reference. 4.13 Form of SIMPLE IRA Annuity Endorsement (form 131063) filed electronically as Exhibit 4.13 to Post-Effective Amendment No. 14 to Registration Statement No. 333-79311, is incorporated herein by reference. 4.14 Form of Deferred Annuity Contract for non-qualified contracts (form 131041) filed electronically as Exhibit 4.14 to Post-Effective Amendment No. 14 to Registration Statement No. 333-79311, is incorporated herein by reference. 4.15 Form of Deferred Annuity Contract for Retirement Advisor Advantage Plus (form 1043 A) filed electronically herewith. 4.16 Form of Deferred Annuity Contract for Retirement Advisor Select Plus (form 131041 A) filed electronically herewith. 4.17 Form of TSA Endorsement (form 131068), filed electronically herewith. 4.18 Form of Return of Purchase Payments Rider (form 131072), filed electronically herewith. 4.19 Form of Maximum Anniversary Value Death Benefit Rider (form 131031), filed electronically herewith. 4.20 Form of 5-Year Maximum Anniversary Value Death Benefit Rider (form 131071), filed electronically herewith. 4.21 Form of Enhanced Earnings Death Benefit Rider (form 131032 A), filed electronically herewith. 4.22 Form of Enhanced Earnings Plus Death Benefit Rider (form 131033 A), filed electronically herewith. 4.23 Form of 401 (a) Annuity Endorsement (form 131069), filed electronically herewith. 5. Form of Variable Annuity Application (form 31063), filed electronically as Exhibit 5 to Pre-Effective Amendment No. 1 to Registration Statement No. 333-79311 filed on or about Aug. 10, 1999 is incorporated herein by reference. 6.1 Certificate of Incorporation of IDS Life dated July 24, 1957, filed electronically as Exhibit 6.1 to Registrant's Initial Registration Statement No. 33-62407 is incorporated herein by reference. 6.2 Amended By-Laws of IDS Life filed electronically as Exhibit 6.2 to Registrant's Initial Registration Statement No. 33-62407 is incorporated herein by reference. 6.3 Copy of Amended and Restated By-Laws of IDS Life Insurance Company, filed electronically as Exhibit 6.2 to Post-Effective Amendment No. 13 to Registration Statement No. 33-47302, is incorporated herein by reference. 7. Not applicable. 8.1(a) Copy of Participation Agreement between IDS Life Insurance Company and AIM Variable Insurance Funds, Inc. and AIM Distributors, Inc., dated March 4,1996, filed electronically as Exhibit 8.4 to Post-Effective Amendment No. 2 to Registration Statement No. 33-62407 is incorporated herein by reference. 8.1(b) Copy of Participation Agreement By and Among AIM Variable Insurance Funds, Inc., A I M Distributors, Inc., and IDS Life Insurance Company, on Behalf of Itself and Its Separate Accounts, dated Oct. 7, 1996, filed electronically as Exhibit 8.1(b) to Post-Effective Amendment No. 3 to Registration Statement No. 333-79311 is incorporated herein by reference. 8.2 Copy of Participation Agreement by and among IDS Life Insurance Company, American Express Financial Advisors Inc., Alliance Capital Management L.P. and Alliance Fund Distributors dated March 1, 2000 filed electronically as Exhibit 8.2 to Post-Effective Amendment No. 14 to Registration Statement No. 333-79311, is incorporated herein by reference. 8.3 Copy of Participation Agreement By and Among Calvert Variable Series, Inc. and Calvert Asset Management Co. and Calvert Distributors Inc. and IDS Life Insurance Company, dated April 14, 2000, filed as Exhibit 8.7 to Post-Effective Amendment No. 3 to Registration Statement No. 333-79311 is incorporated herein by reference. 8.4 Copy of Participation Agreement between IDS Life Insurance Company and Warburg Pincus Trust and Warburg Pincus Counselors, Inc. and Counselors Securities Inc., dated March 1, 1996, filed electronically as Exhibit 8.3 to Post-Effective Amendment No. 2 to Registration statement No. 33-62407 is incorporated herein by reference. 8.5 Copy of Participation Agreement by and between Evergreen Variable Annuity Trust and IDS Life Insurance Company, dated August 13, 2001 filed electronically as Exhibit 8.5(a) to Post-Effective Amendment No. 10 to Registration Statement No. 333-79311, is incorporated herein by reference. 8.6 Copy of Participation Agreement among Variable Insurance Products Fund, Fidelity Distributors Corporation and IDS Life Insurance Company, dated Sept. 1, 1999, filed electronically as Exhibit 8.8(a) to Post-Effective Amendment No. 3 to Registration Statement No. 333-79311 is incorporated herein by reference. 8.7 Copy of Participation Agreement between IDS Life Insurance Company and Templeton Variable Products Series Fund and Franklin Templeton Distributors, Inc. dated March 1, 1996, filed electronically as Exhibit 8.2 to Post-Effective Amendment No. 2 to Registration Statement No. 33-62407 is incorporated herein by reference. 8.8 Copy of Participation Agreement By and Between Goldman Sachs Variable Insurance Trust, Goldman, Sachs & Co. and IDS Life Insurance Company, dated September 1, 1999, filed electronically as Exhibit 8.3 to Post-Effective Amendment No. 3 to Registration Statement No. 333-79311 is incorporated herein by reference. 8.9 Copy of Participation Agreement between IDS Life Insurance Company and INVESCO Variable Investment Funds, Inc, and INVESCO Distributors, Inc., dated August 13, 2001 filed electronically as Exhibit 8.9 to Post-Effective Amendment No. 10 to Registration Statement No. 333-79311, is incorporated herein by reference. 8.10 Copy of Participation Agreement Between Janus Aspen Series and IDS Life Insurance Company, dated April 21, 2000, filed electronically as Exhibit 8.10 to Post-Effective Amendment No. 3 to Registration Statement No. 333-79311 is incorporated herein by reference. 8.11 Copy of Participation Agreement by and among IDS Life Insurance Company, Lazard Asset Management and Lazard Retirement Series, Inc., dated September 1, 1999, filed as Exhibit 8.11 to Post-Effective Amendment No. 3 to Registration Statement No. 333-79311 is incorporated herein by reference. 8.12 Copy of Participation Agreement Among MFS Variable Insurance Trust, IDS Life Insurance Company and Massachusetts Financial Services Company, dated March 1, 2000, filed as Exhibit 8.12 to Post-Effective Amendment No. 3 to Registration Statement No. 333-79311 is incorporated herein by reference. 8.13 Copy of Participation Agreement among Pioneer Variable Contracts Trust, IDS Life Insurance Company, Pioneer Investment Management, Inc. and Pioneer Funds Distributor, Inc. dated August 13, 2001 filed electronically as Exhibit 8.13(a) to Post-Effective Amendment No. 10 to Registration Statement No. 333-79311, is incorporated herein by reference. 8.14 Copy of Participation Agreement by and among IDS Life Insurance Company and Putnam Capital Manager Trust and Putnam Mutual Funds Corp., dated March 1, 1996, filed electronically as Exhibit 8.1 to Post-Effective Amendment No. 2 to Registration Statement No. 33-62407 is incorporated herein by reference. 8.15 Copy of Participation Agreement by and among Royce Capital Fund and Royce & Associates, Inc. and IDS Life Insurance Company, dated September 1, 1999, filed as Exhibit 8.5 to Post-Effective Amendment No. 3 to Registration Statement No. 333-79311 is incorporated herein by reference. 8.16 Copy of Participation Agreement by and among IDS Life Insurance Company and Strong Opportunity Fund II, Inc. and Strong Investor Services, Inc. and Strong Investments, Inc. dated August 13, 2001 filed electronically as Exhibit 8.16 to Post-Effective Amendment No. 10 to Registration Statement No. 333-79311, is incorporated herein by reference. 8.17 Copy of Participation Agreement between IDS Life Insurance Company and TCI Portfolios, Inc., dated April 24, 1996, filed electronically as Exhibit 8.5 to Post-Effective Amendment No. 2 to Registration Statement No. 33-62407 is incorporated herein by reference. 8.18 Copy of Participation Agreement by and among Wanger Advisors Trust and Liberty Wanger Asset Management, L.P. and IDS Life Insurance Company dated August 30, 1999 filed electronically as Exhibit 8.17 to Post-Effective Amendment No. 10 to Registration Statement No. 333-79311, is incorporated herein by reference. 8.19 Copy of Participation Agreement by and among Wells Fargo Variable Trust and IDS Life Insurance Company and Stephens Inc. dated May 1, 2000 filed electronically as Exhibit 8.18(a) to Post-Effective Amendment No. 10 to Registration Statement No. 333-79311, is incorporated herein by reference. 9. Opinion of counsel and consent to its use as the legality of the securities being registered is filed electronically herewith. 10. Consent of Independent Auditors is filed electronically herewith. 11. None. 12. Not applicable. 13. Schedule for computation of each performance quotation provided in the Registration Statement in response to Item 21 is incorporated by reference to Exhibit 13 of Registrant's Post-Effective Amendment No. 2, filed on or about May 1, 2000. 14. Not applicable. 15.1 Power of Attorney to sign Amendment to this Registration Statement, dated April 9, 2002 filed electronically as Exhibit 15 to Post-Effective Amendment No. 10 to Registration Statement No. 333-79311, is incorporated herein by reference. 15.2 Power of Attorney to sign Amendments to this Registration Statement, dated September 11, 2002, filed electronically as Exhibit 15.2 to Post-Effective Amendment No. 14 to Registration Statement No. 333-79311, is incorporated herein by reference. 15.3 Power of Attorney to sign Amendments to this Registration Statement, dated April 16, 2003, filed electronically as Exhibit 15.3 to Post-Effective Amendment No. 14 to Registration Statement No. 333-79311, is incorporated herein by reference. Item 25.
Item 25. Directors and Officers of the Depositor (IDS Life Insurance Company) -------------------------------------------------------------------- Name Principal Business Address* Position and Offices with Depositor ------------------------------------------------------ ---------------------------------------- Gumer C. Alvero Director and Executive Vice President - Annuities Timothy V. Bechtold Director and President Arthur H. Berman Director and Executive Vice President Walter S. Berman Vice President and Treasurer Barbara H. Fraser Director, Chairman of the Board and Chief Executive Officer Lorraine R. Hart Vice President, Investments Michelle M. Keeley Vice President - Investments Christopher J. Kopka Money Laundering Prevention Officer Eric L. Marhoun Vice President, Assistant General Counsel and Assistant Secretary Timothy S. Meehan Secretary Jeryl A. Millner Vice President and Controller Mary Ellyn Minenko Vice President, Assistant General Counsel and Assistant Secretary Barry J. Murphy Director Teresa J. Rasmussen Vice President, General Counsel and Assistant Secretary Stephen W. Roszell Director Bridget Sperl Executive Vice President - Client Service Beth E. Weimer Chief Compliance Officer
* Unless otherwise noted, the business address is 70100 AXP Financial Center, Minneapolis, MN 55474. Item 26. Item 26. Persons Controlled by or Under Common Control with the Depositor or Registrant (Continued) The following list includes the names of major subsidiaries of American Express Company.
Jurisdiction of Name of Subsidiary Incorporation I. Travel Related Services American Express Travel Related Services Company, Inc. New York II. International Banking Services American Express Bank Ltd. Connecticut III. Companies engaged in Financial Services Advisory Capital Partners LLC Delaware Advisory Capital Strategies Group Inc. Minnesota Advisory Convertible Arbitage, LLC Delaware Advisory Credit Opportunities GP LLC Delaware Advisory Quantitive Equity (General Partner) LLC Delaware Advisory Select LLC Delaware American Centurion Life Assurance Company New York American Enterprise Investment Services Inc. Minnesota American Enterprise Life Insurance Company Indiana American Enterprise REO 1, LLC Minnesota American Express Asset Management Group Inc. Minnesota American Express Asset Management International Inc. Delaware American Express Asset Management International (Japan) Ltd. Japan American Express Asset Management Ltd. England American Express Certificate Company Delaware American Express Client Service Corporation Minnesota American Express Corporation Delaware American Express Company New York American Express Financial Advisors Inc. Delaware American Express Financial Advisors Japan Inc. Delaware American Express Financial Corporation Delaware American Express Insurance Agency of Alabama Inc. Alabama American Express Insurance Agency of Arizona Inc. Arizona American Express Insurance Agency of Idaho Inc. Idaho American Express Insurance Agency of Maryland Inc. Maryland American Express Insurance Agency of Massachusetts Inc. Massachusetts American Express Insurance Agency of Nevada Inc. Nevada American Express Insurance Agency of New Mexico Inc. New Mexico American Express Insurance Agency of Oklahoma Inc. Oklahoma American Express Insurance Agency of Texas Inc. Texas American Express Insurance Agency of Wyoming Inc. Wyoming American Express International Deposit Corporation Cayman Island American Express Personal Trust Services, FSB Federal American Express Property Casualty Insurance Agency of Kentucky Inc. Kentucky American Express Property Casualty Insurance Agency of Maryland Inc. Maryland American Express Property Casualty Insurance Agency of Mississippi Inc. Mississippi American Express Property Casualty Insurance Agency of Pennsylvania Inc. Pennsylvania American Express Property Casualty Insurance Agency Wisconsin American Express Trust Company Minnesota American Partners Life Insurance Company Arizona AMEX Assurance Company Illinois Boston Equity General Partner LLC Delaware IDS Cable Corporation Minnesota IDS Cable II Corporation Minnesota IDS Capital Holdings Inc. Minnesota IDS Futures Brokerage Group Minnesota IDS Futures Corporation Minnesota IDS Insurance Agency of Utah, Inc. Utah IDS Life Insurance Company Minnesota IDS REO1, LLC Minnesota IDS REO2, LLC Minnesota IDS Life Insurance Company of New York New York IDS Management Corporation Minnesota IDS Partnership Services Corporation Minnesota IDS Property Casualty Insurance Company Wisconsin IDS Realty Corporation Minnesota Investors Syndicate Development Corporation - NV Nevada Kenwood Capital Management LLC Delaware Northwinds Marketing Group, LLC Delaware Realty Assets, Inc. Nebraska Securities America Financial Corporation Nebraska Securities America Inc. Delaware Securities America Advisors, Inc. Nebraska
Item 27. Number of Contract owners As of Nov. 30, 2003, there were 165,362 non-qualified contract owners and 222,028 qualified contract owners in the IDS Life Variable Account 10. Item 28. Indemnification The amended and restated By-Laws of the depositor provide that the depositor will indemnify, to the fullest extent now or hereafter provided for or permitted by law, each person involved in, or made or threatened to be made a party to, any action, suit, claim or proceeding, whether civil or criminal, including any investigative, administrative, legislative, or other proceeding, and including any action by or in the right of the depositor or any other corporation, or any partnership, joint venture, trust, employee benefit plan, or other enterprise (any such entity, other than the depositor, being hereinafter referred to as an "Enterprise"), and including appeals therein (any such action or process being hereinafter referred to as a "Proceeding"), by reason of the fact that such person, such person's testator or intestate (i) is or was a director or officer of the depositor, or (ii) is or was serving, at the request of the depositor, as a director, officer, or in any other capacity, or any other Enterprise, against any and all judgments, amounts paid in settlement, and expenses, including attorney's fees, actually and reasonably incurred as a result of or in connection with any Proceeding, except as provided below. No indemnification will be made to or on behalf of any such person if a judgment or other final adjudication adverse to such person establishes that such person's acts were committed in bad faith or were the result of active and deliberate dishonesty and were material to the cause of action so adjudicated, or that such person personally gained in fact a financial profit or other advantage to which such person was not legally entitled. In addition, no indemnification will be made with respect to any Proceeding initiated by any such person against the depositor, or a director or officer of the depositor, other than to enforce the terms of this indemnification provision, unless such Proceeding was authorized by the Board of Directors of the depositor. Further, no indemnification will be made with respect to any settlement or compromise of any Proceeding unless and until the depositor has consented to such settlement or compromise. The depositor may, from time to time, with the approval of the Board of Directors, and to the extent authorized, grant rights to indemnification, and to the advancement of expenses, to any employee or agent of the depositor or to any person serving at the request of the depositor as a director or officer, or in any other capacity, of any other Enterprise, to the fullest extent of the provisions with respect to the indemnification and advancement of expenses of directors and officers of the depositor. Insofar as indemnification for liability arising under the Securities Act of 1933 (the "Act") may be permitted to directors, officers and controlling persons of the depositor or the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue. Item 29. Principal Underwriters Item 29 Principal Underwriter (IDS Life Insurance Company) (a) IDS Life is the principal underwriter, depositor, sponsor or investment adviser for IDS Life Variable Annuity Fund A, IDS Life Variable Annuity Fund B, IDS Life Series Fund, Inc., AXP Variable Portfolio - Income Series, Inc., AXP Variable Portfolio - Investment Series, Inc., AXP Variable Portfolio - Managed Series, Inc., AXP Variable Portfolio - Money Market Series, Inc., AXP Variable Portfolio - Partners Series, Inc., IDS Life Account MGA, IDS Life Account SBS, IDS Life Accounts F, G, H, IZ, JZ, KZ, LZ, MZ, N, PZ, QZ, RZ, SZ and TZ, IDS Life Variable Account 10, IDS Life Variable Life Separate Account and IDS Life Variable Account for Smith Barney. (b) As to each director, officer, or partner of the principal underwriter: Name and Principal Business Address* Position and Offices with Underwriter ------------------------------------ ------------------------------------- Gumer C. Alvero Director and Executive Vice President - Annuities Timothy V. Bechtold Director and President Arthur H. Berman Director and Executive Vice President Walter S. Berman Vice President and Treasurer Barbara H. Fraser Director, Chairman of the Board and Chief Executive Officer Lorraine R. Hart Vice President, Investments Michelle M. Keeley Vice President - Investments Christopher J. Kopka Money Laundering Prevention Officer Eric L. Marhoun Vice President, Assistant General Counsel and Assistant Secretary Timothy S. Meehan Secretary Jeryl A. Millner Vice President and Controller Mary Ellyn Minenko Vice President, Assistant General Counsel and Assistant Secretary Barry J. Murphy Director Teresa J. Rasmussen Vice President, General Counsel and Assistant Secretary Stephen W. Roszell Director Bridget Sperl Executive Vice President - Client Service Beth E. Weimer Chief Compliance Officer * Unless otherwise noted, the business address is 70100 AXP Financial Center, Minneapolis, MN 55474. (c) Name of Net Underwriting Principal Discounts and Compensation on Brokerage Underwriter Commissions Redemption Commissions Compensation ----------- ----------- ---------- ----------- ------------ IDS Life Insurance $37,418,102 None None None Company
Item 30. Location of Accounts and Records IDS Life Insurance Company 70100 AXP Financial Center Minneapolis, MN 55474 Item 31. Management Services Not applicable. Item 32. Undertakings (a) Registrant undertakes to file a post-effective amendment to this registration statement as frequently as is necessary to ensure that the audited financial statements in the registration statement are never more than 16 months old for so long as payments under the variable annuity contracts may be accepted. (b) Registrant undertakes to include either (1) as part of any application to purchase a contract offered by the prospectus, a space that an applicant can check to request a Statement of Additional Information, or (2) a post card or similar written communication affixed to or included in the prospectus that the applicant can remove to send for a Statement of Additional Information. (c) Registrant undertakes to deliver any Statement of Additional Information and any financial statements required to be made available under this Form promptly upon written or oral request. (d) Registrant represents that it is relying upon the no-action assurance given to the American Council of Life Insurance (pub. avail. Nov. 28, 1988). Further, Registrant represents that it has complied with the provisions of paragraphs (1)-(4) of that no-action letter. (e) The sponsoring insurance company represents that the fees and charges deducted under the contract, in the aggregate, are reasonable in relation to the services rendered, the expenses expected to be incurred, and the risks assumed by the insurance company. SIGNATURES As required by the Securities Act of 1933 and the Investment Company Act of 1940, IDS Life Insurance Company, on behalf of the Registrant has duly caused this Amendment to its Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized in the City of Minneapolis, and State of Minnesota, on the 23rd day of January, 2004. IDS LIFE VARIABLE ANNUITY ACCOUNT 10 ------------------------------------ (Registrant) By IDS Life Insurance Company ------------------------------------ (Sponsor) By /s/ Timothy V. Bechtold* ---------------------------------- Timothy V. Bechtold President As required by the Securities Act of 1933, Amendment to this Registration Statement has been signed by the following persons in the capacities indicated on the 23rd day of January, 2004. /s/ Gumer C. Alvero* Director ------------------------------------ Gumer C. Alvero /s/ Timothy V. Bechtold* Director and President ------------------------------------ Timothy V. Bechtold /s/ Barbara H. Fraser** Chairman of the Board of Directors ------------------------------------ and Chief Executive Officer Barbara H. Fraser (Chief Executive Officer) /s/ Jeryl A. Millner*** Vice President and Controller ------------------------------------ (Principal Accounting Officer) Jeryl A. Millner /s/ Barry J. Murphy* Director ------------------------------------ Barry J. Murphy /s/ Stephen W. Roszell* Director ----------------------------------- Stephen W. Roszell * Signed pursuant to Power of Attorney dated April 9, 2002, filed electronically as Exhibit 15 to Post-Effective Amendment No. 10 to Registration Statement No. 333-79311, is incorporated by reference, by: ** Signed pursuant to Power of Attorney, dated September 11, 2002, filed electronically as Exhibit 15.2 to Post-Effective Amendment No. 14 to Registration Statement No. 333-79311, is incorporated herein by reference, by: *** Signed pursuant to Power of Attorney, dated April 16, 2003, filed electronically as Exhibit 15.3 to Post-Effective Amendment No. 14 to Registration Statement No. 333-79311, is incorporated herein by reference, by: /s/ Mary Ellyn Minenko ------------------ Mary Ellyn Minenko Counsel CONTENTS OF POST-EFFECTIVE AMENDMENT NO. 20 TO REGISTRATION STATEMENT This Post-Effective Amendment is comprised of the following papers and documents: The Cover Page. Part A. The Prospectus. Part B. Statement of Additional Information. Financial Statements. Part C. Other Information. The signatures.