Ameriprise 2006 Annual Report Download - page 35

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Other expenses in 2006 relative to 2005 are lower as a result
of the deconsolidation of AMEX Assurance, which had
$14 million of other expenses in 2005. For the year ended
December 31, 2006, other expenses included $70 million of
expense of certain consolidated limited partnerships and
$14 million of expense, primarily related to the write-down of
capitalized software, associated with the sale of our defined
contribution recordkeeping business in the second quarter of
2006. Certain legal and regulatory costs were $74 million in
2006 compared to $140 million in 2005, of which $100 million
was related to the settlement of a consolidated securities
class action lawsuit.
Income Taxes
Our effective tax rate was 20.8% for the year ended
December 31, 2006 compared to 25.1% for the year ended
December 31, 2005. The lower effective tax rate in 2006
compared to 2005 was primarily due to the impact of a
$16 million tax benefit as a result of a change in the effective
state income tax rate applied to deferred tax assets as a
result of the Distribution, and a $13 million tax benefit related
to the true-up of the tax return for the year 2005 partially
offset by lower levels of tax advantaged items in 2006.
Additionally, the effective tax rate in 2005 was impacted by a
$20 million tax expense applicable to prior years.
33
Ameriprise Financial, Inc. 2006 Annual Report