Ameriprise 2006 Annual Report Download - page 48

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partnership capital. In addition, nonrecourse debt related to a
consolidated CDO declined $58 million to $225 million at
December 31, 2006 compared to $283 million at
December 31, 2005. In 2005, we entered into an unsecured
bridge loan facility in the amount of $1.4 billion and repaid
$1.3 billion of American Express intercompany debt.
Our capital transactions in 2006 primarily related to the
repurchase of our common stock and dividends paid to our
shareholders. In 2005, our capital transactions primarily
related to the $1.1 billion capital contribution from
American Express in connection with the Separation and
Distribution and a capital contribution of $164 million in
connection with the transfer of AEIDC to American Express.
We used total cash of $470 million in 2006 for the purchase
of 10.7 million treasury shares under our share repurchase
programs. We used our existing working capital to fund these
share repurchases, and we currently intend to fund additional
share repurchases through existing working capital, future
earnings and other customary financing methods. Pursuant to
the Ameriprise Financial 2005 Incentive Compensation Plan,
we reacquired 0.4 million shares of our common stock in
2006 through the surrender of restricted shares upon vesting
and paid in the aggregate $20 million related to the holders’
income tax obligations on the vesting date.
We paid regular quarterly cash dividends to our shareholders
totaling $108 million for the year ended December 31, 2006,
or $0.11 per common share for each quarterly period. In 2005,
we paid $27 million of cash dividends to our shareholders
during the quarterly period ended December 31, 2005.
On January 25, 2007, our Board of Directors declared a
regular quarterly cash dividend of $0.11 per common share.
The dividend is payable February 16, 2007 to our shareholders
of record at the close of business on February 5, 2007. We
have $366 million remaining under a share repurchase
program authorized by our Board of Directors. This share
repurchase program does not require the purchase of any
minimum number of shares, and depending on market
conditions and factors, these purchases may be commenced
or suspended at any time without prior notice. We expect to
use internally generated cash for these expenditures.
We generated net cash from financing activities of $177 million
for the year ended December 31, 2005 compared to $691 million
for the year ended December 31, 2004. Cash used for certificate
maturities and cash surrenders increased $1.3 billion. This use
of cash flow was partially offset by the debt and capital transac-
tions in 2005 discussed previously as well as a decrease in
dividends paid to American Express in 2005 compared to 2004.
Dividend payments to American Express were $53 million in
2005 compared to $1.3 billion in 2004. The dividends paid to
American Express in 2004 included extraordinary dividends
received from RiverSource Life of $930 million.
46 Ameriprise Financial, Inc. 2006 Annual Report
Contractual Commitments
The contractual obligations identified in the table below include both our on and off-balance sheet transactions that represent material
expected or contractually committed future obligations. Payments due by period as of December 31, 2006 are as follows:
Payments due in year ending
2008- 2010- 2012 and
Contractual Obligations Total 2007 2009 2011 Thereafter
(in millions)
Balance Sheet:
Debt(1) $ 2,225 $ — $ — $ 1,025 $ 1,200
Insurance and annuities(2) 44,599 3,517 6,329 5,506 29,247
Investment certificates(3) 4,718 4,242 476 — —
Off-Balance Sheet:
Lease obligations 665 95 132 111 327
Purchase obligations(4) 77 47 28 2 —
Interest on debt(5) 2,834 137 273 225 2,199
Total $ 55,118 $ 8,038 $ 7,238 $ 6,869 $ 32,973
(1) See Note 15 to our Consolidated Financial Statements for more
information about our debt.
(2) These scheduled payments are represented by reserves of
approximately $30 billion at December 31, 2006 and are based on
interest credited, mortality, morbidity, lapse, surrender and premium
payment assumptions. Actual payment obligations may differ if
experience varies from these assumptions. Separate account liabilities
have been excluded as associated contractual obligations would be met
by separate account assets.
(3) The payments due by year are based on contractual term maturities.
However, contractholders have the right to redeem the investment
certificates earlier and at their discretion subject to surrender charges,
if any. Redemptions are most likely to occur in periods of substantial
increases in interest rates.
(4) The purchase obligation amounts include expected spending by period
under contracts that were in effect at December 31, 2006. Minimum
contractual payments associated with purchase obligations, including
termination payments, were $6 million.
(5) Interest on debt was estimated based on rates in effect as of
December 31, 2006.