Ameriprise 2008 Annual Report Download - page 96

Share Repurchases, Debt Repurchases and Dividends Paid to Shareholders
In 2008, we repurchased 12.7 million shares at an average price of $48.26 under our share repurchase program. Since
inception of the share repurchase program in January 2006, we have purchased 39.3 million shares at an average price of
$51.72. At December 31, 2008, there was approximately $1.3 billion remaining to repurchase shares under authorizations
approved by our Board of Directors. The share repurchase programs do 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 used our existing working capital to fund these share repurchases. In light of the current market
environment, we have temporarily suspended our stock repurchase program. We may resume activity under our stock
repurchase program and begin repurchasing shares in the open market or in privately negotiated transactions from time to
time without notice. We reserve the right to suspend any such repurchases and to resume later repurchasing at any time, and
expressly disclaim any obligation to maintain or lift any such suspension.
Pursuant to the Ameriprise Financial 2005 Incentive Compensation Plan, we reacquired 0.5 million shares of our common
stock in 2008 through the surrender of restricted shares upon vesting and paid in the aggregate $24 million related to the
holders’ income tax obligations on the vesting date.
In 2008, we extinguished $43 million of our junior notes. In the future, we may from time to time seek to retire or purchase
additional outstanding debt through cash purchases in open market purchases, privately negotiated transactions or
otherwise, without prior notice. Such repurchases, if any, will depend upon market conditions and other factors. The amounts
involved could be material.
We paid regular quarterly cash dividends to our shareholders totaling $143 million, $133 million and $108 million in 2008,
2007, and 2006, respectively. On January 28, 2009, our Board of Directors declared a regular quarterly cash dividend of
$0.17 per common share. The dividend was paid on February 20, 2009 to our shareholders of record at the close of business
on February 6, 2009.
Operating Activities
Net cash provided by operating activities for the year ended December 31, 2008 was $2.0 billion compared to $724 million
for the year ended December 31, 2007, an increase of $1.3 billion. The increase was driven by $1.6 billion in additional
collateral held related to derivative instruments at December 31, 2008 compared to the prior year. This increase was partially
offset by the impact of advancing approximately $300 million to our clients to fund their critical liquidity needs following the
freeze of funds in the Reserve’s Primary Fund and Government Fund, as well as the costs associated with supporting
RiverSource 2a-7 money market funds and an increase in taxes paid compared to the prior year period. Reduced cash inflows
related to lower fee revenue were offset by lower cash outflows due to lower expenses, including the completion of separation
costs in 2007 and a $100 million settlement paid in 2007.
Net cash provided by operating activities was $724 million for the year ended December 31, 2007 compared to $801 million
for the year ended December 31, 2006, a decrease of $77 million. The decrease was primarily driven by a $100 million
settlement paid in 2007.
Investing Activities
Our investing activities primarily relate to our Available-for-Sale investment portfolio. Further, this activity is significantly
affected by the net outflows of our investment certificate, fixed annuity and universal life products reflected in financing
activities.
Net cash provided by investing activities for the year ended December 31, 2008 was $15 million compared to $4.6 billion for
the year ended December 31, 2007, a cash flow decrease of $4.6 billion. Purchases of Available-for-Sale securities
increased $1.9 billion and sales of Available-for-Sale securities decreased $3.2 billion compared to the prior year period,
resulting in a $5.1 billion decrease to cash provided by investing activities. We also paid cash of $563 million for acquisitions
in the fourth quarter of 2008, net of cash acquired. These decreases were partially offset by a $1.0 billion increase in
maturities, sinking fund payments and calls of Available-for-Sale securities compared to the prior year period.
Net cash provided by investing activities for the year ended December 31, 2007 was $4.6 billion compared to $3.5 billion for
the year ended December 31, 2006, a cash flow improvement of $1.1 billion. Net cash proceeds from Available-for-Sale
securities increased $1.8 billion compared to the prior year period. This increase in cash was partially offset by net cash
provided by the acquisition of bank deposits and loans in 2006.
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