Ameriprise 2009 Annual Report Download - page 160

The principal reasons that the aggregate income tax provision is different from that computed by using the U.S. statutory rate of 35% were
as follows:
Years Ended December 31,
2009 2008 2007
Tax at U.S. statutory rate 35.0 % 35.0 % 35.0 %
Changes in taxes resulting from:
Dividend exclusion (7.6) 15.5 (5.2)
Tax-exempt interest income (1.7) 3.2 (1.3)
Tax credits (3.3) 12.0 (6.6)
State taxes, net of federal benefit (0.5) 1.9 (0.3)
Net income (loss) attributable to noncontrolling interests (0.6) (4.4) 0.1
Other, net (1.4) 15.2 (1.7)
Income tax provision 19.9 % 78.4 % 20.0 %
The Company’s effective tax rate decreased to 19.9% in 2009 from 78.4% in 2008, primarily due to a pretax loss in relation to a net tax
benefit for 2008 compared to pretax income for 2009. The Company’s effective tax rate for 2008 included $79 million in tax benefits
related to changes in the status of current audits and closed audits, tax planning initiatives, and the finalization of prior year tax returns.
The Company’s effective tax rate for 2007 included a $16 million tax benefit related to the finalization of certain income tax audits and a
$19 million tax benefit related to the Company’s plan to begin repatriating earnings of certain Threadneedle entities through dividends.
Accumulated earnings of certain foreign subsidiaries, which totaled $117 million at December 31, 2009, are intended to be permanently
reinvested outside the United States. Accordingly, U.S. federal taxes, which would have aggregated $13 million, have not been provided
on those earnings.
Deferred income tax assets and liabilities result from temporary differences between the assets and liabilities measured for GAAP
reporting versus income tax return purposes. The significant components of the Company’s deferred income tax assets and liabilities,
which are included net within other assets on the Consolidated Balance Sheets, were as follows:
December 31,
2009 2008
(in millions)
Deferred income tax assets:
Liabilities for future policy benefits and claims $ 1,412 $ 1,744
Investment impairments and write-downs 150 329
Deferred compensation 258 210
Unearned revenues 36 27
Net unrealized losses on Available-for-Sale securities — 545
Accrued liabilities 28 64
Investment related 41 —
Net operating loss and tax credit carryforwards 225 222
Other 163 132
Gross deferred income tax assets 2,313 3,273
Deferred income tax liabilities:
Deferred acquisition costs 1,306 1,226
Deferred sales inducement costs 193 181
Investment related — 616
Net unrealized gains on Available-for-Sale securities 144 —
Depreciation expense 130 155
Intangible assets 69 13
Other 88 78
Gross deferred income tax liabilities 1,930 2,269
Net deferred income tax assets $ 383 $ 1,004
ANNUAL REPORT 2009 145