Ameriprise 2009 Annual Report Download - page 165

Certain property fund limited partnerships that the Company consolidates have floating rate revolving credit borrowings of $381 million
as of December 31, 2009. Certain Threadneedle subsidiaries guarantee the repayment of outstanding borrowings up to the value of the
assets of the partnerships. The debt is secured by the assets of the partnerships and there is no recourse to Ameriprise Financial.
24. Earnings per Share Attributable to Ameriprise Financial Common Shareholders
The computations of basic and diluted earnings (loss) per share attributable to Ameriprise Financial common shareholders are as follows:
Years Ended December 31,
2009 2008 2007
(in millions, except per share amounts)
Numerator:
Net income (loss) attributable to Ameriprise Financial $ 722 $ (38) $ 814
Denominator:
Basic: Weighted-average common shares outstanding 242.2 222.3 236.2
Effect of potentially dilutive nonqualified stock options and other share-based
awards 2.2 2.6 3.7
Diluted: Weighted-average common shares outstanding 244.4 224.9 239.9
Earnings (loss) per share attributable to Ameriprise Financial common
shareholders:
Basic $ 2.98 $ (0.17) $ 3.45
Diluted $ 2.95 $ (0.17) (1) $ 3.39
(1) Diluted shares used in this calculation represent basic shares due to the net loss. Using actual diluted shares would result in anti-dilution.
Basic weighted average common shares for the years ended December 31, 2009, 2008 and 2007 included 3.4 million, 2.1 million and
1.6 million, respectively, of vested, nonforfeitable restricted stock units and 4.6 million, 3.1 million and 3.5 million, respectively, of
non-vested restricted stock awards and restricted stock units that are forfeitable but receive nonforfeitable dividends. Potentially dilutive
securities include nonqualified stock options and other share-based awards.
25. Shareholders’ Equity
The Company has a share repurchase program in place to return excess capital to shareholders. Since September 2008 through the date
of this report, the Company has suspended its stock repurchase program; as a result there were no share repurchases during the year
ended December 31, 2009. During the years ended December 31, 2008 and 2007, the Company repurchased a total of 12.7 million and
15.9 million shares, respectively, of its common stock at an average price of $48.26 and $59.59, respectively. As of December 31, 2009, the
Company had approximately $1.3 billion remaining under a share repurchase authorization.
The Company may also reacquire shares of its common stock under its 2005 ICP and 2008 Plan related to restricted stock awards.
Restricted shares that are forfeited before the vesting period has lapsed are recorded as treasury shares. In addition, the holders of
restricted shares may elect to surrender a portion of their shares on the vesting date to cover their income tax obligations. These vested
restricted shares reacquired by the Company and the Company’s payment of the holders’ income tax obligations are recorded as a
treasury share purchase. The restricted shares forfeited and recorded as treasury shares under the 2005 ICP and 2008 Plan were
0.3 million shares in each of the years ended December 31, 2009, 2008 and 2007. For each of the years ended December 31, 2009, 2008
and 2007, the Company reacquired 0.5 million of its common stock through the surrender of restricted shares upon vesting and paid in
the aggregate $11 million, $24 million and $29 million, respectively, related to the holders’ income tax obligations on the vesting date.
In 2009, the Company issued and sold 36 million shares of its common stock. The proceeds of $869 million will be used for general
corporate purposes, including the Company’s pending acquisition of the long-term asset management business of Columbia, which is
expected to close in the spring of 2010. See Note 5 for additional information on the Company’s pending acquisition of Columbia. In
2008, the Company reissued 1.8 million treasury shares for restricted stock award grants and the issuance of shares vested under the P2
Deferral Plan and the Transition and Opportunity Bonus (‘‘T&O Bonus’’) program. In 2005, the Company awarded bonuses to advisors
150 ANNUAL REPORT 2009