Ameriprise 2010 Annual Report Download - page 159

treasury shares under the 2005 ICP and 2008 Plan were 0.3 million shares in each of the years ended December 31,
2010, 2009 and 2008. For the years ended December 31, 2010, 2009 and 2008, the Company reacquired 0.4 million,
0.5 million and 0.5 million shares, respectively, of its common stock through the surrender of restricted shares upon
vesting and paid in the aggregate $17 million, $11 million and $24 million, respectively, related to the holders’ income tax
obligations on the vesting date. In 2010, the Company also reacquired 0.1 million shares of its common stock with an
aggregate value of $7 million from a total return swap used to economically hedge its Franchise Advisor Deferral Plan. See
Note 16 for additional information.
In 2009, the Company issued and sold 36 million shares of its common stock. The proceeds of $869 million were used
for general corporate purposes, including the Company’s acquisition of the long-term asset management business of the
Columbia Management Group. In 2008, the Company reissued 1.8 million treasury shares for restricted stock award grants
and the issuance of shares vested under the Franchise Advisor Deferral Plan and the Transition and Opportunity Bonus
program.
19. Earnings per Share Attributable to Ameriprise Financial, Inc. Common Shareholders
The computations of basic and diluted earnings per share attributable to Ameriprise Financial, Inc. common shareholders
were as follows:
Years Ended December 31,
2010 2009 2008
(in millions, except per share amounts)
Numerator:
Net income (loss) attributable to Ameriprise Financial, Inc. $ 1,097 $ 722 $ (36)
Denominator:
Basic: Weighted-average common shares outstanding 257.4 242.2 222.3
Effect of potentially dilutive nonqualified stock options and other share-based
awards 4.9 2.2 2.6
Diluted: Weighted-average common shares outstanding 262.3 244.4 224.9
Earnings (loss) per share attributable to Ameriprise Financial, Inc. common
shareholders:
Basic $ 4.26 $ 2.98 $ (0.16)
Diluted $ 4.18 $ 2.95 $ (0.16)(1)
(1) Diluted shares used in this calculation represent basic shares due to the net loss. Using actual diluted shares would result in
anti-dilution.
20. Regulatory Requirements
Restrictions on the transfer of funds exist under regulatory requirements applicable to certain of the Company’s
subsidiaries. At December 31, 2010, the aggregate amount of unrestricted net assets was approximately $2.4 billion.
The National Association of Insurance Commissioners (‘‘NAIC’’) defines Risk-Based Capital (‘‘RBC’’) requirements for
insurance companies. The RBC requirements are used by the NAIC and state insurance regulators to identify companies
that merit regulatory actions designed to protect policyholders. These requirements apply to both the Company’s life and
property casualty insurance companies. In addition, IDS Property Casualty is subject to the statutory surplus requirements
of the State of Wisconsin. The Company’s life and property casualty companies each met their respective minimum RBC
requirements.
State insurance statutes also contain limitations as to the amount of dividends and distributions that insurers may make
without providing prior notification to state regulators. For RiverSource Life, dividends or distributions in excess of statutory
unassigned surplus, as determined in accordance with accounting practices prescribed by the State of Minnesota, require
advance notice to the Minnesota Department of Commerce, RiverSource Life’s primary regulator, and are subject to
potential disapproval. In addition, dividends whose fair market value, together with that of other dividends or distributions
made within the preceding 12 months, exceeds the greater of (i) the previous year’s statutory net gain from operations or
(ii) 10% of the previous year-end statutory capital and surplus are referred to as ‘‘extraordinary dividends.’’ Extraordinary
dividends also require advance notice to the Minnesota Department of Commerce, and are subject to potential
disapproval. Government debt securities of $6 million and $7 million at December 31, 2010 and 2009, respectively, held
by the Company’s life insurance subsidiaries were on deposit with various states as required by law and satisfied legal
requirements. Statutory capital and surplus for RiverSource Life were $3.7 billion, $3.4 billion and $2.5 billion for the
years ended December 31, 2010, 2009 and 2008, respectively.
Ameriprise Certificate Company (‘‘ACC’’) is registered as an investment company under the Investment Company Act of
1940 (the ‘‘1940 Act’’). ACC markets and sells investment certificates to clients. ACC is subject to various capital
requirements under the 1940 Act, laws of the State of Minnesota and understandings with the Securities and Exchange
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