Ameriprise 2011 Annual Report Download

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since 1894
Helping people achieve their dreams
2011 ANNUAL REPORT

Table of contents

  • Page 1
    Helping people achieve their dreams since 1894 201 1 ANN UAL RE P OR T

  • Page 2
    ... Earnings per diluted share Return on equity excluding accumulated other comprehensive income, net of tax 2011 $10,050 $1,232 $5.00 2010 $9,117 $1,188 $4.53 Change 10% 4% 10% 13.2% 12.9% GAAP Net revenues Net income from continuing operations attributable to Ameriprise Financial Earnings from...

  • Page 3
    ... can continue to invest for growth and return significant capital to shareholders. Meeting challenges from a position of strength Certainly, our business is connected to the markets: volatile equity markets impact asset levels and fees and create investor anxiety, while low interest rates limit the...

  • Page 4
    ... our large excess capital position, managed our diversified investment portfolio effectively and reinforced our risk management program. This strength enabled us to return $1.7 billion to shareholders through share repurchases and dividends. in 2011, we repurchased 27.9 million shares of Ameriprise...

  • Page 5
    ... main businesses, including mutual funds, life insurance and annuities." developing deep, long-term client relationships and serving consumers' retirement needs require a wide range of product solutions. We have a broad suite of compelling products to help clients meet their goals, grow their assets...

  • Page 6
    ...our new indexed universal life insurance product is being well received by advisors and clients." SM Overall, our wealth management and retirement business had a strong year. Retail client assets were up 2 percent to $310 billion, driven by strong net inflows in wrap accounts and variable annuities...

  • Page 7
    ... of RiverSource investments and Columbia management and have an outstanding base from which to grow. We're delivering strong long-term retail and institutional investment performance. While the business experienced net outflows in 2011, we captured market share in a difficult mutual fund market...

  • Page 8
    ... National Day of Service in assets under management and administration Together, Columbia management and Threadneedle represent a compelling capability. Our asset management business generated $528 million in operating earnings in 2011, up 29 percent in a challenging market, and our adjusted net...

  • Page 9
    ...of total household financial assets, and we offer product solutions across the retirement spectrum. Our target market is investors with between $100,000 and $3 million in investable assets. This group holds a large portion of total U.S. financial assets, and it is growing at a faster rate than other...

  • Page 10
    ...ahead Few financial companies offer the investment opportunity of Ameriprise. We're making steady progress as a leading diversified financial services firm with two primary capabilities: wealth management and retirement, and asset management. Our fee-generating, less capital-demanding businesses are...

  • Page 11
    ...leading this great company, the past 11 years as Chairman and CEO, and my executive leadership team is also long-tenured. Together, we share a deep understanding of the firm's capabilities, client needs and market risk, and we embrace the responsibility of keeping Ameriprise Financial strong for all...

  • Page 12
    ... advisor force in the U.S.: Company reports as of dec. 31, 2011. No. 6 variable universal life insurance (total assets): Towers Watson, VALUEâ„¢ Variable Life Survey, as of 3Q 2011. No. 8 long-term mutual fund assets in the U.S.: iCi Complex Assets through dec. 31, 2011. Top 10 variable annuities...

  • Page 13
    Ameriprise Financial, Inc. 2011 Form 10-K

  • Page 14
    ...) 1099 Ameriprise Financial Center, Minneapolis, Minnesota (Address of principal executive offices) Registrant's telephone number, including area code: (612) 671-3131 Securities registered pursuant to Section 12(b) of the Act: Title of each class Common Stock (par value $.01 per share) Securities...

  • Page 15
    ... Director Independence ...Principal Accountant Fees and Services ...167 169 169 170 170 Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities ...Selected Financial Data ...Management's Discussion and Analysis of Financial Condition and Results...

  • Page 16
    ...in long-term U.S. mutual funds, variable annuities and variable universal life insurance. We go to market in two primary ways: • • Wealth Management and Retirement; and Asset Management. With respect to our wealth management and retirement capabilities, we offer financial planning, products and...

  • Page 17
    ...our affiliated advisors (e.g., financial planning, investment advisory accounts, retail brokerage services and banking products) and products and services that we market directly to consumers (e.g., personal auto and home insurance). We use Columbia Management as the primary brand for our U.S. asset...

  • Page 18
    ...Holding Corporation Columbia Management Investment Distributors, Inc. Ameriprise Financial Services, Inc. American Enterprise Investment Services Inc. RiverSource Life Insurance Company IDS Property Casualty Insurance Company Ameriprise Certificate Company Ameriprise Trust Company Ameriprise...

  • Page 19
    ... Life. We refer to RiverSource Life and RiverSource Life of NY as the ''RiverSource Life companies.'' IDS Property Casualty Insurance Company (''IDS Property Casualty'' or ''Ameriprise Auto & Home'') provides personal auto, home and excess liability insurance products. Ameriprise Insurance Company...

  • Page 20
    ...an independent contractor franchisee who affiliates with our company and has the right to use the Ameriprise brand. We pay our franchisee advisors a higher payout rate than our employee advisors as they are responsible for paying their own overhead, staff compensation and other business expenses. In...

  • Page 21
    ... brokerage service to purchase and sell securities, obtain independent research and information about a wide variety of securities, and use self-directed asset allocation and other financial planning tools. We also offer shares in public non-exchange traded Real Estate Investment Trusts, structured...

  • Page 22
    ... - Asset Management - Columbia Management - Mutual Funds''), we offer mutual funds from more than 250 mutual fund families on our brokerage platform and as part of our wrap accounts to provide our clients a broad choice of investment products. In 2011, retail sales of other companies' mutual funds...

  • Page 23
    ... offered by banks (including Ameriprise Bank), savings and loan associations, credit unions, mutual funds, insurance companies and similar financial institutions. In times of weak performance in the equity markets, certificate sales are generally stronger. In 2011, affiliated advisors' cash sales...

  • Page 24
    ... 2011, we completed the acquisition of Grail Advisors, LLC (''Grail''), which provides CMIA the capability of offering actively managed exchange-traded funds. In April 2010, we completed the acquisition of the long-term asset management business of the Columbia Management Group from Bank of America...

  • Page 25
    ... in variable annuity and variable life insurance products, including RiverSource products. The Columbia Management family of funds includes domestic and international equity funds, fixed income funds, cash management funds, balanced funds, specialty funds, absolute return funds and asset allocation...

  • Page 26
    ... Balance Sheets, such as the assets held in the general account of our RiverSource Life companies, assets held by Ameriprise Certificate Company and the investment portfolio of Ameriprise Bank. Our fixed income team manages the general account assets to produce a consolidated and targeted rate...

  • Page 27
    ..., markets, asset classes and product structures, which include Open Ended Investment Companies (''OEICs''), Societe d'Investissement A Capital Variable (''SICAV''), unit trusts, Undertakings for Collective Investments in Transferable Securities and offshore vehicles. Threadneedle's institutional...

  • Page 28
    ... - Asset Management - Columbia Management - Mutual Funds,'' above) as well as variable portfolio funds of other companies. RiverSource variable annuity products in force offer a fixed account investment option with guaranteed minimum interest crediting rates ranging up to 4% at December 31, 2011. In...

  • Page 29
    ... marketing support payments from the affiliates of other companies' funds included as investment options in our RiverSource variable annuity products. Fixed Annuities RiverSource fixed annuity products provide a contractholder with cash value that increases by a fixed or indexed interest rate...

  • Page 30
    ...fixed accounts, the RiverSource Life companies bear the investment risk. More information on the RiverSource Life companies' general accounts is found under ''Business - Our Segments - Asset Management - Columbia Management - Management of Institutional Owned Assets'' above. Variable Universal Life...

  • Page 31
    ... blocks of long term care insurance policies, subject to regulatory approval. Ameriprise Auto & Home Insurance Products We offer personal auto, home and excess personal liability insurance products through IDS Property Casualty and its subsidiary, Ameriprise Insurance Company (the ''Property...

  • Page 32
    ... primarily liable as the direct insurers on all risks reinsured. Generally, we currently reinsure 90% of the death benefit liability related to almost all individual fixed and variable universal life and term life insurance products. As a result, the RiverSource Life companies typically retain and...

  • Page 33
    ..., product offerings and technology and service capabilities and support. Further, our financial advisors compete for clients with a range of other advisors, broker-dealers and direct channels, including wirehouses, regional broker-dealers, independent broker-dealers, insurers, banks, asset managers...

  • Page 34
    ...our products and services, including but not limited to Ameriprise Financial, Columbia Management, RiverSource and Threadneedle. We have in the past and will in the future take action to protect our intellectual property. Regulation Virtually all aspects of our business, including the activities of...

  • Page 35
    ... securities laws and to designate a chief compliance officer. Ameriprise Certificate Company pays dividends to the parent company and is subject to capital requirements under applicable law and understandings with the SEC and the Minnesota Department of Commerce. Ameriprise India Insurance Brokers...

  • Page 36
    ... may not accept deposits or make personal or commercial loans. As a provider of products and services to tax-qualified retirement plans and IRAs, certain aspects of our business, including the activities of our trust company, fall within the compliance oversight of the U.S. Departments of Labor and...

  • Page 37
    ... the activities of our other businesses. Parent Company Regulation Ameriprise Financial is a publicly traded company that is subject to SEC and New York Stock Exchange (''NYSE'') rules and regulations regarding public disclosure, financial reporting, internal controls, and corporate governance. The...

  • Page 38
    ...derived from applicable EU directives and international initiatives adopted in other jurisdictions in which we conduct business. Securities Exchange Act Reports and Additional Information We maintain an Investor Relations website at ir.ameriprise.com, and we make available our annual, quarterly and...

  • Page 39
    ... products have guaranteed minimum crediting rates. Due to the long-term nature of the liabilities associated with certain of our businesses, such as long-term care and fixed universal life with secondary guarantees as well as fixed annuities and guaranteed benefits on variable annuities, sustained...

  • Page 40
    ... us or our financial advisors at will or on relatively short notice. Our clients can also reduce the aggregate amount of managed assets or shift their funds to other types of accounts with different rate structures, for any number of reasons, including investment performance, changes in prevailing...

  • Page 41
    ... insurers currently in receiverships, increasing the risk of triggering guaranty fund assessments. Third party defaults, bankruptcy filings, legal actions and other events may limit the value of or restrict our access and our clients' access to cash and investments. Capital and credit market...

  • Page 42
    reduce risk in banking practices and in securities and derivatives trading, enhance public company corporate governance practices and executive compensation disclosures, and provide greater protections to individual consumers and investors. Certain elements of the Dodd-Frank Act became effective ...

  • Page 43
    ...offer cost-effective and innovative insurance products to our clients. Similarly, the rules governing the capital requirements of financial institutions, both domestic and international, could have an adverse impact on our ability to allocate capital for strategic business purposes, while increasing...

  • Page 44
    ...downturns and corporate malfeasance can increase the number of companies, including those with investment-grade ratings that default on their debt obligations. Default-related declines in the value of our fixed maturity securities portfolio or consumer credit products could cause our net earnings to...

  • Page 45
    ..., investment performance, product features, price, perceived financial strength, claims-paying ability and credit ratings. Our competitors include broker-dealers, banks, asset managers, insurers and other financial institutions. Many of our businesses face competitors that have greater market share...

  • Page 46
    ... affiliated advisors for a significant portion of the sales of our mutual funds, annuities, face-amount certificates, banking and insurance products. The market for these financial advisors is extremely competitive, as are the markets for qualified and skilled portfolio managers, investment managers...

  • Page 47
    ...our financial condition and results of operations in many ways, including: reducing new sales of insurance products, annuities and investment products; adversely affecting our relationships with our affiliated advisors and third-party distributors of our products; materially increasing the number or...

  • Page 48
    ... long term care insurance offerings to policies underwritten fully by unaffiliated third-party insurers, and we have also implemented rate increases on certain in force policies as described in Item 1 of this Annual Report on Form 10-K - ''Business - Our Segments - Protection - RiverSource Insurance...

  • Page 49
    ...underwriting costs that have been deferred on the sale of annuity, life and disability income insurance and, to a lesser extent, marketing and promotional expenses for personal auto and home insurance, and distribution expense for certain mutual fund products. For annuity and universal life products...

  • Page 50
    ... and evolution in the financial markets of increasingly sophisticated products, such as those which incorporate automatic asset re-allocation, long/short trading strategies or multiple portfolios or funds, and business-driven hedging, compliance and other risk management strategies. Any such failure...

  • Page 51
    ... to pay dividends or make other permitted payments. See Item 1 of this Annual Report on Form 10-K - ''Regulation'' as well as the information contained in Part II, Item 7 under the heading ''Management's Discussion and Analysis of Financial Condition and Results of Operations - Liquidity and Capital...

  • Page 52
    ... of operations, cash flows or financial condition. Changes in U.S. federal income or estate tax law could make some of our products less attractive to clients. Many of the products we issue or on which our businesses are based (including both insurance products and non-insurance products) enjoy...

  • Page 53
    ... of, or disclosures pertaining to, mutual funds, annuities, equity and fixed income securities, low priced securities, insurance products, brokerage services, financial advice offerings; trading practices within the Company's asset management business; supervision of the Company's financial advisors...

  • Page 54
    ... mutual funds with allegedly poor performance histories, higher expenses relative to other investment options, and improper fees paid to Ameriprise Financial, Inc. or its subsidiaries. The action also alleges that the Company breached fiduciary duties under ERISA because it used its affiliate...

  • Page 55
    ...Consolidated Financial Statements included in Part II, Item 8 of this Annual Report on Form 10-K. Information regarding our equity compensation plans can be found in Part II, Item 12 of this Annual Report on Form 10-K. Information comparing the cumulative total shareholder return on our common stock...

  • Page 56
    ...and for the five-year period ended December 31, 2011. On April 30, 2010, we acquired the long-term asset management business of Columbia Management Group. Results presented below include the results of this business after the date of acquisition. The selected financial data presented below should be...

  • Page 57
    ... of our U.S. advisor force, and assets in long-term U.S. mutual funds, variable annuities and variable universal life (''VUL'') insurance. We offer financial planning, products and services designed to be used as solutions for our clients' cash and liquidity, asset accumulation, income, protection...

  • Page 58
    ... attributable to Ameriprise Financial per diluted share increased $0.34, or 8%, to $4.61 for the year ended December 31, 2011 compared to $4.27 for the prior year. Operating earnings exclude net realized gains or losses; the market impact on variable annuity guaranteed living benefits, net of hedges...

  • Page 59
    ... 13.2% for the twelve months ended December 31, 2011 compared to 12.9% for the prior year. On April 30, 2010, we acquired the long-term asset management business of Columbia Management Group from Bank of America (the ''Columbia Management Acquisition''). The acquisition, the integration of which is...

  • Page 60
    ... Acquisition Costs and Deferred Sales Inducement Costs For our annuity and life, disability income and long term care insurance products, our DAC and DSIC balances at any reporting date are supported by projections that show management expects there to be adequate premiums or estimated gross profits...

  • Page 61
    ... and an increase in benefits and claims expense from variable annuity guarantees. The following table presents the estimated impact to current period pretax income: Estimated Impact to Pretax Income(1) Decrease in future near and long-term fixed income returns by 100 basis points Decrease...

  • Page 62
    ... benefits and claims related to life, disability income and long term care insurance include liabilities for fixed account values on fixed and variable universal life policies, liabilities for indexed accounts of indexed universal life (''IUL'') products, liabilities for unpaid amounts on reported...

  • Page 63
    ... within benefits, claims, losses and settlement expenses. The changes in fair value of derivatives hedging equity indexed annuities and IUL products are included within interest credited to fixed accounts and the changes in fair value of derivatives hedging stock market certificates are included...

  • Page 64
    ...mutual funds during 2011. We recognized PIA revenue monthly on a 12 month rolling performance basis. We may also receive performance-based incentive fees from hedge funds, Threadneedle Open Ended Investment Companies (''OEICs''), or other structured investments that we manage. The annual performance...

  • Page 65
    ... trading securities and equity method investments, are recognized using the specific identification method on a trade date basis. Premiums Premiums include premiums on property-casualty insurance, traditional life and health (disability income and long term care) insurance and immediate annuities...

  • Page 66
    ... mutual fund products, DAC are generally amortized over fixed periods on a straight-line basis adjusted for redemptions. See ''Deferred Acquisition Costs and Deferred Sales Inducement Costs'' under ''Critical Accounting Policies'' for further information on DAC. Interest and Debt Expense Interest...

  • Page 67
    ... Years Ended December 31, 2011 GAAP Revenues Management and financial advice fees Distribution fees Net investment income Premiums Other revenues Total revenues Banking and deposit interest expense Total net revenues Expenses Distribution expenses Interest credited to fixed accounts Benefits, claims...

  • Page 68
    ... Years Ended December 31, 2011 CIEs Revenues Management and financial advice fees Distribution fees Net investment income Premiums Other revenues Total revenues Banking and deposit interest expense Total net revenues Expenses Distribution expenses Interest credited to fixed accounts Benefits, claims...

  • Page 69
    ...ended December 31, 2011 included a $77 million after-tax charge related to previously disclosed legal expenses and a $14 million after-tax gain on the sale of Securities America. Operating earnings exclude net realized gains or losses; the market impact on variable annuity guaranteed living benefits...

  • Page 70
    ... of business resulting from the Columbia Management Acquisition, as well as higher wrap account fees and variable annuity fees. Wrap account assets increased $5.9 billion, or 6%, to $103.4 billion at December 31, 2011 compared to the prior year due to net inflows. Average variable annuities contract...

  • Page 71
    ... Columbia Management Acquisition, as well as higher advisor compensation from business growth. Interest credited to fixed accounts decreased $56 million, or 6%, to $853 million for the year ended December 31, 2011 compared to $909 million for the prior year driven by lower average variable annuities...

  • Page 72
    ... to noncontrolling interests was 23.8% for the years ended December 31, 2011 and 2010. Our operating effective tax rate was 24.8% for the year ended December 31, 2011, compared to 24.5% for the prior year. It is possible there will be corporate tax reform in the next few years. While impossible...

  • Page 73
    ...the Asset Management segment. In addition to purchases of affiliated and non-affiliated mutual funds and other securities on a stand-alone basis, clients may purchase mutual funds, among other securities, in connection with investment advisory fee-based ''wrap account'' programs or services, and pay...

  • Page 74
    ... table presents the changes in wrap account assets for the years ended December 31: 2011 Beginning balance Net flows Market appreciation (depreciation) and other Ending balance $ (in billions) 97.5 $ 7.3 (1.4) 103.4 $ 2010 81.3 7.6 8.6 97.5 $ Wrap account assets increased $5.9 billion, or 6%, to...

  • Page 75
    ... Management, Annuities and Protection segments. On April 30, 2010, we completed the acquisition of the long-term asset management business of the Columbia Management Group from Bank of America. The acquisition significantly enhanced the capabilities of the Asset Management segment by increasing...

  • Page 76
    ... equity markets. In addition, Threadneedle manages 13 unit trusts, 10 of which invest into the OEICs, 7 property unit trusts and 1 property fund of funds. The following tables present the mutual fund performance of our retail Columbia and Threadneedle funds as of December 31, 2011: Columbia Mutual...

  • Page 77
    ... invest in both equity and fixed income. Aggregated Threadneedle data includes funds on the Threadneedle platform sub-advised by Columbia as well as advisors not affiliated with Ameriprise Financial, Inc. The following tables present the changes in Columbia and Threadneedle managed assets: Market...

  • Page 78
    ... that utilizes Columbia models. While the assets are excluded from managed assets, the movement in assets was neutral to earnings. Columbia net outflows of $14.7 billion in 2011 included $9.0 billion of outflows of low basis point, former parent company assets. Threadneedle managed assets increased...

  • Page 79
    ... of business resulting from the Columbia Management Acquisition, as well the impact of higher average equity market levels on assets, partially offset by net outflows. General and administrative expense increased $123 million, or 9%, to $1.4 billion for the year ended December 31, 2011 compared to...

  • Page 80
    ... expenses of Columbia Management, as well as higher investment spending compared to the prior year, partially offset by lower hedge fund performance compensation. Annuities Our Annuities segment provides variable and fixed annuity products of RiverSource Life companies to retail clients. Prior...

  • Page 81
    ... by lower general account assets due to the implementation of changes to the Portfolio Navigator program in the second quarter of 2010 and lower interest sensitive fixed annuity account balances. Premiums increased $11 million, or 7%, to $161 million for the year ended December 31, 2011 compared to...

  • Page 82
    ... account balances. This segment earns intersegment revenues from fees paid by the Asset Management segment for marketing support and other services provided in connection with the availability of RiverSource Variable Series Trust, Columbia Funds Variable Insurance Trust, Columbia Funds Variable...

  • Page 83
    ... losses in 2011 compared to $29 million in 2010, as well as higher auto liability reserves. In addition, benefits, claims, losses and settlement expenses increased as a result of higher UL claims and an increase in ongoing reserve levels for UL products with secondary guarantees compared to the...

  • Page 84
    ... Ended December 31, 2011 GAAP Revenues Management and financial advice fees Distribution fees Net investment income (loss) Other revenues Total revenues Banking and deposit interest expense Total net revenues Expenses Distribution expenses Interest and debt expense General and administrative expense...

  • Page 85
    ...in anticipation of issuing debt between December 2010 and June 2011. Operating other revenues for 2010 included a $25 million benefit from payments related to the Reserve Funds matter. Total expenses increased $61 million, or 13%, to $535 million for the year ended December 31, 2011 compared to $474...

  • Page 86
    ... Years Ended December 31, 2010 GAAP Revenues Management and financial advice fees Distribution fees Net investment income Premiums Other revenues Total revenues Banking and deposit interest expense Total net revenues Expenses Distribution expenses Interest credited to fixed accounts Benefits, claims...

  • Page 87
    ...billion for the year ended December 31, 2010 compared to $790 million for the prior year driven by improved client activity, market appreciation and net inflows in wrap account assets and variable annuities, as well as improved scale from the Columbia Management Acquisition. The total pretax impacts...

  • Page 88
    ... the Columbia Management Acquisition, market appreciation and net inflows in wrap account assets and variable annuities, as well as increased client activity. Management and financial advice fees increased $1.2 billion, or 48%, to $3.8 billion for the year ended December 31, 2010 compared to...

  • Page 89
    ... the Columbia Management Acquisition, as well as higher advisor compensation from business growth. Interest credited to fixed accounts increased $6 million, or 1%, to $909 million for the year ended December 31, 2010 compared to $903 million for the prior year driven by higher average fixed annuity...

  • Page 90
    ... information by segment: Years Ended December 31, 2010 GAAP Advice & Wealth Management Net revenues Expenses Pretax income (loss) Asset Management Net revenues Expenses Pretax income Annuities Net revenues Expenses Pretax income Protection Net revenues Expenses Pretax income Corporate & Other Net...

  • Page 91
    ... & Wealth Management The following table presents the changes in wrap account assets for the years ended December 31: 2010 Beginning balance Net flows Market appreciation and other Ending balance $ 2009 (in billions) 81.3 $ 62.2 7.6 7.9 8.6 11.2 97.5 $ 81.3 $ Wrap account assets increased $16...

  • Page 92
    ... general and administrative expense, which excludes integration charges, decreased $63 million, or 6%, to $1.1 billion for the year ended December 31, 2010 reflecting cost controls. Asset Management The following tables present the changes in Columbia and Threadneedle managed assets: Market...

  • Page 93
    ...Express Funds investment business. Columbia assets under management were $355.5 billion at December 31, 2010 compared to $149.0 billion a year ago, driven by the Columbia Management Acquisition and market appreciation, partially offset by net outflows. Equity and fixed income investment performance...

  • Page 94
    ... for the year ended December 31, 2010 compared to $1.1 billion for the prior year primarily due to growth in assets from the Columbia Management Acquisition and market appreciation, partially offset by lower hedge fund performance fees. The daily average S&P 500 Index increased 20% compared to the...

  • Page 95
    ... ended December 31, 2010 compared to $2.2 billion for the prior year reflecting increased management fees from higher separate account balances, increased premiums from immediate annuities with life contingencies and higher fees from variable annuity guarantees. Management and financial advice fees...

  • Page 96
    ... higher variable annuity compensation. Interest credited to fixed accounts increased $3 million to $762 million for the year ended December 31, 2010 compared to $759 million for the prior year due to higher average fixed annuity account balances partially offset by a lower average crediting rate on...

  • Page 97
    ...and model changes and an increase in net investment income and premiums. Management and financial advice fees increased $7 million, or 15%, to $54 million for the year ended December 31, 2010 compared to $47 million for the prior year primarily due to higher management fees from VUL separate account...

  • Page 98
    ... and a $16 million reserve increase for higher auto liability claims. In addition, benefits, claims, losses and settlement expenses in 2010 included higher disability income and long-term care insurance claims and higher reserves for UL products with secondary guarantees compared to the prior year...

  • Page 99
    ... of our junior notes in 2009 partially offset by a $25 million benefit from the payments related to the Reserve Funds matter in 2010. Total expenses increased $196 million, or 71%, to $474 million for the year ended December 31, 2010 compared to $278 million for the prior year primarily reflecting...

  • Page 100
    ... by our consolidated property funds, and most investments and cash equivalents. Fair value assumes the exchange of assets or liabilities occurs in orderly transactions. Companies are not permitted to use market prices that are the result of a forced liquidation or distressed sale. We include actual...

  • Page 101
    ... 30, 2010, we closed on the Columbia Management Acquisition and paid $866 million in the second quarter with cash on hand and assumed liabilities of $30 million. Our subsidiaries, Ameriprise Bank, FSB and RiverSource Life Insurance Company (''RiverSource Life''), are members of the Federal Home Loan...

  • Page 102
    ...-dealer subsidiary, American Enterprise Investment Services Inc. (''AEIS''); our Auto and Home insurance subsidiary, IDS Property Casualty Insurance Company (''IDS Property Casualty''), doing business as Ameriprise Auto & Home Insurance; our transfer agent subsidiary, Columbia Management Investment...

  • Page 103
    ... 31: 2011 RiverSource Life(1) Ameriprise Bank, FSB ACC Columbia Management Investment Advisers, LLC Columbia Management Investment Services Corporation Threadneedle Ameriprise Trust Company Securities America Financial Corporation(2) IDS Property Casualty Ameriprise Advisor Capital, LLC AMPF Holding...

  • Page 104
    ...fund payments and calls of Available-for-Sale securities decreased $1.8 billion compared to the prior year. We paid cash of $866 million for the Columbia Management Acquisition in 2010 and received cash of $150 million in 2011 for the sale of Securities America. Net cash used in investing activities...

  • Page 105
    ...cash inflows of $3.1 billion for the prior year primarily due to a decrease in fixed annuity deposits and the transfer of general account assets to separate accounts from the implementation of changes to the Portfolio Navigator program. Proceeds from sales of investment certificates and banking time...

  • Page 106
    ... relating to asset flows, mass affluent and affluent client acquisition strategy, client retention and growth of our client base, financial advisor productivity, retention, recruiting and enrollments, acquisition integration, general and administrative costs; consolidated tax rate, return of capital...

  • Page 107
    ... spread income generated on our annuities, banking, brokerage client cash balances, and face amount certificate products and UL insurance products, the value of DAC and DSIC assets, the values of liabilities for guaranteed benefits associated with our variable annuities and the values of derivatives...

  • Page 108
    ... Interest Rate Increase 100 Basis Points Asset-based management and distribution fees(1) Variable annuity riders: GMWB GMAB DAC and DSIC amortization(4) Total variable annuity riders Fixed annuities, fixed portion of variable annuities and fixed insurance products Brokerage client cash balances...

  • Page 109
    ... account portion of annuity and insurance products of RiverSource Life companies and their investment portfolios. We guarantee an interest rate to the holders of these products. Premiums and deposits collected from clients are primarily invested in fixed rate securities to fund the client credited...

  • Page 110
    ... these rates from time to time based on prevailing economic and business conditions. We earn revenue to fund the interest paid from interest-earning assets or fees from off-balance sheet deposits at FDIC insured institutions, which are indexed to short-term interest rates. In general, the change in...

  • Page 111
    ...certificates. Equity Price Risk - Stock Market Certificates As with the equity indexed annuities, the equity-linked return to investors creates equity price risk exposure. We seek to minimize this exposure with purchased futures and call spreads that replicate what we must credit to client accounts...

  • Page 112
    ...: Ameriprise Financial, Inc. Reports of Independent Registered Public Accounting Firms ...Consolidated Statements of Operations - Years ended December 31, 2011, 2010 and 2009 ...Consolidated Balance Sheets - December 31, 2011 and 2010 ...Consolidated Statements of Cash Flows - Years ended December...

  • Page 113
    Report of Independent Registered Public Accounting Firm To the Board of Directors and Shareholders of Ameriprise Financial, Inc.: In our opinion, the accompanying consolidated balance sheet and the related consolidated statement of operations, equity, and of cash flows present fairly, in all ...

  • Page 114
    ... Public Accounting Firm The Board of Directors and Shareholders of Ameriprise Financial, Inc. We have audited the accompanying consolidated balance sheet of Ameriprise Financial, Inc. (the Company) as of December 31, 2010, and the related consolidated statements of operations, equity, and cash...

  • Page 115
    ... Ended December 31, 2011 Revenues Management and financial advice fees Distribution fees Net investment income Premiums Other revenues Total revenues Banking and deposit interest expense Total net revenues Expenses Distribution expenses Interest credited to fixed accounts Benefits, claims, losses...

  • Page 116
    ... consolidated investment entities Total assets Liabilities and Equity Liabilities: Future policy benefits and claims Separate account liabilities Customer deposits Short-term borrowings Long-term debt Accounts payable and accrued expenses Other liabilities Liabilities held for sale Total liabilities...

  • Page 117
    ... Purchase of land, buildings, equipment and software Acquisitions Proceeds from sale of business Change in consumer banking loans and credit card receivables, net Other, net Net cash used in investing activities Cash Flows from Financing Activities Investment certificates and banking time deposits...

  • Page 118
    ... - Change in defined benefit plans - Foreign currency translation adjustment - Total comprehensive income Dividends to shareholders Noncontrolling interests investments in subsidiaries Distributions to noncontrolling interests Repurchase of common shares Share-based compensation plans Balances at...

  • Page 119
    ... to receive the entity's returns) or has equity investors that do not provide sufficient financial resources for the entity to support its activities. A VIE is required to be assessed for consolidation under two models: • If the VIE is a money market fund or is an investment company, or has the...

  • Page 120
    ... These accounting estimates reflect the best judgment of management and actual results could differ. Cash and Cash Equivalents Cash equivalents include time deposits and other highly liquid investments with original maturities of 90 days or less. Investments Available-for-Sale Securities Available...

  • Page 121
    ... rate is compared to the amortized cost basis of the security. The significant inputs to cash flow projections consider potential debt restructuring terms, projected cash flows available to pay creditors and the Company's position in the debtor's overall capital structure. For structured investments...

  • Page 122
    ...primarily funds held for the exclusive benefit of variable annuity contractholders and variable life insurance policyholders, who assume the related investment risk. Income and losses on separate account assets accrue directly to the contractholder or policyholder and are not reported in the Company...

  • Page 123
    ...separate account assets are offset by changes in the related separate account liabilities. The Company receives investment management fees, mortality and expense risk fees, guarantee fees and cost of insurance charges from the related accounts. Included in separate account liabilities are investment...

  • Page 124
    ... reflected in benefits, claims, losses and settlement expenses. Deferred Acquisition Costs DAC represent the costs of acquiring new business, principally direct sales commissions and other distribution and underwriting costs that have been deferred on the sale of annuity and insurance products and...

  • Page 125
    ... rates. Management must also make assumptions to project maintenance expenses associated with servicing the Company's annuity and insurance businesses during the DAC amortization period. The client asset value growth rates are the rates at which variable annuity and variable universal life...

  • Page 126
    ... Company also assumes life insurance and fixed annuity business from other insurers in limited circumstances. Reinsurance premiums received and benefits paid are accounted for consistently with the basis used in accounting for the policies from which risk is reinsured and consistently with the terms...

  • Page 127
    ... when it is reported. Liabilities for estimates of benefits that will become payable on future claims on term life, whole life and health insurance policies are based on the net level premium method, using anticipated premium payments, mortality and morbidity rates, policy persistency and interest...

  • Page 128
    ... when earned. Distribution fees also include amounts received under marketing support arrangements for sales of mutual funds and other companies' products, such as through the Company's wrap accounts, as well as surrender charges on fixed and variable universal life insurance and annuities. 113

  • Page 129
    ... balance throughout its term. Realized gains and losses on securities, other than trading securities and equity method investments, are recognized using the specific identification method on a trade date basis. Premiums Premiums include premiums on property-casualty insurance, traditional life...

  • Page 130
    ... security prior to recovery of its cost basis. The standard requires separate presentation of both the credit and noncredit portions of other-than-temporary impairments on the financial statements and additional disclosures. This standard is effective for interim and annual reporting periods ending...

  • Page 131
    ...' salaries and benefits directly related to time spent performing specified acquisition activities (that is, underwriting, policy issuance and processing, medical and inspection, and sales force contract selling) for a contract that has actually been acquired, (iii) other costs related to the...

  • Page 132
    ... of changes in Level 3 assets and liabilities held by consolidated investment entities measured at fair value on a recurring basis: Corporate Debt Securities Balance, January 1, 2011 Total gains (losses) included in: Net income Other comprehensive income Purchases Sales Issues Settlements Transfers...

  • Page 133
    ... rates. The Company also utilizes market comparables obtained from a third party appraisal service in developing its fair value assumptions. Management reviews the discounted cash flows and assumptions to ensure that the valuation was performed in accordance with applicable independence, appraisal...

  • Page 134
    ... from syndicated loans, bonds and structured investments is recorded based on contractual rates in net investment income. Gains and losses related to changes in the fair value of investments and gains and losses on sales of investments are recorded in net investment income. Interest expense on debt...

  • Page 135
    ... The following is a summary of Ameriprise Financial investments: December 31, 2011 Available-for-Sale securities, at fair value Commercial mortgage loans, net Policy loans Other investments Total $ (in millions) 34,505 $ 2,589 742 939 38,775 $ 2010 32,619 2,577 733 826 36,755 $ The following...

  • Page 136
    ... 31, 2011 and 2010, fixed maturity securities comprised approximately 89% of Ameriprise Financial investments. Rating agency designations are based on the availability of ratings from Nationally Recognized Statistical Rating Organizations (''NRSROs''), including Moody's Investors Service (''Moody...

  • Page 137
    ... in current period net income due to sales of Available-for-Sale securities and due to the reclassification of noncredit other-than-temporary impairment losses to credit losses and (iii) other items primarily consisting of adjustments in asset and liability balances, such as DAC, DSIC, benefit...

  • Page 138
    2009 related to credit losses on non-agency residential mortgage backed securities, corporate debt securities primarily in the financial services and gaming industries and other structured investments. Available-for-Sale securities by contractual maturity at December 31, 2011 were as follows: ...

  • Page 139
    ...the acquisition date. Credit Quality Information Nonperforming loans, which are generally loans 90 days or more past due, were $20 million and $15 million as of December 31, 2011 and 2010, respectively. All other loans were considered to be performing. Commercial Mortgage Loans The Company reviews...

  • Page 140
    ... 31, 2011 15% 2 18 2 26 32 5 100% 2010 13% 2 18 2 29 32 4 100% Syndicated Loans The Company's syndicated loan portfolio is diversified across industries and issuers. The primary credit indicator for syndicated loans is whether the loans are performing in accordance with the contractual terms of the...

  • Page 141
    ...of NY) for term life insurance and 2002 (2003 for RiverSource Life of NY) for individual fixed and variable universal life insurance. Policies issued prior to these dates are not subject to these same reinsurance levels. Generally, the maximum amount of life insurance risk retained by the Company is...

  • Page 142
    ..., 2010, the Company acquired the long-term asset management business of Columbia Management from Bank of America. The acquisition has enhanced the scale and performance of the Company's retail mutual fund and institutional asset management businesses. The Company recorded the assets and liabilities...

  • Page 143
    ...2011, 2010 and 2009, management reviewed and updated the DAC and DSIC valuation assumptions for the Company's products. As part of its third quarter 2010 process, management extended the projection periods used for its annuity products and revised client asset value growth rates assumed for variable...

  • Page 144
    ...and security of the principal invested. Payout contracts guarantee a fixed income payment for life or the term of the contract. The Company generally invests the proceeds from the annuity payments in fixed rate securities. The Company may hedge the interest rate risks related to fixed annuities with...

  • Page 145
    ... invest in property, stocks, bonds and cash. The investments are selected by the clients and are based on the level of risk they are willing to assume. All investment performance, net of fees, is passed through to the investors. The value of the liabilities represents the value of the units in issue...

  • Page 146
    ...account balances by asset type for variable annuity contracts providing guaranteed benefits: December 31, 2011 (in millions) Mutual funds: Equity Bond Other Total mutual funds $ 30,738 23,862 1,969 $ 56,569 $ 32,310 22,319 2,208 $ 56,837 2010 No gains or losses were recognized on assets transferred...

  • Page 147
    ... these interest rate risks. Certain investment certificate products have returns tied to the performance of equity markets. The Company guarantees the principal for purchasers who hold the certificate for the full 52-week term and purchasers may participate in increases in the stock market based on...

  • Page 148
    ... rates of outstanding debt of Ameriprise Financial were as follows: Outstanding Balance December 31, 2011 Senior notes due 2015 Senior notes due 2019 Senior notes due 2020 Senior notes due 2039 Junior subordinated notes due 2066 Municipal bond inverse floater certificates due 2021 Total long-term...

  • Page 149
    ... issued against this facility were $2 million as of December 31, 2011. 14. Fair Values of Assets and Liabilities GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date...

  • Page 150
    Assets Cash Equivalents Cash equivalents include highly liquid investments with original maturities of 90 days or less. Actively traded money market funds are measured at their net asset value (''NAV'') and classified as Level 1. The Company's remaining cash equivalents are classified as Level 2 and...

  • Page 151
    ... policy benefits and claims. The Company uses various Black-Scholes calculations to determine the fair value of the embedded derivative liability associated with the provisions of its equity indexed annuity and indexed universal life products. The inputs to these calculations are primarily market...

  • Page 152
    ... the balances of assets and liabilities of Ameriprise Financial measured at fair value on a recurring basis: December 31, 2011 Level 1 Assets Cash equivalents Available-for-Sale securities: Corporate debt securities Residential mortgage backed securities Commercial mortgage backed securities Asset...

  • Page 153
    ... Foreign government bonds and obligations Common stocks Other debt obligations Total Available-for-Sale securities Trading securities Separate account assets Investments segregated for regulatory purposes Other assets: Interest rate derivative contracts Equity derivative contracts Credit derivative...

  • Page 154
    ... changes in Level 3 assets and liabilities of Ameriprise Financial measured at fair value on a recurring basis: Available-for-Sale Securities Corporate Debt Securities Balance, January 1, 2011 Total gains (losses) included in: Net income Other comprehensive income Purchases Sales Issues Settlements...

  • Page 155
    ... by discounting estimated cash flows and incorporating adjustments for prepayment, administration expenses, severity and credit loss estimates, with discount rates based on the Company's estimate of current market conditions. Loans held for sale are measured at the lower of cost or market and...

  • Page 156
    ... Deposits The fair value of investment certificate reserves is determined by discounting cash flows using discount rates that reflect current pricing for assets with similar terms and characteristics, with adjustments for early withdrawal behavior, penalty fees, expense margin and the Company...

  • Page 157
    ... derivatives: Interest rate Interest rate lock commitments Equity EIA EIA embedded derivatives IUL IUL embedded derivatives Stock market certificates Stock market certificates embedded derivatives Ameriprise Financial Franchise Advisor Deferred Compensation Plan Seed money Foreign exchange Foreign...

  • Page 158
    ...Interest rate Interest rate lock commitments Equity GMDB EIA EIA embedded derivatives IUL IUL embedded derivatives Stock market certificates Stock market certificates embedded derivatives Seed money Ameriprise Financial Franchise Advisor Deferred Compensation Plan Foreign exchange Seed money Foreign...

  • Page 159
    ... used to hedge the risk of increasing interest rates on forecasted fixed premium product sales. The Company previously designated and accounted for as cash flow hedges interest rate swaps to hedge certain asset-based distribution fees. During the second quarter of 2011, the Company reclassified...

  • Page 160
    ... instruments Fixed rate debt Location of Gain Recorded into Income Interest and debt expense 2011 $ 41 2010 (in millions) $ 36 Credit Risk Credit risk associated with the Company's derivatives is the risk that a derivative counterparty will not perform in accordance with the terms of the applicable...

  • Page 161
    ... 52 13 158 $ Includes $19 million of expense related to the Threadneedle equity incentive plan. $ 178 For the years ended December 31, 2011, 2010 and 2009, total income tax benefit recognized by the Company related to share-based compensation expense was $53 million, $67 million and $63 million...

  • Page 162
    ... than 100% of the current fair market value of a share of the Company's common stock on the grant date and a maximum term of 10 years. Stock options granted generally vest ratably over three to four years. Vesting of option awards may be accelerated based on age and length of service. Stock options...

  • Page 163
    ... employees of the Company, the expense is adjusted each period based on the stock price of the Company's common stock up to the vesting date. For the years ended December 31, 2011, 2010 and 2009, expense related to share-based units awarded under the Franchise Advisor Deferral Plan was $38 million...

  • Page 164
    ...settled in cash and/or shares of the Company's common stock according to the award's terms. As of December 31, 2011, there were approximately 0.3 million units outstanding under the Employee Advisor Deferral Plan, of which nil were fully vested. Threadneedle Equity Incentive Plan On an annual basis...

  • Page 165
    ... Franchise Advisor Deferral Plan. See Note 15 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...

  • Page 166
    ... for asset managers. The Company has four broker-dealer subsidiaries, American Enterprise Investment Services Inc., Ameriprise Financial Services, Inc., RiverSource Distributors, Inc. and Columbia Management Investment Distributors, Inc. The broker-dealers are subject to the net capital requirements...

  • Page 167
    ... assets Deferred income tax liabilities: Deferred acquisition costs Investment related Deferred sales inducement costs Net unrealized gains on Available-for-Sale securities Depreciation expense Intangible assets Other Gross deferred income tax liabilities Net deferred income tax liabilities $ 2010...

  • Page 168
    ... Company's capital loss carryforwards and tax credit carryforwards will be utilized before they expire. A reconciliation of the beginning and ending amount of gross unrecognized tax benefits (expense) were as follows: 2011 Balance at January 1 Additions based on tax positions related to the current...

  • Page 169
    ... Net income tax provision $ 77 (15) (28) (1) 33 2010 (in millions) $ 167 8 (2) (6) $ 167 $ 2009 753 6 10 15 784 $ $ 21. Retirement Plans and Profit Sharing Arrangements Defined Benefit Plans Pension Plans The Company's U.S. non-advisor employees are generally eligible for the Ameriprise Financial...

  • Page 170
    ... in the Consolidated Balance Sheets, which equal the funded status of the Company's pension plans: December 31, 2011 Benefit liability Benefit asset Net amount recognized $ $ (in millions) (189) $ 5 (184) $ 2010 (162) 20 (142) The Company complies with the minimum funding requirements in all...

  • Page 171
    ...their projection of asset class return expectations and long-term inflation assumptions. The Company also considered historical returns on the plans' assets. Discount rates are based on yields available on high-quality corporate bonds that would generate cash flows necessary to pay the benefits when...

  • Page 172
    ...31, 2010 Actual return on plan assets: Relating to assets still held at the reporting date Purchases Sales Balance at December 31, 2011 $ Real Estate Investment Trusts (in millions) $ 5 1 2 8 1 2 - 11 $ $ - - 9 9 - 11 (8) 12 Hedge Funds The Company's pension plans expect to make benefit payments to...

  • Page 173
    ... rates Healthcare cost increase rates: Following year Decreasing to the year 2016 4.15% 7.00 5.00 2010 4.90% 7.50 5.00 Discount rates are based on yields available on high-quality corporate bonds that would generate cash flows necessary to pay the benefits when due. A one percentage-point change...

  • Page 174
    ... mortgage loan commitments Consumer lines of credit Affordable housing partnerships Total funding commitments $ (in millions) 19 $ 730 1,685 267 2,701 $ 2010 22 525 1,533 188 2,268 $ The Company's life and annuity products all have minimum interest rate guarantees in their fixed accounts. As...

  • Page 175
    ... of, or disclosures pertaining to, mutual funds, annuities, equity and fixed income securities, low priced securities, insurance products, brokerage services, financial advice offerings; trading practices within the Company's asset management business; supervision of the Company's financial advisors...

  • Page 176
    ... mutual funds with allegedly poor performance histories, higher expenses relative to other investment options, and improper fees paid to Ameriprise Financial, Inc. or its subsidiaries. The action also alleges that the Company breached fiduciary duties under ERISA because it used its affiliate...

  • Page 177
    ...sold through the Company's institutional sales force. Threadneedle retail products are primarily provided through third parties. Retail products include mutual funds and variable product funds underlying insurance and annuity separate accounts. Institutional asset management services are designed to...

  • Page 178
    ... account balances. This segment earns intersegment revenues from fees paid by the Asset Management segment for marketing support and other services provided in connection with the availability of RiverSource Variable Series Trust, Columbia Funds Variable Insurance Trust, Columbia Funds Variable...

  • Page 179
    ...tax Net income Less: Net loss attributable to noncontrolling interests Net income attributable to Ameriprise Financial Year Ended December 31, 2010 Advice & Wealth Asset Management Management Revenue from external customers Intersegment revenue Total revenues Banking and deposit interest expense Net...

  • Page 180
    ...Ameriprise Financial, Inc. common shareholders: Basic Income from continuing operations Income (loss) from discontinued operations Net income Diluted Income from continuing operations Income (loss) from discontinued operations Net income Weighted average common shares outstanding: Basic Diluted Cash...

  • Page 181
    ...as of the end of the period covered by this report. Based upon that evaluation, our company's Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures were effective at a reasonable level of assurance as of December 31, 2011. Changes in Internal...

  • Page 182
    ...Senior Vice President and General Manager of Banking, Brokerage and Managed Products of AEFC since April 2002. Prior thereto, he served as Senior Vice President and Head, Business Transformation, Global Financial Services of American Express from March 2001 until April 2002. Mr. Sweeney is currently...

  • Page 183
    ... Financial Services at American Express. John R. Woerner - President - Insurance and Chief Strategy Officer Mr. Woerner (43) has been our President - Insurance and Chief Strategy Officer since February 2008. Prior to his current role, he was Senior Vice President - Strategy and Business Development...

  • Page 184
    ...,425 shares of common stock issuable under the Amended Franchise Advisor Deferred Compensation Plan. Descriptions of our equity compensation plans can be found in Note 16 to our Consolidated Financial Statements included in Part II, Item 8 of this Annual Report on Form 10-K. Information concerning...

  • Page 185
    ... information set forth under the heading ''Items to be Voted on by Shareholders - Item 3 - Ratification of Audit Committee's Selection of Independent Registered Public Accountants for 2012 - Independent Registered Public Accountant Fees''; '' - Services to Associated Organizations''; and '' -Policy...

  • Page 186
    ... and stead, to sign and affix the undersigned's name as such director and/or officer of said corporation to an Annual Report on Form 10-K or other applicable form, and all amendments thereto, to be filed by such corporation with the Securities and Exchange Commission, Washington, D.C., under the...

  • Page 187
    ...: February 24, 2012 By /s/ Jeffrey Noddle Jeffrey Noddle Director Date: February 24, 2012 By /s/ H. Jay Sarles H. Jay Sarles Director Date: February 24, 2012 By /s/ Robert F. Sharpe, Jr. Robert F. Sharpe, Jr. Director Date: February 24, 2012 By /s/ William H. Turner William H. Turner Director...

  • Page 188
    ... Registered Public Accounting Firm on Financial Statement Schedule To the Board of Directors and Shareholders of Ameriprise Financial, Inc.: Our audit of the consolidated financial statements and of the effectiveness of internal control over financial reporting referred to in our report dated...

  • Page 189
    ... consolidated balance sheet of Ameriprise Financial, Inc. (the Company) as of December 31, 2010, and the related consolidated statements of operations, equity, and cash flows for each of the two years in the period ended December 31, 2010, and have issued our report thereon dated February 28, 2011...

  • Page 190
    Schedule I - Condensed Financial Information of Registrant (Parent Company Only) Table of Contents Condensed Statements of Operations ...Condensed Balance Sheets ...Condensed Statements of Cash Flows ...Notes to Condensed Financial Information of Registrant ...F-4 F-5 F-6 F-7 F-3

  • Page 191
    ... (Parent Company Only) Years Ended December 31, 2011 Revenues Management and financial advice fees Distribution fees Net investment income Other revenues Total revenues Banking and deposit interest expense Total net revenues Expenses Distribution expenses Interest and debt expense General and...

  • Page 192
    ... paid-in capital Retained earnings Treasury shares, at cost (81,814,591 and 54,668,152 shares, respectively) Accumulated other comprehensive income, net of tax, including amounts applicable to equity investments in subsidiaries Total shareholders' equity Total liabilities and shareholders' equity...

  • Page 193
    ...Return of capital from subsidiaries Acquisitions Proceeds from sale of business Repayment of loans from subsidiaries Issuance of loans to subsidiaries Other, net Net cash provided by (used in) investing activities Cash Flows from Financing Activities Repayments of debt Dividends paid to shareholders...

  • Page 194
    ...of Ameriprise Financial included $504 million and $397 million of repurchase agreements, respectively, which are accounted for as secured borrowings. • 4. Guarantees, Commitments and Contingencies The Parent Company is the guarantor for operating leases of IDS Property Casualty Insurance Company...

  • Page 195
    ...2, 2011). Ameriprise Financial Form of Award Certificate - Performance Cash Unit Plan Award (incorporated by reference to Exhibit 10.2 of the Quarterly Report on Form 10-Q, File No. 1-32525, filed on May 2, 2011). Ameriprise Financial Performance Share Unit Plan Supplement to the Long-Term Incentive...

  • Page 196
    ... Advisor Group Deferred Compensation Plan, as amended and restated effective January 1, 2010 (incorporated by reference to Exhibit 10.18 of the Annual Report on Form 10-K, File No. 1-32525, filed on February 24, 2010). Credit Agreement, dated as of November 22, 2011, among Ameriprise Financial...

  • Page 197
    ... The following graph compares the cumulative five-year total return for shareholders of Ameriprise Financial, inc. common stock with the cumulative total returns of the S&P 500 index and the S&P Financials index. The graph tracks the performance of a $100 investment in our common stock and in each...

  • Page 198
    ...to our Annual Report on Form 10-K for the year ended dec. 31, 2011. Shareholder and Investor Inquiries Written shareholder inquiries may be sent to: Computershare Shareholder Services P.O. Box 43078 Providence, Ri 02940 or to: Corporate Secretary's Office 1098 Ameriprise Financial Center minneapolis...

  • Page 199
    ... & Wealth management Products and Services William F. Truscott CEO, U.S. Asset management and President, Annuities John R. Woerner President insurance and Chief Strategy Officer * mr. Henderson is not an executive officer of Ameriprise Financial for purposes of Section 16 of the Securities Exchange...

  • Page 200
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