Ameriprise 2011 Annual Report Download - page 104

Dividends Paid to Shareholders and Share Repurchases
We paid regular quarterly cash dividends to our shareholders totaling $212 million and $183 million for the year ended
December 31, 2011 and 2010, respectively. On December 7, 2011, our Board of Directors declared a quarterly cash
dividend of $0.28 per common share. The dividend will be paid on February 24, 2012 to our shareholders of record at the
close of business on February 10, 2012.
On May 11, 2010, we announced that our board of directors authorized an expenditure of up to $1.5 billion for the
repurchase of shares of our common stock through the date of our 2012 annual shareholders meeting. On June 15,
2011, we announced that our Board of Directors authorized an additional expenditure of up to $2.0 billion for the
repurchase of shares of our common stock through June 28, 2013. We intend to fund share repurchases through existing
working capital, future earnings and other customary financing methods. The share repurchase program does not require
the purchase of any minimum number of shares, and depending on market conditions and other factors, these purchases
may be commenced or suspended at any time without prior notice. Acquisitions under the share repurchase program may
be made in the open market, through privately negotiated transactions or block trades or other means. During the year
ended December 31, 2011, we repurchased a total of 27.9 million shares of our common stock at an average price of
$52.15 per share. As of December 31, 2011, we had $1.5 billion remaining under our share repurchase authorizations.
In both 2011 and 2010, we extinguished $14 million principal amount of our junior notes due 2066. In the future, we
may from time to time seek to retire or purchase additional outstanding debt through cash purchases in the open market,
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.
Cash Flows
Cash flows of CIEs are reflected in our cash flows provided by (used in) operating activities, investing activities and
financing activities. Cash held by CIEs is not available for general use by Ameriprise Financial, nor is Ameriprise Financial
cash available for general use by its CIEs. As such, the operating, investing and financing cash flows of the CIEs have no
impact to the change in cash and cash equivalents.
Operating Activities
Net cash provided by operating activities for the year ended December 31, 2011 increased $331 million to $2.2 billion
compared to $1.8 billion for the year ended December 31, 2010. Net cash provided by operating activities for the year
ended December 31, 2011 included a negative impact of $188 million related to CIEs compared to a positive impact of
$148 million in the prior year. In 2011, operating cash increased $738 million due to an increase in net cash collateral
held related to derivative instruments compared to an increase of $111 million in the prior year. Income taxes paid
increased $309 million in 2011 compared to the prior year. Net cash provided by operating activities in 2011 included an
increase in cash generated from higher fee revenue, partially offset by higher payments for distribution expenses.
Net cash provided by operating activities for the year ended December 31, 2010 was $1.8 billion compared to net cash
used in operating activities of $1.3 billion for the year ended December 31, 2009. Net cash provided by operating
activities for the year ended December 31, 2010 included a positive impact of $148 million related to CIEs compared to a
negative impact of $453 million in the prior year. In 2009, operating cash flows were reduced by $1.9 billion due to a
decrease in net cash collateral held related to derivative instruments compared to an increase of $111 million in 2010.
The increase in operating cash compared to the prior year was also driven by higher fee revenue, partially offset by higher
advisor compensation.
Investing Activities
Our investing activities primarily relate to our Available-for-Sale investment portfolio. Further, this activity is significantly
affected by the net flows of our investment certificate, fixed annuity and UL products reflected in financing activities.
Net cash used in investing activities was $1.1 billion for the year ended December 31, 2011 compared to $734 million
for the year ended December 31, 2010. Cash used to purchase Available-for-Sale securities decreased $266 million
compared to the prior year and cash proceeds from sales and maturities, sinking 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 decreased $5.6 billion to $734 million for the year ended December 31, 2010
compared to $6.4 billion for the year ended December 31, 2009, primarily due to a $10.3 billion decrease in cash used
for purchases of Available-for-Sale securities, partially offset by a $3.6 billion reduction in proceeds from sales and
maturities, sinking fund payments and calls of Available-for-Sale securities. We also paid cash of $866 million for the
Columbia Management Acquisition in 2010.
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