Ameriprise 2011 Annual Report Download - page 105

Financing Activities
Net cash used in financing activities was $1.1 billion for the year ended December 31, 2011 compared to $1.3 billion for
the year ended December 31, 2010. Net cash inflows related to policyholder and contractholder account values were
$106 million for the year ended December 31, 2011 compared to net cash outflows of $1.1 billion for the prior year. Net
cash outflows related to policyholder and contractholder account values in the prior year included net transfers to separate
accounts of $1.3 billion primarily due to the implementation of changes to the Portfolio Navigator program. Cash outflows
related to investment certificates and banking time deposits decreased $472 million due to lower maturities, withdrawals
and cash surrenders compared to the prior year. Cash provided by other banking deposits increased $368 million
compared to the prior year. Net cash inflows related to changes in repurchase agreements decreased $290 million
compared to the prior year. Cash proceeds from issuance of debt, net of issuance costs, was $744 million in 2010
compared to nil in 2011. Cash used for the repurchase of common stock increased $913 million for the year ended
December 31, 2011 compared to the prior year.
Net cash used in financing activities was $1.3 billion for the year ended December 31, 2010 compared to net cash
provided by financing activities of $4.5 billion for the year ended December 31, 2009. Net cash outflows related to
policyholder and contractholder account values were $1.1 billion for the year ended December 31, 2010 compared to net
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 deposits decreased $1.4 billion compared to the prior
year primarily due to the run-off of certificate rate promotions, partially offset by a $1.3 billion decrease in maturities,
withdrawals and cash surrenders. Cash provided by other banking deposits decreased $345 million compared to the prior
year. Cash received due to issuance of debt, net of repayments, increased $449 million for the year ended December 31,
2010 compared to the prior year. In 2010, net cash received related to repurchase agreements was $397 million. In
2009, we received cash of $869 million from the issuance of common stock. Cash used for the repurchase of common
stock increased $571 million for the year ended December 31, 2010 compared to the prior year.
Contractual Commitments
The contractual obligations identified in the table below include both our on and off-balance sheet transactions that
represent material expected or contractually committed future obligations. Payments due by period as of December 31,
2011 were as follows:
2017 and
Total 2012 2013-2014 2015-2016 Thereafter
(in millions)
Balance Sheet:
Long-term debt(1) $ 2,244 $ — $ — $ 700 $ 1,544
Insurance and annuities(2) 48,653 2,582 5,587 5,834 34,650
Investment certificates(3) 2,771 2,554 217 — —
Deferred premium options(4) 2,531 372 673 561 925
Affordable housing partnerships(5) 267 168 96 1 2
Off-Balance Sheet:
Lease obligations 608 97 171 134 206
Purchase obligations(6) 493 154 188 85 66
Interest on long-term debt(7) 2,273 139 278 233 1,623
Total $ 59,840 $ 6,066 $ 7,210 $ 7,548 $ 39,016
(1) See Note 13 to our Consolidated Financial Statements for more information about our long-term debt.
(2) These scheduled payments are represented by reserves of approximately $31.2 billion at December 31, 2011 and are based on
interest credited, mortality, morbidity, lapse, surrender and premium payment assumptions. Actual payment obligations may differ if
experience varies from these assumptions. Separate account liabilities have been excluded as associated contractual obligations
would be met by separate account assets.
(3) The payments due by year are based on contractual term maturities. However, contractholders have the right to redeem the
investment certificates earlier and at their discretion subject to surrender charges, if any. Redemptions are most likely to occur in
periods of substantial increases in interest rates.
(4) The fair value of these commitments included on the Consolidated Balance Sheets was $2.4 billion as of December 31, 2011. See
Note 15 to our Consolidated Financial Statements for more information about our deferred premium options.
(5) Affordable housing partnership commitments are related to investments in low income housing tax credit partnerships. Call dates for
the obligations presented are either date or event specific. For date specific obligations, the Company is required to fund a specific
amount on a stated date provided there are no defaults under the agreement. For event specific obligations, the Company is required
to fund a specific amount of its capital commitment when properties in a fund become fully stabilized. For event specific obligations,
the estimated call date of these commitments is used in the table above.
(6) Purchase obligations include the minimum contractual amounts by period under contracts that were in effect at December 31, 2011.
Many of the purchase agreements giving rise to these purchase obligations include termination clauses that may require payment of
termination fees if the agreements are terminated by the Company without cause prior to their stated expiration; however, the table
reflects the amounts to be paid assuming the contracts are not terminated.
(7) Interest on debt was estimated based on rates in effect as of December 31, 2011.
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