Ameriprise 2012 Annual Report Download - page 103

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.
Financing Activities
Net cash used in financing activities increased $5.2 billion to $6.3 billion for the year ended December 31, 2012
compared to $1.1 billion for the prior year primarily due to a $5.8 billion decrease in cash from changes in other banking
deposits, partially offset by a $0.9 billion increase in cash from changes in investment certificates and banking time
deposits driven by higher proceeds from investment certificates. Net cash outflows from changes in other banking deposits
were $4.6 billion in 2012 reflecting the liquidation of banking deposits related to the Ameriprise Bank transition. Net cash
inflows from changes in other banking deposits were $1.2 billion in 2011 as banking deposits were higher to support
growth in consumer bank loans. Cash used for the repurchase of common stock decreased $114 million compared to the
prior year, which was offset by a $112 million decrease in cash from changes in short-term borrowings compared to the
prior year. Cash used for dividends paid to shareholders increased $93 million compared to the prior year.
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. Net 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 short-term borrowings 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.
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,
2012 were as follows:
2018 and
Total 2013 2014-2015 2016-2017 Thereafter
(in millions)
Balance Sheet
Long-term debt(1) $ 2,244 $ — $ 700 $ — $ 1,544
Insurance and annuities(2) 38,011 2,154 5,092 4,447 26,318
Investment certificates(3) 3,504 3,343 161 — —
Deferred premium options(4) 2,353 373 668 527 785
Affordable housing partnerships(5) 144 109 24 1 10
Off-Balance Sheet
Lease obligations 472 83 146 112 131
Purchase obligations(6) 1,428 271 392 314 451
Interest on long-term debt(7) 2,133 139 273 199 1,522
Total $ 50,289 $ 6,472 $ 7,456 $ 5,600 $ 30,761
(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 $30.7 billion at December 31, 2012 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 $2.3 billion as of December 31, 2012. 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, 2012.
Many of the purchase agreements giving rise to these purchase obligations include termination clauses that may require payment of
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