Ameriprise 2012 Annual Report Download - page 173

The components of income tax provision attributable to continuing operations were as follows:
Years Ended December 31,
2012 2011 2010
(in millions)
Current income tax
Federal $ 229 $ 250 $ (224)
State and local 25 21 13
Foreign 31 23 32
Total current income tax 285 294 (179)
Deferred income tax
Federal 37 90 483
State and local 15 1 (5)
Foreign (2) (8) (6)
Total deferred income tax 50 83 472
Total income tax provision $ 335 $ 377 $ 293
The geographic sources of pretax income from continuing operations were as follows:
Years Ended December 31,
2012 2011 2010
(in millions)
United States $ 1,161 $ 1,350 $ 1,305
Foreign 77 97 164
Total $ 1,238 $ 1,447 $ 1,469
The principal reasons that the aggregate income tax provision attributable to continuing operations is different from that
computed by using the U.S. statutory rate of 35% were as follows:
Years Ended December 31,
2012 2011 2010
Tax at U.S. statutory rate 35.0% 35.0% 35.0%
Changes in taxes resulting from:
Dividend exclusion (5.9) (8.5) (4.6)
Tax-exempt interest income (1.7) (1.3) (1.1)
Foreign tax credits, net of addback (3.2) (2.2) (1.7)
Low income housing credits (3.0) (1.1) (1.6)
Taxes applicable to prior years (2.5) 0.2 (3.2)
State taxes, net of federal benefit 2.5 1.0 0.2
Net income (loss) attributable to noncontrolling interests 3.6 2.6 (3.9)
Other, net 2.3 0.4 0.8
Income tax provision 27.1% 26.1% 19.9%
The increase in the Company’s effective tax rate in 2012 compared to 2011 primarily reflects higher state taxes and the
impact of the out-of-period correction of tax related to securities lending activities, partially offset by increased tax credits
and the impact of the out-of-period correction related to the Company’s deferred tax balance review. The increase in the
Company’s effective tax rate in 2011 compared to 2010 primarily reflects the change in the noncontrolling interests which
is included in pretax income, partially offset by a favorable audit settlement related to the dividends received deduction.
Accumulated earnings of certain foreign subsidiaries, which totaled $85 million at December 31, 2012, are intended to be
permanently reinvested outside the United States. Accordingly, U.S. federal taxes, which would have aggregated $1 million,
have not been provided on those earnings.
Deferred income tax assets and liabilities result from temporary differences between the assets and liabilities measured for
GAAP reporting versus income tax return purposes. The significant components of the Company’s deferred income tax
assets and liabilities, which are included net within other assets or other liabilities on the Consolidated Balance Sheets,
were as follows:
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