Ameriprise 2012 Annual Report Download - page 62

Per Diluted Share
Years Ended Years Ended
December 31, December 31,
2012 2011 2012 2011
(in millions, except per share amounts)
Net income $ 901 $ 1,010
Less: Net loss attributable to noncontrolling interests (128) (106)
Net income attributable to Ameriprise Financial 1,029 1,116 $ 4.62 $ 4.53
Less: Loss from discontinued operations, net of tax (2) (60) (0.01) (0.24)
Net income from continuing operations attributable to Ameriprise Financial 1,031 1,176 4.63 4.77
Add: Integration/restructuring charges, net of tax(1) 46 62 0.21 0.25
Add: Market impact on variable annuity guaranteed living benefits, net of tax(1) 173 40 0.77 0.16
Less: Net realized gains, net of tax(1) 5 4 0.02 0.01
Operating earnings $ 1,245 $ 1,274 $ 5.59 $ 5.17
Weighted average common shares outstanding:
Basic 218.7 241.4
Diluted 222.8 246.3
(1) Calculated using the statutory tax rate of 35%.
The following table reconciles net income from continuing operations attributable to Ameriprise Financial to operating
earnings and the five-point average of quarter-end equity to operating equity:
Years Ended
December 31,
2012 2011
(in millions)
Net income from continuing operations attributable to Ameriprise Financial $ 1,031 $ 1,176
Add: Integration/restructuring charges, net of tax(1) 46 62
Add: Market impact on variable annuity guaranteed living benefits, net of tax(1) 173 40
Less: Net realized gains, net of tax(1) 54
Operating earnings $ 1,245 $ 1,274
Total Ameriprise Financial, Inc. shareholders’ equity $ 9,071 $ 9,169
Less: Assets and liabilities held for sale —30
Less: Accumulated other comprehensive income, net of tax 1,001 701
Total Ameriprise Financial, Inc. shareholders’ equity from continuing operations, excluding AOCI 8,070 8,438
Less: Equity impacts attributable to CIEs 397 478
Operating equity $ 7,673 $ 7,960
Return on equity from continuing operations, excluding AOCI 12.8% 13.9%
Operating return on equity, excluding AOCI(2) 16.2% 16.0%
(1) Calculated using the statutory tax rate of 35%.
(2) Operating return on equity, excluding accumulated other comprehensive income (‘‘AOCI’’), is calculated using the trailing twelve
months of earnings excluding the after-tax net realized gains/losses; market impact on variable annuity guaranteed living benefits, net
of hedges and related DSIC and DAC amortization; integration/restructuring charges; and discontinued operations in the numerator,
and Ameriprise Financial shareholders’ equity, excluding AOCI; the impact of consolidating investment entities; and the assets and
liabilities held for sale using a five-point average of quarter-end equity in the denominator.
Critical Accounting Policies
The accounting and reporting policies that we use affect our Consolidated Financial Statements. Certain of our accounting
and reporting policies are critical to an understanding of our consolidated results of operations and financial condition and,
in some cases, the application of these policies can be significantly affected by the estimates, judgments and assumptions
made by management during the preparation of our Consolidated Financial Statements. The accounting and reporting
policies we have identified as fundamental to a full understanding of our consolidated results of operations and financial
condition are described below. See Note 2 to our Consolidated Financial Statements for further information about our
accounting policies.
Valuation of Investments
The most significant component of our investments is our Available-for-Sale securities, which we carry at fair value within
our Consolidated Balance Sheets. The fair value of our Available-for-Sale securities at December 31, 2012 was primarily
45