Ameriprise 2013 Annual Report Download - page 105

On October 24, 2012, we announced that our Board of Directors authorized an expenditure of up to an additional
$2.0 billion for the repurchase of shares of our common stock through 2014. As of December 31, 2013, we had
$649 million remaining under this share repurchase authorization. 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, 2013, we repurchased a total of 17.8 million shares of our common stock at an average price of
$83.06 per share.
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 decreased $141 million to $1.4 billion for the year ended December 31, 2013
compared to $1.5 billion for the prior year primarily reflecting higher income taxes paid, a decrease in cash related to
brokerage deposits and cash flow changes related to CIEs, partially offset by an increase in cash related to changes in
restricted and segregated cash and investments. In addition, cash activity related to our freestanding derivatives and
related collateral resulted in an increase in cash compared to the prior year. Income taxes paid, net increased
$174 million compared to the prior year primarily due to higher income, as well as lower tax refunds attributable to prior
years. Cash related to changes in restricted and segregated cash and investments increased $777 million compared to the
prior year, which was partially offset by a $620 million decrease in cash related to changes in brokerage deposits. Cash
outflows related to investment properties of CIEs and other operating assets and liabilities of CIEs, net increased
$588 million compared to the prior year primarily due to higher purchases of investment properties, which was partially
offset by a $283 million increase in cash related to changes in cash held by CIEs compared to the prior year.
Net cash provided by operating activities decreased $673 million to $1.5 billion for the year ended December 31, 2012
compared to $2.2 billion for the prior year driven by the change in net cash collateral held related to derivative
instruments, partially offset by lower income taxes paid compared to the prior year. Operating cash decreased $418 million
in 2012 due to a decrease in net cash collateral held related to derivative instruments compared to an increase of
$738 million in the prior year due to the change in market value of our net over-the-counter derivatives after master
netting arrangements. See Note 16 to our Consolidated Financial Statements for further information on our derivative
instruments and collateral arrangements. Income taxes paid, net decreased $153 million for the year ended
December 31, 2012 compared to the prior year primarily due to a tax refund received in 2012 resulting from an
overpayment of taxes in 2011. In addition, operating cash flows increased compared to the prior year due to higher fee
income, partially offset by higher distribution expenses, as well as changes in payables and receivables primarily driven by
timing of settlements.
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 universal life products reflected in financing
activities.
Net cash used in investing activities was $802 million for the year ended December 31, 2013 compared to net cash
provided by investing activities of $4.4 billion for the prior year. The decrease in cash of $5.2 billion compared to the prior
year was primarily due to a $823 million increase in purchases of Available-for-Sale securities, a $3.3 billion decrease in
proceeds from sales and maturities, sinking fund payments and calls of Available-for-Sale securities and a $1.5 billion
increase in purchases of investments by consolidated investment entities, partially offset by a $288 million increase in
proceeds from sales, maturities and repayments of investments by consolidated investment entities.
Net cash provided by investing activities was $4.4 billion for the year ended December 31, 2012 compared to net cash
used in investing activities of $1.1 billion for the prior year. The increase in cash of $5.5 billion compared to the prior year
was primarily due to a $2.3 billion decrease in purchases of Available-for-Sale securities and a $2.6 billion increase in
proceeds from sales and maturities, sinking fund payments and calls of Available-for-Sale securities driven by the
liquidation of the majority of Ameriprise Bank’s investment portfolio in 2012, as well as a $326 million increase in cash
resulting from lower funding and purchase of mortgage loans in 2012 and a $225 million increase in cash from changes
in credit card receivables, which were sold to Barclays in 2012. See our discussion of the conversion of Ameriprise Bank
to a limited powers national trust bank in our Results of Operations section above.
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