Ameriprise 2013 Annual Report Download - page 106

Financing Activities
Net cash used in financing activities decreased $6.0 billion to $306 million for the year ended December 31, 2013
compared to $6.3 billion for the prior year. Cash flows for the prior year included a $4.6 billion decrease from the net
change in other banking deposits reflecting the liquidation of banking deposits related to the Ameriprise Bank transition.
Cash proceeds from issuance of debt, net of issuance costs, was $744 million for the year ended December 31, 2013
compared to none in the prior year. These increases in cash were offset by $350 million of cash used to redeem senior
notes due November 2015. Cash outflows for dividends paid to shareholders increased $96 million compared to the prior
year. Cash used for the repurchase of common stock, which includes stock repurchases and shares surrendered to cover
income tax obligations of holders of share-based compensation awards, increased $202 million compared to the prior year.
Cash flows related to CIEs increased $1.5 billion compared to the prior year primarily due to issuance of additional CIE
debt.
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 $937 million 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.
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,
2013 were as follows:
2019 and
Total 2014 2015-2016 2017-2018 Thereafter
(in millions)
Balance Sheet
Long-term debt(1) $ 2,644 $ — $ 350 $ — $ 2,294
Insurance and annuities(2) 39,849 3,009 6,166 4,568 26,106
Investment certificates(3) 3,984 3,827 157 — —
Deferred premium options(4) 2,069 378 654 436 601
Affordable housing partnerships(5) 137 73 59 1 4
Off-Balance Sheet
Lease obligations 425 84 141 112 88
Purchase obligations(6) 1,248 264 374 301 309
Interest on long-term debt(7) 2,171 141 260 242 1,528
Total $ 52,527 $ 7,776 $ 8,161 $ 5,660 $ 30,930
(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 $29.0 billion at December 31, 2013 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 $2.0 billion as of December 31, 2013. See
Note 16 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, we are required to fund a specific amount on
a stated date provided there are no defaults under the agreement. For event specific obligations, we are 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, 2013.
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 us 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, 2013.
In addition to the contractual commitments outlined in the table above, we periodically fund the employees’ defined
benefit plans. We contributed $48 million and $45 million in 2013 and 2012, respectively, to our pension plans. In 2014,
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