Ameriprise 2014 Annual Report Download - page 106

‘‘extraordinary dividends.’’ Extraordinary dividends also require advance notice to the Minnesota Department of Commerce, and are
subject to potential disapproval. For dividends exceeding these thresholds, RiverSource Life provided notice to the Minnesota
Department of Commerce and received responses indicating that it did not object to the payment of these dividends.
(2) The dividend capacity for ACC is based on capital held in excess of regulatory requirements.
(3) The dividend capacity for IDS Property Casualty is based on the lesser of (1) 10% of the previous year-end capital and surplus or
(2) the greater of (a) net income (excluding realized gains) of the previous year or (b) the aggregate net income of the previous three
years excluding realized gains less any dividends paid within the first two years of the three-year period. Dividends that, together with
the amount of other distributions made within the preceding 12 months, exceed this statutory limitation are referred to as
‘‘extraordinary dividends’’ and require advance notice to the Office of the Commissioner of Insurance of the State of Wisconsin, the
primary state regulator of IDS Property Casualty, and are subject to potential disapproval.
The following table presents the cash dividends paid or return of capital to the parent holding company, net of cash capital
contributions made by the parent holding company for the following subsidiaries for the years ended December 31:
2014 2013 2012
(in millions)
RiverSource Life $ 900 $ 800 $ 865
Ameriprise Bank, FSB(1) 8 130 213
ACC 5 (10) (26)
Columbia Management Investment Advisers, LLC 362 280 170
Columbia Management Investment Services Corporation — 10 —
Threadneedle(2) —7394
Ameriprise Trust Company 34 (8) (4)
IDS Property Casualty(3) — (50) —
Ameriprise Holdings, Inc. ——23
Ameriprise Advisor Capital, LLC (31) (37) (50)
RiverSource Distributors, Inc. 10 — 2
Ameriprise Captive Insurance Company 15 — —
AMPF Holding Corporation 519 340 295
Total $ 1,822 $ 1,528 $ 1,582
(1) In January 2013, we completed the conversion of our federal savings bank subsidiary, Ameriprise Bank, FSB, to a limited powers
national trust bank. In connection with the discontinuance of the Ameriprise Bank’s deposit-taking and lending activities and its
conversion to a limited powers trust bank, we applied for and received approval from the OCC and the Federal Reserve System for the
Bank to pay to the parent holding company a dividend of $250 million, which was paid in the fourth quarter of 2012. Ameriprise
Bank paid an additional $130 million dividend in January 2013 upon final approval to convert Ameriprise Bank, FSB to Ameriprise
National Trust Bank.
(2) During the year ended December 31, 2014, Threadneedle paid a $152 million dividend to the parent holding company consisting of
a note receivable.
(3) During the year ended December 31, 2014, the parent holding company made a non-cash contribution of $51 million to IDS
Property Casualty consisting of securities. In 2015, the parent holding company made cash contributions of $175 million to IDS
Property Casualty.
Dividends Paid to Shareholders and Share Repurchases
We paid regular quarterly dividends to our shareholders totaling $435 million and $411 million for the years ended
December 31, 2014 and 2013, respectively. On January 28, 2015, we announced a quarterly dividend of $0.58 per
common share. The dividend will be paid on February 27, 2015 to our shareholders of record at the close of business on
February 9, 2015.
In October 2012, our Board of Directors authorized an expenditure of up to $2.0 billion for the repurchase of shares of our
common stock through 2014. In April 2014, our Board of Directors authorized an expenditure of up to an additional
$2.5 billion for the repurchase of shares of our common stock through April 28, 2016. As of December 31, 2014, the
Company had $1.8 billion remaining under its share repurchase authorization. We intend to fund share repurchases
through existing working capital, future earnings and other customary financing methods. The share repurchase programs
do 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 programs may be made in the open market, through privately negotiated transactions or block trades or other
means. During the year ended December 31, 2014, we repurchased a total of 11.8 million shares of our common stock
at an average price of $116.69 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.
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