Ameriprise 2014 Annual Report Download - page 107

Operating Activities
Net cash provided by operating activities increased $1.0 billion to $2.4 billion for the year ended December 31, 2014
compared to $1.4 billion for the prior year primarily due to an $861 million increase in cash flows related to investment
properties of CIEs due to lower purchases and higher sales of investment properties and an increase in cash from changes
in our freestanding derivatives and related collateral, as well as an increase in fee revenue partially offset by related
expenses and a $187 million increase in income taxes paid, net.
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 and cash flow changes related to
CIEs. 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 outflows related to investment properties of
CIEs increased $447 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.
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 decreased $87 million to $715 million for the year ended December 31, 2014
compared to $802 million for the prior year primarily due to a $1.7 billion decrease in cash used for purchases of
Available-for-Sale securities, partially offset by a $560 million decrease in proceeds from sales and maturities, sinking fund
payments and calls of Available-for-Sale securities, a $587 million decrease in proceeds from sales, maturities and
repayments of investments by consolidated investment entities and a $121 million increase in purchases of investments
by consolidated investment entities.
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 an $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.
Financing Activities
Net cash used in financing activities increased $1.4 billion to $1.7 billion for the year ended December 31, 2014
compared to $306 million for the prior year. Cash outflows from policyholder account balances increased $662 million
compared to the prior year primarily due to higher surrenders and other benefits. Cash outflows related to investment
certificates increased $248 million compared to the prior year due to higher maturities, withdrawals and cash surrenders
partially offset by higher proceeds from additions. Cash outflows from changes in short-term borrowings increased
$299 million compared to the prior year as we reduced our borrowings from the FHLB during the year ended
December 31, 2014.
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 nil 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.
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. The table excludes obligations of CIEs as they
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