Ameriprise 2014 Annual Report Download - page 180

subject to supervision under various laws and regulations enforced by the OCC, including those related to capital adequacy,
liquidity and conflicts of interest.
21. Income Taxes
The components of income tax provision attributable to continuing operations were as follows:
Years Ended December 31,
2014 2013 2012
(in millions)
Current income tax
Federal $ 248 $ 549 $ 229
State and local 33 24 25
Foreign 36 37 31
Total current income tax 317 610 285
Deferred income tax
Federal 202 (102) 37
State and local 30 (10) 15
Foreign (4) (6) (2)
Total deferred income tax 228 (118) 50
Total income tax provision $ 545 $ 492 $ 335
The geographic sources of pretax income from continuing operations were as follows:
Years Ended December 31,
2014 2013 2012
(in millions)
United States $ 1,858 $ 1,640 $ 1,161
Foreign 689 330 77
Total $ 2,547 $ 1,970 $ 1,238
The principal reasons that the aggregate income tax provision attributable to continuing operations is different from that
computed by using the U.S. statutory rate of 35% were as follows:
Years Ended December 31,
2014 2013 2012
Tax at U.S. statutory rate 35.0% 35.0% 35.0%
Changes in taxes resulting from:
Net income (loss) attributable to noncontrolling interests (5.2) (2.5) 3.6
Dividend exclusion (4.7) (5.1) (5.9)
Low income housing tax credits (2.1) (2.7) (3.0)
Foreign tax credits, net of addback (2.0) (0.9) (3.2)
State taxes, net of federal benefit 1.6 0.5 2.5
Tax-exempt interest income (0.7) (0.9) (1.7)
Taxes applicable to prior years (0.2) — (2.5)
Other, net (0.3) 1.6 2.3
Income tax provision 21.4% 25.0% 27.1%
The decrease in the Company’s effective tax rate in 2014 compared to 2013 is primarily the result of an increase in net
income attributable to noncontrolling interests and an increase in foreign tax credits, as well as a $17 million benefit in
2014 related to the completion of an Internal Revenue Service (‘‘IRS’’) audit. The decrease in the Company’s effective tax
rate in 2013 compared to 2012 is primarily the result of lower state taxes as well as two prior period corrections. During
2012, the Company completed a review of its deferred tax balances. As part of the review, the Company discovered tax
return errors for prior years which were corrected. The net impact of the review resulted in a decrease of income tax
expense of $16 million. Additionally in 2012, the Company made a correction for a tax item, which resulted in a
$32 million decrease to net income attributable to Ameriprise Financial. The Company had received incomplete data from
a third party service provider for securities lending activities that resulted in the miscalculation of the Company’s dividend
received deduction and foreign tax credit. The Company resolved the data issue and stopped the securities lending that
negatively impacted its tax position.
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