Ameriprise 2014 Annual Report Download - page 182

The Company or one or more of its subsidiaries files income tax returns in the U.S. federal jurisdiction, and various state
and foreign jurisdictions. The IRS has completed its field examination of the 1997 through 2011 tax returns. However, for
federal income tax purposes, these years, except for 2007, continue to remain open as a consequence of certain
unagreed-upon issues. The IRS is currently auditing the Company’s U.S. Income Tax Returns for 2012 and 2013. The
Company’s or certain of its subsidiaries’ state income tax returns are currently under examination by various jurisdictions
for years ranging from 1997 through 2012 and remain open for all years after 2012.
The items comprising other comprehensive income (loss) are presented net of the following income tax provision (benefit)
amounts:
Years Ended December 31,
2014 2013 2012
(in millions)
Net unrealized securities gains (losses) $ 69 $ (344) $ 238
Net unrealized derivatives gains — — 4
Defined benefit plans (13) 24 (9)
Foreign currency translation (18) 3 7
Net income tax provision (benefit) $ 38 $ (317) $ 240
22. Retirement Plans and Profit Sharing Arrangements
Defined Benefit Plans
Pension Plans
The Company’s U.S. non-advisor employees are generally eligible for the Ameriprise Financial Retirement Plan (the
‘‘Retirement Plan’’), a noncontributory defined benefit plan which is a qualified plan under the Employee Retirement
Income Security Act of 1974, as amended (‘‘ERISA’’). Funding of costs for the Retirement Plan complies with the
applicable minimum funding requirements specified by ERISA and is held in a trust. The Retirement Plan is a cash balance
plan by which the employees’ accrued benefits are based on notional account balances, which are maintained for each
individual. Each pay period these balances are credited with an amount equal to a percentage of eligible compensation as
defined by the Retirement Plan (which includes, but is not limited to, base pay, performance based incentive pay,
commissions, shift differential and overtime). Prior to March 1, 2010, the percentage ranged from 2.5% to 10% based on
employees’ age plus years of service. Effective March 1, 2010, the percentage ranges from 2.5% to 5% based on
employees’ years of service. Employees eligible for the plan at the time of the change will continue to receive the same
percentage they were receiving until the new schedule becomes more favorable. Employees’ balances are also credited
with a fixed rate of interest that is updated each January 1 and is based on the average of the daily five-year U.S. Treasury
Note yields for the previous October 1 through November 30, with a minimum crediting rate of 5%. Employees are fully
vested after three years of service or upon retirement at or after age 65, disability or death while employed. Employees
have the option to receive annuity payments or a lump sum payout of vested balance at termination or retirement. The
Retirement Plan’s year-end is September 30.
In addition, the Company sponsors the Ameriprise Financial Supplemental Retirement Plan (the ‘‘SRP’’), an unfunded
non-qualified deferred compensation plan subject to Section 409A of the Internal Revenue Code. This plan is for certain
highly compensated employees to replace the benefit that cannot be provided by the Retirement Plan due to IRS limits.
The SRP generally parallels the Retirement Plan but offers different payment options.
Most employees outside the U.S. are covered by local retirement plans, some of which are funded, while other employees
receive payments at the time of retirement or termination under applicable labor laws or agreements.
The components of the net periodic benefit cost for all pension plans were as follows:
Years Ended December 31,
2014 2013 2012
(in millions)
Service cost $43 $46 $41
Interest cost 28 23 24
Expected return on plan assets (38) (33) (30)
Amortization of prior service costs (1) (1) (1)
Amortization of net loss 7 11 7
Other 324
Net periodic benefit cost $ 42 $ 48 $ 45
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