Ameriprise 2014 Annual Report Download - page 67

Per Diluted Share
Years Ended Years Ended
December 31, December 31,
2014 2013 2014 2013
(in millions, except per share amounts)
Net income $ 2,000 $ 1,475
Less: Net income attributable to noncontrolling interests 381 141
Net income attributable to Ameriprise Financial 1,619 1,334 $ 8.30 $ 6.44
Less: Loss from discontinued operations, net of tax (2) (3) (0.01) (0.02)
Net income from continuing operations attributable to Ameriprise Financial 1,621 1,337 8.31 6.46
Add: Integration/restructuring charges, net of tax(1) — 9 — 0.04
Add: Market impact on variable annuity guaranteed benefits, net of tax(1) 61 111 0.31 0.53
Add: Market impact on indexed universal life benefits, net of tax(1) 4 8 0.02 0.04
Less: Net realized gains, net of tax(1) 24 5 0.12 0.02
Operating earnings $ 1,662 $ 1,460 $ 8.52 $ 7.05
Weighted average common shares outstanding:
Basic 191.6 203.2
Diluted 195.0 207.1
(1) Calculated using the statutory tax rate of 35%.
The following table reconciles the trailing twelve months’ sum of net income attributable to Ameriprise Financial to
operating earnings and the five-point average of quarter-end equity to operating equity:
Years Ended
December 31,
2014 2013
(in millions)
Net income attributable to Ameriprise Financial $ 1,619 $ 1,334
Less: Loss from discontinued operations, net of tax (2) (3)
Net income from continuing operations attributable to Ameriprise Financial 1,621 1,337
Less: Adjustments(1) (41) (123)
Operating earnings $ 1,662 $ 1,460
Total Ameriprise Financial, Inc. shareholders’ equity $ 8,270 $ 8,582
Less: AOCI, net of tax 734 821
Total Ameriprise Financial, Inc. shareholders’ equity, excluding AOCI 7,536 7,761
Less: Equity impacts attributable to CIEs 311 333
Operating equity $ 7,225 $ 7,428
Return on equity from continuing operations, excluding AOCI 21.5% 17.2%
Operating return on equity, excluding AOCI(2) 23.0% 19.7%
(1) Adjustments reflect the trailing twelve months’ sum of after-tax net realized gains/losses; the market impact on variable annuity
guaranteed benefits, net of hedges and related DSIC and DAC amortization; the market impact on indexed universal life benefits, net
of hedges and the related DAC amortization, unearned revenue amortization, and the reinsurance accrual; and integration and
restructuring charges. After-tax is calculated using the statutory tax rate of 35%.
(2) Operating return on equity, excluding AOCI, is calculated using the trailing twelve months of earnings excluding the after-tax net
realized gains/losses; market impact on variable annuity guaranteed benefits, net of hedges and related DSIC and DAC amortization;
the market impact on indexed universal benefits, net of hedges and the related DAC amortization, unearned revenue amortization,
and the reinsurance accrual; integration and restructuring charges; and discontinued operations in the numerator, and Ameriprise
Financial shareholders’ equity, excluding AOCI and the impact of consolidating investment entities using a five-point average of
quarter-end equity in the denominator. After-tax is calculated using the statutory rate of 35%.
Critical Accounting Policies
The accounting and reporting policies that we use affect our Consolidated Financial Statements. Certain of our accounting
and reporting policies are critical to an understanding of our consolidated results of operations and financial condition and,
in some cases, the application of these policies can be significantly affected by the estimates, judgments and assumptions
made by management during the preparation of our Consolidated Financial Statements. The accounting and reporting
policies we have identified as fundamental to a full understanding of our consolidated results of operations and financial
condition are described below. See Note 2 to our Consolidated Financial Statements for further information about our
accounting policies.
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