Ameriprise 2015 Annual Report Download - page 105

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.
Operating Activities
Net cash provided by operating activities increased $173 million to $2.6 billion for the year ended December 31, 2015
compared to $2.4 billion for the prior year primarily due to a $118 million increase in cash from changes in other
investments primarily related to trading securities and a $139 million reduction of income taxes paid, net, partially offset
by a $67 million increase in interest paid on CIE debt.
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.
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 $201 million to $514 million for the year ended December 31, 2015
compared to $715 million for the prior year primarily reflecting a $520 million decrease in purchases of investments by
CIEs and a $131 million increase in cash flows related to other investments, partially offset by a $435 million increase in
purchases of Available-for Sale securities.
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 CIEs and a $121 million increase in purchases of investments by CIEs.
Financing Activities
Net cash used in financing activities increased $661 million to $2.3 billion for the year ended December 31, 2015
compared to $1.7 billion for the prior year. Net cash inflows related to investment certificates increased $407 million
compared to the prior year due to higher proceeds from additions, partially offset by higher maturities, withdrawals and
cash surrenders. Cash outflows from surrenders and other benefits of policyholder account balances increased
$274 million compared to the prior year primarily reflecting higher lapse rates. Cash outflows related to the repayment of
long-term debt increased $209 million compared to the prior year primarily due to the maturity of our senior notes in
2015. Cash flows for the prior year reflected a $543 million increase in cash from issuance of our unsecured senior notes
due October 2024 and a $300 million decrease in cash related to short-term borrowings as we reduced our borrowings
from the FHLB. Cash outflows related to the repurchase of common shares increased $164 million compared to the prior
year. Net cash inflows related to changes in debt of CIEs decreased $217 million compared to the prior year due to a
decrease in borrowings of CIEs, partially offset by lower repayments of debt of CIEs.
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. Net cash inflows related to investment
certificates decreased $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.
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