Ameriprise 2015 Annual Report Download - page 179

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,
2015 2014 2013
Tax at U.S. statutory rate 35.0% 35.0% 35.0%
Changes in taxes resulting from:
Net income attributable to noncontrolling interests (2.0) (5.2) (2.5)
Dividend exclusion (6.7) (4.7) (5.1)
Low income housing tax credits (3.0) (2.1) (2.7)
Foreign tax credits, net of addback (2.1) (2.0) (0.9)
State taxes, net of federal benefit — 1.6 0.5
Tax-exempt interest income — (0.7) (0.9)
Taxes applicable to prior years — (0.2) —
Other, net 0.1 (0.3) 1.6
Income tax provision 21.3% 21.4% 25.0%
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.
Accumulated earnings of certain foreign subsidiaries, which totaled $272 million at December 31, 2015, are intended to
be permanently reinvested outside the United States. Accordingly, U.S. federal taxes, which would have aggregated
$63 million, have not been provided on those earnings.
Deferred income tax assets and liabilities result from temporary differences between the assets and liabilities measured for
GAAP reporting versus income tax return purposes. The significant components of the Company’s deferred income tax
assets and liabilities, which are included net within other assets or other liabilities on the Consolidated Balance Sheets,
were as follows:
December 31,
2015 2014
(in millions)
Deferred income tax assets
Liabilities for policyholder account balances, future policy benefits and claims $ 1,391 $ 1,292
Deferred compensation 384 350
Investment related 118 83
Postretirement benefits 56 —
Loss carryovers and tax credit carryforwards —25
Other 87 102
Gross deferred income tax assets 2,036 1,852
Less: valuation allowance 11 20
Total deferred income tax assets 2,025 1,832
Deferred income tax liabilities
Deferred acquisition costs 730 738
Net unrealized gains on Available-for-Sale securities 233 424
Depreciation expense 169 131
Deferred sales inducement costs 125 128
Intangible assets 113 96
Goodwill 66 —
Other 18 101
Gross deferred income tax liabilities 1,454 1,618
Net deferred income tax assets $ 571 $ 214
Included in the Company’s deferred income tax assets are tax benefits related to state net operating losses of $16 million,
net of federal benefit, which will expire beginning December 31, 2016. Based on analysis of the Company’s tax position,
management believes it is more likely than not that the Company will not realize certain state deferred tax assets and
state net operating losses and therefore a valuation allowance of $11 million has been established.
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