Ameriprise 2015 Annual Report Download - page 68

Per Diluted Share
Years Ended Years Ended
December 31, December 31,
2015 2014 2015 2014
(in millions, except per share amounts)
Net income $ 1,687 $ 2,000
Less: Net income attributable to noncontrolling interests 125 381
Net income attributable to Ameriprise Financial 1,562 1,619 $ 8.48 $ 8.30
Less: Loss from discontinued operations, net of tax — (2) — (0.01)
Net income from continuing operations attributable to Ameriprise Financial 1,562 1,621 8.48 8.31
Add: Integration/restructuring charges, net of tax(1) 3 — 0.02 —
Add: Market impact on variable annuity guaranteed benefits, net of tax(1) 139 61 0.75 0.31
Add: Market impact on indexed universal life benefits, net of tax(1) 1 4 0.01 0.02
Add: Market impact of hedges on investments, net of tax(1) 14 — 0.08 —
Less: Net realized investment gains, net of tax(1) 3 24 0.02 0.12
Operating earnings $ 1,716 $ 1,662 $ 9.32 $ 8.52
Weighted average common shares outstanding:
Basic 181.7 191.6
Diluted 184.2 195.0
(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,
2015 2014
(in millions)
Net income attributable to Ameriprise Financial $ 1,562 $ 1,619
Less: Loss from discontinued operations, net of tax — (2)
Net income from continuing operations attributable to Ameriprise Financial 1,562 1,621
Less: Adjustments(1) (154) (41)
Operating earnings $ 1,716 $ 1,662
Total Ameriprise Financial, Inc. shareholders’ equity $ 7,808 $ 8,270
Less: AOCI, net of tax 516 734
Total Ameriprise Financial, Inc. shareholders’ equity, excluding AOCI 7,292 7,536
Less: Equity impacts attributable to CIEs 216 311
Operating equity $ 7,076 $ 7,225
Return on equity from continuing operations, excluding AOCI 21.4% 21.5%
Operating return on equity, excluding AOCI(2) 24.3% 23.0%
(1) Adjustments reflect the trailing twelve months’ sum of after-tax net realized investment gains/losses, net of DSIC and DAC
amortization, unearned revenue amortization and the reinsurance accrual; 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; the market impact of hedges to offset interest
rate change on unrealized gains or losses for certain investments; 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 investment gains/losses, net of DSIC and DAC amortization, unearned revenue amortization and the reinsurance accrual;
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; the market impact of hedges to offset interest rate change on unrealized gains or losses for certain investments; 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 and Estimates
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 and estimates we have identified as fundamental to a full understanding of our consolidated results of operations
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