EX-12 6 a2196525zex-12.htm EXHIBIT 12

Exhibit 12

 

Computation in Support of Ratio of Earnings to Fixed Charges

Ameriprise Financial, Inc.

 

 

 

Years Ended December 31,

 

 

 

2009

 

2008

 

2007

 

2006

 

2005

 

 

 

(dollars in millions)

 

Earnings:

 

 

 

 

 

 

 

 

 

 

 

Pretax income (loss) before discontinued operations and accounting change

 

$

905

 

$

(371

)

$

1,016

 

$

797

 

$

745

 

Interest and debt expense(1)

 

137

 

114

 

133

 

136

 

87

 

Interest portion of rental expense(2)

 

38

 

28

 

31

 

29

 

26

 

Amortization of capitalized interest

 

3

 

3

 

1

 

—

 

1

 

Undistributed (income) loss from equity investees

 

25

 

28

 

1

 

(1

)

—

 

Minority interest in pretax losses

 

—

 

(54

)

(8

)

—

 

—

 

Minority interest in pretax income of subsidiaries that have incurred fixed charges

 

14

 

—

 

—

 

50

 

—

 

Total earnings before banking and deposit interest expense and interest credited to fixed accounts(a)

 

1,122

 

(252

)

1,174

 

1,011

 

859

 

Banking and deposit interest expense and interest credited to fixed accounts

 

1,069

 

977

 

1,104

 

1,210

 

1,275

 

Total earnings(c)

 

$

2,191

 

$

725

 

$

2,278

 

$

2,221

 

$

2,134

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed charges:

 

 

 

 

 

 

 

 

 

 

 

Interest and debt expense(1)

 

$

137

 

$

114

 

$

133

 

$

136

 

$

87

 

Interest component of rental expense(2)

 

38

 

28

 

31

 

29

 

26

 

Capitalized interest

 

3

 

8

 

5

 

—

 

—

 

Total fixed charges before banking and deposit interest and interest credited to fixed accounts(b)

 

178

 

150

 

169

 

165

 

113

 

Banking and deposit interest expense and interest credited to fixed accounts

 

1,069

 

977

 

1,104

 

1,210

 

1,275

 

Total fixed charges(d)

 

$

1,247

 

$

1,127

 

$

1,273

 

$

1,375

 

$

1,388

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of earnings to fixed charges before banking and deposit interest expense and interest credited to fixed accounts(a/b)

 

6.3

 

NM

(3)

6.9

 

6.1

 

7.6

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of earnings to fixed charges(c/d)

 

1.8

 

NM

(3)

1.8

 

1.6

 

1.5

 

 

NM: Not Meaningful.

(1)               Interest on non-recourse debt of consolidated limited partnerships and VIEs is included in interest and debt expense provided in the table above. This interest is recorded in banking and deposit interest expense on the Consolidated Statements of Operations.

(2)               The interest portion of rental expense represents one-third of rental expense relating to operating leases.

(3)               Earnings were insufficient to cover fixed charges for the year ended December 31, 2008 by $402 million primarily due to negative market impacts on Results of Operations, including $762 million in pretax impairments on Available-for-Sale securities.