Common Share Repurchases

6 Months Ended

Jun. 30, 2011

Common Share Repurchases

Common Share Repurchases

18.  Common Share Repurchases

In May 2010, the Company’s Board of Directors authorized the expenditure of up to $1.5 billion for the repurchase of the Company’s common stock through the date of its 2012 annual shareholders meeting. In June 2011, the Company’s Board of Directors authorized an additional expenditure of up to $2.0 billion for the repurchase of the Company’s common stock through June 28, 2013. For the six months ended June 30, 2011 and 2010, the Company repurchased a total of 12.5 million shares and 5.7 million shares, respectively, of its common stock for an aggregate cost of $761 million and $220 million, respectively. As of June 30, 2011, the Company had $2.2 billion remaining under the share repurchase authorizations.

The Company may also reacquire shares of its common stock under its 2005 Incentive Compensation Plan (the “2005 ICP”) related to restricted stock awards. Restricted shares that are forfeited before the vesting period has lapsed are recorded as treasury shares. In addition, the holders of restricted shares may elect to surrender a portion of their shares on the vesting date to cover their income tax obligations. These vested restricted shares reacquired by the Company and the Company’s payment of the holders’ income tax obligations are recorded as a treasury share purchase. For both the six months ended June 30, 2011 and 2010, the restricted shares forfeited under the 2005 ICP and recorded as treasury shares were 0.1 million. For both the six months ended June 30, 2011 and 2010, the Company reacquired 0.4 million shares of its common stock through the surrender of restricted shares upon vesting and paid in the aggregate $19 million and $16 million, respectively, related to the holders’ income tax obligations on the vesting date.

During the six months ended June 30, 2011, the Company reissued 1.7 million treasury shares for restricted stock award grants and issuance of shares vested under the Ameriprise Financial Franchise Advisor Deferred Equity Plan.