8-KOther EventsExhibits & Filings

AMERIPRISE FINANCIAL INC 8-K Report, Corporate Update (Nov 17, 2005)

Filed November 17, 2005For Securities:AMP

Summary

Ameriprise Financial Inc. filed a Form 8-K on November 17, 2005, to provide updated and corrected information regarding its ratios of earnings to fixed charges. This filing specifically addresses and corrects information previously presented in a Registration Statement on Form 10 and a related Information Statement. The report presents these ratios for the nine-month period ended September 30, 2005, and for the preceding five years, both before and after classifying American Express International Deposit Company as a discontinued operation effective August 1, 2005. Investors should note the presented ratios, which indicate a strong ability to cover fixed charges. For the nine months ended September 30, 2005, the ratio was 9.4x after accounting for discontinued operations, and 10.2x before. The historical data shows generally robust ratios, though a notable dip to 1.4x and 1.8x in 2001, before recovering significantly in subsequent years. This filing serves to ensure the accuracy of financial disclosures related to the company's debt servicing capabilities.

Key Highlights

  • 1Filing corrects and updates the 'Ratio of Earnings to Fixed Charges' for Ameriprise Financial Inc.
  • 2Provides ratios for the nine-month period ended September 30, 2005, and the five years prior.
  • 3Presents two sets of ratios: one reflecting the classification of American Express International Deposit Company as discontinued operations (effective Aug 1, 2005), and one before this classification.
  • 4Ratio of earnings to fixed charges for the nine months ended Sep 30, 2005, was 9.4x (after discontinued operations) and 10.2x (before).
  • 5Historical ratios generally show strong coverage, with notable fluctuations in 2001 (1.4x and 1.8x) followed by significant recovery.
  • 6The purpose of the filing is to correct information previously provided in a Form 10 Registration Statement and related Information Statement.
  • 7Exhibit 99.1, incorporated by reference, details the computation of these ratios.

Frequently Asked Questions

Ameriprise Financial is filing this Form 8-K to correct and update the previously disclosed 'Ratio of Earnings to Fixed Charges' in their Form 10 Registration Statement and related Information Statement. This ensures that investors have the most accurate and current information regarding the company's ability to meet its fixed charge obligations.

This ratio is a key financial metric that indicates a company's ability to cover its fixed interest and lease payment obligations with its earnings. A higher ratio suggests a greater ability to service debt and other fixed charges, indicating lower financial risk.

Classifying American Express International Deposit Company as a discontinued operation effective August 1, 2005, slightly reduced the 'earnings' component used in the ratio calculation for the nine-month period. The filing provides separate ratios reflecting this change versus ratios before this classification.

The historical ratios generally show robust coverage. A notable dip occurred in 2001, with ratios of 1.4x and 1.8x depending on the classification. However, the company demonstrated a strong recovery in subsequent years, with ratios returning to healthy levels above 13x.