Summary
Ameriprise Financial, Inc. (AMP) filed an 8-K on December 3, 2007, to announce a change in its reportable segments and the adoption of an enhanced transfer pricing methodology. These changes will be reflected in the company's year-end 2007 financial results and subsequent SEC filings. Importantly, the reclassifications and transfer pricing adjustments did not impact consolidated net income or shareholders' equity. The company is providing revised historical segment data to facilitate comparison with future reporting. In addition to segment changes, AMP also provided historical financial and metric information, including both U.S. GAAP and non-GAAP measures. The non-GAAP measures are designed to exclude items related to the company's separation from American Express Company, such as discontinued operations, AMEX Assurance, and separation costs. Management believes these adjusted metrics offer a clearer view of the underlying performance of ongoing operations and aid in trend analysis and comparability with analyst expectations.
Key Highlights
- 1Ameriprise Financial is changing its reportable segments, effective for year-end 2007 results.
- 2An enhanced transfer pricing methodology is being implemented.
- 3Reclassifications and transfer pricing changes do not affect consolidated net income or shareholders' equity.
- 4The company is providing historical segment data retrospectively for easier comparison.
- 5Non-GAAP financial measures are presented to exclude impacts from the separation from American Express.
- 6Key non-GAAP adjustments include discontinued operations, AMEX Assurance, and separation costs.
- 7These non-GAAP measures are used by management for performance evaluation, goal setting, and compensation.