What are the main reasons Ameriprise is using non-GAAP financial measures?

Ameriprise is using non-GAAP measures to exclude items that management believes do not reflect the company's ongoing operational performance. These exclusions primarily include non-recurring separation costs related to their split from American Express, credit-related losses, and expenses associated with supporting certain money market funds. Management believes these adjusted figures offer a more meaningful way to analyze performance trends and compare results against industry peers.

How does the company present its debt levels?

The company presents debt-to-capital ratios that exclude non-recourse debt from certain consolidated entities and property fund limited partnerships. They also provide ratios that reflect equity credit for their junior subordinated notes. This approach is intended to provide a clearer picture of their core capital structure, excluding liabilities not directly backed by the company's own credit.

What are the key documents provided with this 8-K filing?

This 8-K filing primarily includes two exhibits: Exhibit 99.1, which is the press release dated October 29, 2008, announcing the third-quarter 2008 financial results, and Exhibit 99.2, a Statistical Supplement providing detailed financial information for the quarterly period ended September 30, 2008.

Why are separation costs being excluded from the reported results?

Separation costs are considered non-recurring expenses directly resulting from Ameriprise's separation from American Express. By excluding these costs, management aims to present a view of the company's performance that reflects its operations as an independent entity, allowing for better assessment of underlying profitability and operational efficiency.

AMP 8-K: Earnings & Results

Summary

Ameriprise Financial, Inc. (AMP) filed an 8-K on October 29, 2008, to report its third-quarter 2008 financial results. The filing includes a press release and a statistical supplement detailing performance. A key aspect of the report is the company's use of both Generally Accepted Accounting Principles (GAAP) and non-GAAP adjusted financial measures. These non-GAAP measures are designed to exclude specific items such as separation costs from their prior separation from American Express, credit-related losses, and support costs for certain money market funds. Management utilizes these adjusted figures to better reflect the underlying operational performance and facilitate trend analysis, which is also used for incentive compensation and performance evaluation against industry peers. The report also addresses the company's capital structure, presenting debt-to-capital ratios that exclude non-recourse debt related to specific investment vehicles. This approach aims to provide a more accurate representation of the company's core capital structure. Investors should pay close attention to these adjusted metrics and the specific exclusions made, as they are central to understanding management's view of the company's financial health and performance during this period, especially considering the broader economic climate.

Key Highlights

1Ameriprise Financial (AMP) announced its third-quarter 2008 financial results via an 8-K filing.
2The company is reporting results using both GAAP and various non-GAAP adjusted financial measures.
3Non-GAAP measures exclude separation costs from the American Express separation, credit-related losses, and money market fund support costs.
4Management believes these adjusted figures provide a clearer view of underlying operational performance and facilitate trend analysis.
5The filing includes a press release (Exhibit 99.1) and a Statistical Supplement (Exhibit 99.2) for the period ending September 30, 2008.
6Debt-to-capital ratios presented exclude non-recourse debt from specific consolidated entities and partnerships to better reflect the core capital structure.
7The CFO, Walter S. Berman, signed the report, indicating its official release and approval.

AMERIPRISE FINANCIAL INC 8-K Report, Financial Results (Oct 29, 2008)

Summary

Key Highlights

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