Summary
Ameriprise Financial Inc. (AMP) filed an 8-K on April 24, 2017, to report its first-quarter 2017 financial results. The filing primarily serves to provide investors with access to the official press release and a statistical supplement detailing these results. Notably, the company emphasizes its use of both Generally Accepted Accounting Principles (GAAP) and non-GAAP adjusted financial measures. Management believes these non-GAAP measures offer a clearer view of underlying operational performance and facilitate trend analysis by excluding items such as the impact of consolidating certain investment entities, restructuring charges, valuation assumption reviews ('unlocking'), and market impacts on various insurance and investment products.
Key Highlights
- 1Ameriprise Financial announced its Q1 2017 financial results via an 8-K filing on April 24, 2017.
- 2The filing includes a press release (Exhibit 99.1) and a statistical supplement (Exhibit 99.2) for the quarter ended March 31, 2017.
- 3The company reports financial results on both a GAAP and a non-GAAP adjusted basis.
- 4Non-GAAP measures are used to provide a better reflection of core operations and facilitate trend analysis.
- 5Adjustments in non-GAAP measures include the exclusion of consolidating certain investment entities, restructuring charges, and impacts of valuation assumption reviews ('unlocking').
- 6Specific non-GAAP performance measures mentioned include adjusted operating earnings, adjusted operating revenues, and various earnings per share metrics.
- 7The company also utilizes non-GAAP measures for debt, capital, and shareholders' equity to better represent its capital structure.
Frequently Asked Questions
The main purpose of this 8-K filing is to formally announce and provide access to Ameriprise Financial's financial results for the first quarter of 2017, as detailed in the accompanying press release and statistical supplement.
Ameriprise reports both GAAP and non-GAAP results because management believes that the non-GAAP adjusted measures provide a more meaningful representation of the company's underlying core operations and facilitate better trend analysis by excluding certain non-recurring or market-driven impacts.
Common adjustments to GAAP figures to arrive at non-GAAP measures include the impact of consolidating certain investment entities (CIEs), integration/restructuring charges, the effects of annual reviews of insurance and annuity valuation assumptions ('unlocking'), market impacts on variable annuity and indexed universal life benefits, market impact of hedges, net realized investment gains/losses, and results from discontinued operations.
Yes, the filing mentions that certain non-GAAP debt, capital, and shareholders' equity measures are presented. These often exclude items like accumulated other comprehensive income (AOCI), fair value of hedges, unamortized discount, debt issuance costs, capital lease obligations, and the impact of consolidating certain CIEs, aiming to better reflect the company's capital structure.