AMP » Topics » 14. Related Party Transactions

This excerpt taken from the AMP 10-K filed Mar 2, 2009.

15. Related Party Transactions

The Company may engage in transactions in the ordinary course of business with significant shareholders or their subsidiaries, between the Company and its directors and officers or with other companies whose directors or officers may also serve as directors or officers for the Company or its subsidiaries. The Company carries out these transactions on customary terms. Other than for the share repurchase from Berkshire Hathaway Inc. and subsidiaries described below, the transactions have not had a material impact on the Company's consolidated results of operations or financial condition.

Berkshire Hathaway Inc. ("Berkshire") and subsidiaries owned less than 5% of the Company's common stock at December 31, 2008, 2007 and 2006 and 12% of the Company's common stock at December 31, 2005. On March 29, 2006, the Company entered into a Stock Purchase and Sale Agreement with Warren E. Buffet and Berkshire to repurchase 6.4 million shares of the Company's common stock. The repurchase was completed on March 29, 2006 at a price per share equal to the March 29, 2006 closing price of $42.91.

The Company's executive officers and directors may have transactions with the Company or its subsidiaries involving financial products and insurance services. All obligations arising from these transactions are in the ordinary course of the Company's business and are on the same terms in effect for comparable transactions with the general public. Such obligations involve normal risks of collection and do not have features or terms that are unfavorable to the Company's subsidiaries.

This excerpt taken from the AMP 10-K filed Feb 29, 2008.

16. Related Party Transactions

 

The Company may engage in transactions in the ordinary course of business with significant shareholders or their subsidiaries, between the Company and its directors and officers or with other companies whose directors or officers may also serve as directors or officers for the Company or its subsidiaries. The Company carries out these transactions on customary terms. Other than for the share repurchase from Berkshire Hathaway Inc. and subsidiaries described below, the transactions have not had a material impact on the Company’s consolidated results of operations or financial condition.

 

Berkshire Hathaway Inc. (“Berkshire”) and subsidiaries owned less than 5% of the Company’s common stock at December 31, 2007 and 2006 and 12% of the Company’s common stock at December 31, 2005. On March 29, 2006, the Company entered into a Stock Purchase and Sale Agreement with Warren E. Buffet and Berkshire to repurchase 6.4 million shares of the Company’s common stock. The repurchase was completed on March 29, 2006 at a price per share equal to the March 29, 2006 closing price of $42.91.

 

The Company’s executive officers and directors may have transactions with the Company or its subsidiaries involving financial products and insurance services. All obligations arising from these transactions are in the ordinary course of the Company’s business and are on the same terms in effect for comparable transactions with the general public. Such obligations involve normal risks of collection and do not have features or terms that are unfavorable to the Company’s subsidiaries.

 

The Company has entered into various transactions with American Express in the normal course of business. The Company earned approximately $10 million during the nine months ended September 30, 2005 in revenues from American Express. The Company received approximately $26 million for the nine months ended September 30, 2005 of reimbursements from American Express for the Company’s participation in certain corporate initiatives. As a result of the Separation, the Company determined it appropriate to reflect certain reimbursements previously received from American Express for costs incurred related to certain American Express corporate initiatives as capital contributions rather than reductions to expense amounts. This amount was approximately $26 million for the nine months ended September 30, 2005.

 

This excerpt taken from the AMP 10-Q filed Nov 7, 2007.

14.  Related Party Transactions

 

The Company may engage in transactions in the ordinary course of business with significant shareholders or their subsidiaries, between the Company and its directors and officers or with other companies whose directors or officers may also serve as directors or officers for the Company or its subsidiaries. The Company carries out these transactions on customary terms. Other than for the share repurchase from Berkshire Hathaway Inc. and subsidiaries (“Berkshire”) described below, the transactions have not had a material impact on the Company’s consolidated results of operations or financial condition.

 

Davis Selected Advisors, L.P. or its affiliates (“Davis”) owned approximately 9% of the Company’s common stock at June 30, 2007. In the ordinary course of business, the Company obtains investment advisory or sub-advisory services from Davis. The Company, or the mutual funds or other clients to which the Company provides advisory services, pay fees to Davis for its services. In the ordinary course of business, Davis pays fees to the Company for distribution services of Davis’ products to the Company’s clients.

 

FMR Corp. or its affiliates (“FMR”) owned approximately 7% of the Company’s common stock at June 30, 2007. In the ordinary course of business, the Company pays fees to FMR for distribution services of RiverSource Funds to FMR’s clients and FMR pays fees to the Company for distribution services of FMR’s investment products to the Company’s clients.

 

On March 29, 2006, the Company entered into a Stock Purchase and Sale Agreement with Warren E. Buffett and Berkshire to repurchase 6.4 million shares of the Company’s common stock. The repurchase was completed on March 29, 2006 at a price per share equal to the March 29, 2006 closing price of $42.91 and reduced Berkshire’s ownership of the Company’s common stock to approximately 9.8% of common shares then outstanding. Berkshire’s ownership of the Company’s common stock was further reduced to approximately 1% at June 30, 2007.

 

The Company’s executive officers and directors may have transactions with the Company or its subsidiaries involving financial products and insurance services. All obligations arising from these transactions are in the ordinary course of the Company’s business and are on the same terms in effect for comparable transactions with the general public. Such obligations involve normal risks of collection and do not have features or terms that are unfavorable to the Company’s subsidiaries.

 

This excerpt taken from the AMP 10-Q filed Aug 6, 2007.

14.   Related Party Transactions

The Company may engage in transactions in the ordinary course of business with significant shareholders or their subsidiaries, between the Company and its directors and officers or with other companies whose directors or officers may also serve as directors or officers for the Company or its subsidiaries. The Company carries out these transactions on customary terms. Other than for the share repurchase from Berkshire Hathaway Inc. and subsidiaries (“Berkshire”) described below, the transactions have not had a material impact on the Company’s consolidated results of operations or financial condition.

Davis Selected Advisors, L.P. or its affiliates (“Davis”) owned approximately 9% of the Company’s common stock at December 31, 2006. In the ordinary course of business, the Company obtains investment advisory or sub-advisory services from Davis. The Company, or the mutual funds or other clients to which the Company provides advisory services, pay fees to Davis for its services. In the ordinary course of business, Davis pays fees to the Company for distribution services of Davis’ products to the Company’s clients.

FMR Corp. or its affiliates (“FMR”) owned approximately 7% of the Company’s common stock at December 31, 2006. In the ordinary course of business, the Company pays fees to FMR for distribution services of RiverSource Funds to FMR’s clients and FMR pays fees to the Company for distribution services of FMR’s investment products to the Company’s clients.

On March 29, 2006, the Company entered into a Stock Purchase and Sale Agreement with Warren E. Buffet and Berkshire to repurchase 6.4 million shares of the Company’s common stock. The repurchase was completed on March 29, 2006 at a price per share equal to the March 29, 2006 closing price of $42.91 and reduced Berkshire’s ownership of the Company’s common stock to approximately 9.8% of common shares then outstanding. Berkshire’s ownership of the Company’s common stock was further reduced to 3% at December 31, 2006.

The Company’s executive officers and directors may have transactions with the Company or its subsidiaries involving financial products and insurance services. All obligations arising from these transactions are in the ordinary course of the Company’s business and are on the same terms in effect for comparable transactions with the general public. Such obligations involve normal risks of collection and do not have features or terms that are unfavorable to the Company’s subsidiaries.

This excerpt taken from the AMP 10-Q filed May 9, 2007.

14.     Related Party Transactions

The Company may engage in transactions in the ordinary course of business with significant shareholders or their subsidiaries, between the Company and its directors and officers or with other companies whose directors or officers may also serve as directors or officers for the Company or its subsidiaries. The Company carries out these transactions on customary terms. Other than for the share repurchase from Berkshire Hathaway Inc. and subsidiaries (“Berkshire”) described below, the transactions have not had a material impact on the Company’s consolidated results of operations or financial condition.

Davis Selected Advisors, L.P. or its affiliates (“Davis”) owned approximately 9% of the Company’s common stock at December 31, 2006. In the ordinary course of business, the Company obtains investment advisory or sub-advisory services from Davis. The Company, or the mutual funds or other clients to which the Company provides advisory services, pay fees to Davis for its services. In the ordinary course of business, Davis pays fees to the Company for distribution services of Davis’ products to the Company’s clients.

FMR Corp. or its affiliates (“FMR”) owned approximately 7% of the Company’s common stock at December 31, 2006. In the ordinary course of business, the Company pays fees to FMR for distribution services of RiverSource Funds to FMR’s clients and FMR pays fees to the Company for distribution services of FMR’s investment products to the Company’s clients.

On March 29, 2006, the Company entered into a Stock Purchase and Sale Agreement with Warren E. Buffet and Berkshire to repurchase 6.4 million shares of the Company’s common stock. The repurchase was completed on March 29, 2006 at a price per share equal to the March 29, 2006 closing price of $42.91 and reduced Berkshire’s ownership of the Company’s common stock to approximately 9.8% of common shares then outstanding. Berkshire’s ownership of the Company’s common stock was reduced to 3% at December 31, 2006.

The Company’s executive officers and directors may have transactions with the Company or its subsidiaries involving financial products and insurance services. All obligations arising from these transactions are in the ordinary course of the Company’s business and are on the same terms in effect for comparable transactions with the general public. Such obligations involve normal risks of collection and do not have features or terms that are unfavorable to the Company’s subsidiaries.

This excerpt taken from the AMP 10-K filed Feb 27, 2007.

16.  Related Party Transactions

 

The Company may engage in transactions in the ordinary course of business with significant shareholders or their subsidiaries, between the Company and its directors and officers or with other companies whose directors or officers may also serve as directors or officers for the Company or its subsidiaries. The Company carries out these transactions on customary terms. Other than for the share repurchase from Berkshire Hathaway Inc. and subsidiaries described below, the transactions have not had a material impact on the Company’s consolidated results of operations or financial condition.

 

Berkshire Hathaway Inc. (“Berkshire”) and subsidiaries owned approximately 3% and 12% of the Company’s common stock at December 31, 2006 and 2005, respectively. On March 29, 2006, the Company entered into a Stock Purchase and Sale Agreement with Warren E. Buffet and Berkshire to repurchase 6.4 million shares of the Company’s common stock. The repurchase was completed on March 29, 2006 at a price per share equal to the March 29, 2006 closing price of $42.91.

 

Davis Selected Advisors, L.P. or its affiliates (“Davis”) owned approximately 9% and 8% of the Company’s common stock at December 31, 2006 and 2005, respectively. In the ordinary course of business, the Company obtains investment advisory or sub-advisory services from Davis. The Company, or the mutual funds or other clients that the Company provides advisory services to, pay fees to Davis for its services. In the ordinary course of business, Davis pays fees to the Company for distribution services of Davis’ products to the Company’s clients.

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FMR Corp. or its affiliates (“FMR”) owned approximately 7% and 6% of the Company’s common stock at December 31, 2006 and 2005, respectively. In the ordinary course of business, the Company pays fees to FMR for distribution services of RiverSource Funds to FMR’s clients and FMR pays fees to the Company for distribution services of FMR’s investment products to the Company’s clients.

 

The Company’s executive officers and directors may have transactions with the Company or its subsidiaries involving financial products and insurance services. All obligations arising from these transactions are in the ordinary course of the Company’s business and are on the same terms in effect for comparable transactions with the general public. Such obligations involve normal risks of collection and do not have features or terms that are unfavorable to the Company’s subsidiaries.

 

The Company has entered into various transactions with American Express in the normal course of business. The Company earned approximately $10 million and $11 million during the nine months ended September 30, 2005 and the year ended December 31, 2004, respectively, in revenues from American Express. The Company received approximately $26 million and $70 million for the nine months ended September 30, 2005 and the year ended December 31, 2004, respectively, of reimbursements from American Express for the Company’s participation in certain corporate initiatives. As a result of the Separation, the Company determined it appropriate to reflect certain reimbursements previously received from American Express for costs incurred related to certain American Express corporate initiatives as capital contributions rather than reductions to expense amounts. These amounts were approximately $26 million and $41 million for the nine months ended September 30, 2005 and the year ended December 31, 2004, respectively.

 

This excerpt taken from the AMP 10-Q filed Nov 6, 2006.

13.          Related Party Transactions

The Company may engage in transactions in the ordinary course of business with significant shareholders or their subsidiaries, between the Company and its directors and officers or with other companies whose directors or officers may also serve as directors or officers for the Company or its subsidiaries. The Company carries out these transactions on customary terms. The transactions have not had a material impact on the Company’s consolidated results of operations or financial condition.

Berkshire Hathaway Inc. (“Berkshire”) and subsidiaries owned approximately 12% of the Company’s common stock at December 31, 2005. On March 29, 2006, the Company entered into a Stock Purchase and Sale Agreement with Warren E. Buffet and Berkshire to repurchase 6.4 million shares of the Company’s common stock. The repurchase was completed on March 29, 2006 at a price per share equal to the March 29, 2006 closing price of $42.91 and reduced Berkshire’s ownership of the Company’s common stock to approximately 9.8% of common shares then outstanding. The Company or its subsidiaries may engage in reinsurance or other commercial transactions with Berkshire or its subsidiaries and pay or receive fees in these transactions. The Company does not believe that these transactions are material to it or to Berkshire.

The Company has entered into various transactions with American Express in the normal course of business. The Company earned approximately $4 million and $10 million during the three months and nine months ended September 30, 2005, respectively, in revenues from American Express. During the three months and nine months ended September 30, 2005, the Company received approximately $8 million and $26 million, respectively, of reimbursements from American Express for the Company’s participation in certain corporate initiatives. As a result of the Separation, the Company determined it appropriate to reflect the reimbursements as a capital contribution rather than reductions to expense amounts.

This excerpt taken from the AMP 10-Q filed Aug 8, 2006.

11.  Related Party Transactions

The Company may engage in transactions in the ordinary course of business with significant shareholders or their subsidiaries, between the Company and its directors and officers or with other companies whose directors or officers may also serve as directors or officers for the Company or its subsidiaries. The Company carries out these transactions on customary terms. The transactions have not had a material impact on the Company’s consolidated results of operations or financial condition.

Berkshire Hathaway Inc. (“Berkshire”) and subsidiaries owned approximately 12% of the Company’s common stock at December 31, 2005. On March 29, 2006, the Company entered into a Stock Purchase and Sale Agreement with Warren E. Buffet and Berkshire to repurchase 6.4 million shares of the Company’s common stock. The repurchase was completed on March 29, 2006 at a price per share equal to the March 29, 2006 closing price of $42.91 and reduced Berkshire’s ownership of the Company’s common stock to approximately 9.8% of common shares then outstanding. The Company or its subsidiaries may engage in reinsurance or other commercial transactions with Berkshire or its subsidiaries and pay or receive fees in these transactions. The Company does not believe that these transactions are material to it or to Berkshire.

The Company has entered into various transactions with American Express in the normal course of business. The Company earned approximately $4 million and $6 million during the three months and six months ended June 30, 2005, respectively, in revenues from American Express. During the three months and six months ended June 30, 2005, the Company received approximately $9 million and $18 million, respectively, of reimbursements from American Express for the Company’s participation in certain corporate initiatives. As a result of the Separation, the Company determined it appropriate to reflect the reimbursements as a capital contribution rather than reductions to expense amounts.

This excerpt taken from the AMP 10-Q filed May 8, 2006.

12.       Related Party Transactions

 

The Company may engage in transactions in the ordinary course of business with significant shareholders or their subsidiaries, between the Company and its directors and officers or with other companies whose directors or officers may also serve as directors or officers for the Company or its subsidiaries. The Company carries out these transactions on customary terms. The transactions have not had a material impact on the Company’s consolidated results of operations or financial condition.

 

Berkshire Hathaway Inc. (“Berkshire”) and subsidiaries owned approximately 12% of the Company’s common stock at December 31, 2005. On March 29, 2006, the Company entered into a Stock Purchase and Sale Agreement with Warren E. Buffet and Berkshire to repurchase 6.4 million shares of the Company’s common stock. The repurchase was completed on March 29, 2006 at a price per share equal to the March 29, 2006 closing price of $42.91 and reduced Berkshire’s ownership of the Company’s common stock to approximately 9.8% of common shares then outstanding. The Company or its subsidiaries may engage in reinsurance or other commercial transactions with Berkshire or its

 

17



 

AMERIPRISE FINANCIAL, INC.

 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

 

12.       Related Party Transactions (Continued)

 

subsidiaries and pay or receive fees in these transactions. The Company does not believe that these transactions are material to it or to Berkshire.

 

The Company has entered into various transactions with American Express in the normal course of business. The Company earned approximately $2 million during the three months ended March 31, 2005 in revenues from American Express. During the three months ended March 31, 2005, the Company received approximately $9 million of reimbursements from American Express for the Company’s participation in certain corporate initiatives. As a result of the Separation, the Company determined it appropriate to reflect the reimbursements as a capital contribution rather than reductions to expense amounts.

 

This excerpt taken from the AMP 10-K filed Mar 8, 2006.

9.  Related Party Transactions

 

The Company may engage in transactions in the ordinary course of business with significant shareholders, between the Company and its directors and officers or with other companies whose directors or officers may also serve as directors or officers for the Company or its subsidiaries. The Company carries out these transactions on customary terms. The transactions have not had a material impact on the Company’s consolidated results of operations or financial condition.

 

The Company may have a number of ordinary course relationships with certain of its significant shareholders or their subsidiaries. Berkshire Hathaway Inc. (Berkshire) owned approximately 12% of the Company’s common stock at December 31, 2005. The Company or its subsidiaries may engage in reinsurance or other commercial transactions with Berkshire or its subsidiaries and may pay or receive fees in these transactions. The Company does not believe that these transactions are material to it or to Berkshire. Davis Selected Advisers, L.P. (Davis) owned approximately 8% of the Company’s common stock at December 31, 2005. In the ordinary course of business, the Company obtains investment advisory or sub-advisory services from Davis or its affiliates. The Company, or the mutual funds or other clients that we provide advisory services to, pay fees to Davis for its services.

 

The Company’s executive officers and directors may from time to time take out loans from certain of its subsidiaries on the same terms that these subsidiaries offer to the general public. The Company’s executive officers and directors may also have transactions with the Company or its subsidiaries involving other goods and services, such as insurance and investment services. All indebtedness from these transactions is in the ordinary course of the Company’s business and is on the same terms, including interest rates, in effect for comparable transactions with the general public. Such indebtedness involves normal risks of collection and does not have features or terms that are unfavorable to the Company’s subsidiaries.

 

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The Company has entered into various transactions with American Express in the normal course of business. The Company earned approximately $10 million, $11 million and $13 million during the nine months ended September 30, 2005 and the years ended December 31, 2004 and 2003, respectively, in revenues from American Express. The Company received approximately $26 million, $70 million and $82 million for the nine months ended September 30, 2005 and the years ended December 31, 2004 and 2003, respectively, of reimbursements from American Express for the Company’s participation in certain corporate initiatives. As a result of the Separation from American Express, the Company determined it appropriate to reflect certain reimbursements previously received from American Express for costs incurred related to certain American Express-related corporate initiatives, as capital contributions rather than reductions to expense amounts. These amounts were approximately $26 million, $41 million and $36 million for the nine months ended September 30, 2005 and the years ended December 31, 2004 and 2003, respectively.

 

This excerpt taken from the AMP 10-Q filed Nov 14, 2005.

8.     Related Party Transactions

 

The Company has entered into various transactions with American Express in the normal course of business.  The Company earned approximately $4 million and $10 million during the three month and nine month periods ended September 30, 2005, and approximately $2 million and $6 million during the three month and nine

 

12



 

month periods ended September 30, 2004, respectively, in revenues from American Express.  The Company received approximately $8 million and $26 million for the three month and nine month periods ended September 30, 2005 and $21 million and $57 million for the three month and nine month periods ended September 30, 2004, respectively, of reimbursements from American Express for the Company’s participation in certain corporate initiatives.  As a result of the separation from American Express, the Company determined it appropriate to reflect certain reimbursements previously received from American Express for costs incurred related to certain American Express-related corporate initiatives, as capital contributions rather than reductions to expense amounts.  These amounts were approximately $8 million and $26 million for the three month and nine month periods ended September 30, 2005 and $13 million and $32 million for the three month and nine month periods ended September 30, 2004, respectively.

 

This excerpt taken from the AMP 8-K filed Sep 16, 2005.

Note 3    Related Party Transactions

        The Company enters into various transactions with American Express in the normal course of business. During the six months ended June 30, 2005 and 2004, the Company earned approximately

F-61


AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)


$6 million and $4 million, respectively, in revenues from American Express. The Company received approximately $18 million and $35 million for the six month periods ended June 30, 2005 and 2004, respectively, of reimbursements from American Express for the Company's participation in certain corporate initiatives.

        Included in other assets at June 30, 2005 and December 31, 2004 were amounts receivable from the Company's mutual funds of $68 million and $56 million, respectively.

        Payable to American Express at June 30, 2005 and December 31, 2004 consisted of:

 
  2005
  2004
 
  (Millions)

Short-term debt   $ 1,086   $ 1,068
Long-term debt     510     510
Interest payable     12     20
Taxes payable     21     65
Accounts payable     23     24
Minority interest liability(a)     186     182
   
 
  Total payable to American Express   $ 1,838   $ 1,869
   
 

(a)
The Company and American Express Bank Ltd. (an affiliated company and a wholly-owned indirect subsidiary of American Express) each own 50% of American Express International Deposit Company (AEIDC). AEIDC's total assets were $6.1 billion and $5.9 billion at June 30, 2005 and December 31, 2004, respectively, and were fully consolidated in the Company's Consolidated Balance Sheets. Minority interest amounts expensed were $23 million and $33 million for the six months ended June 30, 2005 and 2004, respectively.
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