Note: On September 30, 2005, American Express Company completed the distribution to its shareholders of all of the outstanding shares of Ameriprise Financial, Inc.
Ameriprise Financial, Inc. Information Statement
How many Ameriprise Financial shares did American Express distribute to me?
Each holder of American Express common stock on the September 19, 2005 record date received a dividend of one share of Ameriprise Financial common stock for every five shares of American Express held.
What are the general U.S. Federal Income tax consequences for shareholders of this distribution?
Please consult the information statement sent to you by American Express for information about the tax consequences of the distribution, including your receipt of a check in lieu of any fractional shares of Ameriprise Financial stock and information reporting.
How can I determine the tax basis of my American Express shares and the Ameriprise shares I receive in the distribution?
As a consequence of the distribution, you will need to allocate the tax basis in your American Express shares immediately before the distribution between your American Express shares and your newly-received Ameriprise shares (including any Ameriprise fractional share for which you receive cash). One possible measure of this, based on the relative market prices of the shares of the two companies immediately after the distribution, results in an allocation of the tax basis of your American Express shares as follows: 87.53% to your American Express shares and 12.47% to the Ameriprise shares you receive. For more information on how to determine and allocate your tax basis, please refer to the letter containing tax information distributed to shareholders of record. A copy of this letter and the tax information statement to be filed with 2005 tax returns are available on the American Express website at http://ir.americanexpress.com in the Shareholder Services section.