Consolidated Investment Entities (Tables)

12 Months Ended

Dec. 31, 2013

Schedule of assets and liabilities held by consolidated investment entities measured at fair value on a recurring basis

The following tables present the balances of assets and liabilities of Ameriprise Financial measured at fair value on a recurring basis:



	December 31, 2013
	Level 1		Level 2		Level 3			Total
	(in millions)
Assets
Cash equivalents	$	12	$	1,841	$	—		$	1,853
Available-for-Sale securities:
Corporate debt securities	—		15,826		1,640			17,466
Residential mortgage backed securities	—		5,937		187			6,124
Commercial mortgage backed securities	—		2,711		30			2,741
Asset backed securities	—		1,244		260			1,504
State and municipal obligations	—		2,160		—			2,160
U.S. government and agencies obligations	17		35		—			52
Foreign government bonds and obligations	—		245		—			245
Common stocks	5		7		6			18
Total Available-for-Sale securities	22		28,165		2,123			30,310
Trading securities	3		32		2			37
Separate account assets	—		81,223		—			81,223
Other assets:
Interest rate derivative contracts	—		1,570		—			1,570
Equity derivative contracts	265		1,576		—			1,841
Credit derivative contracts	—		3		—			3
Foreign currency derivative contracts	2		2		—			4
Total other assets	267		3,151		—			3,418
Total assets at fair value	$	304	$	114,412	$	2,125		$	116,841

Liabilities
Policyholder account balances, future policy benefits and claims:
EIA embedded derivatives	$	—	$	5	$	—		$	5
IUL embedded derivatives	—		—		125			125
GMWB and GMAB embedded derivatives	—		—		(575		)	(575		)	⁽²⁾
Total policyholder account balances, future policy benefits and claims	—		5		(450		)	(445		)	⁽¹⁾
Customer deposits	—		7		—			7
Other liabilities:
Interest rate derivative contracts	—		1,693		—			1,693
Equity derivative contracts	550		2,565		—			3,115
Other	—		12		—			12
Total other liabilities	550		4,270		—			4,820
Total liabilities at fair value	$	550	$	4,282	$	(450	)	$	4,382

⁽¹⁾ The Company’s adjustment for nonperformance risk resulted in a $150 million cumulative decrease to the embedded derivatives.

⁽²⁾The fair value of the GMWB and GMAB embedded derivatives was a net asset at December 31, 2013 and the amount is reported as a contra liability.



	December 31, 2012
	Level 1		Level 2		Level 3		Total
	(in millions)
Assets
Cash equivalents	$	18	$	1,539	$	—	$	1,557
Available-for-Sale securities:
Corporate debt securities	—		17,051		1,764		18,815
Residential mortgage backed securities	—		5,145		284		5,429
Commercial mortgage backed securities	—		3,213		206		3,419
Asset backed securities	—		1,097		178		1,275
State and municipal obligations	—		2,239		—		2,239
U.S. government and agencies obligations	19		39		—		58
Foreign government bonds and obligations	—		224		—		224
Common stocks	3		4		6		13
Other debt obligations	—		—		—		—
Total Available-for-Sale securities	22		29,012		2,438		31,472
Trading securities	1		24		—		25
Separate account assets	—		72,397		—		72,397
Other assets:
Interest rate derivative contracts	—		2,358		—		2,358
Equity derivative contracts	285		973		—		1,258
Credit derivative contracts	—		—		—		—
Foreign currency derivative contracts	—		6		—		6
Commodity derivative contracts	—		1		—		1
Total other assets	285		3,338		—		3,623
Total assets at fair value	$	326	$	106,310	$	2,438	$	109,074

Liabilities
Policyholder account balances, future policy benefits and claims:
EIA embedded derivatives	$	—	$	2	$	—	$	2
IUL embedded derivatives	—		—		45		45
GMWB and GMAB embedded derivatives	—		—		833		833
Total policyholder account balances, future policy benefits and claims	—		2		878		880		⁽¹⁾
Customer deposits	—		8		—		8
Other liabilities:
Interest rate derivative contracts	—		1,486		—		1,486
Equity derivative contracts	258		1,565		—		1,823
Foreign currency derivative contracts	1		—		—		1
Other	1		3		—		4
Total other liabilities	260		3,054		—		3,314
Total liabilities at fair value	$	260	$	3,064	$	878	$	4,202

⁽¹⁾The Company’s adjustment for nonperformance risk resulted in a $398 million cumulative decrease to the embedded derivatives.

Schedule of debt of the consolidated investment entities and the stated interest rates

The balances and the stated interest rates of outstanding debt of Ameriprise Financial were as follows:



	Outstanding Balance						Stated Interest Rate
	December 31,						December 31,
	2013			2012			2013		2012
	(in millions)
Long-term debt:
Senior notes due 2015	$	366	⁽¹⁾	$	750	⁽¹⁾	5.7	%	5.7	%
Senior notes due 2019	327		⁽¹⁾	347		⁽¹⁾	7.3		7.3
Senior notes due 2020	783		⁽¹⁾	812		⁽¹⁾	5.3		5.3
Senior notes due 2023	750			—			4.0		—
Senior notes due 2039	200			200			7.8		7.8
Junior subordinated notes due 2066	294			294			7.5		7.5
Total long-term debt	2,720			2,403

Short-term borrowings:
Federal Home Loan Bank (“FHLB”) advances	450			—			0.3		—
Repurchase agreements	50			501			0.3		0.4
Total short-term borrowings	500			501
Total	$	3,220		$	2,904

⁽¹⁾ Amounts include adjustments for fair value hedges on the Company’s long-term debt. See Note 16 for information on the Company’s fair value hedges.

Schedule of Maturities of Long-term Debt

At December 31, 2013, future maturities of Ameriprise Financial long-term debt were as follows:



	(in millions)
2014	$	—
2015	350
2016	—
2017	—
2018	—
Thereafter	2,294
Total future maturities	$	2,644

Consolidated Investment Entities

Consolidated Investment Entities.

Schedule of assets and liabilities held by consolidated investment entities measured at fair value on a recurring basis

The following tables present the balances of assets and liabilities held by consolidated investment entities measured at fair value on a recurring basis:



	December 31, 2013
	Level 1		Level 2		Level 3		Total
	(in millions)
Assets
Investments:
Corporate debt securities	$	—	$	200	$	2	$	202
Common stocks	147		31		14		192
Other investments	3		33		—		36
Syndicated loans	—		4,204		368		4,572
Total investments	150		4,468		384		5,002
Receivables	—		32		—		32
Other assets	—		13		1,936		1,949
Total assets at fair value	$	150	$	4,513	$	2,320	$	6,983

Liabilities
Debt	$	—	$	—	$	4,804	$	4,804
Other liabilities	—		193		—		193
Total liabilities at fair value	$	—	$	193	$	4,804	$	4,997



	December 31, 2012
	Level 1		Level 2		Level 3		Total
	(in millions)
Assets
Investments:
Corporate debt securities	$	—	$	251	$	3	$	254
Common stocks	91		32		14		137
Other investments	—		57		—		57
Syndicated loans	—		3,720		202		3,922
Total investments	91		4,060		219		4,370
Receivables	—		77		—		77
Other assets	—		2		1,214		1,216
Total assets at fair value	$	91	$	4,139	$	1,433	$	5,663

Liabilities
Debt	$	—	$	—	$	4,450	$	4,450
Other liabilities	—		166		—		166
Total liabilities at fair value	$	—	$	166	$	4,450	$	4,616

Schedule of changes in Level 3 assets and liabilities held by consolidated investment entities measured at fair value on a recurring basis

The following tables provide a summary of changes in Level 3 assets and liabilities held by consolidated investment entities measured at fair value on a recurring basis:



	Corporate Debt Securities			Common Stocks				Syndicated Loans				Other Assets				Debt
	(in millions)
Balance, January 1, 2013	$	3		$	14			$	202			$	1,214			$	(4,450	)
Total gains (losses) included in:
Net income	—			1			⁽¹⁾	(1		)	⁽¹⁾	81			⁽²⁾	(53		)	⁽¹⁾
Other comprehensive income (loss)	—			—				—				39				—
Purchases	1			—				417				689				—
Sales	(1		)	(3		)		(63		)		(86		)		—
Issues	—			—				—				—				(1,330		)
Settlements	(1		)	—				(51		)		—				1,029
Transfers into Level 3	—			21				320				8				—
Transfers out of Level 3	—			(19		)		(456		)		(9		)		—
Balance, December 31, 2013	$	2		$	14			$	368			$	1,936			$	(4,804	)
Changes in unrealized gains (losses) included in income relating to assets and liabilities held at December 31, 2013	$	—		$	(2	)	⁽¹⁾	$	(2	)	⁽¹⁾	$	67		⁽²⁾	$	(25	)	⁽¹⁾

⁽¹⁾ Included in net investment income in the Consolidated Statements of Operations.

⁽²⁾ Included in other revenues in the Consolidated Statements of Operations.



	Corporate Debt Securities			Common Stocks				Syndicated Loans				Other Assets				Debt
	(in millions)
Balance, January 1, 2012	$	4		$	13			$	342			$	1,108			$	(4,712	)
Total gains (losses) included in:
Net income	—			(1		)	⁽¹⁾	11			⁽¹⁾	(78		)	⁽²⁾	(316		)	⁽¹⁾
Other comprehensive income (loss)	—			—				—				28				—
Purchases	—			7				91				328				—
Sales	—			(5		)		(14		)		(172		)		—
Issues	—			—				—				—				—
Settlements	(1		)	—				(87		)		—				578
Transfers into Level 3	—			15				255				—				—
Transfers out of Level 3	—			(15		)		(396		)		—				—
Balance, December 31, 2012	$	3		$	14			$	202			$	1,214			$	(4,450	)
Changes in unrealized losses included in income relating to assets and liabilities held at December 31, 2012	$	—		$	—			$	—			$	(98	)	⁽²⁾	$	(315	)	⁽¹⁾

⁽¹⁾ Included in net investment income in the Consolidated Statements of Operations.

⁽²⁾ Included in other revenues in the Consolidated Statements of Operations.



	Corporate Debt Securities			Common Stocks				Other Investments				Syndicated Loans				Other Assets				Debt
	(in millions)
Balance, January 1, 2011	$	6		$	11			$	22			$	—			$	887			$	(5,171	)
Total gains (losses) included in:
Net income	—			6			⁽¹⁾	(1		)	⁽¹⁾	(12		)	⁽¹⁾	13			⁽²⁾	(89		)	⁽¹⁾
Other comprehensive income (loss)	—			—				—				—				(10		)		—
Purchases	3			—				3				208				299				—
Sales	(2		)	(4		)		—				(40		)		(81		)		—
Issues	—			—				—				—				—				(27		)
Settlements	(1		)	—				—				(137		)		1				575
Transfers into Level 3	—			29				—				615				7				—
Transfers out of Level 3	(2		)	(29		)		(24		)		(292		)		(8		)		—
Balance, December 31, 2011	$	4		$	13			$	—			$	342			$	1,108			$	(4,712	)
Changes in unrealized gains (losses) included in income relating to assets and liabilities held at December 31, 2011	$	—		$	3		⁽¹⁾	$	—			$	(5	)	⁽¹⁾	$	19		⁽³⁾	$	(64	)	⁽¹⁾

Significant unobservable inputs used in the fair value measurements of assets and liabilities held by consolidated investment entities

he following tables provide a summary of the significant unobservable inputs used in the fair value measurements developed by the Company or reasonably available to the Company of Level 3 assets and liabilities held by consolidated investment entities:



	December 31, 2013
	Fair Value		Valuation Technique	Unobservable Input	Range				Weighted Average
	(in millions)
Other assets	$	1,936	Discounted cash flow/ market comparables	Equivalent yield	4.4	%	–	12.4%	7.4	%
				Expected rental value (per square foot)	$5		–	$373	$33

Debt	$	4,804	Discounted cash flow	Annual default rate	2.5	%	–	2.5%	2.5	%
				Discount rate	1.5	%	–	8.3%	2.7	%
				Constant prepayment rate	5.0	%	–	10.0%	9.8	%
				Loss recovery	36.4	%	–	63.6%	62.3	%



	December 31, 2012
	Fair Value		Valuation Technique	Unobservable Input	Range				Weighted Average
	(in millions)
Other assets	$	1,214	Discounted cash flow/ market comparables	Equivalent yield	4.1	%	–	12.9%	7.2	%
				Expected rental value (per square foot)	$4		–	$309	$32

Debt	$	4,450	Discounted cash flow	Annual default rate	2.5	%	–	4.5%	2.5	%
				Discount rate	1.6	%	–	30.0%	2.9	%
				Constant prepayment rate	5.0	%	–	10.0%	9.6	%
				Loss recovery	36.4	%	–	63.6%	62.0	%

Schedule of fair value and unpaid principal balance of assets and liabilities carried at fair value under the fair value option

The following table presents the fair value and unpaid principal balance of loans and debt for which the fair value option has been elected:



	December 31,
	2013			2012
	(in millions)
Syndicated loans
Unpaid principal balance	$	4,628		$	4,023
Excess unpaid principal over fair value	(56		)	(101		)
Fair value	$	4,572		$	3,922

Fair value of loans more than 90 days past due	$	23		$	34
Fair value of loans in nonaccrual status	23			34
Difference between fair value and unpaid principal of loans more than 90 days past due, loans in nonaccrual status or both	33			38

Debt
Unpaid principal balance	$	5,032		$	4,757
Excess unpaid principal over fair value	(228		)	(307		)
Fair value	$	4,804		$	4,450

Schedule of debt of the consolidated investment entities and the stated interest rates

Debt of the consolidated investment entities and the stated interest rates were as follows:



	Carrying Value				Weighted Average Interest Rate
	December 31,				December 31,
	2013		2012		2013		2012
	(in millions)
Debt of consolidated CDOs due 2016-2025	$	4,804	$	4,450	1.0	%	0.9	%
Floating rate revolving credit borrowings due 2014	305		309		2.6		2.6
Floating rate revolving credit borrowings due 2015	97		104		2.4		2.4
Floating rate revolving credit borrowings due 2017	120		118		4.5		4.5
Floating rate revolving credit borrowings due 2018	377		—		3.5		—
Floating rate revolving credit borrowings due 2019	33		—		3.0		—
Total	$	5,736	$	4,981

Schedule of Maturities of Long-term Debt

At December 31, 2013, future maturities of debt were as follows:



	(in millions)
2014	$	305
2015	97
2016	20
2017	708
2018	377
Thereafter	4,457
Total future maturities	$	5,964

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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