Consolidated Investment Entities (Tables)

9 Months Ended

Sep. 30, 2014

Consolidated investment entities [Abstract]

Schedule of assets and liabilities held by consolidated investment entities measured at fair value on a recurring basis [Table Text Block]

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



	September 30, 2014
	Level 1		Level 2		Level 3			Total
	(in millions)
Assets
Cash equivalents	$	29	$	2,404	$	—		$	2,433
Available-for-Sale securities:
Corporate debt securities	—		15,756		1,566			17,322
Residential mortgage backed securities	—		5,959		273			6,232
Commercial mortgage backed securities	—		2,544		93			2,637
Asset backed securities	—		1,295		193			1,488
State and municipal obligations	—		2,257		—			2,257
U.S. government and agencies obligations	12		35		—			47
Foreign government bonds and obligations	—		253		—			253
Common stocks	6		9		5			20
Total Available-for-Sale securities	18		28,108		2,130			30,256
Trading securities	114		81		1			196
Separate account assets	—		82,420		—			82,420
Other assets:
Interest rate derivative contracts	—		1,587		—			1,587
Equity derivative contracts	314		1,552		—			1,866
Credit derivative contracts	—		4		—			4
Foreign exchange derivative contracts	2		4		—			6
Other derivative contracts	—		—		1			1
Other	1		—		—			1
Total other assets	317		3,147		1			3,465
Total assets at fair value	$	478	$	116,160	$	2,132		$	118,770
Liabilities
Policyholder account balances, future policy benefits and claims:
EIA embedded derivatives	$	—	$	6	$	—		$	6
IUL embedded derivatives	—		—		202			202
GMWB and GMAB embedded derivatives	—		—		(77		)	(77		)	⁽²⁾
Total policyholder account balances, future policy benefits and claims	—		6		125			131			⁽¹⁾
Customer deposits	—		6		—			6
Other liabilities:
Interest rate derivative contracts	—		1,208		—			1,208
Equity derivative contracts	472		2,205		—			2,677
Other derivative contracts	—		117		—			117
Other	—		17		—			17
Total other liabilities	472		3,547		—			4,019
Total liabilities at fair value	$	472	$	3,559	$	125		$	4,156

⁽¹⁾ The Company’s adjustment for nonperformance risk resulted in a $238 million cumulative decrease to the embedded derivatives.

⁽²⁾The fair value of the GMWB and GMAB embedded derivatives was a net asset at September 30, 2014 and the amount is reported as a contra liability.



	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	—		1,566		—			1,566
Equity derivative contracts	265		1,576		—			1,841
Credit derivative contracts	—		3		—			3
Foreign exchange derivative contracts	2		2		—			4
Other derivative contracts	—		4		—			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	—		1,672		—			1,672
Equity derivative contracts	550		2,447		—			2,997
Other derivative contracts	—		139		—			139
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 increase 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.

Schedule of fair value and unpaid principal balance of assets and liabilities carried at fair value under the fair value option [Table Text Block]

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



	September 30, 2014			December 31, 2013
	(in millions)
Syndicated loans
Unpaid principal balance	$	5,301		$	4,628
Excess unpaid principal over fair value	(55		)	(56		)
Fair value	$	5,246		$	4,572
Fair value of loans more than 90 days past due	$	34		$	23
Fair value of loans in nonaccrual status	34			23
Difference between fair value and unpaid principal of loans more than 90 days past due, loans in nonaccrual status or both	23			33
Debt
Unpaid principal balance	$	5,680		$	5,032
Excess unpaid principal over fair value	(214		)	(228		)
Fair value	$	5,466		$	4,804

Schedule of debt of the consolidated investment entities and the stated interest rates [Table Text Block]

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



	Outstanding Balance						Stated Interest Rate
	September 30, 2014			December 31, 2013			September 30, 2014		December 31, 2013
	(in millions)
Long-term debt:
Senior notes due 2015	$	360	⁽¹⁾	$	366	⁽¹⁾	5.7	%	5.7	%
Senior notes due 2019	324		⁽¹⁾	327		⁽¹⁾	7.3		7.3
Senior notes due 2020	783		⁽¹⁾	783		⁽¹⁾	5.3		5.3
Senior notes due 2023	750			750			4.0		4.0
Senior notes due 2024	548			—			3.7		—
Senior notes due 2039	—			200			—		7.8
Junior subordinated notes due 2066	294			294			7.5		7.5
Total long-term debt	3,059			2,720

Short-term borrowings:
Federal Home Loan Bank (“FHLB”) advances	150			450			0.3		0.3
Repurchase agreements	50			50			0.3		0.3
Total short-term borrowings	200			500
Total	$	3,259		$	3,220

⁽¹⁾ Amounts include adjustments for fair value hedges on the Company’s long-term debt. See Note 12 for information on the Company’s fair value hedges.

Consolidated investment entities [Member]

Consolidated investment entities [Abstract]

Schedule of assets and liabilities held by consolidated investment entities measured at fair value on a recurring basis [Table Text Block]

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



	September 30, 2014
	Level 1		Level 2		Level 3		Total
	(in millions)
Assets
Investments:
Corporate debt securities	$	—	$	183	$	—	$	183
Common stocks	152		44		7		203
Other investments	4		25		—		29
Syndicated loans	—		4,932		314		5,246
Total investments	156		5,184		321		5,661
Receivables	—		28		—		28
Other assets	—		1		2,017		2,018
Total assets at fair value	$	156	$	5,213	$	2,338	$	7,707
Liabilities
Debt	$	—	$	—	$	5,466	$	5,466
Other liabilities	—		81		—		81
Total liabilities at fair value	$	—	$	81	$	5,466	$	5,547



	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

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

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, July 1, 2014	$	—	$	7		$	427			$	2,389			$	(5,511	)
Total gains (losses) included in:
Net income	—		—			(1		)	⁽¹⁾	144			⁽²⁾	(7		)	⁽¹⁾
Other comprehensive income	—		—			—				(151		)		—
Purchases	—		—			41				23				—
Sales	—		—			(14		)		(388		)		—
Settlements	—		—			(38		)		—				52
Transfers into Level 3	—		1			84				—				—
Transfers out of Level 3	—		(1		)	(185		)		—				—
Balance, September 30, 2014	$	—	$	7		$	314			$	2,017			$	(5,466	)
Changes in unrealized gains (losses) included in income relating to assets and liabilities held at September 30, 2014	$	—	$	—		$	(1	)	⁽¹⁾	$	95		⁽²⁾	$	(7	)	⁽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, July 1, 2013	$	3		$	16			$	292			$	1,322			$	(4,677	)
Total gains (losses) included in:
Net income	—			(1		)	⁽¹⁾	(1		)	⁽¹⁾	20			⁽²⁾	50			⁽¹⁾
Other comprehensive loss	—			—				—				73				—
Purchases	—			—				72				239				—
Sales	—			—				(8		)		(54		)		—
Settlements	(1		)	—				(13		)		—				168
Transfers into Level 3	—			—				105				—				—
Transfers out of Level 3	—			(8		)		(145		)		(9		)		—
Balance, September 30, 2013	$	2		$	7			$	302			$	1,591			$	(4,459	)
Changes in unrealized gains (losses) included in income relating to assets and liabilities held at September 30, 2013	$	—		$	(1	)	⁽¹⁾	$	(2	)	⁽¹⁾	$	(1	)	⁽²⁾	$	50		⁽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, 2014	$	2			$	14			$	368			$	1,936			$	(4,804	)
Total gains (losses) included in:
Net income	1			⁽¹⁾	2			⁽¹⁾	5			⁽¹⁾	330			⁽²⁾	(32		)	⁽¹⁾
Other comprehensive income	—				—				—				(84		)		—
Purchases	2				—				280				282				—
Sales	(9		)		(2		)		(42		)		(458		)		—
Issues	—				—				—				—				(1,064		)
Settlements	—				—				(76		)		—				434
Transfers into Level 3	10				12				328				11				—
Transfers out of Level 3	(6		)		(19		)		(549		)		—				—
Balance, September 30, 2014	$	—			$	7			$	314			$	2,017			$	(5,466	)
Changes in unrealized gains included in income relating to assets and liabilities held at September 30, 2014	$	—			$	1		⁽¹⁾	$	1		⁽¹⁾	$	280		⁽²⁾	$	3		⁽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, 2013	$	3		$	14			$	202			$	1,214			$	(4,450	)
Total gains (losses) included in:
Net income	—			—				—				22			⁽²⁾	(38		)	⁽¹⁾
Other comprehensive loss	—			—				—				(1		)		—
Purchases	1			—				265				434				—
Sales	(1		)	(3		)		(52		)		(77		)		—
Issues	—			—				—				—				(926		)
Settlements	(1		)	—				(46		)		—				955
Transfers into Level 3	—			15				232				8				—
Transfers out of Level 3	—			(19		)		(299		)		(9		)		—
Balance, September 30, 2013	$	2		$	7			$	302			$	1,591			$	(4,459	)
Changes in unrealized gains (losses) included in income relating to assets and liabilities held at September 30, 2013	$	—		$	(2	)	⁽¹⁾	$	(1	)	⁽¹⁾	$	5		⁽²⁾	$	(10	)	⁽¹⁾

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

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

Significant unobservable inputs used in the fair value measurements of assets and liabilities held by consolidated investment entities [Table Text Block]

The 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:



	September 30, 2014
	Fair Value		Valuation Technique	Unobservable Input	Range				Weighted Average
	(in millions)
Other assets	$	2,017	Discounted cash flow/ market comparables	Equivalent yield	4.1	%	–	12.0%	6.7	%
				Expected rental value (per square foot)	$3		–	$103	$35
Debt	$	5,466	Discounted cash flow	Annual default rate	2.5%
				Discount rate	1.3	%	–	7.3%	2.5	%
				Constant prepayment rate	5.0	%	–	10.0%	9.8	%
				Loss recovery	36.4	%	–	63.6%	62.6	%



	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)⁽¹⁾	$3		–	$165	$27
Debt	$	4,804	Discounted cash flow	Annual default rate	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	%

Schedule of debt of the consolidated investment entities and the stated interest rates [Table Text Block]

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



	Carrying Value				Weighted Average Interest Rate
	September 30, 2014		December 31, 2013		September 30, 2014		December 31, 2013
	(in millions)
Debt of consolidated CDOs due 2016-2026	$	5,466	$	4,804	1.2	%	1.0	%
Floating rate revolving credit borrowings due 2014	181		305		2.3		2.6
Floating rate revolving credit borrowings due 2015	63		97		2.4		2.4
Floating rate revolving credit borrowings due 2017	118		120		2.6		4.5
Floating rate revolving credit borrowings due 2018	416		377		2.6		3.5
Floating rate revolving credit borrowings due 2019	150		33		3.3		3.0
Total	$	6,394	$	5,736

- 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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- Definition

Tabular disclosure of the application of the fair value option for measurement and reporting of eligible financial assets and liabilities (as defined), as well as certain other eligible items (as defined) included in the statement of financial position, whether such option is elected for a single eligible item or a group of similar eligible items and is in addition to other disclosures concerning fair value which the company may be required to provide. Such disclosure might be expected to include: (1) for items included in the statement of financial position: (a) for each line item in the statement of financial position that includes an item or items for which the fair value option has been elected, provide the aggregate carrying amount of ineligible items included in each line item in the balance sheet, if any; (b) the difference between the aggregate fair value and the aggregate unpaid principal balance (assuming contractual principal amounts and fair value option elected) of: (i) loans and long-term receivables (other than securities otherwise reported at fair value) and (ii) long-term debt instruments; (c) for loans held as assets for which the fair value option has been elected: (i) the aggregate fair value of loans that are 90 days or more past due, (ii) if the policy is to recognize interest income separately from other changes in fair value, the aggregate fair value of loans in nonaccrual status, and (iii) the difference between the aggregate fair value and the aggregate unpaid principal balance for loans that are 90 days or more past due, in nonaccrual status, or both; (2) for items included in the income statement: (a) the amounts of gains and losses from fair value changes included in earnings and in which line in the income statement those gains and losses are reported whether or not combined with gains and losses from items required to be accounted for at fair value; (b) for loans and other receivables held as assets, the estimated amount of gains or losses included in earnings attributable to changes in instrument-specific credit risk; (c) for liabilities with fair values that have been significantly affected during the reporting period by changes in the instrument-specific credit risk, the estimated amount of gains and losses from fair value changes included in earnings that are attributable to changes in the instrument-specific credit risk; and (3) certain other disclosures as required or determined to be provided.

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