Debt

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,
	2015			2014			2015		2014
	(in millions)
Long-term debt:
Senior notes due 2015	$	—		$	358	⁽¹⁾	—	%	5.7	%
Senior notes due 2019	322		⁽¹⁾	326		⁽¹⁾	7.3		7.3
Senior notes due 2020	782		⁽¹⁾	786		⁽¹⁾	5.3		5.3
Senior notes due 2023	750			750			4.0		4.0
Senior notes due 2024	548			548			3.7		3.7
Junior subordinated notes due 2066	245			294			7.5		7.5
Capitalized lease obligations	60		⁽²⁾	—
Total long-term debt	2,707			3,062
Short-term borrowings:
Federal Home Loan Bank (“FHLB”) advances	150			150			0.5		0.3
Repurchase agreements	50			50			0.5		0.4
Total short-term borrowings	200			200
Total	$	2,907		$	3,262

⁽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.

⁽²⁾ In the fourth quarter of 2015, the Company recorded a capital lease that had previously been incorrectly recorded as an operating lease for the Ameriprise Financial Center. See Note 1 for additional information.

Long-Term Debt

The amounts included in the table above are net of any unamortized discount and premium associated with issuing these notes.

In 2015, the Company extinguished $49 million of its junior subordinated notes due 2066 in open market transactions and recognized a gain of less than $1 million. In November 2015, the Company used cash on hand to fund the repayment of $350 million of its senior notes.

On September 18, 2014, the Company issued $550 million of unsecured senior notes due October 15, 2024, and incurred debt issuance costs of $5 million. Interest payments are due semi-annually in arrears on April 15 and October 15, commencing on April 15, 2015.

In May 2014, the Company issued a notice of redemption for $200 million of its senior notes due 2039. The notes were redeemed on June 16, 2014 pursuant to the terms of the indenture at the principal value plus accrued interest to the redemption date. The Company recognized an expense for the remaining unamortized debt issuance costs on the notes in the second quarter of 2014.

On November 13, 2013, the Company issued $150 million of unsecured senior notes due October 15, 2023, and incurred debt issuance costs of $1 million. These notes form part of the series of senior notes due 2023 along with other notes of this series issued on September 6, 2013. Interest payments are due semi-annually in arrears on April 15 and October 15, commencing April 15, 2014.

In October 2013, the Company issued a notice of redemption for $350 million of its senior notes due November 2015. The notes were redeemed pursuant to the terms of the indenture at the principal value plus an aggregate premium and accrued interest to the redemption date. The redemption date of the notes was November 4, 2013. The Company recorded a net pretax loss of $19 million on the redemption of the notes in the fourth quarter of 2013.

On September 6, 2013, the Company issued $600 million of unsecured senior notes due October 15, 2023, and incurred debt issuance costs of $5 million. Interest payments are due semi-annually in arrears on April 15 and October 15, commencing April 15, 2014.

The Company’s senior notes due 2019, 2020, 2023 and 2024 may be redeemed, in whole or in part, at any time prior to maturity at a price equal to the greater of the principal amount and the present value of remaining scheduled payments, discounted to the redemption date, plus accrued and unpaid interest.

The Company’s junior subordinated notes due 2066 may be redeemed, in whole or in part, on or after June 1, 2016 at a price equal to the principal amount plus accrued and compounded interest, provided that if the notes are not redeemed in whole, at least $50 million aggregate principal amount of notes (excluding notes held by the Company) remain outstanding after the redemption. Otherwise, the Company’s junior subordinated notes due 2066 are redeemable in whole at any time, subject to make whole provisions, which are equal to the principal amount plus the present value of interest payments based on the terms of the note.

The Company’s junior subordinated notes due 2066 and credit facility contain various administrative, reporting, legal and financial covenants. The Company was in compliance with all such covenants at both December 31, 2015 and 2014.

At December 31, 2015, future maturities of Ameriprise Financial long-term debt were as follows:



	(in millions)
2016	$	11
2017	12
2018	13
2019	313
2020	761
Thereafter	1,545
Total future maturities	$	2,655

Short-term Borrowings

The Company enters into repurchase agreements in exchange for cash, which it accounts for as secured borrowings and has pledged Available-for-Sale securities to collateralize its obligation under the repurchase agreements. As of December 31, 2015 and 2014, the Company had pledged $30 million and $18 million, respectively, of agency residential mortgage backed securities and $22 million and $34 million, respectively, of commercial mortgage backed securities. The remaining maturity of outstanding repurchase agreements was less than one month as of December 31, 2015 and less than four months as of December 31, 2014. The stated interest rate of the repurchase agreements is a weighted average annualized interest rate on repurchase agreements held as of the balance sheet date.

The Company’s life insurance subsidiary is a member of the FHLB of Des Moines which provides access to collateralized borrowings. The Company has pledged Available-for-Sale securities consisting of commercial mortgage backed securities to collateralize its obligation under these borrowings. The fair value of the securities pledged is recorded in investments and was $290 million and $298 million at December 31, 2015 and 2014, respectively. The remaining maturity of outstanding FHLB advances was less than three months as of December 31, 2015 and less than two months as of December 31, 2014. The stated interest rate of the FHLB advances is a weighted average annualized interest rate on the outstanding borrowings as of the balance sheet date.

The Company has an unsecured revolving credit facility for up to $500 million that expires in May 2020. Under the terms of the credit agreement, the Company may increase the amount of this facility up to $750 million upon satisfaction of certain approval requirements. Available borrowings under the agreement are reduced by any outstanding letters of credit. The Company had no borrowings outstanding under this facility at both December 31, 2015 and 2014 and outstanding letters of credit issued against this facility were $1 million as of December 31, 2015.