Variable Interest Entities (Tables)

3 Months Ended

Mar. 31, 2016

Variable interest 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:



	March 31, 2016
	Level 1		Level 2		Level 3		Total
	(in millions)
Assets
Cash equivalents	$	72	$	2,295	$	—	$	2,367
Available-for-Sale securities:
Corporate debt securities	—		15,192		1,411		16,603
Residential mortgage backed securities	—		5,964		174		6,138
Commercial mortgage backed securities	—		2,607		10		2,617
Asset backed securities	—		1,219		170		1,389
State and municipal obligations	—		2,385		—		2,385
U.S. government and agencies obligations	24		35		—		59
Foreign government bonds and obligations	—		272		—		272
Common stocks	4		8		—		12
Common stocks measured at NAV							5		⁽¹⁾
Total Available-for-Sale securities	28		27,682		1,765		29,480
Trading securities	7		23		—		30
Separate account assets measured at NAV							80,182		⁽¹⁾
Investments segregated for regulatory purposes	351		—		—		351
Other assets:
Interest rate derivative contracts	—		3,168		—		3,168
Equity derivative contracts	79		1,369		—		1,448
Foreign exchange derivative contracts	1		67		—		68
Other derivative contracts	—		4		—		4
Total other assets	80		4,608		—		4,688
Total assets at fair value	$	538	$	34,608	$	1,765	$	117,098



Liabilities
Policyholder account balances, future policy benefits and claims:
EIA embedded derivatives	$	—	$	5	$	—	$	5
IUL embedded derivatives	—		—		382		382
GMWB and GMAB embedded derivatives	—		—		1,515		1,515		⁽²⁾
Total policyholder account balances, future policy benefits and claims	—		5		1,897		1,902		⁽³⁾
Customer deposits	—		5		—		5
Other liabilities:
Interest rate derivative contracts	—		1,609		—		1,609
Equity derivative contracts	39		1,888		—		1,927
Credit derivative contracts	—		5		—		5
Foreign exchange derivative contracts	2		23		—		25
Other derivative contracts	—		97		—		97
Other	6		8		—		14
Total other liabilities	47		3,630		—		3,677
Total liabilities at fair value	$	47	$	3,640	$	1,897	$	5,584

⁽¹⁾ Amounts are comprised of certain investments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient and have not been classified in the fair value hierarchy. See Note 2 for further information.

⁽²⁾ The fair value of the GMWB and GMAB embedded derivatives included $1.6 billion of individual contracts in a liability position and $75 million of individual contracts in an asset position.


⁽³⁾	The Company’s adjustment for nonperformance risk resulted in a $634 million cumulative decrease to the embedded derivatives.



	December 31, 2015
	Level 1		Level 2		Level 3		Total
	(in millions)
Assets
Cash equivalents	$	80	$	1,918	$	—	$	1,998
Available-for-Sale securities:
Corporate debt securities	—		14,923		1,425		16,348
Residential mortgage backed securities	—		5,755		218		5,973
Commercial mortgage backed securities	—		2,453		3		2,456
Asset backed securities	—		1,134		162		1,296
State and municipal obligations	—		2,290		—		2,290
U.S. government and agencies obligations	33		35		—		68
Foreign government bonds and obligations	—		224		—		224
Common stocks	5		8		—		13
Common stocks measured at NAV							5		⁽¹⁾
Total Available-for-Sale securities	38		26,822		1,808		28,673
Trading securities	6		18		—		24
Separate account assets measured at NAV							80,349		⁽¹⁾
Investments segregated for regulatory purposes	401		—		—		401
Other assets:
Interest rate derivative contracts	—		1,940		—		1,940
Equity derivative contracts	92		1,495		—		1,587
Credit derivative contracts	—		2		—		2
Foreign exchange derivative contracts	2		54		—		56
Other derivative contracts	—		2		—		2
Total other assets	94		3,493		—		3,587
Total assets at fair value	$	619	$	32,251	$	1,808	$	115,032



Liabilities
Policyholder account balances, future policy benefits and claims:
EIA embedded derivatives	$	—	$	5	$	—	$	5
IUL embedded derivatives	—		—		364		364
GMWB and GMAB embedded derivatives	—		—		851		851		⁽²⁾
Total policyholder account balances, future policy benefits and claims	—		5		1,215		1,220		⁽³⁾
Customer deposits	—		4		—		4
Other liabilities:
Interest rate derivative contracts	—		969		—		969
Equity derivative contracts	47		1,946		—		1,993
Foreign exchange derivative contracts	2		16		—		18
Other derivative contracts	—		96		—		96
Other	1		12		—		13
Total other liabilities	50		3,039		—		3,089
Total liabilities at fair value	$	50	$	3,048	$	1,215	$	4,313


⁽²⁾	The fair value of the GMWB and GMAB embedded derivatives included $994 million of individual contracts in a liability position and $143 million of individual contracts in an asset position.


⁽³⁾	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 [Table Text Block]

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



	Outstanding Balance				Stated Interest Rate
	March 31, 2016		December 31, 2015		March 31, 2016		December 31, 2015
	(in millions)
Long-term debt:
Senior notes due 2019	$	300	$	300	7.3	%	7.3	%
Senior notes due 2020	750		750		5.3		5.3
Senior notes due 2023	750		750		4.0		4.0
Senior notes due 2024	550		550		3.7		3.7
Junior subordinated notes due 2066	229		245		7.5		7.5
Capitalized lease obligations	58		60
Other⁽¹⁾	46		37
Total long-term debt	2,683		2,692
Short-term borrowings:
Federal Home Loan Bank (“FHLB”) advances	150		150		0.6		0.5
Repurchase agreements	50		50		0.7		0.5
Total short-term borrowings	200		200
Total	$	2,883	$	2,892

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

Consolidated investment entities [Member]

Variable interest 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:



	March 31, 2016
	Level 1		Level 2		Level 3		Total
	(in millions)
Assets
Investments:
Corporate debt securities	$	—	$	59	$	—	$	59
Common stocks	1		12		2		15
Other investments	4		4		—		8
Syndicated loans	—		2,129		300		2,429
Total investments	5		2,204		302		2,511
Receivables	—		63		—		63
Total assets at fair value	$	5	$	2,267	$	302	$	2,574
Liabilities
Debt ⁽¹⁾	$	—	$	2,673	$	—	$	2,673
Other liabilities	—		29		—		29
Total liabilities at fair value	$	—	$	2,702	$	—	$	2,702

⁽¹⁾As the Company elected the measurement alternative effective January 1, 2016, the carrying value of the CLOs’ debt is set equal to the fair value of the CLOs’ assets. See Note 2 and below for additional discussion on the measurement alternative. The estimated fair value of the CLOs’ debt was $2.7 billion at March 31, 2016.



	December 31, 2015
	Level 1		Level 2		Level 3		Total
	(in millions)
Assets
Investments:
Corporate debt securities	$	—	$	154	$	—	$	154
Common stocks	74		46		3		123
Other investments	4		22		—		26
Syndicated loans	—		5,738		529		6,267
Total investments	78		5,960		532		6,570
Receivables	—		70		—		70
Other assets	—		—		2,065		2,065
Total assets at fair value	$	78	$	6,030	$	2,597	$	8,705
Liabilities
Debt	$	—	$	—	$	6,630	$	6,630
Other liabilities	—		221		—		221
Total liabilities at fair value	$	—	$	221	$	6,630	$	6,851

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:



	Common Stocks			Syndicated Loans				Other Assets			Debt
	(in millions)
Balance at January 1, 2016, previously reported	$	3		$	529			$	2,065		$	(6,630	)
Cumulative effect of change in accounting policies ⁽²⁾	(2		)	(304		)		(2,065		)	6,630
Balance at January 1, 2016, as adjusted	1			225				—			—
Total gains (losses) included in:
Net income	—			(9		)	⁽¹⁾	—			—
Purchases	—			15				—			—
Settlements	—			(10		)		—			—
Transfers into Level 3	2			139				—			—
Transfers out of Level 3	(1		)	(60		)		—			—
Balance, March 31, 2016	$	2		$	300			$	—		$	—
Changes in unrealized losses included in income relating to assets and liabilities held at March 31, 2016	$	—		$	(10	)	⁽¹⁾	$	—		$	—

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

⁽²⁾ The cumulative effect of change in accounting policies includes the adoption impact of ASU 2015-02 and ASU 2014-13 – Consolidation: Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity (“ASU 2014-13”).



	Common Stocks				Syndicated Loans				Other Assets				Debt
	(in millions)
Balance, January 1, 2015	$	7			$	484			$	1,935			$	(6,030	)
Total gains (losses) included in:
Net income	(1		)	⁽¹⁾	(1		)	⁽¹⁾	31			⁽²⁾	51			⁽¹⁾
Other comprehensive loss	—				—				(110		)		—
Purchases	—				37				342				—
Sales	—				(3		)		(309		)		—
Settlements	—				(31		)		—				46
Transfers into Level 3	5				255				—				—
Transfers out of Level 3	—				(274		)		—				—
Balance, March 31, 2015	$	11			$	467			$	1,889			$	(5,933	)
Changes in unrealized gains (losses) included in income relating to assets and liabilities held at March 31, 2015	$	(1	)	⁽¹⁾	$	(1	)	⁽¹⁾	$	(58	)	⁽²⁾	$	51		⁽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 table provides 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 at December 31, 2015:



	Fair Value		Valuation Technique	Unobservable Input	Range				Weighted Average
	(in millions)
Other assets (property funds)	$	2,060	Discounted cash flow/ market comparables	Equivalent yield	2.6	%	–	11.5%	5.8	%
				Expected rental value (per square foot)	$3		–	$159	$51
CLO debt	$	6,630	Discounted cash flow	Annual default rate	2.5%
				Discount rate	2.0	%	–	11.8%	3.4	%
				Constant prepayment rate	5.0	%	–	10.0%	9.9	%
				Loss recovery	36.4	%	–	63.6%	62.9	%

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:



	March 31, 2016				December 31, 2015
	(in millions)
Syndicated loans
Unpaid principal balance	$	2,689			$	6,635
Excess unpaid principal over fair value	(260		)		(368		)
Fair value	$	2,429			$	6,267
Fair value of loans more than 90 days past due	$	24			$	24
Fair value of loans in nonaccrual status	24				24
Difference between fair value and unpaid principal of loans more than 90 days past due, loans in nonaccrual status or both	84				72
Debt
Unpaid principal balance	$	2,970			$	7,063
Excess unpaid principal over carrying value	(297		)		(433		)
Fair value	$	2,673		⁽¹⁾	$	6,630

⁽¹⁾ As the Company elected the measurement alternative effective January 1, 2016, the carrying value of the CLOs’ debt is set equal to the fair value of the CLOs’ assets. See Note 2 and above for additional discussion on the measurement alternative. The estimated fair value of the CLOs’ debt was $2.7 billion at March 31, 2016.

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
	March 31, 2016			December 31, 2015		March 31, 2016		December 31, 2015
	(in millions)
Debt of consolidated CLOs due 2016-2026	$	2,673		$	6,630	1.8	%	1.6	%
Floating rate revolving credit borrowings due 2017-2020	—		⁽¹⁾	901		—		2.8
Total	$	2,673		$	7,531

⁽¹⁾The property funds were deconsolidated effective January 1, 2016 upon adoption of ASU 2015-02.

- 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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