Variable Interest Entities (Tables)

9 Months Ended

Sep. 30, 2017

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

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, 2017
	Level 1		Level 2		Level 3		Total
	(in millions)
Assets
Cash equivalents	$	136	$	1,882	$	—	$	2,018
Available-for-Sale securities:
Corporate debt securities	—		14,383		1,267		15,650
Residential mortgage backed securities	—		6,625		165		6,790
Commercial mortgage backed securities	—		3,887		65		3,952
Asset backed securities	—		1,611		35		1,646
State and municipal obligations	—		2,455		—		2,455
U.S. government and agencies obligations	6		—		—		6
Foreign government bonds and obligations	—		308		—		308
Common stocks	4		8		1		13
Common stocks measured at net asset value (“NAV”)							6		⁽¹⁾
Total Available-for-Sale securities	10		29,277		1,533		30,826
Trading securities	131		32		—		163
Separate account assets measured at NAV							85,287		⁽¹⁾
Investments segregated for regulatory purposes	424		—		—		424
Other assets:
Interest rate derivative contracts	1		1,200		—		1,201
Equity derivative contracts	51		1,891		—		1,942
Credit derivative contracts	—		4		—		4
Foreign exchange derivative contracts	1		42		—		43
Total other assets	53		3,137		—		3,190
Total assets at fair value	$	754	$	34,328	$	1,533	$	121,908



Liabilities
Policyholder account balances, future policy benefits and claims:
EIA embedded derivatives	$	—	$	4	$	—	$	4
IUL embedded derivatives	—		—		577		577
GMWB and GMAB embedded derivatives	—		—		45		45		⁽²⁾
Total policyholder account balances, future policy benefits and claims	—		4		622		626		⁽³⁾
Customer deposits	—		9		—		9
Other liabilities:
Interest rate derivative contracts	—		416		—		416
Equity derivative contracts	5		2,664		—		2,669
Foreign exchange derivative contracts	4		27		—		31
Other	6		6		27		39
Total other liabilities	15		3,113		27		3,155
Total liabilities at fair value	$	15	$	3,126	$	649	$	3,790



	December 31, 2016
	Level 1		Level 2		Level 3		Total
	(in millions)
Assets
Cash equivalents	$	30	$	1,796	$	—	$	1,826
Available-for-Sale securities:
Corporate debt securities	—		14,925		1,311		16,236
Residential mortgage backed securities	—		6,650		268		6,918
Commercial mortgage backed securities	—		3,367		—		3,367
Asset backed securities	—		1,481		68		1,549
State and municipal obligations	—		2,358		—		2,358
U.S. government and agencies obligations	8		—		—		8
Foreign government bonds and obligations	—		261		—		261
Common stocks	8		8		1		17
Common stocks at NAV							5		⁽¹⁾
Total Available-for-Sale securities	16		29,050		1,648		30,719
Trading securities	9		16		—		25
Separate account assets at NAV							80,210		⁽¹⁾
Investments segregated for regulatory purposes	425		—		—		425
Other assets:
Interest rate derivative contracts	—		1,778		—		1,778
Equity derivative contracts	43		1,531		—		1,574
Credit derivative contracts	—		1		—		1
Foreign exchange derivative contracts	13		80		—		93
Total other assets	56		3,390		—		3,446
Total assets at fair value	$	536	$	34,252	$	1,648	$	116,651



Liabilities
Policyholder account balances, future policy benefits and claims:
EIA embedded derivatives	$	—	$	5	$	—	$	5
IUL embedded derivatives	—		—		464		464
GMWB and GMAB embedded derivatives	—		—		614		614		⁽⁴⁾
Total policyholder account balances, future policy benefits and claims	—		5		1,078		1,083		⁽⁵⁾
Customer deposits	—		8		—		8
Other liabilities:
Interest rate derivative contracts	2		987		—		989
Equity derivative contracts	3		2,132		—		2,135
Foreign exchange derivative contracts	2		45		—		47
Other	3		8		13		24
Total other liabilities	10		3,172		13		3,195
Total liabilities at fair value	$	10	$	3,185	$	1,091	$	4,286

⁽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.

⁽²⁾ The fair value of the GMWB and GMAB embedded derivatives included $494 million of individual contracts in a liability position and $449 million of individual contracts in an asset position as of September 30, 2017.


⁽³⁾	The Company’s adjustment for nonperformance risk resulted in a $(376) million cumulative increase (decrease) to the embedded derivatives as of September 30, 2017.


⁽⁴⁾	The fair value of the GMWB and GMAB embedded derivatives included $880 million of individual contracts in a liability position and $266 million of individual contracts in an asset position as of December 31, 2016.


⁽⁵⁾	The Company’s adjustment for nonperformance risk resulted in a $(498) million cumulative increase (decrease) to the embedded derivatives as of December 31, 2016.

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, 2017		December 31, 2016		September 30, 2017		December 31, 2016
	(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
Senior notes due 2026	500		500		2.9		2.9
Capitalized lease obligations	41		49
Other⁽¹⁾	11		18
Total long-term debt	2,902		2,917

Short-term borrowings:
Federal Home Loan Bank (“FHLB”) advances	151		150		1.3		0.8
Repurchase agreements	50		50		1.4		0.9
Total short-term borrowings	201		200
Total	$	3,103	$	3,117

⁽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]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

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, 2017
	Level 1		Level 2		Level 3		Total
	(in millions)
Assets
Investments:
Corporate debt securities	$	—	$	29	$	—	$	29
Common stocks	22		11		4		37
Other investments	4		—		—		4
Syndicated loans	—		1,963		182		2,145
Total investments	26		2,003		186		2,215
Receivables	—		9		—		9
Total assets at fair value	$	26	$	2,012	$	186	$	2,224

Liabilities
Debt ⁽¹⁾	$	—	$	2,267	$	—	$	2,267
Other liabilities	—		43		—		43
Total liabilities at fair value	$	—	$	2,310	$	—	$	2,310



	December 31, 2016
	Level 1		Level 2		Level 3		Total
	(in millions)
Assets
Investments:
Corporate debt securities	$	—	$	19	$	—	$	19
Common stocks	22		6		5		33
Other investments	4		—		—		4
Syndicated loans	—		1,944		254		2,198
Total investments	26		1,969		259		2,254
Receivables	—		11		—		11
Total assets at fair value	$	26	$	1,980	$	259	$	2,265

Liabilities
Debt ⁽¹⁾	$	—	$	2,319	$	—	$	2,319
Other liabilities	—		95		—		95
Total liabilities at fair value	$	—	$	2,414	$	—	$	2,414


⁽¹⁾	The carrying value of the CLOs’ debt is set equal to the fair value of the CLOs’ assets. The estimated fair value of the CLOs’ debt was $2.2 billion and $2.3 billion as of September 30, 2017 and December 31, 2016, respectively.

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
	(in millions)
Balance, July 1, 2017	$	—	$	7			$	185
Total gains (losses) included in:
Net income	—		1			⁽¹⁾	(1		)	⁽¹⁾
Purchases	—		—				6
Sales	—		—				(12		)
Settlements	—		—				(3		)
Transfers into Level 3	—		—				84
Transfers out of Level 3	—		(4		)		(77		)
Balance, September 30, 2017	$	—	$	4			$	182
Changes in unrealized gains (losses) included in income relating to assets held at September 30, 2017	$	—	$	1		⁽¹⁾	$	—



	Common Stocks		Syndicated Loans				Other Assets
	(in millions)
Balance at July 1, 2016	$	1	$	243			$	1
Total gains (losses) included in:
Net income	—		2			⁽¹⁾	—
Purchases	1		50				—
Sales	—		(10		)		—
Settlements	—		(26		)		—
Transfers into Level 3	1		57				—
Transfers out of Level 3	—		(120		)		—
Balance, September 30, 2016	$	3	$	196			$	1
Changes in unrealized gains (losses) included in income relating to assets held at September 30, 2016	$	—	$	2		⁽¹⁾	$	—



	Corporate Debt Securities			Common Stocks				Syndicated Loans
	(in millions)
Balance, January 1, 2017	$	—		$	5			$	254
Total gains (losses) included in:
Net income	—			1			⁽¹⁾	—
Purchases	—			3				133
Sales	(2		)	(1		)		(27		)
Settlements	—			—				(56		)
Transfers into Level 3	2			2				197
Transfers out of Level 3	—			(6		)		(319		)
Balance, September 30, 2017	$	—		$	4			$	182
Changes in unrealized gains (losses) included in income relating to assets held at September 30, 2017	$	—		$	1		⁽¹⁾	$	(2	)	⁽¹⁾



	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 ⁽³⁾	(2		)	(304		)		(2,065		)		6,630
Balance at January 1, 2016, as adjusted	1			225				—				—
Total gains (losses) included in:
Net income	—			1			⁽¹⁾	1			⁽²⁾	—
Purchases	1			100				—				—
Sales	—			(11		)		—				—
Settlements	—			(51		)		—				—
Transfers into Level 3	3			286				—				—
Transfers out of Level 3	(2		)	(354		)		—				—
Balance, September 30, 2016	$	3		$	196			$	1			$	—
Changes in unrealized gains (losses) included in income relating to assets and liabilities held at September 30, 2016	$	—		$	1		⁽¹⁾	$	—			$	—

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

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

⁽³⁾ 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”).

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, 2017			December 31, 2016
	(in millions)
Syndicated loans
Unpaid principal balance	$	2,215		$	2,281
Excess unpaid principal over fair value	(70		)	(83		)
Fair value	$	2,145		$	2,198
Fair value of loans more than 90 days past due	$	12		$	8
Fair value of loans in nonaccrual status	12			8
Difference between fair value and unpaid principal of loans more than 90 days past due, loans in nonaccrual status or both	26			34

Debt
Unpaid principal balance	$	2,400		$	2,459
Excess unpaid principal over carrying value	(133		)	(140		)
Carrying value ⁽¹⁾	$	2,267		$	2,319

⁽¹⁾ The carrying value of the CLOs’ debt is set equal to the fair value of the CLOs’ assets. The estimated fair value of the CLOs’ debt was $2.2 billion and $2.3 billion as of September 30, 2017 and December 31, 2016, respectively.

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, 2017		December 31, 2016		September 30, 2017		December 31, 2016
	(in millions)
Debt of consolidated CLOs due 2025-2026	$	2,267	$	2,319	2.7	%	2.5	%

- 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.

+ References + Details