Basis of Presentation

9 Months Ended

Sep. 30, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Ameriprise Financial, Inc. is a holding company, which primarily conducts business through its subsidiaries to provide financial planning, products and services that are designed to be utilized as solutions for clients’ cash and liquidity, asset accumulation, income, protection and estate and wealth transfer needs. The foreign operations of Ameriprise Financial, Inc. are conducted primarily through Threadneedle Asset Management Holdings Sàrl and Ameriprise Asset Management Holdings GmbH (collectively, “Threadneedle”).

The accompanying Consolidated Financial Statements include the accounts of Ameriprise Financial, Inc., companies in which it directly or indirectly has a controlling financial interest and variable interest entities (“VIEs”) in which it is the primary beneficiary (collectively, the “Company”). All intercompany transactions and balances have been eliminated in consolidation.

The interim financial information in this report has not been audited. In the opinion of management, all adjustments necessary for fair statement of the consolidated results of operations and financial position for the interim periods have been made. Except for the out-of-period correction described below and the prior period adjustments for the retrospective adoption of the new revenue recognition accounting standard, all adjustments made were of a normal recurring nature.

In the first quarter of 2017, the Company recorded a $20 million decrease to income tax provision related to an out-of-period correction for a reversal of a tax reserve.

The accompanying Consolidated Financial Statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). Results of operations reported for interim periods are not necessarily indicative of results for the entire year. These Consolidated Financial Statements and Notes should be read in conjunction with the Consolidated Financial Statements and Notes in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017, filed with the Securities and Exchange Commission (“SEC”) on February 23, 2018 (“2017 10-K”).

The Company evaluated events or transactions that may have occurred after the balance sheet date for potential recognition or disclosure through the date the financial statements were issued. No subsequent events or transactions were identified.

On January 1, 2018, the Company retrospectively adopted the new accounting standard for revenue recognition. See Note 2 and Note 3 for further information on the new accounting standard and the Company’s revenue from contracts with customers. The following tables present the impact to the consolidated statements of operations for the prior periods presented:



	Three Months Ended September 30, 2017
	Previously Reported		Effect of Change			As Adjusted
	(in millions)
Revenues
Management and financial advice fees	$	1,626	$	13		$	1,639
Distribution fees	437		(2		)	435
Net investment income	372		—			372
Premiums	348		—			348
Other revenues	210		22			232
Total revenues	2,993		33			3,026
Banking and deposit interest expense	12		—			12
Total net revenues	2,981		33			3,014
Expenses
Distribution expenses	850		—			850
Interest credited to fixed accounts	176		—			176
Benefits, claims, losses and settlement expenses	474		—			474
Amortization of deferred acquisition costs	48		—			48
Interest and debt expense	52		—			52
General and administrative expense	753		28			781
Total expenses	2,353		28			2,381
Pretax income	628		5			633
Income tax provision	125		1			126
Net income	$	503	$	4		$	507



	Nine Months Ended September 30, 2017
	Previously Reported		Effect of Change			As Adjusted
	(in millions)
Revenues
Management and financial advice fees	$	4,669	$	25		$	4,694
Distribution fees	1,310		(9		)	1,301
Net investment income	1,154		—			1,154
Premiums	1,035		—			1,035
Other revenues	733		69			802
Total revenues	8,901		85			8,986
Banking and deposit interest expense	34		—			34
Total net revenues	8,867		85			8,952
Expenses
Distribution expenses	2,505		(1		)	2,504
Interest credited to fixed accounts	509		—			509
Benefits, claims, losses and settlement expenses	1,652		—			1,652
Amortization of deferred acquisition costs	189		—			189
Interest and debt expense	154		—			154
General and administrative expense	2,244		81			2,325
Total expenses	7,253		80			7,333
Pretax income	1,614		5			1,619
Income tax provision	315		1			316
Net income	$	1,299	$	4		$	1,303

The impact to the consolidated balance sheet as of December 31, 2017 was a $10 million increase to total assets, a $13 million increase to total liabilities and a $3 million decrease to retained earnings.