Basis of Presentation

12 Months Ended

Dec. 31, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

Basis of Presentation

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. Effective January 1, 2016, the Company adopted Accounting Standards Update (“ASU”) 2015-02 - Consolidation: Amendments to the Consolidation Analysis (“ASU 2015-02”) and deconsolidated several collateralized loan obligations (“CLOs”) and all previously consolidated property funds. The income or loss generated by consolidated entities which will not be realized by the Company’s shareholders is attributed to noncontrolling interests in the Consolidated Statements of Operations. Noncontrolling interests are the ownership interests in subsidiaries not attributable, directly or indirectly, to Ameriprise Financial, Inc. and are classified as equity within the Consolidated Balance Sheets. The Company, excluding noncontrolling interests, is defined as “Ameriprise Financial.” Upon adoption of ASU 2015-02, the Company no longer has noncontrolling interests primarily due to the deconsolidation of property funds. See Note 3 and Note 5 for additional information on recently adopted accounting pronouncements and VIEs.

The accompanying Consolidated Financial Statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). Certain reclassifications of prior period amounts have been made to conform to the current presentation.

In 2018, the Company corrected prior period errors related to the classification of certain changes in other investments and restricted cash equivalents in the Consolidated Statements of Cash Flows. For the year ended December 31, 2017, cash provided by operating activities decreased $178 million, cash used in investing activities decreased $28 million and cash and cash equivalents, including amounts restricted at beginning of period increased $150 million. For the year ended December 31, 2016, cash provided by operating activities decreased $22 million, cash used in investing activities decreased $22 million and cash and cash equivalents, including amounts restricted at both beginning of period and end of period increased$150 million.

In 2017, the Company recorded the following out-of-period corrections:

• an $87 million decrease to other comprehensive income (“OCI”) related to deferred taxes on currency translations adjustments.

• a $12 million out-of-period correction related to a variable annuity model assumption that decreased amortization of deferred acquisition costs (“DAC”) by $8 million and decreased benefits, claims, losses and settlement expenses by $4 million.

• a $20 million decrease to income tax provision for a reversal of a tax reserve.

In 2016, the Company recorded an out-of-period correction for a $29 million increase to benefits, claims, losses and settlement expenses related to the claim utilization factor on long term care (“LTC”) reserves.

The impact of these corrections was not material to current or prior period financial statements.

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 3 and Note 4 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:

	December 31, 2017
	Previously Reported		Effect of Change			As Adjusted
	(in millions)
Revenues
Management and financial advice fees	$	6,392	$	23		$	6,415
Distribution fees	1,770		(13		)	1,757
Net investment income	1,509		—			1,509
Premiums	1,394		—			1,394
Other revenues	1,010		95			1,105
Total revenues	12,075		105			12,180
Banking and deposit interest expense	48		—			48
Total net revenues	12,027		105			12,132
Expenses
Distribution expenses	3,399		(2		)	3,397
Interest credited to fixed accounts	656		—			656
Benefits, claims, losses and settlement expenses	2,233		—			2,233
Amortization of deferred acquisition costs	267		—			267
Interest and debt expense	207		—			207
General and administrative expense	3,051		107			3,158
Total expenses	9,813		105			9,918
Pretax income	2,214		—			2,214
Income tax provision	734		—			734
Net income	$	1,480	$	—		$	1,480

	December 31, 2016
	Previously Reported		Effect of Change			As Adjusted
	(in millions)
Revenues
Management and financial advice fees	$	5,778	$	24		$	5,802
Distribution fees	1,795		(14		)	1,781
Net investment income	1,576		—			1,576
Premiums	1,491		—			1,491
Other revenues	1,095		94			1,189
Total revenues	11,735		104			11,839
Banking and deposit interest expense	39		—			39
Total net revenues	11,696		104			11,800
Expenses
Distribution expenses	3,202		(2		)	3,200
Interest credited to fixed accounts	623		—			623
Benefits, claims, losses and settlement expenses	2,646		—			2,646
Amortization of deferred acquisition costs	415		—			415
Interest and debt expense	241		—			241
General and administrative expense	2,977		107			3,084
Total expenses	10,104		105			10,209
Pretax income	1,592		(1		)	1,591
Income tax provision	278		—			278
Net income	$	1,314	$	(1	)	$	1,313

The impact to the consolidated balance sheets as of both December 31, 2017 and 2016 was a $10 million increase to total assets, a $13 million increase to total liabilities and a $3 million decrease to retained earnings.