Variable Interest Entities (Tables)

12 Months Ended

Dec. 31, 2018

Assets and liabilities measured at fair value

Schedule of assets and liabilities held by consolidated investment entities measured at fair value on a recurring basis

The following tables present the balances of assets and liabilities of Ameriprise Financial measured at fair value on a recurring basis:



	December 31, 2018
	Level 1		Level 2		Level 3		Total
	(in millions)
Assets
Cash equivalents	$	155	$	2,350	$	—	$	2,505
Available-for-Sale securities:
Corporate debt securities	—		13,153		913		14,066
Residential mortgage backed securities	—		6,193		136		6,329
Commercial mortgage backed securities	—		4,857		20		4,877
Asset backed securities	—		1,392		6		1,398
State and municipal obligations	—		2,345		—		2,345
U.S. government and agency obligations	1,745		—		—		1,745
Foreign government bonds and obligations	—		298		—		298
Total Available-for-Sale securities	1,745		28,238		1,075		31,058
Equity securities	—		1		—		1
Equity securities at net asset value (“NAV”)							6		⁽¹⁾
Trading securities	36		38		—		74
Separate account assets at NAV							77,925		⁽¹⁾
Investments and cash equivalents segregated for regulatory purposes	301		—		—		301
Other assets:
Interest rate derivative contracts	—		796		—		796
Equity derivative contracts	191		1,527		—		1,718
Foreign exchange derivative contracts	5		55		—		60
Total other assets	196		2,378		—		2,574
Total assets at fair value	$	2,433	$	33,005	$	1,075	$	114,444

Liabilities
Policyholder account balances, future policy benefits and claims:
Indexed annuity embedded derivatives	$	—	$	3	$	14	$	17
IUL embedded derivatives	—		—		628		628
GMWB and GMAB embedded derivatives	—		—		328		328		⁽²⁾
Total policyholder account balances, future policy benefits and claims	—		3		970		973		⁽³⁾
Customer deposits	—		6		—		6
Other liabilities:
Interest rate derivative contracts	—		424		—		424
Equity derivative contracts	78		2,076		—		2,154
Credit derivative contracts	—		18		—		18
Foreign exchange derivative contracts	4		31		—		35
Other	13		6		30		49
Total other liabilities	95		2,555		30		2,680
Total liabilities at fair value	$	95	$	2,564	$	1,000	$	3,659



	December 31, 2017
	Level 1		Level 2		Level 3			Total
	(in millions)
Assets
Cash equivalents	$	147	$	2,025	$	—		$	2,172
Available-for-Sale securities:
Corporate debt securities	—		13,936		1,139			15,075
Residential mortgage backed securities	—		6,456		155			6,611
Commercial mortgage backed securities	—		4,374		—			4,374
Asset backed securities	—		1,573		7			1,580
State and municipal obligations	—		2,463		—			2,463
U.S. government and agency obligations	503		—		—			503
Foreign government bonds and obligations	—		314		—			314
Common stocks	1		—		—			1
Common stocks at NAV								6			⁽¹⁾
Total Available-for-Sale securities	504		29,116		1,301			30,927
Trading securities	10		34		—			44
Separate account assets at NAV								87,368			⁽¹⁾
Investments and cash equivalents segregated for regulatory purposes	623		—		—			623
Other assets:
Interest rate derivative contracts	—		1,104		—			1,104
Equity derivative contracts	63		2,360		—			2,423
Foreign exchange derivative contracts	2		34		—			36
Total other assets	65		3,498		—			3,563
Total assets at fair value	$	1,349	$	34,673	$	1,301		$	124,697

Liabilities
Policyholder account balances, future policy benefits and claims:
Indexed annuity embedded derivatives	$	—	$	5	$	—		$	5
IUL embedded derivatives	—		—		601			601
GMWB and GMAB embedded derivatives	—		—		(49		)	(49		)	⁽⁴⁾
Total policyholder account balances, future policy benefits and claims	—		5		552			557			⁽⁵⁾
Customer deposits	—		10		—			10
Other liabilities:
Interest rate derivative contracts	1		415		—			416
Equity derivative contracts	7		2,876		—			2,883
Credit derivative contracts	—		2		—			2
Foreign exchange derivative contracts	4		23		—			27
Other	9		6		28			43
Total other liabilities	21		3,322		28			3,371
Total liabilities at fair value	$	21	$	3,337	$	580		$	3,938

⁽¹⁾Amounts are comprised of certain financial instruments 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 $646 million of individual contracts in a liability position and $318 million of individual contracts in an asset position as of December 31, 2018.

⁽³⁾ The Company’s adjustment for nonperformance risk resulted in a $(726) million cumulative increase (decrease) to the embedded derivatives as of December 31, 2018.

⁽⁴⁾The fair value of the GMWB and GMAB embedded derivatives included $443 million of individual contracts in a liability position and $492 million of individual contracts in an asset position as of December 31, 2017.

⁽⁵⁾The Company’s adjustment for nonperformance risk resulted in a $(399) million cumulative increase (decrease) to the embedded derivatives as of December 31, 2017.

Schedule of debt of the consolidated investment entities and the stated interest rates

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,
	2018			2017		2018		2017
	(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	25			38
Other ⁽¹⁾	(8		)	3
Total long-term debt	2,867			2,891

Short-term borrowings:
Federal Home Loan Bank (“FHLB”) advances	151			150		2.6		1.5
Repurchase agreements	50			50		2.6		1.4
Total short-term borrowings	201			200
Total	$	3,068		$	3,091

⁽¹⁾ Amounts include adjustments for fair value hedges on the Company’s long-term debt and unamortized discount and debt issuance costs. See Note 17 for information on the Company’s fair value hedges.

Schedule of maturities of long-term debt

As of December 31, 2018, future maturities of Ameriprise Financial long-term debt were as follows:



	(in millions)
2019	$	314
2020	761
2021	—
2022	—
2023	750
Thereafter	1,050
Total future maturities	$	2,875

Consolidated investment entities [Member]

Assets and liabilities measured at fair value

Schedule of assets and liabilities held by consolidated investment entities measured at fair value on a recurring basis

The following tables present the balances of assets and liabilities held by consolidated investment entities measured at fair value on a recurring basis:



	December 31, 2018
	Level 1		Level 2		Level 3		Total
	(in millions)
Assets
Investments:
Corporate debt securities	$	—	$	9	$	—	$	9
Common stocks	1		1		—		2
Other investments	4		—		—		4
Syndicated loans	—		1,465		226		1,691
Total investments	5		1,475		226		1,706
Receivables	—		12		—		12
Total assets at fair value	$	5	$	1,487	$	226	$	1,718

Liabilities
Debt ⁽¹⁾	$	—	$	1,743	$	—	$	1,743
Other liabilities	—		122		—		122
Total liabilities at fair value	$	—	$	1,865	$	—	$	1,865



	December 31, 2017
	Level 1		Level 2		Level 3		Total
	(in millions)
Assets
Investments:
Corporate debt securities	$	—	$	27	$	—	$	27
Common stocks	18		8		4		30
Other investments	5		—		—		5
Syndicated loans	—		1,889		180		2,069
Total investments	23		1,924		184		2,131
Receivables	—		25		—		25
Total assets at fair value	$	23	$	1,949	$	184	$	2,156

Liabilities
Debt ⁽¹⁾	$	—	$	2,206	$	—	$	2,206
Other liabilities	—		63		—		63
Total liabilities at fair value	$	—	$	2,269	$	—	$	2,269

⁽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 $1.7 billion and $2.2 billion as of December 31, 2018 and 2017, respectively.

Schedule of changes in Level 3 assets and liabilities held by consolidated investment entities measured at fair value on a recurring basis

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
	(in millions)
Balance, January 1, 2018	$	4			$	180
Total gains (losses) included in:
Net income	6			⁽¹⁾	(1		)	⁽¹⁾
Purchases	—				97
Sales	(10		)		(41		)
Settlements	—				(52		)
Transfers into Level 3	4				173
Transfers out of Level 3	(2		)		(160		)
Consolidation of consolidated investment entities	—				54
Deconsolidation of consolidated investment entities	(2		)		(24		)
Balance, December 31, 2018	$	—			$	226

Changes in unrealized gains (losses) included in income relating to assets held at December 31, 2018	$	—			$	(4	)	⁽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				146
Sales	(2		)	(2		)		(28		)
Settlements	—			—				(70		)
Transfers into Level 3	2			7				266
Transfers out of Level 3	—			(8		)		(388		)
Balance, December 31, 2017	$	—		$	4			$	180

Changes in unrealized gains (losses) included in income relating to assets held at December 31, 2017	$	—		$	(1	)	⁽¹⁾	$	(1	)	⁽¹⁾



	Common Stocks				Syndicated Loans				Other Assets				Debt
	(in millions)
Balance, January 1, 2016	$	3			$	529			$	2,065			$	(6,630	)
Cumulative effect of change in accounting policies ⁽²⁾	(2		)		(304		)		(2,065		)		6,630
Balance, January 1, 2016, as adjusted	1				225				—				—
Total gains (losses) included in:
Net income	2			⁽¹⁾	7			⁽¹⁾	1			⁽³⁾	—
Purchases	1				145				—				—
Sales	—				(24		)		(1		)		—
Settlements	—				(69		)		—				—
Transfers into Level 3	3				405				—				—
Transfers out of Level 3	(2		)		(435		)		—				—
Balance, December 31, 2016	$	5			$	254			$	—			$	—

Changes in unrealized gains (losses) included in income relating to assets held at December 31, 2016	$	1		⁽¹⁾	$	3		⁽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”).

⁽³⁾Included in other revenues in the Consolidated Statements of Operations.

Schedule of fair value and unpaid principal balance of assets and liabilities carried at fair value under the fair value option

The following table presents the fair value and unpaid principal balance of loans and debt for which the fair value option has been elected:



	December 31,
	2018			2017
	(in millions)
Syndicated loans
Unpaid principal balance	$	1,743		$	2,140
Excess unpaid principal over fair value	(52		)	(71		)
Fair value	$	1,691		$	2,069
Fair value of loans more than 90 days past due	$	—		$	24
Fair value of loans in nonaccrual status	—			24
Difference between fair value and unpaid principal of loans more than 90 days past due, loans in nonaccrual status or both	—			35

Debt
Unpaid principal balance	$	1,951		$	2,340
Excess unpaid principal over fair value	(208		)	(134		)
Carrying value ⁽¹⁾	$	1,743		$	2,206

⁽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 $1.7 billion and $2.2 billion as of December 31, 2018 and December 31, 2017, respectively.

Schedule of debt of the consolidated investment entities and the stated interest rates

Debt of the consolidated investment entities and the stated interest rates were as follows:



	Carrying Value				Weighted Average Interest Rate
	December 31,				December 31,
	2018		2017		2018		2017
	(in millions)
Debt of consolidated CLOs due 2019-2030	$	1,743	$	2,206	3.7	%	2.8	%

Schedule of maturities of long-term debt

As of December 31, 2018, future maturities of debt were as follows:



	(in millions)
2019	$	54
2020	—
2021	—
2022	—
2023	—
Thereafter	1,897
Total future maturities	$	1,951