SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT

12 Months Ended

Dec. 31, 2019

Condensed Financial Information Disclosure [Abstract]

SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Parent Company Only)

Schedule I — Condensed Financial Information of Registrant Condensed Statements of Operations (Parent Company Only)
	Years Ended December 31,
	2019			2018			2017
	(in millions)
Revenues
Management and financial advice fees	$	(1	)	$	(1	)	$	(1	)
Net investment income	9			34			11
Other revenues	14			4			8
Gain on disposal of business	213			—			—
Total revenues	235			37			18
Banking and deposit interest expense	9			7			5
Total net revenues	226			30			13
Expenses
Benefits, claims, losses and settlement expenses	49			4			76
Distribution expenses	24			4			18
Interest and debt expense	126			120			116
General and administrative expense	244			210			246
Total expenses	443			338			456
Pretax loss before equity in earnings of subsidiaries	(217		)	(308		)	(443		)
Income tax benefit	(38		)	(73		)	(47		)
Loss before equity in earnings of subsidiaries	(179		)	(235		)	(396		)
Equity in earnings of subsidiaries	2,072			2,333			1,876
Net income	1,893			2,098			1,480
Other comprehensive income (loss), net of tax	553			(519		)	29
Total comprehensive income	$	2,446		$	1,579		$	1,509

See Notes to Condensed Financial Information of Registrant.

Schedule I — Condensed Financial Information of Registrant Condensed Balance Sheets (Parent Company Only)
	December 31,
	2019			2018
	(in millions, except share amounts)
Assets
Cash and cash equivalents	$	730		$	476
Investments	1,430			467
Loans to subsidiaries	361			372
Due from subsidiaries	305			288
Receivables	5			5
Land, buildings, equipment, and software, net of accumulated depreciation of $952 and $1,168, respectively	207			237
Investments in subsidiaries	6,665			7,231
Other assets	1,136			1,209
Total assets	$	10,839		$	10,285
Liabilities and Shareholders’ Equity
Liabilities:
Accounts payable and accrued expenses	$	797		$	636
Due to subsidiaries	137			146
Borrowings from subsidiaries	401			346
Long-term debt	3,097			2,867
Other liabilities	678			702
Total liabilities	5,110			4,697
Shareholders’ Equity:
Common shares ($.01 par value; shares authorized, 1,250,000,000; shares issued, 329,842,827 and 328,537,214, respectively)	3			3
Additional paid-in capital	8,461			8,260
Retained earnings	14,279			12,909
Treasury shares, at cost (205,903,593 and 192,206,467 shares, respectively)	(17,276		)	(15,293		)
Accumulated other comprehensive income (loss), net of tax, including amounts applicable to equity investments in subsidiaries	262			(291		)
Total shareholders’ equity	5,729			5,588
Total liabilities and equity	$	10,839		$	10,285

See Notes to Condensed Financial Information of Registrant.

Schedule I — Condensed Financial Information of Registrant Condensed Statements of Cash Flows (Parent Company Only)
	Years Ended December 31,
	2019			2018			2017
	(in millions)
Cash Flows from Operating Activities
Net income	$	1,893		$	2,098		$	1,480
Equity in earnings of subsidiaries	(2,072		)	(2,333		)	(1,876		)
Dividends received from subsidiaries	2,721			2,093			1,589
Gain on disposal of business before affinity partner payment	(313		)	—			—
Other operating activities, primarily with subsidiaries	596			57			712
Net cash provided by operating activities	2,825			1,915			1,905
Cash Flows from Investing Activities
Available-for-Sale securities:
Maturities, sinking fund payments and calls	204			94			44
Purchases	(1,153		)	(222		)	(77		)
Proceeds from sale of other investments	6			—			3
Purchase of other investments	(12		)	—			—
Purchase of land, buildings, equipment and software	(42		)	(62		)	(69		)
Proceeds from disposal of business	1,138			—			—
Contributions to subsidiaries	(368		)	(73		)	(79		)
Return of capital from subsidiaries	18			454			47
Repayment of loans to subsidiaries	2,468			1,623			1,277
Issuance of loans to subsidiaries	(2,457		)	(1,768		)	(1,337		)
Other, net	(65		)	2			(91		)
Net cash provided by investing activities	(263		)	48			(282		)
Cash Flows from Financing Activities
Dividends paid to shareholders	(504		)	(506		)	(491		)
Repurchase of common shares	(1,943		)	(1,630		)	(1,485		)
Cash paid for purchased options with deferred premiums	(107		)	(20		)	(19		)
Issuance of long-term debt, net of issuance costs	497			—			—
Repayments of long-term debt	(313		)	(13		)	(11		)
Borrowings from subsidiaries	132			472			124
Repayments of borrowings from subsidiaries	(79		)	(273		)	(15		)
Exercise of stock options	3			2			15
Other, net	6			(13		)	(1		)
Net cash used in financing activities	(2,308		)	(1,981		)	(1,883		)
Net increase (decrease) in cash and cash equivalents	254			(18		)	(260		)
Cash and cash equivalents at beginning of year	476			494			754
Cash and cash equivalents at end of year	$	730		$	476		$	494
Supplemental Disclosures:
Interest paid on debt	$	123		$	126		$	128
Income taxes paid (received), net	(109		)	(27		)	(368		)
Non-cash dividends from subsidiaries	81			195			109

See Notes to Condensed Financial Information of Registrant.

Schedule I — Condensed Financial Information of Registrant

Notes to Condensed Financial Information of Registrant (Parent Company Only)

1. Basis of Presentation

The accompanying Condensed Financial Statements include the accounts of Ameriprise Financial, Inc. (the “Parent Company”) and, on an equity basis, its subsidiaries and affiliates. The financial statements have been prepared in accordance with U.S. generally accepted accounting principles. The financial information of the Parent Company should be read in conjunction with the Consolidated Financial Statements and Notes of Ameriprise Financial. Parent Company revenues and expenses, other than compensation and benefits and debt and interest expense, are primarily related to intercompany transactions with subsidiaries and affiliates.

The change in the fair value of derivative instruments used as hedges is reflected in the Parent Company Only Condensed Statements of Operations. For certain of these derivatives, the change in the hedged item is reflected in the subsidiaries’ Statements of Operations. The change in fair value of certain derivatives used to economically hedge risk related to GMWB provisions is included in benefits, claims, losses and settlement expenses, while the underlying benefits, claims, losses and settlement expenses are reflected in equity in earnings of subsidiaries.

2. Investments

In December 2018, the Parent Company invested in the residual tranche of an asset backed security structure issued by Ameriprise Advisor Financing, LLC, a subsidiary of the Parent Company. The asset backed securities are collateralized by a portfolio of loans issued to advisors affiliated with AFS, a subsidiary of the Parent Company. The fair value of the residual tranche was $94 million and $90 million as of December 31, 2019 and 2018, respectively, and is reported in Investments on the Parent Company’s Condensed Balance Sheets. For the year ended December 31, 2019, interest income was $6 million and is reported in Net investment income on the Parent Company’s Condensed Statements of Operations.

3. Debt

All of the debt of Ameriprise Financial is borrowings of the Parent Company, except as indicated below.

• As of December 31, 2018, the debt of Ameriprise Financial included $50 million of repurchase agreements, which were accounted for as secured borrowings.

• As of December 31, 2019 and 2018, Ameriprise Financial had $200 million and $150 million, respectively, of borrowings from the Federal Home Loan Bank of Des Moines, which is collateralized with commercial mortgage backed securities and residential mortgage backed securities.

4. Borrowings from Subsidiaries

The Parent Company has intercompany lending arrangements with its subsidiaries. At the end of each business day, taking into consideration all legal and regulatory requirements associated with its subsidiaries, the Parent Company is entitled to draw on all funds in specified bank accounts. Repayment of all or a portion of the funds is due on demand. The Parent Company also has revolving credit agreements with its subsidiaries as the borrower aggregating $1.3 billion and $1.2 billion as of December 31, 2019 and 2018, respectively, of which $50 million and nil was outstanding as of December 31, 2019 and 2018, respectively.

5. Guarantees, Commitments and Contingencies

The Parent Company is the guarantor for operating leases of certain subsidiaries. All consolidated legal, regulatory and arbitration proceedings, including class actions of Ameriprise Financial, Inc. and its consolidated subsidiaries are potential or current obligations of the Parent Company. The Parent Company has committed revolving credit agreements with its subsidiaries as the lender aggregating $364 million as of December 31, 2019.

The Parent Company and Ameriprise Certificate Company (“ACC”) entered into a Capital Support Agreement on March 2, 2009, pursuant to which the Parent Company agrees to commit such capital to ACC as is necessary to satisfy applicable minimum capital requirements. Effective April 30, 2014, this agreement was amended to revise the maximum commitment to $50 million. For the years ended December 31, 2019, 2018 and 2017, ACC did not draw upon the Capital Support Agreement and had met all applicable capital requirements.

Ameriprise Financial Services, LLC (“AFS”) (previously Ameriprise Financial Services, Inc.) entered into a FINRA approved subordinated loan agreement with the Parent Company on December 15, 2014 for regulatory net capital purposes. The agreement consists of a $200 million secured demand note. The note is secured by cash and securities equal to the principal value of the note pledged by the Parent Company. For the year ended December 31, 2019, AFS had not made a demand of the principal amount.

Ameriprise Enterprise Investment Services, Inc. (“AEIS”) entered into a FINRA approved subordinated loan agreement with the Parent Company on January 25, 2017 for regulatory net capital purposes. Under this agreement, AEIS borrowed $60 million from the Parent Company with an initial term of five years to be repaid no later than January 22, 2022. Both companies have the option to renew the agreement in one year increments in perpetuity.