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SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT
 12 Months Ended
Dec. 31, 2020
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,
2020
2019
2018
(in millions)
Revenues
Management and financial advice fees$— $(1)$(1)
Net investment income23 9 34 
Other revenues15 14 4 
Gain on disposal of business— 213 — 
Total revenues38 235 37 
Banking and deposit interest expense3 9 7 
Total net revenues35 226 30 
Expenses
Benefits, claims, losses and settlement expenses— 49 4 
Distribution expenses12 24 4 
Interest and debt expense105 126 120 
General and administrative expense198 244 210 
Total expenses315 443 338 
Pretax loss before equity in earnings of subsidiaries(280)(217)(308)
Income tax benefit(87)(38)(73)
Loss before equity in earnings of subsidiaries(193)(179)(235)
Equity in earnings of subsidiaries1,727 2,072 2,333 
Net income1,534 1,893 2,098 
Other comprehensive income (loss), net of tax367 553 (519)
Total comprehensive income$1,901 $2,446 $1,579 
See Notes to Condensed Financial Information of Registrant.
Schedule I — Condensed Financial Information of Registrant
Condensed Balance Sheets
(Parent Company Only)
December 31,
2020
2019
(in millions, except share amounts)
Assets
Cash and cash equivalents$1,071 $730 
Investments877 1,430 
Loans to subsidiaries247 361 
Due from subsidiaries497 305 
Receivables2 5 
Land, buildings, equipment, and software, net of accumulated depreciation of $929 and
     $952, respectively
208 207 
Investments in subsidiaries7,153 6,665 
Other assets1,334 1,136 
Total assets$11,389 $10,839 
Liabilities and Shareholders’ Equity
Liabilities:
Accounts payable and accrued expenses$936 $797 
Due to subsidiaries60 137 
Borrowings from subsidiaries494 401 
Long-term debt2,831 3,097 
Other liabilities1,201 678 
Total liabilities5,522 5,110 
Shareholders’ Equity:
Common shares ($.01 par value; shares authorized, 1,250,000,000; shares issued, 332,390,132 and
     329,842,827, respectively)
3 3 
Additional paid-in capital8,822 8,461 
Retained earnings15,292 14,279 
Treasury shares, at cost (215,624,519 and 205,903,593 shares, respectively)
(18,879)(17,276)
Accumulated other comprehensive income (loss), net of tax, including amounts applicable to equity
investments in subsidiaries		629 262 
Total shareholders’ equity5,867 5,729 
Total liabilities and equity$11,389 $10,839 
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,
2020
2019
2018
(in millions)
Cash Flows from Operating Activities
Net income$1,534 $1,893 $2,098 
Equity in earnings of subsidiaries(1,727)(2,072)(2,333)
Dividends received from subsidiaries2,018 2,721 2,093 
Gain on disposal of business before affinity partner payment— (313)— 
Other operating activities, primarily with subsidiaries282 596 57 
Net cash provided by (used in) operating activities
2,107 2,825 1,915 
Cash Flows from Investing Activities
Available-for-Sale securities:
Proceeds from sales922 — — 
Maturities, sinking fund payments and calls161 204 94 
Purchases(15)(1,153)(222)
Proceeds from sale of other investments— 6 — 
Purchase of other investments(12)(12)— 
Proceeds from sale of land, buildings, equipment and software2 — — 
Purchase of land, buildings, equipment and software(54)(42)(62)
Proceeds from disposal of business— 1,138 — 
Contributions to subsidiaries(416)(368)(73)
Return of capital from subsidiaries131 18 454 
Repayment of loans from subsidiaries3,288 2,468 1,623 
Issuance of loans to subsidiaries(3,174)(2,457)(1,768)
Acquisition of surplus loans to subsidiaries(500)— — 
Other, net— (65)2 
Net cash provided by (used in) investing activities333 (263)48 
Cash Flows from Financing Activities
Dividends paid to shareholders(497)(504)(506)
Repurchase of common shares(1,441)(1,943)(1,630)
Cash paid for purchased options with deferred premiums— (107)(20)
Issuance of long-term debt, net of issuance costs496 497 — 
Repayments of long-term debt(762)(313)(13)
Borrowings from subsidiaries871 132 472 
Repayments of borrowings from subsidiaries(751)(79)(273)
Exercise of stock options3 3 2 
Other, net(18)6 (13)
Net cash provided by (used in) financing activities
(2,099)(2,308)(1,981)
Net increase (decrease) in cash and cash equivalents341 254 (18)
Cash and cash equivalents at beginning of year730 476 494 
Cash and cash equivalents at end of year$1,071 $730 $476 
Supplemental Disclosures:
Interest paid on debt$107 $123 $126 
Income taxes paid (received), net26 (109)(27)
Non-cash dividends from subsidiaries— 81 195 
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 guaranteed minimum withdrawal benefit (“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
On December 23, 2020, RiverSource Life Insurance Company (“RVSL”) issued a $500 million unsecured 3.5% surplus note due December 31, 2050 to the Parent Company. The surplus note is subordinate in right of payment to the prior payment in full of the RVSL’s obligations to policyholders, claimants and beneficiaries and all other creditors. No payment of principal or interest shall be made without the prior approval of the Minnesota Department of Commerce and such payments shall be made only from RVSL’s statutory surplus. Interest payments are due semi-annually in arrears on June 30 and December 31, commencing on June 30, 2021. Subject to the preceding conditions, RVSL may prepay all or a portion of the principal at any time. The held-to-maturity investment of $500 million as of December 31, 2020 is recorded in Investments on the Parent Company’s Condensed Balance Sheets. Interest income will be reported in Net investment income on the Parent Company’s Condensed Statements of Operations.
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 Ameriprise Financial Services, LLC (“AFS”), a subsidiary of the Parent Company. The fair value of the residual tranche was $90 million and $94 million as of December 31, 2020 and 2019, respectively, and is reported in Investments on the Parent Company’s Condensed Balance Sheets. For the year ended December 31, 2020, 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, 2020 and 2019, Ameriprise Financial had $200 million and $201 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 as of both December 31, 2020 and 2019, of which $172 million and $50 million was outstanding as of December 31, 2020 and 2019, 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 $366 million as of December 31, 2020.
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, 2020, 2019 and 2018, ACC did not draw upon the Capital Support Agreement and had met all applicable capital requirements.
AFS entered into a Financial Industry Regulatory Authority 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, 2020, 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.