10-K

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TABLE OF CONTENTS
Item 8. Financial Statements and Supplementary Data
Table of Contents

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 10-K

ý	ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Fiscal Year Ended December 31, 2011
OR
o	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Transition Period from                             to

Commission File No. 1-32525

AMERIPRISE FINANCIAL, INC.
(Exact name of registrant as specified in its charter)

Delaware (State or other jurisdiction of incorporation or organization)	13-3180631 (I.R.S. Employer Identification No.)
1099 Ameriprise Financial Center, Minneapolis, Minnesota (Address of principal executive offices)	55474 (Zip Code)

Registrant's telephone number, including area code: (612) 671-3131

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Name on each exchange on which registered
Common Stock (par value $.01 per share)	The New York Stock Exchange, Inc.

Securities registered pursuant to Section 12(g) of the Act: None.
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.	Yes ý	No o
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act.
	Yes o	No ý
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
	Yes ý	No o
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
	Yes ý	No o
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.
		ý

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act.
	Large Accelerated Filer ý	Accelerated Filer o
Non-Accelerated Filer (Do not check if a smaller reporting company) o		Smaller reporting company o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No ý

The aggregate market value, as of June 30, 2011, of voting shares held by non-affiliates of the registrant was approximately $13.7 billion.

Indicate the number of shares outstanding of each of the registrant's classes of common stock, as of the latest practicable date.

Class	Outstanding at February 10, 2012
Common Stock (par value $.01 per share)	221,898,756 shares

DOCUMENTS INCORPORATED BY REFERENCE

Part III: Portions of the registrant's Proxy Statement to be filed with the Securities and Exchange Commission in connection with the Annual Meeting of Shareholders to be held on April 25, 2012 ("Proxy Statement").

Ameriprise Financial, Inc.
Form 10-K

Index

Part I.
	Item 1.	Business	1
	Item 1A.	Risk Factors	23
	Item 1B.	Unresolved Staff Comments	37
	Item 2.	Properties	38
	Item 3.	Legal Proceedings	38
	Item 4.	Mine Safety Disclosures	39
Part II.
	Item 5.	Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	40
	Item 6.	Selected Financial Data	41
	Item 7.	Management's Discussion and Analysis of Financial Condition and Results of Operations	42
	Item 7A.	Quantitative and Qualitative Disclosures About Market Risk	92
	Item 8.	Financial Statements and Supplementary Data	97
	Item 9.	Changes in and Disagreements With Accountants on Accounting and Financial Disclosure	166
	Item 9A.	Controls and Procedures	166
	Item 9B.	Other Information	167
Part III.
	Item 10.	Directors, Executive Officers and Corporate Governance	167
	Item 11.	Executive Compensation	169
	Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	169
	Item 13.	Certain Relationships and Related Transactions, and Director Independence	170
	Item 14.	Principal Accountant Fees and Services	170
Part IV.
	Item 15.	Exhibits and Financial Statement Schedules	170
	Signatures		171
	Condensed Financial Information of Registrant		F-3
	Exhibit Index		E-1

Part I.

Item 1. Business.

Overview

Ameriprise Financial, Inc. is a holding company incorporated in Delaware primarily engaged in business through its subsidiaries. Accordingly, references below to "Ameriprise," "Ameriprise Financial," the "Company," "we," "us," and "our" may refer to Ameriprise Financial, Inc. exclusively, to our entire family of companies, or to one or more of our subsidiaries. Our headquarters is located at 55 Ameriprise Financial Center, Minneapolis, Minnesota 55474. We also maintain executive offices in New York City.

We are a diversified financial services company with $631 billion in assets under management and administration as of December 31, 2011. We serve individual investors' and institutions' financial needs, hold leadership positions in financial planning, wealth management, retirement, asset management, annuities and insurance, and we maintain a strong operating and financial foundation.

Ameriprise is in a strong position to capitalize on significant demographic and market trends, which we believe will continue to drive increased demand for our services. Our emphasis on deep client-advisor relationships has been central to the success of our business model, including through the extreme market conditions of the past few years, and we believe it will help us navigate future market and economic cycles. We continue to strengthen our position as a retail financial services leader as we focus on meeting the financial needs of the mass affluent and affluent, as evidenced by our leadership in financial planning, a client retention percentage rate of 92%, and our status as a top ten ranked firm within core portions of our four main business segments, including the size of our U.S. advisor force, and assets in long-term U.S. mutual funds, variable annuities and variable universal life insurance.

We go to market in two primary ways:

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Wealth Management and Retirement; and

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Asset Management.

With respect to our wealth management and retirement capabilities, we offer financial planning, products and services designed to be used as solutions for our clients' cash and liquidity, asset accumulation, income, protection, and estate and wealth transfer needs. Our model for delivering product solutions is built on long-term, personal relationships between our clients and our financial advisors and registered representatives ("affiliated advisors"). Our focus on personal relationships, together with our discipline in financial planning and strengths in product development and advice, allow us to address the evolving financial and retirement-related needs of our clients, including our primary target market segment, the mass affluent and affluent, which we define as households with investable assets of more than $100,000. The financial product solutions we offer through our affiliated advisors include both our own products and services and the products of other companies. Our affiliated advisor network is the primary channel through which we offer our life insurance and annuity products and services, as well as a range of banking and protection products.

Our affiliated advisors are focused on using a financial planning and advisory process designed to provide comprehensive advice that focuses on all aspects of our clients' finances. This approach allows us to recommend actions and a broad range of product solutions, including investment, annuity, insurance, banking and other financial products that can help clients attain a return or form of protection over time while accepting what they determine to be an appropriate range and level of risk. We believe our focus on meeting clients' needs through personal financial planning results in more satisfied clients with deeper, longer lasting relationships with our company and higher retention of our affiliated advisors.

As of December 31, 2011, we had a network of more than 9,700 affiliated advisors. We offer our affiliated advisors training, tools, leadership, marketing programs and other field and centralized support to assist them in delivering advice and product solutions to clients. We believe our comprehensive and client-focused approach not only improves the products and services we provide to their clients, but also allows us to reinvest in enhanced services for clients and increase support for financial advisors.

With respect to asset management, we have an increasingly global presence. We have two asset management platforms: Columbia Management in the U.S. and Threadneedle overseas. We serve individual, institutional and high-net worth investors. We offer a broad spectrum of equity, fixed income and alternative products that we primarily distribute through third-parties as well as through our own affiliated advisor channel. We are expanding beyond our traditional strengths in the U.S. and U.K. to gather assets in Continental Europe, Asia, Australia and the Middle East. We believe we are well positioned to continue to strengthen our offerings to existing and new clients and deliver profitable long-term growth to our shareholders.

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The financial results from the businesses underlying our go to market approach are reflected in our five operating segments:

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Advice & Wealth Management;

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Asset Management;

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Annuities;

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Protection; and

•

Corporate & Other.

Financial markets and macroeconomic conditions have had and will continue to have a significant impact on the operating results of each of our segments. In 2011, persistent economic headwinds and geo-political crises increased volatility and weighed on the performance of financial markets. The S&P 500 Index ended the year virtually unchanged, while many international equity markets experienced sharp declines and interest rates remained exceptionally low. In addition to struggles in the economy and financial markets, the business and regulatory environment in which we operate remains subject to uncertainty and change, and we expect this challenging climate to continue. To succeed, we expect to continue focusing on each of our key strategic objectives. The success of these and other strategies may be affected by the factors discussed below in Item 1A of this Annual Report on Form 10-K — "Risk Factors", and other factors as discussed herein.

In 2011, we generated $10.2 billion in total net revenues. Net income from continuing operations attributable to Ameriprise Financial for 2011 was $1.1 billion. Return on equity, excluding accumulated other comprehensive income ("AOCI"), was 11.5 percent.

As a diversified financial services firm, we believe our ability to gather assets across the enterprise is best measured by our assets under management and administration metric. At December 31, 2011, we had $631.3 billion in assets under management and administration worldwide compared to $647.5 billion as of December 31, 2010, as follows:

	As of December 31,
	2011		2010
	(in billions)
Managed	$	527.6	$	541.9
Administered		103.7		105.6
Total	$	631.3	$	647.5

For a more detailed discussion of assets under management and administration see "Management's Discussion and Analysis of Financial Condition and Results of Operations" included in Part II, Item 7 of this Annual Report on Form 10-K.

Our Principal Brands

We use three principal brands for our businesses in the United States: Ameriprise Financial, Columbia Management and RiverSource. We use our Threadneedle brand for our international asset manager's products. We believe that using distinct brands for the products and services of our various businesses allows us to differentiate them in the marketplace.

We use Ameriprise Financial as our holding company brand, as well as the name of our affiliated advisor network and certain of our retail products and services. The retail products and services that use the Ameriprise Financial® brand include those that we provide through our affiliated advisors (e.g., financial planning, investment advisory accounts, retail brokerage services and banking products) and products and services that we market directly to consumers (e.g., personal auto and home insurance).

We use Columbia Management as the primary brand for our U.S. asset management products and services. Following the completion of the acquisition of the long-term asset management business of the Columbia Management Group from Bank of America in April 2010, we combined RiverSource Investments, our legacy U.S. asset management business, with Columbia Management, under the Columbia Management® brand. Our U.S. asset management products, including retail and institutional asset management products, primarily use the Columbia Management name.

We use our RiverSource® brand for our annuities products and for the protection products issued by the RiverSource Life companies, including our life and disability income insurance products.

History and Development

Our company has a more than 117 year history of providing financial solutions designed to help clients achieve their financial objectives. Our earliest predecessor company, Investors Syndicate, was founded in 1894 to provide face-amount certificates to consumers with a need for conservative investments. By 1937, Investors Syndicate had expanded its

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product offerings through Federal Housing Authority mortgages, and later, mutual funds, by establishing Investors Mutual, one of the pioneers in the mutual fund industry. In 1949, Investors Syndicate was renamed Investors Diversified Services, Inc., or IDS. In 1957, IDS added life insurance products, and later, annuity products, through IDS Life Insurance Company (now known as "RiverSource Life Insurance Company"). In 1972, IDS began to expand its network by delivering investment products directly to clients of unaffiliated financial institutions. IDS also introduced its comprehensive financial planning processes to clients, integrating the identification of client needs with the products and services to address those needs in the 1970s, and it introduced fee-based planning in the 1980s.

In 1979, IDS became a wholly owned subsidiary of Alleghany Corporation pursuant to a merger. In 1983, our company was formed as a Delaware corporation in connection with American Express' 1984 acquisition of IDS Financial Services from Alleghany Corporation. We changed our name to "American Express Financial Corporation" ("AEFC") and began marketing our products and services under the American Express brand in 1994. To provide retail clients with a more comprehensive set of products and services, we significantly expanded our offering of the mutual funds of other companies in the late 1990s. In 2003, we acquired the business of Threadneedle Asset Management Holdings.

On September 30, 2005, American Express consummated a distribution of the shares of AEFC to American Express shareholders, at which time we became an independent, publicly traded company and changed our name to "Ameriprise Financial, Inc." In 2008, we completed the acquisitions of H&R Block Financial Advisors, Inc., Brecek & Young Advisors, Inc. and J. & W. Seligman & Co. Incorporated ("Seligman"), which further expanded our retail advisor network and our asset management capabilities. Also in 2008, we initiated the disposition of our institutional trust and custody business and completed that restructuring in early 2009. In 2010, we completed the acquisition of the long-term asset management business of Columbia Management from Bank of America. This acquisition, the integration of which is expected to be completed in 2012, has enhanced the scale and performance of our retail mutual fund and institutional asset management businesses.

In 2011, we completed the sale of Securities America Financial Corporation and its subsidiaries ("Securities America") to Ladenburg Thalmann Financial Services, Inc. Securities America had provided a platform for the affiliation of independent advisors and registered representatives to conduct business without utilizing the Ameriprise® brand. The sale allows us to focus our efforts on servicing and developing our branded advisor network.

Our Organization

The following is a depiction of the organizational structure for our company, showing the primary subsidiaries through which we operate our businesses. The current legal entity names are provided for each subsidiary.

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Following is a brief description of the business conducted by each subsidiary noted above, as well as the segment or segments in which it primarily operates.

Threadneedle Asset Management Holdings Sàrl is a Luxembourg-based holding company for the Threadneedle group of companies ("Threadneedle"), which provides investment management products and services to clients in the United Kingdom, Europe, the Middle East and the Asia-Pacific region independent from our other affiliates. Operating under its own brand name, management organization and operating, compliance and technology infrastructure, Threadneedle's results of operations are included in our Asset Management segment.

Columbia Management Investment Advisers, LLC ("CMIA") serves as investment adviser for the majority of funds in the Columbia Management family of mutual funds ("Columbia Management funds") and to institutional accounts. Its results of operations are included in our Asset Management and Corporate & Other segments.

J. & W. Seligman & Co., Incorporated is a holding company for Columbia Management Investment Distributors, Inc. and certain other subsidiaries within our Asset Management segment. Seligman's results of operations are included in our Asset Management segment.

Columbia Management Investment Distributors, Inc. is a broker-dealer subsidiary that serves as the principal underwriter and distributor for Columbia Management funds. Its results of operations are included in our Asset Management segment.

Columbia Management Investment Services Corp. is a transfer agent that processes client transactions for Columbia Management funds and Ameriprise face-amount certificates. Its results of operations are included in our Asset Management and Advice & Wealth Management segments.

AMPF Holding Corporation is a holding company for certain of our retail brokerage and advisory subsidiaries, including AFSI (defined below) and AEIS (defined below). AMPF Holding Corporation's results of operations are included in our Advice & Wealth Management segment.

American Enterprise Investment Services Inc. ("AEIS") is our registered clearing broker-dealer subsidiary. Brokerage transactions for accounts introduced by AFSI are executed, cleared and settled through AEIS. Its results of operations are included in our Advice & Wealth Management segment.

Ameriprise Financial Services, Inc. ("AFSI"), a registered broker-dealer and registered investment adviser, is our primary financial planning and retail distribution subsidiary. Its results of operations are included in our Advice & Wealth Management segment.

RiverSource Distributors, Inc. ("RiverSource Distributors") is a broker-dealer subsidiary that serves as the principal underwriter and/or distributor for our RiverSource annuities and insurance products sold through AFSI as well as through third-party channels. Its results of operations are included in our Annuities and Protection segments.

RiverSource Life Insurance Company ("RiverSource Life") conducts its insurance and annuity business in states other than New York. Its results of operations for our annuities business are included primarily in the Annuities segment, and its results of operations with respect to our life and health insurance products it manufactures are reflected primarily in the Protection segment. Investment income on excess capital is reported in the Corporate & Other segment.

RiverSource Life Insurance Co. of New York ("RiverSource Life of NY") conducts its insurance and annuity business in the State of New York. Its results of operations for our annuities business are included primarily in the Annuities segment, and its results of operations with respect to our life and health insurance products it manufactures are reflected primarily in the Protection segment. Investment income on excess capital is reported in the Corporate & Other segment. RiverSource Life of NY is a wholly owned subsidiary of RiverSource Life. We refer to RiverSource Life and RiverSource Life of NY as the "RiverSource Life companies."

IDS Property Casualty Insurance Company ("IDS Property Casualty" or "Ameriprise Auto & Home") provides personal auto, home and excess liability insurance products. Ameriprise Insurance Company, a wholly owned subsidiary of IDS Property Casualty, is also licensed to provide these products. The results of operations of these companies are included in the Protection segment.

Ameriprise Certificate Company issues a variety of face-amount certificates. Its results of operations are included in the Advice & Wealth Management segment.

Ameriprise Trust Company provides trust services to individuals and businesses. Its results of operations are included in the Asset Management segment.

Ameriprise Bank, FSB ("Ameriprise Bank") offers a variety of consumer banking and lending products and personal trust and related services. Its results of operations are included in the Advice & Wealth Management segment.

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Our Segments — Advice & Wealth Management

Our Advice & Wealth Management segment provides financial planning and advice, as well as full-service brokerage and banking services, primarily to retail clients through our affiliated advisors. Our affiliated advisors have access to a diversified selection of both affiliated and non-affiliated products to help clients meet their financial needs. A significant portion of revenues in this segment is fee-based, driven by the level of client assets, which is impacted by both market movements and net asset flows. We also earn net investment income on owned assets primarily from certificate and banking products. This segment earns revenues (distribution fees) for providing non-affiliated products and earns intersegment revenues (distribution fees) for providing our affiliated products and services to our retail clients. Intersegment expenses for this segment include expenses for investment management services provided by our Asset Management segment. All intersegment activity is eliminated in our consolidated results. In 2011, 28% of our revenues from external clients were attributable to our Advice & Wealth Management business.

Our Financial Advisor Platform

We provide clients financial planning, advice and brokerage services through our nationwide network of more than 9,700 affiliated advisors, of which more than 2,200 are employees of our company and more than 7,500 are independent franchisees or employees or contractors of franchisees. With the sale of Securities America, we no longer offer a platform for unbranded financial advisors.

Advisors can choose to affiliate with our company in two different ways. Each affiliation offers different levels of support and compensation, with the amount of compensation we pay to each advisor determined by the type of service or product provided, the type of advisor affiliation and other criteria. The affiliation options are:

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Employee Advisors. Under this affiliation, a financial advisor is an employee of our company. We pay compensation competitive with other employee advisor models and provide a high level of support, including local office space and staff support in exchange for a payout rate lower than that of our franchisee advisors. Employee advisors are also employed in the Ameriprise Advisor Center ("AAC"), a dedicated center for remote-based sales and service to Ameriprise retail customers. Advisors in the AAC serve retail customers who do not have access to a local advisor or who prefer a remote relationship with a financial advisor.

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Franchisee Advisors. Under this affiliation, a financial advisor is an independent contractor franchisee who affiliates with our company and has the right to use the Ameriprise brand. We pay our franchisee advisors a higher payout rate than our employee advisors as they are responsible for paying their own overhead, staff compensation and other business expenses. In addition, our franchisee advisors pay a franchise association fee and other fees in exchange for the support we offer and the right to utilize our brand name. The support we offer to our franchisee advisors includes generalist and specialist leadership support, technology platforms and tools, training and marketing programs.

During 2011, we took a number of steps to enhance the public awareness of the Ameriprise brand and the performance of our affiliated advisors. In September, we introduced a new advertising campaign that builds on our MORE WITHIN REACH® brand platform and highlights the Company's rich history, financial strength and commitment to clients. We continued to invest in and implement the conversion to an enhanced brokerage platform designed to be the core technology tool our affiliated advisors use to service clients. The enhanced technology platform integrates with other advisor resources to help advisors run a more efficient practice, increase productivity and offer clients additional products and services. We expect to have all advisors on this technology platform by the end of 2012. We also continued to recruit experienced financial advisors from other firms and to affiliate such advisors within our affiliated advisor platform. Over the past three years, more than 1,100 experienced financial advisors have joined Ameriprise.

Our strong financial advisor retention rate speaks to the value proposition we offer advisors. As of December 31, 2011, over 55% of our affiliated advisors had been with us for more than 10 years, with an average tenure of nearly 18 years. Among affiliated advisors who have been with us for more than 10 years, we have a retention rate of over 97%. We believe this success is driven by the affiliation choices we offer affiliated advisors, together with our competitive payout arrangements and the broad support that helps them build their practices.

Our affiliated advisors can offer clients a diversified set of cash and liquidity, asset accumulation, income, protection, and estate and wealth transfer products and services, as well as a selection of products from other companies, as described below.

Brokerage and Investment Advisory Services

Individual and Family Financial Services

The personalized financial planning approach of our affiliated advisors focuses on all aspects of our clients' finances. After understanding our clients' needs, our advisors seek to identify solutions to address those needs across four cornerstones:

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cash and liabilities, investments, protection and taxes. We believe this approach helps our clients build a solid financial foundation, persevere through difficult economies and challenging markets, and ultimately achieve their financial goals. We offer a broad array of products and services in each of these categories, including those carrying the Ameriprise Financial, Columbia or RiverSource name, as well as solutions offered by unaffiliated firms.

Our affiliated advisors deliver financial solutions to our advisory clients by building long-term personal relationships through financial planning that is responsive to clients' evolving needs. We utilize the Certified Financial Planner Board of Standards, Inc.'s defined financial planning process of Engage, Gather, Analyze, Recommend, Implement and Monitor. This process involves gathering relevant financial information, setting life goals, examining clients' current financial status and determining a strategy or plan for helping clients meet their goals given their current situation and future plans. Once we identify a financial planning client's objectives, we then recommend a solution set consisting of actions — such as paying down debt, increasing savings and investment, protecting income and assets, creating a will, and including tax qualified formats in the client's allocation of savings and investment — as well as offer products to address these objectives with clients accepting what they determine to be an appropriate range and level of risk. Our financial planning relationships with our clients are characterized by an ability to thoroughly understand their specific needs, which enables us to help them meet those needs, achieve high overall client satisfaction, hold more products in their accounts and increase our assets under management.

Our financial planning clients pay a fee for the receipt of financial planning services. This fee is based on the complexity of a client's financial and life situation and his or her advisor's experience. The fee for financial planning services is not based on or related to actual investment performance; however, our clients may elect to pay a consolidated, asset-based advisory fee for financial planning and managed account services. If clients elect to implement their financial plan with our company, we and our affiliated advisors generally receive a sales commission and/or sales load and other revenues for the products that they purchase from us. These commissions, sales loads and other revenues are separate from, and in addition to, the financial planning fees we and our affiliated advisors may receive.

Brokerage and Other Products and Services

We offer our retail and institutional clients a variety of brokerage and other investment products and services.

Our Ameriprise ONE® Financial Account is a single integrated financial management account that combines a client's investment, banking and lending relationships. The Ameriprise ONE Financial Account enables clients to access a single cash account to fund a variety of financial transactions, including investments in mutual funds, individual securities, cash products and margin lending. Additional features include unlimited check writing with overdraft protection, a MasterCard® debit card, online bill payments, ATM access and a savings account.

We provide securities execution and clearing services for our retail and institutional clients through our registered broker-dealer subsidiaries. Clients can use our online brokerage service to purchase and sell securities, obtain independent research and information about a wide variety of securities, and use self-directed asset allocation and other financial planning tools. We also offer shares in public non-exchange traded Real Estate Investment Trusts, structured notes, and other alternative investments issued by unaffiliated companies.

Through Ameriprise Achiever Circle, we offer benefits and rewards to clients who have $100,000 or more invested with us. Clients who have $500,000 or more invested with us are eligible for Ameriprise Achiever Circle Elite, which includes additional benefits. To qualify for and maintain Achiever Circle or Achiever Circle Elite status, clients must meet certain eligibility and maintenance requirements. Special benefits of the program may include fee reductions or waivers on Ameriprise IRAs and the Ameriprise ONE Financial Accounts, fee-waived Ameriprise Financial MasterCard®, fee or interest rate benefits on an Ameriprise® Savings or Advantage Savings Accounts, and fee or rate benefits on home equity lines of credit with Ameriprise Bank.

Fee-based Investment Advisory Accounts

In addition to purchases of affiliated and non-affiliated mutual funds and other securities on a stand-alone basis, clients may purchase mutual funds, among other securities, in connection with investment advisory fee-based "wrap account" programs or services. We currently offer both discretionary and non-discretionary investment advisory wrap accounts. In a discretionary wrap account, we (or an unaffiliated investment advisor) choose the underlying investments in the portfolio on behalf of the client, whereas in a non-discretionary wrap account, clients choose the underlying investments in the portfolio based on their financial advisor's recommendation. Investors in discretionary and non-discretionary wrap accounts generally pay a fee (for investment advice and other services) based on the assets held in that account as well as any related fees or costs included in the underlying securities held in that account (e.g., underlying mutual fund operating expenses, investment advisory or related fees, Rule 12b-1 fees, etc.). A significant portion of our affiliated mutual fund sales are made through wrap accounts. Client assets held in affiliated mutual funds in a wrap account generally produce higher revenues to us than client assets held in affiliated mutual funds on a stand-alone basis because, as noted above, we

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receive an investment advisory fee based on the asset values of the assets held in a wrap account in addition to revenues we normally receive for investment management of the funds included in the account.

We offer several types of investment advisory accounts. We sponsor Ameriprise Strategic Portfolio Service Advantage, a non-discretionary wrap account service, as well as SPS — Advisor, a discretionary wrap account service. We also sponsor Ameriprise Separate Accounts (a separately managed account ("SMA") program), which is a discretionary wrap account service through which clients invest in strategies managed by us or by affiliated and non-affiliated investment managers. We offer a similar program on an accommodation basis where clients transfer assets to us and do not maintain an investment management relationship with the manager of those assets. We also sponsor Active Portfolios® investments, a discretionary mutual fund wrap account service that offers six strategic target allocations based on different risk profiles and tax sensitivities. Active Portfolios investments includes: Active Accumulation Portfolios® investments, Active Income Portfolios® investments, Active Diversified Funds Portfolios, Active Diversified Alternatives Portfolios, Active Diversified Yield Portfolios and Active Opportunity ETF Portfolios® investments. Additionally, we offer discretionary wrap account services through which clients may invest in SMAs, mutual funds and exchange traded funds.

Mutual Fund Offerings

In addition to the Columbia Management family of mutual funds (discussed below in "Our Segments — Asset Management — Columbia Management — Mutual Funds"), we offer mutual funds from more than 250 mutual fund families on our brokerage platform and as part of our wrap accounts to provide our clients a broad choice of investment products. In 2011, retail sales of other companies' mutual funds accounted for the majority of our total retail mutual fund sales. Client assets held in mutual funds of other companies on a stand-alone basis generally produce lower total revenues than client assets held in our own mutual funds, as our Asset Management segment does not earn ongoing investment management fees for assets held in the funds of other companies.

Mutual fund families of other companies generally pay us a portion of the revenue generated from the sales of those funds and from the ongoing management of fund assets attributable to our clients' ownership of shares of those funds. These payments enable us to make the mutual fund families of other companies generally available through our affiliated advisors and through our online brokerage platform. We also receive administrative services fees from most mutual funds sold through our affiliated advisor network.

Insurance and Annuities

We offer insurance and annuities issued by the RiverSource Life companies (discussed below in "Business — Our Segments — Annuities" and in "Business — Our Segments — Protection"). The RiverSource insurance solutions available to our retail clients include variable and fixed universal life insurance, traditional life insurance and disability income insurance. RiverSource annuities include fixed annuities, as well as variable annuities that allow our clients to choose from a number of underlying investment options and to purchase certain guaranteed benefit riders. In addition to RiverSource insurance and annuity products, our affiliated advisors offer products of unaffiliated carriers on a limited basis, including variable annuities and long term care insurance products issued by a select number of unaffiliated insurance companies.

We receive a portion of the revenue generated from the sale of life and disability insurance policies of unaffiliated insurance companies. We are paid distribution fees on annuities sales of unaffiliated insurance companies based on a portion of the revenue generated from such sales. Such insurance companies may also pay us an administrative service fee in connection with the sale of their products.

Banking Products

We provide consumer lending and Federal Deposit Insurance Corporation ("FDIC") insured deposit products to our retail clients through our banking subsidiary, Ameriprise Bank. Our consumer lending products include first mortgages, home equity loans, home equity lines of credit, and investment secured loans. We also offer credit card products, including the Ameriprise World Elite MasterCard, World MasterCard and Platinum MasterCard. The majority of bank deposits are brokered deposits from affiliated broker-dealers or they are in the Ameriprise Personal Savings Account, which we offer in connection with the Ameriprise ONE Financial Account described above in "Brokerage and Investment Advisory Services — Brokerage and Other Products and Services." We also offer checking, savings and money market accounts and certificates of deposit. We believe these products play a key role in our Advice & Wealth Management business by offering our clients an FDIC-insured alternative to other cash products. These products also provide pricing flexibility generally not available through money market funds.

To manage our exposure to residential real estate, we sell the majority of our originated first mortgage products to third parties shortly after origination. All other lending products are originated and held on the balance sheet of Ameriprise Bank, with the exception of investment secured loans, which are held on the balance sheet of Ameriprise Financial. As of December 31, 2011, there were $1.15 billion in home loans/equity line of credit balances, $11 million in investment

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secured loan balances and $234 million in unsecured balances, net of premiums and discounts, and capitalized lender paid origination fees.

Ameriprise Bank's strategy and operations are focused on serving affiliated advisor clients. We provide our banking products primarily through affiliated advisors. We believe that the availability of these products supports our financial advisors in their ability to meet the cash and liquidity needs of our clients. We also serve advisor clients through the Personal Trust Services division of Ameriprise Bank. Personal Trust Services provides personal trust, custodial, agency and investment management services to help meet estate and wealth transfer needs of individual and corporate clients of our affiliated advisors. Personal Trust Services also uses some of our investment products in connection with its services. Ameriprise Bank generally receives an asset-based fee for investment advice and other services based on assets managed, as well as related fees and costs.

Face-Amount Certificates

We currently issue four types of face-amount certificates through Ameriprise Certificate Company, a wholly owned subsidiary of Ameriprise Financial that is registered as an investment company under the Investment Company Act of 1940 ("Investment Company Act"). Owners of our certificates invest funds and are entitled to receive at maturity or at the end of a stated term, a determinable amount of money equal to their aggregate investments in the certificate plus interest at rates we determine, less any withdrawals and early withdrawal penalties. For two types of certificate products, the rate of interest is calculated in whole or in part based on any upward movement in a broad-based stock market index up to a maximum return, where the maximum is a fixed rate for a given term, but can be changed at our discretion for prospective terms.

At December 31, 2011, we had $2.8 billion in total certificate reserves underlying our certificate products. Our earnings are based upon the difference, or "spread," between the interest rates credited to certificate holders and the interest earned on the certificate assets invested. A portion of these earnings is used to compensate the various affiliated entities that provide management, administrative and other services to our company for these products. The certificates compete with investments offered by banks (including Ameriprise Bank), savings and loan associations, credit unions, mutual funds, insurance companies and similar financial institutions. In times of weak performance in the equity markets, certificate sales are generally stronger. In 2011, affiliated advisors' cash sales of our certificates were $729 million.

Business Alliances

We provide workplace financial planning and 403(b) educational programs to employees of major corporations, small businesses and school district employees through our Business Alliances group. Our Business Alliances group helps employees of client companies plan for and achieve their long-term financial objectives. It offers financial planning as an employee benefit supported by educational materials, tools and programs. In addition, we provide training and support to financial advisors working on-site at company locations to present educational seminars, conduct one-on-one meetings and participate in client educational events. We also provide financial advice service offerings, such as financial planning and executive financial services, tailored to discrete employee segments.

Strategic Alliances and Other Marketing Arrangements

We use strategic marketing alliances, local marketing programs for our affiliated advisors, and on-site workshops through our Business Alliances group to generate new clients for our financial planning and other financial services. An important aspect of our strategy is to leverage the client relationships of our other businesses by working with companies to create alliances that help us generate new financial services clients. For example, AFSI currently has a strategic alliance with H&R Block, Inc. designed to build relationships between our affiliated advisors and the tax professionals of H&R Block, Inc. and to leverage those relationships to better serve both AFSI and H&R Block, Inc. clients through referrals. Our alliance arrangements are generally for a limited duration of one to five years with an option to renew. Additionally, these types of marketing arrangements typically provide that either party may terminate the agreements on short notice, usually within sixty days. We compensate our alliance partners for providing opportunities to market to their clients.

In addition to our alliance arrangements, we have developed a number of local marketing programs for our affiliated advisors to use in building their client bases. These include pre-approved seminars, seminar and event training and referral tools and training designed to encourage both prospective and existing clients to refer or bring their friends to an event.

Ameriprise India

In early 2012, we began offering retail financial planning and distribution services in India through our subsidiary, Ameriprise India Private Limited ("Ameriprise India"). We have also established an insurance brokerage entity in India that is licensed to deal in insurance products by India's Insurance Regulatory and Development Authority ("IRDA"). We have established offices in Delhi, Mumbai and Gurgaon, and we plan to expand our reach to other Indian metro areas in the future.

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As with our U.S. financial planning business, Ameriprise India provides holistic financial planning services through its trained advisor force. Fees are received for delivering financial plans; however, Ameriprise India does not currently sell affiliated investment or insurance products. If clients elect to implement their financial plan, our advisors refer them to third-party product manufacturers to purchase recommended investment and/or insurance products. We generally receive a commission from such third-party product manufacturers for making these referrals.

Our Segments — Asset Management

Our Asset Management segment provides investment advice and investment products to retail and institutional clients. We provide our products and services on a global scale through two complementary asset management businesses: Columbia Management and Threadneedle. Columbia Management primarily provides U.S. domestic products and services, and Threadneedle primarily provides international investment products and services. We provide clients with U.S. domestic retail products through unaffiliated third-party financial institutions and through our Advice & Wealth Management segment, and we provide institutional products and services through our institutional sales force. International retail products are primarily provided through third-party financial institutions. Retail products include mutual funds and variable product funds underlying insurance and annuity separate accounts. Institutional asset management services are designed to meet specific client objectives and may involve a range of products, including those that focus on traditional asset classes, separately managed accounts, collateralized loan obligations, hedge funds, collective funds and property funds. In addition to the products and services provided to third-party clients, management teams serving our Asset Management segment provide all intercompany asset management services for Ameriprise Financial subsidiaries. The fees for such services are reflected within the Asset Management segment results through intersegment transfer pricing. Intersegment expenses for this segment include distribution expenses for services provided by our Advice & Wealth Management, Annuities and Protection segments. All intersegment activity is eliminated in our consolidated results. In 2011, 27% of our total revenues from external clients were attributable to our Asset Management business.

We have continued to invest in the growth of our Asset Management segment, as we believe such investment affords attractive opportunities for growth and the achievement of our performance objectives. In May 2011, we completed the acquisition of Grail Advisors, LLC ("Grail"), which provides CMIA the capability of offering actively managed exchange-traded funds. In April 2010, we completed the acquisition of the long-term asset management business of the Columbia Management Group from Bank of America. The acquisition significantly enhanced the capabilities of the Asset Management segment by increasing its scale, broadening its retail and institutional distribution capabilities and strengthening and diversifying its lineup of retail and institutional products. The integration of the Columbia Management business, which is expected to be completed in 2012, has involved organizational changes to our portfolio management and analytical teams, changes to our operational, compliance, sales and marketing support staffs and the streamlining of our U.S. domestic product offerings. Prior to the Columbia Management acquisition, in November 2008, we acquired the Seligman companies. The business of the Seligman companies involved the management of open- and closed-end investment funds, hedge funds and institutional portfolios. We believe the Columbia Management, Seligman and Grail acquisitions will help us achieve our goal of delivering consistent, strong investment performance through a variety of products and platforms by enhancing our investment management leadership, talent, technology infrastructure, manufacturing and distribution capabilities.

Revenues in the Asset Management segment are primarily earned as fees based on managed asset balances, which are impacted by both market movements and net asset flows. We may also earn performance fees from certain accounts where investment performance meets or exceeds certain pre-identified targets. At December 31, 2011, our Asset Management segment had $436 billion in managed assets worldwide. Managed assets include managed external client assets and managed owned assets. Managed external client assets include client assets for which we provide investment management services, such as the assets of the Columbia Management and Threadneedle® families of mutual funds and the assets of institutional clients. Managed external client assets include assets managed by sub-advisers we select. These external client assets are not reported on our Consolidated Balance Sheets. Managed owned assets include certain assets on our Consolidated Balance Sheets (such as the assets of the general account and the variable product funds held in the separate accounts of our life insurance subsidiaries) for which the Asset Management segment provides management services and recognizes management fees. For additional details regarding our assets under management and administration, see "Management's Discussion and Analysis of Financial Condition and Results of Operations" included in Part II, Item 7 of this Annual Report on Form 10-K.

Columbia Management

The investment management activities of Columbia Management are conducted primarily through investment management teams located throughout the United States. Each investment management team may focus on particular investment strategies, asset types, products and on services offered and distribution channels utilized. These teams manage the majority of assets in our Columbia Management family of mutual funds, as well as the assets we manage for institutional clients in separately managed accounts, collective funds, hedge funds, the general and separate accounts of the

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RiverSource Life companies, the assets of IDS Property Casualty and Ameriprise Certificate Company and the investment portfolio of Ameriprise Bank. These investment management teams also manage assets under sub-advisory arrangements.

We believe that delivering consistent, strong investment performance will positively impact our assets under management by increasing the competitiveness and attractiveness of many of our investment products. To achieve such performance, our investment teams are using a "5P" process that focuses on the five factors we believe are most significant for delivering results to clients: product definition, investment philosophy, people, investment process and performance expectation. These factors are continuously monitored and provide a framework around which portfolio managers can better define their objectives and the processes through which they plan to achieve them.

Each investment management team focuses on particular investment strategies and product sets. Our U.S. investment management teams are located in multiple locations, including Boston, Charlotte, Chicago, Los Angeles, Minneapolis, New York, Menlo Park and Portland. We have implemented a multi-platform approach to equity asset management using individual investment management teams with a combination of dedicated centralized analytical and equity trading resources. The portfolios we manage focus on varying sizes and categories of domestic and global equity securities. Our U.S. fixed income teams are organized by sectors, including investment grade, high yield, municipal, global and structured. This sector-based approach creates focused and accountable teams organized by expertise. Portfolio performance is measured to align client and corporate interests, and asset managers are incented to collaborate, employ best practices and execute in response to changing market and investment conditions consistent with established portfolio management principles.

In an effort to address changing market conditions and the evolving needs of investors, we may from time to time develop and offer new retail and institutional investment products with new and/or innovative investment strategies, including mutual funds, exchange-traded funds, separately managed accounts and collective funds. We may also provide seed money to our investment management teams to develop new products for our institutional clients.

Mutual Funds

We provide investment advisory, distribution and other services to the Columbia Management family of mutual funds. The Columbia Management family of funds includes retail mutual funds (both open- and closed-end funds) and variable product funds. Retail mutual funds are available through unaffiliated third-party financial institutions, the Ameriprise financial advisor network and as part of Ameriprise institutional 401(k) plans. Variable product funds are available as underlying investment options in variable annuity and variable life insurance products, including RiverSource products. The Columbia Management family of funds includes domestic and international equity funds, fixed income funds, cash management funds, balanced funds, specialty funds, absolute return funds and asset allocation funds, including fund-of-funds, with a variety of investment objectives. The consolidation of our legacy asset management business under the Columbia Management brand involved numerous fund mergers, which we completed during 2011. As the Columbia Management family of funds continues to evolve it is likely that additional fund mergers, as well as fund launches, will occur.

At December 31, 2011, our U.S. retail mutual funds had total managed assets of $148.9 billion in 141 funds. The variable insurance trust funds ("VIT Funds") that we manage had total managed assets at December 31, 2011 of $55.9 billion in 64 funds.

CMIA serves as investment manager for most of our U.S. mutual funds. Columbia Wanger Asset Management, LLC ("Columbia Wanger"), a subsidiary of CMIA, also serves as investment manager for certain funds. In addition, several of our subsidiaries perform ancillary services for the funds, including distribution, accounting, administrative and transfer agency services. CMIA and Columbia Wanger perform investment management services pursuant to contracts with the mutual funds that are subject to renewal by the mutual fund boards within two years after initial implementation, and thereafter, on an annual basis.

We earn management fees for managing the assets of the Columbia Management family of mutual funds based on the underlying asset values. We also earn fees by providing ancillary services to the Columbia Management family of mutual funds. Historically, certain Columbia Management equity and balanced funds included a performance incentive adjustment that changed the management fees, upward or downward, based on the fund's performance as measured against a designated index of peers. In 2011, in connection with various initiatives to achieve consistent fee structures across all Columbia Management funds, the boards and shareholders of such funds approved a modified fee structure that discontinued such performance incentive adjustments. Prior to such discontinuance, 2011 revenues were adjusted upward by approximately $5.5 million due to performance adjustments.

The Columbia Management family of funds also uses sub-advisers to diversify and enhance investment management expertise. Since the end of 2003, Threadneedle personnel have provided investment management services to Columbia Management global and international equity funds. In addition to Threadneedle, unaffiliated sub-advisers provide investment management services to certain Columbia Management funds.

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Separately Managed Accounts

We provide investment management services to pension, profit-sharing, employee savings and endowment funds, accounts of large- and medium-sized businesses and governmental clients, as well as the accounts of high-net-worth individuals and smaller institutional clients, including tax-exempt and not-for-profit organizations. Our services include investment of funds on a discretionary or non-discretionary basis and related services including trading, cash management and reporting. We offer various fixed income and equity investment strategies for our institutional clients with separately managed accounts. Through an arrangement with Threadneedle, we offer certain international and U.S. equity strategies to U.S. clients. We also offer U.S. equity and a variety of fixed income strategies to non-U.S. clients.

For our investment management services, we generally receive fees based on the market value of managed assets pursuant to contracts the client can terminate on short notice. Clients may also pay us fees based on the performance of their portfolio. At December 31, 2011, we managed a total of $32.2 billion in assets under this range of services.

Management of Institutional Owned Assets

We provide investment management services and recognize management fees for certain assets on our Consolidated Balance Sheets, such as the assets held in the general account of our RiverSource Life companies, assets held by Ameriprise Certificate Company and the investment portfolio of Ameriprise Bank. Our fixed income team manages the general account assets to produce a consolidated and targeted rate of return on investments based on a certain level of risk. Our fixed income and equity teams also manage separate account assets. The Asset Management segment's management of institutional owned assets for Ameriprise Financial subsidiaries is reviewed by the boards of directors and staff functions of the applicable subsidiaries consistent with regulatory investment requirements. At December 31, 2011, the Asset Management segment managed $40 billion of institutional owned assets.

Management of Collateralized Debt Obligations ("CDOs")

We provide collateral management services to special purpose vehicles that issue CDOs through a dedicated team of investment professionals. CDOs are securities collateralized by a pool of assets, primarily syndicated bank loans and, to a lesser extent, high-yield bonds. Multiple tranches of securities are issued by a CDO, offering investors various maturity and credit risk characteristics. Scheduled payments to investors are based on the performance of the CDO's collateral pool. For collateral management of CDOs, we earn fees based on the par value of assets and, in certain instances, we may also receive performance-based fees. At December 31, 2011, excluding CDOs managed by Threadneedle, we managed $5.3 billion of assets related to CDOs.

Private Funds

We provide investment advice and related services to private, pooled investment vehicles organized as limited partnerships, limited liability companies or foreign (non-U.S.) entities. These funds are currently exempt from registration under the Investment Company Act under either Section 3(c)(1) or Section 3(c)(7) or related interpretative relief and are organized as domestic and foreign funds. For investment management services, we generally receive fees based on the market value of assets under management, and we may also receive performance-based fees. As of December 31, 2011, we managed $2.8 billion in private fund assets.

Ameriprise Trust Collective Funds and Separately Managed Accounts

Collective funds are investment funds that are exempt from registration with the Securities and Exchange Commission ("SEC") and offered primarily through banks and other financial institutions to institutional clients such as retirement, pension and profit-sharing plans. We currently serve as investment manager to 38 Ameriprise Trust Company collective funds covering a broad spectrum of investment strategies. We receive fees for investment management services that are generally based upon a percentage of assets under management rather than performance. In addition to Columbia Management funds and RiverSource Trust Collective Funds, Ameriprise Trust Company offers separately managed accounts and collective funds to our retirement plan clients.

As of December 31, 2011, we managed $6.7 billion of Ameriprise Trust Collective Funds and separate accounts for Ameriprise Trust Company clients. This amount does not include the Columbia Management family of mutual funds held in other retirement plans because these assets are included under assets managed for institutional and retail clients and within the "Columbia Management — Mutual Funds" section above.

Sub-advised Accounts

CMIA acts as sub-adviser for certain domestic and international mutual funds, private banking individually managed accounts and common trust funds advised by other firms. CMIA continues to pursue opportunities to sub-advise additional investment company assets in the U.S. and overseas. As with the Columbia Management funds, we earn management fees for these services based on the underlying asset value of the funds we sub-advise. As of December 31, 2011, we managed over $34.1 billion in assets in a sub-advisory capacity.

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Retail Distribution

Columbia Management Investment Distributors, Inc. acts as the principal underwriter and distributor of our Columbia Management family of mutual funds. Pursuant to distribution agreements with the funds, we offer and sell fund shares on a continuous basis and pay certain costs associated with the marketing and selling of shares. We earn commissions for distributing the Columbia Management funds through sales charges (front-end or back-end loads) on certain classes of shares and distribution and servicing-related (12b-1) fees based on a percentage of fund assets, and receive intersegment allocation payments. This revenue is impacted by overall asset levels of the funds.

Columbia Management fund shares are sold through both our Advice & Wealth Management segment and through unaffiliated third-party financial intermediaries. Among our third-party distribution arrangements is a strategic distribution agreement entered into in connection with the acquisition of Columbia Management that provides ongoing access to clients of Bank of America affiliated distributors, including U.S. Trust. Fees and reimbursements paid to such intermediaries may vary based on sales, redemptions, asset values, and marketing and support activities provided by the intermediary. Intersegment distribution expenses for services provided by our Advice & Wealth Management Segment are eliminated in our consolidated results.

Institutional and High Net Worth Distribution

We offer separately managed account services and private funds to high net worth clients and to a variety of institutional clients, including pension plans, employee savings plans, foundations, endowments, corporations, banks, trusts, governmental entities, high-net-worth individuals and not-for-profit organizations. We provide investment management services for insurance companies, including our insurance subsidiaries, as well as hedge fund management and other alternative investment products. We also provide, primarily through our trust company subsidiary and one of our broker-dealer subsidiaries, a variety of services for our institutional clients that sponsor retirement plans. We have dedicated institutional and sub-advisory sales teams that market directly to such institutional clients.

At December 31, 2011, we managed $121.4 billion of assets for Columbia Management institutional clients.

Threadneedle

We offer international investment management products and services to both retail and institutional clients primarily through Threadneedle, which is headquartered in Luxembourg and maintains its primary investment operations in London. At December 31, 2011, Threadneedle had $113.6 billion in managed assets worldwide.

Investment Management Capabilities

Threadneedle's investment management activities are conducted primarily from its London office. Threadneedle's investment philosophy is to share investment ideas and alpha generation across teams and asset classes. Each investment management team may focus on particular investment strategies, asset types, products and services offered and distribution channels. These teams manage the majority of assets in the Threadneedle family of mutual funds, the assets of Threadneedle's alternative investment structures and the assets managed for Threadneedle's institutional clients. These investment management teams also manage assets under sub-advisory arrangements, including certain Columbia Management funds.

Offerings

Threadneedle offers a wide range of products and services, including segregated asset management, mutual funds and hedge funds to institutional clients as well as to retail clients in Europe, the United Kingdom, the Middle East and the Asia-Pacific region. Threadneedle's mutual fund and hedge fund product range includes different risk-return options across regions, markets, asset classes and product structures, which include Open Ended Investment Companies ("OEICs"), Societe d'Investissement A Capital Variable ("SICAV"), unit trusts, Undertakings for Collective Investments in Transferable Securities and offshore vehicles.

Threadneedle's institutional business offers separately managed accounts to pension funds and other institutions. At December 31, 2011, Threadneedle had $81 billion in managed assets in separately managed accounts including assets managed for the Zurich Financial Services Group. Threadneedle distributes its institutional products in Europe, Asia, the U.S., the Middle East and Australia.

For more information on the funds and other investment vehicles and services offered by Threadneedle, see "Management's Discussion and Analysis of Financial Condition and Results of Operations" included in Part II, Item 7 of this Annual Report on Form 10-K.

Distribution

Threadneedle has organized its sales force and support services into two major segments: retail markets and institutional markets. The institutional team concentrates on establishing strong relationships with institutional clients and the leading

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global and national consultancy firms. On the retail side, Threadneedle mutual funds are sold through financial intermediaries and institutions, including banks, life insurance companies, independent financial advisers, wealth managers and platforms offering a variety of investment products. Threadneedle's dedicated Global Financial Institutions team offers internationally coordinated coverage to such financial institutions.

Our Segments — Annuities

Our Annuities segment provides RiverSource variable and fixed annuity products to retail clients. The RiverSource Life companies provide variable annuity products through our affiliated advisors, and fixed annuity products are provided through both affiliated and unaffiliated advisors and financial institutions. Revenues for our variable annuity products are primarily earned as fees based on underlying account balances, which are impacted by both market movements and net asset flows. Revenues for our fixed annuity products are primarily earned as net investment income on assets supporting fixed account balances, with profitability significantly impacted by the spread between net investment income earned and interest credited on the fixed account balances. We also earn net investment income on owned assets supporting reserves for immediate annuities and for certain guaranteed benefits offered with variable annuities and on capital supporting the business. Intersegment revenues for this segment reflect fees paid by our Asset Management segment for marketing support and other services provided in connection with the availability of VIT Funds under the variable annuity contracts. Intersegment expenses for this segment include distribution expenses for services provided by our Advice & Wealth Management segment, as well as expenses for investment management services provided by our Asset Management segment. All intersegment activity is eliminated in our consolidated results. In 2011, 24% of our revenues from external clients were attributable to our Annuities segment.

Our products include deferred variable and fixed annuities, in which assets accumulate until the contract is surrendered, the contractholder (or in some contracts, the annuitant) dies or the contractholder or annuitant begins receiving benefits under an annuity payout option. We also offer immediate annuities, in which payments begin within one year of issue and continue for life or for a fixed period of time. The relative proportion between fixed and variable annuity sales is generally driven by the relative performance of the equity and fixed income markets. Fixed sales are generally stronger when yields available in the fixed income markets are relatively high than when yields are relatively low. Variable sales are generally stronger in times of superior performance in equity markets than in times of weak performance in equity markets. The relative proportion between fixed and variable annuity sales is also influenced by product design and other factors. In addition to the revenues we generate on these products, we also receive fees charged on assets allocated to our separate accounts to cover administrative costs and a portion of the management fees from the underlying investment accounts in which assets are invested, as discussed below under "Variable Annuities." Investment management performance is critical to the profitability of our RiverSource annuity business.

Variable Annuities

A variable annuity provides a contractholder with investment returns linked to underlying investment accounts of the contractholder's choice. These underlying investment options may include the VIT Funds previously discussed (see "Business — Our Segments — Asset Management — Columbia Management — Mutual Funds," above) as well as variable portfolio funds of other companies. RiverSource variable annuity products in force offer a fixed account investment option with guaranteed minimum interest crediting rates ranging up to 4% at December 31, 2011. In 2010, we introduced multiple versions of our RAVA 5^SM variable annuity, including RAVA 5 Access® variable annuity, RAVA 5 Advantage® variable annuity and RAVA 5 Select® variable annuity.

Our Portfolio Navigator asset allocation program is available under our variable annuities. The Portfolio Navigator program allows clients to allocate their contract value to one of five funds of funds, each of which invests in various underlying funds. The Portfolio Navigator program is designed to allow a contract purchaser to select investment options based on the purchaser's investment time horizon, risk tolerance and investment goals. We believe the Portfolio Navigator program helps a contract purchaser tailor the performance of annuities and life insurance policies to their specific needs and to keep investment allocations on track over time. CMIA, our investment management subsidiary, serves as investment adviser for the funds of funds and all of the underlying funds in which the funds of funds invest.

Substantially all of the variable annuity contracts we issue include guaranteed minimum death benefit ("GMDB") provisions designed to protect clients against market risk. Contract purchasers can choose to add optional benefit provisions to their contracts to meet their needs, including guaranteed minimum withdrawal benefit ("GMWB") and guaranteed minimum accumulation benefit ("GMAB") provisions. Approximately 98% of RiverSource Life's overall variable annuity assets include a GMDB provision and approximately 50% of RiverSource Life's overall variable annuity assets include a GMWB or GMAB provision. In general, these features can help protect contractholders and beneficiaries from a shortfall in death or living benefits due to a decline in the value of their underlying investment accounts.

The general account assets of our life insurance subsidiaries support the contractual obligations under the guaranteed benefit the company offers (see "Business — Our Segments — Asset Management — Columbia Management —

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Management of Institutional Owned Assets" above). As a result, we bear the risk that protracted under-performance of the financial markets could result in guaranteed benefit payments being higher than what current account values would support. Our exposure to risk from guaranteed benefits generally will increase when equity markets decline. You can find a discussion of liabilities and reserves related to our annuity products in Part II, Item 7A of this Annual Report on Form 10-K — "Quantitative and Qualitative Disclosures About Market Risk", as well as in Note 2, Note 10, Note 11 and Note 15 to our Consolidated Financial Statements included in Part II, Item 8 of this Annual Report on Form 10-K.

RiverSource variable annuities provide us with fee-based revenue in the form of mortality and expense risk fees, marketing support and administrative fees, fees charged for optional features elected by the contractholder, and other contract charges. We receive marketing support payments from the VIT Funds underlying our variable annuity products as well as Rule 12b-1 distribution and servicing-related fees from the VIT Funds and the underlying funds of other companies. In addition, we receive marketing support payments from the affiliates of other companies' funds included as investment options in our RiverSource variable annuity products.

Fixed Annuities

RiverSource fixed annuity products provide a contractholder with cash value that increases by a fixed or indexed interest rate. We periodically reset rates at our discretion subject to certain policy terms establishing minimum guaranteed interest crediting rates. Our earnings from fixed annuities are based upon the spread between rates earned on assets purchased with fixed annuity deposits and the rates at which interest is credited to our RiverSource fixed annuity contracts.

In 2007, we discontinued new sales of equity indexed annuities, although we continue to service existing policies.

RiverSource fixed annuity contracts in force provide guaranteed minimum interest crediting rates ranging from 1.0% to 5.0% at December 31, 2011. New contracts issued provide guaranteed minimum interest rates in compliance with state laws.

Liabilities and Reserves for Annuities

We maintain adequate financial reserves to cover the risks associated with guaranteed benefit provisions added to variable annuity contracts in addition to liabilities arising from fixed and variable annuity base contracts. You can find a discussion of liabilities and reserves related to our annuity products in Part II, Item 7A of this Annual Report on Form 10-K—"Quantitative and Qualitative Disclosures About Market Risk", as well as in Note 2, Note 10, Note 11 and Note 15 to our Consolidated Financial Statements included in Part II, Item 8 of this Annual Report on Form 10-K.

Financial Strength Ratings

Our insurance company subsidiaries that issue RiverSource annuity products receive ratings from independent rating organizations. Ratings are important to maintain public confidence in our insurance subsidiaries and our protection and annuity products. For a discussion of the financial strength ratings of our insurance company subsidiaries, see the "Our Segments — Protection — Financial Strength Ratings" section, below.

Distribution

Our RiverSource Distributors subsidiary is a registered broker-dealer that serves as the principal underwriter and distributor of RiverSource variable and fixed annuities through AFSI, as well as serving as the distributor of fixed annuities through third-party channels such as banks and broker-dealer networks. Our affiliated advisors are the largest providers of RiverSource annuity products, although they can offer variable annuities from a select number of unaffiliated insurers as well.

In the fourth quarter of 2010, RiverSource Life companies discontinued the sale of variable annuity products through third-party channels in order to focus on the distribution of variable annuity products within our Advice & Wealth Management segment. We continue to provide RiverSource fixed annuity products through third-party channels. In 2011, we had total cash sales for fixed annuity products through third-party channels of $158 million. As of December 31, 2011, we had distribution agreements for RiverSource fixed annuity products in place with more than 120 third party firms.

Our Segments — Protection

Our Protection segment provides a variety of products to address the protection and risk management needs of our retail clients, including life, disability income and property-casualty insurance. These products are designed to provide a lifetime of solutions that allow clients to protect income, grow assets and give to loved ones or charity.

Life and disability income products are primarily provided through our affiliated advisors. Our property-casualty products are sold primarily through affinity relationships. We issue insurance policies through our life insurance subsidiaries and the Property Casualty companies (as defined below under "Ameriprise Auto & Home Insurance Products"). The primary sources of revenues for this segment are premiums, fees and charges we receive to assume insurance-related risk. We earn net

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investment income on owned assets supporting insurance reserves and capital supporting the business. We also receive fees based on the level of assets supporting variable universal life separate account balances. This segment earns intersegment revenues from fees paid by our Asset Management segment for marketing support and other services provided in connection with the availability of VIT Funds under the variable universal life contracts. Intersegment expenses for this segment include distribution expenses for services provided by our Advice & Wealth Management segment, as well as expenses for investment management services provided by our Asset Management segment. All intersegment activity is eliminated in consolidation. In 2011, 19% of our revenues from external clients were attributable to our Protection business.

RiverSource Insurance Products

Through the RiverSource Life companies, we issue both variable and fixed universal life insurance, traditional life insurance and disability income insurance. These solutions are designed to help clients protect their income, grow assets and give to those individuals or causes that they care most about. Universal life insurance is a form of permanent life insurance characterized by flexible premiums, flexible death benefits and unbundled pricing factors (i.e., mortality, interest and expenses). Variable universal life insurance combines the premium and death benefit flexibility of universal life with underlying fund investment flexibility and the risks associated therewith. Traditional life insurance refers to whole and term life insurance policies. While traditional life insurance typically pays a specified sum to a beneficiary upon death of the insured for a fixed premium, we also offer a term life insurance product that will generally pay the death benefit in the form of a monthly income stream to a date specified at issue. We also offer a chronic care rider, AdvanceSource® rider, on our new permanent insurance products. This rider allows its policy holder to accelerate a portion of the life insurance death benefit in the event of a qualified chronic care need.

Our sales of RiverSource individual life insurance in 2011, as measured by scheduled annual premiums, lump sum and excess premiums, consisted of 30% variable universal life, 65% fixed universal life and 5% traditional life. Our RiverSource Life companies issue only non-participating policies that do not pay dividends to policyholders from the insurer's earnings.

Assets supporting policy values associated with fixed account life insurance and annuity products, as well as those assets associated with fixed account investment options under variable insurance and annuity products (collectively referred to as the "fixed accounts"), are part of the RiverSource Life companies' general accounts. Under fixed accounts, the RiverSource Life companies bear the investment risk. More information on the RiverSource Life companies' general accounts is found under "Business — Our Segments — Asset Management — Columbia Management — Management of Institutional Owned Assets" above.

Variable Universal Life Insurance

Variable universal life insurance provides life insurance coverage along with investment returns linked to underlying investment accounts of the policyholder's choice. Options may include VIT Funds discussed above, Portfolio Navigator funds of funds, as well as variable portfolio funds of other companies. RiverSource variable universal life insurance products in force offer a fixed account investment option with guaranteed minimum interest crediting rates ranging from 3.0% to 4.5% at December 31, 2011.

Fixed Universal Life Insurance and Traditional Whole Life Insurance

Fixed universal life and traditional whole life insurance policies do not subject the policyholder to the investment risks associated with variable universal life insurance.

RiverSource fixed universal life insurance products provide life insurance coverage and cash value that increases by a fixed interest rate. The rate is periodically reset at the discretion of the issuing company subject to certain policy terms relative to minimum interest crediting rates. RiverSource fixed universal life insurance policies in force provide guaranteed minimum interest crediting rates ranging from 2.0% to 5.0% at December 31, 2011. The majority of fixed universal life policies issued in recent years provide a secondary guarantee that ensures, subject to specified conditions, the policy will not terminate and will continue to provide a death benefit even if there is insufficient policy value to cover the monthly deductions and charges. In 2009, we discontinued new sales of traditional whole life insurance; however, we continue to service existing policies. Our in force traditional whole life insurance policies combine a death benefit with a cash value that generally increases gradually over a period of years.

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In 2011, RiverSource Life began offering indexed universal life ("IUL") insurance. IUL is similar to universal life insurance in that it provides life insurance coverage and cash value that increases as a result of credited interest. In addition, as with universal life insurance, there is a minimum guaranteed credited rate of interest. Unlike universal life insurance, the rate of credited interest above the minimum guarantee is linked to the S&P 500 Index (subject to a cap).

Term Life Insurance

Term life insurance provides a death benefit, but it does not build up cash value. The policyholder chooses the term of coverage with guaranteed premiums at the time of issue. During the chosen term, we cannot raise premium rates even if claims experience deteriorates. At the end of the chosen term, coverage may continue with higher premiums until the maximum age is attained, or the policy expires with no value. We also offer a term life insurance product that pays the death benefit in the form of a monthly income stream.

Disability Income Insurance

Disability income insurance provides monthly benefits to individuals who are unable to earn income either at their occupation at time of disability ("own occupation") or at any suitable occupation ("any occupation") for premium payments that are guaranteed not to change. Depending upon occupational and medical underwriting criteria, applicants for disability income insurance can choose "own occupation" and "any occupation" coverage for varying benefit periods. In some states, applicants may also choose various benefit provisions to help them integrate individual disability income insurance benefits with social security or similar benefit plans and to help them protect their disability income insurance benefits from the risk of inflation.

Long Term Care Insurance

As of December 31, 2002, the RiverSource Life companies discontinued underwriting long term care insurance. However, our affiliated advisors sell long term care insurance issued by other companies, including Genworth Life Insurance Company, John Hancock Life Insurance Company and Prudential Insurance Company.

In 2004, RiverSource Life and RiverSource Life of NY began to file for approval to implement rate increases on most of their existing blocks of nursing home-only indemnity long term care insurance policies. Implementation of these rate increases began in early 2005 and continues. We have received approval for some or all requested increases in the 50 states where increases have been requested, with an average approved cumulative rate increase of 76.4% of premium on all such policies where an increase was requested.

In 2007, RiverSource Life and RiverSource Life of NY began to file for approval to implement rate increases on most of their existing blocks of comprehensive reimbursement long term care insurance policies. Implementation of these rate increases began in late 2007 and continues. We have received approval for some or all requested increases in 48 states, with an average approved cumulative rate increase of 23.9% of premium on all such policies where an increase was requested.

We intend to seek additional rate increases with respect to these and other existing blocks of long term care insurance policies, subject to regulatory approval.

Ameriprise Auto & Home Insurance Products

We offer personal auto, home and excess personal liability insurance products through IDS Property Casualty and its subsidiary, Ameriprise Insurance Company (the "Property Casualty companies"). Our Property Casualty companies provide personal auto, home and liability coverage to clients in 43 states and the District of Columbia.

Distribution and Marketing Channels

Our Property Casualty companies do not have field agents; rather, we use co-branded direct marketing to sell our personal auto and home insurance products through alliances with commercial institutions and affinity groups, and directly to our clients and the general public. We also receive referrals through our financial advisor network. Our Property Casualty companies have a multi-year distribution agreement with Costco Insurance Agency, Inc., Costco's affiliated insurance agency. Costco members represented 61% of all new policy sales of our Property Casualty companies in 2011. Through other alliances, we market our property casualty products to customers of Ford Motor Credit Company and offer personal home insurance products to customers of the Progressive Group. Termination of one or more of these alliances could adversely affect our ability to generate new sales and retain existing business.

We offer RiverSource life insurance products almost exclusively through our affiliated advisors. Our affiliated advisors offer insurance products issued predominantly by the RiverSource Life companies, though they may also offer insurance products of unaffiliated carriers, subject to certain qualifications.

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Reinsurance

We reinsure a portion of the insurance risks associated with our life, disability income and long term care insurance products through reinsurance agreements with unaffiliated reinsurance companies. We use reinsurance to limit losses, reduce exposure to large risks and provide additional capacity for future growth. To manage exposure to losses from reinsurer insolvencies, we evaluate the financial condition of reinsurers prior to entering into new reinsurance treaties and on a periodic basis during the terms of the treaties. Our insurance companies remain primarily liable as the direct insurers on all risks reinsured.

Generally, we currently reinsure 90% of the death benefit liability related to almost all individual fixed and variable universal life and term life insurance products. As a result, the RiverSource Life companies typically retain and are at risk for, at most, 10% of each policy's death benefit from the first dollar of coverage for new sales of these policies, subject to the reinsurers fulfilling their obligations. The RiverSource Life companies began reinsuring risks at this level during 2001 (2002 for RiverSource Life of NY) for term life insurance and 2002 (2003 for RiverSource Life of NY) for individual fixed and variable universal life insurance. Policies issued prior to these dates are not subject to these reinsurance levels. Generally, the maximum amount of life insurance risk retained by the RiverSource Life companies is $1.5 million on a single life and $1.5 million on any flexible premium survivorship life policy. Risk on fixed and variable universal life policies is reinsured on a yearly renewable term basis. Risk on most term life policies starting in 2001 (2002 for RiverSource Life of NY) is reinsured on a coinsurance basis, a type of reinsurance in which the reinsurer participates proportionally in all material risks and premiums associated with a policy.

For existing long term care policies, RiverSource Life retained 50% of the risk and ceded on a coinsurance basis the remaining 50% of the risk to subsidiaries of Genworth Financial, Inc. ("Genworth"). For RiverSource Life of NY, this reinsurance arrangement applies for 1996 and later issues only. As of December 31, 2011, RiverSource Life companies' credit exposure to Genworth under this reinsurance arrangement was approximately $1.5 billion. Genworth also serves as claims administrator for our long term care policies.

Generally, RiverSource Life companies retain at most $5,000 per month of risk per life on disability income policies sold on policy forms introduced in most states in October 2007 (August 2010 for RiverSource Life of NY) and they reinsure the remainder of the risk on a coinsurance basis with unaffiliated reinsurance companies. RiverSource Life companies retain all risk for new claims on disability income contracts sold on other policy forms. Our insurance companies also retain all risk on accidental death benefit claims and substantially all risk associated with waiver of premium provisions.

We also reinsure a portion of the risks associated with our personal auto, home and excess liability insurance products through three types of reinsurance agreements with unaffiliated reinsurance companies, as follows:

•

We purchase reinsurance with a limit of $5 million per loss, and we retain $750,000 per loss.

•

We purchase catastrophe reinsurance that, for 2011, had a limit of $90 million per event and we retained $10 million per event. For 2012, our catastrophe reinsurance has a limit of $110 million per event and we retain $20 million.

•

We purchase reinsurance that limits our personal liability insurance exposure to 10% of any loss. This 90% quota share treaty uses the same reinsurers as our excess of loss treaty.

See Note 7 to our Consolidated Financial Statements included in Part II, Item 8 of this Annual Report on Form 10-K for additional information on reinsurance.

Liabilities and Reserves

We maintain adequate financial reserves to cover the insurance risks associated with the insurance products we issue. Generally, reserves represent estimates of the invested assets that our insurance companies need to hold to provide adequately for future benefits and expenses. For a discussion of liabilities and reserves related to our insurance products, see Note 2 to our Consolidated Financial Statements included in Part II, Item 8 of this Annual Report on Form 10-K.

Financial Strength Ratings

Independent rating organizations rate our insurance subsidiaries. Rating organizations evaluate the financial soundness and claims-paying ability of insurance companies continually, and they base their ratings on a number of different factors, including market position in core products and market segments, risk-adjusted capitalization and the quality of the company's investment portfolios. More specifically, the ratings assigned are developed from an evaluation of a company's balance sheet strength, operating performance and business profile. Balance sheet strength reflects a company's ability to meet its current and ongoing obligations to its contractholders and policyholders and includes analysis of a company's capital adequacy. The evaluation of operating performance centers on the stability and sustainability of a company's sources of earnings. The business profile component of the rating considers a company's mix of business, market position and depth and experience of management.

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Our insurance subsidiaries' ratings are important to maintain public confidence in our protection and annuity products. Lowering of our insurance subsidiaries' ratings could have a material adverse effect on our ability to market our protection and annuity products and could lead to increased surrenders of these products. We list our ratings on our website at ir.ameriprise.com. For the most current ratings information, please see the individual rating agency's website.

Our Segments — Corporate & Other

Our Corporate & Other segment consists of net investment income or loss on corporate level assets, including excess capital held in our subsidiaries and other unallocated equity and other revenues as well as unallocated corporate expenses.

Competition

We operate in a highly competitive global industry. As a diversified financial services firm, we compete directly with a variety of financial institutions, including registered investment advisors, securities brokers, asset managers, banks and insurance companies. Our competitors may have greater financial resources, broader and deeper distribution capabilities and products and services than we do. We compete directly with these entities for the provision of products and services to clients, as well as for our financial advisors and investment management personnel. Our products and services also compete indirectly in the marketplace with the products and services of our competitors.

Our Advice & Wealth Management segment competes with securities broker-dealers, independent broker-dealers, financial planning firms, registered investment advisors, insurance companies and other financial institutions in attracting and retaining financial advisors and their clients. Competitive factors influencing our ability to attract and retain financial advisors include compensation structures, brand recognition and reputation, product offerings and technology and service capabilities and support. Further, our financial advisors compete for clients with a range of other advisors, broker-dealers and direct channels, including wirehouses, regional broker-dealers, independent broker-dealers, insurers, banks, asset managers, registered investment advisers and direct distributors. Competitive factors influencing our ability to attract and retain clients include price, reputation, product offerings and technology and service quality.

Our Asset Management segment competes to acquire and retain managed and administered assets against a substantial number of firms, including those in the categories listed above. Such competitors may have achieved greater economies of scale, may offer a broader array of products and services, including affiliated products and services, and may have greater distribution capabilities. Competitive factors influencing our performance in this industry include investment performance, product offerings and innovation, product ratings, fee structures, advertising, service quality, and brand recognition and reputation. The ability to create and maintain and deepen relationships with distributors and clients also plays a significant role in our ability to acquire and retain managed and administered assets. Additional detail regarding the nature and effects of competition in the Asset Management segment is provided below in Item 1A of this Annual Report on Form 10-K — "Risk Factors."

Competitors of our Annuities and Protection segments consist of both stock and mutual insurance companies. Competitive factors affecting the sale of annuity and insurance products include price, product features, hedging capability, investment performance, commission structure, perceived financial strength, claims-paying ratings, service, brand recognition, distribution capabilities and financial strength ratings from rating organizations such as A.M. Best. Competitive factors affecting the sale of property casualty insurance products also include brand recognition and distribution capabilities.

Technology

We have an integrated customer management system that serves as the hub of our technology platform. In addition, we have specialized product engines that manage individual brokerage, mutual fund, insurance and banking client accounts. Over the years we have updated our platform to include new product lines such as brokerage, deposit, credit and products of other companies, wrap accounts and e-commerce capabilities for our financial advisors and clients. We also use a proprietary suite of processes, methods, and tools for our financial planning services. We update our technological capabilities regularly to help maintain an adaptive platform design that aims to enhance the productivity of our affiliated advisors and will allow a faster, lower-cost response to emerging business opportunities, compliance requirements and marketplace trends.

Most of our applications run on a technology infrastructure that we outsourced to IBM in 2002. Under this arrangement, IBM is responsible for all mainframe, midrange and end-user computing operations and a portion of our web hosting and help desk operations. Also, we outsource our voice network operations to AT&T. In addition to these two arrangements, we have outsourced our production support and a substantial portion of the development and maintenance of our computer applications to other firms. In 2009, we initiated a major replacement of our brokerage and clearing platforms, and we continue to roll out that implementation in stages across our affiliated advisor network. We expect to have all advisors on this technology platform by the end of 2012.

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We have developed a comprehensive business continuity plan that covers business disruptions of varying severity and scope and addresses the loss of a geographic area, building, staff, data systems and/or telecommunications capabilities. We review and test our business continuity plan on an ongoing basis and update it as necessary, and we require our key technology vendors and service providers to do the same. Under our business continuity plan, we expect to be able to continue doing business and to resume operations with minimal service impacts. However, under certain scenarios, the time that it would take for us to recover and resume operations may significantly increase depending on the extent and geographic scope of the disruption and the number of personnel affected.

Geographic Presence

For years ended December 31, 2011, 2010 and 2009, approximately 89%, 88% and 85%, respectively, of our long-lived assets were located in the United States and approximately 94%, 94% and 95%, respectively, of our net revenues were generated in the United States. Our foreign operations are conducted predominantly through Threadneedle, as described in this Annual Report on Form 10-K under "Business — Our Segments — Asset Management — Threadneedle."

Employees

At December 31, 2011, we had 11,139 employees, including 2,230 employee affiliated advisors (which does not include our franchisee advisors, who are not employees of our company). We are not subject to collective bargaining agreements, and we believe that our employee relations are strong.

Intellectual Property

We rely on a combination of contractual rights and copyright, trademark, patent and trade secret laws to establish and protect our intellectual property. In the United States and other jurisdictions, we have established certain service marks and brand names that we consider important to the marketing of our products and services, including but not limited to Ameriprise Financial, Columbia Management, RiverSource and Threadneedle. We have in the past and will in the future take action to protect our intellectual property.

Regulation

Virtually all aspects of our business, including the activities of the parent company and our various subsidiaries, are subject to various federal, state and foreign laws and regulations. These laws and regulations provide broad regulatory, administrative and enforcement powers to supervisory agencies and other bodies, including U.S. federal and state regulatory agencies, foreign government agencies or regulatory bodies and U.S. and foreign securities exchanges. The costs of complying with such laws and regulations can be significant, and the consequences for the failure to comply may include civil or criminal charges, fines, censure, the suspension of individual employees, and restrictions on or prohibitions from engaging in certain lines of business.

In response to the economic crisis of 2008 and 2009, the laws and regulations governing the financial services industry have continued to evolve. In 2010, the Dodd-Frank Wall Street Reform and Consumer Protection Act ("Dodd-Frank Act") was enacted into law. The Dodd-Frank Act called for sweeping changes in the supervision and regulation of the financial services industry designed to provide for greater oversight of financial industry participants, reduce risk in banking practices and in securities and derivatives trading, enhance public company corporate governance practices and executive compensation disclosures, and provide greater protections to individual consumers and investors. Certain elements of the Dodd-Frank Act have since taken effect, though the details of many provisions remain subject to additional studies and the adoption of final rules by applicable regulatory agencies. Domestic and international legal and regulatory changes, including those resulting from the Dodd-Frank Act, have impacted and may in the future impact the manner in which we are regulated and the manner in which we operate and govern our businesses.

The discussion set forth below provides a general framework of the laws and regulations impacting our businesses. Certain of our subsidiaries may be subject to one or more elements of this regulatory framework depending on the nature of their business, the products and services they provide and the geographic locations in which they operate. To the extent the discussion includes references to statutory and regulatory provisions, it is qualified in its entirety by reference to these statutory and regulatory provisions.

Broker-Dealer and Securities Regulation

Certain of our subsidiaries are registered with the SEC as broker-dealers under the Securities Exchange Act of 1934 ("Exchange Act") and with certain states, the District of Columbia and other U.S. territories. Our broker-dealer subsidiaries are also members of self-regulatory organizations, including the Financial Industry Regulatory Authority ("FINRA"), and are subject to the regulations of these organizations. The SEC and FINRA have stringent rules with respect to the net capital requirements and the marketing and trading activities of broker-dealers. Our broker-dealer subsidiaries, as well as our financial advisors and other personnel, must obtain all required state and FINRA licenses and registrations to engage in the

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securities business. SEC regulations also impose notice requirements and capital limitations on the payment of dividends by a broker-dealer to a parent.

Other agencies, exchanges and self-regulatory organizations of which certain of our broker-dealer subsidiaries are members, and subject to applicable rules and regulations of, include the Commodities Futures Trading Commission ("CFTC"), the National Futures Association and various stock exchanges. One of our broker-dealer subsidiaries is registered with the CFTC and is thus subject to the requirements of the Commodity Exchange Act. AEIS is a member of the Boston Stock Exchange and is a stockholder in the Chicago Stock Exchange. In addition, certain subsidiaries may also be registered as investment advisers or insurance agencies and subject to the regulations described in the following sections.

Ameriprise Certificate Company, our face-amount certificate company, is regulated as an investment company under the Investment Company Act. As a registered investment company, Ameriprise Certificate Company must observe certain governance, disclosure, record-keeping, operational and marketing requirements. Investment companies are required by the SEC to adopt and implement written policies and procedures designed to prevent violations of the federal securities laws and to designate a chief compliance officer. Ameriprise Certificate Company pays dividends to the parent company and is subject to capital requirements under applicable law and understandings with the SEC and the Minnesota Department of Commerce.

Ameriprise India Insurance Brokers Services Private Limited ("AIIBSPL"), an Indian subsidiary, is licensed by India's IRDA as a direct insurance broker and is subject to regulation by the IRDA and the Indian Registrar of Companies. AIIBSPL is subject to various ongoing internal control and compliance policies, capital requirements and statutory audit and reporting obligations as a condition to maintaining its license. Further, AIIBSPL employees are required to receive training prior to becoming licensed to provide insurance brokerage services.

Our financial advisors are subject to various regulations that impact how they operate their practices, including those related to supervision, sales methods, trading practices, record-keeping and financial reporting. As a result of the Dodd-Frank Act, our financial advisors may in the future become subject to a fiduciary standard of conduct in connection with their broker-dealer activities that is no less stringent than what is currently applied to investment advisers under the Investment Advisers Act of 1940 ("Advisers Act"). In January 2011, the SEC released a study recommending such a uniform fiduciary standard of conduct for broker-dealers and investment advisers. In addition, because our independent contractor advisor platform is structured as a franchise system, we are also subject to Federal Trade Commission and state franchise requirements. Compliance with these and other regulatory requirements adds to the cost and complexity of operating our business. We maintain franchise standards and requirements for our franchisees regardless of location. We have made and expect to continue to make significant investments in our compliance processes, enhancing policies, procedures and oversight to monitor our compliance with the numerous legal and regulatory requirements applicable to our business.

Investment Adviser and Asset Management Regulation

In the U.S., certain of our subsidiaries are registered as investment advisers under the Advisers Act and subject to regulation by the SEC. The Advisers Act imposes numerous obligations on registered investment advisers, including fiduciary duties, disclosure obligations and record-keeping, and operational and marketing restrictions. Investment advisers are required by the SEC to adopt and implement written policies and procedures designed to prevent violations of the Advisers Act and to designate a chief compliance officer responsible for administering these policies and procedures. Our registered investment advisers may also be subject to certain obligations of the Investment Company Act based on their status as investment advisers to investment companies that we, or third parties, sponsor. The SEC is authorized to institute proceedings and impose sanctions for violations of either the Advisers Act or the Investment Company Act, which may include fines, censure or the suspension or termination of an investment adviser's registration. As an outcome of the Dodd-Frank Act, Congress is considering whether to modify the SEC's investment adviser examination program by authorizing one or more self-regulatory organizations to examine, subject to SEC oversight, SEC-registered investment advisers.

Outside of the U.S., our Threadneedle group is authorized to conduct its financial services business in the United Kingdom under the Financial Services and Markets Act 2000. Threadneedle is regulated by the Financial Services Authority ("FSA"), which imposes certain capital, operational and compliance requirements. We expect that the FSA's responsibilities for the oversight of Threadneedle will be transitioned to the Financial Conduct Authority by the end of 2012. Threadneedle companies and activities are also subject to local country regulations in Europe, Dubai, Hong Kong, Singapore, the U.S. and Australia. Additionally, many of our subsidiaries are also subject to foreign, state and local laws with respect to advisory services that are offered and provided by these subsidiaries, including services provided to government pension plans. Foreign and state governments may also institute proceedings and impose sanctions for violations of their local laws, which may include fines, censure or the suspension or termination of the right to do certain types of business in a state.

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Our trust company is primarily regulated by the Minnesota Department of Commerce (Banking Division) and is subject to capital adequacy requirements under Minnesota law. It may not accept deposits or make personal or commercial loans. As a provider of products and services to tax-qualified retirement plans and IRAs, certain aspects of our business, including the activities of our trust company, fall within the compliance oversight of the U.S. Departments of Labor and Treasury, particularly regarding the enforcement of the Employee Retirement Income Security Act of 1974, as amended ("ERISA"), and the tax reporting requirements applicable to such accounts. Our trust company, as well as our investment adviser subsidiaries, may be subject to ERISA, and the regulations thereunder, insofar as they act as a "fiduciary" under ERISA with respect to certain ERISA clients. ERISA and related provisions of the Internal Revenue Code impose duties on persons who are fiduciaries under ERISA, and prohibit certain transactions involving the assets of ERISA plan clients and certain transactions by the fiduciaries to the plans. The Department of Labor is considering proposed regulations that would significantly expand the scope of who is considered an ERISA fiduciary and what activity constitutes acting as an ERISA fiduciary, while prohibiting certain additional types of transactions conducted by persons who are considered fiduciaries.

Insurance Regulation

Our insurance subsidiaries are subject to supervision and regulation by states and other territories where they are domiciled or otherwise licensed to do business. The primary purpose of this regulation and supervision is to protect the interests of contractholders and policyholders. The Minnesota Department of Commerce (Insurance Division), the Wisconsin Office of the Commissioner of Insurance, and the New York State Insurance Department (the "Domiciliary Regulators") regulate certain of the RiverSource Life companies, and the Property Casualty companies depending on each company's state of domicile. In addition to being regulated by their Domiciliary Regulators, our RiverSource Life companies and Property Casualty companies are regulated by each of the insurance regulators in the states where each is authorized to transact business. Other states also regulate the licensing of sales personnel, and in some cases, the underwriting, marketing and contents of insurance policies and annuity contracts. Financial regulation of our RiverSource Life companies and Property Casualty companies is extensive, and their financial and intercompany transactions (such as intercompany dividends, capital contributions and investment activity) are often subject to pre-notification and continuing evaluation by the Domiciliary Regulators. Virtually all states require participation in insurance guaranty associations, which assess fees to insurance companies in order to fund claims of policyholders and contractholders of insolvent insurance companies subject to statutory limits.

The Dodd-Frank Act created the Federal Insurance Office ("FIO") within the Department of Treasury. The FIO does not have substantive regulatory responsibilities, though it is tasked with monitoring the insurance industry and the effectiveness of its regulatory framework and providing periodic reports to the President and Congress. The scope and impact of the research and reports provided by the FIO, and the extent to which such work may ultimately lead to a more prominent role of the federal government in the regulation of the insurance industry, is uncertain.

Each of our insurance subsidiaries is subject to risk-based capital ("RBC") requirements designed to assess the adequacy of an insurance company's capital and surplus in relation to its investment and insurance risks. The National Association of Insurance Commissioners ("NAIC") has established RBC standards that virtually all state insurance departments have adopted, with minor modifications. The RBC requirements are used by the NAIC and state insurance regulators to identify companies that merit regulatory actions designed to protect policyholders. Our RiverSource Life companies and Property Casualty companies are subject to various levels of regulatory intervention should their total adjusted statutory capital fall below defined RBC action levels. At the "company action level," defined as total adjusted capital level between 100% and 75% of the RBC requirement, an insurer must submit a plan for corrective action with its primary state regulator. The "regulatory action level," which is between 75% and 50% of the RBC requirement, subjects an insurer to examination, analysis and specific corrective action prescribed by the primary state regulator. If a company's total adjusted capital falls between 50% and 35% of its RBC requirement, referred to as "authorized control level," the insurer's primary state regulator may place the insurer under regulatory control. Insurers with total adjusted capital below 35% of the requirement will be placed under regulatory control.

RiverSource Life, RiverSource Life of NY, IDS Property Casualty and Ameriprise Insurance Company maintain capital levels well in excess of the company action level required by state insurance regulators. For RiverSource Life, the company action level RBC was $619 million as of December 31, 2011, and the corresponding total adjusted capital was $3.1 billion, which represents 494% of company action level RBC. For RiverSource Life of NY, the company action level RBC was $41 million as of December 31, 2011, and the corresponding total adjusted capital was $254 million, which represents 619% of company action level RBC. As of December 31, 2011, the company action level RBC was $60 million for IDS Property Casualty and $648,000 for Ameriprise Insurance Company. As of December 31, 2011, IDS Property Casualty had $431 million of total adjusted capital, or 718% of the company action level RBC, and Ameriprise Insurance Company had $41 million of total adjusted capital, or 6362% of the company action level RBC.

Ameriprise Financial, as a direct and indirect owner of its insurance subsidiaries, is subject to the insurance holding companies laws of the states where its insurance subsidiaries are domiciled. These laws generally require insurance holding companies to register with the insurance department of the insurance company's state of domicile and to provide

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certain financial and other information about the operations of the companies within the holding company structure. In addition, transactions between an insurance company and other companies within the same holding company structure must be on terms that are considered to be fair and reasonable.

Federal Banking Regulation

Ameriprise Bank is a federal savings bank subject to regulation by the Office of the Comptroller of the Currency ("OCC"), which became the primary regulator of federal savings banks in 2011, and by the FDIC in its role as insurer of Ameriprise Bank's deposits. As a federally chartered bank, Ameriprise Bank is subject to numerous rules and regulations governing all aspects of the banking business, including lending practices and transactions with affiliates. Ameriprise Bank is also subject to specific capital rules. If Ameriprise Bank's capital falls below certain levels, the OCC is required to take remedial actions and may take other actions, including imposing limits on dividends or business activities and directing us to divest the subsidiary. Ameriprise Bank is also subject to limits on capital distributions, including payment of dividends. In addition, an array of community reinvestment, fair lending, and other consumer protection laws and regulations apply to Ameriprise Bank. Either of the OCC or the FDIC may bring administrative enforcement actions against Ameriprise Bank or its officers, directors or employees if any of them are found to be in violation of the law or engaged in an unsafe or unsound practice.

As the controlling company of Ameriprise Bank, Ameriprise Financial is a savings and loan holding company that is subject to regulation, supervision and examination by the Board of Governors for the Federal Reserve System ("FRB"). In December 2011, Ameriprise Financial elected to be classified as a financial holding company subject to regulation under the Bank Holding Company Act of 1956 (as amended). To ensure continued classification as a financial holding company, both Ameriprise Financial and Ameriprise Bank must be well capitalized, well managed and have a sufficient standing under the Community Reinvestment Act. In the event of our noncompliance with the foregoing requirements, the FRB may require us to take remedial actions to correct such noncompliance and may also impose restrictions on the conduct of Ameriprise Financial and its affiliates until such failures are corrected.

Ameriprise Financial is subject to ongoing supervision by the FRB that focuses on our corporate structure, risk exposure across our business segments and any potential weaknesses in control in our operations, management and reporting. As a financial holding company, our activities are limited to those that are financial in nature, incidental to a financial activity or, with FRB approval, complementary to a financial activity. We must also ensure that our depository institutions remain well capitalized. Ameriprise Financial has entered into a Source of Strength Agreement with Ameriprise Bank to reflect that it will commit such capital and managerial resources to support the subsidiary as the OCC may determine necessary under applicable regulations and supervisory standards. In the event of the appointment of a receiver or conservator for Ameriprise Bank, the FDIC would be entitled to enforce our Source of Strength Agreement.

The Dodd-Frank Act established numerous changes to the regulation of depository institutions and their holding companies, many of which have yet to be finalized and may in the future cause us to further modify how we engage in our banking activities, as well as the activities of our other businesses.

Parent Company Regulation

Ameriprise Financial is a publicly traded company that is subject to SEC and New York Stock Exchange ("NYSE") rules and regulations regarding public disclosure, financial reporting, internal controls, and corporate governance. The adoption of the Sarbanes-Oxley Act of 2002 significantly enhanced these rules and regulations and may continue to evolve. As noted above, the FRB now performs the role of supervisory regulator with respect to Ameriprise Financial following the transference of responsibilities from the Office of Thrift Supervision ("OTS") pursuant to the Dodd-Frank Act.

We have operations in a number of geographical regions outside of the U.S. through Threadneedle and certain of our other subsidiaries. We monitor developments in European Union ("EU") legislation, as well as in the other markets in which we operate, to ensure that we comply with all applicable legal requirements, including EU directives applicable to financial institutions as implemented in the various member states. Because of the mix of business activities we conduct, we continually assess the impact of, and insure compliance with, the EU Financial Conglomerates Directive, which contemplates that certain financial conglomerates involved in banking, insurance and investment activities will be subject to a system of supplementary supervision at the level of the holding company constituting the financial conglomerate. The directive requires financial conglomerates to, among other things, implement measures to prevent excessive leverage and multiple leveraging of capital and to maintain internal control processes to address risk concentrations as well as risks arising from significant intragroup transactions. The FRB serves as our global consolidated supervisory regulator under the EU Financial Conglomerates Directive.

Privacy

Many aspects of our business are subject to comprehensive legal requirements by a multitude of different functional regulators concerning the use and protection of personal information, particularly that of clients. This includes rules adopted pursuant to the Gramm-Leach-Bliley Act, the Fair and Accurate Credit Transactions Act, an ever increasing number

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of state laws, and the European Union data protection legislation as domestically implemented in the respective EU member states. We have also implemented policies and procedures in response to such requirements in the UK. We continue our efforts to safeguard the data entrusted to us in accordance with applicable law and our internal data protection policies, including taking steps to reduce the potential for identity theft or other improper use or disclosure of personal information, while seeking to collect and use data to properly achieve our business objectives and to best serve our clients.

USA Patriot Act

The Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act, commonly referred to as the USA Patriot Act, was enacted in October 2001 in the wake of the September 11th terrorist attacks. The USA Patriot Act broadened existing anti-money laundering legislation and the extraterritorial jurisdiction of the United States substantially. In response, we enhanced our existing anti-money laundering programs and developed new procedures and programs. For example, we implemented a customer identification program applicable to many of our businesses and enhanced our "know your customer" "and "due diligence" programs. In addition, we will continue to comply with anti-money laundering legislation in the UK derived from applicable EU directives and international initiatives adopted in other jurisdictions in which we conduct business.

Securities Exchange Act Reports and Additional Information

We maintain an Investor Relations website at ir.ameriprise.com, and we make available our annual, quarterly and current reports free of charge and post any amendments to those reports as soon as reasonably practicable following the time they are electronically filed with or furnished to the SEC. To access these and other documents, click on the "SEC Filings" link found on our Investor Relations homepage.

Investors can also access our Investor Relations website through our main website at ameriprise.com by clicking on the "Investor Relations" link located at the bottom of our homepage. Information contained on our website is not incorporated by reference into this report or any other report filed with the SEC.

Segment Information and Classes of Similar Services

You can find financial information about our operating segments and classes of similar services in Note 25 to our Consolidated Financial Statements included in Part II, Item 8 of this Annual Report on Form 10-K.

Item 1A. Risk Factors.

Our operations and financial results are subject to various risks and uncertainties, including those described below, that could have a material adverse effect on our business, financial condition or results of operations and could cause the trading price of our common stock to decline. We believe that the following information identifies the material factors affecting our company based on the information we currently know. However, the risks and uncertainties our company faces are not limited to those described below. Additional risks and uncertainties not presently known to us or that we currently believe to be immaterial may also adversely affect our business.

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Risks Relating to Our Business

Our financial condition and results of operations may be adversely affected by market fluctuations and by economic and other factors.

Our financial condition and results of operations may be materially affected by market fluctuations and by economic and other factors. Many such factors of a global or localized nature include: political, social, economic and market conditions; the availability and cost of capital; the level and volatility of equity prices, commodity prices and interest rates, currency values and other market indices; technological changes and events; the availability and cost of credit; inflation; investor sentiment and confidence in the financial markets; terrorism and armed conflicts; and natural disasters such as weather catastrophes and widespread health emergencies. Furthermore, changes in consumer economic variables, such as the number and size of personal bankruptcy filings, the rate of unemployment, decreases in property values, and the level of consumer confidence and consumer debt, may substantially affect consumer loan levels and credit quality, which, in turn, could impact the results of our banking business and savings levels in all of our businesses. These factors also may have an impact on our ability to achieve our strategic objectives.

Declines and volatility in U.S. and global market conditions have impacted our businesses in the past and may continue to do so. Our businesses have been and in the future may be adversely affected by U.S. and global capital market and credit crises, the repricing of credit risk, equity market volatility and decline and stress or recession in the U.S. and global economies generally. Each of our segments operates in these markets with exposure for us and our clients in securities, loans, derivatives, alternative investments, seed capital and other commitments. It is difficult to predict how long and to what extent the aforementioned conditions may exist, which of our markets, products and businesses will be directly affected in terms of revenues, management fees and investment valuations and earnings, and to what extent our clients may seek to bring claims arising out of investment performance that is affected by these conditions. As a result, these factors could materially adversely impact our results of operations. Certain of our insurance and annuity products and certain of our investment and banking products are sensitive to interest rate fluctuations, and future impacts associated with such variations may differ from our historical costs. In addition, interest rate fluctuations could result in fluctuations in the valuation of certain minimum guaranteed benefits contained in some of our variable annuity products. Although we typically hedge to mitigate some of the effect of such fluctuations, significant changes in interest rates could have a material adverse impact on our results of operations.

During periods of increasing market interest rates, we offer higher crediting rates on interest-sensitive products, such as fixed universal life insurance, fixed annuities, face-amount certificates and certificates of deposit, and we increase crediting rates on in force products to keep these products competitive. Because returns on invested assets may not increase as quickly as current interest rates, we may have to accept a lower spread and thus lower profitability or face a decline in sales and greater loss of existing contracts and related assets. In addition, increases in market interest rates may cause increased policy surrenders, withdrawals from life insurance policies, annuity contracts and certificates of deposit and requests for policy loans, as policyholders, contractholders and depositors seek to shift assets to products with perceived higher returns. This process may lead to an earlier than expected outflow of cash from our business. Also, increases in market interest rates may result in extension of certain cash flows from structured mortgage assets. These withdrawals and surrenders may require investment assets to be sold at a time when the prices of those assets are lower because of the increase in market interest rates, which may result in realized investment losses. Increases in crediting rates, as well as surrenders and withdrawals, could have an adverse effect on our financial condition and results of operations. An increase in surrenders and withdrawals also may require us to accelerate amortization of deferred acquisition costs ("DAC") or other intangibles or cause an impairment of goodwill, which would increase our expenses and reduce our net earnings.

During periods of falling interest rates or stagnancy of low interest rates, our spread may be reduced or could become negative, primarily because some of our products have guaranteed minimum crediting rates. Due to the long-term nature of the liabilities associated with certain of our businesses, such as long-term care and fixed universal life with secondary guarantees as well as fixed annuities and guaranteed benefits on variable annuities, sustained declines in or stagnancy of low long-term interest rates may subject us to reinvestment risks and increased hedging costs. In addition, reduced or negative spreads may require us to accelerate amortization of DAC, which would increase our expenses and reduce our net earnings.

Interest rate fluctuations also could have an adverse effect on the results of our investment portfolio. During periods of declining market interest rates or stagnancy of low interest rates, the interest we receive on variable interest rate investments decreases. In addition, during those periods, we are forced to reinvest the cash we receive as interest or return of principal on our investments in lower-yielding high-grade instruments or in lower-credit instruments to maintain comparable returns. Issuers of certain callable fixed income securities also may decide to prepay their obligations in order to borrow at lower market rates, which increases the risk that we may have to invest the cash proceeds of these securities in lower-yielding or lower-credit instruments.

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Significant downturns and volatility in equity markets may have, and have in the past had, an adverse effect on our financial condition and results of operations. Market downturns and volatility may cause, and have caused, potential new purchasers of our products to refrain from purchasing products, such as mutual funds, OEICs, variable annuities and variable universal life insurance, which have returns linked to the performance of the equity markets. If we are unable to offer appropriate product alternatives which encourage customers to continue purchasing in the face of actual or perceived market volatility, our sales and management fee revenues could decline. Downturns may also cause current shareholders in our mutual funds and OEICs, contractholders in our annuity products and policyholders in our protection products to withdraw cash values from those products.

Additionally, downturns and volatility in equity markets can have, and have had, an adverse effect on the revenues and returns from our asset management services, wrap accounts and variable annuity contracts. Because the profitability of these products and services depends on fees related primarily to the value of assets under management, declines in the equity markets will reduce our revenues because the value of the investment assets we manage will be reduced. In addition, some of our variable annuity products contain guaranteed minimum death benefits and guaranteed minimum withdrawal and accumulation benefits. A significant equity market decline or volatility in equity markets could result in guaranteed minimum benefits being higher than what current account values would support, which would adversely affect our financial condition and results of operations. Although we have hedged a portion of the guarantees for the variable annuity contracts to mitigate the financial loss of equity market declines or volatility, there can be no assurance that such a decline or volatility would not materially impact the profitability of certain products or product lines or our financial condition or results of operations. Further, the cost of hedging our liability for these guarantees has increased as a result of low interest rates and volatility in the equity markets. In addition, heightened volatility creates greater uncertainty for future hedging effectiveness.

We believe that investment performance is an important factor in the success of many of our businesses. Poor investment performance could impair our revenues and earnings, as well as our prospects for growth. A significant portion of our revenue is derived from investment management agreements with the Columbia Management family of mutual funds that are terminable on 60 days' notice. In addition, although some contracts governing investment management services are subject to termination for failure to meet performance benchmarks, institutional and individual clients can terminate their relationships with us or our financial advisors at will or on relatively short notice. Our clients can also reduce the aggregate amount of managed assets or shift their funds to other types of accounts with different rate structures, for any number of reasons, including investment performance, changes in prevailing interest rates, changes in investment preferences, changes in our (or our financial advisors') reputation in the marketplace, changes in client management or ownership, loss of key investment management personnel and financial market performance. A reduction in managed assets, and the associated decrease in revenues and earnings, could have a material adverse effect on our business. Moreover, if our money market funds experience a decline in market value, we may choose to contribute capital to those funds without consideration, which would result in a loss.

In addition, during periods of unfavorable or stagnating market or economic conditions, the level of individual investor participation in the global markets may also decrease, which would negatively impact the results of our retail businesses. Concerns about current market and economic conditions, declining real estate values and decreased consumer confidence have caused, and in the future may cause, some of our clients to reduce the amount of business they do with us. Fluctuations in global market activity could impact the flow of investment capital into or from assets under management and the way customers allocate capital among money market, equity, fixed maturity or other investment alternatives, which could negatively impact our Asset Management, Advice & Wealth Management and Annuities businesses. Also, during periods of unfavorable economic conditions, unemployment rates can increase, and have increased, which can result in higher loan delinquency and default rates, and this can have a negative impact on our banking business. Uncertain economic conditions and heightened market volatility may also increase the likelihood that clients or regulators present or threaten legal claims, that regulators may increase the frequency and scope of their examinations of us or the financial services industry generally, and that lawmakers may enact new requirements or taxation which can have a material impact on our revenues, expenses or statutory capital requirements.

Adverse capital and credit market conditions may significantly affect our ability to meet liquidity needs, our access to capital and our cost of capital.

The capital and credit markets may experience, and have experienced, varying degrees of volatility and disruption. In some cases, the markets have exerted downward pressure on availability of liquidity and credit capacity for certain issuers. We need liquidity to pay our operating expenses, interest expenses and dividends on our capital stock. Without sufficient liquidity, we could be required to curtail our operations and our business would suffer.

We believe the level of cash and securities we maintain when combined with expected cash inflows from investments and operations, is adequate to meet anticipated short-term and long-term benefit and expense payment obligations. In the event current resources are insufficient to satisfy our needs, we may access financing sources such as bank debt. The availability of additional financing would depend on a variety of factors such as market conditions, the general availability of

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credit, the volume of trading activities, the overall availability of credit to the financial services industry, our credit ratings and credit capacity, as well as the possibility that our shareholders, customers or lenders could develop a negative perception of our long- or short-term financial prospects if we incur large investment losses or if the level of our business activity decreases due to a market downturn. Similarly, our access to funds may be impaired if regulatory authorities or rating organizations take actions against us.

Disruptions, uncertainty or volatility in the capital and credit markets may also limit our access to capital required to operate our business. Such market conditions may limit our ability to satisfy statutory capital requirements, generate fee income and market-related revenue to meet liquidity needs and access the capital necessary to grow our business. As such, we may be forced to delay raising capital, issue different types of capital than we would otherwise, less effectively deploy such capital, or bear an unattractive cost of capital which could decrease our profitability and significantly reduce our financial flexibility.

The impairment of other financial institutions could adversely affect us.

We have exposure to many different industries and counterparties, and we routinely execute transactions with counterparties in the financial services industry, including broker-dealers, commercial banks, investment banks, hedge funds, insurers, reinsurers and other investment funds and other institutions. The operations of U.S. and global financial services institutions are highly interconnected and a decline in the financial condition of one or more financial services institutions may expose us to credit losses or defaults, limit our access to liquidity or otherwise disrupt the operations of our businesses.

Many transactions with and investments in the products and securities of other financial institutions expose us to credit risk in the event of default of our counterparty. With respect to secured transactions, our credit risk may be exacerbated when the collateral we hold cannot be realized upon or is liquidated at prices insufficient to recover the full amount of the loan or derivative exposure due to it. We also have exposure to financial institutions in the form of unsecured debt instruments, derivative transactions (including with respect to derivatives hedging our exposure on variable annuity contracts with guaranteed benefits), reinsurance and underwriting arrangements and equity investments. There can be no assurance that any such losses or impairments to the carrying value of these assets would not materially and adversely impact our business and results of operations.

Downgrades in the credit or financial strength ratings assigned to the counterparties with whom we transact could create the perception that our financial condition will be adversely impacted as a result of potential future defaults by such counterparties. Additionally, we could be adversely affected by a general, negative perception of financial institutions caused by the downgrade of other financial institutions. Accordingly, ratings downgrades for other financial institutions could affect our market capitalization and could limit access to or increase our cost of capital.

The failure of other insurers could require us to pay higher assessments to state insurance guaranty funds.

Our insurance companies are required by law to be members of the guaranty fund association in every state where they are licensed to do business. In the event of insolvency of one or more unaffiliated insurance companies, our insurance companies could be adversely affected by the requirement to pay assessments to the guaranty fund associations. The financial crisis of 2008 and 2009 and subsequent uncertainty and volatility in the U.S. economy and financial markets have weakened the financial condition of numerous insurers, including insurers currently in receiverships, increasing the risk of triggering guaranty fund assessments.

Third party defaults, bankruptcy filings, legal actions and other events may limit the value of or restrict our access and our clients' access to cash and investments.

Capital and credit market volatility can exacerbate, and has exacerbated, the risk of third party defaults, bankruptcy filings, foreclosures, legal actions and other events that may limit the value of or restrict our access and our clients' access to cash and investments. Although we are not required to do so, we have elected in the past, and we may elect in the future, to compensate clients for losses incurred in response to such events, provide clients with temporary credit or liquidity or other support related to products that we manage, or provide credit liquidity or other support to the financial products we manage. Any such election to provide support may arise from factors specific to our clients, our products or industry-wide factors. If we elect to provide additional support, we could incur losses from the support we provide and incur additional costs, including financing costs, in connection with the support. These losses and additional costs could be material and could adversely impact our results of operations. If we were to take such actions we may also restrict or otherwise utilize our corporate assets, limiting our flexibility to use these assets for other purposes, and may be required to raise additional capital.

Changes in the supervision and regulation of the financial industry, both domestically and internationally, could materially impact our results of operations, financial condition and liquidity.

In July 2010, the Dodd-Frank Act was enacted into law. The Dodd-Frank Act calls for sweeping changes in the supervision and regulation of the financial services industry designed to provide for greater oversight of financial industry participants,

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reduce risk in banking practices and in securities and derivatives trading, enhance public company corporate governance practices and executive compensation disclosures, and provide greater protections to individual consumers and investors. Certain elements of the Dodd-Frank Act became effective immediately, though the details of many provisions are subject to additional studies and will not be known until regulatory agencies adopt final rules. The impact of the Dodd-Frank Act on our company, the financial industry and the economy cannot be known until the rules and regulations called for under the Act have been finalized, and, in some cases, implemented over time.

Accordingly, while certain elements of these reforms have yet to be finalized and implemented, the Act has impacted and is expected to further impact the manner in which we market our products and services, manage our company and its operations and interact with regulators, all of which could materially impact our results of operations, financial condition and liquidity. Certain provisions of the Dodd-Frank Act that may impact our business include but are not limited to restrictions on proprietary trading and investing in or sponsoring certain types of funds, the establishment of a fiduciary standard for broker-dealers, the imposition of capital requirements on financial holding companies, the resolution authority granted to the FDIC, changes in regulatory oversight and greater oversight over derivatives instruments and trading. We will need to respond to changes to the framework for the supervision of U.S. financial institutions, including the creation of the Financial Stability Oversight Council ("FSOC") and the transition to the FRB as our consolidated regulator and the OCC as the primary regulator of Ameriprise Bank. For example, if we were to be designated by the FSOC as a systemically important financial institution, we may become subject to additional regulatory oversight and enhanced prudential standards, including those related to capital requirements and risk management standards at the parent company level. To the extent the Dodd-Frank Act impacts the operations, financial condition, liquidity and capital requirements of unaffiliated financial institutions with whom we transact business, those institutions may seek to pass on increased costs, reduce their capacity to transact, or otherwise present inefficiencies in their interactions with us.

It is uncertain whether the Dodd-Frank Act, the rules and regulations developed thereunder, or any future legislation designed to stabilize the financial markets, the economy generally, or provide better protections to consumers, will have the desired effect. Any new domestic or international legislation or regulatory changes could require us to change certain business practices, impose additional costs, or otherwise adversely affect our business operations, regulatory reporting relationships, results of operations or financial condition. Consequences may include substantially higher compliance costs as well as material effects on interest rates and foreign exchange rates, which could materially impact our investments, results of operations and liquidity in ways that we cannot predict. In addition, prolonged government support for, and intervention in the management of, private institutions could distort customary and expected commercial behavior on the part of those institutions, adversely impacting us.

Our businesses are regulated heavily, and changes to the laws and regulations applicable to our businesses may have an adverse effect on our operations, reputation and financial condition.

Virtually all aspects of our business, including the activities of our parent company and our various subsidiaries, are subject to various federal, state and international laws and regulations. For a discussion of the regulatory framework in which we operate, see Item 1 of this Annual Report on Form 10-K — "Business — Regulation." Compliance with these applicable laws and regulations is time-consuming and personnel-intensive, and we have invested and will continue to invest substantial resources to ensure compliance by our parent company and our subsidiaries, directors, officers, employees, registered representatives and agents. Any changes to the laws and regulations applicable to our businesses, as well as changes to the interpretation and enforcement of such laws and regulations, may affect our operations and financial condition. Such changes may impact our operations and profitability and the practices of our financial advisors, including with respect to the scope of products and services provided, the manner in which products and services are marketed and sold and the incurrence of additional costs of doing business. The recent economic crisis has resulted in numerous changes to regulation and oversight of the financial industry, the full impact of which has yet to be realized. Any incremental requirements, costs and risks imposed on us in connection with such current or future legislative or regulatory changes, may constrain our ability to market our products and services to potential customers, and could negatively impact our profitability and make it more difficult for us to pursue our growth strategy.

Certain examples of legislative and regulatory changes that may impact our businesses are described below.

The Dodd-Frank Act mandates numerous changes to both the regulatory framework in which financial services companies operate and the specific regulations with which such companies must comply. Amongst the changes to the regulatory framework are the abolishment of the OTS and the transition of its responsibilities to other federal agencies. As a result, the OCC became the primary regulator of Ameriprise Bank and the FRB became the primary regulator of our parent company. We cannot predict how the transition to these new regulatory agencies, or the environment for supervisory expectations or enforcement actions, will impact us.

Some of the changes resulting from rules and regulations called for under the Dodd-Frank Act could present operational challenges and increase costs. For example, in the area of derivatives, higher margin and capital requirements, coupled with more restrictive collateral rules, could impact our ability to effectively manage and hedge risk. Ultimately these

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complexities and increased costs could have an impact on our ability to offer cost-effective and innovative insurance products to our clients. Similarly, the rules governing the capital requirements of financial institutions, both domestic and international, could have an adverse impact on our ability to allocate capital for strategic business purposes, while increasing costs for consumers of financial services.

Any mandated reductions or restructuring of the fees we charge for our products and services resulting from regulatory initiatives or proceedings could reduce our revenues and earnings. In the years ended December 31, 2011, 2010 and 2009, we earned $1.6 billion, $1.4 billion and $1.2 billion, respectively, in distribution fees. Our own Columbia Management family of mutual funds paid a significant portion of these revenues to us in accordance with plans and agreements of distribution adopted under Rule 12b-1 promulgated under the Investment Company Act. We believe that these fees are a critical element in the distribution of our own mutual funds. In July 2010, the SEC proposed certain measures that would establish a new framework to repeal Rule 12b-1. The proposed changes have been subject to a public comment period and, following any enactment, would be phased in over a number of years. Any industry-wide reduction or restructuring of Rule 12b-1 fees could have a material adverse effect on our ability to distribute our own mutual funds and the fees we receive for distributing other companies' mutual funds, which could, in turn, have a material adverse effect on our revenues and earnings.

We expect that the Department of Labor will reissue proposed regulations in 2012 seeking to change the definition of who is an investment advice fiduciary under ERISA and how such advice can be provided, which applies to both 401(k) plans and IRAs. These proposed regulations will again be subject to a public comment period upon their release. We cannot predict whether or when the regulations may be finalized, or how any final regulations may differ from the previously proposed regulations. If the regulations were to be issued substantially similar to previous drafts, they could impact how we receive fees, as well as how we compensate our advisors and design our investments and services for qualified accounts, which could negatively impact our results of operations.

In October 2011, the FRB, OCC, FDIC and SEC jointly issued a proposed rule that would implement Section 619 of the Dodd-Frank Act (the "Volcker Rule") which contains certain prohibitions and restrictions on the ability of banking entities and their affiliates to engage in proprietary trading and to have certain interests in, or relationships with, a wide variety of investment funds, including but not limited to hedge funds, foreign funds and private equity funds. This proposed rule would significantly impede our ability to launch investment products, including our ability to provide seed capital to US-based and foreign investment funds. We and our subsidiaries would also be prohibited from trading for our own accounts unless such trading qualifies for one of a limited number of exceptions. Additionally, the proposed rule to implement the Volcker Rule has created considerable debate regarding the potential adverse liquidity impact within the financial markets, especially with respect to the trading of non-government fixed income securities. To the extent that liquidity in the financial markets is adversely impacted, we and our clients may experience increased costs and volatility with respect to our business operations and earnings. Significant time and expense will be required to ensure that necessary compliance policies and procedures are implemented and to establish appropriate oversight. The proposed rule could also place U.S. asset managers at a competitive disadvantage in foreign markets. Depending on final parameters of the Volcker Rule, including the breadth of the permitted activities under the Volcker Rule and the nature of the investment funds covered by the prohibitions and limitations under the Volcker Rule, the full impact of the rule on our operations, results and growth strategies cannot be known.

Our insurance companies are subject to state regulation and must comply with statutory reserve and capital requirements. State regulators continually review and update these requirements and other requirements relating to the business operations of insurance companies, including their underwriting and sales practices. The NAIC adopted a change to require principles-based reserves for variable annuities at the end of 2009, and continues to discuss moving to a principles-based reserving system for other insurance and annuity products. The requirement for principles-based variable annuity reserves, along with a similar risk-based capital requirement adopted previously, may result in statutory reserves and risk-based capital for variable annuities being more sensitive to changes in equity prices and other market factors. It is not possible at this time to estimate the potential impact of future changes in statutory reserve and capital requirements on our insurance businesses. Further, we cannot predict the effect that proposed federal legislation, such as the option of federally chartered insurers or a mandated federal systemic risk regulator, may have on our insurance businesses or competitors.

The majority of our affiliated advisors are independent contractors. Legislative or regulatory action that redefines the criteria for determining whether a person is an employee or an independent contractor could materially impact our relationships with our advisors and our business, resulting in an adverse effect on our results of operations.

Changes in and the adoption of accounting standards could have a material impact on our financial statements.

We prepare our financial statements in accordance with U.S. generally accepted accounting principles. From time to time, the Financial Accounting Standards Board ("FASB"), the SEC and other regulators change the financial accounting and reporting standards governing the preparation of our financial statements. In some cases, we could be required to apply a new or revised standard retroactively, resulting in our restating prior period financial statements. These changes are difficult

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to predict, and it is possible that such changes could have a material effect on our financial condition and results of operations.

Defaults in our fixed maturity securities portfolio or consumer credit products could adversely affect our earnings.

Issuers of the fixed maturity securities that we own may default on principal and interest payments. As of December 31, 2011, 5% of our invested assets had ratings below investment-grade. Moreover, economic downturns and corporate malfeasance can increase the number of companies, including those with investment-grade ratings that default on their debt obligations. Default-related declines in the value of our fixed maturity securities portfolio or consumer credit products could cause our net earnings to decline and could also cause us to contribute capital to some of our regulated subsidiaries, which may require us to obtain funding during periods of unfavorable market conditions. Higher delinquency and default rates in our bank's customer loan portfolio could require us to contribute capital to Ameriprise Bank and may result in additional restrictions from our regulators that impact the use and access to that capital.

If the counterparties to our reinsurance arrangements or to the derivative instruments we use to hedge our business risks default, we may be exposed to risks we had sought to mitigate, which could adversely affect our financial condition and results of operations.

We use reinsurance to mitigate our risks in various circumstances as described in Item 1 of this Annual Report on Form 10-K — "Business — Our Segments — Protection — Reinsurance." Reinsurance does not relieve us of our direct liability to our policyholders, even when the reinsurer is liable to us. Accordingly, we bear credit and performance risk with respect to our reinsurers. A reinsurer's insolvency or its inability or unwillingness to make payments under the terms of our reinsurance agreement could have a material adverse effect on our financial condition and results of operations. See Notes 2 and 7 to our Consolidated Financial Statements included in Part II, Item 8 of this Annual Report on Form 10-K.

In addition, we use a variety of derivative instruments (including options, forwards, and interest rate and currency swaps) with a number of counterparties to hedge business risks. The amount and breadth of exposure to derivative counterparties, as well as the cost of derivative instruments, have increased significantly in connection with our strategies to hedge guaranteed benefit obligations under our variable annuity products. If our counterparties fail to honor their obligations under the derivative instruments in a timely manner, our hedges of the related risk will be ineffective. That failure could have a material adverse effect on our financial condition and results of operations. This risk of failure of our hedge transactions from counterparty default may be increased by capital market volatility.

The determination of the amount of allowances and impairments taken on certain investments is subject to management's evaluation and judgment and could materially impact our results of operations or financial position.

The determination of the amount of allowances and impairments vary by investment type and is based upon our periodic evaluation and assessment of inherent and known risks associated with the respective asset class. Such evaluations and assessments are revised as conditions change and new information becomes available. Management updates its evaluations regularly and reflects changes in allowances and impairments in operations as such evaluations are revised. Historical trends may not be indicative of future impairments or allowances.

The assessment of whether impairments have occurred is based on management's case-by-case evaluation of the underlying reasons for the decline in fair value that considers a wide range of factors about the security issuer, and management uses its best judgment in evaluating the cause of the decline in the estimated fair value of the security and in assessing the prospects for recovery. Inherent in management's evaluation of the security are assumptions and estimates about the operations of the issuer and its future earnings potential, which assumptions and estimates are more difficult to make with certainty under current market conditions.

Our valuation of fixed maturity and equity securities may include methodologies, estimations and assumptions which are subject to differing interpretations and could result in changes to investment valuations that may materially adversely impact our results of operations or financial condition.

Fixed maturity, equity, trading securities and short-term investments, which are reported at fair value on the consolidated balance sheets, represent the majority of our total cash and invested assets. The determination of fair values by management in the absence of quoted market prices is based on: (i) valuation methodologies; (ii) securities we deem to be comparable; and (iii) assumptions deemed appropriate given the circumstances. The fair value estimates are made at a specific point in time, based on available market information and judgments about financial instruments, including estimates of the timing and amounts of expected future cash flows and the credit standing of the issuer or counterparty. Factors considered in estimating fair value include: coupon rate, maturity, estimated duration, call provisions, sinking fund requirements, credit rating, industry sector of the issuer, and quoted market prices of comparable securities. The use of different methodologies and assumptions may have a material effect on the estimated fair value amounts.

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During periods of market disruption, including periods of significantly rising or high interest rates, rapidly widening credit spreads or illiquidity, it may be difficult to value certain of our securities. There may be certain asset classes that were in active markets with significant observable data that become illiquid due to the financial environment. In such cases, the valuation of certain securities may require additional subjectivity and management judgment. As such, valuations may include inputs and assumptions that are less observable or require greater estimation as well as valuation methods that are more sophisticated or require greater estimation, thereby resulting in values which may be less than the value at which the investments may be ultimately sold. Further, rapidly changing and unprecedented credit and equity market conditions could materially impact the valuation of securities as reported within our consolidated financial statements and the period-to-period changes in value could vary significantly. Decreases in value may have a material adverse effect on our results of operations or financial condition.

Some of our investments are relatively illiquid.

We invest a portion of our owned assets in certain privately placed fixed income securities, mortgage loans, policy loans, limited partnership interests, collateralized debt obligations and restricted investments held by securitization trusts, among others, all of which are relatively illiquid. These asset classes represented 13% of the carrying value of our investment portfolio as of December 31, 2011. If we require significant amounts of cash on short notice in excess of our normal cash requirements, we may have difficulty selling these investments in a timely manner or be forced to sell them for an amount less than we would otherwise have been able to realize, or both, which could have an adverse effect on our financial condition and results of operations.

Intense competition and the economics of changes in our product revenue mix and distribution channels could negatively impact our ability to maintain or increase our market share and profitability.

Our businesses operate in intensely competitive industry segments. We compete based on a number of factors, including name recognition, service, the quality of investment advice, investment performance, product features, price, perceived financial strength, claims-paying ability and credit ratings. Our competitors include broker-dealers, banks, asset managers, insurers and other financial institutions. Many of our businesses face competitors that have greater market share, offer a broader range of products, have greater financial resources, or have higher claims-paying ability or credit ratings than we do. Some of our competitors may possess or acquire intellectual property rights that could provide a competitive advantage to them in certain markets or for certain products, which could make it difficult for us to introduce new products and services. Some of our competitors' proprietary products or technology could be similar to our own, and this could result in disputes that could impact our financial condition or results of operations. In addition, over time certain sectors of the financial services industry have become considerably more concentrated, as financial institutions involved in a broad range of financial services have been acquired by or merged into other firms. This convergence could result in our competitors gaining greater resources, and we may experience pressures on our pricing and market share as a result of these factors and as some of our competitors seek to increase market share by reducing prices.

Historically, our affiliated advisor network (both franchise advisors and those employed by AFSI) provided annuity and insurance products issued almost exclusively (in the case of annuities) or predominantly (in the case of protection products) by our RiverSource Life companies. In 2010, we expanded the offerings available to all of our affiliated advisors to include variable annuities issued by a limited number of unaffiliated insurance companies. As a result of this and further openings of our affiliated advisor network to the products of other companies, we could experience lower sales of our companies' products, higher surrenders, or other developments which might not be fully offset by higher distribution revenues or other benefits, possibly resulting in an adverse effect on our results of operations.

In late 2010, we discontinued the distribution of RiverSource variable annuities through third-party channels. This could impact the persistency of business sold previously through these channels, possibly resulting in the acceleration of DAC amortization or other adverse effects on our results of operations.

A drop in investment performance as compared to our competitors could negatively impact our revenues and profitability.

Investment performance is a key competitive factor for our retail and institutional asset management products and services. Strong investment performance helps to ensure the retention of our products and services by our clients and creates new sales of products and services. It may also result in higher ratings by ratings services such as Morningstar or Lipper, which may further exacerbate the foregoing effects. Strong investment performance and its effects are important elements to our stated goals of growing assets under management and achieving economies of scale.

There can be no assurance as to how future investment performance will compare to our competitors or that historical performance will be indicative of future returns. Any drop or perceived drop in investment performance as compared to our competitors could cause a decline in sales of our mutual funds and other investment products, an increase in redemptions and the termination of institutional asset management relationships. These impacts may reduce our aggregate amount of assets under management and reduce management fees. Poor investment performance could also adversely affect our

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ability to expand the distribution of our products through unaffiliated third parties. Further, any drop in market share of mutual funds sales by our affiliated advisors may further reduce profits as sales of other companies' mutual funds are less profitable than sales of our proprietary funds.

We may not be able to maintain our unaffiliated third-party distribution channels or the terms by which unaffiliated third parties sell our products.

We distribute certain of our investment products and fixed annuities through unaffiliated third-party advisors and financial institutions. Maintaining and deepening relationships with these unaffiliated distributors is an important part of our growth strategy, as strong third-party distribution arrangements enhance our ability to market our products and to increase our assets under management, revenues and profitability. There can be no assurance that the distribution relationships we have established will continue, as our distribution partners may cease to operate or otherwise terminate their relationship with us. Any such reduction in access to third-party distributors may have a material adverse effect on our ability to market our products and to generate revenue in our Asset Management and Annuities segments.

Access to distribution channels is subject to intense competition due to the large number of competitors and products in the investment advisory and annuities industries. Relationships with distributors are subject to periodic negotiation that may result in increased distribution costs and/or reductions in the number of our products marketed. Any increase in the costs to distribute our products or reduction in the type or number of products made available for sale may have a material effect on our revenues and profitability.

We face intense competition in attracting and retaining key talent.

Our continued success depends to a substantial degree on our ability to attract and retain qualified people. We are dependent on our network of affiliated advisors for a significant portion of the sales of our mutual funds, annuities, face-amount certificates, banking and insurance products. The market for these financial advisors is extremely competitive, as are the markets for qualified and skilled portfolio managers, investment managers, executives and marketing, finance, legal, compliance and other professionals. If we are unable to attract and retain qualified individuals or our recruiting and retention costs increase significantly, our financial condition and results of operations could be materially adversely impacted.

We face risks arising from acquisitions and divestitures.

We have made acquisitions and divestitures in the past and may pursue similar strategic transactions in the future. Risks in acquisition transactions include difficulties in the integration of acquired businesses into our operations, difficulties in assimilating and retaining employees and intermediaries, difficulties in retaining the existing customers of the acquired entities, unforeseen liabilities that arise in connection with the acquired businesses, the failure of counterparties to satisfy any obligations to indemnify us against liabilities arising from the acquired businesses, and unfavorable market conditions that could negatively impact our growth expectations for the acquired businesses. Risks in divestiture transactions include difficulties in the separation of the disposed business, the failure of counterparties to satisfy payment obligations, unfavorable market conditions that may impact any earnout or contingency payment due to us and unexpected difficulties in losing employees of the disposed business. These risks may prevent us from realizing the expected benefits from acquisitions or divestitures and could result in the failure to realize the full economic value of a strategic transaction or the impairment of goodwill and/or intangible assets recognized at the time of an acquisition.

A failure to protect our reputation could adversely affect our businesses.

Our reputation is one of our most important assets. Our ability to attract and retain customers, investors, employees and affiliated advisors is highly dependent upon external perceptions of our company. Damage to our reputation could cause significant harm to our business and prospects and may arise from numerous sources, including litigation or regulatory actions, failing to deliver minimum standards of service and quality, compliance failures, unethical behavior and the misconduct of employees, affiliated advisors and counterparties. Negative perceptions or publicity regarding these matters could damage our reputation among existing and potential customers, investors, employees and affiliated advisors. Adverse developments with respect to our industry may also, by association, negatively impact our reputation or result in greater regulatory or legislative scrutiny or litigation against us.

Our reputation is also dependent on our continued identification of and mitigation against conflicts of interest. As we have expanded the scope of our businesses and our client base, we increasingly have to identify and address potential conflicts of interest, including those relating to our proprietary activities and those relating to our sales of non-proprietary products from manufacturers that have agreed to provide us marketing, sales and account maintenance support. For example, conflicts may arise between our position as a provider of financial planning services and as a manufacturer and/or distributor or broker of asset accumulation, income or insurance products that one of our affiliated advisors may recommend to a financial planning client. We have procedures and controls that are designed to identify, address and appropriately disclose perceived conflicts of interest. However, identifying and appropriately addressing conflicts of interest is complex, and our reputation could be damaged if we fail, or appear to fail, to address conflicts of interest appropriately.

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In addition, the SEC and other federal and state regulators have increased their scrutiny of potential conflicts of interest. It is possible that potential or perceived conflicts could give rise to litigation or enforcement actions. It is possible also that the regulatory scrutiny of, and litigation in connection with, conflicts of interest will make our clients less willing to enter into transactions in which such a conflict may occur, and will adversely affect our businesses.

Misconduct by our employees and affiliated advisors is difficult to detect and deter and could harm our business, results of operations or financial condition.

Misconduct by our employees and affiliated advisors could result in violations of law, regulatory sanctions and/or serious reputational or financial harm. Misconduct can occur in each of our businesses and could include: binding us to transactions that exceed authorized limits; hiding unauthorized or unsuccessful activities resulting in unknown and unmanaged risks or losses; improperly using, disclosing or otherwise compromising confidential information; recommending transactions that are not suitable; engaging in fraudulent or otherwise improper activity; engaging in unauthorized or excessive trading to the detriment of customers; or otherwise not complying with laws, regulations or our control procedures.

We cannot always deter misconduct by our employees and affiliated advisors, and the precautions we take to prevent and detect this activity may not be effective in all cases. Preventing and detecting misconduct among our franchisee advisors who are not employees of our company present additional challenges. We cannot also assure that misconduct by our employees and affiliated advisors will not lead to a material adverse effect on our business, results of operations or financial condition.

Legal and regulatory actions are inherent in our businesses and could result in financial losses or harm our businesses.

We are, and in the future may be, subject to legal and regulatory actions in the ordinary course of our operations, both domestically and internationally. Various regulatory and governmental bodies have the authority to review our products and business practices and those of our employees and independent financial advisors and to bring regulatory or other legal actions against us if, in their view, our practices, or those of our employees or affiliated advisors, are improper. Pending legal and regulatory actions include proceedings relating to aspects of our businesses and operations that are specific to us and proceedings that are typical of the industries and businesses in which we operate. Some of these proceedings have been brought on behalf of various alleged classes of complainants. In certain of these matters, the plaintiffs are seeking large and/or indeterminate amounts, including punitive or exemplary damages. See Item 3 of this Annual Report on Form 10-K — "Legal Proceedings." In or as a result of turbulent times such as those we have experienced, the volume of claims and amount of damages sought in litigation and regulatory proceedings generally increase. Substantial legal liability in current or future legal or regulatory actions could have a material adverse financial effect or cause significant reputational harm, which in turn could seriously harm our business prospects.

A downgrade or a potential downgrade in our financial strength or credit ratings could adversely affect our financial condition and results of operations.

Financial strength ratings, which various ratings organizations publish as a measure of an insurance company's ability to meet contractholder and policyholder obligations, are important to maintain public confidence in our products, the ability to market our products and our competitive position. A downgrade in our financial strength ratings, or the announced potential for a downgrade, could have a significant adverse effect on our financial condition and results of operations in many ways, including: reducing new sales of insurance products, annuities and investment products; adversely affecting our relationships with our affiliated advisors and third-party distributors of our products; materially increasing the number or amount of policy surrenders and withdrawals by contractholders and policyholders; requiring us to reduce prices for many of our products and services to remain competitive; and adversely affecting our ability to obtain reinsurance or obtain reasonable pricing on reinsurance.

A downgrade in our credit ratings could also adversely impact our future cost and speed of borrowing and have an adverse effect on our financial condition, results of operations and liquidity.

In view of the difficulties experienced recently by many financial institutions, including our competitors in the insurance industry, the ratings organizations have heightened the level of scrutiny that they apply to such institutions and have requested additional information from the companies that they rate. They may increase the frequency and scope of their credit reviews, adjust upward the capital and other requirements employed in the ratings organizations' models for maintenance of ratings levels, or downgrade ratings applied to particular classes of securities or types of institutions. Ratings organizations may also become subject to tighter laws and regulations governing ratings, which may in turn impact ratings assigned to financial institutions.

We cannot predict what actions rating organizations may take, or what actions we may take in response to the actions of rating organizations, which could adversely affect our business. As with other companies in the financial services industry, our ratings could be changed at any time and without any notice by the ratings organizations.

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If our reserves for future policy benefits and claims or for our bank lending portfolio or for future certificate redemptions and maturities are inadequate, we may be required to increase our reserve liabilities, which would adversely affect our results of operations and financial condition.

We establish reserves as estimates of our liabilities to provide for future obligations under our insurance policies, annuities and investment certificate contracts. We also establish reserves as estimates of the potential for loan losses in our consumer lending portfolios. Reserves do not represent an exact calculation but, rather, are estimates of contract benefits or loan losses and related expenses we expect to incur over time. The assumptions and estimates we make in establishing reserves require certain judgments about future experience and, therefore, are inherently uncertain. We cannot determine with precision the actual amounts that we will pay for contract benefits, the timing of payments, or whether the assets supporting our stated reserves will increase to the levels we estimate before payment of benefits or claims. We monitor our reserve levels continually. If we were to conclude that our reserves are insufficient to cover actual or expected contract benefits or loan collections, we would be required to increase our reserves and incur income statement charges for the period in which we make the determination, which would adversely affect our results of operations and financial condition. For more information on how we set our reserves, see Note 2 to our Consolidated Financial Statements included in Part II, Item 8 of this Annual Report on Form 10-K.

Morbidity rates or mortality rates that differ significantly from our pricing expectations could negatively affect profitability.

We set prices for RiverSource life insurance and some annuity products based upon expected claim payment patterns, derived from assumptions we make about our policyholders and contractholders, the morbidity rates, or likelihood of sickness, and mortality rates, or likelihood of death. The long-term profitability of these products depends upon how our actual experience compares with our pricing assumptions. For example, if morbidity rates are higher, or mortality rates are lower, than our pricing assumptions, we could be required to make greater payments under disability income insurance policies, chronic care riders and immediate annuity contracts than we had projected. The same holds true for long term care policies we previously underwrote to the extent of the risks that we retained. If mortality rates are higher than our pricing assumptions, we could be required to make greater payments under our life insurance policies and annuity contracts with guaranteed minimum death benefits than we have projected.

The risk that our claims experience may differ significantly from our pricing assumptions is particularly significant for our long term care insurance products notwithstanding our ability to implement future price increases with regulatory approvals. As with life insurance, long term care insurance policies provide for long-duration coverage and, therefore, our actual claims experience will emerge over many years. However, as a relatively new product in the market, long term care insurance does not have the extensive claims experience history of life insurance and, as a result, our ability to forecast future claim rates for long term care insurance is more limited than for life insurance. We have sought to moderate these uncertainties to some extent by partially reinsuring long term care policies we previously underwrote and by limiting our present long term care insurance offerings to policies underwritten fully by unaffiliated third-party insurers, and we have also implemented rate increases on certain in force policies as described in Item 1 of this Annual Report on Form 10-K — "Business — Our Segments — Protection — RiverSource Insurance Products — Long Term Care Insurance." We may be required to implement additional rate increases in the future and may or may not receive regulatory approval for the full extent and timing of any rate increases that we may seek.

We may face losses if there are significant deviations from our assumptions regarding the future persistency of our insurance policies and annuity contracts.

The prices and expected future profitability of our life insurance and deferred annuity products are based in part upon assumptions related to persistency, which is the probability that a policy or contract will remain in force from one period to the next. Given the ongoing economic and market dislocations, future consumer persistency behaviors could vary materially from the past. The effect of persistency on profitability varies for different products. For most of our life insurance and deferred annuity products, actual persistency that is lower than our persistency assumptions could have an adverse impact on profitability, especially in the early years of a policy or contract, primarily because we would be required to accelerate the amortization of expenses we deferred in connection with the acquisition of the policy or contract.

For our long term care insurance and universal life insurance policies with secondary guarantees, as well as variable annuities with guaranteed minimum withdrawal benefits, actual persistency that is higher than our persistency assumptions could have a negative impact on profitability. If these policies remain in force longer than we assumed, we could be required to make greater benefit payments than we had anticipated when we priced or partially reinsured these products. Some of our long term care insurance policies have experienced higher persistency and poorer loss experience than we had assumed, which led us to increase premium rates on certain policies.

Because our assumptions regarding persistency experience are inherently uncertain, reserves for future policy benefits and claims may prove to be inadequate if actual persistency experience is different from those assumptions. Although some of our products permit us to increase premiums during the life of the policy or contract, we cannot guarantee that these increases would be sufficient to maintain profitability. Additionally, some of these pricing changes require regulatory

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approval, which may not be forthcoming. Moreover, many of our products do not permit us to increase premiums or limit those increases during the life of the policy or contract, while premiums on certain other products (primarily long term care insurance) may not be increased without prior regulatory approval. Significant deviations in experience from pricing expectations regarding persistency could have an adverse effect on the profitability of our products.

We may be required to accelerate the amortization of DAC, which would increase our expenses and reduce profitability.

DAC represent the costs of acquiring new business, principally direct sales commissions and other distribution and underwriting costs that have been deferred on the sale of annuity, life and disability income insurance and, to a lesser extent, marketing and promotional expenses for personal auto and home insurance, and distribution expense for certain mutual fund products. For annuity and universal life products, DAC are amortized based on projections of estimated gross profits over amortization periods equal to the approximate life of the business. For other insurance products, DAC are generally amortized as a percentage of premiums over amortization periods equal to the premium-paying period. For certain mutual fund products, we generally amortize DAC over fixed periods on a straight-line basis, adjusted for redemptions.

Our projections underlying the amortization of DAC require the use of certain assumptions, including interest margins, mortality rates, persistency rates, maintenance expense levels and customer asset value growth rates for variable products. We periodically review and, where appropriate, adjust our assumptions. When we change our assumptions, we may be required to accelerate the amortization of DAC or to record a charge to increase benefit reserves.

For more information regarding DAC, see Part II, Item 7 of this Annual Report on Form 10-K under the heading "Management's Discussion and Analysis of Financial Condition and Results of Operations — Critical Accounting Policies — Deferred Acquisition Costs and Deferred Sales Inducement Costs" and "Management's Discussion and Analysis of Financial Condition and Results of Operations — Recent Accounting Pronouncements."

The occurrence of natural or man-made disasters and catastrophes could adversely affect our results of operations and financial condition.

The occurrence of natural disasters and catastrophes, including earthquakes, hurricanes, floods, tornadoes, fires, severe winter weather, explosions, pandemic disease and man-made disasters, including acts of terrorism, insurrections and military actions, could adversely affect our results of operations or financial condition. Such disasters and catastrophes may damage our facilities, preventing our employees and financial advisors from performing their roles or otherwise disturbing our ordinary business operations and by impacting insurance claims, as described below. Such disasters and catastrophes may also impact us indirectly by changing the condition and behaviors of our customers, business counterparties and regulators, as well as by causing declines or volatility in the economic and financial markets.

The effects of natural and man-made disasters and catastrophes on certain of our businesses include but are not limited to the following: a catastrophic loss of life may materially increase the amount of or accelerate the timing in which benefits are paid under our insurance policies; significant property damage may materially increase the amount of claims submitted under our property casualty insurance policies; an increase in claims and any resulting increase in claims reserves caused by a disaster may harm the financial condition of our reinsurers, thereby impacting the cost and availability of reinsurance and the probability of default on reinsurance recoveries; and declines and volatility in the financial markets may decrease the value of our assets under management and administration, which would harm our financial condition and reduce our management fees.

We cannot predict the timing and frequency with which natural and man-made disasters and catastrophes may occur, nor can we predict the impact that changing climate conditions may have on the frequency and severity of natural disasters. As such, we cannot be sure that our actions to identify and mitigate the risks associated with such disasters and catastrophes, including predictive modeling, establishing liabilities for expected claims, acquiring insurance and reinsurance and developing business continuity plans, will be effective.

We may not be able to protect our intellectual property and may be subject to infringement claims.

We rely on a combination of contractual rights and copyright, trademark, patent and trade secret laws to establish and protect our intellectual property. Although we use a broad range of measures to protect our intellectual property rights, third parties may infringe or misappropriate our intellectual property. We may have to litigate to enforce and protect our copyrights, trademarks, patents, trade secrets and know-how or to determine their scope, validity or enforceability, which represents a diversion of resources that may be significant in amount and may not prove successful. The loss of intellectual property protection or the inability to secure or enforce the protection of our intellectual property assets could have a material adverse effect on our business and our ability to compete.

We also may be subject to costly litigation in the event that another party alleges our operations or activities infringe upon such other party's intellectual property rights. Third parties may have, or may eventually be issued, patents or other protections that could be infringed by our products, methods, processes or services or could otherwise limit our ability to

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offer certain product features. Any party that holds such a patent could make a claim of infringement against us. We may also be subject to claims by third parties for breach of copyright, trademark, license usage rights, or misappropriation of trade secret rights. Any such claims and any resulting litigation could result in significant liability for damages. If we were found to have infringed or misappropriated a third party patent or other intellectual property rights, we could incur substantial liability, and in some circumstances could be enjoined from providing certain products or services to our customers or utilizing and benefiting from certain methods, processes, copyrights, trademarks, trade secrets or licenses, or alternatively could be required to enter into costly licensing arrangements with third parties, all of which could have a material adverse effect on our business, results of operations and financial condition.

Breaches of security or interference with our technology infrastructure could harm our business.

Our business is reliant upon technology systems and networks, including systems and networks managed by third parties, to process, transmit and store information and to conduct many of our business activities and transactions with clients, affiliated advisors, vendors and other third parties. We are also subject to certain federal and state regulations that require us to establish and maintain policies and procedures designed to protect sensitive client information. Maintaining the integrity of our systems and networks is critical to the success of our business operations, including the retention of affiliated advisors and clients, and to the protection of our proprietary information and our clients' personal information. Accordingly, any breaches or interference with such systems and networks by third parties or by our advisors or employees may have a material adverse impact on our business, financial condition or results of operations.

We have implemented security measures designed to protect against breaches of security and other interference with our systems and networks resulting from attacks by third parties, including hackers, and from employee or advisor error or malfeasance. We also require third party vendors, who in the provision of services to us are provided with or process information pertaining to our business or our clients, to meet certain information security standards. Despite these measures, we cannot assure that our systems and networks will not be subject to breaches or interference. Any such event may result in operational disruptions as well as unauthorized access to or the disclosure or loss of our proprietary information or our clients' personal information, which in turn may result in legal claims, regulatory scrutiny and liability, reputational damage, the incurrence of costs to eliminate or mitigate further exposure, the loss of clients or affiliated advisors or other damage to our business. In addition, the trend toward broad consumer and general public notification of such incidents could exacerbate the harm to our business, financial condition or results of operations. Even if we successfully protect our technology infrastructure and the confidentiality of sensitive data, we could suffer harm to our business and reputation if attempted security breaches are publicized. We cannot be certain that advances in criminal capabilities, discovery of new vulnerabilities, attempts to exploit vulnerabilities in our systems, data thefts, physical system or network break-ins or inappropriate access, or other developments will not compromise or breach the technology or other security measures protecting the networks and systems used in connection with our business.

Protection from system interruptions and operating errors is important to our business. If we experience a sustained interruption to our telecommunications or data processing systems, or other failure in operational execution, it could harm our business.

System or network interruptions could delay and disrupt our ability to develop, deliver or maintain our products and services, causing harm to our business and reputation and resulting in loss of affiliated advisors, clients or revenue. Interruptions could be caused by operational failures arising from employee or advisor error or malfeasance, interference by third parties, including hackers, our implementation of new technology, as well from our maintenance of existing technology. Our financial, accounting, data processing or other operating systems and facilities may fail to operate properly or become disabled as a result of events that are wholly or partially beyond our control, adversely affecting our ability to process transactions or provide products and services to our clients. These interruptions can include fires, floods, earthquakes and other natural disasters, power losses, equipment failures, failures of internal or vendor software or systems and other events beyond our control. Further, we face the risk of operational failure, termination or capacity constraints of any of the clearing agents, exchanges, clearing houses or other financial intermediaries that we use to facilitate or are component providers to our securities transactions and other product manufacturing and distribution activities. These risks are heightened by our deployment in response to both investor interest and evolution in the financial markets of increasingly sophisticated products, such as those which incorporate automatic asset re-allocation, long/short trading strategies or multiple portfolios or funds, and business-driven hedging, compliance and other risk management strategies. Any such failure, termination or constraint could adversely impact our ability to effect transactions, service our clients and manage our exposure to risk.

Risk management policies and procedures may not be fully effective in identifying or mitigating risk exposure in all market environments or against all types of risk, including employee and financial advisor misconduct.

We have devoted significant resources to develop our risk management policies and procedures and will continue to do so. Nonetheless, our policies and procedures to identify, monitor and manage risks may not be fully effective in mitigating our risk exposure in all market environments or against all types of risk. Many of our methods of managing risk and exposures are based upon our use of observed historical market behavior or statistics based on historical models. During periods of

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market volatility or due to unforeseen events, the historically derived correlations upon which these methods are based may not be valid. As a result, these methods may not predict future exposures accurately, which could be significantly greater than what our models indicate. This could cause us to incur investment losses or cause our hedging and other risk management strategies to be ineffective. Other risk management methods depend upon the evaluation of information regarding markets, clients, catastrophe occurrence or other matters that are publicly available or otherwise accessible to us, which may not always be accurate, complete, up-to-date or properly evaluated.

Moreover, we are subject to the risks of errors and misconduct by our employees and affiliated advisors, such as fraud, non-compliance with policies, recommending transactions that are not suitable, and improperly using or disclosing confidential information. These risks are difficult to detect in advance and deter, and could harm our business, results of operations or financial condition. We are further subject to the risk of nonperformance or inadequate performance of contractual obligations by third-party vendors of products and services that are used in our businesses. Management of operational, legal and regulatory risks requires, among other things, policies and procedures to record properly and verify a large number of transactions and events, and these policies and procedures may not be fully effective in mitigating our risk exposure in all market environments or against all types of risk. Insurance and other traditional risk-shifting tools may be held by or available to us in order to manage certain exposures, but they are subject to terms such as deductibles, coinsurance, limits and policy exclusions, as well as risk of counterparty denial of coverage, default or insolvency.

As a holding company, we depend on the ability of our subsidiaries to transfer funds to us to pay dividends and to meet our obligations.

We act as a holding company for our subsidiaries, through which substantially all of our operations are conducted. Dividends from our subsidiaries and permitted payments to us under our intercompany arrangements with our subsidiaries are our principal sources of cash to pay shareholder dividends and to meet our other financial obligations. These obligations include our operating expenses and interest and principal on our borrowings. If the cash we receive from our subsidiaries pursuant to dividend payment and intercompany arrangements is insufficient for us to fund any of these obligations, we may be required to raise cash through the incurrence of additional debt, the issuance of additional equity or the sale of assets. If any of this happens, it could adversely impact our financial condition and results of operations.

Insurance, banking and securities laws and regulations regulate the ability of many of our subsidiaries (such as our insurance, banking and brokerage subsidiaries and our face-amount certificate company) to pay dividends or make other permitted payments. See Item 1 of this Annual Report on Form 10-K — "Regulation" as well as the information contained in Part II, Item 7 under the heading "Management's Discussion and Analysis of Financial Condition and Results of Operations — Liquidity and Capital Resources." In addition to the various regulatory restrictions that constrain our subsidiaries' ability to pay dividends or make other permitted payments to our company, the rating organizations impose various capital requirements on our company and our insurance company subsidiaries in order for us to maintain our ratings and the ratings of our insurance subsidiaries. The value of assets on the company-level balance sheets of our subsidiaries is a significant factor in determining these restrictions and capital requirements. As asset values decline, our and our subsidiaries' ability to pay dividends or make other permitted payments can be reduced. Additionally, the various asset classes held by our subsidiaries, and used in determining required capital levels, are weighted differently or are restricted as to the proportion in which they may be held depending upon their liquidity, credit risk and other factors. Volatility in relative asset values among different asset classes can alter the proportion of our subsidiaries' holdings in those classes, which could increase required capital and constrain our and our subsidiaries' ability to pay dividends or make other permitted payments. The regulatory capital requirements and dividend-paying ability of our subsidiaries may also be affected by a change in the mix of products sold by such subsidiaries. For example, fixed annuities typically require more capital than variable annuities, and an increase in the proportion of fixed annuities sold in relation to variable annuities could increase the regulatory capital requirements of our life insurance subsidiaries. This may reduce the dividends or other permitted payments which could be made from those subsidiaries in the near term without the rating organizations viewing this negatively. Further, the capital requirements imposed upon our subsidiaries may be impacted by heightened regulatory scrutiny and intervention, which could negatively affect our and our subsidiaries' ability to pay dividends or make other permitted payments. Additionally, in the past we have found it necessary to provide support to certain of our subsidiaries in order to maintain adequate capital for regulatory or other purposes and we may provide such support in the future. The provision of such support could adversely affect our excess capital, liquidity, and the dividends or other permitted payments received from our subsidiaries.

The operation of our business in foreign markets and our investments in non-U.S. denominated securities and investment products subjects us to exchange rate and other risks in connection with earnings and income generated overseas.

While we are a U.S.-based company, a portion of our business operations occur outside of the U.S. and some of our investments are not denominated in U.S. dollars. As a result, we are exposed to certain foreign currency exchange risks that could reduce U.S. dollar equivalent earnings as well as negatively impact our general account and other proprietary investment portfolios. Appreciation of the U.S. dollar could unfavorably affect net income from foreign operations, the value of non-U.S. dollar denominated investments and investments in foreign subsidiaries. In comparison, depreciation of the

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U.S. dollar could positively affect our net income from foreign operations and the value of non-U.S. dollar denominated investments, though such depreciation could also diminish investor, creditor and rating organizations perceptions of our company compared to peer companies that have a relatively greater proportion of foreign operations or investments.

We may seek to mitigate these risks by employing various hedging strategies including entering into derivative contracts. Currency fluctuations, including the effect of changes in the value of U.S. dollar denominated investments that vary from the amounts ultimately needed to hedge our exposure to changes in the U.S. dollar equivalent of earnings and equity of these operations, may adversely affect our results of operations, cash flows or financial condition.

Changes in U.S. federal income or estate tax law could make some of our products less attractive to clients.

Many of the products we issue or on which our businesses are based (including both insurance products and non-insurance products) enjoy favorable treatment under current U.S. federal income or estate tax law. Changes in U.S. federal income or estate tax law could thus make some of our products less attractive to clients.

We are subject to tax contingencies that could adversely affect our provision for income taxes.

We are subject to the income tax laws of the U.S., its states and municipalities and those of the foreign jurisdictions in which we have significant business operations. These tax laws are complex and may be subject to different interpretations. We must make judgments and interpretations about the application of these inherently complex tax laws when determining the provision for income taxes and must also make estimates about when in the future certain items affect taxable income in the various tax jurisdictions. Disputes over interpretations of the tax laws may be settled with the taxing authority upon examination or audit. In addition, changes to the Internal Revenue Code, administrative rulings or court decisions could increase our provision for income taxes.

Risks Relating to Our Common Stock

The market price of our shares may fluctuate.

The market price of our common stock may fluctuate widely, depending upon many factors, some of which may be beyond our control, including: changes in expectations concerning our future financial performance and the future performance of the financial services industry in general, including financial estimates and recommendations by securities analysts; differences between our actual financial and operating results and those expected by investors and analysts; our strategic moves and those of our competitors, such as acquisitions, divestitures or restructurings; changes in the regulatory framework of the financial services industry and regulatory action; changes in and the adoption of accounting standards applicable to our businesses and the financial services industry; and changes in general economic or market conditions.

Stock markets in general have experienced volatility that has often been unrelated to the operating performance of a particular company. These broad market fluctuations may adversely affect the trading price of our common stock.

Provisions in our certificate of incorporation and bylaws and of Delaware law may prevent or delay an acquisition of our company, which could decrease the market value of our common stock.

Our certificate of incorporation and bylaws and Delaware law contain provisions intended to deter coercive takeover practices and inadequate takeover bids by making them unacceptably expensive to the raider and to encourage prospective acquirors to negotiate with our board of directors rather than to attempt a hostile takeover. These provisions include, among others: a board of directors that is divided into three classes with staggered terms, however, in 2010, our shareholders approved an amendment to our certificate of incorporation that provides for the annual election of all directors beginning at our 2013 annual meeting of shareholders; elimination of the right of our shareholders to act by written consent; rules regarding how shareholders may present proposals or nominate directors for election at shareholder meetings; the right of our board of directors to issue preferred stock without shareholder approval; and limitations on the right of shareholders to remove directors.

Delaware law also imposes some restrictions on mergers and other business combinations between us and any holder of 15% or more of our outstanding common stock.

We believe these provisions protect our shareholders from coercive or otherwise unfair takeover tactics by requiring potential acquirors to negotiate with our board of directors and by providing our board of directors time to assess any acquisition proposal. They are not intended to make our company immune from takeovers. However, these provisions apply even if the offer may be considered beneficial by some shareholders and could delay or prevent an acquisition that our board of directors determines is not in the best interests of our company and our shareholders.

Item 1B. Unresolved Staff Comments.

None.

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Item 2. Properties.

We operate our business from two principal locations, both of which are located in Minneapolis, Minnesota: the Ameriprise Financial Center, an 848,000 square foot building that we lease, and our 885,000 square foot Client Service Center, which we own. Each of these principal locations meets high environmental standards: The Client Service Center has achieved the U.S. Green Building Council ("USGBC") LEED Gold Certification, and the Ameriprise Financial Center has achieved USGBC LEED Silver Certification. Our lease term for the Ameriprise Financial Center began in November 2000 and is for 20 years, with several options to extend the term. Our aggregate annual rent for the Ameriprise Financial Center is $15 million. Ameriprise Financial, Inc. owns the 171,000 square foot Oak Ridge Conference Center, a training facility and conference center in Chaska, Minnesota, which can also serve as a disaster recovery site, if necessary. We also lease space in an operations center located in Minneapolis, and we occupy space in a second operations center located in Phoenix, Arizona.

Our property and casualty subsidiary, Ameriprise Auto and Home Insurance, leases approximately 142,000 square feet at its corporate headquarters in DePere, Wisconsin, a suburb of Green Bay. The lease has a ten-year term expiring in 2014 with an option to renew the lease for up to six renewal terms of five years each. They also lease a 34,000 square foot office space in Phoenix, Arizona with a lease term expiring in 2014.

Threadneedle leases one office facility in London, England and one in Swindon, England. It is the sole tenant of its London office, a 60,410 square foot building, under a lease expiring in June 2018. Threadneedle also leases property in Frankfurt, Germany, Hong Kong, Luxembourg, Singapore and Australia and rents offices in a number of other European cities, and Dubai to support its global operations.

Columbia Management leases offices in Boston containing approximately 156,000 square feet under a lease that expires in 2021 and facilities in New York City containing approximately 90,000 square feet under a lease expiring in 2019. In addition, Seligman occupies a space of 11,425 square feet in Menlo Park, California under a lease that expires in 2023, and Columbia Wanger leases 48,000 square feet in Chicago, Illinois under a lease that expires in 2019.

AFSI leases offices containing approximately 84,000 square feet in Detroit, Michigan, under a lease expiring in 2016.

Generally, we lease the premises we occupy in other locations, including the executive and bank offices that we maintain in New York City and branch offices for our employee advisors throughout the United States. We believe that the facilities owned or occupied by our company suit our needs and are well maintained.

Item 3. Legal Proceedings.

The Company and its subsidiaries are involved in the normal course of business in legal, regulatory and arbitration proceedings, including class actions, concerning matters arising in connection with the conduct of its activities as a diversified financial services firm. These include proceedings specific to the Company as well as proceedings generally applicable to business practices in the industries in which it operates. The Company can also be subject to litigation arising out of its general business activities, such as its investments, contracts, leases and employment relationships. Uncertain economic conditions, heightened and sustained volatility in the financial markets and significant financial reform legislation may increase the likelihood that clients and other persons or regulators may present or threaten legal claims or that regulators increase the scope or frequency of examinations of the Company or the financial services industry generally.

As with other financial services firms, the level of regulatory activity and inquiry concerning the Company's businesses remains elevated. From time to time, the Company receives requests for information from, and/or has been subject to examination or claims by, the SEC, FINRA, the Federal Reserve Bank, the OCC, the FSA, state insurance and securities regulators, state attorneys general and various other domestic or foreign governmental and quasi-governmental authorities on behalf of themselves or clients concerning the Company's business activities and practices, and the practices of the Company's financial advisors. During recent periods, the Company has received information requests, exams or inquiries regarding certain matters, including: sales of, or disclosures pertaining to, mutual funds, annuities, equity and fixed income securities, low priced securities, insurance products, brokerage services, financial advice offerings; trading practices within the Company's asset management business; supervision of the Company's financial advisors; company procedures and information security. The Company is also responding to regulatory audits, market conduct examinations and other inquiries (including inquiries from the states of Minnesota and New York) relating to an industry-wide investigation of unclaimed property and escheatment practices and procedures. The number of reviews and investigations has increased in recent years with regard to many firms in the financial services industry, including Ameriprise Financial. The Company has cooperated and will continue to cooperate with the applicable regulators regarding their inquiries.

These legal and regulatory proceedings and disputes are subject to uncertainties and, as such, the Company is unable to predict the ultimate resolution or range of loss that may result. An adverse outcome in one or more of these proceedings could result in adverse judgments, settlements, fines, penalties or other relief, in addition to further claims, examinations

         38

or adverse publicity that could have a material adverse effect on the Company's consolidated financial condition or results of operations.

Certain legal and regulatory proceedings are described below.

In June 2004, an action captioned John E. Gallus et al. v. American Express Financial Corp. and American Express Financial Advisors Inc., was filed in the United States District Court for the District of Arizona, and was later transferred to the United States District Court for the District of Minnesota. The plaintiffs alleged that they were investors in several of the Company's mutual funds and they purported to bring the action derivatively on behalf of those funds under the Investment Company Act of 1940 (the '40 Act). The plaintiffs alleged that fees allegedly paid to the defendants by the funds for investment advisory and administrative services were excessive. Plaintiffs seek an order declaring that defendants have violated the '40 Act and awarding unspecified damages including excessive fees allegedly paid plus interest and other costs. On July 6, 2007, the district court granted the Company's motion for summary judgment, dismissing all claims with prejudice. Plaintiffs appealed the district court's decision, and on April 8, 2009, the U.S. Court of Appeals for the Eighth Circuit reversed the district court's decision, and remanded the case for further proceedings. The Company filed with the United States Supreme Court a Petition for Writ of Certiorari to review the judgment of the Court of Appeals in this case in light of the Supreme Court's anticipated review of a similar excessive fee case captioned Jones v. Harris Associates. On March 30, 2010, the Supreme Court issued its ruling in Jones v. Harris Associates, and on April 5, 2010, the Supreme Court vacated the Eighth Circuit's decision in this case and remanded it to the Eighth Circuit for further consideration in light of the Supreme Court's decision in Jones v. Harris Associates. Without any further briefing or argument, on June 4, 2010, the Eighth Circuit remanded the case to the district court for further consideration in light of the Supreme Court's decision in Jones v. Harris Associates. On December 8, 2010, the district court re-entered its July 2007 order granting summary judgment in favor of the Company. Plaintiffs filed a notice of appeal with the Eighth Circuit on January 10, 2011. The Eighth Circuit Court heard oral arguments of the parties on November 17, 2011. The Company is awaiting the Court's ruling.

In November 2010, the Company's J. & W. Seligman & Co. Incorporated subsidiary ("Seligman") received a governmental inquiry regarding an industry insider trading investigation, as previously stated by the Company in general media reporting. The Company continues to cooperate fully with that inquiry. Neither the Company nor Seligman has been accused of any wrongdoing, and the government has confirmed that neither the Company nor any of its affiliated entities is a target of its investigation into potential insider trading.

In October 2011, a putative class action lawsuit entitled Roger Krueger, et al. vs. Ameriprise Financial, et al. was filed in the United States District Court for the District of Minnesota against the Company, certain of its present or former employees and directors, as well as certain fiduciary committees on behalf of participants and beneficiaries of the Ameriprise Financial 401(k) Plan. The alleged class period is from October 1, 2005, to the present. The action alleges that Ameriprise breached fiduciary duties under ERISA by selecting and retaining primarily proprietary mutual funds with allegedly poor performance histories, higher expenses relative to other investment options, and improper fees paid to Ameriprise Financial, Inc. or its subsidiaries. The action also alleges that the Company breached fiduciary duties under ERISA because it used its affiliate Ameriprise Trust Company as the Plan trustee and record-keeper and improperly reaped profits from the sale of the record-keeping business to Wachovia Bank, N.A. Plaintiffs allege over $20 million in damages. On January 17, 2012, all defendants filed a brief and other documents in support of their motion to dismiss the complaint. Plaintiffs filed an amended complaint on February 7, 2012. An amended briefing and hearing schedule for the motion to dismiss this amended complaint will be set by the court.

Item 4. Mine Safety Disclosures.

Not applicable.

39         

PART II.

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.

Our common stock trades principally on The New York Stock Exchange under the trading symbol AMP. As of February 10, 2012, we had approximately 20,549 common shareholders of record. Price and dividend information concerning our common shares may be found in Note 26 to our Consolidated Financial Statements included in Part II, Item 8 of this Annual Report on Form 10-K. Information regarding our equity compensation plans can be found in Part II, Item 12 of this Annual Report on Form 10-K. Information comparing the cumulative total shareholder return on our common stock to the cumulative total return for certain indices is set forth under the heading "Performance Graph" provided in our 2011 Annual Report to Shareholders and is incorporated herein by reference.

We are primarily a holding company and, as a result, our ability to pay dividends in the future will depend on receiving dividends from our subsidiaries. For information regarding our ability to pay dividends, see the information set forth under the heading "Management's Discussion and Analysis of Financial Condition and Results of Operations — Liquidity and Capital Resources" contained in Part II, Item 7 of this Annual Report on Form 10-K.

Share Repurchases

The following table presents the information with respect to purchases made by or on behalf of Ameriprise Financial, Inc. or any "affiliated purchaser" (as defined in Rule 10b-18(a)(3) under the Securities Exchange Act of 1934) of our common stock during the fourth quarter of 2011:

	(a)		(b)		(c)		(d)
Period	Total Number of Shares Purchased		Average Price Paid Per Share		Total Number of Shares Purchased as part of Publicly Announced Plans or Programs(1)		Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs(1)
October 1 to October 31, 2011
Share repurchase program(1)		1,303,667	$	42.20		1,303,667	$	1,664,100,189
Employee transactions(2)		3,865	$	39.36		N/A		N/A
November 1 to November 30, 2011
Share repurchase program(1)		1,507,692	$	44.42		1,507,692	$	1,597,130,920
Employee transactions(2)		556	$	46.56		N/A		N/A
December 1 to December 31, 2011
Share repurchase program(1)		2,650,979	$	47.53		2,650,979	$	1,471,142,496
Employee transactions(2)		321	$	45.48		N/A		N/A
Other transactions(3)		264,493	$	49.64		N/A		N/A
Totals
Share repurchase program		5,462,338	$	45.38		5,462,338
Employee transactions		4,742	$	40.62		N/A
Other transactions		264,493	$	49.64		N/A
		5,731,573				5,462,338

N/A Not applicable.

(1)

On June 15, 2011, we announced that our board of directors authorized us to repurchase up to $2.0 billion worth of our common stock through June 28, 2013. The share repurchase program does not require the purchase of any minimum number of shares, and depending on market conditions and other factors, these purchases may be commenced or suspended at any time without prior notice. Acquisitions under the share repurchase program may be made in the open market, through privately negotiated transactions or block trades or other means.

(2)

Restricted shares withheld pursuant to the terms of awards under the amended and revised Ameriprise Financial 2005 Incentive Compensation Plan (the "Plan") to offset tax withholding obligations that occur upon vesting and release of restricted shares. The Plan provides that the value of the shares withheld shall be the closing price of common stock of Ameriprise Financial, Inc. on the date the relevant transaction occurs.

(3)

Shares reacquired for the partial settlement of a total return swap to economically hedge our exposure to equity price risk of Ameriprise Financial, Inc. common stock granted as part of our Ameriprise Financial Franchise Advisor Deferred Compensation Plan.

         40

Item 6. Selected Financial Data

The following table sets forth selected consolidated financial information from our audited Consolidated Financial Statements as of December 31, 2011, 2010, 2009, 2008 and 2007 and for the five-year period ended December 31, 2011. On April 30, 2010, we acquired the long-term asset management business of Columbia Management Group. Results presented below include the results of this business after the date of acquisition. The selected financial data presented below should be read in conjunction with our Consolidated Financial Statements and Notes included elsewhere in this report and "Management's Discussion and Analysis of Financial Condition and Results of Operations."

	Years Ended December 31,
	2011			2010			2009		2008			2007(1)
	(in millions, except per share data)
Income Statement Data:
Total net revenues	$	10,192		$	9,512		$	7,397	$	6,433		$	8,001
Total expenses		8,807			7,878			6,477		6,877			6,982
Income (loss) from continuing operations	$	1,030		$	1,284		$	736	$	(100	)	$	813
Income (loss) from discontinued operations, net of tax		(60	)		(24	)		1		10			(7	)
Net income (loss)		970			1,260			737		(90	)		806
Less: Net income (loss) attributable to noncontrolling interests		(106	)		163			15		(54	)		(8	)
Net income (loss) attributable to Ameriprise Financial	$	1,076		$	1,097		$	722	$	(36	)	$	814
Earnings (Loss) Per Share Attributable to Ameriprise Financial, Inc. Common Shareholders:
Basic
Income (loss) from continuing operations	$	4.71		$	4.36		$	2.98	$	(0.21	)	$	3.48
Income (loss) from discontinued operations		(0.25	)		(0.10	)		—		0.05			(0.03	)
Net income (loss)	$	4.46		$	4.26		$	2.98	$	(0.16	)	$	3.45
Diluted
Income (loss) from continuing operations	$	4.61		$	4.27		$	2.95	$	(0.21	)	$	3.42
Income (loss) from discontinued operations		(0.24	)		(0.09	)		—		0.05			(0.03	)
Net income (loss)	$	4.37		$	4.18		$	2.95	$	(0.16)	(2)	$	3.39
Cash Dividends Declared Per Common Share	$	1.15		$	0.71		$	0.68	$	0.64		$	0.56

	December 31,
	2011		2010		2009		2008		2007
	(in millions)
Balance Sheet Data:(3)
Investments	$	38,775	$	36,755	$	36,642	$	27,509	$	30,478
Separate account assets		66,780		68,330		58,129		44,746		61,974
Total assets before consolidated investment entities		127,558		124,343		112,687		95,207		108,371
Future policy benefits and claims		31,723		30,208		30,886		29,293		27,446
Separate account liabilities		66,780		68,330		58,129		44,746		61,974
Customer deposits		9,850		8,779		8,554		8,229		6,206
Long-term debt		2,393		2,317		1,868		1,963		2,018
Short-term borrowings		504		397		—		—		—
Total liabilities before consolidated investment entities		117,730		114,205		103,464		89,049		100,808
Total Ameriprise Financial, Inc. shareholders' equity		10,255		10,725		9,269		6,174		7,802

(1)

During 2007, we recorded non-recurring separation costs as a result of our separation from American Express. During the year ended December 31, 2007, $236 million ($154 million after-tax) of such costs were incurred. These costs were primarily associated with establishing the Ameriprise Financial brand, separating and reestablishing our technology platforms and advisor and employee retention programs.

(2)

Diluted shares used in this calculation represent basic shares due to the net loss. Using actual diluted shares would result in anti-dilution.

(3)

Balance Sheet data represents assets and liabilities before consolidated investment entities, as reported on our Consolidated Balance Sheets.

41         

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis of our consolidated financial condition and results of operations should be read in conjunction with the "Forward-Looking Statements," our Consolidated Financial Statements and Notes that follow and the "Consolidated Five-Year Summary of Selected Financial Data" and the "Risk Factors" included in our Annual Report on Form 10-K. Certain reclassifications of prior year amounts have been made to conform to the current presentation. References below to "Ameriprise Financial," the "Company," "we," "us," and "our" refer to Ameriprise Financial, Inc. exclusively, to our entire family of companies, or to one or more of our subsidiaries.

Overview

We are a diversified financial services company with $631 billion in assets under management and administration as of December 31, 2011. We serve individual investors' and institutions' financial needs, hold leadership positions in financial planning, wealth management, retirement, asset management, annuities and insurance, and we maintain a strong operating and financial foundation.

Ameriprise is in a strong position to capitalize on significant demographic and market trends, which we believe will continue to drive increased demand for our services. Our emphasis on deep client-advisor relationships has been central to the success of our business model, including through the extreme market conditions of the past few years, and we believe it will help us navigate future market and economic cycles. We continue to strengthen our position as a retail financial services leader as we focus on meeting the financial needs of the mass affluent and affluent, as evidenced by our leadership in financial planning, a client retention percentage rate of 92%, and our status as a top ten ranked firm within core portions of our four main business segments, including the size of our U.S. advisor force, and assets in long-term U.S. mutual funds, variable annuities and variable universal life ("VUL") insurance.

We offer financial planning, products and services designed to be used as solutions for our clients' cash and liquidity, asset accumulation, income, protection, and estate and wealth transfer needs. Our model for delivering product solutions is built on long-term, personal relationships between our clients and our financial advisors and registered representatives ("affiliated advisors"). Our focus on personal relationships, together with our discipline in financial planning and strengths in product development and advice, allow us to address the evolving financial and retirement-related needs of our clients, including our primary target market segment, the mass affluent and affluent, which we define as households with investable assets of more than $100,000. The financial product solutions we offer through our affiliated advisors include both our own products and services and the products of other companies. Our affiliated advisor network is the primary channel through which we offer our life insurance and annuity products and services, as well as a range of banking and protection products.

Our affiliated advisors are focused on using a financial planning and advisory process designed to provide comprehensive advice that focuses on all aspects of our clients' finances. This approach allows us to recommend actions and a broad range of product solutions, including investment, annuity, insurance, banking and other financial products that can help clients attain a return or form of protection over time while accepting what they determine to be an appropriate range and level of risk. We believe our focus on meeting clients' needs through personal financial planning results in more satisfied clients with deeper, longer lasting relationships with our company and higher retention of our affiliated advisors.

As of December 31, 2011, we had a network of more than 9,700 affiliated advisors. The financial product solutions we offer through our affiliated advisors include both our own products and services and the products of other companies. Our affiliated advisor network is the primary channel through which we offer our life insurance and annuity products and services, as well as a range of banking and protection products. We offer our affiliated advisors training, tools, leadership, marketing programs and other field and centralized support to assist them in delivering advice and product solutions to clients. We believe our comprehensive and client-focused approach not only improves the products and services we provide to their clients, but also allows us to reinvest in enhanced services for clients and increase support for financial advisors.

We have four main operating segments: Advice & Wealth Management, Asset Management, Annuities and Protection, as well as our Corporate & Other segment. Our four main operating segments are aligned with the financial solutions we offer to address our clients' needs. The products and services we provide retail clients and, to a lesser extent, institutional clients, are the primary source of our revenues and net income. Revenues and net income are significantly affected by investment performance and the total value and composition of assets we manage and administer for our retail and institutional clients as well as the distribution fees we receive from other companies. These factors, in turn, are largely determined by overall investment market performance and the depth and breadth of our individual client relationships.

         42

Equity price, credit market and interest rate fluctuations can have a significant impact on our results of operations, primarily due to the effects they have on the asset management and other asset-based fees we earn, the "spread" income generated on our annuities, banking and deposit products and universal life ("UL") insurance products, the value of deferred acquisition costs ("DAC") and deferred sales inducement costs ("DSIC") assets, the values of liabilities for guaranteed benefits associated with our variable annuities and the values of derivatives held to hedge these benefits.

In June 2009, the Financial Accounting Standards Board updated the accounting standards related to the required consolidation of certain variable interest entities ("VIEs"). We adopted the accounting standard effective January 1, 2010 and recorded as a cumulative change in accounting principle an increase to appropriated retained earnings of consolidated investment entities of $473 million and consolidated approximately $5.5 billion of client assets and $5.1 billion of liabilities in VIEs onto our Consolidated Balance Sheets that were not previously consolidated. Management views the VIE assets as client assets and the liabilities have recourse only to those assets. While the economics of our business have not changed, the financial statements were impacted. Prior to adoption, we consolidated certain property funds and hedge funds. These entities and the VIEs consolidated as of January 1, 2010, are defined as consolidated investment entities ("CIEs"). Changes in the valuation of the CIE assets and liabilities impact pretax income. The net income (loss) of the CIEs is reflected in net income (loss) attributable to noncontrolling interests. The results of operations of the CIEs are reflected in the Corporate & Other segment. On a consolidated basis, the management fees we earn for the services we provide to the CIEs and the related general and administrative expenses are eliminated and the changes in the assets and liabilities related to the CIEs, primarily debt and underlying syndicated loans, are reflected in net investment income. We continue to include the fees in the management and financial advice fees line within our Asset Management segment.

Management believes that operating measures, which exclude net realized gains or losses; the market impact on variable annuity guaranteed living benefits, net of hedges, DSIC and DAC amortization; integration and restructuring charges; income (loss) from discontinued operations; and the impact of consolidating CIEs, best reflect the underlying performance of our core operations and facilitate a more meaningful trend analysis. Management uses certain of these non-GAAP measures to evaluate our financial performance on a basis comparable to that used by some securities analysts and investors. Also, certain of these non-GAAP measures are taken into consideration, to varying degrees, for purposes of business planning and analysis and for certain compensation-related matters. Throughout our Management's Discussion and Analysis, these non-GAAP measures are referred to as operating measures. While the consolidation of the CIEs impacts our balance sheet and income statement, our exposure to these entities is unchanged and there is no impact to the underlying business results. The CIEs we manage have the following characteristics:

•

They were formed on behalf of institutional investors to obtain a diversified investment portfolio and were not formed in order to obtain financing for Ameriprise Financial.

•

Ameriprise Financial receives customary, industry standard management fees for the services it provides to these CIEs and has a fiduciary responsibility to maximize the investors' returns.

•

Ameriprise Financial does not have any obligation to provide financial support to the CIEs, does not provide any performance guarantees of the CIEs and has no obligation to absorb the investors' losses.

•

Management excludes the impact of consolidating the CIEs on assets, liabilities, pretax income and equity for setting our financial performance targets and annual incentive award compensation targets.

It is management's priority to increase shareholder value over a multi-year horizon by achieving our on-average, over-time financial targets.

Our financial targets are:

•

Operating total net revenue growth of 6% to 8%,

•

Operating earnings per diluted share growth of 12% to 15%, and

•

Operating return on equity excluding accumulated other comprehensive income of 12% to 15%.

Net revenues increased $680 million, or 7%, to $10.2 billion for the year ended December 31, 2011 compared to $9.5 billion for the prior year. Operating net revenues exclude net realized gains or losses and revenues or losses of the CIEs and include the fees we earn from services provided to the CIEs. Operating net revenues increased $933 million, or 10%, to $10.1 billion for the year ended December 31, 2011 compared to $9.1 billion for the prior year.

Net income from continuing operations attributable to Ameriprise Financial per diluted share increased $0.34, or 8%, to $4.61 for the year ended December 31, 2011 compared to $4.27 for the prior year. Operating earnings exclude net realized gains or losses; the market impact on variable annuity guaranteed living benefits, net of hedges, DSIC and DAC amortization; integration and restructuring charges; income (loss) from discontinued operations; and the impact of consolidating CIEs. Operating earnings per diluted share increased $0.47, or 10%, to $5.00 for the year ended December 31, 2011 compared to $4.53 for the prior year.

43         

Return on equity from continuing operations excluding accumulated other comprehensive income was 11.5% for the twelve months ended December 31, 2011 compared to 11.6% for the prior year. Operating return on equity is calculated using operating earnings for the last twelve months in the numerator and the average Ameriprise Financial, Inc. shareholders' equity from continuing operations excluding the impact of consolidating CIEs and accumulated other comprehensive income as of the last day of the trailing four quarters and the current quarter in the denominator. Operating return on equity excluding CIEs and accumulated other comprehensive income was 13.2% for the twelve months ended December 31, 2011 compared to 12.9% for the prior year.

On April 30, 2010, we acquired the long-term asset management business of Columbia Management Group from Bank of America (the "Columbia Management Acquisition"). The acquisition, the integration of which is expected to be completed in 2012, has enhanced the scale and performance of our retail mutual fund and institutional asset management businesses. We incurred pretax non-recurring integration costs related to the Columbia Management Acquisition of $95 million for the year ended December 31, 2011. In total, we have incurred $202 million of pretax non-recurring integration costs through December 31, 2011. These costs include system integration costs, proxy and other regulatory filing costs, employee reduction and retention costs, and investment banking, legal and other acquisition costs.

During the fourth quarter of 2011, we sold Securities America Financial Corporation and its subsidiaries (collectively, "Securities America") to Ladenburg Thalmann Financial Services, Inc. for $150 million in cash and potential future payments if Securities America reaches certain financial criteria. The results of Securities America have been presented as discontinued operations for all periods presented and the related assets and liabilities have been classified as held for sale.

Critical Accounting Policies

The accounting and reporting policies that we use affect our Consolidated Financial Statements. Certain of our accounting and reporting policies are critical to an understanding of our consolidated results of operations and financial condition and, in some cases, the application of these policies can be significantly affected by the estimates, judgments and assumptions made by management during the preparation of our Consolidated Financial Statements. The accounting and reporting policies we have identified as fundamental to a full understanding of our consolidated results of operations and financial condition are described below. See Note 2 to our Consolidated Financial Statements for further information about our accounting policies.

Valuation of Investments

The most significant component of our investments is our Available-for-Sale securities, which we carry at fair value within our Consolidated Balance Sheets. The fair value of our Available-for-Sale securities at December 31, 2011 was primarily obtained from third-party pricing sources. We record unrealized securities gains (losses) in accumulated other comprehensive income (loss), net of impacts to DAC, DSIC, certain benefit reserves and income taxes. We recognize gains and losses in results of operations upon disposition of the securities.

Effective January 1, 2009, we early adopted an accounting standard that significantly changed our accounting policy regarding the timing and amount of other-than-temporary impairments for Available-for-Sale securities. When the fair value of an investment is less than its amortized cost, we assess whether or not: (i) we have the intent to sell the security (made a decision to sell) or (ii) it is more likely than not that we will be required to sell the security before its anticipated recovery. If either of these conditions is met, an other-than-temporary impairment is considered to have occurred and we must recognize an other-than-temporary impairment for the difference between the investment's amortized cost basis and its fair value through earnings. For securities that do not meet the above criteria, and we do not expect to recover a security's amortized cost basis, the security is also considered other-than-temporarily impaired. For these securities, we separate the total impairment into the credit loss component and the amount of the loss related to other factors. The amount of the total other-than-temporary impairment related to credit loss is recognized in earnings. The amount of the total other-than-temporary impairment related to other factors is recognized in other comprehensive income, net of impacts to DAC, DSIC, certain benefit reserves and income taxes. For Available-for-Sale securities that have recognized an other-than-temporary impairment through earnings, if through subsequent evaluation there is a sustained increase in the cash flow expected, the difference between the amortized cost basis and the cash flows expected to be collected is accreted as interest income. Subsequent increases and decreases in the fair value of Available-for-Sale securities are included in other comprehensive income.

For all securities that are considered temporarily impaired, we do not intend to sell these securities (have not made a decision to sell) and it is not more likely than not that we will be required to sell the security before recovery of its amortized cost basis. We believe that we will collect all principal and interest due on all investments that have amortized cost in excess of fair value that are considered only temporarily impaired.

Factors we consider in determining whether declines in the fair value of fixed maturity securities are other-than-temporary include: (i) the extent to which the market value is below amortized cost; (ii) the duration of time in which there has been

         44

a significant decline in value; (iii) fundamental analysis of the liquidity, business prospects and overall financial condition of the issuer; and (iv) market events that could impact credit ratings, economic and business climate, litigation and government actions, and similar external business factors. In order to determine the amount of the credit loss component for corporate debt securities considered other-than-temporarily impaired, a best estimate of the present value of cash flows expected to be collected discounted at the security's effective interest rate is compared to the amortized cost basis of the security. The significant inputs to cash flow projections consider potential debt restructuring terms, projected cash flows available to pay creditors and our position in the debtor's overall capital structure.

For structured investments (e.g., residential mortgage backed securities, commercial mortgage backed securities, asset backed securities and other structured investments), we also consider factors such as overall deal structure and our position within the structure, quality of underlying collateral, delinquencies and defaults, loss severities, recoveries, prepayments and cumulative loss projections in assessing potential other-than-temporary impairments of these investments. Based upon these factors, securities that have indicators of potential other-than-temporary impairment are subject to detailed review by management. Securities for which declines are considered temporary continue to be carefully monitored by management.

Deferred Acquisition Costs and Deferred Sales Inducement Costs

For our annuity and life, disability income and long term care insurance products, our DAC and DSIC balances at any reporting date are supported by projections that show management expects there to be adequate premiums or estimated gross profits after that date to amortize the remaining DAC and DSIC balances. These projections are inherently uncertain because they require management to make assumptions about financial markets, anticipated mortality and morbidity levels and policyholder behavior over periods extending well into the future. Projection periods used for our annuity products are typically 30 to 50 years. Projection periods for our life insurance and long term care insurance products are often 50 years or longer and projection periods for our disability income products can be up to 45 years. Management regularly monitors financial market conditions and actual policyholder behavior experience and compares them to its assumptions.

For annuity and UL insurance products, the assumptions made in projecting future results and calculating the DAC balance and DAC amortization expense are management's best estimates. Management is required to update these assumptions whenever it appears that, based on actual experience or other evidence, earlier estimates should be revised. When assumptions are changed, the percentage of estimated gross profits used to amortize DAC might also change. A change in the required amortization percentage is applied retrospectively; an increase in amortization percentage will result in a decrease in the DAC balance and an increase in DAC amortization expense, while a decrease in amortization percentage will result in an increase in the DAC balance and a decrease in DAC amortization expense. The impact on results of operations of changing assumptions can be either positive or negative in any particular period and is reflected in the period in which such changes are made. For products with associated DSIC, the same policy applies in calculating the DSIC balance and periodic DSIC amortization.

For other life, disability income and long term care insurance products, the assumptions made in calculating our DAC balance and DAC amortization expense are consistent with those used in determining the liabilities and, therefore, are intended to provide for adverse deviations in experience and are revised only if management concludes experience will be so adverse that DAC are not recoverable. If management concludes that DAC are not recoverable, DAC are reduced to the amount that is recoverable based on best estimate assumptions and there is a corresponding expense recorded in our Consolidated Statements of Operations.

For annuity and life, disability income and long term care insurance products, key assumptions underlying these long-term projections include interest rates (both earning rates on invested assets and rates credited to contractholder and policyholder accounts), equity market performance, mortality and morbidity rates and the rates at which policyholders are expected to surrender their contracts, make withdrawals from their contracts and make additional deposits to their contracts. Assumptions about earned and credited interest rates are the primary factors used to project interest margins, while assumptions about equity and bond market performance are the primary factors used to project client asset value growth rates, and assumptions about surrenders, withdrawals and deposits comprise projected persistency rates. Management must also make assumptions to project maintenance expenses associated with servicing our annuity and insurance businesses during the DAC amortization period.

The client asset value growth rates are the rates at which variable annuity and VUL insurance contract values invested in separate accounts are assumed to appreciate in the future. The rates used vary by equity and fixed income investments. Management reviews and, where appropriate, adjusts its assumptions with respect to client asset value growth rates on a regular basis. The long-term client asset value growth rates are based on assumed gross annual returns of 9% for equity funds and 6% for fixed income funds. We typically use a five-year mean reversion process as a guideline in setting near-term equity fund growth rates based on a long-term view of financial market performance as well as recent actual performance. The suggested near-term equity fund growth rate is reviewed quarterly to ensure consistency with management's assessment of anticipated equity market performance.

45         

A decrease of 100 basis points in various rate assumptions is likely to result in an increase in DAC and DSIC amortization and an increase in benefits and claims expense from variable annuity guarantees. The following table presents the estimated impact to current period pretax income:

	Estimated Impact to Pretax Income(1)
	(in millions)
Decrease in future near and long-term fixed income returns by 100 basis points	$	(38	)
Decrease in future near-term equity fund growth returns by 100 basis points	$	(37	)
Decrease in future long-term equity fund growth returns by 100 basis points		(27	)
Decrease in future near and long-term equity returns by 100 basis points	$	(64	)

(1)

An increase in the above assumptions by 100 basis points would result in an increase to pretax income for approximately the same amount.

We monitor other principal DAC and DSIC amortization assumptions, such as persistency, mortality, morbidity, interest margin and maintenance expense levels each quarter and, when assessed independently, each could impact our DAC and DSIC balances.

The analysis of DAC and DSIC balances and the corresponding amortization is a dynamic process that considers all relevant factors and assumptions described previously. Unless management identifies a significant deviation over the course of the quarterly monitoring, management reviews and updates these DAC and DSIC amortization assumptions annually in the third quarter of each year. An assessment of sensitivity associated with changes in any single assumption would not necessarily be an indicator of future results.

Future Policy Benefits and Claims

Fixed Annuities and Variable Annuity Guarantees

Future policy benefits and claims related to fixed annuities and variable annuity guarantees include liabilities for fixed account values on fixed and variable deferred annuities, guaranteed benefits associated with variable annuities, equity indexed annuities and fixed annuities in a payout status.

Liabilities for fixed account values on fixed and variable deferred annuities are equal to accumulation values, which are the cumulative gross deposits and credited interest less withdrawals and various charges.

The majority of the variable annuity contracts offered by us contain guaranteed minimum death benefit ("GMDB") provisions. When market values of the customer's accounts decline, the death benefit payable on a contract with a GMDB may exceed the contract accumulation value. We also offer variable annuities with death benefit provisions that gross up the amount payable by a certain percentage of contract earnings which are referred to as gain gross-up benefits. In addition, we offer contracts with guaranteed minimum withdrawal benefit ("GMWB") and guaranteed minimum accumulation benefit ("GMAB") provisions and, until May 2007, we offered contracts containing guaranteed minimum income benefit ("GMIB") provisions.

In determining the liabilities for GMDB, GMIB and the life contingent benefits associated with GMWB, we project these benefits and contract assessments using actuarial models to simulate various equity market scenarios. Significant assumptions made in projecting future benefits and assessments relate to customer asset value growth rates, mortality, persistency and investment margins and are consistent with those used for DAC asset valuation for the same contracts. As with DAC, management reviews, and where appropriate, adjusts its assumptions each quarter. Unless management identifies a material deviation over the course of quarterly monitoring, management reviews and updates these assumptions annually in the third quarter of each year. The amounts in the table above in "Deferred Acquisition Costs and Deferred Sales Inducement Costs" include the estimated impact to benefits and claims expense related to variable annuity guarantees resulting from a decrease of 100 basis points in various rate assumptions.

The GMDB liability is determined by estimating the expected value of death benefits in excess of the projected contract accumulation value and recognizing the excess over the estimated meaningful life based on expected assessments (e.g., mortality and expense fees, contractual administrative charges and similar fees).

If elected by the contract owner and after a stipulated waiting period from contract issuance, a GMIB guarantees a minimum lifetime annuity based on a specified rate of contract accumulation value growth and predetermined annuity purchase rates. The GMIB liability is determined each period by estimating the expected value of annuitization benefits in excess of the projected contract accumulation value at the date of annuitization and recognizing the excess over the estimated meaningful life based on expected assessments.

The embedded derivatives related to GMAB and the non-life contingent benefits associated with GMWB provisions are recorded at fair value. See Note 14 to our Consolidated Financial Statements for information regarding the fair value measurement of embedded derivatives. The liability for the life contingent benefits associated with GMWB provisions is

         46

determined in the same way as the GMDB liability. Significant assumptions made in projecting future benefits and fees relate to persistency and benefit utilization. As with DAC, management reviews, and where appropriate, adjusts its assumptions each quarter. Unless management identifies a material deviation over the course of quarterly monitoring, management reviews and updates these assumptions annually in the third quarter of each year. The changes in both the fair values of the GMWB and GMAB embedded derivatives and the liability for life contingent benefits are reflected in benefits, claims, losses and settlement expenses.

Liabilities for equity indexed annuities are equal to the accumulation of host contract values covering guaranteed benefits and the fair value of embedded equity options.

Liabilities for fixed annuities in a benefit or payout status are based on future estimated payments using established industry mortality tables and interest rates, ranging from 4.25% to 9.5% at December 31, 2011, depending on year of issue, with an average rate of approximately 5.47%.

Life, Disability Income and Long Term Care Insurance

Future policy benefits and claims related to life, disability income and long term care insurance include liabilities for fixed account values on fixed and variable universal life policies, liabilities for indexed accounts of indexed universal life ("IUL") products, liabilities for unpaid amounts on reported claims, estimates of benefits payable on claims incurred but not yet reported and estimates of benefits that will become payable on term life, whole life, disability income and long term care policies as claims are incurred in the future.

Liabilities for fixed account values on fixed and variable universal life insurance are equal to accumulation values. Accumulation values are the cumulative gross deposits and credited interest less various contractual expense and mortality charges and less amounts withdrawn by policyholders.

Liabilities for indexed accounts of IUL products are equal to the accumulation of host contract values covering guaranteed benefits and the fair value of embedded equity options.

A portion of our fixed and variable universal life contracts have product features that result in profits followed by losses from the insurance component of the contract. These profits followed by losses can be generated by the cost structure of the product or secondary guarantees in the contract. The secondary guarantee ensures that, subject to specified conditions, the policy will not terminate and will continue to provide a death benefit even if there is insufficient policy value to cover the monthly deductions and charges.

In determining the liability for contracts with profits followed by losses, we project benefits and contract assessments using actuarial models. Significant assumptions made in projecting future benefits and assessments relate to customer asset value growth rates, mortality, persistency and investment margins and are consistent with those used for DAC asset valuation for the same contracts. As with DAC, management reviews, and where appropriate, adjusts its assumptions each quarter. Unless management identifies a material deviation over the course of quarterly monitoring, management reviews and updates these assumptions annually in the third quarter of each year.

The liability for these future losses is determined by estimating the death benefits in excess of account value and recognizing the excess over the estimated meaningful life based on expected assessments (e.g. cost of insurance charges, contractual administrative charges, similar fees and investment margin). See Note 10 to our Consolidated Financial Statements for information regarding the liability for contracts with secondary guarantees.

Liabilities for unpaid amounts on reported life insurance claims are equal to the death benefits payable under the policies. Liabilities for unpaid amounts on reported disability income and long term care claims include any periodic or other benefit amounts due and accrued, along with estimates of the present value of obligations for continuing benefit payments. These amounts are calculated based on claim continuance tables which estimate the likelihood an individual will continue to be eligible for benefits. Present values are calculated at interest rates established when claims are incurred. Anticipated claim continuance rates are based on established industry tables, adjusted as appropriate for our experience. Interest rates used with disability income claims ranged from 3.0% to 8.0% at December 31, 2011, with an average rate of 4.5%. Interest rates used with long term care claims ranged from 4.0% to 7.0% at December 31, 2011, with an average rate of 4.2%.

Liabilities for estimated benefits payable on claims that have been incurred but not yet reported are based on periodic analysis of the actual time lag between when a claim occurs and when it is reported.

Liabilities for estimates of benefits that will become payable on future claims on term life, whole life, disability income and long term care policies are based on the net level premium method, using anticipated premium payments, mortality and morbidity rates, policy persistency and interest rates earned on assets supporting the liability. Anticipated mortality and morbidity rates are based on established industry mortality and morbidity tables, with modifications based on our experience. Anticipated premium payments and persistency rates vary by policy form, issue age, policy duration and certain other pricing factors. Anticipated interest rates for term and whole life ranged from 4.0% to 10.0% at December 31, 2011, depending on policy form, issue year and policy duration. Anticipated interest rates for disability income policies

47         

ranged from 4.0% to 7.5% at December 31, 2011, depending on policy form, issue year and policy duration. Anticipated interest rates for long term care policy reserves can vary by plan and year and ranged from 5.8% to 9.4% at December 31, 2011.

Where applicable, benefit amounts expected to be recoverable from reinsurance companies who share in the risk are separately recorded as reinsurance recoverable within receivables.

Derivative Instruments and Hedging Activities

We use derivative instruments to manage our exposure to various market risks. Examples include index options, interest rate swaps and swaptions, total return swaps, and futures that economically hedge the equity and interest rate exposure of derivatives embedded in certain annuity, life and certificate liabilities, as well as exposure to price risk arising from affiliated mutual fund seed money investments. All derivatives are recorded at fair value. The fair value of our derivative instruments is determined using either market quotes or valuation models that are based upon the net present value of estimated future cash flows and incorporate current market observable inputs to the extent available.

The accounting for changes in the fair value of a derivative instrument depends on its intended use and the resulting hedge designation, if any. We primarily use derivatives as economic hedges that are not designated as accounting hedges or do not qualify for hedge accounting treatment. We occasionally designate derivatives as (i) hedges of changes in the fair value of assets, liabilities or firm commitments ("fair value hedges"), (ii) hedges of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability ("cash flow hedges") or (iii) hedges of foreign currency exposures of net investments in foreign operations ("net investment hedges in foreign operations").

Our policy is to not offset fair value amounts recognized for derivatives and collateral arrangements executed with the same counterparty under the same master netting arrangement. For derivative instruments that do not qualify for hedge accounting or are not designated as accounting hedges, changes in fair value are recognized in current period earnings. The changes in fair value of derivatives hedging variable annuity living benefits and certain variable annuity death benefits, when applicable, are included within benefits, claims, losses and settlement expenses. The changes in fair value of derivatives hedging equity indexed annuities and IUL products are included within interest credited to fixed accounts and the changes in fair value of derivatives hedging stock market certificates are included within banking and deposit interest expense. The changes in fair value of derivatives hedging equity price risk of Ameriprise Financial, Inc. common stock granted as part of the Ameriprise Financial Franchise Advisor Deferred Equity Plan are included in distribution expenses. The changes in fair value of all other derivatives that do not qualify for hedge accounting or are not designated as hedges are a component of net investment income.

For derivative instruments that qualify as fair value hedges, changes in the fair value of the derivatives, as well as changes in the fair value of the hedged assets, liabilities or firm commitments, are recognized on a net basis in current period earnings. The carrying value of the hedged item is adjusted for the change in fair value from the designated hedged risk. If a fair value hedge designation is removed or the hedge is terminated prior to maturity, previous adjustments to the carrying value of the hedged item are recognized into earnings over the remaining life of the hedged item.

For derivative instruments that qualify as cash flow hedges, the effective portion of the gain or loss on the derivative instruments is reported in accumulated other comprehensive income (loss) and reclassified into earnings when the hedged item or transaction impacts earnings. The amount that is reclassified into earnings is presented in the Consolidated Statements of Operations with the hedged instrument or transaction impact. Any ineffective portion of the gain or loss is reported in current period earnings as a component of net investment income. If a hedge designation is removed or a hedge is terminated prior to maturity, the amount previously recorded in accumulated other comprehensive income (loss) is reclassified to earnings over the period that the hedged item impacts earnings. For any hedge relationships that are discontinued because the forecasted transaction is not expected to occur according to the original strategy, any related amounts previously recorded in accumulated other comprehensive income (loss) are recognized in earnings immediately.

For derivative instruments that qualify as net investment hedges in foreign operations, the effective portion of the change in fair value of the derivatives is recorded in accumulated other comprehensive income (loss) as part of the foreign currency translation adjustment. Any ineffective portion of net investment hedges in foreign operations is recognized in net investment income during the period of change.

For further details on the types of derivatives we use and how we account for them, see Note 2 and Note 15 to our Consolidated Financial Statements.

Income Tax Accounting

Income taxes, as reported in our Consolidated Financial Statements, represent the net amount of income taxes that we expect to pay to or receive from various taxing jurisdictions in connection with our operations. We provide for income taxes based on amounts that we believe we will ultimately owe taking into account the recognition and measurement for uncertain tax positions. Inherent in the provision for income taxes are estimates and judgments regarding the tax treatment

         48

of certain items. In the event that the ultimate tax treatment of items differs from our estimates, we may be required to significantly change the provision for income taxes recorded in our Consolidated Financial Statements.

In connection with the provision for income taxes, our Consolidated Financial Statements reflect certain amounts related to deferred tax assets and liabilities, which result from temporary differences between the assets and liabilities measured for financial statement purposes versus the assets and liabilities measured for tax return purposes. Included in deferred tax assets are significant capital losses that have been recognized for financial statement purposes but not yet for tax return purposes as well as future deductible capital losses realized for tax return purposes. Under current U.S. federal income tax law, capital losses generally must be used against capital gain income within five years of the year in which the capital losses are recognized for tax purposes.

We are required to establish a valuation allowance for any portion of our deferred tax assets that management believes will not be realized. Significant judgment is required in determining if a valuation allowance should be established, and the amount of such allowance if required. Factors used in making this determination include estimates relating to the performance of the business including the ability to generate capital gains. Consideration is given to, among other things in making this determination, (i) future taxable income exclusive of reversing temporary differences and carryforwards, (ii) future reversals of existing taxable temporary differences, (iii) taxable income in prior carryback years, and (iv) tax planning strategies. Management may need to identify and implement appropriate planning strategies to ensure our ability to realize our deferred tax assets and avoid the establishment of a valuation allowance with respect to such assets. Management believes it is more likely than not that we will not realize the full benefit of certain state net operating losses, and therefore a valuation allowance of $5 million has been established as of December 31, 2011.

Recent Accounting Pronouncements

For information regarding recent accounting pronouncements and their expected impact on our future consolidated results of operations and financial condition, see Note 2 to our Consolidated Financial Statements.

We adopted new accounting rules for the deferral of insurance and annuity acquisition costs on January 1, 2012 on a retrospective basis. The change reduced our DAC asset by $2.0 billion, which decreased retained earnings by $1.4 billion after-tax. The retrospective adoption increased our return on equity from continuing operations excluding accumulated other comprehensive income by 2.4% for the twelve months ended December 31, 2011. The adoption will not impact our strong excess capital position or cash flow. We estimate that the adoption will have a marginal impact to operating earnings in 2012.

Sources of Revenues and Expenses

Management and Financial Advice Fees

Management and financial advice fees relate primarily to fees earned from managing mutual funds, separate account and wrap account assets and institutional investments, as well as fees earned from providing financial advice and administrative services (including transfer agent, administration and custodial fees earned from providing services to retail mutual funds). Management and financial advice fees also include mortality and expense risk fees earned on separate account assets.

Our management fees are generally accrued daily and collected monthly. A significant portion of our management fees are calculated as a percentage of the fair value of our managed assets. The substantial majority of our managed assets are valued by third party pricing services vendors based upon observable market data. The selection of our third party pricing services vendors and the reliability of their prices are subject to certain governance procedures, such as exception reporting, subsequent transaction testing, and annual due diligence of our vendors, which includes assessing the vendor's valuation qualifications, control environment, analysis of asset-class specific valuation methodologies and understanding of sources of market observable assumptions.

Several of our mutual funds had a performance incentive adjustment ("PIA"). The PIA increased or decreased the level of management fees received based on the specific fund's relative performance as measured against a designated external index. We discontinued the PIA earned by our domestic mutual funds during 2011. We recognized PIA revenue monthly on a 12 month rolling performance basis. We may also receive performance-based incentive fees from hedge funds, Threadneedle Open Ended Investment Companies ("OEICs"), or other structured investments that we manage. The annual performance fees for structured investments are recognized as revenue at the time the performance fee is finalized or no longer subject to adjustment. All other performance fees are based on a full contract year and are final at the end of the contract year. Any performance fees received are not subject to repayment or any other clawback provisions and approximately 1% of managed assets as of December 31, 2011 are subject to "high water marks" whereby we will not earn incentive fees even if the fund has positive returns until it surpasses the previous high water mark. Employee benefit plan and institutional investment management and administration services fees are negotiated and are also generally

49         

based on underlying asset values. Fees from financial planning and advice services are recognized when the financial plan is delivered.

Distribution Fees

Distribution fees primarily include point-of-sale fees (such as mutual fund front-end sales loads) and asset-based fees (such as 12b-1 distribution and shareholder service fees) that are generally based on a contractual percentage of assets and recognized when earned. Distribution fees also include amounts received under marketing support arrangements for sales of mutual funds and other companies' products, such as through our wrap accounts, as well as surrender charges on fixed and variable universal life insurance and annuities.

Net Investment Income

Net investment income primarily includes interest income on fixed maturity securities classified as Available-for-Sale, commercial mortgage loans, policy loans, consumer loans, other investments and cash and cash equivalents; the changes in fair value of trading securities, certain derivatives and certain assets and liabilities of consolidated investment entities; the pro rata share of net income or loss on equity method investments; and realized gains and losses on the sale of securities and charges for other-than-temporary impairments of investments related to credit losses. Interest income is accrued as earned using the effective interest method, which makes an adjustment of the yield for security premiums and discounts on all performing fixed maturity securities classified as Available-for-Sale and commercial mortgage loans so that the related security or loan recognizes a constant rate of return on the outstanding balance throughout its term. Realized gains and losses on securities, other than trading securities and equity method investments, are recognized using the specific identification method on a trade date basis.

Premiums

Premiums include premiums on property-casualty insurance, traditional life and health (disability income and long term care) insurance and immediate annuities with a life contingent feature. Premiums on auto and home insurance are net of reinsurance premiums and are recognized ratably over the coverage period. Premiums on traditional life and health insurance are net of reinsurance ceded and are recognized as revenue when due.

Other Revenues

Other revenues include certain charges assessed on fixed and variable universal life insurance and annuities, which consist of cost of insurance charges, net of reinsurance premiums and cost of reinsurance for UL insurance products, variable annuity guaranteed benefit rider charges and administration charges against contractholder accounts or balances. Premiums paid by fixed and variable universal life policyholders and annuity contractholders are considered deposits and are not included in revenue. Other revenues also include revenues related to certain consolidated limited partnerships.

Banking and Deposit Interest Expense

Banking and deposit interest expense primarily includes interest expense related to banking deposits and investment certificates. Additionally, banking and deposit interest expense includes interest related to non-recourse debt of certain consolidated limited partnerships. The changes in fair value of stock market certificate embedded derivatives and the derivatives hedging stock market certificates are included within banking and deposit interest expense.

Distribution Expenses

Distribution expenses primarily include compensation paid to our financial advisors, registered representatives, third-party distributors and wholesalers, net of amounts capitalized and amortized as part of DAC. The amounts capitalized and amortized are based on actual distribution costs. The majority of these costs, such as advisor and wholesaler compensation, vary directly with the level of sales. Distribution expenses also include marketing support and other distribution and administration related payments made to affiliated and unaffiliated distributors of products provided by our affiliates. The majority of these expenses vary with the level of sales, or assets held, by these distributors, and the remainder is fixed. Distribution expenses also include wholesaling costs.

Interest Credited to Fixed Accounts

Interest credited to fixed accounts represents amounts earned by contractholders and policyholders on fixed account values associated with fixed and variable universal life and annuity contracts. The changes in fair value of equity indexed annuity and IUL embedded derivatives and the derivatives hedging these products are included within interest credited to fixed accounts.

Benefits, Claims, Losses and Settlement Expenses

Benefits, claims, losses and settlement expenses consist of amounts paid and changes in liabilities held for anticipated future benefit payments under insurance policies and annuity contracts, along with costs to process and pay such

         50

amounts. Amounts are net of benefit payments recovered or expected to be recovered under reinsurance contracts. Benefits under variable annuity guarantees include the changes in fair value of GMWB and GMAB embedded derivatives and the derivatives hedging these benefits, as well as the changes in fair value of derivatives hedging GMDB provisions. Benefits, claims, losses and settlement expenses also include amortization of DSIC.

Amortization of DAC

Direct sales commissions and other costs capitalized as DAC are amortized over time. For annuity and UL contracts, DAC are amortized based on projections of estimated gross profits over amortization periods equal to the approximate life of the business. For other insurance products, DAC are generally amortized as a percentage of premiums over amortization periods equal to the premium-paying period. For certain mutual fund products, DAC are generally amortized over fixed periods on a straight-line basis adjusted for redemptions. See "Deferred Acquisition Costs and Deferred Sales Inducement Costs" under "Critical Accounting Policies" for further information on DAC.

Interest and Debt Expense

Interest and debt expense primarily includes interest on corporate debt and debt of consolidated investment entities, the impact of interest rate hedging activities and amortization of debt issuance costs.

General and Administrative Expense

General and administrative expense includes compensation, share-based awards and other benefits for employees (other than employees directly related to distribution, including financial advisors), integration costs, professional and consultant fees, information technology, facilities and equipment, advertising and promotion, legal and regulatory and corporate related expenses.

Assets Under Management and Administration

Assets under management ("AUM") include assets for which we provide investment management services, such as the assets of the Columbia funds and Threadneedle funds, assets of institutional clients and assets of clients in our affiliated advisor platform held in wrap accounts as well as assets managed by sub-advisers selected by us. AUM also includes certain assets on our Consolidated Balance Sheets for which we provide investment management services and recognize management fees in our Asset Management segment, such as the assets of the general account, RiverSource Variable Product funds held in separate accounts of our life insurance subsidiaries and client assets of CIEs. These assets do not include assets under advisement, for which we provide model portfolios but do not have full discretionary investment authority.

Assets under administration ("AUA") include assets for which we provide administrative services such as client assets invested in other companies' products that we offer outside of our wrap accounts. These assets include those held in clients' brokerage accounts. We generally record fees received from administered assets as distribution fees. We do not exercise management discretion over these assets and do not earn a management fee. These assets are not reported on our Consolidated Balance Sheets. AUA also includes certain assets on our Consolidated Balance Sheets for which we do not provide investment management services and do not recognize management fees, such as investments in non-affiliated funds held in the separate accounts of our life insurance subsidiaries. These assets do not include assets under advisement, for which we provide model portfolios but do not have full discretionary investment authority.

The following table presents detail regarding our AUM and AUA:

	December 31,
	2011			2010			Change
	(in billions)
Assets Under Management and Administration
Advice & Wealth Management AUM	$	104.7		$	97.5			7	%
Asset Management AUM		435.5			456.8			(5	)
Eliminations		(12.6	)		(12.4	)		(2	)
Total Assets Under Management		527.6			541.9			(3	)
Total Assets Under Administration		103.7			105.6			(2	)
Total AUM and AUA	$	631.3		$	647.5			(3	)%

Total AUM decreased $14.3 billion, or 3%, to $527.6 billion as of December 31, 2011 compared to the prior year primarily due to Asset Management AUM net outflows, partially offset by wrap account net inflows.

51         

Consolidated Results of Operations

Year Ended December 31, 2011 Compared to Year Ended December 31, 2010

Management believes that operating measures, which exclude net realized gains or losses; the market impact on variable annuity guaranteed living benefits, net of hedges, DSIC and DAC amortization; integration and restructuring charges; income (loss) from discontinued operations; and the impact of consolidating CIEs, best reflect the underlying performance of our core operations and facilitate a more meaningful trend analysis. See our discussion on the use of these non-GAAP measures in the Overview section above.

The following table presents our consolidated results of operations:

	Years Ended December 31,
	2011								2010
	GAAP			Less: Adjustments(1)			Operating		GAAP			Less: Adjustments(1)			Operating		Operating Change
	(in millions)
Revenues
Management and financial advice fees	$	4,537		$	(49	)	$	4,586	$	3,784		$	(38	)	$	3,822	$	764		20	%
Distribution fees		1,573			—			1,573		1,447			—			1,447		126		9
Net investment income		2,046			97			1,949		2,309			308			2,001		(52	)	(3	)
Premiums		1,220			—			1,220		1,179			—			1,179		41		3
Other revenues		863			94			769		863			125			738		31		4
Total revenues		10,239			142			10,097		9,582			395			9,187		910		10
Banking and deposit interest expense		47			—			47		70			—			70		(23	)	(33	)
Total net revenues		10,192			142			10,050		9,512			395			9,117		933		10
Expenses
Distribution expenses		2,497			—			2,497		2,065			—			2,065		432		21
Interest credited to fixed accounts		853			—			853		909			—			909		(56	)	(6	)
Benefits, claims, losses and settlement expenses		1,557			67			1,490		1,750			9			1,741		(251	)	(14	)
Amortization of deferred acquisition costs		618			(8	)		626		127			16			111		515		NM
Interest and debt expense		317			221			96		290			181			109		(13	)	(12	)
General and administrative expense		2,965			116			2,849		2,737			129			2,608		241		9
Total expenses		8,807			396			8,411		7,878			335			7,543		868		12
Income from continuing operations before income tax provision		1,385			(254	)		1,639		1,634			60			1,574		65		4
Income tax provision		355			(52	)		407		350			(36	)		386		21		5
Income from continuing operations		1,030			(202	)		1,232		1,284			96			1,188		44		4
Loss from discontinued operations, net of tax		(60	)		(60	)		—		(24	)		(24	)		—		—		—
Net income		970			(262	)		1,232		1,260			72			1,188		44		4
Less: Net income (loss) attributable to non- controlling interests		(106	)		(106	)		—		163			163			—		—		—
Net income attributable to Ameriprise Financial	$	1,076		$	(156	)	$	1,232	$	1,097		$	(91	)	$	1,188	$	44		4	%

NM

Not Meaningful. 

(1)

Includes the elimination of management fees we earn for services provided to the CIEs and the related expense; revenues and expenses of the CIEs; net realized gains or losses; the market impact on variable annuity living benefits, net of hedges, DSIC and DAC amortization; integration and restructuring charges; and income (loss) from discontinued operations. Income tax provision is calculated using the statutory tax rate of 35% on applicable adjustments.

         52

The following table presents the components of the adjustments in the table above:

	Years Ended December 31,
	2011									2010
	CIEs			Other Adjustments(1)			Total Adjustments			CIEs			Other Adjustments(1)			Total Adjustments
	(in millions)
Revenues
Management and financial advice fees	$	(49	)	$	—		$	(49	)	$	(38	)	$	—		$	(38	)
Distribution fees		—			—			—			—			—			—
Net investment income		91			6			97			275			33			308
Premiums		—			—			—			—			—			—
Other revenues		94			—			94			125			—			125
Total revenues		136			6			142			362			33			395
Banking and deposit interest expense		—			—			—			—			—			—
Total net revenues		136			6			142			362			33			395
Expenses
Distribution expenses		—			—			—			—			—			—
Interest credited to fixed accounts		—			—			—			—			—			—
Benefits, claims, losses and settlement expenses		—			67			67			—			9			9
Amortization of deferred acquisition costs		—			(8	)		(8	)		—			16			16
Interest and debt expense		221			—			221			181			—			181
General and administrative expense		21			95			116			18			111			129
Total expenses		242			154			396			199			136			335
Income from continuing operations before income tax provision		(106	)		(148	)		(254	)		163			(103	)		60
Income tax provision		—			(52	)		(52	)		—			(36	)		(36	)
Income from continuing operations		(106	)		(96	)		(202	)		163			(67	)		96
Loss from discontinued operations, net of tax		—			(60	)		(60	)		—			(24	)		(24	)
Net income		(106	)		(156	)		(262	)		163			(91	)		72
Less: Net income (loss) attributable to noncontrolling interests		(106	)		—			(106	)		163			—			163
Net income attributable to Ameriprise Financial	$	—		$	(156	)	$	(156	)	$	—		$	(91	)	$	(91	)

(1)

Other adjustments include net realized gains or losses; the market impact on variable annuity living benefits, net of hedges, DSIC and DAC amortization; integration and restructuring charges; and income (loss) from discontinued operations.

The following table presents a reconciliation of operating earnings per diluted share:

	Years Ended December 31,						Per Diluted Share Years Ended December 31,
	2011			2010			2011			2010
	(in millions, except per share amounts)
Income from continuing operations	$	1,030		$	1,284
Less: Net income (loss) attributable to noncontrolling interests		(106	)		163
Net income from continuing operations attributable to Ameriprise Financial		1,136			1,121		$	4.61		$	4.27
Loss from discontinued operations, net of tax		(60	)		(24	)		(0.24	)		(0.09	)
Net income attributable to Ameriprise Financial		1,076			1,097			4.37			4.18
Operating adjustments, after-tax		156			91			0.63			0.35
Operating earnings	$	1,232		$	1,188		$	5.00		$	4.53
Weighted average common shares outstanding:
Basic		241.4			257.4
Diluted		246.3			262.3

53         

The following table presents a reconciliation of operating return on equity excluding CIEs and accumulated other comprehensive income:

	Twelve Months Ended December 31,
	2011			2010
	(in millions)
Net income from continuing operations attributable to Ameriprise Financial	$	1,136		$	1,121
Less: Adjustments(1)		(96	)		(67	)
Operating earnings	$	1,232		$	1,188
Total Ameriprise Financial, Inc. shareholders' equity	$	10,470		$	10,309
Less: Assets and liabilities held for sale		29			102
Less: Accumulated other comprehensive income, net of tax		603			540
Total Ameriprise Financial, Inc. shareholders' equity from continuing operations excluding AOCI		9,838			9,667
Less: Equity impacts attributable to CIEs		478			455
Operating equity	$	9,360		$	9,212
Return on equity from continuing operations, excluding AOCI		11.5	%		11.6	%
Operating return on equity excluding CIEs and AOCI(2)		13.2	%		12.9	%

(1)

Adjustments reflect the trailing twelve months' sum of after-tax net realized gains or losses; the market impact on variable annuity guaranteed living benefits, net of hedges, DAC and DSIC amortization; and integration and restructuring charges.

(2)

Operating return on equity excluding accumulated other comprehensive income is calculated using the trailing twelve months of earnings excluding the after-tax net realized gains or losses; the market impact on variable annuity guaranteed living benefits, net of hedges, DAC and DSIC amortization; integration and restructuring charges; and discontinued operations in the numerator, and Ameriprise Financial, Inc. shareholders' equity excluding accumulated other comprehensive income; the impact of CIEs; and the assets and liabilities held for sale using a five point average of quarter-end equity in the denominator.

Overall

Net income attributable to Ameriprise Financial decreased $21 million, or 2%, to $1.1 billion for the year ended December 31, 2011 compared to $1.1 billion for the prior year. Net income from continuing operations attributable to Ameriprise Financial increased $15 million, or 1%, to $1.1 billion for the year ended December 31, 2011 compared to $1.1 billion for the prior year. Loss from discontinued operations, net of tax, of $60 million for the year ended December 31, 2011 included a $77 million after-tax charge related to previously disclosed legal expenses and a $14 million after-tax gain on the sale of Securities America. Operating earnings exclude net realized gains or losses; the market impact on variable annuity guaranteed living benefits, net of hedges, DSIC and DAC amortization; integration and restructuring charges; income (loss) of discontinued operations; and the impact of consolidating CIEs. Operating earnings increased $44 million, or 4%, to $1.2 billion for the year ended December 31, 2011 compared to $1.2 billion for the prior year reflecting higher revenues from business growth and an additional four months of Columbia Management results, partially offset by the impact of updating valuation assumptions and models, the market impacts on DAC and DSIC amortization and the negative impact of the low interest rate environment. The market impact on DAC and DSIC amortization was a $17 million pretax charge for the year ended December 31, 2011 compared to a $34 million pretax benefit for the prior year.

Operating earnings will continue to be negatively impacted by the ongoing low interest rate environment in 2012. In addition to continuing spread compression in our interest sensitive product lines throughout the year, there is also the potential for interest rate related impacts to DAC and DSIC amortization and the level of reserves as a result of our ongoing review of various actuarial related assumptions, which could be material.

The total pretax impacts on our revenues and expenses for 2011 attributable to the review of valuation assumptions and models on an operating basis were as follows:

Segment Pretax Benefit (Charge)	Other Revenues			Benefits, Claims, Losses and Settlement Expenses		Amortization of DAC			Total
	(in millions)
Valuation assumptions and model changes:
Annuities	$	—		$	40	$	(65	)	$	(25	)
Protection		(20	)		4		2			(14	)
Total	$	(20	)	$	44	$	(63	)	$	(39	)

         54

The total pretax impacts on our revenues and expenses for 2010 attributable to the review of valuation assumptions and models on an operating basis were as follows:

Segment Pretax Benefit (Charge)	Other Revenues			Benefits, Claims, Losses and Settlement Expenses			Amortization of DAC		Total
	(in millions)
Valuation assumptions and model changes:
Annuities	$	—		$	(256	)	$	353	$	97
Protection		(20	)		(44	)		22		(42	)
Total	$	(20	)	$	(300	)	$	375	$	55

Net Revenues

Net revenues increased $680 million, or 7%, to $10.2 billion for the year ended December 31, 2011 compared to $9.5 billion for the prior year. Operating net revenues exclude net realized gains or losses and revenues or losses of the CIEs and include the fees we earn from services provided to the CIEs. Operating net revenues increased $933 million, or 10%, to $10.1 billion for the year ended December 31, 2011 compared to $9.1 billion for the prior year driven by growth in asset-based fees from net inflows in wrap account assets, the Columbia Management Acquisition and increased client activity.

Management and financial advice fees increased $753 million, or 20%, to $4.5 billion for the year ended December 31, 2011 compared to $3.8 billion for the prior year. Operating management and financial advice fees include the fees we earn from services provided to the CIEs. Operating management and financial advice fees increased $764 million, or 20%, to $4.6 billion for the year ended December 31, 2011 compared to $3.8 billion for the prior year primarily due to an additional four months of business resulting from the Columbia Management Acquisition, as well as higher wrap account fees and variable annuity fees. Wrap account assets increased $5.9 billion, or 6%, to $103.4 billion at December 31, 2011 compared to the prior year due to net inflows. Average variable annuities contract accumulation values increased $6.4 billion, or 12%, from the prior year due to higher average equity market levels, as well as net inflows.

Distribution fees increased $126 million, or 9%, to $1.6 billion for the year ended December 31, 2011 compared to $1.4 billion for the prior year primarily due to higher asset-based fees driven by the Columbia Management Acquisition and net inflows in wrap account assets, as well as increased client activity.

Net investment income decreased $263 million, or 11%, to $2.0 billion for the year ended December 31, 2011 compared to $2.3 billion for the prior year. Net investment income for the year ended December 31, 2011 included a $91 million gain for changes in the assets and liabilities of CIEs, primarily debt and underlying syndicated loans, compared to a $275 million gain in the prior year. Operating net investment income excludes net realized gains or losses and changes in the assets and liabilities of CIEs. Operating net investment income decreased $52 million, or 3%, to $1.9 billion for the year ended December 31, 2011 compared to $2.0 billion for the prior year primarily due to a decrease in investment income on fixed maturity securities driven by lower invested assets and lower interest rates. The decrease in invested assets compared to the prior year resulted from net outflows in certificates driven by the low interest rate environment and lower investments in annuity general account assets due to the implementation of changes to the Portfolio Navigator program in the second quarter of 2010 and lower interest sensitive fixed annuity account balances. These negative impacts were partially offset by $43 million of additional bond discount accretion investment income related to prior periods resulting from revisions to the accounting classification of certain structured securities in the third quarter of 2011.

Premiums increased $41 million, or 3%, to $1.2 billion for the year ended December 31, 2011 compared to $1.2 billion for the prior year primarily due to growth in Auto and Home premiums driven by higher volumes, as well as higher sales of immediate annuities with life contingencies. Auto and Home policy counts increased 7% period-over-period.

Other revenues remained flat at $863 million for the year ended December 31, 2011 compared to the prior year. Operating other revenues exclude revenues of the CIEs. Operating other revenues increased $31 million, or 4%, to $769 million for the year ended December 31, 2011 compared to $738 million for the prior year due to higher fees from variable annuity guarantees driven by higher in force amounts. During the second quarter of 2011, we reclassified from accumulated other comprehensive income into earnings a $27 million gain on an interest rate hedge put in place in anticipation of issuing debt between December 2010 and June 2011. Operating other revenues for the year ended December 31, 2010 included a $25 million benefit from payments related to the Reserve Funds matter in the first quarter of 2010.

Banking and deposit interest expense decreased $23 million, or 33%, to $47 million for the year ended December 31, 2011 compared to $70 million for the prior year primarily due to lower certificate balances, as well as a decrease in crediting rates on certificate products.

55         

Expenses

Total expenses increased $929 million, or 12%, to $8.8 billion for the year ended December 31, 2011 compared to $7.9 billion for the prior year. Operating expenses exclude the market impact on variable annuity guaranteed living benefits, net of hedges, DSIC and DAC amortization; integration and restructuring charges; and expenses of the CIEs. Operating expenses increased $868 million, or 12%, to $8.4 billion for the year ended December 31, 2011 compared to $7.5 billion for the prior year primarily due to the impact of updating valuation assumptions and models, the market impact on DAC and DSIC amortization, and increases in distribution expenses and general and administrative expense.

Distribution expenses increased $432 million, or 21%, to $2.5 billion for the year ended December 31, 2011 compared to $2.1 billion for the prior year as a result of the Columbia Management Acquisition, as well as higher advisor compensation from business growth.

Interest credited to fixed accounts decreased $56 million, or 6%, to $853 million for the year ended December 31, 2011 compared to $909 million for the prior year driven by lower average variable annuities fixed sub-account balances and a lower average crediting rate on interest sensitive fixed annuities, as well as lower average fixed annuity account balances. Average variable annuities fixed sub-account balances decreased $580 million, or 11%, to $4.8 billion for the year ended December 31, 2011 compared to the prior year primarily due to the implementation of changes to the Portfolio Navigator program in the second quarter of 2010. The average fixed annuity crediting rate excluding capitalized interest decreased to 3.7% for the year ended December 31, 2011 compared to 3.8% for the prior year. Average fixed annuities contract accumulation values decreased $265 million, or 2%, to $14.3 billion for the year ended December 31, 2011 compared to the prior year due to outflows.

Benefits, claims, losses and settlement expenses decreased $193 million, or 11%, to $1.6 billion for the year ended December 31, 2011 compared to $1.8 billion for the prior year. Operating benefits, claims, losses and settlement expenses, which exclude the market impact on variable annuity guaranteed living benefits, net of hedges and DSIC amortization, decreased $251 million, or 14%, to $1.5 billion for the year ended December 31, 2011 compared to $1.7 billion for the prior year. Operating benefits, claims, losses and settlement expenses for the year ended December 31, 2011 included a benefit of $44 million from updating valuation assumptions and models compared to an expense of $300 million in the prior year. Benefits, claims, losses and settlement expenses related to our Auto and Home business increased from the prior year primarily due to $45 million of catastrophe losses in 2011 compared to $29 million in 2010, as well as higher auto liability reserves. Benefits, claims, losses and settlement expenses related to our immediate annuities with life contingencies increased from the prior year due to an unfavorable change in reserves primarily driven by higher premiums. In addition, benefits, claims, losses and settlement expenses increased as a result of higher UL claims and an increase in ongoing reserve levels for UL products with secondary guarantees compared to the prior year. The market impact to DSIC was an expense of $2 million in 2011 compared to a benefit of $3 million in the prior year. Benefits, claims, losses and settlement expenses for the prior year included a $21 million expense, net of DSIC, as a result of the implementation of changes to the Portfolio Navigator program.

Amortization of DAC increased $491 million to $618 million for the year ended December 31, 2011 compared to $127 million for the prior year. Operating amortization of DAC, which excludes the DAC offset to the market impact on variable annuity guaranteed living benefits, increased $515 million to $626 million for the year ended December 31, 2011 compared to $111 million for the prior year primarily due to the impact of updating valuation assumptions and models, as well as the market impact on amortization of DAC. Operating amortization of DAC in 2011 included an expense of $63 million from updating valuation assumptions and models compared to a benefit of $375 million in the prior year. The market impact on amortization of DAC was an expense of $15 million in 2011 compared to a benefit of $31 million in the prior year. Amortization of DAC for the year ended December 31, 2010 included a benefit of $19 million as a result of the implementation of changes to the Portfolio Navigator program.

Interest and debt expense increased $27 million, or 9%, to $317 million for the year ended December 31, 2011 compared to $290 million for the prior year. Operating interest and debt expense, which excludes interest expense on CIE debt, decreased $13 million, or 12%, to $96 million for the year ended December 31, 2011 compared to $109 million in the prior year primarily due to lower average debt balances.

General and administrative expense increased $228 million, or 8%, to $3.0 billion for the year ended December 31, 2011 compared to $2.7 billion for the prior year. Operating general and administrative expense excludes integration and restructuring charges and expenses of the CIEs. Integration and restructuring charges decreased $16 million to $95 million for the year ended December 31, 2011 compared to $111 million for the prior year. Operating general and administrative expense increased $241 million, or 9%, to $2.8 billion for the year ended December 31, 2011 compared to $2.6 billion for the prior year primarily reflecting an additional four months of ongoing expenses from the Columbia Management Acquisition, as well as higher compensation expense and an increase in advertising and investment spending compared to the prior year.

         56

Income Taxes

Our effective tax rate on income from continuing operations including income attributable to noncontrolling interests was 25.6% for the year ended December 31, 2011, compared to 21.5% for the prior year. Our effective tax rate on income from continuing operations excluding income attributable to noncontrolling interests was 23.8% for the years ended December 31, 2011 and 2010. Our operating effective tax rate was 24.8% for the year ended December 31, 2011, compared to 24.5% for the prior year.

It is possible there will be corporate tax reform in the next few years. While impossible to predict, corporate tax reform is likely to include a reduction in the corporate tax rate coupled with reductions in tax preferred items. Potential tax reform may also affect the U.S. tax rules regarding international operations. Any changes could have a material impact on our income tax expense and deferred tax balances.

The following table presents a reconciliation of our operating effective tax rate:

	Years Ended December 31,
	2011						2010
	GAAP			Operating			GAAP			Operating
	(in millions)
Income from continuing operations before income tax provision	$	1,385		$	1,639		$	1,634		$	1,574
Less: Pretax income (loss) attributable to noncontrolling interests		(106	)		—			163			—
Income from continuing operations before income tax provision excluding CIEs	$	1,491		$	1,639		$	1,471		$	1,574
Income tax provision from continuing operations	$	355		$	407		$	350		$	386
Effective tax rate		25.6	%		24.8	%		21.5	%		24.5	%
Effective tax rate excluding noncontrolling interests		23.8	%		24.8	%		23.8	%		24.5	%

57         

Results of Operations by Segment

Year Ended December 31, 2011 Compared to Year Ended December 31, 2010

The following table presents summary financial information by segment:

	Years Ended December 31,
	2011									2010
	GAAP			Less: Adjustments(1)			Operating			GAAP			Less: Adjustments(1)			Operating
	(in millions)
Advice & Wealth Management
Net revenues	$	3,708		$	(5	)	$	3,713		$	3,343		$	1		$	3,342
Expenses		3,307			—			3,307			3,027			7			3,020
Pretax income	$	401		$	(5	)	$	406		$	316		$	(6	)	$	322
Asset Management
Net revenues	$	2,900		$	3		$	2,897		$	2,368		$	3		$	2,365
Expenses		2,464			95			2,369			2,050			95			1,955
Pretax income	$	436		$	(92	)	$	528		$	318		$	(92	)	$	410
Annuities
Net revenues	$	2,631		$	1		$	2,630		$	2,500		$	9		$	2,491
Expenses		2,110			59			2,051			1,852			25			1,827
Pretax income	$	521		$	(58	)	$	579		$	648		$	(16	)	$	664
Protection
Net revenues	$	2,072		$	3		$	2,069		$	2,047		$	1		$	2,046
Expenses		1,702			—			1,702			1,644			—			1,644
Pretax income	$	370		$	3		$	367		$	403		$	1		$	402
Corporate & Other
Net revenues	$	192		$	189		$	3		$	423		$	419		$	4
Expenses		535			291			244			474			246			228
Pretax loss		(343	)		(102	)		(241	)		(51	)		173			(224	)
Less: Pretax income (loss) attributable to noncontrolling interests		(106	)		(106	)		—			163			163			—
Pretax loss attributable to Ameriprise Financial	$	(237	)	$	4		$	(241	)	$	(214	)	$	10		$	(224	)
Eliminations
Net revenues	$	(1,311	)	$	(49	)	$	(1,262	)	$	(1,169	)	$	(38	)	$	(1,131	)
Expenses		(1,311	)		(49	)		(1,262	)		(1,169	)		(38	)		(1,131	)
Pretax income	$	—		$	—		$	—		$	—		$	—		$	—

(1)

Includes the elimination of management fees we earn for services provided to the CIEs and the related expense; revenues and expenses of the CIEs; net realized gains or losses; the market impact on variable annuity living benefits, net of hedges, DSIC and DAC amortization; and integration and restructuring charges.

Advice & Wealth Management

Our Advice & Wealth Management segment provides financial planning and advice, as well as brokerage and banking services, primarily to retail clients through our affiliated advisors. Our affiliated advisors have access to a diversified selection of both affiliated and non-affiliated products to help clients meet their financial needs. A significant portion of revenues in this segment is fee-based, driven by the level of client assets, which is impacted by both market movements and net asset flows. We also earn net investment income on invested assets primarily from certificate and banking products. This segment earns revenues (distribution fees) for distributing non-affiliated products and earns intersegment revenues (distribution fees) for distributing our affiliated products and services to our retail clients. Intersegment expenses for this segment include expenses for investment management services provided by the Asset Management segment.

In addition to purchases of affiliated and non-affiliated mutual funds and other securities on a stand-alone basis, clients may purchase mutual funds, among other securities, in connection with investment advisory fee-based "wrap account" programs or services, and pay fees based on a percentage of their assets.

         58

The following table presents the changes in wrap account assets for the years ended December 31:

	2011			2010
	(in billions)
Beginning balance	$	97.5		$	81.3
Net flows		7.3			7.6
Market appreciation (depreciation) and other		(1.4	)		8.6
Ending balance	$	103.4		$	97.5

Wrap account assets increased $5.9 billion, or 6%, to $103.4 billion compared to the prior year due to net inflows.

Management believes that operating measures, which exclude net realized gains or losses and integration and restructuring charges for our Advice & Wealth Management segment, best reflect the underlying performance of our core operations and facilitate a more meaningful trend analysis. See our discussion on the use of these non-GAAP measures in the Overview section above.

The following table presents the results of operations of our Advice & Wealth Management segment:

	Years Ended December 31,
			2011							2010
	GAAP		Less: Adjustments(1)			Operating		GAAP		Less: Adjustments(1)			Operating		Operating Change
	(in millions)
Revenues
Management and financial advice fees	$	1,590	$	—		$	1,590	$	1,370	$	—		$	1,370	$	220		16	%
Distribution fees		1,849		—			1,849		1,696		—			1,696		153		9
Net investment income		256		(5	)		261		273		1			272		(11	)	(4	)
Other revenues		61		—			61		71		—			71		(10	)	(14	)
Total revenues		3,756		(5	)		3,761		3,410		1			3,409		352		10
Banking and deposit interest expense		48		—			48		67		—			67		(19	)	(28	)
Total net revenues		3,708		(5	)		3,713		3,343		1			3,342		371		11
Expenses
Distribution expenses		2,203		—			2,203		1,954		—			1,954		249		13
General and administrative expense		1,104		—			1,104		1,073		7			1,066		38		4
Total expenses		3,307		—			3,307		3,027		7			3,020		287		10
Pretax income	$	401	$	(5	)	$	406	$	316	$	(6	)	$	322	$	84		26	%

(1)

Adjustments include net realized gains or losses and integration and restructuring charges.

Our Advice & Wealth Management segment pretax income increased $85 million, or 27%, to $401 million for the year ended December 31, 2011 compared to $316 million for the prior year. Our Advice & Wealth Management segment pretax operating income, which excludes net realized gains or losses and integration and restructuring charges, increased $84 million, or 26%, to $406 million for the year ended December 31, 2011 compared to $322 million for the prior year due to improved advisor productivity and new client flows. Pretax margin was 10.8% for the year ended December 31, 2011 compared to 9.5% for the prior year. Pretax operating margin was 10.9% for the year ended December 31, 2011 compared to 9.6% for the prior year.

Net Revenues

Net revenues increased $365 million, or 11%, to $3.7 billion for the year ended December 31, 2011 compared to $3.3 billion for the prior year. Operating net revenues exclude net realized gains or losses. Operating net revenues increased $371 million, or 11%, to $3.7 billion for the year ended December 31, 2011 compared to $3.3 billion for the prior year driven by higher management and distribution fees from growth in assets under management and increased client activity.

Management and financial advice fees increased $220 million, or 16%, to $1.6 billion for the year ended December 31, 2011 compared to $1.4 billion for the prior year driven by growth in assets under management. Wrap account assets increased $5.9 billion, or 6%, to $103.4 billion compared to the prior year due to net inflows.

Distribution fees increased $153 million, or 9%, to $1.8 billion for the year ended December 31, 2011 compared to $1.7 billion for the prior year primarily driven by growth in assets under management and increased client activity.

59         

Net investment income decreased $17 million, or 6%, to $256 million for the year ended December 31, 2011 compared to $273 million for the prior year. Operating net investment income, which excludes net realized gains or losses, decreased $11 million, or 4%, to $261 million for the year ended December 31, 2011 compared to $272 million for the prior year due to a decrease in investment income on fixed maturity securities driven by lower invested assets resulting from net outflows in certificates driven by the low interest rate environment, partially offset by higher banking invested asset balances and $6 million of additional bond discount accretion investment income related to prior periods resulting from revisions to the accounting classification of certain structured securities in the third quarter of 2011.

Banking and deposit interest expense decreased $19 million, or 28%, to $48 million for the year ended December 31, 2011 compared to $67 million for the prior year primarily due to lower certificate balances, as well as a decrease in crediting rates on certificate products.

Expenses

Total expenses increased $280 million, or 9%, to $3.3 billion for the year ended December 31, 2011 compared to $3.0 billion for the prior year. Operating expenses, which exclude integration and restructuring charges, increased $287 million, or 10%, to $3.3 billion for the year ended December 31, 2011 compared to $3.0 billion for the prior year primarily due to an increase in distribution expenses.

Distribution expenses increased $249 million, or 13%, to $2.2 billion for the year ended December 31, 2011 compared to $2.0 billion for the prior year primarily due to higher advisor compensation from business growth.

General and administrative expense increased $31 million, or 3%, to $1.1 billion for the year ended December 31, 2011 compared to $1.1 billion for the prior year. Operating general and administrative expense, which excludes integration and restructuring charges, increased $38 million, or 4%, to $1.1 billion for the year ended December 31, 2011 compared to $1.1 billion for the prior year primarily due to an increase in investment spending, including costs associated with our new brokerage platform.

Asset Management

Our Asset Management segment provides investment advice and investment products to retail and institutional clients. We provide our products and services on a global scale through two complementary asset management businesses: Columbia Management Investment Advisers, LLC ("Columbia" or "Columbia Management") and Threadneedle Asset Management Holdings Sàrl ("Threadneedle"). Columbia Management predominantly provides U.S. domestic products and services and Threadneedle predominantly provides international investment products and services. We provide clients with Columbia retail products through unaffiliated third party financial institutions and through our Advice & Wealth Management segment. We provide institutional products and services through our institutional sales force. We provide Threadneedle retail products primarily through third parties. Retail products include mutual funds and variable product funds underlying insurance and annuity separate accounts. Institutional asset management services are designed to meet specific client objectives and may involve a range of products including those that focus on traditional asset classes, separately managed accounts, individually managed accounts, collateralized loan obligations, hedge funds, collective funds and property funds. Revenues in this segment are primarily earned as fees based on managed asset balances, which are impacted by both market movements and net asset flows. In addition to the products and services provided to third party clients, management teams serving our Asset Management segment provide all intercompany asset management services. The fees for such services are reflected within the Asset Management segment results through intersegment transfer pricing. Intersegment expenses for this segment include distribution expenses for services provided by our Advice & Wealth Management, Annuities and Protection segments.

On April 30, 2010, we completed the acquisition of the long-term asset management business of the Columbia Management Group from Bank of America. The acquisition significantly enhanced the capabilities of the Asset Management segment by increasing its scale, broadening its retail and institutional distribution capabilities and strengthening and diversifying its lineup of retail and institutional products. The integration of the Columbia Management business, which is expected to be completed in 2012, has involved organizational changes to our portfolio management and analytical teams and to our operational, compliance, sales and marketing support staffs. This integration has also involved the streamlining of our U.S. domestic product offerings. As a result of the integration, we combined RiverSource Investments, our legacy U.S. asset management business, with Columbia Management, under the Columbia brand. Total U.S. retail assets and number of funds under the Columbia brand as of December 31, 2011 were $204.8 billion and 205 funds, respectively.

Threadneedle remains our primary international investment management platform. Threadneedle manages seven OEICs and one Societe d'Investissement A Capital Variable ("SICAV") offering. The seven OEICs are Threadneedle Investment Funds ICVC ("TIF"), Threadneedle Specialist Investment Funds ICVC ("TSIF"), Threadneedle Focus Investment Funds ("TFIF"), Threadneedle Advantage Portfolio Funds ("TPAF"), Threadneedle Investment Funds ICVC II ("TIF II"), Threadneedle Investment Funds ICVC III ("TIF III") and Threadneedle Investment Funds ICVC IV ("TIF IV"). TIF, TSIF, TFIF, TPAF, TIF II, TIF

         60

III and TIF IV are structured as umbrella companies with a total of 72 (33, 14, 2, 2, 6, 9, and 6, respectively) sub funds covering the world's bond and equity markets. The SICAV is the Threadneedle (Lux) SICAV ("T(Lux)"). T(Lux) is structured as an umbrella company with a total of 30 sub funds covering the world's bond, commodities and equity markets. In addition, Threadneedle manages 13 unit trusts, 10 of which invest into the OEICs, 7 property unit trusts and 1 property fund of funds.

The following tables present the mutual fund performance of our retail Columbia and Threadneedle funds as of December 31, 2011:

Columbia

Mutual Fund Rankings in top 2 Lipper Quartiles

Domestic Equity	Equal weighted	1 year	37	%
		3 year	48	%
		5 year	61	%
	Asset weighted	1 year	38	%
		3 year	39	%
		5 year	58	%
International Equity	Equal weighted	1 year	61	%
		3 year	65	%
		5 year	50	%
	Asset weighted	1 year	71	%
		3 year	77	%
		5 year	65	%
Taxable Fixed Income	Equal weighted	1 year	85	%
		3 year	55	%
		5 year	68	%
	Asset weighted	1 year	93	%
		3 year	64	%
		5 year	73	%
Tax Exempt Fixed Income	Equal weighted	1 year	95	%
		3 year	85	%
		5 year	95	%
	Asset weighted	1 year	85	%
		3 year	84	%
		5 year	99	%
Asset Allocation Funds	Equal weighted	1 year	86	%
		3 year	48	%
		5 year	57	%
	Asset weighted	1 year	85	%
		3 year	79	%
		5 year	88	%
Number of funds with 4 or 5 Morningstar star ratings		Overall	52
		3 year	46
		5 year	49
Percent of funds with 4 or 5 Morningstar star ratings		Overall	44	%
		3 year	39	%
		5 year	44	%
Percent of assets with 4 or 5 Morningstar star ratings		Overall	59	%
		3 year	40	%
		5 year	42	%

Mutual fund performance rankings are based on the performance of Class Z fund shares for Columbia branded mutual funds. In instances where a fund's Class Z shares do not have a full one, three or five year track record, performance for an older share class of the same fund, typically Class A shares, is utilized for the period before Class Z shares were launched. No adjustments to the historical track records are made to account for differences in fund expenses between share classes of a fund.

Equal Weighted Rankings in Top 2 Quartiles: Counts the number of funds with above median ranking divided by the total number of funds. Asset size is not a factor.

Asset Weighted Rankings in Top 2 Quartiles: Sums the total assets of the funds with above median ranking (using Class Z and appended Class Z) divided by total assets of all funds. Funds with more assets will receive a greater share of the total percentage above or below median.

Aggregated data includes all Columbia branded mutual funds.

61         

Threadneedle

Retail Fund Rankings in Top 2 Morningstar Quartiles or Above Index Benchmark

Equity	Equal weighted	1 year	65	%
		3 year	72	%
		5 year	86	%
	Asset weighted	1 year	68	%
		3 year	76	%
		5 year	86	%
Fixed Income	Equal weighted	1 year	69	%
		3 year	77	%
		5 year	82	%
	Asset weighted	1 year	69	%
		3 year	75	%
		5 year	97	%
Allocation (Managed) Funds	Equal weighted	1 year	33	%
		3 year	67	%
		5 year	100	%
	Asset weighted	1 year	14	%
		3 year	49	%
		5 year	100	%

The performance of each fund is measured on a consistent basis against the most appropriate benchmark — a peer group of similar funds or an index.

Equal weighted: Counts the number of funds with above median ranking (if measured against peer group) or above index performance (if measured against an index) divided by the total number of funds. Asset size is not a factor.

Asset weighted: Sums the assets of the funds with above median ranking (if measured against peer group) or above index performance (if measured against an index) divided by the total sum of assets in the funds. Funds with more assets will receive a greater share of the total percentage above or below median or index.

Aggregated Allocation (Managed) Funds include funds that invest in other funds of the Threadneedle range including those funds that invest in both equity and fixed income.

Aggregated Threadneedle data includes funds on the Threadneedle platform sub-advised by Columbia as well as advisors not affiliated with Ameriprise Financial, Inc.

The following tables present the changes in Columbia and Threadneedle managed assets:

	January 1, 2011			Net Flows			Market Appreciation/ (Depreciation) & Other(1)			Foreign Exchange			December 31, 2011
	(in billions)
Columbia Managed Assets:
Retail Funds	$	218.5		$	(3.1	)	$	(10.6	)	$	—		$	204.8
Institutional Funds		127.2			(9.8	)		(4.1	)(2)		—			113.3
Alternative Funds		10.0			(1.8	)		(0.1	)		—			8.1
Less: Eliminations		(0.2	)		—			0.1			—			(0.1	)
Total Columbia Managed Assets		355.5			(14.7	)		(14.7	)		—			326.1
Threadneedle Managed Assets:
Retail Funds		33.4			0.8			(2.2	)		(0.2	)		31.8
Institutional Funds		70.9			10.0			0.1			(0.4	)		80.6
Alternative Funds		1.3			(0.2	)		0.1			—			1.2
Total Threadneedle Managed Assets		105.6			10.6			(2.0	)		(0.6	)		113.6
Less: Sub-Advised Eliminations		(4.3	)		(0.8	)		0.9			—			(4.2	)
Total Managed Assets	$	456.8		$	(4.9	)	$	(15.8	)	$	(0.6	)	$	435.5

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	January 1, 2010			Net Flows			Market Appreciation/ (Depreciation) & Other(1)			Foreign Exchange			December 31, 2010
	(in billions)
Columbia Managed Assets:(3)
Retail Funds	$	76.9		$	(5.2	)	$	146.8	(4)	$	—		$	218.5
Institutional Funds		62.3			(7.1	)		72.0	(5)		—			127.2
Alternative Funds		9.9			—			0.1			—			10.0
Less: Eliminations		(0.1	)		—			(0.1	)		—			(0.2	)
Total Columbia Managed Assets		149.0			(12.3	)		218.8			—			355.5
Threadneedle Managed Assets:
Retail Funds		29.1			1.9			3.5			(1.1	)		33.4
Institutional Funds		66.8			(2.2	)		8.7			(2.4	)		70.9
Alternative Funds		1.9			(0.2	)		(0.4	)		—			1.3
Total Threadneedle Managed Assets		97.8			(0.5	)		11.8			(3.5	)		105.6
Less: Sub-Advised Eliminations		(3.6	)		(0.1	)		(0.6	)		—			(4.3	)
Total Managed Assets	$	243.2		$	(12.9	)	$	230.0		$	(3.5	)	$	456.8

(1)

Distributions of Retail Funds are included in market appreciation/(depreciation) and other.

(2)

Included in Market appreciation/(depreciation) and other is ($4.7) billion due to the transfer of assets from Separately Managed Accounts (SMAs) to United Management Accounts (UMAs).

(3)

Prior to the Columbia Management Acquisition, the domestic managed assets of our Asset Management segment, which are now included in Columbia Managed Assets, were managed by RiverSource Investments.

(4)

Included in Market appreciation/(depreciation) and other is $118.1 billion due to the Columbia Management Acquisition, including $3 billion of assets that were transferred to RiverSource Sub-advised through the implementation of the Portfolio Navigator program, and an additional $13.1 billion of Portfolio Navigator related assets sub-advised by others.

(5)

Included in Market appreciation/(depreciation) and other is $68.4 billion due to the Columbia Management Acquisition.

Total segment assets under management declined $21.3 billion, or 5%, from a year ago to $435.5 billion as of December 31, 2011, driven by a decrease in Columbia managed assets, partially offset by an increase in Threadneedle managed assets. Columbia managed assets declined $29.4 billion, or 8%, from a year ago to $326.1 billion as of December 31, 2011, primarily due to net outflows, as well as market depreciation and other, including a $4.7 billion decrease due to a former parent related program sponsor that shifted assets from a traditional separately managed account platform to a model-delivery only unified managed account platform that utilizes Columbia models. While the assets are excluded from managed assets, the movement in assets was neutral to earnings. Columbia net outflows of $14.7 billion in 2011 included $9.0 billion of outflows of low basis point, former parent company assets. Threadneedle managed assets increased $8.0 billion, or 8%, from a year ago to $113.6 billion as of December 31, 2011 due to net inflows. Threadneedle net inflows of $10.6 billion in 2011 reflected approximately $14 billion from a strategic relationship with Liverpool Victoria to manage its insurance and pension fund portfolio.

Management believes that operating measures, which exclude net realized gains or losses and integration charges for our Asset Management segment, best reflect the underlying performance of our core operations and facilitate a more meaningful trend analysis. See our discussion on the use of these non-GAAP measures in the Overview section above.

63         

The following table presents the results of operations of our Asset Management segment:

	Years Ended December 31,
	2011							2010
	GAAP		Less: Adjustments(1)			Operating		GAAP		Less: Adjustments(1)			Operating		Operating Change
	(in millions)
Revenues
Management and financial advice fees	$	2,434	$	—		$	2,434	$	1,979	$	—		$	1,979	$	455		23	%
Distribution fees		450		—			450		358		—			358		92		26
Net investment income		14		3			11		17		3			14		(3	)	(21	)
Other revenues		5		—			5		15		—			15		(10	)	(67	)
Total revenues		2,903		3			2,900		2,369		3			2,366		534		23
Banking and deposit interest expense		3		—			3		1		—			1		2		NM
Total net revenues		2,900		3			2,897		2,368		3			2,365		532		22
Expenses
Distribution expenses		1,026		—			1,026		734		—			734		292		40
Amortization of deferred acquisition costs		19		—			19		20		—			20		(1	)	(5	)
General and administrative expense		1,419		95			1,324		1,296		95			1,201		123		10
Total expenses		2,464		95			2,369		2,050		95			1,955		414		21
Pretax income	$	436	$	(92	)	$	528	$	318	$	(92	)	$	410	$	118		29	%

NM Not Meaningful.

(1)

Adjustments include net realized gains or losses and integration charges.

Our Asset Management segment pretax income increased $118 million, or 37%, to $436 million for the year ended December 31, 2011 compared to $318 million for the prior year. Our Asset Management segment pretax operating income, which excludes net realized gains or losses and integration charges, increased $118 million, or 29%, to $528 million for the year ended December 31, 2011 compared to $410 million for the prior year. Earnings in 2011 reflected twelve months of Columbia Management earnings compared to eight months in the prior year, which impacted revenues and expenses. Pretax margin was 15.0% for the year ended December 31, 2011 compared to 13.4% for the prior year. Pretax operating margin was 18.2% for the year ended December 31, 2011 compared to 17.3% for the prior year.

Net Revenues

Net revenues increased $532 million, or 22%, to $2.9 billion for the year ended December 31, 2011 compared to $2.4 billion for the prior year. Operating net revenues, which exclude net realized gains or losses, increased $532 million, or 22%, to $2.9 billion for the year ended December 31, 2011 compared to $2.4 billion for the prior year driven by an increase in management and distribution fees.

Management and financial advice fees increased $455 million, or 23%, to $2.4 billion for the year ended December 31, 2011 compared to $2.0 billion for the prior year due to an additional four months of business resulting from the Columbia Management Acquisition, as well the impact of higher average equity market levels on assets, partially offset by net outflows and lower hedge fund performance fees.

Distribution fees increased $92 million, or 26%, to $450 million for the year ended December 31, 2011 compared to $358 million for the prior year driven by an additional four months of business resulting from the Columbia Management Acquisition, as well the impact of higher average equity market levels on assets, partially offset by net outflows.

Expenses

Total expenses increased $414 million, or 20%, to $2.5 billion for the year ended December 31, 2011 compared to $2.1 billion for the prior year. Operating expenses, which exclude integration charges, increased $414 million, or 21%, to $2.4 billion for the year ended December 31, 2011 compared to $2.0 billion for the prior year due to an increase in distribution expenses and general and administrative expense.

Distribution expenses increased $292 million, or 40%, to $1.0 billion for the year ended December 31, 2011 compared to $734 million for the prior year due to an additional four months of business resulting from the Columbia Management Acquisition, as well the impact of higher average equity market levels on assets, partially offset by net outflows.

General and administrative expense increased $123 million, or 9%, to $1.4 billion for the year ended December 31, 2011 compared to $1.3 billion for the prior year. Integration charges remained flat at $95 million for both 2011 and 2010.

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Operating general and administrative expense, which excludes integration charges, increased $123 million, or 10%, to $1.3 billion for the year ended December 31, 2011 compared to $1.2 billion for the prior year reflecting an additional four months of ongoing expenses of Columbia Management, as well as higher investment spending compared to the prior year, partially offset by lower hedge fund performance compensation.

Annuities

Our Annuities segment provides variable and fixed annuity products of RiverSource Life companies to retail clients. Prior to the fourth quarter of 2010, we provided our variable annuity products through our affiliated advisors as well as unaffiliated advisors through third-party distribution. During the fourth quarter of 2010, we discontinued new sales of our variable annuities in non-Ameriprise channels to further strengthen the risk and return characteristics of the business. We provide our fixed annuity products through affiliated advisors as well as unaffiliated advisors through third-party distribution. Revenues for our variable annuity products are primarily earned as fees based on underlying account balances, which are impacted by both market movements and net asset flows. Revenues for our fixed annuity products are primarily earned as net investment income on invested assets supporting fixed account balances, with profitability significantly impacted by the spread between net investment income earned and interest credited on the fixed account balances. We also earn net investment income on invested assets supporting reserves for immediate annuities and for certain guaranteed benefits offered with variable annuities and on capital supporting the business. Intersegment revenues for this segment reflect fees paid by the Asset Management segment for marketing support and other services provided in connection with the availability of RiverSource Variable Series Trust, Columbia Funds Variable Insurance Trust, Columbia Funds Variable Insurance Trust I and Wanger Advisors Trust funds under the variable annuity contracts. Intersegment expenses for this segment include distribution expenses for services provided by the Advice & Wealth Management segment, as well as expenses for investment management services provided by the Asset Management segment.

Management believes that operating measures, which exclude net realized gains or losses and the market impact on variable annuity guaranteed living benefits, net of hedges, DSIC and DAC amortization, for our Annuities segment, best reflect the underlying performance of our core operations and facilitate a more meaningful trend analysis. See our discussion on the use of these non-GAAP measures in the Overview section above.

The following table presents the results of operations of our Annuities segment:

	Years Ended December 31,
	2011							2010
	GAAP		Less: Adjustments(1)			Operating		GAAP			Less: Adjustments(1)			Operating			Operating Change
	(in millions)
Revenues
Management and financial advice fees	$	622	$	—		$	622	$	546		$	—		$	546		$	76		14	%
Distribution fees		312		—			312		284			—			284			28		10
Net investment income		1,280		1			1,279		1,318			9			1,309			(30	)	(2	)
Premiums		161		—			161		150			—			150			11		7
Other revenues		256		—			256		202			—			202			54		27
Total revenues		2,631		1			2,630		2,500			9			2,491			139		6
Banking and deposit interest expense		—		—			—		—			—			—			—		—
Total net revenues		2,631		1			2,630		2,500			9			2,491			139		6
Expenses
Distribution expenses		315		—			315		268			—			268			47		18
Interest credited to fixed accounts		711		—			711		762			—			762			(51	)	(7	)
Benefits, claims, losses and settlement expenses		472		67			405		691			9			682			(277	)	(41	)
Amortization of deferred acquisition costs		398		(8	)		406		(76	)		16			(92	)		498		NM
Interest and debt expense		1		—			1		2			—			2			(1	)	(50	)
General and administrative expense		213		—			213		205			—			205			8		4
Total expenses		2,110		59			2,051		1,852			25			1,827			224		12
Pretax income	$	521	$	(58	)	$	579	$	648		$	(16	)	$	664		$	(85	)	(13	)%

NM Not Meaningful.

(1)

Adjustments include net realized gains or losses and the market impact on variable annuity living benefits, net of hedges, DSIC and DAC amortization.

Our Annuities segment pretax income decreased $127 million, or 20%, to $521 million for the year ended December 31, 2011 compared to $648 million for the prior year. Our Annuities segment pretax operating income, which excludes net realized gains or losses and the market impact on variable annuity guaranteed living benefits, net of hedges, DSIC and DAC amortization, decreased $85 million, or 13%, to $579 million for the year ended December 31, 2011 compared to

65         

$664 million for the prior year primarily due to the impact of updating valuation assumptions and models and the market impact on DAC and DSIC amortization.

Net Revenues

Net revenues increased $131 million, or 5%, to $2.6 billion for the year ended December 31, 2011 compared to $2.5 billion for the prior year. Operating net revenues, which exclude net realized gains or losses, increased $139 million, or 6%, to $2.6 billion for the year ended December 31, 2011 compared to $2.5 billion for the prior year reflecting higher fee revenue from increased variable annuity separate account balances and higher fees from variable annuity guarantees.

Management and financial advice fees increased $76 million, or 14%, to $622 million for the year ended December 31, 2011 compared to $546 million for the prior year due to higher fees on variable annuities driven by higher separate account balances. Average variable annuities contract accumulation values increased $6.4 billion, or 12%, from the prior year due to higher average equity market levels, as well as net inflows. Variable annuity net inflows for the year ended December 31, 2011 included $1.6 billion of net inflows in the Ameriprise channel, partially offset by net outflows from the closed book of variable annuities sold through third-party channels.

Distribution fees increased $28 million, or 10%, to $312 million for the year ended December 31, 2011 compared to $284 million for the prior year primarily due to higher fees on variable annuities driven by higher average separate account balances.

Net investment income decreased $38 million, or 3%, to $1.3 billion for the year ended December 31, 2011 compared to $1.3 billion for the prior year. Operating net investment income, which excludes net realized gains or losses, decreased $30 million, or 2%, to $1.3 billion for the year ended December 31, 2011 compared to $1.3 billion for the prior year due to a decrease in investment income on fixed maturity securities reflecting lower invested assets and lower interest rates, partially offset by $37 million of additional bond discount accretion investment income related to prior periods resulting from revisions to the accounting classification of certain structured securities in the third quarter of 2011. The decrease in invested assets was driven by lower general account assets due to the implementation of changes to the Portfolio Navigator program in the second quarter of 2010 and lower interest sensitive fixed annuity account balances.

Premiums increased $11 million, or 7%, to $161 million for the year ended December 31, 2011 compared to $150 million for the prior year due to higher sales of immediate annuities with life contingencies.

Other revenues increased $54 million, or 27%, to $256 million for the year ended December 31, 2011 compared to $202 million for the prior year due to higher fees from variable annuity guarantees driven by higher in force amounts.

Expenses

Total expenses increased $258 million, or 14%, to $2.1 billion for the year ended December 31, 2011 compared to $1.9 billion for the prior year. Operating expenses, which exclude the market impact on variable annuity guaranteed living benefits, net of hedges, DSIC and DAC amortization, increased $224 million, or 12%, to $2.1 billion for the year ended December 31, 2011 compared to $1.8 billion for the prior year primarily due to the impact of updating valuation assumptions and models and the market impact on DAC and DSIC amortization.

Distribution expenses increased $47 million, or 18%, to $315 million for the year ended December 31, 2011 compared to $268 million for the prior year primarily due to higher variable annuity compensation due to increased sales.

Interest credited to fixed accounts decreased $51 million, or 7%, to $711 million for the year ended December 31, 2011 compared to $762 million for the prior year driven by lower average variable annuities fixed sub-account balances and a lower average crediting rate on interest sensitive fixed annuities, as well as lower average fixed annuity account balances. Average variable annuities fixed sub-account balances decreased $580 million, or 11%, to $4.8 billion for the year ended December 31, 2011 compared to the prior year primarily due to the implementation of changes to the Portfolio Navigator program in the second quarter of 2010. The average fixed annuity crediting rate excluding capitalized interest decreased to 3.7% for the year ended December 31, 2011 compared to 3.8% for the prior year. Average fixed annuities contract accumulation values decreased $265 million, or 2%, to $14.3 billion for the year ended December 31, 2011 compared to the prior year due to outflows. Fixed annuities remained in net outflows due to low client demand given current interest rates.

Benefits, claims, losses and settlement expenses decreased $219 million, or 32%, to $472 million for the year ended December 31, 2011 compared to $691 million for the prior year. Operating benefits, claims, losses and settlement expenses, which exclude the market impact on variable annuity guaranteed living benefits, net of hedges and DSIC amortization, decreased $277 million, or 41%, to $405 million for the year ended December 31, 2011 compared to $682 million for the prior year. Operating benefits, claims, losses and settlement expenses in 2011 included a benefit of $40 million from updating valuation assumptions and models compared to an expense of $256 million in the prior year. Benefits, claims, losses and settlement expenses related to our immediate annuities with life contingencies increased from

         66

the prior year due to an unfavorable change in reserves primarily driven by higher premiums. The market impact to DSIC was an expense of $2 million in 2011 compared to a benefit of $3 million in the prior year. Benefits, claims, losses and settlement expenses for the prior year included a $21 million expense, net of DSIC, as a result of the implementation of changes to the Portfolio Navigator program.

Amortization of DAC increased $474 million to $398 million for the year ended December 31, 2011 compared to a benefit of $76 million for the prior year. Operating amortization of DAC, which excludes the DAC offset to the market impact on variable annuity guaranteed living benefits, increased $498 million to $406 million for the year ended December 31, 2011 compared to a benefit of $92 million for the prior year primarily due to the impact of updating valuation assumptions and models, as well as the market impact on amortization of DAC. Operating amortization of DAC in 2011 included an expense of $65 million from updating valuation assumptions and models compared to a benefit of $353 million in the prior year. The market impact on amortization of DAC was an expense of $13 million in 2011 compared to a benefit of $21 million in the prior year. Amortization of DAC in 2010 included a benefit of $13 million as a result of the implementation of changes to the Portfolio Navigator program.

Protection

Our Protection segment offers a variety of protection products to address the protection and risk management needs of our retail clients including life, disability income and property-casualty insurance. Life and disability income products are primarily provided through affiliated advisors. Our property-casualty products are provided direct, primarily through affinity relationships. We issue insurance policies through our life insurance subsidiaries and the property casualty companies. The primary sources of revenues for this segment are premiums, fees, and charges we receive to assume insurance-related risk. We earn net investment income on invested assets supporting insurance reserves and capital supporting the business. We also receive fees based on the level of assets supporting VUL separate account balances. This segment earns intersegment revenues from fees paid by the Asset Management segment for marketing support and other services provided in connection with the availability of RiverSource Variable Series Trust, Columbia Funds Variable Insurance Trust, Columbia Funds Variable Insurance Trust I and Wanger Advisors Trust funds under the VUL contracts. Intersegment expenses for this segment include distribution expenses for services provided by the Advice & Wealth Management segment, as well as expenses for investment management services provided by the Asset Management segment.

Management believes that operating measures, which exclude net realized gains or losses for our Protection segment, best reflect the underlying performance of our core operations and facilitate a more meaningful trend analysis. See our discussion on the use of these non-GAAP measures in the Overview section above.

The following table presents the results of operations of our Protection segment:

	Years Ended December 31,
	2011						2010
	GAAP		Less: Adjustments(1)		Operating		GAAP		Less: Adjustments(1)		Operating		Operating Change
	(in millions)
Revenues
Management and financial advice fees	$	56	$	—	$	56	$	54	$	—	$	54	$	2		4	%
Distribution fees		95		—		95		96		—		96		(1	)	(1	)
Net investment income		429		3		426		429		1		428		(2	)	—
Premiums		1,076		—		1,076		1,047		—		1,047		29		3
Other revenues		417		—		417		422		—		422		(5	)	(1	)
Total revenues		2,073		3		2,070		2,048		1		2,047		23		1
Banking and deposit interest expense		1		—		1		1		—		1		—		—
Total net revenues		2,072		3		2,069		2,047		1		2,046		23		1
Expenses
Distribution expenses		32		—		32		32		—		32		—		—
Interest credited to fixed accounts		142		—		142		147		—		147		(5	)	(3	)
Benefits, claims, losses and settlement expenses		1,085		—		1,085		1,059		—		1,059		26		2
Amortization of deferred acquisition costs		201		—		201		183		—		183		18		10
General and administrative expense		242		—		242		223		—		223		19		9
Total expenses		1,702		—		1,702		1,644		—		1,644		58		4
Pretax income	$	370	$	3	$	367	$	403	$	1	$	402	$	(35	)	(9	)%

(1)

Adjustments include net realized gains or losses.

67         

Our Protection segment pretax income decreased $33 million, or 8%, to $370 million for the year ended December 31, 2011, compared to $403 million for the prior year. Our Protection segment pretax operating income, which excludes net realized gains or losses, decreased $35 million, or 9%, to $367 million for the year ended December 31, 2011, compared to $402 million for the prior year primarily due to higher claims and general and administrative expenses partially offset by higher premiums.

Net Revenues

Net revenues increased $25 million, or 1%, to $2.1 billion for the year ended December 31, 2011 compared to $2.0 billion for the prior year. Operating net revenues, which exclude net realized gains or losses, increased $23 million, or 1%, to $2.1 billion for the year ended December 31, 2011 compared to $2.0 billion for the prior year due to Auto and Home premium growth.

Premiums increased $29 million, or 3%, to $1.1 billion for the year ended December 31, 2011 compared to $1.0 billion for the prior year due to growth in Auto and Home premiums driven by higher volumes. Auto and Home policy counts increased 7% period-over-period.

Expenses

Total expenses increased $58 million, or 4%, to $1.7 billion for the year ended December 31, 2011 compared to $1.6 billion for the prior year due to increases in benefits, claims, losses and settlement expenses, amortization of DAC and general and administrative expense.

Benefits, claims, losses and settlement expenses increased $26 million, or 2%, to $1.1 billion for the year ended December 31, 2011 compared to $1.1 billion for the prior year. Benefits, claims, losses and settlement expenses in 2011 included a benefit of $4 million from updating valuation assumptions and models compared to an expense of $44 million in the prior year. Benefits, claims, losses and settlement expenses related to our Auto and Home business increased from the prior year primarily due to $45 million of catastrophe losses in 2011 compared to $29 million in 2010, as well as higher auto liability reserves. In addition, benefits, claims, losses and settlement expenses increased as a result of higher UL claims and an increase in ongoing reserve levels for UL products with secondary guarantees compared to the prior year.

Amortization of DAC increased $18 million, or 10%, to $201 million for the year ended December 31, 2011 compared to $183 million for the prior year. Amortization of DAC in 2011 included a benefit of $2 million from updating valuation assumptions and models compared to a benefit of $22 million in the prior year. Amortization of DAC in 2010 included a benefit of $6 million as a result of the implementation of changes to the Portfolio Navigator program. The market impact on amortization of DAC was an expense of $2 million in 2011 compared to a benefit of $10 million in the prior year, which was partially offset by a decrease in DAC amortization as a result of better persistency and lower current period profits due to higher direct claims.

Corporate & Other

Our Corporate & Other segment consists of net investment income or loss on corporate level assets, including excess capital held in our subsidiaries and other unallocated equity and other revenues as well as unallocated corporate expenses. The Corporate & Other segment also includes revenues and expenses of CIEs.

Management believes that operating measures, which exclude net realized gains or losses, integration and restructuring charges and the impact of consolidating CIEs for our Corporate & Other segment, best reflect the underlying performance of our core operations and facilitate a more meaningful trend analysis. See our discussion on the use of these non-GAAP measures in the Overview section above.

         68

The following table presents the results of operations of our Corporate & Other segment:

	Years Ended December 31,
	2011									2010
	GAAP			Less: Adjustments(1)			Operating			GAAP			Less: Adjustments(1)		Operating			Operating Change
	(in millions)
Revenues
Management and financial advice fees	$	(1	)	$	—		$	(1	)	$	—		$	—	$	—		$	(1	)	NM
Distribution fees		—			—			—			—			—		—			—		—
Net investment income (loss)		68			95			(27	)		273			294		(21	)		(6	)	(29	)%
Other revenues		124			94			30			153			125		28			2		7
Total revenues		191			189			2			426			419		7			(5	)	(71	)
Banking and deposit interest expense		(1	)		—			(1	)		3			—		3			(4	)	NM
Total net revenues		192			189			3			423			419		4			(1	)	(25	)
Expenses
Distribution expenses		1			—			1			1			—		1			—		—
Interest and debt expense		316			221			95			288			181		107			(12	)	(11	)
General and administrative expense		218			70			148			185			65		120			28		23
Total expenses		535			291			244			474			246		228			16		7
Pretax loss		(343	)		(102	)		(241	)		(51	)		173		(224	)		(17	)	(8	)
Less: Net income (loss) attributable to noncontrolling interests		(106	)		(106	)		—			163			163		—			—		—
Pretax loss attributable to Ameriprise Financial	$	(237	)	$	4		$	(241	)	$	(214	)	$	10	$	(224	)	$	(17	)	(8	)%

NM Not Meaningful.

(1)

Includes revenues and expenses of the CIEs; net realized gains or losses; and integration and restructuring charges.

The following table presents the components of the adjustments in the table above:

	Years Ended December 31,
	2011								2010
	CIEs			Other Adjustments(1)		Total Adjustments			CIEs		Other Adjustments(1)		Total Adjustments
	(in millions)
Revenues
Net investment income (loss)	$	91		$	4	$	95		$	275	$	19	$	294
Other revenues		94			—		94			125		—		125
Total revenues		185			4		189			400		19		419
Banking and deposit interest expense		—			—		—			—		—		—
Total net revenues		185			4		189			400		19		419
Expenses
Distribution expenses		—			—		—			—		—		—
Interest and debt expense		221			—		221			181		—		181
General and administrative expense		70			—		70			56		9		65
Total expenses		291			—		291			237		9		246
Pretax loss		(106	)		4		(102	)		163		10		173
Less: Net income (loss) attributable to noncontrolling interests		(106	)		—		(106	)		163		—		163
Pretax loss attributable to Ameriprise Financial	$	—		$	4	$	4		$	—	$	10	$	10

(1)

Other adjustments include net realized gains or losses and integration and restructuring charges.

Our Corporate & Other segment pretax loss attributable to Ameriprise Financial was $237 million for the year ended December 31, 2011 compared to $214 million for the prior year. Our Corporate & Other segment pretax operating loss excludes net realized gains or losses, integration and restructuring charges and the impact of consolidating CIEs. Our Corporate & Other segment pretax operating loss was $241 million for the year ended December 31, 2011 compared to $224 million for the prior year.

Net revenues decreased $231 million, or 55%, to $192 million for the year ended December 31, 2011 compared to $423 million for the prior year reflecting the impact of consolidating CIEs. Operating net revenues, which exclude revenues or losses of CIEs and net realized gains or losses, decreased $1 million, or 25%, to $3 million for the year ended December 31, 2011 compared to $4 million for the prior year.

69         

Net investment income was $68 million for the year ended December 31, 2011 compared to $273 million for the prior year. Net investment income for the year ended December 31, 2011 included a $91 million gain for changes in the assets and liabilities of CIEs, primarily debt and underlying syndicated loans, compared to a $275 million gain for the prior year. Operating net investment loss, which excludes net investment income or loss of the CIEs and net realized gains or losses, was $27 million for the year ended December 31, 2011 compared to $21 million for the prior year.

Other revenues decreased $29 million, or 19%, to $124 million for the year ended December 31, 2011 compared to $153 million for the prior year. Operating other revenues, which exclude revenues or losses of the CIEs, increased $2 million, or 7%, to $30 million for the year ended December 31, 2011 compared to $28 million for the prior year. During the second quarter of 2011, we reclassified from accumulated other comprehensive income into earnings a $27 million gain on an interest rate hedge put in place in anticipation of issuing debt between December 2010 and June 2011. Operating other revenues for 2010 included a $25 million benefit from payments related to the Reserve Funds matter.

Total expenses increased $61 million, or 13%, to $535 million for the year ended December 31, 2011 compared to $474 million for the prior year. Operating expenses, which exclude expenses of CIEs and integration and restructuring charges, increased $16 million, or 7%, to $244 million for the year ended December 31, 2011 compared to $228 million for the prior year.

Interest and debt expense increased $28 million, or 10%, to $316 million for the year ended December 31, 2011 compared to $288 million for the prior year. Operating interest and debt expense, which excludes interest expense on CIE debt, decreased $12 million, or 11%, to $95 million for the year ended December 31, 2011 compared to $107 million for the prior year primarily due to lower average debt balances.

General and administrative expense increased $33 million, or 18%, to $218 million for the year ended December 31, 2011 compared to $185 million for the prior year. Operating general and administrative expense, which excludes expenses of the CIEs and integration and restructuring charges, increased $28 million, or 23%, to $148 million for the year ended December 31, 2011 compared to $120 million for the prior year.

         70

Consolidated Results of Operations

Year Ended December 31, 2010 Compared to Year Ended December 31, 2009

The following table presents our consolidated results of operations:

	Years Ended December 31,
	2010								2009
	GAAP			Less: Adjustments(1)			Operating		GAAP		Less: Adjustments(1)			Operating		Operating Change
	(in millions)
Revenues
Management and financial advice fees	$	3,784		$	(38	)	$	3,822	$	2,558	$	(2	)	$	2,560	$	1,262		49	%
Distribution fees		1,447			—			1,447		1,182		—			1,182		265		22
Net investment income		2,309			308			2,001		1,998		55			1,943		58		3
Premiums		1,179			—			1,179		1,098		—			1,098		81		7
Other revenues		863			125			738		702		28			674		64		9
Total revenues		9,582			395			9,187		7,538		81			7,457		1,730		23
Banking and deposit interest expense		70			—			70		141		6			135		(65	)	(48	)
Total net revenues		9,512			395			9,117		7,397		75			7,322		1,795		25
Expenses
Distribution expenses		2,065			—			2,065		1,462		—			1,462		603		41
Interest credited to fixed accounts		909			—			909		903		—			903		6		1
Benefits, claims, losses and settlement expenses		1,750			9			1,741		1,334		154			1,180		561		48
Amortization of deferred acquisition costs		127			16			111		217		(93	)		310		(199	)	(64	)
Interest and debt expense		290			181			109		127		—			127		(18	)	(14	)
General and administrative expense		2,737			129			2,608		2,434		105			2,329		279		12
Total expenses		7,878			335			7,543		6,477		166			6,311		1,232		20
Income from continuing operations before income tax provision		1,634			60			1,574		920		(91	)		1,011		563		56
Income tax provision		350			(36	)		386		184		(37	)		221		165		75
Income from continuing operations		1,284			96			1,188		736		(54	)		790		398		50
Income (loss) from discontinued operations, net of tax		(24	)		(24	)		—		1		1			—		—		—
Net income		1,260			72			1,188		737		(53	)		790		398		50
Less: Net income attributable to non- controlling interests		163			163			—		15		15			—		—		—
Net income attributable to Ameriprise Financial	$	1,097		$	(91	)	$	1,188	$	722	$	(68	)	$	790	$	398		50	%

(1)

Includes the elimination of management fees we earn for services provided to the CIEs and the related expense; revenues and expenses of the CIEs; net realized gains or losses; the market impact on variable annuity living benefits, net of hedges, DSIC and DAC amortization; integration and restructuring charges; and income (loss) from discontinued operations. Income tax provision is calculated using the statutory tax rate of 35% on applicable adjustments.

71         

The following table presents the components of the adjustments in the table above:

	Years Ended December 31,
	2010									2009
	CIEs			Other Adjustments(1)			Total Adjustments			CIEs			Other Adjustments(1)			Total Adjustments
	(in millions)
Revenues
Management and financial advice fees	$	(38	)	$	—		$	(38	)	$	(2	)	$	—		$	(2	)
Distribution fees		—			—			—			—			—			—
Net investment income		275			33			308			2			53			55
Premiums		—			—			—			—			—			—
Other revenues		125			—			125			28			—			28
Total revenues		362			33			395			28			53			81
Banking and deposit interest expense		—			—			—			6			—			6
Total net revenues		362			33			395			22			53			75
Expenses
Distribution expenses		—			—			—			—			—			—
Interest credited to fixed accounts		—			—			—			—			—			—
Benefits, claims, losses and settlement expenses		—			9			9			—			154			154
Amortization of deferred acquisition costs		—			16			16			—			(93	)		(93	)
Interest and debt expense		181			—			181			—			—			—
General and administrative expense		18			111			129			7			98			105
Total expenses		199			136			335			7			159			166
Income from continuing operations before income tax provision		163			(103	)		60			15			(106	)		(91	)
Income tax provision		—			(36	)		(36	)		—			(37	)		(37	)
Income from continuing operations		163			(67	)		96			15			(69	)		(54	)
Income (loss) from discontinued operations, net of tax		—			(24	)		(24	)		—			1			1
Net income		163			(91	)		72			15			(68	)		(53	)
Less: Net income attributable to noncontrolling interests		163			—			163			15			—			15
Net income attributable to Ameriprise Financial	$	—		$	(91	)	$	(91	)	$	—		$	(68	)	$	(68	)

(1)

Other adjustments include net realized gains or losses; the market impact on variable annuity living benefits, net of hedges, DSIC and DAC amortization; integration and restructuring charges; and income (loss) from discontinued operations.

Overall

Net income attributable to Ameriprise Financial increased $375 million, or 52%, to $1.1 billion for the year ended December 31, 2010 compared to $722 million for the prior year. Operating earnings exclude net realized gains or losses; the market impact on variable annuity guaranteed living benefits, net of hedges, DSIC and DAC amortization; integration and restructuring charges; income (loss) of discontinued operations; and the impact of consolidating CIEs. Operating earnings increased $398 million, or 50%, to $1.2 billion for the year ended December 31, 2010 compared to $790 million for the prior year driven by improved client activity, market appreciation and net inflows in wrap account assets and variable annuities, as well as improved scale from the Columbia Management Acquisition.

The total pretax impacts on our revenues and expenses for 2010 attributable to the review of valuation assumptions and models on an operating basis were as follows:

Segment Pretax Benefit (Charge)	Other Revenues			Benefits, Claims, Losses and Settlement Expenses			Amortization of DAC		Total
	(in millions)
Valuation assumptions and model changes:
Annuities	$	—		$	(256	)	$	353	$	97
Protection		(20	)		(44	)		22		(42	)
Total	$	(20	)	$	(300	)	$	375	$	55

         72

The total pretax impacts on our revenues and expenses for 2009 attributable to the review of valuation assumptions on an operating basis were as follows:

Segment Pretax Benefit (Charge)	Other Revenues			Benefits, Claims, Losses and Settlement Expenses		Amortization of DAC		Total
	(in millions)
Valuation assumptions:
Annuities	$	—		$	57	$	61	$	118
Protection		(65	)		33		55		23
Total	$	(65	)	$	90	$	116	$	141

Net Revenues

Net revenues increased $2.1 billion, or 29%, to $9.5 billion for the year ended December 31, 2010 compared to $7.4 billion for the prior year. Operating net revenues exclude net realized gains or losses and revenues or losses of the CIEs and include the fees we earn from services provided to the CIEs. Operating net revenues increased $1.8 billion, or 25%, to $9.1 billion for the year ended December 31, 2010 compared to $7.3 billion for the prior year primarily due to growth in asset-based management fees and distribution fees driven by higher asset levels reflecting the Columbia Management Acquisition, market appreciation and net inflows in wrap account assets and variable annuities, as well as increased client activity.

Management and financial advice fees increased $1.2 billion, or 48%, to $3.8 billion for the year ended December 31, 2010 compared to $2.6 billion for the prior year. Operating management and financial advice fees include the fees we earn from services provided to the CIEs. Operating management and financial advice fees increased $1.3 billion, or 49%, to $3.8 billion for the year ended December 31, 2010 compared to $2.6 billion for the prior year primarily due to higher asset levels reflecting the Columbia Management Acquisition, market appreciation and net inflows in wrap account assets and variable annuities. The daily average S&P 500 Index increased 20% compared to the prior year. Wrap account assets increased $16.2 billion, or 20%, to $97.5 billion at December 31, 2010 compared to the prior year due to net inflows and market appreciation. Average variable annuities contract accumulation values increased $10.3 billion, or 25%, from the prior year due to higher equity market levels and net inflows. Total Asset Management AUM increased $213.7 billion, or 88%, to $456.8 billion at December 31, 2010 compared to the prior year primarily due to the Columbia Management Acquisition and market appreciation, partially offset by net outflows.

Distribution fees increased $265 million, or 22%, to $1.4 billion for the year ended December 31, 2010 compared to $1.2 billion for the prior year primarily due to higher asset-based fees driven by growth in assets from the Columbia Management Acquisition, market appreciation and net inflows in wrap account assets and variable annuities, as well as increased client activity.

Net investment income increased $311 million, or 16%, to $2.3 billion for the year ended December 31, 2010 compared to $2.0 billion for the prior year. Net investment income for 2010 included a $275 million gain for changes in the assets and liabilities of CIEs, primarily debt and underlying syndicated loans, compared to $2 million in the prior year. Operating net investment income excludes net realized gains or losses and changes in the assets and liabilities of CIEs. Operating net investment income increased $58 million, or 3%, to $2.0 billion for the year ended December 31, 2010 compared to $1.9 billion for the prior year primarily due to a $42 million increase in investment income on fixed maturity securities driven by higher fixed annuity account balances and higher investment yields, as well as higher investment yields and increased account balances related to assets supporting our Protection business, partially offset by lower investment income related to certificates.

Premiums increased $81 million, or 7%, to $1.2 billion for the year ended December 31, 2010 compared to $1.1 billion for the prior year primarily due to growth in Auto and Home premiums driven by higher volumes, as well as higher sales of immediate annuities with life contingencies. Auto and Home policy counts increased 9% period-over-period.

Other revenues increased $161 million, or 23%, to $863 million for the year ended December 31, 2010 compared to $702 million for the prior year. Operating other revenues exclude revenues of the CIEs. Operating other revenues increased $64 million, or 9%, to $738 million for the year ended December 31, 2010 compared to $674 million for the prior year primarily due to lower charges related to updating valuation assumptions and models, higher fees from variable annuity guarantees, and a $25 million benefit from payments related to the Reserve Funds matter in 2010, partially offset by a $58 million benefit in 2009 from repurchasing our junior notes at a discount. Other revenues in 2010 included a charge of $20 million from updating valuation assumptions and models compared to a charge of $65 million in the prior year.

73         

Banking and deposit interest expense decreased $71 million, or 50%, to $70 million for the year ended December 31, 2010 compared to $141 million for the prior year primarily due to lower certificate balances as a result of the run-off of certificate rate promotions and a decrease in crediting rates on certificate products.

Expenses

Total expenses increased $1.4 billion, or 22%, to $7.9 billion for the year ended December 31, 2010 compared to $6.5 billion for the prior year. Operating expenses exclude the market impact on variable annuity guaranteed living benefits, net of hedges, DSIC and DAC amortization; integration and restructuring charges; and expenses of the CIEs. Operating expenses increased $1.2 billion, or 20%, to $7.5 billion for the year ended December 31, 2010 compared to $6.3 billion for the prior year primarily due to increases in distribution expenses, benefits, claims, losses and settlement expenses and general and administrative expense, partially offset by a decrease in amortization of DAC.

Distribution expenses increased $603 million, or 41%, to $2.1 billion for the year ended December 31, 2010 compared to $1.5 billion for the prior year as a result of market appreciation and the Columbia Management Acquisition, as well as higher advisor compensation from business growth.

Interest credited to fixed accounts increased $6 million, or 1%, to $909 million for the year ended December 31, 2010 compared to $903 million for the prior year driven by higher average fixed annuity account balances, partially offset by a lower average crediting rate on interest sensitive fixed annuities. Average fixed annuities contract accumulation values increased $600 million, or 4%, to $14.5 billion for 2010 compared to the prior year. The average fixed annuity crediting rate excluding capitalized interest decreased to 3.8% in 2010 compared to 3.9% in the prior year.

Benefits, claims, losses and settlement expenses increased $416 million, or 31%, to $1.8 billion for the year ended December 31, 2010 compared to $1.3 billion for the prior year. Operating benefits, claims, losses and settlement expenses, which exclude the market impact on variable annuity guaranteed living benefits, net of hedges and DSIC amortization, increased $561 million, or 48%, to $1.7 billion for the year ended December 31, 2010 compared to $1.2 billion for the prior year driven by the impact of updating valuation assumptions and models. Operating benefits, claims, losses and settlement expenses in 2010 included an expense of $300 million from updating valuation assumptions and models compared to a benefit of $90 million in the prior year. Benefits, claims, losses and settlement expenses related to our Auto and Home business increased compared to the prior year primarily due to higher business volumes and higher claims driven by $11 million in catastrophe losses from a hail storm in the Phoenix area and a $16 million reserve increase for higher auto liability claims. Benefits, claims, losses and settlement expenses related to our immediate annuities with life contingencies increased compared to the prior year primarily due to higher premiums. In addition, benefits, claims, losses and settlement expenses increased as a result of the implementation of changes to the Portfolio Navigator program in the second quarter of 2010, higher disability income and long-term care insurance claims and higher reserves for UL products with secondary guarantees compared to the prior year.

Amortization of DAC decreased $90 million, or 41%, to $127 million for the year ended December 31, 2010 compared to $217 million for the prior year. Operating amortization of DAC, which excludes the DAC offset to the market impact on variable annuity guaranteed living benefits, decreased $199 million, or 64%, to $111 million for the year ended December 31, 2010 compared to $310 million for the prior year primarily due to the impact of updating valuation assumptions and models, as well as the market impact on amortization of DAC. Operating amortization of DAC in 2010 included a benefit of $375 million from updating valuation assumptions and models compared to a benefit of $116 million in the prior year. The market impact on amortization of DAC was a benefit of $31 million in 2010 compared to a benefit of $26 million in the prior year. An increase in DAC amortization related to higher variable annuity gross profits was partially offset by a decrease as a result of the implementation of changes to the Portfolio Navigator program in the second quarter of 2010.

Interest and debt expense increased $163 million to $290 million for the year ended December 31, 2010 compared to $127 million for the prior year. Interest and debt expense in 2010 included $181 million of interest expense on CIE debt compared to nil in the prior year. Operating interest and debt expense excludes interest expense on CIE debt. Operating interest and debt expense decreased $18 million, or 14%, to $109 million for the year ended December 31, 2010 compared to $127 million for the prior year primarily due to an expense of $13 million in 2009 related to the early retirement of $450 million of our senior notes due 2010.

General and administrative expense increased $303 million, or 12%, to $2.7 billion for the year ended December 31, 2010 compared to $2.4 billion for the prior year. Operating general and administrative expense excludes integration and restructuring charges and expenses of the CIEs. Integration and restructuring charges increased $13 million to $111 million in 2010 compared to $98 million in the prior year. Operating general and administrative expense increased $279 million, or 12%, to $2.6 billion for the year ended December 31, 2010 compared to $2.3 billion for the prior year primarily reflecting ongoing expenses from the Columbia Management Acquisition, as well as higher performance based compensation partially offset by lower hedge fund performance compensation.

         74

Income Taxes

Our effective tax rate on income from continuing operations including income attributable to noncontrolling interests was 21.5% for the year ended December 31, 2010, compared to 20.0% for the year ended December 31, 2009. The increase in our effective tax rate primarily reflects an increase in pretax income relative to tax advantaged items, which was partially offset by $53 million in benefits from tax planning and the completion of certain audits. Our effective tax rate on income from continuing operations excluding net income attributable to noncontrolling interests was 23.8% for the year ended December 31, 2010, compared to 20.3% for the year ended December 31, 2009. Our operating effective tax rate was 24.5% for the year ended December 31, 2010, compared to 21.9% for the year ended December 31, 2009.

The following table presents a reconciliation of our operating effective tax rate:

	Years Ended December 31
	2010						2009
	GAAP			Operating			GAAP			Operating
	(in millions)
Income from continuing operations before income tax provision	$	1,634		$	1,574		$	920		$	1,011
Less: Pretax income attributable to noncontrolling interests		163			—			15			—
Income from continuing operations before income tax provision excluding CIEs	$	1,471		$	1,574		$	905		$	1,011
Income tax provision from continuing operations	$	350		$	386		$	184		$	221
Effective tax rate		21.5	%		24.5	%		20.0	%		21.9	%
Effective tax rate excluding noncontrolling interests		23.8	%		24.5	%		20.3	%		21.9	%

Results of Operations by Segment

Year Ended December 31, 2010 Compared to Year Ended December 31, 2009

The following table presents summary financial information by segment:

	Years Ended December 31,
	2010									2009
	GAAP			Less: Adjustments(1)			Operating			GAAP			Less: Adjustments(1)			Operating
	(in millions)
Advice & Wealth Management
Net revenues	$	3,343		$	1		$	3,342		$	2,804		$	(15	)	$	2,819
Expenses		3,027			7			3,020			2,837			64			2,773
Pretax income (loss)	$	316		$	(6	)	$	322		$	(33	)	$	(79	)	$	46
Asset Management
Net revenues	$	2,368		$	3		$	2,365		$	1,346		$	(3	)	$	1,349
Expenses		2,050			95			1,955			1,286			30			1,256
Pretax income	$	318		$	(92	)	$	410		$	60		$	(33	)	$	93
Annuities
Net revenues	$	2,500		$	9		$	2,491		$	2,265		$	44		$	2,221
Expenses		1,852			25			1,827			1,617			61			1,556
Pretax income	$	648		$	(16	)	$	664		$	648		$	(17	)	$	665
Protection
Net revenues	$	2,047		$	1		$	2,046		$	1,964		$	27		$	1,937
Expenses		1,644			—			1,644			1,467			—			1,467
Pretax income	$	403		$	1		$	402		$	497		$	27		$	470
Corporate & Other
Net revenues	$	423		$	419		$	4		$	26		$	24		$	2
Expenses		474			246			228			278			13			265
Pretax loss		(51	)		173			(224	)		(252	)		11			(263	)
Less: Pretax income attributable to noncontrolling interests		163			163			—			15			15			—
Pretax loss attributable to Ameriprise Financial	$	(214	)	$	10		$	(224	)	$	(267	)	$	(4	)	$	(263	)
Eliminations
Net revenues	$	(1,169	)	$	(38	)	$	(1,131	)	$	(1,008	)	$	(2	)	$	(1,006	)
Expenses		(1,169	)		(38	)		(1,131	)		(1,008	)		(2	)		(1,006	)
Pretax income	$	—		$	—		$	—		$	—		$	—		$	—

(1)

Includes the elimination of management fees we earn for services provided to the CIEs and the related expense; revenues and expenses of the CIEs; net realized gains or losses; the market impact on variable annuity living benefits, net of hedges, DSIC and DAC amortization; and integration and restructuring charges.

75         

Advice & Wealth Management

The following table presents the changes in wrap account assets for the years ended December 31:

	2010		2009
	(in billions)
Beginning balance	$	81.3	$	62.2
Net flows		7.6		7.9
Market appreciation and other		8.6		11.2
Ending balance	$	97.5	$	81.3

Wrap account assets increased $16.2 billion, or 20%, to $97.5 billion compared to the prior year due to market appreciation and net inflows.

The following table presents the results of operations of our Advice & Wealth Management segment:

	Years Ended December 31,
	2010							2009
	GAAP		Less: Adjustments(1)			Operating		GAAP			Less: Adjustments(1)			Operating		Operating Change
	(in millions)
Revenues
Management and financial advice fees	$	1,370	$	—		$	1,370	$	1,088		$	—		$	1,088	$	282		26	%
Distribution fees		1,696		—			1,696		1,491			—			1,491		205		14
Net investment income		273		1			272		293			(15	)		308		(36	)	(12	)
Other revenues		71		—			71		65			—			65		6		9
Total revenues		3,410		1			3,409		2,937			(15	)		2,952		457		15
Banking and deposit interest expense		67		—			67		133			—			133		(66	)	(50	)
Total net revenues		3,343		1			3,342		2,804			(15	)		2,819		523		19
Expenses
Distribution expenses		1,954		—			1,954		1,644			—			1,644		310		19
General and administrative expense		1,073		7			1,066		1,193			64			1,129		(63	)	(6	)
Total expenses		3,027		7			3,020		2,837			64			2,773		247		9	%
Pretax income (loss)	$	316	$	(6	)	$	322	$	(33	)	$	(79	)	$	46	$	276		NM

NM Not Meaningful.

(1)

Adjustments include net realized gains or losses and integration and restructuring charges.

Our Advice & Wealth Management segment pretax income was $316 million for the year ended December 31, 2010 compared to a loss of $33 million in the prior year. Our Advice & Wealth Management segment pretax operating income, which excludes net realized gains or losses and integration charges, was $322 million for the year ended December 31, 2010 compared to $46 million in the prior year driven by higher asset-based fees partially offset by higher distribution expenses. Pretax margin for 2010 was 9.5% and operating pretax margin was 9.6%.

Net Revenues

Net revenues were $3.3 billion for the year ended December 31, 2010 compared to $2.8 billion in the prior year, an increase of $539 million, or 19%. Operating net revenues exclude net realized gains or losses. Operating net revenues were $3.3 billion for the year ended December 31, 2010 compared to $2.8 billion in the prior year, an increase of $523 million, or 19%, driven by growth in average fee-based assets, as well as increased client activity.

Management and financial advice fees increased $282 million, or 26%, to $1.4 billion for the year ended December 31, 2010 compared to $1.1 billion for the prior year driven by growth in average fee-based assets resulting from market appreciation and net inflows in wrap account assets. The daily average S&P 500 Index increased 20% compared to the prior year. Wrap account assets increased $16.2 billion, or 20%, to $97.5 billion at December 31, 2010 compared to the prior year due to market appreciation and net inflows.

         76

Distribution fees increased $205 million, or 14%, to $1.7 billion for the year ended December 31, 2010 compared to $1.5 billion for the prior year primarily driven by growth in average fee-based assets resulting from market appreciation and net inflows in wrap account assets, as well as increased client activity.

Net investment income decreased $20 million, or 7%, to $273 million for the year ended December 31, 2010 compared to $293 million for the prior year. Operating net investment income, which excludes net realized gains or losses, decreased $36 million, or 12%, to $272 million for the year ended December 31, 2010 compared to $308 million for the prior year driven by lower invested assets resulting from net outflows in certificates, as well as lower average yields on invested assets related to certificates.

Banking and deposit interest expense decreased $66 million, or 50%, to $67 million for the year ended December 31, 2010 compared to $133 million for the prior year primarily due to lower certificate balances as a result of the run-off of certificate rate promotions, as well as a decrease in crediting rates on certificate products.

Expenses

Total expenses increased $190 million, or 7%, to $3.0 billion for the year ended December 31, 2010 compared to $2.8 billion for the prior year. Operating expenses, which exclude integration charges, increased $247 million, or 9%, to $3.0 billion for the year ended December 31, 2010 compared to $2.8 billion for the prior year due to an increase in distribution expenses partially offset by a decrease in general and administrative expense.

Distribution expenses increased $310 million, or 19%, to $2.0 billion for the year ended December 31, 2010 compared to $1.6 billion for the prior year primarily due to growth in average fee-based assets, as well as higher advisor compensation from business growth.

General and administrative expense decreased $120 million, or 10%, to $1.1 billion for the year ended December 31, 2010 compared to $1.2 billion for the prior year. Integration charges decreased $57 million to $7 million in 2010 compared to $64 million in the prior year. Operating general and administrative expense, which excludes integration charges, decreased $63 million, or 6%, to $1.1 billion for the year ended December 31, 2010 reflecting cost controls.

Asset Management

The following tables present the changes in Columbia and Threadneedle managed assets:

	January 1, 2010			Net Flows			Market Appreciation/ (Depreciation) & Other(1)			Foreign Exchange			December 31, 2010
	(in billions)
Columbia Managed Assets:(2)
Retail Funds	$	76.9		$	(5.2	)	$	146.8	(3)	$	—		$	218.5
Institutional Funds		62.3			(7.1	)		72.0	(4)		—			127.2
Alternative Funds		9.9			—			0.1			—			10.0
Less: Eliminations		(0.1	)		—			(0.1	)		—			(0.2	)
Total Columbia Managed Assets		149.0			(12.3	)		218.8			—			355.5
Threadneedle Managed Assets:
Retail Funds		29.1			1.9			3.5			(1.1	)		33.4
Institutional Funds		66.8			(2.2	)		8.7			(2.4	)		70.9
Alternative Funds		1.9			(0.2	)		(0.4	)		—			1.3
Total Threadneedle Managed Assets		97.8			(0.5	)		11.8			(3.5	)		105.6
Less: Sub-Advised Eliminations		(3.6	)		(0.1	)		(0.6	)		—			(4.3	)
Total Managed Assets	$	243.2		$	(12.9	)	$	230.0		$	(3.5	)	$	456.8

(1)

Distributions of Retail Funds are included in market appreciation/(depreciation) and other.

(2)

Prior to the Columbia Management Acquisition, the domestic managed assets of our Asset Management segment, which are now included in Columbia Managed Assets, were managed by RiverSource Investments.

(3)

Included in Market appreciation/(depreciation) and other is $118.1 billion due to the Columbia Management Acquisition, including $3 billion of assets that were transferred to RiverSource Sub-advised through the implementation of the Portfolio Navigator program, and an additional $13.1 billion of Portfolio Navigator related assets sub-advised by others.

(4)

Included in Market appreciation/(depreciation) and other is $68.4 billion due to the Columbia Management Acquisition.

77         

	January 1, 2009			Net Flows			Market Appreciation/ (Depreciation) & Other(1)			Foreign Exchange		December 31, 2009
	(in billions)
Columbia Managed Assets:(2)
Retail Funds	$	63.9		$	(0.5	)	$	13.5		$	—	$	76.9
Institutional Funds		54.7			2.6			5.0			—		62.3
Alternative Funds		9.4			(0.1	)		0.6			—		9.9
Less: Eliminations		(0.1	)		—			—			—		(0.1	)
Total Columbia Managed Assets		127.9			2.0			19.1			—		149.0
Threadneedle Managed Assets:
Retail Funds		16.3			4.9			6.1	(3)		1.8		29.1
Institutional Funds		55.3			(1.4	)		7.5			5.4		66.8
Alternative Funds		2.6			0.1			(1.0	)		0.2		1.9
Total Threadneedle Managed Assets		74.2			3.6			12.6			7.4		97.8
Less: Sub-Advised Eliminations		(2.5	)		0.3			(1.4	)		—		(3.6	)
Total Managed Assets	$	199.6		$	5.9		$	30.3		$	7.4	$	243.2

(1)

Distributions of Retail Funds are included in market appreciation/(depreciation) and other.

(2)

Prior to the Columbia Management Acquisition, the domestic managed assets of our Asset Management segment, which are now included in Columbia Managed Assets, were managed by RiverSource Investments.

(3)

Included in Market appreciation/(depreciation) and other are assets due to the addition of Standard Chartered Bank's World Express Funds investment business.

Columbia assets under management were $355.5 billion at December 31, 2010 compared to $149.0 billion a year ago, driven by the Columbia Management Acquisition and market appreciation, partially offset by net outflows. Equity and fixed income investment performance remained strong across one-, three- and five-year periods. Retail net outflows of $5.2 billion in 2010 were primarily in equity and subadvisory portfolios, reflecting industry-wide outflows in equities and lower retail sales as a result of pending fund mergers. Institutional net outflows of $7.1 billion in 2010 were primarily in lower basis point fixed income portfolios.

Threadneedle assets under management were $105.6 billion at December 31, 2010, up 8% from a year ago reflecting year-over-year market appreciation and retail net inflows, partially offset by negative foreign currency translation and institutional net outflows. Total net outflows of $0.5 billion in 2010 reflected net outflows in lower basis point institutional portfolios, partially offset by retail net inflows from higher sales from European investors. Institutional net outflows in 2010 primarily reflected continued outflows in Zurich-related portfolios. Investment track records remained strong across one-, three- and five-year periods.

The following table presents the results of operations of our Asset Management segment:

	Years Ended December 31,
	2010							2009
	GAAP		Less: Adjustments(1)			Operating		GAAP		Less: Adjustments(1)			Operating		Operating Change
	(in millions)
Revenues
Management and financial advice fees	$	1,979	$	—		$	1,979	$	1,106	$	—		$	1,106	$	873		79	%
Distribution fees		358		—			358		216		—			216		142		66
Net investment income		17		3			14		18		(3	)		21		(7	)	(33	)
Other revenues		15		—			15		8		—			8		7		88
Total revenues		2,369		3			2,366		1,348		(3	)		1,351		1,015		75
Banking and deposit interest expense		1		—			1		2		—			2		(1	)	(50	)
Total net revenues		2,368		3			2,365		1,346		(3	)		1,349		1,016		75
Expenses
Distribution expenses		734		—			734		371		—			371		363		98
Amortization of deferred acquisition costs		20		—			20		21		—			21		(1	)	(5	)
General and administrative expense		1,296		95			1,201		894		30			864		337		39
Total expenses		2,050		95			1,955		1,286		30			1,256		699		56	%
Pretax income	$	318	$	(92	)	$	410	$	60	$	(33	)	$	93	$	317		NM

NM Not Meaningful.

(1)

Adjustments include net realized gains or losses and integration charges.

         78

Our Asset Management segment pretax income was $318 million for the year ended December 31, 2010 compared to $60 million for the prior year. Our Asset Management segment pretax operating income, which excludes net realized gains or losses and integration charges, was $410 million for the year ended December 31, 2010 compared to $93 million for the prior year reflecting eight months of earnings from business acquired in the Columbia Management Acquisition and market appreciation. Pretax margin for 2010 was 13.4% and operating pretax margin was 17.3%.

Net Revenues

Net revenues increased $1.0 billion, or 76%, to $2.4 billion for the year ended December 31, 2010 compared to $1.3 billion for the prior year driven by an increase in asset-based management fees and distribution fees due to growth in assets from the Columbia Management Acquisition and market appreciation.

Management and financial advice fees increased $873 million, or 79%, to $2.0 billion for the year ended December 31, 2010 compared to $1.1 billion for the prior year primarily due to growth in assets from the Columbia Management Acquisition and market appreciation, partially offset by lower hedge fund performance fees. The daily average S&P 500 Index increased 20% compared to the prior year. Total Asset Management managed assets increased $213.7 billion, or 88%, to $456.8 billion at December 31, 2010 compared to the prior year primarily due to the Columbia Management Acquisition and market appreciation, partially offset by net outflows.

Distribution fees increased $142 million, or 66%, to $358 million for the year ended December 31, 2010 compared to $216 million for the prior year primarily driven by growth in assets from the Columbia Management Acquisition and market appreciation.

Expenses

Total expenses increased $764 million, or 59%, to $2.1 billion for the year ended December 31, 2010 compared to $1.3 billion for the prior year. Operating expenses, which exclude integration charges, increased $699 million, or 56%, to $2.0 billion for the year ended December 31, 2010 compared to $1.3 billion for the prior year due to an increase in distribution expenses and general and administrative expense. We realized integration gross expense synergies related to the Columbia Management Acquisition of approximately $75 million for the year ended December 31, 2010.

Distribution expenses increased $363 million, or 98%, to $734 million for the year ended December 31, 2010 compared to $371 million for the prior year primarily due to growth in assets from the Columbia Management Acquisition and market appreciation.

General and administrative expense increased $402 million, or 45%, to $1.3 billion for the year ended December 31, 2010 compared to $894 million for the prior year. Integration charges increased $65 million to $95 million in 2010 compared to $30 million in the prior year. Operating general and administrative expense, which excludes integration charges, increased $337 million, or 39%, to $1.2 billion for the year ended December 31, 2010 compared to $864 million for the prior year primarily due to increased operating costs of Columbia Management, as well as higher performance based compensation partially offset by lower legal expenses and lower hedge fund performance compensation.

79         

Annuities

The following table presents the results of operations of our Annuities segment:

	Years Ended December 31,
	2010									2009
	GAAP			Less: Adjustments(1)			Operating			GAAP		Less: Adjustments(1)			Operating		Operating Change
	(in millions)
Revenues
Management and financial advice fees	$	546		$	—		$	546		$	438	$	—		$	438	$	108		25	%
Distribution fees		284			—			284			247		—			247		37		15
Net investment income		1,318			9			1,309			1,323		44			1,279		30		2
Premiums		150			—			150			104		—			104		46		44
Other revenues		202			—			202			153		—			153		49		32
Total revenues		2,500			9			2,491			2,265		44			2,221		270		12
Banking and deposit interest expense		—			—			—			—		—			—		—		—
Total net revenues		2,500			9			2,491			2,265		44			2,221		270		12
Expenses
Distribution expenses		268			—			268			211		—			211		57		27
Interest credited to fixed accounts		762			—			762			759		—			759		3		—
Benefits, claims, losses and settlement expenses		691			9			682			418		154			264		418		NM
Amortization of deferred acquisition costs		(76	)		16			(92	)		37		(93	)		130		(222	)	NM
Interest and debt expense		2			—			2			—		—			—		2		NM
General and administrative expense		205			—			205			192		—			192		13		7
Total expenses		1,852			25			1,827			1,617		61			1,556		271		17	%
Pretax income	$	648		$	(16	)	$	664		$	648	$	(17	)	$	665	$	(1	)	—

NM Not Meaningful.

(1)

Adjustments include net realized gains or losses and the market impact on variable annuity living benefits, net of hedges, DSIC and DAC amortization.

Our Annuities segment pretax income was $648 million for both 2010 and 2009. Our Annuities segment pretax operating income, which excludes net realized gains or losses and the market impact on variable annuity guaranteed living benefits, net of hedges, DSIC and DAC amortization, decreased $1 million to $664 million for the year ended December 31, 2010 compared to $665 million in the prior year.

Net Revenues

Net revenues increased $235 million, or 10%, to $2.5 billion for the year ended December 31, 2010 compared to $2.3 billion for the prior year. Operating net revenues, which exclude net realized gains or losses, increased $270 million, or 12%, to $2.5 billion for the year ended December 31, 2010 compared to $2.2 billion for the prior year reflecting increased management fees from higher separate account balances, increased premiums from immediate annuities with life contingencies and higher fees from variable annuity guarantees.

Management and financial advice fees increased $108 million, or 25%, to $546 million for the year ended December 31, 2010 compared to $438 million for the prior year due to higher fees on variable annuities driven by higher separate account balances. Average variable annuities contract accumulation values increased $10.3 billion, or 25%, from the prior year due to higher equity market levels and net inflows. Variable annuity net inflows during 2010 were $1.2 billion driven by our introduction in the third quarter of a new variable annuity in the Ameriprise channel, RAVA 5, and an updated guaranteed minimum withdrawal benefit rider in the Ameriprise and third-party channels.

Distribution fees increased $37 million, or 15%, to $284 million for the year ended December 31, 2010 compared to $247 million for the prior year primarily due to higher fees on variable annuities driven by higher separate account balances.

Net investment income decreased $5 million to $1.3 billion for the year ended December 31, 2010. Operating net investment income, which excludes net realized gains or losses, increased $30 million, or 2%, to $1.3 billion for the year ended December 31, 2010, primarily driven by higher fixed annuity account balances and higher investment yields, partially offset by the negative impact of the implementation of changes to the Portfolio Navigator program. With these changes, assets of clients participating in the Portfolio Navigator program were reallocated, pursuant to their consent. This reallocation in part resulted in a shift of assets from interest bearing investments in the general account into separate accounts.

         80

Premiums increased $46 million, or 44%, to $150 million for the year ended December 31, 2010 compared to $104 million for the prior year due to higher sales of immediate annuities with life contingencies.

Other revenues increased $49 million, or 32%, to $202 million for the year ended December 31, 2010 compared to $153 million for the prior year due to higher fees from variable annuity guarantees.

Expenses

Total expenses increased $235 million, or 15%, to $1.9 billion for the year ended December 31, 2010 compared to $1.6 billion for the prior year. Operating expenses, which exclude the market impact on variable annuity guaranteed living benefits, net of hedges, DSIC and DAC amortization, increased $271 million, or 17%, to $1.8 billion for the year ended December 31, 2010 compared to $1.6 billion for the prior year primarily due to increases in distribution expenses and benefits, claims, losses and settlement expenses partially offset by a decrease in amortization of DAC.

Distribution expenses increased $57 million, or 27%, to $268 million for the year ended December 31, 2010 compared to $211 million for the prior year primarily due to higher variable annuity compensation.

Interest credited to fixed accounts increased $3 million to $762 million for the year ended December 31, 2010 compared to $759 million for the prior year due to higher average fixed annuity account balances partially offset by a lower average crediting rate on interest sensitive fixed annuities. Average fixed annuities contract accumulation values increased $600 million, or 4%, to $14.5 billion for 2010 compared to the prior year. The average fixed annuity crediting rate excluding capitalized interest decreased to 3.8% in 2010 compared to 3.9% in the prior year.

Benefits, claims, losses and settlement expenses increased $273 million, or 65%, to $691 million for the year ended December 31, 2010 compared to $418 million for the prior year. Operating benefits, claims, losses and settlement expenses, which exclude the market impact on variable annuity guaranteed living benefits, net of hedges and DSIC amortization, increased $418 million to $682 million for the year ended December 31, 2010 compared to $264 million for the prior year primarily driven by the impact of updating valuation assumptions and model changes. Operating benefits, claims, losses and settlement expenses in 2010 included an expense of $256 million from updating valuation assumptions and model changes compared to a benefit of $57 million in the prior year. The market impact to DSIC was a benefit of $3 million in 2010 compared to a benefit of $4 million in the prior year. Benefits, claims, losses and settlement expenses related to our immediate annuities with life contingencies increased compared to the prior year primarily due to higher premiums. In addition, benefits, claims, losses and settlement expenses increased as a result of the implementation of changes to the Portfolio Navigator program in the second quarter of 2010.

Amortization of DAC decreased $113 million to a benefit of $76 million for the year ended December 31, 2010 compared to an expense of $37 million in the prior year. Operating amortization of DAC, which excludes the DAC offset to the market impact on variable annuity guaranteed living benefits, decreased $222 million to a benefit of $92 million for the year ended December 31, 2010 compared to an expense of $130 million for the prior year primarily due to the impact of updating valuation assumptions and model changes. Operating amortization of DAC in 2010 included a benefit of $353 million from updating valuation assumptions and model changes compared to a benefit of $61 million in the prior year. The market impact on DAC amortization in 2010 was a benefit of $21 million compared to a benefit of $23 million in the prior year. An increase in DAC amortization related to higher variable annuity gross profits was partially offset by a decrease as a result of the implementation of changes to the Portfolio Navigator program in the second quarter of 2010.

General and administrative expense increased $13 million, or 7%, to $205 million for the year ended December 31, 2010 compared to $192 million for the prior year primarily driven by additional expenses related to new product introductions and enhancements.

81         

Protection

The following table presents the results of operations of our Protection segment:

	Years Ended December 31,
	2010						2009
	GAAP		Less: Adjustments(1)		Operating		GAAP		Less: Adjustments(1)		Operating		Operating Change
	(in millions)
Revenues
Management and financial advice fees	$	54	$	—	$	54	$	47	$	—	$	47	$	7		15	%
Distribution fees		96		—		96		97		—		97		(1	)	(1	)
Net investment income		429		1		428		422		27		395		33		8
Premiums		1,047		—		1,047		1,013		—		1,013		34		3
Other revenues		422		—		422		386		—		386		36		9
Total revenues		2,048		1		2,047		1,965		27		1,938		109		6
Banking and deposit interest expense		1		—		1		1		—		1		—		—
Total net revenues		2,047		1		2,046		1,964		27		1,937		109		6
Expenses
Distribution expenses		32		—		32		22		—		22		10		45
Interest credited to fixed accounts		147		—		147		144		—		144		3		2
Benefits, claims, losses and settlement expenses		1,059		—		1,059		916		—		916		143		16
Amortization of deferred acquisition costs		183		—		183		159		—		159		24		15
General and administrative expense		223		—		223		226		—		226		(3	)	(1	)
Total expenses		1,644		—		1,644		1,467		—		1,467		177		12
Pretax income	$	403	$	1	$	402	$	497	$	27	$	470	$	(68	)	(14	)%

(1)

Adjustments include net realized gains or losses.

Our Protection segment pretax income was $403 million for the year ended December 31, 2010, a decrease of $94 million, or 19%, from $497 million for the prior year. Our Protection segment pretax operating income, which excludes net realized gains or losses, was $402 million for the year ended December 31, 2010, a decrease of $68 million, or 14%, from $470 million for the prior year.

Net Revenues

Net revenues increased $83 million, or 4%, to $2.0 billion for the year ended December 31, 2010 compared to $2.0 billion for the prior year. Operating net revenues, which exclude net realized gains or losses, increased $109 million, or 6%, to $2.0 billion for the year ended December 31, 2010 compared to $1.9 billion for the prior year primarily due to the impact of updating valuation assumptions and model changes and an increase in net investment income and premiums.

Management and financial advice fees increased $7 million, or 15%, to $54 million for the year ended December 31, 2010 compared to $47 million for the prior year primarily due to higher management fees from VUL separate account growth due to market appreciation.

Net investment income increased $7 million, or 2%, to $429 million for the year ended December 31, 2010 compared to $422 million for the prior year. Operating net investment income, which excludes net realized gains or losses, increased $33 million, or 8%, to $428 million for the year ended December 31, 2010 compared to $395 million for the prior year primarily due to higher investment yields and increased general account assets.

Premiums increased $34 million, or 3%, to $1.0 billion for the year ended December 31, 2010 compared to $1.0 billion for the prior year due to growth in Auto and Home premiums driven by higher volumes. Auto and Home policy counts increased 9% period-over-period.

Other revenues increased $36 million, or 9%, to $422 million for the year ended December 31, 2010 compared to $386 million for the prior year primarily due to updating valuation assumptions and model changes. Other revenues in 2010 included a charge of $20 million from updating valuation assumptions and model changes compared to a charge of $65 million in the prior year.

         82

Expenses

Total expenses increased $177 million, or 12%, to $1.6 billion for the year ended December 31, 2010 compared to $1.5 billion for the prior year primarily due to updating valuation assumptions and model changes and an increase in insurance claims compared to the prior year.

Benefits, claims, losses and settlement expenses increased $143 million, or 16%, to $1.1 billion for the year ended December 31, 2010 compared to $916 million for the prior year primarily due to updating valuation assumptions and model changes and higher claims in 2010. Benefits, claims, losses and settlement expenses in 2010 included an expense of $44 million from updating valuation assumptions and model changes compared to a benefit of $33 million in the prior year. Benefits, claims, losses and settlement expenses related to our Auto and Home business increased compared to the prior year primarily due to higher business volumes and higher claims driven by $11 million in catastrophe losses from a hail storm in the Phoenix area and a $16 million reserve increase for higher auto liability claims. In addition, benefits, claims, losses and settlement expenses in 2010 included higher disability income and long-term care insurance claims and higher reserves for UL products with secondary guarantees compared to the prior year.

Amortization of DAC increased $24 million, or 15%, to $183 million for the year ended December 31, 2010 compared to $159 million in the prior year primarily due to updating valuation assumptions and model changes. Amortization of DAC for 2010 included a benefit of $22 million from updating valuation assumptions and model changes compared to a benefit of $55 million in the prior year. The market impact on DAC resulted in a benefit of $10 million in 2010 compared to a benefit of $3 million in the prior year.

Corporate & Other

The following table presents the results of operations of our Corporate & Other segment:

	Years Ended December 31,
	2010								2009
	GAAP			Less: Adjustments(1)		Operating			GAAP			Less: Adjustments(1)			Operating			Operating Change
	(in millions)
Revenues
Net investment income (loss)	$	273		$	294	$	(21	)	$	(57	)	$	2		$	(59	)	$	38		64	%
Other revenues		153			125		28			90			28			62			(34	)	(55	)
Total revenues		426			419		7			33			30			3			4		NM
Banking and deposit interest expense		3			—		3			7			6			1			2		NM
Total net revenues		423			419		4			26			24			2			2		100
Expenses
Distribution expenses		1			—		1			3			—			3			(2	)	(67	)
Interest and debt expense		288			181		107			127			—			127			(20	)	(16	)
General and administrative expense		185			65		120			148			13			135			(15	)	(11	)
Total expenses		474			246		228			278			13			265			(37	)	(14	)
Pretax loss		(51	)		173		(224	)		(252	)		11			(263	)		39		15
Less: Net income attributable to noncontrolling interests		163			163		—			15			15			—			—		—
Pretax loss attributable to Ameriprise Financial	$	(214	)	$	10	$	(224	)	$	(267	)	$	(4	)	$	(263	)	$	39		15	%

NM Not Meaningful.

(1)

Includes revenues and expenses of the CIEs, net realized gains or losses and integration and restructuring charges.

83         

The following table presents the components of the adjustments in the table above:

	Years Ended December 31,
	2010						2009
	CIEs		Other Adjustments(1)		Total Adjustments		CIEs		Other Adjustments(1)			Total Adjustments
	(in millions)
Revenues
Net investment income (loss)	$	275	$	19	$	294	$	2	$	—		$	2
Other revenues		125		—		125		28		—			28
Total revenues		400		19		419		30		—			30
Banking and deposit interest expense		—		—		—		6		—			6
Total net revenues		400		19		419		24		—			24
Expenses
Distribution expenses		—		—		—		—		—			—
Interest and debt expense		181		—		181		—		—			—
General and administrative expense		56		9		65		9		4			13
Total expenses		237		9		246		9		4			13
Pretax loss		163		10		173		15		(4	)		11
Less: Net income attributable to noncontrolling interests		163		—		163		15		—			15
Pretax loss attributable to Ameriprise Financial	$	—	$	10	$	10	$	—	$	(4	)	$	(4	)

(1)

Other adjustments include net realized gains or losses and integration and restructuring charges.

Our Corporate & Other segment pretax loss attributable to Ameriprise Financial was $214 million for the year ended December 31, 2010 compared to $267 million in the prior year. Our Corporate & Other segment pretax operating loss attributable to Ameriprise Financial excludes net realized gains or losses, integration and restructuring charges and the impact of consolidating CIEs. Our Corporate & Other segment pretax operating loss attributable to Ameriprise Financial was $224 million for the year ended December 31, 2010 compared to $263 million in the prior year.

Net revenues increased $397 million to $423 million for the year ended December 31, 2010 compared to $26 million for the prior year primarily reflecting revenues of CIEs. Operating net revenues, which exclude revenues of CIEs and net realized gains or losses, increased $2 million to $4 million for the year ended December 31, 2010.

Net investment income was $273 million for the year ended December 31, 2010 compared to a loss of $57 million in the prior year. Net investment income in 2010 primarily reflects changes in the assets and liabilities of CIEs, primarily debt and underlying syndicated loans. The decrease in operating net investment loss, which excludes revenues of CIEs and net realized gains or losses, reflects lower transfer priced interest income allocated to the Annuities and Protection segments for maintaining excess liquidity.

Other revenues increased $63 million, or 70%, to $153 million for the year ended December 31, 2010, primarily due to an increase in revenues of CIEs. Operating other revenues, which exclude revenues of CIEs, decreased $34 million, or 55%, to $28 million for the year ended December 31, 2010, due to a $58 million gain on the repurchase of certain of our junior notes in 2009 partially offset by a $25 million benefit from the payments related to the Reserve Funds matter in 2010.

Total expenses increased $196 million, or 71%, to $474 million for the year ended December 31, 2010 compared to $278 million for the prior year primarily reflecting expenses of CIEs. Operating expenses, which exclude expenses of CIEs and integration and restructuring charges, decreased $37 million, or 14%, to $228 million for the year ended December 31, 2010 compared to $265 million for the prior year.

Interest and debt expense increased $161 million to $288 million for the year ended December 31, 2010 compared to $127 million for the prior year primarily reflecting interest expense of the CIE debt. Operating interest and debt expense, which excludes interest expense of the CIE debt, decreased $20 million, or 16%, to $107 million for the year ended December 31, 2010 compared to $127 million for the prior year primarily due to an expense of $13 million in 2009 related to the early retirement of $450 million of our senior notes due 2010.

General and administrative expense increased $37 million, or 25%, to $185 million for the year ended December 31, 2010 compared to $148 million for the prior year. Operating general and administrative expense, which excludes expenses of the CIEs and integration and restructuring charges, decreased $15 million, or 11%, to $120 million for the year ended December 31, 2010 compared to $135 million for the prior year.

         84

Fair Value Measurements

We report certain assets and liabilities at fair value; specifically, separate account assets, derivatives, embedded derivatives, properties held by our consolidated property funds, and most investments and cash equivalents. Fair value assumes the exchange of assets or liabilities occurs in orderly transactions. Companies are not permitted to use market prices that are the result of a forced liquidation or distressed sale. We include actual market prices, or observable inputs, in our fair value measurements to the extent available. Non-binding broker quotes are obtained when quotes from third party pricing services are not available. We validate prices obtained from third parties through a variety of means as described in Note 14 to our Consolidated Financial Statements.

Non-Agency Residential Mortgage Backed Securities Backed by Sub-prime, Alt-A or Prime Collateral

Sub-prime mortgage lending is the origination of residential mortgage loans to customers with weak credit profiles. Alt-A mortgage lending is the origination of residential mortgage loans to customers who have credit ratings above sub-prime but may not conform to government-sponsored standards. Prime mortgage lending is the origination of residential mortgage loans to customers with good credit profiles. We have exposure to each of these types of loans predominantly through mortgage backed and asset backed securities. The slowdown in the U.S. housing market, combined with relaxed underwriting standards by some originators, has led to higher delinquency and loss rates for some of these investments. Persistent market conditions have increased the likelihood of other-than-temporary impairments for certain non-agency residential mortgage backed securities. As a part of our risk management process, an internal rating system is used in conjunction with market data as the basis of analysis to assess the likelihood that we will not receive all contractual principal and interest payments for these investments. For the investments that are more at risk for impairment, we perform our own assessment of projected cash flows incorporating assumptions about default rates, prepayment speeds and loss severity to determine if an other-than-temporary impairment should be recognized.

The following table presents, as of December 31, 2011, our non-agency residential mortgage backed and asset backed securities backed by sub-prime, Alt-A or prime mortgage loans by credit rating and vintage year:

	AAA				AA				A				BBB				BB & Below				Total
	Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(in millions)
Sub-prime
2003 & prior	$	5	$	5	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	5	$	5
2004		20		18		2		2		5		5		—		—		14		10		41		35
2005		41		40		36		33		10		10		—		—		28		23		115		106
2006		41		40		—		—		—		—		4		4		42		29		87		73
2007		15		14		—		—		—		—		2		2		5		1		22		17
2008		—		—		6		5		—		—		—		—		—		—		6		5
Re-Remic(1)		10		10		—		—		3		3		27		26		—		—		40		39
Total Sub-prime	$	132	$	127	$	44	$	40	$	18	$	18	$	33	$	32	$	89	$	63	$	316	$	280
Alt-A
2003 & prior	$	1	$	1	$	11	$	12	$	—	$	—	$	3	$	3	$	—	$	—	$	15	$	16
2004		—		—		11		10		16		17		53		46		31		22		111		95
2005		—		—		—		—		1		1		9		7		262		176		272		184
2006		—		—		—		—		—		—		—		—		114		74		114		74
2007		—		—		—		—		—		—		—		—		168		94		168		94
2008		—		—		—		—		—		—		—		—		—		—		—		—
2009		—		—		—		—		—		—		—		—		—		—		—		—
2010		67		66		—		—		—		—		—		—		—		—		67		66
Re-Remic(1)		180		178		—		—		3		3		7		7		—		—		190		188
Total Alt-A	$	248	$	245	$	22	$	22	$	20	$	21	$	72	$	63	$	575	$	366	$	937	$	717
Prime
2003 & prior	$	107	$	110	$	43	$	42	$	109	$	105	$	10	$	10	$	—	$	—	$	269	$	267
2004		17		17		56		53		23		22		30		27		62		44		188		163
2005		—		—		3		3		18		19		6		6		221		182		248		210
2006		—		—		—		—		14		15		—		—		32		31		46		46
2007		—		—		—		—		27		25		—		—		31		28		58		53
Re-Remic(1)		1,664		1,734		255		266		238		241		—		—		9		16		2,166		2,257
Total Prime	$	1,788	$	1,861	$	357	$	364	$	429	$	427	$	46	$	43	$	355	$	301	$	2,975	$	2,996
Grand Total	$	2,168	$	2,233	$	423	$	426	$	467	$	466	$	151	$	138	$	1,019	$	730	$	4,228	$	3,993

(1)

Re-Remics of mortgage backed securities are prior vintages with cash flows structured into senior and subordinated bonds. Credit enhancement has been increased through the Re-Remic process on the securities we own.

85         

European Exposure

The following table presents, as of December 31, 2011, our exposure to European debt by country segregated between sovereign and non-sovereign (financial and non-financial corporate debt) exposure:

	Sovereign				Financials				Non-Financials				Total
	Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value		% of Invested Assets(1)
	(in millions, except percentage)
Greece	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—		0.0	%
Italy		—		—		—		—		117		114		117		114		0.3	%
Ireland		—		—		—		—		40		39		40		39		0.1	%
Portugal		—		—		—		—		—		—		—		—		0.0	%
Spain		—		—		—		—		134		130		134		130		0.3	%
Subtotal		—		—		—		—		291		283		291		283		0.7	%
Other European exposure		30		31		420		387		938		1,004		1,388		1,422		3.4	%
Total	$	30	$	31	$	420	$	387	$	1,229	$	1,287	$	1,679	$	1,705		4.1	%

(1)

Invested assets include cash and cash equivalents and investments.

The non-financial corporate debt holdings in Greece, Italy, Ireland, Portugal and Spain are primarily in utilities/telecommunications. The non-financial corporate debt holdings in other European countries are multinational companies concentrated in utilities and non-cyclical industrials. We have no exposure to deeply subordinated instruments. We do not hedge our European exposure and we have no unfunded commitments related to our European debt holdings as of December 31, 2011.

Fair Value of Liabilities and Nonperformance Risk

Companies are required to measure the fair value of liabilities at the price that would be received to transfer the liability to a market participant (an exit price). Since there is not a market for our obligations of our variable annuity riders, we consider the assumptions participants in a hypothetical market would make to reflect an exit price. As a result, we adjust the valuation of variable annuity riders by updating certain contractholder assumptions, adding explicit margins to provide for profit, risk and expenses, and adjusting the rates used to discount expected cash flows to reflect a current market estimate of our nonperformance risk. The nonperformance risk adjustment is based on non-binding broker quotes for credit default swaps that are adjusted to estimate the risk of our life insurance company subsidiaries not fulfilling these liabilities. Consistent with general market conditions, this estimate resulted in a spread over the LIBOR swap curve as of December 31, 2011. As our estimate of this spread widens or tightens, the liability will decrease or increase. If this nonperformance credit spread moves to a zero spread over the LIBOR swap curve, the reduction to net income would be approximately $226 million, net of DAC and DSIC amortization and income taxes, based on December 31, 2011 credit spreads.

Liquidity and Capital Resources

Overview

We maintained substantial liquidity during the year ended December 31, 2011. At both December 31, 2011 and 2010, we had $2.8 billion in cash and cash equivalents. We have additional liquidity available through an unsecured revolving credit facility for up to $500 million that expires in November 2015. Under the terms of the underlying credit agreement, we can increase this facility to $750 million upon satisfaction of certain approval requirements. Available borrowings under this facility are reduced by any outstanding letters of credit. We have had no borrowings under this credit facility and had $2 million of outstanding letters of credit at December 31, 2011.

In March 2010, we issued $750 million of 5.30% senior notes due 2020. A portion of the proceeds was used to retire $340 million of debt that matured in November 2010. On April 30, 2010, we closed on the Columbia Management Acquisition and paid $866 million in the second quarter with cash on hand and assumed liabilities of $30 million. Our subsidiaries, Ameriprise Bank, FSB and RiverSource Life Insurance Company ("RiverSource Life"), are members of the Federal Home Loan Bank ("FHLB") of Des Moines, which provides these subsidiaries with access to collateralized borrowings. As of December 31, 2011, we had no borrowings from the FHLB. Beginning in 2010, we entered into repurchase agreements to reduce reinvestment risk from higher levels of expected annuity net cash flows. Repurchase agreements allow us to receive cash to reinvest in longer-duration assets, while paying back the short-term debt with cash flows generated by the fixed income portfolio. The balance of repurchase agreements at December 31, 2011 was $504 million, which is collateralized with agency residential mortgage backed securities and commercial mortgage backed securities from our investment portfolio. We believe cash flows from operating activities, available cash balances and our availability of revolver borrowings will be sufficient to fund our operating liquidity needs.

         86

Dividends from Subsidiaries

Ameriprise Financial is primarily a parent holding company for the operations carried out by our wholly owned subsidiaries. Because of our holding company structure, our ability to meet our cash requirements, including the payment of dividends on our common stock, substantially depends upon the receipt of dividends or return of capital from our subsidiaries, particularly our life insurance subsidiary, RiverSource Life; our face-amount certificate subsidiary, Ameriprise Certificate Company ("ACC"); AMPF Holding Corporation, which is the parent company of our retail introducing broker-dealer subsidiary, Ameriprise Financial Services, Inc. ("AFSI") and our clearing broker-dealer subsidiary, American Enterprise Investment Services Inc. ("AEIS"); our Auto and Home insurance subsidiary, IDS Property Casualty Insurance Company ("IDS Property Casualty"), doing business as Ameriprise Auto & Home Insurance; our transfer agent subsidiary, Columbia Management Investment Services Corp.; our investment advisory company, Columbia Management Investment Advisers, LLC; and Threadneedle. The payment of dividends by many of our subsidiaries is restricted and certain of our subsidiaries are subject to regulatory capital requirements.

Actual capital and regulatory capital requirements for our wholly owned subsidiaries subject to regulatory capital requirements were as follows:

	Actual Capital				Regulatory Capital Requirements
	December 31, 2011		December 31, 2010		December 31, 2011		December 31, 2010
	(in millions)
RiverSource Life(1)(2)	$	3,058	$	3,813	$	619	$	652
RiverSource Life of NY(1)(2)		254		291		41		38
IDS Property Casualty(1)(3)		431		411		148		141
Ameriprise Insurance Company(1)(3)		41		44		2		2
ACC(4)(5)		164		184		151		173
Threadneedle(6)		218		182		170		104
Ameriprise Bank, FSB(7)		402		302		391		294
AFSI(3)(4)		115		119		2		1
Ameriprise Captive Insurance Company(3)		43		38		16		12
Ameriprise Trust Company(3)		44		41		41		40
AEIS(3)(4)		122		115		42		35
Securities America, Inc.(3)(4)(8)		—		2		—		#
RiverSource Distributors, Inc.(3)(4)		27		24		#		#
Columbia Management Investment Distributors, Inc.(3)(4)		30		27		#		#

#

Amounts are less than $1 million.

(1)

Actual capital is determined on a statutory basis.

(2)

Regulatory capital requirement is based on the statutory risk-based capital filing.

(3)

Regulatory capital requirement is based on the applicable regulatory requirement, calculated as of December 31, 2011 and 2010.

(4)

Actual capital is determined on an adjusted GAAP basis.

(5)

ACC is required to hold capital in compliance with the Minnesota Department of Commerce and SEC capital requirements.

(6)

Actual capital and regulatory capital requirements are determined in accordance with U.K. regulatory legislation. The actual capital and the regulatory capital requirements at December 31, 2011 represent management's assessment at September 30, 2011 of the risk based requirements, as specified by FSA regulations and submitted to the FSA in December 2011.

(7)

Ameriprise Bank is required to maintain capital in compliance with the Office of the Comptroller of Currency ("OCC") regulations and policies. Under the Dodd-Frank Wall Street Reform and Consumer Protection Act, the responsibility for the ongoing examination, supervision, and regulation of federal savings associations, including Ameriprise Bank, transferred from the Office of Thrift Supervision to the OCC effective July 21, 2011.

(8)

Securities America was sold in the fourth quarter of 2011.

In addition to the particular regulations restricting dividend payments and establishing subsidiary capitalization requirements, we take into account the overall health of the business, capital levels and risk management considerations in determining a dividend strategy for payments to our company from our subsidiaries, and in deciding to use cash to make capital contributions to our subsidiaries.

During the year ended December 31, 2011, the parent holding company received cash dividends or a return of capital from its subsidiaries of $1.2 billion (including $750 million from RiverSource Life) and contributed cash to its subsidiaries of $128 million. In addition, during the year ended December 31, 2011, RiverSource Life paid an $850 million dividend to the parent holding company consisting of high-quality, short-duration securities. During the year ended December 31, 2010, the parent holding company received cash dividends or a return of capital from its subsidiaries of $912 million (including $500 million from RiverSource Life) and contributed cash to its subsidiaries of $73 million.

87         

The following table presents the dividends that could have been paid within the limitations of the applicable regulatory authorities as further described below, excluding extraordinary dividends for the years ended December 31:

	2011		2010		2009
			(in millions)
RiverSource Life(1)	$	1,200	$	886	$	253
AEIS(2)		—		—		154
ACC(3)		70		171		87
Columbia Management Investment Advisers, LLC		295		191		89
Columbia Management Investment Services Corporation		5		—		3
Threadneedle		82		125		95
Ameriprise Trust Company		1		—		4
Securities America Financial Corporation(4)		—		2		15
AFSI(2)		—		—		78
IDS Property Casualty(5)		40		44		42
Ameriprise Captive Insurance Company		27		26		16
RiverSource Distributors, Inc.		26		23		41
AMPF Holding Corporation(2)		334		282		—
Columbia Management Investment Distributors, Inc.		30		27		13
Total dividend capacity	$	2,110	$	1,777	$	890

(1)

RiverSource Life dividends in excess of statutory unassigned funds require advance notice to the Minnesota Department of Commerce, RiverSource Life's primary regulator, and are subject to potential disapproval. In addition, dividends whose fair market value, together with that of other dividends or distributions made within the preceding 12 months, exceeds the greater of (1) the previous year's statutory net gain from operations or (2) 10% of the previous year-end statutory capital and surplus are referred to as "extraordinary dividends." Extraordinary dividends also require advance notice to the Minnesota Department of Commerce, and are subject to potential disapproval. For dividends exceeding these thresholds, RiverSource Life provided notice to the Minnesota Department of Commerce and received responses indicating that it did not object to the payment of these dividends.

(2)

In 2009, AEIS and AFSI became subsidiaries of AMPF Holding Corporation. For AEIS and AFSI the dividend capacity is based on an internal model used to determine the availability of dividends, while maintaining net capital at a level sufficiently in excess of minimum levels defined by Securities and Exchange Commission rules.

(3)

The dividend capacity for ACC is based on capital held in excess of regulatory requirements.

(4)

Securities America was sold in the fourth quarter of 2011.

(5)

The dividend capacity for IDS Property Casualty is based on the lesser of (1) 10% of the previous year-end capital and surplus or (2) the greater of (a) net income (excluding realized gains) of the previous year or (b) the aggregate net income of the previous three years excluding realized gains less any dividends paid within the first two years of the three-year period. Dividends that, together with the amount of other distributions made within the preceding 12 months, exceed this statutory limitation are referred to as "extraordinary dividends" and require advance notice to the Office of the Commissioner of Insurance of the State of Wisconsin, the primary state regulator of IDS Property Casualty, and are subject to potential disapproval.

The following table presents the cash dividends paid or return of capital to the parent holding company, net of cash capital contributions made by the parent holding company for the following subsidiaries for the years ended December 31:

	2011			2010			2009
	(in millions)
RiverSource Life(1)	$	750		$	500		$	—
Ameriprise Bank, FSB		(71	)		(35	)		(85	)
ACC		57			160			25
Columbia Management Investment Advisers, LLC		250			90			—
Columbia Management Investment Services Corporation		—			—			3
Threadneedle		34			48			49
Ameriprise Trust Company		(3	)		(5	)		—
Securities America Financial Corporation(2)		(10	)		—			—
IDS Property Casualty		—			30			85
Ameriprise Advisor Capital, LLC		(44	)		(33	)		(10	)
AMPF Holding Corporation(3)		140			84			(38	)
Other		—			—			2
Total	$	1,103		$	839		$	31

(1)

In addition, during the year ended December 31, 2011, RiverSource Life paid an $850 million dividend to the parent holding company consisting of high-quality, short-duration securities.

(2)

Securities America was sold in the fourth quarter of 2011.

(3)

In 2009, AEIS and AFSI became subsidiaries of AMPF Holding Corporation. For AEIS and AFSI the dividend capacity is based on an internal model used to determine the availability of dividends, while maintaining net capital at a level sufficiently in excess of minimum levels defined by Securities and Exchange Commission rules.

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Dividends Paid to Shareholders and Share Repurchases

We paid regular quarterly cash dividends to our shareholders totaling $212 million and $183 million for the year ended December 31, 2011 and 2010, respectively. On December 7, 2011, our Board of Directors declared a quarterly cash dividend of $0.28 per common share. The dividend will be paid on February 24, 2012 to our shareholders of record at the close of business on February 10, 2012.

On May 11, 2010, we announced that our board of directors authorized an expenditure of up to $1.5 billion for the repurchase of shares of our common stock through the date of our 2012 annual shareholders meeting. On June 15, 2011, we announced that our Board of Directors authorized an additional expenditure of up to $2.0 billion for the repurchase of shares of our common stock through June 28, 2013. We intend to fund share repurchases through existing working capital, future earnings and other customary financing methods. The share repurchase program does not require the purchase of any minimum number of shares, and depending on market conditions and other factors, these purchases may be commenced or suspended at any time without prior notice. Acquisitions under the share repurchase program may be made in the open market, through privately negotiated transactions or block trades or other means. During the year ended December 31, 2011, we repurchased a total of 27.9 million shares of our common stock at an average price of $52.15 per share. As of December 31, 2011, we had $1.5 billion remaining under our share repurchase authorizations.

In both 2011 and 2010, we extinguished $14 million principal amount of our junior notes due 2066. In the future, we may from time to time seek to retire or purchase additional outstanding debt through cash purchases in the open market, privately negotiated transactions or otherwise, without prior notice. Such repurchases, if any, will depend upon market conditions and other factors. The amounts involved could be material.

Cash Flows

Cash flows of CIEs are reflected in our cash flows provided by (used in) operating activities, investing activities and financing activities. Cash held by CIEs is not available for general use by Ameriprise Financial, nor is Ameriprise Financial cash available for general use by its CIEs. As such, the operating, investing and financing cash flows of the CIEs have no impact to the change in cash and cash equivalents.

Operating Activities

Net cash provided by operating activities for the year ended December 31, 2011 increased $331 million to $2.2 billion compared to $1.8 billion for the year ended December 31, 2010. Net cash provided by operating activities for the year ended December 31, 2011 included a negative impact of $188 million related to CIEs compared to a positive impact of $148 million in the prior year. In 2011, operating cash increased $738 million due to an increase in net cash collateral held related to derivative instruments compared to an increase of $111 million in the prior year. Income taxes paid increased $309 million in 2011 compared to the prior year. Net cash provided by operating activities in 2011 included an increase in cash generated from higher fee revenue, partially offset by higher payments for distribution expenses.

Net cash provided by operating activities for the year ended December 31, 2010 was $1.8 billion compared to net cash used in operating activities of $1.3 billion for the year ended December 31, 2009. Net cash provided by operating activities for the year ended December 31, 2010 included a positive impact of $148 million related to CIEs compared to a negative impact of $453 million in the prior year. In 2009, operating cash flows were reduced by $1.9 billion due to a decrease in net cash collateral held related to derivative instruments compared to an increase of $111 million in 2010. The increase in operating cash compared to the prior year was also driven by higher fee revenue, partially offset by higher advisor compensation.

Investing Activities

Our investing activities primarily relate to our Available-for-Sale investment portfolio. Further, this activity is significantly affected by the net flows of our investment certificate, fixed annuity and UL products reflected in financing activities.

Net cash used in investing activities was $1.1 billion for the year ended December 31, 2011 compared to $734 million for the year ended December 31, 2010. Cash used to purchase Available-for-Sale securities decreased $266 million compared to the prior year and cash proceeds from sales and maturities, sinking fund payments and calls of Available-for-Sale securities decreased $1.8 billion compared to the prior year. We paid cash of $866 million for the Columbia Management Acquisition in 2010 and received cash of $150 million in 2011 for the sale of Securities America.

Net cash used in investing activities decreased $5.6 billion to $734 million for the year ended December 31, 2010 compared to $6.4 billion for the year ended December 31, 2009, primarily due to a $10.3 billion decrease in cash used for purchases of Available-for-Sale securities, partially offset by a $3.6 billion reduction in proceeds from sales and maturities, sinking fund payments and calls of Available-for-Sale securities. We also paid cash of $866 million for the Columbia Management Acquisition in 2010.

89         

Financing Activities

Net cash used in financing activities was $1.1 billion for the year ended December 31, 2011 compared to $1.3 billion for the year ended December 31, 2010. Net cash inflows related to policyholder and contractholder account values were $106 million for the year ended December 31, 2011 compared to net cash outflows of $1.1 billion for the prior year. Net cash outflows related to policyholder and contractholder account values in the prior year included net transfers to separate accounts of $1.3 billion primarily due to the implementation of changes to the Portfolio Navigator program. Cash outflows related to investment certificates and banking time deposits decreased $472 million due to lower maturities, withdrawals and cash surrenders compared to the prior year. Cash provided by other banking deposits increased $368 million compared to the prior year. Net cash inflows related to changes in repurchase agreements decreased $290 million compared to the prior year. Cash proceeds from issuance of debt, net of issuance costs, was $744 million in 2010 compared to nil in 2011. Cash used for the repurchase of common stock increased $913 million for the year ended December 31, 2011 compared to the prior year.

Net cash used in financing activities was $1.3 billion for the year ended December 31, 2010 compared to net cash provided by financing activities of $4.5 billion for the year ended December 31, 2009. Net cash outflows related to policyholder and contractholder account values were $1.1 billion for the year ended December 31, 2010 compared to net cash inflows of $3.1 billion for the prior year primarily due to a decrease in fixed annuity deposits and the transfer of general account assets to separate accounts from the implementation of changes to the Portfolio Navigator program. Proceeds from sales of investment certificates and banking time deposits decreased $1.4 billion compared to the prior year primarily due to the run-off of certificate rate promotions, partially offset by a $1.3 billion decrease in maturities, withdrawals and cash surrenders. Cash provided by other banking deposits decreased $345 million compared to the prior year. Cash received due to issuance of debt, net of repayments, increased $449 million for the year ended December 31, 2010 compared to the prior year. In 2010, net cash received related to repurchase agreements was $397 million. In 2009, we received cash of $869 million from the issuance of common stock. Cash used for the repurchase of common stock increased $571 million for the year ended December 31, 2010 compared to the prior year.

Contractual Commitments

The contractual obligations identified in the table below include both our on and off-balance sheet transactions that represent material expected or contractually committed future obligations. Payments due by period as of December 31, 2011 were as follows:

	Total		2012		2013-2014		2015-2016		2017 and Thereafter
	(in millions)
Balance Sheet:
Long-term debt(1)	$	2,244	$	—	$	—	$	700	$	1,544
Insurance and annuities(2)		48,653		2,582		5,587		5,834		34,650
Investment certificates(3)		2,771		2,554		217		—		—
Deferred premium options(4)		2,531		372		673		561		925
Affordable housing partnerships(5)		267		168		96		1		2
Off-Balance Sheet:
Lease obligations		608		97		171		134		206
Purchase obligations(6)		493		154		188		85		66
Interest on long-term debt(7)		2,273		139		278		233		1,623
Total	$	59,840	$	6,066	$	7,210	$	7,548	$	39,016

(1)

See Note 13 to our Consolidated Financial Statements for more information about our long-term debt.

(2)

These scheduled payments are represented by reserves of approximately $31.2 billion at December 31, 2011 and are based on interest credited, mortality, morbidity, lapse, surrender and premium payment assumptions. Actual payment obligations may differ if experience varies from these assumptions. Separate account liabilities have been excluded as associated contractual obligations would be met by separate account assets.

(3)

The payments due by year are based on contractual term maturities. However, contractholders have the right to redeem the investment certificates earlier and at their discretion subject to surrender charges, if any. Redemptions are most likely to occur in periods of substantial increases in interest rates.

(4)

The fair value of these commitments included on the Consolidated Balance Sheets was $2.4 billion as of December 31, 2011. See Note 15 to our Consolidated Financial Statements for more information about our deferred premium options.

(5)

Affordable housing partnership commitments are related to investments in low income housing tax credit partnerships. Call dates for the obligations presented are either date or event specific. For date specific obligations, the Company is required to fund a specific amount on a stated date provided there are no defaults under the agreement. For event specific obligations, the Company is required to fund a specific amount of its capital commitment when properties in a fund become fully stabilized. For event specific obligations, the estimated call date of these commitments is used in the table above.

(6)

Purchase obligations include the minimum contractual amounts by period under contracts that were in effect at December 31, 2011. Many of the purchase agreements giving rise to these purchase obligations include termination clauses that may require payment of termination fees if the agreements are terminated by the Company without cause prior to their stated expiration; however, the table reflects the amounts to be paid assuming the contracts are not terminated.

(7)

Interest on debt was estimated based on rates in effect as of December 31, 2011.

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In addition to the contractual commitments outlined in the table above, we periodically fund the employees' defined benefit plans. We contributed $72 million and $64 million in 2011 and 2010, respectively, to our pension plans. In 2012, we expect to contribute $46 million to our pension plans and $2 million to our defined benefit postretirement plans. See Note 21 to our Consolidated Financial Statements for additional information.

Total loan funding commitments, which are not included in the table above due to uncertainty with respect to timing of future cash flows, were $2.4 billion at December 31, 2011.

For additional information relating to these contractual commitments, see Note 22 to our Consolidated Financial Statements.

Off-Balance Sheet Arrangements

We provide asset management services to various collateralized debt obligations and other investment products, which are sponsored by us for the investment of client assets in the normal course of business. Certain of these investment entities are considered to be variable interest entities while others are considered to be voting rights entities. We consolidate certain of these investment entities. For entities that we do not consolidate, our maximum exposure to loss is our investment in the entity, which was not material as of December 31, 2011. We have no obligation to provide further financial or other support to these structured investments nor have we provided any support to these structured investments. See Note 4 to our Consolidated Financial Statements for additional information on our arrangements with structured investments.

Forward-Looking Statements

This report contains forward-looking statements that reflect management's plans, estimates and beliefs. Actual results could differ materially from those described in these forward-looking statements. Examples of such forward-looking statements include:

•

statements of the Company's plans, intentions, positioning, expectations, objectives or goals, including those relating to asset flows, mass affluent and affluent client acquisition strategy, client retention and growth of our client base, financial advisor productivity, retention, recruiting and enrollments, acquisition integration, general and administrative costs; consolidated tax rate, return of capital to shareholders, and excess capital position and financial flexibility to capture additional growth opportunities;

•

other statements about future economic performance, the performance of equity markets and interest rate variations and the economic performance of the United States and of global markets; and

•

statements of assumptions underlying such statements.

The words "believe," "expect," "anticipate," "optimistic," "intend," "plan," "aim," "will," "may," "should," "could," "would," "likely," "forecast," "on pace," "project" and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. Forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from such statements.

Such factors include, but are not limited to:

•

changes in the valuations, liquidity and volatility in the interest rate, credit default, equity market, and foreign exchange environments;

•

changes in and the adoption of relevant accounting standards, as well as changes in the litigation and regulatory environment, including ongoing legal proceedings and regulatory actions, the frequency and extent of legal claims threatened or initiated by clients, other persons and regulators, and developments in regulation and legislation, including the rules and regulations implemented or to be implemented in connection with the Dodd-Frank Wall Street Reform and Consumer Protection Act;

•

investment management performance and distribution partner and consumer acceptance of the Company's products;

•

effects of competition in the financial services industry and changes in product distribution mix and distribution channels;

•

changes to the Company's reputation that may arise from employee or affiliated advisor misconduct, legal or regulatory actions, improper management of conflicts of interest or otherwise;

•

the Company's capital structure, including indebtedness, limitations on subsidiaries to pay dividends, and the extent, manner, terms and timing of any share or debt repurchases management may effect as well as the opinions of rating agencies and other analysts and the reactions of market participants or the Company's regulators, advisors, distribution partners or customers in response to any change or prospect of change in any such opinion;

•

changes to the availability of liquidity and the Company's credit capacity that may arise due to shifts in market conditions, the Company's credit ratings and the overall availability of credit;

91         

•

risks of default, capacity constraint or repricing by issuers or guarantors of investments the Company owns or by counterparties to hedge, derivative, insurance or reinsurance arrangements or by manufacturers of products the Company distributes, experience deviations from the Company's assumptions regarding such risks, the evaluations or the prospect of changes in evaluations of any such third parties published by rating agencies or other analysts, and the reactions of other market participants or the Company's regulators, advisors, distribution partners or customers in response to any such evaluation or prospect of changes in evaluation;

•

with respect to VIE pooled investments the Company has determined do not require consolidation under GAAP, the Company's assessment that it does not have the power over the VIE or hold a variable interest in these investments for which the Company has the potential to receive significant benefits or to absorb significant losses;

•

experience deviations from the Company's assumptions regarding morbidity, mortality and persistency in certain annuity and insurance products, or from assumptions regarding market returns assumed in valuing or unlocking DAC and DSIC or market volatility underlying the Company's valuation and hedging of guaranteed living benefit annuity riders; or from assumptions regarding anticipated claims and losses relating to the Company's automobile and home insurance products;

•

changes in capital requirements that may be indicated, required or advised by regulators or rating agencies;

•

the impacts of the Company's efforts to improve distribution economics and to grow third-party distribution of its products;

•

the Company's ability to pursue and complete strategic transactions and initiatives, including acquisitions, divestitures, restructurings, joint ventures and the development of new products and services;

•

the Company's ability to realize the financial, operating and business fundamental benefits or to obtain regulatory approvals regarding integrations we plan for the acquisitions we have completed or may pursue and contract to complete in the future, as well as the amount and timing of integration expenses;

•

the ability and timing to realize savings and other benefits from re-engineering and tax planning;

•

changes in the capital markets and competitive environments induced or resulting from the partial or total ownership or other support by central governments of certain financial services firms or financial assets; and

•

general economic and political factors, including consumer confidence in the economy, the ability and inclination of consumers generally to invest as well as their ability and inclination to invest in financial instruments and products other than cash and cash equivalents, the costs of products and services the Company consumes in the conduct of its business, and applicable legislation and regulation and changes therein, including tax laws, tax treaties, fiscal and central government treasury policy, and policies regarding the financial services industry and publicly-held firms, and regulatory rulings and pronouncements.

Management cautions the reader that the foregoing list of factors is not exhaustive. There may also be other risks that management is unable to predict at this time that may cause actual results to differ materially from those in forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. Management undertakes no obligation to update publicly or revise any forward-looking statements.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk

Our primary market risk exposures are interest rate, equity price, foreign currency exchange rate and credit risk. Equity price and interest rate fluctuations can have a significant impact on our results of operations, primarily due to the effects they have on the asset management and other asset-based fees we earn, the spread income generated on our annuities, banking, brokerage client cash balances, and face amount certificate products and UL insurance products, the value of DAC and DSIC assets, the values of liabilities for guaranteed benefits associated with our variable annuities and the values of derivatives held to hedge these benefits.

The guaranteed benefits associated with our variable annuities are guaranteed minimum withdrawal benefits ("GMWB"), guaranteed minimum accumulation benefits ("GMAB"), guaranteed minimum death benefits ("GMDB") and guaranteed minimum income benefits ("GMIB"). Each of these guaranteed benefits guarantees payouts to the annuity holder under certain specific conditions regardless of the performance of the underlying investment assets.

We continue to utilize a hedging program which attempts to match the sensitivity of the assets with the sensitivity of the liabilities. This approach works with the premise that matched sensitivities will produce a highly effective hedging result. Our comprehensive hedging program focuses mainly on first order sensitivities of assets and liabilities; Equity Market Level (Delta), Interest Rate Level (Rho) and Volatility (Vega). Additionally, various second order sensitivities are managed. We use various index options across the term structure, interest rate swaps and swaptions, total return swaps and futures to

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manage the risk exposures. The exposures are measured and monitored daily, and adjustments to the hedge portfolio are made as necessary.

To evaluate interest rate and equity price risk we perform sensitivity testing which measures the impact on pretax income from the sources listed below for a 12 month period following a hypothetical 100 basis point increase in interest rates or a hypothetical 10% decline in equity prices. The interest rate risk test assumes a sudden 100 basis point parallel shift in the yield curve, with rates then staying at those levels for the next 12 months. The equity price risk test assumes a sudden 10% drop in equity prices, with equity prices then staying at those levels for the next 12 months. In estimating the values of variable annuity riders, equity indexed annuities, stock market certificates and the associated hedge assets, we assumed no change in implied market volatility despite the 10% drop in equity prices.

The following tables present our estimate of the impact on pretax income from these hypothetical market movements as of December 31, 2011:

	Equity Price Exposure to Pretax Income
Equity Price Decline 10%	Before Hedge Impact			Hedge Impact			Net Impact
	(in millions)
Asset-based management and distribution fees(1)	$	(174	)	$	4		$	(170	)
DAC and DSIC amortization(2)(3)		(137	)		—			(137	)
Variable annuity riders:
GMDB and GMIB(3)		(53	)		—			(53	)
GMWB		(148	)		198			50
GMAB		(52	)		68			16
DAC and DSIC amortization(4)		N/A			N/A			(25	)
Total variable annuity riders		(253	)		266			(12	)
Equity indexed annuities		1			(1	)		—
Stock market certificates		2			(2	)		—
Total	$	(561	)	$	267		$	(319	)

	Interest Rate Exposure to Pretax Income
Interest Rate Increase 100 Basis Points	Before Hedge Impact			Hedge Impact			Net Impact
	(in millions)
Asset-based management and distribution fees(1)	$	(36	)	$	—		$	(36	)
Variable annuity riders:
GMWB		544			(580	)		(36	)
GMAB		51			(52	)		(1	)
DAC and DSIC amortization(4)		N/A			N/A			10
Total variable annuity riders		595			(632	)		(27	)
Fixed annuities, fixed portion of variable annuities
and fixed insurance products		22			—			22
Brokerage client cash balances		86			—			86
Flexible savings and other fixed rate savings products		16			—			16
Total	$	683		$	(632	)	$	61

N/A Not Applicable.

(1)

Excludes incentive income which is impacted by market and fund performance during the period and cannot be readily estimated.

(2)

Market impact on DAC and DSIC amortization resulting from lower projected profits.

(3)

In estimating the impact on DAC and DSIC amortization resulting from lower projected profits, we have not changed our assumed equity asset growth rates. This is a significantly more conservative estimate than if we assumed management follows its mean reversion guideline and increased near-term rates to recover the drop in equity values over a five-year period. We make this same conservative assumption in estimating the impact from GMDB and GMIB riders.

(4)

Market impact on DAC and DSIC amortization related to variable annuity riders is modeled net of hedge impact.

The above results compare to an estimated negative net impact to pretax income of $326 million related to a 10% equity price decline and an estimated positive net impact to pretax income of $11 million related to a 100 basis point increase in interest rates as of December 31, 2010. The change in interest rate sensitivity at December 31, 2011 compared to the prior year is primarily due to a decrease in interest rates.

Net impacts shown in the above table from GMWB and GMAB riders result largely from differences between the liability valuation basis and the hedging basis. Liabilities are valued using fair value accounting principles, with key policyholder behavior assumptions loaded to provide risk margins and with discount rates increased to reflect a current market estimate of our risk of nonperformance specific to these liabilities. For variable annuity riders introduced prior to mid-2009, management elected to hedge based on best estimate policyholder behavior assumptions. For riders issued since mid-2009, management has been hedging on a basis that includes risk margins related to policyholder behavior. The nonperformance spread risk is not hedged.

93         

Actual results could differ materially from those illustrated above as they are based on a number of estimates and assumptions. These include assuming that implied market volatility does not change when equity prices fall by 10%, that management does not increase assumed equity asset growth rates to anticipate recovery of the drop in equity values when valuing DAC, DSIC and GMDB and GMIB liability values and that the 100 basis point increase in interest rates is a parallel shift of the yield curve. Furthermore, we have not tried to anticipate changes in client preferences for different types of assets or other changes in client behavior, nor have we tried to anticipate actions management might take to increase revenues or reduce expenses in these scenarios.

The selection of a 100 basis point interest rate increase as well as a 10% equity price decline should not be construed as a prediction of future market events. Impacts of larger or smaller changes in interest rates or equity prices may not be proportional to those shown for a 100 basis point increase in interest rates or a 10% decline in equity prices.

Asset-Based Management and Distribution Fees

We earn asset-based management fees and distribution fees on our assets under management. At December 31, 2011, the value of our assets under management was $527.6 billion. These sources of revenue are subject to both interest rate and equity price risk since the value of these assets and the fees they earn fluctuate inversely with interest rates and directly with equity prices. We do not currently hedge the interest rate or equity price risk of this exposure.

DAC and DSIC Amortization

For annuity and UL products, DAC and DSIC are amortized on the basis of estimated gross profits. Estimated gross profits are a proxy for pretax income prior to the recognition of DAC and DSIC amortization expense. When events occur that reduce or increase current period estimated gross profits, DAC and DSIC amortization expense is typically reduced or increased as well, somewhat mitigating the impact of the event on pretax income.

Variable Annuity Riders

The total contract value of all variable annuities at December 31, 2011 was $62.3 billion compared to $62.6 billion at December 31, 2010. These contract values include GMWB and GMAB contracts which were $27.6 billion and $3.5 billion, respectively, at December 31, 2011, compared to $24.7 billion and $3.5 billion, respectively, at December 31, 2010. At December 31, 2011, reserves for GMWB and GMAB were $1.4 billion and $237 million, respectively, compared to $337 million and $104 million, respectively, at December 31, 2010. The increase in reserves for GMWB and GMAB reflect the changes in economic factors impacting the mark-to-market value of the guarantees and increased volume of business. At December 31, 2011, the reserve for the other variable annuity guaranteed benefits, GMDB and GMIB, was $14 million compared to $13 million at December 31, 2010.

Equity Price Risk — Variable Annuity Riders

The variable annuity guaranteed benefits guarantee payouts to the annuity holder under certain specific conditions regardless of the performance of the investment assets. For this reason, when equity prices decline, the returns from the separate account assets coupled with guaranteed benefit fees from annuity holders may not be sufficient to fund expected payouts. In that case, reserves must be increased with a negative impact to earnings.

The core derivative instruments with which we hedge the equity price risk of our GMWB and GMAB provisions are longer dated put and call derivatives; these core instruments are supplemented with equity futures and total return swaps. See Note 15 to our Consolidated Financial Statements for further information on our derivative instruments.

Interest Rate Risk — Variable Annuity Riders

The GMAB and the non-life contingent benefits associated with the GMWB provisions create embedded derivatives which are carried at fair value separately from the underlying host variable annuity contract. Changes in the fair value of the GMWB and GMAB liabilities are recorded through earnings with fair value calculated based on projected, discounted cash flows over the life of the contract, including projected, discounted benefits and fees. Increases in interest rates reduce the fair value of the GMWB and GMAB liabilities. The GMWB and GMAB interest rate exposure is hedged with a portfolio of longer dated put and call derivatives, interest rate swaps and swaptions. We have entered into interest rate swaps according to risk exposures along maturities, thus creating both fixed rate payor and variable rate payor terms. If interest rates were to increase, we would have to pay more to the swap counterparty, and the fair value of our equity puts would decrease, resulting in a negative impact to our pretax income.

Fixed Annuities, Fixed Portion of Variable Annuities and Fixed Insurance Products

Interest rate exposures arise primarily with respect to the fixed account portion of annuity and insurance products of RiverSource Life companies and their investment portfolios. We guarantee an interest rate to the holders of these products. Premiums and deposits collected from clients are primarily invested in fixed rate securities to fund the client credited rate with the spread between the rate earned from investments and the rate credited to clients recorded as earned income. Client liabilities and investment assets generally differ as it relates to basis, repricing or maturity characteristics. Rates credited to clients' accounts generally reset at shorter intervals than the yield on the underlying

         94

investments. Therefore, in an increasing interest rate environment, higher interest rates are reflected in crediting rates to clients sooner than in rates earned on invested assets resulting in a reduced spread between the two rates, reduced earned income and a negative impact on pretax income. Of the $31.7 billion in future policy benefits and claims on our Consolidated Balance Sheets at December 31, 2011, $29.5 billion related to liabilities created by these products. We do not hedge this exposure.

Brokerage Client Cash Balances

We pay interest on certain brokerage client cash balances and have the ability to reset these rates from time to time based on prevailing economic and business conditions. We earn revenue to fund the interest paid from interest-earning assets or fees from off-balance sheet deposits at FDIC insured institutions, which are indexed to short-term interest rates. In general, the change in interest paid lags the change in revenues earned.

Flexible Savings and Other Fixed Rate Savings Products

We have interest rate risk from our flexible savings and other fixed rate savings products. These products are primarily investment certificates generally ranging in amounts from $1,000 to $1 million with interest crediting rate terms ranging from three to 36 months, as well as other savings products sold through Ameriprise Bank. We guarantee an interest rate to the holders of these products. Payments collected from clients are primarily invested in fixed rate securities to fund the client credited rate with the spread between the rate earned from investments and the rate credited to clients recorded as earned income. Client liabilities and investment assets generally differ as it relates to basis, repricing or maturity characteristics. Rates credited to clients generally reset at shorter intervals than the yield on underlying investments. This exposure is not currently hedged although we monitor our investment strategy and make modifications based on our changing liabilities and the expected interest rate environment. Of the $9.9 billion in customer deposits at December 31, 2011, $2.0 billion related to reserves for our fixed rate certificate products and $4.7 billion related to reserves for our banking products.

Equity Indexed Annuities

Our equity indexed annuity product is a single premium annuity issued with an initial term of seven years. The annuity guarantees the contractholder a minimum return of 3% on 90% of the initial premium or end of prior term accumulation value upon renewal plus a return that is linked to the performance of the S&P 500 Index. The equity-linked return is based on a participation rate initially set at between 50% and 90% of the S&P 500 Index, which is guaranteed for the initial seven-year term when the contract is held to full term. At December 31, 2011, we had $60 million in reserves related to equity indexed annuities. We discontinued new sales of equity indexed annuities in 2007.

Equity Price Risk — Equity Indexed Annuities

The equity-linked return to investors creates equity price risk as the amount credited depends on changes in equity prices. To hedge this exposure, we purchase futures, calls and puts which generate returns to replicate what we must credit to client accounts. In conjunction with purchasing puts we also write puts. Pairing purchased puts with written puts allows us to better match the characteristics of the liability.

Interest Rate Risk — Equity Indexed Annuities

Most of the proceeds received from equity indexed annuities are invested in fixed income securities with the return on those investments intended to fund the 3% guarantee. We earn income from the difference between the return earned on invested assets and the 3% guarantee rate credited to customer accounts. The spread between return earned and amount credited is affected by changes in interest rates.

Indexed Universal Life

In 2011, we began offering IUL insurance. IUL is similar to UL in that it provides life insurance coverage and cash value that increases as a result of credited interest. Also, like UL, there is a minimum guaranteed credited rate of interest. Unlike UL the rate of credited interest above the minimum guarantee is linked to the S&P 500 Index (subject to a cap). At December 31, 2011, we had $7 million in reserves related to the index account of IUL. The equity-linked return to investors creates equity price risk as the amount credited depends on changes in equity prices. To hedge this exposure, a portion of the proceeds from the sale of IUL is used to purchase call spreads which generate returns to replicate what we must credit to client accounts. The estimate of the impact on pretax income for a hypothetical 10% equity market movement as of December 31, 2011 is not material.

Stock Market Certificates

Stock market certificates are purchased for amounts generally from $1,000 to $1 million for terms of 52 weeks which can be extended to a maximum of 20 years. For each term the certificate holder can choose to participate 100% in any percentage increase in the S&P 500 Index up to a maximum return or choose partial participation in any increase in the S&P 500 Index plus a fixed rate of interest guaranteed in advance. If partial participation is selected, the total of equity-linked return and guaranteed rate of interest cannot exceed the maximum return. Reserves for our stock market

95         

certificates are included in customer deposits on our Consolidated Balance Sheets. At December 31, 2011, we had $737 million in reserves related to stock market certificates.

Equity Price Risk — Stock Market Certificates

As with the equity indexed annuities, the equity-linked return to investors creates equity price risk exposure. We seek to minimize this exposure with purchased futures and call spreads that replicate what we must credit to client accounts. This risk continues to be fully hedged.

Interest Rate Risk — Stock Market Certificates

Stock market certificates have some interest rate risk as changes in interest rates affect the fair value of the payout to be made to the certificate holder. This risk is not currently hedged.

Foreign Currency Risk

We have foreign currency risk through our net investment in foreign subsidiaries and our operations in foreign countries. We are primarily exposed to changes in British Pounds ("GBP") related to our net investment in Threadneedle, which was 450 million GBP at December 31, 2011. Our primary exposure related to operations in foreign countries is to the GBP and the Indian Rupee. We monitor the foreign exchange rates that we have exposure to and enter into foreign currency forward contracts to mitigate risk when economically prudent. At December 31, 2011, the notional value of outstanding contracts and our remaining foreign currency risk related to operations in foreign countries were not material.

Interest Rate Risk on External Debt

The stated interest rate on the $2.0 billion of our senior unsecured notes is fixed and the stated interest rate on the $294 million of junior notes is fixed until June 1, 2016. In 2010, we entered into interest rate swap agreements to effectively convert the fixed interest rate on $1.4 billion of the senior unsecured notes to floating interest rates based on six-month LIBOR. We hedged the debt in part to better align the interest expense on debt with the interest earned on cash equivalents held on our Consolidated Balance Sheets. The net interest rate risk of these items is immaterial.

Credit Risk

We are exposed to credit risk within our investment portfolio, including our loan portfolio, and through our derivative and reinsurance activities. Credit risk relates to the uncertainty of an obligor's continued ability to make timely payments in accordance with the contractual terms of the financial instrument or contract. We consider our total potential credit exposure to each counterparty and its affiliates to ensure compliance with pre-established credit guidelines at the time we enter into a transaction which would potentially increase our credit risk. These guidelines and oversight of credit risk are managed through a comprehensive enterprise risk management program that includes members of senior management.

We manage the risk of credit-related losses in the event of nonperformance by counterparties by applying disciplined fundamental credit analysis and underwriting standards, prudently limiting exposures to lower-quality, higher-yielding investments, and diversifying exposures by issuer, industry, region and underlying investment type. We remain exposed to occasional adverse cyclical economic downturns during which default rates may be significantly higher than the long-term historical average used in pricing.

We manage our credit risk related to over-the-counter derivatives by entering into transactions with creditworthy counterparties, maintaining collateral arrangements and through the use of master netting arrangements that provide for a single net payment to be made by one counterparty to another at each due date and upon termination. Generally, our current credit exposure on over-the-counter derivative contracts is limited to a derivative counterparty's net positive fair value of derivative contracts after taking into consideration the existence of netting arrangements and any collateral received. This exposure is monitored and managed to an acceptable threshold level.

Because exchange-traded futures are effected through regulated exchanges and positions are marked to market and generally cash settled on a daily basis, we have minimal exposure to credit-related losses in the event of nonperformance by counterparties to such derivative instruments.

We manage our credit risk related to reinsurance treaties by evaluating the financial condition of reinsurance counterparties prior to entering into new reinsurance treaties. In addition, we regularly evaluate their financial strength during the terms of the treaties. As of December 31, 2011, our largest reinsurance credit risk is related to a long term care coinsurance treaty with life insurance subsidiaries of Genworth Financial, Inc. See Note 7 to our Consolidated Financial Statements for additional information on reinsurance.

         96

Item 8. Financial Statements and Supplementary Data

Consolidated Financial Statements:

Ameriprise Financial, Inc.
Reports of Independent Registered Public Accounting Firms	98
Consolidated Statements of Operations — Years ended December 31, 2011, 2010 and 2009	100
Consolidated Balance Sheets — December 31, 2011 and 2010	101
Consolidated Statements of Cash Flows — Years ended December 31, 2011, 2010 and 2009	102
Consolidated Statements of Equity — Years ended December 31, 2011, 2010 and 2009	103
Notes to Consolidated Financial Statements	104

97         

Report of Independent Registered Public Accounting Firm

To the Board of Directors and Shareholders of Ameriprise Financial, Inc.:

In our opinion, the accompanying consolidated balance sheet and the related consolidated statement of operations, equity, and of cash flows present fairly, in all material respects, the financial position of Ameriprise Financial, Inc. and its subsidiaries (the "Company") at December 31, 2011, and the results of their operations and their cash flows for the year ended December 31, 2011 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2011, based on criteria established in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). The Company's management is responsible for these financial statements, for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in Management's Report on Internal Control over Financial Reporting appearing under Item 9A. Our responsibility is to express opinions on these financial statements and on the Company's internal control over financial reporting based on our integrated audit. We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement and whether effective internal control over financial reporting was maintained in all material respects. Our audit of the financial statements included examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinions.

A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Minneapolis, Minnesota
February 24, 2012

         98

Report of Independent Registered Public Accounting Firm

The Board of Directors and Shareholders of Ameriprise Financial, Inc.

We have audited the accompanying consolidated balance sheet of Ameriprise Financial, Inc. (the Company) as of December 31, 2010, and the related consolidated statements of operations, equity, and cash flows for each of the two years in the period ended December 31, 2010. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated financial position of Ameriprise Financial, Inc. at December 31, 2010, and the consolidated results of its operations and its cash flows for each of the two years in the period ended December 31, 2010, in conformity with U.S. generally accepted accounting principles.

As discussed in Note 3 to the consolidated financial statements, in 2010 the Company adopted new accounting guidance related to the consolidation of variable interest entities. Also, in 2009 the Company adopted new accounting guidance related to the recognition and presentation of other-than-temporary impairments.

As discussed in Note 24 to the consolidated financial statements, the accompanying 2010 and 2009 financial statements have been retrospectively adjusted to reclassify the assets, liabilities and results of operations of a certain subsidiary as discontinued operations.

Minneapolis, Minnesota
February 28, 2011, except for Note 24 (Discontinued Operations), as to which the date is February 24, 2012

99         

Consolidated Statements of Operations
Ameriprise Financial, Inc.

	Years Ended December 31,
	2011			2010			2009
	(in millions, except per share amounts)
Revenues
Management and financial advice fees	$	4,537		$	3,784		$	2,558
Distribution fees		1,573			1,447			1,182
Net investment income		2,046			2,309			1,998
Premiums		1,220			1,179			1,098
Other revenues		863			863			702
Total revenues		10,239			9,582			7,538
Banking and deposit interest expense		47			70			141
Total net revenues		10,192			9,512			7,397
Expenses
Distribution expenses		2,497			2,065			1,462
Interest credited to fixed accounts		853			909			903
Benefits, claims, losses and settlement expenses		1,557			1,750			1,334
Amortization of deferred acquisition costs		618			127			217
Interest and debt expense		317			290			127
General and administrative expense		2,965			2,737			2,434
Total expenses		8,807			7,878			6,477
Income from continuing operations before income tax provision		1,385			1,634			920
Income tax provision		355			350			184
Income from continuing operations		1,030			1,284			736
Income (loss) from discontinued operations, net of tax		(60	)		(24	)		1
Net income		970			1,260			737
Less: Net income (loss) attributable to noncontrolling interests		(106	)		163			15
Net income attributable to Ameriprise Financial	$	1,076		$	1,097		$	722
Earnings per share attributable to Ameriprise Financial, Inc. common shareholders
Basic
Income from continuing operations	$	4.71		$	4.36		$	2.98
Income (loss) from discontinued operations		(0.25	)		(0.10	)		—
Net income	$	4.46		$	4.26		$	2.98
Diluted
Income from continuing operations	$	4.61		$	4.27		$	2.95
Income (loss) from discontinued operations		(0.24	)		(0.09	)		—
Net income	$	4.37		$	4.18		$	2.95
Cash dividends declared per common share	$	1.15		$	0.71		$	0.68
Supplemental Disclosures:
Net investment income:
Net investment income before impairment losses on securities	$	2,080		$	2,346		$	2,091
Total other-than-temporary impairment losses on securities		(76	)		(41	)		(83	)
Portion of loss recognized in other comprehensive income		42			4			(10	)
Net impairment losses recognized in net investment income		(34	)		(37	)		(93	)
Net investment income	$	2,046		$	2,309		$	1,998

See Notes to Consolidated Financial Statements.

         100

Consolidated Balance Sheets
Ameriprise Financial, Inc.

	December 31,
	2011			2010
	(in millions, except share amounts)
Assets
Cash and cash equivalents	$	2,781		$	2,838
Investments		38,775			36,755
Separate account assets		66,780			68,330
Receivables		5,559			4,849
Deferred acquisition costs		4,402			4,619
Restricted and segregated cash and investments		1,793			1,814
Other assets		7,468			4,965
Assets held for sale		—			173
Total assets before consolidated investment entities		127,558			124,343
Consolidated Investment Entities:
Cash		470			472
Investments, at fair value		4,789			5,444
Receivables (includes $39 and $33, respectively, at fair value)		59			60
Other assets, at fair value		1,110			895
Total assets of consolidated investment entities		6,428			6,871
Total assets	$	133,986		$	131,214
Liabilities and Equity
Liabilities:
Future policy benefits and claims	$	31,723		$	30,208
Separate account liabilities		66,780			68,330
Customer deposits		9,850			8,779
Short-term borrowings		504			397
Long-term debt		2,393			2,317
Accounts payable and accrued expenses		1,048			1,112
Other liabilities		5,432			2,983
Liabilities held for sale		—			79
Total liabilities before consolidated investment entities		117,730			114,205
Consolidated Investment Entities:
Debt (includes $4,712 and $5,171, respectively, at fair value)		5,178			5,535
Accounts payable and accrued expenses		17			22
Other liabilities (includes $85 and $154, respectively, at fair value)		100			167
Total liabilities of consolidated investment entities		5,295			5,724
Total liabilities		123,025			119,929
Equity:
Ameriprise Financial, Inc.:
Common shares ($.01 par value; shares authorized, 1,250,000,000; shares issued, 303,757,574 and 301,366,044, respectively)		3			3
Additional paid-in capital		6,237			6,029
Retained earnings		6,983			6,190
Appropriated retained earnings of consolidated investment entities		428			558
Treasury shares, at cost (81,814,591 and 54,668,152 shares, respectively)		(4,034	)		(2,620	)
Accumulated other comprehensive income, net of tax		638			565
Total Ameriprise Financial, Inc. shareholders' equity		10,255			10,725
Noncontrolling interests		706			560
Total equity		10,961			11,285
Total liabilities and equity	$	133,986		$	131,214

See Notes to Consolidated Financial Statements.

101         

Consolidated Statements of Cash Flows
Ameriprise Financial, Inc.

	Years Ended December 31,
	2011			2010			2009
	(in millions)
Cash Flows from Operating Activities
Net income	$	970		$	1,260		$	737
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation, amortization and accretion, net		110			110			120
Deferred income tax expense (benefit)		61			513			(24	)
Share-based compensation		145			158			182
Net realized investment gains		(34	)		(60	)		(163	)
Other-than-temporary impairments and provision for loan losses		43			47			132
Net loss (income) attributable to noncontrolling interests		106			(163	)		(15	)
Changes in operating assets and liabilities before consolidated investment entities:
Restricted and segregated cash and investments		(11	)		(186	)		245
Deferred acquisition costs		126			(398	)		(403	)
Other investments, net		48			2			301
Future policy benefits and claims, net		(28	)		383			105
Receivables		(260	)		(441	)		(186	)
Brokerage deposits		225			222			(94	)
Accounts payable and accrued expenses		(80	)		195			26
Derivatives collateral, net		738			111			(1,914	)
Other, net		207			(54	)		86
Changes in operating assets and liabilities of consolidated investment entities, net		(188	)		148			(453	)
Net cash provided by (used in) operating activities		2,178			1,847			(1,318	)
Cash Flows from Investing Activities
Available-for-Sale securities:
Proceeds from sales		888			1,519			5,630
Maturities, sinking fund payments and calls		5,206			6,404			5,855
Purchases		(7,236	)		(7,502	)		(17,815	)
Proceeds from sales, maturities and repayments of commercial mortgage loans		224			226			294
Funding of commercial mortgage loans		(238	)		(154	)		(104	)
Proceeds from sales of other investments		360			189			75
Purchase of other investments		(422	)		(102	)		(14	)
Purchase of investments by consolidated investment entities		(2,871	)		(1,935	)		—
Proceeds from sales, maturities and repayments of investments by consolidated investment entities		3,399			2,005			—
Purchase of land, buildings, equipment and software		(250	)		(131	)		(83	)
Acquisitions		—			(866	)		—
Proceeds from sale of business		150			—			—
Change in consumer banking loans and credit card receivables, net		(349	)		(372	)		(218	)
Other, net		(7	)		(15	)		7
Net cash used in investing activities		(1,146	)		(734	)		(6,373	)
Cash Flows from Financing Activities
Investment certificates and banking time deposits:
Proceeds from additions	$	873		$	1,029		$	2,411
Maturities, withdrawals and cash surrenders		(1,243	)		(1,871	)		(3,177	)
Change in other banking deposits		1,210			842			1,187
Policyholder and contractholder account values:
Consideration received		1,378			1,593			4,863
Net transfers from (to) separate accounts		39			(1,337	)		195
Surrenders and other benefits		(1,311	)		(1,338	)		(1,923	)
Deferred premium options, net		(254	)		(182	)		(82	)
Proceeds from issuance of common stock		—			—			869
Issuance of debt, net of issuance costs		—			744			491
Repayments of debt		(20	)		(354	)		(550	)
Change in short-term borrowings, net		107			397			—
Dividends paid to shareholders		(212	)		(183	)		(164	)
Repurchase of common shares		(1,495	)		(582	)		(11	)
Exercise of stock options		66			113			6
Excess tax benefits from share-based compensation		90			9			12
Borrowings by consolidated investment entities		163			163			234
Repayments of debt by consolidated investment entities		(603	)		(287	)		—
Noncontrolling interests investments in subsidiaries		155			77			231
Distributions to noncontrolling interests		(54	)		(171	)		(45	)
Other, net		—			(5	)		(2	)
Net cash provided by (used in) financing activities		(1,111	)		(1,343	)		4,545
Effect of exchange rate changes on cash		(1	)		(6	)		15
Net decrease in cash and cash equivalents(1)		(80	)		(236	)		(3,131	)
Cash and cash equivalents at beginning of period(1)		2,861			3,097			6,228
Cash and cash equivalents at end of period(1)	$	2,781		$	2,861		$	3,097
Supplemental Disclosures:
Interest paid before consolidated investment entities	$	201		$	231		$	251
Income taxes paid, net		370			61			98
Non-cash investing activity:
Affordable housing partnership commitments not yet remitted		137			188			—
Non-cash financing activity:
Dividends declared but not paid		62			—			—

(1)

Cash and cash equivalents includes cash held for sale. See Note 24 for additional information.

See Notes to Consolidated Financial Statements.

         102

Consolidated Statements of Equity
Ameriprise Financial, Inc.

	Ameriprise Financial, Inc.
	Number of Outstanding Shares			Common Shares		Additional Paid-In Capital		Retained Earnings			Appropriated Retained Earnings of Consolidated Investment Entities			Treasury Shares			Accumulated Other Comprehensive Income (Loss)			Non- controlling Interests			Total
	(in millions, except share data)
Balances at January 1, 2009		216,510,699		$	3	$	4,688	$	4,586		$	—		$	(2,012	)	$	(1,091	)	$	289		$	6,463
Change in accounting principles, net of tax		—			—		—		132			—			—			(132	)		—			—
Comprehensive income:
Net income		—			—		—		722			—			—			—			15			737
Other comprehensive income, net of tax:
Change in net unrealized securities losses		—			—		—		—			—			—			1,354			—			1,354
Change in noncredit related impairments on securities and net unrealized securities losses on previously impaired securities		—			—		—		—			—			—			49			—			49
Change in net unrealized derivatives losses		—			—		—		—			—			—			11			—			11
Change in defined benefit plans		—			—		—		—			—			—			19			—			19
Foreign currency translation adjustment		—			—		—		—			—			—			55			22			77
Total comprehensive income																								2,247
Issuance of common stock		36,000,000			—		869		—			—			—			—			—			869
Dividends to shareholders		—			—		—		(164	)		—			—			—			—			(164	)
Noncontrolling interests investments in subsidiaries		—			—		—		—			—			—			—			322			322
Distributions to noncontrolling interests		—			—		—		—			—			—			—			(45	)		(45	)
Repurchase of common shares		(822,166	)		—		—		—			—			(11	)		—			—			(11	)
Share-based compensation plans		3,406,958			—		191		—			—			—			—			—			191
Balances at December 31, 2009		255,095,491			3		5,748		5,276			—			(2,023	)		265			603			9,872
Change in accounting principles		—			—		—		—			473			—			—			—			473
Comprehensive income:
Net income		—			—		—		1,097			—			—			—			163			1,260
Net income reclassified to appropriated retained earnings		—			—		—		—			85			—			—			(85	)		—
Other comprehensive income, net of tax:
Change in net unrealized securities gains		—			—		—		—			—			—			288			—			288
Change in noncredit related impairments on securities and net unrealized securities losses on previously impaired securities		—			—		—		—			—			—			17			—			17
Change in net unrealized derivatives gains		—			—		—		—			—			—			15			—			15
Change in defined benefit plans		—			—		—		—			—			—			(4	)		—			(4	)
Foreign currency translation adjustment		—			—		—		—			—			—			(16	)		(27	)		(43	)
Total comprehensive income																								1,533
Dividends to shareholders		—			—		—		(183	)		—			—			—			—			(183	)
Noncontrolling interests investments in subsidiaries		—			—		—		—			—			—			—			77			77
Distributions to noncontrolling interests		—			—		—		—			—			—			—			(171	)		(171	)
Repurchase of common shares		(13,924,062	)		—		—		—			—			(597	)		—			—			(597	)
Share-based compensation plans		5,526,463			—		281		—			—			—			—			—			281
Balances at December 31, 2010		246,697,892		$	3	$	6,029	$	6,190		$	558		$	(2,620	)	$	565		$	560		$	11,285
Comprehensive income:
Net income (loss)		—			—		—		1,076			—			—			—			(106	)		970
Net loss reclassified to appropriated retained earnings		—			—		—		—			(130	)		—			—			130			—
Other comprehensive income, net of tax:
Change in net unrealized securities gains		—			—		—		—			—			—			164			—			164
Change in noncredit related impairments on securities and net unrealized securities losses on previously impaired securities		—			—		—		—			—			—			(9	)		—			(9	)
Change in net unrealized derivatives gains		—			—		—		—			—			—			(29	)		—			(29	)
Change in defined benefit plans		—			—		—		—			—			—			(51	)		—			(51	)
Foreign currency translation adjustment		—			—		—		—			—			—			(2	)		(8	)		(10	)
Total comprehensive income																								1,035
Dividends to shareholders		—			—		—		(274	)		—			—			—			—			(274	)
Noncontrolling interests investments in subsidiaries		—			—		—		—			—			—			—			155			155
Distributions to noncontrolling interests		—			—		—		—			—			—			—			(54	)		(54	)
Repurchase of common shares		(28,812,873	)		—		—		—			—			(1,495	)		—			—			(1,495	)
Share-based compensation plans		4,057,964			—		208		(9	)		—			81			—			29			309
Balances at December 31, 2011		221,942,983		$	3	$	6,237	$	6,983		$	428		$	(4,034	)	$	638		$	706		$	10,961

See Notes to Consolidated Financial Statements.

103         

Notes to Consolidated Financial Statements

1. 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 its subsidiary, Threadneedle Asset Management Holdings Sàrl ("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"). 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." All intercompany transactions and balances have been eliminated in consolidation. See Note 2 and Note 4 for additional information related to VIEs.

The results of Securities America Financial Corporation and its subsidiaries (collectively, "Securities America") have been presented as discontinued operations for all periods presented and the related assets and liabilities have been classified as held for sale as of December 31, 2010. See Note 24 for additional information on discontinued operations, including the sale of Securities America in the fourth quarter of 2011.

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.

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.

2. Summary of Significant Accounting Policies

Principles of Consolidation

The Company consolidates entities in which it holds a greater than 50% voting interest, or when certain conditions are met for VIEs and limited partnerships. Entities in which the Company exercises significant influence or holds a greater than 20% but less than 50% voting interest are accounted for under the equity method. All other investments that are not reported at fair value as trading or Available-for-Sale securities are accounted for under the cost method where the Company owns less than a 20% voting interest and does not exercise significant influence.

A VIE is an entity that either has equity investors that lack certain essential characteristics of a controlling financial interest (including substantive voting rights, the obligation to absorb the entity's losses, or the rights to receive the entity's returns) or has equity investors that do not provide sufficient financial resources for the entity to support its activities. A VIE is required to be assessed for consolidation under two models:

•

If the VIE is a money market fund or is an investment company, or has the financial characteristics of an investment company, and the following is true:

(i)

the entity does not have an explicit or implicit obligation to fund the investment company's losses; and

(ii)

the investment company is not a securitization entity, asset backed financing entity, or an entity formally considered a qualifying special purpose entity,

then, the VIE will be consolidated by the entity that determines it stands to absorb a majority of the VIE's expected losses or to receive a majority of the VIE's expected residual returns. Examples of entities that are likely to be assessed for consolidation under this framework include hedge funds, property funds, private equity funds and venture capital funds.

•

If the VIE does not meet the criteria above, the VIE will be consolidated by the entity that determines it has both:

(i)

the power to direct the activities of the VIE that most significantly impact the VIE's economic performance; and

(ii)

the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE.

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When determining whether the Company stands to absorb the majority of a VIE's expected losses or receive a majority of a VIE's expected returns, it analyzes the design of the VIE to identify the variable interests it holds. Then the Company quantitatively determines whether its variable interests will absorb a majority of the VIE's variability. If the Company determines it has control over the activities that most significantly impact the economic performance of the VIE and it will absorb a majority of the VIE's expected variability, the Company consolidates the VIE. The calculation of variability is based on an analysis of projected probability-weighted cash flows based on the design of the particular VIE. When determining whether the Company has the power and the obligation to absorb losses or rights to receive benefits from the VIE that could potentially be significant, the Company qualitatively determines if its variable interests meet these criteria. If the Company consolidates a VIE under either scenario, it is referred to as the VIE's primary beneficiary.

The Company consolidates certain limited partnerships that are not VIEs, for which the Company is the general partner and is determined to control the limited partnership. As a general partner, the Company is presumed to control the limited partnership unless the limited partners have the ability to dissolve the partnership or have substantive participating rights.

Foreign Currency Translation

Net assets of foreign subsidiaries, whose functional currency is other than the U.S. dollar, are translated into U.S. dollars based upon exchange rates prevailing at the end of each year. The resulting translation adjustment, along with any related hedge and tax effects, are included in accumulated other comprehensive income (loss). Revenues and expenses are translated at average exchange rates during the year.

Amounts Based on Estimates and Assumptions

Accounting estimates are an integral part of the Consolidated Financial Statements. In part, they are based upon assumptions concerning future events. Among the more significant are those that relate to investment securities valuation and recognition of other-than-temporary impairments, deferred acquisition costs ("DAC") and the corresponding recognition of DAC amortization, derivative instruments and hedging activities, litigation and claims reserves and income taxes and the recognition of deferred tax assets and liabilities. These accounting estimates reflect the best judgment of management and actual results could differ.

Cash and Cash Equivalents

Cash equivalents include time deposits and other highly liquid investments with original maturities of 90 days or less.

Investments

Available-for-Sale Securities

Available-for-Sale securities are carried at fair value with unrealized gains (losses) recorded in accumulated other comprehensive income (loss), net of impacts to DAC, deferred sales inducement costs ("DSIC"), certain benefit reserves and income taxes. Gains and losses are recognized in the Consolidated Statements of Operations upon disposition of the securities.

Effective January 1, 2009, the Company early adopted an accounting standard that significantly changed the Company's accounting policy regarding the timing and amount of other-than-temporary impairments for Available-for-Sale securities as follows. When the fair value of an investment is less than its amortized cost, the Company assesses whether or not: (i) it has the intent to sell the security (made a decision to sell) or (ii) it is more likely than not that the Company will be required to sell the security before its anticipated recovery. If either of these conditions is met, an other-than-temporary impairment is considered to have occurred and the Company must recognize an other-than-temporary impairment for the difference between the investment's amortized cost basis and its fair value through earnings. For securities that do not meet the above criteria, and the Company does not expect to recover a security's amortized cost basis, the security is also considered other-than-temporarily impaired. For these securities, the Company separates the total impairment into the credit loss component and the amount of the loss related to other factors. The amount of the total other-than-temporary impairments related to credit loss is recognized in earnings. The amount of the total other-than-temporary impairments related to other factors is recognized in other comprehensive income (loss), net of impacts to DAC, DSIC, certain benefit reserves and income taxes. For Available-for-Sale securities that have recognized an other-than-temporary impairment through earnings, if through subsequent evaluation there is a sustained increase in the cash flow expected, the difference between the amortized cost basis and the cash flows expected to be collected is accreted as interest income. Subsequent increases and decreases in the fair value of Available-for-Sale securities are included in other comprehensive income (loss). The Company's Consolidated Statements of Equity present all changes in other comprehensive income (loss) associated with Available-for-Sale debt securities that have been other-than-temporarily impaired on a separate line from fair value changes recorded in other comprehensive income (loss) from all other securities.

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The Company provides a supplemental disclosure on the face of its Consolidated Statements of Operations that presents: (i) total other-than-temporary impairment losses recognized during the period and (ii) the portion of other-than-temporary impairment losses recognized in other comprehensive income (loss). The sum of these amounts represents the credit-related portion of other-than-temporary impairments that were recognized in earnings during the period. The portion of other-than-temporary losses recognized in other comprehensive income (loss) includes: (i) the portion of other-than-temporary impairment losses related to factors other than credit recognized during the period and (ii) reclassifications of other-than-temporary impairment losses previously determined to be related to factors other than credit that are determined to be credit-related in the current period. The amount presented on the Consolidated Statements of Operations as the portion of other-than-temporary losses recognized in other comprehensive income (loss) excludes subsequent increases and decreases in the fair value of these securities.

For all securities that are considered temporarily impaired, the Company does not intend to sell these securities (has not made a decision to sell) and it is not more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis. The Company believes that it will collect all principal and interest due on all investments that have amortized cost in excess of fair value that are considered only temporarily impaired.

Factors the Company considers in determining whether declines in the fair value of fixed maturity securities are other-than-temporary include: (i) the extent to which the market value is below amortized cost; (ii) the duration of time in which there has been a significant decline in value; (iii) fundamental analysis of the liquidity, business prospects and overall financial condition of the issuer; and (iv) market events that could impact credit ratings, economic and business climate, litigation and government actions, and similar external business factors. In order to determine the amount of the credit loss component for corporate debt securities considered other-than-temporarily impaired, a best estimate of the present value of cash flows expected to be collected discounted at the security's effective interest rate is compared to the amortized cost basis of the security. The significant inputs to cash flow projections consider potential debt restructuring terms, projected cash flows available to pay creditors and the Company's position in the debtor's overall capital structure.

For structured investments (e.g., residential mortgage backed securities, commercial mortgage backed securities and asset backed securities), the Company also considers factors such as overall deal structure and its position within the structure, quality of underlying collateral, delinquencies and defaults, loss severities, recoveries, prepayments and cumulative loss projections in assessing potential other-than-temporary impairments of these investments. Based upon these factors, securities that have indicators of potential other-than-temporary impairment are subject to detailed review by management. Securities for which declines are considered temporary continue to be carefully monitored by management.

Other Investments

Other investments primarily reflect the Company's interests in affordable housing partnerships, trading securities, seed money investments and syndicated loans. Affordable housing partnerships and seed money investments are accounted for under the equity method. Trading securities primarily include common stocks and trading bonds. Trading securities are carried at fair value with unrealized and realized gains (losses) recorded within net investment income.

Financing Receivables

Commercial Mortgage Loans, Syndicated Loans, and Consumer Bank Loans

Commercial mortgage loans are reflected within investments at amortized cost less the allowance for loan losses. Syndicated loans represent the Company's investment in below investment grade loan syndications. Syndicated loans are reflected in investments at amortized cost less the allowance for loan losses.

The Company provides consumer lending through its banking subsidiary, Ameriprise Bank, FSB ("Ameriprise Bank"). The Company's consumer lending products primarily include home equity lines of credit, first mortgage lines of credit, credit cards and other revolving lines of credit. The loans are reflected in receivables at amortized cost less the allowance for loan losses.

Interest income is accrued on the unpaid principal balances of the loans as earned.

Other Loans

Other loans consist of policy loans and brokerage margin loans. Policy loans include life insurance policy, annuity and investment certificate loans and are reflected within investments at the unpaid principal balance, plus accrued interest. When originated, the loan balances do not exceed the cash surrender value of the underlying products. As there is minimal risk of loss related to policy loans, the Company does not record an allowance for loan losses for policy loans. The Company's broker dealer subsidiaries enter into lending arrangements with clients through the normal course of business, which are primarily based on customer margin levels. These balances are reported at the unpaid principal balance within receivables. The Company monitors the market value of collateral supporting the margin loans and requests additional

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collateral when necessary in order to mitigate the risk of loss. As there is minimal risk of loss related to margin loans, the allowance for loan losses is immaterial.

Nonaccrual Loans

Generally, loans are evaluated for or placed on nonaccrual status when either the collection of interest or principal has become 90 days past due or is otherwise considered doubtful of collection. When a loan is placed on nonaccrual status, unpaid accrued interest is reversed. Interest payments received on loans on nonaccrual status are generally applied to principal or in accordance with the loan agreement unless the remaining principal balance has been determined to be fully collectible.

Revolving unsecured consumer lines, including credit card loans, are charged off at 180 days past due. Closed-end consumer loans, other than loans secured by one to four family properties, are charged off at 120 days past due and are generally not placed on nonaccrual status. Loans secured by one to four family properties are charged off when management determines the assets are uncollectible and commences foreclosure proceedings on the property, at which time the property is written down to fair value less selling costs and recorded as real estate owned in other assets. Commercial mortgage loans are evaluated for impairment when the loan is considered for nonaccrual status, restructured or foreclosure proceedings are initiated on the property. If it is determined that the fair value is less than the current loan balance, it is written down to fair value less selling costs. Foreclosed property is recorded as real estate owned in other assets. Syndicated loans are placed on nonaccrual status when management determines it will not collect all contractual principal and interest on the loan.

Allowance for Loan Losses

Management determines the adequacy of the allowance for loan losses by portfolio based on the overall loan portfolio composition, recent and historical loss experience, and other pertinent factors, including when applicable, internal risk ratings, loan-to-value ("LTV") ratios, FICO scores of the borrower, debt service coverage and occupancy rates, along with economic and market conditions. This evaluation is inherently subjective as it requires estimates, which may be susceptible to significant change.

The Company determines the amount of the allowance required for certain sectors based on management's assessment of relative risk characteristics of the loan portfolio. The allowance is recorded for homogeneous loan categories on a pool basis, based on an analysis of product mix and risk characteristics of the portfolio, including geographic concentration, bankruptcy experiences, and historical losses, adjusted for current trends and market conditions.

While the Company attributes portions of the allowance to specific loan pools as part of the allowance estimation process, the entire allowance is available to absorb losses inherent in the total loan portfolio. The allowance is increased through provisions charged to net investment income and reduced/increased by net charge-offs/recoveries.

Impaired Loans

The Company considers a loan to be impaired when, based on current information and events, it is probable the Company will not be able to collect all amounts due (both interest and principal) according to the contractual terms of the loan agreement. Impaired loans may also include loans that have been modified in troubled debt restructurings as a concession to borrowers experiencing financial difficulties. Management evaluates for impairment all restructured loans and loans with higher impairment risk factors. The impairment recognized is measured as the excess of the loan's recorded investment over: (i) the present value of its expected principal and interest payments discounted at the loan's effective interest rate, (ii) the fair value of collateral or (iii) the loan's observable market price.

Restructured Loans

A loan is classified as a restructured loan when the Company makes certain concessionary modifications to contractual terms for borrowers experiencing financial difficulties. When the interest rate, minimum payments, and/or due dates have been modified in an attempt to make the loan more affordable to a borrower experiencing financial difficulties, the modification is considered a troubled debt restructuring. Generally, performance prior to the restructuring or significant events that coincide with the restructuring are considered in assessing whether the borrower can meet the new terms which may result in the loan being returned to accrual status at the time of the restructuring or after a performance period. If the borrower's ability to meet the revised payment schedule is not reasonably assured, the loan remains on nonaccrual status.

Separate Account Assets and Liabilities

Separate account assets and liabilities are primarily funds held for the exclusive benefit of variable annuity contractholders and variable life insurance policyholders, who assume the related investment risk. Income and losses on separate account assets accrue directly to the contractholder or policyholder and are not reported in the Company's Consolidated

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Statements of Operations. Separate account assets are recorded at fair value. Changes in the fair value of separate account assets are offset by changes in the related separate account liabilities. The Company receives investment management fees, mortality and expense risk fees, guarantee fees and cost of insurance charges from the related accounts.

Included in separate account liabilities are investment liabilities of Threadneedle which represent the value of the units in issue of the pooled pension funds that are offered by Threadneedle's subsidiary, Threadneedle Pensions Limited.

Restricted and Segregated Cash and Investments

Total restricted cash at December 31, 2011 and 2010 was $79 million and $110 million, respectively, which cannot be utilized for operations. The Company's restricted cash at December 31, 2011 and 2010 was primarily cash held by Threadneedle for the benefit of customers and cash that has been pledged to counterparties. At both December 31, 2011 and 2010, amounts segregated under federal and other regulations were $1.7 billion, segregated in special reserve bank accounts for the exclusive benefit of the Company's brokerage customers.

Land, Buildings, Equipment and Software

Land, buildings, equipment and internally developed or purchased software are carried at cost less accumulated depreciation or amortization and are reflected within other assets. The Company generally uses the straight-line method of depreciation and amortization over periods ranging from three to 30 years. At December 31, 2011 and 2010, land, buildings, equipment and software were $774 million and $693 million, respectively, net of accumulated depreciation of $1.1 billion at both periods. Depreciation and amortization expense for the years ended December 31, 2011, 2010 and 2009 was $143 million, $160 million and $176 million, respectively.

Goodwill and Other Intangible Assets

Goodwill represents the amount of an acquired company's acquisition cost in excess of the fair value of assets acquired and liabilities assumed. The Company evaluates goodwill for impairment annually on the measurement date of July 1 and whenever events and circumstances indicate that an impairment may have occurred, such as a significant adverse change in the business climate or a decision to sell or dispose of a reporting unit. In determining whether impairment has occurred, the Company uses the discounted cash flow method, a variation of the income approach.

Intangible assets are amortized over their estimated useful lives unless they are deemed to have indefinite useful lives. The Company evaluates the definite lived intangible assets remaining useful lives annually and tests for impairment whenever events and circumstances indicate that an impairment may have occurred, such as a significant adverse change in the business climate. For definite lived intangible assets subject to amortization, impairment to fair value is recognized if the carrying amount is not recoverable. Indefinite lived intangibles are also tested for impairment annually or whenever circumstances indicate an impairment may have occurred. Impairment is recognized by the amount carrying value exceeds fair value.

Goodwill and other intangible assets are reflected in other assets.

Derivative Instruments and Hedging Activities

Freestanding derivative instruments are recorded at fair value and are reflected in other assets or other liabilities. The Company's policy is to not offset fair value amounts recognized for derivatives and collateral arrangements executed with the same counterparty under the same master netting arrangement. The accounting for changes in the fair value of a derivative instrument depends on its intended use and the resulting hedge designation, if any. The Company primarily uses derivatives as economic hedges that are not designated as accounting hedges or do not qualify for hedge accounting treatment. The Company occasionally designates derivatives as (i) hedges of changes in the fair value of assets, liabilities, or firm commitments ("fair value hedges"), (ii) hedges of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability ("cash flow hedges"), or (iii) hedges of foreign currency exposures of net investments in foreign operations ("net investment hedges in foreign operations").

Derivative instruments that are entered into for hedging purposes are designated as such at the time the Company enters into the contract. For all derivative instruments that are designated for hedging activities, the Company formally documents all of the hedging relationships between the hedge instruments and the hedged items at the inception of the relationships. Management also formally documents its risk management objectives and strategies for entering into the hedge transactions. The Company formally assesses, at inception and on a quarterly basis, whether derivatives designated as hedges are highly effective in offsetting the fair value or cash flows of hedged items. If it is determined that a derivative is no longer highly effective as a hedge, the Company will discontinue the application of hedge accounting.

For derivative instruments that do not qualify for hedge accounting or are not designated as accounting hedges, changes in fair value are recognized in current period earnings. Changes in fair value of derivatives are presented in the Consolidated

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Statements of Operations based on the nature and use of the instrument. Changes in fair value of derivatives used as economic hedges are presented in the Consolidated Statements of Operations with the corresponding change in the hedged asset or liability.

For derivative instruments that qualify as fair value hedges, changes in the fair value of the derivatives, as well as changes in the fair value of the hedged assets, liabilities or firm commitments, are recognized on a net basis in current period earnings. The carrying value of the hedged item is adjusted for the change in fair value from the designated hedged risk. If a fair value hedge designation is removed or the hedge is terminated prior to maturity, previous adjustments to the carrying value of the hedged item are recognized into earnings over the remaining life of the hedged item.

For derivative instruments that qualify as cash flow hedges, the effective portion of the gain or loss on the derivative instruments is reported in accumulated other comprehensive income (loss) and reclassified into earnings when the hedged item or transaction impacts earnings. The amount that is reclassified into earnings is presented in the Consolidated Statements of Operations with the hedged instrument or transaction impact. Any ineffective portion of the gain or loss is reported in current period earnings as a component of net investment income. If a hedge designation is removed or a hedge is terminated prior to maturity, the amount previously recorded in accumulated other comprehensive income (loss) is reclassified to earnings over the period that the hedged item impacts earnings. For hedge relationships that are discontinued because the forecasted transaction is not expected to occur according to the original strategy, any related amounts previously recorded in accumulated other comprehensive income (loss) are recognized in earnings immediately.

For derivative instruments that qualify as net investment hedges in foreign operations, the effective portion of the change in fair value of the derivatives is recorded in accumulated other comprehensive income (loss) as part of the foreign currency translation adjustment. Any ineffective portion of the net investment hedges in foreign operations is recognized in net investment income during the period of change.

See Note 14 for information regarding the Company's fair value measurement of derivative instruments and Note 15 for the impact of derivatives on the Consolidated Statements of Operations.

The equity component of equity indexed annuity ("EIA"), indexed universal life ("IUL") and stock market certificate obligations are considered embedded derivatives. Additionally, certain annuities contain guaranteed minimum accumulation benefit ("GMAB") and guaranteed minimum withdrawal benefit ("GMWB") provisions. The GMAB and the non-life contingent benefits associated with GMWB provisions are also considered embedded derivatives. The fair value of embedded derivatives associated with annuities and IUL is included in future policy benefits and claims, whereas the fair value of stock market certificate embedded derivatives is included in customer deposits. The changes in the fair value of the EIA and IUL embedded derivatives are reflected in interest credited to fixed accounts. The changes in the fair value of the stock market certificate embedded derivatives are included in banking and deposit interest expense. The changes in the fair value of the GMAB and GMWB embedded derivatives are reflected in benefits, claims, losses and settlement expenses.

Deferred Acquisition Costs

DAC represent the costs of acquiring new business, principally direct sales commissions and other distribution and underwriting costs that have been deferred on the sale of annuity and insurance products and, to a lesser extent, certain mutual fund products. These costs are deferred to the extent they are recoverable from future profits or premiums. The DAC associated with insurance or annuity contracts that are significantly modified or internally replaced with another contract are accounted for as contract terminations. These transactions are anticipated in establishing amortization periods and other valuation assumptions.

Direct sales commissions and other costs deferred as DAC are amortized over time. For annuity and universal life ("UL") contracts, DAC are amortized based on projections of estimated gross profits over amortization periods equal to the approximate life of the business. For other insurance products, DAC are generally amortized as a percentage of premiums over amortization periods equal to the premium-paying period. For certain mutual fund products, DAC are generally amortized over fixed periods on a straight-line basis adjusted for redemptions.

For annuity and UL insurance products, the assumptions made in projecting future results and calculating the DAC balance and DAC amortization expense are management's best estimates. Management is required to update these assumptions whenever it appears that, based on actual experience or other evidence, earlier estimates should be revised. When assumptions are changed, the percentage of estimated gross profits used to amortize DAC might also change. A change in the required amortization percentage is applied retrospectively; an increase in amortization percentage will result in a decrease in the DAC balance and an increase in DAC amortization expense, while a decrease in amortization percentage will result in an increase in the DAC balance and a decrease in DAC amortization expense. The impact on results of operations of changing assumptions can be either positive or negative in any particular period and is reflected in the period in which such changes are made.

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For other life and health insurance products, the assumptions made in calculating the DAC balance and DAC amortization expense are consistent with those used in determining the liabilities and, therefore, are intended to provide for adverse deviations in experience and are revised only if management concludes experience will be so adverse that DAC are not recoverable. If management concludes that DAC are not recoverable, DAC are reduced to the amount that is recoverable based on best estimate assumptions and there is a corresponding expense recorded in the Consolidated Statements of Operations.

For annuity, life and health insurance products, key assumptions underlying those long-term projections include interest rates (both earning rates on invested assets and rates credited to contractholder and policyholder accounts), equity market performance, mortality and morbidity rates and the rates at which policyholders are expected to surrender their contracts, make withdrawals from their contracts and make additional deposits to their contracts. Assumptions about earned and credited interest rates are the primary factors used to project interest margins, while assumptions about equity and bond market performance are the primary factors used to project client asset value growth rates, and assumptions about surrenders, withdrawals and deposits comprise projected persistency rates. Management must also make assumptions to project maintenance expenses associated with servicing the Company's annuity and insurance businesses during the DAC amortization period.

The client asset value growth rates are the rates at which variable annuity and variable universal life ("VUL") insurance contract values invested in separate accounts are assumed to appreciate in the future. The rates used vary by equity and fixed income investments. Management reviews and, where appropriate, adjusts its assumptions with respect to client asset value growth rates on a regular basis. The Company typically uses a five-year mean reversion process as a guideline in setting near-term equity fund growth rates based on a long-term view of financial market performance as well as recent actual performance. The suggested near-term equity fund growth rate is reviewed quarterly to ensure consistency with management's assessment of anticipated equity market performance. DAC amortization expense recorded in a period when client asset value growth rates exceed management's near-term estimate will typically be less than in a period when growth rates fall short of management's near-term estimate.

The Company monitors other principal DAC amortization assumptions, such as persistency, mortality, morbidity, interest margin and maintenance expense levels each quarter and, when assessed independently, each could impact the Company's DAC balances.

The analysis of DAC balances and the corresponding amortization is a dynamic process that considers all relevant factors and assumptions described previously. Unless the Company's management identifies a significant deviation over the course of the quarterly monitoring, management reviews and updates these DAC amortization assumptions annually in the third quarter of each year.

Deferred Sales Inducement Costs

DSIC consist of bonus interest credits and premium credits added to certain annuity contract and insurance policy values. These benefits are capitalized to the extent they are incremental to amounts that would be credited on similar contracts without the applicable feature. The amounts capitalized are amortized using the same methodology and assumptions used to amortize DAC. DSIC is recorded in other assets, and amortization of DSIC is recorded in benefits, claims, losses and settlement expenses.

Reinsurance

The Company cedes significant amounts of insurance risk to other insurers under reinsurance agreements. Reinsurance premiums paid and benefits received are accounted for consistently with the basis used in accounting for the policies from which risk is reinsured and consistently with the terms of the reinsurance contracts. Reinsurance premiums for traditional life, long term care ("LTC"), disability income ("DI") and auto and home ceded on a coinsurance basis, net of the change in any prepaid reinsurance asset, are reported as a reduction of premiums. Fixed and variable universal life reinsurance premiums are reported as a reduction of other revenues. In addition, for fixed and variable universal life insurance policies, the net cost of reinsurance ceded, which represents the discounted amount of the expected cash flows between the reinsurer and the Company, is recognized as an asset and amortized over the term of the reinsurance contract, in proportion to the estimated gross profits and is subject to retrospective adjustment in a manner similar to retrospective adjustment of DAC. The assumptions used to project the expected cash flows are consistent with those used for DAC asset valuation for the same contracts. Changes in the net cost of reinsurance are reflected as a component of other revenues. Reinsurance recoveries are reported as components of benefits, claims, losses and settlement expenses.

Insurance liabilities are reported before the effects of reinsurance. Future policy benefits and claims recoverable under reinsurance contracts are recorded within receivables.

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The Company also assumes life insurance and fixed annuity business from other insurers in limited circumstances. Reinsurance premiums received and benefits paid are accounted for consistently with the basis used in accounting for the policies from which risk is reinsured and consistently with the terms of the reinsurance contracts. Liabilities for assumed business are recorded within future policy benefits and claims.

See Note 7 for additional information on reinsurance.

Future Policy Benefits and Claims

Fixed Annuities and Variable Annuity Guarantees

Future policy benefits and claims related to fixed annuities and variable annuity guarantees include liabilities for fixed account values on fixed and variable deferred annuities, guaranteed benefits associated with variable annuities, equity indexed annuities and fixed annuities in a payout status.

Liabilities for fixed account values on fixed and variable deferred annuities are equal to accumulation values, which are the cumulative gross deposits and credited interest less withdrawals and various charges.

The majority of the variable annuity contracts offered by the Company contain guaranteed minimum death benefit ("GMDB") provisions. When market values of the customer's accounts decline, the death benefit payable on a contract with a GMDB may exceed the contract accumulation value. The Company also offers variable annuities with death benefit provisions that gross up the amount payable by a certain percentage of contract earnings, which are referred to as gain gross-up ("GGU") benefits. In addition, the Company offers contracts containing GMWB and GMAB provisions, and until May 2007, the Company offered contracts containing guaranteed minimum income benefit ("GMIB") provisions.

In determining the liabilities for GMDB, GMIB and the life contingent benefits associated with GMWB, the Company projects these benefits and contract assessments using actuarial models to simulate various equity market scenarios. Significant assumptions made in projecting future benefits and assessments relate to customer asset value growth rates, mortality, persistency and investment margins and are consistent with those used for DAC asset valuation for the same contracts. As with DAC, management reviews and, where appropriate, adjusts its assumptions each quarter. Unless management identifies a material deviation over the course of quarterly monitoring, management reviews and updates these assumptions annually in the third quarter of each year.

The GMDB liability is determined by estimating the expected value of death benefits in excess of the projected contract accumulation value and recognizing the excess over the estimated meaningful life based on expected assessments (e.g., mortality and expense fees, contractual administrative charges and similar fees).

If elected by the contract owner and after a stipulated waiting period from contract issuance, a GMIB guarantees a minimum lifetime annuity based on a specified rate of contract accumulation value growth and predetermined annuity purchase rates. The GMIB liability is determined each period by estimating the expected value of annuitization benefits in excess of the projected contract accumulation value at the date of annuitization and recognizing the excess over the estimated meaningful life based on expected assessments.

The embedded derivatives related to GMAB and the non-life contingent benefits associated with GMWB provisions are recorded at fair value. See Note 14 for information regarding the fair value measurement of embedded derivatives. The liability for the life contingent benefits associated with GMWB provisions is determined in the same way as the GMDB liability. Significant assumptions made in projecting future benefits and fees relate to persistency and benefit utilization. As with DAC, management reviews, and where appropriate, adjusts its assumptions each quarter. Unless management identifies a material deviation over the course of quarterly monitoring, management reviews and updates these assumptions annually in the third quarter of each year. The changes in both the fair values of the GMWB and GMAB embedded derivatives and the liability for life contingent benefits are reflected in benefits, claims, losses and settlement expenses.

Liabilities for equity indexed annuities are equal to the accumulation of host contract values covering guaranteed benefits and the fair value of embedded equity options.

Liabilities for fixed annuities in a benefit or payout status are based on future estimated payments using established industry mortality tables and interest rates.

Life and Health Insurance

Future policy benefits and claims related to life and health insurance include liabilities for fixed account values on fixed and variable universal life policies, liabilities for indexed accounts of IUL products, liabilities for unpaid amounts on reported claims, estimates of benefits payable on claims incurred but not yet reported and estimates of benefits that will become payable on term life, whole life and health insurance policies as claims are incurred in the future.

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Liabilities for fixed account values on fixed and variable universal life insurance are equal to accumulation values. Accumulation values are the cumulative gross deposits and credited interest less various contractual expense and mortality charges and less amounts withdrawn by policyholders.

Liabilities for indexed accounts of IUL products are equal to the accumulation of host contract values covering guaranteed benefits and the fair value of embedded equity options.

A portion of the Company's fixed and variable universal life contracts have product features that result in profits followed by losses from the insurance component of the contract. These profits followed by losses can be generated by the cost structure of the product or secondary guarantees in the contract. The secondary guarantee ensures that, subject to specified conditions, the policy will not terminate and will continue to provide a death benefit even if there is insufficient policy value to cover the monthly deductions and charges.

In determining the liability for contracts with profits followed by losses, the Company projects benefits and contract assessments using actuarial models. Significant assumptions made in projecting future benefits and assessments relate to customer asset value growth rates, mortality, persistency and investment margins and are consistent with those used for DAC asset valuation for the same contracts. As with DAC, management reviews, and where appropriate, adjusts its assumptions each quarter. Unless management identifies a material deviation over the course of quarterly monitoring, management reviews and updates these assumptions annually in the third quarter of each year.

The liability for these future losses is determined by estimating the death benefits in excess of account value and recognizing the excess over the estimated meaningful life based on expected assessments (e.g. cost of insurance charges, contractual administrative charges, similar fees and investment margin). See Note 10 for information regarding the liability for contracts with secondary guarantees.

Liabilities for unpaid amounts on reported life insurance claims are equal to the death benefits payable under the policies. Liabilities for unpaid amounts on reported health insurance claims include any periodic or other benefit amounts due and accrued, along with estimates of the present value of obligations for continuing benefit payments. These amounts are calculated based on claim continuance tables which estimate the likelihood an individual will continue to be eligible for benefits. Present values are calculated at interest rates established when claims are incurred. Anticipated claim continuance rates are based on established industry tables, adjusted as appropriate for the Company's experience.

Liabilities for estimated benefits payable on claims that have been incurred but not yet reported are based on periodic analysis of the actual time lag between when a claim occurs and when it is reported.

Liabilities for estimates of benefits that will become payable on future claims on term life, whole life and health insurance policies are based on the net level premium method, using anticipated premium payments, mortality and morbidity rates, policy persistency and interest rates earned on assets supporting the liability. Anticipated mortality and morbidity rates are based on established industry mortality and morbidity tables, with modifications based on the Company's experience. Anticipated premium payments and persistency rates vary by policy form, issue age, policy duration and certain other pricing factors.

Where applicable, benefit amounts expected to be recoverable from reinsurance companies who share in the risk are separately recorded as reinsurance recoverable within receivables.

Auto and Home Reserves

Auto and home reserves include amounts determined from loss reports on individual claims, as well as amounts based on historical loss experience for losses incurred but not yet reported. Such liabilities are necessarily based on estimates and, while management believes that the reserve amounts were adequate at December 31, 2011 and 2010, the ultimate liability may be in excess of or less than the amounts provided. The Company's methods for making such estimates and for establishing the resulting liabilities are continually reviewed, and any adjustments are reflected in earnings in the period such adjustments are made.

Share-Based Compensation

The Company measures and recognizes the cost of share-based awards granted to employees and directors based on the grant-date fair value of the award and recognizes the expense on a straight-line basis over the vesting period. The fair value of each option is estimated on the grant date using a Black-Scholes option-pricing model. The Company recognizes the cost of share-based awards granted to independent contractors on a fair value basis until the award is fully vested.

Income Taxes

The Company's provision for income taxes represents the net amount of income taxes that the Company expects to pay or to receive from various taxing jurisdictions in connection with its operations. The Company provides for income taxes based on amounts that the Company believes it will ultimately owe taking into account the recognition and measurement for

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uncertain tax positions. Inherent in the provision for income taxes are estimates and judgments regarding the tax treatment of certain items.

In connection with the provision for income taxes, the Consolidated Financial Statements reflect certain amounts related to deferred tax assets and liabilities, which result from temporary differences between the assets and liabilities measured for financial statement purposes versus the assets and liabilities measured for tax return purposes. Included in deferred tax assets are significant capital losses that have been recognized for financial statement purposes but not yet for tax return purposes as well as future deductible capital losses realized for tax return purposes. Under current U.S. federal income tax law, capital losses generally must be used against capital gain income within five years of the year in which the capital losses are recognized for tax purposes.

The Company is required to establish a valuation allowance for any portion of its deferred tax assets that management believes will not be realized. Significant judgment is required in determining if a valuation allowance should be established and the amount of such allowance if required. Factors used in making this determination include estimates relating to the performance of the business including the ability to generate capital gains. Consideration is given to, among other things in making this determination: (i) future taxable income exclusive of reversing temporary differences and carryforwards; (ii) future reversals of existing taxable temporary differences; (iii) taxable income in prior carryback years; and (iv) tax planning strategies. Management may need to identify and implement appropriate planning strategies to ensure its ability to realize deferred tax assets and avoid the establishment of a valuation allowance with respect to such assets. In the opinion of management, it is currently more likely than not that the Company will not realize the full benefit of certain state net operating losses and therefore a valuation allowance of $5 million has been established as of December 31, 2011.

Sources of Revenue

The Company generates revenue from a wide range of investment and insurance products. Principal sources of revenue include management and financial advice fees, distribution fees, net investment income and premiums.

Management and Financial Advice Fees

Management and financial advice fees relate primarily to fees earned from managing mutual funds, separate account and wrap account assets and institutional investments, as well as fees earned from providing financial advice and administrative services (including transfer agent, administration and custodial fees earned from providing services to retail mutual funds). Management and financial advice fees also include mortality and expense risk fees earned on separate account assets.

The Company's management fees are generally accrued daily and collected monthly. A significant portion of the Company's management fees are calculated as a percentage of the fair value of its managed assets. The substantial majority of the Company's managed assets are valued by third party pricing services vendors based upon observable market data. The selection of the Company's third party pricing services vendors and the reliability of their prices are subject to certain governance procedures, such as exception reporting, subsequent transaction testing, and annual due diligence of our vendors, which includes assessing the vendor's valuation qualifications, control environment, analysis of asset-class specific valuation methodologies and understanding of sources of market observable assumptions.

Several of the Company's mutual funds had a performance incentive adjustment ("PIA"). The PIA increased or decreased the level of management fees received based on the specific fund's relative performance as measured against a designated external index. We discontinued the PIA earned by the Company's domestic mutual funds during 2011. The Company recognized PIA revenue monthly on a 12 month rolling performance basis. The Company may also receive performance-based incentive fees from hedge funds or other structured investments that it manages. The annual performance fees for structured investments are recognized as revenue at the time the performance fee is finalized or no longer subject to adjustment. All other performance fees are based on a full contract year and are final at the end of the contract year. Any performance fees received are not subject to repayment or any other clawback provisions. Employee benefit plan and institutional investment management and administration services fees are negotiated and are also generally based on underlying asset values. Fees from financial planning and advice services are recognized when the financial plan is delivered.

Distribution Fees

Distribution fees primarily include point-of-sale fees (such as mutual fund front-end sales loads) and asset-based fees (such as 12b-1 distribution and shareholder service fees) that are generally based on a contractual percentage of assets and recognized when earned. Distribution fees also include amounts received under marketing support arrangements for sales of mutual funds and other companies' products, such as through the Company's wrap accounts, as well as surrender charges on fixed and variable universal life insurance and annuities.

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Net Investment Income

Net investment income primarily includes interest income on fixed maturity securities classified as Available-for-Sale, commercial mortgage loans, policy loans, consumer loans, other investments and cash and cash equivalents; the changes in fair value of trading securities, certain derivatives and certain assets and liabilities of consolidated investment entities; the pro rata share of net income or loss on equity method investments; and realized gains and losses on the sale of securities and charges for other-than-temporary impairments of investments related to credit losses. Interest income is accrued as earned using the effective interest method, which makes an adjustment of the yield for security premiums and discounts on all performing fixed maturity securities classified as Available-for-Sale so that the related security or loan recognizes a constant rate of return on the outstanding balance throughout its term. Realized gains and losses on securities, other than trading securities and equity method investments, are recognized using the specific identification method on a trade date basis.

Premiums

Premiums include premiums on property-casualty insurance, traditional life and health (DI and LTC) insurance and immediate annuities with a life contingent feature. Premiums on auto and home insurance are net of reinsurance premiums and are recognized ratably over the coverage period. Premiums on traditional life and health insurance are net of reinsurance ceded and are recognized as revenue when due.

3. Recent Accounting Pronouncements

Adoption of New Accounting Standards

Receivables

In April 2011, the Financial Accounting Standards Board ("FASB") updated the accounting standards for troubled debt restructurings. The new standard includes indicators that a lender should consider in determining whether a borrower is experiencing financial difficulties and provides clarification for determining whether the lender has granted a concession to the borrower. The standard sets the effective dates for troubled debt restructuring disclosures required by recent guidance on credit quality disclosures. The standard is effective for interim and annual periods beginning on or after June 15, 2011, and is to be applied retrospectively to modifications occurring on or after the beginning of the annual period of adoption. For purposes of measuring impairments of receivables that are considered impaired as a result of applying the new guidance, the standard should be applied prospectively for the interim or annual period beginning on or after June 15, 2011. The Company adopted the standard in the third quarter of 2011. The adoption did not have any effect on the Company's consolidated results of operations and financial condition. See Note 6 for the required disclosures.

Fair Value

In January 2010, the FASB updated the accounting standards related to disclosures on fair value measurements. The standard expands the current disclosure requirements to include additional detail about significant transfers between Levels 1 and 2 within the fair value hierarchy and presents activity in the rollforward of Level 3 activity on a gross basis. The standard also clarifies existing disclosure requirements related to the level of disaggregation to be used for assets and liabilities as well as disclosures on the inputs and valuation techniques used to measure fair value. The standard is effective for interim and annual reporting periods beginning after December 15, 2009, except for the disclosure requirements related to the Level 3 rollforward, which are effective for interim and annual periods beginning after December 15, 2010. The Company adopted the standard in the first quarter of 2010, except for the additional disclosures related to the Level 3 rollforward, which the Company adopted in the first quarter of 2011. The adoption did not have any effect on the Company's consolidated results of operations and financial condition. See Note 4 and Note 14 for the required disclosures.

Consolidation of Variable Interest Entities

In June 2009, the FASB updated the accounting standards related to the consolidation of VIEs. The standard amends the guidance on the determination of the primary beneficiary of a VIE from a quantitative model to a qualitative model and requires additional disclosures about an enterprise's involvement in VIEs. Under the new qualitative model, the primary beneficiary must have both the power to direct the activities of the VIE and the obligation to absorb losses or the right to receive gains that could be potentially significant to the VIE. In February 2010, the FASB amended this guidance to defer application of the consolidation requirements for certain investment funds. The standards are effective for interim and annual reporting periods beginning after November 15, 2009. The Company adopted the standards effective January 1, 2010 and as a result consolidated certain collateralized debt obligations ("CDOs"). At adoption, the Company recorded a $5.5 billion increase to assets and a $5.1 billion increase to liabilities. The difference between the fair value of the assets and liabilities of the CDOs was recorded as a cumulative effect increase of $473 million to appropriated retained earnings of consolidated investment entities. Such amounts are recorded as appropriated retained earnings as the CDO note

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holders, not Ameriprise Financial, ultimately will receive the benefits or absorb the losses associated with the assets and liabilities of the CDOs. Subsequent to the adoption, the net change in fair value of the assets and liabilities of the CDOs will be recorded as net income attributable to noncontrolling interests and as an adjustment to appropriated retained earnings of consolidated investment entities. See Note 4 for additional information related to the application of the amended VIE consolidation model and the required disclosures.

Recognition and Presentation of Other-Than-Temporary Impairments ("OTTI")

In April 2009, the FASB updated the accounting standards for the recognition and presentation of other-than-temporary impairments. The standard amends existing guidance on other-than-temporary impairments for debt securities and requires that the credit portion of other-than-temporary impairments be recorded in earnings and the noncredit portion of losses be recorded in other comprehensive income when the entity does not intend to sell the security and it is more likely than not that the entity will not be required to sell the security prior to recovery of its cost basis. The standard requires separate presentation of both the credit and noncredit portions of other-than-temporary impairments on the financial statements and additional disclosures. This standard is effective for interim and annual reporting periods ending after June 15, 2009, with early adoption permitted for periods ending after March 15, 2009. At the date of adoption, the portion of previously recognized other-than-temporary impairments that represent the noncredit related loss component shall be recognized as a cumulative effect of adoption with an adjustment to the opening balance of retained earnings with a corresponding adjustment to accumulated other comprehensive income. The Company adopted the standard in the first quarter of 2009 and recorded a cumulative effect increase to the opening balance of retained earnings of $132 million, net of DAC and DSIC amortization, certain benefit reserves and income taxes, and a corresponding increase to accumulated other comprehensive loss, net of impacts to DAC and DSIC amortization, certain benefit reserves and income taxes. See Note 5 for the required disclosures.

Future Adoption of New Accounting Standards

Balance Sheet

In December 2011, the FASB updated the accounting standards to require new disclosures about offsetting assets and liabilities. The standard requires an entity to disclose both gross and net information about instruments and transactions eligible for offset in the statement of financial position and instruments and transactions subject to an agreement similar to a master netting arrangement. The standard is effective for interim and annual periods beginning on or after January 1, 2013 on a retrospective basis. The Company is currently evaluating the impact of the standard on its consolidated results of operations and financial condition.

Comprehensive Income

In June 2011, the FASB updated the accounting standards related to the presentation of comprehensive income. The standard requires entities to present all nonowner changes in stockholders' equity either in a single continuous statement of comprehensive income or in two separate but consecutive statements. The amendments do not affect how earnings per share is calculated or presented. The standard is effective for interim and annual periods beginning after December 15, 2011. The standard is to be applied retrospectively. The adoption of the standard will not impact the Company's consolidated results of operations and financial condition.

Fair Value

In May 2011, the FASB updated the accounting standards related to fair value measurement and disclosure requirements. The standard requires entities, for assets and liabilities measured at fair value in the statement of financial position which are Level 3 fair value measurements, to disclose quantitative information about unobservable inputs and assumptions used in the measurements, a description of the valuation processes in place, and a qualitative discussion about the sensitivity of the measurements to changes in unobservable inputs and interrelationships between those inputs if a change in those inputs would result in a significantly different fair value measurement. In addition, the standard requires disclosure of fair value by level within the fair value hierarchy for each class of assets and liabilities not measured at fair value in the statement of financial position but for which the fair value is disclosed. The standard is effective for interim and annual periods beginning on or after December 15, 2011. The adoption of the standard is not expected to have a material impact on the Company's consolidated results of operations and financial condition.

Transfers and Servicing: Reconsideration of Effective Control for Repurchase Agreements

In April 2011, the FASB updated the accounting standards related to accounting for repurchase agreements and other similar agreements. The standard modifies the criteria for determining when these transactions would be accounted for as secured borrowings as opposed to sales. The standard is effective prospectively for new transfers and existing transactions that are modified in the first interim or annual period beginning on or after December 15, 2011. The adoption of the standard is not expected to have a material impact on the Company's consolidated results of operations and financial condition.

115         

Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts

In October 2010, the FASB updated the accounting standards for DAC. Under this new standard, only the following costs incurred in the acquisition of new and renewal insurance contracts would be capitalizable as DAC: (i) incremental direct costs of a successful contract acquisition, (ii) portions of employees' salaries and benefits directly related to time spent performing specified acquisition activities (that is, underwriting, policy issuance and processing, medical and inspection, and sales force contract selling) for a contract that has actually been acquired, (iii) other costs related to the specified acquisition activities that would not have been incurred had the acquisition contract not occurred, and (iv) advertising costs that meet the capitalization criteria in other GAAP guidance for certain direct-response marketing. All other costs are to be expensed as incurred. The Company retrospectively adopted the standard on January 1, 2012. The cumulative effect of the adoption reduced retained earnings by $1.4 billion after-tax at January 1, 2012.

4. Consolidated Investment Entities

The Company provides asset management services to various CDOs and other investment products (collectively, "investment entities"), which are sponsored by the Company for the investment of client assets in the normal course of business. Certain of these investment entities are considered to be VIEs while others are considered to be voting rights entities ("VREs"). The Company consolidates certain of these investment entities.

The CDOs managed by the Company are considered VIEs. These CDOs are asset backed financing entities collateralized by a pool of assets, primarily syndicated loans and, to a lesser extent, high-yield bonds. Multiple tranches of debt securities are issued by a CDO, offering investors various maturity and credit risk characteristics. The debt securities issued by the CDOs are non-recourse to the Company. The CDO's debt holders have recourse only to the assets of the CDO. The assets of the CDOs cannot be used by the Company. Scheduled debt payments are based on the performance of the CDO's collateral pool. The Company generally earns management fees from the CDOs based on the par value of outstanding debt and, in certain instances, may also receive performance-based fees. In the normal course of business, the Company has invested in certain CDOs, generally an insignificant portion of the unrated, junior subordinated debt.

For certain of the CDOs, the Company has determined that consolidation is required as it has power over the CDOs and holds a variable interest in the CDOs for which the Company has the potential to receive significant benefits or the potential obligation to absorb significant losses. For other CDOs managed by the Company, the Company has determined that consolidation is not required as the Company does not hold a variable interest in the CDOs.

The Company provides investment advice and related services to private, pooled investment vehicles organized as limited partnerships, limited liability companies or foreign (non-U.S.) entities. Certain of these pooled investment vehicles are considered VIEs while others are VREs. For investment management services, the Company generally earns management fees based on the market value of assets under management, and in certain instances may also receive performance-based fees. The Company provides seed money occasionally to certain of these funds. For certain of the pooled investment vehicles, the Company has determined that consolidation is required as the Company stands to absorb a majority of the entity's expected losses or receive a majority of the entity's expected residual returns. For other VIE pooled investment vehicles, the Company has determined that consolidation is not required because the Company is not expected to absorb the majority of the expected losses or receive the majority of the expected residual returns. For the pooled investment vehicles which are VREs, the Company consolidates the structure when it has a controlling financial interest.

The Company also provides investment advisory, distribution and other services to the Columbia and Threadneedle mutual fund families. The Company has determined that consolidation is not required for these mutual funds.

In addition, the Company may invest in structured investments including VIEs for which it is not the sponsor. These structured investments typically invest in fixed income instruments and are managed by third parties and include asset backed securities, commercial mortgage backed securities, and residential mortgage backed securities. The Company includes these investments in Available-for-Sale securities. The Company has determined that it is not the primary beneficiary of these structures due to its relative size, position in the capital structure of these entities, and the Company's lack of power over the structures. The Company's maximum exposure to loss as a result of its investment in structured investments that it does not consolidate is limited to its carrying value. The Company has no obligation to provide further financial or other support to these structured investments nor has the Company provided any support to these structured investments. See Note 5 for additional information about these structured investments.

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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, 2011
	Level 1		Level 2		Level 3		Total
	(in millions)
Assets
Investments:
Corporate debt securities	$	—	$	314	$	4	$	318
Common stocks		75		25		13		113
Other structured investments		—		54		—		54
Syndicated loans		—		3,962		342		4,304
Total investments		75		4,355		359		4,789
Receivables		—		39		—		39
Other assets		—		2		1,108		1,110
Total assets at fair value	$	75	$	4,396	$	1,467	$	5,938
Liabilities
Debt	$	—	$	—	$	4,712	$	4,712
Other liabilities		—		85		—		85
Total liabilities at fair value	$	—	$	85	$	4,712	$	4,797

	December 31, 2010
	Level 1		Level 2		Level 3		Total
	(in millions)
Assets
Investments:
Corporate debt securities	$	—	$	418	$	6	$	424
Common stocks		26		53		11		90
Other structured investments		—		39		22		61
Syndicated loans		—		4,867		—		4,867
Trading securities		—		2		—		2
Total investments		26		5,379		39		5,444
Receivables		—		33		—		33
Other assets		—		8		887		895
Total assets at fair value	$	26	$	5,420	$	926	$	6,372
Liabilities
Debt	$	—	$	—	$	5,171	$	5,171
Other liabilities		—		154		—		154
Total liabilities at fair value	$	—	$	154	$	5,171	$	5,325

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:

	Corporate Debt Securities			Common Stocks			Other Structured Investments			Syndicated Loans			Other Assets			Debt
	(in millions)
Balance, January 1, 2011	$	6		$	11		$	22		$	—		$	887		$	(5,171	)
Total gains (losses) included in:
Net income		—			6	(1)		(1)	(1)		(12)	(1)		13	(2)		(89)	(1)
Other comprehensive income		—			—			—			—			(10	)		—
Purchases		3			—			3			208			299			—
Sales		(2	)		(4	)		—			(40	)		(81	)		—
Issues		—			—			—			—			—			(27	)
Settlements		(1	)		—			—			(137	)		1			575
Transfers into Level 3		—			29			—			615			7			—
Transfers out of Level 3		(2	)		(29	)		(24	)		(292	)		(8	)		—
Balance, December 31, 2011	$	4		$	13		$	—		$	342		$	1,108		$	(4,712	)
Changes in unrealized gains (losses) included in income relating to assets and liabilities held at December 31, 2011	$	—		$	3	(1)	$	—		$	(5)	(1)	$	19	(3)	$	(64)	(1)

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(1)

Included in net investment income in the Consolidated Statements of Operations.

(2)

Included in other revenues in the Consolidated Statements of Operations.

(3)

Represents a $20 million gain included in other revenues and a $1 million loss included in net investment income in the Consolidated Statements of Operations.

	Corporate Debt Securities			Common Stocks			Other Structured Investments			Other Assets			Debt
	(in millions)
Balance, January 1, 2010	$	—		$	—		$	—		$	831		$	—
Cumulative effect of accounting change		15			—			5			—			(4,962	)
Total gains (losses) included in:
Net income		—			4	(1)		1	(1)		67	(2)		(339)	(1)
Other comprehensive income		—			—			—			(35	)		—
Purchases, sales, issues and settlements, net		(9	)		—			12			24			130
Transfers into Level 3		—			7			4			—			—
Balance, December 31, 2010	$	6		$	11		$	22		$	887		$	(5,171	)
Changes in unrealized gains (losses) included in income relating to assets and liabilities held at December 31, 2010	$	—		$	4	(1)	$	1	(1)	$	40	(3)	$	(339)	(1)

(1)

Included in net investment income in the Consolidated Statements of Operations.

(2)

Represents a $69 million gain included in other revenues and a $2 million loss included in net investment income in the Consolidated Statements of Operations.

(3)

Represents a $42 million gain included in other revenues and a $2 million loss included in net investment income in the Consolidated Statements of Operations.

Securities transferred from Level 2 to Level 3 represent securities with fair values that are now based on a single non-binding broker quote. Securities transferred from Level 3 to Level 2 represent securities with fair values that are now obtained from a third party pricing service with observable inputs.

The Company has elected the fair value option for the financial assets and liabilities of the consolidated CDOs. Management believes that the use of the fair value option better matches the changes in fair value of assets and liabilities related to the CDOs.

For receivables, certain other assets and other liabilities of the consolidated CDOs, the carrying value approximates fair value as the nature of these assets and liabilities has historically been short term and the receivables have been collectible. The fair value of these assets and liabilities is classified as Level 2. Other liabilities consist primarily of securities purchased but not yet settled held by consolidated CDOs. The fair value of syndicated loans obtained from third party pricing services with multiple non-binding broker quotes as the underlying valuation source is classified as Level 2. The fair value of syndicated loans obtained from third party pricing services with a single non-binding broker quote as the underlying valuation source is classified as Level 3. Prices received from third party pricing services are subjected to exception reporting that identifies loans with significant daily price movements as well as no movements. The Company reviews the exception reporting and resolves the exceptions through reaffirmation of the price or recording an appropriate fair value estimate. The Company also performs subsequent transaction testing. The Company performs annual due diligence of the third party pricing services. The Company's due diligence procedures include assessing the vendor's valuation qualifications, control environment, analysis of asset-class specific valuation methodologies, and understanding of sources of market observable assumptions and unobservable assumptions, if any, employed in the valuation methodology. The Company also considers the results of its exception reporting controls and any resulting price challenges that arise. Other assets consist primarily of properties held in consolidated pooled investment vehicles managed by Threadneedle. The fair value of these properties is determined using discounted cash flows and is calculated by a third party appraisal service. Inputs into the valuation of these properties include: rental cash flows, current occupancy, historical vacancy rates, tenant history and assumptions regarding how quickly the property can be occupied and at what rental rates. The Company also utilizes market comparables obtained from a third party appraisal service in developing its fair value assumptions. Management reviews the discounted cash flows and assumptions to ensure that the valuation was performed in accordance with applicable independence, appraisal and valuation standards. Given the significance of the unobservable inputs to these measurements, these assets are classified as Level 3. The fair value of the CDO's debt is valued using a discounted cash flow methodology. Inputs used to determine the expected cash flows include assumptions about default and recovery rates of the CDO's underlying assets. Given the significance of the unobservable inputs to this fair value measurement, the CDO debt is classified as Level 3. See also Note 14 for a description of the Company's determination of the fair value of other investments.

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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,
	2011			2010
	(in millions)
Syndicated loans
Unpaid principal balance	$	4,548		$	5,107
Excess estimated unpaid principal over fair value		(244	)		(240	)
Fair value	$	4,304		$	4,867
Fair value of loans more than 90 days past due	$	18		$	71
Fair value of loans in nonaccrual status		18			71
Difference between fair value and unpaid principal of loans more than 90 days past due, loans in nonaccrual status or both		16			62
Debt
Unpaid principal balance	$	5,335		$	5,893
Excess estimated unpaid principal over fair value		(623	)		(722	)
Fair value	$	4,712		$	5,171

Interest income from syndicated loans, bonds and structured investments is recorded based on contractual rates in net investment income. Gains and losses related to changes in the fair value of investments and gains and losses on sales of investments are recorded in net investment income. Interest expense on debt is recorded in interest and debt expense with gains and losses related to changes in the fair value of debt recorded in net investment income.

Total net gains (losses) recognized in net investment income related to changes in the fair value of financial assets and liabilities for which the fair value option was elected were $(122) million and $58 million for the years ended December 31, 2011 and 2010, respectively. The majority of the syndicated loans and debt have floating rates; as such, changes in their fair values are primarily attributable to changes in credit spreads.

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

	Carrying Value				Weighted Average Interest Rate
	December 31,				December 31,
	2011		2010		2011			2010
	(in millions)
Debt of consolidated CDOs due 2012-2021	$	4,712	$	5,171		0.9	%		1.0	%
Floating rate revolving credit borrowings due 2014		378		329		3.2			2.9
Floating rate revolving credit borrowings due 2015		88		35		3.0			2.7
Total	$	5,178	$	5,535

The debt of the consolidated CDOs has both fixed and floating interest rates, which range from 0% to 13.2%. The interest rates on the debt of consolidated investment entities are weighted average rates based on the outstanding principal and contractual interest rates. The carrying value of the debt of the consolidated CDOs represents the fair value of the aggregate debt as of December 31, 2011 and 2010. The carrying value of the floating rate revolving credit borrowings represents the outstanding principal amount of debt of certain consolidated pooled investment vehicles managed by Threadneedle. The fair value of this debt was $466 million and $364 million as of December 31, 2011 and 2010, respectively. The consolidated pooled investment vehicles have entered into interest rate swaps and collars to manage the interest rate exposure on the floating rate revolving credit borrowings. The overall effective interest rate reflecting the impact of the derivative contracts was 5.0% and 5.5% as of December 31, 2011 and 2010, respectively.

At December 31, 2011, future maturities of debt were as follows:

	(in millions)
2012	$	—
2013		17
2014		378
2015		88
2016		1,097
Thereafter		4,221
Total future maturities	$	5,801

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5. Investments

The following is a summary of Ameriprise Financial investments:

	December 31,
	2011		2010
	(in millions)
Available-for-Sale securities, at fair value	$	34,505	$	32,619
Commercial mortgage loans, net		2,589		2,577
Policy loans		742		733
Other investments		939		826
Total	$	38,775	$	36,755

The following is a summary of net investment income:

	Year Ended December 31,
	2011			2010			2009
	(in millions)
Investment income on fixed maturities	$	1,881		$	1,920		$	1,878
Net realized gains		6			33			53
Affordable housing partnerships		(32	)		(20	)		(25	)
Other		100			101			90
Consolidated investment entities		91			275			2
Total net investment income	$	2,046		$	2,309		$	1,998

Available-for-Sale securities distributed by type were as follows:

	December 31, 2011
Description of Securities	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Noncredit OTTI(1)
	(in millions)
Corporate debt securities	$	16,380	$	1,741	$	(81	)	$	18,040	$	—
Residential mortgage backed securities		7,440		287		(331	)		7,396		(139	)
Commercial mortgage backed securities		4,430		291		(2	)		4,719		—
Asset backed securities		1,968		61		(44	)		1,985		(15	)
State and municipal obligations		2,026		162		(58	)		2,130		—
U.S. government and agencies obligations		61		10		—			71		—
Foreign government bonds and obligations		126		19		(1	)		144		—
Common stocks		5		4		—			9		—
Other debt obligations		11		—		—			11		—
Total	$	32,447	$	2,575	$	(517	)	$	34,505	$	(154	)

	December 31, 2010
Description of Securities	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Noncredit OTTI(1)
	(in millions)
Corporate debt securities	$	15,433	$	1,231	$	(58	)	$	16,606	$	—
Residential mortgage backed securities		7,213		368		(323	)		7,258		(117	)
Commercial mortgage backed securities		4,583		293		(8	)		4,868		—
Asset backed securities		1,982		78		(40	)		2,020		(16	)
State and municipal obligations		1,666		21		(105	)		1,582		—
U.S. government and agencies obligations		135		8		—			143		—
Foreign government bonds and obligations		91		17		—			108		—
Common stocks		6		4		—			10		—
Other debt obligations		24		—		—			24		—
Total	$	31,133	$	2,020	$	(534	)	$	32,619	$	(133	)

(1)

Represents the amount of other-than-temporary impairment losses in accumulated other comprehensive income. Amount includes unrealized gains and losses on impaired securities subsequent to the initial impairment measurement date. These amounts are included in gross unrealized gains and losses as of the end of the period.

         120

At both December 31, 2011 and 2010, fixed maturity securities comprised approximately 89% of Ameriprise Financial investments. Rating agency designations are based on the availability of ratings from Nationally Recognized Statistical Rating Organizations ("NRSROs"), including Moody's Investors Service ("Moody's"), Standard & Poor's Ratings Services ("S&P") and Fitch Ratings Ltd. ("Fitch"). The Company uses the median of available ratings from Moody's, S&P and Fitch, or, if fewer than three ratings are available, the lower rating is used. When ratings from Moody's, S&P and Fitch are unavailable, the Company may utilize ratings from other NRSROs or rate the securities internally. At both December 31, 2011 and 2010, the Company's internal analysts rated $1.2 billion of securities, using criteria similar to those used by NRSROs. A summary of fixed maturity securities by rating was as follows:

	December 31, 2011							December 31, 2010
Ratings	Amortized Cost		Fair Value		Percent of Total Fair Value			Amortized Cost		Fair Value		Percent of Total Fair Value
	(in millions, except percentages)
AAA	$	11,510	$	12,105		35	%	$	12,142	$	12,809		39	%
AA		1,942		2,087		6			1,843		1,899		6
A		5,012		5,442		16			4,449		4,670		14
BBB		11,818		13,050		38			10,536		11,408		35
Below investment grade		2,160		1,812		5			2,157		1,823		6
Total fixed maturities	$	32,442	$	34,496		100	%	$	31,127	$	32,609		100	%

At December 31, 2011 and 2010, approximately 36% and 29%, respectively, of the securities rated AAA were GNMA, FNMA and FHLMC mortgage backed securities. No holdings of any other issuer were greater than 10% of total equity.

The following tables provide information about Available-for-Sale securities with gross unrealized losses and the length of time that individual securities have been in a continuous unrealized loss position:

	December 31, 2011
	Less than 12 months							12 months or more							Total
Description of Securities	Number of Securities		Fair Value		Unrealized Losses			Number of Securities		Fair Value		Unrealized Losses			Number of Securities		Fair Value		Unrealized Losses
	(in millions, except number of securities)
Corporate debt securities		124	$	1,647	$	(40	)		10	$	259	$	(41	)		134	$	1,906	$	(81	)
Residential mortgage backed securities		105		1,269		(33	)		141		717		(298	)		246		1,986		(331	)
Commercial mortgage backed securities		14		182		(2	)		5		29		—			19		211		(2	)
Asset backed securities		49		543		(11	)		33		155		(33	)		82		698		(44	)
State and municipal obligations		—		—		—			53		229		(58	)		53		229		(58	)
Foreign government bonds and obligations		6		28		(1	)		—		—		—			6		28		(1	)
Total		298	$	3,669	$	(87	)		242	$	1,389	$	(430	)		540	$	5,058	$	(517	)

	December 31, 2010
	Less than 12 months							12 months or more							Total
Description of Securities	Number of Securities		Fair Value		Unrealized Losses			Number of Securities		Fair Value		Unrealized Losses			Number of Securities		Fair Value		Unrealized Losses
	(in millions, except number of securities)
Corporate debt securities		115	$	1,859	$	(46	)		13	$	157	$	(12	)		128	$	2,016	$	(58	)
Residential mortgage backed securities		108		782		(12	)		133		712		(311	)		241		1,494		(323	)
Commercial mortgage backed securities		30		498		(7	)		1		23		(1	)		31		521		(8	)
Asset backed securities		29		354		(8	)		25		123		(32	)		54		477		(40	)
State and municipal obligations		206		696		(31	)		60		232		(74	)		266		928		(105	)
Total		488	$	4,189	$	(104	)		232	$	1,247	$	(430	)		720	$	5,436	$	(534	)

As part of Ameriprise Financial's ongoing monitoring process, management determined that a majority of the gross unrealized losses on its Available-for-Sale securities are attributable to movement in credit spreads.

121         

The following table presents a rollforward of the cumulative amounts recognized in the Consolidated Statements of Operations for other-than-temporary impairments related to credit losses on securities for which a portion of the securities' total other-than-temporary impairments was recognized in other comprehensive income:

	Years Ended December 31,
	2011			2010		2009
	(in millions)
Beginning balance	$	297		$	263	$	258
Credit losses for which an other-than-temporary impairment was not previously recognized		15			15		8
Credit losses for which an other-than-temporary impairment was previously recognized		19			19		57
Reductions for securities sold during the period (realized)		(28	)		—		(60	)
Ending balance	$	303		$	297	$	263

The change in net unrealized securities gains (losses) in other comprehensive income includes three components, net of tax: (i) unrealized gains (losses) that arose from changes in the market value of securities that were held during the period; (ii) (gains) losses that were previously unrealized, but have been recognized in current period net income due to sales of Available-for-Sale securities and due to the reclassification of noncredit other-than-temporary impairment losses to credit losses and (iii) other items primarily consisting of adjustments in asset and liability balances, such as DAC, DSIC, benefit reserves and reinsurance recoverables, to reflect the expected impact on their carrying values had the unrealized gains (losses) been realized as of the respective balance sheet dates.

The following table presents a rollforward of the net unrealized securities gains (losses) on Available-for-Sale securities included in accumulated other comprehensive income (loss):

	Net Unrealized Securities Gains (Losses)			Deferred Income Tax			Accumulated Other Comprehensive Income (Loss) Related to Net Unrealized Securities Gains (Losses)
	(in millions)
Balance at January 1, 2009	$	(1,479	)	$	518		$	(961	)
Cumulative effect of accounting change		(203	)		71			(132	)(1)
Net unrealized securities gains arising during the period(3)		2,792			(977	)		1,815
Reclassification of gains included in net income		(70	)		25			(45	)
Impact of DAC, DSIC, benefit reserves and reinsurance recoverables		(566	)		199			(367	)
Balance at December 31, 2009		474			(164	)		310	(2)
Net unrealized securities gains arising during the period(3)		828			(291	)		537
Reclassification of gains included in net income		(28	)		10			(18	)
Impact of DAC, DSIC, benefit reserves and reinsurance recoverables		(328	)		114			(214	)
Balance at December 31, 2010		946			(331	)		615	(2)
Net unrealized securities gains arising during the period(3)		572			(196	)		376
Impact of DAC, DSIC, benefit reserves and reinsurance recoverables		(340	)		119			(221	)
Balance at December 31, 2011	$	1,178		$	(408	)	$	770	(2)

(1)

Amount represents the cumulative effect of adopting a new accounting standard on January 1, 2009. See Note 3 for additional information on the adoption impact.

(2)

Includes $(75) million, $(66) million and $(84) million of noncredit related impairments on securities and net unrealized securities losses on previously impaired securities at December 31, 2011, 2010 and 2009, respectively.

(3)

Includes other-than-temporary impairment losses on Available-for-Sale securities related to factors other than credit that were recognized in other comprehensive income during the period.

Net realized gains and losses on Available-for-Sale securities, determined using the specific identification method, recognized in earnings were as follows:

	Years Ended December 31,
	2011			2010			2009
	(in millions)
Gross realized gains	$	52		$	72		$	216
Gross realized losses		(18	)		(7	)		(53	)
Other-than-temporary impairments		(34	)		(37	)		(93	)

Other-than-temporary impairments for the years ended December 31, 2011 and 2010 primarily related to credit losses on non-agency residential mortgage backed securities. Other-than-temporary impairments for the year ended December 31,

         122

2009 related to credit losses on non-agency residential mortgage backed securities, corporate debt securities primarily in the financial services and gaming industries and other structured investments.

Available-for-Sale securities by contractual maturity at December 31, 2011 were as follows:

	Amortized Cost		Fair Value
	(in millions)
Due within one year	$	975	$	992
Due after one year through five years		6,544		6,783
Due after five years through 10 years		6,408		7,125
Due after 10 years		4,677		5,496
		18,604		20,396
Residential mortgage backed securities		7,440		7,396
Commercial mortgage backed securities		4,430		4,719
Asset backed securities		1,968		1,985
Common stocks		5		9
Total	$	32,447	$	34,505

Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Residential mortgage backed securities, commercial mortgage backed securities and asset backed securities are not due at a single maturity date. As such, these securities, as well as common and preferred stocks, were not included in the maturities distribution.

6. Financing Receivables

The Company's financing receivables include commercial mortgage loans, syndicated loans, consumer bank loans, policy loans and margin loans. See Note 2 for information regarding the Company's accounting policies related to loans and the allowance for loan losses.

Allowance for Loan Losses

The following tables present a rollforward of the allowance for loan losses for the years ended and the ending balance of the allowance for loan losses by impairment method and type of loan:

	December 31, 2011
	Commercial Mortgage Loans			Syndicated Loans			Consumer Bank Loans			Total
	(in millions)
Beginning balance	$	38		$	10		$	16		$	64
Charge-offs		(2	)		—			(12	)		(14	)
Recoveries		—			—			1			1
Provisions		(1	)		(1	)		11			9
Ending balance	$	35		$	9		$	16		$	60
Individually evaluated for impairment	$	10		$	1		$	1		$	12
Collectively evaluated for impairment		25			8			15			48

	December 31, 2010
	Commercial Mortgage Loans			Syndicated Loans			Consumer Bank Loans			Total
	(in millions)
Beginning balance	$	32		$	26		$	13		$	71
Charge-offs		(2	)		(5	)		(12	)		(19	)
Recoveries		—			—			1			1
Provisions		8			(11	)		14			11
Ending balance	$	38		$	10		$	16		$	64
Individually evaluated for impairment	$	8		$	1		$	2		$	11
Collectively evaluated for impairment		30			9			14			53

123         

The recorded investment in financing receivables by impairment method and type of loan was as follows:

	December 31, 2011
	Commercial Mortgage Loans		Syndicated Loans		Consumer Bank Loans		Total
	(in millions)
Individually evaluated for impairment	$	68	$	5	$	11	$	84
Collectively evaluated for impairment		2,556		359		1,369		4,284
Total	$	2,624	$	364	$	1,380	$	4,368

	December 31, 2010
	Commercial Mortgage Loans		Syndicated Loans		Consumer Bank Loans		Total
	(in millions)
Individually evaluated for impairment	$	75	$	8	$	12	$	95
Collectively evaluated for impairment		2,540		303		1,054		3,897
Total	$	2,615	$	311	$	1,066	$	3,992

As of December 31, 2011 and 2010, the Company's recorded investment in financing receivables individually evaluated for impairment for which there was no related allowance for loan losses was $13 million and $24 million, respectively. Unearned income, unamortized premiums and discounts, and net unamortized deferred fees and costs are not material to the Company's total loan balance.

Purchases and sales of loans were as follows:

	Years Ended December 31,
	2011		2010
	(in millions)
Purchases
Consumer bank loans	$	373	$	283
Syndicated loans		194		59
Total loans purchased	$	567	$	342
Sales
Consumer bank loans	$	209	$	415
Syndicated loans		2		40
Total loans sold	$	211	$	455

The Company has not acquired any loans with deteriorated credit quality as of the acquisition date.

Credit Quality Information

Nonperforming loans, which are generally loans 90 days or more past due, were $20 million and $15 million as of December 31, 2011 and 2010, respectively. All other loans were considered to be performing.

Commercial Mortgage Loans

The Company reviews the credit worthiness of the borrower and the performance of the underlying properties in order to determine the risk of loss on commercial mortgage loans. Based on this review, the commercial mortgage loans are assigned an internal risk rating, which management updates as necessary. Commercial mortgage loans which management has assigned its highest risk rating were 3% of total commercial mortgage loans at both December 31, 2011 and 2010. Loans with the highest risk rating represent distressed loans which the Company has identified as impaired or expects to become delinquent or enter into foreclosure within the next six months. In addition, the Company reviews the concentrations of credit risk by region and property type.

         124

Concentrations of credit risk of commercial mortgage loans by U.S. region were as follows:

	Loans				Percentage
	December 31,				December 31,
	2011		2010		2011			2010
	(in millions)
East North Central	$	252	$	242		10	%		9	%
East South Central		65		66		2			3
Middle Atlantic		223		215		9			8
Mountain		284		301		11			11
New England		141		156		5			6
Pacific		584		541		22			21
South Atlantic		648		625		25			24
West North Central		244		271		9			10
West South Central		183		198		7			8
		2,624		2,615		100	%		100	%
Less: allowance for loan losses		35		38
Total	$	2,589	$	2,577

Concentrations of credit risk of commercial mortgage loans by property type were as follows:

	Loans				Percentage
	December 31,				December 31,
	2011		2010		2011			2010
	(in millions)
Apartments	$	392	$	351		15	%		13	%
Hotel		51		57		2			2
Industrial		480		475		18			18
Mixed Use		42		43		2			2
Office		694		747		26			29
Retail		845		843		32			32
Other		120		99		5			4
		2,624		2,615		100	%		100	%
Less: allowance for loan losses		35		38
Total	$	2,589	$	2,577

Syndicated Loans

The Company's syndicated loan portfolio is diversified across industries and issuers. The primary credit indicator for syndicated loans is whether the loans are performing in accordance with the contractual terms of the syndication. Total nonperforming syndicated loans at both December 31, 2011 and 2010 were $3 million.

Consumer Bank Loans

The Company considers the credit worthiness of borrowers (FICO score), collateral characteristics such as LTV and geographic concentration in determining the allowance for loan losses for residential mortgage loans, credit cards and other consumer bank loans. At a minimum, management updates FICO scores and LTV ratios semiannually.

As of both December 31, 2011 and 2010, approximately 7% of residential mortgage loans and credit cards and other consumer bank loans had FICO scores below 640. At December 31, 2011 and 2010, approximately 2% and 3%, respectively, of the Company's residential mortgage loans had LTV ratios greater than 90%. The Company's most significant geographic concentration for consumer bank loans is in California representing 38% and 33% of the portfolio as of December 31, 2011 and 2010, respectively. No other state represents more than 10% of the total consumer bank loan portfolio.

Troubled Debt Restructurings

During the year ended December 31, 2011 the Company restructured 119 loans with a recorded investment of $52 million as of December 31, 2011. Of the total restructured loans, 11 loans were commercial mortgage loans with a recorded investment of $51 million as of December 31, 2011. The troubled debt restructurings did not have a material impact to the Company's allowance for loan losses or income recognized for the year ended December 31, 2011. There are no material commitments to lend additional funds to borrowers whose loans have been restructured.

125         

7. Reinsurance

Generally, the Company reinsures 90% of the death benefit liability related to almost all individual fixed and variable universal life and term life insurance products. As a result, the Company typically retains and is at risk for, at most, 10% of each policy's death benefit from the first dollar of coverage for new sales of these policies, subject to the reinsurers fulfilling their obligations. The Company began reinsuring risks at this level during 2001 (2002 for RiverSource Life of NY) for term life insurance and 2002 (2003 for RiverSource Life of NY) for individual fixed and variable universal life insurance. Policies issued prior to these dates are not subject to these same reinsurance levels. Generally, the maximum amount of life insurance risk retained by the Company is $1.5 million on a single life and $1.5 million on any flexible premium survivorship life policy. Risk on fixed and variable universal life policies is reinsured on a yearly renewable term basis. Risk on most term life policies starting in 2001 (2002 for RiverSource Life of NY) is reinsured on a coinsurance basis, a type of reinsurance in which the reinsurer participates proportionally in all material risks and premiums associated with a policy.

For existing LTC policies, the Company retained 50% of the risk and ceded the remaining 50% of the risk on a coinsurance basis to subsidiaries of Genworth Financial, Inc. ("Genworth"). For RiverSource Life of NY, this reinsurance arrangement applies for 1996 and later issues only.

Generally, the Company retains at most $5,000 per month of risk per life on DI policies sold on policy forms introduced in most states in October 2007 (August 2010 for RiverSource Life of NY) and reinsures the remainder of the risk on a coinsurance basis with unaffiliated reinsurance companies. The Company retains all risk for new claims on DI contracts sold on other policy forms. The Company also retains all risk on accidental death benefit claims and substantially all risk associated with waiver of premium provisions.

At December 31, 2011 and 2010, traditional life and UL insurance in force aggregated $191.2 billion and $192.0 billion, respectively, of which $136.2 billion and $134.0 billion were reinsured at the respective year ends. Life insurance in force is reported on a statutory basis.

The Company also reinsures a portion of the risks associated with its personal auto, home and umbrella insurance products through three types of reinsurance agreements with unaffiliated reinsurance companies. The Company purchases reinsurance with a limit of $5 million per loss and the Company retains $750,000 per loss. The Company purchases catastrophe reinsurance with a limit of $90 million per event and retains $10 million per event. Those limits change in 2012 to $110 million and $20 million, respectively. The Company also cedes 90% of every personal umbrella loss with a limit of $5 million.

The effect of reinsurance on premiums was as follows:

	Years Ended December 31,
	2011			2010			2009
	(in millions)
Direct premiums	$	1,421		$	1,382		$	1,317
Reinsurance ceded		(201	)		(203	)		(219	)
Net premiums	$	1,220		$	1,179		$	1,098

Cost of insurance and administrative charges on UL and VUL insurance are reflected in other revenues and were net of reinsurance ceded of $71 million, $67 million and $62 million for the years ended December 31, 2011, 2010 and 2009, respectively.

Reinsurance recovered from reinsurers was $201 million, $172 million and $174 million for the years ended December 31, 2011, 2010 and 2009, respectively. Reinsurance contracts do not relieve the Company from its primary obligation to policyholders.

Receivables included $2.0 billion and $1.9 billion of reinsurance recoverables as of December 31, 2011 and 2010, respectively, including $1.5 billion and $1.4 billion recoverable from Genworth, respectively. Included in future policy benefits and claims were $629 million and $657 million related to assumed reinsurance arrangements as of December 31, 2011 and 2010, respectively.

         126

8. Goodwill and Other Intangible Assets

Goodwill and intangible assets deemed to have indefinite lives are not amortized but are instead subject to impairment tests. For the years ended December 31, 2011, 2010 and 2009, the tests did not indicate impairment.

The changes in the carrying amount of goodwill reported in the Company's main operating segments were as follows:

	Advice & Wealth Management			Asset Management			Annuities		Protection		Consolidated
	(in millions)
Balance at January 1, 2010	$	257		$	739		$	46	$	45	$	1,087
Acquisitions		—			97			—		—		97
Foreign currency translation		—			(11	)		—		—		(11	)
Purchase price adjustments		(2	)		(10	)		—		—		(12	)
Balance at December 31, 2010		255			815			46		45		1,161
Acquisitions		—			6			—		—		6
Foreign currency translation		—			(2	)		—		—		(2	)
Purchase price adjustments		—			(1	)		—		—		(1	)
Balance at December 31, 2011	$	255		$	818		$	46	$	45	$	1,164

On April 30, 2010, the Company acquired the long-term asset management business of Columbia Management from Bank of America. The acquisition has enhanced the scale and performance of the Company's retail mutual fund and institutional asset management businesses. The Company recorded the assets and liabilities acquired at fair value and allocated the remaining costs to goodwill and intangible assets.

As of both December 31, 2011 and 2010, the carrying amount of indefinite-lived intangible assets included $630 million of investment management contracts and $67 million of trade names. Identifiable intangible assets with indefinite useful lives acquired during the year ended December 31, 2010 included $615 million of investment management contracts and $57 million of trade names.

Definite-lived intangible assets consisted of the following:

	December 31,
	2011							2010
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
	(in millions)
Customer relationships	$	145	$	(69	)	$	76	$	150	$	(38	)	$	112
Contracts		233		(122	)		111		233		(103	)		130
Other		150		(55	)		95		143		(60	)		83
Total	$	528	$	(246	)	$	282	$	526	$	(201	)	$	325

Definite-lived intangible assets acquired during the year ended December 31, 2011 were $2 million with a weighted average amortization period of 5 years. In 2011, the Company did not record any purchase price adjustments to definite-lived intangible assets. The increase (decrease) to the net carrying amount of definite-lived intangible assets due to changes in foreign currency exchange rates was nil, $(5) million and $13 million for the years ended December 31, 2011, 2010 and 2009, respectively. The aggregate amortization expense for definite-lived intangible assets during the years ended December 31, 2011, 2010 and 2009 was $45 million, $46 million and $32 million, respectively. In 2011, 2010 and 2009, the Company did not record any impairment charges on definite-lived intangible assets.

Estimated intangible amortization expense as of December 31, 2011 for the next five years is as follows:

	(in millions)
2012	$	46
2013		45
2014		40
2015		31
2016		27

127         

9. Deferred Acquisition Costs and Deferred Sales Inducement Costs

During the third quarter of 2011, 2010 and 2009, management reviewed and updated the DAC and DSIC valuation assumptions for the Company's products. As part of its third quarter 2010 process, management extended the projection periods used for its annuity products and revised client asset value growth rates assumed for variable annuity and VUL contracts.

The balances of and changes in DAC were as follows:

	2011			2010			2009
	(in millions)
Balance at January 1	$	4,619		$	4,334		$	4,383
Capitalization of acquisition costs		492			525			620
Amortization, excluding the impact of valuation assumptions review		(567	)		(450	)		(336	)
Amortization, impact of valuation assumptions review		(51	)		323			119
Impact of change in net unrealized securities gains		(91	)		(113	)		(452	)
Balance at December 31	$	4,402		$	4,619		$	4,334

The balances of and changes in DSIC, which is included in other assets, were as follows:

	2011			2010			2009
	(in millions)
Balance at January 1	$	545		$	524		$	518
Capitalization of sales inducement costs		9			35			82
Amortization, excluding the impact of valuation assumptions review		(70	)		(49	)		(19	)
Amortization, impact of valuation assumptions review		(11	)		52			9
Impact of change in net unrealized securities gains		(9	)		(17	)		(66	)
Balance at December 31	$	464		$	545		$	524

As described in Note 3, the Company adopted a new accounting standard on the recognition and presentation of other-than-temporary impairments in the first quarter of 2009. The adoption had no net impact to DAC and DSIC.

10. Future Policy Benefits and Claims and Separate Account Liabilities

Future policy benefits and claims consisted of the following:

	December 31,
	2011		2010
	(in millions)
Fixed annuities	$	16,401	$	16,520
EIA accumulated host values		58		100
EIA embedded derivatives		2		3
Variable annuity fixed sub-accounts		4,852		4,868
Variable annuity GMWB		1,377		337
Variable annuity GMAB		237		104
Other variable annuity guarantees		14		13
Total annuities		22,941		21,945
VUL/UL insurance		2,662		2,588
IUL accumulated host values		4		—
IUL embedded derivatives		3		—
VUL/UL insurance additional liabilities		220		143
Other life, disability income and long term care insurance		5,352		5,004
Auto, home and other insurance		420		394
Policy claims and other policyholders' funds		121		134
Total	$	31,723	$	30,208

         128

Separate account liabilities consisted of the following:

	December 31,
	2011		2010
	(in millions)
Variable annuity variable sub-accounts	$	57,556	$	57,862
VUL insurance variable sub-accounts		5,575		5,887
Other insurance variable sub-accounts		43		46
Threadneedle investment liabilities		3,606		4,535
Total	$	66,780	$	68,330

Fixed Annuities

Fixed annuities include both deferred and payout contracts. Deferred contracts offer a guaranteed minimum rate of interest and security of the principal invested. Payout contracts guarantee a fixed income payment for life or the term of the contract. The Company generally invests the proceeds from the annuity payments in fixed rate securities. The Company may hedge the interest rate risks related to fixed annuities with derivative instruments. As of December 31, 2011 and 2010, there were no outstanding derivatives to hedge these risks.

Equity Indexed Annuities

The Index 500 Annuity, the Company's EIA product, is a single premium deferred fixed annuity. The contract is issued with an initial term of seven years and interest earnings are linked to the S&P 500 Index. This annuity has a minimum interest rate guarantee of 3% on 90% of the initial premium, adjusted for any surrenders. The Company generally invests the proceeds from the annuity deposits in fixed rate securities and hedges the equity risk with derivative instruments. See Note 15 for additional information regarding the Company's derivative instruments. In 2007, the Company discontinued new sales of equity indexed annuities.

Variable Annuities

Purchasers of variable annuities can select from a variety of investment options and can elect to allocate a portion to a fixed account. A vast majority of the premiums received for variable annuity contracts are held in separate accounts where the assets are held for the exclusive benefit of those contractholders.

Most of the variable annuity contracts issued by the Company contain one or more guaranteed benefits, including GMWB, GMAB, GMDB and GGU provisions. The Company previously offered contracts with GMIB provisions. See Note 2 and Note 11 for additional information regarding the Company's variable annuity guarantees. The Company does not currently hedge its risk under the GMDB, GGU and GMIB provisions. See Note 15 for additional information regarding derivative instruments used to hedge risks related to GMWB and GMAB provisions.

Insurance Liabilities

VUL/UL is the largest group of insurance policies written by the Company. Purchasers of VUL can select from a variety of investment options and can elect to allocate a portion to a fixed account or a separate account. A vast majority of the premiums received for VUL contracts are held in separate accounts where the assets are held for the exclusive benefit of those policyholders. In 2011, the Company began offering IUL insurance. IUL is similar to UL in that it provides life insurance coverage and cash value that increases as a result of credited interest. Also, like UL, there is a minimum guaranteed credited rate of interest. Unlike UL the rate of credited interest above the minimum guarantee is linked to the S&P 500 Index (subject to a cap). The Company also offers term and whole life insurance as well as disability products. The Company no longer offers LTC products but has in force policies from prior years. Insurance liabilities include accumulation values, unpaid reported claims, incurred but not reported claims and obligations for anticipated future claims.

Portions of the Company's fixed and variable universal life contracts have product features that result in profits followed by losses from the insurance component of the contract. These profits followed by losses can be generated by the cost structure of the product or secondary guarantees in the contract. The secondary guarantee ensures that, subject to specified conditions, the policy will not terminate and will continue to provide a death benefit even if there is insufficient policy value to cover the monthly deductions and charges.

129         

Threadneedle Investment Liabilities

Threadneedle provides a range of unitized pooled pension funds, which invest in property, stocks, bonds and cash. The investments are selected by the clients and are based on the level of risk they are willing to assume. All investment performance, net of fees, is passed through to the investors. The value of the liabilities represents the value of the units in issue of the pooled pension funds.

11. Variable Annuity and Insurance Guarantees

The majority of the variable annuity contracts offered by the Company contain GMDB provisions. The Company also offers variable annuities with GGU, GMWB and GMAB provisions. The Company previously offered contracts containing GMIB provisions. See Note 2 and Note 10 for additional information regarding the Company's variable annuity guarantees.

The GMDB provisions provide a specified minimum return upon death of the contractholder. The death benefit payable is the greater of (i) the contract value less any purchase payment credits subject to recapture and less a pro-rata portion of any rider fees, or (ii) the GMDB provisions specified in the contract. The Company has three primary GMDB provisions:

•

Return of premium — provides purchase payments minus adjusted partial surrenders.

•

Reset — provides that the value resets to the account value every sixth contract anniversary minus adjusted partial surrenders. This provision is often provided in combination with the return of premium provision. This provision is no longer offered.

•

Ratchet — provides that the value ratchets up to the maximum account value at specified anniversary intervals, plus subsequent purchase payments less adjusted partial surrenders.

The variable annuity contracts with GMWB riders typically have account values that are based on an underlying portfolio of mutual funds, the values of which fluctuate based on fund performance. At issue, the guaranteed amount is equal to the amount deposited but the guarantee may be increased annually to the account value (a "step-up") in the case of favorable market performance.

The Company has GMWB riders in force, which contain one or more of the following provisions:

•

Withdrawals at a specified rate per year until the amount withdrawn is equal to the guaranteed amount.

•

Withdrawals at a specified rate per year for the life of the contractholder ("GMWB for life").

•

Withdrawals at a specified rate per year for joint contractholders while either is alive.

•

Withdrawals based on performance of the contract.

•

Withdrawals based on the age withdrawals begin.

•

Once withdrawals begin, the contractholder's funds are moved to one of the three least aggressive asset allocation models (of the five that are available prior to withdrawal).

•

Credits are applied annually for a specified number of years to increase the guaranteed amount as long as withdrawals have not been taken.

Variable annuity contractholders age 79 or younger at contract issue can also obtain a principal-back guarantee by purchasing the optional GMAB rider for an additional charge. The GMAB rider guarantees that, regardless of market performance at the end of the 10-year waiting period, the contract value will be no less than the original investment or 80% of the highest anniversary value, adjusted for withdrawals. If the contract value is less than the guarantee at the end of the 10 year period, a lump sum will be added to the contract value to make the contract value equal to the guarantee value.

Certain UL contracts offered by the Company provide secondary guarantee benefits. The secondary guarantee ensures that, subject to specified conditions, the policy will not terminate and will continue to provide a death benefit even if there is insufficient policy value to cover the monthly deductions and charges.

         130

The following table provides information related to variable annuity guarantees for which the Company has established additional liabilities:

	December 31, 2011								December 31, 2010
Variable Annuity Guarantees by Benefit Type(1)	Total Contract Value		Contract Value in Separate Accounts		Net Amount at Risk(2)		Weighted Average Attained Age		Total Contract Value		Contract Value in Separate Accounts		Net Amount at Risk(2)		Weighted Average Attained Age
	(in millions, except age)
GMDB:
Return of premium	$	40,011	$	38,275	$	382		63	$	37,714	$	36,028	$	173		62
Five/six-year reset		11,631		9,118		350		63		13,689		11,153		312		62
One-year ratchet		7,233		6,777		479		64		7,741		7,242		287		63
Five-year ratchet		1,472		1,418		25		61		1,466		1,414		8		60
Other		759		732		93		68		680		649		61		67
Total — GMDB	$	61,106	$	56,320	$	1,329		63	$	61,290	$	56,486	$	841		62
GGU death benefit	$	920	$	868	$	78		63	$	970	$	912	$	79		64
GMIB	$	463	$	433	$	106		65	$	597	$	561	$	76		64
GMWB:
GMWB	$	3,887	$	3,868	$	236		65	$	4,341	$	4,317	$	106		64
GMWB for life		23,756		23,625		863		64		20,374		20,259		129		63
Total — GMWB	$	27,643	$	27,493	$	1,099		64	$	24,715	$	24,576	$	235		63
GMAB	$	3,516	$	3,509	$	63		56	$	3,540	$	3,523	$	22		56

(1)

Individual variable annuity contracts may have more than one guarantee and therefore may be included in more than one benefit type. Variable annuity contracts for which the death benefit equals the account value are not shown in this table.

(2)

Represents the current guaranteed benefit amount in excess of the current contract value. GMIB, GMWB and GMAB benefits are subject to waiting periods and payment periods specified in the contract.

Changes in additional liabilities for variable annuity and insurance guarantees were as follows:

	GMDB & GGU			GMIB			GMWB			GMAB			UL
	(in millions)
Balance at January 1, 2009	$	55		$	12		$	1,471		$	367		$	7
Incurred claims		12			(5	)		(1,267	)		(267	)		8
Paid claims		(61	)		(1	)		—			—			—
Balance at December 31, 2009		6			6			204			100			15
Incurred claims		17			3			133			4			59
Paid claims		(18	)		(1	)		—			—			(6	)
Balance at December 31, 2010		5			8			337			104			68
Incurred claims		10			2			1,040			133			53
Paid claims		(10	)		(1	)		—			—			(10	)
Balance at December 31, 2011	$	5		$	9		$	1,377		$	237		$	111

The liabilities for guaranteed benefits are supported by general account assets.

The following table summarizes the distribution of separate account balances by asset type for variable annuity contracts providing guaranteed benefits:

	December 31,
	2011		2010
	(in millions)
Mutual funds:
Equity	$	30,738	$	32,310
Bond		23,862		22,319
Other		1,969		2,208
Total mutual funds	$	56,569	$	56,837

No gains or losses were recognized on assets transferred to separate accounts for the years ended December 31, 2011, 2010 and 2009.

131         

12. Customer Deposits

Customer deposits consisted of the following:

	December 31,
	2011			2010
	(in millions)
Fixed rate certificates	$	2,004		$	2,313
Stock market certificates		731			790
Stock market embedded derivative reserve		6			14
Other		36			43
Less: accrued interest classified in other liabilities		(5	)		(19	)
Total investment certificate reserves		2,772			3,141
Brokerage deposits		2,341			2,116
Banking deposits		4,737			3,522
Total	$	9,850		$	8,779

Investment Certificates

The Company offers fixed rate investment certificates primarily in amounts ranging from $1,000 to $1 million with interest crediting rate terms ranging from six to 36 months. Investment certificates may be purchased either with a lump sum payment or installment payments. Certificate product owners are entitled to receive, at maturity, a definite sum of money. Payments from certificate owners are credited to investment certificate reserves. Investment certificate reserves generally accumulate interest at specified percentage rates. Reserves are maintained for advance payments made by certificate owners, accrued interest thereon and for additional credits in excess of minimum guaranteed rates and accrued interest thereon. On certificates allowing for the deduction of a surrender charge, the cash surrender values may be less than accumulated investment certificate reserves prior to maturity dates. Cash surrender values on certificates allowing for no surrender charge are equal to certificate reserves. The Company generally invests the proceeds from investment certificates in fixed and variable rate securities. The Company may hedge the interest rate risks under these obligations with derivative instruments. As of December 31, 2011 and 2010, there were no outstanding derivatives to hedge these interest rate risks.

Certain investment certificate products have returns tied to the performance of equity markets. The Company guarantees the principal for purchasers who hold the certificate for the full 52-week term and purchasers may participate in increases in the stock market based on the S&P 500 Index, up to a maximum return. Purchasers can choose 100% participation in the market index up to the cap or 25% participation plus fixed interest with a combined total up to the cap. Current first term certificates have maximum returns of 2% to 3%. The equity component of these certificates is considered an embedded derivative and is accounted for separately. See Note 15 for additional information about derivative instruments used to economically hedge the equity price risk related to the Company's stock market certificates.

Brokerage Deposits

Brokerage deposits are amounts payable to brokerage customers related to free credit balances, funds deposited by customers and funds accruing to customers as a result of trades or contracts. The Company pays interest on certain customer credit balances and the interest is included in banking and deposit interest expense.

Banking Deposits

Banking deposits primarily include customer deposits in money market, savings and checking accounts and certificates of deposit held at Ameriprise Bank. The Company pays interest on certain customer balances and the interest is included in banking and deposit interest expense.

         132

13. Debt

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,
	2011			2010			2011			2010
	(in millions)
Senior notes due 2015	$	753	(1)	$	728	(1)		5.7	%		5.7	%
Senior notes due 2019		341	(1)		312	(1)		7.3			7.3
Senior notes due 2020		805	(1)		763	(1)		5.3			5.3
Senior notes due 2039		200			200			7.8			7.8
Junior subordinated notes due 2066		294			308			7.5			7.5
Municipal bond inverse floater certificates due 2021		—			6			—			0.3
Total long-term debt		2,393			2,317
Short-term borrowings		504			397			0.3			0.3
Total	$	2,897		$	2,714

(1)

Amounts include adjustments for fair value hedges on the Company's long-term debt and any unamortized discounts. See Note 15 for information on the Company's fair value hedges.

Long-term debt

On November 23, 2005, the Company issued $1.5 billion of unsecured senior notes including five-year notes which matured November 15, 2010 and 10-year notes which mature November 15, 2015, and incurred debt issuance costs of $7 million. Interest payments are due semi-annually on May 15 and November 15.

In November 2010, the Company retired $340 million of its senior notes due 2010. In July 2009, the Company purchased $450 million aggregate principal amount of its senior notes due 2010, pursuant to a cash tender offer. The tender offer consideration per $1,000 principal amount of these notes accepted for purchase was $1,000, with an early tender payment of $30. Payments for these notes pursuant to the tender offer included accrued and unpaid interest from the last interest payment date to, but not including, the settlement date. The Company also purchased $10 million of these notes in the second quarter of 2009 in open market transactions.

On June 8, 2009, the Company issued $300 million of unsecured senior notes which mature June 28, 2019, and incurred debt issuance costs of $3 million. Interest payments are due semi-annually in arrears on June 28 and December 28.

On March 11, 2010, the Company issued $750 million aggregate principal amount of unsecured senior notes which mature March 15, 2020, and incurred debt issuance costs of $6 million. Interest payments are due semi-annually in arrears on March 15 and September 15.

On June 3, 2009, the Company issued $200 million of unsecured senior notes which mature June 15, 2039, and incurred debt issuance costs of $6 million. Interest payments are due quarterly in arrears on March 15, June 15, September 15 and December 15.

On May 26, 2006, the Company issued $500 million of unsecured junior subordinated notes, which mature June 1, 2066, and incurred debt issuance costs of $6 million. For the initial 10-year period, the junior notes carry a fixed interest rate of 7.5% payable semi-annually in arrears on June 1 and December 1. From June 1, 2016 until the maturity date, interest on the junior notes will accrue at an annual rate equal to the three-month LIBOR plus a margin equal to 290.5 basis points, payable quarterly in arrears. The Company has the option to defer interest payments, subject to certain limitations. In addition, interest payments are mandatorily deferred if the Company does not meet specified capital adequacy, net income or shareholders' equity levels. As of December 31, 2011 and 2010, the Company had met the specified levels.

In 2011, 2010 and 2009, the Company extinguished $14 million, $14 million and $135 million, respectively, of its junior notes in open market transactions and recognized gains (losses) of nil, $(1) million and $58 million, respectively, in other revenues.

During the first quarter of 2011, the Company extinguished $6 million of its municipal bond inverse floater certificates funded through the call of a $10 million portfolio of municipal bonds.

133         

At December 31, 2011, future maturities of Ameriprise Financial long-term debt were as follows:

	(in millions)
2012	$	—
2013		—
2014		—
2015		700
2016		—
Thereafter		1,544
Total future maturities	$	2,244

Short-term borrowings

The Company enters into repurchase agreements in exchange for cash, which it accounts for as secured borrowings. The Company has pledged Available-for-Sale securities consisting of agency residential mortgage backed securities and commercial mortgage backed securities to collateralize its obligation under the repurchase agreements. The fair value of the securities pledged is recorded in investments and was $521 million and $412 million at December 31, 2011 and 2010, respectively. The stated interest rate of the short-term borrowings is a weighted average annualized interest rate on repurchase agreements held as of the balance sheet date.

On November 22, 2011, the Company entered into a credit agreement for $500 million expiring on November 22, 2015. Under the terms of the agreement, the Company may increase the amount of this facility to $750 million upon satisfaction of certain approval requirements. Available borrowings under the agreement are reduced by any outstanding letters of credit. The Company had no borrowings outstanding under this facility and outstanding letters of credit issued against this facility were $2 million as of December 31, 2011.

14. Fair Values of Assets and Liabilities

GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date; that is, an exit price. The exit price assumes the asset or liability is not exchanged subject to a forced liquidation or distressed sale.

Valuation Hierarchy

The Company categorizes its fair value measurements according to a three-level hierarchy. The hierarchy prioritizes the inputs used by the Company's valuation techniques. A level is assigned to each fair value measurement based on the lowest level input that is significant to the fair value measurement in its entirety. The three levels of the fair value hierarchy are defined as follows:

Level 1	Unadjusted quoted prices for identical assets or liabilities in active markets that are accessible at the measurement date.
Level 2	Prices or valuations based on observable inputs other than quoted prices in active markets for identical assets and liabilities.
Level 3	Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable.

Determination of Fair Value

The Company uses valuation techniques consistent with the market and income approaches to measure the fair value of its assets and liabilities. The Company's market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. The Company's income approach uses valuation techniques to convert future projected cash flows to a single discounted present value amount. When applying either approach, the Company maximizes the use of observable inputs and minimizes the use of unobservable inputs.

The following is a description of the valuation techniques used to measure fair value and the general classification of these instruments pursuant to the fair value hierarchy.

         134

Assets

Cash Equivalents

Cash equivalents include highly liquid investments with original maturities of 90 days or less. Actively traded money market funds are measured at their net asset value ("NAV") and classified as Level 1. The Company's remaining cash equivalents are classified as Level 2 and measured at amortized cost, which is a reasonable estimate of fair value because of the short time between the purchase of the instrument and its expected realization.

Investments (Trading Securities and Available-for-Sale Securities)

When available, the fair value of securities is based on quoted prices in active markets. If quoted prices are not available, fair values are obtained from third party pricing services, non-binding broker quotes, or other model-based valuation techniques. Level 1 securities primarily include U.S. Treasuries. Level 2 securities primarily include residential mortgage backed securities, commercial mortgage backed securities, asset backed securities, municipal and corporate bonds, and U.S. agency and foreign government securities. The fair value of these Level 2 securities is based on a market approach with prices obtained from third party pricing services. Observable inputs used to value these securities can include, but are not limited to reported trades, benchmark yields, issuer spreads and non-binding broker quotes. Level 3 securities primarily include certain non-agency residential mortgage backed securities, asset backed securities and corporate bonds. The fair value of corporate bonds and certain asset backed securities classified as Level 3 is typically based on a single non-binding broker quote. The fair value of certain asset backed securities and non-agency residential mortgage backed securities is obtained from third party pricing services who use significant unobservable inputs to estimate the fair value.

Prices received from third party pricing services are subjected to exception reporting that identifies investments with significant daily price movements as well as no movements. The Company reviews the exception reporting and resolves the exceptions through reaffirmation of the price or recording an appropriate fair value estimate. The Company also performs subsequent transaction testing. The Company performs annual due diligence of third party pricing services. The Company's due diligence procedures include assessing the vendor's valuation qualifications, control environment, analysis of asset-class specific valuation methodologies, and understanding of sources of market observable assumptions and unobservable assumptions, if any, employed in the valuation methodology. The Company also considers the results of its exception reporting controls and any resulting price challenges that arise.

Separate Account Assets

The fair value of assets held by separate accounts is determined by the NAV of the funds in which those separate accounts are invested. The NAV represents the exit price for the separate account. Separate account assets are classified as Level 2 as they are traded in principal-to-principal markets with little publicly released pricing information.

Investments Segregated for Regulatory Purposes

When available, the fair value of securities is based on quoted prices in active markets. If quoted prices are not available, fair values are obtained from third party pricing services, non-binding broker quotes, or other model-based valuation techniques. Level 2 securities include agency mortgage backed securities, asset backed securities, municipal and corporate bonds, and U.S. agency and foreign government securities.

Other Assets

Derivatives that are measured using quoted prices in active markets, such as foreign currency forwards, or derivatives that are exchange-traded are classified as Level 1 measurements. The fair value of derivatives that are traded in less active over-the-counter markets are generally measured using pricing models with market observable inputs such as interest rates and equity index levels. These measurements are classified as Level 2 within the fair value hierarchy and include swaps and the majority of options. The counterparties' nonperformance risk associated with uncollateralized derivative assets was immaterial at December 31, 2011 and 2010. See Note 15 for further information on the credit risk of derivative instruments and related collateral.

Assets Held for Sale

Assets held for sale consist of cash equivalents of Securities America.

135         

Liabilities

Future Policy Benefits and Claims

The Company values the embedded derivative liability attributable to the provisions of certain variable annuity riders using internal valuation models. These models calculate fair value by discounting expected cash flows from benefits plus margins for profit, risk and expenses less embedded derivative fees. The projected cash flows used by these models include observable capital market assumptions (such as, market implied equity volatility and the LIBOR swap curve) and incorporate significant unobservable inputs related to contractholder behavior assumptions (such as withdrawals and lapse rates) and margins for risk, profit and expenses that the Company believes an exit market participant would expect. The fair value of these embedded derivatives also reflects a current estimate of the Company's nonperformance risk specific to these liabilities. Given the significant unobservable inputs to this valuation, these measurements are classified as Level 3. The embedded derivative liability attributable to these provisions is recorded in future policy benefits and claims. The Company uses various Black-Scholes calculations to determine the fair value of the embedded derivative liability associated with the provisions of its equity indexed annuity and indexed universal life products. The inputs to these calculations are primarily market observable and include interest rates, volatilities, and equity index levels. As a result, these measurements are classified as Level 2.

Customer Deposits

The Company uses various Black-Scholes calculations to determine the fair value of the embedded derivative liability associated with the provisions of its stock market certificates. The inputs to these calculations are primarily market observable and include interest rates, volatilities and equity index levels. As a result, these measurements are classified as Level 2.

Other Liabilities

Derivatives that are measured using quoted prices in active markets, such as foreign currency forwards, or derivatives that are exchange-traded are classified as Level 1 measurements. The fair value of derivatives that are traded in less active over-the-counter markets are generally measured using pricing models with market observable inputs such as interest rates and equity index levels. These measurements are classified as Level 2 within the fair value hierarchy and include swaps and the majority of options. The Company's nonperformance risk associated with uncollateralized derivative liabilities was immaterial at December 31, 2011 and 2010. See Note 15 for further information on the credit risk of derivative instruments and related collateral.

Securities sold but not yet purchased include highly liquid investments which are short-term in nature. Securities sold but not yet purchased are measured using amortized cost, which is a reasonable estimate of fair value because of the short time between the purchase of the instrument and its expected realization and are classified as Level 2.

         136

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

	December 31, 2011
	Level 1		Level 2		Level 3		Total
	(in millions)
Assets
Cash equivalents	$	20	$	2,287	$	—	$	2,307
Available-for-Sale securities:
Corporate debt securities		—		16,685		1,355		18,040
Residential mortgage backed securities		—		7,198		198		7,396
Commercial mortgage backed securities		—		4,669		50		4,719
Asset backed securities		—		1,779		206		1,985
State and municipal obligations		—		2,130		—		2,130
U.S. government and agencies obligations		22		49		—		71
Foreign government bonds and obligations		—		144		—		144
Common stocks		2		2		5		9
Other debt obligations		—		11		—		11
Total Available-for-Sale securities		24		32,667		1,814		34,505
Trading securities		1		30		—		31
Separate account assets		—		66,780		—		66,780
Investments segregated for regulatory purposes		—		293		—		293
Other assets:
Interest rate derivative contracts		—		1,958		—		1,958
Equity derivative contracts		274		1,077		—		1,351
Credit derivative contracts		—		1		—		1
Foreign currency derivative contracts		—		7		—		7
Commodity derivative contracts		—		2		—		2
Total other assets		274		3,045		—		3,319
Total assets at fair value	$	319	$	105,102	$	1,814	$	107,235
Liabilities
Future policy benefits and claims:
EIA embedded derivatives	$	—	$	2	$	—	$	2
IUL embedded derivatives		—		3		—		3
GMWB and GMAB embedded derivatives		—		—		1,585		1,585
Total future policy benefits and claims		—		5		1,585		1,590	(1)
Customer deposits		—		6		—		6
Other liabilities:
Interest rate derivative contracts		—		1,209		—		1,209
Equity derivative contracts		297		764		—		1,061
Foreign currency derivative contracts		3		10		—		13
Other		—		2		—		2
Total other liabilities		300		1,985		—		2,285
Total liabilities at fair value	$	300	$	1,996	$	1,585	$	3,881

(1)

The Company's adjustment for nonperformance risk resulted in a $506 million cumulative decrease to the embedded derivative liability.

137         

	December 31, 2010
	Level 1		Level 2		Level 3		Total
	(in millions)
Assets
Cash equivalents	$	42	$	2,481	$	—	$	2,523
Available-for-Sale securities:
Corporate debt securities		—		15,281		1,325		16,606
Residential mortgage backed securities		—		3,011		4,247		7,258
Commercial mortgage backed securities		—		4,817		51		4,868
Asset backed securities		—		1,544		476		2,020
State and municipal obligations		—		1,582		—		1,582
U.S. government and agencies obligations		64		79		—		143
Foreign government bonds and obligations		—		108		—		108
Common stocks		2		3		5		10
Other debt obligations		—		24		—		24
Total Available-for-Sale securities		66		26,449		6,104		32,619
Trading securities		—		43		—		43
Separate account assets		—		68,330		—		68,330
Investments segregated for regulatory purposes		—		298		—		298
Other assets:
Interest rate derivative contracts		—		438		—		438
Equity derivative contracts		32		420		—		452
Credit derivative contracts		—		4		—		4
Foreign currency derivative contracts		1		—		—		1
Other		—		2		—		2
Total other assets		33		864		—		897
Assets held for sale		—		15		—		15
Total assets at fair value	$	141	$	98,480	$	6,104	$	104,725
Liabilities
Future policy benefits and claims:
EIA embedded derivatives	$	—	$	3	$	—	$	3
GMWB and GMAB embedded derivatives		—		—		421		421
Total future policy benefits and claims		—		3		421		424	(1)
Customer deposits		—		14		—		14
Other liabilities:
Interest rate derivative contracts		—		379		—		379
Equity derivative contracts		18		722		—		740
Credit derivative contracts		—		1		—		1
Foreign currency derivative contracts		1		—		—		1
Other		—		2		—		2
Total other liabilities		19		1,104		—		1,123
Total liabilities at fair value	$	19	$	1,121	$	421	$	1,561

(1)

The Company's adjustment for nonperformance risk resulted in a $197 million cumulative decrease to the embedded derivative liability.

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The following tables provide a summary of changes in Level 3 assets and liabilities of Ameriprise Financial measured at fair value on a recurring basis:

	Available-for-Sale Securities																	Future Policy Benefits and Claims: GMWB and GMAB Embedded Derivatives
	Corporate Debt Securities			Residential Mortgage Backed Securities			Commercial Mortgage Backed Securities			Asset Backed Securities			Common Stocks		Total
	(in millions)
Balance, January 1, 2011	$	1,325		$	4,247		$	51		$	476		$	5	$	6,104		$	(421	)
Total gains (losses) included in:
Net income		7			48			—			8			—		63	(1)		(1,007)	(2)
Other comprehensive income		11			(110	)		—			(18	)		—		(117	)		—
Purchases		189			556			104			118			—		967			—
Sales		(51	)		(2	)		—			—			—		(53	)		—
Issues		—			—			—			—			—		—			(149	)
Settlements		(122	)		(885	)		(4	)		(87	)		—		(1,098	)		(8	)
Transfers into Level 3		7			—			1			14			—		22			—
Transfers out of Level 3		(11	)		(3,656	)		(102	)		(305	)		—		(4,074	)		—
Balance, December 31, 2011	$	1,355		$	198		$	50		$	206		$	5	$	1,814		$	(1,585	)
Changes in unrealized gains (losses) relating to assets and liabilities held at December 31, 2011 included in:
Net investment income	$	—		$	(32	)	$	—		$	1		$	—	$	(31	)	$	—
Benefits, claims, losses and settlement expenses		—			—			—			—			—		—			(1,035	)

(1)

Included in net investment income in the Consolidated Statements of Operations.

(2)

Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Operations.

	Available-for-Sale Securities																			Future Policy Benefits and Claims: GMWB and GMAB Embedded Derivatives
	Corporate Debt Securities		Residential Mortgage Backed Securities			Commercial Mortgage Backed Securities			Asset Backed Securities			Common Stocks		Other Structured Investments			Total
	(in millions)
Balance, January 1, 2010	$	1,252	$	3,982		$	72		$	455		$	4	$	58		$	5,823		$	(299	)
Total gains included in:
Net income		1		55			1			12			—		—			69	(1)		4	(2)
Other comprehensive income		30		292			10			38			1		—			371			—
Purchases, sales, issues and settlements, net		17		(61	)		112			(5	)		—		(58)	(3)		5			(126	)
Transfers into Level 3		25		—			—			—			—		—			25			—
Transfers out of Level 3		—		(21	)		(144	)		(24	)		—		—			(189	)		—
Balance, December 31, 2010	$	1,325	$	4,247		$	51		$	476		$	5	$	—		$	6,104		$	(421	)
Changes in unrealized gains (losses) relating to assets and liabilities held at December 31, 2010 included in:
Net investment income	$	—	$	54		$	—		$	11		$	—	$	—		$	65		$	—
Benefits, claims, losses and settlement expenses		—		—			—			—			—		—			—			(15	)

(1)

Included in net investment income in the Consolidated Statements of Operations.

(2)

Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Operations.

(3)

Represents the elimination of Ameriprise Financial's investment in CDOs, which were consolidated due to the adoption of a new accounting standard. See Note 2 and Note 4 for additional information related to the consolidation of CDOs.

The impact to pretax income of the Company's adjustment for nonperformance risk on the fair value of its GMWB and GMAB embedded derivatives was an increase of $168 million and $28 million, net of DAC and DSIC amortization, for the years ended December 31, 2011 and 2010, respectively.

During the year ended December 31, 2011 transfers out of Level 3 to Level 2 included certain non-agency residential mortgage backed securities and sub-prime non-agency residential mortgage backed securities classified as asset backed securities with a fair value of approximately $3.9 billion. The transfers reflect improved pricing transparency of these

139         

securities, a continuing trend of increased activity in the non-agency residential mortgage backed security market and increased observability of significant inputs to the valuation methodology. All other securities transferred from Level 3 to Level 2 represent securities with fair values that are now obtained from a third party pricing service with observable inputs. Securities transferred from Level 2 to Level 3 represent securities with fair values that are now based on a single non-binding broker quote.

The Company recognizes transfers between levels of the fair value hierarchy as of the beginning of the quarter in which each transfer occurred.

During the reporting periods, there were no material assets or liabilities measured at fair value on a nonrecurring basis.

The following table provides the carrying value and the estimated fair value of financial instruments that are not reported at fair value. All other financial instruments that are reported at fair value have been included above in the table with balances of assets and liabilities Ameriprise Financial measured at fair value on a recurring basis.

	December 31, 2011				December 31, 2010
	Carrying Value		Fair Value		Carrying Value		Fair Value
	(in millions)
Financial Assets
Commercial mortgage loans, net	$	2,589	$	2,772	$	2,577	$	2,671
Policy loans		742		715		733		808
Receivables		2,444		2,148		1,852		1,566
Restricted and segregated cash		1,500		1,500		1,516		1,516
Assets held for sale		—		—		18		18
Other investments and assets		390		388		331		338
Financial Liabilities
Future policy benefits and claims	$	15,064	$	16,116	$	15,328	$	15,768
Investment certificate reserves		2,766		2,752		3,127		3,129
Banking and brokerage customer deposits		7,078		7,091		5,638		5,642
Separate account liabilities		3,950		3,950		4,930		4,930
Debt and other liabilities		3,180		3,412		2,722		2,919

Investments

The fair value of commercial mortgage loans, except those with significant credit deterioration, is determined by discounting contractual cash flows using discount rates that reflect current pricing for loans with similar remaining maturities and characteristics including loan-to-value ratio, occupancy rate, refinance risk, debt-service coverage, location, and property condition. For commercial mortgage loans with significant credit deterioration, fair value is determined using the same adjustments as above with an additional adjustment for the Company's estimate of the amount recoverable on the loan.

The fair value of policy loans is determined using discounted cash flows.

Receivables

The fair value of consumer bank loans is determined by discounting estimated cash flows and incorporating adjustments for prepayment, administration expenses, severity and credit loss estimates, with discount rates based on the Company's estimate of current market conditions.

Loans held for sale are measured at the lower of cost or market and fair value is based on what secondary markets are currently offering for loans with similar characteristics.

Brokerage margin loans are measured at outstanding balances, which are a reasonable estimate of fair value because of the sufficiency of the collateral and short term nature of these loans.

Restricted and Segregated Cash

Restricted and segregated cash is generally set aside for specific business transactions and restrictions are specific to the Company and do not transfer to third party market participants; therefore, the carrying amount is a reasonable estimate of fair value.

Amounts segregated under federal and other regulations may also reflect resale agreements and are measured at the cost at which the securities will be sold. This measurement is a reasonable estimate of fair value because of the short time between entering into the transaction and its expected realization and the reduced risk of credit loss due to pledging U.S. government-backed securities as collateral.

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Assets Held for Sale

Assets held for sale reflect notes receivable of Securities America. See Note 1 and Note 24 for additional information on the Company's presentation of discontinued operations.

Other Investments and Assets

Other investments and assets primarily consist of syndicated loans. The fair value of syndicated loans is obtained from a third party pricing service.

Future Policy Benefits and Claims

The fair value of fixed annuities, in deferral status, is determined by discounting cash flows using a risk neutral discount rate with adjustments for profit margin, expense margin, early policy surrender behavior, a provision for adverse deviation from estimated early policy surrender behavior, and the Company's nonperformance risk specific to these liabilities. The fair value of other liabilities including non-life contingent fixed annuities in payout status, equity indexed annuity host contracts and the fixed portion of a small number of variable annuity contracts classified as investment contracts is determined in a similar manner.

Customer Deposits

The fair value of investment certificate reserves is determined by discounting cash flows using discount rates that reflect current pricing for assets with similar terms and characteristics, with adjustments for early withdrawal behavior, penalty fees, expense margin and the Company's nonperformance risk specific to these liabilities.

Banking and brokerage customer deposits are liabilities with no defined maturities and fair value is the amount payable on demand at the reporting date.

Separate Account Liabilities

Certain separate account liabilities are classified as investment contracts and are carried at an amount equal to the related separate account assets. Carrying value is a reasonable estimate of the fair value as it represents the exit value as evidenced by withdrawal transactions between contractholders and the Company. A nonperformance adjustment is not included as the related separate account assets act as collateral for these liabilities and minimize nonperformance risk.

Debt and Other Liabilities

The fair value of long-term debt is based on quoted prices in active markets, when available. If quoted prices are not available fair values are obtained from third party pricing services, non-binding broker quotes, or other model-based valuation techniques such as present value of cash flows.

The fair value of short-term borrowings is obtained from a third party service. A nonperformance adjustment is not included as collateral requirements for these borrowings minimize the nonperformance risk.

The fair value of future funding commitments to affordable housing partnerships is determined by discounting cash flows.

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15. Derivatives and Hedging Activities

Derivative instruments enable the Company to manage its exposure to various market risks. The value of such instruments is derived from an underlying variable or multiple variables, including equity, foreign exchange and interest rate indices or prices. The Company primarily enters into derivative agreements for risk management purposes related to the Company's products and operations.

The Company uses derivatives as economic hedges and accounting hedges. The following table presents the balance sheet location and the gross fair value of derivative instruments, including embedded derivatives:

		Asset					Liability
		December 31,					December 31,
Derivatives designated as hedging instruments	Balance Sheet Location					Balance Sheet Location
		2011		2010			2011		2010
		(in millions)					(in millions)
Cash flow hedges
Asset-based distribution fees	Other assets	$	—	$	10	Other liabilities	$	—	$	—
Interest on debt	Other assets		—		—	Other liabilities		11		—
Fair value hedges
Fixed rate debt	Other assets		157		61	Other liabilities		—		—
Total qualifying hedges			157		71			11		—
Derivatives not designated as hedging instruments
GMWB and GMAB
Interest rate contracts	Other assets		1,801		366	Other liabilities		1,198		379
Equity contracts	Other assets		1,314		354	Other liabilities		1,031		665
Credit contracts	Other assets		1		4	Other liabilities		—		1
Foreign currency contracts	Other assets		7		—	Other liabilities		10		—
Embedded derivatives(1)	N/A		—		—	Future policy benefits and claims		1,585		421
Total GMWB and GMAB			3,123		724			3,824		1,466
Other derivatives:
Interest rate
Interest rate lock commitments	Other assets		—		1	Other liabilities		—		—
Equity
EIA	Other assets		—		1	Other liabilities		—		—
EIA embedded derivatives	N/A		—		—	Future policy benefits and claims		2		3
IUL	Other assets		1		—	Other liabilities		—		—
IUL embedded derivatives	N/A		—		—	Future policy benefits and claims		3		—
Stock market certificates	Other assets		34		89	Other liabilities		29		75
Stock market certificates embedded derivatives	N/A		—		—	Customer deposits		6		14
Ameriprise Financial
Franchise Advisor Deferred
Compensation Plan	Other assets		2		8	Other liabilities		—		—
Seed money	Other assets		—		—	Other liabilities		1		—
Foreign exchange
Foreign currency	Other assets		—		1	Other liabilities		3		1
Commodity
Seed money	Other assets		2		—	Other liabilities		—		—
Total other			39		100			44		93
Total non-designated hedges			3,162		824			3,868		1,559
Total derivatives		$	3,319	$	895		$	3,879	$	1,559

N/A Not applicable.

(1)

The fair values of GMWB and GMAB embedded derivatives fluctuate based on changes in equity, interest rate and credit markets.

See Note 14 for additional information regarding the Company's fair value measurement of derivative instruments.

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Derivatives Not Designated as Hedges

The following table presents a summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations for the years ended December 31:

		Amount of Gain (Loss) on Derivatives Recognized in Income
Derivatives not designated as hedging instruments	Location of Gain (Loss) on Derivatives Recognized in Income
		2011			2010			2009
		(in millions)
GMWB and GMAB
Interest rate contracts	Benefits, claims, losses and settlement expenses	$	709		$	95		$	(435	)
Equity contracts	Benefits, claims, losses and settlement expenses		326			(370	)		(1,245	)
Credit contracts	Benefits, claims, losses and settlement expenses		(12	)		(44	)		(65	)
Foreign currency contracts	Benefits, claims, losses and settlement expenses		(2	)		—			—
Embedded derivatives(1)	Benefits, claims, losses and settlement expenses		(1,165	)		(121	)		1,533
Total GMWB and GMAB			(144	)		(440	)		(212	)
Other derivatives:
Interest rate
Interest rate lock commitments	Other revenues		(1	)		—			—
Equity
GMDB	Benefits, claims, losses and settlement expenses		—			(4	)		(10	)
EIA	Interest credited to fixed accounts		(1	)		2			4
EIA embedded derivatives	Interest credited to fixed accounts		1			7			7
IUL	Interest credited to fixed accounts		1			—			—
IUL embedded derivatives	Interest credited to fixed accounts		(3	)		—			—
Stock market certificates	Banking and deposit interest expense		1			9			15
Stock market certificates embedded derivatives	Banking and deposit interest expense		—			(10	)		(18	)
Seed money	Net investment income		4			(5	)		(14	)
Ameriprise Financial
Franchise Advisor Deferred
Compensation Plan	Distribution expenses		(4	)		9			—
Foreign exchange
Seed money	General and administrative expense		(1	)		1			—
Foreign currency	Net investment income		(3	)		(1	)		—
Commodity
Seed money	Net investment income		1			—			—
Total other			(5	)		8			(16	)
Total derivatives		$	(149	)	$	(432	)	$	(228	)

(1)

The fair values of GMWB and GMAB embedded derivatives fluctuate based on changes in equity, interest rate and credit markets.

The Company holds derivative instruments that either do not qualify or are not designated for hedge accounting treatment. These derivative instruments are used as economic hedges of equity, interest rate, credit and foreign currency exchange rate risk related to various products and transactions of the Company.

The majority of the Company's annuity contracts contain GMDB provisions, which may result in a death benefit payable that exceeds the contract accumulation value when market values of customers' accounts decline. Certain annuity contracts contain GMWB or GMAB provisions, which guarantee the right to make limited partial withdrawals each contract year regardless of the volatility inherent in the underlying investments or guarantee a minimum accumulation value of consideration received at the beginning of the contract period, after a specified holding period, respectively. The Company economically hedges the exposure related to non-life contingent GMWB and GMAB provisions primarily using various futures, options, interest rate swaptions, interest rate swaps, variance swaps and credit default swaps. At December 31, 2011 and 2010, the gross notional amount of derivative contracts for the Company's GMWB and GMAB provisions was $104.7 billion and $55.5 billion, respectively. The Company had previously entered into a limited number of derivative contracts to economically hedge equity exposure related to GMDB provisions on variable annuity contracts written in 2009. As of both December 31, 2011 and 2010, the Company did not have any outstanding hedges on its GMDB provisions.

143         

The deferred premium associated with some of the above options is paid or received semi-annually over the life of the option contract. The following is a summary of the payments the Company is scheduled to make and receive for these options:

	Premiums Payable		Premiums Receivable
	(in millions)
2012	$	372	$	41
2013		349		26
2014		324		24
2015		296		22
2016		265		15
2017-2026		925		34

Actual timing and payment amounts may differ due to future contract settlements, modifications or exercises of options prior to the full premium being paid or received.

EIA, IUL and stock market certificate products have returns tied to the performance of equity markets. As a result of fluctuations in equity markets, the obligation incurred by the Company related to EIA, IUL and stock market certificate products will positively or negatively impact earnings over the life of these products. As a means of economically hedging its obligations under the provisions of these products, the Company enters into index options and futures contracts. The gross notional amount of these derivative contracts was $1.3 billion and $1.5 billion at December 31, 2011 and 2010, respectively.

The Company enters into forward contracts, futures, total return swaps and commodity swaps to manage its exposure to price risk arising from seed money investments in proprietary investment products. The gross notional amount of these contracts was $123 million and $174 million at December 31, 2011 and 2010, respectively.

The Company enters into foreign currency forward contracts to economically hedge its exposure to certain receivables and obligations denominated in non-functional currencies. The gross notional amount of these contracts was $26 million and $21 million at December 31, 2011 and 2010, respectively.

In 2010, the Company entered into a total return swap to economically hedge its exposure to equity price risk of Ameriprise Financial, Inc. common stock granted as part of its Ameriprise Financial Franchise Advisor Deferred Compensation Plan ("Franchise Advisor Deferral Plan"). In the fourth quarter of 2011, the Company extended the contract through 2012. As part of the contract, the Company expects to cash settle the difference between the value of a fixed number of shares at the contract date (which may be increased from time to time) and the value of those shares over an unwind period ending on December 31, 2012. The gross notional value of this contract was $17 million and $35 million at December 31, 2011 and 2010, respectively.

Embedded Derivatives

Certain annuities contain GMAB and non-life contingent GMWB provisions, which are considered embedded derivatives. In addition, the equity component of the EIA, IUL and stock market certificate product obligations are also considered embedded derivatives. These embedded derivatives are bifurcated from their host contracts and reported on the Consolidated Balance Sheets at fair value with changes in fair value reported in earnings. As discussed above, the Company uses derivatives to mitigate the financial statement impact of these embedded derivatives.

Cash Flow Hedges

The Company has designated and accounts for the following as cash flow hedges: (i) interest rate swaps to hedge interest rate exposure on debt, (ii) interest rate lock agreements to hedge interest rate exposure on debt issuances and (iii) swaptions used to hedge the risk of increasing interest rates on forecasted fixed premium product sales. The Company previously designated and accounted for as cash flow hedges interest rate swaps to hedge certain asset-based distribution fees.

During the second quarter of 2011, the Company reclassified from accumulated other comprehensive income into earnings a $27 million gain on an interest rate hedge put in place in anticipation of issuing debt between December 2010 and September 2011. The gain was reclassified due to the forecasted transaction not occurring according to the original hedge strategy. For the years ended December 31, 2011, 2010 and 2009, amounts recognized in earnings related to cash flow hedges due to ineffectiveness were not material. The estimated net amount of existing pretax losses on December 31, 2011 that the Company expects to reclassify to earnings within the next twelve months is $2 million, which consists of $4 million of pretax gains to be recorded as a reduction to interest and debt expense and $6 million of pretax losses to be recorded in net investment income. The following tables present the impact of the effective portion of the

         144

Company's cash flow hedges on the Consolidated Statements of Operations and the Consolidated Statements of Equity for the years ended December 31:

	Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivatives
Derivatives designated as hedging instruments	2011			2010		2009
	(in millions)
Interest on debt	$	(11	)	$	16	$	19
Asset-based distribution fees		1			20		—
Total	$	(10	)	$	36	$	19

	Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income
Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income
	2011			2010			2009
	(in millions)
Other revenues	$	27		$	—		$	—
Interest and debt expense		4			8			8
Distribution fees		9			11			—
Net investment income		(6	)		(6	)		(6	)
Total	$	34		$	13		$	2

The following is a summary of unrealized derivatives gains (losses) included in accumulated other comprehensive income (loss) related to cash flow hedges:

	2011			2010			2009
	(in millions)
Net unrealized derivatives gains (losses) at January 1	$	18		$	3		$	(8	)
Holding gains (losses)		(10	)		36			19
Reclassification of realized gains		(34	)		(13	)		(2	)
Income tax benefit (provision)		15			(8	)		(6	)
Net unrealized derivatives gains (losses) at December 31	$	(11	)	$	18		$	3

Currently, the longest period of time over which the Company is hedging exposure to the variability in future cash flows is 24 years and relates to forecasted debt interest payments.

Fair Value Hedges

During the first quarter of 2010, the Company entered into and designated as fair value hedges three interest rate swaps to convert senior notes due 2015, 2019 and 2020 from fixed rate debt to floating rate debt. The swaps have identical terms as the underlying debt being hedged so no ineffectiveness is expected to be realized. The Company recognizes gains and losses on the derivatives and the related hedged items within interest and debt expense. The following table presents the amounts recognized in income related to fair value hedges for the years ended December 31:

		Amount of Gain Recognized in Income on Derivatives
Derivatives designated as hedging instruments	Location of Gain Recorded into Income
		2011		2010
		(in millions)
Fixed rate debt	Interest and debt expense	$	41	$	36

Credit Risk

Credit risk associated with the Company's derivatives is the risk that a derivative counterparty will not perform in accordance with the terms of the applicable derivative contract. To mitigate such risk, the Company has established guidelines and oversight of credit risk through a comprehensive enterprise risk management program that includes members of senior management. Key components of this program are to require preapproval of counterparties and the use of master netting arrangements and collateral arrangements whenever practical. As of December 31, 2011 and 2010, the Company held $802 million and $98 million, respectively, in cash and cash equivalents and recorded a corresponding liability in other liabilities for collateral the Company is obligated to return to counterparties. As of December 31, 2011 and 2010, the Company had accepted additional collateral consisting of various securities with a fair value of $186 million and $23 million, respectively, which are not reflected on the Consolidated Balance Sheets. As of December 31, 2011 and

145         

2010, the Company's maximum credit exposure related to derivative assets after considering netting arrangements with counterparties and collateral arrangements was approximately $72 million and $45 million, respectively.

Certain of the Company's derivative instruments contain provisions that adjust the level of collateral the Company is required to post based on the Company's debt rating (or based on the financial strength of the Company's life insurance subsidiaries for contracts in which those subsidiaries are the counterparty). Additionally, certain of the Company's derivative contracts contain provisions that allow the counterparty to terminate the contract if the Company's debt does not maintain a specific credit rating (generally an investment grade rating) or the Company's life insurance subsidiary does not maintain a specific financial strength rating. If these termination provisions were to be triggered, the Company's counterparty could require immediate settlement of any net liability position. At December 31, 2011 and 2010, the aggregate fair value of all derivative instruments in a net liability position containing such credit risk features was $112 million and $412 million, respectively. The aggregate fair value of assets posted as collateral for such instruments as of December 31, 2011 and 2010 was $103 million and $406 million, respectively. If the credit risk features of derivative contracts that were in a net liability position at December 31, 2011 and 2010 were triggered, the additional fair value of assets needed to settle these derivative liabilities would have been $9 million and $6 million, respectively.

16. Share-Based Compensation

The Company's share-based compensation plans consist of the Amended and Restated Ameriprise Financial 2005 Incentive Compensation Plan (the "2005 ICP"), the Ameriprise Financial 2008 Employment Incentive Equity Award Plan (the "2008 Plan"), the Franchise Advisor Deferral Plan, and the Ameriprise Advisor Group Deferred Compensation Plan ("Employee Advisor Deferral Plan").

The components of the Company's share-based compensation expense, net of forfeitures, were as follows:

	Years Ended December 31,
	2011			2010		2009
	(in millions)
Stock options	$	43		$	41	$	53
Restricted stock awards		50	(1)		37		59
Restricted stock units		52			80		70
Liability awards		13			40		(4	)
Total	$	158		$	198	$	178

(1)

Includes $19 million of expense related to the Threadneedle equity incentive plan.

For the years ended December 31, 2011, 2010 and 2009, total income tax benefit recognized by the Company related to share-based compensation expense was $53 million, $67 million and $63 million, respectively.

As of December 31, 2011, there was $132 million of total unrecognized compensation cost related to non-vested awards under the Company's share-based compensation plans, which is expected to be recognized over a weighted-average period of 2.0 years.

Amended and Restated Ameriprise Financial 2005 Incentive Compensation Plan

The 2005 ICP, which was amended and approved by shareholders on April 28, 2010, provides for the grant of cash and equity incentive awards to directors, employees and independent contractors, including stock options, restricted stock awards, restricted stock units, stock appreciation rights, performance shares and similar awards designed to comply with the applicable federal regulations and laws of jurisdiction. Under the 2005 ICP, a maximum of 37.9 million shares may be issued. Of this total, no more than 6.0 million shares may be issued after April 28, 2010 for full value awards, which are awards other than stock options and stock appreciation rights. Shares issued under the 2005 ICP may be authorized and unissued shares or treasury shares.

Ameriprise Financial Deferred Compensation Plan

The Ameriprise Financial Deferred Compensation Plan ("DCP") gives certain employees the choice to defer a portion of their eligible compensation, which can be invested in investment options as provided by the DCP, including the Ameriprise Financial Stock Fund. The DCP is an unfunded non-qualified deferred compensation plan under section 409A of the Internal Revenue Code. The Company provides a match on certain deferrals. Participant deferrals vest immediately and the Company match vests after three years. Distributions are made in shares of the Company's common stock for the portion of the deferral invested in the Ameriprise Financial Stock Fund and the related Company match, for which the Company has recorded in equity. The DCP does allow for accelerated vesting of the share-based awards in cases of death, disability and qualified retirement. Compensation expense related to the Company match is recognized on a straight-line basis over the vesting period.

         146

Ameriprise Financial 2008 Employment Incentive Equity Award Plan

The 2008 Plan is designed to align new employees' interests with those of the shareholders of the Company and attract and retain new employees. The 2008 Plan provides for the grant of equity incentive awards to new employees who became employees in connection with a merger or acquisition, including stock options, restricted stock awards, restricted stock units, and other equity-based awards designed to comply with the applicable federal and foreign regulations and laws of jurisdiction. Under the 2008 Plan, a maximum of 6.0 million shares may be issued. Awards granted under the 2008 Plan may be settled in cash and/or shares of the Company's common stock according to the award's terms.

Stock Options

Stock options granted have an exercise price not less than 100% of the current fair market value of a share of the Company's common stock on the grant date and a maximum term of 10 years. Stock options granted generally vest ratably over three to four years. Vesting of option awards may be accelerated based on age and length of service. Stock options granted are expensed on a straight-line basis over the option vesting period based on the estimated fair value of the awards on the date of grant using a Black-Scholes option-pricing model.

The following weighted average assumptions were used for stock option grants:

	2011			2010			2009
Dividend yield		1.3	%		1.5	%		2.0	%
Expected volatility		44	%		50	%		55	%
Risk-free interest rate		2.3	%		2.3	%		1.8	%
Expected life of stock option (years)		5.0			5.0			5.0

The dividend yield assumption represents the Company's expected dividend yield based on its historical dividend payouts. The expected volatility is based on the Company's historical and implied volatilities. The risk-free interest rate for periods within the expected option life is based on the U.S. Treasury yield curve at the grant date. The expected life of the option is based on the Company's past experience and other considerations.

The weighted average grant date fair value for options granted during 2011, 2010 and 2009 was $21.38, $15.89 and $8.93, respectively.

A summary of the Company's stock option activity for 2011 is presented below (shares and intrinsic value in millions):

	Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
Outstanding at January 1		19.5		$	35.96		6.7	$	423
Granted		1.8			58.58
Exercised		(2.1	)		30.63
Forfeited		(0.3	)		30.75
Outstanding at December 31		18.9			38.85		5.3		241
Exercisable at December 31		12.1			40.56		5.0		132

The intrinsic value of a stock option is the amount by which the fair value of the underlying stock exceeds the exercise price of the option. The total intrinsic value of options exercised was $58 million, $70 million and $2 million during the years ended December 31, 2011, 2010 and 2009, respectively.

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Restricted Stock Awards

Restricted stock awards generally vest ratably over three to four years or at the end of five years. Vesting of restricted stock awards may be accelerated based on age and length of service. Compensation expense for restricted stock awards is based on the market price of Ameriprise Financial stock on the date of grant and is amortized on a straight-line basis over the vesting period. Quarterly dividends are paid on restricted stock, as declared by the Company's Board of Directors, during the vesting period and are not subject to forfeiture.

Certain advisors receive a portion of their compensation in the form of restricted stock awards which are subject to forfeiture based on future service requirements.

A summary of the Company's restricted stock award activity for 2011 is presented below (shares in millions):

	Shares			Weighted Average Grant-date Fair Value
Non-vested shares at January 1		3.6		$	31.08
Granted		0.5			58.68
Vested		(1.0	)		40.36
Forfeited		(0.2	)		32.71
Non-vested shares at December 31		2.9			32.33

The fair value of restricted stock awards vested during the years ended December 31, 2011, 2010 and 2009 was $54 million, $42 million and $27 million, respectively.

Restricted Stock Units

The 2005 ICP provides for the grant of deferred share units to non-employee directors of the Company and restricted stock units to employees. The director awards are fully vested upon issuance. The deferred share units are settled for Ameriprise Financial common stock upon the director's termination of service. The employee awards generally vest ratably over three to four years. Compensation expense for deferred share units and restricted stock units is based on the market price of Ameriprise Financial stock on the date of grant. Restricted stock units granted to employees are amortized on a straight-line basis over the vesting period or on an accelerated basis due to retirement eligibility. Deferred share units granted to non-employee directors are expensed immediately. Restricted stock units include units awarded under the DCP.

As of December 31, 2011, there were approximately 1.4 million units outstanding of restricted stock units, including deferred share units, of which approximately 1.1 million units were fully vested.

Ameriprise Financial Franchise Advisor Deferred Compensation Plan

The Franchise Advisor Deferral Plan, which was amended in January 2011, gives certain advisors the choice to defer a portion of their commissions into share-based awards or other investment options. The Franchise Advisor Deferral Plan is an unfunded non-qualified deferred compensation plan under section 409A of the Internal Revenue Code. Prior to 2011, all deferrals were in the form of share-based awards and the Company provided a match on the advisor deferrals, which participants could elect to receive in cash or shares of common stock. The Company provided a 15% stock match for 2010 and a 25% stock match for 2009 on eligible deferrals.

The Franchise Advisor Deferral Plan allows for the grant of share-based awards of up to 8.5 million shares of common stock. The number of units awarded is based on the performance measures, deferral percentage and the market value of Ameriprise Financial common stock on the deferral date as defined by the plan. Share-based awards made during 2011 are fully vested and are not subject to forfeitures. Share-based awards made prior to 2011 generally vest ratably over four years, beginning on January 1 of the year following the plan year in which the award was made. In addition to the voluntary deferral, certain advisors are eligible for the Franchise Advisor Top Performer Stock Award or the Franchise Consultant Growth Bonus. The Franchise Advisor Top Performer Stock Award allows eligible advisors to earn additional deferred stock awards on commissions over a specified threshold. The awards vest ratably over four years. The Franchise Consultant Growth Bonus allows eligible advisors who coach other advisors the ability to earn a bonus based on the success of the advisors they coach, which can be deferred into the plan. The awards vest ratably over three years. The Franchise Advisor Deferral Plan allows for accelerated vesting of the share-based awards based on age and years as an advisor. Commission expense is recognized on a straight-line basis over the vesting period. However, as franchise advisors are not employees of the Company, the expense is adjusted each period based on the stock price of the Company's common stock up to the vesting date. For the years ended December 31, 2011, 2010 and 2009, expense related to share-based units awarded under the Franchise Advisor Deferral Plan was $38 million, $70 million and $60 million, respectively.

As of December 31, 2011, there were approximately 5.2 million units outstanding under the Franchise Advisor Deferral Plan, of which approximately 4.4 million were fully vested.

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Ameriprise Advisor Group Deferred Compensation Plan

The Employee Advisor Deferral Plan, which was created in April 2009, allows for employee advisors to receive share-based bonus awards which are subject to future service requirements and forfeitures. The Employee Advisor Deferral Plan is an unfunded non-qualified deferred compensation plan under section 409A of the Internal Revenue Code. The Employee Advisor Deferral Plan also gives qualifying employee advisors the choice to defer a portion of their base salary or commissions beginning in 2010. This deferral can be in the form of share-based awards or other investment options. Deferrals are not subject to future service requirements or forfeitures. Under the Employee Advisor Deferral Plan, a maximum of 3.0 million shares may be issued. Awards granted under the Employee Advisor Deferral Plan may be settled in cash and/or shares of the Company's common stock according to the award's terms.

As of December 31, 2011, there were approximately 0.3 million units outstanding under the Employee Advisor Deferral Plan, of which nil were fully vested.

Threadneedle Equity Incentive Plan

On an annual basis, certain key Threadneedle employees are eligible for awards under an equity incentive plan ("EIP") based on a formula tied to Threadneedle's financial performance. Awards under the EIP were first made in April 2009; prior awards were made under the equity participation plan ("EPP"). In 2011, Threadneedle's articles of incorporation were amended to create a new class of Threadneedle corporate units to be granted under a modified EIP plan. Employees who held EIP units granted prior to 2011 were given the choice to exchange their existing units at the exchange date. EIP awards may be settled in cash or Threadneedle corporate units according to the award's terms. For awards granted prior to 2011, the EIP provides for 100% vesting after three years, with a mandatory call after six years. For converted units and awards granted after February 2011, the EIP provides for 100% vesting after two and a half years, with no mandatory call date. Converted units and units granted after February 2011 have dividend rights once fully vested. The EPP provides for 50% vesting after three years and 50% vesting after four years, with required cash-out after five years. EIP and EPP awards are subject to forfeitures based on future service requirements.

The value of the awards is recognized as compensation expense evenly over the vesting periods. Generally, the expense is based on the grant date fair value of the awards as determined by an annual independent valuation of Threadneedle's fair market value; however, for awards accounted for as a liability the expense is adjusted to reflect Threadneedle's current calculated value (the change in the value of the awards is recognized immediately for vested awards and over the remaining vesting period for unvested awards). During the years ended December 31, 2011, 2010 and 2009, cash settlements of EPP and EIP awards were $14 million, $18 million and $5 million, respectively.

17. Shareholders' Equity

The following table presents the components of accumulated other comprehensive income, net of tax:

	December 31,
	2011			2010
	(in millions)
Net unrealized securities gains	$	770		$	615
Net unrealized derivatives gains (losses)		(11	)		18
Defined benefit plans		(75	)		(24	)
Foreign currency translation		(46	)		(44	)
Total	$	638		$	565

See Note 5, Note 15 and Note 21 for additional disclosures related to net unrealized securities gains, net unrealized derivatives gains (losses) and net unrealized actuarial gains (losses) on defined benefit plans, respectively.

In May 2010, the Company's Board of Directors authorized the expenditure of up to $1.5 billion for the repurchase of the Company's common stock through the date of its 2012 annual meeting. In June 2011, the Company's Board of Directors authorized an additional expenditure of up to $2.0 billion for the repurchase of the Company's common stock through June 28, 2013. For the years ended December 31, 2011 and 2010, the Company repurchased a total of 27.9 million shares and 13.1 million shares, respectively, of its common stock for an aggregate cost of $1.5 billion and $573 million, respectively. There were no share repurchases during the year ended December 31, 2009. As of December 31, 2011, the Company had $1.5 billion remaining under the share repurchase authorization.

The Company may also reacquire shares of its common stock under its 2005 ICP related to restricted stock awards. Restricted shares that are forfeited before the vesting period has lapsed are recorded as treasury shares. In addition, the holders of restricted shares may elect to surrender a portion of their shares on the vesting date to cover their income tax obligations. These vested restricted shares reacquired by the Company and the Company's payment of the holders' income tax obligations are recorded as a treasury share purchase. For the years ended December 31, 2011, 2010 and 2009, the

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restricted shares forfeited under the 2005 ICP and recorded as treasury shares were 0.1 million, 0.3 million and 0.3 million, respectively. For the years ended December 31, 2011, 2010 and 2009, the Company reacquired 0.5 million, 0.4 million and 0.5 million shares, respectively, of its common stock through the surrender of restricted shares upon vesting and paid in the aggregate $25 million, $17 million and $11 million, respectively, related to the holders' income tax obligations on the vesting date.

In 2011, the Company reissued 1.7 million treasury shares for restricted stock award grants and issuance of shares vested under the Franchise Advisor Deferral Plan. In 2011 and 2010, the Company reacquired 0.3 million and 0.1 million shares, respectively, of its common stock with an aggregate value of $13 million and $7 million, respectively, from a total return swap used to economically hedge its Franchise Advisor Deferral Plan. See Note 15 for additional information. In 2009, the Company issued and sold 36 million shares of its common stock. The proceeds of $869 million were used for general corporate purposes, including the Company's acquisition of the long-term asset management business of the Columbia Management Group.

18. Earnings per Share Attributable to Ameriprise Financial, Inc. Common Shareholders

The computations of basic and diluted earnings per share attributable to Ameriprise Financial, Inc. common shareholders are as follows:

	Years Ended December 31,
	2011			2010			2009
	(in millions, except per share amounts)
Numerator:
Income from continuing operations	$	1,030		$	1,284		$	736
Less: Net income (loss) attributable to noncontrolling interests		(106	)		163			15
Income from continuing operations attributable to Ameriprise Financial		1,136			1,121			721
Income (loss) from discontinued operations, net of tax		(60	)		(24	)		1
Net income attributable to Ameriprise Financial	$	1,076		$	1,097		$	722
Denominator:
Basic: Weighted-average common shares outstanding		241.4			257.4			242.2
Effect of potentially dilutive nonqualified stock options
and other share-based awards		4.9			4.9			2.2
Diluted: Weighted-average common shares outstanding		246.3			262.3			244.4
Earnings per share attributable to Ameriprise Financial, Inc. common shareholders:
Basic:
Income from continuing operations	$	4.71		$	4.36		$	2.98
Income (loss) from discontinued operations		(0.25	)		(0.10	)		—
Net income	$	4.46		$	4.26		$	2.98
Diluted:
Income from continuing operations	$	4.61		$	4.27		$	2.95
Income (loss) from discontinued operations		(0.24	)		(0.09	)		—
Net income	$	4.37		$	4.18		$	2.95

19. Regulatory Requirements

Restrictions on the transfer of funds exist under regulatory requirements applicable to certain of the Company's subsidiaries. At December 31, 2011, the aggregate amount of unrestricted net assets was approximately $1.6 billion.

The National Association of Insurance Commissioners ("NAIC") defines Risk-Based Capital ("RBC") requirements for insurance companies. The RBC requirements are used by the NAIC and state insurance regulators to identify companies that merit regulatory actions designed to protect policyholders. These requirements apply to both the Company's life and property casualty insurance companies. In addition, IDS Property Casualty is subject to the statutory surplus requirements of the State of Wisconsin. The Company's life and property casualty companies each met their respective minimum RBC requirements.

State insurance statutes also contain limitations as to the amount of dividends and distributions that insurers may make without providing prior notification to state regulators. For RiverSource Life, dividends or distributions in excess of statutory unassigned surplus, as determined in accordance with accounting practices prescribed by the State of Minnesota, require advance notice to the Minnesota Department of Commerce, RiverSource Life's primary regulator, and are subject to

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potential disapproval. In addition, dividends whose fair market value, together with that of other dividends or distributions made within the preceding 12 months, exceeds the greater of (i) the previous year's statutory net gain from operations or (ii) 10% of the previous year-end statutory capital and surplus are referred to as "extraordinary dividends." Extraordinary dividends also require advance notice to the Minnesota Department of Commerce, and are subject to potential disapproval. Government debt securities of $7 million and $6 million at December 31, 2011 and 2010, respectively, held by the Company's life insurance subsidiaries were on deposit with various states as required by law and satisfied legal requirements. Statutory capital and surplus for RiverSource Life were $2.7 billion, $3.7 billion and $3.4 billion for the years ended December 31, 2011, 2010 and 2009, respectively.

Ameriprise Certificate Company ("ACC") is registered as an investment company under the Investment Company Act of 1940 (the "1940 Act"). ACC markets and sells investment certificates to clients. ACC is subject to various capital requirements under the 1940 Act, laws of the State of Minnesota and understandings with the Securities and Exchange Commission ("SEC") and the Minnesota Department of Commerce. The terms of the investment certificates issued by ACC and the provisions of the 1940 Act also require the maintenance by ACC of qualified assets. Under the provisions of its certificates and the 1940 Act, ACC was required to have qualified assets (as that term is defined in Section 28(b) of the 1940 Act) in the amount of $2.8 billion and $3.1 billion at December 31, 2011 and 2010, respectively. ACC had qualified assets of $2.9 billion and $3.4 billion at December 31, 2011 and 2010, respectively. Ameriprise Financial and ACC entered into a Capital Support Agreement on March 2, 2009, pursuant to which Ameriprise Financial agrees to commit such capital to ACC as is necessary to satisfy applicable minimum capital requirements, up to a maximum commitment of $115 million. For the years ended December 31, 2011 and 2010, ACC did not draw upon the Capital Support Agreement and had met all applicable capital requirements.

Threadneedle's required capital is predominantly based on the requirements specified by its regulator, the Financial Services Authority, under its Capital Adequacy Requirements for asset managers.

The Company has four broker-dealer subsidiaries, American Enterprise Investment Services Inc., Ameriprise Financial Services, Inc., RiverSource Distributors, Inc. and Columbia Management Investment Distributors, Inc. The broker-dealers are subject to the net capital requirements of the Financial Industry Regulatory Authority ("FINRA") and the Uniform Net Capital requirements of the SEC under Rule 15c3-1 of the Securities Exchange Act of 1934.

Ameriprise Trust Company is subject to capital adequacy requirements under the laws of the State of Minnesota as enforced by the Minnesota Department of Commerce.

Under the Dodd-Frank Wall Street Reform and Consumer Protection Act, the responsibility for ongoing examination, supervision and regulation of federal savings associations, including Ameriprise Bank, transferred from the Office of Thrift Supervision ("OTS") to the Office of the Comptroller of Currency ("OCC") effective July 21, 2011. Ameriprise Bank is required to maintain sufficient capital in compliance with the OCC regulations and policies. Typically, the OCC requires savings banks to maintain a Tier 1 (core) capital requirement based upon 4.00% of total adjusted assets, total risk-based capital based upon 8.00% of total risk-weighted assets, as well as Tier 1 risk-based capital based upon 4.00% of total risk-weighted assets and a tangible capital ratio of at least 1.50%. Ameriprise Bank agreed with the regulators to maintain its Tier 1 capital-to-assets leverage ratio at or above 7.50%, rather than the OCC-regulated Tier 1 (core) capital requirement of 4.00% and keep its total risk-based capital ratio at or above 12.00%. As a thrift, Ameriprise Bank is also required to maintain 65.00% of its portfolio assets in qualified thrift investments, which include mortgage and consumer-related loans and investments. As of December 31, 2011 and 2010, Ameriprise Bank had met all applicable capital requirements.

20. Income Taxes

The components of income tax provision attributable to continuing operations were as follows:

	Years Ended December 31,
	2011			2010			2009
	(in millions)
Current income tax:
Federal	$	250		$	(224	)	$	200
State and local		21			13			4
Foreign		23			32			4
Total current income tax		294			(179	)		208
Deferred income tax:
Federal		68			540			(13	)
State and local		1			(5	)		(7	)
Foreign		(8	)		(6	)		(4	)
Total deferred income tax		61			529			(24	)
Total income tax provision	$	355		$	350		$	184

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The geographic sources of pretax income from continuing operations were as follows:

	Years Ended December 31,
	2011		2010		2009
	(in millions)
United States	$	1,288	$	1,470	$	883
Foreign		97		164		37
Total	$	1,385	$	1,634	$	920

The principal reasons that the aggregate income tax provision attributable to continuing operations is different from that computed by using the U.S. statutory rate of 35% were as follows:

	Years Ended December 31,
	2011			2010			2009
Tax at U.S. statutory rate		35.0	%		35.0	%		35.0	%
Changes in taxes resulting from:
Dividend exclusion		(8.9	)		(4.1	)		(7.6	)
Tax-exempt interest income		(1.3	)		(1.0	)		(1.3	)
Tax credits		(3.4	)		(2.5	)		(5.8	)
State taxes, net of federal benefit		1.0			0.2			(0.4	)
Net income (loss) attributable to noncontrolling interests		2.7			(3.4	)		(0.6	)
Other, net		0.5			(2.7	)		0.7
Income tax provision		25.6	%		21.5	%		20.0	%

The increase in the Company's effective tax rate in 2011 compared to 2010 primarily reflects the change in the noncontrolling interests which is included in pretax income, partially offset by a favorable audit settlement related to the dividends received deduction. The increase in the Company's effective tax rate in 2010 compared to 2009 primarily reflects an increase in pretax income relative to tax advantaged items, which was partially offset by $53 million in benefits from tax planning and the completion of certain audits.

Accumulated earnings of certain foreign subsidiaries, which totaled $89 million at December 31, 2011, are intended to be permanently reinvested outside the United States. Accordingly, U.S. federal taxes, which would have aggregated $9 million, have not been provided on those earnings.

Deferred income tax assets and liabilities result from temporary differences between the assets and liabilities measured for GAAP reporting versus income tax return purposes. The significant components of the Company's deferred income tax assets and liabilities, which are included net within other assets or other liabilities on the Consolidated Balance Sheets, were as follows:

	December 31,
	2011			2010
	(in millions)
Deferred income tax assets:
Liabilities for future policy benefits and claims	$	1,615		$	1,329
Investment impairments and write-downs		118			119
Deferred compensation		274			241
Investment related		—			56
Loss carryovers and tax credit carryforwards		134			134
Other		89			70
Gross deferred income tax assets		2,230			1,949
Less: Valuation allowance		(5	)		—
Total deferred income tax assets		2,225			1,949
Deferred income tax liabilities:
Deferred acquisition costs		1,418			1,473
Investment related		260			—
Deferred sales inducement costs		180			191
Net unrealized gains on Available-for-Sale securities		396			312
Depreciation expense		182			138
Intangible assets		60			52
Other		71			85
Gross deferred income tax liabilities		2,567			2,251
Net deferred income tax liabilities	$	(342	)	$	(302	)

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The Company is required to establish a valuation allowance for any portion of the deferred tax assets that management believes will not be realized. Included in deferred tax assets is a significant deferred tax asset relating to capital losses that have been recognized for financial statement purposes but not yet for tax return purposes. Under current U.S. federal income tax law, capital losses generally must be used against capital gain income within five years of the year in which the capital losses are recognized for tax purposes. Significant judgment is required in determining if a valuation allowance should be established, and the amount of such allowance if required. Factors used in making this determination include estimates relating to the performance of the business including the ability to generate capital gains. Consideration is given to, among other things in making this determination, (i) future taxable income exclusive of reversing temporary differences and carryforwards, (ii) future reversals of existing taxable temporary differences, (iii) taxable income in prior carryback years, and (iv) tax planning strategies. Based on analysis of the Company's tax position, management believes it is more likely than not that the Company will not realize the full benefit of certain state net operating losses and therefore a valuation allowance of $5 million has been established as of December 31, 2011.

Included in the Company's deferred income tax assets are tax benefits related to capital loss carryforwards of $30 million which will expire beginning December 31, 2015, tax credits of $65 million which will expire beginning December 31, 2027, and state net operating losses of $39 million which will expire beginning December 31, 2014. As a result of the Company's ability to file a consolidated U.S. federal income tax return including the Company's life insurance subsidiaries, as well as the expected level of taxable income, management believes the Company's capital loss carryforwards and tax credit carryforwards will be utilized before they expire.

A reconciliation of the beginning and ending amount of gross unrecognized tax benefits (expense) were as follows:

	2011			2010			2009
	(in millions)
Balance at January 1	$	75		$	(33	)	$	(56	)
Additions based on tax positions related to the current year		1			2			1
Additions for tax positions of prior years		95			57			45
Reductions for tax positions of prior years		(8	)		(42	)		(23	)
Settlements		21			91			—
Balance at December 31	$	184		$	75		$	(33	)

If recognized, approximately $38 million, $54 million and $81 million, net of federal tax benefits, of unrecognized tax benefits as of December 31, 2011, 2010, and 2009, respectively, would affect the effective tax rate.

The Company recognizes interest and penalties related to unrecognized tax benefits as a component of the income tax provision. The Company recognized $66 million of interest and penalties for the year ended December 31, 2011. The Company recognized a net reduction of $17 million in interest and penalties for the year ended December 31, 2010 and an increase of $1 million in interest and penalties for the year ended December 31, 2009. At December 31, 2011 and 2010, the Company had a payable of $37 million and a receivable of $29 million, respectively, related to accrued interest and penalties.

It is reasonably possible that the total amounts of unrecognized tax benefits will change in the next 12 months. Based on the current audit position of the Company, it is estimated that the total amount of gross unrecognized tax benefits may decrease by $150 million to $160 million in the next 12 months.

The Company or one or more of its subsidiaries files income tax returns in the U.S. federal jurisdiction, and various states and foreign jurisdictions. The Internal Revenue Service ("IRS") had previously completed its field examination of the 1997 through 2007 tax returns in recent years as part of the overall examination of the American Express Company consolidated returns. However, for federal income tax purposes these years except for 2007, continue to remain open as a consequence of certain issues under appeal. The IRS is currently auditing the Company's U.S. income tax returns for 2008 and 2009. The Company's or certain of its subsidiaries' state income tax returns are currently under examination by various jurisdictions for years ranging from 1999 through 2009. The Company's federal and state income tax returns remain open for the years after 2009.

It is possible there will be corporate tax reform in the next few years. While impossible to predict, corporate tax reform is likely to include a reduction in the corporate tax rate coupled with reductions in tax preferred items. Potential tax reform may also affect the U.S. tax rules regarding international operations. Any changes could have a material impact on the income tax expense and the deferred tax balances of the Company.

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The items comprising other comprehensive income are presented net of the following income tax provision (benefit) amounts:

	Years Ended December 31,
	2011			2010			2009
	(in millions)
Net unrealized securities gains	$	77		$	167		$	753
Net unrealized derivatives gains		(15	)		8			6
Defined benefit plans		(28	)		(2	)		10
Foreign currency translation adjustment		(1	)		(6	)		15
Net income tax provision	$	33		$	167		$	784

21. Retirement Plans and Profit Sharing Arrangements

Defined Benefit Plans

Pension Plans

The Company's U.S. non-advisor employees are generally eligible for the Ameriprise Financial Retirement Plan (the "Retirement Plan"), a noncontributory defined benefit plan which is a qualified plan under the Employee Retirement Income Security Act of 1974, as amended ("ERISA"). Funding of costs for the Retirement Plan complies with the applicable minimum funding requirements specified by ERISA and is held in a trust. The Retirement Plan is a cash balance plan by which the employees' accrued benefits are based on notional account balances, which are maintained for each individual. Each pay period these balances are credited with an amount equal to a percentage of eligible compensation as defined by the Retirement Plan (which includes, but is not limited to, base pay, performance based incentive pay, commissions, shift differential and overtime). Prior to March 1, 2010, the percentage ranged from 2.5% to 10% based on employees' age plus years of service. Effective March 1, 2010, the percentage ranged from 2.5% to 5% based on employees' years of service. Employees eligible for the plan at the time of the change remain under the previous schedule until the new schedule becomes more favorable. Employees' balances are also credited with a fixed rate of interest that is updated each January 1 and is based on the average of the daily five-year U.S. Treasury Note yields for the previous October 1 through November 30, with a minimum crediting rate of 5%. Employees have the option to receive annuity payments or a lump sum payout at vested termination, retirement, death or disability. The Retirement Plan's year-end is September 30.

In addition, the Company sponsors the Ameriprise Financial Supplemental Retirement Plan (the "SRP"), an unfunded non-qualified deferred compensation plan subject to Section 409A of the Internal Revenue Code. This plan is for certain highly compensated employees to replace the benefit that cannot be provided by the Retirement Plan due to IRS limits. The SRP generally parallels the Retirement Plan but offers different payment options.

Most employees outside the United States are covered by local retirement plans, some of which are funded, while other employees receive payments at the time of retirement or termination under applicable labor laws or agreements.

The components of the net periodic benefit cost for all pension plans were as follows:

	Years Ended December 31,
	2011			2010			2009
	(in millions)
Service cost	$	38		$	33		$	32
Interest cost		23			23			25
Expected return on plan assets		(26	)		(23	)		(22	)
Amortization of prior service costs		(1	)		(2	)		(1	)
Amortization of net (gain)/loss		1			—			—
Other		4			3			3
Net periodic benefit cost	$	39		$	34		$	37

The prior service costs are amortized on a straight-line basis over the average remaining service period of active participants. Actuarial gains and losses in excess of 10% of the greater of the projected benefit obligation or the market-related value of assets are amortized on a straight-line basis over the expected average remaining service period of active participants.

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The following tables provide a reconciliation of the changes in the benefit obligation and fair value of assets for the pension plans:

	2011			2010
	(in millions)
Benefit obligation, January 1	$	469		$	421
Service cost		38			33
Interest cost		23			23
Benefits paid		(6	)		(6	)
Actuarial loss		40			23
Settlements		(18	)		(24	)
Foreign currency rate changes		—			(1	)
Benefit obligation, December 31	$	546		$	469

	2011			2010
	(in millions)
Fair value of plan assets, January 1	$	327		$	256
Actual return on plan assets		(12	)		39
Employer contributions		72			64
Benefits paid		(6	)		(6	)
Settlements		(18	)		(24	)
Foreign currency rate changes		(1	)		(2	)
Fair value of plan assets, December 31	$	362		$	327

The following table provides the amounts recognized in the Consolidated Balance Sheets, which equal the funded status of the Company's pension plans:

	December 31,
	2011			2010
	(in millions)
Benefit liability	$	(189	)	$	(162	)
Benefit asset		5			20
Net amount recognized	$	(184	)	$	(142	)

The Company complies with the minimum funding requirements in all countries.

The amounts recognized in accumulated other comprehensive income (loss), net of tax, as of December 31, 2011 but not recognized as components of net periodic benefit cost included an unrecognized actuarial loss of $87 million and an unrecognized prior service credit of $5 million. The estimated amounts that will be amortized from accumulated other comprehensive income (loss), net of tax, into net periodic benefit cost in 2012 include a prior service credit of $1 million.

The accumulated benefit obligation for all pension plans as of December 31, 2011 and 2010 was $493 million and $423 million, respectively. The accumulated benefit obligation and fair value of plan assets for pension plans with accumulated benefit obligations that exceeded the fair value of plan assets were as follows:

	December 31,
	2011		2010
	(in millions)
Accumulated benefit obligation	$	434	$	376
Fair value of plan assets		282		248

The projected benefit obligation and fair value of plan assets for pension plans with projected benefit obligations that exceeded the fair value of plan assets were as follows:

	December 31,
	2011		2010
	(in millions)
Projected benefit obligation	$	470	$	410
Fair value of plan assets		282		248

155         

The weighted average assumptions used to determine benefit obligations for pension plans were as follows:

	2011			2010
Discount rates		4.15	%		4.75	%
Rates of increase in compensation levels		4.27			4.25

The weighted average assumptions used to determine net periodic benefit cost for pension plans were as follows:

	2011			2010			2009
Discount rates		4.75	%		5.28	%		6.22	%
Rates of increase in compensation levels		4.25			4.22			4.23
Expected long-term rates of return on assets		8.00			8.00			8.20

In developing the expected long-term rate of return on assets, management evaluated input from an external consulting firm, including their projection of asset class return expectations and long-term inflation assumptions. The Company also considered historical returns on the plans' assets. Discount rates are based on yields available on high-quality corporate bonds that would generate cash flows necessary to pay the benefits when due.

The Company's pension plans' assets are invested in an aggregate diversified portfolio to minimize the impact of any adverse or unexpected results from a security class on the entire portfolio. Diversification is interpreted to include diversification by asset type, performance and risk characteristics and number of investments. When appropriate and consistent with the objectives of the plans, derivative instruments may be used to mitigate risk or provide further diversification, subject to the investment policies of the plans. Asset classes and ranges considered appropriate for investment of the plans' assets are determined by each plan's investment committee. The target allocations are 70% equity securities, 20% debt securities and 10% all other types of investments, except for the assets in pooled pension funds which are 82% equity securities, 14% debt securities, and 4% all other types of investments. Actual allocations will generally be within 5% of these targets. At December 31, 2011, there were no significant holdings of any single issuer and the exposure to derivative instruments was not significant.

The following tables present the Company's pension plan assets measured at fair value on a recurring basis:

	December 31, 2011
Asset Category	Level 1		Level 2		Level 3		Total
	(in millions)
Equity securities:
U.S. large cap stocks	$	75	$	9	$	—	$	84
U.S. small cap stocks		38		1		—		39
Non-U.S. large cap stocks		14		23		—		37
Emerging markets		10		15		—		25
Debt securities:
U.S. investment grade bonds		17		15		—		32
U.S. high yield bonds		—		11		—		11
Non-U.S. investment grade bonds		—		16		—		16
Real estate investment trusts		—		—		11		11
Hedge funds		—		—		12		12
Pooled pension funds		—		80		—		80
Cash equivalents		15		—		—		15
Total	$	169	$	170	$	23	$	362

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	December 31, 2010
Asset Category	Level 1		Level 2		Level 3		Total
	(in millions)
Equity securities:
U.S. large cap stocks	$	72	$	3	$	—	$	75
U.S. small cap stocks		33		1		—		34
Non-U.S. large cap stocks		12		18		—		30
Emerging markets		15		14		—		29
Debt securities:
U.S. investment grade bonds		13		9		—		22
U.S. high yield bonds		—		11		—		11
Non-U.S. investment grade bonds		—		12		—		12
Real estate investment trusts		—		—		8		8
Hedge funds		—		—		9		9
Pooled pension funds		—		79		—		79
Cash equivalents		18		—		—		18
Total	$	163	$	147	$	17	$	327

Equity securities are managed to track the performance of common market indices for both U.S. and non-U.S. securities, primarily across large cap, small cap and emerging market asset classes. Debt securities are managed to track the performance of common market indices for both U.S. and non-U.S. investment grade bonds as well as a pool of U.S. high yield bonds. Real estate investment trusts are managed to track the performance of a broad population of investment grade non-agricultural income producing properties. The Company's investments in hedge funds include investments in a multi-strategy fund and an off-shore fund managed to track the performance of broad fund of fund indices. Pooled pension funds are managed to return 1.5% in excess of a common index of similar pooled pension funds on a rolling three year basis. Cash equivalents consist of holdings in a money market fund that seeks to equal the return of the three month U.S. Treasury bill.

The fair value of real estate investment trusts is based primarily on the underlying cash flows of the properties within the trusts which are significant unobservable inputs and classified as Level 3. The fair value of the hedge funds is based on the proportionate share of the underlying net assets of the funds, which are significant unobservable inputs and classified as Level 3. The fair value of pooled pension funds and equity securities held in collective trust funds is based on the fund's NAV and classified as Level 2 as they trade in principal-to-principal markets. Equity securities and mutual funds traded in active markets are classified as Level 1. For debt securities and cash equivalents, the valuation techniques and classifications are consistent with those used for the Company's own investments as described in Note 14.

The following table provides a summary of changes in Level 3 assets measured at fair value on a recurring basis:

Asset Category	Real Estate Investment Trusts		Hedge Funds
Balance at January 1, 2010	$	5	$	—
Actual return on plan assets:
Relating to assets still held at the reporting date		1		—
Purchases, sales, and settlements, net		2		9
Balance at December 31, 2010		8		9
Actual return on plan assets:
Relating to assets still held at the reporting date		1		—
Purchases		2		11
Sales		—		(8	)
Balance at December 31, 2011	$	11	$	12

The Company's pension plans expect to make benefit payments to retirees as follows:

	(in millions)
2012	$	45
2013		48
2014		49
2015		51
2016		53
2017-2021		250

The Company expects to contribute $46 million to its pension plans in 2012.

Other Postretirement Benefits

The Company sponsors defined benefit postretirement plans that provide health care and life insurance to retired U.S. employees. Net periodic postretirement benefit costs were nil, nil and $2 million in 2011, 2010 and 2009, respectively.

157         

The following table provides a reconciliation of the changes in the defined postretirement benefit plan obligation:

	2011			2010
	(in millions)
Benefit obligation, January 1	$	21		$	22
Interest cost		1			1
Benefits paid		(5	)		(5	)
Participant contributions		4			4
Actuarial gain		(2	)		(1	)
Benefit obligation, December 31	$	19		$	21

The recognized liabilities for the Company's defined postretirement benefit plans are unfunded. At December 31, 2011 and 2010, the recognized liabilities were $19 million and $21 million, respectively, which was equal to the funded status of the Company's postretirement benefit plans.

The amounts recognized in accumulated other comprehensive income (loss), net of tax, as of December 31, 2011 but not recognized as components of net periodic benefit cost included an unrecognized actuarial gain of $7 million and an unrecognized prior service cost of nil. The estimated amount that will be amortized from accumulated other comprehensive income (loss), net of tax, into net periodic benefit cost in 2012 is approximately $1 million.

The weighted average assumptions used to determine benefit obligations for other postretirement benefits were as follows:

	2011			2010
Discount rates		4.15	%		4.90	%
Healthcare cost increase rates:
Following year		7.00			7.50
Decreasing to the year 2016		5.00			5.00

Discount rates are based on yields available on high-quality corporate bonds that would generate cash flows necessary to pay the benefits when due.

A one percentage-point change in the assumed healthcare cost trend rates would not have a material effect on the postretirement benefit obligation or net periodic postretirement benefit costs.

The Company's defined benefit postretirement plans expect to make benefit payments to retirees as follows:

	(in millions)
2012	$	2
2013		2
2014		2
2015		1
2016		1
2017-2021		7

The Company expects to contribute $2 million to its defined benefit postretirement plans in 2012.

The following is a summary of unrealized losses included in other comprehensive income related to the Company's defined benefit plans:

	2011			2010			2009
	(in millions)
Net unrealized defined benefit losses at January 1	$	(24	)	$	(20	)	$	(39	)
Net gains (losses)		(77	)		(4	)		15
Prior service cost (credit)		(2	)		(2	)		14
Income tax benefit (provision)		28			2			(10	)
Net unrealized defined benefit losses at December 31	$	(75	)	$	(24	)	$	(20	)

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Defined Contribution Plan

In addition to the plans described previously, the Company's employees are generally eligible to participate in the Ameriprise Financial 401(k) Plan (the "401(k) Plan"). The 401(k) Plan allows eligible employees to make contributions through payroll deductions up to IRS limits and invest their contributions in one or more of the 401(k) Plan investment options, which include the Ameriprise Financial Stock Fund. Effective March 1, 2010, the Company matches 100% of the first 5% of eligible compensation an employee contributes on a pretax or Roth 401(k) basis for each annual period. Prior to March 1, 2010, the Company matched 100% of the first 3% of base pay an employee contributed on a pretax basis each pay period. Effective March 1, 2010, the Company no longer makes an annual discretionary variable match. Prior to May 2009, the Company also made contributions equal to 1% of base pay each pay period, which were automatically invested in the Ameriprise Financial Stock Fund.

Under the 401(k) Plan, employees become eligible for contributions under the plan during the pay period they reach 60 days of service. Fixed and variable match contributions and stock contributions are fully vested after five years of service, vesting ratably over the first five years of service. The Company's defined contribution plan expense was $33 million, $32 million and $16 million in 2011, 2010 and 2009, respectively.

Threadneedle Profit Sharing Plan

On an annual basis, Threadneedle employees are eligible for a profit sharing arrangement. The employee profit sharing plan provides for profit sharing of 30% based on an internally defined recurring pretax operating income measure for Threadneedle, which primarily includes pretax income related to investment management services and investment portfolio income excluding gains and losses on asset disposals, certain reorganization expenses, EPP and EIP expenses and other non-recurring expenses. Compensation expense related to the employee profit sharing plan was $54 million, $52 million and $32 million in 2011, 2010 and 2009, respectively.

22. Commitments, Guarantees and Contingencies

Commitments

The Company is committed to pay aggregate minimum rentals under noncancelable operating leases for office facilities and equipment in future years as follows:

	(in millions)
2012	$	97
2013		88
2014		83
2015		73
2016		61
Thereafter		206
Total	$	608

For the years ended December 31, 2011, 2010 and 2009, operating lease expense was $97 million, $103 million and $103 million, respectively.

The following table presents the Company's funding commitments:

	December 31,
	2011		2010
	(in millions)
Commercial mortgage loan commitments	$	19	$	22
Consumer mortgage loan commitments		730		525
Consumer lines of credit		1,685		1,533
Affordable housing partnerships		267		188
Total funding commitments	$	2,701	$	2,268

The Company's life and annuity products all have minimum interest rate guarantees in their fixed accounts. As of December 31, 2011, these guarantees range up to 5%. To the extent the yield on the Company's invested asset portfolio declines below its target spread plus the minimum guarantee, the Company's profitability would be negatively affected.

Guarantees

Owing to conditions then-prevailing in the credit markets and the isolated defaults of unaffiliated structured investment vehicles held in the portfolios of money market funds advised by its Columbia Management Investment Advisers, LLC subsidiary (the "2a-7 Funds"), the Company closely monitored the net asset value of the 2a-7 Funds during 2008 and

159         

through the date of this report and, as circumstances warranted from time to time, injected capital into one or more of the 2a-7 Funds. The Company has not provided a formal capital support agreement or net asset value guarantee to any of the 2a-7 Funds.

Contingencies

The Company and its subsidiaries are involved in the normal course of business in legal, regulatory and arbitration proceedings, including class actions, concerning matters arising in connection with the conduct of its activities as a diversified financial services firm. These include proceedings specific to the Company as well as proceedings generally applicable to business practices in the industries in which it operates. The Company can also be subject to litigation arising out of its general business activities, such as its investments, contracts, leases and employment relationships. Uncertain economic conditions, heightened and sustained volatility in the financial markets and significant financial reform legislation may increase the likelihood that clients and other persons or regulators may present or threaten legal claims or that regulators increase the scope or frequency of examinations of the Company or the financial services industry generally.

As with other financial services firms, the level of regulatory activity and inquiry concerning the Company's businesses remains elevated. From time to time, the Company receives requests for information from, and/or has been subject to examination or claims by, the SEC, FINRA, the Federal Reserve Bank, the OCC, the Financial Services Authority, state insurance and securities regulators, state attorneys general and various other domestic or foreign governmental and quasi-governmental authorities on behalf of themselves or clients concerning the Company's business activities and practices, and the practices of the Company's financial advisors. During recent periods, the Company has received information requests, exams or inquiries regarding certain matters, including: sales of, or disclosures pertaining to, mutual funds, annuities, equity and fixed income securities, low priced securities, insurance products, brokerage services, financial advice offerings; trading practices within the Company's asset management business; supervision of the Company's financial advisors; company procedures and information security. The Company is also responding to regulatory audits, market conduct examinations and other inquiries (including inquiries from the states of Minnesota and New York) relating to an industry-wide investigation of unclaimed property and escheatment practices and procedures. The number of reviews and investigations has increased in recent years with regard to many firms in the financial services industry, including Ameriprise Financial. The Company has cooperated and will continue to cooperate with the applicable regulators regarding their inquiries.

These legal and regulatory proceedings and disputes are subject to uncertainties and, as such, the Company is unable to predict the ultimate resolution or range of loss that may result. An adverse outcome in one or more of these proceedings could result in adverse judgments, settlements, fines, penalties or other relief, in addition to further claims, examinations or adverse publicity that could have a material adverse effect on the Company's consolidated financial condition or results of operations.

Certain legal and regulatory proceedings are described below.

In June 2004, an action captioned John E. Gallus et al. v. American Express Financial Corp. and American Express Financial Advisors Inc., was filed in the United States District Court for the District of Arizona, and was later transferred to the United States District Court for the District of Minnesota. The plaintiffs alleged that they were investors in several of the Company's mutual funds and they purported to bring the action derivatively on behalf of those funds under the Investment Company Act of 1940 (the '40 Act). The plaintiffs alleged that fees allegedly paid to the defendants by the funds for investment advisory and administrative services were excessive. Plaintiffs seek an order declaring that defendants have violated the '40 Act and awarding unspecified damages including excessive fees allegedly paid plus interest and other costs. On July 6, 2007, the district court granted the Company's motion for summary judgment, dismissing all claims with prejudice. Plaintiffs appealed the district court's decision, and on April 8, 2009, the U.S. Court of Appeals for the Eighth Circuit reversed the district court's decision, and remanded the case for further proceedings. The Company filed with the United States Supreme Court a Petition for Writ of Certiorari to review the judgment of the Court of Appeals in this case in light of the Supreme Court's anticipated review of a similar excessive fee case captioned Jones v. Harris Associates. On March 30, 2010, the Supreme Court issued its ruling in Jones v. Harris Associates, and on April 5, 2010, the Supreme Court vacated the Eighth Circuit's decision in this case and remanded it to the Eighth Circuit for further consideration in light of the Supreme Court's decision in Jones v. Harris Associates. Without any further briefing or argument, on June 4, 2010, the Eighth Circuit remanded the case to the district court for further consideration in light of the Supreme Court's decision in Jones v. Harris Associates. On December 8, 2010, the district court re-entered its July 2007 order granting summary judgment in favor of the Company. Plaintiffs filed a notice of appeal with the Eighth Circuit on January 10, 2011. The Eighth Circuit Court heard oral arguments of the parties on November 17, 2011. The Company is awaiting the Court's ruling.

In November 2010, the Company's J. & W. Seligman & Co. Incorporated subsidiary ("Seligman") received a governmental inquiry regarding an industry insider trading investigation, as previously stated by the Company in general media reporting. The Company continues to cooperate fully with that inquiry. Neither the Company nor Seligman has been accused of any

         160

wrongdoing, and the government has confirmed that neither the Company nor any of its affiliated entities is a target of its investigation into potential insider trading.

In October 2011, a putative class action lawsuit entitled Roger Krueger, et al. vs. Ameriprise Financial, et al. was filed in the United States District Court for the District of Minnesota against the Company, certain of its present or former employees and directors, as well as certain fiduciary committees on behalf of participants and beneficiaries of the Ameriprise Financial 401(k) Plan. The alleged class period is from October 1, 2005, to the present. The action alleges that Ameriprise breached fiduciary duties under ERISA by selecting and retaining primarily proprietary mutual funds with allegedly poor performance histories, higher expenses relative to other investment options, and improper fees paid to Ameriprise Financial, Inc. or its subsidiaries. The action also alleges that the Company breached fiduciary duties under ERISA because it used its affiliate Ameriprise Trust Company as the Plan trustee and record-keeper and improperly reaped profits from the sale of the record-keeping business to Wachovia Bank, N.A. Plaintiffs allege over $20 million in damages. On January 17, 2012, all defendants filed a brief and other documents in support of their motion to dismiss the complaint. Plaintiffs filed an amended complaint on February 7, 2012. An amended briefing and hearing schedule for the motion to dismiss this amended complaint will be set by the court.

23. Related Party Transactions

The Company may engage in transactions in the ordinary course of business with significant shareholders or their subsidiaries, between the Company and its directors and officers or with other companies whose directors or officers may also serve as directors or officers for the Company or its subsidiaries. The Company carries out these transactions on customary terms. The transactions have not had a material impact on the Company's consolidated results of operations or financial condition.

The Company's executive officers and directors may have transactions with the Company or its subsidiaries involving financial products and insurance services. All obligations arising from these transactions are in the ordinary course of the Company's business and are on the same terms in effect for comparable transactions with the general public. Such obligations involve normal risks of collection and do not have features or terms that are unfavorable to the Company's subsidiaries.

24. Discontinued Operations

During the fourth quarter of 2011, the Company sold Securities America to Ladenburg Thalmann Financial Services, Inc. for $150 million in cash and potential future payments if Securities America reaches certain financial criteria. The components of income (loss) from discontinued operations, net of tax, were as follows for the years ended December 31:

	2011			2010			2009
	(in millions)
Total net revenues	$	382		$	467		$	412
Loss from discontinued operations	$	(124	)	$	(40	)	$	—
Gain on sale		26			—			—
Income tax benefit		(38	)		(16	)		(1	)
Income (loss) from discontinued operations, net of tax	$	(60	)	$	(24	)	$	1

161         

Assets and liabilities classified as held for sale as of December 31, 2010 were as follows:

	(in millions)
Assets:
Cash and cash equivalents	$	23
Receivables		40
Other assets		110
Total assets held for sale	$	173
Liabilities:
Long-term debt	$	5
Accounts payable and accrued expenses		26
Other liabilities		48
Total liabilities held for sale	$	79

Included in other assets at December 31, 2010, were $48 million of goodwill and $8 million of intangible assets related to Securities America.

25. Segment Information

The Company's segments are Advice & Wealth Management, Asset Management, Annuities, Protection and Corporate & Other. Each segment records revenues and expenses as if they were each a stand-alone business using the Company's transfer pricing methodology. Transfer pricing uses rates that approximate market-based arm's length prices for specific services provided. The Company reviews the transfer pricing rates periodically and makes appropriate adjustments to ensure the transfer pricing rates that approximate arm's length market prices remain at current market levels. Costs related to shared services are allocated to segments based on their usage of the services provided.

The largest source of intersegment revenues and expenses is retail distribution services, where segments are charged transfer pricing rates that approximate arm's length market prices for distribution through the Advice & Wealth Management segment. The Advice & Wealth Management segment provides distribution services for affiliated and non-affiliated products and services. The Asset Management segment provides investment management services for the Company's owned assets and client assets, and accordingly charges investment and advisory management fees to the other segments.

All costs related to shared services are allocated to the segments based on a rate times volume or fixed basis.

The Advice & Wealth Management segment provides financial planning and advice, as well as full service brokerage and banking services, primarily to retail clients through the Company's affiliated advisors. The Company's affiliated advisors have access to a diversified selection of both affiliated and non-affiliated products to help clients meet their financial needs. A significant portion of revenues in this segment is fee-based, driven by the level of client assets, which is impacted by both market movements and net asset flows. The Company also earns net investment income on invested assets primarily from certificate and banking products. This segment earns revenues (distribution fees) for distributing non-affiliated products and earns intersegment revenues (distribution fees) for distributing the Company's affiliated products and services provided to its retail clients. Intersegment expenses for this segment include expenses for investment management services provided by the Asset Management segment.

The Asset Management segment provides investment advice and investment products to retail and institutional clients. Columbia Management Investment Advisers, LLC ("Columbia" or "Columbia Management") predominantly provides U.S. domestic products and services and Threadneedle predominantly provides international investment products and services. Columbia retail products are provided through unaffiliated third party financial institutions and through the Advice & Wealth Management segment. Institutional products and services are primarily sold through the Company's institutional sales force. Threadneedle retail products are primarily provided through third parties. Retail products include mutual funds and variable product funds underlying insurance and annuity separate accounts. Institutional asset management services are designed to meet specific client objectives and may involve a range of products including those that focus on traditional asset classes, separately managed accounts, individually managed accounts, collateralized loan obligations, hedge funds, collective funds and property funds. Revenues in this segment are primarily earned as fees based on managed asset balances, which are impacted by both market movements and net asset flows. In addition to the products and services provided to third party clients, management teams serving our Asset Management segment provide all intercompany asset management services. The fees for all such services are reflected within the Asset Management segment results through intersegment transfer pricing. Intersegment expenses for this segment include distribution expenses for services provided by the Advice & Wealth Management, Annuities and Protection segments.

         162

The Annuities segment provides variable and fixed annuity products of RiverSource Life companies to retail clients. Prior to the fourth quarter of 2010, the Company's variable annuity products were provided through both affiliated and unaffiliated advisors through third-party distribution. During the fourth quarter of 2010, the Company discontinued new sales of its variable annuities in non-Ameriprise channels to further strengthen the risk and return characteristics of the business. The Company's fixed annuity products are provided through affiliated advisors as well as unaffiliated advisors through third-party distribution. Revenues for the Company's variable annuity products are primarily earned as fees based on underlying account balances, which are impacted by both market movements and net asset flows. Revenues for the Company's fixed annuity products are primarily earned as net investment income on invested assets supporting fixed account balances, with profitability significantly impacted by the spread between net investment income earned and interest credited on the fixed account balances. The Company also earns net investment income on invested assets supporting reserves for immediate annuities and for certain guaranteed benefits offered with variable annuities and on capital supporting the business. Intersegment revenues for this segment reflect fees paid by the Asset Management segment for marketing support and other services provided in connection with the availability of RiverSource Variable Series Trust, Columbia Funds Variable Insurance Trust, Columbia Funds Variable Insurance Trust I and Wanger Advisors Trust funds under the variable annuity contracts. Intersegment expenses for this segment include distribution expenses for services provided by the Advice & Wealth Management segment, as well as expenses for investment management services provided by the Asset Management segment.

The Protection segment offers a variety of protection products to address the protection and risk management needs of the Company's retail clients including life, DI and property-casualty insurance. Life and DI products are primarily provided through the Company's affiliated advisors. The Company's property-casualty products are provided direct, primarily through affinity relationships. The Company issues insurance policies through its life insurance subsidiaries and the property casualty companies. The primary sources of revenues for this segment are premiums, fees, and charges that the Company receives to assume insurance-related risk. The Company earns net investment income on invested assets supporting insurance reserves and capital supporting the business. The Company also receives fees based on the level of assets supporting VUL separate account balances. This segment earns intersegment revenues from fees paid by the Asset Management segment for marketing support and other services provided in connection with the availability of RiverSource Variable Series Trust, Columbia Funds Variable Insurance Trust, Columbia Funds Variable Insurance Trust I and Wanger Advisors Trust funds under the VUL contracts. Intersegment expenses for this segment include distribution expenses for services provided by the Advice & Wealth Management segment, as well as expenses for investment management services provided by the Asset Management segment.

The Corporate & Other segment consists of net investment income or loss on corporate level assets, including excess capital held in the Company's subsidiaries and other unallocated equity and other revenues as well as unallocated corporate expenses. The Corporate & Other segment also includes revenues and expenses of consolidated investment entities.

The accounting policies of the segments are the same as those of the Company, except for the method of capital allocation and the accounting for gains (losses) from intercompany revenues and expenses, which are eliminated in consolidation.

The following is a summary of assets by segment:

	December 31,
	2011		2010
	(in millions)
Advice & Wealth Management	$	12,293	$	11,241
Asset Management		6,863		7,854
Annuities		87,266		84,836
Protection		18,915		18,571
Corporate & Other		8,649		8,539
Assets held for sale		—		173
Total assets	$	133,986	$	131,214

163         

The following is a summary of segment results:

	Year Ended December 31, 2011
	Advice & Wealth Management		Asset Management		Annuities		Protection		Corporate & Other			Eliminations			Consolidated
	(in millions)
Revenue from external customers	$	2,825	$	2,811	$	2,379	$	2,035	$	189		$	—		$	10,239
Intersegment revenue		931		92		252		38		2			(1,315	)		—
Total revenues		3,756		2,903		2,631		2,073		191			(1,315	)		10,239
Banking and deposit interest expense		48		3		—		1		(1	)		(4	)		47
Net revenues		3,708		2,900		2,631		2,072		192			(1,311	)		10,192
Depreciation and amortization expense		86		83		481		208		29			—			887
All other expenses		3,221		2,381		1,629		1,494		506			(1,311	)		7,920
Total expenses		3,307		2,464		2,110		1,702		535			(1,311	)		8,807
Income (loss) from continuing operations before income tax provision	$	401	$	436	$	521	$	370	$	(343	)	$	—		$	1,385
Income tax provision																355
Income from continuing operations																1,030
Loss from discontinued operations, net of tax																(60	)
Net income																970
Less: Net loss attributable to noncontrolling interests																(106	)
Net income attributable to Ameriprise Financial															$	1,076

	Year Ended December 31, 2010
	Advice & Wealth Management		Asset Management		Annuities			Protection		Corporate & Other			Eliminations			Consolidated
	(in millions)
Revenue from external customers	$	2,526	$	2,294	$	2,324		$	2,013	$	425		$	—		$	9,582
Intersegment revenue		884		75		176			35		1			(1,171	)		—
Total revenues		3,410		2,369		2,500			2,048		426			(1,171	)		9,582
Banking and deposit interest expense		67		1		—			1		3			(2	)		70
Net revenues		3,343		2,368		2,500			2,047		423			(1,169	)		9,512
Depreciation and amortization expense		88		105		(75	)		189		23			—			330
All other expenses		2,939		1,945		1,927			1,455		451			(1,169	)		7,548
Total expenses		3,027		2,050		1,852			1,644		474			(1,169	)		7,878
Income (loss) from continuing operations before income tax provision	$	316	$	318	$	648		$	403	$	(51	)	$	—		$	1,634
Income tax provision																	350
Income from continuing operations																	1,284
Loss from discontinued operations, net of tax																	(24	)
Net income																	1,260
Less: Net income attributable to noncontrolling interests																	163
Net income attributable to Ameriprise Financial																$	1,097

         164

	Year Ended December 31, 2009
	Advice & Wealth Management			Asset Management		Annuities		Protection		Corporate & Other			Eliminations			Consolidated
	(in millions)
Revenue from external customers	$	2,103		$	1,304	$	2,165	$	1,935	$	31		$	—		$	7,538
Intersegment revenue		834			44		100		30		2			(1,010	)		—
Total revenues		2,937			1,348		2,265		1,965		33			(1,010	)		7,538
Banking and deposit interest expense		133			2		—		1		7			(2	)		141
Net revenues		2,804			1,346		2,265		1,964		26			(1,008	)		7,397
Depreciation and amortization expense		100			83		54		167		31			—			435
All other expenses		2,737			1,203		1,563		1,300		247			(1,008	)		6,042
Total expenses		2,837			1,286		1,617		1,467		278			(1,008	)		6,477
Income (loss) from continuing operations before income tax provision	$	(33	)	$	60	$	648	$	497	$	(252	)	$	—		$	920
Income tax provision																	184
Income from continuing operations																	736
Income from discontinued operations, net of tax																	1
Net income																	737
Less: Net income attributable to noncontrolling interests																	15
Net income attributable to Ameriprise Financial																$	722

26. Quarterly Financial Data (Unaudited)

	2011											2010
	12/31		9/30			6/30			3/31			12/31			9/30			6/30		3/31
	(in millions, except per share data)
Net revenues	$	2,582	$	2,455		$	2,623		$	2,532		$	2,558		$	2,334		$	2,462	$	2,158
Income from continuing operations before income tax provision	$	352	$	247		$	399		$	387		$	368		$	446		$	462	$	358
Income from continuing operations	$	285	$	166		$	285		$	294		$	280		$	314		$	396	$	294
Income (loss) from discontinued operations, net of tax		13		2			(4	)		(71	)		(26	)		(2	)		2		2
Net income		298		168			281			223			254			312			398		296
Less: Net income (loss) attributable to noncontrolling interests		45		(105	)		(28	)		(18	)		(26	)		(32	)		139		82
Net income attributable to Ameriprise Financial	$	253	$	273		$	309		$	241		$	280		$	344		$	259	$	214
Earnings per share attributable to Ameriprise Financial, Inc. common shareholders:
Basic
Income from continuing operations	$	1.04	$	1.14		$	1.28		$	1.24		$	1.21		$	1.36		$	0.98	$	0.81
Income (loss) from discontinued operations		0.06		0.01			(0.02	)		(0.28	)		(0.10	)		(0.01	)		0.01		0.01
Net income	$	1.10	$	1.15		$	1.26		$	0.96		$	1.11		$	1.35		$	0.99	$	0.82
Diluted
Income from continuing operations	$	1.02	$	1.12		$	1.25		$	1.21		$	1.18		$	1.33		$	0.97	$	0.80
Income (loss) from discontinued operations		0.06		0.01			(0.02	)		(0.27	)		(0.10	)		(0.01	)		0.01		0.01
Net income	$	1.08	$	1.13		$	1.23		$	0.94		$	1.08		$	1.32		$	0.98	$	0.81
Weighted average common shares outstanding:
Basic		230.6		238.0			245.5			251.6			252.7			255.3			261.1		260.8
Diluted		234.5		242.0			251.0			257.7			258.9			259.9			265.3		265.0
Cash dividends declared per common share	$	0.51	$	0.23		$	0.23		$	0.18		$	0.18		$	0.18		$	0.18	$	0.17
Common share price:
High	$	50.85	$	59.49		$	63.78		$	65.12		$	58.17		$	48.80		$	49.54	$	45.88
Low	$	36.00	$	38.93		$	54.72		$	57.29		$	47.03		$	34.68		$	35.85	$	36.14

165         

Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure.

None.

Item 9A. Controls and Procedures.

Disclosure Controls and Procedures.

We maintain disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended (the "Exchange Act")) designed to provide reasonable assurance that the information required to be reported in the Exchange Act filings is recorded, processed, summarized and reported within the time periods specified in and pursuant to SEC regulations, including controls and procedures designed to ensure that this information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding the required disclosure. It should be noted that, because of inherent limitations, our company's disclosure controls and procedures, however well designed and operated, can provide only reasonable, and not absolute, assurance that the objectives of the disclosure controls and procedures are met.

Our management, under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report. Based upon that evaluation, our company's Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures were effective at a reasonable level of assurance as of December 31, 2011.

Changes in Internal Control over Financial Reporting.

There have not been any changes in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the fourth fiscal quarter of the year to which this report relates that have materially affected, or are reasonably likely to materially affect, our company's internal control over financial reporting.

Management's Report on Internal Control Over Financial Reporting

Our management is responsible for establishing and maintaining adequate internal control over financial reporting for the Company.

The Company's internal control over financial reporting is a process designed by, or under the supervision of, the Company's principal executive and principal financial officers and effected by the Company's Board of Directors, management and other personnel to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles in the United States of America, and includes those policies and procedures that:

•

Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company;

•

Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and

•

Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company's assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

The Company's management, with the participation of our Chief Executive Officer and Chief Financial Officer, assessed the effectiveness of the Company's internal control over financial reporting as of December 31, 2011. In making this assessment, the Company's management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission in Internal Control — Integrated Framework.

Based on management's assessment and those criteria, we believe that, as of December 31, 2011, the Company's internal control over financial reporting is effective.

PricewaterhouseCoopers, the Company's independent registered public accounting firm, has issued an audit report on the effectiveness of the Company's internal control over financial reporting as of December 31, 2011.

         166

Item 9B. Other Information.

None.

Part III.

Item 10. Directors, Executive Officers and Corporate Governance.

The following portions of the Proxy Statement are incorporated herein by reference:

•

information included under the caption "Items to be Voted on by Shareholders — Item 1 — Election of Directors";

•

information included under the caption "Requirements, Including Deadlines, for Submission of Proxy Proposals, Nomination of Directors and Other Business of Shareholders";

•

information under the caption "Corporate Governance — Codes of Conduct";

•

information included under the caption "Corporate Governance — Membership on Board Committees";

•

information under the caption "Corporate Governance — Nominating and Governance Committee — Director Nomination Process";

•

information included under the caption "Corporate Governance — Audit Committee";

•

information included under the caption "Corporate Governance — Audit Committee Financial Experts"; and

•

information under the caption "Section 16(a) Beneficial Ownership Reporting Compliance."

Executive Officers of our Company

Set forth below is a list of our executive officers as of the date this Annual Report on Form 10-K has been filed with the SEC. None of such officers has any family relationship with any other executive officer or our principal accounting officer, and none of such officers became an officer pursuant to any arrangement or understanding with any other person. Each such officer has been elected to serve until the next annual election of officers or until his or her successor is elected and qualified. Each officer's age is indicated by the number in parentheses next to his or her name.

James M. Cracchiolo — Chairman and Chief Executive Officer

Mr. Cracchiolo (53) has been our Chairman and Chief Executive Officer since September 2005. Prior to that time, Mr. Cracchiolo was Chairman and Chief Executive Officer of American Express Financial Corporation ("AEFC") since March 2001; President and Chief Executive Officer of AEFC since November 2000; and Group President, Global Financial Services of American Express since June 2000. He served as Chairman of American Express Bank Ltd. from September 2000 until April 2005 and served as President and Chief Executive Officer of Travel Related Services International from May 1998 through July 2003. He is also currently on the board of advisors of the March of Dimes and previously had served on the board of Tech Data Corporation.

Joseph E. Sweeney — President — Advice & Wealth Management, Products and Services

Mr. Sweeney (50) has been our President — Advice & Wealth Management, Products and Services since May 2009. Prior to that time, Mr. Sweeney served as President — Financial Planning, Products and Services. Prior to that, Mr. Sweeney served as Senior Vice President and General Manager of Banking, Brokerage and Managed Products of AEFC since April 2002. Prior thereto, he served as Senior Vice President and Head, Business Transformation, Global Financial Services of American Express from March 2001 until April 2002. Mr. Sweeney is currently on the board of directors of the Securities Industry and Financial Markets Association.

William F. Truscott — CEO — U.S. Asset Management and President, Annuities

Mr. Truscott (51) has been our CEO — U.S. Asset Management and President, Annuities since May 2010. Prior to that time, Mr. Truscott had served as our President — U.S. Asset Management, Annuities and Chief Investment Officer since February 2008 and as our President — U.S. Asset Management and Chief Investment Officer since September 2005. Prior to that, Mr. Truscott served as Senior Vice President and Chief Investment Officer of AEFC, a position he held since he joined the company in September 2001.

Walter S. Berman — Executive Vice President and Chief Financial Officer

Mr. Berman (69) has been our Executive Vice President and Chief Financial Officer since September 2005. Prior to that, Mr. Berman served as Executive Vice President and Chief Financial Officer of AEFC, a position he held since January 2003. From April 2001 to January 2004, Mr. Berman served as Corporate Treasurer of American Express.

167         

Kelli A. Hunter — Executive Vice President of Human Resources

Ms. Hunter (50) has been our Executive Vice President of Human Resources since September 2005. Prior to that, Ms. Hunter served as Executive Vice President of Human Resources of AEFC since joining our company in June 2005. Prior to joining AEFC, Ms. Hunter was Senior Vice President — Global Human Capital for Crown Castle International Corporation in Houston, Texas. Prior to that, she held a variety of senior level positions in human resources for Software Spectrum, Inc., Mary Kay, Inc., as well as Morgan Stanley Inc. and Bankers Trust New York Corporation.

John C. Junek — Executive Vice President and General Counsel

Mr. Junek (62) has been our Executive Vice President and General Counsel since September 2005. Prior to that, Mr. Junek served as Senior Vice President and General Counsel of AEFC since June 2000.

Glen Salow — Executive Vice President — Service Delivery and Technology

Mr. Salow (55) has been our Executive Vice President — Service Delivery and Technology since September 2005. Prior to that, Mr. Salow was Executive Vice President of Technologies and Operations of AEFC since May 2005 and was Executive Vice President and Chief Information Officer of American Express from March 2000 to May 2005.

Kim M. Sharan — President — Financial Planning and Wealth Strategies, Chief Marketing Officer

Ms. Sharan (54) has been our President — Financial Planning and Wealth Strategies, Chief Marketing Officer since June 2009. Prior to that time, Ms. Sharan served as Executive Vice President and Chief Marketing Officer. Prior to that, Ms. Sharan served as Senior Vice President and Chief Marketing Officer of AEFC since July 2004. Prior thereto, she served as Senior Vice President and Head of Strategic Planning of the Global Financial Services Division of American Express from October 2002 until July 2004. Prior to joining American Express, Ms. Sharan was Managing Director at Merrill Lynch in Tokyo, Japan, from February 2000 until September 2002.

Deirdre Davey McGraw — Executive Vice President — Corporate Communications and Community Relations

Ms. Davey McGraw (41) has been our Executive Vice President — Corporate Communications and Community Relations since February 2010. Previously, Ms. Davey McGraw served as Senior Vice President — Corporate Communications and Community Relations since February 2007 and as Vice President — Corporate Communications since May 2006. Prior thereto, Ms. Davey McGraw served as Vice President — Business Planning and Communications for our Chairman's Office, and prior to that, she served as Vice President — Business Planning and Communications for the Group President, Global Financial Services at American Express.

John R. Woerner — President — Insurance and Chief Strategy Officer

Mr. Woerner (43) has been our President — Insurance and Chief Strategy Officer since February 2008. Prior to his current role, he was Senior Vice President — Strategy and Business Development since September 2005. Prior to that, Mr. Woerner served as Senior Vice President — Strategic Planning and Business Development of AEFC since March 2005. Prior to joining AEFC, Mr. Woerner was a Principal at McKinsey & Co., where he spent approximately ten years serving leading U.S. and European financial services firms, and co-led McKinsey's U.S. Asset Management Practice.

Donald E. Froude — President — The Personal Advisors Group

Mr. Froude (56) has been our President — The Personal Advisors Group since September 2008. Prior to joining us, Mr. Froude served as managing director and head of U.S. distribution for Legg Mason, Inc. since 2006. Prior to that, he served as President of Intermediary Distribution for Columbia Management, a division of Bank of America, from 2004 to 2006. Prior thereto, he was president and chief executive officer of Quick & Reilly.

David K. Stewart — Senior Vice President and Controller (Principal Accounting Officer)

Mr. Stewart (58) has been our Senior Vice President and Controller since September 2005. Prior to that, Mr. Stewart served as Vice President and Controller of AEFC and its subsidiaries since June 2002, when he joined American Express. Prior thereto, Mr. Stewart held various management and officer positions in accounting, financial reporting and treasury operations at Lutheran Brotherhood, now known as Thrivent Financial for Lutherans, where he was Vice President — Treasurer from 1997 until 2001.

Corporate Governance

We have adopted a set of Corporate Governance Principles and Categorical Standards of Director Independence which, together with the charters of the three standing committees of the Board of Directors (Audit; Compensation and Benefits; and Nominating and Governance) and our Code of Conduct (which constitutes the Company's code of ethics), provide the framework for the governance of our company. A complete copy of our Corporate Governance Principles and Categorical Standards of Director Independence, the charters of each of the Board committees, the Code of Conduct (which applies

         168

not only to our Chief Executive Officer, Chief Financial Officer and Controller, but also to all other employees of our company) and the Code of Business Conduct for the Members of the Board of Directors may be found by clicking the "Corporate Governance" link found on our Investor Relations website at ir.ameriprise.com. You may also access our Investor Relations website through our main website at ameriprise.com by clicking on the "Investor Relations" link, which is located at the bottom of the page. (Information from such sites is not incorporated by reference into this report.) You may also obtain free copies of these materials by writing to our Corporate Secretary at our principal executive offices.

Item 11. Executive Compensation.

The following portions of the Proxy Statement are incorporated herein by reference:

•

information under the caption "Corporate Governance — Compensation and Benefits Committee — Compensation Committee Interlocks and Insider Participation";

•

information included under the caption "Compensation of Executive Officers"; and

•

information included under the caption "Compensation of Directors."

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.

Equity Compensation Plan Information

	(a)			(b)		(c)
	Number of securities to be issued upon exercise of outstanding options, warrants and rights			Weighted-average exercise price of outstanding options, warrants and rights		Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) — shares
Plan category
Equity compensation plans approved by security holders		19,328,115	(1)	$	39.22		8,959,697
Equity compensation plans not approved by security holders		6,744,057	(2)		32.60		6,259,603	(3)
Total		26,072,172		$	38.85		15,219,300

(1)

Includes 1,504,579 share units subject to vesting per the terms of the applicable plan which could result in the issuance of common stock. As the terms of these share based awards do not provide for an exercise price, they have been excluded from the weighted average exercise price in column B.

(2)

Includes 5,710,093 share units subject to vesting per the terms of the applicable plans which could result in the issuance of common stock. As the terms of these share based awards do not provide for an exercise price, they have been excluded from the weighted average exercise price in column B. For additional information on the Company's equity compensation plans see Note 16 — Share-Based Compensation to our Consolidated Financial Statements in Part II, Item 8 of this Annual Report on Form 10-K. The non-shareholder approved plans consist of the Ameriprise Financial 2008 Employment Incentive Equity Award Plan and the Amended Franchise Advisor Deferred Equity Program.

(3)

Consists of 2,959,218 shares of common stock issuable under the terms of the Ameriprise Financial 2008 Employment Incentive Equity Award Plan, 2,641,960 shares of common stock issuable under the Ameriprise Advisor Group Deferred Compensation Plan, and 658,425 shares of common stock issuable under the Amended Franchise Advisor Deferred Compensation Plan.

Descriptions of our equity compensation plans can be found in Note 16 to our Consolidated Financial Statements included in Part II, Item 8 of this Annual Report on Form 10-K. Information concerning the market for our common shares and our shareholders can be found in Part II, Item 5 of this Annual Report on Form 10-K. Price and dividend information concerning our common shares may be found in Note 26 to our Consolidated Financial Statements included in Part II, Item 8 of this Annual Report on Form 10-K. The information included under the caption "Ownership of Our Common Shares" in the Proxy Statement is incorporated herein by reference.

169         

Item 13. Certain Relationships and Related Transactions, and Director Independence.

The information under the captions "Corporate Governance — Director Independence," "Corporate Governance — Categorical Standards of Director Independence," "Corporate Governance — Independence of Committee Members" and "Certain Transactions" in the Proxy Statement is incorporated herein by reference.

Item 14. Principal Accountant Fees and Services.

The information set forth under the heading "Items to be Voted on by Shareholders — Item 3 — Ratification of Audit Committee's Selection of Independent Registered Public Accountants for 2012 — Independent Registered Public Accountant Fees"; " — Services to Associated Organizations"; and " —Policy on Pre-Approval of Services Provided by Independent Registered Public Accountants," in the Proxy Statement is incorporated herein by reference.

Part IV.

Item 15. Exhibits and Financial Statement Schedules.

(a)

1.    Financial Statements:

The information required herein has been provided in Item 8, which is incorporated herein by reference.

2.

Financial schedules required to be filed by Item 8 of this form, and by Item 15(b):

Schedule I — Condensed Financial Information of Registrant (Parent Company Only)

All other financial schedules are not required under the related instructions, or are inapplicable and therefore have been omitted.

3.

Exhibits:

The list of exhibits required to be filed as exhibits to this report are listed on pages E-1 through E-2 hereof under "Exhibit Index," which is incorporated herein by reference.

         170

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	AMERIPRISE FINANCIAL, INC. (Registrant)
Date: February 24, 2012	By	/s/ Walter S. Berman Walter S. Berman Executive Vice President and Chief Financial Officer

Power of Attorney

KNOW ALL PERSONS BY THESE PRESENTS, that each of the undersigned directors and officers of Ameriprise Financial, Inc., a Delaware corporation, does hereby make, constitute and appoint James M. Cracchiolo, Walter S. Berman and John C. Junek, and each of them, the undersigned's true and lawful attorneys-in-fact, with power of substitution, for the undersigned and in the undersigned's name, place and stead, to sign and affix the undersigned's name as such director and/or officer of said corporation to an Annual Report on Form 10-K or other applicable form, and all amendments thereto, to be filed by such corporation with the Securities and Exchange Commission, Washington, D.C., under the Securities Exchange Act of 1934, as amended, with all exhibits thereto and other supporting documents, with said Commission, granting unto said attorneys-in-fact, and any of them, full power and authority to do and perform any and all acts necessary or incidental to the performance and execution of the powers herein expressly granted.

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacity and on the dates indicated.

Date: February 24, 2012	By	/s/ James M. Cracchiolo James M. Cracchiolo Chairman and Chief Executive Officer (Principal Executive Officer and Director)
Date: February 24, 2012	By	/s/ Walter S. Berman Walter S. Berman Executive Vice President and Chief Financial Officer (Principal Financial Officer)
Date: February 24, 2012	By	/s/ David K. Stewart David K. Stewart Senior Vice President and Controller (Principal Accounting Officer)
Date: February 24, 2012	By	/s/ Lon R. Greenberg Lon R. Greenberg Director

171         

Date: February 24, 2012	By	/s/ Warren D. Knowlton Warren D. Knowlton Director
Date: February 24, 2012	By	/s/ W. Walker Lewis W. Walker Lewis Director
Date: February 24, 2012	By	/s/ Siri S. Marshall Siri S. Marshall Director
Date: February 24, 2012	By	/s/ Jeffrey Noddle Jeffrey Noddle Director
Date: February 24, 2012	By	/s/ H. Jay Sarles H. Jay Sarles Director
Date: February 24, 2012	By	/s/ Robert F. Sharpe, Jr. Robert F. Sharpe, Jr. Director
Date: February 24, 2012	By	/s/ William H. Turner William H. Turner Director

         172

Report of Independent Registered Public Accounting Firm on Financial Statement Schedule

To the Board of Directors and Shareholders of Ameriprise Financial, Inc.:

Our audit of the consolidated financial statements and of the effectiveness of internal control over financial reporting referred to in our report dated February 24, 2012 appearing in this Annual Report to Shareholders of Ameriprise Financial, Inc. on Form 10-K also included an audit of the financial statement schedule listed in the index appearing under Item 15(a)(2) of this Form 10-K. In our opinion, this financial statement schedule presents fairly, in all material respects, the information set forth therein when read in conjunction with the related consolidated financial statements.

Minneapolis, Minnesota
February 24, 2012

F-1         

Report of Independent Registered Public Accounting Firm

The Board of Directors and Shareholders of Ameriprise Financial, Inc.

We have audited the consolidated balance sheet of Ameriprise Financial, Inc. (the Company) as of December 31, 2010, and the related consolidated statements of operations, equity, and cash flows for each of the two years in the period ended December 31, 2010, and have issued our report thereon dated February 28, 2011, except for Note 24 (Discontinued Operations), as to which the date is February 24, 2012 (included elsewhere in this Registration Statement). Our audits also included the financial statement schedule for each of the two years in the period ended December 31, 2010 listed in Item 15(a) of this Annual Report (Form 10-K). This schedule is the responsibility of the Company's management. Our responsibility is to express an opinion based on our audits.

In our opinion, the financial statement schedule referred to above, when considered in relation to the basic financial statements taken as a whole, presents fairly in all material respects the information set forth therein.

As discussed in Note 2 to the financial statement schedule, certain 2010 and 2009 amounts have been retrospectively adjusted to reclassify the assets, liabilities and results of operations of a certain subsidiary as discontinued operations.

Minneapolis, Minnesota
February 28, 2011, except for Note 2 (Discontinued Operations), as to which the date is February 24, 2012

         F-2

Schedule I — Condensed Financial Information of Registrant

(Parent Company Only)

Table of Contents

Condensed Statements of Operations	F-4
Condensed Balance Sheets	F-5
Condensed Statements of Cash Flows	F-6
Notes to Condensed Financial Information of Registrant	F-7

F-3         

Schedule I — Condensed Financial Information of Registrant
Condensed Statements of Operations

(Parent Company Only)

	Years Ended December 31,
	2011			2010			2009
	(in millions)
Revenues
Management and financial advice fees	$	—		$	129		$	53
Distribution fees		9			11			—
Net investment income		18			17			22
Other revenues		30			29			68
Total revenues		57			186			143
Banking and deposit interest expense		—			1			1
Total net revenues		57			185			142
Expenses
Distribution expenses	$	5		$	(9	)	$	—
Interest and debt expense		95			107			127
General and administrative expense		223			288			271
Total expenses		323			386			398
Pretax loss before equity in earnings of subsidiaries		(266	)		(201	)		(256	)
Income tax benefit		(102	)		(120	)		(114	)
Loss before equity in earnings of subsidiaries		(164	)		(81	)		(142	)
Equity in earnings of subsidiaries excluding discontinued operations		1,300			1,202			863
Net income from continuing operations		1,136			1,121			721
Income (loss) from discontinued operations, net of tax		(60	)		(24	)		1
Net income	$	1,076		$	1,097		$	722

See Notes to Condensed Financial Information of Registrant.

         F-4

Schedule I — Condensed Financial Information of Registrant
Condensed Balance Sheets

(Parent Company Only)

	December 31,
	2011			2010
	(in millions, except share data)
Assets
Cash and cash equivalents	$	712		$	1,316
Investments		846			49
Loans to subsidiaries		624			564
Due from subsidiaries		122			109
Receivables		46			50
Land, buildings, equipment, and software, net of accumulated depreciation of $707 and $676, respectively		263			272
Investments in subsidiaries from continuing operations		9,332			9,819
Investments in subsidiaries held for sale		—			94
Other assets		1,357			1,159
Total assets	$	13,302		$	13,432
Liabilities and Shareholders' Equity
Liabilities:
Accounts payable and accrued expenses	$	167		$	178
Due to subsidiaries		261			354
Debt		2,393			2,311
Other liabilities		654			422
Total liabilities		3,475			3,265
Shareholders' Equity:
Common shares ($.01 par value; shares authorized, 1,250,000,000; shares issued, 303,757,574 and 301,366,044, respectively)		3			3
Additional paid-in capital		6,237			6,029
Retained earnings		6,983			6,190
Treasury shares, at cost (81,814,591 and 54,668,152 shares, respectively)		(4,034	)		(2,620	)
Accumulated other comprehensive income, net of tax, including amounts applicable to equity investments in subsidiaries		638			565
Total shareholders' equity		9,827			10,167
Total liabilities and shareholders' equity	$	13,302		$	13,432

See Notes to Condensed Financial Information of Registrant.

F-5         

Schedule I — Condensed Financial Information of Registrant
Condensed Statements of Cash Flows

(Parent Company Only)

	Years Ended December 31,
	2011			2010			2009
	(in millions)
Cash Flows from Operating Activities
Net income	$	1,076		$	1,097		$	722
Equity in earnings of subsidiaries excluding discontinued operations		(1,300	)		(1,202	)		(863	)
Loss (income) from discontinued operations, net of tax		60			24			(1	)
Dividends received from subsidiaries		1,210			796			204
Other operating activities, primarily with subsidiaries		(231	)		921			(90	)
Net cash provided by (used in) operating activities		815			1,636			(28	)
Cash Flows from Investing Activities
Available-for-Sale securities:
Proceeds from sales		—			31			29
Maturities, sinking fund payments and calls		239			151			86
Purchases		(22	)		(151	)		(139	)
Purchase of other investments		—			(32	)		—
Purchase of land, buildings, equipment and software		(56	)		(32	)		(29	)
Contributions to subsidiaries		(128	)		(73	)		(233	)
Return of capital from subsidiaries		22			116			60
Acquisitions		—			(866	)		—
Proceeds from sale of business		150			—			—
Repayment of loans from subsidiaries		1,252			1,282			1,400
Issuance of loans to subsidiaries		(1,312	)		(1,463	)		(1,599	)
Other, net		2			34			8
Net cash provided by (used in) investing activities		147			(1,003	)		(417	)
Cash Flows from Financing Activities
Repayments of debt	$	(14	)	$	(354	)	$	(550	)
Dividends paid to shareholders		(212	)		(183	)		(164	)
Repurchase of common shares		(1,495	)		(582	)		(11	)
Proceeds from issuance of common stock		—			—			869
Issuances of debt, net of issuance costs		—			744			491
Exercise of stock options		66			113			6
Excess tax benefits from share-based compensation		90			9			12
Other, net		(1	)		(2	)		(4	)
Net cash provided by (used in) financing activities		(1,566	)		(255	)		649
Net increase (decrease) in cash and cash equivalents		(604	)		378			204
Cash and cash equivalents at beginning of year		1,316			938			734
Cash and cash equivalents at end of year	$	712		$	1,316		$	938
Supplemental Disclosures:
Interest paid on debt	$	139		$	140		$	122
Income taxes paid, net		334			2			4
Non-cash capital transactions to (from) subsidiaries		(850	)		14			331
Non-cash financing activity:
Dividends declared but not paid		62			—			—

See Notes to Condensed Financial Information of Registrant.

         F-6

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 "Registrant," "Ameriprise Financial" or "Parent Company") and, on an equity basis, its subsidiaries and affiliates. The appropriated retained earnings of consolidated investment entities are not included on the Parent Company Only Condensed Financial Statements. The financial statements have been prepared in accordance with U.S. GAAP. Certain prior year amounts have been reclassified to conform to the current year's presentation. 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 certain derivative instruments is reflected on the Parent Company Only Condensed Statements of Operations. For certain of these derivatives, the change in the hedged item is reflected on the subsidiaries' Statements of Operations. The change in fair value of derivatives used to hedge certain asset-based distribution fees is included in distribution fees, while the underlying distribution fee revenue is reflected in equity in earnings of subsidiaries. The change in fair value of derivatives used to economically hedge exposure to equity price risk of Ameriprise Financial, Inc. common stock granted as part of the Ameriprise Financial Franchise Advisor Deferred Compensation Plan is included in distribution expenses, while the underlying distribution expenses are reflected in equity in earnings of subsidiaries.

2. Discontinued Operations

In the fourth quarter of 2011, Ameriprise Financial sold Securities America for $150 million. The results of Securities America have been presented as equity in income (loss) of discontinued operations for all periods presented and the related investment in subsidiary has been classified as held for sale as of December 31, 2010.

3. Debt

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

•

At December 31, 2010, the debt of Ameriprise Financial included $6 million of municipal bond inverse floater certificates that are non-recourse debt obligations supported by a $10 million portfolio of municipal bonds. The certificates were extinguished in 2011, funded through the call of the portfolio of municipal bonds.

•

At December 31, 2011 and 2010, the debt of Ameriprise Financial included $504 million and $397 million of repurchase agreements, respectively, which are accounted for as secured borrowings.

4. Guarantees, Commitments and Contingencies

The Parent Company is the guarantor for operating leases of IDS Property Casualty Insurance Company and certain other 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 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, up to a maximum commitment of $115 million. For the years ended December 31, 2011, 2010 and 2009, ACC did not draw upon the Capital Support Agreement and had met all applicable capital requirements.

F-7         

Exhibit Index

Pursuant to the rules and regulations of the Securities and Exchange Commission, we have filed certain agreements as exhibits to this Annual Report on Form 10-K. These agreements may contain representations and warranties by the parties. These representations and warranties have been made solely for the benefit of the other party or parties to such agreements and (i) may have been qualified by disclosures made to such other party or parties, (ii) were made only as of the date of such agreements or such other date(s) as may be specified in such agreements and are subject to more recent developments, which may not be fully reflected in our public disclosure, (iii) may reflect the allocation of risk among the parties to such agreements and (iv) may apply materiality standards different from what may be viewed as material to investors. Accordingly, these representations and warranties may not describe our actual state of affairs at the date hereof and should not be relied upon.

The following exhibits are filed as part of this Annual Report on Form 10-K. The exhibit numbers followed by an asterisk (*) indicate exhibits electronically filed herewith. All other exhibit numbers indicate exhibits previously filed and are hereby incorporated herein by reference. Exhibits numbered 10.2 through 10.22 are management contracts or compensatory plans or arrangements.

Exhibit	Description
3.1	Amended Restated Certificate of Incorporation of Ameriprise Financial, Inc. (incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K, File No. 1-32525, filed on April 30, 2010).
3.2	Amended and Restated Bylaws of Ameriprise Financial, Inc. (incorporated by reference to Exhibit 3.2 to the Current Report on Form 8-K, File No. 1-32525, filed on April 30, 2010).
4.1	Form of Specimen Common Stock Certificate (incorporated by reference to Exhibit 4.1 to Amendment No. 3 to Form 10 Registration Statement, File No. 1-32525, filed on August 19, 2005).
4.2	Indenture dated as of October 5, 2005, between Ameriprise Financial, Inc. and U.S. Bank National Association, trustee (incorporated by reference to Exhibit 4(a) to the Registration Statement on Form S-3, File No. 333-128834, filed on October 5, 2005).
4.3	Indenture dated as of May 5, 2006, between Ameriprise Financial, Inc. and U.S. Bank National Association, trustee (incorporated by reference to Exhibit 4.A to the Registration Statement on Form S-3ASR, File No. 333-133860, filed on May 5, 2006).
4.4	Junior Subordinated Debt Indenture, dated as of May 5, 2006, between Ameriprise Financial, Inc. and U.S. Bank National Association, trustee (incorporated by reference to Exhibit 4.C to the Registration Statement on Form S-3ASR, File No. 333-133860, filed on May 5, 2006).
	Other instruments defining the rights of holders of long-term debt securities of the registrant are omitted pursuant to Section (b)(4)(iii)(A) of Item 601 of Regulation S-K. The registrant agrees to furnish copies of these instruments to the SEC upon request.
10.1	Tax Allocation Agreement by and between American Express and Ameriprise Financial, Inc., dated as of September 30, 2005 (incorporated by reference to Exhibit 10.2 to the Current Report on Form 8-K, File No. 1-32525, filed on October 4, 2005).
10.2	Ameriprise Financial 2005 Incentive Compensation Plan, as amended and restated effective April 28, 2010 (incorporated by reference to Exhibit B to the Proxy Statement for the Annual Meeting of Shareholders held on April 28, 2010, File No. 001-32525, filed on March 19, 2010).
10.3*	Ameriprise Financial Deferred Compensation Plan, as amended and restated effective January 1, 2012.
10.4	Ameriprise Financial Supplemental Retirement Plan, as amended and restated effective April 1, 2010 (incorporated by reference to Exhibit 10.3 of the Quarterly Report on Form 10-Q, File No. 1-32525, filed on May 4, 2010).
10.5	Form of Ameriprise Financial 2005 Incentive Compensation Plan Master Agreement for Substitution Awards (incorporated by reference to Exhibit 10.8 to Amendment No. 2 to Form 10 Registration Statement, File No. 1-32525, filed on August 15, 2005).
10.6	Ameriprise Financial Form of Award Certificate — Non-Qualified Stock Option Award (incorporated by reference to Exhibit 10.4 to the Current Report on Form 8-K, File No. 1-32525, filed on October 4, 2005).
10.7	Ameriprise Financial Form of Award Certificate — Restricted Stock Award (incorporated by reference to Exhibit 10.5 to the Current Report on Form 8-K, File No. 1-32525, filed on October 4, 2005).
10.8	Ameriprise Financial Form of Award Certificate — Restricted Stock Unit Award (incorporated by reference to Exhibit 10.6 to the Current Report on Form 8-K, File No. 1-32525, filed on October 4, 2005).
10.9	Ameriprise Financial Form of Agreement — Cash Incentive Award (incorporated by reference to Exhibit 10.7 to the Current Report on Form 8-K, File No. 1-32525, filed on October 4, 2005).
10.10	Ameriprise Financial Long-Term Incentive Award Program Guide (incorporated by reference to Exhibit 10.10 of the Annual Report on Form 10-K, File No. 1-32525, filed on March 2, 2009).
10.11	Ameriprise Financial Performance Cash Unit Plan Supplement to the Long Term Incentive Award Program Guide (incorporated by reference to Exhibit 10.1 of the Quarterly Report on Form 10-Q, File No. 1-32525, filed on May 2, 2011).
10.12	Ameriprise Financial Form of Award Certificate — Performance Cash Unit Plan Award (incorporated by reference to Exhibit 10.2 of the Quarterly Report on Form 10-Q, File No. 1-32525, filed on May 2, 2011).
10.13	Ameriprise Financial Performance Share Unit Plan Supplement to the Long-Term Incentive Award Program Guide (incorporated by reference to Exhibit 10.3 of the Quarterly Report on Form 10-Q, File No. 1-32525, filed on May 2, 2011).

E-1         

Exhibit	Description
10.14	Ameriprise Financial Form of Award Certificate — Performance Share Unit Plan Award (incorporated by reference to Exhibit 10.4 of the Quarterly Report on Form 10-Q, File No. 1-32525, filed on May 2, 2011).
10.15*	Ameriprise Financial Deferred Share Plan for Outside Directors, as amended and restated effective January 1, 2012.
10.16	CEO Security and Compensation Arrangements (incorporated by reference to Item 1.01 of the Current Report on Form 8-K, File No. 1-32525, filed on October 31, 2005).
10.17*	Ameriprise Financial Senior Executive Severance Plan, as amended and restated effective January 1, 2012.
10.18	Restricted Stock Awards in lieu of Key Executive Life Insurance Program (incorporated by reference to Item 1.01 of the Current Report on Form 8-K, File No. 1-32525, filed on November 18, 2005).
10.19	Ameriprise Financial Annual Incentive Award Plan, adopted effective as of September 30, 2005 (incorporated by reference to Exhibit 10.28 of the Annual Report on Form 10-K, File No. 1-32525. filed on March 8, 2006).
10.20	Form of Indemnification Agreement for directors, Chief Executive Officer, Chief Financial Officer, General Counsel and Principal Accounting Officer and any other officers designated by the Chief Executive Officer (incorporated by reference to Exhibit 10.29 of the Annual Report on Form 10-K, File No. 1-32525, filed on March 8, 2006).
10.21	Ameriprise Financial 2008 Employment Incentive Equity Award Plan (incorporated by reference to Exhibit 4.1 to the Registration Statement on Form S-8, File No. 333-156075, filed on December 11, 2008).
10.22	Ameriprise Advisor Group Deferred Compensation Plan, as amended and restated effective January 1, 2010 (incorporated by reference to Exhibit 10.18 of the Annual Report on Form 10-K, File No. 1-32525, filed on February 24, 2010).
10.23	Credit Agreement, dated as of November 22, 2011, among Ameriprise Financial, Inc., the lenders party thereto, Wells Fargo Bank, National Association, as Administrative Agent, Bank of America, N.A., as Syndication Agent, and Credit Suisse AG, Cayman Islands Branch, HSBC Bank USA, National Association, and JPMorgan Chase Bank, N.A., as Co-Documentation Agents. (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K, File No. 1-32525, filed on November 23, 2011).
10.24	Capital Support Agreement by and between Ameriprise Financial, Inc. and Ameriprise Certificate Company, dated as of March 2, 2009 (incorporated by reference to Exhibit 10.19 of the Annual Report on Form 10-K, File No. 1-32525, filed on March 2, 2009).
12*	Ratio of Earnings to Fixed Charges.
13*	Portions of the Ameriprise Financial, Inc. 2011 Annual Report to Shareholders, which, except for those sections incorporated herein by reference, are furnished solely for the information of the SEC and are not to be deemed "filed."
21*	Subsidiaries of Ameriprise Financial, Inc.
23.1*	Consent of PricewaterhouseCoopers LLP, Independent Registered Public Accounting Firm.
23.2*	Consent of Ernst & Young LLP, Independent Registered Public Accounting Firm.
24	Powers of attorney (included on Signature Page).
31.1*	Certification of James M. Cracchiolo pursuant to Rule 13a-14(a) promulgated under the Securities Exchange Act of 1934, as amended.
31.2*	Certification of Walter S. Berman pursuant to Rule 13a-14(a) promulgated under the Securities Exchange Act of 1934, as amended.
32*	Certification of James M. Cracchiolo and Walter S. Berman pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101*	The following materials from Ameriprise Financial, Inc.'s Annual Report on Form 10-K for the year ended December 31, 2011, formatted in XBRL: (i) Consolidated Statements of Operations for the years ended December 31, 2011, 2010 and 2009; (ii) Consolidated Balance Sheets at December 31, 2011 and 2010; (iii) Consolidated Statements of Cash Flows for the years ended December 31, 2011, 2010 and 2009; (iv) Consolidated Statements of Equity for the years ended December 31, 2011, 2010 and 2009; and (v) Notes to the Consolidated Financial Statements.

         E-2

EX-10.3

Exhibit 10.3

AMERIPRISE FINANCIAL

DEFERRED COMPENSATION PLAN

As Amended and Restated Effective January 1, 2012

TABLE OF CONTENTS

ARTICLE 1 DEFINITIONS	1
ARTICLE 2 TRANSITION RULE	5
ARTICLE 3 ANNUAL PARTICIPANT DEFERRALS	6
ARTICLE 4 ANNUAL MATCH	8
ARTICLE 5 ANNUAL DISCRETIONARY ALLOCATION	9
ARTICLE 6 INVESTMENT OPTIONS, INVESTMENT ADJUSTMENTS AND TAXES	10
ARTICLE 7 BENEFICIARY DESIGNATION	13
ARTICLE 8 DISTRIBUTION OF PLAN ACCOUNTS	14
ARTICLE 9 LEAVE OF ABSENCE	15
ARTICLE 10 EFFECTS OF CERTAIN EVENTS	15
ARTICLE 11 AMENDMENT AND TERMINATION	17
ARTICLE 12 ADMINISTRATION	18
ARTICLE 13 CLAIMS PROCEDURES	19
ARTICLE 14 TRUST	21
ARTICLE 15 MISCELLANEOUS	22

AMERIPRISE FINANCIAL

DEFERRED COMPENSATION PLAN

As Amended and Restated Effective January 1, 2012

Purpose

The purpose of the Plan is to provide specified benefits to a select group of management or highly compensated Employees who contribute materially to the continued growth, development and future business success of Ameriprise Financial, Inc. and its subsidiaries.  The Plan shall be unfunded for tax purposes and for purposes of Title I of ERISA.

Article 1
Definitions

For purposes of the Plan, unless otherwise clearly apparent from the context, the following phrases or terms shall have the meanings indicated in this Article 1:

1.01.“Aggregate Vested Balance” shall mean, with respect to the Plan Accounts of any Participant as of a given date, the sum of the amounts that have become vested under all of the Participant’s Plan Accounts, as adjusted to reflect all applicable Investment Adjustments and all prior withdrawals and distributions, in accordance with Article 6 of the Plan and the provisions of the applicable Annual Enrollment Materials.

1.02.“Amended Distribution Election Form” shall mean the written form required by the Committee to be signed and submitted by a Participant to effect a permitted change in the Distribution Election previously made by the Participant under any Distribution Election Form.

1.03.“Annual Deferral Account” shall mean a Participant’s Annual Participant Deferral for a Plan Year, as adjusted to reflect all applicable Investment Adjustments and all prior withdrawals and distributions in accordance with Article 6 and the provisions of the applicable Annual Enrollment Materials.

1.04.“Annual Discretionary Allocation” shall mean the aggregate amount credited by a Participant’s Employer to a Participant in respect of a particular Plan Year under Article 5.

1.05.“Annual Discretionary Allocation Account” shall mean a Participant’s Annual Discretionary Allocation for a Plan Year, as adjusted to reflect all applicable Investment Adjustments and all prior withdrawals and distributions in accordance with Article 6 and the provisions of the applicable Annual Enrollment Materials.

1.06.“Annual Election Form” shall mean the written form required by the Committee to be signed and submitted by a Participant in connection with the Participant’s deferral election with respect to a given Plan Year.

1.07.“Annual Enrollment Forms” shall mean, for any Plan Year, the Annual Election Form, the Distribution Election Form and any other forms or documents which may be required of a Participant by the Committee, in its sole discretion.

1.08.“Annual Enrollment Materials” shall mean, for any Plan Year, the Annual Enrollment Forms and any other forms, documents or materials concerning the terms of any Annual Participant Deferral, Annual Match or Annual Discretionary Allocation for such Plan Year.

1.09.“Annual Match” shall mean the aggregate amount credited by a Participant’s Employer to a Participant in respect of a particular Plan Year under Article 4.

1.10.“Annual Match Account” shall mean a Participant’s Annual Match for a Plan Year, as adjusted to reflect all applicable Investment Adjustments and all prior withdrawals and distributions in accordance with Article 6 and the provisions of the applicable Annual Enrollment Materials.

1.11.“Annual Participant Deferral” shall mean the aggregate amount deferred by a Participant in respect of a particular Plan Year under Article 3.

1.12.“Beneficiary” shall mean one or more persons, trusts, estates or other entities, designated in accordance with Article 7, that are entitled to receive a distribution of a Participant’s Plan Accounts in the event of the Participant’s death.

1.13.“Beneficiary Designation Form” shall mean the Beneficiary Designation Form or amended Beneficiary Designation Form last signed and submitted by a Participant and accepted by the Committee.

1.14.“Board” shall mean the board of directors of the Company.

1.15.“Change in Control” shall mean any transaction or series of transactions that constitutes a change in the ownership or effective control of the Company or a change in the ownership of a substantial portion of the assets of the Company, in each case within the meaning of Section 409A.

1.16.“Claimant” shall have the meaning set forth in Article 13.01.

1.17.“Code” shall mean the Internal Revenue Code of 1986, as it may be amended from time to time, and all regulations, interpretations and administrative guidance issued thereunder.

1.18.“Committee” shall mean the Compensation and Benefits Committee of the Company or such other committee designated by the Board to administer the Plan.  Any reference herein to the Committee shall be deemed to include any person to whom any duty of the Committee has been delegated pursuant to Article 12.02.

1.19.“Company” shall mean Ameriprise Financial, Inc., a Delaware corporation, and any successor to all or substantially all of its assets or business.

1.20.“Company Stock” shall mean the common stock, par value $0.01 per share, of the Company.

2

1.21.“Company Stock Fund” shall mean the Investment Option that relates to the performance of Company Stock.

1.22.“Designation Date” shall mean the date or dates as of which a designation of investment directions by a Participant pursuant to Article 6, or any change in a prior designation of investment directions by a Participant pursuant to Article 6, shall become effective.  The Designation Date in any Plan Year shall be determined by the Committee; provided, however, that each trading day of the New York Stock Exchange shall be available as a Designation Date unless the Committee selects different Designation Dates.

1.23.“Disability” shall mean, with respect to a Participant, the Participant (a) is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, or (b) is, by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, receiving income replacement benefits for a period of not less than three months under an accident and health plan covering Employees of the Participant’s Employer.  In making its determination, the Committee shall be guided by the prevailing authorities applicable under Section 409A.

1.24.“Distribution Election” shall mean an election made in accordance with Article 8.01.

1.25.“Distribution Election Form” shall mean the written form required by the Committee to be signed and submitted by a Participant with respect to a Distribution Election for a given Plan Year.

1.26.“Elective Deductions” shall mean the deductions made from a Participant’s Eligible Compensation for amounts voluntarily deferred or contributed by the Participant pursuant to all qualified and non-qualified compensation deferral plans, including, without limitation, amounts not included in the Participant’s gross income under Sections 125, 132(f)(4), 402(e)(3) or 402(h) of the Code; provided, however, that all such amounts would have been payable in cash to the Employee had there been no such plan.

1.27.“Eligible Compensation” shall mean, for any Plan Year, the base salary, bonus or other items of compensation, including any Elective Deductions, designated by the Committee in the applicable Annual Enrollment Materials as eligible for deferral under the Plan for such Plan Year.

1.28.“Employee” shall mean a person who is an employee of any Employer, as determined by the Committee in its sole discretion.

1.29.“Employer” shall mean, as applicable, the Company or any of its subsidiaries listed on Schedule A attached hereto, as such Schedule A may be amended by the Committee, in its sole discretion, from time to time.

3

1.30.“ERISA” shall mean the Employee Retirement Income Security Act of 1974, as it may be amended from time to time, and all regulations, interpretations and administrative guidance issued thereunder.

1.31.“Investment Adjustment” shall mean an adjustment made to the balance of any Plan Account in accordance with Article 6.02 to reflect the performance of an Investment Option pursuant to which the value of the Plan Account or portion thereof is measured.

1.32.“Investment Agent” shall mean the person appointed by the Committee or the Trustee to invest the Plan Accounts of Participants, or if no person is so designated, the Committee.

1.33.“Investment Option” shall mean a hypothetical investment made available under the Plan from time to time by the Committee for purposes of valuing Plan Accounts.  In the event that an Investment Option ceases to exist or is no longer to be an Investment Option, the Committee may designate a substitute Investment Option for the discontinued hypothetical investment.

1.34.“Newly Eligible Employee” shall mean an Employee who becomes eligible to participate in the Plan during a Plan Year and who has not previously participated in the Plan or an elective or non-elective account-balance deferred compensation arrangement (as defined for purposes of Section 409A) of the Company, an Employer or any entity other than the Company with whom the Company would be considered a single employer under Sections 414(b) or 414(c) of the Code, as determined by the Committee and to the extent permissible under Section 409A.

1.35.“Participant” shall mean any eligible Employee (a) who is in a classification of Employees designated by the Committee to participate in the Plan or who is otherwise selected by the Committee to participate in the Plan, (b) who elects to participate in the Plan and signs the applicable Annual Election Forms or is credited with an Annual Discretionary Allocation under Article 5, (c) who commences participation in the Plan, and (d) whose participation in the Plan has not terminated.  A spouse or former spouse of a Participant shall not be treated as a Participant in the Plan or have an account balance under the Plan, even if he or she has an interest in the Participant’s benefits under the Plan as a result of applicable law or property settlements resulting from legal separation or divorce.

1.36.“Plan” shall mean the Ameriprise Financial Deferred Compensation Plan, which shall be evidenced by this instrument and by the Annual Enrollment Materials, as they may be amended from time to time.

1.37.“Plan Accounts” shall mean the Annual Deferral Accounts, Annual Match Accounts and Annual Discretionary Allocation Accounts established under the Plan.

1.38.“Plan Year” shall mean the 12-month period beginning on January 1 of each calendar year and ending on December 31 of such calendar year.

1.39.“Reporting Person” shall mean an Employee who is subject to the reporting requirements of Section 16(a) of the Securities Exchange Act of 1934, as amended.

4

1.40.“Retirement” shall mean, with respect to a Participant, the Participant’s Termination of Employment on or after the date that such Participant becomes Retirement Eligible.

1.41.“Retirement Eligible” shall mean, with respect to a Participant, that the Participant has attained age 55 and has completed ten or more Years of Service with the Company or its affiliates.

1.42.“Section 409A” means Section 409A of the Code, and the Treasury Regulations promulgated and other official guidance issued thereunder.

1.43.“Termination of Employment” shall mean a “separation from service” as defined under Section 409A, as determined in accordance with the Company’s Policy Regarding Section 409A Compliance.

1.44.“Trust” shall mean a trust established in accordance with Article 14.

1.45.“Trustee” shall mean the trustee of the Trust.

1.46.“Unforeseeable Emergency” shall mean, with respect to a Participant, a severe financial hardship to the Participant resulting from an illness or accident of the Participant, the Participant’s spouse, or a dependent (as defined in Section 152(a) of the Code) of the Participant, loss of the Participant’s property due to casualty, or other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant.  In making its determination, the Committee shall be guided by the prevailing authorities applicable under Section 409A.

1.47.“Years of Service” shall mean the total number of actual or deemed full Plan Years during which a Participant has been employed by one or more Employers.  For purposes of determining a Participant’s Years of Service, such Participant’s service with American Express Company will be taken into account if and to the extent, and in accordance with, the provisions of the Employee Benefits Agreement by and between American Express Company and the Company, dated as of September 30, 2005.  Any partial Plan Year during which a Participant has been employed by an Employer shall be counted pro-rata.

Article 2
Transition Rule

2.01.Opening Plan Account Balances and Participation.  Unless otherwise expressly set forth herein, the Plan Account balance as of the closing date of the Stock Purchase Agreement, dated as of August 12, 2008, by and between Block Financial LLC, Ameriprise Financial, Inc. and H&R Block, Inc. (the “Stock Purchase Agreement”), of any individual who had accumulated benefits under the H&R Block Financial Advisors, Inc. Deferred Compensation Plan (the “HRBFA Plan”), the responsibility for which was transferred to the Company pursuant to the Stock Purchase Agreement, shall be the account balance such Participant had in the HRBFA Plan on October 31, 2008 (the “Closing Date”).

5

Article 3
Annual Participant Deferrals

3.01.Selection by Committee.  Participation in the Plan with respect to Annual Participant Deferrals shall be limited to a select group of management or highly compensated Employees of the Employers who are in a classification of Employees designated by the Committee in its sole discretion.  For each Plan Year, the Committee may select from that group, in its sole discretion, the Employees who shall be eligible to make an Annual Participant Deferral in respect of that Plan Year.  The Committee’s selection of an Employee to make an Annual Participant Deferral in respect of a particular Plan Year will not entitle that Employee to make an Annual Participant Deferral for any subsequent Plan Year, unless the Employee is again selected by the Committee to make an Annual Participant Deferral for such subsequent Plan Year.

3.02.Enrollment Requirements for Annual Participant Deferrals.  As a condition to being eligible to make an Annual Participant Deferral for any Plan Year, each selected Employee shall complete, execute and return to the Committee each of the required Annual Enrollment Forms no later than the last day of the immediately preceding Plan Year or such earlier date as the Committee may establish from time to time, and in accordance with the requirements of Section 409A.  The Committee may in its discretion permit a Newly Eligible Employee to complete, execute and return to the Committee each of the required Annual Enrollment Forms no later than 30 days following the date on which such Employee first becomes eligible to participate in the Plan or such earlier date as the Committee may establish from time to time.  An Employee’s Annual Election Form shall be irrevocable once filed with the Committee, and may only be suspended pursuant to Article 3.07.

3.03.Participant Deferrals.

(a)Deferral Election.  The Committee shall have sole discretion to determine in respect of each Plan Year:  (i) whether a Participant shall be eligible to make an Annual Participant Deferral; (ii) the items of Eligible Compensation which may be the subject of any Annual Participant Deferral for that Plan Year; and (iii) any other terms and conditions applicable to the Annual Participant Deferral.  The Participant’s election shall be evidenced by an Annual Election Form completed and submitted to the Committee in accordance with the procedures established by the Committee, in its sole discretion.  The amounts deferred by a Participant in respect of services rendered during a Plan Year shall be referred to collectively as an Annual Participant Deferral and shall be credited to an Annual Deferral Account established in the name of the Participant.  A separate Annual Deferral Account shall be established and maintained for each Annual Participant Deferral.

(b)Minimum and Maximum Deferrals.  The Committee may from time to time designate in the Annual Enrollment Materials for a given Plan Year a minimum or maximum amount or percentage of Eligible Compensation that a Participant may elect to defer under the Plan with respect to that Plan Year.

(c)Deferral Designations.  A Participant may designate the amount of the Annual Participant Deferral to be deducted from his or her Eligible Compensation as specified in the applicable Annual Enrollment Materials for a given Plan Year, which may provide for

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deferrals to be expressed as either a percentage or a fixed dollar amount of a specified item of Eligible Compensation expected by the Participant, as determined by the Committee.  If a Participant designates the Annual Participant Deferral to be deducted from any item of Eligible Compensation as a fixed dollar amount and such fixed dollar amount exceeds the amount of such item of Eligible Compensation actually payable to the Participant, the entire amount of such item of Eligible Compensation shall be withheld.

(d)Deferral Deductions.  Annual Participant Deferral shall be deducted from the items of Eligible Compensation as follows:  (i) for periodic payments (e.g., salary), in substantially equivalent amounts from each periodic payment during the Plan Year; and (ii) for one-time payments (e.g., bonuses), at the time the compensation would otherwise have been paid to the Participant.

3.04.Commencement of Participation.  Provided an Employee has met all enrollment requirements set forth in the Plan in respect of a particular Plan Year and any other requirements imposed by the Committee, including signing and submitting all Annual Enrollment Forms to the Committee within the specified time period, the Employee’s designated deferrals shall commence as of the first day of the particular Plan Year.  In the case of a Newly Eligible Employee, designated deferrals shall commence as of the date such Employee’s Annual Enrollment Forms are received by the Committee, which shall be no later than 30 days following the date on which such Employee first became eligible to participate in the Plan, and such Annual Election Form shall apply only with respect to compensation earned for services performed subsequent to the time such Annual Election Form is received by the Committee.  For this purpose, an election will be deemed to apply to compensation paid for services performed subsequent to the time such Annual Election Form is received by the Committee provided that the election applies to the portion of the compensation equal to the total amount of the compensation for the service period multiplied by the ratio of the number of days remaining in the performance period after the election over the total number of days in the performance period.  If an Employee fails to meet all such requirements within the specified time period with respect to any Plan Year, the Employee shall not be eligible to make any deferrals for that Plan Year.

3.05.Subsequent Plan Year Participant Deferrals.  The Annual Enrollment Forms submitted by a Participant in respect of a particular Plan Year will not be effective with respect to any subsequent Plan Year.  If an Employee is selected to participate in the Plan for a subsequent Plan Year and the required Annual Enrollment Forms are not timely delivered for the subsequent Plan Year, the Participant shall not be eligible to make any deferrals with respect to such subsequent Plan Year.

3.06.Vesting.  A Participant shall be vested in all amounts credited to his or her Annual Deferral Account as of the date such amounts are credited to such Participant’s Annual Deferral Account.

3.07.Suspension of Deferrals.

(a)Unforeseeable Emergencies.  If a Participant experiences an Unforeseeable Emergency, the Participant may petition the Committee to suspend any deferrals

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required to be made by the Participant.  A petition shall be made on the form required by the Committee to be used for such request and shall include all financial information requested by the Committee in order to make a determination on such petition, as determined by the Committee in its sole discretion.  Subject to the requirements of Section 409A, the Committee shall determine, in its sole discretion, whether to approve the Participant’s petition.  If the petition for a suspension is approved, suspension shall take effect upon the date of approval.  Notwithstanding the foregoing, the Committee shall not have any right to approve a request for suspension of deferrals if such approval (or right to approve) would cause the Plan to fail to comply with, or cause a Participant to be subject to a tax under the provisions of Section 409A.

(b)Disability.  From and after the date that a Participant is deemed to have suffered a disability, any standing deferral election of the Participant shall automatically be suspended and no further deferrals shall be made with respect to the Participant.  For this purpose, “disability” shall mean any medically determinable physical or mental impairment resulting in the Participant’s inability to perform the duties of his or her position or any substantially similar position, where such impairment can be expected to result in death or can be expected to last for a continuous period of not less than six months.

(c)Resumption of Deferrals.  If deferrals by a Participant have been suspended during a Plan Year due to an Unforeseeable Emergency or a disability, the Participant will not be eligible to make any further deferrals in respect of that Plan Year.  The Participant may be eligible to make deferrals for subsequent Plan Years provided the Participant is selected to make deferrals for such subsequent Plan Years and the Participant complies with the election requirements under the Plan.

Article 4
Annual Match

4.01.Selection by Committee.  Participation in the Plan with respect to an Annual Match shall be limited to a select group of management or highly compensated Employees of the Employers who are in a classification of Employees designated by the Committee in its sole discretion.  For each Plan Year, the Committee may select from that group, in its sole discretion, the Employees who shall be eligible to receive an Annual Match in respect of that Plan Year.  The Committee’s selection of an Employee to receive an Annual Match in respect of a particular Plan Year will not entitle that Employee to receive an Annual Match for any subsequent Plan Year, unless the Employee is again selected by the Committee to receive an Annual Match for such subsequent Plan Year.

4.02.Annual Match.  A Participant may be credited with a discretionary matching allocation in respect of any Plan Year, pursuant to and as described in the Annual Enrollment Materials for such Plan Year.  Such discretionary matching allocation credited to a Participant in respect of a Plan Year shall be referred to as the Annual Match for that Plan Year and shall be credited to an Annual Match Account in the name of the Participant.  A separate Annual Match Account shall be established and maintained for each Annual Match.  The Committee shall have sole discretion to determine in respect of each Plan Year and each Participant:  (a) whether any Annual Match shall be made; (b) the Participant(s) who shall be entitled to such Annual Match; (c) the amount of such Annual Match; (d) the date(s) on which any portion of such Annual

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Match shall be credited to each Participant’s Annual Match Account; (e) the vesting terms applicable to such Annual Match; (f) the Investment Option(s) that shall apply to such Annual Match; and (g) any other terms and conditions applicable to such Annual Match.

4.03.Vesting.  A Participant shall be vested in his or her Annual Match Account in respect of each given Plan Year as set forth in the Annual Enrollment Materials for such Plan Year.  The vesting terms of Annual Match Accounts set forth in the Annual Enrollment Materials shall be established by the Committee in its sole discretion and may vary for each Participant and each Plan Year.  Notwithstanding anything to the contrary contained in the Plan or any of the Annual Enrollment Materials, the Committee shall have the authority, exercisable in its sole discretion, to accelerate the vesting of any amounts credited to any Plan Account of any Participant.

Article 5
Annual Discretionary Allocation

5.01.Selection By Committee.  Participation in the Plan with respect to an Annual Discretionary Allocation shall be limited to a select group of management or highly compensated Employees of the Employers who are in a classification of Employees designated by the Committee in its sole discretion.  For each Plan Year, the Committee may select from that group, in its sole discretion, the Employees who shall be eligible to receive an Annual Discretionary Allocation in respect of that Plan Year.  The Committee’s selection of an Employee to receive an Annual Discretionary Allocation in respect of a particular Plan Year will not entitle that Employee to receive an Annual Discretionary Allocation for any subsequent Plan Year, unless the Employee is again selected by the Committee to receive an Annual Discretionary Allocation for such subsequent Plan Year.

5.02.Annual Discretionary Allocation.  A Participant may be credited with one or more other discretionary allocations in respect of any Plan Year, expressed as either a flat dollar amount or as a percentage of one or more items of the Participant’s Eligible Compensation for the Plan Year, or any combination of the foregoing.  Such discretionary allocations credited to a Participant in respect of a Plan Year shall be referred to collectively as the Annual Discretionary Allocation for that Plan Year and shall be credited to an Annual Discretionary Allocation Account in the name of the Participant.  A separate Annual Discretionary Allocation Account shall be established and maintained for each Annual Discretionary Allocation.  The Committee shall have sole discretion to determine in respect of each Plan Year and each Participant:  (a) whether any Annual Discretionary Allocation shall be made; (b) the Participant(s) who shall be entitled to such Annual Discretionary Allocation; (c) the amount of such Annual Discretionary Allocation; (d) the date(s) on which any portion of such Annual Discretionary Allocation shall be credited to each Participant’s Annual Discretionary Allocation Account; (e) the Investment Option(s) that shall apply to such Annual Discretionary Allocation; and (f) any other terms and conditions applicable to such Annual Discretionary Allocation.

5.03.Vesting.  A Participant shall be vested in his or her Annual Discretionary Allocation Account in respect of each given Plan Year as set forth in the Annual Enrollment Materials for such Plan Year.  The vesting terms of Annual Discretionary Allocation Accounts set forth in the Annual Enrollment Materials shall be established by the Committee in its sole

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discretion and may vary for each Participant and each Plan Year.  Notwithstanding anything to the contrary contained in the Plan or any of the Annual Enrollment Materials, the Committee shall have the authority, exercisable in its sole discretion, to accelerate the vesting of any amounts credited to any Plan Account of any Participant.

Article 6
Investment Options, Investment Adjustments and Taxes

6.01.Investment Options.

(a)The Committee shall establish from time to time the Investment Option(s) that will be available under the Plan.  At any time, the Committee may, in its discretion, add one or more additional Investment Options under the Plan, and in connection with any such addition, may permit Participants to select from among the then-available Investment Options under the Plan to measure the value of such Participants’ Plan Accounts.  In addition, the Committee, in its sole discretion, may discontinue any Investment Option at any time, and provide for the portions of Participants’ Plan Accounts and future deferrals designated to the discontinued Investment Option to be reallocated to another Investment Option(s).

(b)Subject to such limitations, operating rules and procedures as may from time to time be required by law; imposed by the Committee, the Trustee or their designated agents; contained elsewhere in the Plan; or set forth in any Annual Enrollment Materials, each Participant may communicate to the Investment Agent a direction (in accordance with this Article 6) as to how his or her Plan Accounts should be deemed to be invested among the Investment Options made available by the Committee; provided, however, that a Participant’s ability to select Investment Options with respect to his or her Annual Match Account and Annual Discretionary Allocation Account is subject to, and may be limited by, the Committee’s discretion under Article 4.02 and Article 5.02 to designate the Investment Options that shall apply to all or a portion of such Annual Match Account or Annual Discretionary Allocation Account.  The Participant’s investment directions shall designate the percentage (in any whole percent multiples, which must total 100 percent) of the portion of the subsequent contributions to the Participant’s Plan Accounts which is requested to be deemed to be invested in such Investment Options, and shall be subject to the rules set forth below.  The Investment Agent shall invest the assets of the Participant’s Plan Accounts in accordance with the directions of the Participant except to the extent that the Committee directs it to the contrary.  The Committee has the authority, but not the requirement, in its sole and absolute discretion, to direct that a Participant’s Plan Accounts be invested among such investments as it deems appropriate and advisable, which investments need not be the same for each Participant.

(c)Any initial or subsequent investment direction shall be in writing to the Investment Agent on a form supplied by the Company, or, as permitted by the Investment Agent, may be by oral designation or electronic transmission designation to the Investment Agent.  A designation shall be effective as of the Designation Date next following the date the direction is received and accepted by the Investment Agent or as soon thereafter as administratively practicable, subject to the Committee’s right to override such direction.  The Participant may, if permitted by the Committee, make an investment direction to the Investment Agent for his or her existing Plan Accounts as of a Designation Date and a separate investment direction to the

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Investment Agent for contribution credits to his or her Plan Accounts occurring after the Designation Date.

(d)All amounts credited to a Participant’s Plan Accounts shall be invested in accordance with the then effective investment direction, unless the Committee directs otherwise.  Unless otherwise changed by the Committee, an investment direction shall remain in effect until the Participant’s Plan Accounts are distributed or forfeited in their entirety, or until a subsequent investment direction is received and accepted by the Investment Agent.

(e)If a Participant files an investment direction with the Investment Agent for his or her existing Plan Accounts as of a Designation Date which is received and accepted by the Investment Agent and not overridden by the Committee, then the Participant’s existing Plan Accounts shall be deemed to be reallocated as of the next Designation Date (or as soon thereafter as administratively practicable) among the designated Investment Options according to the percentages specified in such investment direction; provided, however, that a Participant’s ability to change the Investment Options applicable to his or her Annual Match Account and Annual Discretionary Allocation Account are subject to, and may be limited by, the Committee’s discretion under Article 4.02 and Article 5.02 to designate the Investment Options that shall apply to all or a portion of such Annual Match Account or Annual Discretionary Allocation Account.  Unless otherwise changed by the Committee, an investment direction shall remain in effect until the Participant’s Plan Accounts are distributed or forfeited in their entirety, or until a subsequent investment direction is received and accepted by the Investment Agent.

(f)The Committee, in its sole discretion, may place limits on a Participant’s ability to make changes with respect to any Investment Options.  In addition, in no event shall a Participant who is a Reporting Person be permitted to allocate any portion of his or her Plan Accounts to the Company Stock Fund more frequently than quarterly.

(g)If the Investment Agent receives an initial or subsequent investment direction with respect to Plan Accounts which it deems to be incomplete, unclear or improper, or which is unacceptable for some other reason (determined in the sole and absolute discretion of the Investment Agent), the Participant’s investment direction for such Plan Accounts then in effect shall remain in effect (or, in the case of a deficiency in an initial investment direction, the Participant shall be deemed to have filed no investment direction) until the Participant files an investment direction for such Plan Accounts acceptable to the Investment Agent.

(h)If the Investment Agent does not possess valid investment directions covering the full balance of a Participant’s Plan Accounts or subsequent contributions thereto (including, without limitation, situations in which no investment direction has been filed, situations in which the investment direction is not acceptable to the Investment Agent under  Article 6.01(g), or situations in which some or all of the Participant’s designated investments are no longer permissible Investment Options), the Participant shall be deemed to have directed that the undesignated portion of the Plan Accounts be invested in a money-market fund or similar short-term investment fund; provided, however, the Committee may provide for the undesignated portion to be allocated to or among the Investment Option(s) that the Participant did designate in the same proportion as the designated portion, or may provide for any other allocation method it deems appropriate, in its discretion.

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(i)None of the Company, its directors and employees (including, without limitation, each member of the Committee), and the Trustee, and their designated agents and representatives, shall have any liability whatsoever for the investment of a Participant’s Plan Accounts, or for the investment performance of a Participant’s Plan Accounts.  Each Participant hereunder, as a condition to his or her participation hereunder, agrees to indemnify and hold harmless the Company, its directors and employees (including, without limitation, each member of the Committee), and the Trustee, and their designated agents and representatives, from any losses or damages of any kind (including, without limitation, lost opportunity costs) relating to the investment of a Participant’s Plan Accounts.  The Investment Agent shall have no liability whatsoever for the investment of a Participant’s Plan Accounts, or for the investment performance of a Participant’s Plan Accounts, other than as a result of the failure to follow a valid and effective investment direction.  Each Participant hereunder, as a condition to his or her participation hereunder, agrees to indemnify and hold harmless the Investment Agent, and its agents and representatives, from any losses or damages of any kind (including, without limitation, lost opportunity costs) relating to the investment of a Participant’s Plan Accounts, other than as a result of the failure to follow a valid and effective investment direction.

(j)The Participant’s Annual Match Accounts and Annual Discretionary Allocation Accounts for each Plan Year shall be treated for purposes of this Article 6 as separate from the Annual Deferral Accounts for that Plan Year.  Unless otherwise provided in the applicable Annual Enrollment Materials, a Participant may only provide investment directions with respect to all of his or her Annual Deferral Accounts.

6.02.Adjustment of Plan Accounts.  While a Participant’s Plan Accounts do not represent the Participant’s ownership of, or any ownership interest in, any particular assets, the Participant’s Plan Accounts shall be adjusted in accordance with the Investment Option(s), subject to the conditions and procedures set forth herein or established by the Committee from time to time.  Any notional cash earnings generated under an Investment Option (such as interest and cash dividends and distributions) shall, at the Committee’s sole discretion, either be deemed to be reinvested in that Investment Option or reinvested in one or more other Investment Option(s) designated by the Committee.  All notional acquisitions and dispositions of Investment Options under a Participant’s Plan Accounts shall be deemed to occur at such times as the Committee shall determine to be administratively feasible in its sole discretion and the Participant’s Plan Accounts shall be adjusted accordingly.  In addition, a Participant’s Plan Accounts may be adjusted from time to time, in accordance with procedures and practices established by the Committee, in its sole discretion, to reflect any notional transactional costs and other fees and expenses relating to the deemed investment, disposition or carrying of any Investment Option for the Participant’s Plan Accounts.

6.03.FICA and Other Taxes.

(a)Withholding.  For each Plan Year in which an Annual Participant Deferral is being withheld from a Participant or in which an Annual Match or Annual Discretionary Allocation credited on behalf of a Participant vests, the Participant’s Employer(s) shall withhold from the Participant’s other compensation payable by the Employer(s) to the Participant, in a manner determined by the Employer(s), the Participant’s share of FICA and other employment taxes.  If the Committee determines that such portion may not be sufficient to cover the amount

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of the applicable withholding, then to the extent permissible under Section 409A, the Committee may reduce the Annual Participant Deferral to the extent necessary, as determined by the Committee in its sole discretion, for the Participant’s Employer to comply with applicable withholding requirements.

(b)Distributions.  The Participant’s Employer(s), or the Trustee, shall withhold from any payments made to a Participant under the Plan all federal, state and local income, employment and other taxes required to be withheld by the Employer(s), or the Trustee, in connection with such payments, in amounts and in a manner to be determined in the sole discretion of the Employer(s) and the Trustee.

Article 7
Beneficiary Designation

7.01.Beneficiary.  The Committee shall determine, in its sole discretion, whether a Participant shall have the right to designate his or her Beneficiary to receive any benefits payable under the Plan upon the death of a Participant.  The Beneficiary designated under the Plan may be the same as or different from the beneficiary designation under any other plan or arrangement in which the Participant participates.

7.02.Beneficiary Designation; Change.  A Participant shall designate his or her Beneficiary by completing and signing a Beneficiary Designation Form, and returning it to the Committee.  Provided that the Committee provides for a Beneficiary designation, a Participant shall have the right to change a Beneficiary by completing, signing and submitting to the Committee an amended Beneficiary Designation Form in accordance with the Committee’s rules and procedures, as in effect from time to time.  Upon the acceptance by the Committee of an amended Beneficiary Designation Form, all Beneficiary designations previously filed shall be canceled.  The Committee shall be entitled to rely on the last Beneficiary Designation Form filed by the Participant and accepted by the Committee prior to his or her death.

7.03.Acceptance.  No designation or change in designation of a Beneficiary shall be effective until received and accepted by the Committee.

7.04.No Beneficiary Designation.  If a Participant fails to designate a Beneficiary as provided above, if the Committee does not provide for Beneficiary designation or if the designated Beneficiary predeceases the Participant, then the benefits remaining under the Plan to be paid to a Beneficiary shall be payable to the person or persons surviving the Participant in the following order:  (a) the Participant’s spouse, if he or she was married at the time of death; or (b) the executor or personal representative of the Participant’s estate.

7.05.Doubt as to Beneficiary.  If the Committee has any doubt as to the proper Beneficiary to receive payments pursuant to the Plan, to the extent permissible under Section 409A, the Committee shall have the right, exercisable in its discretion, to cause the Company to withhold such payments until this matter is resolved to the Committee’s satisfaction.

7.06.Prior Beneficiary Designations Void.  Any beneficiary designations made under the Plan or any predecessor arrangement thereto prior to December 1, 2009 shall be null and

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void.  Any Participant who made a beneficiary designation prior to such date must complete and sign a Beneficiary Designation Form and return it to the Committee pursuant to this Article.

7.07.Discharge of Obligations.  The payment of benefits under the Plan to a Beneficiary shall fully and completely discharge the Company and the Committee from all further obligations under the Plan with respect to the Participant.

Article 8
Distribution of Plan Accounts

8.01.Distribution Elections.

(a)Initial Elections.  The Participant shall make a Distribution Election by filing a Distribution Election Form at the time he or she makes an Annual Participant Deferral with respect to a given Plan Year to have the Participant’s respective Plan Accounts for that Plan Year distributed in either a lump sum, or two to ten substantially equivalent annual installments, in each case commencing, in accordance with administrative guidelines determined by the Committee, on June 30th of (i) a specified year following the year that the compensation deferred would otherwise have been paid; or (ii) the year following the year of the Participant’s Termination of Employment.  The amount of each installment payment shall be equal to the value of the Participant’s respective Plan Accounts for that Plan Year divided by the number of installments remaining to be paid.

(b)Subsequent Elections.  Subject to any restrictions that may be imposed by the Committee, a Participant may amend his or her Distribution Election with respect to any Plan Account by completing and submitting to the Committee within such time frame as the Committee may designate, an Amended Distribution Election Form; provided, however, that such Amended Distribution Election Form (i) is submitted no later than a date specified by the Committee in accordance with the requirements of Section 409A, (ii) shall not take effect until 12 months after the date on which such Amended Distribution Election Form becomes effective, and (iii) specifies a new distribution date (or a new initial distribution date in the case of installment distributions) that is no sooner than five years after the original distribution date (or the original initial distribution date in the case of installment distributions), or such later date specified by the Committee.

8.02.Valuation of Plan Accounts Pending Distribution.  To the extent that the distribution of any portion of any Plan Account is deferred, any amounts remaining to the credit of the Plan Account shall continue to be adjusted by the applicable Investment Adjustments in accordance with Article 6.

8.03.Form of Payment.  Distributions under the Plan shall be paid in cash; provided, however, that the Committee may provide, in its discretion, that any distribution attributable to the portion of a Plan Account that is deemed invested in the Company Stock Fund shall be paid in shares of Company Stock; provided, further, that any shares of Company Stock paid out under the Plan will be deemed to have been distributed under the Ameriprise Financial 2005 Incentive Compensation Plan, as amended from time to time, or any successor thereto, and will count against the limit on the number of shares of Company Stock available for distribution thereunder.

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8.04.Effect of Payment.  The full payment of the applicable benefit under the provisions of the Plan shall completely discharge all obligations to a Participant and his or her estate under the Plan.

Article 9
Leave of Absence

9.01.Paid Leave of Absence.  If a Participant is authorized by the Participant’s Employer for any reason to take a paid leave of absence from the employment of the Employer, the Participant shall continue to be considered employed by the Employer and the appropriate amounts shall continue to be withheld from the Participant’s compensation pursuant to the Participant’s then current Annual Election Form.

9.02.Unpaid Leave of Absence.  If a Participant is authorized by the Participant’s Employer for any reason to take an unpaid leave of absence from the employment of the Employer, the Participant shall continue to be considered employed by the Employer and, to the extent permissible under Section 409A, the Participant shall be excused from making deferrals until the earlier of the date the leave of absence expires or the Participant returns to a paid employment status.  Upon such expiration or return, deferrals shall resume for the remaining portion of the Plan Year in which the expiration or return occurs, based on the deferral election, if any, made for that Plan Year.  If no election was made for that Plan Year, no deferral shall be withheld.

Article 10
Effects of Certain Events

10.01.Death.  In the case of a Participant’s death, all amounts credited to the Plan Accounts of the affected Participant shall be 100 percent vested.  Notwithstanding anything to the contrary in a Participant’s Distribution Election or otherwise, if a Participant dies before he or she has received a complete distribution of his or her Plan Accounts, the Participant’s Beneficiary shall receive the balance of the Participant’s Plan Accounts, which, in the event of a Participant’s death prior to January 1, 2013, shall be payable to the Participant’s Beneficiary in a lump sum within 90 days of the date of the Participant’s death, or by such later date permissible under Section 409A.  In the event of a Participant’s death on or after January 1, 2013, the balance of the Participant’s Plan Accounts shall be payable to the Participant’s Beneficiary in a lump sum as soon as administratively practicable following the date of the Participant’s death, but in no event later than the end of the year of the Participant’s death, or, if later, by the 15th day of the third month following the date of the Participant’s death.  The Participant’s Beneficiary will not be permitted, either directly or indirectly, to designate the year of payment.

10.02.Disability.  In the case of a Participant’s Disability, all amounts credited to the Participant’s Plan Accounts shall be 100 percent vested.  Notwithstanding anything to the contrary in a Participant’s Distribution Election or otherwise, a Participant suffering a Disability prior to January 1, 2013 shall receive the balance of his or her Plan Accounts, which shall be paid in a lump sum within 90 days of the date that the Participant became disabled.  In the event a Participant suffers a Disability on or after January 1, 2013, the balance of the Participant’s Plan Accounts shall be payable to the Participant in a lump sum as soon as administratively

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practicable following the date of the Participant’s Disability, but in no event later than the end of the year of the Participant’s Disability, or, if later, by the 15th day of the third month following the date of the Participant’s Disability.  The Participant will not be permitted, either directly or indirectly, to designate the year of payment.

10.03.Retirement.  In the case of a Participant becoming Retirement Eligible, all amounts credited to the Plan Accounts of such Participant shall become immediately 100 percent vested.  In the event of a Participant’s Retirement, the balance of the Participant’s Plan Accounts will be paid out in either a lump sum, or two to ten substantially equivalent annual installments, as specified by the Participant in his or her Distribution Election, in each case commencing, in accordance with administrative guidelines determined by the Committee, on June 30th of the year following the year of the Participant’s Retirement.

10.04.Other Termination of Employment.  As of the date of a Participant’s Termination of Employment for any reason other than Retirement, Disability or death, the amounts credited to each of the Participant’s Plan Accounts shall be reduced by the amount which has not become vested in accordance with the vesting provisions set forth herein and in the Annual Enrollment Materials applicable to such Plan Account, and such unvested amounts shall be forfeited by the Participant.  Notwithstanding anything to the contrary in a Participant’s Distribution Election or otherwise, in the event of a Participant’s Termination of Employment for any reason other than Retirement, Disability or death, the portion of the Participant’s Aggregate Vested Balance will be paid out in either a lump sum, or two to five substantially equivalent annual installments, as specified by the Participant in his or her Distribution Election, in each case commencing, in accordance with administrative guidelines determined by the Committee, on June 30th of the year following the year of the Participant’s Termination of Employment.  Notwithstanding anything to the contrary in a Participant’s Distribution Election or otherwise, in the event that the Participant specified in his or her Distribution Election for a Plan Account to be paid out in more than five installments, such Participant’s Distribution Election for such Plan Account shall be deemed to specify five annual installments for purposes of this Article 10.04.

10.05.Change in Control.  Upon the occurrence of a Change in Control of the Company, all amounts credited to any and all Plan Accounts of each Participant as of the effective date of such Change in Control shall become immediately 100 percent vested.  Notwithstanding anything to the contrary set forth in a Participant’s Annual Distribution Election Form or the Plan, upon the occurrence of a Change in Control, the Company will distribute all previously undistributed Plan Accounts to Participants as soon as administratively practicable following the effective date of such Change in Control, but in no event later than 90 days thereafter.

10.06.Unforeseeable Emergency.  In the event that a Participant experiences an Unforeseeable Emergency, the Participant may petition the Committee to receive a partial or full payout of amounts credited to one or more of the Participant’s Plan Accounts.  The Committee shall determine, in its sole discretion, whether the requested payout shall be made, the amount of the payout and the Plan Accounts from which the payout will be made; provided, however, that the payout shall not exceed the lesser of the Participant’s Aggregate Vested Balance or the amount reasonably needed to satisfy the Unforeseeable Emergency plus amounts necessary to pay taxes reasonably anticipated as a result of the distribution.  In making its determination under this Article 10.06, the Committee shall be guided by the requirements of Section 409A and any

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other related prevailing legal authorities, and the Committee shall take into account the extent to which a Participant’s Unforeseeable Emergency is or may be relieved through reimbursement or compensation by insurance or otherwise or by the liquidation by the Participant of his or her assets (to the extent the liquidation of such assets would not itself cause severe financial hardship).  If, subject to the sole discretion of the Committee, the petition for a payout is approved, the payout shall be made within 90 days of the date of the Unforeseeable Emergency.

10.07.Event of Taxation.  If, for any reason, all or any portion of a Participant’s benefit under the Plan becomes taxable to the Participant prior to receipt, a Participant may petition the Committee before a Change in Control, or the Trustee after a Change in Control, for a distribution of the state, local or foreign taxes owed on that portion of his or her benefit that has become taxable.  Upon the grant of such a petition, which grant shall not be unreasonably withheld, a Participant’s Employer shall, to the extent permissible under Section 409A, distribute to the Participant immediately available funds in an amount equal to the state, local and foreign taxes owed on the portion of the Participant’s benefit that has become taxable (which amount shall not exceed a Participant’s unpaid Aggregate Vested Balance under the Plan).  If the petition is granted, the tax liability distribution shall be made within 90 days of the date that the Participant’s benefits under the Plan became taxable.  Such a distribution shall affect and reduce the benefits to be paid to the Participant under the Plan.

10.08.Plan Termination.  In the event of a termination of the Plan pursuant to Article 11.02 as it relates to any Participant, then subject to Article 8.02, all amounts credited to each of the Plan Accounts of each affected Participant shall be 100 percent vested and shall be paid in a lump sum to the Participant or, in the case of the Participant’s death, to the executor or personal representative of the Participant’s estate.  Such lump-sum payment shall be made 13 months after such termination (or such earlier or later date permitted under Section 409A), notwithstanding any elections made by the Participant, and the Annual Election Forms relating to each of the Participant’s Plan Accounts shall terminate upon full payment of such Aggregate Vested Balance, except that neither the Company nor any Employer shall have any right to so accelerate the payment of any amount to the extent such right would cause the Plan to fail to comply with, or cause a Participant to be subject to a tax under, the provisions of Section 409A.

Article 11
Amendment and Termination

11.01.Amendment.  The Company may, at any time, amend or modify the Plan in whole or in part with respect to any or all Employers by the actions of the Committee; provided, however, that (a) no amendment or modification shall be effective to decrease or restrict the value of a Participant’s Aggregated Vested Balance in existence at the time the amendment or modification is made, calculated as if the Participant had experienced a Termination of Employment as of the effective date of the amendment or modification; (b) no amendment or modification may be made if such amendment or modification would cause the Plan to fail to comply with, or cause a Participant to be subject to tax under the provisions of Section 409A; and (c) except as specifically provided in Article 11.02, no amendment or modification shall be made after a Change in Control which adversely affects the vesting, calculation or payment of benefits hereunder or diminishes any other rights or protections any Participant would have had

17

but for such amendment or modification, unless each affected Participant consents in writing to such amendment.

11.02.Termination.  Although an Employer may anticipate that it will continue the Plan for an indefinite period of time, there is no guarantee that any Employer will continue the Plan or will not terminate the Plan at any time in the future.  Accordingly, each Employer reserves the right to discontinue its sponsorship of the Plan and to terminate the Plan, at any time, with respect to its participating Employees by action of its board of directors, and the Company may at any time terminate an Employer’s participation in the Plan; provided, however, that (a) all plans that are aggregated with the Plan for purposes of Section 409A are also terminated, and (b) the Plan is not terminated proximate to a downturn in the financial health of the Employer, or any entity other than the Employer with whom the Employer would be considered a single employer under Sections 414(b) or 414(c) of the Code.  In the event of a termination described in this Article 11.02, no new deferred compensation plans may be established by the Employer for a minimum period of three years following the termination and liquidation of the Plan if such new plan would be aggregated with the Plan under Section 409A.

Article 12
Administration

12.01.Committee Duties.  This Plan shall be administered by the Committee.  Members of the Committee may be Participants under the Plan.  The Committee shall also have the discretion and authority to (a) make, amend, interpret, and enforce all appropriate rules and regulations for the administration of the Plan, and (b) decide or resolve any and all questions including interpretations of the Plan, as may arise in connection with the Plan.  Any individual serving on the Committee who is a Participant shall not vote or act on any matter relating solely to himself or herself.  When making a determination or calculation, the Committee shall be entitled to rely on information furnished by a Participant or the Company.

12.02.Agents.  In the administration of the Plan, the Committee may, from time to time, employ agents and delegate to them such administrative duties as it sees fit (including acting through a duly appointed representative) and may from time to time consult with counsel who may be counsel to any Employer.

12.03.Binding Effect of Decisions.  The decision or action of the Committee with respect to any question arising out of or in connection with the administration, interpretation and application of the Plan and the rules and regulations promulgated hereunder shall be final and conclusive and binding upon all persons having any interest in the Plan.

12.04.Indemnity of Committee.  All Employers shall indemnify and hold harmless the members of the Committee, and any agent to whom duties of the Committee may be delegated, against any and all claims, losses, damages, expenses or liabilities arising from any action or failure to act with respect to the Plan, except in the case of willful misconduct by the Committee or any of its members or any such agent.

12.05.Employer Information.  To enable the Committee to perform its functions, each Employer shall supply full and timely information to the Committee on all matters relating to the

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compensation of its Participants, the date and circumstances of the Retirement, Disability, death or Termination of Employment of its Participants, and such other pertinent information as the Committee may reasonably require.

Article 13
Claims Procedures

13.01.      Presentation of Claim.  Any Participant or the Beneficiary of a deceased Participant (such Participant or Participant’s Beneficiary being referred to below as a “Claimant”) may deliver to the Committee a written claim for a determination with respect to the amounts distributable to such Claimant from the Plan.  If such a claim relates to the contents of a notice received by the Claimant, the claim must be made within 60 days after such notice was received by the Claimant.  The claim must state with particularity the determination desired by the Claimant.  All other claims must be made within 180 days of the date on which the event that caused the claim to arise occurred.  The claim must state with particularity the determination desired by the Claimant.

13.02.      Notification of Decision.  The Committee shall consider a Claimant’s claim within a reasonable time, and shall notify the Claimant in writing within 90 days (45 days, in the event of a claim for Disability benefits) after the Committee’s receipt of the claim, unless special circumstances require an extension of time for processing the claim.  The notice shall state:  (a) that the Claimant’s requested determination has been made, and that the claim has been allowed in full; or (b) that the Committee has reached a conclusion contrary, in whole or in part, to the Claimant’s requested determination, and such notice must set forth in a manner calculated to be understood by the Claimant:  (i) the specific reason(s) for the denial of the claim, or any part of it; (ii) specific reference(s) to pertinent provisions of the Plan upon which such denial was based; (iii) a description of any additional material or information necessary for the Claimant to perfect the claim, and an explanation of why such material or information is necessary; and (iv) an explanation of the claim review procedure set forth in Article 13.03 and a statement of the Claimant’s right to bring a civil action under Section 502(a) of ERISA if the claim is denied upon review (subject to compliance with the Plan’s arbitration clause).  In the event of a claim for Disability benefits, the notice shall also identify any internal protocol, policy or guideline relied upon or state that such a protocol, policy or guideline was relied upon and will be provided free of charge upon request, and provide an explanation of any scientific or clinical judgment underlying a “medical necessity” or “experimental treatment” determination (if any) or a statement that such a determination was made and that an explanation will be provided free of charge upon request.

If an extension is required, written notice of the extension shall be furnished by the Committee to the Claimant within the initial 90-day period (45-day period, in the event of a claim for Disability benefits) and in no event shall such an extension exceed a period of 90 days from the end of the initial 90-day period (provided that, in the case of a claim for Disability benefits, the initial extension shall not continue past the 30th day after the expiration of the original 45-day period, with a second 30-day extension available upon proper notice if necessary).  Any extension notice shall indicate the special circumstances requiring the extension and the date on which the Committee expects to render a decision on the claim, and in the case of a claim for Disability benefits, shall specify the standards under which entitlement to benefits

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will be decided, the unresolved issues remaining, and the additional information needed to resolve those issues, and shall grant the Disability claimant at least 45 days to supply the necessary additional information.

13.03.      Review of a Denied Claim.  Within 60 days (180 days, in the event of a claim for Disability benefits) after receiving a notice from the Committee that a claim has been denied, in whole or in part, a Claimant (or the Claimant’s duly authorized representative) may file with the Committee a written request for a review of the denial of the claim.  In connection with the review, the Claimant (or the Claimant’s duly authorized representative):  (a) may review pertinent documents; (b) may submit written comments or other documents; and/or (c) may request a hearing, which the Committee, in its sole discretion, may grant.  In the event of a claim for Disability benefits, the decision on review shall be made by a named fiduciary independent of the person who denied the original claim, and that reviewing fiduciary shall not defer to the initial review, shall provide for an independent medical review of any medical judgments, and shall identify any medical or vocational experts whose advice was obtained in connection with the claim.  The Committee may choose to have one or more members decide the initial claim and then recuse themselves from the appellate process or may make other arrangements to ensure an independent review of Disability claims

13.04.      Decision on Review.  The Committee shall render its decision on review promptly, and not later than 60 days (45 days, in the event of a claim for Disability benefits) after the filing of a written request for review of the denial, unless a hearing is held or other special circumstances require additional time, in which case the Committee’s decision must be rendered within 120 days (90 days, in the event of a claim for Disability benefits) after such date.  Such decision must be written in a manner calculated to be understood by the Claimant, and it must contain: (a) specific reasons for the decision; (b) specific reference(s) to the pertinent Plan provisions upon which the decision was based; and (c) inform the Claimant that he or she is entitled, upon request and free of charge, reasonable access to, and copies of, relevant documents and other relevant information, and (d) inform the Claimant of his or her right, subject to the requirements of Section 13.06 below, to bring suit under Section 502(a) of ERISA now that his or her claim has been denied on appeal.  In the event of a claim for Disability benefits, the notice shall also identify any internal protocol, policy or guideline relied upon or state that such a protocol, policy or guideline was relied upon and will be provided free of charge upon request, and provide an explanation of any scientific or clinical judgment underlying a “medical necessity” or “experimental treatment” determination (if any) or a statement that such a determination was made and that an explanation will be provided free of charge upon request, and contain such other information as is required by the Department of Labor regulations.  All decisions on review shall be final and binding with respect to all concerned parties.

13.05.      Disability Claims.  Notwithstanding the foregoing, unless otherwise required by law, the special rules applicable to Disability claims shall not apply if the Committee’s uniformly-applicable policy requires reliance exclusively on determinations by the entity responsible for deciding such matters under the Company’s long-term disability plan or determinations by the Social Security Administration when deciding whether or not a Participant is Disabled.

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13.06.      Arbitration.  A Claimant’s compliance with the foregoing provisions of this Article 13 is a mandatory prerequisite to a Claimant’s right to commence any arbitration with respect to any claim for benefits under the Plan.  Any dispute, claim or controversy that may arise between a Participant and the Company or any other person (the “Claims”) under the Plan is subject to arbitration, unless otherwise agreed to in writing by the Participant and the Company.  The Claims shall be finally decided by arbitration conducted pursuant to the Commercial Dispute Resolution Procedures of the American Arbitration Association (the “AAA”), and its Supplementary Rules for Securities Arbitration, or other applicable rules promulgated by the AAA.  In addition, all claims, statutory or otherwise, which allege discrimination or other violation of employment laws, including but not limited to claims of sexual harassment, shall be finally decided by arbitration pursuant to the AAA unless otherwise agreed to in writing by a Participant and the Company.  By agreement of a Participant and the Company in writing, disputes may be resolved in arbitration by a mutually agreed-upon organization other than the AAA.  In consideration of the promises and the compensation provided in this Plan, neither a Participant nor the Company shall have a right: (a) to arbitrate a Claim on a class action basis or in a purported representative capacity on behalf of any Participants, employees, applicants or other persons similarly situated; (b) to join or to consolidate in an arbitration Claims brought by or against another Participant, employee, applicant or the Participant, unless otherwise agreed to in writing by the Participant and the Company; (c) to litigate any Claims in court or to have a jury trial on any Claims; and (d) to participate in a representative capacity or as a member of any class of claimants in an action in a court of law pertaining to any Claims.  Nothing in this Plan relieves a Participant or the Company from any obligation the Participant or the Company may have to exhaust certain administrative remedies before arbitrating any claims or disputes under this Article 13.06.  Either a Participant or the Company may compel arbitration of any Claims filed in a court of law.  In addition, either a Participant or the Company may apply to a court of law for an injunction to enforce the terms of the Plan pending a final decision on the merits by an arbitration panel pursuant to this provision.  The Company shall pay all fees, costs or other charges charged by the AAA or any other organization administering arbitration proceeding agreed upon pursuant to this Article 13 that are above and beyond the filing fees of the federal or state court in the jurisdiction in which the dispute arises, whichever is less.  A Participant or the Company shall each be responsible for their own costs of legal representation, if any, except where such costs of legal representation may be awarded as a statutory remedy by the arbitrator.  Any award by an arbitration panel shall be final and binding upon a Participant or the Company.  Judgment upon the award may be entered by any court having jurisdiction thereof or having jurisdiction over the relevant party or its assets.  This provision is covered and enforceable under the terms of the Federal Arbitration Act.

Article 14
Trust

14.01.      Establishment of the Trust.  The Company may establish one or more Trusts to which the Employers may transfer such assets as the Employers determine in their sole discretion to assist in meeting their obligations under the Plan.

14.02.      Interrelationship of the Plan and the Trust.  The provisions of the Plan and the relevant Annual Enrollment Materials shall govern the rights of a Participant to receive

21

distributions pursuant to the Plan.  The provisions of the Trust shall govern the rights of the Employers, Participants and the creditors of the Employers to the assets transferred to the Trust.

14.03.      Distributions from the Trust.  Each Employer’s obligations under the Plan may be satisfied with Trust assets distributed pursuant to the terms of the Trust, and any such distribution shall reduce the Employer’s obligations under the Plan.

Article 15
Miscellaneous

15.01.      Status of Plan.  The Plan is intended to be (a) a plan that is not qualified within the meaning of Section 401(a) of the Code and (b) a plan that “is unfunded and is maintained by an employer primarily for the purpose of providing deferred compensation for a select group of management or highly compensated employees” within the meaning of Sections 201(2), 301(a)(3) and 401(a)(1) of ERISA.  The Plan shall be administered and interpreted to the extent possible in a manner consistent with that intent.  All Plan Accounts and all credits and other adjustments to such Plan Accounts shall be bookkeeping entries only and shall be utilized solely as a device for the measurement and determination of amounts to be paid under the Plan.  No Plan Accounts, credits or other adjustments under the Plan shall be interpreted as an indication that any benefits under the Plan are in any way funded.

15.02.      Section 409A.  It is intended that the Plan (including all amendments thereto) comply with provisions of Section 409A, so as to prevent the inclusion in gross income of any benefits accrued hereunder in a taxable year prior to the taxable year or years in which such amount would otherwise be actually distributed or made available to the Participants.  The Plan shall be administered and interpreted to the extent possible in a manner consistent with that intent and the Company’s Policy Regarding Section 409A Compliance.  Notwithstanding the terms of Article 8, to the extent that a distribution to a Participant who is a Specified Employee at the time of his or her Termination of Employment is required to be delayed by six months pursuant to Section 409A, such distribution shall be made no earlier than the first day of the seventh month following the Participant’s Termination of Employment.  The amount of such payment will equal the sum of the payments that would have been paid to the Specified Employee during the six-month period immediately following the Specified Employee’s Termination of Employment had the payment commenced as of such date.  If the Specified Employee elected to receive installment payments, the remaining balance of the Specified Employee’s Plan Accounts shall be paid in substantially equivalent installments.  For purposes of this paragraph, “Specified Employee” shall mean a key employee as defined under Section 409A, as determined in accordance with the Company’s Policy Regarding Section 409A Compliance.

15.03.      Offsets.  Notwithstanding anything in the Plan to the contrary, to the maximum extent permissible by Section 409A and applicable law, any amount otherwise due or payable under the Plan may be forfeited, or its payment suspended, at the discretion of the Committee, to apply toward or recover any claim the Company may have against the Participant, including but not limited to, for the enforcement of the Company’s Detrimental Conduct provisions under its long-term incentive award plan, to recover a debt to the Company or to recover a benefit overpayment under a Company benefit plan or program.  No amounts shall be offset against a

22

Participant’s Plan Accounts prior to the date on which the offset amounts would otherwise be distributed to the Participant unless otherwise permitted by Section 409A.  An offset shall be made only to the extent and in the manner permitted by the Company’s Policy Regarding Section 409A Compliance.

15.04.      Unsecured General Creditor.  Participants and their beneficiaries, heirs, successors and assigns shall have no legal or equitable rights, interests or claims in any property or assets of an Employer.  For purposes of the payment of benefits under the Plan, any and all of an Employer’s, assets, shall be, and remain, the general, unpledged unrestricted assets of the Employer.  An Employer’s obligation under the Plan shall be merely that of an unfunded and unsecured promise to pay money in the future.

15.05.      Other Benefits and Agreements.  The benefits provided for a Participant under the Plan are in addition to any other benefits available to such Participant under any other plan or program for employees of the Participant’s Employer.  The Plan shall supplement and shall not supersede, modify or amend any other such plan or program except as may otherwise be expressly provided.

15.06.      Employer’s Liability.  An Employer’s liability for the payment of benefits shall be defined only by the Plan and the Annual Enrollment Forms, as entered into between the Employer and a Participant.  An Employer shall have no obligation to a Participant under the Plan except as expressly provided in the Plan and his or her Annual Enrollment Forms.

15.07.      Nonassignability.  Neither a Participant nor any other person shall have any right to commute, sell, assign, transfer, pledge, anticipate, mortgage or otherwise encumber, transfer, hypothecate, alienate or convey in advance of actual receipt, the amounts, if any, payable hereunder, or any part thereof, which are, and all rights to which are expressly declared to be, unassignable and non-transferable.  No part of the amounts payable shall, prior to actual payment, be subject to seizure, attachment, garnishment or sequestration for the payment of any debts, judgments, alimony or separate maintenance owed by a Participant or any other person, be transferable by operation of law in the event of a Participant’s or any other person’s bankruptcy or insolvency or be transferable to a spouse as a result of a property settlement or otherwise.

15.08.      Not a Contract of Employment.  The terms and conditions of the Plan and the Annual Election Form under the Plan shall not be deemed to constitute a contract of employment between any Employer and the Participant.  Such employment is hereby acknowledged to be an “at will” employment relationship that can be terminated at any time for any reason, or no reason, with or without cause, and with or without notice, except as otherwise provided in a written employment agreement.  Nothing in the Plan or any Annual Election Form shall be deemed to give a Participant the right to be retained in the service of any Employer as an Employee or to interfere with the right of any Employer to discipline or discharge the Participant at any time.

15.09.      Furnishing Information.  A Participant will cooperate with the Committee by furnishing any and all information requested by the Committee and take such other actions as may be requested in order to facilitate the administration of the Plan and the payments of benefits

23

hereunder, including but not limited to taking such physical examinations as the Committee may deem necessary.

15.10.      Terms.  Whenever any words are used herein in the masculine, they shall be construed as though they were in the feminine in all cases where they would so apply; and whenever any words are used herein in the singular or in the plural, they shall be construed as though they were used in the plural or the singular, as the case may be, in all cases where they would so apply.

15.11.      Captions.  The captions of the articles and paragraphs of the Plan are for convenience only and shall not control or affect the meaning or construction of any of its provisions.

15.12.      Governing Law.  The Plan and all determinations made and actions taken thereunder, to the extent not otherwise governed by federal law, shall be governed by the laws of the State of Delaware, without reference to principles of conflict of laws, and construed accordingly.

15.13.      Notice.  Any notice or filing required or permitted to be given to the Committee under the Plan shall be sufficient if in writing and hand-delivered, or sent by registered or certified mail, to the address below:

Ameriprise Financial, Inc.

360 Ameriprise Financial Center

Minneapolis, Minnesota 55474

Attn:  Vice President, Benefits

with a copy to:

General Counsel’s Office

Such notice shall be deemed given as of the date of delivery or, if delivery is made by mail, as of the date shown on the postmark or the receipt for registration or certification.

Any notice or filing required or permitted to be given to a Participant under the Plan shall be sufficient if in writing and hand-delivered, or sent by mail, to the last known address of the Participant.

15.14.      Successors.  The provisions of the Plan shall bind and inure to the benefit of the Participant’s Employer and its successors and assigns and the Participant and the Participant’s estate, heirs and assigns.

15.15.      Spouse’s Interest.  The interest in the benefits hereunder of a spouse of a Participant who has predeceased the Participant shall automatically pass to the Participant and shall not be transferable by such spouse in any manner, including but not limited to such spouse’s will, nor shall such interest pass under the laws of intestate succession.

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15.16.      Validity.  In case any provision of the Plan shall be illegal or invalid for any reason, said illegality or invalidity shall not affect the remaining parts hereof, but the Plan shall be construed and enforced as if such illegal or invalid provision had never been inserted herein.

15.17.      Incompetent.  If the Committee determines in its discretion that a benefit under the Plan is to be paid to a minor, a person declared incompetent or to a person incapable of handling the disposition of that person’s property, the Committee may direct payment of such benefit to the guardian, legal representative or person having the care and custody of such minor, incompetent or incapable person.  The Committee may require proof of minority, incompetence, incapacity or guardianship, as it may deem appropriate prior to distribution of the benefit.  Any payment of a benefit shall be a payment for the account of the Participant and the Participant’s estate, as the case may be, and shall be a complete discharge of any Company liability under the Plan for such payment amount.

15.18.      Insurance.  The Employers, on their own behalf or on behalf of the Trustee, and, in their sole discretion, may apply for and procure insurance on the life of the Participant, in such amounts and in such forms as the Trust may choose.  The Employers or the Trustee, as the case may be, shall be the sole owner and beneficiary of any such insurance.  The Participant shall have no interest whatsoever in any such policy or policies, and at the request of the Employers shall submit to medical examinations and supply such information and execute such documents as may be required by the insurance company or companies to whom the Employers have applied for insurance.

15.19.      Legal Fees To Enforce Rights After Change in Control.  The Company and each Employer is aware that upon the occurrence of a Change in Control, the Board or the board of directors of the Participant’s Employer (which might then be composed of new members) or a stockholder of the Company or the Participant’s Employer, or of any successor corporation might then cause or attempt to cause the Company or the Participant’s Employer or such successor to refuse to comply with its obligations under the Plan and might cause or attempt to cause the Company or the Participant’s Employer to institute, or may institute, arbitration or litigation seeking to deny Participants the benefits intended under the Plan.  In these circumstances, the purpose of the Plan could be frustrated.  Accordingly, if, following a Change in Control, it should appear to any Participant that the Company, the Participant’s Employer or any successor corporation has failed to comply with any of its obligations under the Plan or any agreement thereunder, or if the Company, such Employer or any other person takes any action to declare the Plan void or unenforceable or institutes any arbitration, litigation or other legal action designed to deny, diminish or to recover from any Participant the benefits intended to be provided, then the Company and the Participant’s Employer irrevocably authorize such Participant to retain counsel of his or her choice at the expense of the Company and the Employer (who shall be jointly and severally liable) to represent such Participant in connection with the initiation or defense of any arbitration, litigation or other legal action, whether by or against the Company, the Participant’s Employer or any director, officer, stockholder or other person affiliated with the Company, the Participant’s Employer or any successor thereto in any jurisdiction; provided, however, that in the event that the trier in any such legal action determines that the Participant’s claim was not made in good faith or was wholly without merit, the Participant shall return to the Company any amount received pursuant to this Article 15.19.  Any

25

reimbursements shall be paid in accordance with the Company’s Policy Regarding Section 409A Compliance.

15.20.      Electronic Documents Permitted.  Subject to applicable law, Annual Election Forms, Annual Enrollment Materials, and other forms or documents may be in electronic format or made available through means of online enrollment or other electronic transmission.

*  *  *  *  *

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Ameriprise Financial

Deferred Compensation Plan

Schedule A

January 1,  2012

Employers

·American Enterprise Investment Services, Inc.

·Ameriprise Financial Services, Inc.

·Columbia Management Investment Advisers, LLC (formerly known as RiverSource Investments, LLC)

·Columbia Management Investment Services Corp. (formerly known as RiverSource Service Corporation)

·RiverSource Life Insurance Company (formerly known as IDS Life Insurance Company)

·RiverSource Life Insurance Co. of New York (formerly known as IDS Life Insurance Company of New York and American Centurion Life Assurance Company)

·IDS Property Casualty Insurance Company

·Ameriprise Trust Company

·Ameriprise Bank, FSB

·RiverSource Distributors, Inc.

·Columbia Management Investment Distributors, Inc. (formerly known as RiverSource Fund Distributors, Inc.)

·Columbia Wanger Asset Management, LLC

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EX-10.15

Exhibit 10.15

AMERIPRISE FINANCIAL

DEFERRED SHARE PLAN

FOR OUTSIDE DIRECTORS

As Amended and Restated Effective July 1, 2011

AMERIPRISE FINANCIAL

DEFERRED SHARE PLAN
FOR OUTSIDE DIRECTORS

As Amended and Restated Effective July 1, 2011

Purpose

The purpose of the Plan is to (a) provide for the crediting of Deferred Share Units to Eligible Directors in respect of services rendered by such individuals as members of the Board, (b) permit Eligible Directors to elect to receive a portion of their Eligible Compensation on a deferred basis, and (c) promote a greater alignment of interests between Eligible Directors and the stockholders of the Company.  The Plan shall be unfunded for tax purposes.

Article 1
Definitions

For purposes of the Plan, unless otherwise clearly apparent from the context, the following phrases or terms shall have the meanings indicated in this Article 1:

1.01.        “Account” shall mean, collectively, a Participant’s Stock Account and a Participant’s Cash Account, in each case as established under the terms and conditions of the Plan.

1.02.        “Affiliate” shall mean any entity other than the Company with whom the Company would be considered a single employer under Sections 414(b) or 414(c) of the Code; provided, however, that for determining whether a Termination of Service has occurred, the language “at least 50 percent” shall be used instead of “at least 80 percent” each place it appears in such Code Sections.

1.03.      “Aggregate Vested Balance” shall mean, with respect to the Accounts of any Participant as of a given date, the sum of the amounts that have become vested under the Participant’s Accounts, as adjusted to reflect all applicable dividends and all prior withdrawals and distributions, in accordance with Article 3 and Article 4 and the provisions of the applicable Annual Enrollment Materials.

1.04.        “Amended Distribution Election Form” shall mean the written form required by the Committee to be signed and submitted by a Participant to effect a permitted change in the Distribution Election previously made by the Participant with respect to an Account of the Participant.

1.05.        “Annual DSU Grant” shall mean the annual grant to an Eligible Director of DSUs, which will be credited to a Director’s Stock Account on an annual basis in accordance with Article 3.01.

1.06.        “Annual Election Form” shall mean the written form required by the Committee to be signed and submitted by a Participant in connection with the Participant’s deferral election with respect to a given Plan Year.

1

1.07.        “Annual Elective Deferral” shall mean the aggregate amount electively deferred by a Participant in respect of a particular Plan Year under Article 4.

1.08.        “Annual Enrollment Forms” shall mean, with respect to the portion of any Account that relates to a Participant’s Annual Elective Deferrals under the Plan, the Annual Election Form and the Distribution Election Form (or the Amended Distribution Election Form last signed and submitted by the Participant) with respect to that Account.

1.09.        “Annual Enrollment Materials” shall mean, for any Plan Year, the Annual Enrollment Forms and any other forms, documents or materials concerning the terms of any Annual DSU Grant or Annual Elective Deferral for such Plan Year.

1.10.        “Annual Fee” shall mean, with respect to an Eligible Director, such Eligible Director’s annual cash retainer fee.

1.11.        “Beneficiary” shall mean one natural person designated in accordance with Article 7, whom is entitled to receive the distribution of a Participant’s Account under the Plan in the event of the Participant’s death.

1.12.        “Beneficiary Designation Form” shall mean the Beneficiary Designation Form or amended Beneficiary Designation Form last signed and submitted by a Participant and accepted by the Committee.

1.13.        “Board” shall mean the board of directors of the Company.

1.14.        “Cash Account” shall mean a notional, bookkeeping account established under the Plan for a Participant to measure the value of any portion of a Participant’s Annual Elective Deferral for a Plan Year that is not deemed to be invested in DSUs.

1.15.        “Cash Account Interest Rate” shall mean Moody’s Composite Yield on Seasoned Aaa Corporate Bonds.

1.16.        “Change in Control” shall have the meaning set forth in the Ameriprise Financial 2005 Incentive Compensation Plan; provided, that notwithstanding anything to the contrary therein, a Change in Control shall not be deemed to occur under the Plan as a result of any event or transaction to the extent that treating such event or transaction as a Change in Control under the Plan would cause any tax to become due under Section 409A.

1.17.        “Code” shall mean the Internal Revenue Code of 1986, as it may be amended from time to time, and all regulations, interpretations and administrative guidance issued thereunder.

1.18.        “Committee” shall mean the Compensation and Benefits Committee of the Company or such other committee designated by the Board to administer the Plan.  Any reference herein to the Committee shall be deemed to include any person to whom any duty of the Committee has been delegated pursuant to Article 10.02.

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1.19.        “Company” shall mean Ameriprise Financial, Inc., a Delaware corporation, and any successor to all or substantially all of its assets or business.

1.20.        “Company Stock” shall mean the common stock, par value $0.01 per share, of the Company.

1.21.        “Deferred Share Unit” or “DSU” shall mean a unit credited to a Participant’s Stock Account in accordance with the terms and conditions of the Plan.  Each DSU shall represent the right to receive one share of Company Stock at the time or times designated in the Plan.

1.22.        “Disability” shall mean, with respect to a Participant, the Participant is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months.  In making its determination, the Committee shall be guided by the prevailing authorities applicable under Section 409A.

1.23.        “Distribution Election” shall mean an election made in accordance with Article 6.01.

1.24.        “Distribution Election Form” shall mean the written form required by the Committee to be signed and submitted by a Participant with respect to a Distribution Election.

1.25.        “Eligible Compensation” shall mean the Annual Fees, annual chair retainer fees and any other cash compensation payable to Eligible Directors, designated by the Committee in the applicable Annual Enrollment Materials as eligible for deferral under the Plan for such Plan Year.

1.26.        “Eligible Director” shall mean a member of the Board who is not also an employee of the Company or any of its Affiliates.

1.27.        “Market Value” of a share of Company Stock shall mean the fair market value thereof, which shall be the price per common share which is equal to the average closing price for a board lot of Company Stock on the New York Stock Exchange (the “NYSE”) during the five trading days immediately preceding the date of determination.  If at any time the Company Stock is no longer listed or traded on the NYSE, the Market Value shall be calculated in such manner as may be determined by the Committee in its good faith judgment from time to time.

1.28.        “Newly Eligible Director” shall mean a member of the Board who becomes eligible to participate in the Plan during a Plan Year and who has not previously participated in the Plan or an elective or non-elective account-balance deferred compensation arrangement (as defined for purposes of Section 409A) of the Company or any Affiliate, to the extent permissible under Section 409A.

1.29.        “Participant” shall mean any Eligible Director who commences participation in the Plan and whose participation in the Plan has not terminated.  A spouse or former spouse of a Participant shall not be treated as a Participant in the Plan or have an account balance under the

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Plan, even if he or she has an interest in the Participant’s benefits under the Plan as a result of applicable law or property settlements resulting from legal separation or divorce.

1.30.        “Plan” shall mean the Ameriprise Financial Deferred Share Plan for Outside Directors, which shall be evidenced by this instrument and by the Annual Enrollment Materials, as they may be amended from time to time.

1.31.        “Plan Year” shall mean the 12-month period beginning on January 1 of each calendar year and ending on December 31 of such calendar year.

1.32.        “Pro Rata Annual DSU Grant” shall have the meaning set forth in Article 3.01(c).

1.33.        “Pro Rata Annual Fee” shall mean, with respect to an Eligible Director, the product obtained by multiplying such Eligible Director’s Annual Fee by a fraction, the numerator of which is the number of full months in the applicable Service Period that follow the date on which such Eligible Director first becomes an Eligible Director under the Plan and the denominator of which is 12.

1.34.        “Quarter” shall mean any of the four quarters of any financial year of the Company as may be adopted from time to time and, unless and until the financial year of the Company is changed, shall mean the quarters ending March 31, June 30, September 30 and December 31.

1.35.        “Reference Date” shall mean the date used to determine the Market Value of a share of Company Stock for purposes of determining the number of DSUs to be credited to a Participant’s Stock Account.  Unless otherwise determined by the Committee and approved by the Board, the Reference Date shall be:  (a) with respect to an Annual DSU Grant, the date of the Company’s Annual Meeting of Stockholders at which the stockholders elect directors to the Board; (b) with respect to a Pro Rata Annual DSU Grant, the fifth trading day following the release by the Company of its financial statements for the Quarter in which the applicable Eligible Director first becomes an Eligible Director; (c) with respect to the portion of a Participant’s Annual Elective Deferral that is notionally invested in DSUs in respect of any Quarter, the fifth trading day following the release by the Company of its financial statements for such Quarter; and (d) with respect to an Eligible Director’s election pursuant to Article 5.01 to notionally invest a portion of the funds in his or her Cash Account in DSUs, the fifth trading day following the release by the Company of its financial statements for the applicable Quarter to which the election relates.

1.36.        “Section 409A” shall mean Section 409A of the Code, and the Treasury Regulations promulgated and other official guidance issued thereunder.

1.37.        “Service Period” shall mean the 12-month period between the Company’s Annual Meetings of Stockholders at which the stockholders elect directors to the Board.

1.38.        “Settlement Date” shall mean, unless otherwise determined by the Committee, the date on which shares of Company Stock shall be delivered in settlement of DSUs in accordance with Article 6.

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1.39.        “Stock Account” shall mean a notional, bookkeeping account established under the Plan for a Participant to measure the value of (a) any portion of a Participant’s Annual Elective Deferral for a Plan Year that is deemed to be invested in DSUs and (b) all DSUs credited to the Participant in connection with his or her Annual DSU Grant or Pro Rata Annual DSU Grant.

1.40.        “Termination of Service” shall mean a “separation from service” as defined under Section 409A, as determined in accordance with the Company’s Policy Regarding Section 409A Compliance.

1.41.        “Trust” shall mean a trust established in accordance with Article 11.

1.42.        “Trustee” shall mean the trustee of the Trust.

1.43.        “Unforeseeable Emergency” shall mean, with respect to a Participant, a severe financial hardship to the Participant resulting from an illness or accident of the Participant, the Participant’s spouse, or a dependent (as defined in Section 152(a) of the Code) of the Participant, loss of the Participant’s property due to casualty, or other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant.  In making its determination, the Committee shall be guided by the prevailing authorities applicable under Section 409A.

Article 2
Eligibility

2.01.        Eligibility.  All Eligible Directors shall participate in the Plan.  An Annual DSU Grant or Pro Rata Annual DSU Grant will be credited to the Stock Account of each Eligible Director on an annual basis pursuant to Article 3.01.  In addition, each Eligible Director may elect to make an Annual Elective Deferral in respect of each Plan Year in accordance with Article 4.

Article 3
Annual DSU Grants

3.01.        Annual DSU Grants.

(a)           Establishment of Stock Account.  A Stock Account will be established under the Plan for each Eligible Director at the time that he or she becomes an Eligible Director.

(b)           Crediting of Annual DSU Grant.  An Annual DSU Grant will be made at the commencement of each Service Period to all persons who are Eligible Directors on the Reference Date for such Annual DSU Grant; provided, however, that in the event of a contested election, a member of the Board who is not re-elected to the Board at the Company’s Annual Meeting of Stockholders shall not be treated as an Eligible Director as of the Reference Date.  The value of, or number of DSUs subject to, an Annual DSU Grant shall be determined by the Board, in its sole discretion. In the event that the Board specifies the value of an Annual DSU Grant, the number of DSUs subject to such Annual DSU Grant will equal the quotient determined by dividing: (i) the value determined by the Board; by (ii) the Market Value of a

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share of Company Stock on the Reference Date for such Annual DSU Grant.  Fractional DSUs will be credited to an Eligible Director’s Stock Account rounded to three decimal places.

(c)           Crediting of Pro Rata Annual DSU Grant.  An Eligible Director who first becomes an Eligible Director in a Service Period after the Reference Date for the Annual DSU Grant made in respect of such Service Period has occurred will be eligible to receive a “Pro Rata Annual DSU Grant” for such Service Period.  The Pro Rata Annual DSU Grant will be credited to the Eligible Director’s Stock Account on the Reference Date for such Pro Rata Annual DSU Grant. The value of, or number of DSUs subject to, a Pro Rata Annual DSU Grant shall be determined by the Board, in its sole discretion. In the event that the Board specifies the value of a Pro Rata Annual DSU Grant, the number of DSUs subject to such Pro Rata Annual DSU Grant will equal the quotient determined by dividing: (i) the value determined by the Board; by (ii) the Market Value of a share of Company Stock on the Reference Date for such Pro Rata Annual DSU Grant. Fractional DSUs will be credited to an Eligible Director’s Stock Account rounded to three decimal places.

(d)           Revocability of Annual DSU Grant.  An Annual DSU Grant by the Committee is revocable until the date upon which the Committee actually credits the DSUs to the Participant’s Stock Account.

(e)           Effective of Subsequent Employment.  A Participant who becomes an employee of the Company or any of its Affiliates, or who, as a result of a determination by the Committee, shall no longer be eligible to continue to participate in the Plan, shall not be entitled to receive any additional Annual DSU Grants under this Article 3.01 in respect of any of his or her future services.  DSUs already credited to any such Participant’s Stock Account in respect of past Annual DSU Grants shall remain governed by the Plan and the Annual Enrollment Forms on file for such Participant, and such Participant shall be entitled to continue to have DSUs credited to such Participant’s Stock Account under Articles 5.03 and 5.04 until such Participant’s Settlement Date.

3.02.        Vesting.  A Participant shall be vested in his or her Annual DSU Grant in respect of each given Plan Year as set forth in the Annual Enrollment Materials for such Plan Year.  The vesting terms of the Annual DSU Awards set forth in the Annual Enrollment Materials shall be established by the Committee in its sole discretion and may vary for each Participant and each Plan Year.  Notwithstanding anything to the contrary contained in the Plan or any of the Annual Enrollment Materials, the Committee shall have the authority, exercisable in its sole discretion, to accelerate the vesting of any amounts credited to any Account of any Participant.

Article 4

Annual Elective Deferrals

4.01.        Enrollment Requirements for Annual Elective Deferrals.  As a condition to being eligible to make an Annual Elective Deferral for any Plan Year, each Eligible Director shall be required to complete, execute and return to the Committee each of the required Annual Enrollment Forms no later than the last day of the immediately preceding Plan Year or such earlier date as the Committee may establish from time to time, and in accordance with the requirements of Section 409A.  Notwithstanding the foregoing, in the case of a Newly Eligible

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Director, such Eligible Director shall complete, execute and return to the Committee or its designee each of the required Annual Enrollment Forms no later than 30 days following the date on which such Eligible Director first becomes eligible to participate in the Plan or such earlier date as the Committee may establish from time to time.  If an Eligible Director fails to meet all such requirements within the specified time period with respect to any Plan Year, the Eligible Director shall not be eligible to make any deferrals for that Plan Year.  An Eligible Director’s Annual Election Form shall be irrevocable once filed with the Committee, and may only be suspended pursuant to Article 4.07.

4.02.        Annual Elective Deferrals.

(a)           Deferral Election.  The Committee shall have sole discretion to determine the terms and conditions applicable to the Annual Elective Deferral.  To the extent permitted by the Committee and subject to the terms and conditions provided by the Committee, a Participant for a given Plan Year may make an election to defer the receipt of all or a portion of his or her Eligible Compensation for services rendered during that Plan Year.  The Participant’s election shall be evidenced by an Annual Election Form completed and submitted to the Committee in accordance with the procedures as may be established by the Committee in its sole discretion.

(b)           Minimum and Maximum Deferrals.  The Committee may from time to time designate in the Annual Enrollment Materials for a given Plan Year a minimum or maximum amount or percentage of Eligible Compensation that an Eligible Director may elect to defer under the Plan with respect to that Plan Year.

(c)         Deferral Deductions.  Annual Elective Deferral shall be deducted from the items of Eligible Compensation as follows:  (i) for periodic payments (e.g., meeting fees), in substantially equivalent amounts from each periodic payment during the Plan Year; and (ii) for one-time payments (e.g., annual retainers), at the time the compensation would otherwise have been paid to the Participant.

4.03.        Commencement of Participation.  Provided an Eligible Director has met all enrollment requirements set forth in the Plan in respect of a particular Plan Year and any other requirements imposed by the Committee, including signing and submitting all Annual Enrollment Forms to the Committee within the specified time period, the Eligible Director’s designated deferrals shall commence as of the first day of the particular Plan Year.  In the case of a Newly Eligible Director, designated deferrals shall commence as of the date such Newly Eligible Director’s Annual Enrollment Forms are received by the Committee, which shall be no later than 30 days following the date on which such individual first became eligible to participate in the Plan, and such Annual Election Form shall apply only with respect to the Eligible Compensation earned for services performed subsequent to the time such Annual Election Form is received by the Committee.

4.04.        Crediting of Account.  The amounts deferred by a Participant in respect of services rendered during a Plan Year shall be referred to collectively as the “Annual Elective Deferral.”  The Annual Elective Deferral shall be credited on a quarterly basis to the Participant’s Stock Account and/or Cash Account, as determined in accordance with the

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Participant’s investment election pursuant to Article 5.01, with such crediting to occur on the Reference Date in respect of each Quarter.

4.05.        Subsequent Plan Year Annual Elective Deferrals.  The Annual Enrollment Forms submitted by a Participant in respect of such Participant’s elective deferrals for a particular Plan Year will not be effective with respect to any subsequent Plan Year.  If an Eligible Director is eligible to make elective deferrals under the Plan for a subsequent Plan Year and the required Annual Enrollment Forms are not timely delivered for the subsequent Plan Year, the Participant shall not be eligible to make any elective deferrals with respect to such subsequent Plan Year.

4.06.        Vesting.  A Participant shall be vested in her or her Annual Elective Deferrals as of the date such amounts are credited to such Participant’s Stock Account and/or Cash Account.  Notwithstanding anything to the contrary contained in the Plan or any of the Annual Enrollment Materials, the Committee shall have the authority, exercisable in its sole discretion, to accelerate the vesting of any amounts credited to any Account of any Participant.

4.07.      Suspension of Deferrals.

(a)           Unforeseeable Emergencies.  If a Participant experiences an Unforeseeable Emergency, the Participant may petition the Committee to suspend any deferrals required to be made by the Participant.  A petition shall be made on the form required by the Committee to be used for such request and shall include all financial information requested by the Committee in order to make a determination on such petition, as determined by the Committee in its sole discretion.  The Committee shall determine, in its sole discretion, whether to approve the Participant’s petition.  If the petition for a suspension is approved, suspension shall take effect upon the date of approval.  Notwithstanding the foregoing, the Committee shall not have any right to approve a request for suspension of deferrals if such approval (or right to approve) would cause the Plan to fail to comply with, or cause a Participant to be subject to a tax under the provisions of Section 409A.

(b)           Disability.  From and after the date that a Participant is deemed have suffered a Disability, any standing deferral election of the Participant shall automatically be suspended and no further deferrals shall be made with respect to the Participant.

(c)           Resumption of Deferrals.  If deferrals by a Participant have been suspended during a Plan Year due to an Unforeseeable Emergency or a Disability, the Participant will not be eligible to make any further deferrals in respect of that Plan Year.  The Participant may be eligible to make deferrals for subsequent Plan Years provided the Participant is selected to make deferrals for such subsequent Plan Years and the Participant complies with the election requirements under the Plan.

Article 5
Investment Elections

5.01.        Initial Investment Elections.  Each Eligible Director who elects to make an Annual Elective Deferral under the Plan will be required to designate, at the time that he or she makes an Annual Elective Deferral, the portion of the Annual Elective Deferral that will be notionally invested in DSUs, which may be zero.  If a Participant elects to notionally invest a

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portion of his or her Annual Elective Deferral in DSUs, the number of DSUs that will be credited to a Participant’s Stock Account in respect of his or her Annual Elective Deferral will be determined quarterly on the Reference Date and credited to such Participant’s Stock Account as of such date, and will be equal to the quotient obtained by dividing (a) the amount of the Annual Elective Deferral for such Quarter that the Participant has notionally elected to invest in DSUs by (b) the Market Value of a share of Company Stock on the Reference Date for such Quarter.  Any portion of the Participant’s Annual Elective Deferral that is not notionally invested in DSUs will be credited to the Participant’s Cash Account, where it will earn interest at the Cash Account Interest Rate.

5.02.        Changes to Investment Elections.  A Participant may, on a Quarterly basis, elect to notionally invest a portion of the funds notionally invested in his or her Cash Account in DSUs at such times as the Committee may designate by completing and submitting to the Committee an investment change on a form provided by the Committee for such purpose, and in accordance with such procedure and time frames as may be established from time to time at the sole discretion of the Committee.  In connection with any such election, the Participant’s Cash Account will be debited by the amount the Participant designates for notional investment in DSUs (the “DSU Investment Amount”), and the Participant’s Stock Account will be increased by a number of DSUs determined by dividing the DSU Investment Amount by the Market Value of a share of Company Stock on the applicable Reference Date.  Notwithstanding anything to the contrary in the Plan, a Participant may not at any time make any changes with respect to the amounts credited to the Participant’s Stock Account in the form of DSUs pursuant to Article 3 or with respect to the portion of the Participant’s Annual Elective Deferral that he or she elects to notionally invest in DSUs pursuant to this Article 5, in each case as adjusted pursuant to Articles 5.03 and 5.04.

5.03.        Dividends and Related Amounts.  A Participant’s Stock Account shall, from time to time during such Participant’s period of participation under the Plan, including during the period following the Participant’s Termination of Service and until the Settlement Date, be credited on each dividend payment date in respect of Company Stock with additional DSUs, the number of which shall be equal to the quotient determined by dividing (a) the product determined by multiplying (i) 100 percent of each dividend declared and paid by the Company on the Company Stock on a per share basis by (ii) the number of DSUs recorded in the Participant’s Account on the record date for the payment of any such dividend, by (b) the Market Value of a share of Company Stock on the dividend payment date for such dividend, in each case, with fractions computed to three decimal places.

5.04.        Anti-Dilution Adjustment.  In the event of a change in the outstanding shares of Company Stock by reason of any change in corporate capitalization, such as a stock split or dividend, or a corporate transaction, such as any merger of the Company into another corporation, any consolidation of two or more corporations into another corporation, any separation of a corporation (including a spin-off or other distribution of stock or property by a corporation), any reorganization of a corporation (whether or not such reorganization comes within the definition of such term in Section 368 of the Code), or any partial or complete liquidation by the Company, the Committee shall make such adjustment in the class and number of DSUs credited to Participants’ Accounts to reflect any such change as may be determined to be appropriate by the Committee, and such adjustments shall be final, conclusive and binding for

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all purposes of the Plan.  Any adjustments or substitutions under this Article 5.04 shall conform to the requirements of Section 409A.

5.05.        No Investment Liability; Indemnification.  None of the Company, its directors and employees (including, without limitation, each member of the Committee), and their designated agents and representatives, shall have any liability whatsoever for the investment performance of a Participant’s Accounts.  Each Participant hereunder, as a condition to his or her participation in the Plan, agrees to indemnify and hold harmless the Company, its directors and employees (including, without limitation, each member of the Committee), and their designated agents and representatives, from any losses or damages of any kind (including, without limitation, lost opportunity costs) relating to the investment of a Participant’s Accounts.

Article 6
Distribution of Accounts

6.01.        Distribution Elections.

(a)           Initial Elections.  The Participant shall make a Distribution Election by filing a Distribution Election Form at the time he or she files an Annual Election Form for a given Plan Year to have the Participant’s Cash Account and the portion of the Participant’s Stock Account that relates to his or her Annual Elective Deferrals for that Plan Year distributed:

(i)            in a lump sum at the end of the Quarter immediately following the Quarter in which the Participant’s Termination of Service occurs;

(ii)           in a lump sum on March 31 of a specified year; or

(iii)          in two to five substantially equivalent annual installments, in each case commencing, in accordance with administrative guidelines determined by the Committee, at the end of the Quarter immediately following the Quarter in which the Participant has a Termination of Service, with subsequent installments made on March 31st of each year.  The amount of each installment payment shall be equal to the value of the Participant’s respective Accounts for that Plan Year divided by the number of installments remaining to be paid.

(b)           Subsequent Elections.  Subject to any restrictions that may be imposed by the Committee, a Participant may amend his or her Distribution Election with respect to his or her Cash Account and the portion of the Participant’s Stock Account for a given Plan Year that relates to his or her Annual Elective Deferrals by completing and submitting to the Committee within such time frame as the Committee may designate, an Amended Distribution Election Form; provided, however, such Amended Distribution Election Form (i) is submitted no later than a date specified by the Committee in accordance with the requirements of Section 409A, (ii) shall not take effect until 12 months after the date on which such Amended Distribution Election Form becomes effective, and (iii) specifies a new distribution date (or a new initial distribution date in the case of installment distributions) that is no sooner than five years after the original distribution date (or the original initial distribution date in the case of installment distributions), or such later date specified by the Committee.

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6.02.        Distribution of Annual Elective Deferrals.  Except as otherwise provided by Article 8, the distribution of a Participant’s Cash Account and the portion of the Participant’s Stock Account that relates to his or her Annual Elective Deferrals shall be made in accordance with the Participant’s election in effect as of the applicable specified event or the date of the Participant’s Termination of Service.

6.03.        Distribution of Annual DSU Grants.  Except as otherwise provided by Article 8, the portion of a Participant’s Stock Account that relates to the Participant’s Annual DSU Grant shall be distributed in a lump sum at the end of the Quarter immediately following the Quarter in which the Participant’s Termination of Service occurs.

6.04.        Valuation of Accounts Pending Distribution.  To the extent that the distribution of any portion of any Account is deferred, whether pursuant to the limitations imposed under this Article 6 or for any other reason, any amounts remaining to the credit of the Account shall continue to be adjusted in accordance with Articles 5.03 and 5.04.

6.05.        Form of Payment.  Except as may be otherwise determined by the Committee, all distributions under the Plan with respect to DSUs credited to the Participant’s Stock Account will be made in Company Stock.  All distributions under the Plan with respect to amounts credited to a Participant’s Cash Account will be paid in cash.  Except as may be otherwise determined by the Committee, all distributions under the Plan in the form of Company Stock shall be distributed pursuant to the Ameriprise Financial 2005 Incentive Compensation Plan, as amended from time to time, or any successor plan thereto, and will count against the limit on the number of shares of Company Stock available for distribution thereunder.

6.06.        Effect of Payment.  The full payment of the applicable benefit under the provisions of the Plan shall completely discharge all obligations to a Participant and his or her Beneficiary under the Plan.

Article 7
Beneficiary Designation

7.01.        Beneficiary.  Each Participant shall have the right, at any time, to designate his or her Beneficiary to receive any benefits payable under the Plan upon the death of a Participant.  The Beneficiary designated under the Plan may be the same as or different from the beneficiary designation under any other plan or arrangement in which the Participant participates.

7.02.        Beneficiary Designation; Change.  A Participant shall designate his or her Beneficiary by completing and signing a Beneficiary Designation Form, and returning it to the Committee.  A Participant shall have the right to change a Beneficiary by completing, signing and submitting to the Committee an amended Beneficiary Designation Form in accordance with the Committee’s rules and procedures, as in effect from time to time.  Upon the acceptance by the Committee of an amended Beneficiary Designation Form, all Beneficiary designations previously filed shall be canceled.  The Committee shall be entitled to rely on the last Beneficiary Designation Form filed by the Participant and accepted by the Committee prior to his or her death.

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7.03.        Acknowledgment.  No designation or change in designation of a Beneficiary shall be effective until received, accepted and acknowledged in writing by the Committee.

7.04.        No Beneficiary Designation.  If a Participant fails to designate a Beneficiary as provided above or, if the designated Beneficiary predeceases the Participant, then the Participant’s designated Beneficiary shall be deemed to be his or her surviving spouse.  If the Participant has no surviving spouse, the benefits remaining under the Plan to be paid to a Beneficiary shall be payable to the executor or personal representative of the Participant’s estate.

7.05.        Doubt as to Beneficiary.  If the Committee has any doubt as to the proper Beneficiary to receive payments pursuant to the Plan, to the extent permissible under Section 409A, the Committee shall have the right, exercisable in its discretion, to cause the Company to withhold such payments until this matter is resolved to the Committee’s satisfaction.

7.06.        Discharge of Obligations.  The payment of benefits under the Plan to a Beneficiary shall fully and completely discharge the Company and the Committee from all further obligations under the Plan with respect to the Participant.

Article 8

Effects of Certain Events

8.01.        Death.  In the case of a Participant’s death, all amounts credited to the Accounts of the affected Participant shall be 100 percent vested.  Notwithstanding anything to the contrary in a Participant’s Distribution Election or otherwise, if a Participant dies before he or she has received a complete distribution of his or her Accounts, the Participant’s Beneficiary shall receive the balance of the Participant’s Accounts, which shall be payable to the Participant’s Beneficiary in a lump sum within 90 days of the date of the Participant’s death, or such later date permissible under Section 409A.

8.02.        Disability.  In the case of a Participant’s Disability, all amounts credited to the Participant’s Accounts shall be 100 percent vested.  Notwithstanding anything to the contrary in a Participant’s Distribution Election or otherwise, a Participant suffering a Disability shall receive the balance of his or her Accounts, which shall be paid in a lump sum within 90 days of the date that the Participant became disabled.

8.03.        Other Termination of Service.  As of the date of a Participant’s Termination of Service for any reason other than Disability or death, the amounts credited to each of the Participant’s Accounts shall be reduced by the amount which has not become vested in accordance with the vesting provisions set forth herein and in the Annual Enrollment Materials applicable to such Account, and such unvested amounts shall be forfeited by the Participant.  Notwithstanding anything to the contrary in a Participant’s Distribution Election or otherwise, in the event of a Participant’s Termination of Service for any reason other than Disability or death, the portion of the Participant’s Aggregate Vested Balance will be paid out in either a lump sum, or two to five substantially equivalent annual installments, as specified by the Participant in his or her Distribution Election, commencing in accordance with the Participant’s Distribution Election and the administrative guidelines determined by the Committee.

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8.04.        Change in Control.  Upon the occurrence of a Change in Control of the Company, all amounts credited to any and all Accounts of each Participant as of the effective date of such Change in Control shall become immediately 100 percent vested.  Notwithstanding anything to the contrary set forth in a Participant’s Distribution Election Form or the Plan, upon the occurrence of a Change in Control, the Company will distribute all previously undistributed Accounts to Participants (or their Beneficiaries, as the case may be), as soon as administratively practicable following the effective date of such Change in Control, but in no event later than 90 days thereafter.

8.05.        Unforeseeable Emergency.  In the event that a Participant experiences an Unforeseeable Emergency, the Participant may petition the Committee to receive a partial or full payout of amounts credited to one or more of the Participant’s Accounts.  The Committee shall determine, in its sole discretion, whether the requested payout shall be made, the amount of the payout and the Accounts from which the payout will be made; provided, however, that the payout shall not exceed the lesser of the Participant’s Aggregate Vested Balance or the amount reasonably needed to satisfy the Unforeseeable Emergency plus amounts necessary to pay taxes reasonably anticipated as a result of the distribution.  In making its determination under this Article 8.05, the Committee shall be guided by the requirements of Section 409A and any other related prevailing legal authorities, and the Committee shall take into account the extent to which a Participant’s Unforeseeable Emergency is or may be relieved through reimbursement or compensation by insurance or otherwise or by the liquidation by the Participant of his or her assets (to the extent the liquidation of such assets would not itself cause severe financial hardship).  If, subject to the sole discretion of the Committee, the petition for a payout is approved, the payout shall be made within 90 days of the date of the Unforeseeable Emergency.

8.06.        Event of Taxation.  If, for any reason, all or any portion of a Participant’s benefit under the Plan becomes taxable to the Participant prior to receipt, a Participant may petition the Committee for a distribution of the state, local or foreign taxes owed on that portion of his or her benefit that has become taxable.  Upon the grant of such a petition, which grant shall not be unreasonably withheld, the Company shall, to the extent permissible under Section 409A, distribute to the Participant immediately available funds in an amount equal to the state, local and foreign taxes owed on the portion of the Participant’s benefit that has become taxable (which amount shall not exceed a Participant’s unpaid Aggregate Vested Balance under the Plan).  If the petition is granted, the tax liability distribution shall be made within 90 days of the date that the Participant’s benefits under the Plan became taxable.  Such a distribution shall affect and reduce the benefits to be paid to the Participant under the Plan.

8.07.        Plan Termination.  In the event of a termination of the Plan pursuant to Article 9.02 as it relates to any Participant, then subject to Article 6.04, all amounts credited to each of the Accounts of each affected Participant shall be 100 percent vested and shall be paid to the Participant or, in the case of the Participant’s death, to the Participant’s Beneficiary, in a lump sum.  Such lump-sum payment shall be made 13 months after such termination (or such earlier or later date permitted under Section 409A), notwithstanding any elections made by the Participant, and the Annual Election Forms relating to each of the Participant’s Accounts shall terminate upon full payment of such Aggregate Vested Balance, except that the Company shall not have any right to so accelerate the payment of any amount to the extent such right would

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cause the Plan to fail to comply with, or cause a Participant or such Participant’s Beneficiary to be subject to a tax under, the provisions of Section 409A.

Article 9
Amendment and Termination

9.01.        Amendment.  The Company may, at any time, amend or modify the Plan in whole or in part by the actions of the Committee; provided, however, that (a) no amendment or modification shall be effective to decrease or restrict the value of a Participant’s Aggregate Vested Balance at the time the amendment or modification is made, calculated as if the Participant had experienced a Termination of Service as of the effective date of the amendment or modification, (b) no amendment or modification may be made if such amendment or modification would cause the Plan to fail to comply with, or cause a Participant or his or her Beneficiary to be subject to tax under, the provisions of Section 409A, and (c) except as specifically provided in Article 9.02, no amendment or modification shall be made after a Change in Control which adversely affects the vesting, calculation or payment of benefits hereunder or diminishes any other rights or protections any Participant or Beneficiary would have had but for such amendment or modification, unless each affected Participant or Beneficiary consents in writing to such amendment.

9.02.        Termination.  Although the Company may anticipate that it will continue the Plan for an indefinite period of time, there is no guarantee that the Company will continue the Plan or will not terminate the Plan at any time in the future.  Accordingly, the Committee reserves the right to discontinue its sponsorship of the Plan and to terminate the Plan; provided, however, that (a) all plans that are aggregated with the Plan for purposes of Section 409A are also terminated; and (b) the Plan is not terminated proximate to a downturn in the financial health of the Company, or any entity other than the Company with whom the Company would be considered a single employer under Sections 414(b) or 414(c) of the Code.  In the event of a termination described in this Article 9.02, no new deferred compensation plans may be established by the Company for a minimum period of three years following the termination and liquidation of the Plan if such new plan would be aggregated with the Plan under Section 409A.

Article 10
Administration

10.01.      Committee Duties.  The Plan shall be administered by the Committee.  Members of the Committee may be Participants under the Plan.  The Committee shall also have the discretion and authority to (a) make, amend, interpret, and enforce all appropriate rules and regulations for the administration of the Plan, and (b) decide or resolve any and all questions including interpretations of the Plan, as may arise in connection with the Plan.  Any individual serving on the Committee who is a Participant shall not vote or act on any matter relating solely to himself or herself.  When making a determination or calculation, the Committee shall be entitled to rely on information furnished by a Participant or the Company.

10.02.      Agents.  In the administration of the Plan, the Committee may, from time to time, employ agents and delegate to them such administrative duties as it sees fit (including acting

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through a duly appointed representative) and may from time to time consult with counsel who may be counsel to the Company.

10.03.      Binding Effect of Decisions.  The decision or action of the Committee with respect to any question arising out of or in connection with the administration, interpretation and application of the Plan and the rules and regulations promulgated hereunder shall be final and conclusive and binding upon all persons having any interest in the Plan.

10.04.      Indemnity of Committee.  The Company shall indemnify and hold harmless the members of the Committee, and any agent to whom duties of the Committee may be delegated, against any and all claims, losses, damages, expenses or liabilities arising from any action or failure to act with respect to the Plan, except in the case of willful misconduct by the Committee or any of its members or any such agent.

Article 11
Trust

11.01.    Establishment of the Trust.  The Company may establish one or more Trusts to which the Company may transfer such assets as it determines in its sole discretion to assist in meeting its obligations under the Plan.

11.02.    Interrelationship of the Plan and the Trust.  The provisions of the Plan and the relevant Annual Enrollment Materials shall govern the rights of a Participant to receive distributions pursuant to the Plan.  The provisions of the Trust shall govern the rights of the Company, Participants and the creditors of the Company to the assets transferred to the Trust.

11.03.    Distributions from the Trust.  The Company’s obligations under the Plan may be satisfied with Trust assets distributed pursuant to the terms of the Trust, and any such distribution shall reduce the Company’s obligations under the Plan.

Article 12
Miscellaneous

12.01.      Status of Plan.  The Plan is intended to be a plan that is not qualified within the meaning of Section 401(a) of the Code.  The Plan shall be administered and interpreted to the extent possible in a manner consistent with that intent.  All Accounts and all credits and other adjustments to such Accounts shall be bookkeeping entries only and shall be utilized solely as a device for the measurement and determination of amounts to be paid under the Plan.  No Accounts, credits or other adjustments under the Plan shall be interpreted as an indication that any benefits under the Plan are in any way funded.

12.02.      Section 409A.  It is intended that the Plan (including all amendments thereto) comply with provisions of Section 409A, so as to prevent the inclusion in gross income of any benefits accrued hereunder in a taxable year prior to the taxable year or years in which such amount would otherwise be actually distributed or made available to the Participants.  The Plan shall be administered and interpreted to the extent possible in a manner consistent with that intent and the Company’s Policy Regarding Section 409A Compliance.  Notwithstanding the terms of Article 6, to the extent that a distribution to a Participant who is a Specified Employee

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at the time of his or her Termination of Service is required to be delayed by six months pursuant to Section 409A, such distribution shall be made no earlier than the first day of the seventh month following the Participant’s Termination of Service.  The amount of such payment will equal the sum of the payments that would have been paid to the Specified Employee during the six-month period immediately following the Specified Employee’s Termination of Employment had the payment commenced as of such date.  If the Specified Employee elected to receive installment payments, the remaining balance of the Specified Employee’s Accounts shall be paid in substantially equivalent installments.  For purposes of this paragraph, “Specified Employee” shall mean a key employee as defined under Section 409A, as determined in accordance with the Company’s Policy Regarding Section 409A Compliance.

12.03.      Unsecured General Creditor.  Participants and their Beneficiaries, heirs, successors and assigns shall have no legal or equitable rights, interests or claims in any property or assets of the Company.  For purposes of the payment of benefits under the Plan, any and all of the Company’s assets, shall be, and remain, the general, unpledged unrestricted assets of the Company. The Company’s obligation under the Plan shall be merely that of an unfunded and unsecured promise to pay money in the future.

12.04.      Other Benefits and Agreements.  The benefits provided for a Participant and his or her Beneficiary under the Plan are in addition to any other benefits available to such Participant under any other plan or program made available to the Participant.  The Plan shall supplement and shall not supersede, modify or amend any other such plan or program except as may otherwise be expressly provided.

12.05.      Nonassignability.  Neither a Participant nor any other person shall have any right to commute, sell, assign, transfer, pledge, anticipate, mortgage or otherwise encumber, transfer, hypothecate, alienate or convey in advance of actual receipt, the amounts, if any, payable hereunder, or any part thereof, which are, and all rights to which are expressly declared to be, unassignable and non-transferable.  No part of the amounts payable shall, prior to actual payment, be subject to seizure, attachment, garnishment or sequestration for the payment of any debts, judgments, alimony or separate maintenance owed by a Participant or any other person, be transferable by operation of law in the event of a Participant’s or any other person’s bankruptcy or insolvency or be transferable to a spouse as a result of a property settlement or otherwise.

12.06.      Not a Contract of Service.  The terms and conditions of the Plan and the Annual Enrollment Materials under the Plan shall not be deemed to constitute a contract of service between the Company and a Participant.  Nothing in the Plan or any Annual Election Form shall be deemed to give a Participant the right to continue in the service of the Company.

12.07.      Furnishing Information.  A Participant or his or her Beneficiary will cooperate with the Committee by furnishing any and all information requested by the Committee and take such other actions as may be requested in order to facilitate the administration of the Plan and the payments of benefits hereunder, including but not limited to taking such physical examinations as the Committee may deem necessary.

12.08.      Terms.  Whenever any words are used herein in the masculine, they shall be construed as though they were in the feminine in all cases where they would so apply; and

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whenever any words are used herein in the singular or in the plural, they shall be construed as though they were used in the plural or the singular, as the case may be, in all cases where they would so apply.

12.09.      Captions.  The captions of the articles and paragraphs of the Plan are for convenience only and shall not control or affect the meaning or construction of any of its provisions.

12.10.      Governing Law.  The Plan and all determinations made and actions taken thereunder, to the extent not otherwise governed by federal law, shall be governed by the laws of the State of Delaware, without reference to principles of conflict of laws, and construed accordingly.

12.11.      Notice.  Any notice or filing required or permitted to be given to the Committee under the Plan shall be sufficient if in writing and hand-delivered, or sent by registered or certified mail, to the address below:

Ameriprise Financial, Inc.

361 Ameriprise Financial Center

Minneapolis, Minnesota 55474

Attn:  Vice President, Compensation and Benefits

with a copy to:

General Counsel’s Office

Such notice shall be deemed given as of the date of delivery or, if delivery is made by mail, as of the date shown on the postmark or the receipt for registration or certification.

Any notice or filing required or permitted to be given to a Participant under the Plan shall be sufficient if in writing and hand-delivered, or sent by mail, to the last known address of the Participant.

12.12.      Successors.  The provisions of the Plan shall bind and inure to the benefit of the Company and its successors and assigns and the Participant and the Participant’s Beneficiaries.

12.13.      Spouse’s Interest.  The interest in the benefits hereunder of a spouse of a Participant who has predeceased the Participant shall automatically pass to the Participant and shall not be transferable by such spouse in any manner, including but not limited to such spouse’s will, nor shall such interest pass under the laws of intestate succession.

12.14.      Validity.  In case any provision of the Plan shall be illegal or invalid for any reason, said illegality or invalidity shall not affect the remaining parts hereof, but the Plan shall be construed and enforced as if such illegal or invalid provision had never been inserted herein.

12.15.      Incompetent.  If the Committee determines in its discretion that a benefit under the Plan is to be paid to a minor, a person declared incompetent or to a person incapable of handling the disposition of that person’s property, the Committee may direct payment of such

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benefit to the guardian, legal representative or person having the care and custody of such minor, incompetent or incapable person.  The Committee may require proof of minority, incompetence, incapacity or guardianship, as it may deem appropriate prior to distribution of the benefit.  Any payment of a benefit shall be a payment for the account of the Participant and the Participant’s Beneficiary, as the case may be, and shall be a complete discharge of any Company liability under the Plan for such payment amount.

12.16.      Legal Fees to Enforce Rights After Change in Control.  The Company is aware that upon the occurrence of a Change in Control, the Board (which might then be composed of new members) or a stockholder of the Company, or of any successor corporation might then cause or attempt to cause the Company or such successor to refuse to comply with its obligations under the Plan and might cause or attempt to cause the Company to institute, or may institute, arbitration or litigation seeking to deny Participants the benefits intended under the Plan.  In these circumstances, the purpose of the Plan could be frustrated.  Accordingly, if, following a Change in Control, it should appear to any Participant that the Company or any successor corporation has failed to comply with any of its obligations under the Plan or any agreement thereunder, or if the Company or any other person takes any action to declare the Plan void or unenforceable or institutes any arbitration, litigation or other legal action designed to deny, diminish or to recover from any Participant the benefits intended to be provided, then the Company irrevocably authorize such Participant to retain counsel of his or her choice at the expense of the Company to represent such Participant in connection with the initiation or defense of any arbitration, litigation or other legal action, whether by or against the Company or any director, officer, stockholder or other person affiliated with the Company or any successor thereto in any jurisdiction; provided, however, that in the event that the trier in any such legal action determines that the Participant’s claim was not made in good faith or was wholly without merit, the Participant shall return to the Company any amount received pursuant to this Article 12.16.  Any reimbursements shall be paid in accordance with the Company’s Policy Regarding Section 409A Compliance.

12.17.      Electronic Documents Permitted.  Subject to applicable law, Annual Election Forms, Annual Enrollment Materials, and other forms or documents may be in electronic format or made available through means of online enrollment or other electronic transmission.

*  *  *  *  *  *

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EX-10.17

Exhibit 10.17

AMERIPRISE FINANCIAL SENIOR EXECUTIVE SEVERANCE PLAN

As Amended and Restated Effective January 1, 2012

AMERIPRISE FINANCIAL SENIOR EXECUTIVE SEVERANCE PLAN

INTRODUCTION

The Board of Directors of Ameriprise Financial, Inc. established the Ameriprise Financial Senior Executive Severance Plan (hereinafter referred to as the “Plan”), effective as of September 30, 2005, to provide for severance benefits for certain eligible senior executives of Ameriprise Financial, Inc. whose employment is terminated under certain conditions. Severance benefits under the Plan are to be provided to such eligible executives in exchange for a signed agreement that includes a release of all claims.  The Plan has been amended from time to time in the past, and is now amended and restated as set forth herein effective as of January 1, 2012.

ARTICLE ONE
DEFINITIONS

1.1“Affiliated Company” means any corporation which is a member of a controlled group of corporations (determined in accordance with Section 4l4(b) of the Code) of which the Company is a member and any other trade or business (whether or not incorporated) which is controlled by, or under common control (determined in accordance with Section 4l4(c) of the Code) with the Company.

1.2“Annual Cash Award” means, with respect to an Employee, the award, if any, under the applicable annual incentive cash award plan, program or arrangement that such Employee is participating in for the year in which such Employee undergoes a Termination of Employment.

1.3“Base Salary” means the regular basic cash remuneration before deductions for taxes and other items withheld, payable to an Employee for services rendered to the Company, but not including pay for bonuses, incentive compensation, special pay, awards or commissions.

1.4“Board of Directors” means the board of directors of the Company.

1.5“Bonus” means the average annual cash incentives paid to an Employee in the last three years, excluding the year of the Employee’s Termination of Employment, over and above Base Salary earned and paid in cash or otherwise, under any executive bonus or sales incentive plan or other incentive program of the Company.

1.6“Change in Control” has the meaning set forth in the Ameriprise Financial 2005 Incentive Compensation Plan, as amended; provided that, notwithstanding anything to the contrary therein, a Change in Control shall not be deemed to occur under the Plan as a result of any event or transaction to the extent that treating such event or transaction as a Change in Control would cause any tax to become due under Section 409A.

1.7“Code” means the Internal Revenue Code of 1986, as amended from time to time, and all regulations, interpretations and administrative guidance issued thereunder.

1.8“Committee” means the Compensation and Benefits Committee of the Board of Directors or any committee established and appointed by the Board of Directors or by a committee of the Board of Directors, or any successor committee appointed by the Board of Directors to administer the Plan.

1.9“Company” means Ameriprise Financial, Inc., a Delaware corporation, its successors and assigns.

1.10“Comparable Position” means a job with the Company, an Affiliated Company or successor company at the same or higher Total Cash Compensation as an

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Employee’s current job and at a work location within reasonable commuting distance from an Employee’s home, as determined by the Company (or, in the event of a claim for Plan benefits disputing the characterization of a position as “Comparable,” the Committee). For Employees in a qualifying international expatriate program adopted by the Company, “Comparable Position” means a job with the Company, an Affiliated Company or successor company at the same or higher Total Cash Compensation as an Employee’s current job and at a work location in the Employee’s country of assignment, home country or career base country.

1.11“Constructive Termination” means resignation or other Termination of Employment by an Employee from the Company as a result of one or more of the following without the Employee’s written consent within two (2) years after a Change in Control (each of the following, a “Good Reason”):

(a)           any reduction in the Employee’s overall total compensation opportunity, including, but not limited to, base salary, annual cash incentive opportunity and long term incentive opportunity, in each case from that in effect immediately prior to the Change in Control;

(b)           the Company’s requirement that the Employee be based more than thirty-five (35) miles from the Employee’s primary residence and more than fifty (50) miles from the location at which the Employee was based immediately prior to the Change in Control; or

(c)           a significant reduction in the Employee’s position, title, duties, or responsibilities from those in effect immediately prior to the Change in Control.

The Employee shall notify the Company within ninety (90) days after the occurrence of an event giving rise to a Good Reason and the Company shall have thirty (30) days to remedy the condition, and if remedied by the Company within such thirty- (30-) day period, no Good Reason shall exist on account of the remedied event. A “Constructive Termination” is intended to qualify as an involuntary separation from service for purposes of Section 409A, and this definition of “Constructive Termination” shall be administered and interpreted consistent with such intention.

1.12“Defined Termination” means a Termination of Employment of an Employee within two (2) years after a Change in Control that occurs as a result of either:

(a)           an Involuntary Termination; or

(b)           a Constructive Termination.

1.13“Disability” has the meaning set forth in Section 409A.

1.14“Employee” means a member of the Company’s executive leadership team, as defined by the Committee, who is paid through the payroll function of the

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Company (as opposed to the accounts payable function of the Company) and holds a position that is identified on a Schedule A to the Plan, as such schedule may be amended from time to time.

1.15“ERISA” means the Employee Retirement Income Security Act of l974, as amended from time to time, and all regulations, interpretations and administrative guidance issued thereunder.

1.16“Good Cause” means a discontinuance of an Employee’s employment by the Company upon one of the following:

(a)           an Employee’s Willful and continued failure to adequately perform substantially all of the Employee’s duties with the Company;

(b)           an Employee’s Willful engagement in conduct which is demonstrably and materially injurious to the Company or an affiliate thereof, monetarily or otherwise; or

(c)           an Employee’s conviction of, or entering a plea of guilty or nolo contendere to (i) a felony or (ii) any misdemeanor that disqualifies an Employee from employment with the Company.

1.17“Involuntary Termination” means any involuntary Termination of Employment by the Company for reasons other than Good Cause within two (2) years after a Change in Control.

1.18“Leave of Absence” means the period during which an Employee is absent from work pursuant to a leave of absence granted by the Company, and a Leave of Absence shall not constitute a Termination of Employment.

1.19“Person” means a “person” as such term is used in Section 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), including any “group” within the meaning of Section 13(d)(3) under the Exchange Act.

1.20“Plan” means the Ameriprise Financial Senior Executive Severance Plan, as set forth herein and as hereafter amended from time to time.

1.21“Pro-Rata Annual Cash Award” means a pro rata payment of the Annual Cash Award for any calendar year for which an Employee would have been eligible for an Annual Cash Award but for the Employee’s Termination of Employment during such calendar year that resulted in the Employee’s eligibility for benefits under this Plan. The Pro-Rata Annual Cash Award will be equal to the actual Annual Cash Award that would have been paid to such Employee (based on the actual performance of the Company for the year of termination) but for his Termination of Employment, multiplied by a fraction, the numerator of which is the number of months of employment during the calendar year, and the denominator of which is twelve. For purposes of determining the number of months of employment during any calendar year, an Employee will be given

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credit for a month only if the Employee is employed by the Company on the last business day of such month.

1.22“Retirement” means a Termination of Employment that qualifies as a normal or deferred retirement as defined in and meeting the terms and conditions of the Ameriprise Financial Retirement Plan, as amended, or any successor plan thereto.

1.23“Section 409A” means Section 409A of the Code, and the Treasury Regulations promulgated and other official guidance issued thereunder.

1.24“Separation Period” means the period of time over which an Employee receives severance benefits under the Plan in biweekly or other installment payments.

1.25“Termination of Employment” means the date on which an Employee undergoes a “separation from service” from the Company, as defined under Section 409A, and as determined in accordance with the Company’s Policy Regarding Section 409A Compliance.

1.26“Total Cash Compensation” means an Employee’s Base Salary and any Bonus.

1.27“Willful” means that an act or failure to act on an Employee’s part is done, or omitted to be done, by the Employee in a manner that is not in good faith, and that is without reasonable belief that such action or omission was in the best interests of the Company.

1.28The masculine pronoun shall be construed to mean the feminine and the singular shall be construed to mean the plural, wherever appropriate herein.

1.29Headings in this document are for identification purposes only and do not constitute a part of the Plan.

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ARTICLE TWO
ELIGIBILITY TO RECEIVE BENEFITS

2.1Eligibility to Receive Benefits. Each Employee shall be eligible to receive benefits under the Plan in the event such Employee undergoes a Termination of Employment from the Company for one of the following reasons:

2.1.1Reduction in force;

2.1.2Position elimination;

2.1.3Office closing;

2.1.4Mutually satisfactory resignation;

2.1.5Relocation of an Employee’s current position that does not meet the definition of Comparable Position; or

2.1.6Defined Termination, as defined in Section 1.12, (applicable only within two (2) years after a Change in Control), and notwithstanding any provision of Section 2.3.

2.2Limitations on Eligibility.

2.2.1An Employee’s resignation only qualifies as a “mutually satisfactory resignation” for purposes of Section 2.1.4 if the Company would have terminated the Employee’s services if the Employee did not voluntarily resign, and the Employee was aware of that fact. A “mutually satisfactory resignation” is intended to qualify as an involuntary separation from service for purposes of Section 409A, and this definition of “mutually satisfactory resignation” shall be administered and interpreted consistent with such intention.

2.2.2In the event an Employee who is otherwise eligible to receive benefits under the Plan is offered a Comparable Position (whether the position is accepted or rejected by the Employee), he will not be eligible to receive benefits under the Plan. In addition, an Employee is not eligible to receive benefits under the Plan if the Employee accepts any position in the Company, an Affiliated Company or successor company (regardless of whether it is a Comparable Position). An Employee who is offered or placed on a temporary layoff status (often referred to as a furlough) with reduced or no pay for a period of less than six (6) months during which time the Employee continues to participate in certain benefit plans as determined by the Company is not eligible to receive benefits under the Plan.

7

2.3Ineligibility to Receive Benefits. An Employee is ineligible to receive benefits under the Plan in the event such Employee undergoes a Termination of Employment from the Company for a reason other than those enumerated in Section 2.1 above, including, but not limited to, the following:

2.3.1Voluntary resignation;

2.3.2Failure to report for work;

2.3.3Failure to return from leave;

2.3.4Return from a Leave of Absence which extends beyond the policy reinstatement period, if applicable, and no position is available;

2.3.5Excessive absenteeism or lateness;

2.3.6Merger, acquisition, sale, transfer, outsourcing or reorganization of all or part of the Employing Company that does not constitute a Change in Control where either (i) a Comparable Position is offered with, or (ii) the Employee accepts any position (regardless of whether it is a Comparable Position) with, a successor company, whether affiliated or unaffiliated with the Employing Company, including an outside contractor, and whether or not the successor company participates in the Plan;

2.3.7Violation of a policy or procedure of the Company, insubordination, unwillingness to perform the duties of a position, or other misconduct;

2.3.8Retirement, including the acceptance of any Company sponsored retirement incentive; provided, however, that in the event an Employee is otherwise eligible for a severance pay benefit in accordance with Section 2.1 above and also eligible for Retirement, the Employee shall be eligible to receive benefits under the Plan in accordance with Article Three below;

2.3.9Death; or

2.3.10Disability.

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ARTICLE THREE
AMOUNT OF BENEFITS

3.1Severance Benefits. The formula for determining an Employee’s severance benefit payment shall be calculated by first adding together: (i) the Employee’s annual Base Salary in effect immediately prior to the date of Termination of Employment (or if the Employee undergoes a Termination of Employment pursuant to Section 1.11(a), the Employee’s annual Base Salary that was in effect immediately before such reduction in Base Salary); and (ii) the Employee’s Bonus. The sum of subsections (i) and (ii) above shall then be divided by fifty-two (52) to calculate the weekly severance benefit. The amount of the total severance benefit to which an Employee may be entitled is set out in Schedule A to the Plan.

3.2Special Retirement Program Contributions. An Employee eligible for benefits under the Plan due to a Defined Termination shall, in addition to the benefits provided above in Section 3.1, receive the value of Company contributions that would have been made to the Ameriprise Financial Retirement Plan, Ameriprise Financial 401(k) Plan, Ameriprise Financial Supplemental Retirement Plan or other similar plans adopted by the Company, for the period during which the Employee is receiving weekly severance payments under this Plan. Effective on the date of the Defined Termination, this amount will be credited to the Employee’s book reserve account in the Ameriprise Financial Supplemental Retirement Plan, consistent with the terms of such plan, and paid in accordance with the terms of such plan.

3.3Limitations on Amount of Severance Benefits. Severance benefits payable under the Plan shall be inclusive of and offset by any other severance, redundancy or termination payment made by the Company to an Employee, including, but not limited to, any amounts paid pursuant to federal, state, local or foreign government worker notification (e.g., Worker Adjustment and Retraining Notification Act) or office closing requirements, any amounts owed the Employee pursuant to a contract with the Company (unless the contract specifically provides otherwise) and amounts paid to an Employee placed in a temporary layoff status (often referred to as a furlough) which immediately precedes the commencement of the severance payments.

3.4Pro-Rata Cash Award. In addition to the severance benefit under Section 3.1 above, such Employee shall be entitled to a Pro-Rata Annual Cash Award.

3.5Reemployment. In the event an Employee is reemployed by the Company or an Affiliated Company within the period covered by the schedule of severance benefits in Section 3.1 above, the severance benefits, if any, that are in excess of the number of weeks between the Termination of Employment and the rehire date shall be repaid by the Employee or withheld by the Company, as the case may be;

9

and any benefits withheld or repaid shall be forfeited by the terminating Employee.

3.6Withholding Tax. The Company shall deduct from the amount of any payment pursuant to the Plan, any amount required to be withheld by the Company by reason of any law or regulation, for the payment of taxes or otherwise to any federal, state, local or foreign government. In determining the amount of any applicable tax, the Company shall be entitled to rely on the number of personal exemptions on the official form(s) filed by the Employee with the Company for purposes of income tax withholding on regular wages.

3.7Requirement of Signed Agreement. Receipt of severance benefits under the Plan is conditioned upon the Employee signing and not revoking an agreement with the Company in a form satisfactory to the Company and in accordance with the requirements of applicable law (the “Agreement”). The Agreement must include a release of claims and may include whatever other terms the Company deems appropriate, including restrictive covenants. If the terms of the Agreement are found to be legally unenforceable, the Employee must return any severance benefits paid pursuant to Sections 3.1 and 3.2 of the Plan plus the value of any long term incentive awards which vested during the Separation Period; provided, however, that in the event the Employee has a Defined Termination, such restrictive covenants shall: (a) be reasonable under the applicable facts and circumstances; (b) include the following (i) non-solicitation of customers and employees; (ii) confidentiality of business data; (iii) full release of claims; and (iv) non-denigration of the Company and its Affiliated Companies, and their officers, directors and agents and (c) not include any non-competition limitations. Notwithstanding anything herein to the contrary, the Company shall, for a period of two (2) years and one (1) day following a Change in Control, be prohibited from entering into any agreement with an Employee, which contains a more expansive Competitor List (as provided in Paragraph 2 of the Consent to the Application of Forfeiture and Detrimental Conduct Provisions to Long-Term Incentive Awards relating to awards issued under the Ameriprise Financial 2005 Incentive Compensation Plan) than that which was in effect for such Employee immediately prior to the date of such Change in Control. If an Employee has already signed an Agreement as required by this Section 3.7 prior to the date of a Change in Control, the Employee is not eligible to receive any benefits that would otherwise be triggered by a Change in Control.

3.8Excise Tax.

(a)           This Section 3.8 shall apply in the event of a Change in Control, as defined in Section 1.6 hereof.

(b)           In the event that any payment or benefit received or to be received by an Employee from the Company or any Affiliated Company in connection with a Change in Control or such Employee’s Termination of Employment (such payments and benefits, hereinafter referred to collectively as the “Payments”), is

10

or will be subject to the excise tax (the “Excise Tax”) imposed under Section 4999 of the Code, then the Payments shall be reduced to the extent necessary so no portion of the Payments is subject to the Excise Tax, but only if the net amount of all Payments, after reduction (including subtraction of the net amount of federal, state, and local income and employment taxes on the reduced Payments) is greater than or equal to the net amount of the original Payments before reduction (but after subtracting the net amount of federal, state, local income and employment taxes on such Payments, as well as the amount of Excise Tax to which the Employee would be subject on the amount of the unreduced Payments). For purposes of making the reduction of amounts payable under this Section, such amounts will be reduced in compliance with the requirements of Section 409A and in the following order: (1) any cash compensation under Section 3.1; (2) any Special Retirement Program Contributions under Section 3.2; and (3) any health or welfare benefits under Section 4.1.4.  Reductions of such amounts will take place in the chronological order with respect to which such amounts would be paid from the date of the Employee’s Termination of Employment.

(c)           For purposes of determining whether the Payments will be subject to the Excise Tax and the amount of such Excise Tax: (i) all payments and benefits received or to be received by an Employee in connection with such Change in Control or such Employee’s Termination of Employment (whether pursuant to the terms of the Plan or any other plan, arrangement or agreement with the Company, any Affiliated Company or any Person (as such term is defined in Section 1.19) whose actions result in such Change in Control of the Company shall be treated as “parachute payments” (within the meaning of Section 280G(b)(2) of the Code) unless, in the opinion of the accounting firm which was, immediately prior to the Change in Control, the Company’s independent auditor, or if that firm refuses to serve, by another qualified firm, whether or not serving as independent auditors, designated by the Committee (the “Auditor”), such payments or benefits (in whole or in part) do not constitute parachute payments, including by reason of Section 280G(b)(4)(A) of the Code; (ii) no portion of the Payments the receipt or enjoyment of which the Employee shall have waived at such time and in such manner as not to constitute a “payment” within the meaning of Section 280G(b) of the Code shall be taken into account; (iii) all “excess parachute payments” within the meaning of Section 280G(b)(l) of the Code shall be treated as subject to the Excise Tax unless, in the opinion of the Auditor, such excess parachute payments (in whole or in part) represent reasonable compensation for services actually rendered (within the meaning of Section 280G(b)(4)(B) of the Code) in excess of the Base Amount (within the meaning of Section 280G(b)(3) of the Code) allocable to such reasonable compensation, or are otherwise not subject to the Excise Tax; and (iv) the value of any noncash benefits or any deferred payment or benefit shall be determined by the Auditor in accordance with the principles of Sections 280G(d)(3) and (4) of the Code and regulations or other guidance thereunder.  The Auditor will be paid reasonable compensation by the Company for its services.

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(d)           For purposes of determining whether any Payments shall be reduced, the Employee shall be deemed to pay federal income tax at the highest marginal rate of federal income taxation (and state and local income taxes at the highest marginal rate of taxation in the state and locality of such Employee’s residence, net of the maximum reduction in federal income taxes which could be obtained from deduction of such state and local taxes) in the calendar year in which the Excise Tax is incurred.

(e)           As soon as practicable following a Change in Control, but in no event later than 30 days thereafter, the Company shall provide to each Employee, a written statement setting forth the manner in which the Payments with respect to such Employee were calculated and the basis for such calculations, including, without limitation, any opinions or other advice the Company has received from the Auditor or other advisors or consultants (and any such opinions or advice which are in writing shall be attached to the statement).

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ARTICLE FOUR
METHOD OF PAYMENT

4.1Payment.

4.1.1No severance benefits shall be paid to the Employee during the six-month period following his or her Termination of Employment.

4.1.2The amount the Employee would have received during the six-month period following the Employee’s Termination of Employment had the severance benefits been paid in biweekly installments during such six-month period shall be paid to the Employee in a lump sum on the first payroll date immediately following the first day of the seventh month following the Employee’s Termination of Employment.

4.1.3The balance of the severance benefits to be paid for the remainder of the Separation Period following the expiration of the six-month period shall be paid in biweekly installments, commencing with the first payroll period immediately following the expiration of the six-month period.

4.1.4Notwithstanding anything in the Plan to the contrary, if the Employee undergoes a Termination of Employment within two (2) years following a Change in Control and if the Employee receives lump-sum severance pursuant to the Plan, to the extent permitted under Section 409A, the Employee shall continue to be eligible to receive benefits under the Company’s medical and dental plans for a number of weeks equal to the number of weekly severance benefit payments determined pursuant to Section 3.1 above (including any resolution referred to therein), such benefits to be substantially identical to the benefits provided to other employees who remain in active employment status on substantially the same terms and conditions as apply to such active employees (including without limitation, any requirement that the Employee pay premiums or other similar costs).

4.2Inactive Employment Status. During the Separation Period (where severance benefits are paid in biweekly or other installments) the Employee receiving such payments generally will remain in an inactive employment status until receipt of such payments is completed, at which time such inactive status will be terminated. During the Separation Period, certain other employee benefits may be continued to the extent permitted under Section 409A and the terms of the governing plan documents, payment for which shall be deducted from such severance payments in accordance with the Employee’s previously elected benefit coverage. During the Separation Period, the Company reserves the right to continue other programs such as the Ameriprise Financial 2005 Incentive Compensation Plan and the Perquisite Program in accordance with its policies, which may be changed or terminated from time to time. Nothing in this section shall create a contract to

13

provide such benefits or entitle any person to benefits not provided pursuant to the terms of the relevant plan.

4.3Death. In the event an Employee dies before full receipt of severance benefits payable under the Plan, the remaining severance benefits will be paid to the legal representative of such Employee’s estate in a lump sum within 90 days of the date of the Employee’s death, or such later date as is permissible under Section 409A.

4.4Payment of Pro-Rata Annual Cash Award.  The Pro-Rata Annual Cash Award shall be paid when Annual Cash Awards are generally paid to the Company’s executives for the year that the Termination of Employment occurred, but in no event later than March 15th of the year following the year in which the Annual Cash Award was earned.

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ARTICLE FIVE
ADMINISTRATION OF THE PLAN

5.1Powers of the Company. The Company shall have such powers, authorities and discretion as are necessary or appropriate in order to carry out its duties under the Plan, including, but not limited to, the power:

5.1.1To obtain such information as it shall deem necessary or appropriate in order to carry out its duties under the Plan;

5.1.2To make determinations with respect to the grounds for Termination of Employment of any Employee; and

5.1.3To establish and maintain necessary records.

5.2Company Authority. Nothing contained in the Plan shall be deemed to qualify, limit or alter in any manner the Company’s sole and complete authority and discretion to establish, regulate, determine or modify at any time, the terms and conditions of employment, including, but not limited to, levels of employment, hours of work, the extent of hiring and employment termination, when and where work shall be done, marketing of its products, or any other matter related to the conduct of its business or the manner in which its business is to be maintained or carried on, in the same manner and to the same extent as if the Plan were not in existence.

5.3Committee Duties and Powers. The Committee shall be responsible for the general administration and interpretation of the Plan and the proper execution of its provisions and shall have full discretion to carry out its duties.  The Committee shall be the “Administrator” of the Plan and shall be, in its capacity as Administrator, a “Named Fiduciary,” as such terms are defined or used in ERISA. For the purposes of carrying out its duties as Administrator, the Committee may, in its sole discretion, allocate its responsibilities under the Plan among its members, and may, in its sole discretion, designate persons other than members of the Committee to carry out such of its responsibilities under the Plan as it may deem fit. In addition to the powers of the Committee specified elsewhere in the Plan, the Committee shall have all discretionary powers necessary to discharge its duties under the Plan, including, but not limited to, the following discretionary powers and duties:

5.3.1To interpret or construe the Plan, and resolve ambiguities, inconsistencies and omissions;

5.3.2To make and enforce such rules and regulations and prescribe the use of such forms as it deems necessary or appropriate for the efficient administration of the Plan; and

15

5.3.3To decide all questions on appeal concerning the Plan and the eligibility of any person to receive benefits under the Plan.

5.4Determinations. The determination of the Committee as to any question involving the general administration and interpretation or construction of the Plan (including a determination with respect to the outcome of a claim for benefits) shall be within its sole discretion and shall be final, conclusive and binding on all persons, except as otherwise provided herein or by law.

5.5Claims Procedures.

5.5.1Presentation of Claim.  Within thirty (30) days from the date of an Employee’s Termination of Employment, the Company shall furnish such Employee either an agreement offering severance benefits under the Plan or notice of such Employee’s ineligibility for or denial of severance benefits, either in whole or in part.

Any Employee or the beneficiary of a deceased Employee (such Employee or Employee’s beneficiary being referred to below as a “Claimant”) may deliver to the Committee a written claim for a determination with respect to the amounts payable to such Claimant pursuant to the Plan.  If such a claim relates to the contents of a notice received by the Claimant, the claim must be made within 60 days after such notice was received by the Claimant.  The claim must state with particularity the determination desired by the Claimant.  All other claims must be made within 180 days of the date on which the event that caused the claim to arise occurred.  In the case of a claim for benefits by a Claimant who was not provided with a notice, the 180 day period is measured from the 30th day after Termination of Employment. The claim must state with particularity the determination desired by the Claimant.

5.5.2Notification of Decision.  The Committee shall consider a Claimant’s claim within a reasonable time, and shall notify the Claimant in writing within 90 days after the Committee’s receipt of the claim, unless special circumstances require an extension of time for processing the claim.  The notice shall state:  (a) that the Claimant’s requested determination has been made, and that the claim has been allowed in full; or (b) that the Committee has reached a conclusion contrary, in whole or in part, to the Claimant’s requested determination, and such notice must set forth in a manner calculated to be understood by the Claimant:  (i) the specific reason(s) for the denial of the claim, or any part of it; (ii) specific reference(s) to pertinent provisions of the Plan upon which such denial was based; (iii) a description of any additional material or information necessary for the Claimant to perfect the claim, and an explanation of why such material or information is necessary; and (iv) an explanation of the claim review procedure set forth in Section 5.5.3 and a statement of the

16

Claimant’s right to bring a civil action under Section 502(a) of ERISA if the claim is denied upon review.

If an extension is required, written notice of the extension shall be furnished by the Committee to the Claimant within the initial 90-day period and in no event shall such an extension exceed a period of 90 days from the end of the initial 90-day period. Any extension notice shall indicate the special circumstances requiring the extension and the date on which the Committee expects to render a decision on the claim.

5.5.3Review of a Denied Claim.  Within 60 days after receiving a notice from the Committee that a claim has been denied, in whole or in part, a Claimant (or the Claimant’s duly authorized representative) may file with the Committee a written request for a review of the denial of the claim.  In connection with the review, the Claimant (or the Claimant’s duly authorized representative):  (a) may review pertinent documents; (b) may submit written comments or other documents; and/or (c) may request a hearing, which the Committee, in its sole discretion, may grant.

5.5.4Decision on Review.  The Committee shall render its decision on review promptly, and not later than 60 days after the filing of a written request for review of the denial, unless a hearing is held or other special circumstances require additional time, in which case the Committee’s decision must be rendered within 120 days after such date.  Such decision must be written in a manner calculated to be understood by the Claimant, and it must: (a) state the specific reasons for the decision; (b) provide specific reference(s) to the pertinent Plan provisions upon which the decision was based; (c) inform the Claimant that he or she is entitled, upon request and free of charge, reasonable access to, and copies of, relevant documents and other relevant information, and (d) inform the Claimant of his or her right to bring suit under Section 502(a) of ERISA now that his or her claim has been denied on appeal.  All decisions on review shall be final and binding with respect to all concerned parties.

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ARTICLE SIX
ADOPTING COMPANIES AND PLAN MERGERS

6.1Adopting Companies. Any corporation which succeeds to the business and assets of the Company or any part of its operations, may by appropriate resolution adopt the Plan and shall thereupon succeed to such rights and assume such obligations hereunder as the Company and said corporation shall have agreed upon in writing.

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ARTICLE SEVEN
AMENDMENT AND TERMINATION

7.1Right to Amend or Terminate. The Company reserves the right, by action of the Board of Directors or the Committee, to amend or terminate the Plan in whole or in part at any time and from time to time, and any amendment or effective date of termination may be given retroactive effect; provided, however, that the Plan may not be amended or terminated if such amendment or termination would cause the Plan to fail to comply with, or cause an Employee to be subject to tax under, the provisions of Section 409A.  The foregoing sentence to the contrary notwithstanding, for a period of two (2) years and one (1) day after the date of an occurrence of a Change in Control, neither the Board of Directors nor the Committee may terminate the Plan or amend the Plan in a manner that is detrimental to the rights of any Employee receiving severance benefits under the Plan without his or her written consent.

7.2Limitation on Benefits. In the event the Company terminates the Plan as provided in this Article Seven, no Employee shall be entitled to receive benefits hereunder for employment either before or after such action.

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ARTICLE EIGHT
FINANCIAL PROVISIONS

8.1Funding. All severance benefits payable under the Plan shall be payable and provided for solely from the general assets of the Company in accordance with the Plan, at the time such severance benefits are payable, unless otherwise determined by the Company. The Company shall not establish any special or separate fund or make any other segregation of assets to assure the payment of any severance benefits under the Plan.

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ARTICLE NINE
LIABILITY AND INDEMNIFICATION

9.1Standard of Conduct. To the extent permitted by ERISA and other applicable law, no member of the Committee (which term, as used in this Article Nine, shall include any employee of the Company designated to carry out any responsibility of the Committee pursuant to Section 5.3 above) shall be liable for anything done or omitted to be done by him in connection with the Plan, unless the member failed to act (i) in good faith and (ii) for a purpose which such member reasonably believed to be in accordance with the intent of the Plan. The Company hereby indemnifies each person made, or threatened to be made, a party to an action or proceeding, whether civil or criminal, or against whom any claim or demand is made, by reason of the fact that he, his testator or intestate, was or is a member of the Committee, against judgments, fines, amounts paid in settlement and reasonable expenses (including attorney’s fees) actually and necessarily incurred as a result of such action or proceeding, or any appeal therein, or as a result of such claim or demand, if such member of the Committee acted in good faith for a purpose which he reasonably believed to be in accordance with the intent of the Plan and, in criminal actions or proceedings, in addition, had no reasonable cause to believe that his conduct was unlawful. Any reimbursements shall be paid to a member of the Committee in accordance with the Company’s Policy Regarding Section 409A Compliance.

9.2Presumption of Good Faith. The termination of any such civil or criminal action or proceeding or the disposition of any such claim or demand, by judgment, settlement, conviction or upon a plea of nolo contendere, or its equivalent, shall not in itself create a presumption that any such member of the Committee did not act (i) in good faith and (ii) for a purpose which he reasonably believed to be in accordance with the intent of the Plan.

9.3Successful Defense. A person who has been wholly successful, on the merits or otherwise, in the defense of a civil or criminal action or proceeding or claim or demand of the character described in Section 9.1 above shall be entitled to indemnification as authorized in such Section 9.1.

9.4Unsuccessful Defense. Except as provided in Section 9.3 above, any indemnification under Sections 9.1 and 9.2 above, unless ordered by a court of competent jurisdiction, shall be made by the Company only if authorized in the specific case:

9.4.1By the Board of Directors acting by a quorum consisting of directors who are not parties to such action, proceeding, claim or demand, upon a finding that the member of the Committee has met the standard of conduct set forth in Section 9.1 above; or

21

9.4.2If a quorum under Section 9.4.1 above is not obtainable with due diligence:

(a)           By the Board of Directors upon the opinion in writing of independent legal counsel (who may be counsel to the Company) that indemnification is proper in the circumstances because the standard of conduct set forth in Section 9.1 above has been met by such member of the Committee; or

(b)           By the shareholders of the Company upon a finding that the member of the Committee has met the standard of conduct set forth in such Section 9.1 above.

9.5Advance Payments. Expenses incurred in defending a civil or criminal action or proceeding or claim or demand may be paid by the Company in advance of the final disposition of such action or proceeding, claim or demand, if authorized in the manner specified in Section 9.4 above, except that, in view of the obligation of repayment set forth in Section 9.6 below, there need be no finding or opinion that the required standard of conduct has been met.

9.6Repayment of Advance Payments. All expenses incurred in defending a civil or criminal action or proceeding, claim or demand, which are advanced by the Company under Section 9.5 above shall be repaid upon demand by the Company in case the person receiving such advance is ultimately found, under the procedures set forth in this Article Nine, not to be entitled to indemnification or, where indemnification is granted, to the extent the expenses so advanced by the Company exceed the indemnification to which he is entitled.

9.7Right to Indemnification. Notwithstanding the failure of the Company to provide indemnification in the manner set forth in Section 9.4 or 9.5 above, and despite any contrary resolution of the Board of Directors or of the shareholders in the specific case, if the member of the Committee has met the standard of conduct set forth in Section 9.1 above, the person made or threatened to be made a party to the action or proceeding or against whom the claim or demand has been made, shall have the legal right to indemnification from the Company as a matter of contract by virtue of this Plan, it being the intention that each such person shall have the right to enforce such right of indemnification against the Company in any court of competent jurisdiction.

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ARTICLE TEN
MISCELLANEOUS

10.1No Right to Continued Employment. Nothing in the Plan shall be construed as giving any Employee the right to be retained in the employ of the Company or any right to any payment whatsoever, except to the extent of the severance benefits provided for by the Plan. The Company expressly reserves the right to dismiss any Employee at any time and for any reason without regard to the impact of the dismissal on the Employee’s rights under the Plan.

10.2Construction. The Plan shall be governed by and construed in accordance with the substantive laws but not the choice of law rules of the state of New York, except to the extent that such laws have been superseded by federal law.

10.3Expenses of the Plan. The expenses of establishment and administration of the Plan shall be paid by the Company.

10.4Section 409A. It is intended that the benefits under the Plan (including all amendments thereto) are either exempt from, or compliant with, the requirements of Section 409A, so as to prevent the inclusion in gross income of any benefits accrued hereunder in a taxable year prior to the taxable year or years in which such amount would otherwise be actually distributed or made available to the Employees. The Plan shall be administered and interpreted to the extent possible in a manner consistent with that intent and the Company’s Policy Regarding Section 409A Compliance. Notwithstanding the terms of Article Four, to the extent that a distribution to an Employee is not exempt from Section 409A and is required to be delayed by six months pursuant to Section 409A, such distribution shall be made no earlier than the first day of the seventh month following the Employee’s Termination of Employment. The amount of such payment will equal the sum of the payments that would have been paid to the Employee during the six-month period immediately following the Employee’s Termination of Employment had the payment commenced as of such date. If the Employee is receiving installment payments, the remaining severance benefits shall be paid according to the installment schedule.

*              *              *              *              *

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EX-12

Exhibit 12

Computation in Support of Ratio of Earnings to Fixed Charges

Ameriprise Financial, Inc.

	Years Ended December 31,
	2011			2010		2009		2008			2007
	(dollars in millions)
Earnings:
Pretax income (loss) attributable to Ameriprise Financial, Inc.	$	1,491		$	1,455	$	904	$	(379	)	$	1,023
Interest and debt expense(1)	320			300		137		114			133
Interest portion of rental expense(2)	32			34		38		28			31
Amortization of capitalized interest	4			4		3		3			1
Undistributed loss from equity investees	41			15		25		26			1
Minority interest in pretax losses	(129		)	—		—		(54		)	(8		)
Minority interest in pretax income of subsidiaries that have incurred fixed charges	23			163		15		—			—
Total earnings (losses) before banking and deposit interest expense and interest credited to fixed accounts(a)	1,782			1,971		1,122		(262		)	1,181
Banking and deposit interest expense and interest credited to fixed accounts	904			986		1,069		977			1,104
Total earnings(c)	$	2,686		$	2,957	$	2,191	$	715		$	2,285
Fixed charges:
Interest and debt expense(1)	$	320		$	300	$	137	$	114		$	133
Estimated amount of interest in rental expense(2)	32			34		38		28			31
Capitalized interest	5			3		3		8			5
Total fixed charges before banking and deposit interest and interest credited to fixed accounts(b)	357			337		178		150			169
Banking and deposit interest expense and interest credited to fixed accounts	904			986		1,069		977			1,104
Total fixed charges(d)	$	1,261		$	1,323	$	1,247	$	1,127		$	1,273
Ratio of earnings to fixed charges before banking and deposit interest expense and interest credited to fixed accounts(a/b)	5.0			5.8		6.3		NM		(3)	7.0
Ratio of earnings to fixed charges(c/d)	2.1			2.2		1.8		NM		(3)	1.8

NM: Not Meaningful.

(1)	Interest on non-recourse debt of consolidated investment entities is included in interest and debt expense provided in the table above.
(2)	The estimated amount of interest in rental expense represents one-third of rental expense relating to operating leases.
(3)	Earnings were insufficient to cover fixed charges for the year ended December 31, 2008 by $412 million primarily due to negative market impacts on Results of Operations, including $762 million in pretax impairments on Available-for-Sale securities.

EX-13

Exhibit 13

Performance Graph

The following graph compares the cumulative five-year total return for shareholders of Ameriprise Financial, Inc. common stock with the cumulative total returns of the S&P 500 Index and the S&P Financials Index. The graph tracks the performance of a $100 investment in our common stock and in each index (with the reinvestment of all dividends) from Dec. 31, 2006 to Dec. 31, 2011.

EX-21

Exhibit 21

Subsidiary Name	Jurisdiction of Incorporation
Ameriprise Advisor Capital, LLC	DE
Ameriprise Bank, FSB	NY
Ameriprise Capital Trust I	DE
Ameriprise Capital Trust II	DE
Ameriprise Capital Trust III	DE
Ameriprise Capital Trust IV	DE
Ameriprise Captive Insurance Company	VT
Ameriprise Certificate Company	DE
Investors Syndicate Development Corporation	NV
Ameriprise Holdings, Inc.	DE
Ameriprise India Private Limited	India
Ameriprise India Insurance Brokers Services Private Limited	India
Ameriprise Trust Company	MN
AMPF Holding Corporation	MI
American Enterprise Investment Services Inc.	MN
Ameriprise Financial Services, Inc.	DE
AMPF Property Corporation	MI
AMPF Realty Corporation	MI
Columbia Management Investment Advisers, LLC	MN
Advisory Capital Strategies Group Inc.	MN
Columbia Wanger Asset Management, LLC	DE
GA Legacy, LLC	DE
J.& W. Seligman & Co. Incorporated	DE
Columbia Management Investment Distributors, Inc.	NY
Columbia Research Partners LLC	DE
Seligman Focus Partners LLC	DE
Seligman Global Technology Partners LLC	DE
Seligman Health Partners LLC	DE
Seligman Health Plus Partners LLC	DE
Seligman Partners LLC	DE
RiverSource CDO Seed Investment, LLC	MN
WAM Acquisition GP, Inc.	DE
Columbia Management Investment Services Corp.	MN
IDS Management Corporation	MN
IDS Futures Corporation	MN
IDS Property Casualty Insurance Company	WI
Ameriprise Auto & Home Insurance Agency, Inc.	WI
Ameriprise Insurance Company	WI
RiverSource Distributors, Inc.	DE
RiverSource Life Insurance Company	MN
RiverSource Life Insurance Co. of New York	NY
RiverSource NY REO, LLC	NY
RiverSource REO 1, LLC	MN
RiverSource Tax Advantaged Investments, Inc.	DE
AEXP Affordable Housing Porfolio LLC	DE
Threadneedle Asset Management Holdings Sàrl	Luxembourg

TAM Investment Ltd.	UK
Threadneedle Asset Management (Australia) Pty Ltd.	Australia
Threadneedle Asset Management UK Ltd.	UK
TAM UK Holdings Ltd.	UK
Threadneedle Asset Management Holdings Ltd.	UK
Cofunds Holdings Ltd. (20.1%)	UK
Threadneedle Asset Management (Nominees) Ltd.	UK
ADT Nominees Ltd.	UK
Convivo Asset Management Ltd.	UK
Sackville TIPP Property (GP) Ltd.	UK
Threadneedle Investment Advisors Ltd.	UK
Threadneedle Portfolio Managers Ltd.	UK
Threadneedle Asset Management Finance Ltd.	UK
TMS Investment Ltd. (44.0%)	Jersey
Threadneedle Holdings Ltd.	UK
Threadneedle Asset Management Ltd.	UK
Threadneedle Investment Services Ltd.	UK
Threadneedle International Fund Management Ltd.	UK
Threadneedle International Ltd.	UK
Threadneedle Investment Services GmbH	Germany
Threadneedle Investments (Channel Islands) Ltd.	Jersey
Threadneedle Investments Ltd.	UK
Threadneedle Management Services Ltd.	UK
Threadneedle Capital Management Ltd.	UK
Threadneedle Pension Trustees Ltd.	UK
Threadneedle Securities Ltd.	UK
Threadneedle Navigator ISA Manager Ltd.	UK
Threadneedle Pensions Ltd.	UK
Albert Road (Bristol) Management Company Ltd. (33.3%)	UK
Aztec West Management Ltd. (0.2%)	UK
Brunel Road Management Company Ltd. (32.0%)	UK
Centennial Park Management Company Ltd. (13.0%)	UK
Crockhamwell Road Management Ltd. (50.0%)	UK
Crossways Management Company Ltd. (0.8%)	UK
ISIS Ashford Property Management Ltd. (75.0%)	UK
Sackville (TPEN)	UK
Severnside Distribution Park (Bristol) Management Ltd. (9.1%)	UK
The Capstan Centre Management Company Ltd. (2.6%)	UK
The Shannon Commercial Centre (Management Co.) Ltd. (20.0%)	UK
Threadneedle Portfolio Services Ltd.	UK
Threadneedle Portfolio Services AG	Switzerland
Threadneedle Property Investments Ltd.	UK
Cornbrash Park Management Company Ltd.	UK
Highcross (Slough) Management Ltd.	UK
Sackville LCW (GP) Ltd. (33.3%)	UK
Sackville LCW Sub LP1 (GP) Ltd.	UK
Sackville LCW Nominee 1 Ltd.	UK
Sackville LCW Nominee 2 Ltd.	UK
Sackville Property (GP) Ltd.	UK
Sackville Property (GP) Nom. 1 Ltd.	UK
Sackville Property (GP) Nom. 2 Ltd.	UK

Sackville SPF IV (GP) No. 1 Ltd	UK
Sackville SPF IV Property Nom. (1) Ltd.	UK
Sackville SPF IV Property Nom. (2) Ltd.	UK
Sackville SPF IV (GP) No. 2 Ltd	UK
Sackville SPF IV Property Nom. (3) Ltd.	UK
Sackville SPF IV Property Nom. (4) Ltd.	UK
Sackville SPF IV (GP) No. 3 Ltd	UK
Sackville SPF IV Property Nom. (5) Ltd.	UK
Sackville SPF IV Property Nom. (6) Ltd.	UK
Sackville SPF IV Property (GP) Ltd.	UK
Sackville Tandem Property (GP) Ltd.	UK
Sackville Tandem Property Nominee Ltd.	UK
Sackville TPEN Property (GP) Ltd.	UK
Sackville TPEN Property Nominee Ltd.	UK
Sackville TPEN Property Nominee (2) Ltd.	UK
Sackville TSP Property (GP) Ltd.	UK
Sackville TSP Property Nominee Ltd.	UK
Threadneedle Unit Trust Manager Ltd.	UK
Threadneedle International Investments GmbH	Switzerland
Threadneedle Investments Singapore (Pte.) Ltd.	Singapore
Threadneedle Management Luxembourg S.A.	Luxembourg
Threadneedle Portfolio Services Hong Kong Ltd.	Hong Kong

EX-23.1

Exhibit 23.1

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We hereby consent to the incorporation by reference in the following Registration Statements:

·Registration Statement (Form S-3 No. 333-128834) of Ameriprise Financial, Inc.,

·Registration Statement (Form S-8 No. 333-128789) pertaining to the Ameriprise Financial 2005 Incentive Compensation Plan of Ameriprise Financial, Inc.,

·Registration Statements (Form S-8 No. 333-128790 and No. 333-156074) pertaining to the Ameriprise Financial 401(k) Plan of Ameriprise Financial, Inc.,

·Registration Statements (Form S-8 No. 333-128791 and No. 333-150677) pertaining to the Ameriprise Financial Deferred Equity Program for Independent Financial Advisors of Ameriprise Financial, Inc.,

·Registration Statement (Form S-8 No. 333-156075) pertaining to the Ameriprise Financial 2008 Employment Incentive Equity Award Plan,

·Registration Statement (Form S-3ASR No. 333-158972) of Ameriprise Financial, Inc. and Ameriprise Capital Trusts I through IV, and

·Registration Statement (Form S-8 No. 333-159025) pertaining to the Ameriprise Advisor Group Deferred Compensation Plan;

of our report dated February 24, 2012 relating to the consolidated financial statements and the financial statement schedule of Ameriprise Financial, Inc. and the effectiveness of internal control over financial reporting, which appears in this Form 10-K for the year ended December 31, 2011.

Minneapolis, MN

February 24, 2012

EX-23.2

Exhibit 23.2

Consent of Independent Registered Public Accounting Firm

We consent to the incorporation by reference in the following Registration Statements:

(1) Registration Statement (Form S-3 No. 333-128834) of Ameriprise Financial, Inc.,

(2) Registration Statement (Form S-8 No. 333-128789) pertaining to the Ameriprise Financial 2005 Incentive Compensation Plan of Ameriprise Financial, Inc.,

(3) Registration Statements (Form S-8 No. 333-128790 and No. 333-156074) pertaining to the Ameriprise Financial 401(k) Plan of Ameriprise Financial, Inc.,

(4) Registration Statements (Form S-8 No. 333-128791 and No. 333-150677) pertaining to the Ameriprise Financial Deferred Equity Program for Independent Financial Advisors of Ameriprise Financial, Inc.,

(5) Registration Statement (Form S-8 No. 333-156075) pertaining to the Ameriprise Financial 2008 Employment Incentive Equity Award Plan,

(6) Registration Statement (Form S-3ASR No. 333-158972) of Ameriprise Financial, Inc. and Ameriprise Capital Trusts I through IV, and

(7) Registration Statement (Form S-8 No. 333-159025) pertaining to the Ameriprise Advisor Group Deferred Compensation Plan;

of our reports dated February 28, 2011 (except for Note 24 (Discontinued Operations) to the consolidated financial statements and Note 2 (Discontinued Operations) to the financial statement schedule), as to which the date is February 24, 2012), with respect to the consolidated financial statements and the financial statement schedule of Ameriprise Financial, Inc. included in this Annual Report (Form 10-K) of Ameriprise Financial, Inc. for the year ended December 31, 2011.

Minneapolis, Minnesota

February 24, 2012

EX-31.1

Exhibit 31.1

CERTIFICATION

I, James M. Cracchiolo, certify that:

1.I have reviewed this Annual Report on Form 10-K of Ameriprise Financial, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f))for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: February 24, 2012
	/s/ James M. Cracchiolo
	James M. Cracchiolo
	Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Walter S. Berman, certify that:

1.I have reviewed this Annual Report on Form 10-K of Ameriprise Financial, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures(as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f))for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:  February 24, 2012
	/s/ Walter S. Berman
	Walter S. Berman
	Chief Financial Officer

EX-32

Exhibit 32

CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report on Form 10-K of Ameriprise Financial, Inc. (the “Company”) for the year ended December 31, 2011, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), James M. Cracchiolo, as Chief Executive Officer of the Company, and Walter S. Berman as Chief Financial Officer of the Company, each hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ James M. Cracchiolo
Name:	James M. Cracchiolo
Title:	Chief Executive Officer
Date:	February 24, 2012
/s/ Walter S. Berman
Name:	Walter S. Berman
Title:	Chief Financial Officer
Date:	February 24, 2012

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Goodwill and Other Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2011

Goodwill and Other Intangible Assets

Changes in the carrying amount of goodwill reported in operating segments

	Advice & Wealth Management			Asset Management			Annuities		Protection		Consolidated
	(in millions)
Balance at January 1, 2010	$	257		$	739		$	46	$	45	$	1,087
Acquisitions		—			97			—		—		97
Foreign currency translation		—			(11	)		—		—		(11	)
Purchase price adjustments		(2	)		(10	)		—		—		(12	)
Balance at December 31, 2010		255			815			46		45		1,161
Acquisitions		—			6			—		—		6
Foreign currency translation		—			(2	)		—		—		(2	)
Purchase price adjustments		—			(1	)		—		—		(1	)
Balance at December 31, 2011	$	255		$	818		$	46	$	45	$	1,164

Definite-lived intangible assets

	December 31,
	2011							2010
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
	(in millions)
Customer relationships	$	145	$	(69	)	$	76	$	150	$	(38	)	$	112
Contracts		233		(122	)		111		233		(103	)		130
Other		150		(55	)		95		143		(60	)		83
Total	$	528	$	(246	)	$	282	$	526	$	(201	)	$	325

Estimated intangible amortization expenses

	(in millions)
2012	$	46
2013		45
2014		40
2015		31
2016		27

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Segment Information (Tables)

12 Months Ended

Dec. 31, 2011

Segment Information

Schedule of segment reporting information

	December 31,
	2011		2010
	(in millions)
Advice & Wealth Management	$	12,293	$	11,241
Asset Management		6,863		7,854
Annuities		87,266		84,836
Protection		18,915		18,571
Corporate & Other		8,649		8,539
Assets held for sale		—		173
Total assets	$	133,986	$	131,214

The following is a summary of segment results:

	Year Ended December 31, 2011
	Advice & Wealth Management		Asset Management		Annuities		Protection		Corporate & Other			Eliminations			Consolidated
	(in millions)
Revenue from external customers	$	2,825	$	2,811	$	2,379	$	2,035	$	189		$	—		$	10,239
Intersegment revenue		931		92		252		38		2			(1,315	)		—
Total revenues		3,756		2,903		2,631		2,073		191			(1,315	)		10,239
Banking and deposit interest expense		48		3		—		1		(1	)		(4	)		47
Net revenues		3,708		2,900		2,631		2,072		192			(1,311	)		10,192
Depreciation and amortization expense		86		83		481		208		29			—			887
All other expenses		3,221		2,381		1,629		1,494		506			(1,311	)		7,920
Total expenses		3,307		2,464		2,110		1,702		535			(1,311	)		8,807
Income (loss) from continuing operations before income tax provision	$	401	$	436	$	521	$	370	$	(343	)	$	—		$	1,385
Income tax provision																355
Income from continuing operations																1,030
Loss from discontinued operations, net of tax																(60	)
Net income																970
Less: Net loss attributable to noncontrolling interests																(106	)
Net income attributable to Ameriprise Financial															$	1,076

	Year Ended December 31, 2010
	Advice & Wealth Management		Asset Management		Annuities			Protection		Corporate & Other			Eliminations			Consolidated
	(in millions)
Revenue from external customers	$	2,526	$	2,294	$	2,324		$	2,013	$	425		$	—		$	9,582
Intersegment revenue		884		75		176			35		1			(1,171	)		—
Total revenues		3,410		2,369		2,500			2,048		426			(1,171	)		9,582
Banking and deposit interest expense		67		1		—			1		3			(2	)		70
Net revenues		3,343		2,368		2,500			2,047		423			(1,169	)		9,512
Depreciation and amortization expense		88		105		(75	)		189		23			—			330
All other expenses		2,939		1,945		1,927			1,455		451			(1,169	)		7,548
Total expenses		3,027		2,050		1,852			1,644		474			(1,169	)		7,878
Income (loss) from continuing operations before income tax provision	$	316	$	318	$	648		$	403	$	(51	)	$	—		$	1,634
Income tax provision																	350
Income from continuing operations																	1,284
Loss from discontinued operations, net of tax																	(24	)
Net income																	1,260
Less: Net income attributable to noncontrolling interests																	163
Net income attributable to Ameriprise Financial																$	1,097

	Year Ended December 31, 2009
	Advice & Wealth Management			Asset Management		Annuities		Protection		Corporate & Other			Eliminations			Consolidated
	(in millions)
Revenue from external customers	$	2,103		$	1,304	$	2,165	$	1,935	$	31		$	—		$	7,538
Intersegment revenue		834			44		100		30		2			(1,010	)		—
Total revenues		2,937			1,348		2,265		1,965		33			(1,010	)		7,538
Banking and deposit interest expense		133			2		—		1		7			(2	)		141
Net revenues		2,804			1,346		2,265		1,964		26			(1,008	)		7,397
Depreciation and amortization expense		100			83		54		167		31			—			435
All other expenses		2,737			1,203		1,563		1,300		247			(1,008	)		6,042
Total expenses		2,837			1,286		1,617		1,467		278			(1,008	)		6,477
Income (loss) from continuing operations before income tax provision	$	(33	)	$	60	$	648	$	497	$	(252	)	$	—		$	920
Income tax provision																	184
Income from continuing operations																	736
Income from discontinued operations, net of tax																	1
Net income																	737
Less: Net income attributable to noncontrolling interests																	15
Net income attributable to Ameriprise Financial																$	722

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Shareholders' Equity (Tables)

12 Months Ended

Dec. 31, 2011

Shareholders' Equity

Components of accumulated other comprehensive income (loss), net of tax

	December 31,
	2011			2010
	(in millions)
Net unrealized securities gains	$	770		$	615
Net unrealized derivatives gains (losses)		(11	)		18
Defined benefit plans		(75	)		(24	)
Foreign currency translation		(46	)		(44	)
Total	$	638		$	565

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Reinsurance (Details) (USD $)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011 agreement	Dec. 31, 2010	Dec. 31, 2009
Reinsurance
Reinsurance percentage of death benefit liability		90.00%
Maximum percentage of death benefit liability not reinsured by the company		10.00%
Maximum amount of life insurance risk retained by the entity on a single life		$ 1,500,000
Maximum amount of life insurance risk retained by the entity on any flexible premium survivorship life policy		1,500,000
Percentage of reinsurance for long-term care policies retained by the company		50.00%
Percentage of reinsurance for long term care policies ceded to subsidiaries of Genworth Financial, Inc.		50.00%
Maximum risk per life on disability income policies sold retained by entity per month		5,000
Amount of traditional life and universal life insurance in force aggregated		191,200,000,000	192,000,000,000
Amount life insurance reinsured at the year end		136,200,000,000	134,000,000,000
Number of types of reinsurance agreements associated with auto and home insurance		3
Maximum recovery per loss		5,000,000
Amount of auto and home insurance risk retained by the entity per loss		750,000
Catastrophe Reinsurance, Amount of auto and home insurance risk retained by the entity per event	20,000,000	10,000,000
Maximum recovery per event catastrophe insurance	110,000,000	90,000,000
Percentage of personal umbrella loss ceded	90.00%
Maximum personal umbrella recovery per loss		5,000,000
Effect of reinsurance on premiums
Direct premiums		1,421,000,000	1,382,000,000	1,317,000,000
Reinsurance ceded		(201,000,000)	(203,000,000)	(219,000,000)
Net premiums		1,220,000,000	1,179,000,000	1,098,000,000
Reinsurance ceded offset other revenues		71,000,000	67,000,000	62,000,000
Reinsurance recovered from reinsurers		201,000,000	172,000,000	174,000,000
Reinsurance recoverables		2,000,000,000	1,900,000,000
Reinsurance recoverable from Genworth		1,500,000,000	1,400,000,000
Future policy benefits and claims for assumed reinsurance arrangements		$ 629,000,000	$ 657,000,000

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Quarterly Financial Data (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2011

Quarterly Financial Data (Unaudited)

Schedule of the quarterly financial data

	2011											2010
	12/31		9/30			6/30			3/31			12/31			9/30			6/30		3/31
	(in millions, except per share data)
Net revenues	$	2,582	$	2,455		$	2,623		$	2,532		$	2,558		$	2,334		$	2,462	$	2,158
Income from continuing operations before income tax provision	$	352	$	247		$	399		$	387		$	368		$	446		$	462	$	358
Income from continuing operations	$	285	$	166		$	285		$	294		$	280		$	314		$	396	$	294
Income (loss) from discontinued operations, net of tax		13		2			(4	)		(71	)		(26	)		(2	)		2		2
Net income		298		168			281			223			254			312			398		296
Less: Net income (loss) attributable to noncontrolling interests		45		(105	)		(28	)		(18	)		(26	)		(32	)		139		82
Net income attributable to Ameriprise Financial	$	253	$	273		$	309		$	241		$	280		$	344		$	259	$	214
Earnings per share attributable to Ameriprise Financial, Inc. common shareholders:
Basic
Income from continuing operations	$	1.04	$	1.14		$	1.28		$	1.24		$	1.21		$	1.36		$	0.98	$	0.81
Income (loss) from discontinued operations		0.06		0.01			(0.02	)		(0.28	)		(0.10	)		(0.01	)		0.01		0.01
Net income	$	1.10	$	1.15		$	1.26		$	0.96		$	1.11		$	1.35		$	0.99	$	0.82
Diluted
Income from continuing operations	$	1.02	$	1.12		$	1.25		$	1.21		$	1.18		$	1.33		$	0.97	$	0.80
Income (loss) from discontinued operations		0.06		0.01			(0.02	)		(0.27	)		(0.10	)		(0.01	)		0.01		0.01
Net income	$	1.08	$	1.13		$	1.23		$	0.94		$	1.08		$	1.32		$	0.98	$	0.81
Weighted average common shares outstanding:
Basic		230.6		238.0			245.5			251.6			252.7			255.3			261.1		260.8
Diluted		234.5		242.0			251.0			257.7			258.9			259.9			265.3		265.0
Cash dividends declared per common share	$	0.51	$	0.23		$	0.23		$	0.18		$	0.18		$	0.18		$	0.18	$	0.17
Common share price:
High	$	50.85	$	59.49		$	63.78		$	65.12		$	58.17		$	48.80		$	49.54	$	45.88
Low	$	36.00	$	38.93		$	54.72		$	57.29		$	47.03		$	34.68		$	35.85	$	36.14

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Variable Annuity and Insurance Guarantees (Details 3) (USD $) In Millions, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Mutual funds
Distribution of separate account balances by asset type for variable annuity contracts providing guaranteed benefits:
Separate account balance	$ 56,569	$ 56,837
Equity
Distribution of separate account balances by asset type for variable annuity contracts providing guaranteed benefits:
Separate account balance	30,738	32,310
Bond
Distribution of separate account balances by asset type for variable annuity contracts providing guaranteed benefits:
Separate account balance	23,862	22,319
Other
Distribution of separate account balances by asset type for variable annuity contracts providing guaranteed benefits:
Separate account balance	$ 1,969	$ 2,208

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Segment Information (Details) (USD $) In Millions, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Summary of assets by segment
Total assets	$ 133,986	$ 131,214
Advice and Wealth Management
Summary of assets by segment
Total assets	12,293	11,241
Asset Management
Summary of assets by segment
Total assets	6,863	7,854
Annuities
Summary of assets by segment
Total assets	87,266	84,836
Protection
Summary of assets by segment
Total assets	18,915	18,571
Corporate and Other
Summary of assets by segment
Total assets	8,649	8,539
Assets held for sale
Summary of assets by segment
Total assets		$ 173

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Derivatives and Hedging Activities (Tables)

12 Months Ended

Dec. 31, 2011

Derivatives and Hedging Activities

Schedule of gross fair value of derivative instruments, including embedded derivatives

		Asset					Liability
		December 31,					December 31,
Derivatives designated as hedging instruments	Balance Sheet Location					Balance Sheet Location
		2011		2010			2011		2010
		(in millions)					(in millions)
Cash flow hedges
Asset-based distribution fees	Other assets	$	—	$	10	Other liabilities	$	—	$	—
Interest on debt	Other assets		—		—	Other liabilities		11		—
Fair value hedges
Fixed rate debt	Other assets		157		61	Other liabilities		—		—
Total qualifying hedges			157		71			11		—
Derivatives not designated as hedging instruments
GMWB and GMAB
Interest rate contracts	Other assets		1,801		366	Other liabilities		1,198		379
Equity contracts	Other assets		1,314		354	Other liabilities		1,031		665
Credit contracts	Other assets		1		4	Other liabilities		—		1
Foreign currency contracts	Other assets		7		—	Other liabilities		10		—
Embedded derivatives(1)	N/A		—		—	Future policy benefits and claims		1,585		421
Total GMWB and GMAB			3,123		724			3,824		1,466
Other derivatives:
Interest rate
Interest rate lock commitments	Other assets		—		1	Other liabilities		—		—
Equity
EIA	Other assets		—		1	Other liabilities		—		—
EIA embedded derivatives	N/A		—		—	Future policy benefits and claims		2		3
IUL	Other assets		1		—	Other liabilities		—		—
IUL embedded derivatives	N/A		—		—	Future policy benefits and claims		3		—
Stock market certificates	Other assets		34		89	Other liabilities		29		75
Stock market certificates embedded derivatives	N/A		—		—	Customer deposits		6		14
Ameriprise Financial
Franchise Advisor Deferred
Compensation Plan	Other assets		2		8	Other liabilities		—		—
Seed money	Other assets		—		—	Other liabilities		1		—
Foreign exchange
Foreign currency	Other assets		—		1	Other liabilities		3		1
Commodity
Seed money	Other assets		2		—	Other liabilities		—		—
Total other			39		100			44		93
Total non-designated hedges			3,162		824			3,868		1,559
Total derivatives		$	3,319	$	895		$	3,879	$	1,559

N/A Not applicable.

(1)

The fair values of GMWB and GMAB embedded derivatives fluctuate based on changes in equity, interest rate and credit markets.

Schedule of payments to make and receive for options

	Premiums Payable		Premiums Receivable
	(in millions)
2012	$	372	$	41
2013		349		26
2014		324		24
2015		296		22
2016		265		15
2017-2026		925		34

Derivative instruments

Summary of unrealized derivatives gains (losses) included in accumulated other comprehensive income (loss) related to cash flow hedges

	2011			2010			2009
	(in millions)
Net unrealized derivatives gains (losses) at January 1	$	18		$	3		$	(8	)
Holding gains (losses)		(10	)		36			19
Reclassification of realized gains		(34	)		(13	)		(2	)
Income tax benefit (provision)		15			(8	)		(6	)
Net unrealized derivatives gains (losses) at December 31	$	(11	)	$	18		$	3

Not Designated as Hedges

Derivative instruments

Schedule of gain (loss) on derivative instruments

		Amount of Gain (Loss) on Derivatives Recognized in Income
Derivatives not designated as hedging instruments	Location of Gain (Loss) on Derivatives Recognized in Income
		2011			2010			2009
		(in millions)
GMWB and GMAB
Interest rate contracts	Benefits, claims, losses and settlement expenses	$	709		$	95		$	(435	)
Equity contracts	Benefits, claims, losses and settlement expenses		326			(370	)		(1,245	)
Credit contracts	Benefits, claims, losses and settlement expenses		(12	)		(44	)		(65	)
Foreign currency contracts	Benefits, claims, losses and settlement expenses		(2	)		—			—
Embedded derivatives(1)	Benefits, claims, losses and settlement expenses		(1,165	)		(121	)		1,533
Total GMWB and GMAB			(144	)		(440	)		(212	)
Other derivatives:
Interest rate
Interest rate lock commitments	Other revenues		(1	)		—			—
Equity
GMDB	Benefits, claims, losses and settlement expenses		—			(4	)		(10	)
EIA	Interest credited to fixed accounts		(1	)		2			4
EIA embedded derivatives	Interest credited to fixed accounts		1			7			7
IUL	Interest credited to fixed accounts		1			—			—
IUL embedded derivatives	Interest credited to fixed accounts		(3	)		—			—
Stock market certificates	Banking and deposit interest expense		1			9			15
Stock market certificates embedded derivatives	Banking and deposit interest expense		—			(10	)		(18	)
Seed money	Net investment income		4			(5	)		(14	)
Ameriprise Financial
Franchise Advisor Deferred
Compensation Plan	Distribution expenses		(4	)		9			—
Foreign exchange
Seed money	General and administrative expense		(1	)		1			—
Foreign currency	Net investment income		(3	)		(1	)		—
Commodity
Seed money	Net investment income		1			—			—
Total other			(5	)		8			(16	)
Total derivatives		$	(149	)	$	(432	)	$	(228	)

(1)

The fair values of GMWB and GMAB embedded derivatives fluctuate based on changes in equity, interest rate and credit markets.

Cash flow hedges

Derivative instruments

Schedule of gain (loss) on derivative instruments

	Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivatives
Derivatives designated as hedging instruments	2011			2010		2009
	(in millions)
Interest on debt	$	(11	)	$	16	$	19
Asset-based distribution fees		1			20		—
Total	$	(10	)	$	36	$	19

	Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income
Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income
	2011			2010			2009
	(in millions)
Other revenues	$	27		$	—		$	—
Interest and debt expense		4			8			8
Distribution fees		9			11			—
Net investment income		(6	)		(6	)		(6	)
Total	$	34		$	13		$	2

Fair value hedges

Derivative instruments

Schedule of gain (loss) on derivative instruments

		Amount of Gain Recognized in Income on Derivatives
Derivatives designated as hedging instruments	Location of Gain Recorded into Income
		2011		2010
		(in millions)
Fixed rate debt	Interest and debt expense	$	41	$	36

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

12 Months Ended

Dec. 31, 2011

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

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,
	2011			2010			2009
	(in millions)
Revenues
Management and financial advice fees	$	—		$	129		$	53
Distribution fees		9			11			—
Net investment income		18			17			22
Other revenues		30			29			68
Total revenues		57			186			143
Banking and deposit interest expense		—			1			1
Total net revenues		57			185			142
Expenses
Distribution expenses	$	5		$	(9	)	$	—
Interest and debt expense		95			107			127
General and administrative expense		223			288			271
Total expenses		323			386			398
Pretax loss before equity in earnings of subsidiaries		(266	)		(201	)		(256	)
Income tax benefit		(102	)		(120	)		(114	)
Loss before equity in earnings of subsidiaries		(164	)		(81	)		(142	)
Equity in earnings of subsidiaries excluding discontinued operations		1,300			1,202			863
Net income from continuing operations		1,136			1,121			721
Income (loss) from discontinued operations, net of tax		(60	)		(24	)		1
Net income	$	1,076		$	1,097		$	722

See Notes to Condensed Financial Information of Registrant.

Schedule I — Condensed Financial Information of Registrant
Condensed Balance Sheets

(Parent Company Only)

	December 31,
	2011			2010
	(in millions, except share data)
Assets
Cash and cash equivalents	$	712		$	1,316
Investments		846			49
Loans to subsidiaries		624			564
Due from subsidiaries		122			109
Receivables		46			50
Land, buildings, equipment, and software, net of accumulated depreciation of $707 and $676, respectively		263			272
Investments in subsidiaries from continuing operations		9,332			9,819
Investments in subsidiaries held for sale		—			94
Other assets		1,357			1,159
Total assets	$	13,302		$	13,432
Liabilities and Shareholders' Equity
Liabilities:
Accounts payable and accrued expenses	$	167		$	178
Due to subsidiaries		261			354
Debt		2,393			2,311
Other liabilities		654			422
Total liabilities		3,475			3,265
Shareholders' Equity:
Common shares ($.01 par value; shares authorized, 1,250,000,000; shares issued, 303,757,574 and 301,366,044, respectively)		3			3
Additional paid-in capital		6,237			6,029
Retained earnings		6,983			6,190
Treasury shares, at cost (81,814,591 and 54,668,152 shares, respectively)		(4,034	)		(2,620	)
Accumulated other comprehensive income, net of tax, including amounts applicable to equity investments in subsidiaries		638			565
Total shareholders' equity		9,827			10,167
Total liabilities and shareholders' equity	$	13,302		$	13,432

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,
	2011			2010			2009
	(in millions)
Cash Flows from Operating Activities
Net income	$	1,076		$	1,097		$	722
Equity in earnings of subsidiaries excluding discontinued operations		(1,300	)		(1,202	)		(863	)
Loss (income) from discontinued operations, net of tax		60			24			(1	)
Dividends received from subsidiaries		1,210			796			204
Other operating activities, primarily with subsidiaries		(231	)		921			(90	)
Net cash provided by (used in) operating activities		815			1,636			(28	)
Cash Flows from Investing Activities
Available-for-Sale securities:
Proceeds from sales		—			31			29
Maturities, sinking fund payments and calls		239			151			86
Purchases		(22	)		(151	)		(139	)
Purchase of other investments		—			(32	)		—
Purchase of land, buildings, equipment and software		(56	)		(32	)		(29	)
Contributions to subsidiaries		(128	)		(73	)		(233	)
Return of capital from subsidiaries		22			116			60
Acquisitions		—			(866	)		—
Proceeds from sale of business		150			—			—
Repayment of loans from subsidiaries		1,252			1,282			1,400
Issuance of loans to subsidiaries		(1,312	)		(1,463	)		(1,599	)
Other, net		2			34			8
Net cash provided by (used in) investing activities		147			(1,003	)		(417	)
Cash Flows from Financing Activities
Repayments of debt	$	(14	)	$	(354	)	$	(550	)
Dividends paid to shareholders		(212	)		(183	)		(164	)
Repurchase of common shares		(1,495	)		(582	)		(11	)
Proceeds from issuance of common stock		—			—			869
Issuances of debt, net of issuance costs		—			744			491
Exercise of stock options		66			113			6
Excess tax benefits from share-based compensation		90			9			12
Other, net		(1	)		(2	)		(4	)
Net cash provided by (used in) financing activities		(1,566	)		(255	)		649
Net increase (decrease) in cash and cash equivalents		(604	)		378			204
Cash and cash equivalents at beginning of year		1,316			938			734
Cash and cash equivalents at end of year	$	712		$	1,316		$	938
Supplemental Disclosures:
Interest paid on debt	$	139		$	140		$	122
Income taxes paid, net		334			2			4
Non-cash capital transactions to (from) subsidiaries		(850	)		14			331
Non-cash financing activity:
Dividends declared but not paid		62			—			—

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 "Registrant," "Ameriprise Financial" or "Parent Company") and, on an equity basis, its subsidiaries and affiliates. The appropriated retained earnings of consolidated investment entities are not included on the Parent Company Only Condensed Financial Statements. The financial statements have been prepared in accordance with U.S. GAAP. Certain prior year amounts have been reclassified to conform to the current year's presentation. 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 certain derivative instruments is reflected on the Parent Company Only Condensed Statements of Operations. For certain of these derivatives, the change in the hedged item is reflected on the subsidiaries' Statements of Operations. The change in fair value of derivatives used to hedge certain asset-based distribution fees is included in distribution fees, while the underlying distribution fee revenue is reflected in equity in earnings of subsidiaries. The change in fair value of derivatives used to economically hedge exposure to equity price risk of Ameriprise Financial, Inc. common stock granted as part of the Ameriprise Financial Franchise Advisor Deferred Compensation Plan is included in distribution expenses, while the underlying distribution expenses are reflected in equity in earnings of subsidiaries.

2. Discontinued Operations

In the fourth quarter of 2011, Ameriprise Financial sold Securities America for $150 million. The results of Securities America have been presented as equity in income (loss) of discontinued operations for all periods presented and the related investment in subsidiary has been classified as held for sale as of December 31, 2010.

3. Debt

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

•

At December 31, 2010, the debt of Ameriprise Financial included $6 million of municipal bond inverse floater certificates that are non-recourse debt obligations supported by a $10 million portfolio of municipal bonds. The certificates were extinguished in 2011, funded through the call of the portfolio of municipal bonds.

•

At December 31, 2011 and 2010, the debt of Ameriprise Financial included $504 million and $397 million of repurchase agreements, respectively, which are accounted for as secured borrowings.

4. Guarantees, Commitments and Contingencies

The Parent Company is the guarantor for operating leases of IDS Property Casualty Insurance Company and certain other 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 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, up to a maximum commitment of $115 million. For the years ended December 31, 2011, 2010 and 2009, ACC did not draw upon the Capital Support Agreement and had met all applicable capital requirements.

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Customer Deposits (Details) (USD $)	12 Months Ended
	Dec. 31, 2011 W	Dec. 31, 2011 Maximum M	Dec. 31, 2011 Minimum M	Dec. 31, 2011 Ameriprise Financial	Dec. 31, 2010 Ameriprise Financial
Fixed rate certificates				$ 2,004,000,000	$ 2,313,000,000
Stock market certificates				731,000,000	790,000,000
Stock market embedded derivative reserve				6,000,000	14,000,000
Other				36,000,000	43,000,000
Less: accrued interest classified in other liabilities				(5,000,000)	(19,000,000)
Total investment certificate reserves				2,772,000,000	3,141,000,000
Brokerage deposits				2,341,000,000	2,116,000,000
Banking deposits				4,737,000,000	3,522,000,000
Total				9,850,000,000	8,779,000,000
Amount of fixed rate investment certificates		$ 1,000,000	$ 1,000
Term of fixed rate investment certificates (in months)		36	6
Holding period of investment certificates (in weeks)	52
Percentage of participation in the market index in the first option	100.00%
Percentage of participation in the market index in the second option	25.00%
Returns on current first term certificates (as a percent)		3.00%	2.00%

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Deferred Acquisition Costs and Deferred Sales Inducement Costs (Details) (Ameriprise Financial, USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Ameriprise Financial
Balances of and changes in DAC
Balance, at the beginning of the period	$ 4,619	$ 4,334	$ 4,383
Capitalization of acquisition costs	492	525	620
Amortization, excluding the impact of valuation assumptions review	(567)	(450)	(336)
Amortization impact of valuation assumptions review	(51)	323	119
Impact of change in net unrealized securities gains	(91)	(113)	(452)
Balance, at the end of the period	4,402	4,619	4,334
Balances of and changes in DSIC, included in other assets
Balance, at the beginning of the period	545	524	518
Capitalization of sales inducement costs	9	35	82
Amortization, excluding the impact of valuation assumptions review	(70)	(49)	(19)
Amortization impact of valuation assumptions review	(11)	52	9
Impact of change in net unrealized securities gains	(9)	(17)	(66)
Balance, at the end of the period	$ 464	$ 545	$ 524

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Derivatives and Hedging Activities (Details 3) (USD $)			12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2011 2012	Dec. 31, 2011 2013	Dec. 31, 2011 2014	Dec. 31, 2011 2015	Dec. 31, 2011 2016	Dec. 31, 2011 2017-2026
Summary of Option Premiums Payable and Receivable
Premiums Payable			$ 372,000,000	$ 349,000,000	$ 324,000,000	$ 296,000,000	$ 265,000,000	$ 925,000,000
Premiums Receivable			41,000,000	26,000,000	24,000,000	22,000,000	15,000,000	34,000,000
Gross notional amount of index options and futures contracts	1,300,000,000	1,500,000,000
Gross notional amount of futures and total return swaps	123,000,000	174,000,000
Gross notional amount of foreign currency forward contracts	26,000,000	21,000,000
Gross notional amount of total return swap to hedge equity price risk	$ 17,000,000	$ 35,000,000

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Summary of Significant Accounting Policies (Details) (USD $)	12 Months Ended
	Dec. 31, 2011 D Y M	Dec. 31, 2010	Dec. 31, 2009
Principles of Consolidation
Minimum percentage of voting interest required to be held to consolidate an entity	50.00%
Maximum percentage of voting interest required to be held to be accounted for, under the cost method	20.00%
Cash and cash equivalents
Cash equivalents maximum maturity period (in days)	90
Financing Receivables
Period of non payment after which a loan is placed on nonaccrual status (in days)	90
Period for charging off revolving unsecured consumer lines, including credit card loans (in days)	180
Period for charging off closed-end consumer loans, other than loans secured by one to four family properties (in days)	120
Restricted and segregated cash and investments
Restricted cash	$ 79,000,000	$ 110,000,000
Amounts segregated under federal and other regulations	1,700,000,000	1,700,000,000
Land, Buildings, Equipment and Software
Amortization periods, low end of the range (in years)	3
Amortization periods, high end of the range (in years)	30
Land, buildings, equipment and software, net of accumulated depreciation	774,000,000	693,000,000
Accumulated depreciation	1,100,000,000	1,100,000,000
Depreciation and amortization expense for the year	143,000,000	160,000,000	176,000,000
Deferred Acquisition Costs
Mean reversion process, period (in years)	5
Income Taxes
Maximum period for recognizing capital losses (in years)	5
Valuation allowance	$ 5,000,000
Sources of Revenue
Rolling performance period for PIA (Performance Incentive Adjustment) (in months)	12
Maximum
Equity Method Investments
Percentage of voting interest required to be held to be accounted for under the equity method	50.00%
Minimum
Equity Method Investments
Percentage of voting interest required to be held to be accounted for under the equity method	20.00%

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SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Details 2) (Parenthetical) (USD $) In Millions, except Share data, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Accumulated depreciation	$ 1,100	$ 1,100
Common shares, par value (in dollars per share)	$ 0.01	$ 0.01
Common shares, shares authorized	1,250,000,000	1,250,000,000
Common shares, shares issued	303,757,574	301,366,044
Treasury shares	81,814,591	54,668,152
Ameriprise Financial, Inc:
Accumulated depreciation	$ 707	$ 676
Common shares, par value (in dollars per share)	$ 0.01	$ 0.01
Common shares, shares authorized	1,250,000,000	1,250,000,000
Common shares, shares issued	303,757,574	301,366,044
Treasury shares	81,814,591	54,668,152

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Variable Annuity and Insurance Guarantees (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2011 provision Y anniversary	Dec. 31, 2010 Y
GMDB
Information related to variable annuity guarantees for which the Company has established additional liabilities
Number of primary GMDB provisions	3
Time period for which the value resets to the account value for the reset GMDB provision	6
Total contract value	$ 61,106	$ 61,290
Contract value in separate accounts	56,320	56,486
Net amount at risk	1,329	841
Weighted average attained age (in years)	63	62
GMDB | Return of premium
Information related to variable annuity guarantees for which the Company has established additional liabilities
Total contract value	40,011	37,714
Contract value in separate accounts	38,275	36,028
Net amount at risk	382	173
Weighted average attained age (in years)	63	62
GMDB | Five/six-year reset
Information related to variable annuity guarantees for which the Company has established additional liabilities
Total contract value	11,631	13,689
Contract value in separate accounts	9,118	11,153
Net amount at risk	350	312
Weighted average attained age (in years)	63	62
GMDB | One-year ratchet
Information related to variable annuity guarantees for which the Company has established additional liabilities
Total contract value	7,233	7,741
Contract value in separate accounts	6,777	7,242
Net amount at risk	479	287
Weighted average attained age (in years)	64	63
GMDB | Five-year ratchet
Information related to variable annuity guarantees for which the Company has established additional liabilities
Total contract value	1,472	1,466
Contract value in separate accounts	1,418	1,414
Net amount at risk	25	8
Weighted average attained age (in years)	61	60
GMDB | Other:
Information related to variable annuity guarantees for which the Company has established additional liabilities
Total contract value	759	680
Contract value in separate accounts	732	649
Net amount at risk	93	61
Weighted average attained age (in years)	68	67
GGU death benefit
Information related to variable annuity guarantees for which the Company has established additional liabilities
Total contract value	920	970
Contract value in separate accounts	868	912
Net amount at risk	78	79
Weighted average attained age (in years)	63	64
GMIB
Information related to variable annuity guarantees for which the Company has established additional liabilities
Total contract value	463	597
Contract value in separate accounts	433	561
Net amount at risk	106	76
Weighted average attained age (in years)	65	64
Variable annuity guaranteed minimum withdrawal benefits ("GMWB")
Information related to variable annuity guarantees for which the Company has established additional liabilities
Total contract value	27,643	24,715
Contract value in separate accounts	27,493	24,576
Net amount at risk	1,099	235
Weighted average attained age (in years)	64	63
Variable annuity guaranteed minimum withdrawal benefits ("GMWB") | GMWB
Information related to variable annuity guarantees for which the Company has established additional liabilities
GMWB asset allocation models available subsequent to withdrawal.	3
GMWB asset allocation models available prior to withdrawal	5
Total contract value	3,887	4,341
Contract value in separate accounts	3,868	4,317
Net amount at risk	236	106
Weighted average attained age (in years)	65	64
Variable annuity guaranteed minimum withdrawal benefits ("GMWB") | GMWB for life
Information related to variable annuity guarantees for which the Company has established additional liabilities
Total contract value	23,756	20,374
Contract value in separate accounts	23,625	20,259
Net amount at risk	863	129
Weighted average attained age (in years)	64	63
Variable annuity guaranteed minimum accumulation benefits ("GMAB")
Information related to variable annuity guarantees for which the Company has established additional liabilities
Maximum age of variable annuity contractholders for the option of obtaining principal-back guarantee (in years)	79
GMAB rider guarantees waiting period (in years)	10
Percentage of highest anniversary value guarantee at end of waiting period	80.00%
Total contract value	3,516	3,540
Contract value in separate accounts	3,509	3,523
Net amount at risk	$ 63	$ 22
Weighted average attained age (in years)	56	56

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Fair Values of Assets and Liabilities (Details 5) (USD $) In Millions, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Financial Assets
Restricted and segregated cash	$ 79	$ 110
Ameriprise Financial
Financial Liabilities
Future policy benefits and claims	31,723	30,208
Investment certificate reserves	2,772	3,141
Separate account liabilities	66,780	68,330
Carrying Value | Ameriprise Financial
Financial Assets
Commercial mortgage loans, net	2,589	2,577
Policy loans	742	733
Receivables	2,444	1,852
Restricted and segregated cash	1,500	1,516
Assets held for sale		18
Other investments and assets	390	331
Financial Liabilities
Future policy benefits and claims	15,064	15,328
Investment certificate reserves	2,766	3,127
Banking and brokerage customer deposits	7,078	5,638
Separate account liabilities	3,950	4,930
Debt and other liabilities	3,180	2,722
Fair Value | Ameriprise Financial
Financial Assets
Commercial mortgage loans, net	2,772	2,671
Policy loans	715	808
Receivables	2,148	1,566
Restricted and segregated cash	1,500	1,516
Assets held for sale		18
Other investments and assets	388	338
Financial Liabilities
Future policy benefits and claims	16,116	15,768
Investment certificate reserves	2,752	3,129
Banking and brokerage customer deposits	7,091	5,642
Separate account liabilities	3,950	4,930
Debt and other liabilities	$ 3,412	$ 2,919

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Debt (Details 2) (USD $)						1 Months Ended			3 Months Ended	1 Months Ended				12 Months Ended			3 Months Ended
	Dec. 31, 2011	Dec. 31, 2011 Ameriprise Financial	Nov. 22, 2011 Ameriprise Financial	Dec. 31, 2010 Ameriprise Financial	Dec. 31, 2011 Consolidated Investment Entities:	Nov. 30, 2005 Unsecured senior notes Ameriprise Financial	Nov. 30, 2010 Senior Notes 2010 Ameriprise Financial	Jul. 31, 2009 Senior Notes 2010 Ameriprise Financial	Jun. 30, 2009 Senior Notes 2010 Ameriprise Financial	Jun. 30, 2009 Senior notes due 2019 Ameriprise Financial	Mar. 31, 2010 Senior notes due 2020 Ameriprise Financial	Jun. 30, 2009 Senior notes due 2039 Ameriprise Financial	May 31, 2006 Junior subordinated notes due 2066 Ameriprise Financial	Dec. 31, 2011 Junior subordinated notes due 2066 Ameriprise Financial	Dec. 31, 2010 Junior subordinated notes due 2066 Ameriprise Financial	Dec. 31, 2009 Junior subordinated notes due 2066 Ameriprise Financial	Mar. 31, 2011 Municipal bond inverse floater certificates due 2021 Ameriprise Financial
Debt and stated interest rates
Unsecured senior notes issued						$ 1,500,000,000				$ 300,000,000	$ 750,000,000	$ 200,000,000	$ 500,000,000
Debt issuance costs						7,000,000				3,000,000	6,000,000	6,000,000	6,000,000
Tender offer consideration per principal amount								1,000
Principal amount of notes accepted for purchase								1,000
Early tender payment								30
Reference rate for junior notes from June 1, 2016 until maturity														three-month LIBOR plus a margin equal to 290.5 basis points
Fixed interest rate for junior notes from May 26, 2006 through May 31, 2016 (as a percent)														7.50%
Extinguished debt							340,000,000	450,000,000	10,000,000					14,000,000	14,000,000	135,000,000	6,000,000
Gain (loss) on extinguishment of debt															(1,000,000)	58,000,000
Portfolio of municipal bonds																	10,000,000
Unsecured revolving credit facility, current borrowing capacity			500,000,000
Unsecured revolving credit facility, maximum borrowing capacity			750,000,000
Fair value of securities pledged as collateral under repurchase agreements		521,000,000		412,000,000
Outstanding letters of credit issued against credit facility		2,000,000
Future maturities of debt
2015	700,000,000				88,000,000
Thereafter	1,544,000,000				4,221,000,000
Total future maturities	$ 2,244,000,000				$ 5,801,000,000

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Derivatives and Hedging Activities (Details) (USD $) In Millions, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Balance sheet location and the gross fair value of derivative instruments, including embedded derivatives, by type of derivative and product
Derivative asset, fair value	$ 3,319	$ 895
Derivative liability, fair value	3,879	1,559
Derivatives designated as hedging instruments
Balance sheet location and the gross fair value of derivative instruments, including embedded derivatives, by type of derivative and product
Derivative asset, fair value	157	71
Derivative liability, fair value	11
Derivatives designated as hedging instruments | Cash flow hedges | Asset-based distribution fees
Balance sheet location and the gross fair value of derivative instruments, including embedded derivatives, by type of derivative and product
Derivative asset, fair value		10
Derivatives designated as hedging instruments | Cash flow hedges | Interest on debt
Balance sheet location and the gross fair value of derivative instruments, including embedded derivatives, by type of derivative and product
Derivative liability, fair value	11
Derivatives designated as hedging instruments | Fair value hedges | Fixed rate debt
Balance sheet location and the gross fair value of derivative instruments, including embedded derivatives, by type of derivative and product
Derivative asset, fair value	157	61
Derivatives not designated as hedging instruments
Balance sheet location and the gross fair value of derivative instruments, including embedded derivatives, by type of derivative and product
Derivative asset, fair value	3,162	824
Derivative liability, fair value	3,868	1,559
Derivatives not designated as hedging instruments | GMWB and GMAB
Balance sheet location and the gross fair value of derivative instruments, including embedded derivatives, by type of derivative and product
Derivative asset, fair value	3,123	724
Derivative liability, fair value	3,824	1,466
Derivatives not designated as hedging instruments | Other derivatives
Balance sheet location and the gross fair value of derivative instruments, including embedded derivatives, by type of derivative and product
Derivative asset, fair value	39	100
Derivative liability, fair value	44	93
Derivatives not designated as hedging instruments | Interest rate derivatives | GMWB and GMAB
Balance sheet location and the gross fair value of derivative instruments, including embedded derivatives, by type of derivative and product
Derivative asset, fair value	1,801	366
Derivative liability, fair value	1,198	379
Derivatives not designated as hedging instruments | Interest rate derivatives | Interest rate lock commitments
Balance sheet location and the gross fair value of derivative instruments, including embedded derivatives, by type of derivative and product
Derivative asset, fair value		1
Derivatives not designated as hedging instruments | Equity derivatives | GMWB and GMAB
Balance sheet location and the gross fair value of derivative instruments, including embedded derivatives, by type of derivative and product
Derivative asset, fair value	1,314	354
Derivative liability, fair value	1,031	665
Derivatives not designated as hedging instruments | Equity derivatives | EIA
Balance sheet location and the gross fair value of derivative instruments, including embedded derivatives, by type of derivative and product
Derivative asset, fair value		1
Derivatives not designated as hedging instruments | Equity derivatives | EIA embedded derivatives
Balance sheet location and the gross fair value of derivative instruments, including embedded derivatives, by type of derivative and product
Derivative liability, fair value	2	3
Derivatives not designated as hedging instruments | Equity derivatives | IUL
Balance sheet location and the gross fair value of derivative instruments, including embedded derivatives, by type of derivative and product
Derivative asset, fair value	1
Derivatives not designated as hedging instruments | Equity derivatives | IUL embedded derivatives
Balance sheet location and the gross fair value of derivative instruments, including embedded derivatives, by type of derivative and product
Derivative liability, fair value	3
Derivatives not designated as hedging instruments | Equity derivatives | Stock market certificates
Balance sheet location and the gross fair value of derivative instruments, including embedded derivatives, by type of derivative and product
Derivative asset, fair value	34	89
Derivative liability, fair value	29	75
Derivatives not designated as hedging instruments | Equity derivatives | Stock market certificates embedded derivatives
Balance sheet location and the gross fair value of derivative instruments, including embedded derivatives, by type of derivative and product
Derivative liability, fair value	6	14
Derivatives not designated as hedging instruments | Equity derivatives | Seed money
Balance sheet location and the gross fair value of derivative instruments, including embedded derivatives, by type of derivative and product
Derivative liability, fair value	1
Derivatives not designated as hedging instruments | Equity derivatives | Ameriprise Financial Franchise Advisor Deferred Equity Plan
Balance sheet location and the gross fair value of derivative instruments, including embedded derivatives, by type of derivative and product
Derivative asset, fair value	2	8
Derivatives not designated as hedging instruments | Credit derivative contract | GMWB and GMAB
Balance sheet location and the gross fair value of derivative instruments, including embedded derivatives, by type of derivative and product
Derivative asset, fair value	1	4
Derivative liability, fair value		1
Derivatives not designated as hedging instruments | Foreign exchange contract | GMWB and GMAB
Balance sheet location and the gross fair value of derivative instruments, including embedded derivatives, by type of derivative and product
Derivative asset, fair value	7
Derivative liability, fair value	10
Derivatives not designated as hedging instruments | Foreign exchange contract | Foreign currency
Balance sheet location and the gross fair value of derivative instruments, including embedded derivatives, by type of derivative and product
Derivative asset, fair value	1
Derivative liability, fair value	3	1
Derivatives not designated as hedging instruments | Commodity | Seed money
Balance sheet location and the gross fair value of derivative instruments, including embedded derivatives, by type of derivative and product
Derivative asset, fair value	2
Derivatives not designated as hedging instruments | GMWB and GMAB embedded derivatives | GMWB and GMAB
Balance sheet location and the gross fair value of derivative instruments, including embedded derivatives, by type of derivative and product
Derivative liability, fair value	$ 1,585	$ 421

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Variable Annuity and Insurance Guarantees (Details 2) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
GMDB and GGU
Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross
Liability balance, at the beginning of the period	$ 5	$ 6	$ 55
Incurred claims	10	17	12
Paid claims	(10)	(18)	(61)
Liability balance, at the end of the period	5	5	6
GMIB
Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross
Liability balance, at the beginning of the period	8	6	12
Incurred claims	2	3	(5)
Paid claims	(1)	(1)	(1)
Liability balance, at the end of the period	9	8	6
Variable annuity guaranteed minimum withdrawal benefits ("GMWB")
Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross
Liability balance, at the beginning of the period	337	204	1,471
Incurred claims	1,040	133	(1,267)
Liability balance, at the end of the period	1,377	337	204
Variable annuity guaranteed minimum accumulation benefits ("GMAB")
Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross
Liability balance, at the beginning of the period	104	100	367
Incurred claims	133	4	(267)
Liability balance, at the end of the period	237	104	100
UL
Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross
Liability balance, at the beginning of the period	68	15	7
Incurred claims	53	59	8
Paid claims	(10)	(6)
Liability balance, at the end of the period	$ 111	$ 68	$ 15

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Goodwill and Other Intangible Assets (Details) (Ameriprise Financial, USD $) In Millions, unless otherwise specified	12 Months Ended				12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2010 Advice and Wealth Management	Dec. 31, 2011 Advice and Wealth Management	Dec. 31, 2011 Asset Management	Dec. 31, 2010 Asset Management	Dec. 31, 2011 Annuities	Dec. 31, 2010 Annuities	Dec. 31, 2009 Annuities	Dec. 31, 2011 Protection	Dec. 31, 2010 Protection	Dec. 31, 2009 Protection
Changes in the carrying amount of goodwill, by segment:
Goodwill, balance at the beginning of the period	$ 1,161	$ 1,087	$ 257	$ 255	$ 815	$ 739	$ 46	$ 46	$ 46	$ 45	$ 45	$ 45
Acquisitions	6	97			6	97
Foreign currency translation	(2)	(11)			(2)	(11)
Purchase price adjustment	(1)	(12)	(2)		(1)	(10)
Goodwill, balance at the end of the period	$ 1,164	$ 1,161	$ 255	$ 255	$ 818	$ 815	$ 46	$ 46	$ 46	$ 45	$ 45	$ 45

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Regulatory Requirements

12 Months Ended

Dec. 31, 2011

Regulatory Requirements

Regulatory Requirements

19. Regulatory Requirements

Restrictions on the transfer of funds exist under regulatory requirements applicable to certain of the Company's subsidiaries. At December 31, 2011, the aggregate amount of unrestricted net assets was approximately $1.6 billion.

The National Association of Insurance Commissioners ("NAIC") defines Risk-Based Capital ("RBC") requirements for insurance companies. The RBC requirements are used by the NAIC and state insurance regulators to identify companies that merit regulatory actions designed to protect policyholders. These requirements apply to both the Company's life and property casualty insurance companies. In addition, IDS Property Casualty is subject to the statutory surplus requirements of the State of Wisconsin. The Company's life and property casualty companies each met their respective minimum RBC requirements.

State insurance statutes also contain limitations as to the amount of dividends and distributions that insurers may make without providing prior notification to state regulators. For RiverSource Life, dividends or distributions in excess of statutory unassigned surplus, as determined in accordance with accounting practices prescribed by the State of Minnesota, require advance notice to the Minnesota Department of Commerce, RiverSource Life's primary regulator, and are subject to potential disapproval. In addition, dividends whose fair market value, together with that of other dividends or distributions made within the preceding 12 months, exceeds the greater of (i) the previous year's statutory net gain from operations or (ii) 10% of the previous year-end statutory capital and surplus are referred to as "extraordinary dividends." Extraordinary dividends also require advance notice to the Minnesota Department of Commerce, and are subject to potential disapproval. Government debt securities of $7 million and $6 million at December 31, 2011 and 2010, respectively, held by the Company's life insurance subsidiaries were on deposit with various states as required by law and satisfied legal requirements. Statutory capital and surplus for RiverSource Life were $2.7 billion, $3.7 billion and $3.4 billion for the years ended December 31, 2011, 2010 and 2009, respectively.

Ameriprise Certificate Company ("ACC") is registered as an investment company under the Investment Company Act of 1940 (the "1940 Act"). ACC markets and sells investment certificates to clients. ACC is subject to various capital requirements under the 1940 Act, laws of the State of Minnesota and understandings with the Securities and Exchange Commission ("SEC") and the Minnesota Department of Commerce. The terms of the investment certificates issued by ACC and the provisions of the 1940 Act also require the maintenance by ACC of qualified assets. Under the provisions of its certificates and the 1940 Act, ACC was required to have qualified assets (as that term is defined in Section 28(b) of the 1940 Act) in the amount of $2.8 billion and $3.1 billion at December 31, 2011 and 2010, respectively. ACC had qualified assets of $2.9 billion and $3.4 billion at December 31, 2011 and 2010, respectively. Ameriprise Financial and ACC entered into a Capital Support Agreement on March 2, 2009, pursuant to which Ameriprise Financial agrees to commit such capital to ACC as is necessary to satisfy applicable minimum capital requirements, up to a maximum commitment of $115 million. For the years ended December 31, 2011 and 2010, ACC did not draw upon the Capital Support Agreement and had met all applicable capital requirements.

Threadneedle's required capital is predominantly based on the requirements specified by its regulator, the Financial Services Authority, under its Capital Adequacy Requirements for asset managers.

The Company has four broker-dealer subsidiaries, American Enterprise Investment Services Inc., Ameriprise Financial Services, Inc., RiverSource Distributors, Inc. and Columbia Management Investment Distributors, Inc. The broker-dealers are subject to the net capital requirements of the Financial Industry Regulatory Authority ("FINRA") and the Uniform Net Capital requirements of the SEC under Rule 15c3-1 of the Securities Exchange Act of 1934.

Ameriprise Trust Company is subject to capital adequacy requirements under the laws of the State of Minnesota as enforced by the Minnesota Department of Commerce.

Under the Dodd-Frank Wall Street Reform and Consumer Protection Act, the responsibility for ongoing examination, supervision and regulation of federal savings associations, including Ameriprise Bank, transferred from the Office of Thrift Supervision ("OTS") to the Office of the Comptroller of Currency ("OCC") effective July 21, 2011. Ameriprise Bank is required to maintain sufficient capital in compliance with the OCC regulations and policies. Typically, the OCC requires savings banks to maintain a Tier 1 (core) capital requirement based upon 4.00% of total adjusted assets, total risk-based capital based upon 8.00% of total risk-weighted assets, as well as Tier 1 risk-based capital based upon 4.00% of total risk-weighted assets and a tangible capital ratio of at least 1.50%. Ameriprise Bank agreed with the regulators to maintain its Tier 1 capital-to-assets leverage ratio at or above 7.50%, rather than the OCC-regulated Tier 1 (core) capital requirement of 4.00% and keep its total risk-based capital ratio at or above 12.00%. As a thrift, Ameriprise Bank is also required to maintain 65.00% of its portfolio assets in qualified thrift investments, which include mortgage and consumer-related loans and investments. As of December 31, 2011 and 2010, Ameriprise Bank had met all applicable capital requirements.

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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2011

Income Taxes

Components of income tax provision (benefit)

	Years Ended December 31,
	2011			2010			2009
	(in millions)
Current income tax:
Federal	$	250		$	(224	)	$	200
State and local		21			13			4
Foreign		23			32			4
Total current income tax		294			(179	)		208
Deferred income tax:
Federal		68			540			(13	)
State and local		1			(5	)		(7	)
Foreign		(8	)		(6	)		(4	)
Total deferred income tax		61			529			(24	)
Total income tax provision	$	355		$	350		$	184

Geographic sources of pretax income

	Years Ended December 31,
	2011		2010		2009
	(in millions)
United States	$	1,288	$	1,470	$	883
Foreign		97		164		37
Total	$	1,385	$	1,634	$	920

Reconciliation of the income tax provision

	Years Ended December 31,
	2011			2010			2009
Tax at U.S. statutory rate		35.0	%		35.0	%		35.0	%
Changes in taxes resulting from:
Dividend exclusion		(8.9	)		(4.1	)		(7.6	)
Tax-exempt interest income		(1.3	)		(1.0	)		(1.3	)
Tax credits		(3.4	)		(2.5	)		(5.8	)
State taxes, net of federal benefit		1.0			0.2			(0.4	)
Net income (loss) attributable to noncontrolling interests		2.7			(3.4	)		(0.6	)
Other, net		0.5			(2.7	)		0.7
Income tax provision		25.6	%		21.5	%		20.0	%

Components of Deferred income tax assets and liabilities

	December 31,
	2011			2010
	(in millions)
Deferred income tax assets:
Liabilities for future policy benefits and claims	$	1,615		$	1,329
Investment impairments and write-downs		118			119
Deferred compensation		274			241
Investment related		—			56
Loss carryovers and tax credit carryforwards		134			134
Other		89			70
Gross deferred income tax assets		2,230			1,949
Less: Valuation allowance		(5	)		—
Total deferred income tax assets		2,225			1,949
Deferred income tax liabilities:
Deferred acquisition costs		1,418			1,473
Investment related		260			—
Deferred sales inducement costs		180			191
Net unrealized gains on Available-for-Sale securities		396			312
Depreciation expense		182			138
Intangible assets		60			52
Other		71			85
Gross deferred income tax liabilities		2,567			2,251
Net deferred income tax liabilities	$	(342	)	$	(302	)

Reconciliation of gross unrecognized tax benefits

	2011			2010			2009
	(in millions)
Balance at January 1	$	75		$	(33	)	$	(56	)
Additions based on tax positions related to the current year		1			2			1
Additions for tax positions of prior years		95			57			45
Reductions for tax positions of prior years		(8	)		(42	)		(23	)
Settlements		21			91			—
Balance at December 31	$	184		$	75		$	(33	)

Income tax provision (benefit) amounts for items comprising other comprehensive income

	Years Ended December 31,
	2011			2010			2009
	(in millions)
Net unrealized securities gains	$	77		$	167		$	753
Net unrealized derivatives gains		(15	)		8			6
Defined benefit plans		(28	)		(2	)		10
Foreign currency translation adjustment		(1	)		(6	)		15
Net income tax provision	$	33		$	167		$	784

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Variable Annuity and Insurance Guarantees (Tables)

12 Months Ended

Dec. 31, 2011

Variable Annuity and Insurance Guarantees

Schedule of variable annuity guarantees

	December 31, 2011								December 31, 2010
Variable Annuity Guarantees by Benefit Type(1)	Total Contract Value		Contract Value in Separate Accounts		Net Amount at Risk(2)		Weighted Average Attained Age		Total Contract Value		Contract Value in Separate Accounts		Net Amount at Risk(2)		Weighted Average Attained Age
	(in millions, except age)
GMDB:
Return of premium	$	40,011	$	38,275	$	382		63	$	37,714	$	36,028	$	173		62
Five/six-year reset		11,631		9,118		350		63		13,689		11,153		312		62
One-year ratchet		7,233		6,777		479		64		7,741		7,242		287		63
Five-year ratchet		1,472		1,418		25		61		1,466		1,414		8		60
Other		759		732		93		68		680		649		61		67
Total — GMDB	$	61,106	$	56,320	$	1,329		63	$	61,290	$	56,486	$	841		62
GGU death benefit	$	920	$	868	$	78		63	$	970	$	912	$	79		64
GMIB	$	463	$	433	$	106		65	$	597	$	561	$	76		64
GMWB:
GMWB	$	3,887	$	3,868	$	236		65	$	4,341	$	4,317	$	106		64
GMWB for life		23,756		23,625		863		64		20,374		20,259		129		63
Total — GMWB	$	27,643	$	27,493	$	1,099		64	$	24,715	$	24,576	$	235		63
GMAB	$	3,516	$	3,509	$	63		56	$	3,540	$	3,523	$	22		56

(1)

Individual variable annuity contracts may have more than one guarantee and therefore may be included in more than one benefit type. Variable annuity contracts for which the death benefit equals the account value are not shown in this table.

(2)

Represents the current guaranteed benefit amount in excess of the current contract value. GMIB, GMWB and GMAB benefits are subject to waiting periods and payment periods specified in the contract.

Schedule of changes in additional liabilities for variable annuity and insurance guarantees

	GMDB & GGU			GMIB			GMWB			GMAB			UL
	(in millions)
Balance at January 1, 2009	$	55		$	12		$	1,471		$	367		$	7
Incurred claims		12			(5	)		(1,267	)		(267	)		8
Paid claims		(61	)		(1	)		—			—			—
Balance at December 31, 2009		6			6			204			100			15
Incurred claims		17			3			133			4			59
Paid claims		(18	)		(1	)		—			—			(6	)
Balance at December 31, 2010		5			8			337			104			68
Incurred claims		10			2			1,040			133			53
Paid claims		(10	)		(1	)		—			—			(10	)
Balance at December 31, 2011	$	5		$	9		$	1,377		$	237		$	111

Schedule of separate account balances by asset type

	December 31,
	2011		2010
	(in millions)
Mutual funds:
Equity	$	30,738	$	32,310
Bond		23,862		22,319
Other		1,969		2,208
Total mutual funds	$	56,569	$	56,837

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Future Policy Benefits and Claims and Separate Account Liabilities (Details 2) (Ameriprise Financial, USD $) In Millions, unless otherwise specified			12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2011 Equity indexed annuity accumulated host values Y
Separate Account Liabilities
Variable annuity variable sub-accounts	$ 57,556	$ 57,862
VUL insurance variable sub-accounts	5,575	5,887
Other insurance variable sub-accounts	43	46
Threadneedle investment liabilities	3,606	4,535
Total	$ 66,780	$ 68,330
Contract term of equity indexed annuities (in years)			7
Minimum interest rate guarantee on equity indexed annuities (as a percent)			3.00%
Percentage of initial premium from equity indexed annuity product receiving a minimum interest rate guarantee			90.00%

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Income Taxes (Details 2) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2011 Y	Dec. 31, 2010	Dec. 31, 2009
Deferred income tax assets:
Liabilities for future policy benefits and claims	$ 1,615	$ 1,329
Investment impairments and write-downs	118	119
Deferred compensation	274	241
Investment related		56
Loss carryovers and tax credit carryforwards	134	134
Other	89	70
Gross deferred income tax assets	2,230	1,949
Less: Valuation allowance	(5)
Total deferred income tax assets	2,225	1,949
Deferred income tax liabilities:
Deferred tax liabilities, deferred expense, deferred policy acquisition cost	1,418	1,473
Investment related	260
Deferred sales inducement costs	180	191
Net unrealized gains on available-for-sale securities	396	312
Depreciation expense	182	138
Intangible assets	60	52
Other	71	85
Gross deferred income tax liabilities	2,567	2,251
Net deferred income tax	(342)	(302)
Maximum period for recognizing capital losses (in years)	5
Capital loss carryforwards	30
Tax credit carryforwards	65
State net operating losses	39
Reconciliation of gross unrecognized tax benefits (expense)
Gross unrecognized tax benefits, balance at the beginning of the period	75	(33)	(56)
Additions based on tax positions related to the current year	1	2	1
Additions for tax positions of prior years	95	57	45
Reductions for tax positions of prior years	(8)	(42)	(23)
Settlements	21	91
Gross unrecognized tax benefits, balance at the end of the period	184	75	(33)
Unrecognized tax benefits (net of federal tax benefits) that would impact the effective tax rate	38	54	81
Increase (reduction) in interest and penalties	66	(5)	1
Accrued interest and penalties	(37)	29
Estimated decrease in amount of unrecognized tax benefits in next 12 months, low end of the range	150
Estimated decrease in amount of unrecognized tax benefits in next 12 months, high end of the range	160
Income tax provision (benefit) amounts of items comprising other comprehensive income (loss)
Net unrealized securities gains	77	167	753
Net unrealized derivatives gains	(15)	8	6
Defined benefit plans	(28)	(2)	10
Foreign currency translation adjustment	(1)	(6)	15
Net income tax provision (benefit)	$ 33	$ 167	$ 784

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Financing Receivables (Tables)

12 Months Ended

Dec. 31, 2011

Financing Receivables

Rollforward of the allowance for loan losses

	December 31, 2011
	Commercial Mortgage Loans			Syndicated Loans			Consumer Bank Loans			Total
	(in millions)
Beginning balance	$	38		$	10		$	16		$	64
Charge-offs		(2	)		—			(12	)		(14	)
Recoveries		—			—			1			1
Provisions		(1	)		(1	)		11			9
Ending balance	$	35		$	9		$	16		$	60
Individually evaluated for impairment	$	10		$	1		$	1		$	12
Collectively evaluated for impairment		25			8			15			48

	December 31, 2010
	Commercial Mortgage Loans			Syndicated Loans			Consumer Bank Loans			Total
	(in millions)
Beginning balance	$	32		$	26		$	13		$	71
Charge-offs		(2	)		(5	)		(12	)		(19	)
Recoveries		—			—			1			1
Provisions		8			(11	)		14			11
Ending balance	$	38		$	10		$	16		$	64
Individually evaluated for impairment	$	8		$	1		$	2		$	11
Collectively evaluated for impairment		30			9			14			53

Financing receivables by impairment method and type of loan

	December 31, 2011
	Commercial Mortgage Loans		Syndicated Loans		Consumer Bank Loans		Total
	(in millions)
Individually evaluated for impairment	$	68	$	5	$	11	$	84
Collectively evaluated for impairment		2,556		359		1,369		4,284
Total	$	2,624	$	364	$	1,380	$	4,368

	December 31, 2010
	Commercial Mortgage Loans		Syndicated Loans		Consumer Bank Loans		Total
	(in millions)
Individually evaluated for impairment	$	75	$	8	$	12	$	95
Collectively evaluated for impairment		2,540		303		1,054		3,897
Total	$	2,615	$	311	$	1,066	$	3,992

Purchases and sales of loans under financing receivables

	Years Ended December 31,
	2011		2010
	(in millions)
Purchases
Consumer bank loans	$	373	$	283
Syndicated loans		194		59
Total loans purchased	$	567	$	342
Sales
Consumer bank loans	$	209	$	415
Syndicated loans		2		40
Total loans sold	$	211	$	455

Schedule of commercial mortgage loans by geographic region and specific collateral property type (Table)

	Loans				Percentage
	December 31,				December 31,
	2011		2010		2011			2010
	(in millions)
East North Central	$	252	$	242		10	%		9	%
East South Central		65		66		2			3
Middle Atlantic		223		215		9			8
Mountain		284		301		11			11
New England		141		156		5			6
Pacific		584		541		22			21
South Atlantic		648		625		25			24
West North Central		244		271		9			10
West South Central		183		198		7			8
		2,624		2,615		100	%		100	%
Less: allowance for loan losses		35		38
Total	$	2,589	$	2,577

	Loans				Percentage
	December 31,				December 31,
	2011		2010		2011			2010
	(in millions)
Apartments	$	392	$	351		15	%		13	%
Hotel		51		57		2			2
Industrial		480		475		18			18
Mixed Use		42		43		2			2
Office		694		747		26			29
Retail		845		843		32			32
Other		120		99		5			4
		2,624		2,615		100	%		100	%
Less: allowance for loan losses		35		38
Total	$	2,589	$	2,577

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Commitments, Guarantees and Contingencies (Tables)

12 Months Ended

Dec. 31, 2011

Commitments, Guarantees and Contingencies.

Aggregate minimum rentals under noncancelable operating leases

	(in millions)
2012	$	97
2013		88
2014		83
2015		73
2016		61
Thereafter		206
Total	$	608

Entities funding commitments

	December 31,
	2011		2010
	(in millions)
Commercial mortgage loan commitments	$	19	$	22
Consumer mortgage loan commitments		730		525
Consumer lines of credit		1,685		1,533
Affordable housing partnerships		267		188
Total funding commitments	$	2,701	$	2,268

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Investments (Details 5) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Other-than-temporary impairments	$ (34)	$ (37)	$ (93)
Ameriprise Financial
Gross realized gains	52	72	216
Gross realized losses	(18)	(7)	(53)
Other-than-temporary impairments	(34)	(37)	(93)
Amortized Cost	32,447	31,133
Fair value, debt maturities, without single maturity date	34,505
Fair Value	34,505	32,619
Available-for-Sale Securities, at fair value | Ameriprise Financial
Amortized cost, due within one year	975
Amortized cost, due after one year through five years	6,544
Amortized cost, due after five years through 10 years	6,408
Amortized cost, due after 10 years	4,677
Amortized cost, debt maturities, single maturity date	18,604
Fair value, due within one year	992
Fair value, due after one year through five years	6,783
Fair value, due after five years through 10 years	7,125
Fair value, due after 10 years	5,496
Fair value, debt maturities, single maturity date	20,396
Residential mortgage backed securities | Ameriprise Financial
Amortized cost, debt maturities, without single maturity date	7,440
Amortized Cost	7,440	7,213
Fair value, debt maturities, without single maturity date	7,396
Fair Value	7,396	7,258
Commercial mortgage backed securities | Ameriprise Financial
Amortized cost, debt maturities, without single maturity date	4,430
Amortized Cost	4,430	4,583
Fair value, debt maturities, without single maturity date	4,719
Fair Value	4,719	4,868
Asset backed securities | Ameriprise Financial
Amortized cost, debt maturities, without single maturity date	1,968
Amortized Cost	1,968	1,982
Fair value, debt maturities, without single maturity date	1,985
Fair Value	1,985	2,020
Common Stocks | Ameriprise Financial
Amortized cost, debt maturities, without single maturity date	5
Amortized Cost	5	6
Fair value, debt maturities, without single maturity date	9
Fair Value	$ 9	$ 10

XML

SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Details 4) (USD $) In Millions, unless otherwise specified	3 Months Ended	12 Months Ended	3 Months Ended	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2011	Mar. 31, 2011 Ameriprise Financial, Inc:	Dec. 31, 2011 Ameriprise Financial, Inc:	Dec. 31, 2010 Ameriprise Financial, Inc:	Mar. 02, 2009 Ameriprise Financial, Inc:
Proceeds from sale of business	$ 0	$ 150		$ 150
Debt
Non-recourse debt obligations					6
Portfolio of municipal bonds					10
Extinguished debt			6
Call of portfolio of municipal bonds			10
Repurchase agreements, debt				504	397
Guarantees, Commitments and Contingencies
Maximum commitment under Capital Support Agreement						$ 115

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Consolidated Investment Entities (Details 3) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010
Future maturities of debt
2015	$ 700
Thereafter	1,544
Total future maturities	2,244
Consolidated Investment Entities:
Syndicated loans
Unpaid principal balance	4,548	5,107
Excess estimated unpaid principal over fair value	(244)	(240)
Fair value	4,304	4,867
Fair value of loans more than 90 days past due	18	71
Fair value of loans in nonaccrual status	18	71
Difference between fair value and unpaid principal of loans more than 90 days past due, loans in nonaccrual status or both	16	62
Debt:
Unpaid principal balance	5,335	5,893
Excess estimated unpaid principal over fair value	(623)	(722)
Fair value	4,712	5,171
Total net gains (losses) recognized in net investment income related to changes in the fair value of financial assets and liabilities for which the fair value option was elected	(122)	58
Fair value of floating rate debts of consolidated pooled investment vehicles managed by Threadneedle	466	364
Future maturities of debt
2013	17
2014	378
2015	88
2016	1,097
Thereafter	4,221
Total future maturities	$ 5,801
Consolidated Investment Entities: | Maximum
Debt:
Stated interest rate according to the terms of CDO structure (as a percent)	13.20%
Effective interest rate reflecting the impact of derivative contracts (as a percent)	5.50%
Consolidated Investment Entities: | Minimum
Debt:
Stated interest rate according to the terms of CDO structure (as a percent)	0.00%
Effective interest rate reflecting the impact of derivative contracts (as a percent)	5.00%

XML

Share-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2011

Share-Based Compensation.

Components of share-based compensation expense

	Years Ended December 31,
	2011			2010		2009
	(in millions)
Stock options	$	43		$	41	$	53
Restricted stock awards		50	(1)		37		59
Restricted stock units		52			80		70
Liability awards		13			40		(4	)
Total	$	158		$	198	$	178

(1)

Includes $19 million of expense related to the Threadneedle equity incentive plan.

Weighted average assumptions used for stock option grants

	2011			2010			2009
Dividend yield		1.3	%		1.5	%		2.0	%
Expected volatility		44	%		50	%		55	%
Risk-free interest rate		2.3	%		2.3	%		1.8	%
Expected life of stock option (years)		5.0			5.0			5.0

Summary of stock option activity

	Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
Outstanding at January 1		19.5		$	35.96		6.7	$	423
Granted		1.8			58.58
Exercised		(2.1	)		30.63
Forfeited		(0.3	)		30.75
Outstanding at December 31		18.9			38.85		5.3		241
Exercisable at December 31		12.1			40.56		5.0		132

Summary of restricted stock award activity

	Shares			Weighted Average Grant-date Fair Value
Non-vested shares at January 1		3.6		$	31.08
Granted		0.5			58.68
Vested		(1.0	)		40.36
Forfeited		(0.2	)		32.71
Non-vested shares at December 31		2.9			32.33

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Recent Accounting Pronouncements

12 Months Ended

Dec. 31, 2011

Recent Accounting Pronouncements

Recent Accounting Pronouncements

3. Recent Accounting Pronouncements

Adoption of New Accounting Standards

Receivables

In April 2011, the Financial Accounting Standards Board ("FASB") updated the accounting standards for troubled debt restructurings. The new standard includes indicators that a lender should consider in determining whether a borrower is experiencing financial difficulties and provides clarification for determining whether the lender has granted a concession to the borrower. The standard sets the effective dates for troubled debt restructuring disclosures required by recent guidance on credit quality disclosures. The standard is effective for interim and annual periods beginning on or after June 15, 2011, and is to be applied retrospectively to modifications occurring on or after the beginning of the annual period of adoption. For purposes of measuring impairments of receivables that are considered impaired as a result of applying the new guidance, the standard should be applied prospectively for the interim or annual period beginning on or after June 15, 2011. The Company adopted the standard in the third quarter of 2011. The adoption did not have any effect on the Company's consolidated results of operations and financial condition. See Note 6 for the required disclosures.

Fair Value

In January 2010, the FASB updated the accounting standards related to disclosures on fair value measurements. The standard expands the current disclosure requirements to include additional detail about significant transfers between Levels 1 and 2 within the fair value hierarchy and presents activity in the rollforward of Level 3 activity on a gross basis. The standard also clarifies existing disclosure requirements related to the level of disaggregation to be used for assets and liabilities as well as disclosures on the inputs and valuation techniques used to measure fair value. The standard is effective for interim and annual reporting periods beginning after December 15, 2009, except for the disclosure requirements related to the Level 3 rollforward, which are effective for interim and annual periods beginning after December 15, 2010. The Company adopted the standard in the first quarter of 2010, except for the additional disclosures related to the Level 3 rollforward, which the Company adopted in the first quarter of 2011. The adoption did not have any effect on the Company's consolidated results of operations and financial condition. See Note 4 and Note 14 for the required disclosures.

Consolidation of Variable Interest Entities

In June 2009, the FASB updated the accounting standards related to the consolidation of VIEs. The standard amends the guidance on the determination of the primary beneficiary of a VIE from a quantitative model to a qualitative model and requires additional disclosures about an enterprise's involvement in VIEs. Under the new qualitative model, the primary beneficiary must have both the power to direct the activities of the VIE and the obligation to absorb losses or the right to receive gains that could be potentially significant to the VIE. In February 2010, the FASB amended this guidance to defer application of the consolidation requirements for certain investment funds. The standards are effective for interim and annual reporting periods beginning after November 15, 2009. The Company adopted the standards effective January 1, 2010 and as a result consolidated certain collateralized debt obligations ("CDOs"). At adoption, the Company recorded a $5.5 billion increase to assets and a $5.1 billion increase to liabilities. The difference between the fair value of the assets and liabilities of the CDOs was recorded as a cumulative effect increase of $473 million to appropriated retained earnings of consolidated investment entities. Such amounts are recorded as appropriated retained earnings as the CDO note holders, not Ameriprise Financial, ultimately will receive the benefits or absorb the losses associated with the assets and liabilities of the CDOs. Subsequent to the adoption, the net change in fair value of the assets and liabilities of the CDOs will be recorded as net income attributable to noncontrolling interests and as an adjustment to appropriated retained earnings of consolidated investment entities. See Note 4 for additional information related to the application of the amended VIE consolidation model and the required disclosures.

Recognition and Presentation of Other-Than-Temporary Impairments ("OTTI")

In April 2009, the FASB updated the accounting standards for the recognition and presentation of other-than-temporary impairments. The standard amends existing guidance on other-than-temporary impairments for debt securities and requires that the credit portion of other-than-temporary impairments be recorded in earnings and the noncredit portion of losses be recorded in other comprehensive income when the entity does not intend to sell the security and it is more likely than not that the entity will not be required to sell the security prior to recovery of its cost basis. The standard requires separate presentation of both the credit and noncredit portions of other-than-temporary impairments on the financial statements and additional disclosures. This standard is effective for interim and annual reporting periods ending after June 15, 2009, with early adoption permitted for periods ending after March 15, 2009. At the date of adoption, the portion of previously recognized other-than-temporary impairments that represent the noncredit related loss component shall be recognized as a cumulative effect of adoption with an adjustment to the opening balance of retained earnings with a corresponding adjustment to accumulated other comprehensive income. The Company adopted the standard in the first quarter of 2009 and recorded a cumulative effect increase to the opening balance of retained earnings of $132 million, net of DAC and DSIC amortization, certain benefit reserves and income taxes, and a corresponding increase to accumulated other comprehensive loss, net of impacts to DAC and DSIC amortization, certain benefit reserves and income taxes. See Note 5 for the required disclosures.

Future Adoption of New Accounting Standards

Balance Sheet

In December 2011, the FASB updated the accounting standards to require new disclosures about offsetting assets and liabilities. The standard requires an entity to disclose both gross and net information about instruments and transactions eligible for offset in the statement of financial position and instruments and transactions subject to an agreement similar to a master netting arrangement. The standard is effective for interim and annual periods beginning on or after January 1, 2013 on a retrospective basis. The Company is currently evaluating the impact of the standard on its consolidated results of operations and financial condition.

Comprehensive Income

In June 2011, the FASB updated the accounting standards related to the presentation of comprehensive income. The standard requires entities to present all nonowner changes in stockholders' equity either in a single continuous statement of comprehensive income or in two separate but consecutive statements. The amendments do not affect how earnings per share is calculated or presented. The standard is effective for interim and annual periods beginning after December 15, 2011. The standard is to be applied retrospectively. The adoption of the standard will not impact the Company's consolidated results of operations and financial condition.

Fair Value

In May 2011, the FASB updated the accounting standards related to fair value measurement and disclosure requirements. The standard requires entities, for assets and liabilities measured at fair value in the statement of financial position which are Level 3 fair value measurements, to disclose quantitative information about unobservable inputs and assumptions used in the measurements, a description of the valuation processes in place, and a qualitative discussion about the sensitivity of the measurements to changes in unobservable inputs and interrelationships between those inputs if a change in those inputs would result in a significantly different fair value measurement. In addition, the standard requires disclosure of fair value by level within the fair value hierarchy for each class of assets and liabilities not measured at fair value in the statement of financial position but for which the fair value is disclosed. The standard is effective for interim and annual periods beginning on or after December 15, 2011. The adoption of the standard is not expected to have a material impact on the Company's consolidated results of operations and financial condition.

Transfers and Servicing: Reconsideration of Effective Control for Repurchase Agreements

In April 2011, the FASB updated the accounting standards related to accounting for repurchase agreements and other similar agreements. The standard modifies the criteria for determining when these transactions would be accounted for as secured borrowings as opposed to sales. The standard is effective prospectively for new transfers and existing transactions that are modified in the first interim or annual period beginning on or after December 15, 2011. The adoption of the standard is not expected to have a material impact on the Company's consolidated results of operations and financial condition.

Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts

In October 2010, the FASB updated the accounting standards for DAC. Under this new standard, only the following costs incurred in the acquisition of new and renewal insurance contracts would be capitalizable as DAC: (i) incremental direct costs of a successful contract acquisition, (ii) portions of employees' salaries and benefits directly related to time spent performing specified acquisition activities (that is, underwriting, policy issuance and processing, medical and inspection, and sales force contract selling) for a contract that has actually been acquired, (iii) other costs related to the specified acquisition activities that would not have been incurred had the acquisition contract not occurred, and (iv) advertising costs that meet the capitalization criteria in other GAAP guidance for certain direct-response marketing. All other costs are to be expensed as incurred. The Company retrospectively adopted the standard on January 1, 2012. The cumulative effect of the adoption reduced retained earnings by $1.4 billion after-tax at January 1, 2012.

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Consolidated Investment Entities (Details 4) (Consolidated Investment Entities:, USD $) In Millions, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Debt and stated interest rates
Debt	$ 5,178	$ 5,535
Debt Of Consolidated CDOs Maturing In 2012 To 2021
Debt and stated interest rates
Debt	4,712	5,171
Weighted Average Interest Rate (as a percent)	0.90%	1.00%
Floating rate revolving credit borrowings due 2014
Debt and stated interest rates
Debt	378	329
Weighted Average Interest Rate (as a percent)	3.20%	2.90%
Floating rate revolving credit borrowings due 2015
Debt and stated interest rates
Debt	$ 88	$ 35
Weighted Average Interest Rate (as a percent)	3.00%	2.70%

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Customer Deposits (Tables)

12 Months Ended

Dec. 31, 2011

Customer Deposits

Schedule of Customer Deposits

	December 31,
	2011			2010
	(in millions)
Fixed rate certificates	$	2,004		$	2,313
Stock market certificates		731			790
Stock market embedded derivative reserve		6			14
Other		36			43
Less: accrued interest classified in other liabilities		(5	)		(19	)
Total investment certificate reserves		2,772			3,141
Brokerage deposits		2,341			2,116
Banking deposits		4,737			3,522
Total	$	9,850		$	8,779

XML

Related Party Transactions

12 Months Ended

Dec. 31, 2011

Related Party Transactions

Related Party Transactions

23. Related Party Transactions

The Company may engage in transactions in the ordinary course of business with significant shareholders or their subsidiaries, between the Company and its directors and officers or with other companies whose directors or officers may also serve as directors or officers for the Company or its subsidiaries. The Company carries out these transactions on customary terms. The transactions have not had a material impact on the Company's consolidated results of operations or financial condition.

The Company's executive officers and directors may have transactions with the Company or its subsidiaries involving financial products and insurance services. All obligations arising from these transactions are in the ordinary course of the Company's business and are on the same terms in effect for comparable transactions with the general public. Such obligations involve normal risks of collection and do not have features or terms that are unfavorable to the Company's subsidiaries.

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Commitments, Guarantees and Contingencies

12 Months Ended

Dec. 31, 2011

Commitments, Guarantees and Contingencies.

Commitments, Guarantees and Contingencies

22. Commitments, Guarantees and Contingencies

Commitments

The Company is committed to pay aggregate minimum rentals under noncancelable operating leases for office facilities and equipment in future years as follows:

	(in millions)
2012	$	97
2013		88
2014		83
2015		73
2016		61
Thereafter		206
Total	$	608

For the years ended December 31, 2011, 2010 and 2009, operating lease expense was $97 million, $103 million and $103 million, respectively.

The following table presents the Company's funding commitments:

	December 31,
	2011		2010
	(in millions)
Commercial mortgage loan commitments	$	19	$	22
Consumer mortgage loan commitments		730		525
Consumer lines of credit		1,685		1,533
Affordable housing partnerships		267		188
Total funding commitments	$	2,701	$	2,268

The Company's life and annuity products all have minimum interest rate guarantees in their fixed accounts. As of December 31, 2011, these guarantees range up to 5%. To the extent the yield on the Company's invested asset portfolio declines below its target spread plus the minimum guarantee, the Company's profitability would be negatively affected.

Guarantees

Owing to conditions then-prevailing in the credit markets and the isolated defaults of unaffiliated structured investment vehicles held in the portfolios of money market funds advised by its Columbia Management Investment Advisers, LLC subsidiary (the "2a-7 Funds"), the Company closely monitored the net asset value of the 2a-7 Funds during 2008 and through the date of this report and, as circumstances warranted from time to time, injected capital into one or more of the 2a-7 Funds. The Company has not provided a formal capital support agreement or net asset value guarantee to any of the 2a-7 Funds.

Contingencies

The Company and its subsidiaries are involved in the normal course of business in legal, regulatory and arbitration proceedings, including class actions, concerning matters arising in connection with the conduct of its activities as a diversified financial services firm. These include proceedings specific to the Company as well as proceedings generally applicable to business practices in the industries in which it operates. The Company can also be subject to litigation arising out of its general business activities, such as its investments, contracts, leases and employment relationships. Uncertain economic conditions, heightened and sustained volatility in the financial markets and significant financial reform legislation may increase the likelihood that clients and other persons or regulators may present or threaten legal claims or that regulators increase the scope or frequency of examinations of the Company or the financial services industry generally.

As with other financial services firms, the level of regulatory activity and inquiry concerning the Company's businesses remains elevated. From time to time, the Company receives requests for information from, and/or has been subject to examination or claims by, the SEC, FINRA, the Federal Reserve Bank, the OCC, the Financial Services Authority, state insurance and securities regulators, state attorneys general and various other domestic or foreign governmental and quasi-governmental authorities on behalf of themselves or clients concerning the Company's business activities and practices, and the practices of the Company's financial advisors. During recent periods, the Company has received information requests, exams or inquiries regarding certain matters, including: sales of, or disclosures pertaining to, mutual funds, annuities, equity and fixed income securities, low priced securities, insurance products, brokerage services, financial advice offerings; trading practices within the Company's asset management business; supervision of the Company's financial advisors; company procedures and information security. The Company is also responding to regulatory audits, market conduct examinations and other inquiries (including inquiries from the states of Minnesota and New York) relating to an industry-wide investigation of unclaimed property and escheatment practices and procedures. The number of reviews and investigations has increased in recent years with regard to many firms in the financial services industry, including Ameriprise Financial. The Company has cooperated and will continue to cooperate with the applicable regulators regarding their inquiries.

These legal and regulatory proceedings and disputes are subject to uncertainties and, as such, the Company is unable to predict the ultimate resolution or range of loss that may result. An adverse outcome in one or more of these proceedings could result in adverse judgments, settlements, fines, penalties or other relief, in addition to further claims, examinations or adverse publicity that could have a material adverse effect on the Company's consolidated financial condition or results of operations.

Certain legal and regulatory proceedings are described below.

In June 2004, an action captioned John E. Gallus et al. v. American Express Financial Corp. and American Express Financial Advisors Inc., was filed in the United States District Court for the District of Arizona, and was later transferred to the United States District Court for the District of Minnesota. The plaintiffs alleged that they were investors in several of the Company's mutual funds and they purported to bring the action derivatively on behalf of those funds under the Investment Company Act of 1940 (the '40 Act). The plaintiffs alleged that fees allegedly paid to the defendants by the funds for investment advisory and administrative services were excessive. Plaintiffs seek an order declaring that defendants have violated the '40 Act and awarding unspecified damages including excessive fees allegedly paid plus interest and other costs. On July 6, 2007, the district court granted the Company's motion for summary judgment, dismissing all claims with prejudice. Plaintiffs appealed the district court's decision, and on April 8, 2009, the U.S. Court of Appeals for the Eighth Circuit reversed the district court's decision, and remanded the case for further proceedings. The Company filed with the United States Supreme Court a Petition for Writ of Certiorari to review the judgment of the Court of Appeals in this case in light of the Supreme Court's anticipated review of a similar excessive fee case captioned Jones v. Harris Associates. On March 30, 2010, the Supreme Court issued its ruling in Jones v. Harris Associates, and on April 5, 2010, the Supreme Court vacated the Eighth Circuit's decision in this case and remanded it to the Eighth Circuit for further consideration in light of the Supreme Court's decision in Jones v. Harris Associates. Without any further briefing or argument, on June 4, 2010, the Eighth Circuit remanded the case to the district court for further consideration in light of the Supreme Court's decision in Jones v. Harris Associates. On December 8, 2010, the district court re-entered its July 2007 order granting summary judgment in favor of the Company. Plaintiffs filed a notice of appeal with the Eighth Circuit on January 10, 2011. The Eighth Circuit Court heard oral arguments of the parties on November 17, 2011. The Company is awaiting the Court's ruling.

In November 2010, the Company's J. & W. Seligman & Co. Incorporated subsidiary ("Seligman") received a governmental inquiry regarding an industry insider trading investigation, as previously stated by the Company in general media reporting. The Company continues to cooperate fully with that inquiry. Neither the Company nor Seligman has been accused of any wrongdoing, and the government has confirmed that neither the Company nor any of its affiliated entities is a target of its investigation into potential insider trading.

In October 2011, a putative class action lawsuit entitled Roger Krueger, et al. vs. Ameriprise Financial, et al. was filed in the United States District Court for the District of Minnesota against the Company, certain of its present or former employees and directors, as well as certain fiduciary committees on behalf of participants and beneficiaries of the Ameriprise Financial 401(k) Plan. The alleged class period is from October 1, 2005, to the present. The action alleges that Ameriprise breached fiduciary duties under ERISA by selecting and retaining primarily proprietary mutual funds with allegedly poor performance histories, higher expenses relative to other investment options, and improper fees paid to Ameriprise Financial, Inc. or its subsidiaries. The action also alleges that the Company breached fiduciary duties under ERISA because it used its affiliate Ameriprise Trust Company as the Plan trustee and record-keeper and improperly reaped profits from the sale of the record-keeping business to Wachovia Bank, N.A. Plaintiffs allege over $20 million in damages. On January 17, 2012, all defendants filed a brief and other documents in support of their motion to dismiss the complaint. Plaintiffs filed an amended complaint on February 7, 2012. An amended briefing and hearing schedule for the motion to dismiss this amended complaint will be set by the court.

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Retirement Plans and Profit Sharing Arrangements (Details 3) (USD $) In Millions, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Private real estate investment trust
Defined Benefit Plan Disclosure
Fair Value of Plan Assets		$ 8
Pension Plans
Defined Benefit Plan Disclosure
Fair Value of Plan Assets	362	327	256
Pension Plans | Private real estate investment trust
Defined Benefit Plan Disclosure
Fair Value of Plan Assets	11	8	5
Pension Plans | Hedge funds
Defined Benefit Plan Disclosure
Fair Value of Plan Assets	12	9
Pension Plans | Level 1
Defined Benefit Plan Disclosure
Fair Value of Plan Assets	169	163
Pension Plans | Level 1 | U.S. large cap stocks
Defined Benefit Plan Disclosure
Fair Value of Plan Assets	75	72
Pension Plans | Level 1 | U.S. small cap stocks
Defined Benefit Plan Disclosure
Fair Value of Plan Assets	38	33
Pension Plans | Level 1 | Non-U.S. large cap stocks
Defined Benefit Plan Disclosure
Fair Value of Plan Assets	14	12
Pension Plans | Level 1 | Emerging markets
Defined Benefit Plan Disclosure
Fair Value of Plan Assets	10	15
Pension Plans | Level 1 | U.S. investment grade bonds
Defined Benefit Plan Disclosure
Fair Value of Plan Assets	17	13
Pension Plans | Level 1 | Cash equivalents
Defined Benefit Plan Disclosure
Fair Value of Plan Assets	15	18
Pension Plans | Level 2
Defined Benefit Plan Disclosure
Fair Value of Plan Assets	170	147
Pension Plans | Level 2 | U.S. large cap stocks
Defined Benefit Plan Disclosure
Fair Value of Plan Assets	9	3
Pension Plans | Level 2 | U.S. small cap stocks
Defined Benefit Plan Disclosure
Fair Value of Plan Assets	1	1
Pension Plans | Level 2 | Non-U.S. large cap stocks
Defined Benefit Plan Disclosure
Fair Value of Plan Assets	23	18
Pension Plans | Level 2 | Emerging markets
Defined Benefit Plan Disclosure
Fair Value of Plan Assets	15	14
Pension Plans | Level 2 | U.S. investment grade bonds
Defined Benefit Plan Disclosure
Fair Value of Plan Assets	15	9
Pension Plans | Level 2 | U. S. high yield bonds
Defined Benefit Plan Disclosure
Fair Value of Plan Assets	11	11
Pension Plans | Level 2 | Foreign government bonds and obligations
Defined Benefit Plan Disclosure
Fair Value of Plan Assets	16	12
Pension Plans | Level 2 | Pooled pension funds
Defined Benefit Plan Disclosure
Fair Value of Plan Assets	80	79
Pension Plans | Level 3
Defined Benefit Plan Disclosure
Fair Value of Plan Assets	23	17
Pension Plans | Level 3 | Private real estate investment trust
Defined Benefit Plan Disclosure
Fair Value of Plan Assets	11	8
Pension Plans | Level 3 | Hedge funds
Defined Benefit Plan Disclosure
Fair Value of Plan Assets	12	9
Pension Plans | Total
Defined Benefit Plan Disclosure
Fair Value of Plan Assets	362	327
Pension Plans | Total | U.S. large cap stocks
Defined Benefit Plan Disclosure
Fair Value of Plan Assets	84	75
Pension Plans | Total | U.S. small cap stocks
Defined Benefit Plan Disclosure
Fair Value of Plan Assets	39	34
Pension Plans | Total | Non-U.S. large cap stocks
Defined Benefit Plan Disclosure
Fair Value of Plan Assets	37	30
Pension Plans | Total | Emerging markets
Defined Benefit Plan Disclosure
Fair Value of Plan Assets	25	29
Pension Plans | Total | U.S. investment grade bonds
Defined Benefit Plan Disclosure
Fair Value of Plan Assets	32	22
Pension Plans | Total | U. S. high yield bonds
Defined Benefit Plan Disclosure
Fair Value of Plan Assets	11	11
Pension Plans | Total | Foreign government bonds and obligations
Defined Benefit Plan Disclosure
Fair Value of Plan Assets	16	12
Pension Plans | Total | Private real estate investment trust
Defined Benefit Plan Disclosure
Fair Value of Plan Assets	11	8
Pension Plans | Total | Hedge funds
Defined Benefit Plan Disclosure
Fair Value of Plan Assets	12	9
Pension Plans | Total | Pooled pension funds
Defined Benefit Plan Disclosure
Fair Value of Plan Assets	80	79
Pension Plans | Total | Cash equivalents
Defined Benefit Plan Disclosure
Fair Value of Plan Assets	$ 15	$ 18

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SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Tables)

12 Months Ended

Dec. 31, 2011

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

CONDENSED FINANCIAL INFORMATION OF REGISTRANT

	Years Ended December 31,
	2011			2010			2009
	(in millions)
Revenues
Management and financial advice fees	$	—		$	129		$	53
Distribution fees		9			11			—
Net investment income		18			17			22
Other revenues		30			29			68
Total revenues		57			186			143
Banking and deposit interest expense		—			1			1
Total net revenues		57			185			142
Expenses
Distribution expenses	$	5		$	(9	)	$	—
Interest and debt expense		95			107			127
General and administrative expense		223			288			271
Total expenses		323			386			398
Pretax loss before equity in earnings of subsidiaries		(266	)		(201	)		(256	)
Income tax benefit		(102	)		(120	)		(114	)
Loss before equity in earnings of subsidiaries		(164	)		(81	)		(142	)
Equity in earnings of subsidiaries excluding discontinued operations		1,300			1,202			863
Net income from continuing operations		1,136			1,121			721
Income (loss) from discontinued operations, net of tax		(60	)		(24	)		1
Net income	$	1,076		$	1,097		$	722

	December 31,
	2011			2010
	(in millions, except share data)
Assets
Cash and cash equivalents	$	712		$	1,316
Investments		846			49
Loans to subsidiaries		624			564
Due from subsidiaries		122			109
Receivables		46			50
Land, buildings, equipment, and software, net of accumulated depreciation of $707 and $676, respectively		263			272
Investments in subsidiaries from continuing operations		9,332			9,819
Investments in subsidiaries held for sale		—			94
Other assets		1,357			1,159
Total assets	$	13,302		$	13,432
Liabilities and Shareholders' Equity
Liabilities:
Accounts payable and accrued expenses	$	167		$	178
Due to subsidiaries		261			354
Debt		2,393			2,311
Other liabilities		654			422
Total liabilities		3,475			3,265
Shareholders' Equity:
Common shares ($.01 par value; shares authorized, 1,250,000,000; shares issued, 303,757,574 and 301,366,044, respectively)		3			3
Additional paid-in capital		6,237			6,029
Retained earnings		6,983			6,190
Treasury shares, at cost (81,814,591 and 54,668,152 shares, respectively)		(4,034	)		(2,620	)
Accumulated other comprehensive income, net of tax, including amounts applicable to equity investments in subsidiaries		638			565
Total shareholders' equity		9,827			10,167
Total liabilities and shareholders' equity	$	13,302		$	13,432

	Years Ended December 31,
	2011			2010			2009
	(in millions)
Cash Flows from Operating Activities
Net income	$	1,076		$	1,097		$	722
Equity in earnings of subsidiaries excluding discontinued operations		(1,300	)		(1,202	)		(863	)
Loss (income) from discontinued operations, net of tax		60			24			(1	)
Dividends received from subsidiaries		1,210			796			204
Other operating activities, primarily with subsidiaries		(231	)		921			(90	)
Net cash provided by (used in) operating activities		815			1,636			(28	)
Cash Flows from Investing Activities
Available-for-Sale securities:
Proceeds from sales		—			31			29
Maturities, sinking fund payments and calls		239			151			86
Purchases		(22	)		(151	)		(139	)
Purchase of other investments		—			(32	)		—
Purchase of land, buildings, equipment and software		(56	)		(32	)		(29	)
Contributions to subsidiaries		(128	)		(73	)		(233	)
Return of capital from subsidiaries		22			116			60
Acquisitions		—			(866	)		—
Proceeds from sale of business		150			—			—
Repayment of loans from subsidiaries		1,252			1,282			1,400
Issuance of loans to subsidiaries		(1,312	)		(1,463	)		(1,599	)
Other, net		2			34			8
Net cash provided by (used in) investing activities		147			(1,003	)		(417	)
Cash Flows from Financing Activities
Repayments of debt	$	(14	)	$	(354	)	$	(550	)
Dividends paid to shareholders		(212	)		(183	)		(164	)
Repurchase of common shares		(1,495	)		(582	)		(11	)
Proceeds from issuance of common stock		—			—			869
Issuances of debt, net of issuance costs		—			744			491
Exercise of stock options		66			113			6
Excess tax benefits from share-based compensation		90			9			12
Other, net		(1	)		(2	)		(4	)
Net cash provided by (used in) financing activities		(1,566	)		(255	)		649
Net increase (decrease) in cash and cash equivalents		(604	)		378			204
Cash and cash equivalents at beginning of year		1,316			938			734
Cash and cash equivalents at end of year	$	712		$	1,316		$	938
Supplemental Disclosures:
Interest paid on debt	$	139		$	140		$	122
Income taxes paid, net		334			2			4
Non-cash capital transactions to (from) subsidiaries		(850	)		14			331
Non-cash financing activity:
Dividends declared but not paid		62			—			—

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Debt (Tables)

12 Months Ended

Dec. 31, 2011

Debt

Schedule of Debt Instruments

	Outstanding Balance						Stated Interest Rate
	December 31,						December 31,
	2011			2010			2011			2010
	(in millions)
Senior notes due 2015	$	753	(1)	$	728	(1)		5.7	%		5.7	%
Senior notes due 2019		341	(1)		312	(1)		7.3			7.3
Senior notes due 2020		805	(1)		763	(1)		5.3			5.3
Senior notes due 2039		200			200			7.8			7.8
Junior subordinated notes due 2066		294			308			7.5			7.5
Municipal bond inverse floater certificates due 2021		—			6			—			0.3
Total long-term debt		2,393			2,317
Short-term borrowings		504			397			0.3			0.3
Total	$	2,897		$	2,714

(1)

Amounts include adjustments for fair value hedges on the Company's long-term debt and any unamortized discounts. See Note 15 for information on the Company's fair value hedges.

Future maturities of debt

	(in millions)
2012	$	—
2013		—
2014		—
2015		700
2016		—
Thereafter		1,544
Total future maturities	$	2,244

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Discontinued Operations

12 Months Ended

Dec. 31, 2011

Discontinued Operations

Discontinued Operations

24. Discontinued Operations

During the fourth quarter of 2011, the Company sold Securities America to Ladenburg Thalmann Financial Services, Inc. for $150 million in cash and potential future payments if Securities America reaches certain financial criteria. The components of income (loss) from discontinued operations, net of tax, were as follows for the years ended December 31:

	2011			2010			2009
	(in millions)
Total net revenues	$	382		$	467		$	412
Loss from discontinued operations	$	(124	)	$	(40	)	$	—
Gain on sale		26			—			—
Income tax benefit		(38	)		(16	)		(1	)
Income (loss) from discontinued operations, net of tax	$	(60	)	$	(24	)	$	1

Assets and liabilities classified as held for sale as of December 31, 2010 were as follows:

	(in millions)
Assets:
Cash and cash equivalents	$	23
Receivables		40
Other assets		110
Total assets held for sale	$	173
Liabilities:
Long-term debt	$	5
Accounts payable and accrued expenses		26
Other liabilities		48
Total liabilities held for sale	$	79

Included in other assets at December 31, 2010, were $48 million of goodwill and $8 million of intangible assets related to Securities America.

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Segment Information

12 Months Ended

Dec. 31, 2011

Segment Information

Segment Information

25. Segment Information

The Company's segments are Advice & Wealth Management, Asset Management, Annuities, Protection and Corporate & Other. Each segment records revenues and expenses as if they were each a stand-alone business using the Company's transfer pricing methodology. Transfer pricing uses rates that approximate market-based arm's length prices for specific services provided. The Company reviews the transfer pricing rates periodically and makes appropriate adjustments to ensure the transfer pricing rates that approximate arm's length market prices remain at current market levels. Costs related to shared services are allocated to segments based on their usage of the services provided.

The largest source of intersegment revenues and expenses is retail distribution services, where segments are charged transfer pricing rates that approximate arm's length market prices for distribution through the Advice & Wealth Management segment. The Advice & Wealth Management segment provides distribution services for affiliated and non-affiliated products and services. The Asset Management segment provides investment management services for the Company's owned assets and client assets, and accordingly charges investment and advisory management fees to the other segments.

All costs related to shared services are allocated to the segments based on a rate times volume or fixed basis.

The Advice & Wealth Management segment provides financial planning and advice, as well as full service brokerage and banking services, primarily to retail clients through the Company's affiliated advisors. The Company's affiliated advisors have access to a diversified selection of both affiliated and non-affiliated products to help clients meet their financial needs. A significant portion of revenues in this segment is fee-based, driven by the level of client assets, which is impacted by both market movements and net asset flows. The Company also earns net investment income on invested assets primarily from certificate and banking products. This segment earns revenues (distribution fees) for distributing non-affiliated products and earns intersegment revenues (distribution fees) for distributing the Company's affiliated products and services provided to its retail clients. Intersegment expenses for this segment include expenses for investment management services provided by the Asset Management segment.

The Asset Management segment provides investment advice and investment products to retail and institutional clients. Columbia Management Investment Advisers, LLC ("Columbia" or "Columbia Management") predominantly provides U.S. domestic products and services and Threadneedle predominantly provides international investment products and services. Columbia retail products are provided through unaffiliated third party financial institutions and through the Advice & Wealth Management segment. Institutional products and services are primarily sold through the Company's institutional sales force. Threadneedle retail products are primarily provided through third parties. Retail products include mutual funds and variable product funds underlying insurance and annuity separate accounts. Institutional asset management services are designed to meet specific client objectives and may involve a range of products including those that focus on traditional asset classes, separately managed accounts, individually managed accounts, collateralized loan obligations, hedge funds, collective funds and property funds. Revenues in this segment are primarily earned as fees based on managed asset balances, which are impacted by both market movements and net asset flows. In addition to the products and services provided to third party clients, management teams serving our Asset Management segment provide all intercompany asset management services. The fees for all such services are reflected within the Asset Management segment results through intersegment transfer pricing. Intersegment expenses for this segment include distribution expenses for services provided by the Advice & Wealth Management, Annuities and Protection segments.

The Annuities segment provides variable and fixed annuity products of RiverSource Life companies to retail clients. Prior to the fourth quarter of 2010, the Company's variable annuity products were provided through both affiliated and unaffiliated advisors through third-party distribution. During the fourth quarter of 2010, the Company discontinued new sales of its variable annuities in non-Ameriprise channels to further strengthen the risk and return characteristics of the business. The Company's fixed annuity products are provided through affiliated advisors as well as unaffiliated advisors through third-party distribution. Revenues for the Company's variable annuity products are primarily earned as fees based on underlying account balances, which are impacted by both market movements and net asset flows. Revenues for the Company's fixed annuity products are primarily earned as net investment income on invested assets supporting fixed account balances, with profitability significantly impacted by the spread between net investment income earned and interest credited on the fixed account balances. The Company also earns net investment income on invested assets supporting reserves for immediate annuities and for certain guaranteed benefits offered with variable annuities and on capital supporting the business. Intersegment revenues for this segment reflect fees paid by the Asset Management segment for marketing support and other services provided in connection with the availability of RiverSource Variable Series Trust, Columbia Funds Variable Insurance Trust, Columbia Funds Variable Insurance Trust I and Wanger Advisors Trust funds under the variable annuity contracts. Intersegment expenses for this segment include distribution expenses for services provided by the Advice & Wealth Management segment, as well as expenses for investment management services provided by the Asset Management segment.

The Protection segment offers a variety of protection products to address the protection and risk management needs of the Company's retail clients including life, DI and property-casualty insurance. Life and DI products are primarily provided through the Company's affiliated advisors. The Company's property-casualty products are provided direct, primarily through affinity relationships. The Company issues insurance policies through its life insurance subsidiaries and the property casualty companies. The primary sources of revenues for this segment are premiums, fees, and charges that the Company receives to assume insurance-related risk. The Company earns net investment income on invested assets supporting insurance reserves and capital supporting the business. The Company also receives fees based on the level of assets supporting VUL separate account balances. This segment earns intersegment revenues from fees paid by the Asset Management segment for marketing support and other services provided in connection with the availability of RiverSource Variable Series Trust, Columbia Funds Variable Insurance Trust, Columbia Funds Variable Insurance Trust I and Wanger Advisors Trust funds under the VUL contracts. Intersegment expenses for this segment include distribution expenses for services provided by the Advice & Wealth Management segment, as well as expenses for investment management services provided by the Asset Management segment.

The Corporate & Other segment consists of net investment income or loss on corporate level assets, including excess capital held in the Company's subsidiaries and other unallocated equity and other revenues as well as unallocated corporate expenses. The Corporate & Other segment also includes revenues and expenses of consolidated investment entities.

The accounting policies of the segments are the same as those of the Company, except for the method of capital allocation and the accounting for gains (losses) from intercompany revenues and expenses, which are eliminated in consolidation.

The following is a summary of assets by segment:

	December 31,
	2011		2010
	(in millions)
Advice & Wealth Management	$	12,293	$	11,241
Asset Management		6,863		7,854
Annuities		87,266		84,836
Protection		18,915		18,571
Corporate & Other		8,649		8,539
Assets held for sale		—		173
Total assets	$	133,986	$	131,214

The following is a summary of segment results:

	Year Ended December 31, 2011
	Advice & Wealth Management		Asset Management		Annuities		Protection		Corporate & Other			Eliminations			Consolidated
	(in millions)
Revenue from external customers	$	2,825	$	2,811	$	2,379	$	2,035	$	189		$	—		$	10,239
Intersegment revenue		931		92		252		38		2			(1,315	)		—
Total revenues		3,756		2,903		2,631		2,073		191			(1,315	)		10,239
Banking and deposit interest expense		48		3		—		1		(1	)		(4	)		47
Net revenues		3,708		2,900		2,631		2,072		192			(1,311	)		10,192
Depreciation and amortization expense		86		83		481		208		29			—			887
All other expenses		3,221		2,381		1,629		1,494		506			(1,311	)		7,920
Total expenses		3,307		2,464		2,110		1,702		535			(1,311	)		8,807
Income (loss) from continuing operations before income tax provision	$	401	$	436	$	521	$	370	$	(343	)	$	—		$	1,385
Income tax provision																355
Income from continuing operations																1,030
Loss from discontinued operations, net of tax																(60	)
Net income																970
Less: Net loss attributable to noncontrolling interests																(106	)
Net income attributable to Ameriprise Financial															$	1,076

	Year Ended December 31, 2010
	Advice & Wealth Management		Asset Management		Annuities			Protection		Corporate & Other			Eliminations			Consolidated
	(in millions)
Revenue from external customers	$	2,526	$	2,294	$	2,324		$	2,013	$	425		$	—		$	9,582
Intersegment revenue		884		75		176			35		1			(1,171	)		—
Total revenues		3,410		2,369		2,500			2,048		426			(1,171	)		9,582
Banking and deposit interest expense		67		1		—			1		3			(2	)		70
Net revenues		3,343		2,368		2,500			2,047		423			(1,169	)		9,512
Depreciation and amortization expense		88		105		(75	)		189		23			—			330
All other expenses		2,939		1,945		1,927			1,455		451			(1,169	)		7,548
Total expenses		3,027		2,050		1,852			1,644		474			(1,169	)		7,878
Income (loss) from continuing operations before income tax provision	$	316	$	318	$	648		$	403	$	(51	)	$	—		$	1,634
Income tax provision																	350
Income from continuing operations																	1,284
Loss from discontinued operations, net of tax																	(24	)
Net income																	1,260
Less: Net income attributable to noncontrolling interests																	163
Net income attributable to Ameriprise Financial																$	1,097

	Year Ended December 31, 2009
	Advice & Wealth Management			Asset Management		Annuities		Protection		Corporate & Other			Eliminations			Consolidated
	(in millions)
Revenue from external customers	$	2,103		$	1,304	$	2,165	$	1,935	$	31		$	—		$	7,538
Intersegment revenue		834			44		100		30		2			(1,010	)		—
Total revenues		2,937			1,348		2,265		1,965		33			(1,010	)		7,538
Banking and deposit interest expense		133			2		—		1		7			(2	)		141
Net revenues		2,804			1,346		2,265		1,964		26			(1,008	)		7,397
Depreciation and amortization expense		100			83		54		167		31			—			435
All other expenses		2,737			1,203		1,563		1,300		247			(1,008	)		6,042
Total expenses		2,837			1,286		1,617		1,467		278			(1,008	)		6,477
Income (loss) from continuing operations before income tax provision	$	(33	)	$	60	$	648	$	497	$	(252	)	$	—		$	920
Income tax provision																	184
Income from continuing operations																	736
Income from discontinued operations, net of tax																	1
Net income																	737
Less: Net income attributable to noncontrolling interests																	15
Net income attributable to Ameriprise Financial																$	722

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Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2011

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

2. Summary of Significant Accounting Policies

Principles of Consolidation

The Company consolidates entities in which it holds a greater than 50% voting interest, or when certain conditions are met for VIEs and limited partnerships. Entities in which the Company exercises significant influence or holds a greater than 20% but less than 50% voting interest are accounted for under the equity method. All other investments that are not reported at fair value as trading or Available-for-Sale securities are accounted for under the cost method where the Company owns less than a 20% voting interest and does not exercise significant influence.

A VIE is an entity that either has equity investors that lack certain essential characteristics of a controlling financial interest (including substantive voting rights, the obligation to absorb the entity's losses, or the rights to receive the entity's returns) or has equity investors that do not provide sufficient financial resources for the entity to support its activities. A VIE is required to be assessed for consolidation under two models:

•

If the VIE is a money market fund or is an investment company, or has the financial characteristics of an investment company, and the following is true:

(i)

the entity does not have an explicit or implicit obligation to fund the investment company's losses; and

(ii)

the investment company is not a securitization entity, asset backed financing entity, or an entity formally considered a qualifying special purpose entity,

• then, the VIE will be consolidated by the entity that determines it stands to absorb a majority of the VIE's expected losses or to receive a majority of the VIE's expected residual returns. Examples of entities that are likely to be assessed for consolidation under this framework include hedge funds, property funds, private equity funds and venture capital funds.

•

If the VIE does not meet the criteria above, the VIE will be consolidated by the entity that determines it has both:

(i)

the power to direct the activities of the VIE that most significantly impact the VIE's economic performance; and

(ii)

the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE.

When determining whether the Company stands to absorb the majority of a VIE's expected losses or receive a majority of a VIE's expected returns, it analyzes the design of the VIE to identify the variable interests it holds. Then the Company quantitatively determines whether its variable interests will absorb a majority of the VIE's variability. If the Company determines it has control over the activities that most significantly impact the economic performance of the VIE and it will absorb a majority of the VIE's expected variability, the Company consolidates the VIE. The calculation of variability is based on an analysis of projected probability-weighted cash flows based on the design of the particular VIE. When determining whether the Company has the power and the obligation to absorb losses or rights to receive benefits from the VIE that could potentially be significant, the Company qualitatively determines if its variable interests meet these criteria. If the Company consolidates a VIE under either scenario, it is referred to as the VIE's primary beneficiary.

The Company consolidates certain limited partnerships that are not VIEs, for which the Company is the general partner and is determined to control the limited partnership. As a general partner, the Company is presumed to control the limited partnership unless the limited partners have the ability to dissolve the partnership or have substantive participating rights.

Foreign Currency Translation

Net assets of foreign subsidiaries, whose functional currency is other than the U.S. dollar, are translated into U.S. dollars based upon exchange rates prevailing at the end of each year. The resulting translation adjustment, along with any related hedge and tax effects, are included in accumulated other comprehensive income (loss). Revenues and expenses are translated at average exchange rates during the year.

Amounts Based on Estimates and Assumptions

Accounting estimates are an integral part of the Consolidated Financial Statements. In part, they are based upon assumptions concerning future events. Among the more significant are those that relate to investment securities valuation and recognition of other-than-temporary impairments, deferred acquisition costs ("DAC") and the corresponding recognition of DAC amortization, derivative instruments and hedging activities, litigation and claims reserves and income taxes and the recognition of deferred tax assets and liabilities. These accounting estimates reflect the best judgment of management and actual results could differ.

Cash and Cash Equivalents

Cash equivalents include time deposits and other highly liquid investments with original maturities of 90 days or less.

Investments

Available-for-Sale Securities

Available-for-Sale securities are carried at fair value with unrealized gains (losses) recorded in accumulated other comprehensive income (loss), net of impacts to DAC, deferred sales inducement costs ("DSIC"), certain benefit reserves and income taxes. Gains and losses are recognized in the Consolidated Statements of Operations upon disposition of the securities.

Effective January 1, 2009, the Company early adopted an accounting standard that significantly changed the Company's accounting policy regarding the timing and amount of other-than-temporary impairments for Available-for-Sale securities as follows. When the fair value of an investment is less than its amortized cost, the Company assesses whether or not: (i) it has the intent to sell the security (made a decision to sell) or (ii) it is more likely than not that the Company will be required to sell the security before its anticipated recovery. If either of these conditions is met, an other-than-temporary impairment is considered to have occurred and the Company must recognize an other-than-temporary impairment for the difference between the investment's amortized cost basis and its fair value through earnings. For securities that do not meet the above criteria, and the Company does not expect to recover a security's amortized cost basis, the security is also considered other-than-temporarily impaired. For these securities, the Company separates the total impairment into the credit loss component and the amount of the loss related to other factors. The amount of the total other-than-temporary impairments related to credit loss is recognized in earnings. The amount of the total other-than-temporary impairments related to other factors is recognized in other comprehensive income (loss), net of impacts to DAC, DSIC, certain benefit reserves and income taxes. For Available-for-Sale securities that have recognized an other-than-temporary impairment through earnings, if through subsequent evaluation there is a sustained increase in the cash flow expected, the difference between the amortized cost basis and the cash flows expected to be collected is accreted as interest income. Subsequent increases and decreases in the fair value of Available-for-Sale securities are included in other comprehensive income (loss). The Company's Consolidated Statements of Equity present all changes in other comprehensive income (loss) associated with Available-for-Sale debt securities that have been other-than-temporarily impaired on a separate line from fair value changes recorded in other comprehensive income (loss) from all other securities.

The Company provides a supplemental disclosure on the face of its Consolidated Statements of Operations that presents: (i) total other-than-temporary impairment losses recognized during the period and (ii) the portion of other-than-temporary impairment losses recognized in other comprehensive income (loss). The sum of these amounts represents the credit-related portion of other-than-temporary impairments that were recognized in earnings during the period. The portion of other-than-temporary losses recognized in other comprehensive income (loss) includes: (i) the portion of other-than-temporary impairment losses related to factors other than credit recognized during the period and (ii) reclassifications of other-than-temporary impairment losses previously determined to be related to factors other than credit that are determined to be credit-related in the current period. The amount presented on the Consolidated Statements of Operations as the portion of other-than-temporary losses recognized in other comprehensive income (loss) excludes subsequent increases and decreases in the fair value of these securities.

For all securities that are considered temporarily impaired, the Company does not intend to sell these securities (has not made a decision to sell) and it is not more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis. The Company believes that it will collect all principal and interest due on all investments that have amortized cost in excess of fair value that are considered only temporarily impaired.

Factors the Company considers in determining whether declines in the fair value of fixed maturity securities are other-than-temporary include: (i) the extent to which the market value is below amortized cost; (ii) the duration of time in which there has been a significant decline in value; (iii) fundamental analysis of the liquidity, business prospects and overall financial condition of the issuer; and (iv) market events that could impact credit ratings, economic and business climate, litigation and government actions, and similar external business factors. In order to determine the amount of the credit loss component for corporate debt securities considered other-than-temporarily impaired, a best estimate of the present value of cash flows expected to be collected discounted at the security's effective interest rate is compared to the amortized cost basis of the security. The significant inputs to cash flow projections consider potential debt restructuring terms, projected cash flows available to pay creditors and the Company's position in the debtor's overall capital structure.

For structured investments (e.g., residential mortgage backed securities, commercial mortgage backed securities and asset backed securities), the Company also considers factors such as overall deal structure and its position within the structure, quality of underlying collateral, delinquencies and defaults, loss severities, recoveries, prepayments and cumulative loss projections in assessing potential other-than-temporary impairments of these investments. Based upon these factors, securities that have indicators of potential other-than-temporary impairment are subject to detailed review by management. Securities for which declines are considered temporary continue to be carefully monitored by management.

Other Investments

Other investments primarily reflect the Company's interests in affordable housing partnerships, trading securities, seed money investments and syndicated loans. Affordable housing partnerships and seed money investments are accounted for under the equity method. Trading securities primarily include common stocks and trading bonds. Trading securities are carried at fair value with unrealized and realized gains (losses) recorded within net investment income.

Financing Receivables

Commercial Mortgage Loans, Syndicated Loans, and Consumer Bank Loans

Commercial mortgage loans are reflected within investments at amortized cost less the allowance for loan losses. Syndicated loans represent the Company's investment in below investment grade loan syndications. Syndicated loans are reflected in investments at amortized cost less the allowance for loan losses.

The Company provides consumer lending through its banking subsidiary, Ameriprise Bank, FSB ("Ameriprise Bank"). The Company's consumer lending products primarily include home equity lines of credit, first mortgage lines of credit, credit cards and other revolving lines of credit. The loans are reflected in receivables at amortized cost less the allowance for loan losses.

Interest income is accrued on the unpaid principal balances of the loans as earned.

Other Loans

Other loans consist of policy loans and brokerage margin loans. Policy loans include life insurance policy, annuity and investment certificate loans and are reflected within investments at the unpaid principal balance, plus accrued interest. When originated, the loan balances do not exceed the cash surrender value of the underlying products. As there is minimal risk of loss related to policy loans, the Company does not record an allowance for loan losses for policy loans. The Company's broker dealer subsidiaries enter into lending arrangements with clients through the normal course of business, which are primarily based on customer margin levels. These balances are reported at the unpaid principal balance within receivables. The Company monitors the market value of collateral supporting the margin loans and requests additional collateral when necessary in order to mitigate the risk of loss. As there is minimal risk of loss related to margin loans, the allowance for loan losses is immaterial.

Nonaccrual Loans

Generally, loans are evaluated for or placed on nonaccrual status when either the collection of interest or principal has become 90 days past due or is otherwise considered doubtful of collection. When a loan is placed on nonaccrual status, unpaid accrued interest is reversed. Interest payments received on loans on nonaccrual status are generally applied to principal or in accordance with the loan agreement unless the remaining principal balance has been determined to be fully collectible.

Revolving unsecured consumer lines, including credit card loans, are charged off at 180 days past due. Closed-end consumer loans, other than loans secured by one to four family properties, are charged off at 120 days past due and are generally not placed on nonaccrual status. Loans secured by one to four family properties are charged off when management determines the assets are uncollectible and commences foreclosure proceedings on the property, at which time the property is written down to fair value less selling costs and recorded as real estate owned in other assets. Commercial mortgage loans are evaluated for impairment when the loan is considered for nonaccrual status, restructured or foreclosure proceedings are initiated on the property. If it is determined that the fair value is less than the current loan balance, it is written down to fair value less selling costs. Foreclosed property is recorded as real estate owned in other assets. Syndicated loans are placed on nonaccrual status when management determines it will not collect all contractual principal and interest on the loan.

Allowance for Loan Losses

Management determines the adequacy of the allowance for loan losses by portfolio based on the overall loan portfolio composition, recent and historical loss experience, and other pertinent factors, including when applicable, internal risk ratings, loan-to-value ("LTV") ratios, FICO scores of the borrower, debt service coverage and occupancy rates, along with economic and market conditions. This evaluation is inherently subjective as it requires estimates, which may be susceptible to significant change.

The Company determines the amount of the allowance required for certain sectors based on management's assessment of relative risk characteristics of the loan portfolio. The allowance is recorded for homogeneous loan categories on a pool basis, based on an analysis of product mix and risk characteristics of the portfolio, including geographic concentration, bankruptcy experiences, and historical losses, adjusted for current trends and market conditions.

While the Company attributes portions of the allowance to specific loan pools as part of the allowance estimation process, the entire allowance is available to absorb losses inherent in the total loan portfolio. The allowance is increased through provisions charged to net investment income and reduced/increased by net charge-offs/recoveries.

Impaired Loans

The Company considers a loan to be impaired when, based on current information and events, it is probable the Company will not be able to collect all amounts due (both interest and principal) according to the contractual terms of the loan agreement. Impaired loans may also include loans that have been modified in troubled debt restructurings as a concession to borrowers experiencing financial difficulties. Management evaluates for impairment all restructured loans and loans with higher impairment risk factors. The impairment recognized is measured as the excess of the loan's recorded investment over: (i) the present value of its expected principal and interest payments discounted at the loan's effective interest rate, (ii) the fair value of collateral or (iii) the loan's observable market price.

Restructured Loans

A loan is classified as a restructured loan when the Company makes certain concessionary modifications to contractual terms for borrowers experiencing financial difficulties. When the interest rate, minimum payments, and/or due dates have been modified in an attempt to make the loan more affordable to a borrower experiencing financial difficulties, the modification is considered a troubled debt restructuring. Generally, performance prior to the restructuring or significant events that coincide with the restructuring are considered in assessing whether the borrower can meet the new terms which may result in the loan being returned to accrual status at the time of the restructuring or after a performance period. If the borrower's ability to meet the revised payment schedule is not reasonably assured, the loan remains on nonaccrual status.

Separate Account Assets and Liabilities

Separate account assets and liabilities are primarily funds held for the exclusive benefit of variable annuity contractholders and variable life insurance policyholders, who assume the related investment risk. Income and losses on separate account assets accrue directly to the contractholder or policyholder and are not reported in the Company's Consolidated Statements of Operations. Separate account assets are recorded at fair value. Changes in the fair value of separate account assets are offset by changes in the related separate account liabilities. The Company receives investment management fees, mortality and expense risk fees, guarantee fees and cost of insurance charges from the related accounts.

Included in separate account liabilities are investment liabilities of Threadneedle which represent the value of the units in issue of the pooled pension funds that are offered by Threadneedle's subsidiary, Threadneedle Pensions Limited.

Restricted and Segregated Cash and Investments

Total restricted cash at December 31, 2011 and 2010 was $79 million and $110 million, respectively, which cannot be utilized for operations. The Company's restricted cash at December 31, 2011 and 2010 was primarily cash held by Threadneedle for the benefit of customers and cash that has been pledged to counterparties. At both December 31, 2011 and 2010, amounts segregated under federal and other regulations were $1.7 billion, segregated in special reserve bank accounts for the exclusive benefit of the Company's brokerage customers.

Land, Buildings, Equipment and Software

Land, buildings, equipment and internally developed or purchased software are carried at cost less accumulated depreciation or amortization and are reflected within other assets. The Company generally uses the straight-line method of depreciation and amortization over periods ranging from three to 30 years. At December 31, 2011 and 2010, land, buildings, equipment and software were $774 million and $693 million, respectively, net of accumulated depreciation of $1.1 billion at both periods. Depreciation and amortization expense for the years ended December 31, 2011, 2010 and 2009 was $143 million, $160 million and $176 million, respectively.

Goodwill and Other Intangible Assets

Goodwill represents the amount of an acquired company's acquisition cost in excess of the fair value of assets acquired and liabilities assumed. The Company evaluates goodwill for impairment annually on the measurement date of July 1 and whenever events and circumstances indicate that an impairment may have occurred, such as a significant adverse change in the business climate or a decision to sell or dispose of a reporting unit. In determining whether impairment has occurred, the Company uses the discounted cash flow method, a variation of the income approach.

Intangible assets are amortized over their estimated useful lives unless they are deemed to have indefinite useful lives. The Company evaluates the definite lived intangible assets remaining useful lives annually and tests for impairment whenever events and circumstances indicate that an impairment may have occurred, such as a significant adverse change in the business climate. For definite lived intangible assets subject to amortization, impairment to fair value is recognized if the carrying amount is not recoverable. Indefinite lived intangibles are also tested for impairment annually or whenever circumstances indicate an impairment may have occurred. Impairment is recognized by the amount carrying value exceeds fair value.

Goodwill and other intangible assets are reflected in other assets.

Derivative Instruments and Hedging Activities

Freestanding derivative instruments are recorded at fair value and are reflected in other assets or other liabilities. The Company's policy is to not offset fair value amounts recognized for derivatives and collateral arrangements executed with the same counterparty under the same master netting arrangement. The accounting for changes in the fair value of a derivative instrument depends on its intended use and the resulting hedge designation, if any. The Company primarily uses derivatives as economic hedges that are not designated as accounting hedges or do not qualify for hedge accounting treatment. The Company occasionally designates derivatives as (i) hedges of changes in the fair value of assets, liabilities, or firm commitments ("fair value hedges"), (ii) hedges of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability ("cash flow hedges"), or (iii) hedges of foreign currency exposures of net investments in foreign operations ("net investment hedges in foreign operations").

Derivative instruments that are entered into for hedging purposes are designated as such at the time the Company enters into the contract. For all derivative instruments that are designated for hedging activities, the Company formally documents all of the hedging relationships between the hedge instruments and the hedged items at the inception of the relationships. Management also formally documents its risk management objectives and strategies for entering into the hedge transactions. The Company formally assesses, at inception and on a quarterly basis, whether derivatives designated as hedges are highly effective in offsetting the fair value or cash flows of hedged items. If it is determined that a derivative is no longer highly effective as a hedge, the Company will discontinue the application of hedge accounting.

For derivative instruments that do not qualify for hedge accounting or are not designated as accounting hedges, changes in fair value are recognized in current period earnings. Changes in fair value of derivatives are presented in the Consolidated Statements of Operations based on the nature and use of the instrument. Changes in fair value of derivatives used as economic hedges are presented in the Consolidated Statements of Operations with the corresponding change in the hedged asset or liability.

For derivative instruments that qualify as fair value hedges, changes in the fair value of the derivatives, as well as changes in the fair value of the hedged assets, liabilities or firm commitments, are recognized on a net basis in current period earnings. The carrying value of the hedged item is adjusted for the change in fair value from the designated hedged risk. If a fair value hedge designation is removed or the hedge is terminated prior to maturity, previous adjustments to the carrying value of the hedged item are recognized into earnings over the remaining life of the hedged item.

For derivative instruments that qualify as cash flow hedges, the effective portion of the gain or loss on the derivative instruments is reported in accumulated other comprehensive income (loss) and reclassified into earnings when the hedged item or transaction impacts earnings. The amount that is reclassified into earnings is presented in the Consolidated Statements of Operations with the hedged instrument or transaction impact. Any ineffective portion of the gain or loss is reported in current period earnings as a component of net investment income. If a hedge designation is removed or a hedge is terminated prior to maturity, the amount previously recorded in accumulated other comprehensive income (loss) is reclassified to earnings over the period that the hedged item impacts earnings. For hedge relationships that are discontinued because the forecasted transaction is not expected to occur according to the original strategy, any related amounts previously recorded in accumulated other comprehensive income (loss) are recognized in earnings immediately.

For derivative instruments that qualify as net investment hedges in foreign operations, the effective portion of the change in fair value of the derivatives is recorded in accumulated other comprehensive income (loss) as part of the foreign currency translation adjustment. Any ineffective portion of the net investment hedges in foreign operations is recognized in net investment income during the period of change.

See Note 14 for information regarding the Company's fair value measurement of derivative instruments and Note 15 for the impact of derivatives on the Consolidated Statements of Operations.

The equity component of equity indexed annuity ("EIA"), indexed universal life ("IUL") and stock market certificate obligations are considered embedded derivatives. Additionally, certain annuities contain guaranteed minimum accumulation benefit ("GMAB") and guaranteed minimum withdrawal benefit ("GMWB") provisions. The GMAB and the non-life contingent benefits associated with GMWB provisions are also considered embedded derivatives. The fair value of embedded derivatives associated with annuities and IUL is included in future policy benefits and claims, whereas the fair value of stock market certificate embedded derivatives is included in customer deposits. The changes in the fair value of the EIA and IUL embedded derivatives are reflected in interest credited to fixed accounts. The changes in the fair value of the stock market certificate embedded derivatives are included in banking and deposit interest expense. The changes in the fair value of the GMAB and GMWB embedded derivatives are reflected in benefits, claims, losses and settlement expenses.

Deferred Acquisition Costs

DAC represent the costs of acquiring new business, principally direct sales commissions and other distribution and underwriting costs that have been deferred on the sale of annuity and insurance products and, to a lesser extent, certain mutual fund products. These costs are deferred to the extent they are recoverable from future profits or premiums. The DAC associated with insurance or annuity contracts that are significantly modified or internally replaced with another contract are accounted for as contract terminations. These transactions are anticipated in establishing amortization periods and other valuation assumptions.

Direct sales commissions and other costs deferred as DAC are amortized over time. For annuity and universal life ("UL") contracts, DAC are amortized based on projections of estimated gross profits over amortization periods equal to the approximate life of the business. For other insurance products, DAC are generally amortized as a percentage of premiums over amortization periods equal to the premium-paying period. For certain mutual fund products, DAC are generally amortized over fixed periods on a straight-line basis adjusted for redemptions.

For annuity and UL insurance products, the assumptions made in projecting future results and calculating the DAC balance and DAC amortization expense are management's best estimates. Management is required to update these assumptions whenever it appears that, based on actual experience or other evidence, earlier estimates should be revised. When assumptions are changed, the percentage of estimated gross profits used to amortize DAC might also change. A change in the required amortization percentage is applied retrospectively; an increase in amortization percentage will result in a decrease in the DAC balance and an increase in DAC amortization expense, while a decrease in amortization percentage will result in an increase in the DAC balance and a decrease in DAC amortization expense. The impact on results of operations of changing assumptions can be either positive or negative in any particular period and is reflected in the period in which such changes are made.

For other life and health insurance products, the assumptions made in calculating the DAC balance and DAC amortization expense are consistent with those used in determining the liabilities and, therefore, are intended to provide for adverse deviations in experience and are revised only if management concludes experience will be so adverse that DAC are not recoverable. If management concludes that DAC are not recoverable, DAC are reduced to the amount that is recoverable based on best estimate assumptions and there is a corresponding expense recorded in the Consolidated Statements of Operations.

For annuity, life and health insurance products, key assumptions underlying those long-term projections include interest rates (both earning rates on invested assets and rates credited to contractholder and policyholder accounts), equity market performance, mortality and morbidity rates and the rates at which policyholders are expected to surrender their contracts, make withdrawals from their contracts and make additional deposits to their contracts. Assumptions about earned and credited interest rates are the primary factors used to project interest margins, while assumptions about equity and bond market performance are the primary factors used to project client asset value growth rates, and assumptions about surrenders, withdrawals and deposits comprise projected persistency rates. Management must also make assumptions to project maintenance expenses associated with servicing the Company's annuity and insurance businesses during the DAC amortization period.

The client asset value growth rates are the rates at which variable annuity and variable universal life ("VUL") insurance contract values invested in separate accounts are assumed to appreciate in the future. The rates used vary by equity and fixed income investments. Management reviews and, where appropriate, adjusts its assumptions with respect to client asset value growth rates on a regular basis. The Company typically uses a five-year mean reversion process as a guideline in setting near-term equity fund growth rates based on a long-term view of financial market performance as well as recent actual performance. The suggested near-term equity fund growth rate is reviewed quarterly to ensure consistency with management's assessment of anticipated equity market performance. DAC amortization expense recorded in a period when client asset value growth rates exceed management's near-term estimate will typically be less than in a period when growth rates fall short of management's near-term estimate.

The Company monitors other principal DAC amortization assumptions, such as persistency, mortality, morbidity, interest margin and maintenance expense levels each quarter and, when assessed independently, each could impact the Company's DAC balances.

The analysis of DAC balances and the corresponding amortization is a dynamic process that considers all relevant factors and assumptions described previously. Unless the Company's management identifies a significant deviation over the course of the quarterly monitoring, management reviews and updates these DAC amortization assumptions annually in the third quarter of each year.

Deferred Sales Inducement Costs

DSIC consist of bonus interest credits and premium credits added to certain annuity contract and insurance policy values. These benefits are capitalized to the extent they are incremental to amounts that would be credited on similar contracts without the applicable feature. The amounts capitalized are amortized using the same methodology and assumptions used to amortize DAC. DSIC is recorded in other assets, and amortization of DSIC is recorded in benefits, claims, losses and settlement expenses.

Reinsurance

The Company cedes significant amounts of insurance risk to other insurers under reinsurance agreements. Reinsurance premiums paid and benefits received are accounted for consistently with the basis used in accounting for the policies from which risk is reinsured and consistently with the terms of the reinsurance contracts. Reinsurance premiums for traditional life, long term care ("LTC"), disability income ("DI") and auto and home ceded on a coinsurance basis, net of the change in any prepaid reinsurance asset, are reported as a reduction of premiums. Fixed and variable universal life reinsurance premiums are reported as a reduction of other revenues. In addition, for fixed and variable universal life insurance policies, the net cost of reinsurance ceded, which represents the discounted amount of the expected cash flows between the reinsurer and the Company, is recognized as an asset and amortized over the term of the reinsurance contract, in proportion to the estimated gross profits and is subject to retrospective adjustment in a manner similar to retrospective adjustment of DAC. The assumptions used to project the expected cash flows are consistent with those used for DAC asset valuation for the same contracts. Changes in the net cost of reinsurance are reflected as a component of other revenues. Reinsurance recoveries are reported as components of benefits, claims, losses and settlement expenses.

Insurance liabilities are reported before the effects of reinsurance. Future policy benefits and claims recoverable under reinsurance contracts are recorded within receivables.

The Company also assumes life insurance and fixed annuity business from other insurers in limited circumstances. Reinsurance premiums received and benefits paid are accounted for consistently with the basis used in accounting for the policies from which risk is reinsured and consistently with the terms of the reinsurance contracts. Liabilities for assumed business are recorded within future policy benefits and claims.

See Note 7 for additional information on reinsurance.

Future Policy Benefits and Claims

Fixed Annuities and Variable Annuity Guarantees

Future policy benefits and claims related to fixed annuities and variable annuity guarantees include liabilities for fixed account values on fixed and variable deferred annuities, guaranteed benefits associated with variable annuities, equity indexed annuities and fixed annuities in a payout status.

Liabilities for fixed account values on fixed and variable deferred annuities are equal to accumulation values, which are the cumulative gross deposits and credited interest less withdrawals and various charges.

The majority of the variable annuity contracts offered by the Company contain guaranteed minimum death benefit ("GMDB") provisions. When market values of the customer's accounts decline, the death benefit payable on a contract with a GMDB may exceed the contract accumulation value. The Company also offers variable annuities with death benefit provisions that gross up the amount payable by a certain percentage of contract earnings, which are referred to as gain gross-up ("GGU") benefits. In addition, the Company offers contracts containing GMWB and GMAB provisions, and until May 2007, the Company offered contracts containing guaranteed minimum income benefit ("GMIB") provisions.

In determining the liabilities for GMDB, GMIB and the life contingent benefits associated with GMWB, the Company projects these benefits and contract assessments using actuarial models to simulate various equity market scenarios. Significant assumptions made in projecting future benefits and assessments relate to customer asset value growth rates, mortality, persistency and investment margins and are consistent with those used for DAC asset valuation for the same contracts. As with DAC, management reviews and, where appropriate, adjusts its assumptions each quarter. Unless management identifies a material deviation over the course of quarterly monitoring, management reviews and updates these assumptions annually in the third quarter of each year.

The GMDB liability is determined by estimating the expected value of death benefits in excess of the projected contract accumulation value and recognizing the excess over the estimated meaningful life based on expected assessments (e.g., mortality and expense fees, contractual administrative charges and similar fees).

If elected by the contract owner and after a stipulated waiting period from contract issuance, a GMIB guarantees a minimum lifetime annuity based on a specified rate of contract accumulation value growth and predetermined annuity purchase rates. The GMIB liability is determined each period by estimating the expected value of annuitization benefits in excess of the projected contract accumulation value at the date of annuitization and recognizing the excess over the estimated meaningful life based on expected assessments.

The embedded derivatives related to GMAB and the non-life contingent benefits associated with GMWB provisions are recorded at fair value. See Note 14 for information regarding the fair value measurement of embedded derivatives. The liability for the life contingent benefits associated with GMWB provisions is determined in the same way as the GMDB liability. Significant assumptions made in projecting future benefits and fees relate to persistency and benefit utilization. As with DAC, management reviews, and where appropriate, adjusts its assumptions each quarter. Unless management identifies a material deviation over the course of quarterly monitoring, management reviews and updates these assumptions annually in the third quarter of each year. The changes in both the fair values of the GMWB and GMAB embedded derivatives and the liability for life contingent benefits are reflected in benefits, claims, losses and settlement expenses.

Liabilities for equity indexed annuities are equal to the accumulation of host contract values covering guaranteed benefits and the fair value of embedded equity options.

Liabilities for fixed annuities in a benefit or payout status are based on future estimated payments using established industry mortality tables and interest rates.

Life and Health Insurance

Future policy benefits and claims related to life and health insurance include liabilities for fixed account values on fixed and variable universal life policies, liabilities for indexed accounts of IUL products, liabilities for unpaid amounts on reported claims, estimates of benefits payable on claims incurred but not yet reported and estimates of benefits that will become payable on term life, whole life and health insurance policies as claims are incurred in the future.

Liabilities for fixed account values on fixed and variable universal life insurance are equal to accumulation values. Accumulation values are the cumulative gross deposits and credited interest less various contractual expense and mortality charges and less amounts withdrawn by policyholders.

Liabilities for indexed accounts of IUL products are equal to the accumulation of host contract values covering guaranteed benefits and the fair value of embedded equity options.

A portion of the Company's fixed and variable universal life contracts have product features that result in profits followed by losses from the insurance component of the contract. These profits followed by losses can be generated by the cost structure of the product or secondary guarantees in the contract. The secondary guarantee ensures that, subject to specified conditions, the policy will not terminate and will continue to provide a death benefit even if there is insufficient policy value to cover the monthly deductions and charges.

In determining the liability for contracts with profits followed by losses, the Company projects benefits and contract assessments using actuarial models. Significant assumptions made in projecting future benefits and assessments relate to customer asset value growth rates, mortality, persistency and investment margins and are consistent with those used for DAC asset valuation for the same contracts. As with DAC, management reviews, and where appropriate, adjusts its assumptions each quarter. Unless management identifies a material deviation over the course of quarterly monitoring, management reviews and updates these assumptions annually in the third quarter of each year.

The liability for these future losses is determined by estimating the death benefits in excess of account value and recognizing the excess over the estimated meaningful life based on expected assessments (e.g. cost of insurance charges, contractual administrative charges, similar fees and investment margin). See Note 10 for information regarding the liability for contracts with secondary guarantees.

Liabilities for unpaid amounts on reported life insurance claims are equal to the death benefits payable under the policies. Liabilities for unpaid amounts on reported health insurance claims include any periodic or other benefit amounts due and accrued, along with estimates of the present value of obligations for continuing benefit payments. These amounts are calculated based on claim continuance tables which estimate the likelihood an individual will continue to be eligible for benefits. Present values are calculated at interest rates established when claims are incurred. Anticipated claim continuance rates are based on established industry tables, adjusted as appropriate for the Company's experience.

Liabilities for estimated benefits payable on claims that have been incurred but not yet reported are based on periodic analysis of the actual time lag between when a claim occurs and when it is reported.

Liabilities for estimates of benefits that will become payable on future claims on term life, whole life and health insurance policies are based on the net level premium method, using anticipated premium payments, mortality and morbidity rates, policy persistency and interest rates earned on assets supporting the liability. Anticipated mortality and morbidity rates are based on established industry mortality and morbidity tables, with modifications based on the Company's experience. Anticipated premium payments and persistency rates vary by policy form, issue age, policy duration and certain other pricing factors.

Where applicable, benefit amounts expected to be recoverable from reinsurance companies who share in the risk are separately recorded as reinsurance recoverable within receivables.

Auto and Home Reserves

Auto and home reserves include amounts determined from loss reports on individual claims, as well as amounts based on historical loss experience for losses incurred but not yet reported. Such liabilities are necessarily based on estimates and, while management believes that the reserve amounts were adequate at December 31, 2011 and 2010, the ultimate liability may be in excess of or less than the amounts provided. The Company's methods for making such estimates and for establishing the resulting liabilities are continually reviewed, and any adjustments are reflected in earnings in the period such adjustments are made.

Share-Based Compensation

The Company measures and recognizes the cost of share-based awards granted to employees and directors based on the grant-date fair value of the award and recognizes the expense on a straight-line basis over the vesting period. The fair value of each option is estimated on the grant date using a Black-Scholes option-pricing model. The Company recognizes the cost of share-based awards granted to independent contractors on a fair value basis until the award is fully vested.

Income Taxes

The Company's provision for income taxes represents the net amount of income taxes that the Company expects to pay or to receive from various taxing jurisdictions in connection with its operations. The Company provides for income taxes based on amounts that the Company believes it will ultimately owe taking into account the recognition and measurement for uncertain tax positions. Inherent in the provision for income taxes are estimates and judgments regarding the tax treatment of certain items.

In connection with the provision for income taxes, the Consolidated Financial Statements reflect certain amounts related to deferred tax assets and liabilities, which result from temporary differences between the assets and liabilities measured for financial statement purposes versus the assets and liabilities measured for tax return purposes. Included in deferred tax assets are significant capital losses that have been recognized for financial statement purposes but not yet for tax return purposes as well as future deductible capital losses realized for tax return purposes. Under current U.S. federal income tax law, capital losses generally must be used against capital gain income within five years of the year in which the capital losses are recognized for tax purposes.

The Company is required to establish a valuation allowance for any portion of its deferred tax assets that management believes will not be realized. Significant judgment is required in determining if a valuation allowance should be established and the amount of such allowance if required. Factors used in making this determination include estimates relating to the performance of the business including the ability to generate capital gains. Consideration is given to, among other things in making this determination: (i) future taxable income exclusive of reversing temporary differences and carryforwards; (ii) future reversals of existing taxable temporary differences; (iii) taxable income in prior carryback years; and (iv) tax planning strategies. Management may need to identify and implement appropriate planning strategies to ensure its ability to realize deferred tax assets and avoid the establishment of a valuation allowance with respect to such assets. In the opinion of management, it is currently more likely than not that the Company will not realize the full benefit of certain state net operating losses and therefore a valuation allowance of $5 million has been established as of December 31, 2011.

Sources of Revenue

The Company generates revenue from a wide range of investment and insurance products. Principal sources of revenue include management and financial advice fees, distribution fees, net investment income and premiums.

Management and Financial Advice Fees

Management and financial advice fees relate primarily to fees earned from managing mutual funds, separate account and wrap account assets and institutional investments, as well as fees earned from providing financial advice and administrative services (including transfer agent, administration and custodial fees earned from providing services to retail mutual funds). Management and financial advice fees also include mortality and expense risk fees earned on separate account assets.

The Company's management fees are generally accrued daily and collected monthly. A significant portion of the Company's management fees are calculated as a percentage of the fair value of its managed assets. The substantial majority of the Company's managed assets are valued by third party pricing services vendors based upon observable market data. The selection of the Company's third party pricing services vendors and the reliability of their prices are subject to certain governance procedures, such as exception reporting, subsequent transaction testing, and annual due diligence of our vendors, which includes assessing the vendor's valuation qualifications, control environment, analysis of asset-class specific valuation methodologies and understanding of sources of market observable assumptions.

Several of the Company's mutual funds had a performance incentive adjustment ("PIA"). The PIA increased or decreased the level of management fees received based on the specific fund's relative performance as measured against a designated external index. We discontinued the PIA earned by the Company's domestic mutual funds during 2011. The Company recognized PIA revenue monthly on a 12 month rolling performance basis. The Company may also receive performance-based incentive fees from hedge funds or other structured investments that it manages. The annual performance fees for structured investments are recognized as revenue at the time the performance fee is finalized or no longer subject to adjustment. All other performance fees are based on a full contract year and are final at the end of the contract year. Any performance fees received are not subject to repayment or any other clawback provisions. Employee benefit plan and institutional investment management and administration services fees are negotiated and are also generally based on underlying asset values. Fees from financial planning and advice services are recognized when the financial plan is delivered.

Distribution Fees

Distribution fees primarily include point-of-sale fees (such as mutual fund front-end sales loads) and asset-based fees (such as 12b-1 distribution and shareholder service fees) that are generally based on a contractual percentage of assets and recognized when earned. Distribution fees also include amounts received under marketing support arrangements for sales of mutual funds and other companies' products, such as through the Company's wrap accounts, as well as surrender charges on fixed and variable universal life insurance and annuities.

Net Investment Income

Net investment income primarily includes interest income on fixed maturity securities classified as Available-for-Sale, commercial mortgage loans, policy loans, consumer loans, other investments and cash and cash equivalents; the changes in fair value of trading securities, certain derivatives and certain assets and liabilities of consolidated investment entities; the pro rata share of net income or loss on equity method investments; and realized gains and losses on the sale of securities and charges for other-than-temporary impairments of investments related to credit losses. Interest income is accrued as earned using the effective interest method, which makes an adjustment of the yield for security premiums and discounts on all performing fixed maturity securities classified as Available-for-Sale so that the related security or loan recognizes a constant rate of return on the outstanding balance throughout its term. Realized gains and losses on securities, other than trading securities and equity method investments, are recognized using the specific identification method on a trade date basis.

Premiums

Premiums include premiums on property-casualty insurance, traditional life and health (DI and LTC) insurance and immediate annuities with a life contingent feature. Premiums on auto and home insurance are net of reinsurance premiums and are recognized ratably over the coverage period. Premiums on traditional life and health insurance are net of reinsurance ceded and are recognized as revenue when due.

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Quarterly Financial Data (Unaudited)

12 Months Ended

Dec. 31, 2011

Quarterly Financial Data (Unaudited)

Quarterly Financial Data (Unaudited)

26. Quarterly Financial Data (Unaudited)

	2011											2010
	12/31		9/30			6/30			3/31			12/31			9/30			6/30		3/31
	(in millions, except per share data)
Net revenues	$	2,582	$	2,455		$	2,623		$	2,532		$	2,558		$	2,334		$	2,462	$	2,158
Income from continuing operations before income tax provision	$	352	$	247		$	399		$	387		$	368		$	446		$	462	$	358
Income from continuing operations	$	285	$	166		$	285		$	294		$	280		$	314		$	396	$	294
Income (loss) from discontinued operations, net of tax		13		2			(4	)		(71	)		(26	)		(2	)		2		2
Net income		298		168			281			223			254			312			398		296
Less: Net income (loss) attributable to noncontrolling interests		45		(105	)		(28	)		(18	)		(26	)		(32	)		139		82
Net income attributable to Ameriprise Financial	$	253	$	273		$	309		$	241		$	280		$	344		$	259	$	214
Earnings per share attributable to Ameriprise Financial, Inc. common shareholders:
Basic
Income from continuing operations	$	1.04	$	1.14		$	1.28		$	1.24		$	1.21		$	1.36		$	0.98	$	0.81
Income (loss) from discontinued operations		0.06		0.01			(0.02	)		(0.28	)		(0.10	)		(0.01	)		0.01		0.01
Net income	$	1.10	$	1.15		$	1.26		$	0.96		$	1.11		$	1.35		$	0.99	$	0.82
Diluted
Income from continuing operations	$	1.02	$	1.12		$	1.25		$	1.21		$	1.18		$	1.33		$	0.97	$	0.80
Income (loss) from discontinued operations		0.06		0.01			(0.02	)		(0.27	)		(0.10	)		(0.01	)		0.01		0.01
Net income	$	1.08	$	1.13		$	1.23		$	0.94		$	1.08		$	1.32		$	0.98	$	0.81
Weighted average common shares outstanding:
Basic		230.6		238.0			245.5			251.6			252.7			255.3			261.1		260.8
Diluted		234.5		242.0			251.0			257.7			258.9			259.9			265.3		265.0
Cash dividends declared per common share	$	0.51	$	0.23		$	0.23		$	0.18		$	0.18		$	0.18		$	0.18	$	0.17
Common share price:
High	$	50.85	$	59.49		$	63.78		$	65.12		$	58.17		$	48.80		$	49.54	$	45.88
Low	$	36.00	$	38.93		$	54.72		$	57.29		$	47.03		$	34.68		$	35.85	$	36.14

XML

Fair Values of Assets and Liabilities (Details 2) (USD $)	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010
Liabilities:
Cumulative decrease to the embedded derivative liability	$ 506,000,000	$ 197,000,000
Ameriprise Financial
Assets
Total Available-for-Sale securities	34,505,000,000	32,619,000,000
Separate account assets	66,780,000,000	68,330,000,000
Recurring | Level 1 | Ameriprise Financial
Assets
Cash equivalents	20,000,000	42,000,000
Total Available-for-Sale securities	24,000,000	66,000,000
Total trading securities	1,000,000
Total other assets	274,000,000	33,000,000
Total assets at fair value	319,000,000	141,000,000
Liabilities:
Total other liabilities	300,000,000	19,000,000
Total liabilities at fair value	300,000,000	19,000,000
Recurring | Level 1 | U.S. government and agencies obligations | Ameriprise Financial
Assets
Total Available-for-Sale securities	22,000,000	64,000,000
Recurring | Level 1 | Common Stocks | Ameriprise Financial
Assets
Total Available-for-Sale securities	2,000,000	2,000,000
Recurring | Level 1 | Equity derivatives | Ameriprise Financial
Assets
Total other assets	274,000,000	32,000,000
Liabilities:
Total other liabilities	297,000,000	18,000,000
Recurring | Level 1 | Foreign exchange contract | Ameriprise Financial
Assets
Total other assets		1,000,000
Liabilities:
Total other liabilities	3,000,000	1,000,000
Recurring | Level 2 | Ameriprise Financial
Assets
Cash equivalents	2,287,000,000	2,481,000,000
Total Available-for-Sale securities	32,667,000,000	26,449,000,000
Total trading securities	30,000,000	43,000,000
Separate account assets	66,780,000,000	68,330,000,000
Total other assets	3,045,000,000	864,000,000
Assets held for sale		15,000,000
Total assets at fair value	105,102,000,000	98,480,000,000
Liabilities:
Total future policy benefits and claims	5,000,000	3,000,000
Customer deposits	6,000,000	14,000,000
Total other liabilities	1,985,000,000	1,104,000,000
Total liabilities at fair value	1,996,000,000	1,121,000,000
Recurring | Level 2 | Corporate debt securities | Ameriprise Financial
Assets
Total Available-for-Sale securities	16,685,000,000	15,281,000,000
Recurring | Level 2 | Residential mortgage backed securities | Ameriprise Financial
Assets
Total Available-for-Sale securities	7,198,000,000	3,011,000,000
Recurring | Level 2 | Commercial mortgage backed securities | Ameriprise Financial
Assets
Total Available-for-Sale securities	4,669,000,000	4,817,000,000
Recurring | Level 2 | Asset backed securities | Ameriprise Financial
Assets
Total Available-for-Sale securities	1,779,000,000	1,544,000,000
Recurring | Level 2 | State and municipal obligations | Ameriprise Financial
Assets
Total Available-for-Sale securities	2,130,000,000	1,582,000,000
Recurring | Level 2 | U.S. government and agencies obligations | Ameriprise Financial
Assets
Total Available-for-Sale securities	49,000,000	79,000,000
Recurring | Level 2 | Foreign government bonds and obligations | Ameriprise Financial
Assets
Total Available-for-Sale securities	144,000,000	108,000,000
Recurring | Level 2 | Common Stocks | Ameriprise Financial
Assets
Total Available-for-Sale securities	2,000,000	3,000,000
Recurring | Level 2 | Other debt obligations | Ameriprise Financial
Assets
Total Available-for-Sale securities	11,000,000	24,000,000
Recurring | Level 2 | Investments segregated for regulatory purposes | Ameriprise Financial
Assets
Total assets at fair value	293,000,000	298,000,000
Recurring | Level 2 | Interest rate derivatives | Ameriprise Financial
Assets
Total other assets	1,958,000,000	438,000,000
Liabilities:
Total other liabilities	1,209,000,000	379,000,000
Recurring | Level 2 | Equity derivatives | Ameriprise Financial
Assets
Total other assets	1,077,000,000	420,000,000
Liabilities:
Total other liabilities	764,000,000	722,000,000
Recurring | Level 2 | Credit derivative contract | Ameriprise Financial
Assets
Total other assets	1,000,000	4,000,000
Liabilities:
Total other liabilities		1,000,000
Recurring | Level 2 | Foreign exchange contract | Ameriprise Financial
Assets
Total other assets	7,000,000
Liabilities:
Total other liabilities	10,000,000
Recurring | Level 2 | Commodity derivative contracts | Ameriprise Financial
Assets
Total other assets	2,000,000
Recurring | Level 2 | Other assets | Ameriprise Financial
Assets
Total other assets		2,000,000
Recurring | Level 2 | Equity indexed annuity embedded derivatives | Ameriprise Financial
Liabilities:
Total future policy benefits and claims	2,000,000	3,000,000
Recurring | Level 2 | IUL embedded derivatives | Ameriprise Financial
Liabilities:
Total future policy benefits and claims	3,000,000
Recurring | Level 2 | Other liabilities | Ameriprise Financial
Liabilities:
Total other liabilities	2,000,000	2,000,000
Recurring | Level 3 | Ameriprise Financial
Assets
Total Available-for-Sale securities	1,814,000,000	6,104,000,000
Total assets at fair value	1,814,000,000	6,104,000,000
Liabilities:
Total future policy benefits and claims	1,585,000,000	421,000,000
Total liabilities at fair value	1,585,000,000	421,000,000
Recurring | Level 3 | Corporate debt securities | Ameriprise Financial
Assets
Total Available-for-Sale securities	1,355,000,000	1,325,000,000
Recurring | Level 3 | Residential mortgage backed securities | Ameriprise Financial
Assets
Total Available-for-Sale securities	198,000,000	4,247,000,000
Recurring | Level 3 | Commercial mortgage backed securities | Ameriprise Financial
Assets
Total Available-for-Sale securities	50,000,000	51,000,000
Recurring | Level 3 | Asset backed securities | Ameriprise Financial
Assets
Total Available-for-Sale securities	206,000,000	476,000,000
Recurring | Level 3 | Common Stocks | Ameriprise Financial
Assets
Total Available-for-Sale securities	5,000,000	5,000,000
Recurring | Level 3 | GMWB and GMAB embedded derivatives | Ameriprise Financial
Liabilities:
Total future policy benefits and claims	1,585,000,000	421,000,000
Recurring | Total | Ameriprise Financial
Assets
Cash equivalents	2,307,000,000	2,523,000,000
Total Available-for-Sale securities	34,505,000,000	32,619,000,000
Total trading securities	31,000,000	43,000,000
Separate account assets	66,780,000,000	68,330,000,000
Total other assets	3,319,000,000	897,000,000
Assets held for sale		15,000,000
Total assets at fair value	107,235,000,000	104,725,000,000
Liabilities:
Total future policy benefits and claims	1,590,000,000	424,000,000
Customer deposits	6,000,000	14,000,000
Total other liabilities	2,285,000,000	1,123,000,000
Total liabilities at fair value	3,881,000,000	1,561,000,000
Recurring | Total | Corporate debt securities | Ameriprise Financial
Assets
Total Available-for-Sale securities	18,040,000,000	16,606,000,000
Recurring | Total | Residential mortgage backed securities | Ameriprise Financial
Assets
Total Available-for-Sale securities	7,396,000,000	7,258,000,000
Recurring | Total | Commercial mortgage backed securities | Ameriprise Financial
Assets
Total Available-for-Sale securities	4,719,000,000	4,868,000,000
Recurring | Total | Asset backed securities | Ameriprise Financial
Assets
Total Available-for-Sale securities	1,985,000,000	2,020,000,000
Recurring | Total | State and municipal obligations | Ameriprise Financial
Assets
Total Available-for-Sale securities	2,130,000,000	1,582,000,000
Recurring | Total | U.S. government and agencies obligations | Ameriprise Financial
Assets
Total Available-for-Sale securities	71,000,000	143,000,000
Recurring | Total | Foreign government bonds and obligations | Ameriprise Financial
Assets
Total Available-for-Sale securities	144,000,000	108,000,000
Recurring | Total | Common Stocks | Ameriprise Financial
Assets
Total Available-for-Sale securities	9,000,000	10,000,000
Recurring | Total | Other debt obligations | Ameriprise Financial
Assets
Total Available-for-Sale securities	11,000,000	24,000,000
Recurring | Total | Investments segregated for regulatory purposes | Ameriprise Financial
Assets
Total assets at fair value	293,000,000	298,000,000
Recurring | Total | Interest rate derivatives | Ameriprise Financial
Assets
Total other assets	1,958,000,000	438,000,000
Liabilities:
Total other liabilities	1,209,000,000	379,000,000
Recurring | Total | Equity derivatives | Ameriprise Financial
Assets
Total other assets	1,351,000,000	452,000,000
Liabilities:
Total other liabilities	1,061,000,000	740,000,000
Recurring | Total | Credit derivative contract | Ameriprise Financial
Assets
Total other assets	1,000,000	4,000,000
Liabilities:
Total other liabilities		1,000,000
Recurring | Total | Foreign exchange contract | Ameriprise Financial
Assets
Total other assets	7,000,000	1,000,000
Liabilities:
Total other liabilities	13,000,000	1,000,000
Recurring | Total | Commodity derivative contracts | Ameriprise Financial
Assets
Total other assets	2,000,000
Recurring | Total | Other assets | Ameriprise Financial
Assets
Total other assets		2,000,000
Recurring | Total | Equity indexed annuity embedded derivatives | Ameriprise Financial
Liabilities:
Total future policy benefits and claims	2,000,000	3,000,000
Recurring | Total | IUL embedded derivatives | Ameriprise Financial
Liabilities:
Total future policy benefits and claims	3,000,000
Recurring | Total | GMWB and GMAB embedded derivatives | Ameriprise Financial
Liabilities:
Total future policy benefits and claims	1,585,000,000	421,000,000
Recurring | Total | Other liabilities | Ameriprise Financial
Liabilities:
Total other liabilities	$ 2,000,000	$ 2,000,000

XML

Deferred Acquisition Costs and Deferred Sales Inducement Costs (Tables)

12 Months Ended

Dec. 31, 2011

Deferred Acquisition Costs and Deferred Sales Inducement Costs

Schedule of balances of and changes in DAC

	2011			2010			2009
	(in millions)
Balance at January 1	$	4,619		$	4,334		$	4,383
Capitalization of acquisition costs		492			525			620
Amortization, excluding the impact of valuation assumptions review		(567	)		(450	)		(336	)
Amortization, impact of valuation assumptions review		(51	)		323			119
Impact of change in net unrealized securities gains		(91	)		(113	)		(452	)
Balance at December 31	$	4,402		$	4,619		$	4,334

Schedule of balances of and changes in DSIC, included in other assets on the Consolidated Balance Sheets

	2011			2010			2009
	(in millions)
Balance at January 1	$	545		$	524		$	518
Capitalization of sales inducement costs		9			35			82
Amortization, excluding the impact of valuation assumptions review		(70	)		(49	)		(19	)
Amortization, impact of valuation assumptions review		(11	)		52			9
Impact of change in net unrealized securities gains		(9	)		(17	)		(66	)
Balance at December 31	$	464		$	545		$	524

XML

Discontinued Operations (Tables)

12 Months Ended

Dec. 31, 2011

Discontinued Operations

Components of earnings and assets and liabilities of discontinued operations.

	2011			2010			2009
	(in millions)
Total net revenues	$	382		$	467		$	412
Loss from discontinued operations	$	(124	)	$	(40	)	$	—
Gain on sale		26			—			—
Income tax benefit		(38	)		(16	)		(1	)
Income (loss) from discontinued operations, net of tax	$	(60	)	$	(24	)	$	1

	(in millions)
Assets:
Cash and cash equivalents	$	23
Receivables		40
Other assets		110
Total assets held for sale	$	173
Liabilities:
Long-term debt	$	5
Accounts payable and accrued expenses		26
Other liabilities		48
Total liabilities held for sale	$	79

XML

Goodwill and Other Intangible Assets (Details 2) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2011 Y	Dec. 31, 2010	Dec. 31, 2009
Definite-lived intangible assets
Gross Carrying Amount	$ 528	$ 526
Accumulated Amortization	(246)	(201)
Net Carrying Amount	282	325
Definite-lived intangible assets acquired during the year, amount assigned	2
Definite-lived intangible assets acquired during the year, weighted-average amortization period (in years)	5
Increase (decrease) to net definite-lived intangible assets due to changes in foreign currency exchange rates		(5)	13
Aggregate amortization expense for definite-lived intangible assets	45	46	32
Estimated intangible amortization expense for next five years:
2012	46
2013	45
2014	40
2015	31
2016	27
Investment management contracts
Definite-lived intangible assets
Carrying amount of indefinite-lived intangible assets	630	630
Identifiable intangible assets with indefinite useful lives acquired during the year		615
Trade names
Definite-lived intangible assets
Carrying amount of indefinite-lived intangible assets	67	67
Identifiable intangible assets with indefinite useful lives acquired during the year		57
Customer relationships
Definite-lived intangible assets
Gross Carrying Amount	145	150
Accumulated Amortization	(69)	(38)
Net Carrying Amount	76	112
Contracts
Definite-lived intangible assets
Gross Carrying Amount	233	233
Accumulated Amortization	(122)	(103)
Net Carrying Amount	111	130
Other
Definite-lived intangible assets
Gross Carrying Amount	150	143
Accumulated Amortization	(55)	(60)
Net Carrying Amount	$ 95	$ 83

XML

Consolidated Statements of Operations (USD $) In Millions, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Revenues
Management and financial advice fees	$ 4,537	$ 3,784	$ 2,558
Distribution fees	1,573	1,447	1,182
Net investment income	2,046	2,309	1,998
Premiums	1,220	1,179	1,098
Other revenues	863	863	702
Total revenues	10,239	9,582	7,538
Banking and deposit interest expense	47	70	141
Total net revenues	10,192	9,512	7,397
Expenses
Distribution expenses	2,497	2,065	1,462
Interest credited to fixed accounts	853	909	903
Benefits, claims, losses and settlement expenses	1,557	1,750	1,334
Amortization of deferred acquisition costs	618	127	217
Interest and debt expense	317	290	127
General and administrative expense	2,965	2,737	2,434
Total expenses	8,807	7,878	6,477
Income from continuing operations before income tax provision	1,385	1,634	920
Income tax provision	355	350	184
Income from continuing operations	1,030	1,284	736
Income (loss) from discontinued operations, net of tax	(60)	(24)	1
Net income	970	1,260	737
Less: Net income (loss) attributable to noncontrolling interests	(106)	163	15
Net income attributable to Ameriprise Financial	1,076	1,097	722
Basic
Income from continuing operations (in dollars per share)	$ 4.71	$ 4.36	$ 2.98
Income (loss) from discontinued operations (in dollars per share)	$ (0.25)	$ (0.10)
Net income (in dollars per share)	$ 4.46	$ 4.26	$ 2.98
Diluted
Income from continuing operations (in dollars per share)	$ 4.61	$ 4.27	$ 2.95
Income (loss) from discontinued operations (in dollars per share)	$ (0.24)	$ (0.09)
Net income (in dollars per share)	$ 4.37	$ 4.18	$ 2.95
Cash dividends declared per common share (in dollars per share)	$ 1.15	$ 0.71	$ 0.68
Net investment income:
Net investment income before impairment losses on securities	2,080	2,346	2,091
Total other-than-temporary impairment losses on securities	(76)	(41)	(83)
Portion of loss recognized in other comprehensive income	42	4	(10)
Net impairment losses recognized in net investment income	(34)	(37)	(93)
Net investment income	$ 2,046	$ 2,309	$ 1,998

XML

Fair Values of Assets and Liabilities (Tables)

12 Months Ended

Dec. 31, 2011

Fair Values of Assets and Liabilities

Schedule of assets and liabilities measured at fair value on a recurring basis

	December 31, 2011
	Level 1		Level 2		Level 3		Total
	(in millions)
Assets
Cash equivalents	$	20	$	2,287	$	—	$	2,307
Available-for-Sale securities:
Corporate debt securities		—		16,685		1,355		18,040
Residential mortgage backed securities		—		7,198		198		7,396
Commercial mortgage backed securities		—		4,669		50		4,719
Asset backed securities		—		1,779		206		1,985
State and municipal obligations		—		2,130		—		2,130
U.S. government and agencies obligations		22		49		—		71
Foreign government bonds and obligations		—		144		—		144
Common stocks		2		2		5		9
Other debt obligations		—		11		—		11
Total Available-for-Sale securities		24		32,667		1,814		34,505
Trading securities		1		30		—		31
Separate account assets		—		66,780		—		66,780
Investments segregated for regulatory purposes		—		293		—		293
Other assets:
Interest rate derivative contracts		—		1,958		—		1,958
Equity derivative contracts		274		1,077		—		1,351
Credit derivative contracts		—		1		—		1
Foreign currency derivative contracts		—		7		—		7
Commodity derivative contracts		—		2		—		2
Total other assets		274		3,045		—		3,319
Total assets at fair value	$	319	$	105,102	$	1,814	$	107,235
Liabilities
Future policy benefits and claims:
EIA embedded derivatives	$	—	$	2	$	—	$	2
IUL embedded derivatives		—		3		—		3
GMWB and GMAB embedded derivatives		—		—		1,585		1,585
Total future policy benefits and claims		—		5		1,585		1,590	(1)
Customer deposits		—		6		—		6
Other liabilities:
Interest rate derivative contracts		—		1,209		—		1,209
Equity derivative contracts		297		764		—		1,061
Foreign currency derivative contracts		3		10		—		13
Other		—		2		—		2
Total other liabilities		300		1,985		—		2,285
Total liabilities at fair value	$	300	$	1,996	$	1,585	$	3,881

(1)

The Company's adjustment for nonperformance risk resulted in a $506 million cumulative decrease to the embedded derivative liability.

	December 31, 2010
	Level 1		Level 2		Level 3		Total
	(in millions)
Assets
Cash equivalents	$	42	$	2,481	$	—	$	2,523
Available-for-Sale securities:
Corporate debt securities		—		15,281		1,325		16,606
Residential mortgage backed securities		—		3,011		4,247		7,258
Commercial mortgage backed securities		—		4,817		51		4,868
Asset backed securities		—		1,544		476		2,020
State and municipal obligations		—		1,582		—		1,582
U.S. government and agencies obligations		64		79		—		143
Foreign government bonds and obligations		—		108		—		108
Common stocks		2		3		5		10
Other debt obligations		—		24		—		24
Total Available-for-Sale securities		66		26,449		6,104		32,619
Trading securities		—		43		—		43
Separate account assets		—		68,330		—		68,330
Investments segregated for regulatory purposes		—		298		—		298
Other assets:
Interest rate derivative contracts		—		438		—		438
Equity derivative contracts		32		420		—		452
Credit derivative contracts		—		4		—		4
Foreign currency derivative contracts		1		—		—		1
Other		—		2		—		2
Total other assets		33		864		—		897
Assets held for sale		—		15		—		15
Total assets at fair value	$	141	$	98,480	$	6,104	$	104,725
Liabilities
Future policy benefits and claims:
EIA embedded derivatives	$	—	$	3	$	—	$	3
GMWB and GMAB embedded derivatives		—		—		421		421
Total future policy benefits and claims		—		3		421		424	(1)
Customer deposits		—		14		—		14
Other liabilities:
Interest rate derivative contracts		—		379		—		379
Equity derivative contracts		18		722		—		740
Credit derivative contracts		—		1		—		1
Foreign currency derivative contracts		1		—		—		1
Other		—		2		—		2
Total other liabilities		19		1,104		—		1,123
Total liabilities at fair value	$	19	$	1,121	$	421	$	1,561

(1)

The Company's adjustment for nonperformance risk resulted in a $197 million cumulative decrease to the embedded derivative liability.

Schedule of changes in level 3 assets and liabilities measured at fair value on a recurring basis

	Available-for-Sale Securities																	Future Policy Benefits and Claims: GMWB and GMAB Embedded Derivatives
	Corporate Debt Securities			Residential Mortgage Backed Securities			Commercial Mortgage Backed Securities			Asset Backed Securities			Common Stocks		Total
	(in millions)
Balance, January 1, 2011	$	1,325		$	4,247		$	51		$	476		$	5	$	6,104		$	(421	)
Total gains (losses) included in:
Net income		7			48			—			8			—		63	(1)		(1,007)	(2)
Other comprehensive income		11			(110	)		—			(18	)		—		(117	)		—
Purchases		189			556			104			118			—		967			—
Sales		(51	)		(2	)		—			—			—		(53	)		—
Issues		—			—			—			—			—		—			(149	)
Settlements		(122	)		(885	)		(4	)		(87	)		—		(1,098	)		(8	)
Transfers into Level 3		7			—			1			14			—		22			—
Transfers out of Level 3		(11	)		(3,656	)		(102	)		(305	)		—		(4,074	)		—
Balance, December 31, 2011	$	1,355		$	198		$	50		$	206		$	5	$	1,814		$	(1,585	)
Changes in unrealized gains (losses) relating to assets and liabilities held at December 31, 2011 included in:
Net investment income	$	—		$	(32	)	$	—		$	1		$	—	$	(31	)	$	—
Benefits, claims, losses and settlement expenses		—			—			—			—			—		—			(1,035	)

(1)

Included in net investment income in the Consolidated Statements of Operations.

(2)

Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Operations.

	Available-for-Sale Securities																			Future Policy Benefits and Claims: GMWB and GMAB Embedded Derivatives
	Corporate Debt Securities		Residential Mortgage Backed Securities			Commercial Mortgage Backed Securities			Asset Backed Securities			Common Stocks		Other Structured Investments			Total
	(in millions)
Balance, January 1, 2010	$	1,252	$	3,982		$	72		$	455		$	4	$	58		$	5,823		$	(299	)
Total gains included in:
Net income		1		55			1			12			—		—			69	(1)		4	(2)
Other comprehensive income		30		292			10			38			1		—			371			—
Purchases, sales, issues and settlements, net		17		(61	)		112			(5	)		—		(58)	(3)		5			(126	)
Transfers into Level 3		25		—			—			—			—		—			25			—
Transfers out of Level 3		—		(21	)		(144	)		(24	)		—		—			(189	)		—
Balance, December 31, 2010	$	1,325	$	4,247		$	51		$	476		$	5	$	—		$	6,104		$	(421	)
Changes in unrealized gains (losses) relating to assets and liabilities held at December 31, 2010 included in:
Net investment income	$	—	$	54		$	—		$	11		$	—	$	—		$	65		$	—
Benefits, claims, losses and settlement expenses		—		—			—			—			—		—			—			(15	)

(1)

Included in net investment income in the Consolidated Statements of Operations.

(2)

Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Operations.

(3)

Represents the elimination of Ameriprise Financial's investment in CDOs, which were consolidated due to the adoption of a new accounting standard. See Note 2 and Note 4 for additional information related to the consolidation of CDOs.

Schedule of carrying value and estimated fair value of financial instruments

	December 31, 2011				December 31, 2010
	Carrying Value		Fair Value		Carrying Value		Fair Value
	(in millions)
Financial Assets
Commercial mortgage loans, net	$	2,589	$	2,772	$	2,577	$	2,671
Policy loans		742		715		733		808
Receivables		2,444		2,148		1,852		1,566
Restricted and segregated cash		1,500		1,500		1,516		1,516
Assets held for sale		—		—		18		18
Other investments and assets		390		388		331		338
Financial Liabilities
Future policy benefits and claims	$	15,064	$	16,116	$	15,328	$	15,768
Investment certificate reserves		2,766		2,752		3,127		3,129
Banking and brokerage customer deposits		7,078		7,091		5,638		5,642
Separate account liabilities		3,950		3,950		4,930		4,930
Debt and other liabilities		3,180		3,412		2,722		2,919

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Income Taxes (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2010	Sep. 30, 2010	Jun. 30, 2010	Mar. 31, 2010	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Current income tax:
Federal									$ 250	$ (224)	$ 200
State and local									21	13	4
Foreign									23	32	4
Total current income tax									294	(179)	208
Deferred income tax:
Federal									68	540	(13)
State and local									1	(5)	(7)
Foreign									(8)	(6)	(4)
Total deferred income tax									61	513	(24)
Total income tax provision (benefit)									355	350	184
Geographic sources of pretax income (loss)
United States									1,288	1,470	883
Foreign									97	164	37
Income from continuing operations before income tax provision	352	247	399	387	368	446	462	358	1,385	1,634	920
Reconciliation of the income tax provision
Tax at U.S. statutory rate (as a percent)									35.00%	35.00%	35.00%
Changes in taxes resulting from:
Dividend exclusion (as a percent)									(8.90%)	(4.10%)	(7.60%)
Tax-exempt interest income (as a percent)									(1.30%)	(1.00%)	(1.30%)
Tax credits (as a percent)									(3.40%)	(2.50%)	(5.80%)
State taxes, net of federal benefit (as a percent)									1.00%	0.20%	(0.40%)
Net income (loss) attributable to noncontrolling interests (as a percent)									2.70%	(3.40%)	(0.60%)
Other, net (as a percent)									0.50%	(2.70%)	0.70%
Income tax provision (as a percent)									25.60%	21.50%	20.00%
Benefits related to tax planning and completion of certain audits										53
Accumulated earnings of foreign subsidiaries									89
Aggregate U.S. federal taxes not provided on earnings of foreign subsidiaries									$ 9

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Consolidated Statements of Equity (USD $) In Millions, except Share data, unless otherwise specified	Total	Common Shares	Additional Paid-In Capital	Retained Earnings	Appropriated Retained Earnings of Consolidated Investment Entities	Treasury Shares	Accumulated Other Comprehensive Income (Loss)	Non-controlling Interests	Comprehensive Income
Balances at Dec. 31, 2008	$ 6,463	$ 3	$ 4,688	$ 4,586		$ (2,012)	$ (1,091)	$ 289
Balances (in shares) at Dec. 31, 2008		216,510,699
Increase (Decrease) in Stockholders' Equity
Change in accounting principles, net of tax				132			(132)
Comprehensive income:
Net income (loss)	737			722				15	737
Other comprehensive income, net of tax:
Change in net unrealized securities gains (losses)	1,354						1,354		1,354
Change in noncredit related impairments on securities and net unrealized securities losses on previously impaired securities	49						49		49
Change in net unrealized derivatives gains (losses)	11						11		11
Change in defined benefit plans	19						19		19
Foreign currency translation adjustment	77						55	22	77
Total comprehensive income	2,247								2,247
Issuance of common stock	869		869
Issuance of common stock (in shares)	36,000,000	36,000,000
Dividends to shareholders	(164)			(164)
Noncontrolling interests investments in subsidiaries	322							322
Distributions to noncontrolling interests	(45)							(45)
Repurchase of common shares	(11)					(11)
Repurchase of common shares (in shares)		(822,166)
Share-based compensation plans	191		191
Share-based compensation plans (in shares)		3,406,958
Balances at Dec. 31, 2009	9,872	3	5,748	5,276		(2,023)	265	603
Balances (in shares) at Dec. 31, 2009		255,095,491
Increase (Decrease) in Stockholders' Equity
Change in accounting principles, net of tax	473				473
Comprehensive income:
Net income (loss)	1,260			1,097				163	1,260
Net income (loss) reclassified to appropriated retained earnings					85			(85)
Other comprehensive income, net of tax:
Change in net unrealized securities gains (losses)	288						288		288
Change in noncredit related impairments on securities and net unrealized securities losses on previously impaired securities	17						17		17
Change in net unrealized derivatives gains (losses)	15						15		15
Change in defined benefit plans	(4)						(4)		(4)
Foreign currency translation adjustment	(43)						(16)	(27)	(43)
Total comprehensive income	1,533								1,533
Dividends to shareholders	(183)			(183)
Noncontrolling interests investments in subsidiaries	77							77
Distributions to noncontrolling interests	(171)							(171)
Repurchase of common shares	(597)					(597)
Repurchase of common shares (in shares)		(13,924,062)
Share-based compensation plans	281		281
Share-based compensation plans (in shares)		5,526,463
Balances at Dec. 31, 2010	11,285	3	6,029	6,190	558	(2,620)	565	560
Balances (in shares) at Dec. 31, 2010		246,697,892
Comprehensive income:
Net income (loss)	970			1,076				(106)	970
Net income (loss) reclassified to appropriated retained earnings					(130)			130
Other comprehensive income, net of tax:
Change in net unrealized securities gains (losses)	164						164		164
Change in noncredit related impairments on securities and net unrealized securities losses on previously impaired securities	(9)						(9)		(9)
Change in net unrealized derivatives gains (losses)	(29)						(29)		(29)
Change in defined benefit plans	(51)						(51)		(51)
Foreign currency translation adjustment	(10)						(2)	(8)	(10)
Total comprehensive income	1,035								1,035
Dividends to shareholders	(274)			(274)
Noncontrolling interests investments in subsidiaries	155							155
Distributions to noncontrolling interests	(54)							(54)
Repurchase of common shares	(1,495)					(1,495)
Repurchase of common shares (in shares)		(28,812,873)
Share-based compensation plans	309		208	(9)		81		29
Share-based compensation plans (in shares)		4,057,964
Balances at Dec. 31, 2011	$ 10,961	$ 3	$ 6,237	$ 6,983	$ 428	$ (4,034)	$ 638	$ 706
Balances (in shares) at Dec. 31, 2011		221,942,983

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Earnings per Share Attributable to Ameriprise Financial, Inc. Common Shareholders (Details) (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2010	Sep. 30, 2010	Jun. 30, 2010	Mar. 31, 2010	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Numerator:
Income from continuing operations.	$ 285	$ 166	$ 285	$ 294	$ 280	$ 314	$ 396	$ 294	$ 1,030	$ 1,284	$ 736
Less: Net income (loss) attributable to noncontrolling interests	45	(105)	(28)	(18)	(26)	(32)	139	82	(106)	163	15
Income from continuing operations attributable to Ameriprise Financial									1,136	1,121	721
Income (loss) from discontinued operations, net of tax	13	2	(4)	(71)	(26)	(2)	2	2	(60)	(24)	1
Net income attributable to Ameriprise Financial	$ 253	$ 273	$ 309	$ 241	$ 280	$ 344	$ 259	$ 214	$ 1,076	$ 1,097	$ 722
Denominator:
Basic: Weighted-average common shares outstanding (in shares)	230.6	238.0	245.5	251.6	252.7	255.3	261.1	260.8	241.4	257.4	242.2
Effect of potentially dilutive nonqualified stock options and other share-based awards (in shares)									4.9	4.9	2.2
Diluted: Weighted-average common shares outstanding (in shares)	234.5	242.0	251.0	257.7	258.9	259.9	265.3	265.0	246.3	262.3	244.4
Basic
Income from continuing operations (in dollars per share)	$ 1.04	$ 1.14	$ 1.28	$ 1.24	$ 1.21	$ 1.36	$ 0.98	$ 0.81	$ 4.71	$ 4.36	$ 2.98
Income (loss) from discontinued operations (in dollars per share)	$ 0.06	$ 0.01	$ (0.02)	$ (0.28)	$ (0.10)	$ (0.01)	$ 0.01	$ 0.01	$ (0.25)	$ (0.10)
Net income (in dollars per share)	$ 1.10	$ 1.15	$ 1.26	$ 0.96	$ 1.11	$ 1.35	$ 0.99	$ 0.82	$ 4.46	$ 4.26	$ 2.98
Diluted
Income from continuing operations (in dollars per share)	$ 1.02	$ 1.12	$ 1.25	$ 1.21	$ 1.18	$ 1.33	$ 0.97	$ 0.80	$ 4.61	$ 4.27	$ 2.95
Income (loss) from discontinued operations (in dollars per share)	$ 0.06	$ 0.01	$ (0.02)	$ (0.27)	$ (0.10)	$ (0.01)	$ 0.01	$ 0.01	$ (0.24)	$ (0.09)
Net income (in dollars per share)	$ 1.08	$ 1.13	$ 1.23	$ 0.94	$ 1.08	$ 1.32	$ 0.98	$ 0.81	$ 4.37	$ 4.18	$ 2.95

XML

Consolidated Investment Entities (Details) (Consolidated Investment Entities:, USD $)	Dec. 31, 2011	Dec. 31, 2010
Liabilities:
Debt	$ 4,712,000,000	$ 5,171,000,000
Other liabilities	85,000,000	154,000,000
Recurring | Level 1
Assets
Investments:	75,000,000	26,000,000
Total assets at fair value	75,000,000	26,000,000
Recurring | Level 1 | Common Stocks
Assets
Investments:	75,000,000	26,000,000
Recurring | Level 2
Assets
Investments:	4,355,000,000	5,379,000,000
Receivables	39,000,000	33,000,000
Other assets	2,000,000	8,000,000
Total assets at fair value	4,396,000,000	5,420,000,000
Liabilities:
Other liabilities	85,000,000	154,000,000
Total liabilities at fair value	85,000,000	154,000,000
Recurring | Level 2 | Corporate debt securities
Assets
Investments:	314,000,000	418,000,000
Recurring | Level 2 | Common Stocks
Assets
Investments:	25,000,000	53,000,000
Recurring | Level 2 | Other structured investments
Assets
Investments:	54,000,000	39,000,000
Recurring | Level 2 | Syndicated loans
Assets
Investments:	3,962,000,000	4,867,000,000
Recurring | Level 2 | Trading securities
Assets
Investments:		2,000,000
Recurring | Level 3
Assets
Investments:	359,000,000	39,000,000
Other assets	1,108,000,000	887,000,000
Total assets at fair value	1,467,000,000	926,000,000
Liabilities:
Debt	4,712,000,000	5,171,000,000
Total liabilities at fair value	4,712,000,000	5,171,000,000
Recurring | Level 3 | Corporate debt securities
Assets
Investments:	4,000,000	6,000,000
Recurring | Level 3 | Common Stocks
Assets
Investments:	13,000,000	11,000,000
Recurring | Level 3 | Other structured investments
Assets
Investments:		22,000,000
Recurring | Level 3 | Syndicated loans
Assets
Investments:	342,000,000
Recurring | Total
Assets
Investments:	4,789,000,000	5,444,000,000
Receivables	39,000,000	33,000,000
Other assets	1,110,000,000	895,000,000
Total assets at fair value	5,938,000,000	6,372,000,000
Liabilities:
Debt	4,712,000,000	5,171,000,000
Other liabilities	85,000,000	154,000,000
Total liabilities at fair value	4,797,000,000	5,325,000,000
Recurring | Total | Corporate debt securities
Assets
Investments:	318,000,000	424,000,000
Recurring | Total | Common Stocks
Assets
Investments:	113,000,000	90,000,000
Recurring | Total | Other structured investments
Assets
Investments:	54,000,000	61,000,000
Recurring | Total | Syndicated loans
Assets
Investments:	4,304,000,000	4,867,000,000
Recurring | Total | Trading securities
Assets
Investments:		$ 2,000,000

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Retirement Plans and Profit Sharing Arrangements (Details 2) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010
Private real estate investment trust
Defined Benefit Plan, Assets, Target Allocations
Fair Value of Plan Assets		$ 8
Actual return (loss) on plan assets:
Fair value of plan assets at the end of the year		8
Pension Plans
Defined Benefit Plan, Assets, Target Allocations
Equity securities (as a percent)	70.00%
Debt securities (as a percent)	20.00%
Other types of investments (as a percent)	10.00%
Range of the difference between the actual allocation and target allocations (as a percent)	5.00%
Fair Value of Plan Assets	362	327
Summary of changes in Level 3 assets measured at fair value on a recurring basis
Fair value of plan assets at the beginning of the year	327	256
Actual return (loss) on plan assets:
Settlements	(18)	(24)
Fair value of plan assets at the end of the year	362	327
Expected benefit payments to retirees
2012	45
2013	48
2014	49
2015	51
2016	53
2017-2021	250
Expected contribution to pension plans	46
Pension Plans | Private real estate investment trust
Defined Benefit Plan, Assets, Target Allocations
Fair Value of Plan Assets	11	8
Summary of changes in Level 3 assets measured at fair value on a recurring basis
Fair value of plan assets at the beginning of the year	8	5
Actual return (loss) on plan assets:
Relating to assets still held at the reporting date	1	1
Purchase	2
Purchases, sales, and settlements, net		2
Fair value of plan assets at the end of the year	11	8
Pension Plans | Hedge funds
Defined Benefit Plan, Assets, Target Allocations
Fair Value of Plan Assets	12	9
Summary of changes in Level 3 assets measured at fair value on a recurring basis
Fair value of plan assets at the beginning of the year	9
Actual return (loss) on plan assets:
Purchase	11
Sales	(8)
Purchases, sales, and settlements, net		9
Fair value of plan assets at the end of the year	12	9
Pension Plans | Pooled pension funds
Defined Benefit Plan, Assets, Target Allocations
Equity securities (as a percent)	82.00%
Debt securities (as a percent)	14.00%
Other types of investments (as a percent)	4.00%
Range of the difference between the actual allocation and target allocations (as a percent)	5.00%
Percentage of excess return on pooled pension funds	1.50%
Period to calculate the return on pooled pension funds (in years)	3
Pension Plans | Level 1
Defined Benefit Plan, Assets, Target Allocations
Fair Value of Plan Assets	169	163
Actual return (loss) on plan assets:
Fair value of plan assets at the end of the year	169	163
Pension Plans | Level 1 | U.S. large cap stocks
Defined Benefit Plan, Assets, Target Allocations
Fair Value of Plan Assets	75	72
Actual return (loss) on plan assets:
Fair value of plan assets at the end of the year	75	72
Pension Plans | Level 1 | U.S. small cap stocks
Defined Benefit Plan, Assets, Target Allocations
Fair Value of Plan Assets	38	33
Actual return (loss) on plan assets:
Fair value of plan assets at the end of the year	38	33
Pension Plans | Level 1 | Non-U.S. large cap stocks
Defined Benefit Plan, Assets, Target Allocations
Fair Value of Plan Assets	14	12
Actual return (loss) on plan assets:
Fair value of plan assets at the end of the year	14	12
Pension Plans | Level 1 | Emerging markets
Defined Benefit Plan, Assets, Target Allocations
Fair Value of Plan Assets	10	15
Actual return (loss) on plan assets:
Fair value of plan assets at the end of the year	10	15
Pension Plans | Level 1 | U.S. investment grade bonds
Defined Benefit Plan, Assets, Target Allocations
Fair Value of Plan Assets	17	13
Actual return (loss) on plan assets:
Fair value of plan assets at the end of the year	17	13
Pension Plans | Level 1 | Cash equivalents
Defined Benefit Plan, Assets, Target Allocations
Fair Value of Plan Assets	15	18
Actual return (loss) on plan assets:
Fair value of plan assets at the end of the year	15	18
Pension Plans | Level 2
Defined Benefit Plan, Assets, Target Allocations
Fair Value of Plan Assets	170	147
Actual return (loss) on plan assets:
Fair value of plan assets at the end of the year	170	147
Pension Plans | Level 2 | U.S. large cap stocks
Defined Benefit Plan, Assets, Target Allocations
Fair Value of Plan Assets	9	3
Actual return (loss) on plan assets:
Fair value of plan assets at the end of the year	9	3
Pension Plans | Level 2 | U.S. small cap stocks
Defined Benefit Plan, Assets, Target Allocations
Fair Value of Plan Assets	1	1
Actual return (loss) on plan assets:
Fair value of plan assets at the end of the year	1	1
Pension Plans | Level 2 | Non-U.S. large cap stocks
Defined Benefit Plan, Assets, Target Allocations
Fair Value of Plan Assets	23	18
Actual return (loss) on plan assets:
Fair value of plan assets at the end of the year	23	18
Pension Plans | Level 2 | Emerging markets
Defined Benefit Plan, Assets, Target Allocations
Fair Value of Plan Assets	15	14
Actual return (loss) on plan assets:
Fair value of plan assets at the end of the year	15	14
Pension Plans | Level 2 | U.S. investment grade bonds
Defined Benefit Plan, Assets, Target Allocations
Fair Value of Plan Assets	15	9
Actual return (loss) on plan assets:
Fair value of plan assets at the end of the year	15	9
Pension Plans | Level 2 | U. S. high yield bonds
Defined Benefit Plan, Assets, Target Allocations
Fair Value of Plan Assets	11	11
Actual return (loss) on plan assets:
Fair value of plan assets at the end of the year	11	11
Pension Plans | Level 2 | Foreign government bonds and obligations
Defined Benefit Plan, Assets, Target Allocations
Fair Value of Plan Assets	16	12
Actual return (loss) on plan assets:
Fair value of plan assets at the end of the year	16	12
Pension Plans | Level 2 | Pooled pension funds
Defined Benefit Plan, Assets, Target Allocations
Fair Value of Plan Assets	80	79
Actual return (loss) on plan assets:
Fair value of plan assets at the end of the year	80	79
Pension Plans | Level 3
Defined Benefit Plan, Assets, Target Allocations
Fair Value of Plan Assets	23	17
Actual return (loss) on plan assets:
Fair value of plan assets at the end of the year	23	17
Pension Plans | Level 3 | Private real estate investment trust
Defined Benefit Plan, Assets, Target Allocations
Fair Value of Plan Assets	11	8
Actual return (loss) on plan assets:
Fair value of plan assets at the end of the year	11	8
Pension Plans | Level 3 | Hedge funds
Defined Benefit Plan, Assets, Target Allocations
Fair Value of Plan Assets	12	9
Actual return (loss) on plan assets:
Fair value of plan assets at the end of the year	12	9
Pension Plans | Total
Defined Benefit Plan, Assets, Target Allocations
Fair Value of Plan Assets	362	327
Actual return (loss) on plan assets:
Fair value of plan assets at the end of the year	362	327
Pension Plans | Total | U.S. large cap stocks
Defined Benefit Plan, Assets, Target Allocations
Fair Value of Plan Assets	84	75
Actual return (loss) on plan assets:
Fair value of plan assets at the end of the year	84	75
Pension Plans | Total | U.S. small cap stocks
Defined Benefit Plan, Assets, Target Allocations
Fair Value of Plan Assets	39	34
Actual return (loss) on plan assets:
Fair value of plan assets at the end of the year	39	34
Pension Plans | Total | Non-U.S. large cap stocks
Defined Benefit Plan, Assets, Target Allocations
Fair Value of Plan Assets	37	30
Actual return (loss) on plan assets:
Fair value of plan assets at the end of the year	37	30
Pension Plans | Total | Emerging markets
Defined Benefit Plan, Assets, Target Allocations
Fair Value of Plan Assets	25	29
Actual return (loss) on plan assets:
Fair value of plan assets at the end of the year	25	29
Pension Plans | Total | U.S. investment grade bonds
Defined Benefit Plan, Assets, Target Allocations
Fair Value of Plan Assets	32	22
Actual return (loss) on plan assets:
Fair value of plan assets at the end of the year	32	22
Pension Plans | Total | U. S. high yield bonds
Defined Benefit Plan, Assets, Target Allocations
Fair Value of Plan Assets	11	11
Actual return (loss) on plan assets:
Fair value of plan assets at the end of the year	11	11
Pension Plans | Total | Foreign government bonds and obligations
Defined Benefit Plan, Assets, Target Allocations
Fair Value of Plan Assets	16	12
Actual return (loss) on plan assets:
Fair value of plan assets at the end of the year	16	12
Pension Plans | Total | Private real estate investment trust
Defined Benefit Plan, Assets, Target Allocations
Fair Value of Plan Assets	11	8
Actual return (loss) on plan assets:
Fair value of plan assets at the end of the year	11	8
Pension Plans | Total | Hedge funds
Defined Benefit Plan, Assets, Target Allocations
Fair Value of Plan Assets	12	9
Actual return (loss) on plan assets:
Fair value of plan assets at the end of the year	12	9
Pension Plans | Total | Pooled pension funds
Defined Benefit Plan, Assets, Target Allocations
Fair Value of Plan Assets	80	79
Actual return (loss) on plan assets:
Fair value of plan assets at the end of the year	80	79
Pension Plans | Total | Cash equivalents
Defined Benefit Plan, Assets, Target Allocations
Fair Value of Plan Assets	15	18
Actual return (loss) on plan assets:
Fair value of plan assets at the end of the year	15	18
Other Postretirement Benefits
Expected benefit payments to retirees
2012	2
2013	2
2014	2
2015	1
2016	1
2017-2021	7
Expected contribution to pension plans	$ 2

XML

Consolidated Investment Entities (Tables)

12 Months Ended

Dec. 31, 2011

Consolidated Investment Entities.

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

	December 31, 2011
	Level 1		Level 2		Level 3		Total
	(in millions)
Assets
Investments:
Corporate debt securities	$	—	$	314	$	4	$	318
Common stocks		75		25		13		113
Other structured investments		—		54		—		54
Syndicated loans		—		3,962		342		4,304
Total investments		75		4,355		359		4,789
Receivables		—		39		—		39
Other assets		—		2		1,108		1,110
Total assets at fair value	$	75	$	4,396	$	1,467	$	5,938
Liabilities
Debt	$	—	$	—	$	4,712	$	4,712
Other liabilities		—		85		—		85
Total liabilities at fair value	$	—	$	85	$	4,712	$	4,797

	December 31, 2010
	Level 1		Level 2		Level 3		Total
	(in millions)
Assets
Investments:
Corporate debt securities	$	—	$	418	$	6	$	424
Common stocks		26		53		11		90
Other structured investments		—		39		22		61
Syndicated loans		—		4,867		—		4,867
Trading securities		—		2		—		2
Total investments		26		5,379		39		5,444
Receivables		—		33		—		33
Other assets		—		8		887		895
Total assets at fair value	$	26	$	5,420	$	926	$	6,372
Liabilities
Debt	$	—	$	—	$	5,171	$	5,171
Other liabilities		—		154		—		154
Total liabilities at fair value	$	—	$	154	$	5,171	$	5,325

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

	Corporate Debt Securities			Common Stocks			Other Structured Investments			Syndicated Loans			Other Assets			Debt
	(in millions)
Balance, January 1, 2011	$	6		$	11		$	22		$	—		$	887		$	(5,171	)
Total gains (losses) included in:
Net income		—			6	(1)		(1)	(1)		(12)	(1)		13	(2)		(89)	(1)
Other comprehensive income		—			—			—			—			(10	)		—
Purchases		3			—			3			208			299			—
Sales		(2	)		(4	)		—			(40	)		(81	)		—
Issues		—			—			—			—			—			(27	)
Settlements		(1	)		—			—			(137	)		1			575
Transfers into Level 3		—			29			—			615			7			—
Transfers out of Level 3		(2	)		(29	)		(24	)		(292	)		(8	)		—
Balance, December 31, 2011	$	4		$	13		$	—		$	342		$	1,108		$	(4,712	)
Changes in unrealized gains (losses) included in income relating to assets and liabilities held at December 31, 2011	$	—		$	3	(1)	$	—		$	(5)	(1)	$	19	(3)	$	(64)	(1)

(1)

Included in net investment income in the Consolidated Statements of Operations.

(2)

Included in other revenues in the Consolidated Statements of Operations.

(3)

Represents a $20 million gain included in other revenues and a $1 million loss included in net investment income in the Consolidated Statements of Operations.

	Corporate Debt Securities			Common Stocks			Other Structured Investments			Other Assets			Debt
	(in millions)
Balance, January 1, 2010	$	—		$	—		$	—		$	831		$	—
Cumulative effect of accounting change		15			—			5			—			(4,962	)
Total gains (losses) included in:
Net income		—			4	(1)		1	(1)		67	(2)		(339)	(1)
Other comprehensive income		—			—			—			(35	)		—
Purchases, sales, issues and settlements, net		(9	)		—			12			24			130
Transfers into Level 3		—			7			4			—			—
Balance, December 31, 2010	$	6		$	11		$	22		$	887		$	(5,171	)
Changes in unrealized gains (losses) included in income relating to assets and liabilities held at December 31, 2010	$	—		$	4	(1)	$	1	(1)	$	40	(3)	$	(339)	(1)

(1)

Included in net investment income in the Consolidated Statements of Operations.

(2)

Represents a $69 million gain included in other revenues and a $2 million loss included in net investment income in the Consolidated Statements of Operations.

(3)

Represents a $42 million gain included in other revenues and a $2 million loss included in net investment income 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

	December 31,
	2011			2010
	(in millions)
Syndicated loans
Unpaid principal balance	$	4,548		$	5,107
Excess estimated unpaid principal over fair value		(244	)		(240	)
Fair value	$	4,304		$	4,867
Fair value of loans more than 90 days past due	$	18		$	71
Fair value of loans in nonaccrual status		18			71
Difference between fair value and unpaid principal of loans more than 90 days past due, loans in nonaccrual status or both		16			62
Debt
Unpaid principal balance	$	5,335		$	5,893
Excess estimated unpaid principal over fair value		(623	)		(722	)
Fair value	$	4,712		$	5,171

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

	Carrying Value				Weighted Average Interest Rate
	December 31,				December 31,
	2011		2010		2011			2010
	(in millions)
Debt of consolidated CDOs due 2012-2021	$	4,712	$	5,171		0.9	%		1.0	%
Floating rate revolving credit borrowings due 2014		378		329		3.2			2.9
Floating rate revolving credit borrowings due 2015		88		35		3.0			2.7
Total	$	5,178	$	5,535

Schedule of future maturities of debt of consolidated investment entities

	(in millions)
2012	$	—
2013		17
2014		378
2015		88
2016		1,097
Thereafter		4,221
Total future maturities	$	5,801

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Investments (Details 3) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Balance of Credit Losses Impairment Recognized in Other Comprehensive Income
Beginning balance	$ 297	$ 263	$ 258
Credit losses for which other-than-temporary impairment was not previously recognized	15	15	8
Credit losses for which other-than-temporary impairment was previously recognized	19	19	57
Reductions for securities sold during the period (realized)	(28)		(60)
Ending balance	303	297	263
Ameriprise Financial
Available-for-sale securities, Continuous unrealized loss position, Qualitative disclosure, Less than twelve months, Number of positions	298	488
Available-for-sale securities, Continuous unrealized loss position, Less than twelve months, Fair value	3,669	4,189
Available-for-sale securities, Continuous unrealized loss position, Less than twelve months, Unrealized losses	(87)	(104)
Available-for-sale securities, Continuous unrealized loss position, Qualitative disclosure, Twelve months or longer, Number of positions	242	232
Available-for-sale securities, Continuous unrealized loss position, Twelve months or longer, Fair value	1,389	1,247
Available-for-sale securities, Continuous unrealized loss position, Twelve months or more, Unrealized losses	(430)	(430)
Available-for-sale securities, Continuous unrealized loss position, Qualitative disclosure, Number of positions	540	720
Available-for-sale securities, Continuous unrealized loss position, Fair value	5,058	5,436
Available-for-sale securities, Continuous unrealized loss position, Unrealized losses	(517)	(534)
Corporate debt securities | Ameriprise Financial
Available-for-sale securities, Continuous unrealized loss position, Qualitative disclosure, Less than twelve months, Number of positions	124	115
Available-for-sale securities, Continuous unrealized loss position, Less than twelve months, Fair value	1,647	1,859
Available-for-sale securities, Continuous unrealized loss position, Less than twelve months, Unrealized losses	(40)	(46)
Available-for-sale securities, Continuous unrealized loss position, Qualitative disclosure, Twelve months or longer, Number of positions	10	13
Available-for-sale securities, Continuous unrealized loss position, Twelve months or longer, Fair value	259	157
Available-for-sale securities, Continuous unrealized loss position, Twelve months or more, Unrealized losses	(41)	(12)
Available-for-sale securities, Continuous unrealized loss position, Qualitative disclosure, Number of positions	134	128
Available-for-sale securities, Continuous unrealized loss position, Fair value	1,906	2,016
Available-for-sale securities, Continuous unrealized loss position, Unrealized losses	(81)	(58)
Residential mortgage backed securities | Ameriprise Financial
Available-for-sale securities, Continuous unrealized loss position, Qualitative disclosure, Less than twelve months, Number of positions	105	108
Available-for-sale securities, Continuous unrealized loss position, Less than twelve months, Fair value	1,269	782
Available-for-sale securities, Continuous unrealized loss position, Less than twelve months, Unrealized losses	(33)	(12)
Available-for-sale securities, Continuous unrealized loss position, Qualitative disclosure, Twelve months or longer, Number of positions	141	133
Available-for-sale securities, Continuous unrealized loss position, Twelve months or longer, Fair value	717	712
Available-for-sale securities, Continuous unrealized loss position, Twelve months or more, Unrealized losses	(298)	(311)
Available-for-sale securities, Continuous unrealized loss position, Qualitative disclosure, Number of positions	246	241
Available-for-sale securities, Continuous unrealized loss position, Fair value	1,986	1,494
Available-for-sale securities, Continuous unrealized loss position, Unrealized losses	(331)	(323)
Commercial mortgage backed securities | Ameriprise Financial
Available-for-sale securities, Continuous unrealized loss position, Qualitative disclosure, Less than twelve months, Number of positions	14	30
Available-for-sale securities, Continuous unrealized loss position, Less than twelve months, Fair value	182	498
Available-for-sale securities, Continuous unrealized loss position, Less than twelve months, Unrealized losses	(2)	(7)
Available-for-sale securities, Continuous unrealized loss position, Qualitative disclosure, Twelve months or longer, Number of positions	5	1
Available-for-sale securities, Continuous unrealized loss position, Twelve months or longer, Fair value	29	23
Available-for-sale securities, Continuous unrealized loss position, Twelve months or more, Unrealized losses		(1)
Available-for-sale securities, Continuous unrealized loss position, Qualitative disclosure, Number of positions	19	31
Available-for-sale securities, Continuous unrealized loss position, Fair value	211	521
Available-for-sale securities, Continuous unrealized loss position, Unrealized losses	(2)	(8)
Asset backed securities | Ameriprise Financial
Available-for-sale securities, Continuous unrealized loss position, Qualitative disclosure, Less than twelve months, Number of positions	49	29
Available-for-sale securities, Continuous unrealized loss position, Less than twelve months, Fair value	543	354
Available-for-sale securities, Continuous unrealized loss position, Less than twelve months, Unrealized losses	(11)	(8)
Available-for-sale securities, Continuous unrealized loss position, Qualitative disclosure, Twelve months or longer, Number of positions	33	25
Available-for-sale securities, Continuous unrealized loss position, Twelve months or longer, Fair value	155	123
Available-for-sale securities, Continuous unrealized loss position, Twelve months or more, Unrealized losses	(33)	(32)
Available-for-sale securities, Continuous unrealized loss position, Qualitative disclosure, Number of positions	82	54
Available-for-sale securities, Continuous unrealized loss position, Fair value	698	477
Available-for-sale securities, Continuous unrealized loss position, Unrealized losses	(44)	(40)
State and municipal obligations | Ameriprise Financial
Available-for-sale securities, Continuous unrealized loss position, Qualitative disclosure, Less than twelve months, Number of positions		206
Available-for-sale securities, Continuous unrealized loss position, Less than twelve months, Fair value		696
Available-for-sale securities, Continuous unrealized loss position, Less than twelve months, Unrealized losses		(31)
Available-for-sale securities, Continuous unrealized loss position, Qualitative disclosure, Twelve months or longer, Number of positions	53	60
Available-for-sale securities, Continuous unrealized loss position, Twelve months or longer, Fair value	229	232
Available-for-sale securities, Continuous unrealized loss position, Twelve months or more, Unrealized losses	(58)	(74)
Available-for-sale securities, Continuous unrealized loss position, Qualitative disclosure, Number of positions	53	266
Available-for-sale securities, Continuous unrealized loss position, Fair value	229	928
Available-for-sale securities, Continuous unrealized loss position, Unrealized losses	(58)	(105)
Foreign government bonds and obligations | Ameriprise Financial
Available-for-sale securities, Continuous unrealized loss position, Qualitative disclosure, Less than twelve months, Number of positions	6
Available-for-sale securities, Continuous unrealized loss position, Less than twelve months, Fair value	28
Available-for-sale securities, Continuous unrealized loss position, Less than twelve months, Unrealized losses	(1)
Available-for-sale securities, Continuous unrealized loss position, Qualitative disclosure, Number of positions	6
Available-for-sale securities, Continuous unrealized loss position, Fair value	28
Available-for-sale securities, Continuous unrealized loss position, Unrealized losses	$ (1)

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Share-Based Compensation

12 Months Ended

Dec. 31, 2011

Share-Based Compensation.

Share-Based Compensation

16. Share-Based Compensation

The Company's share-based compensation plans consist of the Amended and Restated Ameriprise Financial 2005 Incentive Compensation Plan (the "2005 ICP"), the Ameriprise Financial 2008 Employment Incentive Equity Award Plan (the "2008 Plan"), the Franchise Advisor Deferral Plan, and the Ameriprise Advisor Group Deferred Compensation Plan ("Employee Advisor Deferral Plan").

The components of the Company's share-based compensation expense, net of forfeitures, were as follows:

	Years Ended December 31,
	2011			2010		2009
	(in millions)
Stock options	$	43		$	41	$	53
Restricted stock awards		50	(1)		37		59
Restricted stock units		52			80		70
Liability awards		13			40		(4	)
Total	$	158		$	198	$	178

(1)

Includes $19 million of expense related to the Threadneedle equity incentive plan.

For the years ended December 31, 2011, 2010 and 2009, total income tax benefit recognized by the Company related to share-based compensation expense was $53 million, $67 million and $63 million, respectively.

As of December 31, 2011, there was $132 million of total unrecognized compensation cost related to non-vested awards under the Company's share-based compensation plans, which is expected to be recognized over a weighted-average period of 2.0 years.

Amended and Restated Ameriprise Financial 2005 Incentive Compensation Plan

The 2005 ICP, which was amended and approved by shareholders on April 28, 2010, provides for the grant of cash and equity incentive awards to directors, employees and independent contractors, including stock options, restricted stock awards, restricted stock units, stock appreciation rights, performance shares and similar awards designed to comply with the applicable federal regulations and laws of jurisdiction. Under the 2005 ICP, a maximum of 37.9 million shares may be issued. Of this total, no more than 6.0 million shares may be issued after April 28, 2010 for full value awards, which are awards other than stock options and stock appreciation rights. Shares issued under the 2005 ICP may be authorized and unissued shares or treasury shares.

Ameriprise Financial Deferred Compensation Plan

The Ameriprise Financial Deferred Compensation Plan ("DCP") gives certain employees the choice to defer a portion of their eligible compensation, which can be invested in investment options as provided by the DCP, including the Ameriprise Financial Stock Fund. The DCP is an unfunded non-qualified deferred compensation plan under section 409A of the Internal Revenue Code. The Company provides a match on certain deferrals. Participant deferrals vest immediately and the Company match vests after three years. Distributions are made in shares of the Company's common stock for the portion of the deferral invested in the Ameriprise Financial Stock Fund and the related Company match, for which the Company has recorded in equity. The DCP does allow for accelerated vesting of the share-based awards in cases of death, disability and qualified retirement. Compensation expense related to the Company match is recognized on a straight-line basis over the vesting period.

Ameriprise Financial 2008 Employment Incentive Equity Award Plan

The 2008 Plan is designed to align new employees' interests with those of the shareholders of the Company and attract and retain new employees. The 2008 Plan provides for the grant of equity incentive awards to new employees who became employees in connection with a merger or acquisition, including stock options, restricted stock awards, restricted stock units, and other equity-based awards designed to comply with the applicable federal and foreign regulations and laws of jurisdiction. Under the 2008 Plan, a maximum of 6.0 million shares may be issued. Awards granted under the 2008 Plan may be settled in cash and/or shares of the Company's common stock according to the award's terms.

Stock Options

Stock options granted have an exercise price not less than 100% of the current fair market value of a share of the Company's common stock on the grant date and a maximum term of 10 years. Stock options granted generally vest ratably over three to four years. Vesting of option awards may be accelerated based on age and length of service. Stock options granted are expensed on a straight-line basis over the option vesting period based on the estimated fair value of the awards on the date of grant using a Black-Scholes option-pricing model.

The following weighted average assumptions were used for stock option grants:

	2011			2010			2009
Dividend yield		1.3	%		1.5	%		2.0	%
Expected volatility		44	%		50	%		55	%
Risk-free interest rate		2.3	%		2.3	%		1.8	%
Expected life of stock option (years)		5.0			5.0			5.0

The dividend yield assumption represents the Company's expected dividend yield based on its historical dividend payouts. The expected volatility is based on the Company's historical and implied volatilities. The risk-free interest rate for periods within the expected option life is based on the U.S. Treasury yield curve at the grant date. The expected life of the option is based on the Company's past experience and other considerations.

The weighted average grant date fair value for options granted during 2011, 2010 and 2009 was $21.38, $15.89 and $8.93, respectively.

A summary of the Company's stock option activity for 2011 is presented below (shares and intrinsic value in millions):

	Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
Outstanding at January 1		19.5		$	35.96		6.7	$	423
Granted		1.8			58.58
Exercised		(2.1	)		30.63
Forfeited		(0.3	)		30.75
Outstanding at December 31		18.9			38.85		5.3		241
Exercisable at December 31		12.1			40.56		5.0		132

The intrinsic value of a stock option is the amount by which the fair value of the underlying stock exceeds the exercise price of the option. The total intrinsic value of options exercised was $58 million, $70 million and $2 million during the years ended December 31, 2011, 2010 and 2009, respectively.

Restricted Stock Awards

Restricted stock awards generally vest ratably over three to four years or at the end of five years. Vesting of restricted stock awards may be accelerated based on age and length of service. Compensation expense for restricted stock awards is based on the market price of Ameriprise Financial stock on the date of grant and is amortized on a straight-line basis over the vesting period. Quarterly dividends are paid on restricted stock, as declared by the Company's Board of Directors, during the vesting period and are not subject to forfeiture.

Certain advisors receive a portion of their compensation in the form of restricted stock awards which are subject to forfeiture based on future service requirements.

A summary of the Company's restricted stock award activity for 2011 is presented below (shares in millions):

	Shares			Weighted Average Grant-date Fair Value
Non-vested shares at January 1		3.6		$	31.08
Granted		0.5			58.68
Vested		(1.0	)		40.36
Forfeited		(0.2	)		32.71
Non-vested shares at December 31		2.9			32.33

The fair value of restricted stock awards vested during the years ended December 31, 2011, 2010 and 2009 was $54 million, $42 million and $27 million, respectively.

Restricted Stock Units

The 2005 ICP provides for the grant of deferred share units to non-employee directors of the Company and restricted stock units to employees. The director awards are fully vested upon issuance. The deferred share units are settled for Ameriprise Financial common stock upon the director's termination of service. The employee awards generally vest ratably over three to four years. Compensation expense for deferred share units and restricted stock units is based on the market price of Ameriprise Financial stock on the date of grant. Restricted stock units granted to employees are amortized on a straight-line basis over the vesting period or on an accelerated basis due to retirement eligibility. Deferred share units granted to non-employee directors are expensed immediately. Restricted stock units include units awarded under the DCP.

As of December 31, 2011, there were approximately 1.4 million units outstanding of restricted stock units, including deferred share units, of which approximately 1.1 million units were fully vested.

Ameriprise Financial Franchise Advisor Deferred Compensation Plan

The Franchise Advisor Deferral Plan, which was amended in January 2011, gives certain advisors the choice to defer a portion of their commissions into share-based awards or other investment options. The Franchise Advisor Deferral Plan is an unfunded non-qualified deferred compensation plan under section 409A of the Internal Revenue Code. Prior to 2011, all deferrals were in the form of share-based awards and the Company provided a match on the advisor deferrals, which participants could elect to receive in cash or shares of common stock. The Company provided a 15% stock match for 2010 and a 25% stock match for 2009 on eligible deferrals.

The Franchise Advisor Deferral Plan allows for the grant of share-based awards of up to 8.5 million shares of common stock. The number of units awarded is based on the performance measures, deferral percentage and the market value of Ameriprise Financial common stock on the deferral date as defined by the plan. Share-based awards made during 2011 are fully vested and are not subject to forfeitures. Share-based awards made prior to 2011 generally vest ratably over four years, beginning on January 1 of the year following the plan year in which the award was made. In addition to the voluntary deferral, certain advisors are eligible for the Franchise Advisor Top Performer Stock Award or the Franchise Consultant Growth Bonus. The Franchise Advisor Top Performer Stock Award allows eligible advisors to earn additional deferred stock awards on commissions over a specified threshold. The awards vest ratably over four years. The Franchise Consultant Growth Bonus allows eligible advisors who coach other advisors the ability to earn a bonus based on the success of the advisors they coach, which can be deferred into the plan. The awards vest ratably over three years. The Franchise Advisor Deferral Plan allows for accelerated vesting of the share-based awards based on age and years as an advisor. Commission expense is recognized on a straight-line basis over the vesting period. However, as franchise advisors are not employees of the Company, the expense is adjusted each period based on the stock price of the Company's common stock up to the vesting date. For the years ended December 31, 2011, 2010 and 2009, expense related to share-based units awarded under the Franchise Advisor Deferral Plan was $38 million, $70 million and $60 million, respectively.

As of December 31, 2011, there were approximately 5.2 million units outstanding under the Franchise Advisor Deferral Plan, of which approximately 4.4 million were fully vested.

Ameriprise Advisor Group Deferred Compensation Plan

The Employee Advisor Deferral Plan, which was created in April 2009, allows for employee advisors to receive share-based bonus awards which are subject to future service requirements and forfeitures. The Employee Advisor Deferral Plan is an unfunded non-qualified deferred compensation plan under section 409A of the Internal Revenue Code. The Employee Advisor Deferral Plan also gives qualifying employee advisors the choice to defer a portion of their base salary or commissions beginning in 2010. This deferral can be in the form of share-based awards or other investment options. Deferrals are not subject to future service requirements or forfeitures. Under the Employee Advisor Deferral Plan, a maximum of 3.0 million shares may be issued. Awards granted under the Employee Advisor Deferral Plan may be settled in cash and/or shares of the Company's common stock according to the award's terms.

As of December 31, 2011, there were approximately 0.3 million units outstanding under the Employee Advisor Deferral Plan, of which nil were fully vested.

Threadneedle Equity Incentive Plan

On an annual basis, certain key Threadneedle employees are eligible for awards under an equity incentive plan ("EIP") based on a formula tied to Threadneedle's financial performance. Awards under the EIP were first made in April 2009; prior awards were made under the equity participation plan ("EPP"). In 2011, Threadneedle's articles of incorporation were amended to create a new class of Threadneedle corporate units to be granted under a modified EIP plan. Employees who held EIP units granted prior to 2011 were given the choice to exchange their existing units at the exchange date. EIP awards may be settled in cash or Threadneedle corporate units according to the award's terms. For awards granted prior to 2011, the EIP provides for 100% vesting after three years, with a mandatory call after six years. For converted units and awards granted after February 2011, the EIP provides for 100% vesting after two and a half years, with no mandatory call date. Converted units and units granted after February 2011 have dividend rights once fully vested. The EPP provides for 50% vesting after three years and 50% vesting after four years, with required cash-out after five years. EIP and EPP awards are subject to forfeitures based on future service requirements.

The value of the awards is recognized as compensation expense evenly over the vesting periods. Generally, the expense is based on the grant date fair value of the awards as determined by an annual independent valuation of Threadneedle's fair market value; however, for awards accounted for as a liability the expense is adjusted to reflect Threadneedle's current calculated value (the change in the value of the awards is recognized immediately for vested awards and over the remaining vesting period for unvested awards). During the years ended December 31, 2011, 2010 and 2009, cash settlements of EPP and EIP awards were $14 million, $18 million and $5 million, respectively.

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Investments (Tables)

12 Months Ended

Dec. 31, 2011

Investments.

Investment Holdings Disclosure

	December 31,
	2011		2010
	(in millions)
Available-for-Sale securities, at fair value	$	34,505	$	32,619
Commercial mortgage loans, net		2,589		2,577
Policy loans		742		733
Other investments		939		826
Total	$	38,775	$	36,755

Summary of net investment income

	Year Ended December 31,
	2011			2010			2009
	(in millions)
Investment income on fixed maturities	$	1,881		$	1,920		$	1,878
Net realized gains		6			33			53
Affordable housing partnerships		(32	)		(20	)		(25	)
Other		100			101			90
Consolidated investment entities		91			275			2
Total net investment income	$	2,046		$	2,309		$	1,998

Available-for-Sale Securities Disclosure

	December 31, 2011
Description of Securities	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Noncredit OTTI(1)
	(in millions)
Corporate debt securities	$	16,380	$	1,741	$	(81	)	$	18,040	$	—
Residential mortgage backed securities		7,440		287		(331	)		7,396		(139	)
Commercial mortgage backed securities		4,430		291		(2	)		4,719		—
Asset backed securities		1,968		61		(44	)		1,985		(15	)
State and municipal obligations		2,026		162		(58	)		2,130		—
U.S. government and agencies obligations		61		10		—			71		—
Foreign government bonds and obligations		126		19		(1	)		144		—
Common stocks		5		4		—			9		—
Other debt obligations		11		—		—			11		—
Total	$	32,447	$	2,575	$	(517	)	$	34,505	$	(154	)

	December 31, 2010
Description of Securities	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Noncredit OTTI(1)
	(in millions)
Corporate debt securities	$	15,433	$	1,231	$	(58	)	$	16,606	$	—
Residential mortgage backed securities		7,213		368		(323	)		7,258		(117	)
Commercial mortgage backed securities		4,583		293		(8	)		4,868		—
Asset backed securities		1,982		78		(40	)		2,020		(16	)
State and municipal obligations		1,666		21		(105	)		1,582		—
U.S. government and agencies obligations		135		8		—			143		—
Foreign government bonds and obligations		91		17		—			108		—
Common stocks		6		4		—			10		—
Other debt obligations		24		—		—			24		—
Total	$	31,133	$	2,020	$	(534	)	$	32,619	$	(133	)

(1)

Represents the amount of other-than-temporary impairment losses in accumulated other comprehensive income. Amount includes unrealized gains and losses on impaired securities subsequent to the initial impairment measurement date. These amounts are included in gross unrealized gains and losses as of the end of the period.

Investments with Fixed Maturities Disclosure

	December 31, 2011							December 31, 2010
Ratings	Amortized Cost		Fair Value		Percent of Total Fair Value			Amortized Cost		Fair Value		Percent of Total Fair Value
	(in millions, except percentages)
AAA	$	11,510	$	12,105		35	%	$	12,142	$	12,809		39	%
AA		1,942		2,087		6			1,843		1,899		6
A		5,012		5,442		16			4,449		4,670		14
BBB		11,818		13,050		38			10,536		11,408		35
Below investment grade		2,160		1,812		5			2,157		1,823		6
Total fixed maturities	$	32,442	$	34,496		100	%	$	31,127	$	32,609		100	%

Available-for-Sale Securities Continuous Unrealized Loss Disclosure

	December 31, 2011
	Less than 12 months							12 months or more							Total
Description of Securities	Number of Securities		Fair Value		Unrealized Losses			Number of Securities		Fair Value		Unrealized Losses			Number of Securities		Fair Value		Unrealized Losses
	(in millions, except number of securities)
Corporate debt securities		124	$	1,647	$	(40	)		10	$	259	$	(41	)		134	$	1,906	$	(81	)
Residential mortgage backed securities		105		1,269		(33	)		141		717		(298	)		246		1,986		(331	)
Commercial mortgage backed securities		14		182		(2	)		5		29		—			19		211		(2	)
Asset backed securities		49		543		(11	)		33		155		(33	)		82		698		(44	)
State and municipal obligations		—		—		—			53		229		(58	)		53		229		(58	)
Foreign government bonds and obligations		6		28		(1	)		—		—		—			6		28		(1	)
Total		298	$	3,669	$	(87	)		242	$	1,389	$	(430	)		540	$	5,058	$	(517	)

	December 31, 2010
	Less than 12 months							12 months or more							Total
Description of Securities	Number of Securities		Fair Value		Unrealized Losses			Number of Securities		Fair Value		Unrealized Losses			Number of Securities		Fair Value		Unrealized Losses
	(in millions, except number of securities)
Corporate debt securities		115	$	1,859	$	(46	)		13	$	157	$	(12	)		128	$	2,016	$	(58	)
Residential mortgage backed securities		108		782		(12	)		133		712		(311	)		241		1,494		(323	)
Commercial mortgage backed securities		30		498		(7	)		1		23		(1	)		31		521		(8	)
Asset backed securities		29		354		(8	)		25		123		(32	)		54		477		(40	)
State and municipal obligations		206		696		(31	)		60		232		(74	)		266		928		(105	)
Total		488	$	4,189	$	(104	)		232	$	1,247	$	(430	)		720	$	5,436	$	(534	)

Credit Losses on Available-for-Sale Securities Disclosure

	Years Ended December 31,
	2011			2010		2009
	(in millions)
Beginning balance	$	297		$	263	$	258
Credit losses for which an other-than-temporary impairment was not previously recognized		15			15		8
Credit losses for which an other-than-temporary impairment was previously recognized		19			19		57
Reductions for securities sold during the period (realized)		(28	)		—		(60	)
Ending balance	$	303		$	297	$	263

Other Comprehensive Income Available-for-Sale Securities Disclosure

	Net Unrealized Securities Gains (Losses)			Deferred Income Tax			Accumulated Other Comprehensive Income (Loss) Related to Net Unrealized Securities Gains (Losses)
	(in millions)
Balance at January 1, 2009	$	(1,479	)	$	518		$	(961	)
Cumulative effect of accounting change		(203	)		71			(132	)(1)
Net unrealized securities gains arising during the period(3)		2,792			(977	)		1,815
Reclassification of gains included in net income		(70	)		25			(45	)
Impact of DAC, DSIC, benefit reserves and reinsurance recoverables		(566	)		199			(367	)
Balance at December 31, 2009		474			(164	)		310	(2)
Net unrealized securities gains arising during the period(3)		828			(291	)		537
Reclassification of gains included in net income		(28	)		10			(18	)
Impact of DAC, DSIC, benefit reserves and reinsurance recoverables		(328	)		114			(214	)
Balance at December 31, 2010		946			(331	)		615	(2)
Net unrealized securities gains arising during the period(3)		572			(196	)		376
Impact of DAC, DSIC, benefit reserves and reinsurance recoverables		(340	)		119			(221	)
Balance at December 31, 2011	$	1,178		$	(408	)	$	770	(2)

(1)

Amount represents the cumulative effect of adopting a new accounting standard on January 1, 2009. See Note 3 for additional information on the adoption impact.

(2)

Includes $(75) million, $(66) million and $(84) million of noncredit related impairments on securities and net unrealized securities losses on previously impaired securities at December 31, 2011, 2010 and 2009, respectively.

(3)

Includes other-than-temporary impairment losses on Available-for-Sale securities related to factors other than credit that were recognized in other comprehensive income during the period.

Available-for-Sale Securities Recognized in Earnings Disclosure

	Years Ended December 31,
	2011			2010			2009
	(in millions)
Gross realized gains	$	52		$	72		$	216
Gross realized losses		(18	)		(7	)		(53	)
Other-than-temporary impairments		(34	)		(37	)		(93	)

Available-for-Sale Securities Contractual Maturity Disclosure

	Amortized Cost		Fair Value
	(in millions)
Due within one year	$	975	$	992
Due after one year through five years		6,544		6,783
Due after five years through 10 years		6,408		7,125
Due after 10 years		4,677		5,496
		18,604		20,396
Residential mortgage backed securities		7,440		7,396
Commercial mortgage backed securities		4,430		4,719
Asset backed securities		1,968		1,985
Common stocks		5		9
Total	$	32,447	$	34,505

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Retirement Plans and Profit Sharing Arrangements (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended			2 Months Ended	10 Months Ended	2 Months Ended	10 Months Ended	12 Months Ended
	Dec. 31, 2011 Pension Plans	Dec. 31, 2010 Pension Plans	Dec. 31, 2009 Pension Plans	Feb. 28, 2010 Pension Plans Maximum	Dec. 31, 2010 Pension Plans Maximum	Feb. 28, 2010 Pension Plans Minimum	Dec. 31, 2010 Pension Plans Minimum	Dec. 31, 2011 Other Postretirement Benefits	Dec. 31, 2010 Other Postretirement Benefits	Dec. 31, 2009 Other Postretirement Benefits
Defined Benefit Plan Disclosure
Percentage of Eligible Contribution				10.00%	5.00%	2.50%	2.50%
Yield period of U.S. Treasury Note (in years)	5
Minimum crediting rate (as a percent)	5.00%
Components of Net Periodic Pension Cost
Service cost	$ 38	$ 33	$ 32
Interest cost	23	23	25					1	1
Expected return on plan assets	(26)	(23)	(22)
Amortization of prior service costs	(1)	(2)	(1)
Amortization of net (gain)/loss	1
Other	4	3	3
Net periodic benefit cost	39	34	37							2
Minimum threshold percentage for amortization of actuarial gains and losses	10.00%
Change in benefit obligation
Benefit obligation at beginning of year	469	421						21	22
Service cost	38	33	32
Interest cost	23	23	25					1	1
Benefits paid	(6)	(6)						(5)	(5)
Participant contributions								4	4
Actuarial loss	40	23						(2)	(1)
Settlements	(18)	(24)
Foreign currency rate changes		(1)
Benefit obligation at end of year	546	469	421					19	21	22
Change in fair value of plan assets
Fair value of plan assets at the beginning of the year	327	256
Actual return on plan assets	(12)	39
Employer contributions	72	64
Benefits paid	(6)	(6)						(5)	(5)
Settlements	(18)	(24)
Foreign currency rate changes	(1)	(2)
Fair value of plan assets at the end of the year	362	327	256
Amounts recognized in the Consolidated Balance Sheets
Benefit liability	(189)	(162)
Benefit asset	5	20
Net amount recognized	(184)	(142)
Unrecognized actuarial gain (loss) recognized in accumulated other comprehensive income (loss)	(87)							(7)
Unrecognized prior service credit (cost) recognized in accumulated other comprehensive income (loss)	(5)
Estimated amounts that will be amortized from accumulated other comprehensive income (loss), net of tax, into net periodic benefit cost	1							1
Accumulated benefit obligation for all pension plans	493	423
Plans with accumulated benefit obligations in excess of plan assets:
Accumulated benefit obligation	434	376
Fair value of plan assets	282	248
Plans with projected benefit obligations in excess of plan assets:
Projected benefit obligation	470	410
Fair value of plan assets	$ 282	$ 248
Weighted average assumptions used to determine benefit obligations for pension plans
Discount rates (as a percent)	4.15%	4.75%						4.15%	4.90%
Rates of increase in compensation levels (as a percent)	4.27%	4.25%
Healthcare cost increase rates:
Following year (as a percent)								7.00%	7.50%
Decreasing to the year 2017 (as a percent)								5.00%	5.00%
Weighted average assumptions used to determine net periodic benefit cost for pension plans
Discount rates (as a percent)	4.75%	5.28%	6.22%
Rates of increase in compensation levels (as a percent)	4.25%	4.22%	4.23%
Expected long term rates of return on assets (as a percent)	8.00%	8.00%	8.20%

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Earnings per Share Attributable to Ameriprise Financial, Inc. Common Shareholders

12 Months Ended

Dec. 31, 2011

Earnings per Share Attributable to Ameriprise Financial, Inc. Common Shareholders

Earnings per Share Attributable to Ameriprise Financial, Inc. Common Shareholders

18. Earnings per Share Attributable to Ameriprise Financial, Inc. Common Shareholders

The computations of basic and diluted earnings per share attributable to Ameriprise Financial, Inc. common shareholders are as follows:

	Years Ended December 31,
	2011			2010			2009
	(in millions, except per share amounts)
Numerator:
Income from continuing operations	$	1,030		$	1,284		$	736
Less: Net income (loss) attributable to noncontrolling interests		(106	)		163			15
Income from continuing operations attributable to Ameriprise Financial		1,136			1,121			721
Income (loss) from discontinued operations, net of tax		(60	)		(24	)		1
Net income attributable to Ameriprise Financial	$	1,076		$	1,097		$	722
Denominator:
Basic: Weighted-average common shares outstanding		241.4			257.4			242.2
Effect of potentially dilutive nonqualified stock options
and other share-based awards		4.9			4.9			2.2
Diluted: Weighted-average common shares outstanding		246.3			262.3			244.4
Earnings per share attributable to Ameriprise Financial, Inc. common shareholders:
Basic:
Income from continuing operations	$	4.71		$	4.36		$	2.98
Income (loss) from discontinued operations		(0.25	)		(0.10	)		—
Net income	$	4.46		$	4.26		$	2.98
Diluted:
Income from continuing operations	$	4.61		$	4.27		$	2.95
Income (loss) from discontinued operations		(0.24	)		(0.09	)		—
Net income	$	4.37		$	4.18		$	2.95

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Financing Receivables (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2011 loan	Dec. 31, 2010
Rollforward of the allowance for loan losses
Allowance for loan losses, balance at the beginning of the period	$ 64	$ 71
Charge-offs	(14)	(19)
Recoveries	1	1
Provisions	9	11
Allowance for loan losses, balance at the end of the period	60	64
Allowance for loan losses ending balance: Individually evaluated for impairment	12	11
Allowance for loan losses ending balance: Collectively evaluated for impairment	48	53
Financing receivables ending balance: Individually evaluated for impairment	84	95
Financing receivables ending balance: Collectively evaluated for impairment	4,284	3,897
Financing receivables	4,368	3,992
Financing receivables ending balance: Individually evaluated for impairment with no related allowance for loan losses	13	24
Loans purchased	567	342
Loans sold	211	455
Nonperforming loans	20	15
Number of loans restructured	119
Loans restructured, recorded investment	52
Commercial Mortgage Loans, net
Rollforward of the allowance for loan losses
Allowance for loan losses, balance at the beginning of the period	38	32
Charge-offs	(2)	(2)
Provisions	(1)	8
Allowance for loan losses, balance at the end of the period	35	38
Allowance for loan losses ending balance: Individually evaluated for impairment	10	8
Allowance for loan losses ending balance: Collectively evaluated for impairment	25	30
Financing receivables ending balance: Individually evaluated for impairment	68	75
Financing receivables ending balance: Collectively evaluated for impairment	2,556	2,540
Financing receivables	2,624	2,615
Number of loans restructured	11
Loans restructured, recorded investment	51
Syndicated loans
Rollforward of the allowance for loan losses
Allowance for loan losses, balance at the beginning of the period	10	26
Charge-offs		(5)
Provisions	(1)	(11)
Allowance for loan losses, balance at the end of the period	9	10
Allowance for loan losses ending balance: Individually evaluated for impairment	1	1
Allowance for loan losses ending balance: Collectively evaluated for impairment	8	9
Financing receivables ending balance: Individually evaluated for impairment	5	8
Financing receivables ending balance: Collectively evaluated for impairment	359	303
Financing receivables	364	311
Loans purchased	194	59
Loans sold	2	40
Consumer Bank Loans
Rollforward of the allowance for loan losses
Allowance for loan losses, balance at the beginning of the period	16	13
Charge-offs	(12)	(12)
Recoveries	1	1
Provisions	11	14
Allowance for loan losses, balance at the end of the period	16	16
Allowance for loan losses ending balance: Individually evaluated for impairment	1	2
Allowance for loan losses ending balance: Collectively evaluated for impairment	15	14
Financing receivables ending balance: Individually evaluated for impairment	11	12
Financing receivables ending balance: Collectively evaluated for impairment	1,369	1,054
Financing receivables	1,380	1,066
Loans purchased	373	283
Loans sold	209	415
Percentage of residential mortgage loans and credit cards and other consumer loans with FICO scores below 640	7.00%	7.00%
Percentage of residential mortgage loans with Loan-To-Value ratios greater than 90%	2.00%	3.00%
Percentage of total loan portfolio represented by state of California	38.00%	33.00%
Nonperforming syndicated loans
Rollforward of the allowance for loan losses
Nonperforming loans	$ 3	$ 3

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SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Details 2) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2011		Dec. 31, 2010		Dec. 31, 2009		Dec. 31, 2008
Assets
Cash and cash equivalents	$ 2,781	[1]	$ 2,861	[1]	$ 3,097	[1]	$ 6,228	[1]
Land, buildings, equipment, and software, net of accumulated depreciation of $707 and $676, respectively	774		693
Total assets	133,986		131,214
Liabilities:
Total liabilities	123,025		119,929
Shareholders' Equity:
Common shares ($.01 par value; shares authorized, 1,250,000,000; shares issued, 303,757,574 and 301,366,044, respectively)	3		3
Additional paid-in capital	6,237		6,029
Retained earnings	6,983		6,190
Treasury shares, at cost (81,814,591 and 54,668,152 shares, respectively)	(4,034)		(2,620)
Accumulated other comprehensive income, net of tax, including amounts applicable to equity investments in subsidiaries	638		565
Total Ameriprise Financial, Inc. shareholders' equity	10,255		10,725
Total liabilities and equity	133,986		131,214
Ameriprise Financial, Inc:
Assets
Cash and cash equivalents	712		1,316		938		734
Investments	846		49
Loan to subsidiaries	624		564
Due from subsidiaries	122		109
Receivables	46		50
Land, buildings, equipment, and software, net of accumulated depreciation of $707 and $676, respectively	263		272
Investments in subsidiaries from continuing operations	9,332		9,819
Investments in subsidiaries held for sale			94
Other assets	1,357		1,159
Total assets	13,302		13,432
Liabilities:
Accounts payable and accrued expenses	167		178
Due to subsidiaries	261		354
Debt	2,393		2,311
Other liabilities	654		422
Total liabilities	3,475		3,265
Shareholders' Equity:
Common shares ($.01 par value; shares authorized, 1,250,000,000; shares issued, 303,757,574 and 301,366,044, respectively)	3		3
Additional paid-in capital	6,237		6,029
Retained earnings	6,983		6,190
Treasury shares, at cost (81,814,591 and 54,668,152 shares, respectively)	(4,034)		(2,620)
Accumulated other comprehensive income, net of tax, including amounts applicable to equity investments in subsidiaries	638		565
Total Ameriprise Financial, Inc. shareholders' equity	9,827		10,167
Total liabilities and equity	$ 13,302		$ 13,432

[1] Cash and cash equivalents includes cash held for sale. See Note 24 for additional information.

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Basis of Presentation

12 Months Ended

Dec. 31, 2011

Basis of Presentation

Basis of Presentation

1. 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 its subsidiary, Threadneedle Asset Management Holdings Sàrl ("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"). 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." All intercompany transactions and balances have been eliminated in consolidation. See Note 2 and Note 4 for additional information related to VIEs.

The results of Securities America Financial Corporation and its subsidiaries (collectively, "Securities America") have been presented as discontinued operations for all periods presented and the related assets and liabilities have been classified as held for sale as of December 31, 2010. See Note 24 for additional information on discontinued operations, including the sale of Securities America in the fourth quarter of 2011.

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.

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.

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Consolidated Balance Sheets (USD $) In Millions, unless otherwise specified	Dec. 31, 2011		Dec. 31, 2010
Assets
Cash and cash equivalents	$ 2,781	[1]	$ 2,861	[1]
Total assets	133,986		131,214
Liabilities:
Total liabilities	123,025		119,929
Ameriprise Financial, Inc.:
Common shares ($.01 par value; shares authorized, 1,250,000,000; shares issued, 303,757,574 and 301,366,044, respectively)	3		3
Additional paid-in capital	6,237		6,029
Retained earnings	6,983		6,190
Appropriated retained earnings of consolidated investment entities	428		558
Treasury shares, at cost (81,814,591 and 54,668,152 shares, respectively)	(4,034)		(2,620)
Accumulated other comprehensive income, net of tax	638		565
Total Ameriprise Financial, Inc. shareholders' equity	10,255		10,725
Noncontrolling interests	706		560
Total equity	10,961		11,285
Total liabilities and equity	133,986		131,214
Ameriprise Financial
Assets
Cash and cash equivalents	2,781		2,838
Investments	38,775		36,755
Separate account assets	66,780		68,330
Receivables	5,559		4,849
Deferred acquisition costs	4,402		4,619
Restricted and segregated cash and investments	1,793		1,814
Other assets	7,468		4,965
Assets held for sale			173
Total assets	127,558		124,343
Liabilities:
Future policy benefits and claims	31,723		30,208
Separate account liabilities	66,780		68,330
Customer deposits	9,850		8,779
Short-term borrowings	504		397
Long-term debt	2,393		2,317
Accounts payable and accrued expenses	1,048		1,112
Other liabilities	5,432		2,983
Liabilities held for sale			79
Total liabilities	117,730		114,205
Consolidated Investment Entities:
Assets
Cash and cash equivalents	470		472
Investments	4,789		5,444
Receivables	59		60
Other assets	1,110		895
Total assets	6,428		6,871
Liabilities:
Long-term debt	5,178		5,535
Accounts payable and accrued expenses	17		22
Other liabilities	100		167
Total liabilities	$ 5,295		$ 5,724

[1] Cash and cash equivalents includes cash held for sale. See Note 24 for additional information.

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Variable Annuity and Insurance Guarantees

12 Months Ended

Dec. 31, 2011

Variable Annuity and Insurance Guarantees

Variable Annuity and Insurance Guarantees

11. Variable Annuity and Insurance Guarantees

The majority of the variable annuity contracts offered by the Company contain GMDB provisions. The Company also offers variable annuities with GGU, GMWB and GMAB provisions. The Company previously offered contracts containing GMIB provisions. See Note 2 and Note 10 for additional information regarding the Company's variable annuity guarantees.

The GMDB provisions provide a specified minimum return upon death of the contractholder. The death benefit payable is the greater of (i) the contract value less any purchase payment credits subject to recapture and less a pro-rata portion of any rider fees, or (ii) the GMDB provisions specified in the contract. The Company has three primary GMDB provisions:

•

Return of premium — provides purchase payments minus adjusted partial surrenders.

•

Reset — provides that the value resets to the account value every sixth contract anniversary minus adjusted partial surrenders. This provision is often provided in combination with the return of premium provision. This provision is no longer offered.

•

Ratchet — provides that the value ratchets up to the maximum account value at specified anniversary intervals, plus subsequent purchase payments less adjusted partial surrenders.

The variable annuity contracts with GMWB riders typically have account values that are based on an underlying portfolio of mutual funds, the values of which fluctuate based on fund performance. At issue, the guaranteed amount is equal to the amount deposited but the guarantee may be increased annually to the account value (a "step-up") in the case of favorable market performance.

The Company has GMWB riders in force, which contain one or more of the following provisions:

•

Withdrawals at a specified rate per year until the amount withdrawn is equal to the guaranteed amount.

•

Withdrawals at a specified rate per year for the life of the contractholder ("GMWB for life").

•

Withdrawals at a specified rate per year for joint contractholders while either is alive.

•

Withdrawals based on performance of the contract.

•

Withdrawals based on the age withdrawals begin.

•

Once withdrawals begin, the contractholder's funds are moved to one of the three least aggressive asset allocation models (of the five that are available prior to withdrawal).

•

Credits are applied annually for a specified number of years to increase the guaranteed amount as long as withdrawals have not been taken.

Variable annuity contractholders age 79 or younger at contract issue can also obtain a principal-back guarantee by purchasing the optional GMAB rider for an additional charge. The GMAB rider guarantees that, regardless of market performance at the end of the 10-year waiting period, the contract value will be no less than the original investment or 80% of the highest anniversary value, adjusted for withdrawals. If the contract value is less than the guarantee at the end of the 10 year period, a lump sum will be added to the contract value to make the contract value equal to the guarantee value.

Certain UL contracts offered by the Company provide secondary guarantee benefits. The secondary guarantee ensures that, subject to specified conditions, the policy will not terminate and will continue to provide a death benefit even if there is insufficient policy value to cover the monthly deductions and charges.

The following table provides information related to variable annuity guarantees for which the Company has established additional liabilities:

	December 31, 2011								December 31, 2010
Variable Annuity Guarantees by Benefit Type(1)	Total Contract Value		Contract Value in Separate Accounts		Net Amount at Risk(2)		Weighted Average Attained Age		Total Contract Value		Contract Value in Separate Accounts		Net Amount at Risk(2)		Weighted Average Attained Age
	(in millions, except age)
GMDB:
Return of premium	$	40,011	$	38,275	$	382		63	$	37,714	$	36,028	$	173		62
Five/six-year reset		11,631		9,118		350		63		13,689		11,153		312		62
One-year ratchet		7,233		6,777		479		64		7,741		7,242		287		63
Five-year ratchet		1,472		1,418		25		61		1,466		1,414		8		60
Other		759		732		93		68		680		649		61		67
Total — GMDB	$	61,106	$	56,320	$	1,329		63	$	61,290	$	56,486	$	841		62
GGU death benefit	$	920	$	868	$	78		63	$	970	$	912	$	79		64
GMIB	$	463	$	433	$	106		65	$	597	$	561	$	76		64
GMWB:
GMWB	$	3,887	$	3,868	$	236		65	$	4,341	$	4,317	$	106		64
GMWB for life		23,756		23,625		863		64		20,374		20,259		129		63
Total — GMWB	$	27,643	$	27,493	$	1,099		64	$	24,715	$	24,576	$	235		63
GMAB	$	3,516	$	3,509	$	63		56	$	3,540	$	3,523	$	22		56

(1)

Individual variable annuity contracts may have more than one guarantee and therefore may be included in more than one benefit type. Variable annuity contracts for which the death benefit equals the account value are not shown in this table.

(2)

Represents the current guaranteed benefit amount in excess of the current contract value. GMIB, GMWB and GMAB benefits are subject to waiting periods and payment periods specified in the contract.

Changes in additional liabilities for variable annuity and insurance guarantees were as follows:

	GMDB & GGU			GMIB			GMWB			GMAB			UL
	(in millions)
Balance at January 1, 2009	$	55		$	12		$	1,471		$	367		$	7
Incurred claims		12			(5	)		(1,267	)		(267	)		8
Paid claims		(61	)		(1	)		—			—			—
Balance at December 31, 2009		6			6			204			100			15
Incurred claims		17			3			133			4			59
Paid claims		(18	)		(1	)		—			—			(6	)
Balance at December 31, 2010		5			8			337			104			68
Incurred claims		10			2			1,040			133			53
Paid claims		(10	)		(1	)		—			—			(10	)
Balance at December 31, 2011	$	5		$	9		$	1,377		$	237		$	111

The liabilities for guaranteed benefits are supported by general account assets.

The following table summarizes the distribution of separate account balances by asset type for variable annuity contracts providing guaranteed benefits:

	December 31,
	2011		2010
	(in millions)
Mutual funds:
Equity	$	30,738	$	32,310
Bond		23,862		22,319
Other		1,969		2,208
Total mutual funds	$	56,569	$	56,837

No gains or losses were recognized on assets transferred to separate accounts for the years ended December 31, 2011, 2010 and 2009.

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Discontinued Operations (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2010	Sep. 30, 2010	Jun. 30, 2010	Mar. 31, 2010	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Discontinued operations components of earnings and balance sheet disclosure
Income (loss) from discontinued operations, net of tax	$ 13	$ 2	$ (4)	$ (71)	$ (26)	$ (2)	$ 2	$ 2	$ (60)	$ (24)	$ 1
Discontinued operations
Discontinued operations components of earnings and balance sheet disclosure
Transaction value	150								150
Total net revenues									382	467	412
Loss from discontinued operations									(124)	(40)
Gain on sale									26
Income tax provision (benefit)									(38)	(16)	(1)
Income (loss) from discontinued operations, net of tax									(60)	(24)	1
Assets:
Cash and cash equivalents					23					23
Receivables					40					40
Other assets					110					110
Total assets held for sale					173					173
Liabilities:
Long-term debt					5					5
Accounts payable and accrued expenses					26					26
Other liabilities					48					48
Total liabilities held for sale					79					79
Goodwill					48					48
Intangible assets					$ 8					$ 8

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Shareholders' Equity (Details) (USD $)	12 Months Ended				1 Months Ended		12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008	Jun. 30, 2011 Open Market Share Repurchases	May 31, 2010 Open Market Share Repurchases	Dec. 31, 2011 Open Market Share Repurchases	Dec. 31, 2010 Open Market Share Repurchases	Dec. 31, 2011 Franchise Advisor Deferral Plan	Dec. 31, 2010 Franchise Advisor Deferral Plan
Components of accumulated other comprehensive income (loss), net of tax
Net unrealized securities gains	$ 770,000,000	$ 615,000,000
Net unrealized derivatives gains	(11,000,000)	18,000,000	3,000,000	(8,000,000)
Defined benefit plans	(75,000,000)	(24,000,000)	(20,000,000)	(39,000,000)
Foreign currency translation	(46,000,000)	(44,000,000)
Total	638,000,000	565,000,000
Common Share Repurchases:
Maximum amount authorized for repurchase of common stock					2,000,000,000	1,500,000,000
Repurchase of common shares (in shares)							27,900,000	13,100,000	300,000	100,000
Repurchase of common shares							1,500,000,000	573,000,000	13,000,000	7,000,000
Remaining Balance under Stock Repurchase Program							1,500,000,000
Restricted shares forfeited, recorded as treasury shares	100,000	300,000	300,000
Number of shares reacquired through surrender of restricted shares	500,000	400,000	500,000
Value of shares reacquired through surrender of restricted shares	25,000,000	17,000,000	11,000,000
Treasury shares reissued for restricted stock award grants (in shares)	1,700,000
Treasury shares reissued for restricted stock award grants and Franchise Advisor Deferral Plan (in shares)	1,700,000
Common stock issued and sold (in shares)			36,000,000
Proceeds from shares issued used for general corporate purposes			$ 869,000,000

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Derivatives and Hedging Activities (Details 5) (USD $) In Millions, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Credit Risk
Cash and cash equivalents and corresponding liability in other liabilities for collateral	$ 802	$ 98
Fair market value of securities accepted as additional collateral	186	23
Maximum credit exposure related to derivative assets	72	45
Aggregate fair value of all derivative instruments containing credit risk features	112	412
Aggregate fair value of assets posted as collateral	103	406
Additional fair value of assets needed to settle these derivative liabilities	$ 9	$ 6

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Document and Entity Information (USD $) In Billions, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Feb. 10, 2012	Jun. 30, 2011
Document and Entity Information
Entity Registrant Name	AMERIPRISE FINANCIAL INC
Entity Central Index Key	0000820027
Document Type	10-K
Document Period End Date	Dec. 31, 2011
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 13.7
Entity Common Stock, Shares Outstanding		221,898,756
Document Fiscal Year Focus	2011
Document Fiscal Period Focus	FY

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Customer Deposits

12 Months Ended

Dec. 31, 2011

Customer Deposits

Customer Deposits

12. Customer Deposits

Customer deposits consisted of the following:

	December 31,
	2011			2010
	(in millions)
Fixed rate certificates	$	2,004		$	2,313
Stock market certificates		731			790
Stock market embedded derivative reserve		6			14
Other		36			43
Less: accrued interest classified in other liabilities		(5	)		(19	)
Total investment certificate reserves		2,772			3,141
Brokerage deposits		2,341			2,116
Banking deposits		4,737			3,522
Total	$	9,850		$	8,779

Investment Certificates

The Company offers fixed rate investment certificates primarily in amounts ranging from $1,000 to $1 million with interest crediting rate terms ranging from six to 36 months. Investment certificates may be purchased either with a lump sum payment or installment payments. Certificate product owners are entitled to receive, at maturity, a definite sum of money. Payments from certificate owners are credited to investment certificate reserves. Investment certificate reserves generally accumulate interest at specified percentage rates. Reserves are maintained for advance payments made by certificate owners, accrued interest thereon and for additional credits in excess of minimum guaranteed rates and accrued interest thereon. On certificates allowing for the deduction of a surrender charge, the cash surrender values may be less than accumulated investment certificate reserves prior to maturity dates. Cash surrender values on certificates allowing for no surrender charge are equal to certificate reserves. The Company generally invests the proceeds from investment certificates in fixed and variable rate securities. The Company may hedge the interest rate risks under these obligations with derivative instruments. As of December 31, 2011 and 2010, there were no outstanding derivatives to hedge these interest rate risks.

Certain investment certificate products have returns tied to the performance of equity markets. The Company guarantees the principal for purchasers who hold the certificate for the full 52-week term and purchasers may participate in increases in the stock market based on the S&P 500 Index, up to a maximum return. Purchasers can choose 100% participation in the market index up to the cap or 25% participation plus fixed interest with a combined total up to the cap. Current first term certificates have maximum returns of 2% to 3%. The equity component of these certificates is considered an embedded derivative and is accounted for separately. See Note 15 for additional information about derivative instruments used to economically hedge the equity price risk related to the Company's stock market certificates.

Brokerage Deposits

Brokerage deposits are amounts payable to brokerage customers related to free credit balances, funds deposited by customers and funds accruing to customers as a result of trades or contracts. The Company pays interest on certain customer credit balances and the interest is included in banking and deposit interest expense.

Banking Deposits

Banking deposits primarily include customer deposits in money market, savings and checking accounts and certificates of deposit held at Ameriprise Bank. The Company pays interest on certain customer balances and the interest is included in banking and deposit interest expense.

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Debt (Details) (Ameriprise Financial, USD $) In Millions, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Debt and stated interest rates
Total long-term debt	$ 2,393	$ 2,317
Short-term borrowings	504	397
Short-term Borrowings, Stated Interest Rate (as a percent)	0.30%	0.30%
Total Outstanding Balance of Debt	2,897	2,714
Senior notes due 2015
Debt and stated interest rates
Total long-term debt	753	728
Stated Interest Rate (as a percent)	5.70%	5.70%
Senior notes due 2019
Debt and stated interest rates
Total long-term debt	341	312
Stated Interest Rate (as a percent)	7.30%	7.30%
Senior notes due 2020
Debt and stated interest rates
Total long-term debt	805	763
Stated Interest Rate (as a percent)	5.30%	5.30%
Senior notes due 2039
Debt and stated interest rates
Total long-term debt	200	200
Stated Interest Rate (as a percent)	7.80%	7.80%
Junior subordinated notes due 2066
Debt and stated interest rates
Total long-term debt	294	308
Stated Interest Rate (as a percent)	7.50%	7.50%
Municipal bond inverse floater certificates due 2021
Debt and stated interest rates
Total long-term debt		$ 6
Stated Interest Rate (as a percent)		0.30%

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Derivatives and Hedging Activities (Details 4) (USD $) In Millions, unless otherwise specified	12 Months Ended			3 Months Ended	12 Months Ended																		12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009	Jun. 30, 2011 Cash flow hedges	Dec. 31, 2011 Cash flow hedges	Dec. 31, 2010 Cash flow hedges	Dec. 31, 2009 Cash flow hedges	Dec. 31, 2011 Cash flow hedges Other revenues	Dec. 31, 2011 Cash flow hedges Interest and debt expense	Dec. 31, 2010 Cash flow hedges Interest and debt expense	Dec. 31, 2009 Cash flow hedges Interest and debt expense	Dec. 31, 2011 Cash flow hedges Distribution fees	Dec. 31, 2010 Cash flow hedges Distribution fees	Dec. 31, 2011 Cash flow hedges Net investment income	Dec. 31, 2010 Cash flow hedges Net investment income	Dec. 31, 2009 Cash flow hedges Net investment income	Dec. 31, 2011 Cash flow hedges Interest on debt	Dec. 31, 2010 Cash flow hedges Interest on debt	Dec. 31, 2009 Cash flow hedges Interest on debt	Dec. 31, 2011 Cash flow hedges Asset-based distribution fees	Dec. 31, 2010 Cash flow hedges Asset-based distribution fees	Mar. 31, 2010 Fair value hedges Swaps	Dec. 31, 2011 Fair value hedges Fixed rate debt Interest and debt expense	Dec. 31, 2010 Fair value hedges Fixed rate debt Interest and debt expense
Derivative Instruments Gain (Loss)
Cash flow hedge, Gain (Loss) Reclassified from Accumulated Other Comprehensive Income to Other revenues				$ 27
Probable reclassification of unrealized gains on cash flow hedges from accumulated other comprehensive income to earnings during the next 12 months					2
Reclassification of net pretax gains, to be recorded as a reduction to interest and debt expense in the next 12 months					4
Reclassification of net pretax losses, to be recorded in net investment income in the next 12 months					6
Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivatives					(10)	36	19										(11)	16	19	1	20
Amount of Gain (Loss) Reclassified from Accumulated other Comprehensive Income into Income					34	13	2	27	4	8	8	9	11	(6)	(6)	(6)
Hedging exposure to the variability in future cash flows (in years)					24 years
Number of interest rate swaps held																						3
Amount of Gain Recognized in Income on Derivatives																							41	36
Summary of unrealized derivatives gains (losses) included in accumulated other comprehensive income (loss) related to cash flow hedges
Net unrealized derivatives gains (losses), at the beginning of the period	18	3	(8)
Holding gains (losses)	(10)	36	19
Reclassification of realized gains	(34)	(13)	(2)
Income tax benefit (provision)	15	(8)	(6)
Net unrealized derivatives gains (losses), at the end of the period	$ (11)	$ 18	$ 3

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Consolidated Balance Sheets (Parenthetical) (USD $) In Millions, except Share data, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Common shares, par value (in dollars per share)	$ 0.01	$ 0.01
Common shares, shares authorized	1,250,000,000	1,250,000,000
Common shares, shares issued	303,757,574	301,366,044
Treasury shares	81,814,591	54,668,152
Consolidated Investment Entities:
Receivables, fair value (in dollars)	$ 39	$ 33
Debt, fair value (in dollars)	4,712	5,171
Other liabilities, fair value (in dollars)	$ 85	$ 154

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Financing Receivables

12 Months Ended

Dec. 31, 2011

Financing Receivables

Financing Receivables

6. Financing Receivables

The Company's financing receivables include commercial mortgage loans, syndicated loans, consumer bank loans, policy loans and margin loans. See Note 2 for information regarding the Company's accounting policies related to loans and the allowance for loan losses.

Allowance for Loan Losses

The following tables present a rollforward of the allowance for loan losses for the years ended and the ending balance of the allowance for loan losses by impairment method and type of loan:

	December 31, 2011
	Commercial Mortgage Loans			Syndicated Loans			Consumer Bank Loans			Total
	(in millions)
Beginning balance	$	38		$	10		$	16		$	64
Charge-offs		(2	)		—			(12	)		(14	)
Recoveries		—			—			1			1
Provisions		(1	)		(1	)		11			9
Ending balance	$	35		$	9		$	16		$	60
Individually evaluated for impairment	$	10		$	1		$	1		$	12
Collectively evaluated for impairment		25			8			15			48

	December 31, 2010
	Commercial Mortgage Loans			Syndicated Loans			Consumer Bank Loans			Total
	(in millions)
Beginning balance	$	32		$	26		$	13		$	71
Charge-offs		(2	)		(5	)		(12	)		(19	)
Recoveries		—			—			1			1
Provisions		8			(11	)		14			11
Ending balance	$	38		$	10		$	16		$	64
Individually evaluated for impairment	$	8		$	1		$	2		$	11
Collectively evaluated for impairment		30			9			14			53

The recorded investment in financing receivables by impairment method and type of loan was as follows:

	December 31, 2011
	Commercial Mortgage Loans		Syndicated Loans		Consumer Bank Loans		Total
	(in millions)
Individually evaluated for impairment	$	68	$	5	$	11	$	84
Collectively evaluated for impairment		2,556		359		1,369		4,284
Total	$	2,624	$	364	$	1,380	$	4,368

	December 31, 2010
	Commercial Mortgage Loans		Syndicated Loans		Consumer Bank Loans		Total
	(in millions)
Individually evaluated for impairment	$	75	$	8	$	12	$	95
Collectively evaluated for impairment		2,540		303		1,054		3,897
Total	$	2,615	$	311	$	1,066	$	3,992

As of December 31, 2011 and 2010, the Company's recorded investment in financing receivables individually evaluated for impairment for which there was no related allowance for loan losses was $13 million and $24 million, respectively. Unearned income, unamortized premiums and discounts, and net unamortized deferred fees and costs are not material to the Company's total loan balance.

Purchases and sales of loans were as follows:

	Years Ended December 31,
	2011		2010
	(in millions)
Purchases
Consumer bank loans	$	373	$	283
Syndicated loans		194		59
Total loans purchased	$	567	$	342
Sales
Consumer bank loans	$	209	$	415
Syndicated loans		2		40
Total loans sold	$	211	$	455

The Company has not acquired any loans with deteriorated credit quality as of the acquisition date.

Credit Quality Information

Nonperforming loans, which are generally loans 90 days or more past due, were $20 million and $15 million as of December 31, 2011 and 2010, respectively. All other loans were considered to be performing.

Commercial Mortgage Loans

The Company reviews the credit worthiness of the borrower and the performance of the underlying properties in order to determine the risk of loss on commercial mortgage loans. Based on this review, the commercial mortgage loans are assigned an internal risk rating, which management updates as necessary. Commercial mortgage loans which management has assigned its highest risk rating were 3% of total commercial mortgage loans at both December 31, 2011 and 2010. Loans with the highest risk rating represent distressed loans which the Company has identified as impaired or expects to become delinquent or enter into foreclosure within the next six months. In addition, the Company reviews the concentrations of credit risk by region and property type.

Concentrations of credit risk of commercial mortgage loans by U.S. region were as follows:

	Loans				Percentage
	December 31,				December 31,
	2011		2010		2011			2010
	(in millions)
East North Central	$	252	$	242		10	%		9	%
East South Central		65		66		2			3
Middle Atlantic		223		215		9			8
Mountain		284		301		11			11
New England		141		156		5			6
Pacific		584		541		22			21
South Atlantic		648		625		25			24
West North Central		244		271		9			10
West South Central		183		198		7			8
		2,624		2,615		100	%		100	%
Less: allowance for loan losses		35		38
Total	$	2,589	$	2,577

Concentrations of credit risk of commercial mortgage loans by property type were as follows:

	Loans				Percentage
	December 31,				December 31,
	2011		2010		2011			2010
	(in millions)
Apartments	$	392	$	351		15	%		13	%
Hotel		51		57		2			2
Industrial		480		475		18			18
Mixed Use		42		43		2			2
Office		694		747		26			29
Retail		845		843		32			32
Other		120		99		5			4
		2,624		2,615		100	%		100	%
Less: allowance for loan losses		35		38
Total	$	2,589	$	2,577

Syndicated Loans

The Company's syndicated loan portfolio is diversified across industries and issuers. The primary credit indicator for syndicated loans is whether the loans are performing in accordance with the contractual terms of the syndication. Total nonperforming syndicated loans at both December 31, 2011 and 2010 were $3 million.

Consumer Bank Loans

The Company considers the credit worthiness of borrowers (FICO score), collateral characteristics such as LTV and geographic concentration in determining the allowance for loan losses for residential mortgage loans, credit cards and other consumer bank loans. At a minimum, management updates FICO scores and LTV ratios semiannually.

As of both December 31, 2011 and 2010, approximately 7% of residential mortgage loans and credit cards and other consumer bank loans had FICO scores below 640. At December 31, 2011 and 2010, approximately 2% and 3%, respectively, of the Company's residential mortgage loans had LTV ratios greater than 90%. The Company's most significant geographic concentration for consumer bank loans is in California representing 38% and 33% of the portfolio as of December 31, 2011 and 2010, respectively. No other state represents more than 10% of the total consumer bank loan portfolio.

Troubled Debt Restructurings

During the year ended December 31, 2011 the Company restructured 119 loans with a recorded investment of $52 million as of December 31, 2011. Of the total restructured loans, 11 loans were commercial mortgage loans with a recorded investment of $51 million as of December 31, 2011. The troubled debt restructurings did not have a material impact to the Company's allowance for loan losses or income recognized for the year ended December 31, 2011. There are no material commitments to lend additional funds to borrowers whose loans have been restructured.

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Investments

12 Months Ended

Dec. 31, 2011

Investments.

Investments

5. Investments

The following is a summary of Ameriprise Financial investments:

	December 31,
	2011		2010
	(in millions)
Available-for-Sale securities, at fair value	$	34,505	$	32,619
Commercial mortgage loans, net		2,589		2,577
Policy loans		742		733
Other investments		939		826
Total	$	38,775	$	36,755

The following is a summary of net investment income:

	Year Ended December 31,
	2011			2010			2009
	(in millions)
Investment income on fixed maturities	$	1,881		$	1,920		$	1,878
Net realized gains		6			33			53
Affordable housing partnerships		(32	)		(20	)		(25	)
Other		100			101			90
Consolidated investment entities		91			275			2
Total net investment income	$	2,046		$	2,309		$	1,998

Available-for-Sale securities distributed by type were as follows:

	December 31, 2011
Description of Securities	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Noncredit OTTI(1)
	(in millions)
Corporate debt securities	$	16,380	$	1,741	$	(81	)	$	18,040	$	—
Residential mortgage backed securities		7,440		287		(331	)		7,396		(139	)
Commercial mortgage backed securities		4,430		291		(2	)		4,719		—
Asset backed securities		1,968		61		(44	)		1,985		(15	)
State and municipal obligations		2,026		162		(58	)		2,130		—
U.S. government and agencies obligations		61		10		—			71		—
Foreign government bonds and obligations		126		19		(1	)		144		—
Common stocks		5		4		—			9		—
Other debt obligations		11		—		—			11		—
Total	$	32,447	$	2,575	$	(517	)	$	34,505	$	(154	)

	December 31, 2010
Description of Securities	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Noncredit OTTI(1)
	(in millions)
Corporate debt securities	$	15,433	$	1,231	$	(58	)	$	16,606	$	—
Residential mortgage backed securities		7,213		368		(323	)		7,258		(117	)
Commercial mortgage backed securities		4,583		293		(8	)		4,868		—
Asset backed securities		1,982		78		(40	)		2,020		(16	)
State and municipal obligations		1,666		21		(105	)		1,582		—
U.S. government and agencies obligations		135		8		—			143		—
Foreign government bonds and obligations		91		17		—			108		—
Common stocks		6		4		—			10		—
Other debt obligations		24		—		—			24		—
Total	$	31,133	$	2,020	$	(534	)	$	32,619	$	(133	)

(1)

Represents the amount of other-than-temporary impairment losses in accumulated other comprehensive income. Amount includes unrealized gains and losses on impaired securities subsequent to the initial impairment measurement date. These amounts are included in gross unrealized gains and losses as of the end of the period.

At both December 31, 2011 and 2010, fixed maturity securities comprised approximately 89% of Ameriprise Financial investments. Rating agency designations are based on the availability of ratings from Nationally Recognized Statistical Rating Organizations ("NRSROs"), including Moody's Investors Service ("Moody's"), Standard & Poor's Ratings Services ("S&P") and Fitch Ratings Ltd. ("Fitch"). The Company uses the median of available ratings from Moody's, S&P and Fitch, or, if fewer than three ratings are available, the lower rating is used. When ratings from Moody's, S&P and Fitch are unavailable, the Company may utilize ratings from other NRSROs or rate the securities internally. At both December 31, 2011 and 2010, the Company's internal analysts rated $1.2 billion of securities, using criteria similar to those used by NRSROs. A summary of fixed maturity securities by rating was as follows:

	December 31, 2011							December 31, 2010
Ratings	Amortized Cost		Fair Value		Percent of Total Fair Value			Amortized Cost		Fair Value		Percent of Total Fair Value
	(in millions, except percentages)
AAA	$	11,510	$	12,105		35	%	$	12,142	$	12,809		39	%
AA		1,942		2,087		6			1,843		1,899		6
A		5,012		5,442		16			4,449		4,670		14
BBB		11,818		13,050		38			10,536		11,408		35
Below investment grade		2,160		1,812		5			2,157		1,823		6
Total fixed maturities	$	32,442	$	34,496		100	%	$	31,127	$	32,609		100	%

At December 31, 2011 and 2010, approximately 36% and 29%, respectively, of the securities rated AAA were GNMA, FNMA and FHLMC mortgage backed securities. No holdings of any other issuer were greater than 10% of total equity.

The following tables provide information about Available-for-Sale securities with gross unrealized losses and the length of time that individual securities have been in a continuous unrealized loss position:

	December 31, 2011
	Less than 12 months							12 months or more							Total
Description of Securities	Number of Securities		Fair Value		Unrealized Losses			Number of Securities		Fair Value		Unrealized Losses			Number of Securities		Fair Value		Unrealized Losses
	(in millions, except number of securities)
Corporate debt securities		124	$	1,647	$	(40	)		10	$	259	$	(41	)		134	$	1,906	$	(81	)
Residential mortgage backed securities		105		1,269		(33	)		141		717		(298	)		246		1,986		(331	)
Commercial mortgage backed securities		14		182		(2	)		5		29		—			19		211		(2	)
Asset backed securities		49		543		(11	)		33		155		(33	)		82		698		(44	)
State and municipal obligations		—		—		—			53		229		(58	)		53		229		(58	)
Foreign government bonds and obligations		6		28		(1	)		—		—		—			6		28		(1	)
Total		298	$	3,669	$	(87	)		242	$	1,389	$	(430	)		540	$	5,058	$	(517	)

	December 31, 2010
	Less than 12 months							12 months or more							Total
Description of Securities	Number of Securities		Fair Value		Unrealized Losses			Number of Securities		Fair Value		Unrealized Losses			Number of Securities		Fair Value		Unrealized Losses
	(in millions, except number of securities)
Corporate debt securities		115	$	1,859	$	(46	)		13	$	157	$	(12	)		128	$	2,016	$	(58	)
Residential mortgage backed securities		108		782		(12	)		133		712		(311	)		241		1,494		(323	)
Commercial mortgage backed securities		30		498		(7	)		1		23		(1	)		31		521		(8	)
Asset backed securities		29		354		(8	)		25		123		(32	)		54		477		(40	)
State and municipal obligations		206		696		(31	)		60		232		(74	)		266		928		(105	)
Total		488	$	4,189	$	(104	)		232	$	1,247	$	(430	)		720	$	5,436	$	(534	)

As part of Ameriprise Financial's ongoing monitoring process, management determined that a majority of the gross unrealized losses on its Available-for-Sale securities are attributable to movement in credit spreads.

The following table presents a rollforward of the cumulative amounts recognized in the Consolidated Statements of Operations for other-than-temporary impairments related to credit losses on securities for which a portion of the securities' total other-than-temporary impairments was recognized in other comprehensive income:

	Years Ended December 31,
	2011			2010		2009
	(in millions)
Beginning balance	$	297		$	263	$	258
Credit losses for which an other-than-temporary impairment was not previously recognized		15			15		8
Credit losses for which an other-than-temporary impairment was previously recognized		19			19		57
Reductions for securities sold during the period (realized)		(28	)		—		(60	)
Ending balance	$	303		$	297	$	263

The change in net unrealized securities gains (losses) in other comprehensive income includes three components, net of tax: (i) unrealized gains (losses) that arose from changes in the market value of securities that were held during the period; (ii) (gains) losses that were previously unrealized, but have been recognized in current period net income due to sales of Available-for-Sale securities and due to the reclassification of noncredit other-than-temporary impairment losses to credit losses and (iii) other items primarily consisting of adjustments in asset and liability balances, such as DAC, DSIC, benefit reserves and reinsurance recoverables, to reflect the expected impact on their carrying values had the unrealized gains (losses) been realized as of the respective balance sheet dates.

The following table presents a rollforward of the net unrealized securities gains (losses) on Available-for-Sale securities included in accumulated other comprehensive income (loss):

	Net Unrealized Securities Gains (Losses)			Deferred Income Tax			Accumulated Other Comprehensive Income (Loss) Related to Net Unrealized Securities Gains (Losses)
	(in millions)
Balance at January 1, 2009	$	(1,479	)	$	518		$	(961	)
Cumulative effect of accounting change		(203	)		71			(132	)(1)
Net unrealized securities gains arising during the period(3)		2,792			(977	)		1,815
Reclassification of gains included in net income		(70	)		25			(45	)
Impact of DAC, DSIC, benefit reserves and reinsurance recoverables		(566	)		199			(367	)
Balance at December 31, 2009		474			(164	)		310	(2)
Net unrealized securities gains arising during the period(3)		828			(291	)		537
Reclassification of gains included in net income		(28	)		10			(18	)
Impact of DAC, DSIC, benefit reserves and reinsurance recoverables		(328	)		114			(214	)
Balance at December 31, 2010		946			(331	)		615	(2)
Net unrealized securities gains arising during the period(3)		572			(196	)		376
Impact of DAC, DSIC, benefit reserves and reinsurance recoverables		(340	)		119			(221	)
Balance at December 31, 2011	$	1,178		$	(408	)	$	770	(2)

(1)

Amount represents the cumulative effect of adopting a new accounting standard on January 1, 2009. See Note 3 for additional information on the adoption impact.

(2)

Includes $(75) million, $(66) million and $(84) million of noncredit related impairments on securities and net unrealized securities losses on previously impaired securities at December 31, 2011, 2010 and 2009, respectively.

(3)

Includes other-than-temporary impairment losses on Available-for-Sale securities related to factors other than credit that were recognized in other comprehensive income during the period.

Net realized gains and losses on Available-for-Sale securities, determined using the specific identification method, recognized in earnings were as follows:

	Years Ended December 31,
	2011			2010			2009
	(in millions)
Gross realized gains	$	52		$	72		$	216
Gross realized losses		(18	)		(7	)		(53	)
Other-than-temporary impairments		(34	)		(37	)		(93	)

Other-than-temporary impairments for the years ended December 31, 2011 and 2010 primarily related to credit losses on non-agency residential mortgage backed securities. Other-than-temporary impairments for the year ended December 31, 2009 related to credit losses on non-agency residential mortgage backed securities, corporate debt securities primarily in the financial services and gaming industries and other structured investments.

Available-for-Sale securities by contractual maturity at December 31, 2011 were as follows:

	Amortized Cost		Fair Value
	(in millions)
Due within one year	$	975	$	992
Due after one year through five years		6,544		6,783
Due after five years through 10 years		6,408		7,125
Due after 10 years		4,677		5,496
		18,604		20,396
Residential mortgage backed securities		7,440		7,396
Commercial mortgage backed securities		4,430		4,719
Asset backed securities		1,968		1,985
Common stocks		5		9
Total	$	32,447	$	34,505

Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Residential mortgage backed securities, commercial mortgage backed securities and asset backed securities are not due at a single maturity date. As such, these securities, as well as common and preferred stocks, were not included in the maturities distribution.

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Shareholders' Equity

12 Months Ended

Dec. 31, 2011

Shareholders' Equity

Shareholders' Equity

17. Shareholders' Equity

The following table presents the components of accumulated other comprehensive income, net of tax:

	December 31,
	2011			2010
	(in millions)
Net unrealized securities gains	$	770		$	615
Net unrealized derivatives gains (losses)		(11	)		18
Defined benefit plans		(75	)		(24	)
Foreign currency translation		(46	)		(44	)
Total	$	638		$	565

See Note 5, Note 15 and Note 21 for additional disclosures related to net unrealized securities gains, net unrealized derivatives gains (losses) and net unrealized actuarial gains (losses) on defined benefit plans, respectively.

In May 2010, the Company's Board of Directors authorized the expenditure of up to $1.5 billion for the repurchase of the Company's common stock through the date of its 2012 annual meeting. In June 2011, the Company's Board of Directors authorized an additional expenditure of up to $2.0 billion for the repurchase of the Company's common stock through June 28, 2013. For the years ended December 31, 2011 and 2010, the Company repurchased a total of 27.9 million shares and 13.1 million shares, respectively, of its common stock for an aggregate cost of $1.5 billion and $573 million, respectively. There were no share repurchases during the year ended December 31, 2009. As of December 31, 2011, the Company had $1.5 billion remaining under the share repurchase authorization.

The Company may also reacquire shares of its common stock under its 2005 ICP related to restricted stock awards. Restricted shares that are forfeited before the vesting period has lapsed are recorded as treasury shares. In addition, the holders of restricted shares may elect to surrender a portion of their shares on the vesting date to cover their income tax obligations. These vested restricted shares reacquired by the Company and the Company's payment of the holders' income tax obligations are recorded as a treasury share purchase. For the years ended December 31, 2011, 2010 and 2009, the restricted shares forfeited under the 2005 ICP and recorded as treasury shares were 0.1 million, 0.3 million and 0.3 million, respectively. For the years ended December 31, 2011, 2010 and 2009, the Company reacquired 0.5 million, 0.4 million and 0.5 million shares, respectively, of its common stock through the surrender of restricted shares upon vesting and paid in the aggregate $25 million, $17 million and $11 million, respectively, related to the holders' income tax obligations on the vesting date.

In 2011, the Company reissued 1.7 million treasury shares for restricted stock award grants and issuance of shares vested under the Franchise Advisor Deferral Plan. In 2011 and 2010, the Company reacquired 0.3 million and 0.1 million shares, respectively, of its common stock with an aggregate value of $13 million and $7 million, respectively, from a total return swap used to economically hedge its Franchise Advisor Deferral Plan. See Note 15 for additional information. In 2009, the Company issued and sold 36 million shares of its common stock. The proceeds of $869 million were used for general corporate purposes, including the Company's acquisition of the long-term asset management business of the Columbia Management Group.

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Debt

12 Months Ended

Dec. 31, 2011

Debt

Debt

13. Debt

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,
	2011			2010			2011			2010
	(in millions)
Senior notes due 2015	$	753	(1)	$	728	(1)		5.7	%		5.7	%
Senior notes due 2019		341	(1)		312	(1)		7.3			7.3
Senior notes due 2020		805	(1)		763	(1)		5.3			5.3
Senior notes due 2039		200			200			7.8			7.8
Junior subordinated notes due 2066		294			308			7.5			7.5
Municipal bond inverse floater certificates due 2021		—			6			—			0.3
Total long-term debt		2,393			2,317
Short-term borrowings		504			397			0.3			0.3
Total	$	2,897		$	2,714

(1)

Amounts include adjustments for fair value hedges on the Company's long-term debt and any unamortized discounts. See Note 15 for information on the Company's fair value hedges.

Long-term debt

On November 23, 2005, the Company issued $1.5 billion of unsecured senior notes including five-year notes which matured November 15, 2010 and 10-year notes which mature November 15, 2015, and incurred debt issuance costs of $7 million. Interest payments are due semi-annually on May 15 and November 15.

In November 2010, the Company retired $340 million of its senior notes due 2010. In July 2009, the Company purchased $450 million aggregate principal amount of its senior notes due 2010, pursuant to a cash tender offer. The tender offer consideration per $1,000 principal amount of these notes accepted for purchase was $1,000, with an early tender payment of $30. Payments for these notes pursuant to the tender offer included accrued and unpaid interest from the last interest payment date to, but not including, the settlement date. The Company also purchased $10 million of these notes in the second quarter of 2009 in open market transactions.

On June 8, 2009, the Company issued $300 million of unsecured senior notes which mature June 28, 2019, and incurred debt issuance costs of $3 million. Interest payments are due semi-annually in arrears on June 28 and December 28.

On March 11, 2010, the Company issued $750 million aggregate principal amount of unsecured senior notes which mature March 15, 2020, and incurred debt issuance costs of $6 million. Interest payments are due semi-annually in arrears on March 15 and September 15.

On June 3, 2009, the Company issued $200 million of unsecured senior notes which mature June 15, 2039, and incurred debt issuance costs of $6 million. Interest payments are due quarterly in arrears on March 15, June 15, September 15 and December 15.

On May 26, 2006, the Company issued $500 million of unsecured junior subordinated notes, which mature June 1, 2066, and incurred debt issuance costs of $6 million. For the initial 10-year period, the junior notes carry a fixed interest rate of 7.5% payable semi-annually in arrears on June 1 and December 1. From June 1, 2016 until the maturity date, interest on the junior notes will accrue at an annual rate equal to the three-month LIBOR plus a margin equal to 290.5 basis points, payable quarterly in arrears. The Company has the option to defer interest payments, subject to certain limitations. In addition, interest payments are mandatorily deferred if the Company does not meet specified capital adequacy, net income or shareholders' equity levels. As of December 31, 2011 and 2010, the Company had met the specified levels.

In 2011, 2010 and 2009, the Company extinguished $14 million, $14 million and $135 million, respectively, of its junior notes in open market transactions and recognized gains (losses) of nil, $(1) million and $58 million, respectively, in other revenues.

During the first quarter of 2011, the Company extinguished $6 million of its municipal bond inverse floater certificates funded through the call of a $10 million portfolio of municipal bonds.

At December 31, 2011, future maturities of Ameriprise Financial long-term debt were as follows:

	(in millions)
2012	$	—
2013		—
2014		—
2015		700
2016		—
Thereafter		1,544
Total future maturities	$	2,244

Short-term borrowings

The Company enters into repurchase agreements in exchange for cash, which it accounts for as secured borrowings. The Company has pledged Available-for-Sale securities consisting of agency residential mortgage backed securities and commercial mortgage backed securities to collateralize its obligation under the repurchase agreements. The fair value of the securities pledged is recorded in investments and was $521 million and $412 million at December 31, 2011 and 2010, respectively. The stated interest rate of the short-term borrowings is a weighted average annualized interest rate on repurchase agreements held as of the balance sheet date.

On November 22, 2011, the Company entered into a credit agreement for $500 million expiring on November 22, 2015. Under the terms of the agreement, the Company may increase the amount of this facility to $750 million upon satisfaction of certain approval requirements. Available borrowings under the agreement are reduced by any outstanding letters of credit. The Company had no borrowings outstanding under this facility and outstanding letters of credit issued against this facility were $2 million as of December 31, 2011.

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Fair Values of Assets and Liabilities (Details 3) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010
Summary of changes in Level 3 assets and liabilities measured at fair value on a recurring basis
Transfers (out of) Level 3	$ (3,900)
Summary of changes in Level 3 liabilities measured at fair value on a recurring basis
Cumulative decrease to the embedded derivative liability	506	197
Available-for-Sale Securities, at fair value | Ameriprise Financial
Summary of changes in Level 3 assets and liabilities measured at fair value on a recurring basis
Balance, at the beginning of the period	6,104	5,823
Total gains (losses) included in Net income	63	69
Total gains (losses) included in Other comprehensive income	(117)	371
Purchases	967
Sales	(53)
Settlements	(1,098)
Purchases, Sales, Issues and Settlements, Net		5
Transfers into Level 3	22	25
Transfers (out of) Level 3	(4,074)	(189)
Balance, at the end of the period	1,814	6,104
Corporate debt securities | Ameriprise Financial
Summary of changes in Level 3 assets and liabilities measured at fair value on a recurring basis
Balance, at the beginning of the period	1,325	1,252
Total gains (losses) included in Net income	7	1
Total gains (losses) included in Other comprehensive income	11	30
Purchases	189
Sales	(51)
Settlements	(122)
Purchases, Sales, Issues and Settlements, Net		17
Transfers into Level 3	7	25
Transfers (out of) Level 3	(11)
Balance, at the end of the period	1,355	1,325
Residential mortgage backed securities | Ameriprise Financial
Summary of changes in Level 3 assets and liabilities measured at fair value on a recurring basis
Balance, at the beginning of the period	4,247	3,982
Total gains (losses) included in Net income	48	55
Total gains (losses) included in Other comprehensive income	(110)	292
Purchases	556
Sales	(2)
Settlements	(885)
Purchases, Sales, Issues and Settlements, Net		(61)
Transfers (out of) Level 3	(3,656)	(21)
Balance, at the end of the period	198	4,247
Commercial mortgage backed securities | Ameriprise Financial
Summary of changes in Level 3 assets and liabilities measured at fair value on a recurring basis
Balance, at the beginning of the period	51	72
Total gains (losses) included in Net income		1
Total gains (losses) included in Other comprehensive income		10
Purchases	104
Settlements	(4)
Purchases, Sales, Issues and Settlements, Net		112
Transfers into Level 3	1
Transfers (out of) Level 3	(102)	(144)
Balance, at the end of the period	50	51
Asset backed securities | Ameriprise Financial
Summary of changes in Level 3 assets and liabilities measured at fair value on a recurring basis
Balance, at the beginning of the period	476	455
Total gains (losses) included in Net income	8	12
Total gains (losses) included in Other comprehensive income	(18)	38
Purchases	118
Settlements	(87)
Purchases, Sales, Issues and Settlements, Net		(5)
Transfers into Level 3	14
Transfers (out of) Level 3	(305)	(24)
Balance, at the end of the period	206	476
Common Stocks | Ameriprise Financial
Summary of changes in Level 3 assets and liabilities measured at fair value on a recurring basis
Balance, at the beginning of the period		4
Total gains (losses) included in Other comprehensive income		1
Balance, at the end of the period	5	5
Other structured investments | Ameriprise Financial
Summary of changes in Level 3 assets and liabilities measured at fair value on a recurring basis
Balance, at the beginning of the period		58
Purchases, Sales, Issues and Settlements, Net		(58)
GMWB and GMAB embedded derivatives | Ameriprise Financial
Summary of changes in Level 3 liabilities measured at fair value on a recurring basis
Balance, at the beginning of the period	(421)	(299)
Total Gains (Losses) Included in Net Income	(1,007)	4
Issues	(149)
Settlements	(8)
Purchases, Sales, Issues and Settlements, Net		(126)
Balance, at the end of the period	(1,585)	(421)
Cumulative decrease to the embedded derivative liability	$ 168	$ 28

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Deferred Acquisition Costs and Deferred Sales Inducement Costs

12 Months Ended

Dec. 31, 2011

Deferred Acquisition Costs and Deferred Sales Inducement Costs

Deferred Acquisition Costs and Deferred Sales Inducement Costs

9. Deferred Acquisition Costs and Deferred Sales Inducement Costs

During the third quarter of 2011, 2010 and 2009, management reviewed and updated the DAC and DSIC valuation assumptions for the Company's products. As part of its third quarter 2010 process, management extended the projection periods used for its annuity products and revised client asset value growth rates assumed for variable annuity and VUL contracts.

The balances of and changes in DAC were as follows:

	2011			2010			2009
	(in millions)
Balance at January 1	$	4,619		$	4,334		$	4,383
Capitalization of acquisition costs		492			525			620
Amortization, excluding the impact of valuation assumptions review		(567	)		(450	)		(336	)
Amortization, impact of valuation assumptions review		(51	)		323			119
Impact of change in net unrealized securities gains		(91	)		(113	)		(452	)
Balance at December 31	$	4,402		$	4,619		$	4,334

The balances of and changes in DSIC, which is included in other assets, were as follows:

	2011			2010			2009
	(in millions)
Balance at January 1	$	545		$	524		$	518
Capitalization of sales inducement costs		9			35			82
Amortization, excluding the impact of valuation assumptions review		(70	)		(49	)		(19	)
Amortization, impact of valuation assumptions review		(11	)		52			9
Impact of change in net unrealized securities gains		(9	)		(17	)		(66	)
Balance at December 31	$	464		$	545		$	524

As described in Note 3, the Company adopted a new accounting standard on the recognition and presentation of other-than-temporary impairments in the first quarter of 2009. The adoption had no net impact to DAC and DSIC.

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Consolidated Investment Entities (Details 2) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010
Summary of changes in Level 3 assets held by consolidated investment entities
Transfers (out of) Level 3	$ (3,900)
Corporate debt securities | Consolidated Investment Entities:
Summary of changes in Level 3 assets held by consolidated investment entities
Balance, at the beginning of the period	6
Cumulative effect of accounting change		15
Purchases, Net-Assets	3
Sales, Net-Assets	(2)
Settlements, Net-Assets	(1)
Purchases, Sales, Issues and Settlements, Net		(9)
Transfers (out of) Level 3	(2)
Balance, at the end of the period	4	6
Common Shares | Consolidated Investment Entities:
Summary of changes in Level 3 assets held by consolidated investment entities
Balance, at the beginning of the period	11
Total Gains (Losses) Included in Net Income-Assets	6	4
Sales, Net-Assets	(4)
Transfers into Level 3	29	7
Transfers (out of) Level 3	(29)
Balance, at the end of the period	13	11
Changes in unrealized gains/ (losses) included in income relating to assets held	3	4
Other structured investments | Consolidated Investment Entities:
Summary of changes in Level 3 assets held by consolidated investment entities
Balance, at the beginning of the period	22
Cumulative effect of accounting change		5
Total Gains (Losses) Included in Net Income-Assets	(1)	1
Purchases, Net-Assets	3
Purchases, Sales, Issues and Settlements, Net		12
Transfers into Level 3		4
Transfers (out of) Level 3	(24)
Balance, at the end of the period		22
Changes in unrealized gains/ (losses) included in income relating to assets held		1
Syndicated loans | Consolidated Investment Entities:
Summary of changes in Level 3 assets held by consolidated investment entities
Total Gains (Losses) Included in Net Income-Assets	(12)
Purchases, Net-Assets	208
Sales, Net-Assets	(40)
Settlements, Net-Assets	(137)
Transfers into Level 3	615
Transfers (out of) Level 3	(292)
Balance, at the end of the period	342
Changes in unrealized gains/ (losses) included in income relating to assets held	(5)
Other assets | Consolidated Investment Entities:
Summary of changes in Level 3 assets held by consolidated investment entities
Balance, at the beginning of the period	887	831
Total Gains (Losses) Included in Net Income-Assets	13	67
Total Gains (Losses) Included in Net Income-Assets and included in Other Revenues in the Consolidated Statement of Operations		69
Total Gains (Losses) Included in Net Income-Assets and included in Net Investment Income in the Consolidated Statement of Operations		2
Total Gains (Losses) Included in Other Comprehensive Income-Assets	(10)	(35)
Purchases, Net-Assets	299
Sales, Net-Assets	(81)
Settlements, Net-Assets	1
Purchases, Sales, Issues and Settlements, Net		24
Transfers into Level 3	7
Transfers (out of) Level 3	(8)
Balance, at the end of the period	1,108	887
Changes in unrealized gains/ (losses) included in income relating to assets held	19	40
Changes in unrealized gains/ (losses) included in income relating to assets held-other revenue	20	42
Changes in unrealized gains/ (losses) included in income relating to assets held-investment income	(1)	(2)
Debt | Consolidated Investment Entities:
Summary of changes in Level 3 assets held by consolidated investment entities
Balance, at the beginning of the period	(5,171)
Cumulative effect of accounting change		(4,962)
Total Gains (Losses) Included in Net Income-Liabilities	(89)	(339)
Issues, Net-Liabilities	(27)
Settlements, Net-Liabilities	575
Purchases, Sales, Issues and Settlements, Net-Liabilities		130
Balance, at the end of the period	(4,712)	(5,171)
Changes in unrealized gains/ (losses) included in income relating to liabilities held	$ (64)	$ (339)

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SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Details 3) (USD $) In Millions, unless otherwise specified	3 Months Ended												12 Months Ended
	Dec. 31, 2011		Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011		Dec. 31, 2010		Sep. 30, 2010	Jun. 30, 2010	Mar. 31, 2010		Dec. 31, 2011		Dec. 31, 2010		Dec. 31, 2009
Cash Flows from Operating Activities
Net income	$ 298		$ 168	$ 281	$ 223		$ 254		$ 312	$ 398	$ 296		$ 970		$ 1,260		$ 737
Loss (income) from discontinued operations, net of tax	(13)		(2)	4	71		26		2	(2)	(2)		60		24		(1)
Net cash provided by (used in) operating activities													2,178		1,847		(1,318)
Available-for-Sale securities:
Proceeds from sales													888		1,519		5,630
Maturities, sinking fund payments and calls													5,206		6,404		5,855
Purchases													(7,236)		(7,502)		(17,815)
Purchase of other investments													(422)		(102)		(14)
Purchase of land, buildings, equipment and software													(250)		(131)		(83)
Acquisitions															(866)
Proceeds from sale of business	0												150
Other, net													(7)		(15)		7
Net cash used in investing activities													(1,146)		(734)		(6,373)
Cash Flows from Financing Activities
Repayments of debt													(20)		(354)		(550)
Dividends paid to shareholders													(212)		(183)		(164)
Repurchase of common shares													(1,495)		(582)		(11)
Proceeds from issuance of common stock																	869
Issuance of debt, net of issuance costs															744		491
Exercise of stock options													66		113		6
Excess tax benefits from share-based compensation													90		9		12
Other, net															(5)		(2)
Net cash provided by (used in) financing activities													(1,111)		(1,343)		4,545
Net decrease in cash and cash equivalents													(80)	[1]	(236)	[1]	(3,131)	[1]
Cash and cash equivalents at beginning of period					2,861	[1]					3,097	[1]	2,861	[1]	3,097	[1]	6,228	[1]
Cash and cash equivalents at end of period	2,781	[1]					2,861	[1]					2,781	[1]	2,861	[1]	3,097	[1]
Supplemental Disclosures:
Interest paid on debt													201		231		251
Income taxes paid, net													370		61		98
Non-cash financing activity:
Dividends declared but not paid	62												62
Ameriprise Financial, Inc:
Cash Flows from Operating Activities
Net income													1,076		1,097		722
Equity in earnings of subsidiaries excluding discontinued operations													(1,300)		(1,202)		(863)
Loss (income) from discontinued operations, net of tax													60		24		(1)
Dividends received from subsidiaries													1,210		796		204
Other operating activities, primarily with subsidiaries													(231)		921		(90)
Net cash provided by (used in) operating activities													815		1,636		(28)
Available-for-Sale securities:
Proceeds from sales															31		29
Maturities, sinking fund payments and calls													239		151		86
Purchases													(22)		(151)		(139)
Purchase of other investments															(32)
Purchase of land, buildings, equipment and software													(56)		(32)		(29)
Contributions to subsidiaries													(128)		(73)		(233)
Return of capital from subsidiaries													22		116		60
Acquisitions															(866)
Proceeds from sale of business													150
Repayment of loans to subsidiaries													1,252		1,282		1,400
Issuance of loans to subsidiaries													(1,312)		(1,463)		(1,599)
Other, net													2		34		8
Net cash used in investing activities													147		(1,003)		(417)
Cash Flows from Financing Activities
Repayments of debt													(14)		(354)		(550)
Dividends paid to shareholders													(212)		(183)		(164)
Repurchase of common shares													(1,495)		(582)		(11)
Proceeds from issuance of common stock																	869
Issuance of debt, net of issuance costs															744		491
Exercise of stock options													66		113		6
Excess tax benefits from share-based compensation													90		9		12
Other, net													(1)		(2)		(4)
Net cash provided by (used in) financing activities													(1,566)		(255)		649
Net decrease in cash and cash equivalents													(604)		378		204
Cash and cash equivalents at beginning of period					1,316						938		1,316		938		734
Cash and cash equivalents at end of period	712						1,316						712		1,316		938
Supplemental Disclosures:
Interest paid on debt													139		140		122
Income taxes paid, net													334		2		4
Non-cash capital transactions to (from) subsidiaries													(850)		14		331
Non-cash financing activity:
Dividends declared but not paid	$ 62												$ 62

[1] Cash and cash equivalents includes cash held for sale. See Note 24 for additional information.

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Reinsurance

12 Months Ended

Dec. 31, 2011

Reinsurance

Reinsurance

7. Reinsurance

Generally, the Company reinsures 90% of the death benefit liability related to almost all individual fixed and variable universal life and term life insurance products. As a result, the Company typically retains and is at risk for, at most, 10% of each policy's death benefit from the first dollar of coverage for new sales of these policies, subject to the reinsurers fulfilling their obligations. The Company began reinsuring risks at this level during 2001 (2002 for RiverSource Life of NY) for term life insurance and 2002 (2003 for RiverSource Life of NY) for individual fixed and variable universal life insurance. Policies issued prior to these dates are not subject to these same reinsurance levels. Generally, the maximum amount of life insurance risk retained by the Company is $1.5 million on a single life and $1.5 million on any flexible premium survivorship life policy. Risk on fixed and variable universal life policies is reinsured on a yearly renewable term basis. Risk on most term life policies starting in 2001 (2002 for RiverSource Life of NY) is reinsured on a coinsurance basis, a type of reinsurance in which the reinsurer participates proportionally in all material risks and premiums associated with a policy.

For existing LTC policies, the Company retained 50% of the risk and ceded the remaining 50% of the risk on a coinsurance basis to subsidiaries of Genworth Financial, Inc. ("Genworth"). For RiverSource Life of NY, this reinsurance arrangement applies for 1996 and later issues only.

Generally, the Company retains at most $5,000 per month of risk per life on DI policies sold on policy forms introduced in most states in October 2007 (August 2010 for RiverSource Life of NY) and reinsures the remainder of the risk on a coinsurance basis with unaffiliated reinsurance companies. The Company retains all risk for new claims on DI contracts sold on other policy forms. The Company also retains all risk on accidental death benefit claims and substantially all risk associated with waiver of premium provisions.

At December 31, 2011 and 2010, traditional life and UL insurance in force aggregated $191.2 billion and $192.0 billion, respectively, of which $136.2 billion and $134.0 billion were reinsured at the respective year ends. Life insurance in force is reported on a statutory basis.

The Company also reinsures a portion of the risks associated with its personal auto, home and umbrella insurance products through three types of reinsurance agreements with unaffiliated reinsurance companies. The Company purchases reinsurance with a limit of $5 million per loss and the Company retains $750,000 per loss. The Company purchases catastrophe reinsurance with a limit of $90 million per event and retains $10 million per event. Those limits change in 2012 to $110 million and $20 million, respectively. The Company also cedes 90% of every personal umbrella loss with a limit of $5 million.

The effect of reinsurance on premiums was as follows:

	Years Ended December 31,
	2011			2010			2009
	(in millions)
Direct premiums	$	1,421		$	1,382		$	1,317
Reinsurance ceded		(201	)		(203	)		(219	)
Net premiums	$	1,220		$	1,179		$	1,098

Cost of insurance and administrative charges on UL and VUL insurance are reflected in other revenues and were net of reinsurance ceded of $71 million, $67 million and $62 million for the years ended December 31, 2011, 2010 and 2009, respectively.

Reinsurance recovered from reinsurers was $201 million, $172 million and $174 million for the years ended December 31, 2011, 2010 and 2009, respectively. Reinsurance contracts do not relieve the Company from its primary obligation to policyholders.

Receivables included $2.0 billion and $1.9 billion of reinsurance recoverables as of December 31, 2011 and 2010, respectively, including $1.5 billion and $1.4 billion recoverable from Genworth, respectively. Included in future policy benefits and claims were $629 million and $657 million related to assumed reinsurance arrangements as of December 31, 2011 and 2010, respectively.

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Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2011

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

8. Goodwill and Other Intangible Assets

Goodwill and intangible assets deemed to have indefinite lives are not amortized but are instead subject to impairment tests. For the years ended December 31, 2011, 2010 and 2009, the tests did not indicate impairment.

The changes in the carrying amount of goodwill reported in the Company's main operating segments were as follows:

	Advice & Wealth Management			Asset Management			Annuities		Protection		Consolidated
	(in millions)
Balance at January 1, 2010	$	257		$	739		$	46	$	45	$	1,087
Acquisitions		—			97			—		—		97
Foreign currency translation		—			(11	)		—		—		(11	)
Purchase price adjustments		(2	)		(10	)		—		—		(12	)
Balance at December 31, 2010		255			815			46		45		1,161
Acquisitions		—			6			—		—		6
Foreign currency translation		—			(2	)		—		—		(2	)
Purchase price adjustments		—			(1	)		—		—		(1	)
Balance at December 31, 2011	$	255		$	818		$	46	$	45	$	1,164

On April 30, 2010, the Company acquired the long-term asset management business of Columbia Management from Bank of America. The acquisition has enhanced the scale and performance of the Company's retail mutual fund and institutional asset management businesses. The Company recorded the assets and liabilities acquired at fair value and allocated the remaining costs to goodwill and intangible assets.

As of both December 31, 2011 and 2010, the carrying amount of indefinite-lived intangible assets included $630 million of investment management contracts and $67 million of trade names. Identifiable intangible assets with indefinite useful lives acquired during the year ended December 31, 2010 included $615 million of investment management contracts and $57 million of trade names.

Definite-lived intangible assets consisted of the following:

	December 31,
	2011							2010
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
	(in millions)
Customer relationships	$	145	$	(69	)	$	76	$	150	$	(38	)	$	112
Contracts		233		(122	)		111		233		(103	)		130
Other		150		(55	)		95		143		(60	)		83
Total	$	528	$	(246	)	$	282	$	526	$	(201	)	$	325

Definite-lived intangible assets acquired during the year ended December 31, 2011 were $2 million with a weighted average amortization period of 5 years. In 2011, the Company did not record any purchase price adjustments to definite-lived intangible assets. The increase (decrease) to the net carrying amount of definite-lived intangible assets due to changes in foreign currency exchange rates was nil, $(5) million and $13 million for the years ended December 31, 2011, 2010 and 2009, respectively. The aggregate amortization expense for definite-lived intangible assets during the years ended December 31, 2011, 2010 and 2009 was $45 million, $46 million and $32 million, respectively. In 2011, 2010 and 2009, the Company did not record any impairment charges on definite-lived intangible assets.

Estimated intangible amortization expense as of December 31, 2011 for the next five years is as follows:

	(in millions)
2012	$	46
2013		45
2014		40
2015		31
2016		27

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Future Policy Benefits and Claims and Separate Account Liabilities

12 Months Ended

Dec. 31, 2011

Future Policy Benefits and Claims and Separate Account Liabilities

Future Policy Benefits and Claims and Separate Account Liabilities

10. Future Policy Benefits and Claims and Separate Account Liabilities

Future policy benefits and claims consisted of the following:

	December 31,
	2011		2010
	(in millions)
Fixed annuities	$	16,401	$	16,520
EIA accumulated host values		58		100
EIA embedded derivatives		2		3
Variable annuity fixed sub-accounts		4,852		4,868
Variable annuity GMWB		1,377		337
Variable annuity GMAB		237		104
Other variable annuity guarantees		14		13
Total annuities		22,941		21,945
VUL/UL insurance		2,662		2,588
IUL accumulated host values		4		—
IUL embedded derivatives		3		—
VUL/UL insurance additional liabilities		220		143
Other life, disability income and long term care insurance		5,352		5,004
Auto, home and other insurance		420		394
Policy claims and other policyholders' funds		121		134
Total	$	31,723	$	30,208

Separate account liabilities consisted of the following:

	December 31,
	2011		2010
	(in millions)
Variable annuity variable sub-accounts	$	57,556	$	57,862
VUL insurance variable sub-accounts		5,575		5,887
Other insurance variable sub-accounts		43		46
Threadneedle investment liabilities		3,606		4,535
Total	$	66,780	$	68,330

Fixed Annuities

Fixed annuities include both deferred and payout contracts. Deferred contracts offer a guaranteed minimum rate of interest and security of the principal invested. Payout contracts guarantee a fixed income payment for life or the term of the contract. The Company generally invests the proceeds from the annuity payments in fixed rate securities. The Company may hedge the interest rate risks related to fixed annuities with derivative instruments. As of December 31, 2011 and 2010, there were no outstanding derivatives to hedge these risks.

Equity Indexed Annuities

The Index 500 Annuity, the Company's EIA product, is a single premium deferred fixed annuity. The contract is issued with an initial term of seven years and interest earnings are linked to the S&P 500 Index. This annuity has a minimum interest rate guarantee of 3% on 90% of the initial premium, adjusted for any surrenders. The Company generally invests the proceeds from the annuity deposits in fixed rate securities and hedges the equity risk with derivative instruments. See Note 15 for additional information regarding the Company's derivative instruments. In 2007, the Company discontinued new sales of equity indexed annuities.

Variable Annuities

Purchasers of variable annuities can select from a variety of investment options and can elect to allocate a portion to a fixed account. A vast majority of the premiums received for variable annuity contracts are held in separate accounts where the assets are held for the exclusive benefit of those contractholders.

Most of the variable annuity contracts issued by the Company contain one or more guaranteed benefits, including GMWB, GMAB, GMDB and GGU provisions. The Company previously offered contracts with GMIB provisions. See Note 2 and Note 11 for additional information regarding the Company's variable annuity guarantees. The Company does not currently hedge its risk under the GMDB, GGU and GMIB provisions. See Note 15 for additional information regarding derivative instruments used to hedge risks related to GMWB and GMAB provisions.

Insurance Liabilities

VUL/UL is the largest group of insurance policies written by the Company. Purchasers of VUL can select from a variety of investment options and can elect to allocate a portion to a fixed account or a separate account. A vast majority of the premiums received for VUL contracts are held in separate accounts where the assets are held for the exclusive benefit of those policyholders. In 2011, the Company began offering IUL insurance. IUL is similar to UL in that it provides life insurance coverage and cash value that increases as a result of credited interest. Also, like UL, there is a minimum guaranteed credited rate of interest. Unlike UL the rate of credited interest above the minimum guarantee is linked to the S&P 500 Index (subject to a cap). The Company also offers term and whole life insurance as well as disability products. The Company no longer offers LTC products but has in force policies from prior years. Insurance liabilities include accumulation values, unpaid reported claims, incurred but not reported claims and obligations for anticipated future claims.

Portions of the Company's fixed and variable universal life contracts have product features that result in profits followed by losses from the insurance component of the contract. These profits followed by losses can be generated by the cost structure of the product or secondary guarantees in the contract. The secondary guarantee ensures that, subject to specified conditions, the policy will not terminate and will continue to provide a death benefit even if there is insufficient policy value to cover the monthly deductions and charges.

Threadneedle Investment Liabilities

Threadneedle provides a range of unitized pooled pension funds, which invest in property, stocks, bonds and cash. The investments are selected by the clients and are based on the level of risk they are willing to assume. All investment performance, net of fees, is passed through to the investors. The value of the liabilities represents the value of the units in issue of the pooled pension funds.

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Investments (Details 2) (Ameriprise Financial, USD $)	Dec. 31, 2011	Dec. 31, 2010
Fixed maturity securities percentage of total investments	89.00%	89.00%
Investments rated internally	$ 1,200,000,000	$ 1,200,000,000
Amortized Cost	32,442,000,000	31,127,000,000
Fair Value	34,496,000,000	32,609,000,000
Percent of Total Fair Value	100.00%	100.00%
GNMA, FNMA and FHLMC mortgage backed securities, percentage of securities rated AAA	36.00%	29.00%
Holdings of Issuer Other Than GNMA, FNMA and FHLMC as Percentage of Shareholders Equity Maximum	10.00%
AAA
Amortized Cost	11,510,000,000	12,142,000,000
Fair Value	12,105,000,000	12,809,000,000
Percent of Total Fair Value	35.00%	39.00%
AA
Amortized Cost	1,942,000,000	1,843,000,000
Fair Value	2,087,000,000	1,899,000,000
Percent of Total Fair Value	6.00%	6.00%
Credit Rating A
Amortized Cost	5,012,000,000	4,449,000,000
Fair Value	5,442,000,000	4,670,000,000
Percent of Total Fair Value	16.00%	14.00%
BBB
Amortized Cost	11,818,000,000	10,536,000,000
Fair Value	13,050,000,000	11,408,000,000
Percent of Total Fair Value	38.00%	35.00%
Below investment grade
Amortized Cost	2,160,000,000	2,157,000,000
Fair Value	$ 1,812,000,000	$ 1,823,000,000
Percent of Total Fair Value	5.00%	6.00%

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Fair Values of Assets and Liabilities (Details 4) (Ameriprise Financial, USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010
Available-for-Sale Securities, at fair value
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation
Net Investment Income	$ (31)	$ 65
Residential mortgage backed securities
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation
Net Investment Income	(32)	54
Asset backed securities
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation
Net Investment Income	1	11
GMWB and GMAB embedded derivatives
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation
Benefits, claims, losses and settlement expenses	$ (1,035)	$ (15)

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Investments (Details 4) (Ameriprise Financial, USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Net Unrealized Securities Gains (Losses)
Accumulated other comprehensive income (losses), net unrealized securities gains (losses) on Available-for-Sale securities
Balance, at the beginning of the period	$ 946	$ 474	$ (1,479)
Cumulative effect of accounting change			(203)
Net unrealized securities gains arising during the period	572	828	2,792
Reclassification of gains included in net income		(28)	(70)
Impact of DAC, DSIC, benefit reserves and reinsurance recoverables	(340)	(328)	(566)
Balance, at the end of the period	1,178	946	474
Deferred Income Tax
Accumulated other comprehensive income (losses), net unrealized securities gains (losses) on Available-for-Sale securities
Balance, at the beginning of the period	(331)	(164)	518
Cumulative effect of accounting change			71
Net unrealized securities gains arising during the period	(196)	(291)	(977)
Reclassification of gains included in net income		10	25
Impact of DAC, DSIC, benefit reserves and reinsurance recoverables	119	114	199
Balance, at the end of the period	(408)	(331)	(164)
Accumulated Other Comprehensive Income (Loss) Related to Net Unrealized Securities Gains (Losses)
Accumulated other comprehensive income (losses), net unrealized securities gains (losses) on Available-for-Sale securities
Balance, at the beginning of the period	615	310	(961)
Cumulative effect of accounting change			(132)
Net unrealized securities gains arising during the period	376	537	1,815
Reclassification of gains included in net income		(18)	(45)
Impact of DAC, DSIC, benefit reserves and reinsurance recoverables	(221)	(214)	(367)
Balance, at the end of the period	770	615	310
Noncredit related impairments on securities and net unrealized securities losses on previously impaired securities, included in Accumulated Other Comprehensive Income	$ (75)	$ (66)	$ (84)

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Commitments, Guarantees and Contingencies (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Aggregate minimum rentals under noncancelable operating leases
2012	$ 97
2013	88
2014	83
2015	73
2016	61
Thereafter	206
Total	608
Operating lease expense	97	103	103
Funding Commitments
Commercial mortgage loan commitments	19	22
Consumer mortgage loan commitments	730	525
Consumer lines of credit	1,685	1,533
Affordable housing Partnerships	267	188
Total funding commitments	2,701	2,268
Minimum interest rate guarantees, high end of the range (as a percent)	5.00%
Damages sought by plaintiffs	$ 20

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Investments (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Summary of net investment income
Investment income on fixed maturities	$ 1,881	$ 1,920	$ 1,878
Net gains	6	33	53
Affordable housing partnerships	(32)	(20)	(25)
Other	100	101	90
Consolidated investment entities	91	275	2
Net investment income	2,046	2,309	1,998
Ameriprise Financial
Investments	38,775	36,755
Amortized Cost	32,447	31,133
Gross Unrealized Gains	2,575	2,020
Gross Unrealized Losses	(517)	(534)
Fair Value	34,505	32,619
Non-Credit OTTI	(154)	(133)
Corporate debt securities | Ameriprise Financial
Amortized Cost	16,380	15,433
Gross Unrealized Gains	1,741	1,231
Gross Unrealized Losses	(81)	(58)
Fair Value	18,040	16,606
Residential mortgage backed securities | Ameriprise Financial
Amortized Cost	7,440	7,213
Gross Unrealized Gains	287	368
Gross Unrealized Losses	(331)	(323)
Fair Value	7,396	7,258
Non-Credit OTTI	(139)	(117)
Commercial mortgage backed securities | Ameriprise Financial
Amortized Cost	4,430	4,583
Gross Unrealized Gains	291	293
Gross Unrealized Losses	(2)	(8)
Fair Value	4,719	4,868
Asset backed securities | Ameriprise Financial
Amortized Cost	1,968	1,982
Gross Unrealized Gains	61	78
Gross Unrealized Losses	(44)	(40)
Fair Value	1,985	2,020
Non-Credit OTTI	(15)	(16)
State and municipal obligations | Ameriprise Financial
Amortized Cost	2,026	1,666
Gross Unrealized Gains	162	21
Gross Unrealized Losses	(58)	(105)
Fair Value	2,130	1,582
U.S. government and agencies obligations | Ameriprise Financial
Amortized Cost	61	135
Gross Unrealized Gains	10	8
Fair Value	71	143
Foreign government bonds and obligations | Ameriprise Financial
Amortized Cost	126	91
Gross Unrealized Gains	19	17
Gross Unrealized Losses	(1)
Fair Value	144	108
Common Stocks | Ameriprise Financial
Amortized Cost	5	6
Gross Unrealized Gains	4	4
Fair Value	9	10
Other debt obligations | Ameriprise Financial
Amortized Cost	11	24
Fair Value	11	24
Available-for-Sale Securities, at fair value | Ameriprise Financial
Investments	34,505	32,619
Commercial Mortgage Loans, net | Ameriprise Financial
Investments	2,589	2,577
Policy Loans | Ameriprise Financial
Investments	742	733
Other Investments | Ameriprise Financial
Investments	$ 939	$ 826

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Share-Based Compensation (Details) (USD $) In Millions, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2011 Y	Dec. 31, 2010	Dec. 31, 2009
Share-based Compensation Arrangement by Share-based Payment Award
Share-based compensation expense	$ 158	$ 198	$ 178
Tax benefit related to share-based compensation expense	53	67	63
Total unrecognized compensation cost related to non-vested awards	132
Weighted-average period to recognize compensation cost (in years)	2.0
Amended and Restated Ameriprise Financial 2005 Incentive Compensation Plan
Share-based Compensation Arrangement by Share-based Payment Award
Maximum shares which may be issued under incentive plan (in shares)	37.9
Maximum shares which may be issued for full value awards under the 2005 Incentive Compensation Plan	6.0
Ameriprise Financial Deferred Compensation Plan
Share-based Compensation Arrangement by Share-based Payment Award
Award vesting period (in years)	3 years
Ameriprise Financial 2008 Employment Incentive Equity Award Plan
Share-based Compensation Arrangement by Share-based Payment Award
Maximum shares which may be issued under incentive plan (in shares)	6.0
Franchise Advisor Deferral Plan
Share-Based Compensation
Percentage of stock match provided by an entity for eligible deferrals under Franchise Advisor Deferral Plan		15.00%	25.00%
Stock option
Share-based Compensation Arrangement by Share-based Payment Award
Share-based compensation expense	43	41	53
Minimum stock option exercise price as a percentage of current fair market value of common stock	100.00%
Maximum term of stock options granted (in years)	10
Minimum vesting period (in years)	P3Y
Maximum vesting period (in years)	P4Y
Weighted average assumptions used for stock option grants
Dividend yield (as a percent)	1.30%	1.50%	2.00%
Expected volatility (as a percent)	44.00%	50.00%	55.00%
Risk-free interest rate (as a percent)	2.30%	2.30%	1.80%
Expected life of stock option (in years)	5.0	5.0	5.0
Weighted average grant date fair value for options granted (in dollars per share)	$ 21.38	$ 15.89	$ 8.93
Summary of stock option activity
Outstanding, at the beginning of the period (in shares)	19.5
Granted (in shares)	1.8
Exercised (in shares)	(2.1)
Forfeited (in shares)	(0.3)
Outstanding, at the end of the period (in shares)	18.9	19.5
Exercisable (in shares)	12.1
Weighted-average Exercise Price at the beginning of the period (in dollars per share)	$ 35.96
Weighted Average Exercise Price Granted (in dollars per share)	$ 58.58
Weighted Average Exercise Price Exercised (in dollars per share)	$ 30.63
Weighted Average Exercise Price Forfeited (in dollars per share)	$ 30.75
Weighted-average Exercise Price at the end of the period (in dollars per share)	$ 38.85	$ 35.96
Weighted Average Exercise Price Exercisable (in dollars per share)	$ 40.56
Weighted-average remaining contractual life of options outstanding, at the beginning of the period (in years)	6.7
Weighted-average remaining contractual life of options outstanding, at the end of the period (in years)	5.3	6.7
Weighted-average remaining contractual life of options exercisable (in years)	5.0
Aggregate intrinsic value of options outstanding, at the beginning of the period (in dollars)	423
Aggregate intrinsic value of options outstanding, at the end of the period (in dollars)	241	423
Aggregate intrinsic value of options exercisable (in dollars)	132
Total intrinsic value of options exercised	58	70	2
Restricted stock awards
Share-based Compensation Arrangement by Share-based Payment Award
Share-based compensation expense	50	37	59
Award vesting period (in years)	5 years
Minimum vesting period (in years)	P3Y
Maximum vesting period (in years)	P4Y
Summary of restricted stock award activity
Non-vested at the beginning of the period (in shares)	3.6
Granted (in shares)	0.5
Vested (in shares)	(1.0)
Forfeited (in shares)	(0.2)
Non-vested at the end of the period (in shares)	2.9	3.6
Weighted-Average Grant-date Fair Value, Non-vested at the beginning of the period (in dollars per share)	$ 31.08
Weighted-Average Grant-date Fair Value, Granted during the period (in dollars per share)	$ 58.68
Weighted-Average Grant-date Fair Value, Vested during the period (in dollars per share)	$ 40.36
Weighted-Average Grant-date Fair Value, Forfeited during the period (in dollars per share)	$ 32.71
Weighted-Average Grant-date Fair Value, Non-vested at the end of the period (in dollars per share)	$ 32.33	$ 31.08
Total fair value of equity instruments other than options vested in period (in dollars)	54	42	27
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award
Share-based compensation expense	52	80	70
Minimum vesting period (in years)	P3Y
Maximum vesting period (in years)	P4Y
Summary of restricted stock award activity
Vested (in shares)	1.1
Units outstanding at the end of the period (in shares).	1.4
Liability awards
Share-based Compensation Arrangement by Share-based Payment Award
Share-based compensation expense	13	40	(4)
Performance units | Franchise Advisor Deferral Plan
Share-based Compensation Arrangement by Share-based Payment Award
Share-based compensation expense	38	70	60
Maximum shares which may be issued under incentive plan (in shares)	8.5
Maximum vesting period (in years)	P4Y
Summary of restricted stock award activity
Vested (in shares)	4.4
Units outstanding at the end of the period (in shares).	5.2
Share-based bonus awards | Employee Advisor Deferral Plan
Share-based Compensation Arrangement by Share-based Payment Award
Maximum shares which may be issued under incentive plan (in shares)	3.0
Summary of restricted stock award activity
Units outstanding at the end of the period (in shares).	0.3
Equity incentive plan and equity participation plan
Share-Based Compensation
Cash settlements of EPP and EIP awards	14	18	5
Equity incentive plan (EIP)
Share-based Compensation Arrangement by Share-based Payment Award
Share-based compensation expense	$ 19
Share-Based Compensation
Percentage of vesting of awards under the equity incentive plan	100.00%	100.00%
Award vesting period (in years)	2.5	3
Period of cash-out under cash award programs (in years)		6
Equity participation plan (EPP)
Share-Based Compensation
Period of cash-out under cash award programs (in years)	5
Percentage of vesting after three years under the equity participation plan	50.00%
Percentage of vesting after four years under the equity participation plan	50.00%

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Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2011

Summary of Significant Accounting Policies

Principles of Consolidation

The Company consolidates entities in which it holds a greater than 50% voting interest, or when certain conditions are met for VIEs and limited partnerships. Entities in which the Company exercises significant influence or holds a greater than 20% but less than 50% voting interest are accounted for under the equity method. All other investments that are not reported at fair value as trading or Available-for-Sale securities are accounted for under the cost method where the Company owns less than a 20% voting interest and does not exercise significant influence.

A VIE is an entity that either has equity investors that lack certain essential characteristics of a controlling financial interest (including substantive voting rights, the obligation to absorb the entity's losses, or the rights to receive the entity's returns) or has equity investors that do not provide sufficient financial resources for the entity to support its activities. A VIE is required to be assessed for consolidation under two models:

•

If the VIE is a money market fund or is an investment company, or has the financial characteristics of an investment company, and the following is true:

(i)

the entity does not have an explicit or implicit obligation to fund the investment company's losses; and

(ii)

the investment company is not a securitization entity, asset backed financing entity, or an entity formally considered a qualifying special purpose entity,

• then, the VIE will be consolidated by the entity that determines it stands to absorb a majority of the VIE's expected losses or to receive a majority of the VIE's expected residual returns. Examples of entities that are likely to be assessed for consolidation under this framework include hedge funds, property funds, private equity funds and venture capital funds.

•

If the VIE does not meet the criteria above, the VIE will be consolidated by the entity that determines it has both:

(i)

the power to direct the activities of the VIE that most significantly impact the VIE's economic performance; and

(ii)

the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE.

When determining whether the Company stands to absorb the majority of a VIE's expected losses or receive a majority of a VIE's expected returns, it analyzes the design of the VIE to identify the variable interests it holds. Then the Company quantitatively determines whether its variable interests will absorb a majority of the VIE's variability. If the Company determines it has control over the activities that most significantly impact the economic performance of the VIE and it will absorb a majority of the VIE's expected variability, the Company consolidates the VIE. The calculation of variability is based on an analysis of projected probability-weighted cash flows based on the design of the particular VIE. When determining whether the Company has the power and the obligation to absorb losses or rights to receive benefits from the VIE that could potentially be significant, the Company qualitatively determines if its variable interests meet these criteria. If the Company consolidates a VIE under either scenario, it is referred to as the VIE's primary beneficiary.

The Company consolidates certain limited partnerships that are not VIEs, for which the Company is the general partner and is determined to control the limited partnership. As a general partner, the Company is presumed to control the limited partnership unless the limited partners have the ability to dissolve the partnership or have substantive participating rights.

Foreign Currency Translation

Net assets of foreign subsidiaries, whose functional currency is other than the U.S. dollar, are translated into U.S. dollars based upon exchange rates prevailing at the end of each year. The resulting translation adjustment, along with any related hedge and tax effects, are included in accumulated other comprehensive income (loss). Revenues and expenses are translated at average exchange rates during the year.

Amounts Based on Estimates and Assumptions

Accounting estimates are an integral part of the Consolidated Financial Statements. In part, they are based upon assumptions concerning future events. Among the more significant are those that relate to investment securities valuation and recognition of other-than-temporary impairments, deferred acquisition costs ("DAC") and the corresponding recognition of DAC amortization, derivative instruments and hedging activities, litigation and claims reserves and income taxes and the recognition of deferred tax assets and liabilities. These accounting estimates reflect the best judgment of management and actual results could differ.

Cash and Cash Equivalents

Cash equivalents include time deposits and other highly liquid investments with original maturities of 90 days or less.

Investments

Available-for-Sale Securities

Available-for-Sale securities are carried at fair value with unrealized gains (losses) recorded in accumulated other comprehensive income (loss), net of impacts to DAC, deferred sales inducement costs ("DSIC"), certain benefit reserves and income taxes. Gains and losses are recognized in the Consolidated Statements of Operations upon disposition of the securities.

Effective January 1, 2009, the Company early adopted an accounting standard that significantly changed the Company's accounting policy regarding the timing and amount of other-than-temporary impairments for Available-for-Sale securities as follows. When the fair value of an investment is less than its amortized cost, the Company assesses whether or not: (i) it has the intent to sell the security (made a decision to sell) or (ii) it is more likely than not that the Company will be required to sell the security before its anticipated recovery. If either of these conditions is met, an other-than-temporary impairment is considered to have occurred and the Company must recognize an other-than-temporary impairment for the difference between the investment's amortized cost basis and its fair value through earnings. For securities that do not meet the above criteria, and the Company does not expect to recover a security's amortized cost basis, the security is also considered other-than-temporarily impaired. For these securities, the Company separates the total impairment into the credit loss component and the amount of the loss related to other factors. The amount of the total other-than-temporary impairments related to credit loss is recognized in earnings. The amount of the total other-than-temporary impairments related to other factors is recognized in other comprehensive income (loss), net of impacts to DAC, DSIC, certain benefit reserves and income taxes. For Available-for-Sale securities that have recognized an other-than-temporary impairment through earnings, if through subsequent evaluation there is a sustained increase in the cash flow expected, the difference between the amortized cost basis and the cash flows expected to be collected is accreted as interest income. Subsequent increases and decreases in the fair value of Available-for-Sale securities are included in other comprehensive income (loss). The Company's Consolidated Statements of Equity present all changes in other comprehensive income (loss) associated with Available-for-Sale debt securities that have been other-than-temporarily impaired on a separate line from fair value changes recorded in other comprehensive income (loss) from all other securities.

The Company provides a supplemental disclosure on the face of its Consolidated Statements of Operations that presents: (i) total other-than-temporary impairment losses recognized during the period and (ii) the portion of other-than-temporary impairment losses recognized in other comprehensive income (loss). The sum of these amounts represents the credit-related portion of other-than-temporary impairments that were recognized in earnings during the period. The portion of other-than-temporary losses recognized in other comprehensive income (loss) includes: (i) the portion of other-than-temporary impairment losses related to factors other than credit recognized during the period and (ii) reclassifications of other-than-temporary impairment losses previously determined to be related to factors other than credit that are determined to be credit-related in the current period. The amount presented on the Consolidated Statements of Operations as the portion of other-than-temporary losses recognized in other comprehensive income (loss) excludes subsequent increases and decreases in the fair value of these securities.

For all securities that are considered temporarily impaired, the Company does not intend to sell these securities (has not made a decision to sell) and it is not more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis. The Company believes that it will collect all principal and interest due on all investments that have amortized cost in excess of fair value that are considered only temporarily impaired.

Factors the Company considers in determining whether declines in the fair value of fixed maturity securities are other-than-temporary include: (i) the extent to which the market value is below amortized cost; (ii) the duration of time in which there has been a significant decline in value; (iii) fundamental analysis of the liquidity, business prospects and overall financial condition of the issuer; and (iv) market events that could impact credit ratings, economic and business climate, litigation and government actions, and similar external business factors. In order to determine the amount of the credit loss component for corporate debt securities considered other-than-temporarily impaired, a best estimate of the present value of cash flows expected to be collected discounted at the security's effective interest rate is compared to the amortized cost basis of the security. The significant inputs to cash flow projections consider potential debt restructuring terms, projected cash flows available to pay creditors and the Company's position in the debtor's overall capital structure.

For structured investments (e.g., residential mortgage backed securities, commercial mortgage backed securities and asset backed securities), the Company also considers factors such as overall deal structure and its position within the structure, quality of underlying collateral, delinquencies and defaults, loss severities, recoveries, prepayments and cumulative loss projections in assessing potential other-than-temporary impairments of these investments. Based upon these factors, securities that have indicators of potential other-than-temporary impairment are subject to detailed review by management. Securities for which declines are considered temporary continue to be carefully monitored by management.

Other Investments

Other investments primarily reflect the Company's interests in affordable housing partnerships, trading securities, seed money investments and syndicated loans. Affordable housing partnerships and seed money investments are accounted for under the equity method. Trading securities primarily include common stocks and trading bonds. Trading securities are carried at fair value with unrealized and realized gains (losses) recorded within net investment income.

Financing Receivables

Commercial Mortgage Loans, Syndicated Loans, and Consumer Bank Loans

Commercial mortgage loans are reflected within investments at amortized cost less the allowance for loan losses. Syndicated loans represent the Company's investment in below investment grade loan syndications. Syndicated loans are reflected in investments at amortized cost less the allowance for loan losses.

The Company provides consumer lending through its banking subsidiary, Ameriprise Bank, FSB ("Ameriprise Bank"). The Company's consumer lending products primarily include home equity lines of credit, first mortgage lines of credit, credit cards and other revolving lines of credit. The loans are reflected in receivables at amortized cost less the allowance for loan losses.

Interest income is accrued on the unpaid principal balances of the loans as earned.

Other Loans

Other loans consist of policy loans and brokerage margin loans. Policy loans include life insurance policy, annuity and investment certificate loans and are reflected within investments at the unpaid principal balance, plus accrued interest. When originated, the loan balances do not exceed the cash surrender value of the underlying products. As there is minimal risk of loss related to policy loans, the Company does not record an allowance for loan losses for policy loans. The Company's broker dealer subsidiaries enter into lending arrangements with clients through the normal course of business, which are primarily based on customer margin levels. These balances are reported at the unpaid principal balance within receivables. The Company monitors the market value of collateral supporting the margin loans and requests additional collateral when necessary in order to mitigate the risk of loss. As there is minimal risk of loss related to margin loans, the allowance for loan losses is immaterial.

Nonaccrual Loans

Generally, loans are evaluated for or placed on nonaccrual status when either the collection of interest or principal has become 90 days past due or is otherwise considered doubtful of collection. When a loan is placed on nonaccrual status, unpaid accrued interest is reversed. Interest payments received on loans on nonaccrual status are generally applied to principal or in accordance with the loan agreement unless the remaining principal balance has been determined to be fully collectible.

Revolving unsecured consumer lines, including credit card loans, are charged off at 180 days past due. Closed-end consumer loans, other than loans secured by one to four family properties, are charged off at 120 days past due and are generally not placed on nonaccrual status. Loans secured by one to four family properties are charged off when management determines the assets are uncollectible and commences foreclosure proceedings on the property, at which time the property is written down to fair value less selling costs and recorded as real estate owned in other assets. Commercial mortgage loans are evaluated for impairment when the loan is considered for nonaccrual status, restructured or foreclosure proceedings are initiated on the property. If it is determined that the fair value is less than the current loan balance, it is written down to fair value less selling costs. Foreclosed property is recorded as real estate owned in other assets. Syndicated loans are placed on nonaccrual status when management determines it will not collect all contractual principal and interest on the loan.

Allowance for Loan Losses

Management determines the adequacy of the allowance for loan losses by portfolio based on the overall loan portfolio composition, recent and historical loss experience, and other pertinent factors, including when applicable, internal risk ratings, loan-to-value ("LTV") ratios, FICO scores of the borrower, debt service coverage and occupancy rates, along with economic and market conditions. This evaluation is inherently subjective as it requires estimates, which may be susceptible to significant change.

The Company determines the amount of the allowance required for certain sectors based on management's assessment of relative risk characteristics of the loan portfolio. The allowance is recorded for homogeneous loan categories on a pool basis, based on an analysis of product mix and risk characteristics of the portfolio, including geographic concentration, bankruptcy experiences, and historical losses, adjusted for current trends and market conditions.

While the Company attributes portions of the allowance to specific loan pools as part of the allowance estimation process, the entire allowance is available to absorb losses inherent in the total loan portfolio. The allowance is increased through provisions charged to net investment income and reduced/increased by net charge-offs/recoveries.

Impaired Loans

The Company considers a loan to be impaired when, based on current information and events, it is probable the Company will not be able to collect all amounts due (both interest and principal) according to the contractual terms of the loan agreement. Impaired loans may also include loans that have been modified in troubled debt restructurings as a concession to borrowers experiencing financial difficulties. Management evaluates for impairment all restructured loans and loans with higher impairment risk factors. The impairment recognized is measured as the excess of the loan's recorded investment over: (i) the present value of its expected principal and interest payments discounted at the loan's effective interest rate, (ii) the fair value of collateral or (iii) the loan's observable market price.

Restructured Loans

A loan is classified as a restructured loan when the Company makes certain concessionary modifications to contractual terms for borrowers experiencing financial difficulties. When the interest rate, minimum payments, and/or due dates have been modified in an attempt to make the loan more affordable to a borrower experiencing financial difficulties, the modification is considered a troubled debt restructuring. Generally, performance prior to the restructuring or significant events that coincide with the restructuring are considered in assessing whether the borrower can meet the new terms which may result in the loan being returned to accrual status at the time of the restructuring or after a performance period. If the borrower's ability to meet the revised payment schedule is not reasonably assured, the loan remains on nonaccrual status.

Separate Account Assets and Liabilities

Separate account assets and liabilities are primarily funds held for the exclusive benefit of variable annuity contractholders and variable life insurance policyholders, who assume the related investment risk. Income and losses on separate account assets accrue directly to the contractholder or policyholder and are not reported in the Company's Consolidated Statements of Operations. Separate account assets are recorded at fair value. Changes in the fair value of separate account assets are offset by changes in the related separate account liabilities. The Company receives investment management fees, mortality and expense risk fees, guarantee fees and cost of insurance charges from the related accounts.

Included in separate account liabilities are investment liabilities of Threadneedle which represent the value of the units in issue of the pooled pension funds that are offered by Threadneedle's subsidiary, Threadneedle Pensions Limited.

Restricted and Segregated Cash and Investments

Total restricted cash at December 31, 2011 and 2010 was $79 million and $110 million, respectively, which cannot be utilized for operations. The Company's restricted cash at December 31, 2011 and 2010 was primarily cash held by Threadneedle for the benefit of customers and cash that has been pledged to counterparties. At both December 31, 2011 and 2010, amounts segregated under federal and other regulations were $1.7 billion, segregated in special reserve bank accounts for the exclusive benefit of the Company's brokerage customers.

Land, Buildings, Equipment and Software

Land, buildings, equipment and internally developed or purchased software are carried at cost less accumulated depreciation or amortization and are reflected within other assets. The Company generally uses the straight-line method of depreciation and amortization over periods ranging from three to 30 years.

Goodwill and Other Intangible Assets

Goodwill represents the amount of an acquired company's acquisition cost in excess of the fair value of assets acquired and liabilities assumed. The Company evaluates goodwill for impairment annually on the measurement date of July 1 and whenever events and circumstances indicate that an impairment may have occurred, such as a significant adverse change in the business climate or a decision to sell or dispose of a reporting unit. In determining whether impairment has occurred, the Company uses the discounted cash flow method, a variation of the income approach.

Intangible assets are amortized over their estimated useful lives unless they are deemed to have indefinite useful lives. The Company evaluates the definite lived intangible assets remaining useful lives annually and tests for impairment whenever events and circumstances indicate that an impairment may have occurred, such as a significant adverse change in the business climate. For definite lived intangible assets subject to amortization, impairment to fair value is recognized if the carrying amount is not recoverable. Indefinite lived intangibles are also tested for impairment annually or whenever circumstances indicate an impairment may have occurred. Impairment is recognized by the amount carrying value exceeds fair value.

Goodwill and other intangible assets are reflected in other assets.

Derivative Instruments and Hedging Activities

Freestanding derivative instruments are recorded at fair value and are reflected in other assets or other liabilities. The Company's policy is to not offset fair value amounts recognized for derivatives and collateral arrangements executed with the same counterparty under the same master netting arrangement. The accounting for changes in the fair value of a derivative instrument depends on its intended use and the resulting hedge designation, if any. The Company primarily uses derivatives as economic hedges that are not designated as accounting hedges or do not qualify for hedge accounting treatment. The Company occasionally designates derivatives as (i) hedges of changes in the fair value of assets, liabilities, or firm commitments ("fair value hedges"), (ii) hedges of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability ("cash flow hedges"), or (iii) hedges of foreign currency exposures of net investments in foreign operations ("net investment hedges in foreign operations").

Derivative instruments that are entered into for hedging purposes are designated as such at the time the Company enters into the contract. For all derivative instruments that are designated for hedging activities, the Company formally documents all of the hedging relationships between the hedge instruments and the hedged items at the inception of the relationships. Management also formally documents its risk management objectives and strategies for entering into the hedge transactions. The Company formally assesses, at inception and on a quarterly basis, whether derivatives designated as hedges are highly effective in offsetting the fair value or cash flows of hedged items. If it is determined that a derivative is no longer highly effective as a hedge, the Company will discontinue the application of hedge accounting.

For derivative instruments that do not qualify for hedge accounting or are not designated as accounting hedges, changes in fair value are recognized in current period earnings. Changes in fair value of derivatives are presented in the Consolidated Statements of Operations based on the nature and use of the instrument. Changes in fair value of derivatives used as economic hedges are presented in the Consolidated Statements of Operations with the corresponding change in the hedged asset or liability.

For derivative instruments that qualify as fair value hedges, changes in the fair value of the derivatives, as well as changes in the fair value of the hedged assets, liabilities or firm commitments, are recognized on a net basis in current period earnings. The carrying value of the hedged item is adjusted for the change in fair value from the designated hedged risk. If a fair value hedge designation is removed or the hedge is terminated prior to maturity, previous adjustments to the carrying value of the hedged item are recognized into earnings over the remaining life of the hedged item.

For derivative instruments that qualify as cash flow hedges, the effective portion of the gain or loss on the derivative instruments is reported in accumulated other comprehensive income (loss) and reclassified into earnings when the hedged item or transaction impacts earnings. The amount that is reclassified into earnings is presented in the Consolidated Statements of Operations with the hedged instrument or transaction impact. Any ineffective portion of the gain or loss is reported in current period earnings as a component of net investment income. If a hedge designation is removed or a hedge is terminated prior to maturity, the amount previously recorded in accumulated other comprehensive income (loss) is reclassified to earnings over the period that the hedged item impacts earnings. For hedge relationships that are discontinued because the forecasted transaction is not expected to occur according to the original strategy, any related amounts previously recorded in accumulated other comprehensive income (loss) are recognized in earnings immediately.

For derivative instruments that qualify as net investment hedges in foreign operations, the effective portion of the change in fair value of the derivatives is recorded in accumulated other comprehensive income (loss) as part of the foreign currency translation adjustment. Any ineffective portion of the net investment hedges in foreign operations is recognized in net investment income during the period of change.

See Note 14 for information regarding the Company's fair value measurement of derivative instruments and Note 15 for the impact of derivatives on the Consolidated Statements of Operations.

The equity component of equity indexed annuity ("EIA"), indexed universal life ("IUL") and stock market certificate obligations are considered embedded derivatives. Additionally, certain annuities contain guaranteed minimum accumulation benefit ("GMAB") and guaranteed minimum withdrawal benefit ("GMWB") provisions. The GMAB and the non-life contingent benefits associated with GMWB provisions are also considered embedded derivatives. The fair value of embedded derivatives associated with annuities and IUL is included in future policy benefits and claims, whereas the fair value of stock market certificate embedded derivatives is included in customer deposits. The changes in the fair value of the EIA and IUL embedded derivatives are reflected in interest credited to fixed accounts. The changes in the fair value of the stock market certificate embedded derivatives are included in banking and deposit interest expense. The changes in the fair value of the GMAB and GMWB embedded derivatives are reflected in benefits, claims, losses and settlement expenses.

Deferred Acquisition Costs

DAC represent the costs of acquiring new business, principally direct sales commissions and other distribution and underwriting costs that have been deferred on the sale of annuity and insurance products and, to a lesser extent, certain mutual fund products. These costs are deferred to the extent they are recoverable from future profits or premiums. The DAC associated with insurance or annuity contracts that are significantly modified or internally replaced with another contract are accounted for as contract terminations. These transactions are anticipated in establishing amortization periods and other valuation assumptions.

Direct sales commissions and other costs deferred as DAC are amortized over time. For annuity and universal life ("UL") contracts, DAC are amortized based on projections of estimated gross profits over amortization periods equal to the approximate life of the business. For other insurance products, DAC are generally amortized as a percentage of premiums over amortization periods equal to the premium-paying period. For certain mutual fund products, DAC are generally amortized over fixed periods on a straight-line basis adjusted for redemptions.

For annuity and UL insurance products, the assumptions made in projecting future results and calculating the DAC balance and DAC amortization expense are management's best estimates. Management is required to update these assumptions whenever it appears that, based on actual experience or other evidence, earlier estimates should be revised. When assumptions are changed, the percentage of estimated gross profits used to amortize DAC might also change. A change in the required amortization percentage is applied retrospectively; an increase in amortization percentage will result in a decrease in the DAC balance and an increase in DAC amortization expense, while a decrease in amortization percentage will result in an increase in the DAC balance and a decrease in DAC amortization expense. The impact on results of operations of changing assumptions can be either positive or negative in any particular period and is reflected in the period in which such changes are made.

For other life and health insurance products, the assumptions made in calculating the DAC balance and DAC amortization expense are consistent with those used in determining the liabilities and, therefore, are intended to provide for adverse deviations in experience and are revised only if management concludes experience will be so adverse that DAC are not recoverable. If management concludes that DAC are not recoverable, DAC are reduced to the amount that is recoverable based on best estimate assumptions and there is a corresponding expense recorded in the Consolidated Statements of Operations.

For annuity, life and health insurance products, key assumptions underlying those long-term projections include interest rates (both earning rates on invested assets and rates credited to contractholder and policyholder accounts), equity market performance, mortality and morbidity rates and the rates at which policyholders are expected to surrender their contracts, make withdrawals from their contracts and make additional deposits to their contracts. Assumptions about earned and credited interest rates are the primary factors used to project interest margins, while assumptions about equity and bond market performance are the primary factors used to project client asset value growth rates, and assumptions about surrenders, withdrawals and deposits comprise projected persistency rates. Management must also make assumptions to project maintenance expenses associated with servicing the Company's annuity and insurance businesses during the DAC amortization period.

The client asset value growth rates are the rates at which variable annuity and variable universal life ("VUL") insurance contract values invested in separate accounts are assumed to appreciate in the future. The rates used vary by equity and fixed income investments. Management reviews and, where appropriate, adjusts its assumptions with respect to client asset value growth rates on a regular basis. The Company typically uses a five-year mean reversion process as a guideline in setting near-term equity fund growth rates based on a long-term view of financial market performance as well as recent actual performance. The suggested near-term equity fund growth rate is reviewed quarterly to ensure consistency with management's assessment of anticipated equity market performance. DAC amortization expense recorded in a period when client asset value growth rates exceed management's near-term estimate will typically be less than in a period when growth rates fall short of management's near-term estimate.

The Company monitors other principal DAC amortization assumptions, such as persistency, mortality, morbidity, interest margin and maintenance expense levels each quarter and, when assessed independently, each could impact the Company's DAC balances.

The analysis of DAC balances and the corresponding amortization is a dynamic process that considers all relevant factors and assumptions described previously. Unless the Company's management identifies a significant deviation over the course of the quarterly monitoring, management reviews and updates these DAC amortization assumptions annually in the third quarter of each year.

Deferred Sales Inducement Costs

DSIC consist of bonus interest credits and premium credits added to certain annuity contract and insurance policy values. These benefits are capitalized to the extent they are incremental to amounts that would be credited on similar contracts without the applicable feature. The amounts capitalized are amortized using the same methodology and assumptions used to amortize DAC. DSIC is recorded in other assets, and amortization of DSIC is recorded in benefits, claims, losses and settlement expenses.

Reinsurance

The Company cedes significant amounts of insurance risk to other insurers under reinsurance agreements. Reinsurance premiums paid and benefits received are accounted for consistently with the basis used in accounting for the policies from which risk is reinsured and consistently with the terms of the reinsurance contracts. Reinsurance premiums for traditional life, long term care ("LTC"), disability income ("DI") and auto and home ceded on a coinsurance basis, net of the change in any prepaid reinsurance asset, are reported as a reduction of premiums. Fixed and variable universal life reinsurance premiums are reported as a reduction of other revenues. In addition, for fixed and variable universal life insurance policies, the net cost of reinsurance ceded, which represents the discounted amount of the expected cash flows between the reinsurer and the Company, is recognized as an asset and amortized over the term of the reinsurance contract, in proportion to the estimated gross profits and is subject to retrospective adjustment in a manner similar to retrospective adjustment of DAC. The assumptions used to project the expected cash flows are consistent with those used for DAC asset valuation for the same contracts. Changes in the net cost of reinsurance are reflected as a component of other revenues. Reinsurance recoveries are reported as components of benefits, claims, losses and settlement expenses.

Insurance liabilities are reported before the effects of reinsurance. Future policy benefits and claims recoverable under reinsurance contracts are recorded within receivables.

The Company also assumes life insurance and fixed annuity business from other insurers in limited circumstances. Reinsurance premiums received and benefits paid are accounted for consistently with the basis used in accounting for the policies from which risk is reinsured and consistently with the terms of the reinsurance contracts. Liabilities for assumed business are recorded within future policy benefits and claims.

See Note 7 for additional information on reinsurance.

Future Policy Benefits and Claims

Fixed Annuities and Variable Annuity Guarantees

Future policy benefits and claims related to fixed annuities and variable annuity guarantees include liabilities for fixed account values on fixed and variable deferred annuities, guaranteed benefits associated with variable annuities, equity indexed annuities and fixed annuities in a payout status.

Liabilities for fixed account values on fixed and variable deferred annuities are equal to accumulation values, which are the cumulative gross deposits and credited interest less withdrawals and various charges.

The majority of the variable annuity contracts offered by the Company contain guaranteed minimum death benefit ("GMDB") provisions. When market values of the customer's accounts decline, the death benefit payable on a contract with a GMDB may exceed the contract accumulation value. The Company also offers variable annuities with death benefit provisions that gross up the amount payable by a certain percentage of contract earnings, which are referred to as gain gross-up ("GGU") benefits. In addition, the Company offers contracts containing GMWB and GMAB provisions, and until May 2007, the Company offered contracts containing guaranteed minimum income benefit ("GMIB") provisions.

In determining the liabilities for GMDB, GMIB and the life contingent benefits associated with GMWB, the Company projects these benefits and contract assessments using actuarial models to simulate various equity market scenarios. Significant assumptions made in projecting future benefits and assessments relate to customer asset value growth rates, mortality, persistency and investment margins and are consistent with those used for DAC asset valuation for the same contracts. As with DAC, management reviews and, where appropriate, adjusts its assumptions each quarter. Unless management identifies a material deviation over the course of quarterly monitoring, management reviews and updates these assumptions annually in the third quarter of each year.

The GMDB liability is determined by estimating the expected value of death benefits in excess of the projected contract accumulation value and recognizing the excess over the estimated meaningful life based on expected assessments (e.g., mortality and expense fees, contractual administrative charges and similar fees).

If elected by the contract owner and after a stipulated waiting period from contract issuance, a GMIB guarantees a minimum lifetime annuity based on a specified rate of contract accumulation value growth and predetermined annuity purchase rates. The GMIB liability is determined each period by estimating the expected value of annuitization benefits in excess of the projected contract accumulation value at the date of annuitization and recognizing the excess over the estimated meaningful life based on expected assessments.

The embedded derivatives related to GMAB and the non-life contingent benefits associated with GMWB provisions are recorded at fair value. See Note 14 for information regarding the fair value measurement of embedded derivatives. The liability for the life contingent benefits associated with GMWB provisions is determined in the same way as the GMDB liability. Significant assumptions made in projecting future benefits and fees relate to persistency and benefit utilization. As with DAC, management reviews, and where appropriate, adjusts its assumptions each quarter. Unless management identifies a material deviation over the course of quarterly monitoring, management reviews and updates these assumptions annually in the third quarter of each year. The changes in both the fair values of the GMWB and GMAB embedded derivatives and the liability for life contingent benefits are reflected in benefits, claims, losses and settlement expenses.

Liabilities for equity indexed annuities are equal to the accumulation of host contract values covering guaranteed benefits and the fair value of embedded equity options.

Liabilities for fixed annuities in a benefit or payout status are based on future estimated payments using established industry mortality tables and interest rates.

Life and Health Insurance

Future policy benefits and claims related to life and health insurance include liabilities for fixed account values on fixed and variable universal life policies, liabilities for indexed accounts of IUL products, liabilities for unpaid amounts on reported claims, estimates of benefits payable on claims incurred but not yet reported and estimates of benefits that will become payable on term life, whole life and health insurance policies as claims are incurred in the future.

Liabilities for fixed account values on fixed and variable universal life insurance are equal to accumulation values. Accumulation values are the cumulative gross deposits and credited interest less various contractual expense and mortality charges and less amounts withdrawn by policyholders.

Liabilities for indexed accounts of IUL products are equal to the accumulation of host contract values covering guaranteed benefits and the fair value of embedded equity options.

A portion of the Company's fixed and variable universal life contracts have product features that result in profits followed by losses from the insurance component of the contract. These profits followed by losses can be generated by the cost structure of the product or secondary guarantees in the contract. The secondary guarantee ensures that, subject to specified conditions, the policy will not terminate and will continue to provide a death benefit even if there is insufficient policy value to cover the monthly deductions and charges.

In determining the liability for contracts with profits followed by losses, the Company projects benefits and contract assessments using actuarial models. Significant assumptions made in projecting future benefits and assessments relate to customer asset value growth rates, mortality, persistency and investment margins and are consistent with those used for DAC asset valuation for the same contracts. As with DAC, management reviews, and where appropriate, adjusts its assumptions each quarter. Unless management identifies a material deviation over the course of quarterly monitoring, management reviews and updates these assumptions annually in the third quarter of each year.

The liability for these future losses is determined by estimating the death benefits in excess of account value and recognizing the excess over the estimated meaningful life based on expected assessments (e.g. cost of insurance charges, contractual administrative charges, similar fees and investment margin). See Note 10 for information regarding the liability for contracts with secondary guarantees.

Liabilities for unpaid amounts on reported life insurance claims are equal to the death benefits payable under the policies. Liabilities for unpaid amounts on reported health insurance claims include any periodic or other benefit amounts due and accrued, along with estimates of the present value of obligations for continuing benefit payments. These amounts are calculated based on claim continuance tables which estimate the likelihood an individual will continue to be eligible for benefits. Present values are calculated at interest rates established when claims are incurred. Anticipated claim continuance rates are based on established industry tables, adjusted as appropriate for the Company's experience.

Liabilities for estimated benefits payable on claims that have been incurred but not yet reported are based on periodic analysis of the actual time lag between when a claim occurs and when it is reported.

Liabilities for estimates of benefits that will become payable on future claims on term life, whole life and health insurance policies are based on the net level premium method, using anticipated premium payments, mortality and morbidity rates, policy persistency and interest rates earned on assets supporting the liability. Anticipated mortality and morbidity rates are based on established industry mortality and morbidity tables, with modifications based on the Company's experience. Anticipated premium payments and persistency rates vary by policy form, issue age, policy duration and certain other pricing factors.

Where applicable, benefit amounts expected to be recoverable from reinsurance companies who share in the risk are separately recorded as reinsurance recoverable within receivables.

Auto and Home Reserves

Auto and home reserves include amounts determined from loss reports on individual claims, as well as amounts based on historical loss experience for losses incurred but not yet reported. Such liabilities are necessarily based on estimates and, while management believes that the reserve amounts were adequate at December 31, 2011 and 2010, the ultimate liability may be in excess of or less than the amounts provided. The Company's methods for making such estimates and for establishing the resulting liabilities are continually reviewed, and any adjustments are reflected in earnings in the period such adjustments are made.

Share-Based Compensation

The Company measures and recognizes the cost of share-based awards granted to employees and directors based on the grant-date fair value of the award and recognizes the expense on a straight-line basis over the vesting period. The fair value of each option is estimated on the grant date using a Black-Scholes option-pricing model. The Company recognizes the cost of share-based awards granted to independent contractors on a fair value basis until the award is fully vested.

Income Taxes

The Company's provision for income taxes represents the net amount of income taxes that the Company expects to pay or to receive from various taxing jurisdictions in connection with its operations. The Company provides for income taxes based on amounts that the Company believes it will ultimately owe taking into account the recognition and measurement for uncertain tax positions. Inherent in the provision for income taxes are estimates and judgments regarding the tax treatment of certain items.

In connection with the provision for income taxes, the Consolidated Financial Statements reflect certain amounts related to deferred tax assets and liabilities, which result from temporary differences between the assets and liabilities measured for financial statement purposes versus the assets and liabilities measured for tax return purposes. Included in deferred tax assets are significant capital losses that have been recognized for financial statement purposes but not yet for tax return purposes as well as future deductible capital losses realized for tax return purposes. Under current U.S. federal income tax law, capital losses generally must be used against capital gain income within five years of the year in which the capital losses are recognized for tax purposes.

The Company is required to establish a valuation allowance for any portion of its deferred tax assets that management believes will not be realized. Significant judgment is required in determining if a valuation allowance should be established and the amount of such allowance if required. Factors used in making this determination include estimates relating to the performance of the business including the ability to generate capital gains. Consideration is given to, among other things in making this determination: (i) future taxable income exclusive of reversing temporary differences and carryforwards; (ii) future reversals of existing taxable temporary differences; (iii) taxable income in prior carryback years; and (iv) tax planning strategies. Management may need to identify and implement appropriate planning strategies to ensure its ability to realize deferred tax assets and avoid the establishment of a valuation allowance with respect to such assets.

Sources of Revenue

The Company generates revenue from a wide range of investment and insurance products. Principal sources of revenue include management and financial advice fees, distribution fees, net investment income and premiums.

Management and Financial Advice Fees

Management and financial advice fees relate primarily to fees earned from managing mutual funds, separate account and wrap account assets and institutional investments, as well as fees earned from providing financial advice and administrative services (including transfer agent, administration and custodial fees earned from providing services to retail mutual funds). Management and financial advice fees also include mortality and expense risk fees earned on separate account assets.

The Company's management fees are generally accrued daily and collected monthly. A significant portion of the Company's management fees are calculated as a percentage of the fair value of its managed assets. The substantial majority of the Company's managed assets are valued by third party pricing services vendors based upon observable market data. The selection of the Company's third party pricing services vendors and the reliability of their prices are subject to certain governance procedures, such as exception reporting, subsequent transaction testing, and annual due diligence of our vendors, which includes assessing the vendor's valuation qualifications, control environment, analysis of asset-class specific valuation methodologies and understanding of sources of market observable assumptions.

Several of the Company's mutual funds had a performance incentive adjustment ("PIA"). The PIA increased or decreased the level of management fees received based on the specific fund's relative performance as measured against a designated external index. We discontinued the PIA earned by the Company's domestic mutual funds during 2011. The Company recognized PIA revenue monthly on a 12 month rolling performance basis. The Company may also receive performance-based incentive fees from hedge funds or other structured investments that it manages. The annual performance fees for structured investments are recognized as revenue at the time the performance fee is finalized or no longer subject to adjustment. All other performance fees are based on a full contract year and are final at the end of the contract year. Any performance fees received are not subject to repayment or any other clawback provisions. Employee benefit plan and institutional investment management and administration services fees are negotiated and are also generally based on underlying asset values. Fees from financial planning and advice services are recognized when the financial plan is delivered.

Distribution Fees

Distribution fees primarily include point-of-sale fees (such as mutual fund front-end sales loads) and asset-based fees (such as 12b-1 distribution and shareholder service fees) that are generally based on a contractual percentage of assets and recognized when earned. Distribution fees also include amounts received under marketing support arrangements for sales of mutual funds and other companies' products, such as through the Company's wrap accounts, as well as surrender charges on fixed and variable universal life insurance and annuities.

Net Investment Income

Net investment income primarily includes interest income on fixed maturity securities classified as Available-for-Sale, commercial mortgage loans, policy loans, consumer loans, other investments and cash and cash equivalents; the changes in fair value of trading securities, certain derivatives and certain assets and liabilities of consolidated investment entities; the pro rata share of net income or loss on equity method investments; and realized gains and losses on the sale of securities and charges for other-than-temporary impairments of investments related to credit losses. Interest income is accrued as earned using the effective interest method, which makes an adjustment of the yield for security premiums and discounts on all performing fixed maturity securities classified as Available-for-Sale so that the related security or loan recognizes a constant rate of return on the outstanding balance throughout its term. Realized gains and losses on securities, other than trading securities and equity method investments, are recognized using the specific identification method on a trade date basis.

Premiums

Premiums include premiums on property-casualty insurance, traditional life and health (DI and LTC) insurance and immediate annuities with a life contingent feature. Premiums on auto and home insurance are net of reinsurance premiums and are recognized ratably over the coverage period. Premiums on traditional life and health insurance are net of reinsurance ceded and are recognized as revenue when due.

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Retirement Plans and Profit Sharing Arrangements (Tables)

12 Months Ended

Dec. 31, 2011

Defined Benefit Plans

Components of Net Periodic Pension Cost

	Years Ended December 31,
	2011			2010			2009
	(in millions)
Service cost	$	38		$	33		$	32
Interest cost		23			23			25
Expected return on plan assets		(26	)		(23	)		(22	)
Amortization of prior service costs		(1	)		(2	)		(1	)
Amortization of net (gain)/loss		1			—			—
Other		4			3			3
Net periodic benefit cost	$	39		$	34		$	37

Schedule of reconciliation of changes in benefit obligation and fair value of assets for pension plans

	2011			2010
	(in millions)
Benefit obligation, January 1	$	469		$	421
Service cost		38			33
Interest cost		23			23
Benefits paid		(6	)		(6	)
Actuarial loss		40			23
Settlements		(18	)		(24	)
Foreign currency rate changes		—			(1	)
Benefit obligation, December 31	$	546		$	469

	2011			2010
	(in millions)
Fair value of plan assets, January 1	$	327		$	256
Actual return on plan assets		(12	)		39
Employer contributions		72			64
Benefits paid		(6	)		(6	)
Settlements		(18	)		(24	)
Foreign currency rate changes		(1	)		(2	)
Fair value of plan assets, December 31	$	362		$	327

Amounts recognized in the Consolidated Balance Sheets

	December 31,
	2011			2010
	(in millions)
Benefit liability	$	(189	)	$	(162	)
Benefit asset		5			20
Net amount recognized	$	(184	)	$	(142	)

Accumulated benefit obligations that exceeded the fair value of plan assets

	December 31,
	2011		2010
	(in millions)
Accumulated benefit obligation	$	434	$	376
Fair value of plan assets		282		248

Projected benefit obligations that exceeded the fair value of plan assets

	December 31,
	2011		2010
	(in millions)
Projected benefit obligation	$	470	$	410
Fair value of plan assets		282		248

Assumptions used to calculate Net Periodic Benefit Cost

	2011			2010			2009
Discount rates		4.75	%		5.28	%		6.22	%
Rates of increase in compensation levels		4.25			4.22			4.23
Expected long-term rates of return on assets		8.00			8.00			8.20

Pension plan assets measured at fair value on a recurring basis

	December 31, 2011
Asset Category	Level 1		Level 2		Level 3		Total
	(in millions)
Equity securities:
U.S. large cap stocks	$	75	$	9	$	—	$	84
U.S. small cap stocks		38		1		—		39
Non-U.S. large cap stocks		14		23		—		37
Emerging markets		10		15		—		25
Debt securities:
U.S. investment grade bonds		17		15		—		32
U.S. high yield bonds		—		11		—		11
Non-U.S. investment grade bonds		—		16		—		16
Real estate investment trusts		—		—		11		11
Hedge funds		—		—		12		12
Pooled pension funds		—		80		—		80
Cash equivalents		15		—		—		15
Total	$	169	$	170	$	23	$	362

	December 31, 2010
Asset Category	Level 1		Level 2		Level 3		Total
	(in millions)
Equity securities:
U.S. large cap stocks	$	72	$	3	$	—	$	75
U.S. small cap stocks		33		1		—		34
Non-U.S. large cap stocks		12		18		—		30
Emerging markets		15		14		—		29
Debt securities:
U.S. investment grade bonds		13		9		—		22
U.S. high yield bonds		—		11		—		11
Non-U.S. investment grade bonds		—		12		—		12
Real estate investment trusts		—		—		8		8
Hedge funds		—		—		9		9
Pooled pension funds		—		79		—		79
Cash equivalents		18		—		—		18
Total	$	163	$	147	$	17	$	327

Summary of changes in Level 3 assets measured at fair value on a recurring basis

Asset Category	Real Estate Investment Trusts		Hedge Funds
Balance at January 1, 2010	$	5	$	—
Actual return on plan assets:
Relating to assets still held at the reporting date		1		—
Purchases, sales, and settlements, net		2		9
Balance at December 31, 2010		8		9
Actual return on plan assets:
Relating to assets still held at the reporting date		1		—
Purchases		2		11
Sales		—		(8	)
Balance at December 31, 2011	$	11	$	12

Schedule of reconciliation of the changes in the defined postretirement benefit plan obligation

	2011			2010
	(in millions)
Benefit obligation, January 1	$	21		$	22
Interest cost		1			1
Benefits paid		(5	)		(5	)
Participant contributions		4			4
Actuarial gain		(2	)		(1	)
Benefit obligation, December 31	$	19		$	21

Summary of unrealized losses included in other comprehensive income

	2011			2010			2009
	(in millions)
Net unrealized defined benefit losses at January 1	$	(24	)	$	(20	)	$	(39	)
Net gains (losses)		(77	)		(4	)		15
Prior service cost (credit)		(2	)		(2	)		14
Income tax benefit (provision)		28			2			(10	)
Net unrealized defined benefit losses at December 31	$	(75	)	$	(24	)	$	(20	)

Pension Plans

Defined Benefit Plans

Weighted average assumptions used to determine benefit obligations

	2011			2010
Discount rates		4.15	%		4.75	%
Rates of increase in compensation levels		4.27			4.25

Expected benefit payments to retirees under retirement plans

	(in millions)
2012	$	45
2013		48
2014		49
2015		51
2016		53
2017-2021		250

Other Postretirement Benefits

Defined Benefit Plans

Weighted average assumptions used to determine benefit obligations

	2011			2010
Discount rates		4.15	%		4.90	%
Healthcare cost increase rates:
Following year		7.00			7.50
Decreasing to the year 2016		5.00			5.00

Expected benefit payments to retirees under retirement plans

	(in millions)
2012	$	2
2013		2
2014		2
2015		1
2016		1
2017-2021		7

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Derivatives and Hedging Activities

12 Months Ended

Dec. 31, 2011

Derivatives and Hedging Activities

Derivatives and Hedging Activities

15. Derivatives and Hedging Activities

Derivative instruments enable the Company to manage its exposure to various market risks. The value of such instruments is derived from an underlying variable or multiple variables, including equity, foreign exchange and interest rate indices or prices. The Company primarily enters into derivative agreements for risk management purposes related to the Company's products and operations.

The Company uses derivatives as economic hedges and accounting hedges. The following table presents the balance sheet location and the gross fair value of derivative instruments, including embedded derivatives:

		Asset					Liability
		December 31,					December 31,
Derivatives designated as hedging instruments	Balance Sheet Location					Balance Sheet Location
		2011		2010			2011		2010
		(in millions)					(in millions)
Cash flow hedges
Asset-based distribution fees	Other assets	$	—	$	10	Other liabilities	$	—	$	—
Interest on debt	Other assets		—		—	Other liabilities		11		—
Fair value hedges
Fixed rate debt	Other assets		157		61	Other liabilities		—		—
Total qualifying hedges			157		71			11		—
Derivatives not designated as hedging instruments
GMWB and GMAB
Interest rate contracts	Other assets		1,801		366	Other liabilities		1,198		379
Equity contracts	Other assets		1,314		354	Other liabilities		1,031		665
Credit contracts	Other assets		1		4	Other liabilities		—		1
Foreign currency contracts	Other assets		7		—	Other liabilities		10		—
Embedded derivatives(1)	N/A		—		—	Future policy benefits and claims		1,585		421
Total GMWB and GMAB			3,123		724			3,824		1,466
Other derivatives:
Interest rate
Interest rate lock commitments	Other assets		—		1	Other liabilities		—		—
Equity
EIA	Other assets		—		1	Other liabilities		—		—
EIA embedded derivatives	N/A		—		—	Future policy benefits and claims		2		3
IUL	Other assets		1		—	Other liabilities		—		—
IUL embedded derivatives	N/A		—		—	Future policy benefits and claims		3		—
Stock market certificates	Other assets		34		89	Other liabilities		29		75
Stock market certificates embedded derivatives	N/A		—		—	Customer deposits		6		14
Ameriprise Financial
Franchise Advisor Deferred
Compensation Plan	Other assets		2		8	Other liabilities		—		—
Seed money	Other assets		—		—	Other liabilities		1		—
Foreign exchange
Foreign currency	Other assets		—		1	Other liabilities		3		1
Commodity
Seed money	Other assets		2		—	Other liabilities		—		—
Total other			39		100			44		93
Total non-designated hedges			3,162		824			3,868		1,559
Total derivatives		$	3,319	$	895		$	3,879	$	1,559

N/A Not applicable.

(1)

The fair values of GMWB and GMAB embedded derivatives fluctuate based on changes in equity, interest rate and credit markets.

See Note 14 for additional information regarding the Company's fair value measurement of derivative instruments.

Derivatives Not Designated as Hedges

The following table presents a summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations for the years ended December 31:

		Amount of Gain (Loss) on Derivatives Recognized in Income
Derivatives not designated as hedging instruments	Location of Gain (Loss) on Derivatives Recognized in Income
		2011			2010			2009
		(in millions)
GMWB and GMAB
Interest rate contracts	Benefits, claims, losses and settlement expenses	$	709		$	95		$	(435	)
Equity contracts	Benefits, claims, losses and settlement expenses		326			(370	)		(1,245	)
Credit contracts	Benefits, claims, losses and settlement expenses		(12	)		(44	)		(65	)
Foreign currency contracts	Benefits, claims, losses and settlement expenses		(2	)		—			—
Embedded derivatives(1)	Benefits, claims, losses and settlement expenses		(1,165	)		(121	)		1,533
Total GMWB and GMAB			(144	)		(440	)		(212	)
Other derivatives:
Interest rate
Interest rate lock commitments	Other revenues		(1	)		—			—
Equity
GMDB	Benefits, claims, losses and settlement expenses		—			(4	)		(10	)
EIA	Interest credited to fixed accounts		(1	)		2			4
EIA embedded derivatives	Interest credited to fixed accounts		1			7			7
IUL	Interest credited to fixed accounts		1			—			—
IUL embedded derivatives	Interest credited to fixed accounts		(3	)		—			—
Stock market certificates	Banking and deposit interest expense		1			9			15
Stock market certificates embedded derivatives	Banking and deposit interest expense		—			(10	)		(18	)
Seed money	Net investment income		4			(5	)		(14	)
Ameriprise Financial
Franchise Advisor Deferred
Compensation Plan	Distribution expenses		(4	)		9			—
Foreign exchange
Seed money	General and administrative expense		(1	)		1			—
Foreign currency	Net investment income		(3	)		(1	)		—
Commodity
Seed money	Net investment income		1			—			—
Total other			(5	)		8			(16	)
Total derivatives		$	(149	)	$	(432	)	$	(228	)

(1)

The fair values of GMWB and GMAB embedded derivatives fluctuate based on changes in equity, interest rate and credit markets.

The Company holds derivative instruments that either do not qualify or are not designated for hedge accounting treatment. These derivative instruments are used as economic hedges of equity, interest rate, credit and foreign currency exchange rate risk related to various products and transactions of the Company.

The majority of the Company's annuity contracts contain GMDB provisions, which may result in a death benefit payable that exceeds the contract accumulation value when market values of customers' accounts decline. Certain annuity contracts contain GMWB or GMAB provisions, which guarantee the right to make limited partial withdrawals each contract year regardless of the volatility inherent in the underlying investments or guarantee a minimum accumulation value of consideration received at the beginning of the contract period, after a specified holding period, respectively. The Company economically hedges the exposure related to non-life contingent GMWB and GMAB provisions primarily using various futures, options, interest rate swaptions, interest rate swaps, variance swaps and credit default swaps. At December 31, 2011 and 2010, the gross notional amount of derivative contracts for the Company's GMWB and GMAB provisions was $104.7 billion and $55.5 billion, respectively. The Company had previously entered into a limited number of derivative contracts to economically hedge equity exposure related to GMDB provisions on variable annuity contracts written in 2009. As of both December 31, 2011 and 2010, the Company did not have any outstanding hedges on its GMDB provisions.

The deferred premium associated with some of the above options is paid or received semi-annually over the life of the option contract. The following is a summary of the payments the Company is scheduled to make and receive for these options:

	Premiums Payable		Premiums Receivable
	(in millions)
2012	$	372	$	41
2013		349		26
2014		324		24
2015		296		22
2016		265		15
2017-2026		925		34

Actual timing and payment amounts may differ due to future contract settlements, modifications or exercises of options prior to the full premium being paid or received.

EIA, IUL and stock market certificate products have returns tied to the performance of equity markets. As a result of fluctuations in equity markets, the obligation incurred by the Company related to EIA, IUL and stock market certificate products will positively or negatively impact earnings over the life of these products. As a means of economically hedging its obligations under the provisions of these products, the Company enters into index options and futures contracts. The gross notional amount of these derivative contracts was $1.3 billion and $1.5 billion at December 31, 2011 and 2010, respectively.

The Company enters into forward contracts, futures, total return swaps and commodity swaps to manage its exposure to price risk arising from seed money investments in proprietary investment products. The gross notional amount of these contracts was $123 million and $174 million at December 31, 2011 and 2010, respectively.

The Company enters into foreign currency forward contracts to economically hedge its exposure to certain receivables and obligations denominated in non-functional currencies. The gross notional amount of these contracts was $26 million and $21 million at December 31, 2011 and 2010, respectively.

In 2010, the Company entered into a total return swap to economically hedge its exposure to equity price risk of Ameriprise Financial, Inc. common stock granted as part of its Ameriprise Financial Franchise Advisor Deferred Compensation Plan ("Franchise Advisor Deferral Plan"). In the fourth quarter of 2011, the Company extended the contract through 2012. As part of the contract, the Company expects to cash settle the difference between the value of a fixed number of shares at the contract date (which may be increased from time to time) and the value of those shares over an unwind period ending on December 31, 2012. The gross notional value of this contract was $17 million and $35 million at December 31, 2011 and 2010, respectively.

Embedded Derivatives

Certain annuities contain GMAB and non-life contingent GMWB provisions, which are considered embedded derivatives. In addition, the equity component of the EIA, IUL and stock market certificate product obligations are also considered embedded derivatives. These embedded derivatives are bifurcated from their host contracts and reported on the Consolidated Balance Sheets at fair value with changes in fair value reported in earnings. As discussed above, the Company uses derivatives to mitigate the financial statement impact of these embedded derivatives.

Cash Flow Hedges

The Company has designated and accounts for the following as cash flow hedges: (i) interest rate swaps to hedge interest rate exposure on debt, (ii) interest rate lock agreements to hedge interest rate exposure on debt issuances and (iii) swaptions used to hedge the risk of increasing interest rates on forecasted fixed premium product sales. The Company previously designated and accounted for as cash flow hedges interest rate swaps to hedge certain asset-based distribution fees.

During the second quarter of 2011, the Company reclassified from accumulated other comprehensive income into earnings a $27 million gain on an interest rate hedge put in place in anticipation of issuing debt between December 2010 and September 2011. The gain was reclassified due to the forecasted transaction not occurring according to the original hedge strategy. For the years ended December 31, 2011, 2010 and 2009, amounts recognized in earnings related to cash flow hedges due to ineffectiveness were not material. The estimated net amount of existing pretax losses on December 31, 2011 that the Company expects to reclassify to earnings within the next twelve months is $2 million, which consists of $4 million of pretax gains to be recorded as a reduction to interest and debt expense and $6 million of pretax losses to be recorded in net investment income. The following tables present the impact of the effective portion of the Company's cash flow hedges on the Consolidated Statements of Operations and the Consolidated Statements of Equity for the years ended December 31:

	Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivatives
Derivatives designated as hedging instruments	2011			2010		2009
	(in millions)
Interest on debt	$	(11	)	$	16	$	19
Asset-based distribution fees		1			20		—
Total	$	(10	)	$	36	$	19

	Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income
Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income
	2011			2010			2009
	(in millions)
Other revenues	$	27		$	—		$	—
Interest and debt expense		4			8			8
Distribution fees		9			11			—
Net investment income		(6	)		(6	)		(6	)
Total	$	34		$	13		$	2

The following is a summary of unrealized derivatives gains (losses) included in accumulated other comprehensive income (loss) related to cash flow hedges:

	2011			2010			2009
	(in millions)
Net unrealized derivatives gains (losses) at January 1	$	18		$	3		$	(8	)
Holding gains (losses)		(10	)		36			19
Reclassification of realized gains		(34	)		(13	)		(2	)
Income tax benefit (provision)		15			(8	)		(6	)
Net unrealized derivatives gains (losses) at December 31	$	(11	)	$	18		$	3

Currently, the longest period of time over which the Company is hedging exposure to the variability in future cash flows is 24 years and relates to forecasted debt interest payments.

Fair Value Hedges

During the first quarter of 2010, the Company entered into and designated as fair value hedges three interest rate swaps to convert senior notes due 2015, 2019 and 2020 from fixed rate debt to floating rate debt. The swaps have identical terms as the underlying debt being hedged so no ineffectiveness is expected to be realized. The Company recognizes gains and losses on the derivatives and the related hedged items within interest and debt expense. The following table presents the amounts recognized in income related to fair value hedges for the years ended December 31:

		Amount of Gain Recognized in Income on Derivatives
Derivatives designated as hedging instruments	Location of Gain Recorded into Income
		2011		2010
		(in millions)
Fixed rate debt	Interest and debt expense	$	41	$	36

Credit Risk

Credit risk associated with the Company's derivatives is the risk that a derivative counterparty will not perform in accordance with the terms of the applicable derivative contract. To mitigate such risk, the Company has established guidelines and oversight of credit risk through a comprehensive enterprise risk management program that includes members of senior management. Key components of this program are to require preapproval of counterparties and the use of master netting arrangements and collateral arrangements whenever practical. As of December 31, 2011 and 2010, the Company held $802 million and $98 million, respectively, in cash and cash equivalents and recorded a corresponding liability in other liabilities for collateral the Company is obligated to return to counterparties. As of December 31, 2011 and 2010, the Company had accepted additional collateral consisting of various securities with a fair value of $186 million and $23 million, respectively, which are not reflected on the Consolidated Balance Sheets. As of December 31, 2011 and 2010, the Company's maximum credit exposure related to derivative assets after considering netting arrangements with counterparties and collateral arrangements was approximately $72 million and $45 million, respectively.

Certain of the Company's derivative instruments contain provisions that adjust the level of collateral the Company is required to post based on the Company's debt rating (or based on the financial strength of the Company's life insurance subsidiaries for contracts in which those subsidiaries are the counterparty). Additionally, certain of the Company's derivative contracts contain provisions that allow the counterparty to terminate the contract if the Company's debt does not maintain a specific credit rating (generally an investment grade rating) or the Company's life insurance subsidiary does not maintain a specific financial strength rating. If these termination provisions were to be triggered, the Company's counterparty could require immediate settlement of any net liability position. At December 31, 2011 and 2010, the aggregate fair value of all derivative instruments in a net liability position containing such credit risk features was $112 million and $412 million, respectively. The aggregate fair value of assets posted as collateral for such instruments as of December 31, 2011 and 2010 was $103 million and $406 million, respectively. If the credit risk features of derivative contracts that were in a net liability position at December 31, 2011 and 2010 were triggered, the additional fair value of assets needed to settle these derivative liabilities would have been $9 million and $6 million, respectively.

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Income Taxes

12 Months Ended

Dec. 31, 2011

Income Taxes

Income Taxes

20. Income Taxes

The components of income tax provision attributable to continuing operations were as follows:

	Years Ended December 31,
	2011			2010			2009
	(in millions)
Current income tax:
Federal	$	250		$	(224	)	$	200
State and local		21			13			4
Foreign		23			32			4
Total current income tax		294			(179	)		208
Deferred income tax:
Federal		68			540			(13	)
State and local		1			(5	)		(7	)
Foreign		(8	)		(6	)		(4	)
Total deferred income tax		61			529			(24	)
Total income tax provision	$	355		$	350		$	184

The geographic sources of pretax income from continuing operations were as follows:

	Years Ended December 31,
	2011		2010		2009
	(in millions)
United States	$	1,288	$	1,470	$	883
Foreign		97		164		37
Total	$	1,385	$	1,634	$	920

The principal reasons that the aggregate income tax provision attributable to continuing operations is different from that computed by using the U.S. statutory rate of 35% were as follows:

	Years Ended December 31,
	2011			2010			2009
Tax at U.S. statutory rate		35.0	%		35.0	%		35.0	%
Changes in taxes resulting from:
Dividend exclusion		(8.9	)		(4.1	)		(7.6	)
Tax-exempt interest income		(1.3	)		(1.0	)		(1.3	)
Tax credits		(3.4	)		(2.5	)		(5.8	)
State taxes, net of federal benefit		1.0			0.2			(0.4	)
Net income (loss) attributable to noncontrolling interests		2.7			(3.4	)		(0.6	)
Other, net		0.5			(2.7	)		0.7
Income tax provision		25.6	%		21.5	%		20.0	%

The increase in the Company's effective tax rate in 2011 compared to 2010 primarily reflects the change in the noncontrolling interests which is included in pretax income, partially offset by a favorable audit settlement related to the dividends received deduction. The increase in the Company's effective tax rate in 2010 compared to 2009 primarily reflects an increase in pretax income relative to tax advantaged items, which was partially offset by $53 million in benefits from tax planning and the completion of certain audits.

Accumulated earnings of certain foreign subsidiaries, which totaled $89 million at December 31, 2011, are intended to be permanently reinvested outside the United States. Accordingly, U.S. federal taxes, which would have aggregated $9 million, have not been provided on those earnings.

Deferred income tax assets and liabilities result from temporary differences between the assets and liabilities measured for GAAP reporting versus income tax return purposes. The significant components of the Company's deferred income tax assets and liabilities, which are included net within other assets or other liabilities on the Consolidated Balance Sheets, were as follows:

	December 31,
	2011			2010
	(in millions)
Deferred income tax assets:
Liabilities for future policy benefits and claims	$	1,615		$	1,329
Investment impairments and write-downs		118			119
Deferred compensation		274			241
Investment related		—			56
Loss carryovers and tax credit carryforwards		134			134
Other		89			70
Gross deferred income tax assets		2,230			1,949
Less: Valuation allowance		(5	)		—
Total deferred income tax assets		2,225			1,949
Deferred income tax liabilities:
Deferred acquisition costs		1,418			1,473
Investment related		260			—
Deferred sales inducement costs		180			191
Net unrealized gains on Available-for-Sale securities		396			312
Depreciation expense		182			138
Intangible assets		60			52
Other		71			85
Gross deferred income tax liabilities		2,567			2,251
Net deferred income tax liabilities	$	(342	)	$	(302	)

The Company is required to establish a valuation allowance for any portion of the deferred tax assets that management believes will not be realized. Included in deferred tax assets is a significant deferred tax asset relating to capital losses that have been recognized for financial statement purposes but not yet for tax return purposes. Under current U.S. federal income tax law, capital losses generally must be used against capital gain income within five years of the year in which the capital losses are recognized for tax purposes. Significant judgment is required in determining if a valuation allowance should be established, and the amount of such allowance if required. Factors used in making this determination include estimates relating to the performance of the business including the ability to generate capital gains. Consideration is given to, among other things in making this determination, (i) future taxable income exclusive of reversing temporary differences and carryforwards, (ii) future reversals of existing taxable temporary differences, (iii) taxable income in prior carryback years, and (iv) tax planning strategies. Based on analysis of the Company's tax position, management believes it is more likely than not that the Company will not realize the full benefit of certain state net operating losses and therefore a valuation allowance of $5 million has been established as of December 31, 2011.

Included in the Company's deferred income tax assets are tax benefits related to capital loss carryforwards of $30 million which will expire beginning December 31, 2015, tax credits of $65 million which will expire beginning December 31, 2027, and state net operating losses of $39 million which will expire beginning December 31, 2014. As a result of the Company's ability to file a consolidated U.S. federal income tax return including the Company's life insurance subsidiaries, as well as the expected level of taxable income, management believes the Company's capital loss carryforwards and tax credit carryforwards will be utilized before they expire.

A reconciliation of the beginning and ending amount of gross unrecognized tax benefits (expense) were as follows:

	2011			2010			2009
	(in millions)
Balance at January 1	$	75		$	(33	)	$	(56	)
Additions based on tax positions related to the current year		1			2			1
Additions for tax positions of prior years		95			57			45
Reductions for tax positions of prior years		(8	)		(42	)		(23	)
Settlements		21			91			—
Balance at December 31	$	184		$	75		$	(33	)

If recognized, approximately $38 million, $54 million and $81 million, net of federal tax benefits, of unrecognized tax benefits as of December 31, 2011, 2010, and 2009, respectively, would affect the effective tax rate.

The Company recognizes interest and penalties related to unrecognized tax benefits as a component of the income tax provision. The Company recognized $66 million of interest and penalties for the year ended December 31, 2011. The Company recognized a net reduction of $17 million in interest and penalties for the year ended December 31, 2010 and an increase of $1 million in interest and penalties for the year ended December 31, 2009. At December 31, 2011 and 2010, the Company had a payable of $37 million and a receivable of $29 million, respectively, related to accrued interest and penalties.

It is reasonably possible that the total amounts of unrecognized tax benefits will change in the next 12 months. Based on the current audit position of the Company, it is estimated that the total amount of gross unrecognized tax benefits may decrease by $150 million to $160 million in the next 12 months.

The Company or one or more of its subsidiaries files income tax returns in the U.S. federal jurisdiction, and various states and foreign jurisdictions. The Internal Revenue Service ("IRS") had previously completed its field examination of the 1997 through 2007 tax returns in recent years as part of the overall examination of the American Express Company consolidated returns. However, for federal income tax purposes these years except for 2007, continue to remain open as a consequence of certain issues under appeal. The IRS is currently auditing the Company's U.S. income tax returns for 2008 and 2009. The Company's or certain of its subsidiaries' state income tax returns are currently under examination by various jurisdictions for years ranging from 1999 through 2009. The Company's federal and state income tax returns remain open for the years after 2009.

It is possible there will be corporate tax reform in the next few years. While impossible to predict, corporate tax reform is likely to include a reduction in the corporate tax rate coupled with reductions in tax preferred items. Potential tax reform may also affect the U.S. tax rules regarding international operations. Any changes could have a material impact on the income tax expense and the deferred tax balances of the Company.

The items comprising other comprehensive income are presented net of the following income tax provision (benefit) amounts:

	Years Ended December 31,
	2011			2010			2009
	(in millions)
Net unrealized securities gains	$	77		$	167		$	753
Net unrealized derivatives gains		(15	)		8			6
Defined benefit plans		(28	)		(2	)		10
Foreign currency translation adjustment		(1	)		(6	)		15
Net income tax provision	$	33		$	167		$	784

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Regulatory Requirements (Details) (USD $)		12 Months Ended						12 Months Ended
	Dec. 31, 2011 Subsidiaries of entity subsidiary	Dec. 31, 2011 RiverSource Life M	Dec. 31, 2010 RiverSource Life	Dec. 31, 2009 RiverSource Life	Dec. 31, 2011 Ameriprise Certificate Company	Dec. 31, 2010 Ameriprise Certificate Company	Mar. 02, 2009 Ameriprise Certificate Company	Dec. 31, 2011 Ameriprise Bank
Regulatory Requirements [Line Items]
Aggregate amount of unrestricted net assets	$ 1,600,000,000
Period of dividend or distributions (in months)		12
Percentage of previous year-end statutory capital and surplus (as a percent)		10.00%
Government debt securities on deposit with states under legal requirements		7,000,000	6,000,000
Statutory capital and surplus		2,700,000,000	3,700,000,000	3,400,000,000
Requirement of qualified assets under Investment Company Act of 1940					2,800,000,000	3,100,000,000
Actual amount of qualified assets					2,900,000,000	3,400,000,000
Maximum commitment by entity to Ameriprise Certificate Company under Capital Support Agreement							$ 115,000,000
Number of broker-dealer subsidiaries	4
Required minimum Tier one (core) capital ratio								7.50%
Required minimum total risk-based capital ratio								12.00%
Minimum leverage ratio of core capital to adjusted total assets under OCC regulations (as a percent)								4.00%
Minimum Tier 1 risk-based capital ratio under OCC regulations (as a percent)								4.00%
Minimum total risk-based ratio under OCC regulations (as a percent)								8.00%
Minimum tangible capital ratio under OCC regulations								1.50%
Percentage portfolio assets in qualified thrift investments								65.00%

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Earnings per Share Attributable to Ameriprise Financial, Inc. Common Shareholders (Tables)

12 Months Ended

Dec. 31, 2011

Earnings per Share Attributable to Ameriprise Financial, Inc. Common Shareholders

Schedule of Earnings per Common Share

	Years Ended December 31,
	2011			2010			2009
	(in millions, except per share amounts)
Numerator:
Income from continuing operations	$	1,030		$	1,284		$	736
Less: Net income (loss) attributable to noncontrolling interests		(106	)		163			15
Income from continuing operations attributable to Ameriprise Financial		1,136			1,121			721
Income (loss) from discontinued operations, net of tax		(60	)		(24	)		1
Net income attributable to Ameriprise Financial	$	1,076		$	1,097		$	722
Denominator:
Basic: Weighted-average common shares outstanding		241.4			257.4			242.2
Effect of potentially dilutive nonqualified stock options
and other share-based awards		4.9			4.9			2.2
Diluted: Weighted-average common shares outstanding		246.3			262.3			244.4
Earnings per share attributable to Ameriprise Financial, Inc. common shareholders:
Basic:
Income from continuing operations	$	4.71		$	4.36		$	2.98
Income (loss) from discontinued operations		(0.25	)		(0.10	)		—
Net income	$	4.46		$	4.26		$	2.98
Diluted:
Income from continuing operations	$	4.61		$	4.27		$	2.95
Income (loss) from discontinued operations		(0.24	)		(0.09	)		—
Net income	$	4.37		$	4.18		$	2.95

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Segment Information (Details 2) (USD $) In Millions, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2010	Sep. 30, 2010	Jun. 30, 2010	Mar. 31, 2010	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Summary of segment operating results
Revenue from external customers									$ 10,239	$ 9,582	$ 7,538
Total revenues									10,239	9,582	7,538
Banking and deposit interest expense									47	70	141
Net revenues									10,192	9,512	7,397
Depreciation and amortization expense									887	330	435
All other expenses									7,920	7,548	6,042
Total expenses									8,807	7,878	6,477
Income (loss) from continuing operations before income tax provision	352	247	399	387	368	446	462	358	1,385	1,634	920
Income tax provision									355	350	184
Income from continuing operations	285	166	285	294	280	314	396	294	1,030	1,284	736
Income (loss) from discontinued operations, net of tax	13	2	(4)	(71)	(26)	(2)	2	2	(60)	(24)	1
Net income	298	168	281	223	254	312	398	296	970	1,260	737
Less: Net income attributable to noncontrolling interests	45	(105)	(28)	(18)	(26)	(32)	139	82	(106)	163	15
Net income attributable to Ameriprise Financial	253	273	309	241	280	344	259	214	1,076	1,097	722
Advice and Wealth Management
Summary of segment operating results
Revenue from external customers									2,825	2,526	2,103
Intersegment revenue									931	884	834
Total revenues									3,756	3,410	2,937
Banking and deposit interest expense									48	67	133
Net revenues									3,708	3,343	2,804
Depreciation and amortization expense									86	88	100
All other expenses									3,221	2,939	2,737
Total expenses									3,307	3,027	2,837
Income (loss) from continuing operations before income tax provision									401	316	(33)
Asset Management
Summary of segment operating results
Revenue from external customers									2,811	2,294	1,304
Intersegment revenue									92	75	44
Total revenues									2,903	2,369	1,348
Banking and deposit interest expense									3	1	2
Net revenues									2,900	2,368	1,346
Depreciation and amortization expense									83	105	83
All other expenses									2,381	1,945	1,203
Total expenses									2,464	2,050	1,286
Income (loss) from continuing operations before income tax provision									436	318	60
Annuities
Summary of segment operating results
Revenue from external customers									2,379	2,324	2,165
Intersegment revenue									252	176	100
Total revenues									2,631	2,500	2,265
Net revenues									2,631	2,500	2,265
Depreciation and amortization expense									481	(75)	54
All other expenses									1,629	1,927	1,563
Total expenses									2,110	1,852	1,617
Income (loss) from continuing operations before income tax provision									521	648	648
Protection
Summary of segment operating results
Revenue from external customers									2,035	2,013	1,935
Intersegment revenue									38	35	30
Total revenues									2,073	2,048	1,965
Banking and deposit interest expense									1	1	1
Net revenues									2,072	2,047	1,964
Depreciation and amortization expense									208	189	167
All other expenses									1,494	1,455	1,300
Total expenses									1,702	1,644	1,467
Income (loss) from continuing operations before income tax provision									370	403	497
Corporate and Other
Summary of segment operating results
Revenue from external customers									189	425	31
Intersegment revenue									2	1	2
Total revenues									191	426	33
Banking and deposit interest expense									(1)	3	7
Net revenues									192	423	26
Depreciation and amortization expense									29	23	31
All other expenses									506	451	247
Total expenses									535	474	278
Income (loss) from continuing operations before income tax provision									(343)	(51)	(252)
Eliminations:
Summary of segment operating results
Intersegment revenue									(1,315)	(1,171)	(1,010)
Total revenues									(1,315)	(1,171)	(1,010)
Banking and deposit interest expense									(4)	(2)	(2)
Net revenues									(1,311)	(1,169)	(1,008)
All other expenses									(1,311)	(1,169)	(1,008)
Total expenses									(1,311)	(1,169)	(1,008)
Unallocated amount to segment
Summary of segment operating results
Income tax provision									355	350	184
Income from continuing operations									1,030	1,284	736
Income (loss) from discontinued operations, net of tax									(60)	(24)	1
Net income									970	1,260	737
Less: Net income attributable to noncontrolling interests									(106)	163	15
Net income attributable to Ameriprise Financial									$ 1,076	$ 1,097	$ 722

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Future Policy Benefits and Claims and Separate Account Liabilities (Tables)

12 Months Ended

Dec. 31, 2011

Future Policy Benefits and Claims and Separate Account Liabilities

Future Policy Benefits and Unpaid Claims Disclosure

	December 31,
	2011		2010
	(in millions)
Fixed annuities	$	16,401	$	16,520
EIA accumulated host values		58		100
EIA embedded derivatives		2		3
Variable annuity fixed sub-accounts		4,852		4,868
Variable annuity GMWB		1,377		337
Variable annuity GMAB		237		104
Other variable annuity guarantees		14		13
Total annuities		22,941		21,945
VUL/UL insurance		2,662		2,588
IUL accumulated host values		4		—
IUL embedded derivatives		3		—
VUL/UL insurance additional liabilities		220		143
Other life, disability income and long term care insurance		5,352		5,004
Auto, home and other insurance		420		394
Policy claims and other policyholders' funds		121		134
Total	$	31,723	$	30,208

Schedule of Separate Account Liabilities by Policy Type

	December 31,
	2011		2010
	(in millions)
Variable annuity variable sub-accounts	$	57,556	$	57,862
VUL insurance variable sub-accounts		5,575		5,887
Other insurance variable sub-accounts		43		46
Threadneedle investment liabilities		3,606		4,535
Total	$	66,780	$	68,330

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SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2010	Sep. 30, 2010	Jun. 30, 2010	Mar. 31, 2010	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Revenues
Management and financial advice fees									$ 4,537	$ 3,784	$ 2,558
Distribution fees									1,573	1,447	1,182
Other revenues									863	863	702
Total revenues									10,239	9,582	7,538
Banking and deposit interest expense									47	70	141
Total net revenues	2,582	2,455	2,623	2,532	2,558	2,334	2,462	2,158	10,192	9,512	7,397
Expenses
Distribution expenses									2,497	2,065	1,462
Interest and debt expense									317	290	127
General and administrative expense									2,965	2,737	2,434
Total expenses									8,807	7,878	6,477
Income tax benefit									355	350	184
Net income from continuing operations									1,136	1,121	721
Income (loss) from discontinued operations, net of tax	13	2	(4)	(71)	(26)	(2)	2	2	(60)	(24)	1
Net income	298	168	281	223	254	312	398	296	970	1,260	737
Ameriprise Financial, Inc:
Revenues
Management and financial advice fees										129	53
Distribution fees									9	11
Net investment income									18	17	22
Other revenues									30	29	68
Total revenues									57	186	143
Banking and deposit interest expense										1	1
Total net revenues									57	185	142
Expenses
Distribution expenses									5	(9)
Interest and debt expense									95	107	127
General and administrative expense									223	288	271
Total expenses									323	386	398
Pretax loss before equity in earnings of subsidiaries									(266)	(201)	(256)
Income tax benefit									(102)	(120)	(114)
Loss before equity in earnings of subsidiaries									(164)	(81)	(142)
Equity in earnings of subsidiaries excluding discontinued operations									1,300	1,202	863
Net income from continuing operations									1,136	1,121	721
Income (loss) from discontinued operations, net of tax									(60)	(24)	1
Net income									$ 1,076	$ 1,097	$ 722

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Consolidated Statements of Cash Flows (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2011		Dec. 31, 2010		Dec. 31, 2009
Cash Flows from Operating Activities
Net income	$ 970		$ 1,260		$ 737
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation, amortization and accretion, net	110		110		120
Deferred income tax expense (benefit)	61		513		(24)
Share-based compensation	145		158		182
Net realized investment gains	(34)		(60)		(163)
Other-than-temporary impairments and provision for loan losses	43		47		132
Net loss (income) attributable to noncontrolling interests	106		(163)		(15)
Changes in operating assets and liabilities before consolidated investment entities:
Restricted and segregated cash and investments	(11)		(186)		245
Deferred acquisition costs	126		(398)		(403)
Other investments, net	48		2		301
Future policy benefits and claims, net	(28)		383		105
Receivables	(260)		(441)		(186)
Brokerage deposits	225		222		(94)
Accounts payable and accrued expenses	(80)		195		26
Derivatives collateral, net	738		111		(1,914)
Other, net	207		(54)		86
Changes in operating assets and liabilities of consolidated investment entities, net	(188)		148		(453)
Net cash provided by (used in) operating activities	2,178		1,847		(1,318)
Available-for-Sale securities:
Proceeds from sales	888		1,519		5,630
Maturities, sinking fund payments and calls	5,206		6,404		5,855
Purchases	(7,236)		(7,502)		(17,815)
Proceeds from sales, maturities and repayments of commercial mortgage loans	224		226		294
Funding of commercial mortgage loans	(238)		(154)		(104)
Proceeds from sales of other investments	360		189		75
Purchase of other investments	(422)		(102)		(14)
Purchase of investments by consolidated investment entities	(2,871)		(1,935)
Proceeds from sales, maturities and repayments of investments by consolidated investment entities	3,399		2,005
Purchase of land, buildings, equipment and software	(250)		(131)		(83)
Acquisitions			(866)
Proceeds from sale of business	150
Change in consumer banking loans and credit card receivables, net	(349)		(372)		(218)
Other, net	(7)		(15)		7
Net cash used in investing activities	(1,146)		(734)		(6,373)
Investment certificates and banking time deposits:
Proceeds from additions	873		1,029		2,411
Maturities, withdrawals and cash surrenders	(1,243)		(1,871)		(3,177)
Change in other banking deposits	1,210		842		1,187
Policyholder and contractholder account values:
Consideration received	1,378		1,593		4,863
Net transfers from (to) separate accounts	39		(1,337)		195
Surrenders and other benefits	(1,311)		(1,338)		(1,923)
Deferred premium options, net	(254)		(182)		(82)
Proceeds from issuance of common stock					869
Issuance of debt, net of issuance costs			744		491
Repayments of debt	(20)		(354)		(550)
Change in short-term borrowings, net	107		397
Dividends paid to shareholders	(212)		(183)		(164)
Repurchase of common shares	(1,495)		(582)		(11)
Exercise of stock options	66		113		6
Excess tax benefits from share-based compensation	90		9		12
Borrowings by consolidated investment entities	163		163		234
Repayments of debt by consolidated investment entities	(603)		(287)
Noncontrolling interests investments in subsidiaries	155		77		231
Distributions to noncontrolling interests	(54)		(171)		(45)
Other, net			(5)		(2)
Net cash provided by (used in) financing activities	(1,111)		(1,343)		4,545
Effect of exchange rate changes on cash	(1)		(6)		15
Net decrease in cash and cash equivalents	(80)	[1]	(236)	[1]	(3,131)	[1]
Cash and cash equivalents at beginning of period	2,861	[1]	3,097	[1]	6,228	[1]
Cash and cash equivalents at end of period	2,781	[1]	2,861	[1]	3,097	[1]
Supplemental Disclosures:
Interest paid before consolidated investment entities	201		231		251
Income taxes paid, net	370		61		98
Non-cash investing activity:
Affordable housing partnership commitments not yet remitted	137		188
Non-cash financing activity:
Dividends declared but not paid	$ 62

[1] Cash and cash equivalents includes cash held for sale. See Note 24 for additional information.

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Derivatives and Hedging Activities (Details 2) (USD $)	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
GMWB and GMAB embedded derivatives
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations
Gross notional amount, guaranteed benefit contracts	$ 104,700,000,000	$ 55,500,000,000
Derivatives not designated as hedging instruments
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations
Gain (Loss) on Derivatives Recognized in Income	(149,000,000)	(432,000,000)	(228,000,000)
Derivatives not designated as hedging instruments | GMWB and GMAB
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations
Gain (Loss) on Derivatives Recognized in Income	(144,000,000)	(440,000,000)	(212,000,000)
Derivatives not designated as hedging instruments | Other derivatives
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations
Gain (Loss) on Derivatives Recognized in Income	(5,000,000)	8,000,000	(16,000,000)
Derivatives not designated as hedging instruments | Interest rate derivatives | GMWB and GMAB | Benefits, claims, losses and settlement expenses
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations
Gain (Loss) on Derivatives Recognized in Income	709,000,000	95,000,000	(435,000,000)
Derivatives not designated as hedging instruments | Interest rate derivatives | Interest rate lock commitments | Other revenues
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations
Gain (Loss) on Derivatives Recognized in Income	(1,000,000)
Derivatives not designated as hedging instruments | Equity derivatives | GMWB and GMAB | Benefits, claims, losses and settlement expenses
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations
Gain (Loss) on Derivatives Recognized in Income	326,000,000	(370,000,000)	(1,245,000,000)
Derivatives not designated as hedging instruments | Equity derivatives | GMDB | Benefits, claims, losses and settlement expenses
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations
Gain (Loss) on Derivatives Recognized in Income		(4,000,000)	(10,000,000)
Derivatives not designated as hedging instruments | Equity derivatives | EIA | Interest credited to fixed accounts
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations
Gain (Loss) on Derivatives Recognized in Income	(1,000,000)	2,000,000	4,000,000
Derivatives not designated as hedging instruments | Equity derivatives | EIA embedded derivatives | Interest credited to fixed accounts
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations
Gain (Loss) on Derivatives Recognized in Income	1,000,000	7,000,000	7,000,000
Derivatives not designated as hedging instruments | Equity derivatives | IUL | Interest credited to fixed accounts
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations
Gain (Loss) on Derivatives Recognized in Income	1,000,000
Derivatives not designated as hedging instruments | Equity derivatives | IUL embedded derivatives | Interest credited to fixed accounts
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations
Gain (Loss) on Derivatives Recognized in Income	(3,000,000)
Derivatives not designated as hedging instruments | Equity derivatives | Stock market certificates | Banking and deposit interest expense
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations
Gain (Loss) on Derivatives Recognized in Income	1,000,000	9,000,000	15,000,000
Derivatives not designated as hedging instruments | Equity derivatives | Stock market certificates embedded derivatives | Banking and deposit interest expense
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations
Gain (Loss) on Derivatives Recognized in Income		(10,000,000)	(18,000,000)
Derivatives not designated as hedging instruments | Equity derivatives | Seed money | Net investment income
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations
Gain (Loss) on Derivatives Recognized in Income	4,000,000	(5,000,000)	(14,000,000)
Derivatives not designated as hedging instruments | Equity derivatives | Ameriprise Financial Franchise Advisor Deferred Equity Plan | Distribution expenses
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations
Gain (Loss) on Derivatives Recognized in Income	(4,000,000)	9,000,000
Derivatives not designated as hedging instruments | Credit derivative contract | GMWB and GMAB | Benefits, claims, losses and settlement expenses
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations
Gain (Loss) on Derivatives Recognized in Income	(12,000,000)	(44,000,000)	(65,000,000)
Derivatives not designated as hedging instruments | Foreign exchange contract | GMWB and GMAB | Benefits, claims, losses and settlement expenses
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations
Gain (Loss) on Derivatives Recognized in Income	(2,000,000)
Derivatives not designated as hedging instruments | Foreign exchange contract | Foreign currency | Net investment income
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations
Gain (Loss) on Derivatives Recognized in Income	(3,000,000)	(1,000,000)
Derivatives not designated as hedging instruments | Foreign exchange contract | Seed money | General and administrative expense
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations
Gain (Loss) on Derivatives Recognized in Income	(1,000,000)	1,000,000
Derivatives not designated as hedging instruments | GMWB and GMAB embedded derivatives | GMWB and GMAB | Benefits, claims, losses and settlement expenses
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations
Gain (Loss) on Derivatives Recognized in Income	(1,165,000,000)	(121,000,000)	1,533,000,000
Derivatives not designated as hedging instruments | Commodity derivative contracts | Seed money | Net investment income
Summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Operations
Gain (Loss) on Derivatives Recognized in Income	$ 1,000,000

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Consolidated Investment Entities

12 Months Ended

Dec. 31, 2011

Consolidated Investment Entities.

Consolidated Investment Entities

4. Consolidated Investment Entities

The Company provides asset management services to various CDOs and other investment products (collectively, "investment entities"), which are sponsored by the Company for the investment of client assets in the normal course of business. Certain of these investment entities are considered to be VIEs while others are considered to be voting rights entities ("VREs"). The Company consolidates certain of these investment entities.

The CDOs managed by the Company are considered VIEs. These CDOs are asset backed financing entities collateralized by a pool of assets, primarily syndicated loans and, to a lesser extent, high-yield bonds. Multiple tranches of debt securities are issued by a CDO, offering investors various maturity and credit risk characteristics. The debt securities issued by the CDOs are non-recourse to the Company. The CDO's debt holders have recourse only to the assets of the CDO. The assets of the CDOs cannot be used by the Company. Scheduled debt payments are based on the performance of the CDO's collateral pool. The Company generally earns management fees from the CDOs based on the par value of outstanding debt and, in certain instances, may also receive performance-based fees. In the normal course of business, the Company has invested in certain CDOs, generally an insignificant portion of the unrated, junior subordinated debt.

For certain of the CDOs, the Company has determined that consolidation is required as it has power over the CDOs and holds a variable interest in the CDOs for which the Company has the potential to receive significant benefits or the potential obligation to absorb significant losses. For other CDOs managed by the Company, the Company has determined that consolidation is not required as the Company does not hold a variable interest in the CDOs.

The Company provides investment advice and related services to private, pooled investment vehicles organized as limited partnerships, limited liability companies or foreign (non-U.S.) entities. Certain of these pooled investment vehicles are considered VIEs while others are VREs. For investment management services, the Company generally earns management fees based on the market value of assets under management, and in certain instances may also receive performance-based fees. The Company provides seed money occasionally to certain of these funds. For certain of the pooled investment vehicles, the Company has determined that consolidation is required as the Company stands to absorb a majority of the entity's expected losses or receive a majority of the entity's expected residual returns. For other VIE pooled investment vehicles, the Company has determined that consolidation is not required because the Company is not expected to absorb the majority of the expected losses or receive the majority of the expected residual returns. For the pooled investment vehicles which are VREs, the Company consolidates the structure when it has a controlling financial interest.

The Company also provides investment advisory, distribution and other services to the Columbia and Threadneedle mutual fund families. The Company has determined that consolidation is not required for these mutual funds.

In addition, the Company may invest in structured investments including VIEs for which it is not the sponsor. These structured investments typically invest in fixed income instruments and are managed by third parties and include asset backed securities, commercial mortgage backed securities, and residential mortgage backed securities. The Company includes these investments in Available-for-Sale securities. The Company has determined that it is not the primary beneficiary of these structures due to its relative size, position in the capital structure of these entities, and the Company's lack of power over the structures. The Company's maximum exposure to loss as a result of its investment in structured investments that it does not consolidate is limited to its carrying value. The Company has no obligation to provide further financial or other support to these structured investments nor has the Company provided any support to these structured investments. See Note 5 for additional information about these structured investments.

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, 2011
	Level 1		Level 2		Level 3		Total
	(in millions)
Assets
Investments:
Corporate debt securities	$	—	$	314	$	4	$	318
Common stocks		75		25		13		113
Other structured investments		—		54		—		54
Syndicated loans		—		3,962		342		4,304
Total investments		75		4,355		359		4,789
Receivables		—		39		—		39
Other assets		—		2		1,108		1,110
Total assets at fair value	$	75	$	4,396	$	1,467	$	5,938
Liabilities
Debt	$	—	$	—	$	4,712	$	4,712
Other liabilities		—		85		—		85
Total liabilities at fair value	$	—	$	85	$	4,712	$	4,797

	December 31, 2010
	Level 1		Level 2		Level 3		Total
	(in millions)
Assets
Investments:
Corporate debt securities	$	—	$	418	$	6	$	424
Common stocks		26		53		11		90
Other structured investments		—		39		22		61
Syndicated loans		—		4,867		—		4,867
Trading securities		—		2		—		2
Total investments		26		5,379		39		5,444
Receivables		—		33		—		33
Other assets		—		8		887		895
Total assets at fair value	$	26	$	5,420	$	926	$	6,372
Liabilities
Debt	$	—	$	—	$	5,171	$	5,171
Other liabilities		—		154		—		154
Total liabilities at fair value	$	—	$	154	$	5,171	$	5,325

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:

	Corporate Debt Securities			Common Stocks			Other Structured Investments			Syndicated Loans			Other Assets			Debt
	(in millions)
Balance, January 1, 2011	$	6		$	11		$	22		$	—		$	887		$	(5,171	)
Total gains (losses) included in:
Net income		—			6	(1)		(1)	(1)		(12)	(1)		13	(2)		(89)	(1)
Other comprehensive income		—			—			—			—			(10	)		—
Purchases		3			—			3			208			299			—
Sales		(2	)		(4	)		—			(40	)		(81	)		—
Issues		—			—			—			—			—			(27	)
Settlements		(1	)		—			—			(137	)		1			575
Transfers into Level 3		—			29			—			615			7			—
Transfers out of Level 3		(2	)		(29	)		(24	)		(292	)		(8	)		—
Balance, December 31, 2011	$	4		$	13		$	—		$	342		$	1,108		$	(4,712	)
Changes in unrealized gains (losses) included in income relating to assets and liabilities held at December 31, 2011	$	—		$	3	(1)	$	—		$	(5)	(1)	$	19	(3)	$	(64)	(1)

(1)

Included in net investment income in the Consolidated Statements of Operations.

(2)

Included in other revenues in the Consolidated Statements of Operations.

(3)

Represents a $20 million gain included in other revenues and a $1 million loss included in net investment income in the Consolidated Statements of Operations.

	Corporate Debt Securities			Common Stocks			Other Structured Investments			Other Assets			Debt
	(in millions)
Balance, January 1, 2010	$	—		$	—		$	—		$	831		$	—
Cumulative effect of accounting change		15			—			5			—			(4,962	)
Total gains (losses) included in:
Net income		—			4	(1)		1	(1)		67	(2)		(339)	(1)
Other comprehensive income		—			—			—			(35	)		—
Purchases, sales, issues and settlements, net		(9	)		—			12			24			130
Transfers into Level 3		—			7			4			—			—
Balance, December 31, 2010	$	6		$	11		$	22		$	887		$	(5,171	)
Changes in unrealized gains (losses) included in income relating to assets and liabilities held at December 31, 2010	$	—		$	4	(1)	$	1	(1)	$	40	(3)	$	(339)	(1)

(1)

Included in net investment income in the Consolidated Statements of Operations.

(2)

Represents a $69 million gain included in other revenues and a $2 million loss included in net investment income in the Consolidated Statements of Operations.

(3)

Represents a $42 million gain included in other revenues and a $2 million loss included in net investment income in the Consolidated Statements of Operations.

Securities transferred from Level 2 to Level 3 represent securities with fair values that are now based on a single non-binding broker quote. Securities transferred from Level 3 to Level 2 represent securities with fair values that are now obtained from a third party pricing service with observable inputs.

The Company has elected the fair value option for the financial assets and liabilities of the consolidated CDOs. Management believes that the use of the fair value option better matches the changes in fair value of assets and liabilities related to the CDOs.

For receivables, certain other assets and other liabilities of the consolidated CDOs, the carrying value approximates fair value as the nature of these assets and liabilities has historically been short term and the receivables have been collectible. The fair value of these assets and liabilities is classified as Level 2. Other liabilities consist primarily of securities purchased but not yet settled held by consolidated CDOs. The fair value of syndicated loans obtained from third party pricing services with multiple non-binding broker quotes as the underlying valuation source is classified as Level 2. The fair value of syndicated loans obtained from third party pricing services with a single non-binding broker quote as the underlying valuation source is classified as Level 3. Prices received from third party pricing services are subjected to exception reporting that identifies loans with significant daily price movements as well as no movements. The Company reviews the exception reporting and resolves the exceptions through reaffirmation of the price or recording an appropriate fair value estimate. The Company also performs subsequent transaction testing. The Company performs annual due diligence of the third party pricing services. The Company's due diligence procedures include assessing the vendor's valuation qualifications, control environment, analysis of asset-class specific valuation methodologies, and understanding of sources of market observable assumptions and unobservable assumptions, if any, employed in the valuation methodology. The Company also considers the results of its exception reporting controls and any resulting price challenges that arise. Other assets consist primarily of properties held in consolidated pooled investment vehicles managed by Threadneedle. The fair value of these properties is determined using discounted cash flows and is calculated by a third party appraisal service. Inputs into the valuation of these properties include: rental cash flows, current occupancy, historical vacancy rates, tenant history and assumptions regarding how quickly the property can be occupied and at what rental rates. The Company also utilizes market comparables obtained from a third party appraisal service in developing its fair value assumptions. Management reviews the discounted cash flows and assumptions to ensure that the valuation was performed in accordance with applicable independence, appraisal and valuation standards. Given the significance of the unobservable inputs to these measurements, these assets are classified as Level 3. The fair value of the CDO's debt is valued using a discounted cash flow methodology. Inputs used to determine the expected cash flows include assumptions about default and recovery rates of the CDO's underlying assets. Given the significance of the unobservable inputs to this fair value measurement, the CDO debt is classified as Level 3. See also Note 14 for a description of the Company's determination of the fair value of other investments.

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,
	2011			2010
	(in millions)
Syndicated loans
Unpaid principal balance	$	4,548		$	5,107
Excess estimated unpaid principal over fair value		(244	)		(240	)
Fair value	$	4,304		$	4,867
Fair value of loans more than 90 days past due	$	18		$	71
Fair value of loans in nonaccrual status		18			71
Difference between fair value and unpaid principal of loans more than 90 days past due, loans in nonaccrual status or both		16			62
Debt
Unpaid principal balance	$	5,335		$	5,893
Excess estimated unpaid principal over fair value		(623	)		(722	)
Fair value	$	4,712		$	5,171

Interest income from syndicated loans, bonds and structured investments is recorded based on contractual rates in net investment income. Gains and losses related to changes in the fair value of investments and gains and losses on sales of investments are recorded in net investment income. Interest expense on debt is recorded in interest and debt expense with gains and losses related to changes in the fair value of debt recorded in net investment income.

Total net gains (losses) recognized in net investment income related to changes in the fair value of financial assets and liabilities for which the fair value option was elected were $(122) million and $58 million for the years ended December 31, 2011 and 2010, respectively. The majority of the syndicated loans and debt have floating rates; as such, changes in their fair values are primarily attributable to changes in credit spreads.

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

	Carrying Value				Weighted Average Interest Rate
	December 31,				December 31,
	2011		2010		2011			2010
	(in millions)
Debt of consolidated CDOs due 2012-2021	$	4,712	$	5,171		0.9	%		1.0	%
Floating rate revolving credit borrowings due 2014		378		329		3.2			2.9
Floating rate revolving credit borrowings due 2015		88		35		3.0			2.7
Total	$	5,178	$	5,535

The debt of the consolidated CDOs has both fixed and floating interest rates, which range from 0% to 13.2%. The interest rates on the debt of consolidated investment entities are weighted average rates based on the outstanding principal and contractual interest rates. The carrying value of the debt of the consolidated CDOs represents the fair value of the aggregate debt as of December 31, 2011 and 2010. The carrying value of the floating rate revolving credit borrowings represents the outstanding principal amount of debt of certain consolidated pooled investment vehicles managed by Threadneedle. The fair value of this debt was $466 million and $364 million as of December 31, 2011 and 2010, respectively. The consolidated pooled investment vehicles have entered into interest rate swaps and collars to manage the interest rate exposure on the floating rate revolving credit borrowings. The overall effective interest rate reflecting the impact of the derivative contracts was 5.0% and 5.5% as of December 31, 2011 and 2010, respectively.

At December 31, 2011, future maturities of debt were as follows:

	(in millions)
2012	$	—
2013		17
2014		378
2015		88
2016		1,097
Thereafter		4,221
Total future maturities	$	5,801

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Recent Accounting Pronouncements (Details) (USD $)	1 Months Ended	12 Months Ended
	Jan. 31, 2010	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2011
Recent Accounting Pronouncements
Cumulative effect decrease in retained earnings				$ 1,400,000,000
Cumulative effect increase in assets	5,500,000,000
Cumulative effect increase in liabilities	5,100,000,000
Cumulative effect increase in appropriated retained earnings	473,000,000	473,000,000
Cumulative effect increase to retained earnings due to adoption of new accounting principle, net			$ 132,000,000

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Fair Values of Assets and Liabilities (Details)	12 Months Ended
	Dec. 31, 2011 D
Fair Values of Assets and Liabilities
Maximum original maturities of highly liquid investments included in cash equivalents (in days)	90

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Quarterly Financial Data (Unaudited) (Details) (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2010	Sep. 30, 2010	Jun. 30, 2010	Mar. 31, 2010	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Quarterly Financial Data (Unaudited)
Net revenues	$ 2,582	$ 2,455	$ 2,623	$ 2,532	$ 2,558	$ 2,334	$ 2,462	$ 2,158	$ 10,192	$ 9,512	$ 7,397
Income from continuing operations before income tax provision	352	247	399	387	368	446	462	358	1,385	1,634	920
Income from continuing operations.	285	166	285	294	280	314	396	294	1,030	1,284	736
Income (loss) from discontinued operations, net of tax	13	2	(4)	(71)	(26)	(2)	2	2	(60)	(24)	1
Net income	298	168	281	223	254	312	398	296	970	1,260	737
Less: Net income (loss) attributable to noncontrolling interests	45	(105)	(28)	(18)	(26)	(32)	139	82	(106)	163	15
Net income attributable to Ameriprise Financial	$ 253	$ 273	$ 309	$ 241	$ 280	$ 344	$ 259	$ 214	$ 1,076	$ 1,097	$ 722
Basic
Income from continuing operations (in dollars per share)	$ 1.04	$ 1.14	$ 1.28	$ 1.24	$ 1.21	$ 1.36	$ 0.98	$ 0.81	$ 4.71	$ 4.36	$ 2.98
Income (loss) from discontinued operations (in dollars per share)	$ 0.06	$ 0.01	$ (0.02)	$ (0.28)	$ (0.10)	$ (0.01)	$ 0.01	$ 0.01	$ (0.25)	$ (0.10)
Net income (in dollars per share)	$ 1.10	$ 1.15	$ 1.26	$ 0.96	$ 1.11	$ 1.35	$ 0.99	$ 0.82	$ 4.46	$ 4.26	$ 2.98
Diluted
Income from continuing operations (in dollars per share)	$ 1.02	$ 1.12	$ 1.25	$ 1.21	$ 1.18	$ 1.33	$ 0.97	$ 0.80	$ 4.61	$ 4.27	$ 2.95
Income (loss) from discontinued operations (in dollars per share)	$ 0.06	$ 0.01	$ (0.02)	$ (0.27)	$ (0.10)	$ (0.01)	$ 0.01	$ 0.01	$ (0.24)	$ (0.09)
Net income (in dollars per share)	$ 1.08	$ 1.13	$ 1.23	$ 0.94	$ 1.08	$ 1.32	$ 0.98	$ 0.81	$ 4.37	$ 4.18	$ 2.95
Weighted average common shares outstanding
Basic (in shares)	230.6	238.0	245.5	251.6	252.7	255.3	261.1	260.8	241.4	257.4	242.2
Diluted (in shares)	234.5	242.0	251.0	257.7	258.9	259.9	265.3	265.0	246.3	262.3	244.4
Cash dividends declared per common share (in dollars per share)	$ 0.51	$ 0.23	$ 0.23	$ 0.18	$ 0.18	$ 0.18	$ 0.18	$ 0.17	$ 1.15	$ 0.71	$ 0.68
Common share price:
High (in dollars per share)	$ 50.85	$ 59.49	$ 63.78	$ 65.12	$ 58.17	$ 48.80	$ 49.54	$ 45.88	$ 50.85	$ 58.17
Low (in dollars per share)	$ 36.00	$ 38.93	$ 54.72	$ 57.29	$ 47.03	$ 34.68	$ 35.85	$ 36.14	$ 36.00	$ 47.03

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Financing Receivables (Details 2) (USD $) In Millions, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Commercial mortgage loans
Less: allowance for loan losses	$ 60	$ 64	$ 71
Commercial Mortgage Loans, net
Commercial mortgage loans
Percent of commercial mortgage loans with highest risk rating	3.00%	3.00%
Gross commercial mortgage loans	2,624	2,615
Less: allowance for loan losses	35	38
Net commercial mortgage loans	2,589	2,577
Percentage of gross commercial mortgage loans	100.00%	100.00%
Commercial Mortgage Loans, net | Apartments
Commercial mortgage loans
Gross commercial mortgage loans	392	351
Percentage of gross commercial mortgage loans	15.00%	13.00%
Commercial Mortgage Loans, net | Hotel
Commercial mortgage loans
Gross commercial mortgage loans	51	57
Percentage of gross commercial mortgage loans	2.00%	2.00%
Commercial Mortgage Loans, net | Industrial
Commercial mortgage loans
Gross commercial mortgage loans	480	475
Percentage of gross commercial mortgage loans	18.00%	18.00%
Commercial Mortgage Loans, net | Mixed Use
Commercial mortgage loans
Gross commercial mortgage loans	42	43
Percentage of gross commercial mortgage loans	2.00%	2.00%
Commercial Mortgage Loans, net | Office
Commercial mortgage loans
Gross commercial mortgage loans	694	747
Percentage of gross commercial mortgage loans	26.00%	29.00%
Commercial Mortgage Loans, net | Retail
Commercial mortgage loans
Gross commercial mortgage loans	845	843
Percentage of gross commercial mortgage loans	32.00%	32.00%
Commercial Mortgage Loans, net | Other
Commercial mortgage loans
Gross commercial mortgage loans	120	99
Percentage of gross commercial mortgage loans	5.00%	4.00%
Commercial Mortgage Loans, net | East North Central
Commercial mortgage loans
Gross commercial mortgage loans	252	242
Percentage of gross commercial mortgage loans	10.00%	9.00%
Commercial Mortgage Loans, net | East South Central
Commercial mortgage loans
Gross commercial mortgage loans	65	66
Percentage of gross commercial mortgage loans	2.00%	3.00%
Commercial Mortgage Loans, net | Middle Atlantic
Commercial mortgage loans
Gross commercial mortgage loans	223	215
Percentage of gross commercial mortgage loans	9.00%	8.00%
Commercial Mortgage Loans, net | Mountain
Commercial mortgage loans
Gross commercial mortgage loans	284	301
Percentage of gross commercial mortgage loans	11.00%	11.00%
Commercial Mortgage Loans, net | New England
Commercial mortgage loans
Gross commercial mortgage loans	141	156
Percentage of gross commercial mortgage loans	5.00%	6.00%
Commercial Mortgage Loans, net | Pacific
Commercial mortgage loans
Gross commercial mortgage loans	584	541
Percentage of gross commercial mortgage loans	22.00%	21.00%
Commercial Mortgage Loans, net | South Atlantic
Commercial mortgage loans
Gross commercial mortgage loans	648	625
Percentage of gross commercial mortgage loans	25.00%	24.00%
Commercial Mortgage Loans, net | West North Central
Commercial mortgage loans
Gross commercial mortgage loans	244	271
Percentage of gross commercial mortgage loans	9.00%	10.00%
Commercial Mortgage Loans, net | West South Central
Commercial mortgage loans
Gross commercial mortgage loans	$ 183	$ 198
Percentage of gross commercial mortgage loans	7.00%	8.00%

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Retirement Plans and Profit Sharing Arrangements

12 Months Ended

Dec. 31, 2011

Retirement Plans and Profit Sharing Arrangements

Retirement Plans and Profit Sharing Arrangements

21. Retirement Plans and Profit Sharing Arrangements

Defined Benefit Plans

Pension Plans

The Company's U.S. non-advisor employees are generally eligible for the Ameriprise Financial Retirement Plan (the "Retirement Plan"), a noncontributory defined benefit plan which is a qualified plan under the Employee Retirement Income Security Act of 1974, as amended ("ERISA"). Funding of costs for the Retirement Plan complies with the applicable minimum funding requirements specified by ERISA and is held in a trust. The Retirement Plan is a cash balance plan by which the employees' accrued benefits are based on notional account balances, which are maintained for each individual. Each pay period these balances are credited with an amount equal to a percentage of eligible compensation as defined by the Retirement Plan (which includes, but is not limited to, base pay, performance based incentive pay, commissions, shift differential and overtime). Prior to March 1, 2010, the percentage ranged from 2.5% to 10% based on employees' age plus years of service. Effective March 1, 2010, the percentage ranged from 2.5% to 5% based on employees' years of service. Employees eligible for the plan at the time of the change remain under the previous schedule until the new schedule becomes more favorable. Employees' balances are also credited with a fixed rate of interest that is updated each January 1 and is based on the average of the daily five-year U.S. Treasury Note yields for the previous October 1 through November 30, with a minimum crediting rate of 5%. Employees have the option to receive annuity payments or a lump sum payout at vested termination, retirement, death or disability. The Retirement Plan's year-end is September 30.

In addition, the Company sponsors the Ameriprise Financial Supplemental Retirement Plan (the "SRP"), an unfunded non-qualified deferred compensation plan subject to Section 409A of the Internal Revenue Code. This plan is for certain highly compensated employees to replace the benefit that cannot be provided by the Retirement Plan due to IRS limits. The SRP generally parallels the Retirement Plan but offers different payment options.

Most employees outside the United States are covered by local retirement plans, some of which are funded, while other employees receive payments at the time of retirement or termination under applicable labor laws or agreements.

The components of the net periodic benefit cost for all pension plans were as follows:

	Years Ended December 31,
	2011			2010			2009
	(in millions)
Service cost	$	38		$	33		$	32
Interest cost		23			23			25
Expected return on plan assets		(26	)		(23	)		(22	)
Amortization of prior service costs		(1	)		(2	)		(1	)
Amortization of net (gain)/loss		1			—			—
Other		4			3			3
Net periodic benefit cost	$	39		$	34		$	37

The prior service costs are amortized on a straight-line basis over the average remaining service period of active participants. Actuarial gains and losses in excess of 10% of the greater of the projected benefit obligation or the market-related value of assets are amortized on a straight-line basis over the expected average remaining service period of active participants.

The following tables provide a reconciliation of the changes in the benefit obligation and fair value of assets for the pension plans:

	2011			2010
	(in millions)
Benefit obligation, January 1	$	469		$	421
Service cost		38			33
Interest cost		23			23
Benefits paid		(6	)		(6	)
Actuarial loss		40			23
Settlements		(18	)		(24	)
Foreign currency rate changes		—			(1	)
Benefit obligation, December 31	$	546		$	469

	2011			2010
	(in millions)
Fair value of plan assets, January 1	$	327		$	256
Actual return on plan assets		(12	)		39
Employer contributions		72			64
Benefits paid		(6	)		(6	)
Settlements		(18	)		(24	)
Foreign currency rate changes		(1	)		(2	)
Fair value of plan assets, December 31	$	362		$	327

The following table provides the amounts recognized in the Consolidated Balance Sheets, which equal the funded status of the Company's pension plans:

	December 31,
	2011			2010
	(in millions)
Benefit liability	$	(189	)	$	(162	)
Benefit asset		5			20
Net amount recognized	$	(184	)	$	(142	)

The Company complies with the minimum funding requirements in all countries.

The amounts recognized in accumulated other comprehensive income (loss), net of tax, as of December 31, 2011 but not recognized as components of net periodic benefit cost included an unrecognized actuarial loss of $87 million and an unrecognized prior service credit of $5 million. The estimated amounts that will be amortized from accumulated other comprehensive income (loss), net of tax, into net periodic benefit cost in 2012 include a prior service credit of $1 million.

The accumulated benefit obligation for all pension plans as of December 31, 2011 and 2010 was $493 million and $423 million, respectively. The accumulated benefit obligation and fair value of plan assets for pension plans with accumulated benefit obligations that exceeded the fair value of plan assets were as follows:

	December 31,
	2011		2010
	(in millions)
Accumulated benefit obligation	$	434	$	376
Fair value of plan assets		282		248

The projected benefit obligation and fair value of plan assets for pension plans with projected benefit obligations that exceeded the fair value of plan assets were as follows:

	December 31,
	2011		2010
	(in millions)
Projected benefit obligation	$	470	$	410
Fair value of plan assets		282		248

The weighted average assumptions used to determine benefit obligations for pension plans were as follows:

	2011			2010
Discount rates		4.15	%		4.75	%
Rates of increase in compensation levels		4.27			4.25

The weighted average assumptions used to determine net periodic benefit cost for pension plans were as follows:

	2011			2010			2009
Discount rates		4.75	%		5.28	%		6.22	%
Rates of increase in compensation levels		4.25			4.22			4.23
Expected long-term rates of return on assets		8.00			8.00			8.20

In developing the expected long-term rate of return on assets, management evaluated input from an external consulting firm, including their projection of asset class return expectations and long-term inflation assumptions. The Company also considered historical returns on the plans' assets. Discount rates are based on yields available on high-quality corporate bonds that would generate cash flows necessary to pay the benefits when due.

The Company's pension plans' assets are invested in an aggregate diversified portfolio to minimize the impact of any adverse or unexpected results from a security class on the entire portfolio. Diversification is interpreted to include diversification by asset type, performance and risk characteristics and number of investments. When appropriate and consistent with the objectives of the plans, derivative instruments may be used to mitigate risk or provide further diversification, subject to the investment policies of the plans. Asset classes and ranges considered appropriate for investment of the plans' assets are determined by each plan's investment committee. The target allocations are 70% equity securities, 20% debt securities and 10% all other types of investments, except for the assets in pooled pension funds which are 82% equity securities, 14% debt securities, and 4% all other types of investments. Actual allocations will generally be within 5% of these targets. At December 31, 2011, there were no significant holdings of any single issuer and the exposure to derivative instruments was not significant.

The following tables present the Company's pension plan assets measured at fair value on a recurring basis:

	December 31, 2011
Asset Category	Level 1		Level 2		Level 3		Total
	(in millions)
Equity securities:
U.S. large cap stocks	$	75	$	9	$	—	$	84
U.S. small cap stocks		38		1		—		39
Non-U.S. large cap stocks		14		23		—		37
Emerging markets		10		15		—		25
Debt securities:
U.S. investment grade bonds		17		15		—		32
U.S. high yield bonds		—		11		—		11
Non-U.S. investment grade bonds		—		16		—		16
Real estate investment trusts		—		—		11		11
Hedge funds		—		—		12		12
Pooled pension funds		—		80		—		80
Cash equivalents		15		—		—		15
Total	$	169	$	170	$	23	$	362

	December 31, 2010
Asset Category	Level 1		Level 2		Level 3		Total
	(in millions)
Equity securities:
U.S. large cap stocks	$	72	$	3	$	—	$	75
U.S. small cap stocks		33		1		—		34
Non-U.S. large cap stocks		12		18		—		30
Emerging markets		15		14		—		29
Debt securities:
U.S. investment grade bonds		13		9		—		22
U.S. high yield bonds		—		11		—		11
Non-U.S. investment grade bonds		—		12		—		12
Real estate investment trusts		—		—		8		8
Hedge funds		—		—		9		9
Pooled pension funds		—		79		—		79
Cash equivalents		18		—		—		18
Total	$	163	$	147	$	17	$	327

Equity securities are managed to track the performance of common market indices for both U.S. and non-U.S. securities, primarily across large cap, small cap and emerging market asset classes. Debt securities are managed to track the performance of common market indices for both U.S. and non-U.S. investment grade bonds as well as a pool of U.S. high yield bonds. Real estate investment trusts are managed to track the performance of a broad population of investment grade non-agricultural income producing properties. The Company's investments in hedge funds include investments in a multi-strategy fund and an off-shore fund managed to track the performance of broad fund of fund indices. Pooled pension funds are managed to return 1.5% in excess of a common index of similar pooled pension funds on a rolling three year basis. Cash equivalents consist of holdings in a money market fund that seeks to equal the return of the three month U.S. Treasury bill.

The fair value of real estate investment trusts is based primarily on the underlying cash flows of the properties within the trusts which are significant unobservable inputs and classified as Level 3. The fair value of the hedge funds is based on the proportionate share of the underlying net assets of the funds, which are significant unobservable inputs and classified as Level 3. The fair value of pooled pension funds and equity securities held in collective trust funds is based on the fund's NAV and classified as Level 2 as they trade in principal-to-principal markets. Equity securities and mutual funds traded in active markets are classified as Level 1. For debt securities and cash equivalents, the valuation techniques and classifications are consistent with those used for the Company's own investments as described in Note 14.

The following table provides a summary of changes in Level 3 assets measured at fair value on a recurring basis:

Asset Category	Real Estate Investment Trusts		Hedge Funds
Balance at January 1, 2010	$	5	$	—
Actual return on plan assets:
Relating to assets still held at the reporting date		1		—
Purchases, sales, and settlements, net		2		9
Balance at December 31, 2010		8		9
Actual return on plan assets:
Relating to assets still held at the reporting date		1		—
Purchases		2		11
Sales		—		(8	)
Balance at December 31, 2011	$	11	$	12

The Company's pension plans expect to make benefit payments to retirees as follows:

	(in millions)
2012	$	45
2013		48
2014		49
2015		51
2016		53
2017-2021		250

The Company expects to contribute $46 million to its pension plans in 2012.

Other Postretirement Benefits

The Company sponsors defined benefit postretirement plans that provide health care and life insurance to retired U.S. employees. Net periodic postretirement benefit costs were nil, nil and $2 million in 2011, 2010 and 2009, respectively.

The following table provides a reconciliation of the changes in the defined postretirement benefit plan obligation:

	2011			2010
	(in millions)
Benefit obligation, January 1	$	21		$	22
Interest cost		1			1
Benefits paid		(5	)		(5	)
Participant contributions		4			4
Actuarial gain		(2	)		(1	)
Benefit obligation, December 31	$	19		$	21

The recognized liabilities for the Company's defined postretirement benefit plans are unfunded. At December 31, 2011 and 2010, the recognized liabilities were $19 million and $21 million, respectively, which was equal to the funded status of the Company's postretirement benefit plans.

The amounts recognized in accumulated other comprehensive income (loss), net of tax, as of December 31, 2011 but not recognized as components of net periodic benefit cost included an unrecognized actuarial gain of $7 million and an unrecognized prior service cost of nil. The estimated amount that will be amortized from accumulated other comprehensive income (loss), net of tax, into net periodic benefit cost in 2012 is approximately $1 million.

The weighted average assumptions used to determine benefit obligations for other postretirement benefits were as follows:

	2011			2010
Discount rates		4.15	%		4.90	%
Healthcare cost increase rates:
Following year		7.00			7.50
Decreasing to the year 2016		5.00			5.00

Discount rates are based on yields available on high-quality corporate bonds that would generate cash flows necessary to pay the benefits when due.

A one percentage-point change in the assumed healthcare cost trend rates would not have a material effect on the postretirement benefit obligation or net periodic postretirement benefit costs.

The Company's defined benefit postretirement plans expect to make benefit payments to retirees as follows:

	(in millions)
2012	$	2
2013		2
2014		2
2015		1
2016		1
2017-2021		7

The Company expects to contribute $2 million to its defined benefit postretirement plans in 2012.

The following is a summary of unrealized losses included in other comprehensive income related to the Company's defined benefit plans:

	2011			2010			2009
	(in millions)
Net unrealized defined benefit losses at January 1	$	(24	)	$	(20	)	$	(39	)
Net gains (losses)		(77	)		(4	)		15
Prior service cost (credit)		(2	)		(2	)		14
Income tax benefit (provision)		28			2			(10	)
Net unrealized defined benefit losses at December 31	$	(75	)	$	(24	)	$	(20	)

Defined Contribution Plan

In addition to the plans described previously, the Company's employees are generally eligible to participate in the Ameriprise Financial 401(k) Plan (the "401(k) Plan"). The 401(k) Plan allows eligible employees to make contributions through payroll deductions up to IRS limits and invest their contributions in one or more of the 401(k) Plan investment options, which include the Ameriprise Financial Stock Fund. Effective March 1, 2010, the Company matches 100% of the first 5% of eligible compensation an employee contributes on a pretax or Roth 401(k) basis for each annual period. Prior to March 1, 2010, the Company matched 100% of the first 3% of base pay an employee contributed on a pretax basis each pay period. Effective March 1, 2010, the Company no longer makes an annual discretionary variable match. Prior to May 2009, the Company also made contributions equal to 1% of base pay each pay period, which were automatically invested in the Ameriprise Financial Stock Fund.

Under the 401(k) Plan, employees become eligible for contributions under the plan during the pay period they reach 60 days of service. Fixed and variable match contributions and stock contributions are fully vested after five years of service, vesting ratably over the first five years of service. The Company's defined contribution plan expense was $33 million, $32 million and $16 million in 2011, 2010 and 2009, respectively.

Threadneedle Profit Sharing Plan

On an annual basis, Threadneedle employees are eligible for a profit sharing arrangement. The employee profit sharing plan provides for profit sharing of 30% based on an internally defined recurring pretax operating income measure for Threadneedle, which primarily includes pretax income related to investment management services and investment portfolio income excluding gains and losses on asset disposals, certain reorganization expenses, EPP and EIP expenses and other non-recurring expenses. Compensation expense related to the employee profit sharing plan was $54 million, $52 million and $32 million in 2011, 2010 and 2009, respectively.

XML

Future Policy Benefits and Claims and Separate Account Liabilities (Details) (Ameriprise Financial, USD $) In Millions, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Future policy benefits and claims	$ 31,723	$ 30,208
Fixed annuities
Future policy benefits and claims	16,401	16,520
Equity indexed annuity accumulated host values
Future policy benefits and claims	58	100
Equity indexed annuity embedded derivatives
Future policy benefits and claims	2	3
Variable annuity fixed sub-accounts
Future policy benefits and claims	4,852	4,868
Variable annuity guaranteed minimum withdrawal benefits ("GMWB")
Future policy benefits and claims	1,377	337
Variable annuity guaranteed minimum accumulation benefits ("GMAB")
Future policy benefits and claims	237	104
Other variable annuity guarantees
Future policy benefits and claims	14	13
Total annuities
Future policy benefits and claims	22,941	21,945
Variable universal life ("VUL")/ universal life ("UL") insurance
Future policy benefits and claims	2,662	2,588
IUL accumulated host values
Future policy benefits and claims	4
IUL embedded derivatives
Future policy benefits and claims	3
VUL/UL insurance additional liabilities
Future policy benefits and claims	220	143
Other life, disability income and long term care insurance
Future policy benefits and claims	5,352	5,004
Auto, home and other insurance
Future policy benefits and claims	420	394
Policy claims and other policyholders' funds
Future policy benefits and claims	$ 121	$ 134

XML

Reinsurance (Tables)

12 Months Ended

Dec. 31, 2011

Reinsurance

Effect of reinsurance on premiums

	Years Ended December 31,
	2011			2010			2009
	(in millions)
Direct premiums	$	1,421		$	1,382		$	1,317
Reinsurance ceded		(201	)		(203	)		(219	)
Net premiums	$	1,220		$	1,179		$	1,098

XML

Fair Values of Assets and Liabilities

12 Months Ended

Dec. 31, 2011

Fair Values of Assets and Liabilities

Fair Values of Assets and Liabilities

14. Fair Values of Assets and Liabilities

GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date; that is, an exit price. The exit price assumes the asset or liability is not exchanged subject to a forced liquidation or distressed sale.

Valuation Hierarchy

The Company categorizes its fair value measurements according to a three-level hierarchy. The hierarchy prioritizes the inputs used by the Company's valuation techniques. A level is assigned to each fair value measurement based on the lowest level input that is significant to the fair value measurement in its entirety. The three levels of the fair value hierarchy are defined as follows:

Level 1	Unadjusted quoted prices for identical assets or liabilities in active markets that are accessible at the measurement date.
Level 2	Prices or valuations based on observable inputs other than quoted prices in active markets for identical assets and liabilities.
Level 3	Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable.

Determination of Fair Value

The Company uses valuation techniques consistent with the market and income approaches to measure the fair value of its assets and liabilities. The Company's market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. The Company's income approach uses valuation techniques to convert future projected cash flows to a single discounted present value amount. When applying either approach, the Company maximizes the use of observable inputs and minimizes the use of unobservable inputs.

The following is a description of the valuation techniques used to measure fair value and the general classification of these instruments pursuant to the fair value hierarchy.

Assets

Cash Equivalents

Cash equivalents include highly liquid investments with original maturities of 90 days or less. Actively traded money market funds are measured at their net asset value ("NAV") and classified as Level 1. The Company's remaining cash equivalents are classified as Level 2 and measured at amortized cost, which is a reasonable estimate of fair value because of the short time between the purchase of the instrument and its expected realization.

Investments (Trading Securities and Available-for-Sale Securities)

When available, the fair value of securities is based on quoted prices in active markets. If quoted prices are not available, fair values are obtained from third party pricing services, non-binding broker quotes, or other model-based valuation techniques. Level 1 securities primarily include U.S. Treasuries. Level 2 securities primarily include residential mortgage backed securities, commercial mortgage backed securities, asset backed securities, municipal and corporate bonds, and U.S. agency and foreign government securities. The fair value of these Level 2 securities is based on a market approach with prices obtained from third party pricing services. Observable inputs used to value these securities can include, but are not limited to reported trades, benchmark yields, issuer spreads and non-binding broker quotes. Level 3 securities primarily include certain non-agency residential mortgage backed securities, asset backed securities and corporate bonds. The fair value of corporate bonds and certain asset backed securities classified as Level 3 is typically based on a single non-binding broker quote. The fair value of certain asset backed securities and non-agency residential mortgage backed securities is obtained from third party pricing services who use significant unobservable inputs to estimate the fair value.

Prices received from third party pricing services are subjected to exception reporting that identifies investments with significant daily price movements as well as no movements. The Company reviews the exception reporting and resolves the exceptions through reaffirmation of the price or recording an appropriate fair value estimate. The Company also performs subsequent transaction testing. The Company performs annual due diligence of third party pricing services. The Company's due diligence procedures include assessing the vendor's valuation qualifications, control environment, analysis of asset-class specific valuation methodologies, and understanding of sources of market observable assumptions and unobservable assumptions, if any, employed in the valuation methodology. The Company also considers the results of its exception reporting controls and any resulting price challenges that arise.

Separate Account Assets

The fair value of assets held by separate accounts is determined by the NAV of the funds in which those separate accounts are invested. The NAV represents the exit price for the separate account. Separate account assets are classified as Level 2 as they are traded in principal-to-principal markets with little publicly released pricing information.

Investments Segregated for Regulatory Purposes

When available, the fair value of securities is based on quoted prices in active markets. If quoted prices are not available, fair values are obtained from third party pricing services, non-binding broker quotes, or other model-based valuation techniques. Level 2 securities include agency mortgage backed securities, asset backed securities, municipal and corporate bonds, and U.S. agency and foreign government securities.

Other Assets

Derivatives that are measured using quoted prices in active markets, such as foreign currency forwards, or derivatives that are exchange-traded are classified as Level 1 measurements. The fair value of derivatives that are traded in less active over-the-counter markets are generally measured using pricing models with market observable inputs such as interest rates and equity index levels. These measurements are classified as Level 2 within the fair value hierarchy and include swaps and the majority of options. The counterparties' nonperformance risk associated with uncollateralized derivative assets was immaterial at December 31, 2011 and 2010. See Note 15 for further information on the credit risk of derivative instruments and related collateral.

Assets Held for Sale

Assets held for sale consist of cash equivalents of Securities America.

Liabilities

Future Policy Benefits and Claims

The Company values the embedded derivative liability attributable to the provisions of certain variable annuity riders using internal valuation models. These models calculate fair value by discounting expected cash flows from benefits plus margins for profit, risk and expenses less embedded derivative fees. The projected cash flows used by these models include observable capital market assumptions (such as, market implied equity volatility and the LIBOR swap curve) and incorporate significant unobservable inputs related to contractholder behavior assumptions (such as withdrawals and lapse rates) and margins for risk, profit and expenses that the Company believes an exit market participant would expect. The fair value of these embedded derivatives also reflects a current estimate of the Company's nonperformance risk specific to these liabilities. Given the significant unobservable inputs to this valuation, these measurements are classified as Level 3. The embedded derivative liability attributable to these provisions is recorded in future policy benefits and claims. The Company uses various Black-Scholes calculations to determine the fair value of the embedded derivative liability associated with the provisions of its equity indexed annuity and indexed universal life products. The inputs to these calculations are primarily market observable and include interest rates, volatilities, and equity index levels. As a result, these measurements are classified as Level 2.

Customer Deposits

The Company uses various Black-Scholes calculations to determine the fair value of the embedded derivative liability associated with the provisions of its stock market certificates. The inputs to these calculations are primarily market observable and include interest rates, volatilities and equity index levels. As a result, these measurements are classified as Level 2.

Other Liabilities

Derivatives that are measured using quoted prices in active markets, such as foreign currency forwards, or derivatives that are exchange-traded are classified as Level 1 measurements. The fair value of derivatives that are traded in less active over-the-counter markets are generally measured using pricing models with market observable inputs such as interest rates and equity index levels. These measurements are classified as Level 2 within the fair value hierarchy and include swaps and the majority of options. The Company's nonperformance risk associated with uncollateralized derivative liabilities was immaterial at December 31, 2011 and 2010. See Note 15 for further information on the credit risk of derivative instruments and related collateral.

Securities sold but not yet purchased include highly liquid investments which are short-term in nature. Securities sold but not yet purchased are measured using amortized cost, which is a reasonable estimate of fair value because of the short time between the purchase of the instrument and its expected realization and are classified as Level 2.

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

	December 31, 2011
	Level 1		Level 2		Level 3		Total
	(in millions)
Assets
Cash equivalents	$	20	$	2,287	$	—	$	2,307
Available-for-Sale securities:
Corporate debt securities		—		16,685		1,355		18,040
Residential mortgage backed securities		—		7,198		198		7,396
Commercial mortgage backed securities		—		4,669		50		4,719
Asset backed securities		—		1,779		206		1,985
State and municipal obligations		—		2,130		—		2,130
U.S. government and agencies obligations		22		49		—		71
Foreign government bonds and obligations		—		144		—		144
Common stocks		2		2		5		9
Other debt obligations		—		11		—		11
Total Available-for-Sale securities		24		32,667		1,814		34,505
Trading securities		1		30		—		31
Separate account assets		—		66,780		—		66,780
Investments segregated for regulatory purposes		—		293		—		293
Other assets:
Interest rate derivative contracts		—		1,958		—		1,958
Equity derivative contracts		274		1,077		—		1,351
Credit derivative contracts		—		1		—		1
Foreign currency derivative contracts		—		7		—		7
Commodity derivative contracts		—		2		—		2
Total other assets		274		3,045		—		3,319
Total assets at fair value	$	319	$	105,102	$	1,814	$	107,235
Liabilities
Future policy benefits and claims:
EIA embedded derivatives	$	—	$	2	$	—	$	2
IUL embedded derivatives		—		3		—		3
GMWB and GMAB embedded derivatives		—		—		1,585		1,585
Total future policy benefits and claims		—		5		1,585		1,590	(1)
Customer deposits		—		6		—		6
Other liabilities:
Interest rate derivative contracts		—		1,209		—		1,209
Equity derivative contracts		297		764		—		1,061
Foreign currency derivative contracts		3		10		—		13
Other		—		2		—		2
Total other liabilities		300		1,985		—		2,285
Total liabilities at fair value	$	300	$	1,996	$	1,585	$	3,881

(1)

The Company's adjustment for nonperformance risk resulted in a $506 million cumulative decrease to the embedded derivative liability.

	December 31, 2010
	Level 1		Level 2		Level 3		Total
	(in millions)
Assets
Cash equivalents	$	42	$	2,481	$	—	$	2,523
Available-for-Sale securities:
Corporate debt securities		—		15,281		1,325		16,606
Residential mortgage backed securities		—		3,011		4,247		7,258
Commercial mortgage backed securities		—		4,817		51		4,868
Asset backed securities		—		1,544		476		2,020
State and municipal obligations		—		1,582		—		1,582
U.S. government and agencies obligations		64		79		—		143
Foreign government bonds and obligations		—		108		—		108
Common stocks		2		3		5		10
Other debt obligations		—		24		—		24
Total Available-for-Sale securities		66		26,449		6,104		32,619
Trading securities		—		43		—		43
Separate account assets		—		68,330		—		68,330
Investments segregated for regulatory purposes		—		298		—		298
Other assets:
Interest rate derivative contracts		—		438		—		438
Equity derivative contracts		32		420		—		452
Credit derivative contracts		—		4		—		4
Foreign currency derivative contracts		1		—		—		1
Other		—		2		—		2
Total other assets		33		864		—		897
Assets held for sale		—		15		—		15
Total assets at fair value	$	141	$	98,480	$	6,104	$	104,725
Liabilities
Future policy benefits and claims:
EIA embedded derivatives	$	—	$	3	$	—	$	3
GMWB and GMAB embedded derivatives		—		—		421		421
Total future policy benefits and claims		—		3		421		424	(1)
Customer deposits		—		14		—		14
Other liabilities:
Interest rate derivative contracts		—		379		—		379
Equity derivative contracts		18		722		—		740
Credit derivative contracts		—		1		—		1
Foreign currency derivative contracts		1		—		—		1
Other		—		2		—		2
Total other liabilities		19		1,104		—		1,123
Total liabilities at fair value	$	19	$	1,121	$	421	$	1,561

(1)

The Company's adjustment for nonperformance risk resulted in a $197 million cumulative decrease to the embedded derivative liability.

The following tables provide a summary of changes in Level 3 assets and liabilities of Ameriprise Financial measured at fair value on a recurring basis:

	Available-for-Sale Securities																	Future Policy Benefits and Claims: GMWB and GMAB Embedded Derivatives
	Corporate Debt Securities			Residential Mortgage Backed Securities			Commercial Mortgage Backed Securities			Asset Backed Securities			Common Stocks		Total
	(in millions)
Balance, January 1, 2011	$	1,325		$	4,247		$	51		$	476		$	5	$	6,104		$	(421	)
Total gains (losses) included in:
Net income		7			48			—			8			—		63	(1)		(1,007)	(2)
Other comprehensive income		11			(110	)		—			(18	)		—		(117	)		—
Purchases		189			556			104			118			—		967			—
Sales		(51	)		(2	)		—			—			—		(53	)		—
Issues		—			—			—			—			—		—			(149	)
Settlements		(122	)		(885	)		(4	)		(87	)		—		(1,098	)		(8	)
Transfers into Level 3		7			—			1			14			—		22			—
Transfers out of Level 3		(11	)		(3,656	)		(102	)		(305	)		—		(4,074	)		—
Balance, December 31, 2011	$	1,355		$	198		$	50		$	206		$	5	$	1,814		$	(1,585	)
Changes in unrealized gains (losses) relating to assets and liabilities held at December 31, 2011 included in:
Net investment income	$	—		$	(32	)	$	—		$	1		$	—	$	(31	)	$	—
Benefits, claims, losses and settlement expenses		—			—			—			—			—		—			(1,035	)

(1)

Included in net investment income in the Consolidated Statements of Operations.

(2)

Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Operations.

	Available-for-Sale Securities																			Future Policy Benefits and Claims: GMWB and GMAB Embedded Derivatives
	Corporate Debt Securities		Residential Mortgage Backed Securities			Commercial Mortgage Backed Securities			Asset Backed Securities			Common Stocks		Other Structured Investments			Total
	(in millions)
Balance, January 1, 2010	$	1,252	$	3,982		$	72		$	455		$	4	$	58		$	5,823		$	(299	)
Total gains included in:
Net income		1		55			1			12			—		—			69	(1)		4	(2)
Other comprehensive income		30		292			10			38			1		—			371			—
Purchases, sales, issues and settlements, net		17		(61	)		112			(5	)		—		(58)	(3)		5			(126	)
Transfers into Level 3		25		—			—			—			—		—			25			—
Transfers out of Level 3		—		(21	)		(144	)		(24	)		—		—			(189	)		—
Balance, December 31, 2010	$	1,325	$	4,247		$	51		$	476		$	5	$	—		$	6,104		$	(421	)
Changes in unrealized gains (losses) relating to assets and liabilities held at December 31, 2010 included in:
Net investment income	$	—	$	54		$	—		$	11		$	—	$	—		$	65		$	—
Benefits, claims, losses and settlement expenses		—		—			—			—			—		—			—			(15	)

(1)

Included in net investment income in the Consolidated Statements of Operations.

(2)

Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Operations.

(3)

Represents the elimination of Ameriprise Financial's investment in CDOs, which were consolidated due to the adoption of a new accounting standard. See Note 2 and Note 4 for additional information related to the consolidation of CDOs.

The impact to pretax income of the Company's adjustment for nonperformance risk on the fair value of its GMWB and GMAB embedded derivatives was an increase of $168 million and $28 million, net of DAC and DSIC amortization, for the years ended December 31, 2011 and 2010, respectively.

During the year ended December 31, 2011 transfers out of Level 3 to Level 2 included certain non-agency residential mortgage backed securities and sub-prime non-agency residential mortgage backed securities classified as asset backed securities with a fair value of approximately $3.9 billion. The transfers reflect improved pricing transparency of these securities, a continuing trend of increased activity in the non-agency residential mortgage backed security market and increased observability of significant inputs to the valuation methodology. All other securities transferred from Level 3 to Level 2 represent securities with fair values that are now obtained from a third party pricing service with observable inputs. Securities transferred from Level 2 to Level 3 represent securities with fair values that are now based on a single non-binding broker quote.

The Company recognizes transfers between levels of the fair value hierarchy as of the beginning of the quarter in which each transfer occurred.

During the reporting periods, there were no material assets or liabilities measured at fair value on a nonrecurring basis.

The following table provides the carrying value and the estimated fair value of financial instruments that are not reported at fair value. All other financial instruments that are reported at fair value have been included above in the table with balances of assets and liabilities Ameriprise Financial measured at fair value on a recurring basis.

	December 31, 2011				December 31, 2010
	Carrying Value		Fair Value		Carrying Value		Fair Value
	(in millions)
Financial Assets
Commercial mortgage loans, net	$	2,589	$	2,772	$	2,577	$	2,671
Policy loans		742		715		733		808
Receivables		2,444		2,148		1,852		1,566
Restricted and segregated cash		1,500		1,500		1,516		1,516
Assets held for sale		—		—		18		18
Other investments and assets		390		388		331		338
Financial Liabilities
Future policy benefits and claims	$	15,064	$	16,116	$	15,328	$	15,768
Investment certificate reserves		2,766		2,752		3,127		3,129
Banking and brokerage customer deposits		7,078		7,091		5,638		5,642
Separate account liabilities		3,950		3,950		4,930		4,930
Debt and other liabilities		3,180		3,412		2,722		2,919

Investments

The fair value of commercial mortgage loans, except those with significant credit deterioration, is determined by discounting contractual cash flows using discount rates that reflect current pricing for loans with similar remaining maturities and characteristics including loan-to-value ratio, occupancy rate, refinance risk, debt-service coverage, location, and property condition. For commercial mortgage loans with significant credit deterioration, fair value is determined using the same adjustments as above with an additional adjustment for the Company's estimate of the amount recoverable on the loan.

The fair value of policy loans is determined using discounted cash flows.

Receivables

The fair value of consumer bank loans is determined by discounting estimated cash flows and incorporating adjustments for prepayment, administration expenses, severity and credit loss estimates, with discount rates based on the Company's estimate of current market conditions.

Loans held for sale are measured at the lower of cost or market and fair value is based on what secondary markets are currently offering for loans with similar characteristics.

Brokerage margin loans are measured at outstanding balances, which are a reasonable estimate of fair value because of the sufficiency of the collateral and short term nature of these loans.

Restricted and Segregated Cash

Restricted and segregated cash is generally set aside for specific business transactions and restrictions are specific to the Company and do not transfer to third party market participants; therefore, the carrying amount is a reasonable estimate of fair value.

Amounts segregated under federal and other regulations may also reflect resale agreements and are measured at the cost at which the securities will be sold. This measurement is a reasonable estimate of fair value because of the short time between entering into the transaction and its expected realization and the reduced risk of credit loss due to pledging U.S. government-backed securities as collateral.

Assets Held for Sale

Assets held for sale reflect notes receivable of Securities America. See Note 1 and Note 24 for additional information on the Company's presentation of discontinued operations.

Other Investments and Assets

Other investments and assets primarily consist of syndicated loans. The fair value of syndicated loans is obtained from a third party pricing service.

Future Policy Benefits and Claims

The fair value of fixed annuities, in deferral status, is determined by discounting cash flows using a risk neutral discount rate with adjustments for profit margin, expense margin, early policy surrender behavior, a provision for adverse deviation from estimated early policy surrender behavior, and the Company's nonperformance risk specific to these liabilities. The fair value of other liabilities including non-life contingent fixed annuities in payout status, equity indexed annuity host contracts and the fixed portion of a small number of variable annuity contracts classified as investment contracts is determined in a similar manner.

Customer Deposits

The fair value of investment certificate reserves is determined by discounting cash flows using discount rates that reflect current pricing for assets with similar terms and characteristics, with adjustments for early withdrawal behavior, penalty fees, expense margin and the Company's nonperformance risk specific to these liabilities.

Banking and brokerage customer deposits are liabilities with no defined maturities and fair value is the amount payable on demand at the reporting date.

Separate Account Liabilities

Certain separate account liabilities are classified as investment contracts and are carried at an amount equal to the related separate account assets. Carrying value is a reasonable estimate of the fair value as it represents the exit value as evidenced by withdrawal transactions between contractholders and the Company. A nonperformance adjustment is not included as the related separate account assets act as collateral for these liabilities and minimize nonperformance risk.

Debt and Other Liabilities

The fair value of long-term debt is based on quoted prices in active markets, when available. If quoted prices are not available fair values are obtained from third party pricing services, non-binding broker quotes, or other model-based valuation techniques such as present value of cash flows.

The fair value of short-term borrowings is obtained from a third party service. A nonperformance adjustment is not included as collateral requirements for these borrowings minimize the nonperformance risk.

The fair value of future funding commitments to affordable housing partnerships is determined by discounting cash flows.

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Retirement Plans and Profit Sharing Arrangements (Details 4) (USD $) In Millions, unless otherwise specified	1 Months Ended	2 Months Ended	4 Months Ended	12 Months Ended
	Mar. 31, 2010	Feb. 28, 2010	Apr. 30, 2009	Dec. 31, 2011 D Y	Dec. 31, 2010	Dec. 31, 2009
Summary of unrealized losses included in other comprehensive income
Net unrealized defined benefit losses at the beginning of the period		$ 20	$ 39	$ 24	$ 20	$ 39
Net gains (losses)				(77)	(4)	15
Prior service cost (credit)				(2)	(2)	14
Income tax benefit (provision)				28	2	(10)
Net unrealized defined benefit losses at the at the end of the period				75	24	20
Percentage of matching contribution by an employer effective March 1, 2010	100.00%
Percent of compensation effective March 1, 2010 eligible for matching contribution by employer	5.00%
Percentage of matching contribution by an employer prior to March 1, 2010		100.00%
Percent of compensation prior to March 1, 2010 eligible for matching contribution by employer		3.00%
Percentage of base pay contributed by the employer before May 2009			1.00%
Minimum service period for eligibility under the defined contribution plan (in days)				60
Period of graded schedule for vesting fixed and variable match contributions and stock contributions (in years)				5
Defined contribution plan expense				33	32	16
Profit sharing plan
Threadneedle Profit Sharing Arrangements
Percentage of profit sharing				30.00%
Compensation expense (benefit) related to the employee profit sharing plan				$ 54	$ 52	$ 32