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