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Debt

6 Months Ended

Jun. 30, 2012

Debt

9. Debt

The balances and the stated interest rates of outstanding debt of Ameriprise Financial were as follows:

		Outstanding Balance						Stated Interest Rate
		June 30, 2012			December 31, 2011			June 30, 2012		December 31, 2011
		(in millions)
Senior notes due 2015		$	752	(1)	$	753	(1)	5.7	%	5.7	%
Senior notes due 2019		346		(1)	341		(1)	7.3		7.3
Senior notes due 2020		811		(1)	805		(1)	5.3		5.3
Senior notes due 2039		200			200			7.8		7.8
Junior subordinated notes due 2066		294			294			7.5		7.5
Total long-term debt		2,403			2,393
Short-term borrowings		498			504			0.3		0.3
Total		$	2,901		$	2,897

(1) Amounts include adjustments for fair value hedges on the Company’s long-term debt and any unamortized discounts. See Note 11 for information on the Company’s fair value hedges.

The Company’s junior subordinated notes due 2066 (“junior notes”) and credit facility contain various administrative, reporting, legal and financial covenants. The Company was in compliance with all such covenants at both June 30, 2012 and December 31, 2011. The Company had no borrowings outstanding under its credit facility as of both June 30, 2012 and December 31, 2011.

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 $512 million and $521 million at June 30, 2012 and December 31, 2011, 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.

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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