Ameriprise 2009 Annual Report Download - page 159

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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, 2009,
the aggregate fair value of all derivative instruments containing such credit risk features was $297 million. The aggregate fair value of
assets posted as collateral for such instruments as of December 31, 2009 was $269 million. If the credit risk features of derivative
contracts that were in a net liability position at December 31, 2009 were triggered, the additional fair value of assets needed to settle these
derivative liabilities would have been $28 million.
21. Income Taxes
The components of income tax provision (benefit) were as follows: Years Ended December 31,
2009 2008 2007
(in millions)
Current income tax:
Federal $ 199 $ 50 $ 137
State and local 4 9 (5)
Foreign 41745
Total current income tax 207 76 177
Deferred income tax:
Federal (13) (376) 34
State and local (7) (22) —
Foreign (4) (11) (9)
Total deferred income tax (24) (409) 25
Total income tax provision (benefit) $ 183 $ (333) $ 202
The geographic sources of pretax income (loss) were as follows:
Years Ended December 31,
2009 2008 2007
(in millions)
United States $ 883 $ (444) $ 888
Foreign 37 19 120
Total $ 920 $ (425) $ 1,008
144 ANNUAL REPORT 2009