Ameriprise 2010 Annual Report Download - page 102

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,
2010 were as follows:
2016 and
Total 2011 2012-2013 2014-2015 Thereafter
(in millions)
Balance Sheet:
Long-term debt(1) $ 2,264 $ — $ — $ 700 $ 1,564
Insurance and annuities(2) 47,335 2,348 4,815 5,589 34,583
Investment certificates(3) 3,146 2,879 267 — —
Deferred premium options(4) 1,651 266 468 371 546
Affordable housing partnerships(5) 188 88 98 2 —
Off-Balance Sheet:
Lease obligations 670 96 171 144 259
Purchase obligations(6) 459 138 178 61 82
Interest on long-term debt(7) 2,470 140 281 275 1,774
Total $ 58,183 $ 5,955 $ 6,278 $ 7,142 $ 38,808
(1) See Note 14 to our Consolidated Financial Statements for more information about our long-term debt.
(2) These scheduled payments are represented by reserves of approximately $29.7 billion at December 31, 2010 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 the deferred premium options included on the Consolidated Balance Sheets was $1.5 billion as of December 31,
2010. See Note 16 to our Consolidated Financial Statements for more information about our deferred premium options.
(5) Affordable housing partnership commitments are primarily 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, 2010.
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, 2010.
In addition to the contractual commitments outlined in the table above, we periodically fund the employees’ defined
benefit plans. We contributed $64 million and $36 million in 2010 and 2009, respectively, to our pension plans. In 2011,
we expect to contribute $40 million to our pension plans and $2 million to our defined benefit postretirement plans. See
Note 22 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 $2.1 billion at December 31, 2010.
For additional information relating to these contractual commitments, see Note 23 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, 2010. 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.
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