Ameriprise 2010 Annual Report Download - page 151

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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 nationally-recognized pricing services, broker quotes, or other model-based valuation
techniques such as present value of cash flows.
The fair value of short-term borrowings is determined by discounting cash flows. A nonperformance adjustment is not
included as collateral requirements for these borrowings minimize the nonperformance risk.
135