Ameriprise 2010 Annual Report Download - page 188

Schedule I—Condensed Financial Information of Registrant
Notes to Condensed Financial Information of Registrant
(Parent Company Only)
1. Basis of Presentation
The accompanying Condensed Financial Statements include the accounts of Ameriprise Financial, Inc. (the ‘‘Registrant,’’
‘‘Ameriprise Financial’’ or ‘‘Parent Company’’) and, on an equity basis, its subsidiaries and affiliates. The appropriated
retained earnings of consolidated investment entities are not included on the Parent Company Only Condensed Financial
Statements. The financial statements have been prepared in accordance with U.S. GAAP and all adjustments made were
of a normal, recurring nature. Certain prior year amounts have been reclassified to conform to the current year’s
presentation. The financial information of the Parent Company should be read in conjunction with the Consolidated
Financial Statements and Notes of Ameriprise Financial. Parent Company revenues and expenses, other than
compensation and benefits and debt and interest expense, are primarily related to intercompany transactions with
subsidiaries and affiliates.
The change in the fair value of certain derivative instruments is reflected on the Parent Company Only Condensed
Statements of Operations. For certain of these derivatives, the change in the hedged item is not reflected on the Parent
Company Only Condensed Statements of Operations. The change in fair value of derivatives used to hedge certain asset-
based distribution fees is included in distribution fees, while the underlying distribution fee revenue is not. The change in
fair value of derivatives used to economically hedge exposure to equity price risk of Ameriprise Financial, Inc. common
stock granted as part of the Ameriprise Financial Franchise Advisor Deferred Equity Plan is included in distribution
expenses, while the underlying distribution expenses are not.
2. Debt
All of the debt of Ameriprise Financial are borrowings of the Parent Company, except as indicated below.
• At December 31, 2010 and 2009, consolidated investment entities held debt of $5.5 billion and $381 million,
respectively. The borrowings due 2012 through 2021 are non-recourse debt related to certain consolidated property
funds and collateralized debt obligations.
• At both December 31, 2010 and 2009, the debt of Ameriprise Financial included $6 million of municipal bond inverse
floater certificates that are non-recourse debt obligations supported by a $10 million portfolio of municipal bonds.
• At December 31, 2010, the debt of Ameriprise Financial included $397 million of repurchase agreements, which are
accounted for as secured borrowings.
3. Guarantees, Commitments and Contingencies
The Parent Company is the guarantor for an operating lease of IDS Property Casualty Insurance Company.
All consolidated legal, regulatory and arbitration proceedings, including class actions of Ameriprise Financial, Inc. and its
consolidated subsidiaries are potential or current obligations of the Parent Company.
The Parent Company and ACC entered into a Capital Support Agreement on March 2, 2009, pursuant to which the Parent
Company agrees to commit such capital to ACC as is necessary to satisfy applicable minimum capital requirements, up to
a maximum commitment of $115 million. For the years ended December 31, 2010 and 2009, ACC did not draw upon the
Capital Support Agreement and had met all applicable capital requirements.
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