Ameriprise 2011 Annual Report Download - page 156

Download and view the complete annual report

Please find page 156 of the 2011 Ameriprise annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 200

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188
  • 189
  • 190
  • 191
  • 192
  • 193
  • 194
  • 195
  • 196
  • 197
  • 198
  • 199
  • 200

Assets Held for Sale
Assets held for sale reflect notes receivable of Securities America. See Note 1 and Note 24 for additional information on
the Company’s presentation of discontinued operations.
Other Investments and Assets
Other investments and assets primarily consist of syndicated loans. The fair value of syndicated loans is obtained from a
third party pricing service.
Future Policy Benefits and Claims
The fair value of fixed annuities, in deferral status, is determined by discounting cash flows using a risk neutral discount
rate with adjustments for profit margin, expense margin, early policy surrender behavior, a provision for adverse deviation
from estimated early policy surrender behavior, and the Company’s nonperformance risk specific to these liabilities. The fair
value of other liabilities including non-life contingent fixed annuities in payout status, equity indexed annuity host contracts
and the fixed portion of a small number of variable annuity contracts classified as investment contracts is determined in a
similar manner.
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 third party pricing services, non-binding broker quotes, or other model-based
valuation techniques such as present value of cash flows.
The fair value of short-term borrowings is obtained from a third party service. A nonperformance adjustment is not included
as collateral requirements for these borrowings minimize the nonperformance risk.
The fair value of future funding commitments to affordable housing partnerships is determined by discounting cash flows.
141