Ameriprise 2011 Annual Report Download - page 161

2010, the Company’s maximum credit exposure related to derivative assets after considering netting arrangements with
counterparties and collateral arrangements was approximately $72 million and $45 million, respectively.
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, 2011 and 2010, the aggregate fair value of all
derivative instruments in a net liability position containing such credit risk features was $112 million and $412 million,
respectively. The aggregate fair value of assets posted as collateral for such instruments as of December 31, 2011 and
2010 was $103 million and $406 million, respectively. If the credit risk features of derivative contracts that were in a net
liability position at December 31, 2011 and 2010 were triggered, the additional fair value of assets needed to settle these
derivative liabilities would have been $9 million and $6 million, respectively.
16. Share-Based Compensation
The Company’s share-based compensation plans consist of the Amended and Restated Ameriprise Financial 2005
Incentive Compensation Plan (the ‘‘2005 ICP’’), the Ameriprise Financial 2008 Employment Incentive Equity Award Plan
(the ‘‘2008 Plan’’), the Franchise Advisor Deferral Plan, and the Ameriprise Advisor Group Deferred Compensation Plan
(‘‘Employee Advisor Deferral Plan’’).
The components of the Company’s share-based compensation expense, net of forfeitures, were as follows:
Years Ended December 31,
2011 2010 2009
(in millions)
Stock options $ 43 $ 41 $ 53
Restricted stock awards 50(1) 37 59
Restricted stock units 52 80 70
Liability awards 13 40 (4)
Total $ 158 $ 198 $ 178
(1) Includes $19 million of expense related to the Threadneedle equity incentive plan.
For the years ended December 31, 2011, 2010 and 2009, total income tax benefit recognized by the Company related to
share-based compensation expense was $53 million, $67 million and $63 million, respectively.
As of December 31, 2011, there was $132 million of total unrecognized compensation cost related to non-vested awards
under the Company’s share-based compensation plans, which is expected to be recognized over a weighted-average period
of 2.0 years.
Amended and Restated Ameriprise Financial 2005 Incentive Compensation Plan
The 2005 ICP, which was amended and approved by shareholders on April 28, 2010, provides for the grant of cash and
equity incentive awards to directors, employees and independent contractors, including stock options, restricted stock
awards, restricted stock units, stock appreciation rights, performance shares and similar awards designed to comply with
the applicable federal regulations and laws of jurisdiction. Under the 2005 ICP, a maximum of 37.9 million shares may be
issued. Of this total, no more than 6.0 million shares may be issued after April 28, 2010 for full value awards, which are
awards other than stock options and stock appreciation rights. Shares issued under the 2005 ICP may be authorized and
unissued shares or treasury shares.
Ameriprise Financial Deferred Compensation Plan
The Ameriprise Financial Deferred Compensation Plan (‘‘DCP’’) gives certain employees the choice to defer a portion of
their eligible compensation, which can be invested in investment options as provided by the DCP, including the Ameriprise
Financial Stock Fund. The DCP is an unfunded non-qualified deferred compensation plan under section 409A of the
Internal Revenue Code. The Company provides a match on certain deferrals. Participant deferrals vest immediately and the
Company match vests after three years. Distributions are made in shares of the Company’s common stock for the portion
of the deferral invested in the Ameriprise Financial Stock Fund and the related Company match, for which the Company
has recorded in equity. The DCP does allow for accelerated vesting of the share-based awards in cases of death, disability
and qualified retirement. Compensation expense related to the Company match is recognized on a straight-line basis over
the vesting period.
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