Ameriprise 2011 Annual Report Download - page 194

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. 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 reflected on the subsidiaries’
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 reflected in equity in earnings of subsidiaries.
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 Compensation Plan is
included in distribution expenses, while the underlying distribution expenses are reflected in equity in earnings of
subsidiaries.
2. Discontinued Operations
In the fourth quarter of 2011, Ameriprise Financial sold Securities America for $150 million. The results of Securities
America have been presented as equity in income (loss) of discontinued operations for all periods presented and the
related investment in subsidiary has been classified as held for sale as of December 31, 2010.
3. Debt
All of the debt of Ameriprise Financial is borrowings of the Parent Company, except as indicated below.
• At December 31, 2010, 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. The
certificates were extinguished in 2011, funded through the call of the portfolio of municipal bonds.
• At December 31, 2011 and 2010, the debt of Ameriprise Financial included $504 million and $397 million of
repurchase agreements, respectively, which are accounted for as secured borrowings.
4. Guarantees, Commitments and Contingencies
The Parent Company is the guarantor for operating leases of IDS Property Casualty Insurance Company and certain other
subsidiaries.
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 Ameriprise Certificate Company (‘‘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, 2011,
2010 and 2009, ACC did not draw upon the Capital Support Agreement and had met all applicable capital requirements.
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