Ameriprise 2011 Annual Report Download - page 53

Item 2. Properties.
We operate our business from two principal locations, both of which are located in Minneapolis, Minnesota: the Ameriprise
Financial Center, an 848,000 square foot building that we lease, and our 885,000 square foot Client Service Center,
which we own. Each of these principal locations meets high environmental standards: The Client Service Center has
achieved the U.S. Green Building Council (‘‘USGBC’’) LEED Gold Certification, and the Ameriprise Financial Center has
achieved USGBC LEED Silver Certification. Our lease term for the Ameriprise Financial Center began in November 2000
and is for 20 years, with several options to extend the term. Our aggregate annual rent for the Ameriprise Financial Center
is $15 million. Ameriprise Financial, Inc. owns the 171,000 square foot Oak Ridge Conference Center, a training facility
and conference center in Chaska, Minnesota, which can also serve as a disaster recovery site, if necessary. We also lease
space in an operations center located in Minneapolis, and we occupy space in a second operations center located in
Phoenix, Arizona.
Our property and casualty subsidiary, Ameriprise Auto and Home Insurance, leases approximately 142,000 square feet at
its corporate headquarters in DePere, Wisconsin, a suburb of Green Bay. The lease has a ten-year term expiring in 2014
with an option to renew the lease for up to six renewal terms of five years each. They also lease a 34,000 square foot
office space in Phoenix, Arizona with a lease term expiring in 2014.
Threadneedle leases one office facility in London, England and one in Swindon, England. It is the sole tenant of its London
office, a 60,410 square foot building, under a lease expiring in June 2018. Threadneedle also leases property in Frankfurt,
Germany, Hong Kong, Luxembourg, Singapore and Australia and rents offices in a number of other European cities, and
Dubai to support its global operations.
Columbia Management leases offices in Boston containing approximately 156,000 square feet under a lease that expires
in 2021 and facilities in New York City containing approximately 90,000 square feet under a lease expiring in 2019. In
addition, Seligman occupies a space of 11,425 square feet in Menlo Park, California under a lease that expires in 2023,
and Columbia Wanger leases 48,000 square feet in Chicago, Illinois under a lease that expires in 2019.
AFSI leases offices containing approximately 84,000 square feet in Detroit, Michigan, under a lease expiring in 2016.
Generally, we lease the premises we occupy in other locations, including the executive and bank offices that we maintain
in New York City and branch offices for our employee advisors throughout the United States. We believe that the facilities
owned or occupied by our company suit our needs and are well maintained.
Item 3. Legal Proceedings.
The Company and its subsidiaries are involved in the normal course of business in legal, regulatory and arbitration
proceedings, including class actions, concerning matters arising in connection with the conduct of its activities as a
diversified financial services firm. These include proceedings specific to the Company as well as proceedings generally
applicable to business practices in the industries in which it operates. The Company can also be subject to litigation arising
out of its general business activities, such as its investments, contracts, leases and employment relationships. Uncertain
economic conditions, heightened and sustained volatility in the financial markets and significant financial reform legislation
may increase the likelihood that clients and other persons or regulators may present or threaten legal claims or that
regulators increase the scope or frequency of examinations of the Company or the financial services industry generally.
As with other financial services firms, the level of regulatory activity and inquiry concerning the Company’s businesses
remains elevated. From time to time, the Company receives requests for information from, and/or has been subject to
examination or claims by, the SEC, FINRA, the Federal Reserve Bank, the OCC, the FSA, state insurance and securities
regulators, state attorneys general and various other domestic or foreign governmental and quasi-governmental authorities
on behalf of themselves or clients concerning the Company’s business activities and practices, and the practices of the
Company’s financial advisors. During recent periods, the Company has received information requests, exams or inquiries
regarding certain matters, including: sales of, or disclosures pertaining to, mutual funds, annuities, equity and fixed income
securities, low priced securities, insurance products, brokerage services, financial advice offerings; trading practices within
the Company’s asset management business; supervision of the Company’s financial advisors; company procedures and
information security. The Company is also responding to regulatory audits, market conduct examinations and other inquiries
(including inquiries from the states of Minnesota and New York) relating to an industry-wide investigation of unclaimed
property and escheatment practices and procedures. The number of reviews and investigations has increased in recent
years with regard to many firms in the financial services industry, including Ameriprise Financial. The Company has
cooperated and will continue to cooperate with the applicable regulators regarding their inquiries.
These legal and regulatory proceedings and disputes are subject to uncertainties and, as such, the Company is unable to
predict the ultimate resolution or range of loss that may result. An adverse outcome in one or more of these proceedings
could result in adverse judgments, settlements, fines, penalties or other relief, in addition to further claims, examinations
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