Ameriprise 2012 Annual Report Download - page 133

For certain of the CDOs, the Company has determined that consolidation is required as it has power over the CDOs and
holds a variable interest in the CDOs for which the Company has the potential to receive benefits or the potential
obligation to absorb losses that are significant to the CDO. For other CDOs managed by the Company, the Company has
determined that consolidation is not required as the Company does not hold a variable interest in the CDOs.
The Company provides investment advice and related services to private, pooled investment vehicles organized as limited
partnerships, limited liability companies or foreign (non-U.S.) entities. Certain of these pooled investment vehicles are
considered VIEs while others are VREs. For investment management services, the Company generally earns management
fees based on the market value of assets under management, and in certain instances may also receive performance-
based fees. The Company provides seed money occasionally to certain of these funds. For certain of the pooled
investment vehicles, the Company has determined that consolidation is required as the Company stands to absorb a
majority of the entity’s expected losses or receive a majority of the entity’s expected residual returns. For other VIE pooled
investment vehicles, the Company has determined that consolidation is not required because the Company is not expected
to absorb the majority of the expected losses or receive the majority of the expected residual returns. For the pooled
investment vehicles which are VREs, the Company consolidates the structure when it has a controlling financial interest.
The Company also provides investment advisory, distribution and other services to the Columbia and Threadneedle mutual
fund families. The Company has determined that consolidation is not required for these mutual funds.
In addition, the Company may invest in structured investments including VIEs for which it is not the sponsor. These
structured investments typically invest in fixed income instruments and are managed by third parties and include asset
backed securities, commercial mortgage backed securities and residential mortgage backed securities. The Company
includes these investments in Available-for-Sale securities. The Company has determined that it is not the primary
beneficiary of these structures due to its relative size, position in the capital structure of these entities and the Company’s
lack of power over the structures. The Company’s maximum exposure to loss as a result of its investment in structured
investments that it does not consolidate is limited to its carrying value. The Company has no obligation to provide further
financial or other support to these structured investments nor has the Company provided any support to these structured
investments. See Note 5 for additional information about these structured investments.
Fair Value of Assets and Liabilities
The following tables present the balances of assets and liabilities held by consolidated investment entities measured at fair
value on a recurring basis:
December 31, 2012
Level 1 Level 2 Level 3 Total
(in millions)
Assets
Investments:
Corporate debt securities $ — $ 251 $ 3 $ 254
Common stocks 91 32 14 137
Other structured investments — 57 — 57
Syndicated loans — 3,720 202 3,922
Total investments 91 4,060 219 4,370
Receivables — 77 — 77
Other assets — 2 1,214 1,216
Total assets at fair value $ 91 $ 4,139 $ 1,433 $ 5,663
Liabilities
Debt $ — $ — $ 4,450 $ 4,450
Other liabilities — 166 — 166
Total liabilities at fair value $ — $ 166 $ 4,450 $ 4,616
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