Ameriprise 2012 Annual Report Download - page 180

Defined Contribution Plan
In addition to the plans described previously, the Company’s employees are generally eligible to participate in the
Ameriprise Financial 401(k) Plan (the ‘‘401(k) Plan’’). The 401(k) Plan allows eligible employees to make contributions
through payroll deductions up to IRS limits and invest their contributions in one or more of the 401(k) Plan investment
options, which include the Ameriprise Financial Stock Fund. The Company provides a dollar for dollar match up to the first
5% of eligible compensation an employee contributes on a pretax and/or Roth 401(k) basis for each annual period.
Under the 401(k) Plan, employees become eligible for contributions under the plan during the pay period they reach
60 days of service. Match contributions are fully vested after five years of service, vesting ratably over the first five years of
service. The Company’s defined contribution plan expense was $36 million, $33 million and $32 million in 2012, 2011
and 2010, respectively.
Threadneedle Profit Sharing Plan
On an annual basis, Threadneedle employees are eligible for a profit sharing arrangement. Through the end of 2012, the
employee profit sharing plan provided for profit sharing of 30% based on an internally defined recurring pretax operating
income measure for Threadneedle, which primarily included pretax income related to investment management services and
investment portfolio income excluding gains and losses on asset disposals, certain reorganization expenses, EPP and EIP
expenses and other non-recurring expenses. Beginning in 2013, the profit sharing percentage will be variable and linked to
certain performance criteria. Compensation expense related to the employee profit sharing plan was $67 million,
$54 million and $52 million in 2012, 2011 and 2010, respectively.
22. Commitments, Guarantees and Contingencies
Commitments
The Company is committed to pay aggregate minimum rentals under noncancelable operating leases for office facilities
and equipment in future years as follows:
(in millions)
2013 $83
2014 77
2015 69
2016 57
2017 55
Thereafter 131
Total $ 472
For the years ended December 31, 2012, 2011 and 2010, operating lease expense was $84 million, $91 million and
$91 million, respectively.
The following table presents the Company’s funding commitments:
December 31,
2012 2011
(in millions)
Commercial mortgage loan commitments $ 76 $ 19
Consumer mortgage loan commitments 627 730
Consumer lines of credit 5 1,685
Affordable housing partnerships 144 267
Total funding commitments $ 852 $ 2,701
Guarantees
The Company’s life and annuity products all have minimum interest rate guarantees in their fixed accounts. As of
December 31, 2012, these guarantees range up to 5%.
The Company is required by law to be a member of the guaranty fund association in every state where it is licensed to do
business. In the event of insolvency of one or more unaffiliated insurance companies, the Company could be adversely
affected by the requirement to pay assessments to the guaranty fund associations. Uncertainty and volatility in the U.S.
economy and financial markets in recent years have weakened the financial condition of numerous insurers, including
insurers currently in receiverships, increasing the risk of triggering guaranty fund assessments.
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