Ameriprise 2013 Annual Report Download - page 167

prices. The Company primarily enters into derivative agreements for risk management purposes related to the Company’s
products and operations.
The Company’s freestanding derivatives are recorded at fair value and are reflected in other assets or other liabilities. The
Company’s freestanding derivative instruments are all subject to master netting arrangements. The Company’s policy on
the recognition of derivatives on the Consolidated Balance Sheets is to not offset fair value amounts recognized for
derivatives and collateral arrangements executed with the same counterparty under the same master netting arrangement.
See Note 15 for additional information regarding the estimated fair value of the Company’s freestanding derivatives after
considering the effect of master netting arrangements and collateral.
The Company uses derivatives as economic hedges and accounting hedges. The following table presents the balance sheet
location and the gross fair value of derivative instruments, including embedded derivatives:
Assets Liabilities
December 31, December 31,
Derivatives designated as Balance Sheet Balance Sheet
hedging instruments Location 2013 2012 Location 2013 2012
(in millions) (in millions)
Fair value hedges
Fixed rate debt Other assets $ 82 $ 167 Other liabilities $ — $ —
Total qualifying hedges 82 167 — —
Derivatives not designated
as hedging instruments
GMWB and GMAB
Interest rate contracts Other assets 1,484 2,191 Other liabilities 1,672 1,486
Equity contracts Other assets 1,741 1,215 Other liabilities 3,028 1,792
Credit contracts Other assets 3 — Other liabilities — —
Foreign currency contracts Other assets 2 6 Other liabilities — —
Embedded derivatives(1) N/A — — Policyholder account (575)(2) 833
balances, future
policy benefits and
claims
Total GMWB and GMAB 3,230 3,412 4,125 4,111
Other derivatives:
Interest rate
Macro hedge program Other assets 4 — Other liabilities 21 —
Equity
Macro hedge program Other assets — — Other liabilities 8 —
EIA embedded derivatives N/A — — Policyholder account 5 2
balances, future
policy benefits and
claims
IUL Other assets 27 6 Other liabilities 13 1
IUL embedded derivatives N/A — — Policyholder account 125 45
balances, future
policy benefits and
claims
Stock market certificates Other assets 73 37 Other liabilities 66 30
Stock market certificates
embedded derivatives N/A — — Customer deposits 7 8
Foreign exchange
Foreign currency Other assets 2 — Other liabilities — 1
Commodity
Seed money Other assets — 1 Other liabilities — —
Total other 106 44 245 87
Total non-designated hedges 3,336 3,456 4,370 4,198
Total derivatives $ 3,418 $ 3,623 $ 4,370 $ 4,198
N/A Not applicable.
(1) The fair values of GMWB and GMAB embedded derivatives fluctuate based on changes in equity, interest rate and credit markets.
(2) The fair value of the GMWB and GMAB embedded derivatives was a net asset at December 31, 2013 and the amount is reported as
a contra liability.
See Note 14 for additional information regarding the Company’s fair value measurement of derivative instruments.
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