Ameriprise 2013 Annual Report Download - page 170
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recorded in net investment income. The following tables present the impact of the effective portion of the Company’s cash
flow hedges on the Consolidated Statements of Operations and the Consolidated Statements of Equity:
Amount of Gain (Loss)
Recognized in Other
Comprehensive Income (Loss)
on Derivatives
December 31,
Derivatives designated as hedging
instruments 2013 2012 2011
(in millions)
Interest on debt $ — $ 14 $ (11)
Asset-based distribution fees —— 1
Total $ — $ 14 $ (10)
Amount of Gain (Loss)
Reclassified from
Accumulated Other
Comprehensive
Income into Income
Location of Gain (Loss) Reclassified December 31,
from Accumulated Other
Comprehensive Income into Income 2013 2012 2011
(in millions)
Other revenues $— $ 3 $27
Interest and debt expense 44 4
Distribution fees —— 9
Net investment income (5) (6) (6)
Total $ (1) $ 1 $ 34
The following is a summary of unrealized derivatives gains (losses) included in accumulated other comprehensive income
related to cash flow hedges:
2013 2012 2011
(in millions)
Net unrealized derivatives gains (losses) at January 1 $ (2) $ (11) $ 18
Holding gains (losses) — 14 (10)
Reclassification of realized (gains) losses 1 (1) (34)
Income tax benefit (provision) — (4) 15
Net unrealized derivatives losses at December 31 $ (1) $ (2) $ (11)
Currently, the longest period of time over which the Company is hedging exposure to the variability in future cash flows is
22 years and relates to forecasted debt interest payments.
Fair Value Hedges
In 2010, the Company entered into and designated as fair value hedges three interest rate swaps to convert senior notes
due 2015, 2019 and 2020 from fixed rate debt to floating rate debt. The swaps have identical terms as the underlying
debt being hedged so no ineffectiveness is expected to be realized. The Company recognizes gains and losses on the
derivatives and the related hedged items within interest and debt expense. The following table presents the amounts
recognized in income related to fair value hedges:
Amount of Gain Recognized in
Income on Derivatives
December 31,
Derivatives designated as hedging
instruments Location of Gain Recorded into Income 2013 2012 2011
(in millions)
Fixed rate debt Interest and debt expense $ 57 $ 37 $ 41
Included in the table above is an $18 million gain from the partial settlement of the fair value hedge on the Company’s
senior notes due November 2015, as a result of redeeming $350 million of the notes in the fourth quarter of 2013.
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