Ameriprise 2014 Annual Report Download - page 141

Interest income from syndicated loans, bonds and structured investments is recorded based on contractual rates in net
investment income. Gains and losses related to changes in the fair value of investments and gains and losses on sales of
investments are also recorded in net investment income. Interest expense on debt is recorded in interest and debt
expense with gains and losses related to changes in the fair value of debt recorded in net investment income.
Total net gains (losses) recognized in net investment income related to changes in the fair value of financial assets and
liabilities for which the fair value option was elected were $(46) million, $28 million and $(85) million for the years ended
December 31, 2014, 2013 and 2012, respectively. The majority of the syndicated loans and debt have floating rates;
as such, changes in their fair values are primarily attributable to changes in credit spreads.
Debt of the consolidated investment entities and the stated interest rates were as follows:
Carrying Value Weighted Average Interest Rate
December 31, December 31,
2014 2013 2014 2013
(in millions)
Debt of consolidated CLOs due 2016-2026 $ 6,030 $ 4,804 1.3% 1.0%
Floating rate revolving credit borrowings due 2015-2019 837 932 2.7 3.2
Total $ 6,867 $ 5,736
The debt of the consolidated CLOs has both fixed and floating interest rates, which range from 0% to 9.2%. The interest
rates on the debt of CLOs are weighted average rates based on the outstanding principal and contractual interest rates.
The carrying value of the debt of the consolidated CLOs represents the fair value of the aggregate debt. The carrying value
of the floating rate revolving credit borrowings represents the outstanding principal amount of debt at the end of the
period, for certain property funds. Based on the cash flow needs of the property funds the outstanding balance of the
floating rate revolving credit borrowings is subject to fluctuations and the individual credit agreements may be extended
beyond the initial term. The fair value of this debt was $837 million and $932 million as of December 31, 2014 and
2013, respectively. The property funds have entered into interest rate swaps and collars to manage the interest rate
exposure on the floating rate revolving credit borrowings. The fair value of these derivative instruments is recorded gross
and was a liability of $10 million and $5 million at December 31, 2014 and 2013, respectively. The overall interest rate
reflecting the impact of the derivative contracts was 3.1% and 4.2% as of December 31, 2014 and 2013, respectively.
At December 31, 2014, future maturities of debt were as follows:
(in millions)
2015 $ 21
2016 181
2017 363
2018 398
2019 1,404
Thereafter 4,718
Total future maturities $ 7,085
5. Investments
The following is a summary of Ameriprise Financial investments:
December 31,
2014 2013
(in millions)
Available-for-Sale securities, at fair value $ 30,027 $ 30,310
Mortgage loans, net 3,440 3,510
Policy and certificate loans 806 774
Other investments 1,309 1,141
Total $ 35,582 $ 35,735
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