Ameriprise 2014 Annual Report Download - page 150

Definite-lived intangible assets consisted of the following:
December 31, 2014 December 31, 2013
Gross Net Gross Net
Carrying Accumulated Carrying Carrying Accumulated Carrying
Amount Amortization Amount Amount Amortization Amount
(in millions)
Customer relationships $ 150 $ (97) $ 53 $ 152 $ (87) $ 65
Contracts 233 (180) 53 240 (167) 73
Other 151 (98) 53 155 (94) 61
Total $ 534 $ (375) $ 159 $ 547 $ (348) $ 199
Definite-lived intangible assets acquired during the year ended December 31, 2014 were $3 million with a weighted
average amortization period of 5 years. The increase (decrease) to the net carrying amount of definite-lived intangible
assets due to changes in foreign currency exchange rates was $(3) million, $1 million and $4 million for the years ended
December 31, 2014, 2013 and 2012, respectively. The aggregate amortization expense for definite-lived intangible assets
during the years ended December 31, 2014, 2013 and 2012 was $40 million, $45 million and $47 million, respectively.
In 2014, 2013 and 2012, the Company did not record any impairment charges on definite-lived intangible assets.
Estimated intangible amortization expense as of December 31, 2014 for the next five years is as follows:
(in millions)
2015 $ 32
2016 26
2017 22
2018 20
2019 17
9. Deferred Acquisition Costs and Deferred Sales Inducement Costs
In the third quarter of the year, management conducts its annual review of insurance and annuity valuation assumptions
relative to current experience and management expectations. To the extent that expectations change as a result of this
review, management updates valuation assumptions. The impact for the year ended December 31, 2014 primarily
reflected the difference between the Company’s previously assumed interest rates versus the continued low interest rate
environment, partially offset by favorable persistency and mortality experience and a benefit from updating the Company’s
variable annuity living benefit withdrawal utilization assumption. The impact for the year ended December 31, 2013
primarily reflected the impact of assumed interest rates and changes in assumed policyholder behavior. The impact for the
year ended December 31, 2012 primarily reflected the low interest rate environment and the assumption of continued low
interest rates over the near-term.
The balances of and changes in DAC were as follows:
2014 2013 2012
(in millions)
Balance at January 1 $ 2,663 $ 2,399 $ 2,440
Capitalization of acquisition costs 336 339 313
Amortization, excluding the impact of valuation assumptions review (360) (285) (275)
Amortization impact of valuation assumptions review (7) 78 (11)
Impact of change in net unrealized securities losses (gains) (24) 132 (68)
Balance at December 31 $ 2,608 $ 2,663 $ 2,399
The balances of and changes in DSIC, which is included in other assets, were as follows:
2014 2013 2012
(in millions)
Balance at January 1 $ 409 $ 404 $ 464
Capitalization of sales inducement costs 5 5 7
Amortization, excluding the impact of valuation assumptions review (51) (48) (45)
Amortization impact of valuation assumptions review (2) 25 (13)
Impact of change in net unrealized securities losses (gains) 1 23 (9)
Balance at December 31 $ 362 $ 409 $ 404
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