Ameriprise 2014 Annual Report Download - page 155

accumulated investment certificate reserves prior to maturity dates. Cash surrender values on certificates allowing for no
surrender charge are equal to certificate reserves. The Company generally invests the proceeds from investment certificates
in fixed and variable rate securities.
Certain investment certificate products have returns tied to the performance of equity markets. The Company guarantees
the principal for purchasers who hold the certificate for the full 52-week term and purchasers may participate in increases
in the stock market based on the S&P 500 Index, up to a maximum return. Purchasers can choose 100% participation in
the market index up to the cap or 25% participation plus fixed interest with a combined total up to the cap. Current first
term certificates have maximum returns of 1.0% to 2.0%. The equity component of these certificates is considered an
embedded derivative and is accounted for separately. See Note 16 for additional information about derivative instruments
used to economically hedge the equity price risk related to the Company’s stock market certificates.
Brokerage Deposits
Brokerage deposits are amounts payable to brokerage customers related to free credit balances, funds deposited by
customers and funds accruing to customers as a result of trades or contracts. The Company pays interest on certain
customer credit balances and the interest is included in banking and deposit interest expense.
13. Debt
The balances and the stated interest rates of outstanding debt of Ameriprise Financial were as follows:
Outstanding Balance Stated Interest Rate
December 31, December 31,
2014 2013 2014 2013
(in millions)
Long-term debt:
Senior notes due 2015 $ 358(1) $ 366(1) 5.7% 5.7%
Senior notes due 2019 326(1) 327(1) 7.3 7.3
Senior notes due 2020 786(1) 783(1) 5.3 5.3
Senior notes due 2023 750 750 4.0 4.0
Senior notes due 2024 548 — 3.7 —
Senior notes due 2039 — 200 — 7.8
Junior subordinated notes due 2066 294 294 7.5 7.5
Total long-term debt 3,062 2,720
Short-term borrowings:
Federal Home Loan Bank (‘‘FHLB’’) advances 150 450 0.3 0.3
Repurchase agreements 50 50 0.4 0.3
Total short-term borrowings 200 500
Total $ 3,262 $ 3,220
(1) Amounts include adjustments for fair value hedges on the Company’s long-term debt. See Note 16 for information on the Company’s
fair value hedges.
Long-Term Debt
The amounts included in the table above are net of any unamortized discount and premium associated with issuing these
notes.
On September 18, 2014, the Company issued $550 million of unsecured senior notes due October 15, 2024, and
incurred debt issuance costs of $5 million. Interest payments are due semi-annually in arrears on April 15 and
October 15, commencing on April 15, 2015.
In May 2014, the Company issued a notice of redemption for $200 million of its senior notes due 2039. The notes were
redeemed on June 16, 2014 pursuant to the terms of the indenture at the principal value plus accrued interest to the
redemption date. The Company recognized an expense for the remaining unamortized debt issuance costs on the notes in
the second quarter of 2014.
On November 13, 2013, the Company issued $150 million of unsecured senior notes due October 15, 2023, and
incurred debt issuance costs of $1 million. These notes form part of the series of senior notes due 2023 along with other
notes of this series issued on September 6, 2013. Interest payments are due semi-annually in arrears on April 15 and
October 15, commencing April 15, 2014.
In October 2013, the Company issued a notice of redemption for $350 million of its senior notes due November 2015.
The notes were redeemed pursuant to the terms of the indenture at the principal value plus an aggregate premium and
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