Ameriprise 2014 Annual Report Download - page 167

The fair value of future funding commitments to affordable housing partnerships is determined by discounting cash flows.
The fair value of these commitments includes an adjustment for the Company’s nonperformance risk and is classified as
Level 3 due to the use of the significant unobservable input.
Securities loaned require the borrower to deposit cash or collateral with the Company. As the market value of the securities
loaned is monitored daily, the carrying value is a reasonable estimate of fair value. Securities loaned are classified as
Level 1 as the fair value of the underlying securities is based on unadjusted prices for identical assets.
15. Offsetting Assets and Liabilities
Certain financial instruments and derivative instruments are eligible for offset in the Consolidated Balance Sheets. The
Company’s derivative instruments, repurchase agreements and securities borrowing and lending agreements are subject to
master netting arrangements and collateral arrangements and qualify for offset. A master netting arrangement with a
counterparty creates a right of offset for amounts due to and from that same counterparty that is enforceable in the event
of a default or bankruptcy. Securities borrowed and loaned result from transactions between the Company’s broker dealer
subsidiary and other financial institutions and are recorded at the amount of cash collateral advanced or received. The
Company’s policy is to recognize amounts subject to master netting arrangements on a gross basis in the Consolidated
Balance Sheets.
The following tables present the gross and net information about the Company’s assets subject to master netting
arrangements:
December 31, 2014
Gross Amounts Not Offset in the
Gross Gross Amounts Amounts of Assets Consolidated Balance Sheets
Amounts of Offset in the Presented in the
Recognized Consolidated Consolidated Financial Cash Securities Net
Assets Balance Sheets Balance Sheets Instruments(1) Collateral Collateral Amount
(in millions)
Derivatives:
OTC $ 3,735 $ — $ 3,735 $ (3,000) $ (281) $ (418) $ 36
OTC cleared 305 — 305 (224) (81) — —
Exchange-traded 61 — 61 — — — 61
Total derivatives 4,101 — 4,101 (3,224) (362) (418) 97
Securities borrowed 215 — 215 (49) — (163) 3
Total $ 4,316 $ — $ 4,316 $ (3,273) $ (362) $ (581) $ 100
December 31, 2013
Gross Amounts Not Offset in the
Gross Gross Amounts Amounts of Assets Consolidated Balance Sheets
Amounts of Offset in the Presented in the
Recognized Consolidated Consolidated Financial Cash Securities Net
Assets Balance Sheets Balance Sheets Instruments(1) Collateral Collateral Amount
(in millions)
Derivatives:
OTC $ 3,337 $ — $ 3,337 $ (3,227) $ (75) $ (15) $ 20
OTC cleared 21 — 21 (20) (1) — —
Exchange-traded 60 — 60 — — — 60
Total derivatives 3,418 — 3,418 (3,247) (76) (15) 80
Securities borrowed 107 — 107 (15) — (90) 2
Total $ 3,525 $ — $ 3,525 $ (3,262) $ (76) $ (105) $ 82
(1) Represents the amount of assets that could be offset by liabilities with the same counterparty under master netting or similar
arrangements that management elects not to offset on the Consolidated Balance Sheets.
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