Ameriprise 2014 Annual Report Download - page 168

The following tables present the gross and net information about the Company’s liabilities subject to master netting
arrangements:
December 31, 2014
Gross Amounts Not Offset in the
Gross Gross Amounts Amounts of Liabilities Consolidated Balance Sheets
Amounts of Offset in the Presented in the
Recognized Consolidated Consolidated Financial Cash Securities Net
Liabilities Balance Sheets Balance Sheets Instruments(1) Collateral Collateral Amount
(in millions)
Derivatives:
OTC $ 3,723 $ — $ 3,723 $ (3,000) $ — $ (723) $ —
OTC cleared 232 — 232 (224) (8) — —
Total derivatives 3,955 — 3,955 (3,224) (8) (723) —
Securities loaned 261 — 261 (49) — (205) 7
Repurchase agreements 50 — 50 — — (50) —
Total $ 4,266 $ — $ 4,266 $ (3,273) $ (8) $ (978) $ 7
December 31, 2013
Gross Amounts Not Offset in the
Gross Gross Amounts Amounts of Liabilities Consolidated Balance Sheets
Amounts of Offset in the Presented in the
Recognized Consolidated Consolidated Financial Cash Securities Net
Liabilities Balance Sheets Balance Sheets Instruments(1) Collateral Collateral Amount
(in millions)
Derivatives:
OTC $ 4,786 $ — $ 4,786 $ (3,227) $ — $ (1,498) $ 61
OTC cleared 22 — 22 (20) (2) — —
Total derivatives 4,808 — 4,808 (3,247) (2) (1,498) 61
Securities loaned 136 — 136 (15) — (117) 4
Repurchase agreements 50 — 50 — — (50) —
Total $ 4,994 $ — $ 4,994 $ (3,262) $ (2) $ (1,665) $ 65
(1) Represents the amount of liabilities that could be offset by assets with the same counterparty under master netting or similar
arrangements that management elects not to offset on the Consolidated Balance Sheets.
In the tables above, the amounts of assets or liabilities presented in the Consolidated Balance Sheets are offset first by
financial instruments that have the right of offset under master netting or similar arrangements, then any remaining
amount is reduced by the amount of cash and securities collateral. The actual collateral may be greater than amounts
presented in the tables.
The Company’s freestanding derivative instruments are reflected in other assets and other liabilities. Repurchase
agreements are reflected in short-term borrowings. Securities borrowing and lending agreements are reflected in
receivables and other liabilities, respectively. See Note 16 for additional disclosures related to the Company’s derivative
instruments, Note 13 for additional disclosures related to the Company’s repurchase agreements and Note 4 for
information related to derivatives held by consolidated investment entities.
16. Derivatives and Hedging Activities
Derivative instruments enable the Company to manage its exposure to various market risks. The value of such instruments
is derived from an underlying variable or multiple variables, including equity, foreign exchange and interest rate indices or
prices. The Company primarily enters into derivative agreements for risk management purposes related to the Company’s
products and operations.
The Company’s freestanding derivatives are recorded at fair value and are reflected in other assets or other liabilities. The
Company’s freestanding derivative instruments are all subject to master netting arrangements. The Company’s policy on
the recognition of derivatives on the Consolidated Balance Sheets is to not offset fair value amounts recognized for
derivatives and collateral arrangements executed with the same counterparty under the same master netting arrangement.
See Note 15 for additional information regarding the estimated fair value of the Company’s freestanding derivatives after
considering the effect of master netting arrangements and collateral.
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