Ameriprise 2014 Annual Report Download - page 173

Certain of the Company’s derivative contracts contain provisions that adjust the level of collateral the Company is required
to post based on the Company’s debt rating (or based on the financial strength of the Company’s life insurance
subsidiaries for contracts in which those subsidiaries are the counterparty). Additionally, certain of the Company’s derivative
contracts contain provisions that allow the counterparty to terminate the contract if the Company’s debt does not maintain
a specific credit rating (generally an investment grade rating) or the Company’s life insurance subsidiary does not maintain
a specific financial strength rating. If these termination provisions were to be triggered, the Company’s counterparty could
require immediate settlement of any net liability position. At December 31, 2014 and 2013, the aggregate fair value of
derivative contracts in a net liability position containing such credit contingent provisions was $416 million and
$1.0 billion, respectively. The aggregate fair value of assets posted as collateral for such instruments as of December 31,
2014 and 2013 was $416 million and $959 million, respectively. If the credit contingent provisions of derivative contracts
in a net liability position at December 31, 2014 and 2013 were triggered, the aggregate fair value of additional assets
that would be required to be posted as collateral or needed to settle the instruments immediately would have been nil and
$56 million, respectively.
17. Share-Based Compensation
The Company’s share-based compensation plans consist of the Amended and Restated Ameriprise Financial 2005
Incentive Compensation Plan (the ‘‘2005 ICP’’), the Ameriprise Financial 2008 Employment Incentive Equity Award Plan
(the ‘‘2008 Plan’’), the Ameriprise Financial Franchise Advisor Deferred Compensation Plan (‘‘Franchise Advisor Deferral
Plan’’), the Ameriprise Advisor Group Deferred Compensation Plan (‘‘Advisor Group Deferral Plan’’) and the Threadneedle
Equity Incentive Plan (‘‘EIP’’).
The components of the Company’s share-based compensation expense, net of forfeitures, were as follows:
December 31,
2014 2013 2012
(in millions)
Stock option $37 $36 $40
Restricted stock(1) 26 46 40
Restricted stock units 67 61 54
Liability awards 30 31 14
Total $ 160 $ 174 $ 148
(1) Includes $3 million, $10 million and $11 million of expense related to EIP for the years ended December 31, 2014, 2013 and
2012, respectively.
For the years ended December 31, 2014, 2013 and 2012, total income tax benefit recognized by the Company related to
share-based compensation expense was $55 million, $60 million and $51 million, respectively.
As of December 31, 2014, there was $94 million of total unrecognized compensation cost related to non-vested awards
under the Company’s share-based compensation plans, which is expected to be recognized over a weighted-average period
of 2.4 years.
Amended and Restated Ameriprise Financial 2005 Incentive Compensation Plan
The 2005 ICP, which was amended and approved by shareholders on April 30, 2014, provides for the grant of cash and
equity incentive awards to directors, employees and independent contractors, including stock options, restricted stock
awards, restricted stock units, stock appreciation rights, performance shares and similar awards designed to comply with
the applicable federal regulations and laws of jurisdiction. Under the 2005 ICP, a maximum of 54.4 million shares may be
issued. Of this total, no more than 4.5 million shares may be issued after April 30, 2014 for full value awards, which are
awards other than stock options and stock appreciation rights. Shares issued under the 2005 ICP may be authorized and
unissued shares or treasury shares.
Ameriprise Financial 2008 Employment Incentive Equity Award Plan
The 2008 Plan is designed to align employees’ interests with those of the shareholders of the Company and attract and
retain new employees. The 2008 Plan provides for the grant of equity incentive awards to new employees, primarily those,
who became employees in connection with a merger or acquisition, including stock options, restricted stock awards,
restricted stock units, and other equity-based awards designed to comply with the applicable federal and foreign
regulations and laws of jurisdiction. Under the 2008 Plan, a maximum of 6.0 million shares may be issued.
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