Ameriprise 2014 Annual Report Download - page 208

Schedule I — Condensed Financial Information of Registrant
Notes to Condensed Financial Information of Registrant
(Parent Company Only)
1. Basis of Presentation
The accompanying Condensed Financial Statements include the accounts of Ameriprise Financial, Inc. (the ‘‘Registrant,’’
‘‘Ameriprise Financial’’ or ‘‘Parent Company’’) and, on an equity basis, its subsidiaries and affiliates. The appropriated
retained earnings of consolidated investment entities are not included on the Parent Company Only Condensed Financial
Statements. The financial statements have been prepared in accordance with U.S. generally accepted accounting
principles. The financial information of the Parent Company should be read in conjunction with the Consolidated Financial
Statements and Notes of Ameriprise Financial. Parent Company revenues and expenses, other than compensation and
benefits and debt and interest expense, are primarily related to intercompany transactions with subsidiaries and affiliates.
The change in the fair value of derivative instruments used as hedges is reflected in the Parent Company Only Condensed
Statements of Operations. For certain of these derivatives, the change in the hedged item is reflected in the subsidiaries’
Statements of Operations. The change in fair value of derivatives used to hedge asset-based distribution fees is included in
distribution fees, while the underlying distribution fee revenue is reflected in equity in earnings of subsidiaries. The change
in fair value of derivatives used to economically hedge exposure to equity price risk of Ameriprise Financial, Inc. common
stock granted as part of the Ameriprise Financial Franchise Advisor Deferred Compensation Plan is included in distribution
expenses, while the underlying distribution expenses are reflected in equity in earnings of subsidiaries. The change in fair
value of certain derivatives used to economically hedge risk related to GMWB provisions is included in benefits, claims,
losses and settlement expenses, while the underlying benefits, claims, losses and settlement expenses are reflected in
equity in earnings of subsidiaries.
2. Discontinued Operations
In the fourth quarter of 2011, Ameriprise Financial sold Securities America for $150 million. The results of Securities
America have been presented as loss from discontinued operations, net of tax for all periods presented.
3. Debt
All of the debt of Ameriprise Financial is borrowings of the Parent Company, except as indicated below.
• At both December 31, 2014 and 2013, the debt of Ameriprise Financial included $50 million of repurchase
agreements, which are accounted for as secured borrowings.
• As of December 31, 2014 and 2013, Ameriprise Financial had $150 million and $450 million, respectively, of
borrowings from the Federal Home Loan Bank of Des Moines (‘‘FHLB’’), which is collateralized with commercial
mortgage backed securities.
4. Guarantees, Commitments and Contingencies
The Parent Company is the guarantor for operating leases of IDS Property Casualty Insurance Company and certain other
subsidiaries.
All consolidated legal, regulatory and arbitration proceedings, including class actions of Ameriprise Financial, Inc. and its
consolidated subsidiaries are potential or current obligations of the Parent Company.
The Parent Company and Ameriprise Certificate Company (‘‘ACC’’) entered into a Capital Support Agreement on March 2,
2009, pursuant to which the Parent Company agrees to commit such capital to ACC as is necessary to satisfy applicable
minimum capital requirements. Effective April 30, 2014, this agreement was amended to revise the maximum
commitment to $50 million. The previous maximum commitment, set March 2, 2009, was $115 million. For the years
ended December 31, 2014, 2013 and 2012, ACC did not draw upon the Capital Support Agreement and had met all
applicable capital requirements.
Ameriprise Financial Services Inc. (‘‘AFSI’’) entered into a FINRA approved subrogation agreement with the Parent Company
on December 15, 2014 for regulatory net capital purposes. The agreement consists of a $200 million secured demand
note. The note is secured by cash and securities equal to the principal value of the note pledged by the Parent Company.
For the year ended December 31, 2014, AFSI had not made a demand of the principal amount.
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