Ameriprise 2015 Annual Report Download - page 106

Contractual Commitments
The contractual obligations identified in the table below include both our on and off-balance sheet transactions that
represent material expected or contractually committed future obligations. The table excludes obligations of CIEs as they
are not direct obligations of the Company and have recourse only to the assets of the CIEs. Payments due by period as of
December 31, 2015 were as follows:
2021 and
Total 2016 2017-2018 2019-2020 Thereafter
(in millions)
Balance Sheet
Long-term debt(1) $ 2,655 $ 11 $ 25 $ 1,074 $ 1,545
Insurance and annuities(2) 42,103 2,602 4,631 4,133 30,737
Investment certificates(3) 4,835 4,560 275 — —
Deferred premium options(4) 1,920 331 494 462 633
Affordable housing partnerships(5) 117 67 43 2 5
Off-Balance Sheet
Operating lease obligations 277 56 99 59 63
Purchase obligations(6) 972 269 376 276 51
Interest on long-term debt(7) 1,600 135 266 202 997
Total $ 54,479 $ 8,031 $ 6,209 $ 6,208 $ 34,031
(1) See Note 13 to our Consolidated Financial Statements for more information about our long-term debt. Amounts include obligations
under capital leases.
(2) These scheduled payments are represented by reserves of approximately $28.8 billion at December 31, 2015 and are based on
interest credited, mortality, morbidity, lapse, surrender and premium payment assumptions. Actual payment obligations may differ if
experience varies from these assumptions. Separate account liabilities have been excluded as associated contractual obligations
would be met by separate account assets.
(3) The payments due by year are based on contractual term maturities. However, contractholders have the right to redeem the
investment certificates earlier and at their discretion subject to surrender charges, if any. Redemptions are most likely to occur in
periods of substantial increases in interest rates.
(4) The fair value of these commitments included on the Consolidated Balance Sheets was $1.8 billion as of December 31, 2015. See
Note 16 to our Consolidated Financial Statements for more information about our deferred premium options.
(5) Affordable housing partnership commitments are related to investments in low income housing tax credit partnerships. Call dates for
the obligations presented are either date or event specific. For date specific obligations, we are required to fund a specific amount on
a stated date provided there are no defaults under the agreement. For event specific obligations, we are required to fund a specific
amount of its capital commitment when properties in a fund become fully stabilized. For event specific obligations, the estimated call
date of these commitments is used in the table above.
(6) Purchase obligations include the minimum contractual amounts by period under contracts that were in effect at December 31, 2015.
Many of the purchase agreements giving rise to these purchase obligations include termination clauses that may require payment of
termination fees if the agreements are terminated by us without cause prior to their stated expiration; however, the table reflects the
amounts to be paid assuming the contracts are not terminated.
(7) Interest on long-term debt was estimated based on rates in effect as of December 31, 2015.
In addition to the contractual commitments outlined in the table above, we periodically fund the employees’ defined
benefit plans. We contributed $45 million and $42 million in 2015 and 2014, respectively, to our pension plans. In 2016,
we expect to contribute $23 million to our pension plans and $2 million to our defined benefit postretirement plans. See
Note 22 to our Consolidated Financial Statements for additional information.
Total loan funding commitments, which are not included in the table above due to uncertainty with respect to timing of
future cash flows, were $523 million at December 31, 2015.
For additional information relating to these contractual commitments, see Note 23 to our Consolidated Financial
Statements.
Off-Balance Sheet Arrangements
We provide asset management services to investment entities which are considered to be VIEs, such as CLOs, hedge
funds, property funds and private equity funds, which are sponsored by us. We consolidate certain CLOs and property
funds. We have determined that consolidation is not required for hedge funds and private equity funds which are
sponsored by us. Our maximum exposure to loss with respect to our investment in these non-consolidated entities is
limited to our carrying value. We have no obligation to provide further financial or other support to these investment
entities nor have we provided any support to these investment entities. See Note 4 to our Consolidated Financial
Statements for additional information on our arrangements with these investment entities.
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