Ameriprise 2015 Annual Report Download - page 148
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Definite-lived intangible assets acquired during the year ended December 31, 2015 were $9 million with a weighted
average amortization period of 5 years. The aggregate amortization expense for definite-lived intangible assets during the
years ended December 31, 2015, 2014 and 2013 was $33 million, $40 million and $45 million, respectively. In 2015,
2014 and 2013, the Company did not record any impairment charges on definite-lived intangible assets.
Estimated intangible amortization expense as of December 31, 2015 for the next five years is as follows:
(in millions)
2016 $ 26
2017 22
2018 21
2019 18
2020 13
9. Deferred Acquisition Costs and Deferred Sales Inducement Costs
In the third quarter of the year, management conducts its annual review of insurance and annuity valuation assumptions
relative to current experience and management expectations. To the extent that expectations change as a result of this
review, management updates valuation assumptions. The impact for the year ended December 31, 2015 primarily
reflected the difference between the Company’s previously assumed interest rates versus the continued low interest rate
environment partially offset by improved persistency. The impact for the year ended December 31, 2014 primarily reflected
lower than previously assumed interest rates partially offset by improved persistency and mortality experience and a benefit
from updating the Company’s variable annuity living benefit withdrawal utilization assumption. The impact for the year
ended December 31, 2013 primarily reflected higher than previously assumed interest rates and changes in assumed
policyholder behavior.
The balances of and changes in DAC were as follows:
2015 2014 2013
(in millions)
Balance at January 1 $ 2,608 $ 2,663 $ 2,399
Capitalization of acquisition costs 361 336 339
Amortization, excluding the impact of valuation assumptions review (348) (360) (285)
Amortization, impact of valuation assumptions review (6) (7) 78
Impact of change in net unrealized securities losses (gains) 110 (24) 132
Balance at December 31 $ 2,725 $ 2,608 $ 2,663
The balances of and changes in DSIC, which is included in other assets, were as follows:
2015 2014 2013
(in millions)
Balance at January 1 $ 362 $ 409 $ 404
Capitalization of sales inducement costs 4 5 5
Amortization, excluding the impact of valuation assumptions review (52) (51) (48)
Amortization, impact of valuation assumptions review 1 (2) 25
Impact of change in net unrealized securities losses 20 1 23
Balance at December 31 $ 335 $ 362 $ 409
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