Ameriprise 2015 Annual Report Download - page 154

13. Debt
The balances and the stated interest rates of outstanding debt of Ameriprise Financial were as follows:
Outstanding Balance Stated Interest Rate
December 31, December 31,
2015 2014 2015 2014
(in millions)
Long-term debt:
Senior notes due 2015 $ — $ 358(1) —% 5.7%
Senior notes due 2019 322(1) 326(1) 7.3 7.3
Senior notes due 2020 782(1) 786(1) 5.3 5.3
Senior notes due 2023 750 750 4.0 4.0
Senior notes due 2024 548 548 3.7 3.7
Junior subordinated notes due 2066 245 294 7.5 7.5
Capitalized lease obligations 60(2) —
Total long-term debt 2,707 3,062
Short-term borrowings:
Federal Home Loan Bank (‘‘FHLB’’) advances 150 150 0.5 0.3
Repurchase agreements 50 50 0.5 0.4
Total short-term borrowings 200 200
Total $ 2,907 $ 3,262
(1) Amounts include adjustments for fair value hedges on the Company’s long-term debt. See Note 16 for information on the Company’s
fair value hedges.
(2) In the fourth quarter of 2015, the Company recorded a capital lease that had previously been incorrectly recorded as an operating
lease for the Ameriprise Financial Center. See Note 1 for additional information.
Long-Term Debt
The amounts included in the table above are net of any unamortized discount and premium associated with issuing these
notes.
In 2015, the Company extinguished $49 million of its junior subordinated notes due 2066 in open market transactions
and recognized a gain of less than $1 million. In November 2015, the Company used cash on hand to fund the repayment
of $350 million of its senior notes.
On September 18, 2014, the Company issued $550 million of unsecured senior notes due October 15, 2024, and
incurred debt issuance costs of $5 million. Interest payments are due semi-annually in arrears on April 15 and
October 15, commencing on April 15, 2015.
In May 2014, the Company issued a notice of redemption for $200 million of its senior notes due 2039. The notes were
redeemed on June 16, 2014 pursuant to the terms of the indenture at the principal value plus accrued interest to the
redemption date. The Company recognized an expense for the remaining unamortized debt issuance costs on the notes in
the second quarter of 2014.
On November 13, 2013, the Company issued $150 million of unsecured senior notes due October 15, 2023, and
incurred debt issuance costs of $1 million. These notes form part of the series of senior notes due 2023 along with other
notes of this series issued on September 6, 2013. Interest payments are due semi-annually in arrears on April 15 and
October 15, commencing April 15, 2014.
In October 2013, the Company issued a notice of redemption for $350 million of its senior notes due November 2015.
The notes were redeemed pursuant to the terms of the indenture at the principal value plus an aggregate premium and
accrued interest to the redemption date. The redemption date of the notes was November 4, 2013. The Company
recorded a net pretax loss of $19 million on the redemption of the notes in the fourth quarter of 2013.
On September 6, 2013, the Company issued $600 million of unsecured senior notes due October 15, 2023, and incurred
debt issuance costs of $5 million. Interest payments are due semi-annually in arrears on April 15 and October 15,
commencing April 15, 2014.
The Company’s senior notes due 2019, 2020, 2023 and 2024 may be redeemed, in whole or in part, at any time prior to
maturity at a price equal to the greater of the principal amount and the present value of remaining scheduled payments,
discounted to the redemption date, plus accrued and unpaid interest.
The Company’s junior subordinated notes due 2066 may be redeemed, in whole or in part, on or after June 1, 2016 at a
price equal to the principal amount plus accrued and compounded interest, provided that if the notes are not redeemed in
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