Ameriprise 2015 Annual Report Download - page 166

The following tables present the gross and net information about the Company’s liabilities subject to master netting
arrangements:
December 31, 2015
Gross Amounts Not Offset in the
Gross Gross Amounts Amounts of Liabilities Consolidated Balance Sheets
Amounts of Offset in the Presented in the
Recognized Consolidated Consolidated Financial Cash Securities Net
Liabilities Balance Sheets Balance Sheets Instruments(1) Collateral Collateral Amount
(in millions)
Derivatives:
OTC $ 2,725 $ — $ 2,725 $ (2,331) $ — $ (393) $ 1
OTC cleared 345 — 345 (314) (25) — 6
Exchange-traded 6 — 6 (3) (1) — 2
Total derivatives 3,076 — 3,076 (2,648) (26) (393) 9
Securities loaned 203 — 203 (30) — (164) 9
Repurchase agreements 50 — 50 — — (50) —
Total $ 3,329 $ — $ 3,329 $ (2,678) $ (26) $ (607) $ 18
December 31, 2014
Gross Amounts Not Offset in the
Gross Gross Amounts Amounts of Liabilities Consolidated Balance Sheets
Amounts of Offset in the Presented in the
Recognized Consolidated Consolidated Financial Cash Securities Net
Liabilities Balance Sheets Balance Sheets Instruments(1) Collateral Collateral Amount
(in millions)
Derivatives:
OTC $ 3,723 $ — $ 3,723 $ (3,000) $ — $ (723) $ —
OTC cleared 232 — 232 (224) (8) — —
Total derivatives 3,955 — 3,955 (3,224) (8) (723) —
Securities loaned 261 — 261 (49) — (205) 7
Repurchase agreements 50 — 50 — — (50) —
Total $ 4,266 $ — $ 4,266 $ (3,273) $ (8) $ (978) $ 7
(1) Represents the amount of liabilities that could be offset by assets with the same counterparty under master netting or similar
arrangements that management elects not to offset on the Consolidated Balance Sheets.
In the tables above, the amounts of assets or liabilities presented in the Consolidated Balance Sheets are offset first by
financial instruments that have the right of offset under master netting or similar arrangements, then any remaining
amount is reduced by the amount of cash and securities collateral. The actual collateral may be greater than amounts
presented in the tables.
When the fair value of collateral accepted by the Company is less than the amount due to the Company, there is a risk of
loss if the counterparty fails to perform or provide additional collateral. To mitigate this risk, the Company monitors
collateral values regularly and requires additional collateral when necessary. When the value of collateral pledged by the
Company declines, the Company may be required to post additional collateral.
The Company’s freestanding derivative instruments are reflected in other assets and other liabilities. Repurchase
agreements are reflected in short-term borrowings. Securities borrowing and lending agreements are reflected in
receivables and other liabilities, respectively. See Note 16 for additional disclosures related to the Company’s derivative
instruments, Note 13 for additional disclosures related to the Company’s repurchase agreements and Note 4 for
information related to derivatives held by consolidated investment entities.
16. Derivatives and Hedging Activities
Derivative instruments enable the Company to manage its exposure to various market risks. The value of such instruments
is derived from an underlying variable or multiple variables, including equity, foreign exchange and interest rate indices or
prices. The Company primarily enters into derivative agreements for risk management purposes related to the Company’s
products and operations.
The Company’s freestanding derivative instruments are all subject to master netting arrangements. The Company’s policy
on the recognition of derivatives on the Consolidated Balance Sheets is to not offset fair value amounts recognized for
derivatives and collateral arrangements executed with the same counterparty under the same master netting arrangement.
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