Ameriprise 2015 Annual Report Download - page 168

Derivatives Not Designated as Hedges
The following table presents a summary of the impact of derivatives not designated as hedging instruments on the
Consolidated Statements of Operations:
Benefits,
Banking and Interest Claims,
Net Deposit Credited to Losses and General and
Investment Interest Distribution Fixed Settlement Administrative
Income Expense Expenses Accounts Expenses Expense
(in millions)
Year Ended December 31, 2015
Interest rate contracts $ (21) $ — $ — $ — $ 241 $ —
Equity contracts — — 1 (10) (304) 2
Credit contracts — — — — (1) —
Foreign exchange contracts 4 — (1) — 13 (2)
Other contracts 1 — — — (27) —
GMWB and GMAB embedded derivatives — — — — (372) —
IUL embedded derivatives — — — (8) — —
EIA embedded derivatives — — — 1 — —
SMC embedded derivatives — — — — — —
Total loss $ (16) $ — $ — $ (17) $ (450) $ —
Year Ended December 31, 2014
Interest rate contracts $ 1 $ — $ — $ — $ 1,122 $ —
Equity contracts (4) 3 13 21 (304) 4
Credit contracts — — — — (33) —
Foreign exchange contracts 2 — (5) — (9) (1)
Other contracts — — — — (12) —
GMWB and GMAB embedded derivatives — — — — (1,054) —
IUL embedded derivatives — — — (27) — —
EIA embedded derivatives — — — (2) — —
SMC embedded derivatives — (3) — — — —
Total gain (loss) $ (1) $ — $ 8 $ (8) $ (290) $ 3
Year Ended December 31, 2013
Interest rate contracts $ 2 $ — $ — $ — $ (742) $ —
Equity contracts (17) 7 9 14 (1,084) 5
Credit contracts — — — — 6 —
Foreign exchange contracts (2) — — — 26 —
Other contracts 1 — — — (42) —
GMWB and GMAB embedded derivatives — — — — 1,408 —
IUL embedded derivatives — — — (16) — —
EIA embedded derivatives — — — (3) — —
SMC embedded derivatives — (6) — — — —
Total gain (loss) $ (16) $ 1 $ 9 $ (5) $ (428) $ 5
The Company holds derivative instruments that either do not qualify or are not designated for hedge accounting treatment.
These derivative instruments are used as economic hedges of equity, interest rate, credit and foreign currency exchange
rate risk related to various products and transactions of the Company.
Certain annuity contracts contain GMWB or GMAB provisions, which guarantee the right to make limited partial withdrawals
each contract year regardless of the volatility inherent in the underlying investments or guarantee a minimum accumulation
value of consideration received at the beginning of the contract period, after a specified holding period, respectively. The
GMAB and non-life contingent GMWB provisions are considered embedded derivatives, which are bifurcated from their host
contracts for valuation purposes and reported on the Consolidated Balance Sheets at fair value with changes in fair value
reported in earnings. The Company economically hedges the exposure related to GMAB and non-life contingent GMWB
provisions primarily using futures, options, interest rate swaptions, interest rate swaps, total return swaps and variance
swaps.
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