Ameriprise 2015 Annual Report Download - page 170

hedged items within interest and debt expense. The following table presents the amounts recognized in income related to
fair value hedges:
Amount of Gain Recognized in
Income on Derivatives
Years Ended December 31,
Derivatives designated as hedging
instruments Location of Gain Recorded into Income 2015 2014 2013
(in millions)
Interest rate contracts Interest and debt expense $ 31 $ 33 $ 57
Included in the table above is an $18 million gain from the partial settlement of the fair value hedge on the Company’s
senior notes due November 2015, as a result of redeeming $350 million of the notes in the fourth quarter of 2013.
Credit Risk
Credit risk associated with the Company’s derivatives is the risk that a derivative counterparty will not perform in
accordance with the terms of the applicable derivative contract. To mitigate such risk, the Company has established
guidelines and oversight of credit risk through a comprehensive enterprise risk management program that includes
members of senior management. Key components of this program are to require preapproval of counterparties and the use
of master netting arrangements and collateral arrangements whenever practical. See Note 15 for additional information on
the Company’s credit exposure related to derivative assets.
Certain of the Company’s derivative contracts contain provisions that adjust the level of collateral the Company is required
to post based on the Company’s debt rating (or based on the financial strength of the Company’s life insurance
subsidiaries for contracts in which those subsidiaries are the counterparty). Additionally, certain of the Company’s derivative
contracts contain provisions that allow the counterparty to terminate the contract if the Company’s debt does not maintain
a specific credit rating (generally an investment grade rating) or the Company’s life insurance subsidiary does not maintain
a specific financial strength rating. If these termination provisions were to be triggered, the Company’s counterparty could
require immediate settlement of any net liability position. At December 31, 2015 and 2014, the aggregate fair value of
derivative contracts in a net liability position containing such credit contingent provisions was $284 million and
$416 million, respectively. The aggregate fair value of assets posted as collateral for such instruments as of December 31,
2015 and 2014 was $283 million and $416 million, respectively. If the credit contingent provisions of derivative contracts
in a net liability position at December 31, 2015 and 2014 were triggered, the aggregate fair value of additional assets
that would be required to be posted as collateral or needed to settle the instruments immediately would have been
$1 million and nil, respectively.
17. Share-Based Compensation
The Company’s share-based compensation plans consist of the Amended and Restated Ameriprise Financial 2005
Incentive Compensation Plan (the ‘‘2005 ICP’’), the Ameriprise Financial 2008 Employment Incentive Equity Award Plan
(the ‘‘2008 Plan’’), the Ameriprise Financial Franchise Advisor Deferred Compensation Plan (‘‘Franchise Advisor Deferral
Plan’’), the Ameriprise Advisor Group Deferred Compensation Plan (‘‘Advisor Group Deferral Plan’’) and the Threadneedle
Equity Incentive Plan (‘‘EIP’’).
The components of the Company’s share-based compensation expense, net of forfeitures, were as follows:
December 31,
2015 2014 2013
(in millions)
Stock option $39 $37 $36
Restricted stock(1) 22 26 46
Restricted stock units 83 67 61
Liability awards 14 30 31
Total $ 158 $ 160 $ 174
(1) Includes nil, $3 million and $10 million of expense related to EIP for the years ended December 31, 2015, 2014 and 2013,
respectively.
For the years ended December 31, 2015, 2014 and 2013, total income tax benefit recognized by the Company related to
share-based compensation expense was $56 million, $55 million and $60 million, respectively.
148