XML 60 R37.htm IDEA: XBRL DOCUMENT
v3.19.3.a.u2

SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT | 12 Months Ended
--- | ---
Dec. 31, 2019
Condensed Financial Information Disclosure [Abstract] |
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Parent Company Only) |
Schedule I — Condensed Financial Information of Registrant Condensed Statements of Operations (Parent Company Only)
| Years Ended December 31,
2019 |  | 2018 |  | 2017
(in millions)
Revenues |  |  |  |  |
Management and financial advice fees | $ | (1 | ) |  | $ | (1 | ) |  | $ | (1 | )
Net investment income | 9 |  |  | 34 |  |  | 11 |
Other revenues | 14 |  |  | 4 |  |  | 8 |
Gain on disposal of business | 213 |  |  | — |  |  | — |
Total revenues | 235 |  |  | 37 |  |  | 18 |
Banking and deposit interest expense | 9 |  |  | 7 |  |  | 5 |
Total net revenues | 226 |  |  | 30 |  |  | 13 |
Expenses |  |  |  |  |
Benefits, claims, losses and settlement expenses | 49 |  |  | 4 |  |  | 76 |
Distribution expenses | 24 |  |  | 4 |  |  | 18 |
Interest and debt expense | 126 |  |  | 120 |  |  | 116 |
General and administrative expense | 244 |  |  | 210 |  |  | 246 |
Total expenses | 443 |  |  | 338 |  |  | 456 |
Pretax loss before equity in earnings of subsidiaries | (217 | ) |  | (308 | ) |  | (443 | )
Income tax benefit | (38 | ) |  | (73 | ) |  | (47 | )
Loss before equity in earnings of subsidiaries | (179 | ) |  | (235 | ) |  | (396 | )
Equity in earnings of subsidiaries | 2,072 |  |  | 2,333 |  |  | 1,876 |
Net income | 1,893 |  |  | 2,098 |  |  | 1,480 |
Other comprehensive income (loss), net of tax | 553 |  |  | (519 | ) |  | 29 |
Total comprehensive income | $ | 2,446 |  |  | $ | 1,579 |  |  | $ | 1,509 |
See Notes to Condensed Financial Information of Registrant.
Schedule I — Condensed Financial Information of Registrant Condensed Balance Sheets (Parent Company Only)
| December 31,
2019 |  | 2018
(in millions, except share amounts)
Assets |  |  |
Cash and cash equivalents | $ | 730 |  |  | $ | 476 |
Investments | 1,430 |  |  | 467 |
Loans to subsidiaries | 361 |  |  | 372 |
Due from subsidiaries | 305 |  |  | 288 |
Receivables | 5 |  |  | 5 |
Land, buildings, equipment, and software, net of accumulated depreciation of $952 and $1,168, respectively | 207 |  |  | 237 |
Investments in subsidiaries | 6,665 |  |  | 7,231 |
Other assets | 1,136 |  |  | 1,209 |
Total assets | $ | 10,839 |  |  | $ | 10,285 |
Liabilities and Shareholders’ Equity |  |  |
Liabilities: |  |  |
Accounts payable and accrued expenses | $ | 797 |  |  | $ | 636 |
Due to subsidiaries | 137 |  |  | 146 |
Borrowings from subsidiaries | 401 |  |  | 346 |
Long-term debt | 3,097 |  |  | 2,867 |
Other liabilities | 678 |  |  | 702 |
Total liabilities | 5,110 |  |  | 4,697 |
Shareholders’ Equity: |  |  |
Common shares ($.01 par value; shares authorized, 1,250,000,000; shares issued, 329,842,827 and 328,537,214, respectively) | 3 |  |  | 3 |
Additional paid-in capital | 8,461 |  |  | 8,260 |
Retained earnings | 14,279 |  |  | 12,909 |
Treasury shares, at cost (205,903,593 and 192,206,467 shares, respectively) | (17,276 | ) |  | (15,293 | )
Accumulated other comprehensive income (loss), net of tax, including amounts applicable to equity investments in subsidiaries | 262 |  |  | (291 | )
Total shareholders’ equity | 5,729 |  |  | 5,588 |
Total liabilities and equity | $ | 10,839 |  |  | $ | 10,285 |
See Notes to Condensed Financial Information of Registrant.
Schedule I — Condensed Financial Information of Registrant Condensed Statements of Cash Flows (Parent Company Only)
| Years Ended December 31,
2019 |  | 2018 |  | 2017
(in millions)
Cash Flows from Operating Activities |  |  |  |  |
Net income | $ | 1,893 |  |  | $ | 2,098 |  |  | $ | 1,480 |
Equity in earnings of subsidiaries | (2,072 | ) |  | (2,333 | ) |  | (1,876 | )
Dividends received from subsidiaries | 2,721 |  |  | 2,093 |  |  | 1,589 |
Gain on disposal of business before affinity partner payment | (313 | ) |  | — |  |  | — |
Other operating activities, primarily with subsidiaries | 596 |  |  | 57 |  |  | 712 |
Net cash provided by operating activities | 2,825 |  |  | 1,915 |  |  | 1,905 |
Cash Flows from Investing Activities |  |  |  |  |
Available-for-Sale securities: |  |  |  |  |
Maturities, sinking fund payments and calls | 204 |  |  | 94 |  |  | 44 |
Purchases | (1,153 | ) |  | (222 | ) |  | (77 | )
Proceeds from sale of other investments | 6 |  |  | — |  |  | 3 |
Purchase of other investments | (12 | ) |  | — |  |  | — |
Purchase of land, buildings, equipment and software | (42 | ) |  | (62 | ) |  | (69 | )
Proceeds from disposal of business | 1,138 |  |  | — |  |  | — |
Contributions to subsidiaries | (368 | ) |  | (73 | ) |  | (79 | )
Return of capital from subsidiaries | 18 |  |  | 454 |  |  | 47 |
Repayment of loans to subsidiaries | 2,468 |  |  | 1,623 |  |  | 1,277 |
Issuance of loans to subsidiaries | (2,457 | ) |  | (1,768 | ) |  | (1,337 | )
Other, net | (65 | ) |  | 2 |  |  | (91 | )
Net cash provided by investing activities | (263 | ) |  | 48 |  |  | (282 | )
Cash Flows from Financing Activities |  |  |  |  |
Dividends paid to shareholders | (504 | ) |  | (506 | ) |  | (491 | )
Repurchase of common shares | (1,943 | ) |  | (1,630 | ) |  | (1,485 | )
Cash paid for purchased options with deferred premiums | (107 | ) |  | (20 | ) |  | (19 | )
Issuance of long-term debt, net of issuance costs | 497 |  |  | — |  |  | — |
Repayments of long-term debt | (313 | ) |  | (13 | ) |  | (11 | )
Borrowings from subsidiaries | 132 |  |  | 472 |  |  | 124 |
Repayments of borrowings from subsidiaries | (79 | ) |  | (273 | ) |  | (15 | )
Exercise of stock options | 3 |  |  | 2 |  |  | 15 |
Other, net | 6 |  |  | (13 | ) |  | (1 | )
Net cash used in financing activities | (2,308 | ) |  | (1,981 | ) |  | (1,883 | )
Net increase (decrease) in cash and cash equivalents | 254 |  |  | (18 | ) |  | (260 | )
Cash and cash equivalents at beginning of year | 476 |  |  | 494 |  |  | 754 |
Cash and cash equivalents at end of year | $ | 730 |  |  | $ | 476 |  |  | $ | 494 |
Supplemental Disclosures: |  |  |  |  |
Interest paid on debt | $ | 123 |  |  | $ | 126 |  |  | $ | 128 |
Income taxes paid (received), net | (109 | ) |  | (27 | ) |  | (368 | )
Non-cash dividends from subsidiaries | 81 |  |  | 195 |  |  | 109 |
See Notes to Condensed Financial Information of Registrant. Schedule I — Condensed Financial Information of Registrant Notes to Condensed Financial Information of Registrant (Parent Company Only) 1. Basis of Presentation The accompanying Condensed Financial Statements include the accounts of Ameriprise Financial, Inc. (the “Parent Company”) and, on an equity basis, its subsidiaries and affiliates. The financial statements have been prepared in accordance with U.S. generally accepted accounting principles. The financial information of the Parent Company should be read in conjunction with the Consolidated Financial Statements and Notes of Ameriprise Financial. Parent Company revenues and expenses, other than compensation and benefits and debt and interest expense, are primarily related to intercompany transactions with subsidiaries and affiliates. The change in the fair value of derivative instruments used as hedges is reflected in the Parent Company Only Condensed Statements of Operations. For certain of these derivatives, the change in the hedged item is reflected in the subsidiaries’ Statements of Operations. The change in fair value of certain derivatives used to economically hedge risk related to GMWB provisions is included in benefits, claims, losses and settlement expenses, while the underlying benefits, claims, losses and settlement expenses are reflected in equity in earnings of subsidiaries. 2. Investments In December 2018, the Parent Company invested in the residual tranche of an asset backed security structure issued by Ameriprise Advisor Financing, LLC, a subsidiary of the Parent Company. The asset backed securities are collateralized by a portfolio of loans issued to advisors affiliated with AFS, a subsidiary of the Parent Company. The fair value of the residual tranche was $94 million and $90 million as of December 31, 2019 and 2018, respectively, and is reported in Investments on the Parent Company’s Condensed Balance Sheets. For the year ended December 31, 2019, interest income was $6 million and is reported in Net investment income on the Parent Company’s Condensed Statements of Operations. 3. Debt All of the debt of Ameriprise Financial is borrowings of the Parent Company, except as indicated below.
• | As of December 31, 2018, the debt of Ameriprise Financial included $50 million of repurchase agreements, which were accounted for as secured borrowings.
• | As of December 31, 2019 and 2018, Ameriprise Financial had $200 million and $150 million, respectively, of borrowings from the Federal Home Loan Bank of Des Moines, which is collateralized with commercial mortgage backed securities and residential mortgage backed securities.
4. Borrowings from Subsidiaries The Parent Company has intercompany lending arrangements with its subsidiaries. At the end of each business day, taking into consideration all legal and regulatory requirements associated with its subsidiaries, the Parent Company is entitled to draw on all funds in specified bank accounts. Repayment of all or a portion of the funds is due on demand. The Parent Company also has revolving credit agreements with its subsidiaries as the borrower aggregating $1.3 billion and $1.2 billion as of December 31, 2019 and 2018, respectively, of which $50 million and nil was outstanding as of December 31, 2019 and 2018, respectively. 5. Guarantees, Commitments and Contingencies The Parent Company is the guarantor for operating leases of certain subsidiaries. All consolidated legal, regulatory and arbitration proceedings, including class actions of Ameriprise Financial, Inc. and its consolidated subsidiaries are potential or current obligations of the Parent Company. The Parent Company has committed revolving credit agreements with its subsidiaries as the lender aggregating $364 million as of December 31, 2019. The Parent Company and Ameriprise Certificate Company (“ACC”) entered into a Capital Support Agreement on March 2, 2009, pursuant to which the Parent Company agrees to commit such capital to ACC as is necessary to satisfy applicable minimum capital requirements. Effective April 30, 2014, this agreement was amended to revise the maximum commitment to $50 million. For the years ended December 31, 2019, 2018 and 2017, ACC did not draw upon the Capital Support Agreement and had met all applicable capital requirements. Ameriprise Financial Services, LLC (“AFS”) (previously Ameriprise Financial Services, Inc.) entered into a FINRA approved subordinated loan agreement with the Parent Company on December 15, 2014 for regulatory net capital purposes. The agreement consists of a $200 million secured demand note. The note is secured by cash and securities equal to the principal value of the note pledged by the Parent Company. For the year ended December 31, 2019, AFS had not made a demand of the principal amount. Ameriprise Enterprise Investment Services, Inc. (“AEIS”) entered into a FINRA approved subordinated loan agreement with the Parent Company on January 25, 2017 for regulatory net capital purposes. Under this agreement, AEIS borrowed $60 million from the Parent Company with an initial term of five years to be repaid no later than January 22, 2022. Both companies have the option to renew the agreement in one year increments in perpetuity.

X
- References No definition available. + Details
Name: | srt_CondensedFinancialInformationOfParentCompanyOnlyDisclosureAbstract
Namespace Prefix: | srt_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for condensed financial information, including the financial position, cash flows, and the results of operations of the registrant (parent company) as of the same dates or for the same periods for which audited consolidated financial statements are being presented. Alternatively, the details of this disclosure can be reported by the specific parent company taxonomy elements, indicating the appropriate date and period contexts in an instance document. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 3 -Subparagraph (SX 210.12-04) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e24072-122690 Reference 2: http://www.xbrl.org/2003/role/recommendedDisclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 45 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=108774443&loc=d3e5283-111683 + Details
Name: | us-gaap_CondensedFinancialInformationOfParentCompanyOnlyDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration