Ameriprise Financial (AMP) 10-Q 5 Aug 09 2009 Q2 Quarterly report Financial data

Consolidated Statements of Oper

Consolidated Statements of Operations (USD $)
In Millions, except Per Share data	3 Months Ended Jun. 30, 2009	3 Months Ended Jun. 30, 2008	6 Months Ended Jun. 30, 2009	6 Months Ended Jun. 30, 2008
Revenues
Management and financial advice fees	$606	$780	$1,160	$1,571
Distribution fees	351	422	662	855
Net investment income	514	393	935	794
Premiums	269	257	535	513
Other revenues	175	158	384	315
Total revenues	1,915	2,010	3,676	4,048
Banking and deposit interest expense	38	42	80	89
Total net revenues	1,877	1,968	3,596	3,959
Expenses
Distribution expenses	425	506	808	1,038
Interest credited to fixed accounts	237	192	442	387
Benefits, claims, losses and settlement expenses	587	294	687	598
Amortization of deferred acquisition costs	(125)	144	161	298
Interest and debt expense	28	28	54	54
General and administrative expense	610	572	1,195	1,162
Total expenses	1,762	1,736	3,347	3,537
Pretax income	115	232	249	422
Income tax provision	28	27	46	31
Net income	87	205	203	391
Less: Net loss attributable to noncontrolling interests	(8)	(5)	(22)	(10)
Net income attributable to Ameriprise Financial	95	210	225	401
Earnings per share attributable to Ameriprise Financial common shareholders
Basic	0.41	0.94	$1	1.77
Diluted	0.41	0.93	0.99	1.75
Weighted average common shares outstanding
Basic	228.8	223.2	225.6	225.8
Diluted	230	226	226.8	228.8
Cash dividends paid per common share	0.17	0.15	0.34	0.3
Net investment income:
Net investment income before impairment losses on securities	545		1,001
Total other-than-temporary impairment losses on securities	(27)		(50)
Portion of loss recognized in other comprehensive income	(4)		(16)
Net impairment losses recognized in net investment income	(31)		(66)
Net investment income	$514	$393	$935	$794

Consolidated Balance Sheets

Consolidated Balance Sheets (USD $)
In Millions	Jun. 30, 2009	Dec. 31, 2008
Assets
Cash and cash equivalents	$4,469	$6,228
Investments	34,793	27,522
Separate account assets	48,661	44,746
Receivables	4,067	3,887
Deferred acquisition costs	4,361	4,383
Restricted and segregated cash	1,730	1,883
Other assets	5,133	6,928
Total assets	103,214	95,577
Liabilities and Equity Liabilities:
Future policy benefits and claims	30,916	29,293
Separate account liabilities	48,661	44,746
Customer deposits	9,216	8,229
Debt	2,435	2,027
Accounts payable and accrued expenses	825	887
Other liabilities	2,787	3,928
Total liabilities	94,840	89,110
Ameriprise Financial:
Common shares ($.01 par value; shares authorized, 1,250,000,000; shares issued, 295,584,874 and 256,432,623, respectively)	3	3
Additional paid-in capital	5,641	4,688
Retained earnings	4,875	4,592
Treasury shares, at cost (40,546,462 and 39,921,924 shares, respectively)	(2,021)	(2,012)
Accumulated other comprehensive loss, net	(388)	(1,093)
Total Ameriprise Financial shareholders' equity	8,110	6,178
Noncontrolling interests	264	289
Total equity	8,374	6,467
Total liabilities and equity	$103,214	$95,577

Consolidated Balance Sheets - P

Consolidated Balance Sheets - Parenthetical Disclosures (USD $)
	Jun. 30, 2009	Dec. 31, 2008
Balance Sheets
Common shares, par value (in dollars per share)	0.01	0.01
Common shares, shares authorized (in shares)	1,250,000,000	1,250,000,000
Common shares, shares issued (in shares)	295,584,874	256,432,623
Treasury shares (in shares)	40,546,462	39,921,924

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (USD $)
In Millions	6 Months Ended Jun. 30, 2009	6 Months Ended Jun. 30, 2008
Cash Flows from Operating Activities
Net income	$203	$391
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Capitalization of deferred acquisition and sales inducement costs	(405)	(372)
Amortization of deferred acquisition and sales inducement costs	167	334
Depreciation, amortization and accretion, net	81	142
Deferred income tax expense (benefit)	90	(35)
Share-based compensation	86	75
Net realized investment gains	(97)	(9)
Other-than-temporary impairments recognized in net investment income and provision for loan losses	82	64
Changes in operating assets and liabilities:
Segregated cash	144	143
Trading securities and equity method investments, net	(345)	131
Future policy benefits and claims, net	379	352
Receivables	27	(142)
Brokerage deposits	(123)	(112)
Accounts payable and accrued expenses	(74)	(297)
Liability for derivatives collateral held	(1,588)	(176)
Other, net	(188)	(287)
Net cash (used in) provided by operating activities	(1,561)	202
Available-for-Sale securities:
Proceeds from sales	2,359	155
Maturities, sinking fund payments and calls	2,500	2,025
Purchases	(10,188)	(1,678)
Proceeds from sales and maturities of commercial mortgage loans	158	142
Funding of commercial mortgage loans	(57)	(84)
Proceeds from sales of other investments	28	31
Purchase of other investments	(10)	(308)
Purchase of land, buildings, equipment and software	(35)	(80)
Change in policy loans, net	13	(21)
Change in restricted cash	15	197
Change in consumer banking loans and credit card receivables, net	(52)	(19)
Other, net	3	2
Net cash (used in) provided by investing activities	(5,266)	362
Investment certificates and banking time deposits:
Proceeds from additions	1,798	930
Maturities, withdrawals and cash surrenders	(1,780)	(621)
Change in other banking deposits	1,097	(15)
Policyholder and contractholder account values:
Consideration received	3,726	876
Net transfers from separate accounts	239	(46)
Surrenders and other benefits	(1,224)	(1,540)
Deferred premium options, net	(6)	(32)
Proceeds from issuance of common stock	869
Proceeds from issuance of debt, net of issuance costs	532
Principal repayments of debt	(87)
Dividends paid to shareholders	(74)	(68)
Repurchase of common shares	(9)	(540)
Exercise of stock options		8
Excess tax benefits from share-based compensation	1	4
Noncontrolling interests investments in subsidiaries	2	48
Distributions to noncontrolling interests	(38)	(31)
Net cash provided by (used in) financing activities	5,046	(1,027)
Effect of exchange rate changes on cash	22
Net decrease in cash and cash equivalents	(1,759)	(463)
Cash and cash equivalents at beginning of period	6,228	3,836
Cash and cash equivalents at end of period	4,469	3,373
Supplemental Disclosures:
Interest paid on debt	58	61
Income taxes paid, net	$3	$127

Consolidated Statements of Stoc

Consolidated Statements of Stockholders Equity (USD $)
In Millions, except Share data	Common Stock	Additional Paid-In Capital	Treasury Stock	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Noncontrolling Interests	Total
Beginning balance at Dec. 31, 2007	$3	$4,630	($1,467)	$4,811	($167)	$378	$8,188
Number of outstanding shares, beginning balance at Dec. 31, 2007	227,747,843
Statement of Equity
Change in accounting principle, net				(30)			(30)
Comprehensive income:
Net income (loss)				401		(10)	391
Other comprehensive income (loss), net:
Change in net unrealized securities losses					(343)		(343)
Change in net unrealized derivative losses					(1)		(1)
Foreign currency translation adjustment					(11)	1	(10)
Dividends paid to shareholders				(68)			(68)
Noncontrolling interests investments in subsidiaries						48	48
Distributions to noncontrolling interests						(31)	(31)
Repurchase of common shares, value			(542)				(542)
Repurchase of common shares, shares	(10,903,357)
Share-based compensation plans, value		19	82	(3)			98
Share-based compensation plans, shares	2,093,689
Ending balance at Jun. 30, 2008	3	4,649	(1,927)	5,111	(522)	386	7,700
Number of outstanding shares, ending balance at Jun. 30, 2008	218,938,175
Other comprehensive income (loss), net:
Beginning balance at Dec. 31, 2008	3	4,688	(2,012)	4,592	(1,093)	289	6,467
Number of outstanding shares, beginning balance at Dec. 31, 2008	216,510,699
Statement of Equity
Change in accounting principle, net				132	(132)
Comprehensive income:
Net income (loss)				225		(22)	203
Other comprehensive income (loss), net:
Change in net unrealized securities losses					737		737
Change in noncredit related impairments on securities and net unrealized securities losses on previously impaired securities					35		35
Change in net unrealized derivative losses					(1)		(1)
Foreign currency translation adjustment					66	33	99
Issuance of common stock, value		869					869
Issuance of common stock, shares	36,000,000
Dividends paid to shareholders				(74)			(74)
Noncontrolling interests investments in subsidiaries						2	2
Distributions to noncontrolling interests						(38)	(38)
Repurchase of common shares, value			(9)				(9)
Repurchase of common shares, shares	(624,538)
Share-based compensation plans, value		84					84
Share-based compensation plans, shares	3,152,251
Ending balance at Jun. 30, 2009	$3	$5,641	($2,021)	$4,875	($388)	$264	$8,374
Number of outstanding shares, ending balance at Jun. 30, 2009	255,038,412

Basis of Presentation

Basis of Presentation
	6 Months Ended Jun. 30, 2009 USD / shares
Notes to Financial Statements
Basis of Presentation	1. Basis of Presentation The accompanying Consolidated Financial Statements include the accounts of Ameriprise Financial,Inc., companies in which it directly or indirectly has a controlling financial interest, variable interest entities (VIEs) in which it is the primary beneficiary and certain limited partnerships for which it is the general partner (collectively, the Company). Noncontrolling interests are the ownership interests in subsidiaries not attributable, directly or indirectly, to Ameriprise Financial,Inc. and are classified as equity within the Consolidated Balance Sheets. The Company excluding noncontrolling interests (Ameriprise Financial) includes ownership interests in subsidiaries that are attributable, directly or indirectly, to Ameriprise Financial,Inc. All material intercompany transactions and balances between or among Ameriprise Financial,Inc. and its subsidiaries and affiliates have been eliminated in consolidation. The interim financial information in this report has not been audited. In the opinion of management, all adjustments necessary for a fair presentation of the consolidated results of operations and financial position for the interim periods have been made. All adjustments made were of a normal recurring nature. Ameriprise Financial,Inc. is a holding company, which primarily conducts business through its subsidiaries to provide financial planning and products and services that are designed to be utilized as solutions for clients cash and liquidity, asset accumulation, income, protection and estate and wealth transfer needs. The Companys foreign operations in the United Kingdom are conducted through its subsidiary, Threadneedle Asset Management Holdings Srl (Threadneedle). The accompanying Consolidated Financial Statements are prepared in accordance with U.S. generally accepted accounting principles (GAAP). Certain reclassifications of prior period amounts have been made to conform to the current presentation. The Company evaluated events or transactions that may have occurred after the balance sheet date for potential recognition or disclosure through August 4, 2009, the date the financial statements were issued.

Recent Accounting Pronouncement

Recent Accounting Pronouncements
	6 Months Ended Jun. 30, 2009 USD / shares
Notes to Financial Statements
Recent Accounting Pronouncements	2. Recent Accounting Pronouncements In June2009, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards (SFAS) No.168 The FASB Accounting Standards Codification and the Hierarchy of Generally Accepted Accounting Principles a replacement of FASB Statement No.162 (SFAS 168). SFAS 168 will supersede existing non-SEC accounting and reporting standards. The codification will not change GAAP but will rather organize it into a new hierarchy with two levels: authoritative and non-authoritative. All authoritative GAAP will carry equal weight and be organized in a topical structure. SFAS 168 is effective for interim and annual reporting periods ending after September15, 2009. The adoption of SFAS 168 will not have a material effect on the Companys consolidated results of operations and financial condition. In June2009, the FASB issued SFAS No.167 Amendments to FASB Interpretation No.46(R) (SFAS 167). SFAS 167 amends the consolidation guidance applicable to VIEs under FASB Interpretation No.46(R)Consolidation of Variable Interest Entities an interpretation of ARB No.51 and requires additional disclosures about the Companys involvement in VIEs. SFAS 167 is effective for interim and annual reporting periods beginning after November15, 2009, with early adoption prohibited. The Company is currently evaluating the impact of SFAS 167 on its consolidated results of operations and financial condition. In June2009, the FASB issued SFAS No.166 Accounting for Transfers of Financial Assets an amendment of FASB Statement No.140 (SFAS 166). SFAS 166 improves the relevance, representational faithfulness, and comparability of the information that a reporting entity provides in its financial statements about a transfer of financial assets; the effects of a transfer on its financial position, financial performance, and cash flows; and a transferors continuing involvement, if any, in transferred financial assets. SFAS 166 is effective for interim and annual reporting periods beginning after November15, 2009, with early adoption prohibited, and must be applied to transfers of financial assets occurring on or after the effective date. The adoption of SFAS 166 is not expected to have a material effect on the Companys consolidated results of operations and financial condition. In May2009, the FASB issued SFAS No.165 Subsequent Events (SFAS 165). SFAS 165 provides guidance on the recognition of subsequent events and requires additional disclosures on the time period evaluated for such events. SFAS 165 is effective for interim and annual reporting periods ending after June15, 2009, and shall be applied prospectively. The Company adopted SFAS 165 in the second quarter of 2009. The adoption did not have a material effect on the Companys consolidated results of operations and financial condition. In April2009, the FASB issued FASB Staff Position (FSP) FAS 157-4 Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly (FSP 157-4). FSP 157-4 provides guidance on estimating the fair value of a financial asset o

Investments

Investments
	6 Months Ended Jun. 30, 2009 USD / shares
Notes to Financial Statements
Investments	3. Investments Thefollowing is a summary of investments: June30, 2009 December31, 2008 (in millions) Available-for-Sale securities, at fair value $ 29,911 $ 22,873 Commercial mortgage loans, net 2,758 2,887 Trading securities 904 501 Policy loans 715 729 Other investments 505 532 Total $ 34,793 $ 27,522 Available-for-Sale Securities Effective January1, 2009, the Company early adopted FSP 115-2. This interpretation significantly changed the Companys accounting policy regarding the timing and amount of other-than temporary impairments for Available-for-Sale securities as follows. When the fair value of an investment is less than its amortized cost, the Company assesses whether or not: (i)it has the intent to sell the security (made a decision to sell) or (ii)it is more likely than not that the Company will be required to sell the security before its anticipated recovery. If either of these conditions are met, the Company must recognize an other-than-temporary impairment for the difference between the investments amortized cost basis and its fair value through earnings. Forsecurities that do not meet the above criteria, and the Company does not expect to recover a securitys amortized cost basis, the security is considered other-than temporarily impaired. For these securities, the Company separates the total impairment into the credit loss component and the amount of the loss related to other factors. The amount of the total other-than-temporary impairment related to credit loss is recognized in earnings. The amount of the total other-than-temporary impairment related to other factors is recognized in other comprehensive income, net of impacts to DAC, DSIC, certain benefit reserves and income taxes. For Available-for-Sale securities that have recognized an other-than-temporary impairment through earnings, if through subsequent evaluation there is a significant increase in the cash flow expected, the difference between the amortized cost basis and the cash flows expected to be collected is accreted as interest income. Subsequent increases and decreases in the fair value of Available-for-Sale securities are included in other comprehensive income. The Companys Consolidated Statements of Equity present all changes in other comprehensive income associated with Available-for-Sale debt securities that have been other-than-temporarily impaired on a separate line from fair value changes recorded in other comprehensive income from all other securities. The Company provides a supplemental disclosure on the face of its Consolidated Statements of Operations that presents: (i)total other-than-temporary impairment losses recognized during the period and (ii)the portion of other-than-temporary impairment losses recognized in other comprehensive income. The sum of these amounts represents the credit-related portion of other-than-temporary impairments that were recognized in earnings during the period. The portion of other-than-temporary losses recognized in other comprehensive income includes: (i)the portion of other-than-temporary impairment losses related

Deferred Acquisition Costs and

Deferred Acquisition Costs and Deferred Sales Inducement Costs
	6 Months Ended Jun. 30, 2009 USD / shares
Notes to Financial Statements
Deferred Acquisition Costs and Deferred Sales Inducement Costs	4. Deferred Acquisition Costs and Deferred Sales Inducement Costs Thebalances of and changes in DAC were as follows: 2009 2008 (in millions) Balance at January1 $ 4,383 $ 4,408 Cumulative effect of accounting change 36 Capitalization of acquisition costs 366 325 Amortization (161 ) (298 ) Impact of change in net unrealized securities losses (227 ) 42 Balance at June30 $ 4,361 $ 4,513 Thebalances of and changes in DSIC, included in other assets on the Consolidated Balance Sheets, were as follows: 2009 2008 (in millions) Balance at January1 $ 518 $ 511 Cumulative effect of accounting change 9 Capitalization of sales inducements 39 47 Amortization (6 ) (36 ) Impact of change in net unrealized securities losses (33 ) 7 Balance at June30 $ 518 $ 538 The Company adopted FSP 115-2 in the first quarter of 2009. The adoption had no net impact to DAC and DSIC. Effective January1, 2008, the Company adopted SFAS 157 and recorded as a cumulative change in accounting principle a pretax increase of $36million and $9million to DAC and DSIC, respectively. See Note 2 and Note 9 for additional information regarding SFAS 157.

Future Policy Benefits and Clai

Future Policy Benefits and Claims and Separate Account Liabilities
	6 Months Ended Jun. 30, 2009 USD / shares
Notes to Financial Statements
Future Policy Benefits and Claims and Separate Account Liabilities	5. Future Policy Benefits and Claims and Separate Account Liabilities Future policy benefits and claims consisted of the following: June30, 2009 December31, 2008 (in millions) Fixed annuities $ 16,364 $ 14,058 Equity indexed annuities accumulated host values 200 228 Equity indexed annuities embedded derivatives 15 16 Variable annuities fixed sub-accounts 5,987 5,623 Variable annuity guaranteed minimum withdrawal benefits (GMWB) 584 1,471 Variable annuity guaranteed minimum accumulation benefits (GMAB) 180 367 Other variable annuity guarantees 36 67 Total annuities 23,366 21,830 Variable universal life (VUL)/universal life insurance (UL) 2,571 2,526 Other life, disability income and long term care insurance 4,486 4,397 Auto, home and other insurance 373 368 Policy claims and other policyholders funds 120 172 Total $ 30,916 $ 29,293 Separate account liabilities consisted of the following: June30, 2009 December31, 2008 (in millions) Variable annuity variable sub-accounts $ 41,117 $ 37,657 VUL insurance variable sub-accounts 4,407 4,091 Other insurance variable sub-accounts 40 39 Threadneedle investment liabilities 3,097 2,959 Total $ 48,661 $ 44,746

Variable Annuity and Insurance

Variable Annuity and Insurance Guarantees
	6 Months Ended Jun. 30, 2009 USD / shares
Notes to Financial Statements
Variable Annuity and Insurance Guarantees	6. Variable Annuity and Insurance Guarantees The majority of the variable annuity contracts offered by the Company contain guaranteed minimum death benefit (GMDB) provisions. The Company also offers variable annuities with death benefit provisions that gross up the amount payable by a certain percentage of contract earnings, which are referred to as gross gain-up (GGU) benefits. In addition, the Company offers contracts with GMWB provisions. The Company discontinued sales of contracts with GMAB provisions June1, 2009. The Company previously offered contracts containing guaranteed minimum income benefit (GMIB) provisions. Certain universal life contracts offered by the Company provide secondary guarantee benefits. The secondary guarantee ensures that, subject to specified conditions, the policy will not terminate and will continue to provide a death benefit even if there is insufficient policy value to cover the monthly deductions and charges. The following table provides summary information related to all variable annuity guarantees for which the Company has established additional liabilities: June 30, 2009 December 31, 2008 Variable annuity guarantees by benefit type(1) Total contract value Contract value in separate accounts Net amount at risk(2) Weighted average attained age Total contract value Contract value in separate accounts Net amount at risk(2) Weighted average attained age (in millions, except age) GMDB: Return of Premium $ 25,464 $ 23,121 $ 3,504 61 $ 22,249 $ 20,153 $ 4,873 61 Six-Year Reset 12,748 10,024 2,130 61 12,719 10,063 2,802 61 One-Year Ratchet 6,160 5,448 1,739 63 5,770 5,061 2,163 62 Five-Year Ratchet 1,052 977 140 59 951 888 199 59 Other 506 463 164 67 471 429 192 66 Total GMDB $ 45,930 $ 40,033 $ 7,677 61 $ 42,160 $ 36,594 $ 10,229 61 GGU death benefit $ 738 $ 658 $ 66 63 $ 699 $ 619 $ 65 63 GMIB $ 571 $ 520 $ 214 63 $ 567 $ 511 $ 245 63 GMWB: GMWB $ 3,691 $ 3,580 $ 1,040 63 $ 3,513 $ 3,409 $ 1,312 63 GMWB for life 11,505 10,990 2,060 63 9,194 8,764 2,704 63 Total GMWB $ 15,196 $ 14,570 $ 3,100 63 $ 12,707 $ 12,173 $ 4,016 63 GMAB $ 2,496 $ 2,414 $ 462 55 $ 2,006 $ 1,937 $ 608 56 (1) Individual variable annuity contracts may have more than one guarantee and therefore may be included in more than one benefit type. Variable annuity contracts for which the death benefit equals account value are not shown in this table. (2) Represents the current guaranteed benefit amount in excess of the current contract value. GMIB, GMWB and GMAB benefits are subject to waiting periods and payment periods specified in t

Customer Deposits

Customer Deposits
	6 Months Ended Jun. 30, 2009 USD / shares
Notes to Financial Statements
Customer Deposits	7. Customer Deposits Customer deposits consisted of the following: June30, 2009 December31, 2008 (in millions) Fixed rate certificates $ 3,898 $ 3,909 Stock market based certificates 860 909 Stock market embedded derivative reserve 16 5 Other 59 62 Less: accrued interest classified in other liabilities (25 ) (11 ) Total investment certificate reserves 4,808 4,874 Brokerage deposits 1,865 1,988 Banking deposits 2,543 1,367 Total $ 9,216 $ 8,229

Debt

Debt
	6 Months Ended Jun. 30, 2009 USD / shares
Notes to Financial Statements
Debt	8. Debt Debt and the stated interest rates were as follows: Outstanding Balance Stated Interest Rate June30, 2009 December31, 2008 June30, 2009 December31, 2008 (inmillions) Senior notes due 2010 $ 790 $ 800 5.4 % 5.4 % Senior notes due 2015 700 700 5.7 5.7 Senior notes due 2019 300 7.3 Junior subordinated notes due 2066 322 457 7.5 7.5 Senior notes due 2039 200 7.8 Municipal bond inverse floater certificates due 2021 6 6 0.4 2.2 Floating rate revolving credit borrowings due 2013 117 64 5.0 3.6 Total $ 2,435 $ 2,027 On June3, 2009, theCompany issued $200million of unsecured senior noteswhich mature June15,2039 and carry a fixed interest rate of 7.75%. Interest payments are due quarterly in arrears on March15, June15, September15 and December15, commencing September15, 2009. On June8, 2009, theCompany issued $300million of unsecured senior noteswhich mature June28,2019 and carry a fixed interest rate of 7.30%. Interest payments are due semi-annually in arrears on June28 and December28, commencing December28, 2009. In July2009, the Company purchased $450 million aggregate principal amount of its 5.35% Senior Notes (Notes) due November15, 2010, pursuant to the cash tender offer announced on July1, 2009. The tender offer consideration per $1,000 principal amount of Notes accepted for purchase was $1,000, with an early tender payment of $30 that expired on July15,2009. The tender offer expired on July29, 2009. Payments for Notes purchased pursuant to the tender offer included accrued and unpaid interest from the last interest payment date to, but not including, the settlement date.

Fair Values of Assets and Liabi

Fair Values of Assets and Liabilities
	6 Months Ended Jun. 30, 2009 USD / shares
Notes to Financial Statements
Fair Values of Assets and Liabilities	9. Fair Values of Assets and Liabilities Effective January1, 2008, the Company adopted SFAS 157, which defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. SFAS 157 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date; that is, an exit price. The exit price assumes the asset or liability is not exchanged subject to a forced liquidation or distressed sale. Valuation Hierarchy Under SFAS 157, the Company categorizes its fair value measurements according to a three-level hierarchy. The hierarchy prioritizes the inputs used by the Companys valuation techniques. A level is assigned to each fair value measurement based on the lowest level input that is significant to the fair value measurement in its entirety. The three levels of the fair value hierarchy are defined as follows: Level 1 Unadjusted quoted prices for identical assets or liabilities in active markets that are accessible at the measurement date. Level 2 Prices or valuations based on observable inputs other than quoted prices in active markets for identical assets and liabilities. Level 3 Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. Determination of Fair Value The Company uses valuation techniques consistent with the market and income approaches to measure the fair value of its assets and liabilities. The Companys market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. The Companys income approach uses valuation techniques to convert future projected cash flows to a single discounted present value amount. When applying either approach, the Company maximizes the use of observable inputs and minimizes the use of unobservable inputs. The following is a description of the valuation techniques used to measure fair value and the general classification of these instruments pursuant to the fair value hierarchy. Assets Cash Equivalents Cash equivalents include highly liquid investments with original maturities of 90 days or less. Actively traded money market funds are measured at their net asset value (NAV) and classified as Level 1. The Companys remaining cash equivalents are classified as Level 2 and measured at amortized cost, which is a reasonable estimate of fair value because of the short time between the purchase of the instrument and its expected realization. Investments (Trading Securities and Available-for-Sale Securities) When available, the fair value of securities is based on quoted prices in active markets. If quoted prices are not available, fair values are obtained from nationally-recognized pricing services, broker quotes, or other model-based valuation techniques such as the present value of cash flows. Level 1 securities include U.S. Treasuries and seed money in funds traded in active markets. Level 2 securities include agency mortgage backed securities, commercial mort

Derivatives and Hedging Activit

Derivatives and Hedging Activities
	6 Months Ended Jun. 30, 2009 USD / shares
Notes to Financial Statements
Derivatives and Hedging Activities	10. Derivatives and Hedging Activities Derivative instruments enable theCompany to manage its exposure to various market risks. Thevalue 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 Companys products and operations. The Company uses derivatives as economic hedges and occasionally holds derivatives designated for hedge accounting. The following table presents the balance sheet location and the gross fair value of derivative instruments, including embedded derivatives, by type of derivative and product at June30,2009: Derivatives not designated as hedging instruments Balance Sheet Location Asset Balance Sheet Location Liability (in millions) (in millions) Interest rate contracts GMWB and GMAB Other assets $ 283 Other liabilities $ (307 ) Interest rate lock commitments Other assets 1 Equity contracts GMWB and GMAB Other assets 675 Other liabilities (388 ) Equity indexed annuities Other assets 1 Equity indexed annuities embedded derivatives Future policy benefits and claims (15 ) Stock market certificates Other assets 66 Other liabilities (51 ) Stock market certificates embedded derivatives Customer deposits (16 ) Seed money Other liabilities (1 ) Foreign exchange contracts Seed money Other liabilities (1 ) Other GMWB and GMAB embedded derivatives(1) Future policy benefits and claims (759 ) Total $ 1,026 $ (1,538 ) (1) The fair values of GMWB and GMAB embedded derivatives fluctuate primarily based on changes in equity, interest rate and credit markets. See Note 9 for additional information regarding the Companys fair value measurement of derivative instruments. Derivatives Not Designated as Hedges The following table presents a summary of the impact of derivatives not designated as hedging instruments under SFAS No.133 Accounting for Derivative Instruments and Hedging Activities (SFAS 133) on the Consolidated Statements of Operations: Amount of Gain (Loss) Recognized in Income on Derivatives Derivatives not designated as hedging instruments Location of Gain (Loss) Recognized in Income on Derivatives Three Months Ended June30, 2009 Six Months Ended June30, 2009 (in millions) Interest rate contracts GMWB and GMAB Benefits, claims, losses and settlement expenses $ (262 ) $ (385 ) Interest rate lock commitments Other revenues 1 1 Equity contracts GMWB and GMAB Benefits, claims, losses and settlement expenses (873 ) (812 ) Equity indexed annuities Interest credited to fixed accounts (2 ) Equity indexed annuities embedded derivatives Interest credited to fixed accounts 1 Stock market certificates Banking and deposit interest expense 4 1 Stock market certificates em

Income Taxes

Income Taxes
	6 Months Ended Jun. 30, 2009 USD / shares
Notes to Financial Statements
Income Taxes	11. Income Taxes The Companyseffective tax rates were 24.4%and 18.4% for the three months and six months ended June30,2009, respectively. The Companyseffective tax rates were 11.9%and 7.4% for the three months and six months ended June30,2008, respectively. The Companys effective tax rate for the three months and six months ended June30,2008 included $27million and $65 million, respectively, of tax benefits related to changes in the status of current and closed audits and tax planning initiatives. TheCompany is required to establish a valuation allowance for any portion of the deferred tax assets that management believes will not be realized. Included in deferred tax assets is a significant deferred tax asset relating to capital losses that have been recognized for financial statement purposes but not yet for tax return purposes. Under current U.S.federal income tax law, capital losses generally must be used against capital gain income within five years of the year in which the capital losses are recognized for tax purposes. Significant judgment is required in determining if a valuation allowance should be established, and the amount of such allowance if required. Factors used in making this determination include estimates relating to the performance of the business including the ability to generate capital gains. Consideration is given to, among other things in making this determination, a) future taxable income exclusive of reversing temporary differences and carryforwards, b) future reversals of existing taxable temporary differences, c) taxable income in prior carryback years, and d) tax planning strategies. Based on analysis of theCompanys tax position, management believes it is more likely than not that the results of future operations and implementation of tax planning strategies will generate sufficient taxable income to enable theCompany to utilize all of its deferred tax assets. Accordingly, no valuation allowance for deferred tax assets has been established as of June30,2009 andDecember31, 2008. Included in theCompanys deferred income tax assets are net operating loss carryforwards of $90million which will expire beginning December31,2025 as well as tax credit carryforwards of $137million which will expire beginning December31,2025. The Company also has $39 million of foreign tax credit carryforwards which will expire beginning December31, 2016. As of June30,2009 and December31, 2008, the Company had $56 million of gross unrecognized tax expense. If recognized, approximately $62million, net of federal tax benefits, of unrecognized tax benefits as of June30,2009 and December31,2008, would affect the effective tax rate. TheCompany recognizes interest and penalties related to unrecognized tax benefits as a component of the income tax provision. TheCompany had a receivable of $13million related to the payment of interest and penalties accrued at both June30,2009 and December31, 2008. It is reasonably possible that the total amounts of unrecognized tax benefits will change in the next 12months. However, there are a number of open audits and quantification of a range cannot be made at this time. TheCompany or on

Contingencies

Contingencies
	6 Months Ended Jun. 30, 2009 USD / shares
Notes to Financial Statements
Contingencies	12. Contingencies Owing to prevailing conditions in the credit markets and the isolated default of an unaffiliated structured investment vehicle (SIV) held in the portfolios of money market funds advised by its RiverSource Investments LLC subsidiary (the 2a-7 Funds), the Company intends to monitor the net asset value of the 2a-7 Funds and may in its judgment as circumstances warrant from time to time offer to purchase amounts of defaulted unaffiliated SIV securities at par from, or inject capital to, one or more of the 2a-7 Funds. Management expects this to have an immaterial impact in subsequent periods. The Company has not provided a formal capital support agreement or net asset value guarantee to any of the 2a-7 Funds. The Company and its subsidiaries are involved in the normal course of business in legal, regulatory and arbitration proceedings, including class actions, concerning matters arising in connection with the conduct of its activities as a diversified financial services firm. These include proceedings specific to the Company as well as proceedings generally applicable to business practices in the industries in which it operates. The Company can also be subject to litigation arising out of its general business activities, such as its investments, contracts, leases and employment relationships. Uncertain economic conditions and heightened volatility in the financial markets, such as those which have been experienced for over the past year, may increase the likelihood that clients and other persons or regulators may present or threaten legal claims or that regulators increase the scope or frequency of examinations of the Company or the financial services industry generally. As with other financial services firms, the level of regulatory activity and inquiry concerning the Companys businesses remains elevated. From time to time, the Company receives requests for information from, and/or has been subject to examination by, the Securities and Exchange Commission (SEC), Financial Industry Regulatory Authority (FINRA), Office of Thrift Supervision (OTS), state insurance regulators, state attorneys general and various other governmental and quasi-governmental authorities concerning the Companys business activities and practices, and the practices of the Companys financial advisors. Pending matters about which the Company has recently received information requests include: sales and product or service features of, or disclosures pertaining to, mutual funds, annuities, equity and fixed income securities, insurance products, brokerage services, financial plans and other advice offerings; supervision of the Companys financial advisors; supervisory practices in connection with financial advisors outside business activities; sales practices and supervision associated with the sale of fixed and variable annuities; the delivery of financial plans and the suitability of particular trading strategies. The number of reviews and investigations has increased in recent years with regard to many firms in the financial services industry, including Ameriprise Financial. The Company has cooperated and will continue to cooperate with the appli

Guarantees

Guarantees
	6 Months Ended Jun. 30, 2009 USD / shares
Notes to Financial Statements
Guarantees	13. Guarantees An unaffiliated third party is providing liquidity to clients of Securities America,Inc. (SAI) registered representatives that have assets in the Reserve Primary Fund that have been blocked from redemption and frozen by the Reserve Fund since September16,2008. The Company has agreed to indemnify the unaffiliated third party up to $10million until April15,2015, for costs incurred as a result of an arbitration or litigation initiated against the unaffiliated third party by clients of SAI registered representatives. In the event that a client defaults in the repayment of an advance, SAI has recourse to collect from the defaulting client. A property fund limited partnership that the Company consolidates has floating rate revolving credit borrowings of $117million as of June30,2009. A Threadneedle subsidiary guarantees the repayment of outstanding borrowings up to the value of the assets of the partnership. The debt is secured by the assets of the partnership and there is no recourse to Ameriprise Financial.

Earnings per Common Share

Earnings per Common Share
	6 Months Ended Jun. 30, 2009 USD / shares
Notes to Financial Statements
Earnings per Common Share	14. Earnings per Common Share Thecomputations of basic and diluted earnings per common share are as follows: Three Months Ended June30, Six Months Ended June30, 2009 2008 2009 2008 (in millions, except per share amounts) Numerator: Net income attributable to Ameriprise Financial $ 95 $ 210 $ 225 $ 401 Denominator: Basic: Weighted-average common shares outstanding 228.8 223.2 225.6 225.8 Effect of potentially dilutive nonqualified stock options and other share-based awards 1.2 2.8 1.2 3.0 Diluted: Weighted-average common shares outstanding 230.0 226.0 226.8 228.8 Earnings per common share: Basic $ 0.41 $ 0.94 $ 1.00 $ 1.77 Diluted 0.41 0.93 0.99 1.75 Basic weighted average common shares for the three months and six months ended June30,2009 included 3.9million and 3.6million, respectively, of vested, nonforfeitable restricted stock units and 4.7million and 4.8million, respectively, of non-vested restricted stock awards and restricted stock units that are forfeitable but receive nonforfeitable dividends. Potentially dilutive securities include nonqualified stock options and other share-based awards. Basic weighted average common shares for both the three months and the six months ended June30,2008 included 2.4million vested nonforfeitable restricted stock units and 3.2million non-vested restricted stock awards and restricted stock units that are forfeitable but receive nonforfeitable dividends.

Variable Interest Entities

Variable Interest Entities
	6 Months Ended Jun. 30, 2009 USD / shares
Notes to Financial Statements
Variable Interest Entities	15. Variable Interest Entities TheCompany consolidates all VIEs for which it is considered to be the primary beneficiary. Thedetermination as to whether an entity is a VIE is based on the amount and nature of the Companys equity investment in the entity. The Company also considers other characteristics such as the ability to influence the decision making about the entitys activities and how the entity is financed. Thedetermination as to whether theCompany is considered to be the primary beneficiary is based on whether theCompany will absorb a majority of the VIEs expected losses, receive a majority of the VIEs expected residual return or both. TheCompany consolidates a VIE for which it is considered the primary beneficiary. The Company had investments of $10million and non-recourse debt of $6million on the Consolidated Balance Sheets as of June30,2009 and December31,2008, respectively, related to this entity. TheCompany has variable interests for which it is not the primary beneficiary and, therefore, does not consolidate. TheCompanys maximum exposure to loss as a result of its investment in these entities is limited to its carrying value. TheCompany has no obligation to provide further financial or other support to the VIEs nor has the Company provided any additional support to the VIEs other than services it is separately compensated for through management agreements. TheCompany had no liabilities recorded as of June30,2009 and December31, 2008 related to these entities. TheCompany is a limited partner in affordable housing partnerships which qualify for government sponsored low income housing tax credit programs. In most cases, theCompany has less than 50%interest in the partnerships sharing in benefits and risks with other limited partners in proportion to the Companys ownership interest. In the limited cases in which theCompany has a greater than 50%interest in affordable housing partnerships, it was determined that the relationship with the general partner is an agent relationship and the general partner was most closely related to the partnership as it is the key decision maker and controls the operations. The carrying values of the affordable housing partnerships are reflected in investments and were $41million and $54million as of June30,2009 and December31, 2008, respectively. Forthe collateralized debt obligations (CDOs) managed by theCompany, theCompany has evaluated its variability in losses and returns considering its investment levels, which are less than 50%of the residual tranches, and the fees received from managing the structures and has determined that consolidation is not required. The carrying values of the CDOs are reflected in investments and were $49million and $50million as of June30,2009 and December31, 2008, respectively. TheCompany manages $6.7billion of underlying collateral consisting primarily of below investment grade syndicated bank loans within the CDOs.

Segment Information

Segment Information
	6 Months Ended Jun. 30, 2009 USD / shares
Notes to Financial Statements
Segment Information	16. Segment Information The Companys five segments are Advice Wealth Management, Asset Management, Annuities, Protection and Corporate Other. Thefollowing is a summary of assets by segment: June30, 2009 December31, 2008 (in millions) Advice Wealth Management $ 11,776 $ 10,624 Asset Management 5,621 5,363 Annuities 67,826 63,659 Protection 15,300 14,270 Corporate Other 2,691 1,661 Total assets $ 103,214 $ 95,577 Thefollowing is a summary of segment operating results: Three Months Ended June30, 2009 Advice Wealth Asset Corporate Management Management Annuities Protection Other Eliminations Consolidated (in millions) Revenue from external customers $ 620 $ 276 $ 551 $ 476 $ (8 ) $ $ 1,915 Intersegment revenue 206 11 11 21 1 (250 ) Total revenues 826 287 562 497 (7 ) (250 ) 1,915 Banking and deposit interest expense 38 2 (2 ) 38 Net revenues 788 285 562 497 (5 ) (250 ) 1,877 Pretax income (loss) $ (3 ) $ (20 ) $ 94 $ 110 $ (66 ) $ 115 Income tax provision 28 Net income 87 Less: Net loss attributable to noncontrolling interests (8 ) Net income attributable to Ameriprise Financial $ 95 Three Months Ended June30, 2008 Advice Wealth Asset Corporate Management Management Annuities Protection Other Eliminations Consolidated (in millions) Revenue from external customers $ 703 $ 359 $ 475 $ 461 $ 12 $ $ 2,010 Intersegment revenue 230 6 20 18 2 (276 ) Total revenues 933 365 495 479 14 (276 ) 2,010 Banking and deposit interest expense 42 1 1 (2 ) 42 Net revenues 891 364 495 478 14 (274 ) 1,968 Pretax income (loss) $ 51 $ 37 $ 77 $ 113 $ (46 ) $ 232 Income tax provision 27 Net income 205 Less: Net loss attributable to noncontrolling interests (5 ) Net income attributable to Ameriprise Financial $ 210 Six Months Ended June30, 2009 Advice Wealth Asset Corporate Management Management Annuities Protection Other Eliminations Consolidated (in millions) Revenue from external customers $ 1,153 $ 515 $ 1,022 $ 964 $ 22 $ $ 3,676 Intersegment revenue 443 21 32 29 1 (526 ) Total revenues 1,596 536 1,054 993 23 (526 ) 3,676 Banking and deposit interest expense 79 3 (1 ) (1 ) 80 Net revenues 1,517 533 1,054 993 24 (525 ) 3,596 Pretax income (loss) $ (64 ) $ (42 ) $ 223 $ 222 $ (90 )

Document and Entity Information

Document and Entity Information (USD $)
In Millions, except Share data	6 Months Ended Jun. 30, 2009	Jul. 24, 2009	Jun. 30, 2008
Document Entity Information
Entity Registrant Name	AMERIPRISE FINANCIAL INC
Entity Central Index Key	0000820027
Document Type	10-Q
Document Period End Date	2009-06-30
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$8,800
Entity Common Stock, Shares Outstanding		255,034,920