Ameriprise Financial (AMP) 10-Q 3 Nov 09 2009 Q3 Quarterly report Financial data

Consolidated Statements of Oper

Consolidated Statements of Operations (USD $)
In Millions, except Per Share data	3 Months Ended Sep. 30, 2009	3 Months Ended Sep. 30, 2008		9 Months Ended Sep. 30, 2009	9 Months Ended Sep. 30, 2008
Revenues
Management and financial advice fees	$689	$721		$1,849	$2,292
Distribution fees	367	376		1,029	1,231
Net investment income	542	62		1,477	856
Premiums	276	264		811	777
Other revenues	109	249		493	564
Total revenues	1,983	1,672		5,659	5,720
Banking and deposit interest expense	33	43		113	132
Total net revenues	1,950	1,629		5,546	5,588
Expenses
Distribution expenses	466	461		1,274	1,499
Interest credited to fixed accounts	232	200		674	587
Benefits, claims, losses and settlement expenses	306	196		993	794
Amortization of deferred acquisition costs	(64)	240		97	538
Interest and debt expense	45	27		99	81
General and administrative expense	625	681		1,820	1,843
Total expenses	1,610	1,805		4,957	5,342
Pretax income (loss)	340	(176)		589	246
Income tax provision (benefit)	80	(92)		126	(61)
Net income (loss)	260	(84)		463	307
Less: Net loss attributable to noncontrolling interests		(14)		(22)	(24)
Net income (loss) attributable to Ameriprise Financial	260	(70)		485	331
Earnings (loss) per share attributable to Ameriprise Financial common shareholders
Basic	$1	-0.32		2.05	1.48
Diluted	$1	-0.32	[1]	2.04	1.46
Weighted average common shares outstanding
Basic	258.7	219.1		236.6	223.6
Diluted	260.7	221.7		238	226.4
Cash dividends paid per common share	0.17	0.17		0.51	0.47
Net investment income:
Net investment income before impairment losses on securities	561			1,562
Total other-than-temporary impairment losses on securities	(18)			(68)
Portion of loss recognized in other comprehensive income	(1)			(17)
Net impairment losses recognized in net investment income	(19)			(85)
Net investment income	$542	$62		$1,477	$856
[1]Diluted shares used in this calculation represent basic shares due to the net loss. Using actual diluted shares would result in anti-dilution.

Consolidated Balance Sheets

Consolidated Balance Sheets (USD $)
In Millions	Sep. 30, 2009	Dec. 31, 2008
Assets
Cash and cash equivalents	$3,580	$6,228
Investments	36,847	27,522
Separate account assets	55,576	44,746
Receivables	4,247	3,887
Deferred acquisition costs	4,323	4,383
Restricted and segregated cash	1,822	1,883
Other assets	4,806	6,928
Total assets	111,201	95,577
Liabilities:
Future policy benefits and claims	31,042	29,293
Separate account liabilities	55,576	44,746
Customer deposits	9,028	8,229
Debt	2,076	2,027
Accounts payable and accrued expenses	765	887
Other liabilities	3,320	3,928
Total liabilities	101,807	89,110
Ameriprise Financial:
Common shares ($.01 par value; shares authorized, 1,250,000,000; shares issued, 295,679,166 and 256,432,623, respectively)	3	3
Additional paid-in capital	5,699	4,688
Retained earnings	5,091	4,592
Treasury shares, at cost (40,619,335 and 39,921,924 shares, respectively)	(2,021)	(2,012)
Accumulated other comprehensive income (loss), net	277	(1,093)
Total Ameriprise Financial shareholders' equity	9,049	6,178
Noncontrolling interests	345	289
Total equity	9,394	6,467
Total liabilities and equity	$111,201	$95,577

Consolidated Balance Sheets - P

Consolidated Balance Sheets - Parenthetical Disclosures (USD $)
	Sep. 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)	295,679,166	256,432,623
Treasury shares (in shares)	40,619,335	39,921,924

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (USD $)
In Millions	9 Months Ended Sep. 30, 2009	9 Months Ended Sep. 30, 2008
Cash Flows from Operating Activities
Net income	$463	$307
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Capitalization of deferred acquisition and sales inducement costs	(560)	(543)
Amortization of deferred acquisition and sales inducement costs	95	599
Depreciation, amortization and accretion, net	101	214
Deferred income tax expense (benefit)	103	(187)
Share-based compensation	138	114
Net realized investment gains	(132)	(5)
Other-than-temporary impairments recognized in net investment income and provision for loan losses	107	380
Changes in operating assets and liabilities:
Segregated cash	82	(663)
Trading securities and equity method investments, net	253	115
Future policy benefits and claims, net	294	341
Receivables	(207)	(588)
Brokerage deposits	23	834
Accounts payable and accrued expenses	(128)	(413)
Liability for derivatives collateral held	(1,659)	(102)
Other, net	89	(214)
Net cash (used in) provided by operating activities	(938)	189
Available-for-Sale securities:
Proceeds from sales	3,910	316
Maturities, sinking fund payments and calls	4,375	2,864
Purchases	(14,497)	(2,393)
Proceeds from sales and maturities of commercial mortgage loans	235	265
Funding of commercial mortgage loans	(83)	(88)
Proceeds from sales of other investments	47	40
Purchase of other investments	(14)	(345)
Purchase of land, buildings, equipment and software	(56)	(100)
Change in policy loans, net	9	(26)
Change in restricted cash	16	151
Change in consumer banking loans and credit card receivables, net	(107)	(60)
Other, net		3
Net cash (used in) provided by investing activities	(6,165)	627
Investment certificates and banking time deposits:
Proceeds from additions	2,141	1,813
Maturities, withdrawals and cash surrenders	(2,515)	(1,033)
Change in other banking deposits	1,157	(87)
Policyholder and contractholder account values:
Consideration received	4,386	1,569
Net transfers from separate accounts	174
Surrenders and other benefits	(1,587)	(2,223)
Deferred premium options, net	(38)	(40)
Proceeds from issuance of common stock, net of issuance costs	869
Proceeds from issuance of debt, net of issuance costs	553	73
Repayments of debt	(550)	(6)
Dividends paid to shareholders	(118)	(105)
Repurchase of common shares	(9)	(636)
Exercise of stock options	1	9
Excess tax benefits from share-based compensation	12	7
Noncontrolling interests investments in subsidiaries	7	108
Distributions to noncontrolling interests	(42)	(33)
Other, net	(2)	(1)
Net cash provided by (used in) financing activities	4,439	(585)
Effect of exchange rate changes on cash	16	(24)
Net increase (decrease) in cash and cash equivalents	(2,648)	207
Cash and cash equivalents at beginning of period	6,228	3,836
Cash and cash equivalents at end of period	3,580	4,043
Supplemental Disclosures:
Interest paid on debt	84	61
Income taxes paid, net	$13	$165

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)				331		(24)	307
Other comprehensive income (loss), net:
Change in net unrealized securities losses					(778)		(778)
Change in net unrealized derivative losses					(2)		(2)
Foreign currency translation adjustment					(26)	(37)	(63)
Total comprehensive income (loss)							(536)
Dividends paid to shareholders				(105)			(105)
Noncontrolling interests investments in subsidiaries						108	108
Distributions to noncontrolling interests						(33)	(33)
Repurchase of common shares, value			(636)				(636)
Repurchase of common shares, shares	(13,293,913)
Share-based compensation plans, value		74	82	(3)			153
Share-based compensation plans, shares	2,189,349
Ending balance at Sep. 30, 2008	3	4,704	(2,021)	5,004	(973)	392	7,109
Number of outstanding shares, ending balance at Sep. 30, 2008	216,643,279
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)				485		(22)	463
Other comprehensive income (loss), net:
Change in net unrealized securities losses					1,411		1,411
Change in noncredit related impairments on securities and net unrealized securities losses on previously impaired securities					41		41
Change in net unrealized derivative losses					(1)		(1)
Foreign currency translation adjustment					51	24	75
Total comprehensive income (loss)							1,989
Issuance of common stock, value		869					869
Issuance of common stock, shares	36,000,000
Dividends paid to shareholders				(118)			(118)
Noncontrolling interests investments in subsidiaries						96	96
Distributions to noncontrolling interests						(42)	(42)
Repurchase of common shares, value			(9)				(9)
Repurchase of common shares, shares	(697,411)
Share-based compensation plans, value		142					142
Share-based compensation plans, shares	3,246,543
Ending balance at Sep. 30, 2009	$3	$5,699	($2,021)	$5,091	$277	$345	$9,394
Number of outstanding shares, ending balance at Sep. 30, 2009	255,059,831

Basis of Presentation

Basis of Presentation
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements
Basis of Presentation	1. Basis of Presentation 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 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. 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. Results of operations reported for interim periods are not necessarily indicative of results for the entire year. These Consolidated Financial Statements and Notes should be read in conjunction with the Consolidated Financial Statements and Notes in the Companys Annual Report on Form 10-K for the year ended December 31, 2008, filed with the Securities and Exchange Commission (SEC) on March 2, 2009. The Company evaluated events or transactions that may have occurred after the balance sheet date for potential recognition or disclosure through November 2, 2009, the date the financial statements were issued.

Recent Accounting Pronouncement

Recent Accounting Pronouncements
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements
Recent Accounting Pronouncements	2. Recent Accounting Pronouncements Adoption of New Accounting Standards The Hierarchy of GAAP In June 2009, the Financial Accounting Standards Board (FASB) established the FASB Accounting Standards CodificationTM(Codification) as the single source of authoritative accounting principles recognized by the FASB in the preparation of financial statements in conformity with GAAP. The Codification supersedes existing nongrandfathered, non-SEC accounting and reporting standards. The Codification did not change GAAP but rather organized it into a hierarchy where all guidance within the Codification carries an equal level of authority. The Codification became effective on July 1, 2009. The Codification did not have a material effect on the Companys consolidated results of operations and financial condition. Subsequent Events In May 2009, the FASB updated the accounting standards on the recognition and disclosure of subsequent events. The standard also requires the disclosure of the date through which subsequent events were evaluated. The standard is effective for interim and annual reporting periods ending after June 15, 2009, and shall be applied prospectively. The Company adopted the standard in the second quarter of 2009. The adoption did not have a material effect on the Companys consolidated results of operations and financial condition. Fair Value In April 2009, the FASB updated the accounting standards to provide guidance on estimating the fair value of a financial asset or liability when the trade volume and level of activity for the asset or liability have significantly decreased relative to historical levels. The standard requires entities to disclose the inputs and valuation techniques used to measure fair value and any changes in valuation inputs or techniques. In addition, debt and equity securities as defined by GAAP shall be disclosed by major category. This standard is effective for interim and annual reporting periods ending after June 15, 2009, with early adoption permitted for periods ending after March 15, 2009, and is to be applied prospectively. The Company early adopted the standard in the first quarter of 2009. The adoption did not have a material effect on the Companys consolidated results of operations and financial condition. In April 2009, the FASB updated the accounting standards to require interim disclosures about the fair value of in-scope financial instruments that are not reported at fair value. This standard is effective for interim and annual reporting periods ending after June 15, 2009, with early adoption permitted for periods ending after March 15, 2009. The Company applied the disclosure requirements of the standard in the first quarter of 2009. See Note 9 for the required disclosures. In September 2006, the FASB updated the accounting standards to define fair value, establish a framework for measuring fair value and expand disclosures about fair value measurements. The new standard applies under other accounting standards that require or permit fair value measurements. Accordingly, the standard does not require any new fair value measurements. The provisions of the st

Investments

Investments
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements
Investments	3. Investments The following is a summary of investments: September 30, 2009 December 31, 2008 (in millions) Available-for-Sale securities, at fair value $ 32,625 $ 22,873 Commercial mortgage loans, net 2,706 2,887 Trading securities 313 501 Policy loans 719 729 Other investments 484 532 Total $ 36,847 $ 27,522 Available-for-Sale Securities Effective January 1, 2009, the Company early adopted an accounting standard that 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. For securities 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 oth

Deferred Acquisition Costs and

Deferred Acquisition Costs and Deferred Sales Inducement Costs
	9 Months Ended Sep. 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 During the third quarter of 2009 and 2008, the Company completed the annual detailed review of valuation assumptions for RiverSource Life products. In addition, during the third quarter of 2008, the Company converted to a new industry standard valuation system that provides enhanced modeling capabilities. The total pretax impacts on the Companys assets and liabilities attributable to the review of valuation assumptions during the third quarter of 2009 and 2008 and the valuation system conversion during the third quarter of 2008 were as follows: Future Policy Other Benefits and Other Balance Sheet Impact Debit (Credit) Receivables DAC Assets Claims Liabilities Total (in millions) 2009 period $ (65 ) $ 119 $ 9 $ 71 $ $ 134 2008 period 92 (81 ) (5 ) 95 5 106 The total pretax impacts on the Companys revenues and expenses attributable to the review of the valuation assumptions for the three and nine months ended September 30, 2009 and 2008 and the valuation system conversion for the three and nine months ended September 30, 2008 were as follows: Benefits, Claims, Losses Other Distribution and Settlement Amortization Pretax Benefit (Charge) Premiums Revenues Expenses Expenses of DAC Total (in millions) 2009 period $ $ (65 ) $ $ 80 $ 119 $ 134 2008 period 2 95 1 89 (81 ) 106 The balances of and changes in DAC were as follows: 2009 2008 (in millions) Balance at January 1 $ 4,383 $ 4,408 Cumulative effect of accounting change 36 Capitalization of acquisition costs 499 479 Amortization, excluding impacts of valuation assumptions review and valuation system conversion (216 ) (457 ) Amortization, impact of valuation assumptions review and valuation system conversion 119 (81 ) Impact of change in net unrealized securities losses (462 ) (11 ) Balance at September 30 $ 4,323 $ 4,374 The balances of and changes in DSIC, included in other assets on the Consolidated Balance Sheets, were as follows: 2009 2008 (in millions) Balance at January 1 $ 518 $ 511 Cumulative effect of accounting change 9 Capitalization of sales inducement costs 61 64 Amortization, excluding impacts of valuation assumptions review and valuation system conversion (7 ) (55 ) Amortization, impact of valuation assumptions review and valuation system conversion 9 (6 ) Impact of change in net unrealized securities losses (67 ) Balance at September 30 $ 514 $ 523 The Company adopted a new accounting standard on the recognition and presentation of other-than-temporary

Future Policy Benefits and Clai

Future Policy Benefits and Claims and Separate Account Liabilities
	9 Months Ended Sep. 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: September 30, 2009 December 31, 2008 (in millions) Fixed annuities $ 16,551 $ 14,058 Equity indexed annuities accumulated host values 183 228 Equity indexed annuities embedded derivatives 13 16 Variable annuities fixed sub-accounts 6,040 5,623 Variable annuity guaranteed minimum withdrawal benefits (GMWB) 468 1,471 Variable annuity guaranteed minimum accumulation benefits (GMAB) 151 367 Other variable annuity guarantees 16 67 Total annuities 23,422 21,830 Variable universal life (VUL)/universal life (UL) insurance 2,584 2,526 Other life, disability income and long term care insurance 4,548 4,397 Auto, home and other insurance 373 368 Policy claims and other policyholders funds 115 172 Total $ 31,042 $ 29,293 Separate account liabilities consisted of the following: September 30, 2009 December 31, 2008 (in millions) Variable annuity variable sub-accounts $ 46,959 $ 37,657 VUL insurance variable sub-accounts 5,033 4,091 Other insurance variable sub-accounts 45 39 Threadneedle investment liabilities 3,539 2,959 Total $ 55,576 $ 44,746

Variable Annuity and Insurance

Variable Annuity and Insurance Guarantees
	9 Months Ended Sep. 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 gain gross-up (GGU) benefits. In addition, the Company offers contracts with GMWB provisions. The Company suspended sales of contracts with GMAB provisions June 1, 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: September 30, 2009 December 31, 2008 Contract Weighted Contract Weighted Variable annuity Total value in Net average Total value in Net average guarantees by contract separate amount attained contract separate amount attained benefit type(1) value accounts at risk(2) age value accounts at risk(2) age (in millions, except age) GMDB: Return of Premium $ 29,238 $ 26,816 $ 1,445 61 $ 22,249 $ 20,153 $ 4,873 61 Six-Year Reset 13,805 11,098 1,185 61 12,719 10,063 2,802 61 One-Year Ratchet 6,883 6,189 1,082 63 5,770 5,061 2,163 62 Five-Year Ratchet 1,197 1,119 56 59 951 888 199 59 Other 566 525 112 67 471 429 192 66 Total GMDB $ 51,689 $ 45,747 $ 3,880 61 $ 42,160 $ 36,594 $ 10,229 61 GGU death benefit $ 824 $ 745 $ 69 63 $ 699 $ 619 $ 65 63 GMIB $ 626 $ 578 $ 145 63 $ 567 $ 511 $ 245 63 GMWB: GMWB $ 4,110 $ 3,994 $ 591 63 $ 3,513 $ 3,409 $ 1,312 63 GMWB for life 13,770 13,189 1,077 63 9,194 8,764 2,704 63 Total GMWB $ 17,880 $ 17,183 $ 1,668 63 $ 12,707 $ 12,173 $ 4,016 63 GMAB $ 2,813 $ 2,743 $ 220 56 $ 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 annu

Customer Deposits

Customer Deposits
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements
Customer Deposits	7. Customer Deposits Customer deposits consisted of the following: September 30, 2009 December 31, 2008 (in millions) Fixed rate certificates $ 3,549 $ 3,909 Stock market based certificates 854 909 Stock market embedded derivative reserve 28 5 Other 60 62 Less: accrued interest classified in other liabilities (39 ) (11 ) Total investment certificate reserves 4,452 4,874 Brokerage deposits 2,011 1,988 Banking deposits 2,565 1,367 Total $ 9,028 $ 8,229

Debt

Debt
	9 Months Ended Sep. 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 September 30, December 31, September 30, December 31, 2009 2008 2009 2008 (in millions) Senior notes due 2010 $ 340 $ 800 5.4 % 5.4 % Senior notes due 2015 700 700 5.7 5.7 Senior notes due 2019 300 7.3 Senior notes due 2039 200 7.8 Junior subordinated notes due 2066 322 457 7.5 7.5 Floating rate revolving credit borrowings due 2013 135 64 4.6 3.6 Floating rate revolving credit borrowings due 2014 73 5.2 Municipal bond inverse floater certificates due 2021 6 6 0.4 2.2 Total $ 2,076 $ 2,027 In July 2009, the Company purchased $450 million aggregate principal amount of its 5.35% senior notes due November 15, 2010, pursuant to a cash tender offer. The tender offer consideration per $1,000 principal amount of these notes accepted for purchase was $1,000, with an early tender payment of $30. Payments for these 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. The Company also repurchased $10 million of these notes in the second quarter of 2009 in open market transactions. On June 8, 2009, the Company issued $300 million of unsecured senior notes which mature June 28, 2019 and carry a fixed interest rate of 7.30%. Interest payments are due semi-annually in arrears on June 28 and December 28, commencing December 28, 2009. On June 3, 2009, the Company issued $200 million of unsecured senior notes which mature June 15, 2039 and carry a fixed interest rate of 7.75%. Interest payments are due quarterly in arrears on March 15, June 15, September 15 and December 15, commencing September 15, 2009. In 2009, the Company extinguished $135 million of its 7.5% junior subordinated notes due June 1, 2066 in open market transactions. The floating rate revolving credit borrowings due in 2013 and 2014 are non-recourse debt related to certain consolidated property funds. The debt will be extinguished with the cash flows from the sale of the investments held within the partnerships.

Fair Values of Assets and Liabi

Fair Values of Assets and Liabilities
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements
Fair Values of Assets and Liabilities	9. Fair Values of Assets and Liabilities GAAP 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 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 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 mortgage backed securities, asset backed securities, municipal and corporate bonds, U.S. and foreign government and agency securities, and seed money and other investments in certain hedge funds. Level 3 securitie

Derivatives and Hedging Activit

Derivatives and Hedging Activities
	9 Months Ended Sep. 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 September30,2009: 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 $ 240 Other liabilities $ 231 Equity contracts GMWB and GMAB Other assets 572 Other liabilities 399 GMDB Other liabilities 1 Equity indexed annuities Other assets 2 Equity indexed annuities embedded derivatives Future policy benefits and claims 13 Stock market certificates Other assets 152 Other liabilities 124 Stock market certificates embedded derivatives Customer deposits 28 Foreign exchange contracts Seed money Other assets 2 Other GMWB and GMAB embedded derivatives(1) Future policy benefits and claims 610 Total $ 968 $ 1,406 (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 on the Consolidated Statements ofOperations: Amount of Gain (Loss) on Derivatives Recognized in Income Three Nine Months Ended Months Ended Derivatives not designated Location of Gain (Loss) on Derivatives September30, September30, as hedging instruments Recognized in Income 2009 2009 (in millions) Interest rate contracts GMWB and GMAB Benefits, claims, losses and settlement expenses $ 63 $ (322 ) Interest rate lock commitments Other revenues (1 ) Equity contracts GMWB and GMAB Benefits, claims, losses and settlement expenses (266 ) (1,078 ) GMDB Benefits, claims, losses and settlement expenses (7 ) (7 ) Equity indexed annuities Interest credited to fixed accounts 3 1 Equity indexed annuities embedded derivatives Interest credited to fixed accounts 2 3 Stock market certificates Banking and deposit interest expense 9

Income Taxes

Income Taxes
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements
Income Taxes	11. Income Taxes The Companyseffective tax rates were 23.7%and 21.5% for the three months and nine months ended September30,2009, respectively. The Companyseffective tax rates were 52.5%and (24.9)% for the three months and nine months ended September30,2008, respectively. The effective tax rate for the three months ended September30,2008 included a $14million tax benefit from finalizing prior period tax returns. The effective tax rate for the nine months ended September30, 2008 included $79million in tax benefits related to changes in the status of current audits and closed audits, tax planning initiatives, and the finalization of prior year tax returns. 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 September30,2009 andDecember31, 2008. Included in theCompanys deferred income tax assets are net operating loss carryforwards of $125million which will expire beginning December31,2025 as well as tax credit carryforwards of $144million which will expire beginning December31,2025. The Company also has $20million of foreign tax credit carryforwards which will expire beginning December31, 2016. As of September30,2009 and December31, 2008, the Company had $44 million and $56million of gross unrecognized tax expense, respectively. If recognized, approximately $81 million and $62million, net of federal tax benefits, of unrecognized tax benefits as of September30,2009 and December31,2008, respectively, would affect the effective tax rate. TheCompany recognizes interest and penalties related to unrecognized tax benefits as a component of the income tax provision. The Company recognized a net reduction of $1 million in interest and penalties for the nine months ended September30, 2009. At September3

Contingencies

Contingencies
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements
Contingencies	12. Contingencies Owing to prevailing conditions in the credit markets and the isolated defaults of unaffiliated structured investment vehicles (SIVs) held in the portfolios of money market funds advised by its RiverSource Investments LLC subsidiary (the 2a-7 Funds), the Company continues to monitor the net asset value of the 2a-7 Funds and as circumstances warrant from time to time 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 heightened volatility in the financial markets, such as those which have been experienced for over the past year, and significant regulatory reform proposals 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 SEC, Financial Industry Regulatory Authority (FINRA), Office of Thrift Supervision (OTS), state insurance and securities 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, investments and product selection processes. 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 applicable regulators regarding their in

Guarantees

Guarantees
	9 Months Ended Sep. 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. Certain property fund limited partnerships that the Company consolidates have floating rate revolving credit borrowings of $208million as of September30,2009. Certain Threadneedle subsidiaries guarantee the repayment of outstanding borrowings up to the value of the assets of the partnerships. The debt is secured by the assets of the partnerships and there is no recourse to Ameriprise Financial.

Pending Transaction

Pending Transaction
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements
Pending Transaction	14. Pending Transaction On September30, 2009, the Company announced a definitive agreement to acquire the long-term asset management business of Columbia Management. The total consideration to be paid will be between $900 million and $1.2 billion based on net asset flows at Columbia Management before closing. The acquisition is expected to be funded through the use of cash on hand and is expected to close in the spring of 2010, subject to regulatory review and approval.

Earnings per Common Share

Earnings per Common Share
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements
Earnings per Common Share	15. Earnings per Share Attributable to Ameriprise Financial Common Shareholders Thecomputations of basic and diluted earnings per share attributable to Ameriprise Financial common shareholders are as follows: Three Months Ended Nine Months Ended September30, September30, 2009 2008 2009 2008 (in millions, except per share amounts) Numerator: Net income (loss) attributable to Ameriprise Financial $ 260 $ (70 ) $ 485 $ 331 Denominator: Basic: Weighted-average common shares outstanding 258.7 219.1 236.6 223.6 Effect of potentially dilutive nonqualified stock options and other share-based awards 2.0 2.6 1.4 2.8 Diluted: Weighted-average common shares outstanding 260.7 221.7 238.0 226.4 Earnings (loss) per share attributable to Ameriprise Financial common shareholders: Basic $ 1.00 $ (0.32 ) $ 2.05 $ 1.48 Diluted 1.00 (0.32 )(1) 2.04 1.46 (1) Diluted shares used in this calculation represent basic shares due to the net loss. Using actual diluted shares would result in anti-dilution. Basic weighted average common shares for the three months and nine months ended September30,2009 included 4.6million and 4.7million, respectively, of non-vested restricted stock awards and restricted stock units that are forfeitable but receive nonforfeitable dividends and 3.4million vested nonforfeitable restricted stock units for both periods. Potentially dilutive securities include nonqualified stock options and other share-based awards. Basic weighted average common shares for the three months and the nine months ended September30,2008 included 1.9million and 2.2 million, respectively, of vested, nonforfeitable restricted stock units and 3.2million non-vested restricted stock awards and restricted stock units that are forfeitable but receive nonforfeitable dividends for both periods.

Variable Interest Entities

Variable Interest Entities
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements
Variable Interest Entities	16. 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 both September30,2009 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 September30,2009 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 $33million and $54million as of September30,2009 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 $55million and $50million as of September30,2009 and December31, 2008, respectively. TheCompany manages $6.6billion of underlying collateral consisting primarily of below investment grade syndicated bank loans within the CDOs.

Segment Information

Segment Information
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements
Segment Information	17. 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: September30, 2009 December31, 2008 (in millions) Advice Wealth Management $ 11,705 $ 10,624 Asset Management 6,369 5,363 Annuities 74,850 63,659 Protection 16,520 14,270 Corporate Other 1,757 1,661 Total assets $ 111,201 $ 95,577 Thefollowing is a summary of segment operating results: Three Months Ended September30, 2009 Advice Wealth Asset Corporate Management Management Annuities Protection Other Eliminations Consolidated (in millions) Revenue from external customers $ 666 $ 321 $ 571 $ 434 $ (9 ) $ $ 1,983 Intersegment revenue 199 11 20 16 (246 ) Total revenues 865 332 591 450 (9 ) (246 ) 1,983 Banking and deposit interest expense 29 2 2 33 Net revenues 836 330 591 450 (11 ) (246 ) 1,950 Pretax income (loss) $ 12 $ 10 $ 268 $ 145 $ (95 ) $ 340 Income tax provision 80 Net income 260 Less: Net loss attributable to noncontrolling interests Net income attributable to Ameriprise Financial $ 260 Three Months Ended September30, 2008 Advice Wealth Asset Corporate Management Management Annuities Protection Other Eliminations Consolidated (in millions) Revenue from external customers $ 540 $ 302 $ 317 $ 522 $ (9 ) $ $ 1,672 Intersegment revenue 215 5 19 20 (259 ) Total revenues 755 307 336 542 (9 ) (259 ) 1,672 Banking and deposit interest expense 43 2 (2 ) 43 Net revenues 712 305 336 542 (9 ) (257 ) 1,629 Pretax income (loss) $ (77 ) $ 1 $ (34 ) $ 104 $ (170 ) $ (176 ) Income tax benefit (92 ) Net loss (84 ) Less: Net loss attributable to noncontrolling interests (14 ) Net loss attributable to Ameriprise Financial $ (70 ) Nine Months Ended September30, 2009 Advice Wealth Asset Corporate Management Management Annuities Protection Other Eliminations Consolidated (in millions) Revenue from external customers $ 1,819 $ 836 $ 1,593 $ 1,398 $ 13 $ $ 5,659 Intersegment revenue 642 32 52 45 1 (772 ) Total revenues 2,461 868 1,645 1,443 14 (772 ) 5,659

Document and Entity Information

Document and Entity Information (USD $)
In Millions, except Share data	9 Months Ended Sep. 30, 2009	Oct. 23, 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	2009-09-30
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		255,003,596