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SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT
 12 Months Ended
Dec. 31, 2021
Condensed Financial Information Disclosure [Abstract]  
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Parent Company Only)
Schedule I — Condensed Financial Information of Registrant
Condensed Statements of Operations
(Parent Company Only)
Years Ended December 31,
2021
2020
2019
(in millions)
Revenues
Management and financial advice fees$— $— $(1)
Net investment income27 23 9 
Other revenues9 15 14 
Gain on disposal of business
— — 213 
Total revenues36 38 235 
Banking and deposit interest expense2 3 9 
Total net revenues34 35 226 
Expenses
Benefits, claims, losses and settlement expenses— — 49 
Distribution expenses7 12 24 
Interest and debt expense102 105 126 
General and administrative expense258 198 244 
Total expenses367 315 443 
Pretax loss before equity in earnings of subsidiaries(333)(280)(217)
Income tax provision (benefit)
157 (87)(38)
Loss before equity in earnings of subsidiaries(490)(193)(179)
Equity in earnings of subsidiaries, net of tax
3,250 1,727 2,072 
Net income2,760 1,534 1,893 
Other comprehensive income (loss), net of tax(626)367 553 
Total comprehensive income$2,134 $1,901 $2,446 
See Notes to Condensed Financial Information of Registrant.
Schedule I — Condensed Financial Information of Registrant
Condensed Balance Sheets
(Parent Company Only)
December 31,
2021
2020
(in millions, except share amounts)
Assets
Cash and cash equivalents$827 $1,071 
Investments905 877 
Loans to subsidiaries483 247 
Due from subsidiaries242 497 
Receivables4 2 
Land, buildings, equipment, and software, net of accumulated depreciation of $973 and $929, respectively
193 208 
Investments in subsidiaries7,010 7,153 
Other assets1,308 1,334 
Total assets$10,972 $11,389 
Liabilities and Shareholders’ Equity
Liabilities:
Accounts payable and accrued expenses$1,118 $936 
Due to subsidiaries83 60 
Borrowings from subsidiaries446 494 
Long-term debt2,829 2,831 
Other liabilities811 1,201 
Total liabilities5,287 5,522 
Shareholders’ Equity:
Common shares ($.01 par value; shares authorized, 1,250,000,000; shares issued, 334,828,117 and 332,390,132, respectively)
3 3 
Additional paid-in capital9,220 8,822 
Retained earnings17,525 15,292 
Treasury shares, at cost (223,967,107 and 215,624,519 shares, respectively)
(21,066)(18,879)
Accumulated other comprehensive income (loss), net of tax, including amounts applicable to equity investments in subsidiaries3 629 
Total shareholders’ equity5,685 5,867 
Total liabilities and equity$10,972 $11,389 
See Notes to Condensed Financial Information of Registrant.
Schedule I — Condensed Financial Information of Registrant
Condensed Statements of Cash Flows
(Parent Company Only)
Years Ended December 31,
2021
2020
2019
(in millions)
Cash Flows from Operating Activities
Net income$2,760 $1,534 $1,893 
Equity in earnings of subsidiaries(3,250)(1,727)(2,072)
Dividends received from subsidiaries4,027 2,018 2,721 
Gain on disposal of business before affinity partner payment— — (313)
Other operating activities, primarily with subsidiaries343 282 596 
Net cash provided by (used in) operating activities
3,880 2,107 2,825 
Cash Flows from Investing Activities
Available-for-Sale securities:
Proceeds from sales— 922 — 
Maturities, sinking fund payments and calls93 161 204 
Purchases(82)(15)(1,153)
Proceeds from sale of other investments1 — 6 
Purchase of other investments(16)(12)(12)
Proceeds from sale of land, buildings, equipment and software1 2 — 
Purchase of land, buildings, equipment and software(28)(54)(42)
Proceeds from disposal of business— — 1,138 
Contributions to subsidiaries(1,291)(416)(368)
Return of capital from subsidiaries39 131 18 
Repayment of loans from subsidiaries2,701 3,288 2,468 
Issuance of loans to subsidiaries(2,937)(3,174)(2,457)
Acquisition of surplus loans to subsidiaries— (500)— 
Other, net— — (65)
Net cash provided by (used in) investing activities
(1,519)333 (263)
Cash Flows from Financing Activities
Dividends paid to shareholders(511)(497)(504)
Repurchase of common shares(2,030)(1,441)(1,943)
Cash paid for purchased options with deferred premiums— — (107)
Issuance of long-term debt, net of issuance costs4 496 497 
Repayments of long-term debt(9)(762)(313)
Borrowings from subsidiaries244 871 132 
Repayments of borrowings from subsidiaries(403)(751)(79)
Exercise of stock options1 3 3 
Other, net99 (18)6 
Net cash provided by (used in) financing activities
(2,605)(2,099)(2,308)
Net increase (decrease) in cash and cash equivalents(244)341 254 
Cash and cash equivalents at beginning of year1,071 730 476 
Cash and cash equivalents at end of year$827 $1,071 $730 
Supplemental Disclosures:
Interest paid on debt$95 $107 $123 
Income taxes paid (received), net173 26 (109)
Non-cash dividends from subsidiaries— — 81 
Non-cash contributions to subsidiaries
52 — — 
See Notes to Condensed Financial Information of Registrant.
Schedule I — Condensed Financial Information of Registrant
Notes to Condensed Financial Information of Registrant (Parent Company Only)
1. Basis of Presentation
The accompanying Condensed Financial Statements include the accounts of Ameriprise Financial, Inc. (the “Parent Company”) and, on an equity basis, its subsidiaries and affiliates. The financial statements have been prepared in accordance with U.S. generally accepted accounting principles. The financial information of the Parent Company should be read in conjunction with the Consolidated Financial Statements and Notes of Ameriprise Financial, Inc. and its subsidiaries (“Ameriprise Financial”). Parent Company revenues and expenses, other than compensation and benefits and debt and interest expense, are primarily related to intercompany transactions with subsidiaries and affiliates.
The change in the fair value of derivative instruments used as hedges is reflected in the Parent Company Only Condensed Statements of Operations. For certain of these derivatives, the change in the hedged item is reflected in the subsidiaries’ Statements of Operations. The change in fair value of certain derivatives used to economically hedge risk related to guaranteed minimum withdrawal benefit (“GMWB”) provisions is included in Benefits, claims, losses and settlement expenses, while the underlying benefits, claims, losses and settlement expenses are reflected in Equity in earnings of subsidiaries.
2. Investments
On December 23, 2020, RiverSource Life Insurance Company (“RiverSource Life”) issued a $500 million unsecured 3.5% surplus note due December 31, 2050 to the Parent Company. The surplus note is subordinate in right of payment to the prior payment in full of the RiverSource Life’s obligations to policyholders, claimants and beneficiaries and all other creditors. No payment of principal or interest shall be made without the prior approval of the Minnesota Department of Commerce and such payments shall be made only from RiverSource Life’s statutory surplus. Interest payments are due semi-annually in arrears on June 30 and December 31, which commenced on June 30, 2021. Subject to the preceding conditions, RiverSource Life may prepay all or a portion of the principal at any time. The held-to-maturity investment of $500 million as of both December 31, 2021 and 2020 is recorded in Investments on the Parent Company’s Condensed Balance Sheets. For the year ended December 31, 2021, interest income was $17 million and is reported in Net investment income on the Parent Company’s Condensed Statements of Operations.
In December 2018, the Parent Company invested in the residual tranche of an asset backed security structure issued by Ameriprise Advisor Financing, LLC, a subsidiary of the Parent Company. The asset backed securities are collateralized by a portfolio of loans issued to advisors affiliated with Ameriprise Financial Services, LLC (“AFS”), a subsidiary of the Parent Company. The fair value of the residual tranche was $100 million and $90 million as of December 31, 2021 and 2020, respectively, and is reported in Investments on the Parent Company’s Condensed Balance Sheets. For the years ended December 31, 2021, 2020 and 2019, interest income was $7 million, $6 million and $6 million, respectively, and is reported in Net investment income on the Parent Company’s Condensed Statements of Operations.
3. Debt
All of the debt of Ameriprise Financial is borrowings of the Parent Company, except as indicated below.
•As of both December 31, 2021 and 2020, Ameriprise Financial had $200 million of borrowings from the Federal Home Loan Bank of Des Moines, which is collateralized with commercial mortgage backed securities and residential mortgage backed securities.
•As of December 31, 2021, Ameriprise Financial debt included $3 million of other subsidiary lease obligations.
4. Borrowings from Subsidiaries
The Parent Company has intercompany lending arrangements with its subsidiaries. At the end of each business day, taking into consideration all legal and regulatory requirements associated with its subsidiaries, the Parent Company is entitled to draw on all funds in specified bank accounts. Repayment of all or a portion of the funds is due on demand. As of December 31, 2021 and 2020, the Company had $431 million and $334 million, respectively, available for repayment due on demand. The Parent Company also has revolving credit agreements with its subsidiaries as the borrower aggregating $1.4 billion and $1.3 billion as of December 31, 2021 and 2020, respectively, of which $15 million and $172 million was outstanding as of December 31, 2021 and 2020, respectively.
5. Guarantees, Commitments and Contingencies
The Parent Company is the guarantor for operating leases of certain subsidiaries. All consolidated legal, regulatory and arbitration proceedings, including class actions of Ameriprise Financial, Inc. and its consolidated subsidiaries are potential or current obligations of the Parent Company. The Parent Company has committed revolving credit agreements with its subsidiaries as the lender aggregating $366 million as of both December 31, 2021 and 2020, respectively, of which $243 million and nil was outstanding as of December 31, 2021 and 2020, respectively.
The Parent Company and Ameriprise Certificate Company (“ACC”) entered into a Capital Support Agreement on March 2, 2009, pursuant to which the Parent Company agrees to commit such capital to ACC as is necessary to satisfy applicable minimum capital requirements. Effective April 30, 2014, this agreement was amended to revise the maximum commitment to $50 million. For the years ended December 31, 2021, 2020 and 2019, ACC did not draw upon the Capital Support Agreement and had met all applicable capital requirements.
AFS entered into a Financial Industry Regulatory Authority approved subordinated loan agreement with the Parent Company on December 15, 2014 for regulatory net capital purposes. The agreement consists of a $200 million secured demand note. The note is secured
by cash and securities equal to the principal value of the note pledged by the Parent Company. As of December 31, 2021, AFS had not made a demand of the principal amount.
Ameriprise Enterprise Investment Services, Inc. (“AEIS”) entered into a FINRA approved subordinated loan agreement with the Parent Company on January 25, 2017 for regulatory net capital purposes. Under this agreement, AEIS borrowed $60 million from the Parent Company with an initial term of five years to be repaid no later than January 22, 2022. Both companies have the option to renew the agreement in one year-increments in perpetuity. In January 2022, the agreement was renewed for one year extending the maturity date to January 22, 2023.
6. Subsequent Event
On February 23, 2022, RiverSource Life’s Board of Directors declared a cash dividend of $300 million to the Parent Company, payable on or after March 25, 2022, pending approval by the Minnesota Department of Commerce.