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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM10-Q
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
xQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended September 30, 2017
OR
oFor the Quarterly Period EndedMarch 31, 2022
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Transition Period from_______________________to_______________________

For the Transition Period from_______________________to_______________________
Commission File No. 1-32525 
AMERIPRISE FINANCIAL, INC.
(Exact name of registrant as specified in its charter) 
Commission File No.1-32525
Delaware13-3180631AMERIPRISE FINANCIAL, INC.
(Exact name of registrant as specified in its charter)
Delaware13-3180631
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)
1099 Ameriprise Financial Center Minneapolis, MinnesotaMinneapolisMinnesota55474
(Address of principal executive offices)(Zip Code)
Registrant’s telephone number, including area code:  (612) 671-3131
Former name, former address and former fiscal year, if changed since last report:  Not Applicable
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.       Yes x    No o
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).       Yes xNo o
Registrant’s telephone number, including area code:(612)671-3131
Former name, former address and former fiscal year, if changed since last report:Not Applicable
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Common Stock (par value $.01 per share)AMPNew York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  YesNo
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  YesNo
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large Accelerated Filerx
Accelerated FileroNon-accelerated Filer
Non-Accelerated Filero
(Do not check if a smaller reporting company)
Smaller reporting companyo
Emerging growth companyo
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes oNo x
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
ClassIndicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  YesNo
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
ClassOutstanding at October 20, 2017April 22, 2022
Common Stock (par value $.01 per share)147,930,011109,904,488 shares




AMERIPRISE FINANCIAL, INC.

FORM 10-Q
INDEX 
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
2
Part I. Financial Information
Item 1. Financial Statements (Unaudited)
Consolidated Statements of Operations — Three months and nine months ended September 30, 2017 and 2016
Consolidated Statements of Comprehensive Income — Three months and nine months ended September 30, 2017 and 2016
Consolidated Balance Sheets — September 30, 2017 and December 31, 2016
Consolidated Statements of Equity — Nine months ended September 30, 2017 and 2016
Consolidated Statements of Cash Flows — Nine months ended September 30, 2017 and 2016
Notes to Consolidated Financial Statements
1. Basis of Presentation
2. Recent Accounting Pronouncements
3. Variable Interest Entities
4. Investments
5. Financing Receivables
6. Deferred Acquisition Costs and Deferred Sales Inducement Costs
7. Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities
8. Variable Annuity and Insurance Guarantees
9. Debt
10. Fair Values of Assets and Liabilities
11. Offsetting Assets and Liabilities
12. Derivatives and Hedging Activities
13. Shareholders’ Equity
14. Income Taxes
15. Contingencies
16. Earnings per Share
17. Segment Information
Item 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operations
Item 3.  Quantitative and Qualitative Disclosures About Market Risk
Item 4.  Controls and Procedures
Part II.  Other Information
Item 1.  Legal Proceedings
Item 1A.  Risk Factors
Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds
Item 6.  Exhibits
Signatures

AMERIPRISE FINANCIAL, INC.

PART I. FINANCIAL INFORMATION 
ITEM 1. FINANCIAL STATEMENTS (UNAUDITED)
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

 Three Months Ended September 30, Nine Months Ended September 30,
2017 20162017 2016
(in millions, except per share amounts) 
Revenues
Management and financial advice fees$1,626
 $1,464
 $4,669
 $4,289
Distribution fees437
 455
 1,310
 1,338
Net investment income372
 387
 1,154
 1,090
Premiums348
 374
 1,035
 1,114
Other revenues210
 330
 733
 832
Total revenues2,993
 3,010
 8,901
 8,663
Banking and deposit interest expense12
 12
 34
 29
Total net revenues2,981
 2,998
 8,867
 8,634
Expenses
Distribution expenses850
 798
 2,505
 2,371
Interest credited to fixed accounts176
 161
 509
 465
Benefits, claims, losses and settlement expenses474
 855
 1,652
 1,934
Amortization of deferred acquisition costs48
 163
 189
 360
Interest and debt expense52
 52
 154
 160
General and administrative expense753
 731
 2,244
 2,221
Total expenses2,353
 2,760
 7,253
 7,511
Pretax income628
 238
 1,614
 1,123
Income tax provision125
 23
 315
 209
Net income$503
 $215
 $1,299
 $914
 
Earnings per share
Basic$3.29
 $1.31
 $8.37
 $5.43
Diluted$3.24
 $1.30
 $8.24
 $5.37
 
Cash dividends declared per common share$0.83
 $0.75
 $2.41
 $2.17
 
Supplemental Disclosures:
Total other-than-temporary impairment losses on securities$
 $
 $(1) $(2)
Portion of loss recognized in other comprehensive income (before taxes)
 
 
 1
Net impairment losses recognized in net investment income$
 $
 $(1) $(1)
See Notes to Consolidated Financial Statements.


AMERIPRISE FINANCIAL, INC. 

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
 Three Months Ended September 30, Nine Months Ended September 30,
2017 20162017 2016
(in millions) 
Net income$503
 $215
 $1,299
 $914
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustment16
 (16) 46
 (55)
Net unrealized gains (losses) on securities(4) (28) 60
 382
Net unrealized gains (losses) on derivatives1
 1
 2
 3
Defined benefit plans
 
 5
 6
Other
 
 (1) 
Total other comprehensive income (loss), net of tax13
 (43) 112
 336
Total comprehensive income$516
 $172
 $1,411
 $1,250
See Notes to Consolidated Financial Statements.


AMERIPRISE FINANCIAL, INC. 

CONSOLIDATED BALANCE SHEETS (UNAUDITED)
 September 30,
2017
 December 31, 2016
(in millions, except share amounts)
Assets
Cash and cash equivalents$2,398
 $2,318
Cash of consolidated investment entities106
 168
Investments36,202
 35,834
Investments of consolidated investment entities, at fair value2,215
 2,254
Separate account assets85,287
 80,210
Receivables5,742
 5,299
Receivables of consolidated investment entities, at fair value9
 11
Deferred acquisition costs2,661
 2,648
Restricted and segregated cash and investments3,131
 3,331
Other assets7,735
 7,748
Total assets$145,486
 $139,821
 
Liabilities and Equity
Liabilities:
Policyholder account balances, future policy benefits and claims$29,963
 $30,202
Separate account liabilities85,287
 80,210
Customer deposits10,427
 10,036
Short-term borrowings201
 200
Long-term debt2,902
 2,917
Debt of consolidated investment entities, at fair value2,267
 2,319
Accounts payable and accrued expenses1,728
 1,727
Other liabilities6,363
 5,823
Other liabilities of consolidated investment entities, at fair value43
 95
Total liabilities139,181
 133,529
Equity:
Ameriprise Financial, Inc.:
Common shares ($.01 par value; shares authorized, 1,250,000,000; shares issued, 327,007,785 and 324,006,315, respectively)3
 3
Additional paid-in capital8,017
 7,765
Retained earnings11,271
 10,351
Treasury shares, at cost (178,670,257 and 169,246,411 shares, respectively)(13,298) (12,027)
Accumulated other comprehensive income, net of tax312
 200
Total equity6,305
 6,292
Total liabilities and equity$145,486
 $139,821
See Notes to Consolidated Financial Statements.

AMERIPRISE FINANCIAL, INC. 

CONSOLIDATED STATEMENTS OF EQUITY (UNAUDITED)
 Ameriprise Financial, Inc.Non-controlling InterestsTotal
Number of Outstanding SharesCommon SharesAdditional Paid-In CapitalRetained EarningsAppropriated Retained
Earnings of Consolidated
Investment Entities
Treasury
Shares
Accumulated Other Com-
prehensive Income
Total Ameriprise Financial, Inc. Shareholders’ Equity
(in millions, except share data) 
Balances at January 1, 2016 (1)
171,033,260 $3 $7,611 $9,525 $137 $(10,338)$253 $7,191 $1,188 $8,379 
Cumulative effect of change in accounting policies   1 (137) 6 (130)(1,188)(1,318)
Comprehensive income:
Net income   914    914  914 
Other comprehensive income, net of tax      336 336  336 
Total comprehensive income1,250  1,250 
Dividends to shareholders   (368)   (368) (368)
Repurchase of common shares(14,349,061)    (1,333) (1,333) (1,333)
Share-based compensation plans1,812,137  98   62  160  160 
Balances at
   September 30, 2016 (1)
158,496,336 $3 $7,709 $10,072 $ $(11,609)$595 $6,770 $ $6,770 
 
Balances at January 1, 2017154,759,904 $3 $7,765 $10,351 $ $(12,027)$200 $6,292 $ $6,292 
Comprehensive income:
Net income   1,299    1,299  1,299 
Other comprehensive income, net of tax      112 112  112 
Total comprehensive income1,411  1,411 
Dividends to shareholders   (379)   (379) (379)
Repurchase of common shares(10,184,145)    (1,323) (1,323) (1,323)
Share-based compensation plans3,761,769  252   52  304  304 
Balances at September 30, 2017148,337,528 $3 $8,017 $11,271 $ $(13,298)$312 $6,305 $ $6,305 
(1) Prior period retained earnings were restated in the fourth quarter of 2016. See Note 1 in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016.
 Three Months Ended March 31,
20222021
(in millions, except per share amounts) 
Revenues
Management and financial advice fees$2,459 $2,102 
Distribution fees446 458 
Net investment income261 377 
Premiums, policy and contract charges368 347 
Other revenues123 71 
Total revenues3,657 3,355 
Banking and deposit interest expense
Total net revenues3,655 3,350 
Expenses
Distribution expenses1,297 1,175 
Interest credited to fixed accounts141 159 
Benefits, claims, losses and settlement expenses211 653 
Amortization of deferred acquisition costs96 
Interest and debt expense40 42 
General and administrative expense947 823 
Total expenses2,732 2,857 
Pretax income923 493 
Income tax provision162 56 
Net income$761 $437 
Earnings per share
Basic$6.69 $3.65 
Diluted$6.55 $3.58 
See Notes to Consolidated Financial Statements.

3

AMERIPRISE FINANCIAL, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

 Three Months Ended March 31,
20222021
(in millions) 
Net income$761 $437 
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustment(46)(1)
Net unrealized gains (losses) on securities(853)(340)
Net unrealized gains (losses) on derivatives— 
Defined benefit plans— 29 
Total other comprehensive income (loss), net of tax(898)(312)
Total comprehensive income$(137)$125 
See Notes to Consolidated Financial Statements.
4

AMERIPRISE FINANCIAL, INC.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)


 March 31, 2022December 31, 2021
(in millions, except share amounts)
Assets
Cash and cash equivalents$6,623 $7,127 
Cash of consolidated investment entities119 121 
Investments (allowance for credit losses: 2022, $18; 2021, $18)36,040 35,810 
Investments of consolidated investment entities, at fair value2,177 2,184 
Separate account assets89,669 97,491 
Receivables (allowance for credit losses: 2022, $51; 2021, $55)16,193 16,205 
Receivables of consolidated investment entities, at fair value22 17 
Deferred acquisition costs2,928 2,782 
Restricted and segregated cash, cash equivalents and investments2,668 2,795 
Other assets11,084 11,444 
Other assets of consolidated investment entities, at fair value
Total assets$167,525 $175,979 
Liabilities and Equity
Liabilities:
Policyholder account balances, future policy benefits and claims$35,225 $35,750 
Separate account liabilities89,669 97,491 
Customer deposits22,048 20,227 
Short-term borrowings200 200 
Long-term debt2,330 2,832 
Debt of consolidated investment entities, at fair value2,156 2,164 
Accounts payable and accrued expenses2,050 2,527 
Other liabilities8,691 8,966 
Other liabilities of consolidated investment entities, at fair value146 137 
Total liabilities162,515 170,294 
Equity:
Common shares ($.01 par value; shares authorized, 1,250,000,000; shares issued, 335,320,837 and 334,828,117, respectively)
Additional paid-in capital9,348 9,220 
Retained earnings18,153 17,525 
Treasury shares, at cost (225,174,867 and 223,967,107 shares, respectively)(21,599)(21,066)
Accumulated other comprehensive income (loss), net of tax(895)
Total equity5,010 5,685 
Total liabilities and equity$167,525 $175,979 
See Notes to Consolidated Financial Statements.

5

AMERIPRISE FINANCIAL, INC.
CONSOLIDATED STATEMENTS OF EQUITY (UNAUDITED)
Number of Outstanding SharesCommon SharesAdditional Paid-In CapitalRetained EarningsTreasury
Shares
Accumulated Other 
Comprehensive Income (Loss)
Total
(in millions, except per share data)
Balances at January 1, 2021116,765,613 $$8,822 $15,292 $(18,879)$629 $5,867 
Net income— — — 437 — — 437 
Other comprehensive loss, net of tax— — — — — (312)(312)
Dividends to shareholders— — — (129)— — (129)
Repurchase of common shares(2,589,698)— — — (554)— (554)
Share-based compensation plans1,812,356 — 160 — 33 — 193 
Balances at March 31, 2021115,988,271 $$8,982 $15,600 $(19,400)$317 $5,502 
Balances at January 1, 2022110,861,010 $$9,220 $17,525 $(21,066)$$5,685 
Net income— — — 761 — — 761 
Other comprehensive loss, net of tax— — — — — (898)(898)
Dividends to shareholders— — — (133)— — (133)
Repurchase of common shares(1,930,235)— — — (579)— (579)
Share-based compensation plans1,215,195 — 128 — 46 — 174 
Balances at March 31, 2022110,145,970 $$9,348 $18,153 $(21,599)$(895)$5,010 

See Notes to Consolidated Financial Statements.
6

AMERIPRISE FINANCIAL, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
 Three Months Ended March 31,
20222021
(in millions)
Cash Flows from Operating Activities
Net income$761 $437 
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation, amortization and accretion, net(12)60 
Deferred income tax expense (benefit)154 60 
Share-based compensation44 35 
Net realized investment gains(18)(65)
Net trading (gains) losses— 
Loss from equity method investments12 12 
Net (gains) losses of consolidated investment entities(19)
Changes in operating assets and liabilities:
Restricted and segregated investments(124)(315)
Deferred acquisition costs43 (60)
Policyholder account balances, future policy benefits and claims, net(168)(1,050)
Derivatives, net of collateral(4)144 
Receivables(83)(238)
Brokerage deposits120 (102)
Accounts payable and accrued expenses(461)(163)
Current income tax, net(27)90 
 Deferred taxes, net(115)
Other operating assets and liabilities of consolidated investment entities, net
Other, net159 284 
Net cash provided by (used in) operating activities409 (1,000)
Cash Flows from Investing Activities
Available-for-Sale securities:
Proceeds from sales— 92 
Maturities, sinking fund payments and calls2,209 2,964 
Purchases(3,972)(3,245)
Proceeds from sales, maturities and repayments of mortgage loans32 55 
Funding of mortgage loans(51)(22)
Proceeds from sales, maturities and collections of other investments15 54 
Purchase of other investments(5)(31)
Purchase of investments by consolidated investment entities(190)(737)
Proceeds from sales, maturities and repayments of investments by consolidated investment entities183 240 
Purchase of land, buildings, equipment and software(44)(22)
Cash paid for written options with deferred premiums— (211)
Cash received from written options with deferred premiums12 21 
Cash paid for deposit receivables(12)(2)
Cash received for deposit receivables134 21 
Other, net24 14 
Net cash provided by (used in) investing activities$(1,665)$(809)
See Notes to Consolidated Financial Statements.
7


  September 30,
 2017 2016
 (in millions)
 Cash Flows from Operating Activities
 Net income$1,299
 $914
 Adjustments to reconcile net income to net cash provided by (used in) operating activities:
 Depreciation, amortization and accretion, net176
 187
 Deferred income tax expense (benefit)(58) (47)
 Share-based compensation91
 101
 Net realized investment (gains) losses(37) (1)
 Net trading (gains) losses(5) (5)
 Loss from equity method investments41
 45
 Net losses of consolidated investment entities3
 5
 Changes in operating assets and liabilities:
 Restricted and segregated investments1
 200
 Deferred acquisition costs(31) 86
 Other investments, net(139) 9
 Policyholder account balances, future policy benefits and claims, net(353) 1,172
 Derivatives, net of collateral589
 (676)
 Receivables(445) (177)
 Brokerage deposits(47) 3
 Accounts payable and accrued expenses(19) (24)
 Other operating assets and liabilities of consolidated investment entities, net
 (9)
 Other, net113
 239
 Net cash provided by (used in) operating activities1,179
 2,022
  
 Cash Flows from Investing Activities
 Available-for-Sale securities:
 Proceeds from sales335
 322
 Maturities, sinking fund payments and calls3,583
 3,379
 Purchases(3,722) (4,666)
 Proceeds from sales, maturities and repayments of mortgage loans348
 705
 Funding of mortgage loans(372) (334)
 Proceeds from sales and collections of other investments211
 131
 Purchase of other investments(351) (144)
 Purchase of investments by consolidated investment entities(1,092) (566)
 Proceeds from sales, maturities and repayments of investments by consolidated investment entities1,087
 803
 Purchase of land, buildings, equipment and software(125) (66)
 Other, net(8) 69
 Net cash provided by (used in) investing activities$(106) $(367)
 See Notes to Consolidated Financial Statements.
 

AMERIPRISE FINANCIAL, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Continued)
Three Months Ended March 31,
20222021
(in millions)
Cash Flows from Financing Activities
Investment certificates:
Proceeds from additions$733 $723 
Maturities, withdrawals and cash surrenders(835)(1,224)
Policyholder account balances:
Deposits and other additions285 384 
Net transfers from (to) separate accounts(57)(60)
Surrenders and other benefits(328)(368)
Change in banking deposits, net1,802 580 
Cash paid for purchased options with deferred premiums(71)(42)
Cash received from purchased options with deferred premiums168 306 
Issuance of long-term debt— 
Repayments of long-term debt(502)(2)
Dividends paid to shareholders(129)(129)
Repurchase of common shares(541)(470)
Borrowings of consolidated investment entities— 797 
Repayments of debt by consolidated investment entities(1)(63)
Other, net(6)(3)
Net cash provided by (used in) financing activities518 433 
Effect of exchange rate changes on cash(20)
Net increase (decrease) in cash and cash equivalents, including amounts restricted(758)(1,367)
Cash and cash equivalents, including amounts restricted, at beginning of period9,569 8,903 
Cash and cash equivalents, including amounts restricted, at end of period$8,811 $7,536 
Supplemental Disclosures:
Interest paid excluding consolidated investment entities$27 $30 
Interest paid by consolidated investment entities13 11 
Income taxes paid, net34 36 
Leased assets obtained in exchange for operating lease liabilities13 44 
Non-cash investing activity:
 Exchange of an investment that resulted in a realized gain and an increase to amortized cost— 17 
March 31, 2022December 31, 2021
(in millions)
Reconciliation of cash and cash equivalents, including amounts restricted:
Cash and cash equivalents$6,623 $7,127 
Cash of consolidated investment entities119 121 
Restricted and segregated cash, cash equivalents and investments2,668 2,795 
Less: Restricted and segregated investments(599)(474)
Total cash and cash equivalents including amounts restricted per consolidated statements of cash flows$8,811 $9,569 

See Notes to Consolidated Financial Statements.
8
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Continued)

  September 30,
 2017 2016
 (in millions)
 Cash Flows from Financing Activities
 Investment certificates:
 Proceeds from additions$3,595
 $3,184
 Maturities, withdrawals and cash surrenders(3,158) (2,376)
 Policyholder account balances:
 Deposits and other additions1,538
 1,532
 Net transfers from (to) separate accounts(120) 113
 Surrenders and other benefits(1,413) (1,448)
 Cash paid for purchased options with deferred premiums(187) (256)
 Cash received from purchased options with deferred premiums42
 242
 Issuance of long-term debt
 495
 Repayments of long-term debt(8) (254)
 Dividends paid to shareholders(368) (361)
 Repurchase of common shares(1,161) (1,319)
 Exercise of stock options13
 6
 Repayments of debt by consolidated investment entities(59) (134)
 Other, net
 3
 Net cash provided by (used in) financing activities(1,286) (573)
 Effect of exchange rate changes on cash32
 (53)
 Net increase (decrease) in cash, cash equivalents and restricted cash(181) 1,029
 Cash, cash equivalents and restricted cash at beginning of period5,392
 5,407
 Net cash outflows upon the deconsolidation of VIEs
 (346)
 Cash, cash equivalents and restricted cash at end of period$5,211
 $6,090
  
 Supplemental Disclosures:
 Interest paid excluding consolidated investment entities$130
 $121
 Interest paid by consolidated investment entities65
 74
 Income taxes paid, net387
 201
 Non-cash investing activity:
 Partnership commitments not yet remitted9
 75
  September 30,
2017
 December 31, 2016
 (in millions)
 
 Reconciliation of cash, cash equivalents and restricted cash:
 Cash and cash equivalents$2,398
 $2,318
 Cash of consolidated investment entities106
 168
 Restricted and segregated cash and investments3,131
 3,331
 Less: Restricted and segregated investments(424) (425)
 Total cash, cash equivalents and restricted cash per consolidated statements of cash flows$5,211
 $5,392
 See Notes to Consolidated Financial Statements.


AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)   
1. Basis of Presentation
Ameriprise Financial, Inc. is a holding company, which primarily conducts business through its subsidiaries to provide financial planning, 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 foreign operations of Ameriprise Financial, Inc. are conducted primarily through Columbia Threadneedle Asset ManagementInvestments UK International Limited,TAM UK International Holdings SàrlLtd and Ameriprise Asset Management Holdings GmbHSingapore (Pte.) Ltd and their respective subsidiaries (collectively, “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 and variable interest entities (“VIEs”) in which it is the primary beneficiary (collectively, the “Company”). All intercompany transactions and balances have been eliminated in consolidation. See Note 3 for additional information on VIEs.
The interim financial information in this report has not been audited. In the opinion of management, all adjustments necessary for fair statement of the consolidated results of operations and financial position for the interim periods have been made. Except for the adjustment described below, allAll adjustments made were of a normal recurring nature.
In the first quarter of 2017,2021, the Company recorded a $20favorable out-of-period correction of $29 million decrease toin other comprehensive income tax provision related to an out-of-period correction for a reversal of a tax reserve.
In the third quarter of 2017, the Company recorded a $14 million out-of-period correction related to a variable annuity model assumption that decreased amortization of deferred acquisition costs (“DAC”) by $10 million and decreased benefits, claims, losses and settlement expenses by $4 million.defined benefit plans.
The impact of the error was not material to the current and prior period financial statements of these out-of-period corrections was not material.statements.
The accompanying Consolidated Financial Statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). 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 Company’s Annual Report on Form 10-K for the year ended December 31, 2016,2021, filed with the Securities and Exchange Commission (“SEC”) on February 23, 201725, 2022 (“20162021 10-K”).
The Company evaluated events or transactions that may have occurred after the balance sheet date for potential recognition or disclosure through the date the financial statements were issued. No subsequent events or transactions requiring recognition or disclosure were identified.
2.  Recent Accounting Pronouncements
Adoption of New Accounting Standards
Statement of Cash Flows – Restricted Cash
In November 2016, the Financial Accounting Standards Board (“FASB”) updated the accounting standards related to the classification of restricted cash on the statement of cash flows. The update requires entities to include restricted cash and restricted cash equivalents in cash and cash equivalent balances on the statement of cash flows and disclose a reconciliation between the balances on the statement of cash flows and the balance sheet. The standard is effective for interim and annual periods beginning after December 15, 2017, with early adoption permitted. The Company early adopted the standard for the interim period ended March 31, 2017 on a retrospective basis. As a result of the adoption of the standard, restricted cash balances of $2.7 billion and $2.9 billion at September 30, 2017 and December 31, 2016, respectively, are included in the cash and cash equivalents balances on the Company’s consolidated statements of cash flows. The impact of the change in restricted cash resulted in a $213 million increase to the Company’s operating cash flows for the prior period presented.
Statement of Cash Flows – Classification of Certain Cash Receipts and Cash Payments
In August 2016, the FASB updated the accounting standards related to classification of certain cash receipts and cash payments on the statement of cash flows. The update includes amendments to address diversity in practice for the classification of eight specific cash flow activities. The specific amendments the Company evaluated include the classification of debt prepayment and extinguishment costs, contingent consideration payments, proceeds from insurance settlements and corporate owned life insurance settlements, distributions from equity method investees and the application of the predominance principle to separately identifiable cash flows. The standard is effective for interim and annual periods beginning after December 15, 2017. Early adoption is permitted and all amendments must be adopted during the same period. The Company early adopted the standard for the interim period ended March 31, 2017 on a retrospective basis. The adoption of the standard did not have a material impact on the Company’s operating, investing or financing cash flows.
Compensation – Stock Compensation
In March 2016, the FASB updated the accounting standards related to employee share-based payments. The update requires all excess tax benefits and tax deficiencies to be recognized as income tax expense or benefit in the income statement. This change is required to be applied prospectively to excess tax benefits and tax deficiencies resulting from settlements after the date of adoption. No

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)


adjustment is recorded for any excess tax benefits or tax deficiencies previously recorded in additional paid in capital. The update also requires excess tax benefits to be classified along with other income tax cash flows as an operating activity in the statement of cash flows. This provision can be applied on either a prospective or retrospective basis. The update permits entities to make an accounting policy election to recognize forfeitures as they occur rather than estimating forfeitures to determine the recognition of expense for share-based payment awards. The standard is effective for interim and annual periods beginning after December 15, 2016 with early adoption permitted. The Company adopted the standard on January 1, 2017 on a prospective basis, except for the cash flow statement provision, which the Company applied on a retrospective basis. During periods in which the settlement date value differs materially from the grant date fair value ofcertainshare-basedpaymentawards, the Company may experience volatility in income tax recognized initsconsolidatedresultsofoperations. Duringthethreemonthsand nine months ended September 30, 2017, the Company recognized net excess tax benefits of $25 million and $57 million, respectively, as a reduction to the income tax provision in the consolidated statements of operations. The Company maintained its accounting policy of estimating forfeitures. As a result of the adoption of the standard, net excess tax benefits of $57 million and $8 million for the nine monthsended September 30, 2017 and 2016, respectively, are included in the Other, net line within operating cash flows on the Company’s consolidated statements of cash flows.
Future Adoption of New Accounting Standards
DerivativesFinancial Instruments – Credit Losses – Troubled Debt Restructurings and Hedging – Targeted ImprovementsVintage Disclosures
In March 2022, the Financial Accounting Standards Board (“FASB”) proposed amendments to Accounting for Hedging Activities
In August 2017,Standard Update No. 2016-13, Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments (“Topic 326”). The update removes the FASB updated the accounting standards to amend the hedge accounting recognition and presentation requirements. The objectives ofmeasurement guidance for Troubled Debt Restructurings (“TDRs”) by creditors in Subtopic 310-40, Receivables—Troubled Debt Restructurings by Creditors, and modifies the update aredisclosure requirements for certain loan refinancing and restructuring by creditors when a borrower is experiencing financial difficulty. Rather than applying the recognition and measurement for TDRs, an entity must apply the loan refinancing and restructuring guidance to better align the financial reporting of hedging relationships to the economicdetermine whether a modification results in a new loan or a continuation of an entity’s risk management activities and simplify the application of the hedge accounting guidance.existing loan. The update also adds new disclosuresrequires entities to disclose current-period gross write-offs by year of origination for financing receivables and amends existing disclosure requirements. net investments in leases within the scope of Subtopic 326-20, Financial Instruments—Credit Losses—Measured at Amortized Cost. The standard isamendments are to be applied prospectively, but entities may apply a modified retrospective transition for changes to the recognition and measurement of TDRs. For entities that have adopted Topic 326, the amendments are effective for interim and annual periods beginning after December 15, 2018, and should be applied on a modified retrospective basis.2022. Early adoption is permitted.permitted for entities that have adopted Topic 326, including adoption in an interim period. The Company is currently evaluating the impactadoption of the standard on its consolidated results of operations and financial condition.
Receivables – Premium Amortization on Purchased Callable Debt Securities
In March 2017, the FASB updated the accounting standards to shorten the amortization period for certain purchased callable debt securities held at a premium. Under current guidance, premiums are generally amortized over the contractual life of the security. The amendments require the premium to be amortized to the earliest call date. The update applies to securities with explicit, non-contingent call features that are callable at fixed prices and on preset dates. The standard is effective for interim and annual periods beginning after December 15, 2018, and should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. Early adoption is permitted. The update is not expected to have a material impact on the Company’s consolidated results of operations orand financial condition.
IntangiblesBusiness CombinationsGoodwillAccounting for Contract Assets and Other – Simplifying the Test for Goodwill ImpairmentContract Liabilities from Contracts with Customers
In January 2017,October 2021, the FASB updated the accounting standards to simplifyrequire an entity (acquirer) to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, Revenue for Contracts with Customers (“Topic 606”). At the accountingacquisition date, an acquirer is required to account for goodwill impairment.the related revenue contracts in accordance with Topic 606 as if it had originated the contracts. Generally, this should result in an acquirer recognizing and measuring the acquired contract assets and contract liabilities consistent with how they were recognized and measured in the acquiree’s financial statements (if the acquiree prepared financial statements in accordance with GAAP). The update removesamendments apply to all contract assets and contract liabilities acquired in a business combination that result from contracts accounted for under the hypothetical purchase price allocation (Step 2)principals of the goodwill impairment test. Goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value.Topic 606. The standard is effective for interim and annual periods beginning after December 15, 2019,2022. Early adoption is permitted, including adoption in an interim period. An entity that early adopts in an interim period should apply the amendments (1) retrospectively to all business combinations for which the acquisition date occurs on or after the beginning of the fiscal year that includes the interim period of the early application and should be applied(2) prospectively with earlyto all business combinations that occur on or after the date of initial application. The adoption permitted for any impairment tests performed after January 1, 2017. The updateof the standard is not expected to have a material impact on the Company’s consolidated results of operations orand financial condition.
Income Taxes
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Financial ServicesIntra-Entity Transfers of Assets Other Than InventoryInsurance – Targeted Improvements to the Accounting for Long-Duration Contracts
In October 2016,August 2018, the FASB updated the accounting standardsstandard related to long-duration insurance contracts. The guidance revises key elements of the recognitionmeasurement models and disclosure requirements for long-duration insurance contracts issued by insurers and reinsurers.
The guidance establishes a significant new category of benefit features called market risk benefits that protect the contractholder from other-than-nominal capital market risk and expose the insurer to that risk. Insurers will have to measure market risk benefits at fair value. Market risk benefits include variable annuity guaranteed benefits (i.e. guaranteed minimum death, withdrawal, withdrawal for life, accumulation and income tax impactsbenefits). The portion of the change in fair value attributable to a change in the instrument-specific credit risk of market risk benefits in a liability position will be recorded in OCI.
Significant changes also relate to the measurement of the liability for future policy benefits for nonparticipating traditional long-duration insurance contracts and immediate annuities with a life contingent feature including the following:
Insurers will be required to review and update the cash flow assumptions used to measure the liability for future policy benefits rather than using assumptions locked in at contract inception. The review of assumptions to measure the liability for all future policy benefits will be required annually at the same time each year, or more frequently if suggested by experience. The effect of updating assumptions will be measured on intra-entity transfers. a retrospective catch-up basis and presented separate from the ongoing policyholder benefit expense in the statement of operations in the period the update is made. This new unlocking process will be required for the Company’s term and whole life insurance, disability income, long term care insurance and immediate annuities with a life contingent feature.
The discount rate used to measure the liability for future policy benefits will be standardized. The current requirement to use a discount rate reflecting expected investment yields will change to an upper-medium grade (low credit risk) fixed income corporate instrument yield (generally interpreted as an “A” rating) reflecting the duration characteristics of the liability. Entities will be required to update the discount rate at each reporting date with the effect of discount rate changes reflected in OCI.
The current premium deficiency test is being replaced with a net premium ratio cap of 100%. If the net premium ratio (i.e. the ratio of the present value of total expected benefits and related expenses to the present value of total expected premiums) exceeds 100%, insurers are required to recognize a loss in the statement of operations in the period. Contracts from different issue years will no longer be permitted to be grouped to determine contracts in a loss position.
In addition, the update requires deferred acquisition costs (“DAC”) and deferred sales inducement costs (“DSIC”) relating to all long-duration contracts and most investment contracts to be amortized on a straight-line basis over the expected life of the contract independent of profit emergence. Under the new guidance, interest will not accrue to the deferred balance and DAC and DSIC will not be subject to an impairment test.
The update requires entities to recognize the income tax consequences of intra-entity transfers, other than inventory, upon the transfersignificant additional disclosures, including disaggregated rollforwards of the asset. The update requires the selling entity to recognize a current tax expense or benefitliability for future policy benefits, policyholder account balances, market risk benefits, DAC and the purchasing entity to recognize a deferred tax asset or liability when the transfer occurs.DSIC, as well as qualitative and quantitative information about expected cash flows, estimates and assumptions. The standard is effective for interim and annual periods beginning after December 15, 2017.2022. The standard should be applied to the liability for future policy benefits and DAC and DSIC on a modified retrospective basis and applied to market risk benefits on a retrospective basis with the option to apply full retrospective transition if certain criteria are met. Early adoption is permitted. The Company is currently evaluatingin the process of implementing the standard, including the implementation of controlled measurement and reporting processes. The Company expects the impact of adopting the standard onto be material to its consolidated results of operations and financial condition.
Financial Instruments – Measurement of Credit Losses
10
In June 2016, the FASB updated the accounting standards related to accounting for credit losses on certain types of financial instruments. The update replaces the current incurred loss model for estimating credit losses with a new model that requires an entity to estimate the credit losses expected over the life of the asset. Generally, the initial estimate of the expected credit losses and subsequent changes in the estimate will be reported in current period earnings and recorded through an allowance for credit losses on the balance sheet. The current credit loss model for Available-for-Sale debt securities does not change; however, the credit loss calculation and subsequent recoveries are required to be recorded through an allowance. The standard is effective for interim and annual periods beginning after December 15, 2019. Early adoption will be permitted for interim and annual periods beginning after December 15, 2018. A modified retrospective cumulative adjustment to retained earnings should be recorded as of the first reporting period in which the guidance is effective for loans, receivables, and other financial instruments subject to the new expected credit loss model. Prospective adoption is required for establishing an allowance related to Available-for-Sale debt securities, certain beneficial


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(Continued)

interests, and financial assets purchased with a more-than-insignificant amount of credit deterioration since origination. The Company is currently evaluating the impact of the standard on its consolidated results of operations and financial condition.
Leases – Recognition of Lease Assets and Liabilities on Balance Sheet
In February 2016, the FASB updated the accounting standards for leases. The update was issued to increase transparency and comparability for the accounting of lease transactions. The standard will require most lease transactions for lessees to be recorded on the balance sheet as lease assets and lease liabilities and both quantitative and qualitative disclosures about leasing arrangements. The Company currently discloses information related to operating lease arrangements within Note 23 of the 2016 10-K. The standard is effective for interim and annual periods beginning after December 15, 2018 with early adoption permitted. The update should be applied at the beginning of the earliest period presented using a modified retrospective approach. The Company is currently evaluating the impact of the standard on its consolidated results of operations and financial condition.
Financial Instruments – Recognition and Measurement of Financial Assets and Financial Liabilities
In January 2016, the FASB updated the accounting standards on the recognition and measurement of financial instruments. The update requires entities to carry marketable equity securities, excluding investments in securities that qualify for the equity method of accounting, at fair value with changes in fair value reflected in net income each reporting period. The update affects other aspects of accounting for equity instruments, as well as the accounting for financial liabilities utilizing the fair value option. The update eliminates the requirement to disclose the methods and assumptions used to estimate the fair value of financial assets or liabilities held at cost on the balance sheet and requires entities to use the exit price notion when measuring the fair value of financial instruments. The standard is effective for interim and annual periods beginning after December 15, 2017. Early adoption is permitted for certain provisions. Generally, the update should be applied using a modified retrospective approach by recording a cumulative-effect adjustment to equity at the beginning of the period of adoption. The update is not expected to have a material impact on the consolidated results of operations or financial condition.
3. Revenue from Contracts with Customers
In May 2014,The following tables present revenue disaggregated by segment on an adjusted operating basis with a reconciliation of segment revenues to those reported on the FASB updatedConsolidated Statements of Operations:
Three Months Ended March 31, 2022
Advice & Wealth ManagementAsset ManagementRetirement & Protection SolutionsCorporate & OtherTotal SegmentsNon-operating
Revenue
Total
(in millions)
Management and financial advice fees:
Asset management fees:
Retail$— $644 $— $— $644 $— $644 
Institutional— 195 — — 195 — 195 
Advisory fees1,191 — — — 1,191 — 1,191 
Financial planning fees97 — — — 97 — 97 
Transaction and other fees92 55 16 — 163 — 163 
Total management and financial advice fees1,380 894 16 — 2,290 — 2,290 
Distribution fees:
Mutual funds204 65 — — 269 — 269 
Insurance and annuity221 46 95 — 362 — 362 
Other products104 — — — 104 — 104 
Total distribution fees529 111 95 — 735 — 735 
Other revenues53 — — 58 — 58 
Total revenue from contracts with customers1,962 1,010 111 — 3,083 — 3,083 
Revenue from other sources (1)
82 661 116 866 63 929 
Total segment gross revenues2,044 1,017 772 116 3,949 63 4,012 
Banking and deposit interest expense(2)— — — (2)— (2)
Total segment net revenues2,042 1,017 772 116 3,947 63 4,010 
Elimination of intersegment revenues(228)(12)(112)— (352)(3)(355)
Total net revenues$1,814 $1,005 $660 $116 $3,595 $60 $3,655 
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
Three Months Ended March 31, 2021
Advice & Wealth ManagementAsset ManagementRetirement & Protection SolutionsCorporate & OtherTotal SegmentsNon-operating
Revenue
Total
(in millions)
Management and financial advice fees:
Asset management fees:
Retail$— $531 $— $— $531 $— $531 
Institutional— 123 — — 123 — 123 
Advisory fees1,028 — — — 1,028 — 1,028 
Financial planning fees88 — — — 88 — 88 
Transaction and other fees89 52 16 — 157 — 157 
Total management and financial advice fees1,205 706 16 — 1,927 — 1,927 
Distribution fees:
Mutual funds207 67 — — 274 — 274 
Insurance and annuity240 47 99 — 386 — 386 
Other products112 — — — 112 — 112 
Total distribution fees559 114 99 — 772 — 772 
Other revenues49 — — 50 — 50 
Total revenue from contracts with customers1,813 821 115 — 2,749 — 2,749 
Revenue from other sources (1)
71 672 139 889 99 988 
Total segment gross revenues1,884 828 787 139 3,638 99 3,737 
Banking and deposit interest expense(5)— — — (5)— (5)
Total segment net revenues1,879 828 787 139 3,633 99 3,732 
Elimination of intersegment revenues(250)(13)(116)— (379)(3)(382)
Total net revenues$1,629 $815 $671 $139 $3,254 $96 $3,350 
(1) Revenues not included in the accounting standards forscope of the revenue from contracts with customers.customers standard. The update provides a five stepamounts primarily consist of revenue recognition model for all revenue arising from contracts with customers and affects all entities that enter into contracts to provide goods or services to their customers (unless the contracts are in the scope of other standards). The standard also updates the accounting for certain costs associated with obtaininginsurance and fulfilling a customer contract and requires disclosure of quantitative and qualitative information that enables users ofannuity products or financial statements to understandinstruments.
The following discussion describes the nature, amount, timing, and uncertainty of revenues and cash flows arising from the Company’s contracts with customers. Subsequent related updates provide clarificationcustomers on certaina consolidated basis.
Management and Financial Advice Fees
Asset Management Fees
The Company earns revenue for performing asset management services for retail and institutional clients. The revenue is earned based on a fixed or tiered rate applied, as a percentage, to assets under management. Assets under management vary with market fluctuations and client behavior. The asset management performance obligation is considered a series of distinct services that are substantially the same and are satisfied each day over the contract term. Asset management fees are accrued, invoiced and collected on a monthly or quarterly basis.
The Company’s asset management contracts for Open Ended Investment Companies (“OEICs”) in the United Kingdom (“U.K.”) and Société d'Investissement à Capital Variable (“SICAVs”) in Europe include performance obligations for asset management and fund distribution services. The amounts received for these services are reported as management and financial advice fees. The revenue recognition guidancepattern is the same for both performance obligations as the fund distribution services revenue is variably constrained due to factors outside the Company’s control including market volatility and client behavior (such as how long clients hold their investment) and not recognized until assets under management are known.
The Company may also earn performance-based management fees on institutional accounts, hedge funds, collateralized loan obligations (“CLOs”), OEICs, SICAVs and property and other funds based on a percentage of account returns in excess of either a benchmark index or a contractually specified level. This revenue is variable and impacted primarily by the performance of the assets being managed compared to the benchmark index or contractually specified level. The revenue is not recognized until it is probable that a significant reversal will not occur. Performance-based management fees are invoiced on a quarterly or annual basis.
Advisory Fees
The Company earns revenue for performing investment advisory services for certain brokerage customer’s discretionary and non-discretionary managed accounts. The revenue is earned based on a contractual fixed rate applied, as a percentage, to the market value of assets held in the account. The investment advisory performance obligation is considered a series of distinct services that are substantially the same and are satisfied each day over the contract term. Advisory fees are billed on a monthly basis on the prior month end assets.
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Financial Planning Fees
The Company earns revenue for providing financial plans to its clients. The revenue earned for each financial plan is either a fixed fee (received monthly, quarterly or annually) or a variable fee (received monthly) based on a contractual fixed rate applied, as a percentage, to the prior month end assets held in a client’s investment advisory account. The financial planning fee is based on the complexity of a client’s financial and life situation and his or her advisor’s experience. The performance obligation is satisfied at the time the financial plan is delivered to the customer. The Company records a contract liability for the unearned revenue when cash is received before the plan is delivered. The financial plan contracts with clients are annual contracts. Amounts recorded as a contract liability are recognized as revenue when the financial plan is delivered, which occurs within the annual contract period.
For fixed fee arrangements, revenue is recognized when the financial plan is delivered. The Company accrues revenue for any amounts that have not been received at the time the financial plan is delivered.
For variable fee arrangements, revenue is recognized for cash that has been received when the financial plan is delivered. The amount received after the plan is delivered is variably constrained due to factors outside the Company’s control including market volatility and client behavior. The revenue is recognized when it is probable that a significant reversal will not occur that is generally each month end as the advisory account balance uncertainty is resolved.
Contract liabilities for financial planning fees, which are included in Other liabilities, were $155 million and $157 million as of March 31, 2022 and December 31, 2021, respectively.
The Company pays sales commissions to advisors when a new standard.financial planning contract is obtained or when an existing contract is renewed. The standard is effective for interim and annual periods beginning after December 15, 2017 and early adoption is permitted for interim and annual periods beginning after December 15, 2016. The standard may be applied retrospectively for all periods presented or retrospectivelysales commissions paid to the advisors prior to financial plan delivery are considered costs to obtain a contract with a cumulative-effect adjustment atcustomer and are initially capitalized. When the dateperformance obligation to deliver the financial plan is satisfied, the commission is recognized as distribution expense. Capitalized costs to obtain these contracts are reported in Other assets and were $123 million and $126 million as of adoption. March 31, 2022 and December 31, 2021, respectively.
Transaction and Other Fees
The Company plansearns revenue for providing customer support, shareholder and administrative services (including transfer agent services) for affiliated mutual funds and networking, sub-accounting and administrative services for unaffiliated mutual funds. The Company also receives revenue for providing custodial services and account maintenance services on brokerage and retirement accounts that are not included in an advisory relationship. Transfer agent and administrative revenue is earned based on either a fixed rate applied, as a percentage, to adopt theassets under management or an annual fixed fee for each fund position. Networking and sub-accounting revenue recognition guidanceis earned based on either an annual fixed fee for each account or an annual fixed fee for each fund position. Custodial and account maintenance revenue is generally earned based on a retrospective basis in the first quarter of 2018. The update does not apply to revenue associated with the manufacturing of insurance and annuity productsquarterly or financial instruments as these revenues are in the scope of other standards. Therefore, the Company does not expect the update to have an impact on these revenues. The Company’s implementation efforts include the identification of revenue within the guidance and the reviewannual fixed fee for each account. Each of the customer contractssupport and administrative services performance obligations are considered a series of distinct services that are substantially the same and are satisfied each day over the contract term. Transaction and other fees (other than custodial service fees) are invoiced or charged to determinebrokerage accounts on a monthly or quarterly basis. Custodial service fees are invoiced or charged to brokerage accounts on an annual basis. Contract liabilities for custodial service fees, which are included in Other liabilities, were $39 million and nil as of March 31, 2022 and December 31, 2021, respectively.
The Company earns revenue for providing trade execution services to franchise advisors. The trade execution performance obligation is satisfied at the time of each trade and the revenue is primarily earned based on a fixed fee per trade. These fees are invoiced and collected on a semi-monthly basis.
Distribution Fees
Mutual Funds and Insurance and Annuity Products
The Company earns revenue for selling affiliated and unaffiliated mutual funds, fixed and variable annuities and insurance products. The performance obligation is satisfied at the time of each individual sale. A portion of the revenue is based on a fixed rate applied, as a percentage, to amounts invested at the time of sale. The remaining revenue is recognized over the time the client owns the investment or holds the contract and is generally earned based on a fixed rate applied, as a percentage, to the net asset value of the fund, or the value of the insurance policy or annuity contract. The ongoing revenue is not recognized at the time of sale because it is variably constrained due to factors outside the Company’s control including market volatility and client behavior (such as how long clients hold their investment, insurance policy or annuity contract). This ongoing revenue may be recognized for many years after the initial sale. The revenue will not be recognized until it is probable that a significant reversal will not occur.
The Company earns revenue for providing unaffiliated partners an opportunity to educate the Company’s advisors or to support availability and distribution of their products on the Company’s platforms. These payments allow the outside parties to train and support the advisors, explain the features of their products and distribute marketing and educational materials, and support trading and operational systems necessary to enable the Company’s client servicing and production distribution efforts. The Company earns revenue for placing and maintaining unaffiliated fund partners and insurance companies’ products on the Company’s sales platform (subject to the Company’s due diligence standards). The revenue is primarily earned based on a fixed fee or a fixed rate applied, as a
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percentage, to the market value of assets invested. These performance obligations are considered a series of distinct services that are substantially the same and are satisfied each day over the contract term. These fees are invoiced and collected on monthly basis.
Other Products
The Company earns revenue for selling unaffiliated alternative products. The performance obligation andis satisfied at the associated timingtime of each individual sale. A portion of the revenue is based on a fixed rate applied, as a percentage, to amounts invested at the time of sale. The remaining revenue is recognized over the time the client owns the investment and is earned generally based on a fixed rate applied, as a percentage, to the market value of the investment. The ongoing revenue is not recognized at the time of sale because it is variably constrained due to factors outside the Company’s control including market volatility and client behavior (such as how long clients hold their investment). The revenue will not be recognized until it is probable that a significant reversal will not occur.
The Company earns revenue from brokerage clients for the execution of requested trades. The performance obligation. obligation is satisfied at the time of trade execution and amounts are received on the settlement date. The revenue varies for each trade based on various factors that include the type of investment, dollar amount of the trade and how the trade is executed (online or broker assisted).
The Company earns revenue for placing clients’ deposits in its brokerage sweep program with third-party banks. The amount received from the third-party banks is impacted by short-term interest rates. The performance obligation with the financial institutions that participate in the sweep program is considered a series of distinct services that are substantially the same and are satisfied each day over the contract term. The revenue is earned daily and settled monthly based on a rate applied, as a percentage, to the deposits placed.
Other Revenues
The Company earns revenue from fees charged to franchise advisors for providing various services the advisors need to manage and grow their practices. The primary services include: licensing of intellectual property and software, compliance supervision, insurance coverage, technology services and support, consulting and other services. The services are either provided by the Company or third- party providers. The Company controls the services provided by third parties as it has the right to direct the third parties to perform the services, is primarily responsible for performing the services and sets the prices the advisors are charged. The Company recognizes revenue for the gross amount of the fees received from the advisors. The fees are primarily collected monthly as a reduction of commission payments.
Intellectual property and software licenses, along with compliance supervision, insurance coverage, and technology services and support are primarily earned based on a monthly fixed fee. These services are considered a series of distinct services that are substantially the same and are satisfied each day over the contract term. The consulting and other services performance obligations are satisfied as the services are delivered and revenue is earned based upon the level of service requested.
Contract Costs Asset
The Company has determined that certain payments received primarilyan asset of $39 million as of both March 31, 2022 and December 31, 2021 related to franchise advisor fees should be presented as revenue rather than a reductionthe transition of expense. The Company expects the impact of this changeinvestment advisory services under an arrangement with BMO Financial Group for clients that elected to be an increase to both revenuestransfer U.S. retail and expenses of approximately $95 million to $120 million. The Company does not expect a material impactinstitutional assets to the timingCompany.
Receivables
Receivables for revenue from contracts with customers are recognized when the performance obligation is satisfied and the Company has an unconditional right to the revenue. Receivables related to revenues from contracts with customers were $609 million and $668 million as of revenue recognition; however, the Company’s implementation effort to assess the impact of the standard is still in process.March 31, 2022 and December 31, 2021, respectively.
3.4.  Variable Interest Entities
The Company provides asset management services to investment entities which are considered to be VIEs, such as collateralized loan obligations (“CLOs”),CLOs, hedge funds and other private funds, property funds and certain internationalnon-U.S. series funds (Open Ended Investment Companies(such as OEICs and Societes d’Investissement A Capital Variable) and private equity fundsSICAVs) (collectively, “investment entities”), which are sponsored by the Company. In addition, the Company invests in structured investments other than CLOs and certain affordable housing partnerships which are considered VIEs. The Company consolidates certain investment entities (collectively, “consolidated investment entities”). If if the Company is deemed to be the primary beneficiary, it will consolidate the VIE.beneficiary. The Company has no obligation to provide financial or other support to the non-consolidated VIEs beyond its initial investment nor hasand existing future funding commitments, and the Company has not provided any other support to these entities. The Company has unfunded commitments related to consolidated CLOs of $28 million and $27 million as of March 31, 2022 and December 31, 2021, respectively.
CLOs
CLOs are asset backed financing entities collateralized by a pool of assets, primarily syndicated loans and, to a lesser extent, high-yield bonds. Multiple tranches of debt securities are issued by a CLO, offering investors various maturity and credit risk characteristics. The debt securities issued by the CLOs are non-recourse to the Company. The CLO’s debt holders have recourse only to the assets of the CLO. The assets of the CLOs cannot be used by the Company. Scheduled debt payments are based on the performance of the CLO’s collateral pool. The Company earns management fees from the CLOs based on the value of the CLO’s collateral pool

AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)


and, in certain instances, may also receive incentive fees. The fee arrangement is at market and commensurate with the
14

AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
level of effort required to provide those services. The Company has invested in a portion of the unrated, junior subordinated notes and highly rated senior notes of certain CLOs. The Company consolidates certain CLOs where it is the primary beneficiary and has determinedthe power to direct the activities that consolidation is required for certain CLOs.most significantly impact the economic performance of the CLO.
The Company’s maximum exposure to loss with respect to non-consolidated CLOs is limited to its investments amortized cost, which was $6 million and $9$1 million as of September 30, 2017both March 31, 2022 and December 31, 2016,2021, respectively. The Company classifies these investments as Available-for-Sale securities. See Note 45 for additional information on these investments.
Property Funds
The Company provides investment advice and related services to property funds, some of which are considered VIEs. For investment management services, the Company generally earns management fees based on the market value of assets under management, and in certain instances may also receive performance-based fees. The fee arrangement is at market and commensurate with the level of effort required to provide those services. The Company does not have a significant economic interest and is not required to consolidate any of the property funds. The Company’s maximum exposure to loss with respect to its investment in these entities is limited to its carrying value. The carrying value of the Company’s investment in property funds is reflected in other investments and was $26$44 million as of both September 30, 2017March 31, 2022 and December 31, 2016.2021, respectively.
Hedge Funds and other Private Equity Funds
The Company has determined that consolidation isdoes not required forconsolidate hedge funds and other private equity funds which are sponsored by the Company and considered VIEs. For investment management services, the Company earns management fees based on the market value of assets under management, and in certain instances may also receive performance-based fees. The fee arrangement is at market and commensurate with the level of effort required to provide those services.services and the Company does not have a significant economic interest in any fund. The Company’s maximum exposure to loss with respect to its investment in these entities is limited to its carrying value. The carrying value of the Company’s investment in these entities is reflected in other investments and was $7 million and $13 million NaN as of September 30, 2017both March 31, 2022 and December 31, 2016, respectively.2021.
InternationalNon-U.S. Series Funds
The Company manages internationalnon-U.S. series funds, which are considered VIEs. For investment management services, the Company earns management fees based on the market value of assets under management, and in certain instances may also receive performance-based fees. The fee arrangement is at market and commensurate with the level of effort required to provide those services. The Company does not consolidate these funds and its maximum exposure to loss is limited to its carrying value. The carrying value of the Company’s investment in these funds is reflected in other assetsinvestments and was $26$42 million and $33$43 million as of September 30, 2017March 31, 2022 and December 31, 2016,2021, respectively.
Affordable Housing Partnerships and Other Real Estate Partnerships
The Company is a limited partner in affordable housing partnerships that qualify for government-sponsored low income housing tax credit programs and partnerships that invest in multi-family residential properties that were originally developed with an affordable housing component. The Company has determined it is not the primary beneficiary and therefore does not consolidate these partnerships.
A majority of the limited partnerships are VIEs. The Company’s maximum exposure to loss as a result of its investment in the VIEs is limited to the carrying value. The carrying value is reflected in other investments and was $455$124 million and $482$138 million as of September 30, 2017March 31, 2022 and December 31, 2016,2021, respectively. The Company had a $114 $8 million and $135 million liabilityliability recorded as of September 30, 2017both March 31, 2022 and December 31, 2016,2021, respectively, related to original purchase commitments not yet remitted to the VIEs. The Company has not provided any additional support and is not contractually obligated to provide additional support to the VIEs beyond the above mentioned funding commitments.
Structured Investments
The Company invests in structured investments which are considered VIEs for which it is not the sponsor. These structured investments typically invest in fixed income instruments and are managed by third parties and include asset backed securities, and commercial mortgage backed securities and residential mortgage backed securities. The Company classifies these investments as Available-for-Sale securities. The Company has determined that it is not the primary beneficiary of these structures due to the size of the Company’s investment in the entities and position in the capital structure of these entities. The Company’s maximum exposure to loss as a result of its investment in these structured investments is limited to its carrying value.amortized cost. See Note 45 for additional information on these structured investments.

AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)


Fair Value of Assets and Liabilities
The Company categorizes its fair value measurements according to a three-level hierarchy. See Note 1011 for the definition of the three levels of the fair value hierarchy.
15

AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
The following tables present the balances of assets and liabilities held by consolidated investment entities measured at fair value on a recurring basis:
 March 31, 2022
Level 1Level 2Level 3Total
(in millions)
Assets
Investments:
Common stocks$— $$— $
Syndicated loans— 2,077 97 2,174 
Total investments— 2,080 97 2,177 
Receivables— 22 — 22 
Other assets— — 
Total assets at fair value$— $2,104 $97 $2,201 
Liabilities
Debt (1)
$— $2,156 $— $2,156 
Other liabilities— 146 — 146 
Total liabilities at fair value$— $2,302 $— $2,302 
September 30, 2017 December 31, 2021
Level 1 Level 2 Level 3 TotalLevel 1Level 2Level 3Total
(in millions)(in millions)
AssetsAssetsAssets
Investments:Investments:Investments:
Corporate debt securities$
 $29
 $
 $29
Common stocks22
 11
 4
 37
Common stocks$— $$— $
Other investments4
 
 
 4
Syndicated loans
 1,963
 182
 2,145
Syndicated loans— 2,117 64 2,181 
Total investments26
 2,003
 186
 2,215
Total investments— 2,120 64 2,184 
Receivables
 9
 
 9
Receivables— 17 — 17 
Other assetsOther assets— — 
Total assets at fair value$26
 $2,012
 $186
 $2,224
Total assets at fair value$— $2,137 $67 $2,204 
LiabilitiesLiabilitiesLiabilities
Debt (1)
$
 $2,267
 $
 $2,267
Debt (1)
$— $2,164 $— $2,164 
Other liabilities
 43
 
 43
Other liabilities— 137 — 137 
Total liabilities at fair value$
 $2,310
 $
 $2,310
Total liabilities at fair value$— $2,301 $— $2,301 
(1) The carrying value of the CLOs’ debt is set equal to the fair value of the CLOs’ assets. The estimated fair value of the CLOs’ debt was $2.1 billionand $2.2 billion as of March 31, 2022 and December 31, 2021, respectively.
 December 31, 2016
Level 1 Level 2 Level 3 Total
(in millions)
Assets
Investments:
Corporate debt securities$
 $19
 $
 $19
Common stocks22
 6
 5
 33
Other investments4
 
 
 4
Syndicated loans
 1,944
 254
 2,198
Total investments26
 1,969
 259
 2,254
Receivables
 11
 
 11
Total assets at fair value$26
 $1,980
 $259
 $2,265
 
Liabilities
Debt (1)
$
 $2,319
 $
 $2,319
Other liabilities
 95
 
 95
Total liabilities at fair value$
 $2,414
 $
 $2,414
(1)
The carrying value of the CLOs’ debt is set equal to the fair value of the CLOs’ assets. The estimated fair value of the CLOs’ debt was $2.2 billion and $2.3 billion as of September 30, 2017 and December 31, 2016, respectively.

AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)


The following tables provide a summary of changes in Level 3 assets and liabilities held by consolidated investment entities measured at fair value on a recurring basis:
 Corporate Debt Securities Common Stocks Syndicated Loans 
(in millions)
Balance, July 1, 2017$
 $7
 $185
 
Total gains (losses) included in:
Net income
 1
(1) 
(1)
(1) 
Purchases
 
 6
 
Sales
 
 (12) 
Settlements
 
 (3) 
Transfers into Level 3
 
 84
 
Transfers out of Level 3
 (4) (77) 
Balance, September 30, 2017$
 $4
 $182
 
Changes in unrealized gains (losses) included in income relating to assets held at September 30, 2017$
 $1
(1) 
$
 
Syndicated LoansOther Assets
(in millions)
Balance, January 1, 2022$64 $
Total gains (losses) included in:
Net income(1)(1)— 
Purchases15 — 
Sales(1)— 
Transfers into Level 362 — 
Transfers out of Level 3(42)(3)
Balance, March 31, 2022$97 $— 
Changes in unrealized gains (losses) included in income relating to assets held at March 31, 2022$(1)(1)$— 
16

 Common Stocks Syndicated Loans Other Assets 
(in millions)
Balance at July 1, 2016$1
 $243
 $1
 
Total gains (losses) included in:
Net income
 2
(1) 

 
Purchases1
 50
 
 
Sales
 (10) 
 
Settlements
 (26) 
 
Transfers into Level 31
 57
 
 
Transfers out of Level 3
 (120) 
 
Balance, September 30, 2016$3
 $196
 $1
 
Changes in unrealized gains (losses) included in income relating to assets held at September 30, 2016$
 $2
(1) 
$
 
 Corporate Debt Securities Common Stocks Syndicated Loans 
(in millions)
Balance, January 1, 2017$
 $5
 $254
 
Total gains (losses) included in:
Net income
 1
(1) 

 
Purchases
 3
 133
 
Sales(2) (1) (27) 
Settlements
 
 (56) 
Transfers into Level 32
 2
 197
 
Transfers out of Level 3
 (6) (319) 
Balance, September 30, 2017$
 $4
 $182
 
Changes in unrealized gains (losses) included in income relating to assets held at September 30, 2017$
 $1
(1) 
$(2)
(1) 

AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)

(Continued)

 Syndicated LoansOther Assets
(in millions)
Balance, January 1, 2021$92 $
Total gains (losses) included in:
Net income(1)— 
Purchases59 — 
Sales(10)— 
Settlements(20)— 
Transfers into Level 357 — 
Transfers out of Level 3(25)(2)
Balance, March 31, 2021$155 $— 
Changes in unrealized gains (losses) included in income relating to assets held at March 31, 2021$(1)$— 
 Common Stocks Syndicated Loans Other Assets Debt 
(in millions)
Balance at January 1, 2016, previously reported$3
 $529
 $2,065
 $(6,630) 
Cumulative effect of change in accounting policies (3)
(2) (304) (2,065) 6,630
 
Balance at January 1, 2016, as adjusted1
 225
 
 
 
Total gains (losses) included in:
Net income
 1
(1) 
1
(2) 

 
Purchases1
 100
 
 
 
Sales
 (11) 
 
 
Settlements
 (51) 
 
 
Transfers into Level 33
 286
 
 
 
Transfers out of Level 3(2) (354) 
 
 
Balance, September 30, 2016$3
 $196
 $1
 $
 
Changes in unrealized gains (losses) included in income relating to assets and liabilities held at September 30, 2016$
 $1
(1) 
$
 $
 
(1) Included in netNet investment income in the Consolidated Statements of Operations.
(2) Included in other revenues in the Consolidated Statements of Operations.
(3) The cumulative effect of change in accounting policies includes the adoption impact of ASU 2015-02 and ASU 2014-13 – Consolidation: Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity (“ASU 2014-13”).income.
Securities and loans transferred from Level 3 primarily represent assets with fair values that are now obtained from a third-party pricing service with observable inputs or priced in active markets. Securities and loans transferred to Level 3 represent assets with fair values that are now based on a single non-binding broker quote. The Company recognizes transfers between levels of the fair value hierarchy as of the beginning of the quarter in which each transfer occurred. For assets and liabilities held at the end of the reporting periods that are measured at fair value on a recurring basis, there were no transfers between Level 1 and Level 2.
All Level 3 measurements as of September 30, 2017March 31, 2022 and December 31, 20162021 were obtained from non-binding broker quotes where unobservable inputs utilized in the fair value calculation are not reasonably available to the Company.
Determination of Fair Value
Assets
Investments
The fair value of syndicated loans obtained from third-party pricing services using a market approach with observable inputs is classified as Level 2. The fair value of syndicated loans obtained from third-party pricing services with a single non-binding broker quote as the underlying valuation source is classified as Level 3. The underlying inputs used in non-binding broker quotes are not readily available to the Company.
In consideration of the above, management is responsible for the fair values recorded on the financial statements. Prices received from third-party pricing services are subjected to exception reporting that identifies loans with significant daily price movements as well as no movements. The Company reviews the exception reporting and resolves the exceptions through reaffirmation of the price or recording an appropriate fair value estimate. The Company also performs subsequent transaction testing. The Company performs annual due diligence of the third-party pricing services. The Company’s due diligence procedures include assessing the vendor’s valuation qualifications, control environment, analysis of asset-class specific valuation methodologies and understanding of sources of market observable assumptions and unobservable assumptions, if any, employed in the valuation methodology. The Company also considers the results of its exception reporting controls and any resulting price challenges that arise.
See Note 1011 for a description of the Company’s determination of the fair value of corporate debt securities, U.S. government and agencies obligations, common stocks and other investments.
Receivables
For receivables of the consolidated CLOs, the carrying value approximates fair value as the nature of these assets has historically been short term and the receivables have been collectible. The fair value of these receivables is classified as Level 2.
Liabilities
Debt
The fair value of the CLOs’ assets, typically syndicated bank loans, is more observable than the fair value of the CLOs’ debt tranches

AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)


for which market activity is limited and less transparent. As a result, the fair value of the CLOs’ debt is set equal to the fair value of the CLOs’ assets. The fair value of the CLOs’ debtassets and is classified as Level 2.
Other Liabilities
Other liabilities consist primarily of securities purchased but not yet settled held by consolidated CLOs. The carrying value approximates fair value as the nature of these liabilities has historically been short term. The fair value of these liabilities is classified as Level 2. Other liabilities also include accrued interest on CLO debt.
Fair Value Option
The Company has elected the fair value option for the financial assets and liabilities of the consolidated CLOs. Management believes that the use of the fair value option better matches the changes in fair value of assets and liabilities related to the CLOs.
17

AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
The followingtablepresentsthefairvalueandunpaidprincipalbalanceofloansanddebtforwhichthefairvalueoptionhasbeenelected:
 March 31, 2022December 31, 2021
(in millions)
Syndicated loans
Unpaid principal balance$2,242 $2,233 
Excess unpaid principal over fair value(68)(52)
Fair value$2,174 $2,181 
Fair value of loans more than 90 days past due$— $— 
Fair value of loans in nonaccrual status11 13 
Difference between fair value and unpaid principal of loans more than 90 days past due, loans in nonaccrual status or both10 
Debt
Unpaid principal balance$2,295 $2,296 
Excess unpaid principal over fair value(139)(132)
Carrying value (1)
$2,156 $2,164 
 September 30,
2017
 December 31, 2016
(in millions)
Syndicated loans
Unpaid principal balance$2,215
 $2,281
Excess unpaid principal over fair value(70) (83)
Fair value$2,145
 $2,198
Fair value of loans more than 90 days past due$12
 $8
Fair value of loans in nonaccrual status12
 8
Difference between fair value and unpaid principal of loans more than 90 days past due, loans in nonaccrual status or both26
 34
 
Debt
Unpaid principal balance$2,400
 $2,459
Excess unpaid principal over carrying value(133) (140)
Carrying value (1)
$2,267
 $2,319
(1) The carrying value of the CLOs’ debtis set equal to the fair value of the CLOs’ assets. The estimated fair value of the CLOs’ debt was $2.1 billion and $2.2 billion and $2.3 billionas of September 30, 2017March 31, 2022 and December 31, 2016,2021, respectively.
Interest income from syndicated loans, bonds and structured investments is recorded based on contractual rates in netNet investment income. Gains and losses related to changes in the fair value of investments and gains and losses on sales of investments are also recorded in netNet investment income. Interest expense on debt is recorded in interest and debt expense with gains and losses related to changes in the fair value of debt recorded in netNet investment income.
Total net gains (losses) recognized in netNet investment income related to the changes in the fair value of financial assets and liabilities for whichinvestments the Company owns in the consolidated CLOs where it has elected the fair value option was electedand collateralized financing entity accounting were $(1) million and nilimmaterial for both the three months ended September 30, 2017March 31, 2022 and 2016, respectively.
Total net gains (losses) recognized in net investment income related to changes in the fair value of financial assets and liabilities for which the fair value option was elected were $(3) million and $(5) million for the nine months ended September 30, 2017 and 2016, respectively.2021.
Debt of the consolidated investment entities and the stated interest rates were as follows:
 Carrying Value Weighted Average Interest Rate
September 30,
2017
 December 31,
2016
September 30,
2017
 December 31,
2016
(in millions) 
Debt of consolidated CLOs due 2025-2026$2,267
 $2,319
 2.7% 2.5%
 Carrying ValueWeighted Average Interest Rate
March 31, 2022December 31, 2021March 31, 2022December 31, 2021
(in millions) 
Debt of consolidated CLOs due 2028-2034$2,156 $2,164 1.9 %1.7 %
The debt of the consolidated CLOs has both fixed and floating interest rates, which range from 0%nil to 7.3%9.5%. The interest rates on the debt of CLOs are weighted average rates based on the outstanding principal and contractual interest rates.

AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)


4.  5.  Investments
The following is a summary of Ameriprise Financial investments:
March 31, 2022December 31, 2021
(in millions)
Available-for-Sale securities, at fair value$32,330 $32,050 
Mortgage loans (allowance for credit losses: 2022, $12; 2021, $12)1,971 1,953 
Policy loans833 835 
Other investments (allowance for credit losses: 2022, $5; 2021, $5)906 972 
Total$36,040 $35,810 
 September 30,
2017
 December 31,
2016
(in millions)
Available-for-Sale securities, at fair value$30,826
 $30,719
Mortgage loans, net3,000
 2,986
Policy and certificate loans841
 831
Other investments1,535
 1,298
Total$36,202
 $35,834
The following is a summaryOther investments primarily reflect the Company’s interests in affordable housing partnerships, trading securities, equity securities, seed money investments, syndicated loans, credit card receivables and certificates of net investment income:deposit with original or remaining maturities at the time of purchase of more than 90 days.
18

 Three Months Ended September 30, Nine Months Ended September 30,
2017 20162017 2016
(in millions)
Investment income on fixed maturities$340
 $342
 $1,012
 $1,028
Net realized gains (losses)(3) 6
 35
 (5)
Affordable housing partnerships(17) (17) (42) (35)
Other26
 25
 70
 13
Consolidated investment entities26
 31
 79
 89
Total$372
 $387
 $1,154
 $1,090
Available-for-Sale securities distributed by type were as follows:
Description of SecuritiesSeptember 30, 2017
Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value 
Noncredit OTTI (1)
 (in millions)
Corporate debt securities$14,528
 $1,145
 $(23) $15,650
 $
Residential mortgage backed securities6,740
 79
 (29) 6,790
 
Commercial mortgage backed securities3,917
 62
 (27) 3,952
 
Asset backed securities1,611
 39
 (4) 1,646
 5
State and municipal obligations2,216
 249
 (10) 2,455
 
U.S. government and agencies obligations5
 1
 
 6
 
Foreign government bonds and obligations292
 21
 (5) 308
 
Common stocks9
 11
 (1) 19
 6
Total$29,318
 $1,607
 $(99) $30,826
 $11

AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)

(Continued)

The following is a summary of Net investment income:
Three Months Ended March 31,
20222021
(in millions)
Investment income on fixed maturities$214 $266 
Net realized gains (losses)20 69 
Affordable housing partnerships(15)(15)
Other23 21 
Consolidated investment entities19 36 
Total$261 $377 
Description of SecuritiesDecember 31, 2016
Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value 
Noncredit OTTI (1)
 (in millions)
Corporate debt securities$15,231
 $1,065
 $(60) $16,236
 $
Residential mortgage backed securities6,899
 86
 (67) 6,918
 (3)
Commercial mortgage backed securities3,347
 59
 (39) 3,367
 
Asset backed securities1,532
 33
 (16) 1,549
 5
State and municipal obligations2,195
 198
 (35) 2,358
 
U.S. government and agencies obligations7
 1
 
 8
 
Foreign government bonds and obligations251
 17
 (7) 261
 
Common stocks10
 13
 (1) 22
 6
Total$29,472
 $1,472
 $(225) $30,719
 $8
Available-for-Sale securities distributed by type were as follows:
(1)
March 31, 2022
Description of SecuritiesAmortized CostGross Unrealized GainsGross Unrealized LossesAllowance for Credit LossesFair Value
 (in millions)
Corporate debt securities$9,012 $667 $(297)$— $9,382 
Residential mortgage backed securities12,117 17 (439)— 11,695 
Commercial mortgage backed securities5,461 (168)— 5,296 
Asset backed securities3,676 16 (54)— 3,638 
State and municipal obligations847 163 (8)(1)1,001 
U.S. government and agency obligations1,160 — — — 1,160 
Foreign government bonds and obligations83 (3)— 82 
Other securities77 — (1)— 76 
Total$32,433 $868 $(970)$(1)$32,330 
Description of SecuritiesDecember 31, 2021
Amortized CostGross Unrealized GainsGross Unrealized LossesAllowance for Credit LossesFair Value
(in millions)
Corporate debt securities$8,737 $1,243 $(48)$— $9,932 
Residential mortgage backed securities10,927 67 (50)— 10,944 
Commercial mortgage backed securities4,950 59 (23)— 4,986 
Asset backed securities3,639 26 (11)— 3,654 
State and municipal obligations850 244 (1)(1)1,092 
U.S. government and agency obligations1,301 — — — 1,301 
Foreign government bonds and obligations88 (1)— 92 
Other securities49 — — — 49 
Total$30,541 $1,644 $(134)$(1)$32,050 
Represents the amount of other-than-temporary impairment (“OTTI”) losses in accumulated other comprehensive income (“AOCI”). Amount includes unrealized gains and losses on impaired securities subsequent to the initial impairment measurement date. These amounts are included in gross unrealized gains and losses as of the end of the period.
As of September 30, 2017March 31, 2022 and December 31, 2016,2021, accrued interest of $156 million and $140 million, respectively, is excluded from the amortized cost basis of Available-for-Sale securities in the tables above and is recorded in Receivables.
As of March 31, 2022 and December 31, 2021, investment securities with a fair value of $1.7$3.3 billion and $1.6$3.1 billion, respectively, were pledged to meet contractual obligations under derivative contracts and short-term borrowings, of which $793$428 million and $473$314 million, respectively, may be sold, pledged or rehypothecated by the counterparty.
As of September 30, 2017March 31, 2022 and December 31, 2016,2021, fixed maturity securities comprised approximately 85%90% and 86%89%, respectively, of Ameriprise Financial investments. Rating agency designations are based on the availability of ratings from Nationally Recognized Statistical Rating Organizations (“NRSROs”), including Moody’s Investors Service (“Moody’s”), Standard & Poor’s Ratings Services (“S&P”) and Fitch Ratings Ltd. (“Fitch”). The Company uses the median of available ratings from Moody’s, S&P and Fitch, or if fewer than three ratings are available, the lower rating is used. When ratings from Moody’s, S&P and Fitch are unavailable, the Company may utilize ratings from other NRSROs or rate the securities internally. As of both September 30, 2017March 31, 2022 and December 31, 2016,2021, the Company’s internal analysts rated $1.1 billion$471 million and $400 million, respectively, of securities using criteria similar to those used by NRSROs.
19

AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
A summary of fixed maturity securities by rating was as follows:
RatingsMarch 31, 2022December 31, 2021
Amortized CostFair ValuePercent of Total Fair ValueAmortized CostFair ValuePercent of Total Fair Value
 (in millions, except percentages)
AAA$22,172 $21,546 67 %$20,563 $20,625 64 %
AA748 858 727 898 
A1,786 1,991 1,775 2,129 
BBB6,941 7,135 22 6,495 7,268 23 
Below investment grade (1)
786 800 981 1,130 
Total fixed maturities$32,433 $32,330 100 %$30,541 $32,050 100 %
RatingsSeptember 30, 2017 December 31, 2016
Amortized Cost Fair Value 
Percent of 
Total Fair Value
Amortized Cost Fair Value 
Percent of 
Total Fair Value
 (in millions, except percentages)
AAA$10,444
 $10,528
 34% $9,252
 $9,305
 31%
AA1,914
 2,132
 7
 1,729
 1,906
 6
A4,986
 5,453
 18
 5,157
 5,567
 18
BBB10,745
 11,435
 37
 11,739
 12,340
 40
Below investment grade (1)
1,220
 1,259
 4
 1,585
 1,579
 5
Total fixed maturities$29,309
 $30,807
 100% $29,462
 $30,697
 100%
(1) The amortized cost and fair value of below investment grade securities includes interest in non-consolidated CLOs managed by the Company of $1 million and $2 million, respectively, as of both March 31, 2022 and December 31, 2021. These securities are not rated but are included in below investment grade due to their risk characteristics.
(1)
The amortized cost and fair value of below investment grade securities includes interest in CLOs managed by the Company of $6 million and $11 million, respectively, at September 30, 2017, and $9 million and $14 million, respectively, at December 31, 2016. These securities are not rated but are included in below investment grade due to their risk characteristics.
As of September 30, 2017both March 31, 2022 and December 31, 2016,2021, approximately 41% and 47%, respectively,30% of the securities rated AAA were GNMA, FNMA and FHLMC mortgage backed securities. No holdings of any other issuer were greater than 10% of the Company’s total equity.

AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)


shareholder’s equity as of both March 31, 2022 and December 31, 2021.
The following tables provide information aboutsummarize the fair value and gross unrealized losses on Available-for-Sale securities, with gross unrealized lossesaggregated by major investment type and the length of time that individual securities have been in a continuous unrealized loss position:position for which no allowance for credit losses has been recorded:
Description of SecuritiesMarch 31, 2022
Less than 12 Months12 Months or MoreTotal
Number of SecuritiesFair ValueUnrealized LossesNumber of SecuritiesFair ValueUnrealized LossesNumber of SecuritiesFair ValueUnrealized Losses
 (in millions, except number of securities)
Corporate debt securities253 $3,182 $(234)40 $441 $(63)293 $3,623 $(297)
Residential mortgage backed securities444 9,348 (410)70 544 (29)514 9,892 (439)
Commercial mortgage backed securities248 4,322 (153)20 277 (15)268 4,599 (168)
Asset backed securities88 3,003 (52)113 (2)94 3,116 (54)
State and municipal obligations55 126 (8)— 56 130 (8)
Foreign government bonds and obligations28 (1)(2)16 36 (3)
Other securities76 (1)— — — 76 (1)
Total1,099 $20,085 $(859)146 $1,387 $(111)1,245 $21,472 $(970)
20

AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
Description of SecuritiesSeptember 30, 2017
Less than 12 months 12 months or more Total
Number of Securities Fair Value Unrealized LossesNumber of Securities Fair Value Unrealized LossesNumber of Securities Fair Value Unrealized Losses
 (in millions, except number of securities)
Corporate debt securities106
 $1,151
 $(7) 34
 $325
 $(16) 140
 $1,476
 $(23)
Residential mortgage backed securities113
 1,901
 (16) 109
 993
 (13) 222
 2,894
 (29)
Commercial mortgage backed securities90
 1,391
 (21) 19
 210
 (6) 109
 1,601
 (27)
Asset backed securities33
 398
 (2) 16
 105
 (2) 49
 503
 (4)
State and municipal obligations89
 176
 (1) 16
 142
 (9) 105
 318
 (10)
Foreign government bonds and obligations6
 19
 
 14
 21
 (5) 20
 40
 (5)
Common stocks
 
 
 3
 1
 (1) 3
 1
 (1)
Total437
 $5,036
 $(47) 211
 $1,797
 $(52) 648
 $6,833
 $(99)
Description of SecuritiesDescription of SecuritiesDecember 31, 2016Description of SecuritiesDecember 31, 2021
Less than 12 months 12 months or more TotalLess than 12 Months12 Months or MoreTotal
Number of Securities Fair Value Unrealized LossesNumber of Securities Fair Value Unrealized LossesNumber of Securities Fair Value Unrealized LossesNumber of SecuritiesFair ValueUnrealized LossesNumber of SecuritiesFair ValueUnrealized LossesNumber of SecuritiesFair ValueUnrealized Losses
(in millions, except number of securities)(in millions, except number of securities)
Corporate debt securitiesCorporate debt securities187
 $2,452
 $(33) 38
 $377
 $(27) 225
 $2,829
 $(60)Corporate debt securities110 $2,056 $(43)14 $81 $(5)124 $2,137 $(48)
Residential mortgage backed securitiesResidential mortgage backed securities127
 2,533
 (33) 177
 1,290
 (34) 304
 3,823
 (67)Residential mortgage backed securities206 5,808 (48)56 191 (2)262 5,999 (50)
Commercial mortgage backed securitiesCommercial mortgage backed securities100
 1,583
 (39) 5
 43
 
 105
 1,626
 (39)Commercial mortgage backed securities102 2,184 (22)139 (1)111 2,323 (23)
Asset backed securitiesAsset backed securities48
 524
 (9) 27
 298
 (7) 75
 822
 (16)Asset backed securities41 1,883 (11)118 — 47 2,001 (11)
State and municipal obligationsState and municipal obligations181
 374
 (14) 3
 110
 (21) 184
 484
 (35)State and municipal obligations26 64 (1)— — — 26 64 (1)
Foreign government bonds and obligationsForeign government bonds and obligations7
 30
 (1) 15
 23
 (6) 22
 53
 (7)Foreign government bonds and obligations— (1)11 10 (1)
Common stocks
 
 
 3
 1
 (1) 3
 1
 (1)
TotalTotal650
 $7,496
 $(129) 268
 $2,142
 $(96) 918
 $9,638
 $(225)Total490 $12,001 $(125)91 $533 $(9)581 $12,534 $(134)
As part of Ameriprise Financial’sthe Company’s ongoing monitoring process, management determined that the change in gross unrealized losses on its Available-for-Sale securities for which an allowance for credit losses has not been recognized during the three months ended March 31, 2022 is primarily attributable to a decline inthe impact of higher interest rates onand wider credit spreads. The Company did not recognize these unrealized losses in earnings because it was determined that such losses were due to non-credit factors. The Company does not intend to sell these securities and does not believe that it is more likely than not that the long endCompany will be required to sell these securities before the anticipated recovery of the interest rate curveremaining amortized cost basis. As of March 31, 2022 and tighter credit spreads.December 31, 2021, approximately 94% and 96%, respectively, of the total of Available-for-Sale securities with gross unrealized losses were considered investment grade.
The following table presentstables present a rollforward of the cumulative amounts recognized in the Consolidated Statements of Operationsallowance for other-than-temporary impairments related to credit losses on Available-for-Sale securities for which a portion of the securities’ total other-than-temporary impairments was recognized in other comprehensive income (loss) (“OCI”):securities:
 Three Months Ended September 30, Nine Months Ended September 30,
2017 20162017 2016
(in millions)
Beginning balance$2
 $81
 $69
 $85
Credit losses for which an other-than-temporary impairment was not previously recognized
 
 
 1
Credit losses for which an other-than-temporary impairment was previously recognized
 
 1
 
Reductions for securities sold during the period (realized)
 
 (68) (5)
Ending balance$2
 $81
 $2
 $81

AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)


Corporate Debt SecuritiesAsset Backed SecuritiesState and Municipal ObligationsTotal
(in millions)
Balance at January 1, 2022$— $— $$
Charge-offs— — — — 
Balance at March 31, 2022$— $— $$
Balance at January 1, 2021$10 $$— $11 
Charge-offs(10)(1)— (11)
Balance at March 31, 2021$$$— $— 
Net realized gains and losses on Available-for-Sale securities, determined using the specific identification method, recognized in earningsNet investment income were as follows:
 Three Months Ended March 31,
20222021
(in millions)
Gross realized investment gains$20 $51 
Gross realized investment losses— (1)
Total$20 $50 
 Three Months Ended September 30, Nine Months Ended September 30,
2017 20162017 2016
(in millions)
Gross realized gains$6
 $10
 $50
 $24
Gross realized losses(2) (3) (6) (12)
Other-than-temporary impairments
 
 (1) (1)
Total$4
 $7
 $43
 $11
Other-than-temporary impairmentsThere were no credit losses for the ninethree months ended September 30, 2017March 31, 2022 and 2016 primarily related to credit losses on asset backed securities.2021.
See Note 1314 for a rollforward of net unrealized investment gains (losses) included in AOCI.accumulated other comprehensive income (“AOCI”).
21

AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
Available-for-Sale securities by contractual maturity as of September 30, 2017March 31, 2022 were as follows:
Amortized Cost 
Fair
Value
Amortized CostFair Value
(in millions)(in millions)
Due within one year$2,311
 $2,340
Due within one year$1,847$1,849
Due after one year through five years6,562
 6,820
Due after one year through five years2,1202,133
Due after five years through 10 years3,852
 4,010
Due after five years through 10 years3,5633,382
Due after 10 years4,316
 5,249
Due after 10 years3,6494,337
17,041
 18,419
11,17911,701
Residential mortgage backed securities6,740
 6,790
Residential mortgage backed securities12,11711,695
Commercial mortgage backed securities3,917
 3,952
Commercial mortgage backed securities5,4615,296
Asset backed securities1,611
 1,646
Asset backed securities3,6763,638
Common stocks9
 19
Total$29,318
 $30,826
Total$32,433$32,330
Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Residential mortgage backed securities, commercial mortgage backed securities and asset backed securities are not due at a single maturity date. As such, these securities as well as common stocks, were not included in the maturities distribution.
5.  6.  Financing Receivables
The Company’s financingFinancing receivables includeare comprised of commercial mortgage loans, syndicated loans, consumer loans, policy loans, certificate loans and margin loans. Commercial mortgage loans, syndicated loans, consumer loans, policy loans and certificate loans are reflected in investments. Margin loans are recorded indeposit receivables.
Allowance for LoanCredit Losses
Policy and certificate loans do not exceed the cash surrender value at origination. As there is minimal risk of loss related to policy and certificate loans, the Company does not record an allowance for loan losses. The Company monitors collateral supporting margin loans and requests additional collateral when necessary in order to mitigate the risk of loss. As there is minimal risk of loss related to margin loans, the allowance for loan losses is immaterial.

AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)


The following table presentstables present a rollforward of the allowance for loan losses for the nine months endedcredit losses:
 Commercial LoansConsumer LoansTotal
(in millions)
Balance, January 1, 2022$47 $$50 
Provisions(2)— (2)
Balance, March 31, 2022$45 $$48 
 Commercial LoansConsumer LoansTotal
(in millions)
Balance, January 1, 2021$66 $$68 
Provisions— 
Charge-offs(1)— (1)
Balance, March 31, 2021$65 $$68 

Accrued interest on commercial loans was $12 million and the ending balance$13 million as of the allowance for loan losses by impairment method:
 September 30,
2017 2016
(in millions)
Beginning balance$29
 $32
Charge-offs
 (1)
Provisions(1) (1)
Ending balance$28
 $30
 
Individually evaluated for impairment$3
 $2
Collectively evaluated for impairment25
 28
The recorded investment in financing receivables by impairment method was as follows:
 September 30,
2017
 December 31,
2016
(in millions)
Individually evaluated for impairment$19
 $12
Collectively evaluated for impairment3,490
 3,480
Total$3,509
 $3,492
As of September 30, 2017March 31, 2022 and December 31, 2016,2021, respectively, and is recorded in Receivables and excluded from the Company’s recorded investment in financing receivables individually evaluated for impairment for which there was no related allowance for loan losses was $13 millionamortized cost basis of commercial loans.
Purchases and $7 million, respectively. Unearned income, unamortized premiums and discounts, and net unamortized deferred fees and costs are not material to the Company’s total loan balance.Sales
During the three months ended September 30, 2017March 31, 2022 and 2016,2021, the Company purchased $18NaN and $13 million, and $22 million, respectively, and sold $12 million and nil, respectively, primarily of syndicated loans. During the nine months ended September 30, 2017 and 2016, the Company purchased $154 million and $65 million of syndicated loans, respectively, and sold $16 million of syndicated loans, and $271sold NaN and $4 million, respectively, of consumer loans, respectively. The loans sold duringsyndicated loans.
During the ninethree months ended September 30, 2016 were sold on March 30, 2016 to a third party. The31, 2022 and 2021, the Company received cash proceeds of $260purchased $1 million and recognized a loss$2 million, respectively, of $11 million.residential mortgage loans. The allowance for credit losses for residential mortgage loans was not material as of both March 31, 2022 and 2021.
The Company has not acquired any loans with deteriorated credit quality as of the acquisition date.
Credit Quality Information
Nonperforming loans which are generally loans 90 days or more past due, were $2 $8 million and $9 million as of both September 30, 2017March 31, 2022 and December 31, 2016.2021, respectively. All other loans were considered to be performing.
Commercial Loans
Commercial Mortgage Loans
The Company reviews the credit worthiness of the borrower and the performance of the underlying properties in order to determine the risk of loss on commercial mortgage loans. Loan-to-value ratio is the primary credit quality indicator included in this review.
22

AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
Based on this review, the commercial mortgage loans are assigned an internal risk rating, which management updates as necessary.when credit risk changes. Commercial mortgage loans which management has assigned its highest risk rating were less than 1% and nil of total commercial mortgage loans as of September 30, 2017both March 31, 2022 and December 31, 2016, respectively.2021. Loans with the highest risk rating represent distressed loans which the Company has identified as impaired or expects to become delinquent or enter into foreclosure within the next six months. Total commercial mortgage loans past due were nil as of March 31, 2022 and December 31, 2021, respectively.
The tables below present the amortized cost basis of commercial mortgage loans by the year of origination and loan-to-value ratio :
March 31, 2022
Loan-to-Value Ratio20222021202020192018PriorTotal
(in millions)
> 100%$— $— $— $11 $10 $15 $36 
80% - 100%— — 26 39 76 
60% - 80%21 99 66 48 22 164 420 
40% - 60%17 81 30 87 63 478 756 
< 40%14 26 71 529 646 
Total$42 $203 $122 $174 $168 $1,225 $1,934 

December 31, 2021
Loan-to-Value Ratio20212020201920182017PriorTotal
(in millions)
> 100%$— $— $20 $10 $— $29 $59 
80% - 100%— 29 51 
60% - 80%142 80 60 23 61 138 504 
40% - 60%42 33 86 74 57 401 693 
< 40%11 48 58 478 609 
Total$204 $123 $223 $115 $176 $1,075 $1,916 
Loan-to-value ratio is based on income and expense data provided by borrowers at least annually and long-term capitalization rate assumptions based on property type.
In addition, the Company reviews the concentrations of credit risk by region and property type.

AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)


Concentrations of credit risk of commercial mortgage loans by U.S. region were as follows:
 LoansPercentage
March 31, 2022December 31, 2021March 31, 2022December 31, 2021
(in millions)  
East North Central$205 $194 11 %10 %
East South Central56 57 
Middle Atlantic121 122 
Mountain118 119 
New England27 28 
Pacific637 627 33 33 
South Atlantic503 497 26 26 
West North Central139 141 
West South Central128 131 
 1,934 1,916 100 %100 %
Less: allowance for credit losses12 12   
Total$1,922 $1,904   
 Loans Percentage
September 30,
2017
 December 31,
2016
 September 30,
2017
 December 31,
2016
(in millions)    
East North Central$237
 $198
 9% 7%
East South Central92
 88
 3
 3
Middle Atlantic198
 203
 7
 8
Mountain253
 240
 9
 9
New England87
 91
 3
 3
Pacific785
 746
 28
 28
South Atlantic767
 783
 28
 29
West North Central215
 222
 8
 8
West South Central136
 131
 5
 5
 2,770
 2,702
 100% 100%
Less: allowance for loan losses21
 21
  
  
Total$2,749
 $2,681
  
  
23

AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
Concentrations of credit risk of commercial mortgage loans by property type were as follows:
Loans Percentage LoansPercentage
September 30,
2017
 December 31,
2016
 September 30,
2017
 December 31,
2016
March 31, 2022December 31, 2021March 31, 2022December 31, 2021
(in millions)    (in millions)  
Apartments$560
 $504
 20% 19%Apartments$512 $496 26 %26 %
Hotel41
 42
 1
 1
Hotel15 14 
Industrial466
 446
 17
 17
Industrial321 319 17 17 
Mixed use48
 49
 2
 2
Mixed use67 68 
Office502
 489
 18
 18
Office266 271 14 14 
Retail937
 950
 34
 35
Retail617 617 32 32 
Other216
 222
 8
 8
Other136 131 
2,770
 2,702
 100% 100% 1,934 1,916 100 %100 %
Less: allowance for loan losses21
 21
  
  
Less: allowance for credit lossesLess: allowance for credit losses12 12   
Total$2,749
 $2,681
  
  
Total$1,922 $1,904   
Syndicated Loans
The recorded investment in syndicated loans as of September 30, 2017March 31, 2022 and December 31, 20162021 was $486$146 million and $482$149 million, respectively. The Company’s syndicated loan portfolio is diversified across industries and issuers. The primary credit indicator forTotal syndicated loans is whether the loans are performing in accordance with the contractual terms of the syndication. Total nonperforming syndicated loanspast due were nil as of September 30, 2017March 31, 2022 and December 31, 2016 were $22021. The Company assigns an internal risk rating to each syndicated loan in its portfolio ranging from 1 through 5, with 5 reflecting the lowest quality.
The tables below present the amortized cost basis of syndicated loans by origination year and internal risk rating:
March 31, 2022
Internal Risk Rating20222021202020192018PriorTotal
(in millions)
Risk 5$$— $— $— $— $— $
Risk 4— — — — — 
Risk 3— — 12 30 
Risk 2— 15 32 67 
Risk 1— 12 24 45 
Total$$24 $$19 $24 $71 $146 
December 31, 2021
Internal Risk Rating20212020201920182017PriorTotal
(in millions)
Risk 5$— $— $$— $— $— $
Risk 4— — — — 
Risk 3— — 20 
Risk 215 12 10 18 12 71 
Risk 111 16 13 54 
Total$23 $$20 $26 $40 $33 $149 
Financial Advisor Loans
The Company offers loans to financial advisors for transitional cost assistance. Repayment of the loan is highly dependent on the retention of the financial advisor. In the event a financial advisor is no longer affiliated with the Company, any unpaid balances become immediately due. Accordingly, the primary risk factor for advisor loans is termination status. The allowance for credit losses related to loans to advisors that have terminated their relationship with the Company was $5 million as of both March 31, 2022 and $1 million, respectively.December 31, 2021.
24

AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
The tables below present the amortized cost basis of advisor loans by origination year and termination status:
March 31, 2022
Termination Status20222021202020192018PriorTotal
(in millions)
Active$40 $131 $142 $114 $86 $212 $725 
Terminated— — — 
Total$40 $131 $143 $115 $86 $218 $733 
December 31, 2021
Termination Status20212020201920182017PriorTotal
(in millions)
Active$136 $147 $119 $89 $116 $113 $720 
Terminated— — — 
Total$137 $148 $119 $89 $116 $119 $728 
Consumer Loans
Credit Card Receivables
The recorded investment in consumer loanscredit cards are co-branded with Ameriprise Financial, Inc. and issued to the Company’s customers by a third party. FICO scores and delinquency rates are the primary credit quality indicators for the credit card portfolio. Delinquency rates are measured based on the number of days past due. Credit card receivables over 30 days past due were 1% of total credit card receivables as of September 30, 2017both March 31, 2022 and December 31, 20162021.
The table below presents the amortized cost basis of credit card receivables by FICO score:
March 31, 2022December 31, 2021
(in millions)
> 800$28 $30 
750 - 79923 24 
700 - 74923 25 
650 - 69914 14 
< 650
Total$93 $98 
Policy Loans
Policy loans do not exceed the cash surrender value at origination. As there is minimal risk of loss related to policy loans, there is 0 allowance for credit losses.
Margin Loans
The margin loans balance was $253$1.2 billion as of both March 31, 2022 and December 31, 2021. The Company monitors collateral supporting margin loans and requests additional collateral when necessary in order to mitigate the risk of loss. As of both March 31, 2022 and December 31, 2021, the allowance for credit losses on margin loans was not material.
Pledged Asset Lines of Credit
The pledged asset lines of credit balance was $520 million and $308$467 million as of March 31, 2022 and December 31, 2021, respectively. The Company considersmonitors collateral supporting pledged asset lines of credit and requests additional collateral when necessary in order to mitigate the credit worthinessrisk of borrowers (FICO score), collateral characteristics such as loan-to-value (“LTV”) and geographic concentration in determining the allowance for loan losses for consumer loans. At a minimum, management updates FICO scores and LTV ratios semiannually.
loss. As of September 30, 2017March 31, 2022 and December 31, 2016, approximately 1%2021, there was no allowance for credit losses on pledged asset lines of credit.
Deposit Receivables
Deposit receivables were $7.8 billion and 2%, respectively,$7.9 billion as of consumer loans had FICO scores below 640. As of both September 30, 2017March 31, 2022 and December 31, 2016, none2021, respectively. Deposit receivables are fully collateralized by the fair value of the Company’s consumer loans had LTV ratios greater than 90%. The Company’s most significant geographic concentrations for consumer loans areassets held in California representing 52%trusts. Based on management’s evaluation of the portfolionature of the underlying assets and the potential for changes in the collateral value, there was no allowance for credit losses for the deposit receivables as of both September 30, 2017March 31, 2022 and December 31, 2016. Colorado and Washington represent 18% and 13%, respectively, of the portfolio as of both September 30, 2017 and December 31, 2016. No other state represents more than 10% of the total consumer loan portfolio.

AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)


During the third quarter of 2017, the Company entered into an agreement with an unaffiliated third party to sell $258 million of consumer mortgage loans and recorded a $7 million loss to reflect the loans at fair value. 2021.
Troubled Debt Restructurings
The recorded investment in restructuredThere were no loans was not materialaccounted for as of September 30, 2017 and December 31, 2016. Thea troubled debt restructurings did not have a material impact torestructuring by the Company’s allowance for loan losses or income recognized forCompany during the three months ended March 31, 2022 and nine months ended September 30, 2017 and 2016.2021. There are no commitments to lend additional funds to borrowers whose loans have been restructured.
25
6.

AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
7.  Deferred Acquisition Costs and Deferred Sales Inducement Costs
In the third quarter of the year, management updated market-related inputs and implemented model changes related to our living benefit valuation. In addition, management conducted its annual review of life insurance and annuity valuation assumptions relative to current experience and management expectations including modeling changes. These aforementioned changes are collectively referred to as unlocking. The impact of unlocking to DAC in the third quarter of 2017 primarily reflected improved persistency and mortality on life insurance contracts and a correction related to a variable annuity model assumption partially offset by updates to market-related inputs to the living benefit valuation. The impact of unlocking to DAC in the third quarter of 2016 primarily reflected low interest rates that more than offset benefits from persistency on annuity contracts without living benefits. In addition, the Company’s review of its closed LTC business in the prior year period resulted in the write-off of DAC, which was included in the impact of unlocking.
The balances of and changes in DAC were as follows:
20222021
(in millions)
Balance at January 1$2,782 $2,532 
Capitalization of acquisition costs53 65 
Amortization(96)(5)
Impact of change in net unrealized (gains) losses on securities189 93 
Balance at March 31$2,928 $2,685 
 2017 2016 
(in millions)
Balance at January 1$2,648
 $2,730
(1) 
Capitalization of acquisition costs220
 274
(2) 
Amortization, excluding the impact of valuation assumptions review(201) (279) 
Amortization, impact of valuation assumptions review12
 (81) 
Impact of change in net unrealized securities (gains) losses(18) (105) 
Balance at September 30$2,661
 $2,539
(1) 
(1)
DAC balances were restated for the correction of commission expense accrual for certain insurance and annuity products in the fourth quarter of 2016. See Note 1 in the 2016 10-K.
(2)
Includes a $27 million benefit related to the write-off of the deferred reinsurance liability in connection with the loss recognition on LTC business.
The balances of and changes in DSIC, which is included in otherOther assets, were as follows:
20222021
(in millions)
Balance at January 1$189 $189 
Amortization(8)(3)
Impact of change in net unrealized (gains) losses on securities
Balance at March 31$187 $190 
 2017 2016
(in millions)
Balance at January 1$302
 $335
Capitalization of sales inducement costs3
 4
Amortization, excluding the impact of valuation assumptions review(26) (32)
Amortization, impact of valuation assumptions review(1) 4
Impact of change in net unrealized securities (gains) losses1
 (14)
Balance at September 30$279
 $297

AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)


7.8.  Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities
Policyholder account balances, future policy benefits and claims consisted of the following:

March 31, 2022December 31, 2021
(in millions)
Policyholder account balances
Fixed annuities (1)
$8,002 $8,117 
Variable annuity fixed sub-accounts4,951 4,990 
Universal life (“UL”)/variable universal life (“VUL”) insurance3,092 3,103 
Indexed universal life (“IUL”) insurance2,587 2,534 
Structured variable annuities4,885 4,440 
Other life insurance553 563 
Total policyholder account balances24,070 23,747 
Future policy benefits
Variable annuity guaranteed minimum withdrawal benefits (“GMWB”)1,750 2,336 
Variable annuity guaranteed minimum accumulation benefits (“GMAB”) (2)
(17)(23)
Other annuity liabilities96 67 
Fixed annuity life contingent liabilities1,254 1,278 
Life and disability income insurance1,125 1,139 
Long term care insurance5,485 5,664 
UL/VUL and other life insurance additional liabilities1,203 1,291 
Total future policy benefits10,896 11,752 
Policy claims and other policyholders’ funds259 251 
Total policyholder account balances, future policy benefits and claims$35,225 $35,750 
 September 30,
2017
 December 31,
2016
 
(in millions)
Policyholder account balances
Fixed annuities (1)
$10,100
 $10,588
 
Variable annuity fixed sub-accounts5,187
 5,211
 
Variable universal life (“VUL”)/universal life (“UL”) insurance3,028
 3,007
 
Indexed universal life (“IUL”) insurance1,290
 1,054
 
Other life insurance731
 758
 
Total policyholder account balances20,336
 20,618
 
 
Future policy benefits
Variable annuity guaranteed minimum withdrawal benefits (“GMWB”)539
 1,017
 
Variable annuity guaranteed minimum accumulation benefits (“GMAB”)(73)
(2) 
(24)
(2) 
Other annuity liabilities85
 66
 
Fixed annuity life contingent liabilities1,482
 1,497
 
Life, disability income and long term care insurance6,027
 5,556
 
VUL/UL and other life insurance additional liabilities674
 588
 
Total future policy benefits8,734
 8,700
 
Policy claims and other policyholders’ funds893
 884
 
Total policyholder account balances, future policy benefits and claims$29,963
 $30,202
 
(1) Includes fixed deferred annuities, non-life contingent fixed payout annuities and equityfixed deferred indexed annuity (“EIA”) host contracts.
(2) Includes the fair value of GMAB embedded derivatives that was a net asset as of both September 30, 2017March 31, 2022 and December 31, 20162021 reported as a contra liability.
26

AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
Separate account liabilities consisted of the following:
March 31, 2022December 31, 2021
(in millions)
Variable annuity$75,921 $82,862 
VUL insurance8,719 9,343 
Other insurance31 33 
Threadneedle investment liabilities4,998 5,253 
Total$89,669 $97,491 
 September 30,
2017
 December 31,
2016
(in millions)
Variable annuity$73,467
 $69,606
VUL insurance7,154
 6,659
Other insurance33
 33
Threadneedle investment liabilities4,633
 3,912
Total$85,287
 $80,210
8.9.  Variable Annuity and Insurance Guarantees
The majorityMost of the variable annuity contracts offeredissued by the Company contain one or more guaranteed minimum death benefit (“GMDB”) provisions. The Company also offers variable annuities withprovisions or 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, theThe Company offers contracts withdiscontinued new sales of substantially all GMWB and GMAB provisions.at the end of 2021. The Company also previously offered contracts containing guaranteed minimum income benefit (“GMIB”) provisions.
Certain UL policies 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.

AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)


The following table provides information related to variable annuity guarantees for which the Company has established additional liabilities:
Variable Annuity 
Guarantees
by Benefit Type (1)
March 31, 2022December 31, 2021
Total Contract ValueContract Value in Separate AccountsNet Amount
at Risk
Weighted Average
Attained Age
Total Contract ValueContract Value in Separate AccountsNet Amount
at Risk
Weighted Average
Attained Age
(in millions, except age)
GMDB:
Return of premium$64,309 $62,458 $122 69$70,020 $68,145 $69
Five/six-year reset7,814 5,125 40 698,309 5,612 68
One-year ratchet5,689 5,375 222 726,177 5,858 13 71
Five-year ratchet1,318 1,266 13 681,438 1,386 68
Other1,190 1,175 99 741,302 1,286 38 74
Total — GMDB$80,320 $75,399 $496 69$87,246 $82,287 $64 69
GGU death benefit$1,173 $1,112 $164 72$1,260 $1,198 $184 72
GMIB$166 $153 $72$184 $170 $71
GMWB:
GMWB$1,724 $1,719 $75$1,900 $1,895 $75
GMWB for life47,847 47,815 575 6952,387 52,334 187 69
Total — GMWB$49,571 $49,534 $577 69$54,287 $54,229 $188 69
GMAB$1,771 $1,771 $62$2,005 $2,005 $— 62
Variable Annuity 
Guarantees
by Benefit Type(1)
September 30, 2017 December 31, 2016
Total Contract Value Contract Value in Separate Accounts 
Net Amount
at Risk
 
Weighted Average
Attained Age
Total Contract Value Contract Value in Separate Accounts 
Net Amount
at Risk
 
Weighted Average
Attained Age
 (in millions, except age)
GMDB:
Return of premium$59,806
 $57,840
 $11
 66 $56,143
 $54,145
 $208
 65
Five/six-year reset8,869
 6,141
 13
 66 8,878
 6,170
 22
 66
One-year ratchet6,502
 6,139
 12
 69 6,426
 6,050
 110
 68
Five-year ratchet1,562
 1,504
 1
 65 1,542
 1,483
 7
 64
Other1,057
 1,034
 58
 72 965
 942
 86
 71
Total — GMDB$77,796
 $72,658
 $95
 66 $73,954
 $68,790
 $433
 65
 
GGU death benefit$1,103
 $1,052
 $126
 69 $1,047
 $996
 $108
 68
GMIB$236
 $219
 $8
 69 $245
 $227
 $13
 68
 
GMWB:
GMWB$2,525
 $2,517
 $2
 71 $2,650
 $2,642
 $2
 70
GMWB for life42,933
 42,813
 160
 67 39,436
 39,282
 289
(2) 
66
Total — GMWB$45,458
 $45,330
 $162
 67 $42,086
 $41,924
 $291
 66
 
GMAB$3,157
 $3,153
 $
 59 $3,484
 $3,476
 $21
 59
(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 the account value are not shown in this table.
(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 the account value are not shown in this table.
(2)
Amount revised to reflect updated contractholder mortality assumptions at December 31, 2016.
The net amount at risk for GMDB, GGU and GMAB is defined as the current guaranteed benefit amount in excess of the current contract value. The net amount at risk for GMIB is defined as the greater of the present value of the minimum guaranteed annuity payments less the current contract value or zero. The net amount at risk for GMWB is defined as the greater of the present value of the minimum guaranteed withdrawal payments less the current contract value or zero.
27

AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
The following table provides information related to insurance guarantees for which the Company has established additional liabilities:
September 30, 2017 December 31, 2016 March 31, 2022 December 31, 2021
Net Amount
at Risk
 Weighted Average Attained AgeNet Amount
at Risk
 Weighted Average Attained AgeNet Amount
at Risk
Weighted Average Attained AgeNet Amount
at Risk
Weighted Average Attained Age
(in millions, except age)(in millions, except age)
UL secondary guarantees$6,443
 65 $6,376
 64UL secondary guarantees$6,563 68$6,564 68
The net amount at risk for UL secondary guarantees is defined as the current guaranteed death benefit amount in excess of the current policyholder account balance.

AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)


Changes in additional liabilities (contra liabilities) for variable annuity and insurance guarantees were as follows:
 GMDB & GGUGMIB
GMWB (1)
GMAB (1)
UL
(in millions)
Balance at January 1, 2022$36 $$2,336 $(23)$1,020 
Incurred claims— — (586)31 
Paid claims(3)— — — (9)
Balance at March 31, 2022$33 $$1,750 $(17)$1,042 
Balance at January 1, 2021$24 $$3,049 $$916 
Incurred claims— (1,570)(23)32 
Paid claims(1)— — — (8)
Balance at March 31, 2021$26 $$1,479 $(22)$940 
 GMDB & GGU GMIB 
GMWB (1)
 
GMAB (1)
 UL
(in millions)
Balance at January 1, 2016$14
 $8
 $1,057
 $
 $332
Incurred claims10
 
 1,056
 9
 99
Paid claims(7) 
 
 (1) (18)
Balance at September 30, 2016$17
 $8
 $2,113
 $8
 $413
 
Balance at January 1, 2017$16
 $8
 $1,017
 $(24) $434
Incurred claims3
 
 (478) (49) 59
Paid claims(3) (1) 
 
 (22)
Balance at September 30, 2017$16
 $7
 $539
 $(73) $471
(1) The incurred claims for GMWB and GMAB representinclude the change in the fair value of the liabilities (contra liabilities) less paid claims.
The liabilities for guaranteed benefits are supported by general account assets.
The following table summarizes the distribution of separate account balances by asset type for variable annuity contracts providing guaranteed benefits:
March 31, 2022December 31, 2021
(in millions)
Mutual funds:
Equity$46,511 $49,183 
Bond21,640 24,998 
Other7,438 8,316 
Total mutual funds$75,589 $82,497 
28
 September 30,
2017
 December 31,
2016
(in millions)
Mutual funds:
Equity$44,365
 $40,622
Bond23,481
 23,142
Other5,117
 5,326
Total mutual funds$72,963
 $69,090

AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
9.10.  Debt
The balances and the stated interest rates of outstanding debt of Ameriprise Financial were as follows: 
 Outstanding BalanceStated Interest Rate
March 31, 2022December 31, 2021March 31, 2022December 31, 2021
(in millions) 
Long-term debt:
Senior notes due 2022$— $500 — %3.0 %
Senior notes due 2023750 750 4.0 4.0 
Senior notes due 2024550 550 3.7 3.7 
Senior notes due 2025500 500 3.0 3.0 
Senior notes due 2026500 500 2.9 2.9 
Finance lease liabilities37 40 N/AN/A
Other (1)
(7)(8)N/AN/A
Total long-term debt2,330 2,832 
Short-term borrowings:
Federal Home Loan Bank (“FHLB”) advances200 200 0.6 %0.3 %
Total$2,530 $3,032   
 Outstanding Balance Stated Interest Rate
September 30,
2017
 December 31,
2016
September 30,
2017
 December 31,
2016
(in millions)  
Long-term debt:
Senior notes due 2019$300
 $300
 7.3% 7.3%
Senior notes due 2020750
 750
 5.3
 5.3
Senior notes due 2023750
 750
 4.0
 4.0
Senior notes due 2024550
 550
 3.7
 3.7
Senior notes due 2026500
 500
 2.9
 2.9
Capitalized lease obligations41
 49
  
  
Other(1)
11
 18
    
Total long-term debt2,902
 2,917
    
 
Short-term borrowings:
Federal Home Loan Bank (“FHLB”) advances151
 150
 1.3
 0.8
Repurchase agreements50
 50
 1.4
 0.9
Total short-term borrowings201
 200
  
  
Total$3,103
 $3,117
  
  
(1) Amounts includeIncludes adjustments for fair value hedges on the Company’s long-term debt andnet unamortized discount and debt issuance costs. See Note 12 for information on the Company’s fair value hedges.

AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)


Long-term Debt
On August 11, 2016, the Company issued $500 million of unsecured senior notes due September 15, 2026, and incurreddiscounts, debt issuance costs of $4 million. Interest payments are due semi-annuallyand other lease obligations.
N/A Not Applicable
Long-Term Debt
The Company’s senior notes may be redeemed, in arrears on March 15 and September 15, commencing on March 15, 2017.
In the first quarter of 2016, the Company extinguished $16 million of its junior subordinated notes due 2066whole or in open market transactions and recognized a gain of less than $1 million. In the second quarter of 2016, the Company redeemed the remaining $229 million of its junior subordinated notes due 2066part, at any time prior to maturity at a redemption price equal to 100%the greater of the principal balanceamount and the present value of remaining scheduled payments, discounted to the notesredemption date, plus accrued and compounded interest.
Short-term Borrowings
The Company enters into repurchase agreements in exchange for cash, which it accounts for as secured borrowings and has pledged Available-for-Sale securities to collateralizerepaid $500 million principal amount of its obligations under the repurchase agreements. As of September 30, 2017 and December 31, 2016, the Company has pledged $32 million and $33 million of agency residential mortgage backed securities and $16 million and $19 million of commercial mortgage backed securities, respectively. The remaining3.0% senior notes at maturity of outstanding repurchase agreements was less than one month as of September 30, 2017 and less than three months as of December 31, 2016. The stated interest rate of the repurchase agreements is a weighted average annualized interest rate on the repurchase agreements held as of the balance sheet date.March 22, 2022.
Short-Term Borrowings
The Company’s life insurance subsidiary is a memberand bank subsidiaries are members of the FHLB of Des Moines which provides access to collateralized borrowings. The Company has pledged Available-for-Sale securities consisting of commercial mortgage backed securities and residential mortgage backed securities as collateral to collateralize its obligation underaccess these borrowings. The fair value of the securities pledged is recorded in investmentsInvestments and was $764 million and $771 million$1.2 billion of commercial mortgage backed securities as of September 30, 2017both March 31, 2022 and December 31, 2016,2021, and $587 million and $581 million, of residential mortgage backed securities, as of March 31, 2022 and December 31, 2021, respectively. The remaining maturity of outstanding FHLB advances was less than three months as of September 30, 2017both March 31, 2022 and less than four months as of December 31, 2016.2021. The stated interest rate of the FHLB advances is a weighted average annualized interest rate on the outstanding borrowings as of the balance sheet date.
On October 12, 2017,In June 2021, the Company entered into an amended and restated credit agreement that provides for an unsecured revolving credit facility of up to $750 million$1.0 billion that expires in October 2022.June 2026. Under the terms of the credit agreement for the facility, the Company may increase the amount of this facility up to $1.0$1.25 billion upon satisfaction of certain approval requirements. This agreement replaced the Company’s unsecured revolving credit facility that was to expire in May 2020. TheAs of both March 31, 2022 and December 31, 2021, the Company had no borrowings outstanding under this facility asand $1 million of both September 30, 2017 and December 31, 2016 and outstanding letters of credit issued against this facility were $1 million as of both September 30, 2017 and December 31, 2016.the facility. The Company’s credit facility contains various administrative, reporting, legal and financial covenants. The Company was in compliance with all such covenants as of both September 30, 2017March 31, 2022 and December 31, 2016.2021.
10.  11.  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 Company’s 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.
29

AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
The three levels of the fair value hierarchy are defined as follows:
Level 1Unadjusted quoted prices for identical assets or liabilities in active markets that are accessible at the measurement date.
Level 2Prices or valuations based on observable inputs other than quoted prices in active markets for identical assets and liabilities.
Level 3Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable.
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.

30

AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)(Continued)


The following tables present the balances of assets and liabilities of Ameriprise Financial measured at fair value on a recurring basis:basis (See Note 4 for the balances of assets and liabilities for consolidated investment entities): 
 March 31, 2022 
Level 1Level 2Level 3Total
(in millions)
Assets
Cash equivalents$1,824 $2,525 $— $4,349  
Available-for-Sale securities:
Corporate debt securities— 8,885 497 9,382  
Residential mortgage backed securities— 11,695 — 11,695  
Commercial mortgage backed securities— 5,184 112 5,296  
Asset backed securities— 3,631 3,638  
State and municipal obligations— 1,001 — 1,001  
U.S. government and agency obligations1,160 — — 1,160  
Foreign government bonds and obligations— 82 — 82  
Other securities— 76 — 76 
Total Available-for-Sale securities1,160 30,554 616 32,330  
Investments at net asset value (“NAV”)11 (1)
Trading and other securities209 18 — 227 
Separate account assets at NAV89,669 (1)
Investments and cash equivalents segregated for regulatory purposes599 — — 599 
Receivables:
Fixed deferred indexed annuity ceded embedded derivatives— — 55 55 
Other assets:
Interest rate derivative contracts736 — 739  
Equity derivative contracts149 3,707 — 3,856  
Credit derivative contracts— 45 — 45 
Foreign exchange derivative contracts28 — 30  
Total other assets154 4,516 — 4,670  
Total assets at fair value$3,946 $37,613 $671 $131,910  
 September 30, 2017
  
Level 1 Level 2 Level 3 Total
(in millions)
Assets
Cash equivalents$136
 $1,882
 $
 $2,018
  
Available-for-Sale securities:
Corporate debt securities
 14,383
 1,267
 15,650
  
Residential mortgage backed securities
 6,625
 165
 6,790
  
Commercial mortgage backed securities
 3,887
 65
 3,952
  
Asset backed securities
 1,611
 35
 1,646
  
State and municipal obligations
 2,455
 
 2,455
  
U.S. government and agencies obligations6
 
 
 6
  
Foreign government bonds and obligations
 308
 
 308
  
Common stocks4
 8
 1
 13
  
Common stocks measured at net asset value (“NAV”)      6
(1) 
Total Available-for-Sale securities10
 29,277
 1,533
 30,826
  
Trading securities131
 32
 
 163
  
Separate account assets measured at NAV85,287
(1) 
Investments segregated for regulatory purposes424
 
 
 424
 
Other assets:
Interest rate derivative contracts1
 1,200
 
 1,201
  
Equity derivative contracts51
 1,891
 
 1,942
  
Credit derivative contracts
 4
 
 4
 
Foreign exchange derivative contracts1
 42
 
 43
  
Total other assets53
 3,137
 
 3,190
  
Total assets at fair value$754
 $34,328
 $1,533
 $121,908
  
Liabilities
Policyholder account balances, future policy benefits and claims:
Fixed deferred indexed annuity embedded derivatives$— $$52 $57  
IUL embedded derivatives— — 848 848  
GMWB and GMAB embedded derivatives— — 828 828 (2)
Structured variable annuity embedded derivatives— — 280 280 
Total policyholder account balances, future policy benefits and claims— 2,008 2,013 (3)
Customer deposits— —  
Other liabilities:
Interest rate derivative contracts308 — 315  
Equity derivative contracts259 3,525 — 3,784  
Foreign exchange derivative contracts— — 
Other204 62 271  
Total other liabilities470 3,841 62 4,373  
Total liabilities at fair value$470 $3,848 $2,070 $6,388  
31

Liabilities
Policyholder account balances, future policy benefits and claims:
EIA embedded derivatives$
 $4
 $
 $4
  
IUL embedded derivatives
 
 577
 577
  
GMWB and GMAB embedded derivatives
 
 45
 45
(2) 
Total policyholder account balances, future policy benefits and claims
 4
 622
 626
(3) 
Customer deposits
 9
 
 9
  
Other liabilities:
Interest rate derivative contracts
 416
 
 416
  
Equity derivative contracts5
 2,664
 
 2,669
  
Foreign exchange derivative contracts4
 27
 
 31
 
Other6
 6
 27
 39
  
Total other liabilities15
 3,113
 27
 3,155
  
Total liabilities at fair value$15
 $3,126
 $649
 $3,790
  

AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)

(Continued)

 December 31, 2021 
Level 1Level 2Level 3Total
(in millions)
Assets
Cash equivalents$2,341 $3,478 $— $5,819  
Available-for-Sale securities:
Corporate debt securities— 9,430 502 9,932  
Residential mortgage backed securities— 10,944 — 10,944  
Commercial mortgage backed securities— 4,951 35 4,986  
Asset backed securities— 3,647 3,654  
State and municipal obligations— 1,092 — 1,092  
U.S. government and agency obligations1,301 — — 1,301  
Foreign government bonds and obligations— 92 — 92  
Other securities— 49 — 49 
Total Available-for-Sale securities1,301 30,205 544 32,050  
Investments at NAV11 (1)
Trading and other securities217 25 — 242  
Separate account assets at NAV97,491 (1)
Investments and cash equivalents segregated for regulatory purposes600 — — 600 
Receivables:
Fixed deferred indexed annuity ceded embedded derivatives— — 59 59 
Other assets:
Interest rate derivative contracts1,251 — 1,252  
Equity derivative contracts158 4,135 — 4,293  
Credit derivative contracts— — 
Foreign exchange derivative contracts19 — 20  
Total other assets160 5,414 — 5,574  
Total assets at fair value$4,619 $39,122 $603 $141,846  
 December 31, 2016
  
Level 1 Level 2 Level 3 Total
(in millions)
Assets
Cash equivalents$30
 $1,796
 $
 $1,826
  
Available-for-Sale securities:
Corporate debt securities
 14,925
 1,311
 16,236
  
Residential mortgage backed securities
 6,650
 268
 6,918
  
Commercial mortgage backed securities
 3,367
 
 3,367
  
Asset backed securities
 1,481
 68
 1,549
  
State and municipal obligations
 2,358
 
 2,358
  
U.S. government and agencies obligations8
 
 
 8
  
Foreign government bonds and obligations
 261
 
 261
  
Common stocks8
 8
 1
 17
  
Common stocks at NAV      5
(1) 
Total Available-for-Sale securities16
 29,050
 1,648
 30,719
  
Trading securities9
 16
 
 25
  
Separate account assets at NAV80,210
(1) 
Investments segregated for regulatory purposes425
 
 
 425
 
Other assets:
Interest rate derivative contracts
 1,778
 
 1,778
  
Equity derivative contracts43
 1,531
 
 1,574
  
Credit derivative contracts
 1
 
 1
 
Foreign exchange derivative contracts13
 80
 
 93
  
Total other assets56
 3,390
 
 3,446
  
Total assets at fair value$536
 $34,252
 $1,648
 $116,651
  
Liabilities
Policyholder account balances, future policy benefits and claims:
Fixed deferred indexed annuity embedded derivatives$— $$56 $61  
IUL embedded derivatives— — 905 905  
GMWB and GMAB embedded derivatives— — 1,486 1,486 (4)
Structured variable annuity embedded derivatives— — 406 406 
Total policyholder account balances, future policy benefits and claims— 2,853 2,858 (5)
Customer deposits— —  
Other liabilities:
Interest rate derivative contracts467 — 468  
Equity derivative contracts101 3,653 — 3,754  
Foreign exchange derivative contracts— — 
Other212 61 277  
Total other liabilities315 4,124 61 4,500  
Total liabilities at fair value$315 $4,133 $2,914 $7,362  
Liabilities
Policyholder account balances, future policy benefits and claims:
EIA embedded derivatives$
 $5
 $
 $5
  
IUL embedded derivatives
 
 464
 464
  
GMWB and GMAB embedded derivatives
 
 614
 614
(4) 
Total policyholder account balances, future policy benefits and claims
 5
 1,078
 1,083
(5) 
Customer deposits
 8
 
 8
  
Other liabilities:
Interest rate derivative contracts2
 987
 
 989
  
Equity derivative contracts3
 2,132
 
 2,135
  
Foreign exchange derivative contracts2
 45
 
 47
 
Other3
 8
 13
 24
  
Total other liabilities10
 3,172
 13
 3,195
  
Total liabilities at fair value$10
 $3,185
 $1,091
 $4,286
  
(1) Amounts are comprised of certain investmentsfinancial instruments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient and have not been classified in the fair value hierarchy.
(2) The fair value of the GMWB and GMAB embedded derivatives included $494 million$1.0 billion of individual contracts in a liability position and $449$204 million of individual contracts in an asset position (recorded as a contra liability) as of September 30, 2017.March 31, 2022.
(3)
(3) The Company’s adjustment for nonperformance risk resulted in a $607 million cumulative decrease to the embedded derivatives as of March 31, 2022.
(4) The fair value of the GMWB and GMAB embedded derivatives included $1.6 billion of individual contracts in a liability position and $133 million of individual contracts in an asset position (recorded as a contra liability) as of December 31, 2021.
(5) The Company’s adjustment for nonperformance risk resulted in a $598 million cumulative decrease to the embedded derivatives as of December 31, 2021.
The Company’s adjustment for nonperformance risk resulted in a $(376) million cumulative increase (decrease) to the embedded derivatives as of September 30, 2017.

32

AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)

(Continued)

(4)
The fair value of the GMWB and GMAB embedded derivatives included $880 million of individual contracts in a liability position and $266 million of individual contracts in an asset position as of December 31, 2016.
(5)
The Company’s adjustment for nonperformance risk resulted in a $(498) million cumulative increase (decrease) to the embedded derivatives as of December 31, 2016.
The following tables provide a summary of changes in Level 3 assets and liabilities of Ameriprise Financial measured at fair value on a recurring basis:
Available-for-Sale SecuritiesReceivables
Corporate Debt SecuritiesCommercial Mortgage Backed SecuritiesAsset Backed SecuritiesTotalFixed Deferred Indexed Annuity Ceded Embedded Derivatives
(in millions)
Balance at January 1, 2022$502 $35 $$544 $59 
Total gains (losses) included in:
Net income— — — — (1)(3)
Other comprehensive income (loss)(22)— — (22)— 
Purchases23 112 — 135 — 
Settlements(6)— — (6)(1)
Transfers out of Level 3— (35)— (35)— 
Balance at March 31, 2022$497 $112 $$616 $55 
Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at March 31, 2022$(21)$— $— $(21)$— 
 Available-for-Sale Securities
Corporate Debt Securities Residential Mortgage Backed Securities Commercial Mortgage Backed Securities Asset Backed Securities Common Stocks Total
(in millions)
Balance, July 1, 2017$1,333
 $172
 $
 $33
 $
 $1,538
Total gains (losses) included in:
Other comprehensive income(1) 1
 
 (2) 1
 (1)
Purchases39
 
 65
 10
 
 114
Settlements(104) (9) 
 
 
 (113)
Transfers into Level 3
 20
 
 13
 
 33
Transfers out of Level 3
 (19) 
 (19) 
 (38)
Balance, September 30, 2017$1,267
 $165
 $65
 $35
 $1
 $1,533
Changes in unrealized gains (losses) relating to assets held at September 30, 2017$
 $
 $
 $
 $
 $
Policyholder Account Balances, Future Policy Benefits and ClaimsOther Liabilities
Fixed Deferred Indexed Annuity Embedded DerivativesIUL Embedded DerivativesGMWB and GMAB Embedded DerivativesStructured Variable Annuity Embedded DerivativesTotal
(in millions)
Balance at January 1, 2022$56 $905 $1,486 $406 $2,853 $61 
Total (gains) losses included in:
Net income(3)(2)(32)(2)(679)(3)(124)(3)(838)— (4)
Other comprehensive income (loss)— — — — — (1)
Issues— — 87 91 
Settlements(1)(25)(66)(6)(98)(6)
Balance at March 31, 2022$52 $848 $828 $280 $2,008 $62 
Changes in unrealized (gains) losses in net income relating to liabilities held at March 31, 2022$— $(32)(2)$(671)(3)$— $(703)$— 
33

 
Policyholder Account Balances,
Future Policy Benefits and Claims
 Other Liabilities
IUL Embedded Derivatives GMWB and GMAB Embedded Derivatives Total
(in millions)
Balance, July 1, 2017$527
 $272
 $799
 $14
Total (gains) losses included in:
Net income35
(1) 
(309)
(2) 
(274) 
Issues26
 84
 110
 13
Settlements(11) (2) (13) 
Balance, September 30, 2017$577
 $45
 $622
 $27
Changes in unrealized (gains) losses relating to liabilities held at September 30, 2017$35
(1) 
$(307)
(2) 
$(272) $

AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)

(Continued)

Available-for-Sale Securities
Corporate Debt SecuritiesResidential Mortgage Backed SecuritiesAsset Backed SecuritiesTotal
(in millions)
Balance at January 1, 2021$772 $$32 $813 
Total gains (losses) included in:
Net income— — (1)(1)(1)
Other comprehensive income (loss)(5)— — (5)
Purchases46 78 — 124 
Settlements(1)— (1)(2)
Balance at March 31, 2021$812 $87 $30 $929 
Changes in unrealized gains (losses) in net income relating to assets held at March 31, 2021$— $— $(1)$(1)(1)
Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at March 31, 2021$(5)$— $— $(5)
Policyholder Account Balances, Future Policy Benefits and ClaimsOther Liabilities
Fixed Deferred Indexed Annuity Embedded DerivativesIUL Embedded DerivativesGMWB and GMAB Embedded DerivativesStructured Variable Annuity Embedded DerivativesTotal
(in millions)
Balance at January 1, 2021$49 $935 $2,316 $70 $3,370 $43 
Total (gains) losses included in:
Net income(2)29 (2)(1,729)(3)75 (3)(1,621)— (4)
Issues— 90 (15)80 
Settlements(1)(20)38 (6)11 (2)
Balance at March 31, 2021$52 $949 $715 $124 $1,840 $43 
Changes in unrealized (gains) losses in net income relating to liabilities held at March 31, 2021$— $29 (2)$(1,705)(3)$— $(1,676)$— 
 Available-for-Sale Securities Other Derivative Contracts 
Corporate Debt Securities Residential Mortgage Backed Securities Commercial Mortgage Backed Securities Asset Backed Securities Total
(in millions)  
Balance, July 1, 2016$1,350
 $153
 $
 $178
 $1,681
 $2
 
Total gains (losses) included in: 
Net income
 
 
 1
 1
(3) 
(2)
(2) 
Other comprehensive income(2) 1
 
 1
 
 
 
Purchases20
 144
 33
 12
 209
 
 
Settlements(26) (14) 
 
 (40) 
 
Transfers out of Level 3
 1
 
 (27) (26) 
 
Balance, September 30, 2016$1,342
 $285
 $33
 $165
 $1,825
 $
 
Changes in unrealized gains (losses) relating to assets held at September 30, 2016$
 $
 $
 $
 $
 $(2)
(2) 
 
Policyholder Account Balances,
Future Policy Benefits and Claims
  
IUL Embedded Derivatives GMWB and GMAB Embedded Derivatives Total Other Liabilities
(in millions)  
Balance, July 1, 2016$408
 $1,965
 $2,373
 $
Total (gains) losses included in:  
Net income12
(1) 
(280)
(2) 
(268) 
Issues25
 77
 102
 13
Settlements(7) (6) (13) 
Balance, September 30, 2016$438
 $1,756
 $2,194
 $13
Changes in unrealized (gains) losses relating to liabilities held at September 30, 2016$12
(1) 
$(267)
(2) 
$(255) $
 Available-for-Sale Securities 
Corporate Debt Securities Residential Mortgage Backed Securities Commercial Mortgage Backed Securities Asset Backed Securities Common Stocks Total
(in millions)
Balance, January 1, 2017$1,311
 $268
 $
 $68
 $1
 $1,648
 
Total gains (losses) included in:
Other comprehensive income1
 2
 
 
 1
 4
 
Purchases109
 132
 65
 64
 
 370
 
Settlements(154) (34) 
 (15) 
 (203) 
Transfers into Level 3
 20
 
 27
 8
 55
 
Transfers out of Level 3
 (223) 
 (109) (9) (341) 
Balance, September 30, 2017$1,267
 $165
 $65
 $35
 $1
 $1,533
 
Changes in unrealized gains (losses) relating to assets held at September 30, 2017$
 $
 $
 $(1) $
 $(1)
(3) 

AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)


 
Policyholder Account Balances,
Future Policy Benefits and Claims
 Other Liabilities 
IUL Embedded Derivatives GMWB and GMAB Embedded Derivatives Total
(in millions)
Balance, January 1, 2017$464
 $614
 $1,078
 $13
 
Total (gains) losses included in:
Net income75
(1) 
(798)
(2) 
(723) 1
(4) 
Issues70
 238
 308
 13
 
Settlements(32) (9) (41) 
 
Balance, September 30, 2017$577
 $45
 $622
 $27
 
Changes in unrealized (gains) losses relating to liabilities held at September 30, 2017$75
(1) 
$(771)
(2) 
$(696) $
 
 Available-for-Sale Securities Other Derivative Contracts 
Corporate Debt Securities Residential Mortgage Backed Securities Commercial Mortgage Backed Securities Asset Backed Securities Total
(in millions)  
Balance, January 1, 2016$1,425
 $218
 $3
 $162
 $1,808
 $
 
Cumulative effect of change in accounting policies
 
 
 21
 21
 
 
Total gains (losses) included in: 
Net income(2) 
 
 
 (2)
(3) 
(2)
(2) 
Other comprehensive income29
 
 
 (5) 24
 
 
Purchases34
 144
 42
 28
 248
 2
 
Settlements(144) (53) (3) (1) (201) 
 
Transfers into Level 3
 
 
 12
 12
 
 
Transfers out of Level 3
 (24) (9) (52) (85) 
 
Balance, September 30, 2016$1,342
 $285
 $33
 $165
 $1,825
 $
 
Changes in unrealized gains (losses) relating to assets held at September 30, 2016$(1) $
 $
 $
 $(1)
(3) 
$(2)
(2) 
 
Policyholder Account Balances,
Future Policy Benefits and Claims
 Other Liabilities
IUL Embedded Derivatives GMWB and GMAB Embedded Derivatives Total 
(in millions)  
Balance, January 1, 2016$364
 $851
 $1,215
 $
Total (gains) losses included in:  
Net income8
(1) 
708
(2) 
716
 
Issues86
 215
 301
 13
Settlements(20) (18) (38) 
Balance, September 30, 2016$438
 $1,756
 $2,194
 $13
Changes in unrealized (gains) losses relating to liabilities held at September 30, 2016$8
(1) 
$830
(2) 
$838
 $
(1) Included in interestNet investment income.
(2) Included in Interest credited to fixed accounts in the Consolidated Statements of Operations.accounts.
(2)(3) Included in benefits,Benefits, claims, losses and settlement expenses in the Consolidated Statements of Operations.expenses.
(3) (4) Included in net investment income in the Consolidated Statements of Operations.
(4) Included in generalGeneral and administrative expense in the Consolidated Statements of Operations.

AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)


expense.
The increase (decrease) to pretax income of the Company’s adjustment for nonperformance risk on the fair value of its embedded derivatives was $(37)$25 million and $8$(167) million, net of DAC, DSIC, unearned revenue amortization and the reinsurance accrual, for the three months ended September 30, 2017March 31, 2022 and 2016, respectively. The increase (decrease) to pretax income of the Company’s adjustment for nonperformance risk on the fair value of its embedded derivatives was $(91) million and $295 million, net of DAC, DSIC, unearned revenue amortization and the reinsurance accrual, for the nine months ended September 30, 2017 and 2016,2021, respectively.
Securities transferred from Level 3 primarily represent securities with fair values that are now obtained from a third-party pricing service with observable inputs.inputs or fair values that were included in an observable transaction with a market participant. Securities transferred to Level 3 represent securities with fair values that are now based on a single non-binding broker quote. The Company recognizes transfers between levels of the fair value hierarchy as of the beginning of the quarter in which each transfer occurred. For assets and liabilities held at the end of the reporting periods that are measured at fair value on a recurring basis, there were no transfers between Level 1 and Level 2.
34

AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
The following tables provide a summary of the significant unobservable inputs used in the fair value measurements developed by the Company or reasonably available to the Company of Level 3 assets and liabilities:
 March 31, 2022
Fair ValueValuation TechniqueUnobservable InputRange Weighted Average
(in millions)
Corporate debt securities (private placements)$487 Discounted cash flow
Yield/spread to U.S. Treasuries (1)
0.9 %3.0%1.3%
Asset backed securities$Discounted cash flow
Annual short-term default rate (2)
0.8%0.8%
Annual long-term default rate (2)
3.5%3.5%
Discount rate13.0%13.0%
Constant prepayment rate10.0%10.0%
Loss recovery63.6%63.6%
Fixed deferred indexed annuity ceded embedded derivatives$55 Discounted cash flow
Surrender rate (4)
0.0 %66.8%1.4%
IUL embedded derivatives$848 Discounted cash flow
Nonperformance risk (3)
85 bps85 bps
Fixed deferred indexed annuity embedded derivatives$52 Discounted cash flow
Surrender rate (4)
0.0 %66.8%1.4%
   
Nonperformance risk (3)
85 bps85 bps
GMWB and GMAB embedded derivatives$828 Discounted cash flow
Utilization of guaranteed withdrawals (5) (6)
0.0 %48.0%10.6%
   
Surrender rate (4)
0.1 %55.7%3.6%
   
Market volatility (7) (8)
4.3 %16.5%10.9%
   
Nonperformance risk (3)
85 bps85 bps
Structured variable annuity embedded derivatives$280 Discounted cash flow
Surrender rate (4)
0.8 %40.0%0.9%
Nonperformance risk (3)
85 bps85 bps
Contingent consideration liabilities$62 Discounted cash flow
Discount rate (9)
0.0 %0.0%0.0%
 September 30, 2017
Fair ValueValuation TechniqueUnobservable InputRange Weighted Average
(in millions)
Corporate debt securities (private placements)$1,266 Discounted cash flowYield/spread to U.S. Treasuries0.8%2.3%1.1%
Asset backed securities$11 Discounted cash flowAnnual short-term default rate3.8% 
   Annual long-term default rate2.5%3.0%2.6%
   Discount rate11.0% 
   Constant prepayment rate5.0%10.0%9.9%
   Loss recovery36.4%63.6%63.1%
IUL embedded derivatives$577 Discounted cash flow
Nonperformance risk (1)
67 bps 
GMWB and GMAB embedded derivatives$45 Discounted cash flow
Utilization of guaranteed withdrawals (2)
0.0%42.0% 
    Surrender rate0.1%74.7% 
    
Market volatility (3)
4.3%15.9% 
    
Nonperformance risk (1)
67 bps 
Contingent consideration liabilities$27 Discounted cash flowDiscount rate9.0% 

 December 31, 2021
Fair ValueValuation TechniqueUnobservable InputRangeWeighted Average
(in millions)
Corporate debt securities (private placements)$502 Discounted cash flow
Yield/spread to U.S. Treasuries (1)
0.8 %2.4%1.1%
Asset backed securities$Discounted cash flow
Annual short-term default rate (2)
0.8%0.8%
Annual long-term default rate (2)
3.5%3.5%
Discount rate12.0%12.0%
Constant prepayment rate10.0%10.0%
Loss recovery63.6%63.6%
Fixed deferred indexed annuity ceded embedded derivatives$59 Discounted cash flow
Surrender rate (4)
0.0 %66.8%1.4%
IUL embedded derivatives$905 Discounted cash flow
Nonperformance risk (3)
65 bps65 bps
Fixed deferred indexed annuity embedded derivatives$56 Discounted cash flow
Surrender rate (4)
0.0 %66.8%1.4%
 
Nonperformance risk (3)
65 bps65 bps
GMWB and GMAB embedded derivatives$1,486 Discounted cash flow
Utilization of guaranteed withdrawals (5) (6)
0.0 %48.0%10.6%
Surrender rate (4)
0.1 %55.7%3.6%
   
Market volatility (7) (8)
4.3 %16.8%10.8%
   
Nonperformance risk (3)
65 bps65 bps
Structured variable annuity embedded derivatives$406 Discounted cash flow
Surrender rate (4)
0.8 %40.0%0.9%
Nonperformance risk (3)
65 bps65 bps
Contingent consideration liabilities$61 Discounted cash flow
Discount rate (9)
0.0 %0.0%0.0%
35

 December 31, 2016
Fair ValueValuation TechniqueUnobservable InputRange Weighted Average
(in millions)
Corporate debt securities (private placements)$1,308 Discounted cash flowYield/spread to U.S. Treasuries0.9%2.5%1.3%
Asset backed securities$14 Discounted cash flowAnnual short-term default rate4.8% 
   Annual long-term default rate2.5% 
   Discount rate13.5% 
   Constant prepayment rate5.0%10.0%9.9%
   Loss recovery36.4%63.6%62.8%
IUL embedded derivatives$464 Discounted cash flow
Nonperformance risk (1)
82 bps 
GMWB and GMAB embedded derivatives$614 Discounted cash flow
Utilization of guaranteed withdrawals (2)
0.0%75.6% 
    Surrender rate0.1%66.4% 
    
Market volatility (3)
5.3%21.2% 
    
Nonperformance risk (1)
82 bps 
Contingent consideration liabilities$13 Discounted cash flowDiscount rate9.0% 
(1)
The nonperformance risk is the spread added to the observable interest rates used in the valuation of the embedded derivatives.
(2)
The utilization of guaranteed withdrawals represents the percentage of contractholders that will begin withdrawing in any given year.
(3)
Market volatility is implied volatility of fund of funds and managed volatility funds.

AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)

(Continued)

(1) The weighted average for the spread to U.S. Treasuries for corporate debt securities (private placements) is weighted based on the security’s market value as a percentage of the aggregate market value of the securities.
(2) The weighted average annual default rates of asset backed securities is weighted based on the security’s market value as a percentage of the aggregate market value of the securities.
(3) The nonperformance risk is the spread added to the observable interest rates used in the valuation of the embedded derivatives.
(4) The weighted average surrender rate is weighted based on the benefit base of each contract and represents the average assumption in the current year including the effect of a dynamic surrender formula.
(5) The utilization of guaranteed withdrawals represents the percentage of contractholders that will begin withdrawing in any given year.
(6) The weighted average utilization rate represents the average assumption for the current year, weighting each policy evenly. The calculation excludes policies that have already started taking withdrawals.
(7) Market volatility represents the implied volatility of fund of funds and managed volatility funds.
(8) The weighted average market volatility represents the average volatility across all contracts, weighted by the size of the guaranteed benefit.
(9) The weighted average discount rate represents the average discount rate across all contingent consideration liabilities, weighted based on the size of the contingent consideration liability.
Level 3 measurements not included in the table above are obtained from non-binding broker quotes where unobservable inputs utilized in the fair value calculation are not reasonably available to the Company.
SensitivityUncertainty of Fair Value Measurements to Changes in Unobservable Inputs
Significant increases (decreases) in the yield/spread to U.S. Treasuries used in the fair value measurement of Level 3 corporate debt securities in isolation would resulthave resulted in a significantly lower (higher) fair value measurement.
Significant increases (decreases) in the annual default rate and discount rate used in the fair value measurement of Level 3 asset backed securities in isolation, generally, would resulthave resulted in a significantly lower (higher) fair value measurement and a significant increase (decrease)increases (decreases) in loss recovery in isolation would resulthave resulted in a significantly higher (lower)lower (higher) fair value measurement. A significant increase (decrease)
Significant increases (decreases) in the constant prepayment rate in isolation would resulthave resulted in a significantly lower (higher) fair value measurement.
Significant increases (decreases) in the surrender rate used in the fair value measurement of the fixed deferred indexed annuity ceded embedded derivatives in isolation would have resulted in a significantly lower (higher) fair value measurement.
Significant increases (decreases) in nonperformance risk used in the fair value measurement of the IUL embedded derivatives in isolation would resulthave resulted in a significantly lower (higher) fair value measurement.
Significant increases (decreases) in nonperformance risk and surrender rate used in the fair value measurements of the fixed deferred indexed annuity embedded derivatives and structured variable annuity embedded derivatives in isolation would have resulted in a significantly lower (higher) liability value.
Significant increases (decreases) in utilization and volatility used in the fair value measurement of the GMWB and GMAB embedded derivatives in isolation would resulthave resulted in a significantly higher (lower) liability value.
Significant increases (decreases) in nonperformance risk and surrender rate used in the fair value measurement of the GMWB and GMAB embedded derivatives in isolation would resulthave resulted in a significantly lower (higher) liability value. Utilization of guaranteed withdrawals and surrender rates vary with the type of rider, the duration of the policy, the age of the contractholder, the distribution channel and whether the value of the guaranteed benefit exceeds the contract accumulation value.
Significant increases (decreases) in the discount rate used in the fair value measurement of the contingent consideration liability in isolation would resulthave resulted in a significantly lower (higher) fair value measurement.
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 Company’s market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. The Company’s 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 time deposits and other highly liquid investments with original or remaining maturities at the time of purchase of 90 days or less. Actively traded money market funds are measured at their NAV and classified as Level 1. U.S. Treasuries are also classified as Level 1. The Company’s 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
36

AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
realization.
Investments (Available-for-Sale Securities, Equity Securities and Trading 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 third partythird-party pricing services, non-binding broker quotes, or other model-based valuation techniques.
Level 1 securities primarily include equity securities and U.S. Treasuries.
Level 2 securities primarily include corporate bonds, residential mortgage backed securities, commercial mortgage backed securities, asset backed securities, state and municipal obligations, and U.S. agency and foreign government securities and other securities. The fair value of these Level 2 securities is based on a market approach with prices obtained from third partythird-party pricing services. Observable inputs used to value these securities can include, but are not limited to, reported trades, benchmark yields, issuer spreads and non-binding broker quotes. The fair value of securities included in an observable transaction with a market participant are also considered Level 2 when the market is not active.
Level 3 securities primarily include certain corporate bonds, non-agency residential mortgage backed securities, commercial mortgage backed securities and asset backed securities. Thesecurities with fair value of corporate bonds, non-agency residential mortgage backed securities, commercial mortgage backed securities and certain asset backed securities classified as Level 3 is typically based on a single non-binding broker quote. The underlying inputs used for some of the non-binding broker quotes are not readily available to the Company. The Company’s privately placed corporate bonds are typically based on a single non-binding broker quote. The fair value of certain asset backed securities is determined using a discounted cash flow model. Inputs used to determine the expected cash flows include assumptions about discount rates and default, prepayment and recovery rates of the underlying assets. Given the significance of the unobservable inputs to this fair value measurement, the fair value of the investment in certain asset backed securities is classified as Level 3. In addition to the general pricing controls, the Company reviews the broker prices to ensure that the broker quotes are reasonable and, when available, compares prices of privately issued securities to public issues from the same issuer to ensure that the implicit illiquidity premium applied to the privately placed investment is reasonable considering investment characteristics, maturity, and average life of the investment.
In consideration of the above, management is responsible for the fair values recorded on the financial statements. Prices received from

AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)


third party third-party pricing services are subjected to exception reporting that identifies investments with significant daily price movements as well as no movements. The Company reviews the exception reporting and resolves the exceptions through reaffirmation of the price or recording an appropriate fair value estimate. The Company also performs subsequent transaction testing. The Company performs annual due diligence of third partythird-party pricing services. The Company’s due diligence procedures include assessing the vendor’s valuation qualifications, control environment, analysis of asset-class specific valuation methodologies, and understanding of sources of market observable assumptions and unobservable assumptions, if any, employed in the valuation methodology. The Company also considers the results of its exception reporting controls and any resulting price challenges that arise.
Separate Account Assets
The fair value of assets held by separate accounts is determined by the NAV of the funds in which those separate accounts are invested. The NAV is used as a practical expedient for fair value and represents the exit price for the separate account. Separate account assets are excluded from classification in the fair value hierarchy.
Investments and Cash Equivalents Segregated for Regulatory Purposes
Investments and cash equivalents segregated for regulatory purposes includes U.S. Treasuries that are classified as Level 1.
Receivables
During the third quarter of 2021, the Company reinsured its fixed deferred indexed annuity products which have an indexed account that is accounted for as an embedded derivative. The Company uses discounted cash flow models to determine the fair value of these ceded embedded derivatives. The fair value of fixed deferred indexed annuity ceded embedded derivatives includes significant observable interest rates, volatilities and equity index levels and significant unobservable surrender rates. Given the significance of the unobservable surrender rates, these embedded derivatives are classified as Level 3.
Other Assets
Derivatives that are measured using quoted prices in active markets, such as foreign currency forwards, or derivatives that are exchange-traded, are classified as Level 1 measurements. The variation margin on futures contracts is also classified as Level 1. The fair value of derivatives that are traded in less active over-the-counter (“OTC”) markets is generally measured using pricing models with market observable inputs such as interest rates and equity index levels. These measurements are classified as Level 2 within the fair value hierarchy and include swaps, foreign currency forwards and the majority of options. The counterparties’ nonperformance risk associated with uncollateralized derivative assets was immaterial as of September 30, 2017March 31, 2022 and December 31, 2016.2021. See Note 1112 and Note 1213 for further information on the credit risk of derivative instruments and related collateral.
Liabilities
Policyholder Account Balances, Future Policy Benefits and Claims
There is no active market for the transfer of the Company’s embedded derivatives attributable to the provisions of certain variable annuity riders, fixed deferred indexed annuity, structured variable annuity and IUL products.
The Company values the embedded derivatives attributable to the provisions of certain variable annuity riders using internal valuation models. These models calculate fair value by discountingas the present value of future expected cash flows from benefits plus margins for profit, risk and expensesbenefit payments less the present value of future
37

AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
expected rider fees attributable to the embedded derivative fees.feature. The projected cash flows used by these models include observable capital market assumptions and incorporate significant unobservable inputs related to implied volatility as well as contractholder behavior assumptions implied volatility, andthat include margins for risk, profit and expenses thatall of which the Company believes an exita market participant would expect. The fair value also reflects a current estimate of the Company’s nonperformance risk specific to these embedded derivatives. Given the significant unobservable inputs to this valuation, these measurements are classified as Level 3. The embedded derivatives attributable to these provisions are recorded in policyholderPolicyholder account balances, future policy benefits and claims.
The Company uses various Black-Scholes calculationsa discounted cash flow model to determine the fair value of the embedded derivatives associated with the provisions of its EIA and IUL products. Significantequity index annuity product. The projected cash flows generated by this model are based on significant observable inputs related to the EIA calculation include observable interest rates, volatilities and equity index levels and, therefore, are classified as Level 2.
The Company uses discounted cash flow models to determine the fair value of the embedded derivatives associated with the provisions of its fixed deferred indexed annuity, structured variable annuity and IUL products. The structured variable annuity product is a limited flexible purchase payment annuity that offers 45 different indexed account options providing equity market exposure and a fixed account. Each indexed account includes a protection option (a buffer or a floor). If the index has a negative return, contractholder losses will be reduced by a buffer or limited to a floor. The portion allocated to an indexed account is accounted for as an embedded derivative. The fair value of thefixed deferred indexed annuity, structured variable annuity and IUL embedded derivatives includes significant observable interest rates, volatilities and equity index levels and the significant unobservable surrender rates and the estimate of the Company’s nonperformance risk. Given the significance of the unobservable surrender rates and the nonperformance risk assumption, to the fair value, thefixed deferred indexed annuity, structured variable annuity and IUL embedded derivatives are classified as Level 3.
The embedded derivatives attributable to these provisions are recorded in policyholderPolicyholder account balances, future policy benefits and claims.
The Company’s Corporate Actuarial Department calculates the fair value of the embedded derivatives on a monthly basis. During this process, control checks are performed to validate the completeness of the data. Actuarial management approves various components of the valuation along with the final results. The change in the fair value of the embedded derivatives is reviewed monthly with senior management. The Level 3 inputs into the valuation are consistent with the pricing assumptions and updated as experience develops. Significant unobservable inputs that reflect policyholder behavior are reviewed quarterly along with other valuation assumptions.
Customer Deposits
The Company uses various Black-Scholes calculationsdiscounted cash flow models to determine the fair value of the embedded derivative liability associated with the provisions of its stock market certificates.certificates (“SMC”). The inputs to these calculations are primarily market observable and include interest rates, volatilities and equity index levels. As a result, these measurements are classified as Level 2.
Other Liabilities
Derivatives that are measured using quoted prices in active markets, such as foreign currency forwards, or derivatives that are exchange-traded, are classified as Level 1 measurements. The variation margin on futures contracts is also classified as Level 1. The fair value of derivatives that are traded in less active OTC markets is generally measured using pricing models with market observable inputs such as interest rates and equity index levels. These measurements are classified as Level 2 within the fair value hierarchy and include swaps, foreign currency forwards and the majority of options. The Company’s nonperformance risk associated with uncollateralized

AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)


derivative liabilities was immaterial as of September 30, 2017March 31, 2022 and December 31, 2016.2021. See Note 1112 and Note 1213 for further information on the credit risk of derivative instruments and related collateral.
Securities sold but not yet purchased include highly liquid investments which are short-term in nature. Securities sold but not yet purchased are measured using amortized cost, which isrepresent obligations of the Company to deliver specified securities that it does not yet own, creating a reasonable estimate ofliability to purchase the security in the market at prevailing prices. When available, the fair value because 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, or other model-based valuation techniques such as the short time between the purchasepresent value of the instrumentcash flows. Level 1 securities sold but not yet purchased primarily include equity securities and its expected realization and are classified asU.S. Treasuries traded in active markets. Level 2.2 securities sold but not yet purchased primarily include corporate bonds.
Contingent consideration liabilities consist of earn-outs and/or deferred payments related to the Company’s acquisitions. Contingentacquisitions. Contingent consideration liabilities are recorded at fair value usingutilizing a discounted cash flow model under multiple scenarios andusing an unobservable input (discount rate). Given the use of a significant unobservable input, the fair value of contingent consideration liabilities is classified as Level 3 within the fair value hierarchy.
Loans heldFair Value on a Nonrecurring Basis
The Company assesses its investment in affordable housing partnerships for saleimpairment. The investments that are requireddetermined to be recorded at the lower of cost orimpaired are written down to their fair value. DuringThe Company uses a discounted cash flow model to measure the third quarterfair value of 2017,these investments. Inputs to the discounted cash flow model are estimates of future net operating losses and tax credits available to the Company entered into an agreement with an unaffiliated third party to sell $258 millionand discount rates based on market condition and the financial strength of consumer loans at a $7 million loss.the syndicator (general partner). The loans arebalance of affordable housing partnerships measured at fair value on a nonrecurring basis. The fair value of the loans, which reflects the selling price negotiated with the third party,basis was $251$87 million and $93 million as of September 30, 2017,March 31, 2022 and December 31, 2021, respectively, and is classified as Level 3 asin the valuation includes unobservable inputs.
During the reporting periods, there were no other material assets or liabilities measured at fair value on a nonrecurring basis.hierarchy.
38

AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
Assets and Liabilities Not Reported at Fair Value
The following tables provide the carrying value and the estimated fair value of financial instruments that are not reported at fair value:
 March 31, 2022
Carrying ValueFair Value
Level 1Level 2Level 3Total
(in millions)
Financial Assets
Mortgage loans, net$1,971 $— $45 $1,890 $1,935 
Policy loans833 — 833 — 833 
Receivables10,482 178 1,744 8,357 10,279 
Restricted and segregated cash2,069 2,069 — — 2,069 
Other investments and assets374 — 323 51 374 
Financial Liabilities
Policyholder account balances, future policy benefits and claims$12,841 $— $— $12,678 $12,678 
Investment certificate reserves5,195 — — 5,175 5,175 
Banking and brokerage deposits16,853 16,853 — — 16,853 
Separate account liabilities — investment contracts5,368 — 5,368 — 5,368 
Debt and other liabilities2,776 269 2,517 2,794 
 September 30, 2017 
Carrying Value Fair Value
Level 1 Level 2 Level 3 Total
(in millions)
Financial Assets
Mortgage loans, net$2,749
 $
 $
 $2,768
 $2,768
 
Policy and certificate loans841
 
 1
 797
 798
 
Receivables1,595
 196
 942
 457
 1,595
 
Restricted and segregated cash2,707
 2,707
 
 
 2,707
 
Other investments and assets511
 
 439
 71
 510
 
 
Financial Liabilities
Policyholder account balances, future policy benefits and claims$10,415
 $
 $
 $11,052
 $11,052
 
Investment certificate reserves6,364
 
 
 6,351
 6,351
 
Brokerage customer deposits4,065
 4,065
 
 
 4,065
 
Separate account liabilities measured at NAV4,989
       4,989
(1) 
Debt and other liabilities3,395
 202
 3,197
 140
 3,539
 
 December 31, 2016 
Carrying Value Fair Value
Level 1 Level 2 Level 3 Total
(in millions)
Financial Assets
Mortgage loans, net$2,986
 $
 $
 $2,972
 $2,972
 
Policy and certificate loans831
 
 1
 807
 808
 
Receivables (2)
1,396
 127
 870
 403
 1,400
 
Restricted and segregated cash2,905
 2,905
 
 
 2,905
 
Other investments and assets508
 
 449
 61
 510
 
 
Financial Liabilities
Policyholder account balances, future policy benefits and claims$10,906
 $
 $
 $11,417
 $11,417
 
Investment certificate reserves5,927
 
 
 5,914
 5,914
 
Brokerage customer deposits4,112
 4,112
 
 
 4,112
 
Separate account liabilities measured at NAV4,253
       4,253
(1) 
Debt and other liabilities3,371
 146
 3,176
 169
 3,491
 

AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)


(1)
Amounts are comprised of certain investments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient and have not been classified in the fair value hierarchy.
(2)
In the third quarter of 2017, the Company corrected the classification of the fair value of advisor loans, net from Level 2 to Level 3 as the valuation includes a significant unobservable input. The fair value levels at December 31, 2016 have been revised to reflect this change. The fair value of advisor loans, net was $400 million at December 31, 2016.
Mortgage Loans, Net
The fair value of commercial mortgage loans, except those with significant credit deterioration, is determined by discounting contractual cash flows using discount rates that reflect current pricing for loans with similar remaining maturities, liquidity and characteristics including LTV ratio, occupancy rate, refinance risk, debt service coverage, location, and property condition. For commercial mortgage loans with significant credit deterioration, fair value is determined using the same adjustments as above with an additional adjustment for the Company’s estimate of the amount recoverable on the loan. Given the significant unobservable inputs to the valuation of commercial mortgage loans, these measurements are classified as Level 3.
The fair value of consumer loans is determined by discounting estimated cash flows and incorporating adjustments for prepayment, administration expenses, loss severity, liquidity and credit loss estimates, with discount rates based on the Company’s estimate of current market conditions. The fair value of consumer loans is classified as Level 3 as the valuation includes significant unobservable inputs.
Policy and Certificate Loans
Policy loans represent loans made against the cash surrender value of the underlying life insurance or annuity product. These loans and the related interest are usually realized at death of the policyholder or contractholder or at surrender of the contract and are not transferable without the underlying insurance or annuity contract. The fair value of policy loans is determined by estimating expected cash flows discounted at rates based on the U.S. Treasury curve. Policy loans are classified as Level 3 as the discount rate used may be adjusted for the underlying performance of individual policies.
Certificate loans represent loans made against and collateralized by the underlying certificate balance. These loans do not transfer to third parties separate from the underlying certificate. The outstanding balance of these loans is considered a reasonable estimate of fair value and is classified as Level 2.
 December 31, 2021
Carrying ValueFair Value
Level 1Level 2Level 3Total
(in millions)
Financial Assets
Mortgage loans, net$1,953 $— $49 $1,990 $2,039 
Policy loans835 — 835 — 835 
Receivables10,509 135 1,669 9,404 11,208 
Restricted and segregated cash2,195 2,195 — — 2,195 
Other investments and assets368 — 319 49 368 
Financial Liabilities
Policyholder account balances, future policy benefits and claims$12,342 $— $— $13,264 $13,264 
Investment certificate reserves5,297 — — 5,290 5,290 
Banking and brokerage deposits14,931 14,931 — — 14,931 
Separate account liabilities — investment contracts5,657 — 5,657 — 5,657 
Debt and other liabilities3,214 206 3,129 3,344 
Receivables
Brokerage include deposit receivables, brokerage margin loans, are measured at outstanding balances, which are a reasonable estimate of fair value because of the sufficiency of the collateral and short term nature of these loans. Margin loans that are sufficiently collateralized are classified as Level 2. Margin loans that are not sufficiently collateralized are classified as Level 3.
Securities borrowed require the Company to deposit cash or collateral with the lender. As the market value of the securities borrowed, is monitored daily, the carrying value is a reasonable estimatepledged asset lines of fair value. The fair value of securities borrowed is classified as Level 1 as the value of the underlying securities is based on unadjusted prices for identical assets.
The Company offerscredit, and loans to financial advisors primarily for recruiting, transitional cost assistance and retention purposes. Advisor loans are recorded at principal less an allowance for doubtful accounts. The fair value of advisor loans is determined by discounting contractual cash flows, net of estimated credit losses, using a current market interest rate. Advisor loans are classified as Level 3.
Restricted and Segregated Cash
advisors. Restricted and segregated cash is generally set aside for specific business transactions and restrictions are specific to the Company and do not transfer to third party market participants; therefore, the carrying amount is a reasonable estimate of fair value.
Amountsincludes cash segregated under federal and other regulations may also reflect resale agreements and are measured atheld in special reserve bank accounts for the price at which the securities will be sold. This measurement is a reasonable estimate of fair value becauseexclusive benefit of the short time between entering into the transaction and its expected realization and the reduced risk of credit loss due to pledging U.S. government-backed securities as collateral.
The fair value of restricted and segregated cash is classified as Level 1.
Other Investments and Assets
Company’s brokerage customers. Other investments and assets primarily consist of syndicated loans. The fair value ofinclude syndicated loans, is obtained from a third-party pricing servicecredit card receivables, certificate of deposits with original or non-binding broker quotes. Syndicated loans that are priced using a market approach with observable inputs are classified as Level 2 and syndicated loans priced using a single non-binding broker quote are classified as Level 3.
Other investments and assets also includeremaining maturities at the time of purchase of more than 90 days, the Company’s membership in the FHLB and investments related to the Community Reinvestment Act. The fair value of these assets is approximated by the carrying valueSee Note 6 for additional information on mortgage loans, policy loans, syndicated loans, credit card receivables and classified as Level 3 due to restrictions on transfer and lack of liquidity in the primary market for these assets.

AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)


deposit receivables.
Policyholder Account Balances, Future Policy Benefitsaccount balances, future policy benefits and Claims
The fair value ofclaims include fixed annuities in deferral status, is determined by discounting cash flows using a risk neutral discount rate with adjustments for profit margin, expense margin, early policy surrender behavior, a margin for adverse deviation from estimated early policy surrender behavior and the Company’s nonperformance risk specific to these liabilities. The fair value of non-life contingent fixed annuities in payout status, EIAindexed and structured variable annuity host contracts, and the fixed portion of a small number of variable annuity contracts classified as investment contracts is determined in a similar manner. Given the use of significant unobservable inputs tocontracts. See Note 8 for additional information on these valuations, the measurements are classified as Level 3.
liabilities. Investment Certificate Reserves
The fair value of investment certificate reserves is determined by discounting cash flows using discount rates that reflect current pricing for assets with similar terms and characteristics, with adjustments for expense margin and the Company’s nonperformance risk specific to these liabilities. Given the use of significant unobservable inputs to this valuation, the measurement is classified as Level 3.
Brokerage Customer Deposits
Brokeragerepresent customer deposits for fixed rate certificates and stock market certificates. Banking and brokerage deposits are liabilities with no defined maturitiesamounts payable to customers related to free credit balances, funds deposited by customers and fair value is the amount payable on demand at the reporting date. The fair value of these deposits is classified as Level 1.
Separate Account Liabilities
Certain separate account liabilities are classified as investment contracts and are carried at an amount equalfunds accruing to the related separate account assets. The NAV of the related separate account assets is usedcustomers as a practical expedient for fair value and represents the exit price for the separate account liabilities.result of trades or contracts. Separate account liabilities are excluded from classificationprimarily investment contracts in the fair value hierarchy.
pooled pension funds offered by Threadneedle. Debt and Other Liabilities
The fair value ofother liabilities include the Company’s long-term debt, is based on quoted prices in active markets, when available. If quoted prices are not available, fair values are obtained from third party pricing services, broker quotes, or other model-based valuation techniques such as present value of cash flows. The fair value of long-term debt is classified as Level 2.
The fair value of short-term borrowings, is obtained from a third party pricing service. A nonperformance adjustment is not included as collateral requirements for these borrowings minimize the nonperformance risk. The fair value of short-term borrowings is classified as Level 2.
The fair value ofsecurities loaned and future funding commitments to affordable housing partnerships and other real estate partnerships is determined by discounting cash flows. The fair value of these commitments includes an adjustmentpartnerships. See Note 10 for further information on the Company’s nonperformance risklong-term debt and is classified as Level 3 due to the use of the significant unobservable input.short-term borrowings.
Securities loaned require the borrower to deposit cash or collateral with the Company. As the market value of the securities loaned is monitored daily, the carrying value is a reasonable estimate of fair value. Securities loaned are classified as Level 1 as the fair value of the underlying securities is based on unadjusted prices for identical assets.
39

AMERIPRISE FINANCIAL, INC.
11.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
12.  Offsetting Assets and Liabilities
Certain financial instruments and derivative instruments are eligible for offset in the Consolidated Balance Sheets. The Company’s derivative instruments repurchase agreements and securities borrowing and lending agreements are subject to master netting and collateral arrangements and qualify for offset. A master netting arrangement with a counterparty creates a right of offset for amounts due to and from that same counterparty that is enforceable in the event of a default or bankruptcy. Securities borrowed and loaned result from transactions between the Company’s broker dealer subsidiary and other financial institutions and are recorded at the amount of cash collateral advanced or received. Securities borrowed and securities loaned are primarily equity securities. The Company’s securities borrowed and securities loaned transactions generally do not have a fixed maturity date and may be terminated by either party under customary terms.
The Company’s policy is to recognize amounts subject to master netting arrangements on a gross basis in the Consolidated Balance Sheets.

AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)


The following tables present the gross and net information about the Company’s assets subject to master netting arrangements:
 March 31, 2022
Gross Amounts of Recognized AssetsGross Amounts Offset in the Consolidated Balance SheetsAmounts of Assets Presented in the Consolidated Balance SheetsGross Amounts Not Offset in the
Consolidated Balance Sheets
Net Amount
Financial Instruments (1)
Cash CollateralSecurities Collateral
(in millions)
Derivatives:
OTC$4,416 $— $4,416 $(3,271)$(1,089)$— $56 
OTC cleared156 — 156 (82)— — 74 
Exchange-traded98 — 98 (89)— — 
Total derivatives4,670 — 4,670 (3,442)(1,089)— 139 
Securities borrowed178 — 178 (64)— (111)
Total$4,848 $— $4,848 $(3,506)$(1,089)$(111)$142 
September 30, 2017 December 31, 2021
Gross Amounts of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheets Amounts of Assets Presented in the
Consolidated Balance Sheets
 Gross Amounts Not Offset in the
Consolidated Balance Sheets
 Net AmountGross Amounts of Recognized AssetsGross Amounts Offset in the Consolidated Balance SheetsAmounts of Assets Presented in the Consolidated Balance SheetsGross Amounts Not Offset in the
Consolidated Balance Sheets
Net Amount
Financial Instruments (1)
 Cash Collateral Securities Collateral
Financial Instruments (1)
Cash CollateralSecurities Collateral
(in millions)(in millions)
Derivatives:Derivatives:Derivatives:
OTC$3,156
 $
 $3,156
 $(2,379) $(661) $(109) $7
OTC$5,387$$5,387$(3,613)$(1,637)$(114)$23
OTC cleared (2)
14
 
 14
 (12) 
 
 2
OTC clearedOTC cleared8888(41)47
Exchange-traded20
 
 20
 (2) 
 
 18
Exchange-traded9999(91)8
Total derivatives3,190
 
 3,190
 (2,393) (661) (109) 27
Total derivatives5,5745,574(3,745)(1,637)(114)78
Securities borrowed196
 
 196
 (48) 
 (145) 3
Securities borrowed135135(41)(91)3
Total$3,386
 $
 $3,386
 $(2,441) $(661) $(254) $30
Total$5,709$$5,709$(3,786)$(1,637)$(205)$81
 December 31, 2016
Gross Amounts of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheets Amounts of Assets Presented in the Consolidated Balance Sheets Gross Amounts Not Offset in the
Consolidated Balance Sheets
 Net Amount
Financial Instruments (1)
 Cash Collateral Securities Collateral
(in millions)
Derivatives:
OTC$2,920
 $
 $2,920
 $(2,214) $(406) $(235) $65
OTC cleared512
 
 512
 (509) (3) 
 
Exchange-traded14
 
 14
 (2) 
 
 12
Total derivatives3,446
 
 3,446
 (2,725) (409) (235) 77
Securities borrowed127
 
 127
 (16) 
 (108) 3
Total$3,573
 $
 $3,573
 $(2,741) $(409) $(343) $80
(1) Represents the amount of assets that could be offset by liabilities with the same counterparty under master netting or similar arrangements that management elects not to offset on the Consolidated Balance Sheets.
(2) The decrease in OTC cleared derivatives from December 31, 2016 is a result of certain central clearing parties amending their rules resulting in variation margin payments being settlement payments, as opposed to collateral.
40

AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
The following tables present the gross and net information about the Company’s liabilities subject to master netting arrangements:
 March 31, 2022
Gross Amounts of Recognized LiabilitiesGross Amounts Offset in the
Consolidated Balance Sheets
Amounts of Liabilities Presented in the Consolidated Balance SheetsGross Amounts Not Offset in the
Consolidated Balance Sheets
Net Amount
Financial Instruments (1)
Cash CollateralSecurities Collateral
(in millions)
Derivatives:
OTC$3,839$$3,839$(3,271)$(169)$(393)$6
OTC cleared8282(82)
Exchange-traded181181(89)(89)3
Total derivatives4,1024,102(3,442)(258)(393)9
Securities loaned269269(64)(197)8
Total$4,371$$4,371$(3,506)$(258)$(590)$17
September 30, 2017 December 31, 2021
Gross Amounts of Recognized Liabilities Gross Amounts Offset in the
Consolidated Balance Sheets
 Amounts of Liabilities Presented in the Consolidated Balance Sheets Gross Amounts Not Offset in the
Consolidated Balance Sheets
 Net AmountGross Amounts of Recognized LiabilitiesGross Amounts Offset in the
Consolidated Balance Sheets
Amounts of Liabilities Presented in the Consolidated Balance SheetsGross Amounts Not Offset in the
Consolidated Balance Sheets
Net Amount
Financial Instruments (1)
 Cash Collateral Securities Collateral
Financial Instruments (1)
Cash CollateralSecurities Collateral
(in millions)(in millions)
Derivatives:Derivatives:Derivatives:
OTC$3,102
 $
 $3,102
 $(2,379) $(48) $(669) $6
OTC$4,091$$4,091$(3,613)$(183)$(292)$3
OTC cleared (2)
12
 
 12
 (12) 
 
 
OTC clearedOTC cleared4141(41)
Exchange-traded2
 
 2
 (2) 
 
 
Exchange-traded9191(91)
Total derivatives3,116
 
 3,116
 (2,393) (48) (669) 6
Total derivatives4,2234,223(3,745)(183)(292)3
Securities loaned202
 
 202
 (48) 
 (150) 4
Securities loaned207207(41)(160)6
Repurchase agreements50
 
 50
 
 
 (48) 2
Total$3,368
 $
 $3,368
 $(2,441) $(48) $(867) $12
Total$4,430$$4,430$(3,786)$(183)$(452)$9

AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)


 December 31, 2016
Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Consolidated
Balance Sheets
 Amounts of Liabilities Presented in the
Consolidated Balance Sheets
 Gross Amounts Not Offset in the
Consolidated Balance Sheets
 Net Amount
Financial Instruments (1)
 Cash Collateral Securities Collateral
(in millions)
Derivatives:
OTC$2,626
 $
 $2,626
 $(2,214) $(53) $(352) $7
OTC cleared539
 
 539
 (509) (25) 
 5
Exchange-traded6
 
 6
 (2) 
 
 4
Total derivatives3,171
 
 3,171
 (2,725) (78) (352) 16
Securities loaned146
 
 146
 (16) 
 (125) 5
Repurchase agreements50
 
 50
 
 
 (50) 
Total$3,367
 $
 $3,367
 $(2,741) $(78) $(527) $21
(1) Represents the amount of liabilities that could be offset by assets with the same counterparty under master netting or similar arrangements that management elects not to offset on the Consolidated Balance Sheets.
(2) The decrease in OTC cleared derivatives from December 31, 2016 is a result of certain central clearing parties amending their rules resulting in variation margin payments being settlement payments, as opposed to collateral.
In the tables above, the amountsamount of assets or liabilities presented in the Consolidated Balance Sheets are offset first by financial instruments that have the right of offset under master netting or similar arrangements, then any remaining amount is reduced by the amount of cash and securities collateral. The actual collateral may be greater than amounts presented in the tables.
When the fair value of collateral accepted by the Company is less than the amount due to the Company, there is a risk of loss if the counterparty fails to perform or provide additional collateral. To mitigate this risk, the Company monitors collateral values regularly and requires additional collateral when necessary. When the value of collateral pledged by the Company declines, it may be required to post additional collateral.
Freestanding derivative instruments are reflected in otherOther assets and otherOther liabilities. Cash collateral pledged by the Company is reflected in otherOther assets and cash collateral accepted by the Company is reflected in otherOther liabilities. Repurchase agreements are reflected in short-term borrowings. Securities borrowing and lending agreements are reflected in receivablesReceivables and otherOther liabilities, respectively. See Note 1213 for additional disclosures related to the Company’s derivative instruments and Note 94 for additional disclosuresinformation related to the Company’s repurchase agreements.derivatives held by consolidated investment entities.
41
12.

AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
13.  Derivatives and Hedging Activities
Derivative instruments enable the Company to manage its exposure to various market risks. The value 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 Company’s products and operations.
TheCertain of the Company’s freestanding derivative instruments are all subject to master netting arrangements. The Company’s policy on the recognition of derivatives on the Consolidated Balance Sheets is to not offset fair value amounts recognized for derivatives and collateral arrangements executed with the same counterparty under the same master netting arrangement. See Note 1112 for additional information regarding the estimated fair value of the Company’s freestanding derivatives after considering the effect of master netting arrangements and collateral.

AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)


TheGenerally, the Company uses derivatives as economic hedges and accounting hedges. The following table presents the notional value and gross fair value of derivative instruments, including embedded derivatives:
September 30, 2017 December 31, 2016March 31, 2022December 31, 2021
Notional Gross Fair ValueNotional Gross Fair ValueNotionalGross Fair ValueNotionalGross Fair Value
Assets (1)
 
Liabilities (2)(3)
Assets (1)
 
Assets (1)
 
Liabilities (2)(3)
Assets (1)
Liabilities (2)(3)
Liabilities (2)(3)
(in millions)(in millions)
Derivatives designated as hedging instrumentsDerivatives designated as hedging instrumentsDerivatives designated as hedging instruments
Interest rate contracts$675
 $30
 $
 $675
 $40
 $
Foreign exchange contracts99
 
 4
 164
 12
 
Equity contracts - cash flow hedgesEquity contracts - cash flow hedges$19 $$— $19 $— $— 
Foreign exchange contracts – net investment hedgesForeign exchange contracts – net investment hedges140 — 58 — — 
Total qualifying hedges774
 30
 4
 839
 52
 
Total qualifying hedges159 — 77 — — 
Derivatives not designated as hedging instrumentsDerivatives not designated as hedging instrumentsDerivatives not designated as hedging instruments
Interest rate contracts66,504
 1,171
 416
 72,449
 1,738
 989
Interest rate contracts82,224 739 315 79,468 1,252 468 
Equity contracts60,979
 1,942
 2,669
 63,015
 1,574
 2,135
Equity contracts63,450 3,855 3,784 61,142 4,293 3,754 
Credit contracts721
 4
 
 1,039
 1
 
Credit contracts2,175 45 — 1,748 — 
Foreign exchange contracts4,494
 43
 27
 4,733
 81
 47
Foreign exchange contracts2,614 26 2,380 20 
Other contracts451
 
 
 241
 
 
Total non-designated hedges133,149
 3,160
 3,112
 141,477
 3,394
 3,171
Total non-designated hedges150,463 4,665 4,102 144,738 5,574 4,223 
Embedded derivativesEmbedded derivativesEmbedded derivatives
GMWB and GMAB (4)
N/A
 
 45
 N/A
 
 614
GMWB and GMAB (4)
N/A— 828 N/A— 1,486 
IULN/A
 
 577
 N/A
 
 464
IULN/A— 848 N/A— 905 
EIAN/A
 
 4
 N/A
 
 5
Fixed deferred indexed annuities and deposit receivablesFixed deferred indexed annuities and deposit receivablesN/A55 57 N/A59 61 
Structured variable annuitiesStructured variable annuitiesN/A— 280 N/A— 406 
SMCN/A
 
 9
 N/A
 
 8
SMCN/A— N/A— 
Total embedded derivativesN/A
 
 635
 N/A
 
 1,091
Total embedded derivativesN/A55 2,015 N/A59 2,862 
Total derivatives$133,923
 $3,190
 $3,751
 $142,316
 $3,446
 $4,262
Total derivatives$150,622 $4,725 $6,117 $144,815 $5,633 $7,085 
N/A  Not applicable.
(1)The fair value of freestanding derivative assets is included in Other assets onand the Consolidated Balance Sheets.fair value of ceded embedded derivative assets related to deposit receivables is included in Receivables.
(2)The fair value of freestanding derivative liabilities is included in Other liabilities on the Consolidated Balance Sheets.liabilities. The fair value of GMWB and GMAB, IUL, fixed deferred indexed annuity and EIAstructured variable annuity embedded derivatives is included in Policyholder account balances, future policy benefits and claims on the Consolidated Balance Sheets.claims. The fair value of the SMC embedded derivative liability is included in Customer deposits on the Consolidated Balance Sheets.deposits.
(3)The fair value of the Company’s derivative liabilities after considering the effects of master netting arrangements, cash collateral held by the same counterparty and the fair value of net embedded derivatives was $1.3$2.4 billion and $1.5$3.2 billion as of September 30, 2017March 31, 2022 and December 31, 2016,2021, respectively. See Note 11 12 for additionaladditional information related to master netting arrangements and cash collateral.
(4) The fair value of the GMWB and GMAB embedded derivatives as of September 30, 2017March 31, 2022 included $494 million$1.0 billion of individual contracts in a liability position and $449$204 million of individual contracts in an asset position. The fair value of the GMWB and GMAB embedded derivatives as of December 31, 20162021 included $880 million$1.6 billion of individual contracts in a liability position and $266$133 million of individual contracts in an asset position.
See Note 1011 for additional information regarding the Company’s fair value measurement of derivative instruments.
42

AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
As of September 30, 2017March 31, 2022 and December 31, 2016,2021, investment securities with a fair value of $122 millionnil and $235$123 million, respectively, were received as collateral to meet contractual obligations under derivative contracts, of which $122 millionnil and $118$123 million, respectively, may be sold, pledged or rehypothecated by the Company. As of September 30, 2017both March 31, 2022 and December 31, 2016,2021, the Company had sold, pledged or rehypothecated $12 million and $19 million, respectively,none of these securities. In addition, as of September 30, 2017both March 31, 2022 and December 31, 2016,2021, non-cash collateral accepted was held in separate custodial accounts and was not included in the Company’s Consolidated Balance Sheets.

AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)


Derivatives Not Designated as Hedges
The following tables presenttable presents a summary of the impact of derivatives not designated as hedging instruments, including embedded derivatives, on the Consolidated Statements of Operations:
Net Investment IncomeBanking and Deposit Interest ExpenseDistribution ExpensesInterest Credited to Fixed AccountsBenefits, Claims, Losses and Settlement ExpensesGeneral and Administrative Expense
(in millions)
Three Months Ended March 31, 2022
Interest rate contracts$— $— $— $— $(1,118)$— 
Equity contracts— (61)(16)224 (7)
Credit contracts— — (1)— 97 — 
Foreign exchange contracts(1)— — — 31 — 
GMWB and GMAB embedded derivatives— — — — 658 — 
IUL embedded derivatives— — — 57 — — 
Fixed deferred indexed annuity and deposit receivables embedded derivatives— — — — — 
Structured variable annuity embedded derivatives— — — — 123 — 
Total gain (loss)$$— $(62)$42 $15 $(7)
 Net Investment Income Banking and Deposit Interest Expense Distribution Expenses 
Interest Credited
to Fixed Accounts
 Benefits, Claims, Losses and Settlement Expenses General and Administrative Expense
(in millions)
Three Months Ended September 30, 2017
Interest rate contracts$(1) $
 $
 $
 $14
 $
Equity contracts(10) 1
 13
 18
 (261) 2
Credit contracts
 
 
 
 (3) 
Foreign exchange contracts
 
 1
 
 1
 1
Other contracts
 
 
 
 (2) 
GMWB and GMAB embedded derivatives
 
 
 
 227
 
IUL embedded derivatives
 
 
 (24) 
 
SMC embedded derivatives
 (1) 
 
 
 
Total gain (loss)$(11) $
 $14
 $(6) $(24) $3
Nine Months Ended September 30, 2017
Interest rate contracts$(8) $
 $
 $
 $61
 $
Equity contracts(7) 3
 36
 50
 (920) 7
Credit contracts
 
 
 
 (22) 
Foreign exchange contracts
 
 3
 
 (27) 5
Other contracts
 
 
 
 (2) 
GMWB and GMAB embedded derivatives
 
 
 
 569
 
IUL embedded derivatives
 
 
 (43) 
 
SMC embedded derivatives
 (3) 
 
 
 
Total gain (loss)$(15) $
 $39
 $7
 $(341) $12
 Net Investment Income Banking and Deposit Interest Expense Distribution Expenses Interest Credited
to Fixed Accounts
 Benefits, Claims, Losses and Settlement Expenses General and Administrative Expense
(in millions)
Three Months Ended September 30, 2016
Interest rate contracts$6
 $
 $
 $
 $(12) $
Equity contracts2
 2
 11
 12
 (385) 2
Credit contracts
 
 
 
 (3) 
Foreign exchange contracts2
 
 
 
 (12) 3
Other contracts
 
 
 
 (1) 
GMWB and GMAB embedded derivatives
 
 
 
 209
 
IUL embedded derivatives
 
 
 (5) 
 
SMC embedded derivatives
 (1) 
 
 
 
Total gain (loss)$10
 $1
 $11
 $7
 $(204) $5

AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)


Net Investment IncomeBanking and Deposit Interest ExpenseDistribution ExpensesInterest Credited to Fixed AccountsBenefits, Claims, Losses and Settlement ExpensesGeneral and Administrative Expense
Nine Months Ended September 30, 2016
(in millions)
Three Months Ended March 31, 2021Three Months Ended March 31, 2021
Interest rate contracts$(54) $
 $
 $
 $1,175
 $
Interest rate contracts$— $— $(1)$— $(1,825)$— 
Equity contracts2
 1
 13
 10
 (536) 3
Equity contracts33 25 (310)
Credit contracts
 
 
 
 (34) 
Credit contracts— — — — 69 — 
Foreign exchange contracts
 
 2
 
 (66) 15
Foreign exchange contracts— — — — 11 (4)
Other contracts
 
 
 
 (2) 
GMWB and GMAB embedded derivatives
 
 
 
 (905) 
GMWB and GMAB embedded derivatives— — — — 1,600 — 
IUL embedded derivatives
 
 
 12
 
 
IUL embedded derivatives— — — (9)— — 
Fixed deferred indexed annuity embedded derivativesFixed deferred indexed annuity embedded derivatives— — — (5)— — 
Structured variable annuity embedded derivativesStructured variable annuity embedded derivatives— — — — (75)— 
SMC embedded derivatives
 (1) 
 
 
 
SMC embedded derivatives— (1)— — — — 
Total gain (loss)$(52) $
 $15
 $22
 $(368) $18
Total gain (loss)$$— $32 $11 $(530)$
The Company holds derivative instruments that either do not qualify or are not designated for hedge accounting treatment. These derivative instruments are used as economic hedges of equity, interest rate, credit and foreign currency exchange rate risk related to various products and transactions of the Company.
Certain annuity contracts contain GMWB or GMAB provisions, which guarantee the right to make limited partial withdrawals each contract year regardless of the volatility inherent in the underlying investments or guarantee a minimum accumulation value of consideration received at the beginning of the contract period, after a specified holding period, respectively. The indexed portion of structured variable annuities and the GMAB and non-life contingent GMWB provisions are considered embedded derivatives, which are bifurcated from their host contracts for valuation purposes and reported on the Consolidated Balance Sheets at fair value with changes in fair value reported in earnings. The Company economically hedges the aggregate exposure related to the indexed portion of structured variable annuities and the GMAB and non-life contingent GMWB provisions primarily using futures, options, interest rate swaptions, interest rate swaps, total return swaps and variance swaps.futures.
43

AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
The deferred premium associated with certain of the above options and swaptions is paid or received semi-annually over the life of the contract or at maturity. The following is a summary of the payments the Company is scheduled to make and receive for these options and swaptions as of September 30, 2017:March 31, 2022:
 Premiums PayablePremiums Receivable
(in millions)
2022 (1)
$130 $192 
202350 43 
2024135 24 
2025123 21 
2026252 88 
2027 - 202818 — 
Total$708 $368 
 Premiums Payable Premiums Receivable
(in millions)
2017 (1)
$98
 $26
2018232
 131
2019295
 171
2020217
 100
2021187
 109
2022 - 2027739
 183
Total$1,768
 $720
(1)2017 2022 amounts represent the amounts payable and receivable for the period from OctoberApril 1, 20172022 to December 31, 2017.2022.
Actual timing and payment amounts may differ due to future settlements, modifications or exercises of the contracts prior to the full premium being paid or received.
The Company has a macro hedge program to provide protection against the statutory tail scenario risk arising from variable annuity reserves on its statutory surplus and to cover some of the residual risks not covered by other hedging activities. As a means of economically hedging these risks, the Company usesmay use a combination of futures, options, interest rate swaptions and/or swaps.swaps and swaptions. Certain of the macro hedge derivatives may contain settlement provisions linked to both equity returns and interest rates. The Company’s macro hedge derivatives that contain settlement provisions linked to both equity returns and interest rates, if any, are shown in Otherother contracts in the tables above.
EIA,Structured variable annuity, IUL and stock market certificate products have returns tied to the performance of equity markets. As a result of fluctuations in equity markets, the obligation incurred by the Company related to EIA,structured variable annuity, IUL and stock market certificate products will positively or negatively impact earnings over the life of these products. The equity component of the EIA,structured variable annuity, IUL and stock market certificate product obligations are considered embedded derivatives, which are bifurcated from their host contracts for valuation purposes and reported on the Consolidated Balance Sheets at fair value with changes in fair value reported in earnings. As a means of economically hedging its obligations under the provisions of these products, the Company enters into interest rate swaps, index options and futures contracts.

AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)


The Company enters into futures, credit default swaps, and commodity swaps, total return swaps and foreign currency forwards to manage its exposure to price risk arising from seed money investments in proprietary investment products. The Company enters into foreign currency forward contracts to economically hedge its exposure to certain foreign transactions. The Company enters into futures contracts, total return swaps and foreign currency forwards to economically hedge its exposure related to compensation plans. In 2015, theThe Company enteredenters into interest rate swaps to offset interest rate changes on unrealized gains or losses for certain investments.
Cash Flow Hedges
The Company has designated and accounts for the followingderivative instruments as a cash flow hedges: (i) interest rate swaps to hedge for equity exposure of certain compensation-related liabilities and interest rate exposure on forecasted debt (ii) interest rate lock agreements to hedgepayments. For derivative instruments that qualify as cash flow hedges, the gain or loss on the derivative instruments is reported in AOCI and reclassified into earnings when the hedged item or transaction impacts earnings. The amount that is reclassified into earnings is presented within the same line item as the earnings impact of the hedged item in interest rate exposure onand debt issuances and (iii) swaptions used to hedge the risk of increasing interest rates on forecasted fixed premium product sales.expense.
For the three months ended March 31, 2022 and nine months ended September 30, 2017 and 2016,2021, the amounts recognized inreclassified from AOCI to earnings related to cash flow hedges due to ineffectiveness were not material.immaterial. The estimated net amount of existing pretax lossesrecorded in AOCI as of September 30, 2017March 31, 2022 that the Company expects to reclassify to earnings within the next twelve months is $1 million, which consists of $2 million of pretax gains to be recorded as a reduction to interest and debt expense and $3 million of pretax losses to be recorded in net investment income.within the next twelve months is $0.6 million. Currently, the longest period of time over which the Company is hedging exposure to the variability in future cash flows is 1814 years and relates to forecasted debt interest payments. See Note 1314 for a rollforward of net unrealized derivative gains (losses) included in AOCI related to cash flow hedges.
Fair Value Hedges
The Company entered into and designated as fair value hedges two interest rate swaps to convert senior notes due 2019 and 2020 from fixed rate debt to floating rate debt. The swaps have identical terms as the underlying debt being hedged so no ineffectiveness is expected to be realized. The Company recognizes gains and losses on the derivatives and the related hedged items within interest and debt expense. The following table presents the amounts recognized in income related to fair value hedges:
44

Derivatives designated as
hedging instruments
Location of Gain Recorded into IncomeAmount of Gain Recognized in Income on Derivatives
Three Months Ended September 30, Nine Months Ended September 30,
2017201620172016
 (in millions)
Interest rate contractsInterest and debt expense$4 $5
 $12 $15
AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
Net Investment Hedges
The Company entered into, and designated as net investment hedges in foreign operations, forward contracts to hedge a portion of the Company’s foreign currency exchange rate risk associated with its investment in Threadneedle. As the Company determined that the forward contracts are effective, the change in fair value of the derivatives is recognized in AOCI as part of the foreign currency translation adjustment. For the three months ended September 30, 2017March 31, 2022 and 2016,2021, the Company recognized a lossgain of $4 million and a gain of $6 million, respectively, in OCI. For the nine months ended September 30, 2017 and 2016, the Company recognized a loss of $3 million and a gain of $25$0.5 million, respectively, in OCI.
Credit Risk
Credit risk associated with the Company’s derivatives is the risk that a derivative counterparty will not perform in accordance with the terms of the applicable derivative contract. To mitigate such risk, the Company has established guidelines and oversight of credit risk through a comprehensive enterprise risk management program that includes members of senior management. Key components of this program are to require preapproval of counterparties and the use of master netting and collateral arrangements whenever practical. See Note 1112 for additional information on the Company’s credit exposure related to derivative assets.
Certain of the Company’s derivative contracts contain provisions that adjust the level of collateral the Company is required to post based on the Company’s debt rating (or based on the financial strength of the Company’s life insurance subsidiaries for contracts in which those subsidiaries are the counterparty). Additionally, certain of the Company’s derivative contracts contain provisions that allow the counterparty to terminate the contract if the Company’s debt does not maintain a specific credit rating (generally an investment grade rating) or the Company’s life insurance subsidiary does not maintain a specific financial strength rating. If these termination provisions were to be triggered, the Company’s counterparty could require immediate settlement of any net liability position. As of September 30, 2017March 31, 2022 and December 31, 2016,2021, the aggregate fair value of derivative contracts in a net liability position containing such credit contingent provisions was $437$467 million and $254$383 million, respectively. The aggregate fair value of assets posted as collateral for such instruments as of September 30, 2017March 31, 2022 and December 31, 20162021 was $435$462 million and $246$383 million, respectively. If the credit contingent provisions of derivative contracts in a net liability position as of September 30, 2017March 31, 2022 and December 31, 20162021 were triggered, the aggregate fair value of additional assets that would be required to be posted as collateral or needed to settle the instruments immediately would have been $2$5 million and $8 million,nil, respectively. 

AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)


13.14.  Shareholders’ Equity
The following tables provide the amounts related to each component of OCI:
 Three Months Ended September 30,
2017 2016
Pretax
Income Tax Benefit (Expense)
Net of TaxPretax
Income Tax Benefit (Expense)
Net of Tax
(in millions)
Net unrealized securities gains (losses):
Net unrealized securities gains (losses) arising during the period (1)
$60
 $(22) $38
 $82
 $(31) $51
Reclassification of net securities (gains) losses included in net income (2)
(4) 1
 (3) (8) 4
 (4)
Impact of deferred acquisition costs, deferred sales inducement costs, unearned revenue, benefit reserves and reinsurance recoverables(61) 22
 (39) (114) 39
 (75)
Net unrealized securities gains (losses)(5) 1
 (4) (40) 12
 (28)
 
Net unrealized derivatives gains (losses):
Reclassification of net derivative (gains) losses included in net income (3)
1
 
 1
 1
 
 1
Net unrealized derivatives gains (losses)1
 
 1
 1
 
 1
 
Defined benefit plans:
Net gain arising during the period
 
 
 
 
 
Defined benefit plans
 
 
 
 
 
 
Foreign currency translation25
 (9) 16
 (26) 10
 (16)
Other
 
 
 
 
 
Total other comprehensive income (loss)$21
 $(8) $13
 $(65) $22
 $(43)
Three Months Ended March 31,
20222021
PretaxIncome Tax Benefit (Expense)Net of TaxPretaxIncome Tax Benefit (Expense)Net of Tax
(in millions)
Net unrealized gains (losses) on securities:
Net unrealized gains (losses) on securities arising during the period (1)
$(1,592)$347 $(1,245)$(690)$152 $(538)
Reclassification of net (gains) losses on securities included in net income (2)
(20)(16)(50)11 (39)
Impact of DAC, DSIC, unearned revenue, benefit reserves and reinsurance recoverables516 (108)408 300 (63)237 
Net unrealized gains (losses) on securities(1,096)243 (853)(440)100 (340)
Net unrealized gains (losses) on derivatives:
Net unrealized gains (losses) on derivatives arising during the period
— — — — 
Net unrealized gains (losses) on derivatives— — — — 
Defined benefit plans:
Net gains (losses)— — — 37 (8)29 
Defined benefit plans— — — 37 (8)29 
Foreign currency translation(58)12 (46)(1)— (1)
Total other comprehensive income (loss)$(1,153)$255 $(898)$(404)$92 $(312)
 Nine Months Ended September 30,
2017 2016
Pretax
Income Tax Benefit (Expense)
Net of TaxPretax
Income Tax Benefit (Expense)
Net of Tax
(in millions)
Net unrealized securities gains (losses):
Net unrealized securities gains (losses) arising during the period (1)
$304
 $(107) $197
 $1,134
 $(398) $736
Reclassification of net securities (gains) losses included in net income (2)
(43) 15
 (28) (12) 5
 (7)
Impact of deferred acquisition costs, deferred sales inducement costs, unearned revenue, benefit reserves and reinsurance recoverables(168) 59
 (109) (533) 186
 (347)
Net unrealized securities gains (losses)
93
 (33) 60
 589
 (207) 382
 
Net unrealized derivatives gains (losses):
Reclassification of net derivative (gains) losses included in net income (4)
3
 (1) 2
 4
 (1) 3
Net unrealized derivatives gains (losses)
3
 (1) 2
 4
 (1) 3
 

AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)


 Nine Months Ended September 30,
2017 2016
Pretax
Income Tax Benefit (Expense)
Net of TaxPretax
Income Tax Benefit (Expense)
Net of Tax
(in millions)
Defined benefit plans:
Net gain arising during the period7
 (2) 5
 9
 (3) 6
Defined benefit plans7
 (2) 5
 9
 (3) 6
 
Foreign currency translation71
 (25) 46
 (85) 30
 (55)
Other(1) 
 (1) 
 
 
Total other comprehensive income (loss)$173
 $(61) $112
 $517
 $(181) $336
(1) Includes other-than-temporary impairment lossesimpairments on Available-for-Sale securities related to factors other than credit that were recognized in other comprehensive income (loss)OCI during the period.
(2) Reclassification amounts are recorded in netNet investment income.
(3) Includes nil pretax gain reclassified to interest and debt expense for both the three months ended September 30, 2017 and 2016, and a $1 million pretax loss reclassified to net investment income for both the three months ended September 30, 2017 and 2016.
(4) Includes $1 million pretax gain reclassified to interest and debt expense for both the nine months ended September 30, 2017 and 2016, and a $3 million and $4 million pretax loss reclassified to net investment income for the nine months ended September 30, 2017 and 2016, respectively.
45

AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
Other comprehensive income (loss) related to net unrealized securities gains (losses) on securities includes three components: (i) unrealized gains (losses) that arose from changes in the market value of securities that were held during the period; (ii) (gains) losses that were previously unrealized, but have been recognized in current period net income due to sales of Available-for-Sale securities and due to the reclassification of noncredit other-than-temporary impairmentOTTI losses to credit losses; and (iii) other adjustments primarily consisting of changes in insurance and annuity asset and liability balances, such as DAC, DSIC, unearned revenue, benefit reserves and reinsurance recoverables, to reflect the expected impact on their carrying values had the unrealized gains (losses) been realized as of the respective balance sheet dates.
The following tables presenttable presents the changes in the balances of each component of AOCI, net of tax:
Net Unrealized Gains (Losses)
on Securities
Net Unrealized Gains (Losses)
on Derivatives
Defined
Benefit Plans
Foreign Currency TranslationOtherTotal
(in millions)
Balance, January 1, 2022$318$4$(151)$(167)$(1)$3
OCI before reclassifications(837)1(46)(882)
Amounts reclassified from AOCI(16)(16)
Total OCI(853)1(46)(898)
Balance, March 31, 2022$(535)$5$(151)$(213)$(1)$(895)
 Net Unrealized Securities Gains Net Unrealized Derivatives Gains 
Defined
Benefit Plans
 Foreign Currency Translation Other Total
(in millions)
Balance, July 1, 2017$543
 $6
 $(120) $(129) $(1) $299
OCI before reclassifications(1) 
 
 16
 
 15
Amounts reclassified from AOCI(3) 1
 
 
 
 (2)
Total OCI(4) 1
 
 16
 
 13
Balance, September 30, 2017$539
(1) 
$7
 $(120) $(113) $(1) $312
Balance, January 1, 2017$479
 $5
 $(125) $(159) $
 $200
OCI before reclassifications88
 
 
 46
 (1) 133
Amounts reclassified from AOCI(28) 2
 5
 
 
 (21)
Total OCI60
 2
 5
 46
 (1) 112
Balance, September 30, 2017$539
(1) 
$7
 $(120) $(113) $(1) $312

AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)


 Net Unrealized Securities Gains Net Unrealized Derivatives Gains Defined Benefit Plans Foreign Currency Translation Total
(in millions)
Balance, July 1, 2016$842
 $3
 $(85) $(122) $638
OCI before reclassifications(24) 
 
 (16) (40)
Amounts reclassified from AOCI(4) 1
 
 
 (3)
Total OCI(28) 1
 
 (16) (43)
Balance, September 30, 2016$814
(1) 
$4
 $(85) $(138) $595
Balance, January 1, 2016$426
 $1
 $(91) $(83) $253
Cumulative effect of change in accounting policies6
 
 
 
 6
Balance, January 1, 2016, as adjusted432
 1
 (91) (83) 259
OCI before reclassifications389
 
 
 (55) 334
Amounts reclassified from AOCI(7) 3
 6
 
 2
Total OCI382
 3
 6
 (55) 336
Balance, September 30, 2016$814
(1) 
$4
 $(85) $(138) $595
(1) Includes $8 million and $5 million of noncredit related impairments on securities and net unrealized securities gains (losses) on previously impaired securities as of September 30, 2017 and September 30, 2016, respectively.
Net Unrealized Gains (Losses)
on Securities
Net Unrealized Gains (Losses)
on Derivatives
Defined
Benefit Plans
Foreign Currency TranslationOtherTotal
(in millions)
Balance, January 1, 2021$983$5$(204)$(154)$(1)$629
OCI before reclassifications(301)29(1)(273)
Amounts reclassified from AOCI(39)(39)
Total OCI(340)29(1)(312)
Balance, March 31, 2021$643$5$(175)$(155)$(1)$317
For the ninethree months ended September 30, 2017March 31, 2022 and 2016,2021, the Company repurchased a total of 8.01.4 million shares and 13.71.7 million shares, respectively, of its common stock for an aggregate cost of $1.0 billion$429 million and $1.3 billion,$363 million, respectively. In December 2015,August 2020, the Company’s Board of Directors authorized an expenditurea repurchase of up to $2.5 billion for the repurchase of shares of the Company’s common stock through December 31, 2017, which was exhausted in the third quarter 2017. In April 2017,September 30, 2022. On January 26, 2022, the Company’s Board of Directors authorized an additional expenditure of up to $2.5$3.0 billion for the repurchase of shares of the Company’s common stock through June 30, 2019.March 31, 2024. As of September 30, 2017,March 31, 2022, the Company had $2.4$3.0 billion remaining under thisthe share repurchase authorization.
The Company may also reacquire shares of its common stock under its share-based compensation plans related to restricted stock awards and certain option exercises. The holders of restricted shares may elect to surrender a portion of their shares on the vesting date to cover their income tax obligation. These vested restricted shares are reacquired by the Company and the Company’s payment of the holders’ income tax obligations are recorded as a treasury share purchase.
For the ninethree months ended September 30, 2017March 31, 2022 and 2016,2021, the Company reacquired 0.3 million shares and 0.3 million shares, respectively, of its common stock through the surrender of shares upon vesting and paid in the aggregate $33$89 million and $29$57 million, respectively, related to the holders’ income tax obligations on the vesting date. Option holders may elect to net settle their vested awards resulting in the surrender of the number of shares required to cover the strike price and tax obligation of the options exercised. These shares are reacquired by the Company and recorded as treasury shares. For the ninethree months ended September 30, 2017March 31, 2022 and 2016,2021, the Company reacquired 1.90.2 million shares and 0.30.6 million shares, respectively, of its common stock through the net settlement of options for an aggregate value of $248$62 million and $31$134 million, respectively.
During the ninethree months ended September 30, 2017March 31, 2022 and 2016,2021, the Company reissued 0.80.5 million and 0.90.3 million, respectively, treasury shares respectively, for restricted stock award grants, performance share units and issuance of shares vested under advisor deferred compensation plans.
14.15.  Income Taxes
The Company’s effective tax rate was 19.9%17.6% and 9.7%11.3% for the three months ended September 30, 2017March 31, 2022 and 2016,2021, respectively.
The Company’s effective tax rate was 19.5% and 18.6% for the ninethree months ended September 30, 2017 and 2016, respectively. The effective tax rates areMarch 31, 2022 is lower than the statutory tax rate as a result of tax preferred items including incentive compensation, foreign tax credits, and low income housing tax credits, partially offset by state income taxes, net of federal benefit.
46

AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
The effective tax rate for the three months ended March 31, 2021 is lower than the statutory tax rate as a result of tax preferred items including the dividends received deduction,incentive compensation, low income housing tax credits, stock compensationforeign tax credits and lowerdividends received deduction, partially offset by state income taxes, on net income from foreign subsidiaries. of federal benefit.
The increase in thehigher effective tax rate for the three months ended September 30, 2017March 31, 2022 compared to March 31, 2021 is primarily the result of higher pretax income and a decrease in low income housing tax credits, partially offset by an increase in incentive compensation in the current period compared to the prior year period is primarily due to higher pretax income, partially offset by a $25 million benefit for stock compensation due to the adoption of a new accounting standard.period.
Included in the Company’s deferred income tax assets are tax benefits related to state net operating losses of $15$12 million, net of federal benefit, which will expire beginning December 31, 2017.2022 and foreign net operating losses of $40 million.
The Company is required to establish a valuation allowance for any portion of the deferred tax assets that management believes will not be realized. 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. Consideration is given to, among other things in making this determination, (i) future taxable income exclusive of reversing

AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)


temporary differences and carryforwards, (ii) future reversals of existing taxable temporary differences, (iii) taxable income in prior carryback years, and (iv) tax planning strategies. Based on analysis of the Company’s tax position, management believes it is more likely than not that the Company will not realize certain state net operating losses of $11 million, state deferred tax assets of $3 million and stateforeign net operating losses andof $18 million; therefore, a valuation allowance has been established. The valuation allowance was $14 million and $11$32 million as of September 30, 2017both March 31, 2022 and December 31, 2016, respectively.2021.
As of September 30, 2017March 31, 2022 and December 31, 2016,2021, the Company had $127$130 million and $115$125 million, respectively, of gross unrecognized tax benefits. If recognized, approximately $55$99 million and $46$95 million, net of federal tax benefits, of unrecognized tax benefits as of September 30, 2017March 31, 2022 and December 31, 2016,2021, respectively, would affect the effective tax rate.
It is reasonably possible that the total amount of unrecognized tax benefits will change in the next 12 months. The Company estimates that the total amount of gross unrecognized tax benefits may decrease by $15$35 million to $25$45 million in the next 12 months primarily due to resolution of auditsInternal Revenue Service (“IRS”) settlements and statute expirations.state exams.
The Company recognizes interest and penalties related to unrecognized tax benefits as a component of the income tax provision. The Company recognized nil and a net increase of $1 million and a net decrease of $2 million in interest and penalties for the three months ended March 31, 2022 and nine months ended September 30, 2017, respectively. The Company recognized nil and a net decrease of $44 million in interest and penalties for the three months and nine months ended September 30, 2016,2021, respectively. As of September 30, 2017March 31, 2022 and December 31, 2016,2021, the Company had a payable of $9$11 million and $8$10 million, respectively, related to accrued interest and penalties.
The Company or one or more of its subsidiaries files income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. In the third quarter, the Company received final cash settlementsThe federal statute of limitations are closed on years through 2015, except for resolution of the 2006one issue for 2014 and 2011 audits. The IRS has completed its examination of the 2008 through 2010 tax returns and these years are effectively settled; however, the statutes of limitation, remain open for certain carryover adjustments.2015 which was claimed on amended returns. The IRS is currently auditing the Company’s U.S. income tax returns for 20122016 through 2015.2020. The Company’s state income tax returns are currently under examination by various jurisdictions for years ranging from 20052015 through 2015. 2020.
15.16.  Contingencies
The Company is required by law to be a member of the guaranty fund association in every state where it is licensed to do business. In the event of insolvency of one or more unaffiliated insurance companies, the Company could be adversely affected by the requirement to pay assessments to the guaranty fund associations.
The Company projects its cost of future guaranty fund assessments based on estimates of insurance company insolvencies provided by the National Organization of Life and Health Insurance Guaranty Associations (“NOLHGA”) and the amount of its premiums written relative to the industry-wide premium in each state. The Company accrues the estimated cost of future guaranty fund assessments when it is considered probable that an assessment will be imposed, the event obligating the Company to pay the assessment has occurred and the amount of the assessment can be reasonably estimated.
The Company has a liability for estimated guaranty fund assessments and a related premium tax asset. As of September 30, 2017 and December 31, 2016, the estimated liability was $15 million and $16 million, respectively, and the related premium tax asset was $12 million and $14 million, respectively. The expected period over which guaranty fund assessments will be made and the related tax credits recovered is not known.Contingencies
The Company and its subsidiaries are involved in the normal course of business in legal proceedings which include regulatory inquiries, arbitration and arbitration proceedings,litigation, 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 litigationlegal proceedings arising out of its general business activities, such as its investments, contracts, leases and employment relationships. Uncertain economic conditions, heightened and sustained volatility in the financial markets and significant financial reform legislation 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 Company’s businesses remains elevated. From time to time, the Company receives requests for information from, and/or has been subject to examination or claims by, the SEC, FINRA,the Financial Industry Regulatory Authority, the OCC, the UKU.K. Financial Conduct Authority, the Federal Reserve Board, state insurance and securities regulators, state attorneys general and various other domestic or foreign governmental and quasi-governmental authorities on behalf of themselves or clients concerning the Company’s business activities and practices, and the practices of the Company’s financial advisors. The Company typically has numerous pending matters which include information requests, exams or inquiries that the Company has received during recent periods regarding certain matters, including:subjects, including from time to time: sales and distribution of mutual funds, exchange traded funds, annuities, equity and fixed income securities, real estate investment trusts, insurance products, and financial advice offerings, including managed accounts; wholesaler activity; supervision of the Company’s financial advisors;advisors and other associated persons; administration of insurance and annuity claims; security of client information; trading activity and the Company’s monitoring and supervision of such activity; performance advertising and product disclosures, including third party performance claims; and transaction monitoring systems and controls. The Company is also participating in regulatory audits, market

47

AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)

(Continued)

conduct examinations and other state inquiries relating to an industry-wide investigationsupervision of unclaimed propertysuch activity; and escheatment practicestransaction monitoring systems and procedures.controls. The Company has cooperated and will continue to cooperate with the applicable regulators.
These legal and regulatory proceedings and disputes are subject to uncertainties and, as such, it is inherently difficult to determine whether any loss is probable or even reasonably possible, or to reasonably estimate the amount of any loss. The Company cannot predict with certainty if, how or when any such proceedings will be initiated or resolved or what the eventual settlement, fine, penalty or other relief, if any, may be, particularly for proceedings that are in their early stages of development or where plaintiffs seek indeterminate damages. Numerous issues mayresolved. Matters frequently need to be resolved, including through potentially lengthy discovery and determination of important factual matters, and by addressing unsettled legal questions relevant to the proceedings in question,more developed before a loss or range of loss can be reasonably estimated for any proceeding. An adverse outcome in one or more proceedingproceedings could eventually result in adverse judgments, settlements, fines, penalties or other sanctions, in addition to further claims, examinations or adverse publicity that could have a material adverse effect on the Company’s consolidated financial condition, results of operations or liquidity.
In accordance with applicable accounting standards, the Company establishes an accrued liability for contingent litigation and regulatory matters when those matters present loss contingencies that are both probable and can be reasonably estimated. The Company discloses the nature of the contingency when management believes there is at least a reasonable possibility that the outcome may be material to the Company’s consolidated financial statements and, where feasible, an estimate of the possible loss. In such cases, there still may be an exposure to loss in excess of any amounts reasonably estimated and accrued. When a loss contingency is not both probable and reasonably estimable, the Company does not establish an accrued liability, but continues to monitor, in conjunction with any outside counsel handling a matter, further developments that would make such loss contingency both probable and reasonably estimable. Once the Company establishes an accrued liability with respect to a loss contingency, the Company continues to monitor the matter for further developments that could affect the amount of the accrued liability that has been previously established, and any appropriate adjustments are made each quarter.
Certain legalGuaranty Fund Assessments
RiverSource Life and regulatory proceedingsRiverSource Life Insurance Co. of New York (“RiverSource Life of NY”) are described below.
required by law to be a member of the guaranty fund association in every state where they are licensed to do business. In November 2014, a lawsuit was filed against the Company’s London-based asset management affiliate in England’s High Courtevent of Justice Commercial Court, entitled Otkritie Capital International Ltd and JSC Otkritie Holding v. Threadneedle Asset Management Ltd. and Threadneedle Management Services Ltd. (“Threadneedle Defendants”). Claimants allege that the Threadneedle Defendants should be held liable for the wrongful actsinsolvency of one or more unaffiliated insurance companies, the Company could be adversely affected by the requirement to pay assessments to the guaranty fund associations. The Company projects its cost of its former employees, who in February 2014 was held jointlyfuture guaranty fund assessments based on estimates of insurance company insolvencies provided by the National Organization of Life and severally liable with several other parties for conspiracyHealth Insurance Guaranty Associations and dishonest assistance in connection with a fraud perpetrated against Claimants in 2011. Claimants allege they were harmed by that fraud in the amount of $106its premiums written relative to the industry-wide premium in each state. The Company accrues the estimated cost of future guaranty fund assessments when it is considered probable that an assessment will be imposed, the event obligating the Company to pay the assessment has occurred and the amount of the assessment can be reasonably estimated.
The Company has a liability for estimated guaranty fund assessments and a related premium tax asset. As of both March 31, 2022 and December 31, 2021, the estimated liability was $12 million. As of both March 31, 2022 and December 31, 2021, the related premium tax asset was $10 million. The Threadneedle Defendants applied to the Court for an Order dismissing the proceedings as an abuse of process of the Court. This application was declined in August 2015. The Threadneedle Defendants applied to the Court of Appeal for leave to appeal,expected period over which application was granted in November 2015. In April 2017, the Court of Appeal denied the Threadneedle Defendants’ appeal. As a result, the caseguaranty fund assessments will proceed in England’s High Court of Justice, Commercial Court. A Case Management Conference was held October 6, 2017, and it was directed that trial of the matter shall not be set before May 1, 2019. The Company cannot reasonably estimate the range of loss, if any, that may result from this matter due to the early procedural status of the case, the number of parties involved,made and the failure to allege any specific, evidence based damages.related tax credits recovered is not known.
16.17.  Earnings per Share
The computationcomputations of basic and diluted earnings per share is as follows:
Three Months Ended September 30, Nine Months Ended September 30,Three Months Ended March 31,
2017 20162017 201620222021
(in millions, except per share amounts)(in millions, except per share amounts)
Numerator:Numerator:Numerator:
Net income$503
 $215
 $1,299
 $914
Net income$761 $437 
Denominator:Denominator:Denominator:
Basic: Weighted-average common shares outstanding153.0
 164.0
 155.2
 168.3
Basic: Weighted-average common shares outstanding113.7 119.8 
Effect of potentially dilutive nonqualified stock options and other share-based awards2.4
 1.8
 2.4
 1.8
Effect of potentially dilutive nonqualified stock options and other share-based awards2.5 2.4 
Diluted: Weighted-average common shares outstanding155.4
 165.8
 157.6
 170.1
Diluted: Weighted-average common shares outstanding116.2 122.2 
Earnings per share:Earnings per share:Earnings per share:
Basic$3.29
 $1.31
 $8.37
 $5.43
Basic$6.69 $3.65 
Diluted$3.24
 $1.30
 $8.24
 $5.37
Diluted$6.55 $3.58 
The calculation of diluted earnings per share excludes the incremental effect of 2.90.2 million and 0.3 million options as of September 30, 2016,March 31, 2022 and 2021 respectively, due to their anti-dilutive effect. There was no incremental effect as of September 30, 2017.

48

AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)

(Continued)

17.18.  Segment Information
The Company’s 4 reporting segments are Advice & Wealth Management, Asset Management, Annuities,Retirement & Protection Solutions and Corporate & Other.
Beginning in the first quarter of 2017, the long term care business, which had been reported as part of the Protection segment, is reflected in the Corporate & Other segment. The Company discontinued underwriting long term care insurance in 2002 and the transfer of this closed block to the Corporate & Other segment allows investors to better understand the performance of the Company’s on-going Protection businesses. Prior periods presented have been restated to reflect the change.
The accounting policies of the segments are the same as those of the Company, except for operating adjustments defined below, the method of capital allocation, the accounting for gains (losses) from intercompany revenues and expenses and not providing for income taxes on a segment basis.
Management uses segment adjusted operating measures in goal setting, as a basis for determining employee compensation and in evaluating performance on a basis comparable to that used by some securities analysts and investors. Consistent with GAAP accounting guidance for segment reporting, adjusted operating earnings is the Company’s measure of segment performance. OperatingAdjusted operating earnings should not be viewed as a substitute for GAAP pretax income. The Company believes the presentation of segment adjusted operating earnings, as the Company measures it for management purposes, enhances the understanding of its business by reflecting the underlying performance of its core operations and facilitating a more meaningful trend analysis.
OperatingManagement excludes mean reversion related impacts from the Company’s adjusted operating measures. The mean reversion related impact is defined as the impact on variable annuity and VUL products for the difference between assumed and updated separate account investment performance on DAC, DSIC, unearned revenue amortization, reinsurance accrual and additional insurance benefit reserves.
Effective in the third quarter of 2021, management has excluded the impacts of block transfer reinsurance transactions from the adjusted operating measures. Prior periods have been updated to reflect this change to be consistent with the current period presentation.
Adjusted operating earnings is defined as adjusted operating net revenues less adjusted operating expenses. OperatingAdjusted operating net revenues and adjusted operating expenses exclude the market impact on IUL benefits (net of hedges and the related DAC amortization, unearned revenue amortization, and the reinsurance accrual), integration and restructuring charges and the impact of consolidating investment entities. Operating net revenues also exclude net realized investment gains or losses (net of unearned revenue amortization and the reinsurance accrual); the market impact on non-traditional long-duration products (including variable and fixed deferred annuity contracts and UL insurance contracts), net of hedges and the related DSIC and DAC amortization, unearned revenue amortization, and the reinsurance accrual; mean reversion related impacts (the impact on variable annuity and VUL products for the difference between assumed and updated separate account investment performance on DAC, DSIC, unearned revenue amortization, reinsurance accrual and additional insurance benefit reserves); block transfer reinsurance transaction impacts; the market impact of hedges to offset interest rate and currency changes on unrealized gains or losses for certain investments. Operating expenses also exclude the market impact on variable annuity guaranteed benefits (net of hedgesinvestments; integration and restructuring charges; and the related DSIC and DAC amortization) and the DSIC and DAC amortization offset to net realized investment gains or losses.impact of consolidating CIEs. The market impact on variable annuity guaranteed benefits and IUL benefitsnon-traditional long-duration products includes changes in embedded derivative values caused by changes in financial market conditions, net of changes in economic hedge values and unhedged items including the difference between assumed and actual underlying separate account investment performance, fixed income credit exposures, transaction costs and certain policyholder contract elections, net of related impacts on DAC and DSIC amortization. The market impact also includes certain valuation adjustments made in accordance with FASB Accounting Standards Codification 820, Fair Value Measurements and Disclosures, including the impact on embedded derivative values of discounting projected benefits to reflect a current estimate of the Company’s life insurance subsidiary’s nonperformance spread.

The following tables summarize selected financial information by segment and reconcile segment totals to those reported on the consolidated financial statements:
September 30,
2017
 December 31,
2016
March 31, 2022December 31, 2021
(in millions)(in millions)
Advice & Wealth Management$13,407
 $12,654
Advice & Wealth Management$26,752 $24,986 
Asset Management8,163
 7,254
Asset Management10,457 10,990 
Annuities96,656
 93,481
Protection17,543
 16,780
Retirement & Protection SolutionsRetirement & Protection Solutions112,881 119,469 
Corporate & Other9,717
 9,652
Corporate & Other17,435 20,534 
Total assets$145,486
 $139,821
Total assets$167,525 $175,979 

49

AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)

(Continued)

 Three Months Ended March 31,
20222021
(in millions)
Adjusted operating net revenues:
Advice & Wealth Management$2,042 $1,879 
Asset Management1,017 828 
Retirement & Protection Solutions772 787 
Corporate & Other116 139 
Elimination of segment revenues (1)
(352)(379)
Total segment adjusted operating net revenues3,595 3,254 
Net realized gains (losses)17 57 
Revenue attributable to consolidated investment entities17 34 
Market impact on non-traditional long-duration products, net26 
Total net revenues per consolidated statements of operations$3,655 $3,350 

 Three Months Ended September 30, Nine Months Ended September 30,
2017 20162017 2016
(in millions)
Operating net revenues:
Advice & Wealth Management$1,383
 $1,272
 $4,026
 $3,720
Asset Management778
 740
 2,252
 2,203
Annuities626
 631
 1,861
 1,846
Protection478
 613
 1,516
 1,693
Corporate & Other50
 51
 162
 178
Eliminations (1)(2)
(348) (353) (1,040) (1,042)
Total segment operating revenues2,967
 2,954
 8,777
 8,598
Net realized investment gains (losses)(3) 6
 35
 (5)
Revenues attributable to CIEs23
 27
 70
 77
Market impact on IUL benefits(5) 6
 (7) 18
Market impact of hedges on investments(1) 5
 (8) (54)
Total net revenues per consolidated statements of operations (3)(4)
$2,981
 $2,998
 $8,867
 $8,634
(1)Represents the elimination of intersegment revenues recognized for the three months ended September 30, 2017March 31, 2022 and 20162021 in each segment as follows: Advice & Wealth Management ($233228 million and $244$250 million, respectively); Asset Management ($12 million and $12$13 million, respectively); AnnuitiesRetirement & Protection Solutions ($88112 million and $85 million, respectively); Protection ($16 million and $12$116 million, respectively); and Corporate & Other ($(1) million(nil and nil, respectively).
(2)
 Three Months Ended March 31,
20222021
(in millions)
Adjusted operating earnings:
Advice & Wealth Management$440 $389 
Asset Management285 228 
Retirement & Protection Solutions191 183 
Corporate & Other(76)(21)
Total segment adjusted operating earnings840 779 
Net realized gains (losses)16 55 
Net income (loss) attributable to consolidated investment entities(1)
Market impact on non-traditional long-duration products, net134 (396)
Mean reversion related impacts(59)56 
Integration and restructuring charges(10)— 
Pretax income per consolidated statements of operations$923 $493 
Represents the elimination of intersegment revenues recognized for the nine months ended September 30, 2017 and 2016in each segment as follows: Advice & Wealth Management ($701 million and $727 million, respectively); Asset Management ($35 million and $33 million, respectively); Annuities ($259 million and $247 million, respectively); Protection ($46 million and $34 million, respectively); and Corporate & Other ($(1) million and $1 million, respectively).
(3) Includes foreign net revenues of $198 million and $162 million for the three months ended September 30, 2017 and 2016, respectively.
(4)
Includes foreign net revenues of $539 million and $500 million for the nine months ended September 30, 2017 and 2016, respectively.
50
 Three Months Ended September 30, Nine Months Ended September 30,
2017 20162017 2016
(in millions)
Operating earnings:
Advice & Wealth Management$298
 $231
 $837
 $657
Asset Management200
 155
 526
 452
Annuities281
 (68) 562
 202
Protection55
 84
 169
 190
Corporate & Other(136) (145) (292) (271)
Total segment operating earnings698
 257
 1,802
 1,230
Net realized investment gains (losses)(3) 6
 33
 (5)
Net income (loss) attributable to CIEs
 
 2
 (1)
Market impact on variable annuity guaranteed benefits(55) (37) (198) (78)
Market impact on IUL benefits(10) 7
 (16) 31
Market impact of hedges on investments(1) 5
 (8) (54)
Integration and restructuring charges(1) 
 (1) 
Pretax income per consolidated statements of operations$628
 $238
 $1,614
 $1,123



AMERIPRISE FINANCIAL, INC. 

ITEM 2.  MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion and analysis of our consolidated financial condition and results of operations should be read in conjunction with the “Forward-Looking Statements” that follow and our Consolidated Financial Statements and Notes presented in Item 1. Our Management’s Discussion and Analysis should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2016,2021, filed with the Securities and Exchange Commission (“SEC”) on February 23, 201725, 2022 (“20162021 10-K”), as well as our current reports on Form 8-K and other publicly available information. References below to “Ameriprise Financial,” “Ameriprise,” the “Company,” “we,” “us,” and “our” refer to Ameriprise Financial, Inc. exclusively, to our entire family of companies, or to one or more of our subsidiaries.
Overview
Ameriprise Financial is a diversified financial services company with a more than 120 year125-year history of providing financial solutions. We are a long-standing leader in financial planning and advice with $1.3 trillion in assets under management and administration as of March 31, 2022. We offer a broad range of products and services designed to achieve the financial objectives of individual and institutional clients. We are America’s leader inclients’ financial planning and a leading global financial institution with $869.5 billion in assets under management and administration as of September 30, 2017.objectives.
The coronavirus disease 2019 (‘‘COVID-19’’) pandemic has presented ongoing significant economic and societal disruption and market unpredictability, which has affected our business and operating environment driven by what has been a low interest rate environment and volatility and changes in the equity markets and the potential associated implications to client behavior. COVID-19 continues its ongoing impact and has been occurring in multiple waves, so there are still no reliable estimates of how long the implications from the pandemic will last, the effects current and other new variants will ultimately have, how many people are likely to be affected by it, or its impact on the overall economy. There is still significant uncertainty around the extent to which the COVID-19 pandemic will continue to impact our business, results of operations, and financial condition, which depends on current and future developments, including the ultimate scope, duration and severity of the pandemic, success of worldwide vaccination efforts, multiple mutations of COVID-19 or similar diseases, the effectiveness of our office reopenings, the additional measures that may be taken by various governmental authorities in response to the outbreak, the actions of third parties in response to the pandemic, and the possible further impacts on the global economy. Given the ongoing impact of the pandemic, financial results frommay not be comparable to previous years and the businesses underlyingresults presented in this report may not necessarily be indicative of future operating results. For further information regarding the impact of the COVID-19 pandemic, and any potentially material effects, see Part 1 - Item 1A “Risk Factors” of our go-to-market approaches are reflected in our five operating segments:2021 10-K.
Advice & Wealth Management;
Asset Management;
Annuities;
Protection; and
Corporate & Other.
Our operating segments are aligned with the financial solutions we offer to address our clients’ needs. The products and services we provide retail clients and, to a lesser extent, institutional clients, are the primary source of our revenues and net income. Revenues and net income are significantly affected by investment performance and the total value and composition of assets we manage and administer for our retail and institutional clients as well as the distribution fees we receive from other companies. These factors, in turn, are largely determined by overall investment market performance and the depth and breadth of our individual client relationships.
Financial markets and macroeconomic conditions have had and will continue to have a significant impact on our operating and performance results. In addition, the business, political and regulatory environmentenvironments in which we operate remainsare subject to elevated uncertainty and substantial, frequent change. To succeed,Accordingly, we expect to continue focusing on our key strategic objectives.objectives and obtaining operational and strategic leverage from our core capabilities. The success of these and other strategies may be affected by the factors discussed in “Item 1A. RiskItem 1A, “Risk Factors” in our 20162021 10-K and other factors as discussed herein.
Equity price, credit market and interest rate fluctuations can have a significant impact on our results of operations, primarily due to the effects they have on the asset management and other asset-based fees we earn, the “spread” income generated on our fixed deferred annuities, fixed insurance, deposit products and the fixed portion of variable annuities and variable insurance contracts, the value of deferred acquisition costs (“DAC”) and deferred sales inducement costs (“DSIC”) assets, the values of liabilities for guaranteed benefits associated with our variable annuities and the values of derivatives held to hedge these benefits.benefits and the “spread” income generated on our fixed deferred annuities, fixed insurance, the fixed portion of variable annuities and variable insurance contracts and deposit products.
Earnings, as well as adjusted operating earnings will continue toafter tax, may be negatively impacted by the ongoing low interest rate environment. Although interest rates could rise in the future, we continue to operate within a comparatively low interest rate environment. In addition to continuing spread compression in our interest sensitive product lines, a sustained low interest rate environment may result in increases to our reserves and changes in various rate assumptions we use to amortize DAC and DSIC, which may negatively impact our adjusted operating earnings.earnings after tax. For additional discussion on our interest rate risk, see Item 3. “Quantitative and Qualitative Disclosures About Market Risk” and the information set forth in this Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Market Risk.”
InOn June 2, 2021, we filed an application to convert Ameriprise Bank, FSB to a state-chartered industrial bank regulated by the third quarterUtah Department of Financial Institutions and the Federal Deposit Insurance Corporation. We also filed an application to transition the FSB’s personal trust services business to a new limited purpose national trust bank regulated by the Office of the year, we updated our market-related inputs and implemented model changes related to our living benefit valuation. In addition, we conducted our annual reviewComptroller of life insurance and annuity valuation assumptions relative to current experience and management expectations including modeling changes. These aforementionedthe Currency. If the applications are approved, the proposed changes are collectively referrednot expected to as unlocking.
The favorable unlocking impact inour long-term strategy for the third quarter of 2017 primarily reflected a positive impact from updates to market-related inputs to our living benefit valuation. In addition, premium deficiency testing for our long term care (“LTC”) business resulted in a loss recognition reserve of $57 million in the third quarter of 2017 primarily due to higher morbidity, partially offset by premium increases.
The unfavorable unlocking impact in the third quarter of 2016 primarily reflected low interest ratesbank and higher persistency on living benefit contracts that more than offset benefits from persistency on annuity contracts without living benefits, an update to market-related inputs related to our living benefit valuation and other model updates. Our long-term interest rate assumption remained unchanged, but we extended the period it would take for rates to reach our long term level from 3.5 years to 5.5 years. In addition, our review of our LTC business in the third quarter of 2016 resulted in a loss recognition of $31 million due to low interest rates, higher morbidity and higher reinsurance expenses, slightly offset by premium increases. The $31 million, which is included in the unlocking impact in the third quarter of 2016, was comprised of $58 million of amortization of DAC and the release of the related deferred reinsurance liability of $27 million.

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AMERIPRISE FINANCIAL, INC. 

Seeshould enable us to continue our Consolidatedstrong lineup of banking solutions, including deposits, credit cards, mortgages and Segment Results of Operations sections below for the pretax impacts onsecurities-based lending to our revenues and expenses attributable to unlocking and additional discussion of the drivers of the unlocking impact.wealth management clients without interruption.
We consolidate certain variable interest entities for which we provide asset management services. These entities are defined as consolidated investment entities (“CIEs”). While the consolidation of the CIEs impacts our balance sheet and income statement, our exposure to these entities is unchanged and there is no impact to the underlying business results. For further information on CIEs, see Note 34 to our Consolidated Financial Statements. The results of operations of the CIEs are reflected in the Corporate & Other segment. On a consolidated basis, the management fees we earn for the services we provide to the CIEs and the related general and administrative expenses are eliminated and the changes in the fair value of assets and liabilities related to the CIEs, primarily syndicated loans and debt, are reflected in net investment income. We continue to include the fees from these entities in the management and financial advice fees line within our Asset Management segment.
While our consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), management believes that adjusted operating measures, which exclude net realized investment gains or losses, net of the related DSIC and DAC amortization, unearned revenue amortization and the reinsurance accrual; the market impact on non-traditional long-duration products (including variable and fixed deferred annuity guaranteed benefits,contracts and universal life (“UL”) insurance contracts, net of hedges and the related DSIC and DAC amortization; the market impact on indexed universal life benefits, net of hedges and the related DAC amortization, unearned revenue amortization and the reinsurance accrual; mean reversion related impacts (the impact on variable annuity and variable universal life (“VUL”) products for the difference between assumed and updated separate account investment performance on DAC, DSIC, unearned revenue amortization, reinsurance accrual and additional insurance benefit reserves); the market impact of hedges to offset interest rate and currency changes on unrealized gains or losses for certain investments; block transfer reinsurance transaction impact; gain or loss on disposal of a business that is not considered discontinued operations; integration and restructuring charges; income (loss) from discontinued operations; and the impact of consolidating CIEs, best reflect the underlying performance of our core operations and facilitate a more meaningful trend analysis. Management uses certain of these non-GAAP measures to evaluate our financial performance on a basis comparable to that used by some securities analysts and investors. Also, certain of these non-GAAP measures are taken into consideration, to varying degrees, for purposes of business planning and analysis and for certain compensation-related matters. Throughout our Management’s Discussion and Analysis, these non-GAAP measures are referred to as adjusted operating measures. These non-GAAP measures should not be viewed as a substitute for U.S. GAAP measures.
It is management’s priority to increase shareholder value over a multi-year horizon by achieving our on-average, over-time financial targets.
Our financial targets are:
Operating total net revenue growth of 6% to 8%,
OperatingAdjusted operating earnings per diluted share growth of 12% to 15%, and
OperatingAdjusted operating return on equity excluding accumulated other comprehensive income (“AOCI”) of 19% to 23%over 30%.
The following tables reconcile our GAAP measures to adjusted operating measures:
 Per Diluted Share
Three Months Ended March 31,Three Months Ended March 31,
2022202120222021
(in millions, except per share amounts)
Net income (loss)$761 $437 $6.55 $3.58 
Less: Net realized investment gains (losses) (1)
16 55 0.14 0.45 
Add: Market impact on non-traditional long-duration products (1)
(134)396 (1.15)3.24 
Add: Mean reversion related impacts (1)
59 (56)0.51 (0.46)
Add: Integration/restructuring charges (1)
10 — 0.09 — 
Less: Net income (loss) attributable to CIEs(1)0.02 (0.01)
Tax effect of adjustments (2)
17 (60)0.14 (0.49)
Adjusted operating earnings$695 $663 $5.98 $5.43 
Weighted average common shares outstanding:    
Basic113.7 119.8   
Diluted116.2 122.2   
 Three Months Ended September 30, Nine Months Ended September 30,
2017 2016 2017 2016
(in millions)
Total net revenues$2,981
 $2,998
 $8,867
 $8,634
Less: Revenue attributable to CIEs23
 27
 70
 77
Less: Net realized investment gains (losses)(3) 6
 35
 (5)
Less: Market impact on indexed universal life benefits(5) 6
 (7) 18
Less: Market impact of hedges on investments(1) 5
 (8) (54)
Operating total net revenues$2,967
 $2,954
 $8,777
 $8,598
(1) Pretax adjusted operating adjustments.
(2) Calculated using the statutory federal tax rate of 21%.

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AMERIPRISE FINANCIAL, INC. 

 Three Months Ended September 30, Per Diluted Share
Three Months Ended September 30,
2017 20162017 2016
(in millions, except per share amounts)
Net income$503
 $215
 $3.24
 $1.30
Add: Integration/restructuring charges (1)
1
 
 0.01
 
Add: Market impact on variable annuity guaranteed benefits (1)
55
 37
 0.35
 0.22
Add: Market impact on indexed universal life benefits (1)
10
 (7) 0.06
 (0.04)
Add: Market impact of hedges on investments (1)
1
 (5) 0.01
 (0.03)
Less: Net realized investment gains (losses) (1)
(3) 6
 (0.02) 0.04
Tax effect of adjustments (2)
(25) (7) (0.16) (0.04)
Operating earnings$548
 $227
 $3.53
 $1.37
 
Weighted average common shares outstanding: 
  
  
  
Basic153.0
 164.0
  
  
Diluted155.4
 165.8
  
  
(1) Pretax operating adjustments.
(2) Calculated using the statutory tax rate of 35%.
 Nine Months Ended September 30, Per Diluted Share
Nine Months Ended September 30,
2017 20162017 2016
(in millions, except per share amounts)
Net income$1,299
 $914
 $8.24
 $5.37
Less: Net income (loss) attributable to CIEs1
 (1) 0.01
 (0.01)
Add: Integration/restructuring charges (1)
1
 
 0.01
 
Add: Market impact on variable annuity guaranteed benefits (1)
198
 78
 1.26
 0.46
Add: Market impact on indexed universal life benefits (1)
16
 (31) 0.10
 (0.18)
Add: Market impact of hedges on investments (1)
8
 54
 0.05
 0.31
Less: Net realized investment gains (losses) (1)
33
 (5) 0.21
 (0.03)
Tax effect of adjustments (2)
(67) (37) (0.42) (0.22)
Operating earnings$1,421
 $984
 $9.02
 $5.78
 
Weighted average common shares outstanding: 
  
  
  
Basic155.2
 168.3
  
  
Diluted157.6
 170.1
  
  
(1) Pretax operating adjustments.
(2) Calculated using the statutory tax rate of 35%.

AMERIPRISE FINANCIAL, INC. 

The following table reconciles the trailing twelve months’ sum of net income attributable to Ameriprise Financial toadjusted operating earnings and the five-point average of quarter-end equity to adjusted operating equity:
 Twelve Months Ended March 31,
20222021
(in millions)
Net income$3,084 $(65)
Less: Adjustments (1)
328 (1,804)
Adjusted operating earnings2,756 1,739 
Total Ameriprise Financial, Inc. shareholders’ equity5,518 6,126 
Less: AOCI, net of tax(3)312 
Total Ameriprise Financial, Inc. shareholders’ equity, excluding AOCI5,521 5,814 
Less: Equity impacts attributable to CIEs
Adjusted operating equity$5,520 $5,813 
 Twelve Months Ended September 30,
2017 2016
(in millions)
Net income attributable to Ameriprise Financial$1,699
 $1,271
Less: Adjustments (1)
(165) (154)
Operating earnings$1,864
 $1,425
 
Total Ameriprise Financial, Inc. shareholders’ equity$6,369
 $7,139
Less: AOCI, net of tax325
 478
Total Ameriprise Financial, Inc. shareholders’ equity, excluding AOCI6,044
 6,661
Less: Equity impacts attributable to CIEs1
 62
Operating equity$6,043
 $6,599
 
Return on equity, excluding AOCI28.1% 19.1%
Operating return on equity, excluding AOCI (2)
30.8% 21.6%
Return on equity, excluding AOCI55.9 %(1.1)%
Adjusted operating return on equity, excluding AOCI (2)
49.9 %29.9 %
(1)
(1) Adjustments reflect the trailing twelve months’ sum of after-tax net realized investment gains/losses, net of DSIC and DAC amortization, unearned revenue amortization and the reinsurance accrual; the market impact on variable annuity guaranteed benefits, net of hedges and related DSIC and DAC amortization; the market impact on indexed universal life benefits, net of hedges and the related DAC amortization, unearned revenue amortization, and the reinsurance accrual; the market impact of hedges to offset interest rate changes on unrealized gains or losses for certain investments; integration and restructuring charges; and net income (loss) from consolidated investment entities. After-tax is calculated using the statutory tax rate of 35%.
(2)
Operating return on equity, excluding AOCI, is calculated using the trailing twelve months of earnings excluding the after-tax net realized investment gains/losses, net of DSIC and DAC amortization, unearned revenue amortization and the reinsurance accrual; market impact on variable annuity guaranteed benefits, net of hedges and related DSIC and DAC amortization; the market impact on indexed universal benefits, net of hedges and the related DAC amortization, unearned revenue amortization, and the reinsurance accrual; the market impact of hedges to offset interest rate changes on unrealized gains or losses for certain investments; integration and restructuring charges; and net income (loss) from consolidated investment entities in the numerator, and Ameriprise Financial shareholders’ equity, excluding AOCI and the impact of consolidating investment entities using a five-point average of quarter-end equity in the denominator. After-tax is calculated using the statutory rate of 35%.
The Department of Labor published regulations in April 2016after-tax net realized investment gains/losses, net of DSIC and DAC amortization, unearned revenue amortization and the reinsurance accrual; the market impact on non-traditional long-duration products (including variable and fixed deferred annuity contracts and UL insurance contracts), net of hedges and related DSIC and DAC amortization, unearned revenue amortization and the reinsurance accrual; mean reversion related impacts; block transfer reinsurance transaction impacts; the market impact of hedges to offset interest rate and currency changes on unrealized gains or losses for certain investments; gain or loss on disposal of a business that expandedis not considered discontinued operations; integration and restructuring charges; income (loss) from discontinued operations; and net income (loss) from consolidated investment entities. After-tax is calculated using the scopestatutory tax rate of who21%.
(2) Adjusted operating return on equity, excluding AOCI is considered an ERISA fiduciary and these regulations focus in large part on investment recommendations made by financial advisors, registered investment advisors, and other investment professionals to retirement investors, how financial advisors are able to discuss IRA rollovers, as well as how financial advisors and affiliates can transact with retirement investors. Tax qualified accounts, particularly IRAs, make up a significant portion of our assets under management and administration. The first phase of the regulations went into effect on June 9, 2017 and requires financial advisors to make recommendations related to assets held in IRAs and employer sponsored retirement plans in accordance with the following impartial conduct standards: recommendations must becalculated using adjusted operating earnings in the best interest of the client, compensation paid for the recommendations must be reasonablenumerator, and Ameriprise Financial shareholders’ equity, excluding AOCI and the financial advisor must not make any misleading statements. We adopted policies and procedures designed to comply with the impartial conduct standards and communicated those policies and procedures to our advisors and staff. The second phaseimpact of the regulation pertaining toconsolidating investment entities using a new “best interest contract exemption” puts into place a numberfive-point average of additional requirements including entering into a best interest contract with clients, enhanced disclosure of fees and conflicts of interest, limits on differential commissions within a product category, the adoption of policies and procedures to ensure the best interest standard is met, and findings related to platforms that are limited to products that pay third-party payments and/or include proprietary products. The second phase of the regulation is currently scheduled to become effective on January 1, 2018. These regulations are currently under review by the Department of Labor and the Department has proposed to delay the second phase of the regulations until July 1, 2019, which would give the Department of Labor more time to determine if further revisions to the regulations are advisable. However, as of November 1 the Department of Labor has not issued final guidance implementing a further delay. As a result, it is unclear whether the Department of Labor will substantially rescind or revise the regulations as adopted in 2016. In light of the uncertainty regarding the fiduciary regulation, while we prudently continue to prepare to comply with the second phase of the Department of Labor’s investment fiduciary regulations and exemptionsquarter-end equity in the form in which they were adopted in April 2016, we are also evaluatingdenominator. After-tax is calculated using the impact to our clients, financial advisors and business should the Departmentstatutory tax rate of Labor decide to delay, rescind or revise the regulations per the developments since President Trump’s inauguration as generally described above.21%.
Critical Accounting Estimates
The accounting and reporting policies that we use affect our Consolidated Financial Statements. Certain of our accounting and reporting policies are critical to an understanding of our consolidated results of operations and financial condition and, in some cases,

AMERIPRISE FINANCIAL, INC. 

the application of these policies can be significantly affected by the estimates, judgments and assumptions made by management during the preparation of our Consolidated Financial Statements. These accounting policies are discussed in detail in “Management’s Discussion and Analysis — Critical Accounting Estimates” in our 20162021 10-K.
Recent Accounting Pronouncements
For information regarding recent accounting pronouncements and their expected impact on our future consolidated results of operations and financial condition, see Note 2 to our Consolidated Financial Statements.
Economic Environment
Global equity market conditions could materially affect our financial condition and results of operations. The following table presents relevant market indices:
Three Months Ended March 31,
20222021Change
S&P 500
Daily average4,4673,86116%
Period end4,5303,97314%
Weighted Equity Index (“WEI”) (1)
Daily average2,9532,66211%
Period end2,9792,7259%
(1) Weighted Equity Index is an Ameriprise calculated proxy for equity market movements calculated using a weighted average of the S&P 500, Russell 2000, Russell Midcap and MSCI EAFE indices based on North America distributed equity assets.
See our segment results of operations discussion below for additional information on how changes in the economic environment have and may continue to impact our results. For further information regarding the impact of the economic environment on our financial condition and results of operations, and potentially material effects, see Part 1 - Item 1A “Risk Factors” of our 2021 10-K.
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AMERIPRISE FINANCIAL, INC. 
Assets Under Management and Administration
Assets under management (“AUM”) include external client assets for which we provide investment management services, such as the assets of the Columbia Threadneedle Investments funds, assets of institutional clients and assets of clients in our advisor platform held in wrap accounts as well as assets managed by sub-advisors selected by us. AUM also includes certain assets on our Consolidated Balance Sheets for which we provide investment management services and recognize management fees in our Asset Management segment, such as the assets of the general account and the variable product funds held in the separate accounts of our life insurance subsidiaries and CIEs. These assets do not include assets under advisement, for which we provide model portfolios but do not have full discretionary investment authority. Corporate & Other AUM primarily includes former bank assets that are managed within our Corporate & Other segment.
Assets under administration (“AUA”) include assets for which we provide administrative services such as client assets invested in other companies’ products that we offer outside of our wrap accounts. These assets include those held in clients’ brokerage accounts. We generally record revenues received from administered assets as distribution fees. We do not exercise management discretion over these assets and do not earn a management fee. These assets are not reported on our Consolidated Balance Sheets. AUA also includes certain assets on our Consolidated Balance Sheets for which we do not provide investment management services and do not recognize management fees, such as investments in non-affiliated funds held in the separate accounts of our life insurance subsidiaries. These assets
AUM and AUA do not include assets under advisement, for which we provide advisory services such as model portfolios but do not have full discretionary investment authority.
The following table presents detail regarding our AUM and AUA:
September 30, ChangeMarch 31,Change
2017 201620222021
(in billions)  (in billions)
Assets Under Management and AdministrationAssets Under Management and AdministrationAssets Under Management and Administration
Advice & Wealth Management AUM$233.9
 $196.2
 $37.7
 19 %Advice & Wealth Management AUM$443.5 $396.5 $47.0 12 %
Asset Management AUM484.0
 467.8
 16.2
 3
Asset Management AUM698.6 564.1 134.5 24 
Corporate & Other AUM0.3
 0.3
 
 
Corporate AUMCorporate AUM0.1 0.1 —  —
Eliminations(25.9) (24.7) (1.2) (5)Eliminations(42.0)(39.6)(2.4)(6)
Total Assets Under Management692.3
 639.6
 52.7
 8
Total Assets Under Management1,100.2 921.1 179.1 19 
Total Assets Under Administration177.2
 156.0
 21.2
 14
Total Assets Under Administration238.9 222.9 16.0 
Total AUM and AUA$869.5
 $795.6
 $73.9
 9 %Total AUM and AUA$1,339.1 $1,144.0 $195.1 17 %
Total AUM increased $52.7$179.1 billion, or 8%19%, to $692.3$1.1 trillion as of March 31, 2022 compared to $921.1 billion as of September 30, 2017 compared to $639.6 billion as of September 30, 2016 primarilyMarch 31, 2021 due to a $37.7$47.0 billion increase in Advice & Wealth Management AUM driven by wrap account net inflows and market appreciation and a $16.2$134.5 billion increase in Asset Management AUM driven by market appreciationthe acquisition of the BMO Global Asset Management (EMEA) business and a positive impact of foreign currency translation,net inflows, partially offset by net outflows.retail fund distributions. See our segment results of operations discussion below for additional information on changes in our AUM.

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AMERIPRISE FINANCIAL, INC. 

Consolidated Results of Operations for the Three Months Ended September 30, 2017March 31, 2022 and 20162021
The following table presents our consolidated results of operations:
Three Months Ended September 30, ChangeThree Months Ended March 31,Change
2017 201620222021
(in millions)  (in millions)
RevenuesRevenuesRevenues
Management and financial advice fees$1,626
 $1,464
 $162
 11 %Management and financial advice fees$2,459 $2,102 $357 17 %
Distribution fees437
 455
 (18) (4)Distribution fees446 458 (12)(3)
Net investment income372
 387
 (15) (4)Net investment income261 377 (116)(31)
Premiums348
 374
 (26) (7)
Premiums, policy and contract chargesPremiums, policy and contract charges368 347 21 
Other revenues210
 330
 (120) (36)Other revenues123 71 52 73 
Total revenues2,993
 3,010
 (17) (1)Total revenues3,657 3,355 302 
Banking and deposit interest expense12
 12
 
 
Banking and deposit interest expense(3)(60)
Total net revenues2,981
 2,998
 (17) (1)Total net revenues3,655 3,350 305 
ExpensesExpensesExpenses
Distribution expenses850
 798
 52
 7
Distribution expenses1,297 1,175 122 10 
Interest credited to fixed accounts176
 161
 15
 9
Interest credited to fixed accounts141 159 (18)(11)
Benefits, claims, losses and settlement expenses474
 855
 (381) (45)Benefits, claims, losses and settlement expenses211 653 (442)(68)
Amortization of deferred acquisition costs48
 163
 (115) (71)Amortization of deferred acquisition costs96 91   NM  
Interest and debt expense52
 52
 
 
Interest and debt expense40 42 (2)(5)
General and administrative expense753
 731
 22
 3
General and administrative expense947 823 124 15 
Total expenses2,353
 2,760
 (407) (15)%Total expenses2,732 2,857 (125)(4)
Pretax income628
 238
 390
 NM
Pretax income (loss)Pretax income (loss)923 493 430 87
Income tax provision125
 23
 102
 NM
Income tax provision162 56 106   NM  
Net income$503
 $215
 $288
 NM
Net income (loss)Net income (loss)$761 $437 $324 74%
NM Not Meaningful.
Overall
Pretax income increased $390$430 million, or 87%, for the three months ended March 31, 2022 compared to $628the prior year period. The following impacts were significant drivers of the period-over-period change in pretax income:
The market impact on non-traditional long duration products (including variable and fixed deferred annuity contracts and UL insurance contracts), net of hedges and related DSIC and DAC amortization, unearned revenue amortization and the reinsurance accrual was a benefit of $134 million for the three months ended September 30, 2017March 31, 2022 compared to $238an expense of $396 million for the prior year period primarily due to theperiod.
A favorable impact of unlocking, market appreciation, wrap account net inflows, a positive impact offrom higher short-term interest rates and an unfavorable $29 million LTC reserve correction in the third quarter of 2016, partially offset by asset management net outflows, loss recognition of $57 million on LTC insurance products in the third quarter of 2017 and higher performance-based compensation.
The following table presents the total pretax impacts on our revenues and expenses attributable to unlockingaverage equity markets for the three months ended September 30:March 31, 2022 compared to the prior year period.
A favorable impact from continued client net inflows from Advice & Wealth Management.
Pretax Increase (Decrease) 2017 2016
  (in millions)
Other revenues $(47) $64
Total revenues (47) 64
     
Distribution expenses 
 (27)
Benefits, claims, losses and settlement expenses (139) 229
Amortization of DAC (12) 81
Total expenses (151) 283
Total (1)
 $104
 $(219)
(1) Includes a $5 million and $16 million net benefit related to the market impact on variable annuity guaranteed benefits for the three months ended September 30, 2017 and 2016, respectively.
A $20 million favorable impact of higher asset management net performance fees.

AMERIPRISE FINANCIAL, INC. 

Net Revenues
Net revenues decreased $17The mean reversion related impact was an expense of $59 million or 1%, to $3.0 billion for the three months ended September 30, 2017March 31, 2022 compared to a benefit of $56 million for the prior year period.
A $45 million unfavorable impact due to more normalized long term care (“LTC”) insurance claims in the current period compared to the priorbenefit of COVID-19 related impacts in the year period primarily due to the impact of unlocking, a $54 million decrease in revenues from the net impact of transitioning advisory accounts to share classes without 12b-1 fees, asset management net outflows, lower earned interest rates on fixed annuities and higher ceded premiums for our auto and home business, partially offset by market appreciation, wrap account net inflows and a positive impact of higher short-term interest rates.ago period.
Net Revenues
Management and financial advice fees increased $162$357 million, or 11%17%, to $1.6 billion for the three months ended September 30, 2017March 31, 2022 compared to $1.5 billion for the prior year period primarily due to an increase in AUM, as well asreflecting higher average equity markets, revenue associated with the acquisition of the BMO Global Asset Management (EMEA) business, continued wrap account net inflows, and a $15$53 million increase in performance fees. Average AUM increased $46.5 billion,
Distribution fees decreased $12 million, or 7%3%, for the three months ended March 31, 2022 compared to the prior year period due to market appreciation and wrap account net inflows,decreased transactional activity, partially offset by asset management net outflows. See our discussion on the changes in AUM in our segment results of operations section.higher average equity markets.
Distribution fees
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AMERIPRISE FINANCIAL, INC. 
Net investment income decreased $18$116 million, or 4%31%, for the three months ended March 31, 2022 compared to $437the prior year period primarily reflecting the following items:
Net realized investment gains of $20 million for the three months ended September 30, 2017March 31, 2022 compared to $455net realized investment gains of $69 million for the prior year period. Net realized investment gains included a $15 million gain on a strategic investment in the prior year period.
The unfavorable impact of lower average invested assets due to the sale of investments to a reinsurer as a result of the fixed deferred and immediate annuity reinsurance transaction.
A $17 million decrease in net investment income of CIEs.
The unfavorable impact of continued low interest rates, including lower investment yields on the investment portfolio supporting the certificate products.
Premiums, policy and contract charges increased $21 million, or 6%, for the three months ended March 31, 2022 compared to the prior year primarily reflecting a favorable change in unearned revenue amortization and the reinsurance accrual offset to the market impact on IUL benefits.
Other revenues increased $52 million, or 73%, for the three months ended March 31, 2022 compared to the prior year period primarily reflecting the yield on deposit receivables arising from reinsurance transactions.
Banking and deposit interest expense decreased $3 million, or 60%, for the three months ended March 31, 2022 compared to the prior year period due to a $64lower average crediting rates on certificates and lower average certificate balances.
Expenses
Distribution expenses increased $122 million, decrease relatedor 10%, for the three months ended March 31, 2022 compared to our transition to share classes without 12b-1 fees in advisory accounts, partially offset by market appreciation andthe prior year period reflecting higher brokerage cash spreadadvisor compensation primarily due to an increase in short-term interest rates.average wrap account balances, partially offset by decreased transactional activity.
PremiumsInterest credited to fixed accounts decreased $26$18 million, or 7%11%, for the three months ended March 31, 2022 compared to $348the prior year period primarily reflecting the following items:
A $29 million decrease in expense from the unhedged nonperformance credit spread risk adjustment on IUL benefits. The favorable impact of the nonperformance credit spread was $28 million for the three months ended September 30, 2017March 31, 2022 compared to $374an unfavorable impact of $1 million for the prior year period primarily reflecting higher ceded premiums for our auto and home business due to new reinsurance arrangements we entered into at the beginning of the year to reduce risk.period.
Other revenues decreased $120A $14 million or 36%, to $210 million for the three months ended September 30, 2017 compared to $330 million for the prior year period due to the impact of unlocking. Other revenues for the third quarter of 2017 included a $47 million unfavorable impactincrease in expense from unlocking compared to a $64 million favorable impact in the prior year period. The primary driver of the unlocking impact to other revenues for the third quarter of 2017 was a negative impact from lower projected gainsmarket impacts on reinsurance contracts resulting from favorable mortality experience. The primary driver of the unlocking impact to other revenues for the prior year period was a positive impact from higher projected gains on reinsurance contracts resulting from unfavorable mortality experience.
Expenses
Total expenses decreased $407 million, or 15%, to $2.4 billion for the three months ended September 30, 2017 compared to $2.8 billion the prior year period primarily due to the impact of unlocking, partially offset by higher distribution expenses.
Distribution expenses increased $52 million, or 7%, to $850 million for the three months ended September 30, 2017 compared to $798 million for the prior year period primarily due to market appreciation, wrap account net inflows and a $27 million benefit in the prior year period related to the write-off of the deferred reinsurance liability in connection with loss recognition testing of LTC insurance products, partially offset by a $43 million decrease from changes related to our transition to share classes without 12b-1 fees in advisory accounts and asset management net outflows.
Interest credited to fixed accounts increased $15 million, or 9%, to $176 million for the three months ended September 30, 2017 compared to $161 million for the prior year period primarily due to the market impact on indexed universal lifeIUL benefits, net of hedges, which was an expense of $8$12 million for the three months ended September 30, 2017March 31, 2022 compared to a benefit of $5$2 million for the prior year period. The increase in expense was primarily due to an increase in the IUL embedded derivative in the current period, which reflected higher option costs due to a higher new money rate.
Benefits, claims, losses and settlement expenses decreased $381$442 million, or 45%68%, to $474 million for the three months ended September 30, 2017March 31, 2022 compared to $855 million for the prior year period primarily reflecting the following items:
The three months ended September 30, 2017 included a $139 million benefit from unlocking compared to a $229 million expense in the prior year period. The unlocking impact for the third quarter of 2017 primarily reflected a benefit from updates to market-related inputs to our living benefit valuation. The unlocking impact for the prior year period primarily reflected low interest rates and an unfavorable impact from persistency on living benefit reserves, partially offset by a benefit from updates to withdrawal utilization and fee assumptions, as well as market-related inputs to our living benefit valuation.
A $29 million increase in LTC reserves from a correction related to our claim utilization assumption in the third quarter of 2016.
A $26$207 million decrease in auto and home expensesexpense primarily reflecting the impact of new reinsurance arrangements, a lower non-catastrophe loss ratio and an $8 million benefit from a correction of a reinsurance recoverable estimate, partially offset by higher gross catastrophe losses and a $10 million positive impact from prior year reserve developmentyear-over-year changes in the third quarter of 2016. Catastrophe losses, netunhedged nonperformance credit spread risk adjustment on variable annuity guaranteed benefits. The unfavorable impact of the impact of reinsurance, were $15nonperformance credit spread was $18 million for the three months ended September 30, 2017, primarily related to Hurricanes Harvey and Irma,March 31, 2022 compared to $29an unfavorable impact of $225 million for the prior year period. InAs the first quarterundiscounted embedded derivative liability on which the nonperformance credit spread is applied increases (decreases), the impact of 2017, we entered into quota sharethe nonperformance credit spread on benefits expenses is favorable (unfavorable). Additionally, as the estimate of the nonperformance credit spread over the LIBOR swap curve tightens or widens, the embedded derivative liability will increase or decrease.
A $339 million decrease in expense from other market impacts on variable annuity guaranteed benefits, net of hedges in place to offset those risks and excessthe related DSIC amortization. This decrease was the result of loss reinsurance arrangements designed to reduce net retained exposure to property losses. The expanded reinsurance program resulted in ceded losses of approximately $38 milliona favorable $1.3 billion change in the third quarter.
A $57 million expense from loss recognitionmarket impact on LTC insurance products inderivatives hedging the third quarter of 2017 primarily due to unfavorable morbidity experience,variable annuity guaranteed benefits, partially offset by premium increases.an unfavorable $950 million change in the market impact on variable annuity guaranteed living benefits reserves. The main market drivers contributing to these changes are summarized below:
Equity market impact on the variable annuity guaranteed living benefits liability net of the impact on the corresponding hedge assets resulted in a benefit for the three months ended March 31, 2022 compared to an expense for the prior year period.
Interest rate impact on the variable annuity guaranteed living benefits liability net of the impact on the corresponding hedge assets resulted in a higher expense for the three months ended March 31, 2022 compared to the prior year period.
Volatility impact on the variable annuity guaranteed living benefits liability net of the impact on the corresponding hedge assets resulted in a lower expense for the three months ended March 31, 2022 compared to the prior year period.

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AMERIPRISE FINANCIAL, INC. 

Other unhedged items, including the difference between the assumed and actual underlying separate account investment performance, fixed income credit exposures, transaction costs and various behavioral items, were a net expense for the three months ended March 31, 2022 compared to a net benefit for the prior year period.
AmortizationThe mean reversion related impact was an expense of DAC decreased $115 million, or 71%, to $48$34 million for the three months ended September 30, 2017March 31, 2022 compared to $163a benefit of $34 million for the prior year period.
A $41 million increase in expense on LTC insurance as claims returned to more normalized levels compared to the prior year period which benefited from COVID-19 related impacts.
Amortization of DAC increased $91 million, for the three months ended March 31, 2022 compared to the prior year period primarily reflecting the following items:
The DAC offset to the market impact on non-traditional long-duration products was an expense of unlocking, which was a benefit of $12$11 million for the three months ended September 30, 2017March 31, 2022 compared to an expensea benefit of $81$46 million for the prior year period.
The mean reversion related impact was an expense of unlocking in the third quarter of 2017 primarily reflected improved persistency and mortality on life insurance contracts and a $10 million benefit from a correction related to a variable annuity model assumption, partially offset by updates to market-related inputs to the living benefit valuation. The impact of unlocking in the prior year period primarily reflected low interest rates that more than offset benefits from persistency on annuity contracts without living benefits. In addition, we wrote-off $58 million of DAC in connection with the loss recognition on LTC insurance products in the prior year period.
General and administrative expense increased $22 million, or 3%, to $753$25 million for the three months ended September 30, 2017March 31, 2022 compared to $731a benefit of $22 million for the prior year period.
A decrease in amortization reflecting lower than expected client exit rates.
General and administrative expense increased $124 million, or 15%, for the three months ended March 31, 2022 compared to the prior year period primarily due toreflecting the operating expenses of the acquired BMO Global Asset Management (EMEA) business, higher performance-based compensation.performance fee related compensation, and $10 million of integration related expenses, partially offset by an unfavorable change in the mark-to-market impact on share-based compensation in the prior year period.
Income Taxes
Our effective tax rate was 19.9%17.6% for the three months ended September 30, 2017March 31, 2022 compared to 9.7%11.3% for the prior year period. Our effective tax rates for the three months ended September 30, 2017 and 2016 are lower than the statutory rate as a result of tax preferred items including the dividends received deduction, low income housing tax credits, stock compensation, and lower taxes on net income from foreign subsidiaries. The increase in thehigher effective tax rate for the three months ended September 30, 2017March 31, 2022 compared to March 31, 2021 is primarily the result of higher pretax income and a decrease in low income housing tax credits, partially offset by an increase in incentive compensation in the current period compared to the prior year period is primarily dueperiod. See Note 15 to higher pretaxour Consolidated Financial Statements for additional discussion on income partially offset by a $25 million benefit for stock compensation due to the adoption of a new accounting standard.taxes.
Results of Operations by Segment for the Three Months Ended September 30, 2017March 31, 2022 and 20162021 
OperatingAdjusted operating earnings is the measure of segment profit or loss management uses to evaluate segment performance. OperatingAdjusted operating earnings should not be viewed as a substitute for GAAP pretax income. We believe the presentation of segment adjusted operating earnings as we measure it for management purposes enhances the understanding of our business by reflecting the underlying performance of our core operations and facilitating a more meaningful trend analysis. See Note 1718 to the Consolidated Financial Statements for further information on the presentation of segment results and our definition of adjusted operating earnings.
Beginning in the first quarter of 2017, the long term care business, which had been reported as part of the Protection segment, is reflected in the Corporate & Other segment. We discontinued underwriting long term care insurance in 2002 and the transfer of this closed block to the Corporate & Other segment allows investors to better understand the performance of our on-going Protection businesses. Prior periods presented have been restated to reflect the change.
The following table presents summary financial information by segment:
Three Months Ended March 31,
20222021
(in millions)
Advice & Wealth Management  
Net revenues$2,042 $1,879 
Expenses1,602 1,490 
Adjusted operating earnings$440 $389 
Asset Management
Net revenues$1,017 $828 
Expenses732 600 
Adjusted operating earnings$285 $228 
Retirement & Protection Solutions
Net revenues$772 $787 
Expenses581 604 
Adjusted operating earnings$191 $183 
Corporate & Other
Net revenues$116 $139 
Expenses192 160 
Adjusted operating loss$(76)$(21)
57
 Three Months Ended September 30,
2017 2016
(in millions)
Advice & Wealth Management 
  
Net revenues$1,383
 $1,272
Expenses1,085
 1,041
Operating earnings$298
 $231
Asset Management 
  
Net revenues$778
 $740
Expenses578
 585
Operating earnings$200
 $155
Annuities 
  
Net revenues$626
 $631
Expenses345
 699
Operating earnings (loss)$281
 $(68)
Protection 
  
Net revenues$478
 $613
Expenses423
 529
Operating earnings$55
 $84
Corporate & Other 
  
Net revenues$50
 $51
Expenses186
 196
Operating loss$(136) $(145)



AMERIPRISE FINANCIAL, INC. 

The following table presents the segment pretax operating impacts on our revenues and expenses attributable to unlocking:
Segment Pretax Operating Increase (Decrease) Three Months Ended September 30,
2017 2016
Annuities Protection CorporateAnnuities Protection Corporate
  (in millions)
Other revenues $
 $(47) $
 $
 $64
 $
Total revenues 
 (47) 
 
 64
 
             
Distribution expenses 
 
 
 
 
 (27)
Benefits, claims, losses and settlement expenses (119) (14) 1
 197
 40
 6
Amortization of DAC (1) (13) 
 18
 7
 58
Total expenses (120) (27) 1
 215
 47
 37
Total $120
 $(20) $(1) $(215) $17
 $(37)
Advice & Wealth Management
On July 1, 2017, we closed our acquisition of Investment Professionals, Inc. (“IPI”), an independent broker dealer based in San Antonio, Texas specializing in the on-site delivery of investment programs for financial institutions, including banks and credit unions. The acquisition added 215 financial advisors and $8 billion in client assets.
The following table presents the changes in wrap account assets and average balances for the three months ended September 30:March 31:
20222021
(in billions)
Beginning balance$464.7 $380.0 
Net flows8.7 10.4 
Market appreciation (depreciation) and other(26.4)9.4 
Ending balance$447.0 $399.8 
Advisory wrap account assets ending balance (1)
$442.1 $395.3 
Average advisory wrap account assets (2)
$445.7 $379.3 
 2017 2016
(in billions)
Beginning balance$222.3
 $189.7
Inflows from acquisition (1)
0.7
 
Other net flows5.4
 2.8
Net flows6.1
 2.8
Market appreciation (depreciation) and other6.8
 5.0
Ending balance$235.2
 $197.5
    
Advisory wrap account assets ending balance (2)
$233.0
 $195.4
Average advisory wrap account assets (3)
$227.0
 $192.7
(1) Advisory wrap account assets represent those assets for which clients receive advisory services and are the primary driver of revenue earned on wrap accounts. Clients may hold non-advisory investments in their wrap accounts that do not incur an advisory fee.
(1)
(2) Average ending balances are calculated using an average of the prior period’s ending balance and all months in the current period excluding the most recent month for the three months ended March 31, 2022 and 2021.
Inflows associated with acquisition that closed during the period.
(2)
Advisory wrap account assets represent those assets for which clients receive advisory services and are the primary driver of revenue earned on wrap accounts. Clients may hold non-advisory investments in their wrap accounts that do not incur an advisory fee.
(3)
Average ending balances are calculated using an average of the prior period’s ending balance and all months in the current period.
Wrap account assets increased $12.9decreased $17.7 billion, or 6%4%, during the three months ended September 30, 2017March 31, 2022 due to market depreciation of $26.4 billion, partially offset by net inflows of $6.1 billion, including $0.7 billion from our acquisition of IPI, and market appreciation and other of $6.8$8.7 billion. Average advisory wrap account assets increased $34.3$66.4 billion, or 18%, compared to the prior year period primarily reflecting net inflows, andalong with market appreciation.
The following table presents the changes in wrap account assets for the twelve months ended September 30:
 2017 2016
(in billions)
Beginning balance$197.5
 $173.8
Inflows from acquisition (1)
0.7
 
Other net flows17.1
 9.0
Net flows17.8
 9.0
Market appreciation (depreciation) and other19.9
 14.7
Ending balance$235.2
 $197.5
(1) Inflows associated with acquisition that closed during the period.
Wrap account assets increased $37.7 billion, or 19%, from the prior year period primarily due to net inflows and market appreciation.

AMERIPRISE FINANCIAL, INC. 

The following table presents the results of operations of our Advice & Wealth Management segment on an adjusted operating basis:
Three Months Ended September 30, ChangeThree Months Ended March 31,Change
2017 201620222021
(in millions)  (in millions)
RevenuesRevenuesRevenues
Management and financial advice fees$799
 $689
 $110
 16 %Management and financial advice fees$1,380 $1,205 $175 15 %
Distribution fees515
 531
 (16) (3)Distribution fees529 559 (30)(5)
Net investment income64
 47
 17
 36
Net investment income78 64 14 22 
Other revenues17
 17
 
 
Other revenues57 56 
Total revenues1,395
 1,284
 111
 9
Total revenues2,044 1,884 160 
Banking and deposit interest expense12
 12
 
 
Banking and deposit interest expense(3)(60)
Total net revenues1,383
 1,272
 111
 9
Total net revenues2,042 1,879 163 
ExpensesExpensesExpenses
Distribution expenses813
 781
 32
 4
Distribution expenses1,232 1,135 97 
Interest and debt expense2
 2
 
 
Interest and debt expense(1)(33)
General and administrative expense270
 258
 12
 5
General and administrative expense368 352 16 
Total expenses1,085
 1,041
 44
 4
Total expenses1,602 1,490 112 
Operating earnings$298
 $231
 $67
 29 %
Adjusted operating earningsAdjusted operating earnings$440 $389 $51 13 %
Our Advice & Wealth Management segment pretax adjusted operating earnings, which exclude net realized investment gains or losses, increased $67$51 million, or 29%13%, to $298 million for the three months ended September 30, 2017March 31, 2022 compared to $231 million for the prior year period primarily reflecting higher average wrap account balances due to net inflows, market appreciation, and higher earnings on brokerage cash due to higher short-term interest rates, partially offset by expenses associated with recruiting experienced advisors and higher performance-based compensation.increased bank profitability. Pretax adjusted operating margin was 21.5% for the three months ended September 30, 2017March 31, 2022 compared to 18.2%20.7% for the prior year period. Cash balances increased $5.3 billion to $45.7 billion contrary to normal seasonal patterns in the first quarter.
Ameriprise Bank, FSB is continuing its deposit growth trend, with cash sweep balances increasing $5.2 billion from the prior year period to $13.2 billion and brokerage client pledged asset lines of credit increasing to $520 million as of March 31, 2022.
Net Revenues
Net revenues exclude net realized investment gains or losses. Net revenuesManagement and financial advice fees increased $111$175 million, or 9%15%, to $1.4 billion for the three months ended September 30, 2017March 31, 2022 compared to $1.3 billion for the prior year period primarily due to growth in wrap account assets, higher earnings on brokerage cash and a $12 million increase in revenues from IPI, partially offset by lower 12b-1 fee revenue. During the first quarter, we completed our transition to share classes without 12b-1 fees in advisory accounts, which reduced revenue by a net $54 million in the third quarter compared to the prior year period. Operating net revenue per advisor increased to $140,000 for the three months ended September 30, 2017, up 7%, from $131,000 for the prior year period. Total advisors were 9,890 at September 30, 2017 compared to 9,747 at September 30, 2016.
Management and financial fees increased $110 million, or 16%, to $799 million for the three months ended September 30, 2017 compared to $689 million for the prior year period primarily due to growth in average wrap account assets. Average advisory wrap account assets increased $34.3$66.4 billion, or 18%, compared to the prior year period reflecting net inflows and market appreciation.
Distribution fees decreased $16$30 million, or 3%5%, to $515 million for the three months ended September 30, 2017March 31, 2022 compared to $531 million for the prior year period primarily due to a $64 million decrease related to our transition to share classes without 12b-1 fees in advisory accounts,reflecting decreased transactional activity, partially offset by higher brokerage cash spread due to an increase in short-term interest rates and revenues from IPI.average equity markets.
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AMERIPRISE FINANCIAL, INC. 
Net investment income, which excludes net realized investment gains or losses, increased $17$14 million, or 36%22%, to $64 million for the three months ended September 30, 2017March 31, 2022 compared to $47 million for the prior year period primarily due to higher average invested assets due to increased bank deposits, partially offset by lower certificate balances and the unfavorable impact of continued low interest rates, including lower investment yields on the investment portfolio supporting the certificate products.
Banking and an increase in invested balances driven by certificate net inflows.
Expenses
Total expenses increased $44deposit interest expense decreased $3 million, or 4%60%, to $1.1 billion for the three months ended September 30, 2017March 31, 2022 compared to $1.0 billion for the prior year period primarily due to increases in distribution expenseslower average crediting rates on certificates and general and administrative expense.lower average certificate balances.
Expenses
Distribution expenses increased $32$97 million, or 4%9%, to $813 million for the three months ended September 30, 2017March 31, 2022 compared to $781 million for the prior year period reflecting higher asset-based advisor compensation due to growth infrom higher wrap account assets, the IPI acquisition and investments in recruiting experienced advisors, partially offset by a $43 million decrease related to our transition to share classes without 12b-1 fees in advisory accounts.decreased transactional activity.
General and administrative expense increased $12$16 million, or 5%, to $270 million for the three months ended September 30, 2017March 31, 2022 compared to $258 million for the prior year period due toprimarily reflecting higher performance-based compensation, as well as higher expensesvolume related to the IPI acquisition.

expenses.
AMERIPRISE FINANCIAL, INC. 

Asset ManagementIncome Taxes
Voluntary fee waivers we provided to the Columbia Money Market Funds were not materialOur effective tax rate was 17.6% for the three months and nineended March 31, 2022 compared to 11.3% for the prior year period. The higher effective tax rate for the three months ended September 30, 2017March 31, 2022 compared to March 31, 2021 is primarily the result of higher pretax income and 2016.a decrease in low income housing tax credits, partially offset by an increase in incentive compensation in the current period compared to the prior period. See Note 15 to our Consolidated Financial Statements for additional discussion on income taxes.
The following tables present
Results of Operations by Segment for the mutual fundThree Months Ended March 31, 2022 and 2021 
Adjusted operating earnings is the measure of segment profit or loss management uses to evaluate segment performance. Adjusted operating earnings should not be viewed as a substitute for GAAP pretax income. We believe the presentation of segment adjusted operating earnings as we measure it for management purposes enhances the understanding of our business by reflecting the underlying performance of our retail Columbiacore operations and Threadneedle funds as of September 30:
Columbia
Mutual Fund Rankings in top 2 Lipper Quartiles
2017 2016
Domestic EquityEqual weighted1 year72% 62%
  3 year75% 68%
  5 year78% 67%
 Asset weighted1 year68% 74%
  3 year82% 78%
  5 year82% 84%
International EquityEqual weighted1 year75% 55%
  3 year55% 60%
  5 year75% 80%
 Asset weighted1 year56% 73%
  3 year44% 44%
  5 year55% 52%
Taxable Fixed IncomeEqual weighted1 year72% 78%
  3 year78% 71%
  5 year76% 76%
 Asset weighted1 year74% 82%
  3 year83% 76%
  5 year87% 85%
Tax Exempt Fixed IncomeEqual weighted1 year74% 84%
  3 year89% 89%
  5 year100% 94%
 Asset weighted1 year60% 92%
  3 year98% 81%
  5 year100% 88%
Asset Allocation FundsEqual weighted1 year54% 69%
  3 year90% 100%
  5 year78% 75%
 Asset weighted1 year47% 87%
  3 year94% 100%
  5 year93% 81%
Number of funds with 4 or 5 Morningstar star ratings Overall51
 54
  3 year56
 54
  5 year49
 52
Percent of funds with 4 or 5 Morningstar star ratings Overall50% 56%
  3 year55% 56%
  5 year49% 55%
Percent of assets with 4 or 5 Morningstar star ratings Overall58% 68%
  3 year66% 75%
  5 year57% 67%
Mutual fund performance rankings are basedfacilitating a more meaningful trend analysis. See Note 18 to the Consolidated Financial Statements for further information on the performancepresentation of Class Z fund shares for Columbia branded mutual funds. Only funds with Class Z shares are included.segment results and our definition of adjusted operating earnings.
 The following table presents summary financial information by segment:
Three Months Ended March 31,
20222021
(in millions)
Advice & Wealth Management  
Net revenues$2,042 $1,879 
Expenses1,602 1,490 
Adjusted operating earnings$440 $389 
Asset Management
Net revenues$1,017 $828 
Expenses732 600 
Adjusted operating earnings$285 $228 
Retirement & Protection Solutions
Net revenues$772 $787 
Expenses581 604 
Adjusted operating earnings$191 $183 
Corporate & Other
Net revenues$116 $139 
Expenses192 160 
Adjusted operating loss$(76)$(21)

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AMERIPRISE FINANCIAL, INC. 

Equal Weighted Rankings in Top 2 Quartiles: Counts the number of funds with above median ranking divided by the total number of funds. Asset size is not a factor.
Asset Weighted Rankings in Top 2 Quartiles: Sums the total assets of the funds with above median ranking divided by total assets of all funds. Funds with more assets will receive a greater share of the total percentage above or below median.
Threadneedle
Retail Fund Rankings in Top 2 Morningstar Quartiles or Above Index Benchmark
2017 2016
EquityEqual weighted1 year48% 52%
  3 year72% 72%
  5 year72% 71%
 Asset weighted1 year50% 62%
  3 year79% 69%
  5 year59% 63%
Fixed IncomeEqual weighted1 year76% 58%
  3 year79% 50%
  5 year76% 64%
 Asset weighted1 year85% 57%
  3 year90% 69%
  5 year92% 73%
Allocation (Managed) FundsEqual weighted1 year78% 88%
  3 year89% 88%
  5 year86% 83%
 Asset weighted1 year61% 80%
  3 year94% 97%
  5 year93% 92%
The performance of each fund is measured on a consistent basis against the most appropriate benchmark — a peer group of similar funds or an index. 
Equal weighted: Counts the number of funds with above median ranking (if measured against peer group) or above index performance (if measured against an index) divided by the total number of funds. Asset size is not a factor. 
Asset weighted: Sums the assets of the funds with above median ranking (if measured against peer group) or above index performance (if measured against an index) divided by the total sum of assets in the funds. Funds with more assets will receive a greater share of the total percentage above or below median or index. 
Aggregated Allocation (Managed) Funds include funds that invest in other funds of the Threadneedle range including those funds that invest in both equity and fixed income. 
Aggregated Threadneedle data includes funds on the Threadneedle platform sub-advised by ColumbiaAdvice & Wealth Management as well as advisors not affiliated with Ameriprise Financial, Inc.
The following table presents global managed assets by type:
 September 30, Change 
Average(1)
 Change
Three Months Ended September 30,
2017 20162017 2016
(in billions)
Equity$265.8
 $245.9
 $19.9
 8 % $261.7
 $244.6
 $17.1
 7 %
Fixed income178.0
 183.3
 (5.3) (3) 177.3
 182.4
 (5.1) (3)
Money market5.9
 6.6
 (0.7) (11) 5.8
 6.9
 (1.1) (16)
Alternative6.5
 7.3
 (0.8) (11) 6.5
 7.2
 (0.7) (10)
Hybrid and other27.8
 24.7
 3.1
 13
 27.2
 24.7
 2.5
 10
Total managed assets$484.0
 $467.8
 $16.2
 3 % $478.5
 $465.8
 $12.7
 3 %
(1) Average ending balances are calculated using an average of the prior period’s ending balance and all months in the current period.

AMERIPRISE FINANCIAL, INC. 

The following table presents the changes in global managed assets:
 Three Months Ended September 30,
2017 2016
(in billions)
Global Retail Funds
Beginning assets$272.9

$259.2
Inflows10.9

12.3
Acquisition related inflows (1)

 1.0
Outflows(12.3)
(14.2)
Net VP/VIT fund flows(0.8)
(0.6)
Net new flows(2.2) (1.5)
Reinvested dividends0.5

0.6
Net flows(1.7) (0.9)
Distributions(0.7)
(0.9)
Market appreciation (depreciation) and other9.2

9.5
Foreign currency translation (2)
1.1

(0.9)
Total ending assets280.8
 266.0
 
Global Institutional
Beginning assets199.7

200.4
Inflows5.8

5.1
Outflows(8.8)
(8.5)
Net flows(3.0) (3.4)
Market appreciation (depreciation) and other (3)
4.1

7.1
Foreign currency translation (2)
2.4

(2.3)
Total ending assets203.2
 201.8
Total managed assets$484.0
 $467.8
Total net flows$(4.7) $(4.3)
 
Former Parent Company Related (4)(5)
Retail net new flows$(0.6)
$
Institutional net new flows(2.4)
(1.5)
Total net new flows$(3.0) $(1.5)
(1) Inflows associated with acquisitions that closed during the period.
(2) Amounts represent local currency to US dollar translation for reporting purposes.
(3) Includes $0.3 billion and $0.8 billion for the total change in Affiliated General Account Assets during the three months ended September 30, 2017 and 2016, respectively.
(4) Former parent company relatedwrap account assets and net new flows are included in the rollforwards above.
(5) Prior period former parent company related net new flows were restated to include additional Former Parent Company net new flows that were previously not considered. The change was a decrease of $65 millionaverage balances for the three months ended September 30, 2016.March 31:
In a referendum
20222021
(in billions)
Beginning balance$464.7 $380.0 
Net flows8.7 10.4 
Market appreciation (depreciation) and other(26.4)9.4 
Ending balance$447.0 $399.8 
Advisory wrap account assets ending balance (1)
$442.1 $395.3 
Average advisory wrap account assets (2)
$445.7 $379.3 
(1) Advisory wrap account assets represent those assets for which clients receive advisory services and are the primary driver of revenue earned on wrap accounts. Clients may hold non-advisory investments in June 2016, the United Kingdom (UK) voted to leave the European Union (EU), which caused volatility in capital and currency markets. Further, in March 2017 the UK invoked article 50their wrap accounts that do not incur an advisory fee.
(2) Average ending balances are calculated using an average of the Treaty of Lisbonprior period’s ending balance and all months in serving its relevant notice to leave the European Union oncurrent period excluding the most recent month for the three months ended March 30, 2019. The full impact of the British exit from the EU (commonly known as “Brexit”) remains uncertain. This uncertainty, which is expected to last for a lengthy period of time, has had31, 2022 and may have a negative impact on our UK and European net flows and foreign currency translation resulting from the weakening of the British Pound.2021.
Total segment AUM increased $11.4Wrap account assets decreased $17.7 billion, or 2%4%, during the three months ended September 30, 2017 driven byMarch 31, 2022 due to market appreciation and a positive impactdepreciation of foreign currency translation,$26.4 billion, partially offset by net outflows. Total segment AUM net outflows were $4.7inflows of $8.7 billion. Average advisory wrap account assets increased $66.4 billion, foror 18%, compared to the three months ended September 30, 2017, which included $3.0 billion of outflows of former parent-related assets. Management expects, consistent with prior patterns of outflows, that outflows ofyear period primarily low margin assets directly or indirectly affiliated with Threadneedle and Columbia former parent companies will continue for the foreseeable future. The overall impact to segment results is difficult to quantify due to uncertain timing, volume and mix of the outflows. Former parent company related AUM was approximately $73 billion as of September 30, 2017.

AMERIPRISE FINANCIAL, INC. 

Global retail net outflows of $1.7 billion included $0.8 billion of outflows of our variable product funds underlying insurance and annuity separate accounts and $0.6 billion of outflows from former parent-related assets. In U.S. retail, net outflows excluding the former parent-related assets were $1.5 billion, reflecting ongoing industry pressure on active strategies. In Europe, Middle East and Africa (“EMEA”), net inflows, were $0.4 billion.
Global institutional net outflows of $3.0 billion included $2.4 billion of outflows from former parent-related assets. Institutional outflows from former parent-related assets included Zurich outflows of $0.9 billion and U.S. Trust outflows of $1.5 billion.
On September 20, 2017, we announced our acquisition of Lionstone Investments, a leading national real estate investment firm, specializing in investment strategies based upon proprietary analytics. The acquisition closed on November 1, 2017 and adds approximately $6 billion in assets under management.along with market appreciation.
The following table presents the results of operations of our AssetAdvice & Wealth Management segment on an adjusted operating basis:
Three Months Ended September 30, ChangeThree Months Ended March 31,Change
2017 201620222021
(in millions)  (in millions)
RevenuesRevenuesRevenues
Management and financial advice fees$657
 $612
 $45
 7 %Management and financial advice fees$1,380 $1,205 $175 15 %
Distribution fees111
 125
 (14) (11)Distribution fees529 559 (30)(5)
Net investment income6
 1
 5
 NM
Net investment income78 64 14 22 
Other revenues4
 2
 2
 NM
Other revenues57 56 
Total revenues778
 740
 38
 5
Total revenues2,044 1,884 160 
Banking and deposit interest expense
 
 
 
Banking and deposit interest expense(3)(60)
Total net revenues778
 740
 38
 5
Total net revenues2,042 1,879 163 
ExpensesExpensesExpenses
Distribution expenses246
 261
 (15) (6)Distribution expenses1,232 1,135 97 
Amortization of deferred acquisition costs4
 4
 
 
Interest and debt expense5
 5
 
 
Interest and debt expense(1)(33)
General and administrative expense323
 315
 8
 3
General and administrative expense368 352 16 
Total expenses578
 585
 (7) (1)Total expenses1,602 1,490 112 
Operating earnings$200
 $155
 $45
 29 %
NM Not Meaningful.
Adjusted operating earningsAdjusted operating earnings$440 $389 $51 13 %
Our AssetAdvice & Wealth Management segment pretax adjusted operating earnings, which exclude net realized investment gains or losses, increased $45$51 million, or 29%13%, to $200 million for the three months ended September 30, 2017March 31, 2022 compared to $155the prior year period primarily reflecting higher average wrap account balances due to net inflows, market appreciation, and increased bank profitability. Pretax adjusted operating margin was 21.5% for the three months ended March 31, 2022 compared to 20.7% for the prior year period. Cash balances increased $5.3 billion to $45.7 billion contrary to normal seasonal patterns in the first quarter.
Ameriprise Bank, FSB is continuing its deposit growth trend, with cash sweep balances increasing $5.2 billion from the prior year period to $13.2 billion and brokerage client pledged asset lines of credit increasing to $520 million as of March 31, 2022.
Net Revenues
Management and financial advice fees increased $175 million, or 15%, for the three months ended March 31, 2022 compared to the prior year period primarily due to market appreciation, a $7 million increasegrowth in performance fees (net of related compensation), an $8 million increase in incentive fees from CLO unwinds and continued expense management, partially offset by net outflows.
Net Revenues
Net revenues, which exclude net realized investment gainsaverage wrap account assets. Average advisory wrap account assets increased $66.4 billion, or losses, increased $38 million, or 5%18%, to $778 million for the three months ended September 30, 2017 compared to $740 million for the prior year period reflecting market appreciation, higher performance fees and an increase in incentive fees from CLO unwinds, partially offset by net outflows and a $13 million decrease related to the transition of advisory accounts to share classes without 12b-1 fees. The Asset Management segment revenue related to 12b-1 fees is eliminated on a consolidated basis.
Management and financial advice fees increased $45 million, or 7%, to $657 million for the three months ended September 30, 2017 compared to $612 million for the prior year period driven by market appreciation, a $15 million increase in performance fees and an $8 million increase in incentive fees from CLO unwinds, partially offset by cumulative net outflows from former parent-related assets and higher fee yielding retail funds. Our average weighted equity index, which is a proxy for equity movements on AUM, increased 14% for the three months ended September 30, 2017 compared to the prior year period.
Distribution fees decreased $14 million, or 11%, to $111 million for the three months ended September 30, 2017 compared to $125 million for the prior year period due to cumulative net outflows and a $13 million decrease related to the transition of advisory accounts to share classes without 12b-1 fees, partially offset by market appreciation.
Expenses
Total expenses decreased $7 million, or 1%, to $578 million for the three months ended September 30, 2017 compared to $585 million for the prior year period due to lower distribution expenses, partially offset by higher general and administrative expense.

AMERIPRISE FINANCIAL, INC. 

Distribution expenses decreased $15 million, or 6%, to $246 million for the three months ended September 30, 2017 compared to $261 million for the prior year period due to lower compensation driven by cumulative net outflows and a decrease related to the transition of advisory accounts to share classes without 12b-1 fees, partially offset by market appreciation. The Asset Management segment expense related to 12b-1 fees is eliminated on a consolidated basis.
General and administrative expense increased $8 million, or 3%, to $323 million for the three months ended September 30, 2017 compared to $315 million for the prior year period due to an $8 million increase in compensation related to higher performance fees.
Annuities
The following table presents the results of operations of our Annuities segment on an operating basis:
 Three Months Ended September 30, Change
2017 2016
(in millions)  
Revenues
Management and financial advice fees$196
 $188
 $8
 4 %
Distribution fees91
 89
 2
 2
Net investment income173
 192
 (19) (10)
Premiums24
 29
 (5) (17)
Other revenues142
 133
 9
 7
Total revenues626
 631
 (5) (1)
Banking and deposit interest expense
 
 
 
Total net revenues626
 631
 (5) (1)
Expenses
Distribution expenses105
 106
 (1) (1)
Interest credited to fixed accounts121
 122
 (1) (1)
Benefits, claims, losses and settlement expenses19
 346
 (327) (95)
Amortization of deferred acquisition costs40
 66
 (26) (39)
Interest and debt expense9
 7
 2
 29
General and administrative expense51
 52
 (1) (2)
Total expenses345
 699
 (354) (51)%
Operating earnings (loss)$281
 $(68) $349
 NM
NM  Not Meaningful.
Our Annuities segment pretax operating income, which excludes net realized investment gains or losses (net of the related DSIC and DAC amortization) and the market impact on variable annuity guaranteed benefits (net of hedges and the related DSIC and DAC amortization), increased $349 million to $281 million for the three months ended September 30, 2017 compared to a loss of $68 million for the prior year period primarily due to the impact of unlocking.
RiverSource variable annuity account balances increased 4% to $78.7 billion at September 30, 2017 compared to the prior year period due to equityreflecting net inflows and market appreciation, partially offset by net outflows of $3.7 billion. Lapse rates were higher inappreciation.
Distribution fees decreased $30 million, or 5%, for the quarter, reflecting increased client asset transfers from variable annuities to fee-based investment advisory accounts.
RiverSource fixed deferred annuity account balances declined 7% to $9.5 billion at September 30, 2017three months ended March 31, 2022 compared to the prior year period as older policies continue to lapse and new sales are limited due to low interest rates. Given the current interest rate environment, our current fixed deferred annuity book is expected to gradually run off and earnings on our fixed deferred annuity business will trend down.
Net Revenues
Net revenues, which exclude net realized investment gains or losses,reflecting decreased $5 million, or 1%, to $626 million for the three months ended September 30, 2017 compared to $631 million for the prior year period due to lower investment yields and net outflows in fixed and variable annuities,transactional activity, partially offset by equity market appreciation and an increase in variable annuity rider fees.
Management and financial advice fees increased $8 million, or 4%, to $196 million for the three months ended September 30, 2017 compared to $188 million for the prior year period due to higher fees on variable annuities driven by higher average separate account balances. Average variable annuity account balances increased $2.1 billion, or 3%, from the prior year period due to market appreciation, partially offset by net outflows.equity markets.

58


AMERIPRISE FINANCIAL, INC. 

Net investment income, which excludes net realized investment gains or losses, decreased $19increased $14 million, or 10%22%, to $173 million for the three months ended September 30, 2017 compared to $192 million for the prior year period reflecting a decrease of approximately $11 million from lower earned interest rates and approximately $8 million from lower invested assets due to fixed annuity net outflows.
Other revenues increased $9 million, or 7%, to $142 million for the three months ended September 30, 2017 compared to $133 million for the prior year period due to higher fees from variable annuity guarantee sales in the prior year where the fees start on the first anniversary date and higher average fee rates.
Expenses
Total expenses, which exclude the market impact on variable annuity guaranteed benefits (net of hedges and the related DSIC and DAC amortization) and the DAC and DSIC offset to net realized investment gains or losses, decreased $354 million, or 51%, to $345 million for the three months ended September 30, 2017 compared to $699 million for the prior year period primarily due to the impact of unlocking.
Benefits, claims, losses and settlement expenses, which exclude the market impact on variable annuity guaranteed benefits (net of hedges and the related DSIC amortization) and the DSIC offset to net realized investment gains or losses, decreased $327 million, or 95%, to $19 million for the three months ended September 30, 2017 compared to $346 million for the prior year period primarily due to the impact of unlocking, which was a $119 million benefit for the third quarter of 2017 compared to a $197 million expense for the prior year period. The unlocking impact for the third quarter of 2017 primarily reflected a benefit from updates to market-related inputs to our living benefit valuation. The unlocking impact for the prior year period primarily reflected low interest rates and an unfavorable impact from persistency on living benefit reserves, partially offset by a benefit from updates to withdrawal utilization and fee assumptions, as well as market-related inputs related to our living benefit valuation.
Amortization of DAC decreased $26 million, or 39%, to $40 million for the three months ended September 30, 2017 compared to $66 million for the prior year period primarily reflecting the impact of unlocking, which was a benefit of $1 million for the three months ended September 30, 2017 compared to an expense of $18 million for the prior year period. The impact of unlocking in the third quarter of 2017 primarily reflected a $10 million benefit from a correction related to a variable annuity model assumption and slightly higher interest rates, largely offset by updates to market-related inputs to the living benefit valuation. The impact of unlocking in the prior year period primarily reflected low interest rates that more than offset benefits from persistency on annuity contracts without living benefits. Our long-term interest rate assumption remained unchanged, but we extended the period it would take for rates to reach our long term level from 3.5 years to 5.5 years.
Protection
The following table presents the results of operations of our Protection segment on an operating basis:
 Three Months Ended September 30, Change
2017 2016
(in millions)  
Revenues
Management and financial advice fees$12
 $13
 $(1) (8)%
Distribution fees24
 24
 
 
Net investment income86
 85
 1
 1
Premiums305
 323
 (18) (6)
Other revenues51
 168
 (117) (70)
Total revenues478
 613
 (135) (22)
Banking and deposit interest expense
 
 
 
Total net revenues478
 613
 (135) (22)
Expenses
Distribution expenses17
 17
 
 
Interest credited to fixed accounts47
 44
 3
 7
Benefits, claims, losses and settlement expenses278
 363
 (85) (23)
Amortization of deferred acquisition costs13
 38
 (25) (66)
Interest and debt expense7
 6
 1
 17
General and administrative expense61
 61
 
 
Total expenses423
 529
 (106) (20)
Operating earnings$55
 $84
 $(29) (35)%

AMERIPRISE FINANCIAL, INC. 

Our Protection segment pretax operating earnings, which excludes net realized investment gains or losses (net of the related DAC amortization, unearned revenue amortization and the reinsurance accrual) and the market impact on indexed universal life benefits (net of hedges and the related DAC amortization, unearned revenue amortization and the reinsurance accrual), decreased $29 million, or 35%, to $55 million for the three months ended September 30, 2017 compared to $84 million for the prior year period primarily due to the impact of unlocking, partially offset by improved auto and home results.
Net Revenues
Net revenues, which exclude net realized investment gains or losses (net of unearned revenue amortization and the reinsurance accrual) and the unearned revenue amortization and the reinsurance accrual offset to the market impact on indexed universal life benefits, decreased $135 million, or 22%, to $478 million for the three months ended September 30, 2017 compared to $613 million for the prior year period primarily due to the impact of unlocking and a decrease in premiums.
Premiums decreased $18 million, or 6%, to $305 million for the three months ended September 30, 2017 compared to $323 million for the prior year period primarily reflecting higher ceded premiums for our auto and home business due to new reinsurance arrangements. In the first quarter of 2017, we entered into reinsurance arrangements designed to reduce risk, particularly in several wind/hail states where losses have been elevated.
Other revenues decreased $117 million, or 70%, to $51 million for the three months ended September 30, 2017 compared to $168 million for the prior year period due to the impact of unlocking. Other revenues for the third quarter of 2017 included a $47 million unfavorable impact from unlocking compared to a $64 million favorable impact in the prior year period. The primary driver of the unlocking impact to other revenues for the third quarter of 2017 was a negative impact from lower projected gains on reinsurance contracts resulting from favorable mortality experience. The primary driver of the unlocking impact to other revenues for the prior year period was a positive impact from higher projected gains on reinsurance contracts resulting from unfavorable mortality experience.
Expenses
Total expenses, which exclude the market impact on indexed universal life benefits (net of hedges and the related DAC amortization) and the DAC offset to net realized investment gains or losses, decreased $106 million, or 20%, to $423 million for the three months ended September 30, 2017 compared to $529 million for the prior year period primarily due to the impact of unlocking and a decrease in auto and home expenses.
Benefits, claims, losses and settlement expenses decreased $85 million, or 23%, to $278 million for the three months ended September 30, 2017 compared to $363 million for the prior year period due to the impact of unlocking and a $26 million decrease in auto and home expenses reflecting the impact of new reinsurance arrangements, a lower non-catastrophe loss ratio and an $8 million benefit from a correction of a reinsurance recoverable estimate, partially offset by higher gross catastrophe losses and a $10 million positive impact from prior year reserve development in the third quarter of 2016. The unlocking impact for the third quarter of 2017 was a $14 million benefit and primarily reflected favorable mortality experience on life insurance contracts. The unlocking impact for the third quarter of 2016 was a $40 million expense and primarily reflected low interest rates and unfavorable mortality experience. Catastrophe losses, net of the impact of reinsurance, were $15 million for the three months ended September 30, 2017, primarily related to Hurricanes Harvey and Irma, compared to $29 million for the prior year period. In the first quarter of 2017, we entered into quota share and excess of loss reinsurance arrangements designed to reduce net retained exposure to property losses. The expanded reinsurance program resulted in ceded losses of approximately $38 million in the third quarter.
Amortization of DAC decreased $25 million, or 66%, to $13 million for the three months ended September 30, 2017 compared to $38 million for the prior year period primarily reflecting the impact of unlocking, which was a benefit of $13 million for the three months ended September 30, 2017 compared to an expense of $7 million for the prior year period. The impact of unlocking in the third quarter of 2017 primarily reflected improved persistency and mortality on life insurance contracts.

AMERIPRISE FINANCIAL, INC. 

Corporate & Other
The following table presents the results of operations of our Corporate & Other segment on an operating basis:
 Three Months Ended September 30, Change
2017 2016
(in millions)  
Revenues
Net investment income$22
 $21
 $1
 5 %
Premiums28
 27
 1
 4
Other revenues1
 4
 (3) (75)
Total revenues51
 52
 (1) (2)
Banking and deposit interest expense1
 1
 
 
Total net revenues50
 51
 (1) (2)
Expenses
Distribution expenses(2) (31) 29
 94
Benefits, claims, losses and settlement expenses119
 101
 18
 18
Amortization of deferred acquisition costs
 59
 (59) NM
Interest and debt expense6
 7
 (1) (14)
General and administrative expense63
 60
 3
 5
Total expenses186
 196
 (10) (5)
Operating loss$(136) $(145) $9
 6 %
NM  Not Meaningful.
Our Corporate & Other segment pretax operating loss excludes net realized investment gains or losses, the market impact of hedges to offset interest rate changes on unrealized gains or losses for certain investments, integration and restructuring charges, and the impact of consolidating CIEs. Our Corporate & Other segment pretax operating loss decreased $9 million, or 6%, to $136 million for the three months ended September 30, 2017 compared to $145 million for the prior year period reflecting loss recognition on LTC insurance products of $31 million in the prior year period and a $29 million increase in LTC reserves in the prior year period from a correction related to our claim utilization assumption, partially offset by LTC loss recognition of $57 million for the three months ended September 30, 2017.
Distribution expenses increased $29 million to a benefit of $2 million for the three months ended September 30, 2017 compared to a benefit of $31 million for the prior year period. Distribution expenses for the prior year period included a $27 million benefit related to the write-off of the deferred reinsurance liability in connection with loss recognition on LTC insurance products.
Benefits, claims, losses and settlement expenses increased $18 million, or 18%, to $119 million for the three months ended September 30, 2017 compared to $101 million for the prior year period primarily due to a $57 million expense from loss recognition on LTC insurance products in the third quarter of 2017, partially offset by a $29 million increase in LTC reserves in the prior year period from a correction related to our claim utilization assumption. The LTC loss recognition in the third quarter of 2017 was primarily due to unfavorable morbidity experience, partially offset by premium increases.
Amortization of DAC decreased $59 million compared to the prior year period reflecting the write-off of DAC in the third quarter of 2016 in connection with the loss recognition on LTC insurance products.

AMERIPRISE FINANCIAL, INC. 

Consolidated Results of Operations for the Nine Months Ended September 30, 2017 and 2016
The following table presents our consolidated results of operations:
 Nine Months Ended September 30, Change
2017 2016
(in millions)  
Revenues
Management and financial advice fees$4,669
 $4,289
 $380
 9 %
Distribution fees1,310
 1,338
 (28) (2)
Net investment income1,154
 1,090
 64
 6
Premiums1,035
 1,114
 (79) (7)
Other revenues733
 832
 (99) (12)
Total revenues8,901
 8,663
 238
 3
Banking and deposit interest expense34
 29
 5
 17
Total net revenues8,867
 8,634
 233
 3
Expenses
Distribution expenses2,505
 2,371
 134
 6
Interest credited to fixed accounts509
 465
 44
 9
Benefits, claims, losses and settlement expenses1,652
 1,934
 (282) (15)
Amortization of deferred acquisition costs189
 360
 (171) (48)
Interest and debt expense154
 160
 (6) (4)
General and administrative expense2,244
 2,221
 23
 1
Total expenses7,253
 7,511
 (258) (3)
Pretax income1,614
 1,123
 491
 44
Income tax provision315
 209
 106
 51
Net income$1,299
 $914
 $385
 42 %
Overall
Pretax income increased $491 million, or 44%, to $1.6 billion for the nine months ended September 30, 2017 compared to $1.1 billion for the prior year period primarily reflecting the impact of unlocking, market appreciation, wrap account net inflows, a positive impact from higher short-term interest rates, a $23 million expense in the prior year period from the resolution of a legacy legal matter related to the hedge fund business and an unfavorable $29 million LTC reserve correction in the prior year period, partially offset by asset management net outflows, loss recognition of $57 million on LTC insurance products in the third quarter of 2017 and higher performance-based compensation.
The following market-related impacts were also significant drivers of the year-over-year change in pretax income:
The market impact on variable annuity guaranteed benefits (net of hedges and the related DSIC and DAC amortization) was an expense of $198 million for the nine months ended September 30, 2017 compared to an expense of $78 million for the prior year period.
The market impact on indexed universal life benefits (net of hedges and the related DAC amortization, unearned revenue amortization and the reinsurance accrual) was an expense of $16 million for the nine months ended September 30, 2017 compared to a benefit of $31 million for the prior year period.
The market impact of hedges on investments was an expense of $8 million for the nine months ended September 30, 2017 compared to an expense of $54 million for the prior year period.
Net realized investment gains were $33 million for the nine months ended September 30, 2017 compared to net realized investment losses of $5 million for the prior year period.
The impact on DAC, DSIC and reserves for insurance features in non-traditional long-duration contracts from actual versus expected market performance based on our view of bond and equity performance was a benefit of $63 million ($27 million for DAC, $6 million for DSIC and $30 million for insurance features in non-traditional long duration contracts) for the nine months ended September 30, 2017 reflecting favorable equity market and bond fund returns compared to a benefit of $5 million ($3 million for DAC, $1 million for DSIC and $1 million for insurance features in non-traditional long duration contracts) for the prior year period.

AMERIPRISE FINANCIAL, INC. 

See the table of total pretax impacts on our revenues and expenses attributable to unlocking within our Consolidated Results of Operations for the three months ended September 30, 2017.
Net Revenues
Net revenues increased $233 million, or 3%, to $8.9 billion for the nine months ended September 30, 2017 compared to $8.6 billion for the prior year period primarily due to market appreciation, wrap account net inflows, an increase in net investment income, and higher brokerage cash spread due to an increase in short-term interest rates, partially offset by the impact of unlocking, a $138 million decrease in revenues from the net impact of transitioning advisory accounts to share classes without 12b-1 fees, asset management net outflows and higher ceded premiums for our auto and home business.
Management and financial advice fees increased $380 million, or 9%, to $4.7 billion for the nine months ended September 30, 2017 compared to $4.3 billion for the prior year period primarily due to an increase in AUM. Average AUM increased $37.9 billion, or 6%, compared to the prior year period due to market appreciation and wrap account net inflows, partially offset by asset management net outflows and the negative impact of foreign currency translation. See our discussion on the changes in AUM in our segment results of operations section.
Distribution fees decreased $28 million, or 2%, to $1.3 billion for the nine months ended September 30, 2017 compared to the prior year period primarily due to a $162 million decrease related to our transition to share classes without 12b-1 fees in advisory accounts, partially offset by market appreciation and higher brokerage cash spread due to an increase in short-term interest rates.
Net investment income increased $64 million, or 6%, to $1.2 billion for the nine months ended September 30, 2017 compared to $1.1 billion for the prior year period primarily due to a $46 million favorable change in the market impact of hedges on investments and net realized investment gains of $35 million for the nine months ended September 30, 2017 compared to net realized investment losses of $5 million for the prior year period, partially offset by a $16 million decrease in investment income on fixed maturities driven by lower earned interest rates and fixed annuity net outflows.
Premiums decreased $79 million, or 7%, to $1.0 billion for the nine months ended September 30, 2017 compared to $1.1 billion for the prior year period primarily reflecting higher ceded premiums for our auto and home business due to new reinsurance arrangements we entered into at the beginning of the year to reduce risk.
Other revenues decreased $99 million, or 12%, to $733 million for the nine months ended September 30, 2017 compared to $832 million for the prior year period primarily due to the impact of unlocking, partially offset by higher fees from variable annuity guarantee sales in the prior year where the fees start on the first anniversary date and higher average fee rates. Other revenues for the nine months ended September 30, 2017 included a $47 million unfavorable impact from unlocking compared to a $64 million favorable impact in the prior year period. The primary driver of the unlocking impact to other revenues for the nine months ended September 30, 2017 was a negative impact from lower projected gains on reinsurance contracts resulting from favorable mortality experience. The primary driver of the unlocking impact to other revenues for the prior year period was a positive impact from higher projected gains on reinsurance contracts resulting from unfavorable mortality experience.
Expenses
Total expenses decreased $258 million, or 3%, to $7.3 billion for the nine months ended September 30, 2017 compared to $7.5 billion for the prior year period primarily due to the impact of unlocking, partially offset by higher distribution expenses.
Distribution expenses increased $134 million, or 6%, to $2.5 billion for the nine months ended September 30, 2017 compared to $2.4 billion for the prior year period reflecting market appreciation, wrap account net inflows and a $27 million benefit in the prior year period related to the write-off of the deferred reinsurance liability in connection with loss recognition testing of LTC insurance products, partially offset by a $106 million decrease from changes related to our transition to share classes without 12b-1 fees in advisory accounts and asset management net outflows.
Interest credited to fixed accounts increased $44 million, or 9%, to $509 million for the nine months ended September 30, 2017 compared to $465 million for the prior year period primarily due to the market impact on indexed universal life benefits, net of hedges, which was an expense of $14 million for the nine months ended September 30, 2017 compared to a benefit of $25 million for the prior year period.
Benefits, claims, losses and settlement expenses decreased $282 million, or 15%, to $1.7 billion for the nine months ended September 30, 2017 compared to $1.9 billion for the prior year period primarily reflecting the following items:
The nine months ended September 30, 2017 included a $139 million benefit from unlocking compared to a $229 million expense in the prior year period. The unlocking impact for the nine months ended September 30, 2017 primarily reflected a benefit from updates to market-related inputs to our living benefit valuation. The unlocking impact for the prior year period primarily reflected low interest rates and an unfavorable impact from persistency on living benefit reserves, partially offset by a benefit from updates to withdrawal utilization and fee assumptions, as well as market-related inputs related to our living benefit valuation.
A $29 million increase in LTC reserves from a correction related to our claim utilization assumption in the third quarter of 2016.

AMERIPRISE FINANCIAL, INC. 

The impact on DSIC and reserves for insurance features in non-traditional long-duration contracts from actual versus expected market performance based on our view of bond and equity performance was a benefit of $36 million for the nine months ended September 30, 2017 reflecting favorable equity market and bond fund returns compared to a benefit of $2 million for the prior year period.
An $84 million decrease in auto and home expenses reflecting the impact of new reinsurance arrangements and a lower non-catastrophe loss ratio, partially offset by higher gross catastrophe losses. Catastrophe losses, net of the impact of reinsurance, were $84 million for the nine months ended September 30, 2017 compared to $89 million for the prior year period. The expanded reinsurance program resulted in ceded losses of approximately $82 million for the nine months ended September 30, 2017.
A $57 million expense from loss recognition on LTC insurance products in the third quarter of 2017 primarily due to unfavorable morbidity experience, partially offset by premium increases.
A $24 million increase in expense related to higher reserve funding driven by the impact of higher fees from variable annuity guarantee sales in the prior year where the fees start on the first anniversary date.
A $21 million negative impact from changes in assumptions in the prior year unlocking process that resulted in ongoing increases to living benefit reserves.
A $459 million increase in expense compared to the prior year period from the unhedged nonperformance credit spread risk adjustment on variable annuity guaranteed benefits. As the embedded derivative liability on which the nonperformance credit spread is applied increases (decreases), the impact of the nonperformance credit spread is favorable (unfavorable) to expense. The unfavorable impact of the nonperformance credit spread was $122 million for the nine months ended September 30, 2017 compared to a favorable impact of $337 million for the prior year period.
A $309 million decrease in expense from other market impacts on variable annuity guaranteed benefits, net of hedges in place to offset those risks and the related DSIC amortization. This decrease was the result of a favorable $1.7 billion change in the market impact on variable annuity guaranteed living benefits reserves, an unfavorable $1.4 billion change in the market impact on derivatives hedging the variable annuity guaranteed benefits and a favorable $3 million change in the DSIC offset. The main market drivers contributing to these changes are summarized below:
Interest rate impact on the variable annuity guaranteed living benefits liability net of the impact on the corresponding hedge assets resulted in a lower expense for the nine months ended September 30, 2017 compared to the prior year period.
Equity market impact on the variable annuity guaranteed living benefits liability net of the impact on the corresponding hedge assets resulted in a benefit for the nine months ended September 30, 2017 compared to an expense in the prior year period.
Volatility impact on the variable annuity guaranteed living benefits liability net of the impact on the corresponding hedge assets resulted in a higher expense for the nine months ended September 30, 2017 compared to the prior year period.
Other unhedged items, including the difference between the assumed and actual underlying separate account investment performance, fixed income credit exposures, transaction costs and various behavioral items, were a net favorable impact compared to the prior year period.
Amortization of DAC decreased $171 million, or 48%, to $189 million for the nine months ended September 30, 2017 compared to $360 million for the prior year period primarily reflecting the following items:
The impact of unlocking was a benefit of $12 million for the nine months ended September 30, 2017 compared to an expense of $81 million for the prior year period. The impact of unlocking for the nine months ended September 30, 2017 primarily reflected improved persistency and mortality on life insurance contracts and a $10 million benefit from a correction related to a variable annuity model assumption, partially offset by updates to market-related inputs to the living benefit valuation. The impact of unlocking in the prior year period primarily reflected low interest rates that more than offset benefits from persistency on annuity contracts without living benefits. In addition, we wrote-off $58 million of DAC in connection with the loss recognition on LTC insurance products in the prior year period.
The impact on DAC from actual versus expected market performance based on our view of bond and equity performance was a benefit of $27 million for the nine months ended September 30, 2017 reflecting favorable equity market and bond fund returns compared to a benefit of $3 million for the prior year period.
The DAC offset to the market impact on variable annuity guaranteed benefits (net of hedges and the related DSIC amortization) was a benefit of $24 million for the nine months ended September 30, 2017 compared to an expense of $6 million for the prior year period.
General and administrative expense increased $23 million, or 1%, to $2.2 billion for the nine months ended September 30, 2017March 31, 2022 compared to the prior year period primarily due to higher performance-based compensation,average invested assets due to increased bank deposits, partially offset by a $23lower certificate balances and the unfavorable impact of continued low interest rates, including lower investment yields on the investment portfolio supporting the certificate products.
Banking and deposit interest expense decreased $3 million, expense inor 60%, for the three months ended March 31, 2022 compared to the prior year period fromprimarily due to lower average crediting rates on certificates and lower average certificate balances.
Expenses
Distribution expenses increased $97 million, or 9%, for the resolution of a legacy legal matter relatedthree months ended March 31, 2022 compared to the hedge fund business.prior year period reflecting higher asset-based advisor compensation from higher wrap account assets, partially offset by decreased transactional activity.

General and administrative expense increased $16 million, or 5%, for the three months ended March 31, 2022 compared to the prior year period primarily reflecting higher volume related expenses.
AMERIPRISE FINANCIAL, INC. 

Income TaxesNet Revenues
Our effective tax rate was 19.5% for the nine months ended September 30, 2017 compared to 18.6% for the prior year period. Our effective tax rates for the nine months ended September 30, 2017Management and 2016 were lower than the statutory rate as a result of tax preferred items including the dividends received deduction, low income housing tax credits, stock compensation and lower taxes on net income from foreign subsidiaries.
Results of Operations by Segment for the Nine Months Ended September 30, 2017 and 2016 
The following table presents summary financial information by segment:
 Nine Months Ended September 30,
2017 2016
(in millions)
Advice & Wealth Management
Net revenues$4,026
 $3,720
Expenses3,189
 3,063
Operating earnings$837
 $657
Asset Management
Net revenues$2,252
 $2,203
Expenses1,726
 1,751
Operating earnings$526
 $452
Annuities
Net revenues$1,861
 $1,846
Expenses1,299
 1,644
Operating earnings$562
 $202
Protection
Net revenues$1,516
 $1,693
Expenses1,347
 1,503
Operating earnings$169
 $190
Corporate & Other
Net revenues$162
 $178
Expenses454
 449
Operating loss$(292) $(271)
See the table of total pretax impacts on our revenues and expenses attributable to unlocking within our Results of Operations by Segmentadvice fees increased $357 million, or 17%, for the three months ended September 30, 2017.
Advice & Wealth Management
The following table presents the changes in wrap account assets and average balances for the nine months ended September 30:
 2017 2016
(in billions)
Beginning balance$201.1
 $180.5
Inflows from acquisition (1)
0.7
 
Other net flows13.8
 6.9
Net flows14.5
 6.9
Market appreciation (depreciation) and other19.6
 10.1
Ending balance$235.2
 $197.5
 
Advisory wrap account assets ending balance (2)
$233.0
 $195.4
Average advisory wrap account assets (3)
$216.2
 $184.7
(1) Inflows associated with acquisition that closed during the period.

AMERIPRISE FINANCIAL, INC. 

(2)
Advisory wrap account assets represent those assets for which clients receive advisory services and are the primary driver of revenue earned on wrap accounts. Clients may hold non-advisory investments in their wrap accounts that do not incur an advisory fee.
(3)
Average ending balances are calculated using an average of the prior period’s ending balance and all months in the current period.
Wrap account assets increased $34.1 billion, or 17%, during the nine months ended September 30, 2017 due to net inflows of $14.5 billion, including $0.7 billion from our acquisition of IPI, and market appreciation and other of $19.6 billion. Net flows increased $7.6 billion compared to the prior year period. Average advisory wrap account assets increased $31.5 billion, or 17%,March 31, 2022 compared to the prior year period reflecting higher average equity markets, revenue associated with the acquisition of the BMO Global Asset Management (EMEA) business, continued wrap account net inflows, and market appreciation.a $53 million increase in performance fees.
The following table presentsDistribution fees decreased $12 million, or 3%, for the results of operations of our Advice & Wealth Management segment on an operating basis:three months ended March 31, 2022 compared to the prior year period due to decreased transactional activity, partially offset by higher average equity markets.
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AMERIPRISE FINANCIAL, INC. 
 Nine Months Ended September 30, Change
2017 2016
(in millions)  
Revenues
Management and financial advice fees$2,294
 $1,989
 $305
 15 %
Distribution fees1,533
 1,569
 (36) (2)
Net investment income174
 138
 36
 26
Other revenues59
 53
 6
 11
Total revenues4,060
 3,749
 311
 8
Banking and deposit interest expense34
 29
 5
 17
Total net revenues4,026
 3,720
 306
 8
Expenses
Distribution expenses2,379
 2,275
 104
 5
Interest and debt expense7
 6
 1
 17
General and administrative expense803
 782
 21
 3
Total expenses3,189
 3,063
 126
 4
Operating earnings$837
 $657
 $180
 27 %
Net investment income decreased $116 million, or 31%, for the three months ended March 31, 2022 compared to the prior year period primarily reflecting the following items:
Our Advice & Wealth Management segment pretax operating earnings, which excludeNet realized investment gains of $20 million for the three months ended March 31, 2022 compared to net realized investment gains or losses, increased $180 million, or 27%, to $837 million for the nine months ended September 30, 2017 compared to $657of $69 million for the prior year period. Net realized investment gains included a $15 million gain on a strategic investment in the prior year period.
The unfavorable impact of lower average invested assets due to the sale of investments to a reinsurer as a result of the fixed deferred and immediate annuity reinsurance transaction.
A $17 million decrease in net investment income of CIEs.
The unfavorable impact of continued low interest rates, including lower investment yields on the investment portfolio supporting the certificate products.
Premiums, policy and contract charges increased $21 million, or 6%, for the three months ended March 31, 2022 compared to the prior year primarily reflecting a favorable change in unearned revenue amortization and the reinsurance accrual offset to the market impact on IUL benefits.
Other revenues increased $52 million, or 73%, for the three months ended March 31, 2022 compared to the prior year period primarily reflecting the yield on deposit receivables arising from reinsurance transactions.
Banking and deposit interest expense decreased $3 million, or 60%, for the three months ended March 31, 2022 compared to the prior year period due to lower average crediting rates on certificates and lower average certificate balances.
Expenses
Distribution expenses increased $122 million, or 10%, for the three months ended March 31, 2022 compared to the prior year period reflecting higher advisor compensation primarily due to an increase in average wrap account net inflows, market appreciation and higher earnings on brokerage cash,balances, partially offset by expenses associated with recruiting experienced advisors and higher performance-based compensation. Pretax operating margin was 20.8%decreased transactional activity.
Interest credited to fixed accounts decreased $18 million, or 11%, for the ninethree months ended September 30, 2017March 31, 2022 compared to 17.7%the prior year period primarily reflecting the following items:
A $29 million decrease in expense from the unhedged nonperformance credit spread risk adjustment on IUL benefits. The favorable impact of the nonperformance credit spread was $28 million for the three months ended March 31, 2022 compared to an unfavorable impact of $1 million for the prior year period.
A $14 million increase in expense from other market impacts on IUL benefits, net of hedges, which was an expense of $12 million for the three months ended March 31, 2022 compared to a benefit of $2 million for the prior year period. The increase in expense was primarily due to an increase in the IUL embedded derivative in the current period, which reflected higher option costs due to a higher new money rate.
Benefits, claims, losses and settlement expenses decreased $442 million, or 68%, the three months ended March 31, 2022 compared to the prior year period primarily reflecting the following items:
A $207 million decrease in expense primarily reflecting the impact of year-over-year changes in the unhedged nonperformance credit spread risk adjustment on variable annuity guaranteed benefits. The unfavorable impact of the nonperformance credit spread was $18 million for the three months ended March 31, 2022 compared to an unfavorable impact of $225 million for the prior year period. As the undiscounted embedded derivative liability on which the nonperformance credit spread is applied increases (decreases), the impact of the nonperformance credit spread on benefits expenses is favorable (unfavorable). Additionally, as the estimate of the nonperformance credit spread over the LIBOR swap curve tightens or widens, the embedded derivative liability will increase or decrease.
A $339 million decrease in expense from other market impacts on variable annuity guaranteed benefits, net of hedges in place to offset those risks and the related DSIC amortization. This decrease was the result of a favorable $1.3 billion change in the market impact on derivatives hedging the variable annuity guaranteed benefits, partially offset by an unfavorable $950 million change in the market impact on variable annuity guaranteed living benefits reserves. The main market drivers contributing to these changes are summarized below:
Equity market impact on the variable annuity guaranteed living benefits liability net of the impact on the corresponding hedge assets resulted in a benefit for the three months ended March 31, 2022 compared to an expense for the prior year period.
Interest rate impact on the variable annuity guaranteed living benefits liability net of the impact on the corresponding hedge assets resulted in a higher expense for the three months ended March 31, 2022 compared to the prior year period.
Volatility impact on the variable annuity guaranteed living benefits liability net of the impact on the corresponding hedge assets resulted in a lower expense for the three months ended March 31, 2022 compared to the prior year period.
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AMERIPRISE FINANCIAL, INC. 
Other unhedged items, including the difference between the assumed and actual underlying separate account investment performance, fixed income credit exposures, transaction costs and various behavioral items, were a net expense for the three months ended March 31, 2022 compared to a net benefit for the prior year period.
The mean reversion related impact was an expense of $34 million for the three months ended March 31, 2022 compared to a benefit of $34 million for the prior year period.
A $41 million increase in expense on LTC insurance as claims returned to more normalized levels compared to the prior year period which benefited from COVID-19 related impacts.
Amortization of DAC increased $91 million, for the three months ended March 31, 2022 compared to the prior year period primarily reflecting the following items:
The DAC offset to the market impact on non-traditional long-duration products was an expense of $11 million for the three months ended March 31, 2022 compared to a benefit of $46 million for the prior year period.
The mean reversion related impact was an expense of $25 million for the three months ended March 31, 2022 compared to a benefit of $22 million for the prior year period.
A decrease in amortization reflecting lower than expected client exit rates.
General and administrative expense increased $124 million, or 15%, for the three months ended March 31, 2022 compared to the prior year period primarily reflecting the operating expenses of the acquired BMO Global Asset Management (EMEA) business, higher performance fee related compensation, and $10 million of integration related expenses, partially offset by an unfavorable change in the mark-to-market impact on share-based compensation in the prior year period.
Net Revenues
Management and financial advice fees increased $357 million, or 17%, for the three months ended March 31, 2022 compared to the prior year period reflecting higher average equity markets, revenue associated with the acquisition of the BMO Global Asset Management (EMEA) business, continued wrap account net inflows, and a $53 million increase in performance fees.
Distribution fees decreased $12 million, or 3%, for the three months ended March 31, 2022 compared to the prior year period due to decreased transactional activity, partially offset by higher average equity markets.
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AMERIPRISE FINANCIAL, INC. 
Net investment income decreased $116 million, or 31%, for the three months ended March 31, 2022 compared to the prior year period primarily reflecting the following items:
Net realized investment gains of $20 million for the three months ended March 31, 2022 compared to net realized investment gains of $69 million for the prior year period. Net realized investment gains included a $15 million gain on a strategic investment in the prior year period.
The unfavorable impact of lower average invested assets due to the sale of investments to a reinsurer as a result of the fixed deferred and immediate annuity reinsurance transaction.
A $17 million decrease in net investment income of CIEs.
The unfavorable impact of continued low interest rates, including lower investment yields on the investment portfolio supporting the certificate products.
Premiums, policy and contract charges increased $21 million, or 6%, for the three months ended March 31, 2022 compared to the prior year primarily reflecting a favorable change in unearned revenue amortization and the reinsurance accrual offset to the market impact on IUL benefits.
Other revenues increased $52 million, or 73%, for the three months ended March 31, 2022 compared to the prior year period primarily reflecting the yield on deposit receivables arising from reinsurance transactions.
Banking and deposit interest expense decreased $3 million, or 60%, for the three months ended March 31, 2022 compared to the prior year period due to lower average crediting rates on certificates and lower average certificate balances.
Expenses
Distribution expenses increased $122 million, or 10%, for the three months ended March 31, 2022 compared to the prior year period reflecting higher advisor compensation primarily due to an increase in average wrap account balances, partially offset by decreased transactional activity.
Interest credited to fixed accounts decreased $18 million, or 11%, for the three months ended March 31, 2022 compared to the prior year period primarily reflecting the following items:
A $29 million decrease in expense from the unhedged nonperformance credit spread risk adjustment on IUL benefits. The favorable impact of the nonperformance credit spread was $28 million for the three months ended March 31, 2022 compared to an unfavorable impact of $1 million for the prior year period.
A $14 million increase in expense from other market impacts on IUL benefits, net of hedges, which was an expense of $12 million for the three months ended March 31, 2022 compared to a benefit of $2 million for the prior year period. The increase in expense was primarily due to an increase in the IUL embedded derivative in the current period, which reflected higher option costs due to a higher new money rate.
Benefits, claims, losses and settlement expenses decreased $442 million, or 68%, the three months ended March 31, 2022 compared to the prior year period primarily reflecting the following items:
A $207 million decrease in expense primarily reflecting the impact of year-over-year changes in the unhedged nonperformance credit spread risk adjustment on variable annuity guaranteed benefits. The unfavorable impact of the nonperformance credit spread was $18 million for the three months ended March 31, 2022 compared to an unfavorable impact of $225 million for the prior year period. As the undiscounted embedded derivative liability on which the nonperformance credit spread is applied increases (decreases), the impact of the nonperformance credit spread on benefits expenses is favorable (unfavorable). Additionally, as the estimate of the nonperformance credit spread over the LIBOR swap curve tightens or widens, the embedded derivative liability will increase or decrease.
A $339 million decrease in expense from other market impacts on variable annuity guaranteed benefits, net of hedges in place to offset those risks and the related DSIC amortization. This decrease was the result of a favorable $1.3 billion change in the market impact on derivatives hedging the variable annuity guaranteed benefits, partially offset by an unfavorable $950 million change in the market impact on variable annuity guaranteed living benefits reserves. The main market drivers contributing to these changes are summarized below:
Equity market impact on the variable annuity guaranteed living benefits liability net of the impact on the corresponding hedge assets resulted in a benefit for the three months ended March 31, 2022 compared to an expense for the prior year period.
Interest rate impact on the variable annuity guaranteed living benefits liability net of the impact on the corresponding hedge assets resulted in a higher expense for the three months ended March 31, 2022 compared to the prior year period.
Volatility impact on the variable annuity guaranteed living benefits liability net of the impact on the corresponding hedge assets resulted in a lower expense for the three months ended March 31, 2022 compared to the prior year period.
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AMERIPRISE FINANCIAL, INC. 
Other unhedged items, including the difference between the assumed and actual underlying separate account investment performance, fixed income credit exposures, transaction costs and various behavioral items, were a net expense for the three months ended March 31, 2022 compared to a net benefit for the prior year period.
The mean reversion related impact was an expense of $34 million for the three months ended March 31, 2022 compared to a benefit of $34 million for the prior year period.
A $41 million increase in expense on LTC insurance as claims returned to more normalized levels compared to the prior year period which benefited from COVID-19 related impacts.
Amortization of DAC increased $91 million, for the three months ended March 31, 2022 compared to the prior year period primarily reflecting the following items:
The DAC offset to the market impact on non-traditional long-duration products was an expense of $11 million for the three months ended March 31, 2022 compared to a benefit of $46 million for the prior year period.
The mean reversion related impact was an expense of $25 million for the three months ended March 31, 2022 compared to a benefit of $22 million for the prior year period.
A decrease in amortization reflecting lower than expected client exit rates.
General and administrative expense increased $124 million, or 15%, for the three months ended March 31, 2022 compared to the prior year period primarily reflecting the operating expenses of the acquired BMO Global Asset Management (EMEA) business, higher performance fee related compensation, and $10 million of integration related expenses, partially offset by an unfavorable change in the mark-to-market impact on share-based compensation in the prior year period.
Income Taxes
Our effective tax rate was 17.6% for the three months ended March 31, 2022 compared to 11.3% for the prior year period. The higher effective tax rate for the three months ended March 31, 2022 compared to March 31, 2021 is primarily the result of higher pretax income and a decrease in low income housing tax credits, partially offset by an increase in incentive compensation in the current period compared to the prior period. See Note 15 to our Consolidated Financial Statements for additional discussion on income taxes.
Results of Operations by Segment for the Three Months Ended March 31, 2022 and 2021 
Adjusted operating earnings is the measure of segment profit or loss management uses to evaluate segment performance. Adjusted operating earnings should not be viewed as a substitute for GAAP pretax income. We believe the presentation of segment adjusted operating earnings as we measure it for management purposes enhances the understanding of our business by reflecting the underlying performance of our core operations and facilitating a more meaningful trend analysis. See Note 18 to the Consolidated Financial Statements for further information on the presentation of segment results and our definition of adjusted operating earnings.
 The following table presents summary financial information by segment:
Three Months Ended March 31,
20222021
(in millions)
Advice & Wealth Management  
Net revenues$2,042 $1,879 
Expenses1,602 1,490 
Adjusted operating earnings$440 $389 
Asset Management
Net revenues$1,017 $828 
Expenses732 600 
Adjusted operating earnings$285 $228 
Retirement & Protection Solutions
Net revenues$772 $787 
Expenses581 604 
Adjusted operating earnings$191 $183 
Corporate & Other
Net revenues$116 $139 
Expenses192 160 
Adjusted operating loss$(76)$(21)
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AMERIPRISE FINANCIAL, INC. 
Advice & Wealth Management
The following table presents the changes in wrap account assets and average balances for the three months ended March 31:
20222021
(in billions)
Beginning balance$464.7 $380.0 
Net flows8.7 10.4 
Market appreciation (depreciation) and other(26.4)9.4 
Ending balance$447.0 $399.8 
Advisory wrap account assets ending balance (1)
$442.1 $395.3 
Average advisory wrap account assets (2)
$445.7 $379.3 
(1) Advisory wrap account assets represent those assets for which clients receive advisory services and are the primary driver of revenue earned on wrap accounts. Clients may hold non-advisory investments in their wrap accounts that do not incur an advisory fee.
(2) Average ending balances are calculated using an average of the prior period’s ending balance and all months in the current period excluding the most recent month for the three months ended March 31, 2022 and 2021.
Wrap account assets decreased $17.7 billion, or 4%, during the three months ended March 31, 2022 due to market depreciation of $26.4 billion, partially offset by net inflows of $8.7 billion. Average advisory wrap account assets increased $66.4 billion, or 18%, compared to the prior year period primarily reflecting net inflows, along with market appreciation.
The following table presents the results of operations of our Advice & Wealth Management segment on an adjusted operating basis:
Three Months Ended March 31,Change
20222021
(in millions)
Revenues
Management and financial advice fees$1,380 $1,205 $175 15 %
Distribution fees529 559 (30)(5)
Net investment income78 64 14 22 
Other revenues57 56 
Total revenues2,044 1,884 160 
Banking and deposit interest expense(3)(60)
Total net revenues2,042 1,879 163 
Expenses
Distribution expenses1,232 1,135 97 
Interest and debt expense(1)(33)
General and administrative expense368 352 16 
Total expenses1,602 1,490 112 
Adjusted operating earnings$440 $389 $51 13 %
Our Advice & Wealth Management segment pretax adjusted operating earnings, which exclude net realized investment gains or losses. Net revenueslosses, increased $306$51 million, or 8%13%, to $4.0 billion for the ninethree months ended September 30, 2017March 31, 2022 compared to $3.7the prior year period primarily reflecting higher average wrap account balances due to net inflows, market appreciation, and increased bank profitability. Pretax adjusted operating margin was 21.5% for the three months ended March 31, 2022 compared to 20.7% for the prior year period. Cash balances increased $5.3 billion to $45.7 billion contrary to normal seasonal patterns in the first quarter.
Ameriprise Bank, FSB is continuing its deposit growth trend, with cash sweep balances increasing $5.2 billion from the prior year period to $13.2 billion and brokerage client pledged asset lines of credit increasing to $520 million as of March 31, 2022.
Net Revenues
Management and financial advice fees increased $175 million, or 15%, for the three months ended March 31, 2022 compared to the prior year period primarily due to growth in wrap account assets, higher earnings on brokerage cash and increased transactional activity, partially offset by a $138 million decrease in revenues from the net impact of transitioning advisory accounts to share classes without 12b-1 fees. Operating net revenue per advisor increased to $414,000 for the nine months ended September 30, 2017, up 8%, from $382,000 for the prior year period.
Management and financial fees increased $305 million, or 15%, to $2.3 billion for the nine months ended September 30, 2017 compared to $2.0 billion for the prior year period primarily due to growth inaverage wrap account assets. Average advisory wrap account assets increased $31.5$66.4 billion, or 17%18%, compared to the prior year period reflecting net inflows and market appreciation.
Distribution fees decreased $36$30 million, or 2%5%, to $1.5 billion for the ninethree months ended September 30, 2017March 31, 2022 compared to $1.6 billion for the prior year period primarily due to a $162 million decrease related to our transition to share classes without 12b-1 fees in advisory accounts,reflecting decreased transactional activity, partially offset by market appreciation, increased transactional activity and higher brokerage cash spread due to an increase in short-term interest rates.average equity markets.
58


AMERIPRISE FINANCIAL, INC. 
Net investment income, which excludes net realized investment gains or losses, increased $36$14 million, or 26%22%, to $174 million for the ninethree months ended September 30, 2017March 31, 2022 compared to $138 million for the prior year period primarily due to higher average invested assets due to increased bank deposits, partially offset by lower certificate balances and the unfavorable impact of continued low interest rates, including lower investment yields on the investment portfolio supporting the certificate products.
Banking and an increase in invested balances driven by certificate net inflows.
Expenses
Total expenses increased $126deposit interest expense decreased $3 million, or 4%60%, to $3.2 billion for the ninethree months ended September 30, 2017March 31, 2022 compared to $3.1 billion for the prior year period primarily due to an increase in distribution expenseslower average crediting rates on certificates and general and administrative expense.lower average certificate balances.

AMERIPRISE FINANCIAL, INC. 

Expenses
Distribution expenses increased $104$97 million, or 5%9%, to $2.4 billion for the ninethree months ended September 30, 2017March 31, 2022 compared to $2.3 billion for the prior year period reflecting higher asset-based advisor compensation due to growth infrom higher wrap account assets, increased transactional activity and investments in recruiting experienced advisors, partially offset by a $106 million decrease related to our transition to share classes without 12b-1 fees in advisory accounts.decreased transactional activity.
General and administrative expense increased $21$16 million, or 3%5%, to $803 million for the ninethree months ended September 30, 2017March 31, 2022 compared to $782 million for the prior year period primarily due toreflecting higher performance-based compensation, as well as expensesvolume related to the IPI acquisition.expenses.
Asset Management
The following table presents global managedtables present the mutual fund performance of our retail Columbia Threadneedle Investments funds, including recently acquired BMO branded funds, as of March 31, 2022:
Retail Fund Rankings in Top 2 Quartiles or Above Index Benchmark - Asset Weighted(1)
1 year3 year5 year10 year
Equity28%81%85%88%
Fixed Income53%90%94%91%
Asset Allocation45%80%86%91%
4- or 5-star Morningstar rated funds(2)
Overall3 year5 year10 year
Number of rated funds129108104104
Percent of rated assets69%62%62%72%
(1) Retail Fund performance rankings for each fund is measured on a consistent basis against the most appropriate peer group or index. Peer Groupings are defined by either Lipper, IA, or Morningstar and based primarily on the Institutional Share Class, Net of Fees. Comparisons to Index are measured Gross of Fees.
To calculate asset weighted performance, the sum of the total assets of the funds with above median ranking are divided by type:total assets of all funds. Funds with more assets will receive a greater share of the total percentage above or below median.
Aggregated Asset Allocation Funds may include funds that invest in other Columbia or Threadneedle branded mutual funds included in both equity and fixed income.
(2) Columbia funds are available for purchase by U.S. customers. Out of 95 Columbia funds (Institutional shares) rated, 13 received a 5-star Overall Rating and 39 received a 4-star Overall Rating. Out of 92 Threadneedle funds (highest rated share class) rated, 18 received a 5-star Overall Rating and 32 received a 4-star Overall Rating. Out of 63 BMO branded funds (highest rated share class) rated, 6 received a 5-star Overall Rating and 21 received a 4-star Overall Rating. The Overall Morningstar Rating is derived from a weighted average of the performance figures associated with its 3-, 5- and 10-year (if applicable) Morningstar Rating metrics.
The following table presents global managed assets by type:
Average (1)
Change
As of March 31,ChangeThree Months Ended March 31,
2022202120222021
(in billions)
Equity$367.1 $319.4 $47.7 15 %$379.6 $308.8 $70.8 23 %
Fixed income256.5 194.3 62.2 32 267.2 195.2 72.0 37 
Money market12.9 5.8 7.1   NM  11.8 5.9 5.9   NM  
Alternative40.2 22.9 17.3 76 40.1 22.7 17.4 77 
Hybrid and other21.9 21.7 0.2 22.5 20.9 1.6 
Total managed assets(2)
$698.6 $564.1 $134.5 24 %$721.2 $553.5 $167.7 30 %
NM  Not Meaningful.
(1) Average ending balances are calculated using an average of the prior period’s ending balance and all months in the current period.
(2) In the fourth quarter of 2021, the definition of Alternative AUM was changed to now include real estate, CLOs, private equity, hedge funds (direct and fund of funds), infrastructure and commodities to better demonstrate our underlying business and the additional assets from the acquisition of the BMO Global Asset Management (EMEA) business. Prior periods have been restated to reflect this change.
59

 September 30, Change 
Average(1)
 Change
Nine Months Ended September 30,
2017 20162017 2016
(in billions)
Equity$265.8
 $245.9
 $19.9
 8 % $254.3
 $244.0
 $10.3
 4 %
Fixed income178.0
 183.3
 (5.3) (3) 177.3
 179.6
 (2.3) (1)
Money market5.9
 6.6
 (0.7) (11) 5.9
 7.3
 (1.4) (19)
Alternative6.5
 7.3
 (0.8) (11) 7.0
 7.7
 (0.7) (9)
Hybrid and other27.8
 24.7
 3.1
 13
 26.1
 24.2
 1.9
 8
Total managed assets$484.0
 $467.8
 $16.2
 3 % $470.6
 $462.8
 $7.8
 2 %
(1) Average ending balances are calculated using an average of the prior period’s ending balance and all months in the current period.

AMERIPRISE FINANCIAL, INC. 
The following table presents the changes in global managed assets:
Three Months Ended March 31,
20222021
(in billions)
Global Retail Funds (1)
Beginning assets$409.4 $323.5 
Inflows21.8 22.5 
Outflows(23.2)(17.6)
Net VP/VIT fund flows(1.1)(1.0)
Net new flows (2)
(2.5)3.9 
Reinvested dividends0.6 0.7 
Net flows(1.9)4.6 
Distributions(0.8)(0.9)
Market appreciation (depreciation) and other(25.8)13.2 
Foreign currency translation (3)
(0.9)(0.2)
Total ending assets380.0 340.2 
Global Institutional (1)
Beginning assets344.7 223.1 
Inflows (4)
12.7 7.8 
Outflows (4)
(11.5)(7.5)
Net flows (2)
1.2 0.3 
Market appreciation (depreciation) and other (5)
(21.7)0.2 
Foreign currency translation (3)
(5.6)0.3 
Total ending assets318.6 223.9 
Total managed assets$698.6 $564.1 
Total net flows$(0.7)$4.9 
Legacy insurance partners net flows (6)
$(0.7)$(1.3)
 Nine Months Ended September 30,
2017 2016
(in billions)
Global Retail Funds
Beginning assets$259.9
 $263.9
Inflows38.0
 38.3
Acquisition related inflows (1)

 1.0
Outflows(45.7) (45.7)
Net VP/VIT fund flows(2.5) (1.3)
Net new flows(10.2) (7.7)
Reinvested dividends3.3
 3.8
Net flows(6.9) (3.9)
Distributions(4.1) (4.6)
Market appreciation (depreciation) and other28.5
 13.8
Foreign currency translation (2)
3.4
 (3.2)
Total ending assets280.8
 266.0
 
Global Institutional
Beginning assets194.5
 208.0
Inflows18.9
 18.5
Outflows(31.0) (31.1)
Net flows(12.1) (12.6)
Market appreciation (depreciation) and other (3)
13.9
 14.9
Foreign currency translation (2)
6.9
 (8.5)
Total ending assets203.2
 201.8
Total managed assets$484.0
 $467.8
Total net flows$(19.0) $(16.5)
 
(1) The beginning balances as of January 1, 2022 for Global Retail Funds and Global Institutional were corrected by $8.9 billion due to a reclassification of assets. Total AUM as of January 1, 2022 remained unchanged.

(2) Included in the first quarter 2022 net flows are $2.5 billion of retail and $0.1 billion of institutional net flows from the US asset transfer from the BMO acquisition.
AMERIPRISE FINANCIAL, INC. 

 Nine Months Ended September 30,
2017 2016
(in billions)
Former Parent Company Related (4)(5)
Retail net new flows$(2.3) $(0.6)
Institutional net new flows(10.4) (7.6)
Total net new flows$(12.7) $(8.2)
(1)
Inflows associated with acquisitions that closed during the period.
(2)(3) Amounts represent local currency to US dollar translation for reporting purposes.
(3) Includes $0.3 billion(4) Global Institutional inflows and $2.6 billionoutflows include net flows from our RiverSource Structured Annuity product and Ameriprise Bank, FSB.
(5) Included in Market appreciation (depreciation) and other for Global Institutional is the total change in Affiliated General Account Assets during the nine months ended September 30, 2017affiliated general account balance, excluding net flows related to our structured variable annuity product and 2016, respectively.Ameriprise Bank, FSB.
(4) Former parent company related(6) Legacy insurance partners assets and net new flows are included in the rollforwards above.
(5) Prior period former parent company related net new flows were restated to include additional Former Parent Company net new flows that were previously not considered. The change was a decrease of $199 million for the nine months ended September 30, 2017
60


AMERIPRISE FINANCIAL, INC. 
Total segment AUM increased $29.6decreased $55.5 billion, or 7%,during the ninethree monthsendedSeptember 30, 2017drivenby market appreciation and a positive impact of foreign currency translation, partially offset by net outflows. Total segment AUM net March 31, 2022. Net outflows were $19.0$0.7 billion forin the nine months ended September 30, 2017, which included $12.7first quarter of 2022, a $5.6 billion of outflows of former parent-related assets.
decrease compared to the prior year period. Global retail net outflows of $6.9were $1.9 billion. Global institutional net inflows were $1.2 billion and included $2.5 billion of outflows of our variable product funds underlying insurance and annuity separate accounts and $2.3$0.7 billion of outflows from former parent-relatedlegacy insurance partners assets. In U.S. retail, net outflows excluding the former parent-related assets were $5.5 billion, reflecting industry pressures on active strategies partially offset by $3.3 billion of reinvested dividends. In EMEA, net inflows were $0.9 billion.
Global institutional net outflows of $12.1 billion included $10.4 billion of outflows from former parent-related assets and a $1.6 billion outflow from an institutional client that continued a pattern of redeeming assets for liquidity purposes that started in 2015. Institutional outflows from former parent-related assets included Zurich outflows of $6.6 billion and U.S. Trust outflows of $3.8 billion.
The following table presents the results of operations of our Asset Management segment on an adjusted operating basis:
Nine Months Ended September 30, ChangeThree Months Ended March 31,Change
2017 201620222021
(in millions)  (in millions)
RevenuesRevenuesRevenues
Management and financial advice fees$1,880
 $1,826
 $54
 3 %Management and financial advice fees$898 $713 $185 26 %
Distribution fees344
 363
 (19) (5)Distribution fees111 114 (3)(3)
Net investment income16
 9
 7
 78
Net investment income  NM  
Other revenues12
 5
 7
 NM
Other revenues—  —
Total revenues2,252
 2,203
 49
 2
Total revenues1,017 828 189 23 
Banking and deposit interest expense
 
 
 
Banking and deposit interest expense— — —  —
Total net revenues2,252
 2,203
 49
 2
Total net revenues1,017 828 189 23 
ExpensesExpensesExpenses
Distribution expenses750
 762
 (12) (2)Distribution expenses277 268 
Amortization of deferred acquisition costs12
 13
 (1) (8)Amortization of deferred acquisition costs—  —
Interest and debt expense16
 16
 
 
Interest and debt expense—  —
General and administrative expense948
 960
 (12) (1)General and administrative expense451 328 123 38 
Total expenses1,726
 1,751
 (25) (1)Total expenses732 600 132 22 
Operating earnings$526
 $452
 $74
 16 %
Adjusted operating earningsAdjusted operating earnings$285 $228 $57 25 %
NM Not Meaningful.NM Not Meaningful.NM Not Meaningful.
Our Asset Management segment pretax adjusted operating earnings, which exclude net realized investment gains or losses, increased $74$57 million, or 16%25%, to $526 million for the ninethree months ended September 30, 2017March 31, 2022 compared to $452 million for the prior year period primarily due to market appreciation, an increase in incentive fees from CLO unwinds, a $9 million expense in the prior year period from the resolution of a legacy legal matter related to the hedge fund business and continued expense management, partially offset by net outflows and higher performance-based compensation.

AMERIPRISE FINANCIAL, INC. 

Net Revenues
Net revenues, which exclude net realized investment gains or losses, increased $49 million, or 2%, to $2.3 billion for the nine months ended September 30, 2017 compared to $2.2 billion for the prior year period reflecting market appreciation and an increase in incentive fees from CLO unwinds, partially offset by net outflows, foreign exchange translation and a $28 million decrease related to the transition of advisory accounts to share classes without 12b-1 fees. The Asset Management segment revenue related to 12b-1 fees is eliminated on a consolidated basis.
Management and financial advice fees increased $54 million, or 3%, to $1.9 billion for the nine months ended September 30, 2017 compared to $1.8 billion for the prior year period driven by market appreciation and an increase in incentive fees fromCLOunwinds,partiallyoffsetbycumulativenetoutflowsfromformerparent-related assetsandhigher fee yielding retail funds and a $24 million negative foreign currency translation impact. Our average weighted equity index, which is a proxyforequity movementsonAUM,increased16%for the nine months ended September 30, 2017comparedto theprioryear period.
Distribution fees decreased $19 million, or 5%, to $344 million for the nine months ended September 30, 2017 compared to $363 million for the prior year period due to cumulative net outflows and a $28 million decrease related to the transition of advisory accounts to share classes without 12b-1 fees, partially offset by market appreciation.
Expenses
Total expenses decreased $25 million, or 1%, to $1.7 billion for the nine months ended September 30, 2017 compared to $1.8 billion for the prior year period due to lower distribution expenses and general and administrative expense.
Distribution expenses decreased $12 million, or 2%, to $750 million for the nine months ended September 30, 2017 compared to $762 million for the prior year period due to lower compensation driven by cumulative net outflows and a decrease related to the transition of advisory accounts to share classes without 12b-1 fees, partially offset by market appreciation. The Asset Management segment expense related to 12b-1 fees is eliminated on a consolidated basis.
General and administrative expense decreased $12 million, or 1%, to $948 million for the nine months ended September 30, 2017 compared to $960 million for the prior year period primarily due to a $20 million benefithigher level of average AUM from the impactacquisition of foreign exchange, a $9the BMO Global Asset Management (EMEA) business, equity market appreciation and cumulative net inflows, as well as higher performance fees.
Net Revenues
Management and financial advice fees increased $185 million, expense inor 26%, for the three months ended March 31, 2022 compared to the prior year period from the resolution of a legacy legal matter relatedprimarily due to the hedge fundacquired BMO Global Asset Management (EMEA) business, $53 million of higher performance fees, higher average equity markets, and the cumulative impact from net inflows.
Expenses
Distribution expenses increased $9 million, or 3%, for the three months ended March 31, 2022 compared to the prior year period primarily reflecting higher average equity markets.
General and administrative expense increased $123 million, or 38%, for the three months ended March 31, 2022 compared to the prior year period primarily reflecting the operating expenses of the acquired BMO Global Asset Management (EMEA) business and continued expense management, partially offset by higher performance-based compensation.performance fee related compensation expenses.
61
Annuities


AMERIPRISE FINANCIAL, INC. 
Retirement & Protection Solutions
The following table presents the results of operations of our AnnuitiesRetirement & Protection Solutions segment on an adjusted operating basis:
 Nine Months Ended September 30, Change
2017 2016
(in millions)  
Revenues
Management and financial advice fees$573
 $549
 $24
 4 %
Distribution fees270
 260
 10
 4
Net investment income527
 573
 (46) (8)
Premiums84
 89
 (5) (6)
Other revenues407
 375
 32
 9
Total revenues1,861
 1,846
 15
 1
Banking and deposit interest expense
 
 
 
Total net revenues1,861
 1,846
 15
 1
Expenses
Distribution expenses314
 316
 (2) (1)
Interest credited to fixed accounts357
 360
 (3) (1)
Benefits, claims, losses and settlement expenses311
 628
 (317) (50)
Amortization of deferred acquisition costs135
 159
 (24) (15)
Interest and debt expense26
 24
 2
 8
General and administrative expense156
 157
 (1) (1)
Total expenses1,299
 1,644
 (345) (21)
Operating earnings$562
 $202
 $360
 NM
NM  Not Meaningful.

AMERIPRISE FINANCIAL, INC. 

Three Months Ended March 31,Change
20222021
(in millions)
Revenues
Management and financial advice fees$218 $222 $(4)(2)%
Distribution fees112 116 (4)(3)
Net investment income114 126 (12)(10)
Premiums, policy and contract charges325 323 
Other revenues—  —
Total revenues772 787 (15)(2)
Banking and deposit interest expense— — —  —
Total net revenues772 787 (15)(2)
Expenses
Distribution expenses119 129 (10)(8)
Interest credited to fixed accounts96 96 —  —
Benefits, claims, losses and settlement expenses230 234 (4)(2)
Amortization of deferred acquisition costs53 63 (10)(16)
Interest and debt expense10 (1)(10)
General and administrative expense74 72 
Total expenses581 604 (23)(4)
Adjusted operating earnings$191 $183 $%
Our AnnuitiesRetirement & Protection Solutions segment pretax adjusted operating income,earnings, which excludes net realized investment gains or losses (net of the related DSIC and DAC amortization)amortization, unearned revenue amortization and the reinsurance accrual), the market impact on non-traditional long-duration products (including variable annuity guaranteed benefits (netcontracts and IUL contracts, net of hedges and the related DSIC and DAC amortization)amortization, unearned amortization and the reinsurance accrual), mean reversion related impacts, and block transfer reinsurance transaction impacts increased $360$8 million, to $562 millionor 4%, for the ninethree months ended September 30, 2017March 31, 2022 compared to $202 million for the prior year period primarily due to the impact of unlocking, equity market appreciation and the impact on DAC, DSIC and reserves for insurance features in non-traditional long-duration contracts from actual versus expected market performance based on our view of bond and equity performance, partially offset by lower investment yields and a $21 million negative impact from changes in assumptions in the prior year unlocking process that resulted in ongoing increases to living benefit reserves.
The impact on DAC, DSIC and reserves for insurance features in non-traditional long-duration contracts from actual versus expected market performance based on our view of bond and equity performance was a benefit of $61 million ($25 million for DAC, $6 million for DSIC and $30 million for insurance features in non-traditional long duration contracts) for the nine months ended September 30, 2017 reflecting favorable equity market and bond fund returns compared to a benefit of $5 million ($3 million for DAC, $1 million for DSIC and $1 million for insurance features in non-traditional long duration contracts) for the prior year period.
Net Revenues
Net revenues, which exclude net realized investment gains or losses, increased $15 million, orVariable annuity account balances decreased 1%, to $1.9$85.8 billion for the nine months ended September 30, 2017as of March 31, 2022 compared to $1.8 billion for the prior year period due to equity market appreciation and an increase in variable annuity rider fees,net outflows of $1.9 billion, partially offset by lower investment yields and net outflows in fixed and variable annuities.
Management and financial advice fees increased $24 million, or 4%, to $573 million for the nine months ended September 30, 2017market appreciation. Variable annuity sales decreased 27% compared to $549 million for the prior year period due to higher fees onreflecting a decrease in sales of variable annuities drivenwith living benefit guarantees. The risk profile of our in force block continues to improve, with account values with living benefit riders down to 60% as of March 31, 2022 compared to 63% a year ago. This trend is expected to continue and meaningfully shift the mix of business away from products with living benefit guarantees over time.
We continue to optimize our risk profile and shift our business mix to lower risk offerings. During the fourth quarter of 2021, we made the decision to discontinue new sales of substantially all of our variable annuities with living benefit guarantees at the end of 2021, with a full exit by higher average separate account balances. Average variable annuity account balances increased $2.8 billion, or 4%, frommid-2022. In addition, we discontinued new sales of our universal life insurance with secondary guarantees and our single-pay fixed universal life with a long term care rider products at the prior year period due to market appreciation, partially offset by net outflows.end of 2021.
Net Revenues
Net investment income, which excludes net realized investment gains or losses, decreased $46$12 million, or 8%10%, to $527 million for the ninethree months ended September 30, 2017March 31, 2022 compared to $573 million for the prior year period primarily reflecting a decrease of approximately $34 million from lower earned interest rates and approximately $12 million from lower invested assets due to fixed annuity net outflows.
Other revenues increased $32 million, or 9%, to $407 million for the nine months ended September 30, 2017 compared to $375 million for the prior year period due to higher fees from variable annuity guarantee sales in the prior year where the fees start on the first anniversary date and higher average fee rates.
Expenses
Total expenses, which exclude the market impact on variable annuity guaranteed benefits (net of hedges and the related DSIC and DAC amortization) and the DAC and DSIC offset to net realized investment gains or losses, decreased $345 million, or 21%, to $1.3 billion for the nine months ended September 30, 2017 compared to $1.6 billion for the prior year period primarily due to lower yields on the impactinvestment portfolio.
Expenses
Distribution expenses decreased $10 million, or 8%, for the three months ended March 31, 2022 compared to the prior year period primarily reflecting decreased variable annuity sales.
Amortization of unlocking.
Benefits, claims, losses and settlement expenses,DAC, which excludeexcludes mean reversion related impacts, the DAC offset to the market impact on variable annuity guaranteed benefits (net of hedgescontracts and the related DSIC amortization) and the DSIC offset to net realized investment gains or losses, decreased $317 million, or 50%, to $311 million for the nine months ended September 30, 2017 compared to $628 million for the prior year period primarily reflecting the following items:
The impact of unlocking was a $119 million benefit for the nine months ended September 30, 2017 compared to a $197 million expense for the prior year period. The unlocking impact for the nine months ended September 30, 2017 primarily reflected a benefit from updates to market-related inputs to our living benefit valuation. The unlocking impact for the prior year period primarily reflected low interest rates and an unfavorable impact from persistency on living benefit reserves, partially offset by a benefit from updates to withdrawal utilization and fee assumptions, as well as market-related inputs related to our living benefit valuation.
The impact on DSIC and reserves for insurance features in non-traditional long-durationIUL contracts from actual versus expected market performance based on our view of bond and equity performance was a benefit of $36 million for the nine months ended September 30, 2017 reflecting favorable equity market and bond fund returns compared to a benefit of $2 million for the prior year period.
A $24 million increase in expense related to higher reserve funding driven by the impact of higher fees from variable annuity guarantee sales in the prior year where the fees start on the first anniversary date.
A $21 million negative impact from changes in assumptions in the prior year unlocking process that resulted in ongoing increases to living benefit reserves.
Amortization of DAC decreased $24 million, or 15%, to $135 million for the nine months ended September 30, 2017 compared to $159 million for the prior year period primarily reflecting the following items:
The impact of unlocking was a benefit of $1 million for the nine months ended September 30, 2017 compared to an expense of $18 million for the prior year period. The impact of unlocking for the nine months ended September 30, 2017 primarily

AMERIPRISE FINANCIAL, INC. 

reflected a $10 million benefit from a correction related to a variable annuity model assumption and slightly higher interest rates, largely offset by updates to market-related inputs to the living benefit valuation. The impact of unlocking in the prior year period primarily reflected low interest rates that more than offset benefits from persistency on annuity contracts without living benefits.
The impact on DAC from actual versus expected market performance based on our view of bond and equity performance was a benefit of $25 million for the nine months ended September 30, 2017 reflecting favorable equity market and bond fund returns compared to a benefit of $3 million for the prior year period.
The negative impact on DAC from higher than expected lapses on variable annuities was $14 million.
Protection
The following table presents the results of operations of our Protection segment on an operating basis:
 Nine Months Ended September 30, Change
2017 2016
(in millions)  
Revenues
Management and financial advice fees$35
 $38
 $(3) (8)%
Distribution fees74
 72
 2
 3
Net investment income253
 247
 6
 2
Premiums896
 959
 (63) (7)
Other revenues258
 377
 (119) (32)
Total revenues1,516
 1,693
 (177) (10)
Banking and deposit interest expense
 
 
 
Total net revenues1,516
 1,693
 (177) (10)
Expenses
Distribution expenses50
 50
 
 
Interest credited to fixed accounts138
 130
 8
 6
Benefits, claims, losses and settlement expenses888
 1,015
 (127) (13)
Amortization of deferred acquisition costs70
 107
 (37) (35)
Interest and debt expense19
 18
 1
 6
General and administrative expense182
 183
 (1) (1)
Total expenses1,347
 1,503
 (156) (10)
Operating earnings$169
 $190
 $(21) (11)%
Our Protection segment pretax operating earnings, which excludes net realized investment gains or losses (net of the related DAC amortization, unearned revenue amortization and the reinsurance accrual) and the market impact on indexed universal life benefits (net of hedges and the related DAC amortization, unearned revenue amortization and the reinsurance accrual), decreased $21 million, or 11%, to $169 million for the nine months ended September 30, 2017 compared to $190 million for the prior year period primarily due to the impact of unlocking and the low interest rate environment, partially offset by improved auto and home results.
Net Revenues
Net revenues, which exclude net realized investment gains or losses (net of unearned revenue amortization and the reinsurance accrual) and the unearned revenue amortization and the reinsurance accrual offset to the market impact on indexed universal life benefits, decreased $177 million, or 10%, to $1.5 billion for the nine months ended September 30, 2017 compared to $1.7 billion for the prior year period primarily due to the impact of unlocking and a decrease in premiums.
Premiums decreased $63 million, or 7%, to $896 million for the nine months ended September 30, 2017 compared to $959 million for the prior year period primarily reflecting higher ceded premiums for our auto and home business due to new reinsurance arrangements we entered into at the beginning of the year to reduce risk.
Other revenues decreased $119 million, or 32%, to $258 million for the nine months ended September 30, 2017 compared to $377 million for the prior year period due to the impact of unlocking. Other revenues for the nine months ended September 30, 2017 included a $47 million unfavorable impact from unlocking compared to a $64 million favorable impact in the prior year period. The primary driver of the unlocking impact to other revenues for the nine months ended September 30, 2017 was a negative impact from lower projected gains on reinsurance contracts resulting from favorable mortality experience. The primary driver of the unlocking

AMERIPRISE FINANCIAL, INC. 

impact to other revenues for the prior year period was a positive impact from higher projected gains on reinsurance contracts resulting from unfavorable mortality experience.
Expenses
Total expenses, which exclude the market impact on indexed universal life benefits (net of hedges and the related DAC amortization) and the DAC offset to net realized investment gains or losses, decreased $156 million, or 10%, to $1.3 billion for the nine months ended September 30, 2017 compared to $1.5 billion for the prior year period due to the impact of unlocking and a decrease in auto and home expenses.
Benefits, claims, losses and settlement expenses decreased $127 million, or 13%, to $888$10 million for the ninethree months ended September 30, 2017March 31, 2022 compared to $1.0 billion for the prior year period due to the impact of unlocking and an $84 million decrease in auto and home expenses reflecting the impact of new reinsurance arrangements and a lower non-catastrophe loss ratio, partially offset by higher gross catastrophe losses. The unlocking impact for the nine months ended September 30, 2017 was a $14 million benefit and primarily reflected favorable mortality experience on life insurance contracts. The unlocking impact for the prior year period was a $40 million expense and primarily reflected low interest rates and unfavorable mortality experience. Catastrophe losses, net of the impact of reinsurance, were $84 million for the nine months ended September 30, 2017 compared to $89 million for the prior year period. The expanded reinsurance program resulted in ceded losses of approximately $82 million for the nine months ended September 30, 2017.
Amortization of DAC decreased $37 million, or 35%, to $70 million for the nine months ended September 30, 2017 compared to $107 million for the prior year period primarily reflecting the impact of unlocking, as well as lower DAC amortization on our auto and home business. The unlocking impact for the nine months ended September 30, 2017 was a benefit of $13 million and primarily reflected improved persistency and mortality on life insurance contracts. The unlocking impact for the prior year period was an expense of $7 million.than expected client exit rates.
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AMERIPRISE FINANCIAL, INC. 
Corporate & Other
The following table presents the results of operations of our Corporate & Other segment on an adjusted operating basis:
Three Months Ended March 31,Change
20222021
(in millions)
Revenues
Net investment income$33 $100 $(67)(67)%
Premiums, policy and contract charges24 24 —  —
Other revenues59 15 44   NM  
Total revenues116 139 (23)(17)
Banking and deposit interest expense— — —  —
Total net revenues116 139 (23)(17)
Expenses
Distribution expenses(1)(2)50
Interest credited to fixed accounts61 61 —  —
Benefits, claims, losses and settlement expenses54 13 41   NM  
Amortization of deferred acquisition costs(1)(25)
Interest and debt expense16 15 
General and administrative expense59 69 (10)(14)
Total expenses192 160 32 20 
Adjusted operating loss$(76)$(21)$(55)  NM  
NM  Not Meaningful.
 Nine Months Ended September 30, Change
2017 2016
(in millions)  
Revenues
Net investment income$79
 $94
 $(15) (16)%
Premiums81
 81
 
 
Other revenues4
 4
 
 
Total revenues164
 179
 (15) (8)
Banking and deposit interest expense2
 1
 1
 NM
Total net revenues162
 178
 (16) (9)
Expenses
Distribution expenses(7) (39) 32
 82
Benefits, claims, losses and settlement expenses239
 219
 20
 9
Amortization of deferred acquisition costs
 63
 (63) NM
Interest and debt expense20
 21
 (1) (5)
General and administrative expense202
 185
 17
 9
Total expenses454
 449
 5
 1
Operating loss$(292) $(271) $(21) (8)%
NM  Not Meaningful.
Our Corporate & Other segment includes our closed blocks of LTC insurance and fixed annuity and fixed indexed annuity (“FA”) business.
Our Corporate & Other segment pretax adjusted operating loss excludes net realized investment gains or losses, the market impact on fixed deferred annuity contracts (net of hedges and the related DAC amortization), the market impact of hedges to offset interest rate and currency changes on unrealized gains or losses for certain investments, block transfer reinsurance transaction impacts, gain or loss on disposal of a business that is not considered discontinued operations, integration and restructuring charges, and the impact of consolidating CIEs. Our Corporate & Other segment pretax adjusted operating loss increased $55 million, for the three months ended March 31, 2022 compared to the prior year period.
LTC insurance had a pretax adjusted operating earnings of $1 million for the three months ended March 31, 2022 compared to pretax adjusted operating earnings of $46 million for the prior year period reflecting the return to more normalized results compared to the COVID-19 related impacts in the year ago period.
FA business had a pretax adjusted operating loss of $5 million for the three months ended March 31, 2022 compared to a pretax adjusted operating loss of $4 million. Fixed deferred annuity account balances declined 4% to $7.5 billion as of March 31, 2022 compared to the prior year period as policies continue to lapse and the discontinuance of new sales of fixed deferred annuities. During the third quarter of 2021, we closed on a transaction to reinsure RiverSource Life’s fixed deferred and immediate annuity policies.
Net Revenues
Net investment income, which excludes net realized investment gains or losses, the market impact of hedges to offset interest rate and currency changes on unrealized gains or losses for certain investments, block transfer reinsurance transaction impacts, integration and restructuring charges, and the impact of consolidating CIEs. Our Corporate & Other segment pretax operating loss increased $21CIEs, decreased $67 million, or 8%67%, to $292 million for the ninethree months ended September 30, 2017March 31, 2022 compared to $271 million for the prior year period primarily reflecting lower average invested assets due to the sale of investments to a decrease in netreinsurer as a result of the fixed deferred and immediate annuity reinsurance transaction and a $15 million gain on a strategic investment income, an increase in general and administrative expense and LTC loss recognition of $57 million for the third quarter of 2017, partially offset by LTC loss recognition of $31 million in the prior year period and a $29period.
Other revenues increased $44 million increase in LTC reserves in the prior year period from a correction related to our claim utilization assumption.

AMERIPRISE FINANCIAL, INC. 

Net investment income decreased $15 million, or 16%, to $79$59 million for the ninethree months ended September 30, 2017 compared to $94 million for the prior year period primarily due to higher amortization relating to an increase in low income housing investments and the impact of interest allocation between subsidiaries.
Distribution expenses increased $32 million to a benefit of $7 million for the nine months ended September 30, 2017 compared to a benefit of $39 million for the prior year period. Distribution expenses for the prior year period included a $27 million benefit related to the write-off of the deferred reinsurance liability in connection with loss recognition on LTC insurance products.
Benefits, claims, losses and settlement expenses increased $20 million, or 9%, to $239 million for the nine months ended September 30, 2017 compared to $219 million for the prior year period primarily due to a $57 million expense from loss recognition on LTC insurance products in the third quarter of 2017, partially offset by a $29 million increase in LTC reserves in the prior year period from a correction related to our claim utilization assumption. The LTC loss recognition in the third quarter of 2017 was primarily due to unfavorable morbidity experience, partially offset by premium increases.
Amortization of DAC decreased $63 millionMarch 31, 2022 compared to the prior year period primarily reflecting the write-off of DAC inyield on deposit receivables arising from reinsurance transactions.
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Expenses
Benefits, claims, losses and settlement expenses, which excludes DSIC offset to net realized investment gains or losses, increased $41 million, for the third quarter of 2016 in connection withthree months ended March 31, 2022 compared to the loss recognitionprior year period primarily reflecting more normalized claims on LTC insurance, products.which benefited from COVID-19 related impacts in the prior year period.
General and administrative expense increased $17decreased $10 million, or 9%14%, to $202 million for the ninethree months ended September 30, 2017March 31, 2022 compared to $185 million for the prior year period primarily due to higher performance-basedreflecting the unfavorable mark-to-market impact on share-based compensation and a $9 million expense related to the renegotiation of a vendor arrangement, partially offset by a $14 million expense in the prior year period from the resolution of a legacy legal matter related to the hedge fund business.period.
Market Risk
Our primary market risk exposures are interest rate, equity price, foreign currency exchange rate and credit risk. Equity price and interest rate fluctuations can have a significant impact on our results of operations, primarily due to the effects they have on the asset management and other asset-based fees we earn, the spread income generated on our fixed deferred annuities, fixed insurance, brokerage client cash balances, banking deposits, face-amount certificate products, and the fixed portion of our variable annuities and variable insurance contracts, the value of DAC and DSIC assets, the value of liabilities for guaranteed benefits associated with our variable annuities and the value of derivatives held to hedge these benefits.
Our earnings from fixed deferred annuities, fixed insurance, and the fixed portion of variable annuities and variable insurance contracts, and fixed deferred annuities are based upon the spread between rates earned on assets held and the rates at which interest is credited to accounts. We primarily invest in fixed rate securities to fund the rate credited to clients. We guarantee an interest rate to the holders of these products. Investment assets and client liabilities generally differ as it relates to basis, repricing or maturity characteristics. Rates credited to clients’ accounts generally reset at shorter intervals than the yield on the underlying investments. Therefore, in an increasing interest rate environment, higher interest rates may be reflected in crediting rates to clients sooner than in rates earned on invested assets, which could result in a reduced spread between the two rates, reduced earned income and a negative impact on pretax income. However, the current low interest rate environment is resulting in interest rates below the level of some of our liability guaranteed minimum interest rates (“GMIRs”). Hence, a modest rise in interest rates would not necessarily result in changes to all the liability credited rates while projected asset purchases would capture the full increase in interest rates. This dynamic would result in widening spreads under a modestly rising rate scenario given the current relationship between the current level of interest rates and the underlying GMIRs on the business.
As a result of the lowcurrent interest rate environment, our current reinvestment yields are generally lower than the current portfolio yield. We expect our portfolio income yields to continue to decline in future periods ifshould interest rates remain comparatively low. The carrying value and weighted average yield of non-structured fixed maturity securities and commercial mortgage loans that may generate proceeds to reinvest through September 30, 2019March 31, 2024 due to prepayment, maturity or call activity at the option of the issuer, excluding securities with a make-whole provision, were $4.9$2.5 billion and 4.4%1.9%, respectively, as of September 30, 2017.March 31, 2022. In addition, residential mortgage-backedmortgage backed securities, which arecould be subject to prepayment risk as a result ofif the low interest rate environment continues, totaled $6.8$11.7 billion and had a weighted average yield of 2.7%1.8% as of September 30, 2017.March 31, 2022. While these amounts represent investments that could be subject to reinvestment risk, it is also possible that these investments will be used to fund liabilities or may not be prepaid and will remain invested at their current yields. In addition to the interest rate environment, the mix of benefit payments versus product sales as well as the timing and volumes associated with such mix may impact our investment yield. Furthermore, reinvestment activities and the associated investment yield may also be impacted by corporate strategies implemented at management’s discretion. The average yield for investment purchases during the ninethree months ended September 30, 2017March 31, 2022 was approximately 2.8%2.4%.
The reinvestment of proceeds from maturities, calls and prepayments at rates below the current portfolio yield, which may be below the level of some liability GMIRs, will have a negative impact to future operating results. To mitigate the unfavorable impact that the low interest rate environment has on our spread income, we assess reinvestment risk in our investment portfolio and monitor this risk in accordance with our asset/liability management framework. In addition, we may reduce the crediting rates on our fixed products when warranted, subject to guaranteed minimums.
In addition to the fixed rate exposures noted above, RiverSource Life also has the following variable annuity guarantee benefits: guaranteed minimum withdrawal benefits (“GMWB”), guaranteed minimum accumulation benefits (“GMAB”), guaranteed minimum

AMERIPRISE FINANCIAL, INC. 

death benefits (“GMDB”) and guaranteed minimum income benefits (“GMIB”). Each of these guaranteed benefits guarantees payouts to the annuity holder under certain specific conditions regardless of the performance of the underlying invested assets.
The variable annuity guarantees continue to be managed by utilizing a hedging program which attempts to match the sensitivity of the assets with the sensitivity of the liabilities. This approach works with the premise that matched sensitivities will produce a highly effective hedging result. Our comprehensive hedging program focuses mainly on first order sensitivities of assets and liabilities: Equity Market Level (Delta), Interest Rate Level (Rho) and Volatility (Vega). Additionally, various second order sensitivities are managed. We use various index options, across the term structure, interest rate swaps and swaptions, total return swaps and futures to manage the risk exposures. The exposures are measured and monitored daily, and adjustments to the hedge portfolio are made as necessary.
We have a macro hedge program to provide protection against the statutory tail scenario risk arising from variable annuity reserves on our statutory surplus and to cover some of the residual risks not covered by other hedging activities. We assess the residual risk under
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AMERIPRISE FINANCIAL, INC. 
a range of scenarios in creating and executing the macro hedge program. As a means of economically hedging these risks, we may use a combination of futures, options, interest rate swaptions and/or swaps.swaps and swaptions. Certain of the macro hedge derivatives used contain settlement provisions linked to both equity returns and interest rates; the remaining are interest rate contracts or equity contracts. The macro hedge program could result in additional earnings volatility as changes in the value of the macro hedge derivatives, which are designed to reduce statutory capital volatility, may not be closely aligned to changes in the variable annuity guarantee embedded derivatives.
To evaluate interest rate and equity price risk we perform sensitivity testing which measures the impact on pretax income from the sources listed below for a 12-month period following a hypothetical 100 basis point increase in interest rates or a hypothetical 10% decline in equity prices. The interest rate risk test assumes a sudden 100 basis point parallel shift in the yield curve, with rates then staying at those levels for the next 12 months. The equity price risk test assumes a sudden 10% drop in equity prices, with equity prices then staying at those levels for the next 12 months. In estimating the values of variable annuity riders, equityannuities, indexed annuities, stock market certificates, indexed universal life (“IUL”) insurance and the associated hedge assets, we assume no change in implied market volatility despite the 10% drop in equity prices.
The following tables present our estimate of the impact on pretax income from the above defined hypothetical market movements as of September 30, 2017:March 31, 2022:
Equity Price Decline 10%Equity Price Exposure to Pretax Income
Before Hedge ImpactHedge ImpactNet Impact
 (in millions)
Asset-based management and distribution fees (1)
$(339)$$(335)
DAC and DSIC amortization (2)(3)
(27)— (27)
Variable annuities:   
GMDB and GMIB (3)
(12)— (12)
GMWB (3)
(499)556 57 
GMAB(27)28 
Structured variable annuities397 (365)32 
DAC and DSIC amortization (4)
N/AN/A(12)
Total variable annuities(141)219 66 
Macro hedge program (5)
— 119 119 
Certificates— — — 
IUL insurance66 (71)(5)
Total$(441)$271 $(182)(6)
N/A  Not Applicable.
Equity Price Decline 10% Equity Price Exposure to Pretax Income
Before Hedge Impact Hedge Impact Net Impact
  (in millions)
Asset-based management and distribution fees (1)
 $(261) $6
 $(255)
DAC and DSIC amortization (2) (3)
 (129) 
 (129)
Variable annuity riders:  
  
  
GMDB and GMIB (3)
 (29) 
 (29)
GMWB (3) (4)
 (379) 233
 (146)
GMAB (25) 26
 1
DAC and DSIC amortization (4)
 N/A
 N/A
 (3)
Total variable annuity riders (433) 259
 (177)
Macro hedge program (5)
 
 43
 43
Equity indexed annuities 1
 (1) 
Certificates 3
 (3) 
Indexed universal life insurance 66
 (49) 17
Total $(753) $255
 $(501)
Interest Rate Increase 100 Basis PointsInterest Rate Exposure to Pretax Income
Before Hedge ImpactHedge ImpactNet Impact
(in millions)
Asset-based management and distribution fees (1)
$(63)$— $(63)
Variable annuities:   
GMWB1,031 (1,263)(232)
GMAB(12)(3)
Structured variable annuities(20)117 97 
DAC and DSIC amortization (4)
N/AN/A21 
Total variable annuities1,020 (1,158)(117)
Macro hedge program (5)
— (1)(1)
Fixed annuities, fixed insurance and fixed portion of variable annuities and variable insurance products53 — 53 
Banking deposits57 — 57 
Brokerage client cash balances230 — 230 
Certificates12 — 12 
IUL insurance19 21 
Total$1,328 $(1,157)$192 
N/A  Not Applicable.

AMERIPRISE FINANCIAL, INC. 

Interest Rate Increase 100 Basis Points Interest Rate Exposure to Pretax Income
Before Hedge Impact Hedge Impact Net Impact
  (in millions)
Asset-based management and distribution fees (1)
 $(50) $
 $(50)
Variable annuity riders:  
  
  
GMDB and GMIB 
 
 
GMWB 983
 (1,089) (106)
GMAB 21
 (23) (2)
DAC and DSIC amortization (4)
 N/A
 N/A
 18
Total variable annuity riders 1,004
 (1,112) (90)
Macro hedge program (5)
 
 (2) (2)
Fixed annuities, fixed insurance and fixed portion of variable annuities and variable insurance products 99
 
 99
Brokerage client cash balances 115
 
 115
Certificates 
 
 
Indexed universal life insurance 93
 2
 95
Total $1,261
 $(1,112) $167
N/A  Not Applicable.
(1) Excludes incentive income which is impacted by market and fund performance during the period and cannot be readily estimated.
(2)Market impact on DAC and DSIC amortization resulting from lower projected profits.
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AMERIPRISE FINANCIAL, INC. 
(3) In estimating the impact to pretax income on DAC and DSIC amortization resulting from lower projected profits, we have not changedand additional insurance benefit reserves, our assumed equity asset growth rates. This is a significantly more conservative estimate than if we assumedrates reflect what management followswould follow in its mean reversion guideline and increased near-term rates to recover the drop in equity values over a five-year period. We make this same conservative assumption in estimating the impact from GMDB and GMIB riders and the life contingent benefits associated with GMWB.guidelines.
(4)Market impact on DAC and DSIC amortization related to variable annuity riders is modeled net of hedge impact.
(5)The market impact of the macro hedge program is modeled net of any related impact to DAC and DSIC amortization.
(6) Represents the net impact to pretax income. The estimated net impact to pretax adjusted operating income is approximately $(335) million.
The above results compare to an estimated negative net impact to pretax income of $490$190 million related to a 10% equity price decline and an estimated positive net impact to pretax income of $297$80 million related to a 100 basis point increase in interest rates as of December 31, 2016.2021. The change in interest rate exposure fromas of March 31, 2022 compared to December 31, 2016 is2021 was driven by variable annuity riders, specifically GMWB, primarily the result ofdue to changes in market conditions.rates.
Net impacts shown in the above table from GMWB and GMAB riders result largely from differences between the liability valuation basis and the hedging basis. Liabilities are valued using fair value accounting principles, with risk margins incorporated in contractholder behavior assumptions and with discount rates increased to reflect a current market estimate of our risk of nonperformance specific to these liabilities. Our hedging is based on our determination of economic risk, which excludes certain items in the liability valuation including the nonperformance spread risk.
Actual results couldwill differ materially from those illustrated above as they are based on a number of estimates and assumptions. These include assuming that implied market volatility does not change when equity prices fall by 10%, that management does not increase assumed equity asset growth rates to anticipate recovery of the drop in equity values when valuing DAC, DSIC and GMDB and GMIB liability values and that the 100 basis point increase in interest rates is a parallel shift of the yield curve. Furthermore, we have not tried to anticipate changes in client preferences for different types of assets or other changes in client behavior, nor have we tried to anticipate all strategic actions management might take to increase revenues or reduce expenses in these scenarios.
The selection of a 100 basis point interest rate increase as well as a 10% equity price decline should not be construed as a prediction of future market events. Impacts of larger or smaller changes in interest rates or equity prices may not be proportional to those shown for a 100 basis point increase in interest rates or a 10% decline in equity prices.
Fair Value Measurements
We report certain assets and liabilities at fair value; specifically, separate account assets, derivatives, embedded derivatives properties held by our consolidated property funds, and most investments and cash equivalents. Fair value assumes the exchange of assets or liabilities occurs in orderly transactions and is not the result of a forced liquidation or distressed sale. We include actual market prices, or observable inputs, in our fair value measurements to the extent available. Broker quotes are obtained when quotes from pricing services are not available. We validate prices obtained from third parties through a variety of means such as: price variance analysis, subsequent sales testing, stale price review, price comparison across pricing vendors and due diligence reviews of vendors. See Note 1011 to the Consolidated Financial Statements for additional information on our fair value measurements.

AMERIPRISE FINANCIAL, INC. 

Fair Value of Liabilities and Nonperformance Risk
Companies are required to measure the fair value of liabilities at the price that would be received to transfer the liability to a market participant (an exit price). Since there is not a market for our obligations of our variable annuity riders, fixed deferred indexed annuities, structured variable annuities, and indexed universal lifeIUL insurance, we consider the assumptions participants in a hypothetical market would make to reflect an exit price. As a result, we adjust the valuation of variable annuity riders, fixed deferred indexed annuities, structured annuities, and indexed universal lifeIUL insurance by updating certain contractholder assumptions, adding explicit margins to provide for profit, risk, and expenses, and adjusting the rates used to discount expected cash flows to reflect a current market estimate of our nonperformance risk. The nonperformance risk adjustment is based on observable market data adjusted to estimate the risk of our life insurance company subsidiaries not fulfilling these liabilities. Consistent with general market conditions, this estimate resulted in a spread over the LIBOR swap curve as of September 30, 2017.March 31, 2022. As our estimate of this spread widens or tightens, the liability will decrease or increase. If this nonperformance credit spread moves to a zero spread over the LIBOR swap curve, the reduction to future net income would be approximately $213$420 million, net of DAC, DSIC, unearned revenue amortization, the reinsurance accrual and income taxes (calculated at the statutory tax rate of 35%21%), based on September 30, 2017March 31, 2022 credit spreads.
Liquidity and Capital Resources
Overview
We maintained substantial liquidity during the ninethree months ended September 30, 2017.March 31, 2022. At September 30, 2017March 31, 2022 and December 31, 2016,2021, we had $2.4$6.6 billion and $2.3$7.1 billion, respectively, in cash and cash equivalents excluding CIEs. On October 12, 2017, we entered intoCIEs and other restricted cash on a consolidated basis.
At March 31, 2022 and December 31, 2021, the parent company had $316 million and $841 million, respectively, in cash, cash equivalents, and unencumbered liquid securities. Liquid securities predominantly include U.S. government agency mortgage back securities. Additional sources of liquidity include a line of credit with an amendedaffiliate up to $729 million and restated credit agreement that provides for an unsecured revolving committed credit facility offor up to $750 million$1.0 billion that expires in October 2022. June 2026. Management’s estimate of liquidity available to the parent company in a volatile and uncertain economic environment as of March 31, 2022 was $1.5 billion which includes cash, cash equivalents, unencumbered liquid securities, the line of credit with an affiliate and a portion of the committed credit facility.
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Under the terms of the committed credit agreement for the facility, we maycan increase the amount of this facility upavailability to $1.0$1.25 billion upon satisfaction of certain approval requirements. This agreement replaced our unsecured revolving creditAvailable borrowings under this facility that was to expire in May 2020.are reduced by any outstanding letters of credit. At September 30, 2017,March 31, 2022, we had no outstanding borrowings under this credit facility and had $1 million of outstanding letters of credit. Our credit facility contains various administrative, reporting, legal and financial covenants. We wereremain in compliance with all such covenants at September 30, 2017.March 31, 2022.
We enter into short-termIn addition, we have access to collateralized borrowings, which may include repurchase agreements and Federal Home Loan Bank (“FHLB”) advances, to reduce reinvestment risk. Short-term borrowings allow us to receive cash to reinvest in longer-duration assets, while paying back the short-term debt with cash flows generated by the fixed income portfolio. The balance of repurchase agreements as of both September 30, 2017 and December 31, 2016 was $50 million, which is collateralized with agency residential mortgage backed securities and commercial mortgage backed securities from our investment portfolio.advances. Our subsidiary,subsidiaries, RiverSource Life Insurance Company (“RiverSource Life”), is a memberand Ameriprise Bank, FSB are members of the FHLB of Des Moines, which provides access to collateralized borrowings. WeAs of March 31, 2022 and December 31, 2021, we had $151 million$8.2 billion and $150 million of borrowings from$8.1 billion, respectively, under the FHLB facilities, of which $200 million was outstanding as of both March 31, 2022 and December 31, 2021, and is collateralized with commercial mortgage backed securities as of September 30, 2017 and December 31, 2016, respectively.residential mortgage backed securities. We believe cash flows from operating activities, available cash balances and our availability of revolver borrowings will be sufficient to fund our operating liquidity needs.needs and stress requirements.
There have been no material changes to our contractual obligations disclosed in our 2021 10-K.
We repaid $500 million principal amount of its 3.0% senior notes at maturity on March 22, 2022. See Note 10 to our Consolidated Financial Statements for further information about our long-term debt maturities.
We believe cash flows from operating activities, available cash balances, our availability of revolver borrowings and dividends from our subsidiaries will be sufficient to fund our short-term and long-term operating liquidity needs and stress requirements.
We continue to monitor and respond to the ongoing COVID-19 pandemic. Our risk management strategy is designed to provide proactive protection during stress events such as the current pandemic. We believe our process is working as intended, and our liquidity and capital resources have remained a source of balance sheet strength during the three months ended March 31, 2022.
Dividends from Subsidiaries
Ameriprise Financial is primarily a parent holding company for the operations carried out by our wholly ownedwholly-owned subsidiaries. Because of our holding company structure, our ability to meet our cash requirements, including the payment of dividends on our common stock, substantially depends upon the receipt of dividends or return of capital from our subsidiaries, particularly our life insurance subsidiary, RiverSource Life, our face-amount certificate subsidiary, Ameriprise Certificate Company (“ACC”), AMPF Holding Corporation, which is the parent company of our retail introducing broker-dealer subsidiary, Ameriprise Financial Services, Inc.LLC (“AFSI”AFS”) and our clearing broker-dealer subsidiary, American Enterprise Investment Services, Inc. (“AEIS”), our Auto and Home insurance subsidiary, IDS Property Casualty Insurance Company (“IDS Property Casualty”), doing business as Ameriprise Auto & Home Insurance, our transfer agent subsidiary, Columbia Management Investment Services Corp., our investment advisory company, Columbia Management Investment Advisers, LLC, andTAM UK International Holdings Ltd, which includes Threadneedle Asset Management Holdings Sàrl.rl and Ameriprise International Holdings GmbH within its organizational structure, and Columbia Threadneedle Investments UK International Ltd. The payment of dividends by many of our subsidiaries is restricted and certain of our subsidiaries are subject to regulatory capital requirements.

AMERIPRISE FINANCIAL, INC. 

Actual capital and regulatory capital requirements for our wholly owned subsidiaries subject to regulatory capital requirements were as follows:
Actual CapitalRegulatory Capital Requirements
March 31, 2022December 31, 2021March 31, 2022December 31, 2021
(in millions)
RiverSource Life (1)(2)
$3,131 $3,419 N/A$502 
RiverSource Life of NY (1)(2)
273 310 N/A42 
ACC (4)(5)
299 304 $278 283 
TAM UK International Holdings Ltd (6)
321 330 241 248 
Ameriprise Bank, FSB (4) (7)
985 853 674 589 
AFS (3)(4)
128 103 ##
Ameriprise Captive Insurance Company (3)
38 39 13 10 
Ameriprise Trust Company (3)
49 47 42 44 
AEIS (3)(4)
162 155 30 29 
RiverSource Distributors, Inc. (3)(4)
11 10 ##
Columbia Management Investment Distributors, Inc. (3)(4)
19 14 ##
Columbia Threadneedle Investments UK International Ltd. (8)
337 348 165 170 
N/A  Not applicable as only required to be calculated annually.
#  Amounts are less than $1 million.
(1) Actual capital is determined on a statutory basis.
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AMERIPRISE FINANCIAL, INC. 
 Actual Capital Regulatory Capital 
Requirements
September 30, 2017 December 31, 2016September 30, 2017 December 31, 2016
 (in millions)
RiverSource Life(1)(2)
$2,737
 $3,052
 N/A
 $606
RiverSource Life of NY(1)(2)
306
 323
 N/A
 38
IDS Property Casualty(1)(3)
805
 800
 $216
 213
Ameriprise Insurance Company(1)(3)
48
 47
 3
 2
ACC(4)(5)
369
 335
 341
 317
Threadneedle Asset Management Holdings Sàrl(6)
424
 360
 169
 149
Ameriprise National Trust Bank(7)
23
 22
 10
 10
AFSI(3)(4)
126
 77
 #
 #
Ameriprise Captive Insurance Company(3)
54
 51
 10
 9
Ameriprise Trust Company(3)
30
 29
 26
 24
AEIS(3)(4)
115
 107
 21
 19
RiverSource Distributors, Inc.(3)(4)
13
 11
 #
 #
Columbia Management Investment Distributors, Inc.(3)(4)
17
 14
 #
 #
N/A  Not applicable.
#  Amounts are less than $1 million.
(2) Regulatory capital requirement is the company action level and is based on the statutory risk-based capital filing.
(1)
Actual capital is determined on a statutory basis.
(2)
Regulatory capital requirement is based on the statutory risk-based capital filing.
(3)
Regulatory capital requirement is based on the applicable regulatory requirement, calculated as of September 30, 2017 and December 31, 2016.
(4)
Actual capital is determined on an adjusted GAAP basis.
(5)
(3) Regulatory capital requirement is based on the applicable regulatory requirement, calculated as of March 31, 2022 and December 31, 2021.
(4) Actual capital is determined on an adjusted GAAP basis.
(5)ACC is required to hold capital in compliance with the Minnesota Department of Commerce and SEC capital requirements.
(6)
Actual capital and regulatory capital requirements are determined in accordance with U.K. regulatory legislation. The regulatory capital requirements at September 30, 2017 represent calculations at December 31, 2016 of the rule based requirements, as specified by FCA regulations.
(7)
Ameriprise National Trust Bank is required to maintain capital in compliance with the Office of the Comptroller of the Currency regulations and policies.
Our insurance companies’ statutory capital is calculated in accordance with the accounting practices prescribed or permitted by domiciliary state insurance regulators. RiverSource Life received approval from the Minnesota Department of Commerce to apply a permitted statutory accounting practice, effective July 1, 2017 through June 30, 2018,and SEC capital requirements.
(6) Actual capital and regulatory capital requirements are determined in accordance with U.K. regulatory legislation.
(7) Regulatory capital requirement is based on minimum requirements for certain derivative instruments used to economically hedgewell capitalized banks in accordance with the interest rate exposure of certain variable annuity products that do not qualify for statutory hedge accounting. The permitted practice is intended to mitigate the impact to statutory capital from the misalignment between variable annuity statutory reserves, which are not carried at fair value, and the fair value of derivatives used to economically hedge the interest rate exposure of non-life contingent living benefit guarantees. The permitted practice allows RiverSource Life to defer a portionOffice of the changeComptroller of the Currency (“OCC”).
(8) Actual capital and regulatory capital requirements are determined in fair value, net investment income and realized gains or losses generated from designated derivatives to the extent the amounts do not offset the current period interest-rate related change in the variable annuity statutory reserve liability. The deferred amount will be amortized over ten years using the straight-line methodaccordance with the ability to accelerate amortization at management’s discretion. There was no immediate impact to statutory capital at the effective date for the permitted statutory accounting practice. As of September 30, 2017, application of this permitted practice resulted in a decrease to RiverSource Life’s statutory capital of approximately $21 million.U.K. regulatory legislation.
In addition to the particular regulations restricting dividend payments and establishing subsidiary capitalization requirements, we take into account the overall health of the business, capital levels and risk management considerations in determining a dividend strategy for payments to our parent holding company from our subsidiaries, and in deciding to use cash to make capital contributions to our subsidiaries.
During the ninethree months ended September 30, 2017,March 31, 2022, the parent holding company received cash dividends or a return of capital from its subsidiaries of $1.3 billion$777 million (including $700$300 million from RiverSource Life) and contributed cash to its subsidiaries of $64 million.$129 million (including $95 million to Ameriprise Bank, FSB). During the ninethree months ended September 30, 2016,March 31, 2021, the parent holding company received cash dividends or a return of capital from its subsidiaries of $1.3 billion$621 million (including $800$250 million from RiverSource Life) and contributed cash to its subsidiaries of $135 million (including $75 million to IDS Property Casualty).

AMERIPRISE FINANCIAL, INC. 

$34 million.
In 2009, RiverSource Life established an agreement to protect its exposure to Genworth Life Insurance Company (“GLIC”) for its reinsured LTC. In 2016, substantial enhancements to this reinsurance protection agreement were finalized. The terms of these confidential provisions within the agreement have been shared, in the normal course of regular reviews, with our domiciliary regulator and rating agencies. ManagementGLIC is domiciled in Delaware so in the event GLIC were subjected to rehabilitation or insolvency proceedings, such proceedings would be located in (and governed by) Delaware laws. Delaware courts have a long tradition of respecting commercial and reinsurance affairs as well as contracts among sophisticated parties. Similar credit protections to what we have with GLIC have been tested and respected in Delaware and elsewhere in the United States, and as a result we believe our credit protections would be respected even in the unlikely event that GLIC becomes subject to rehabilitation or insolvency proceedings in Delaware. Accordingly, while no credit protections are perfect, we believe the correct way to think about the risks represented by our counterparty credit exposure to GLIC is not the full amount of the gross liability that GLIC reinsures, but a much smaller net exposure to GLIC (if any that might exist after taking into account our credit protections). Thus, management believes that thisour agreement and offsetting non LTC legacy arrangements with Genworth will enable RiverSource Life to recover on all net exposure in all material respects in the event of ana rehabilitation or insolvency of GLIC.
Dividends Paid to Shareholders and Share Repurchases
We paid regular quarterly dividends to our shareholders totaling $379$133 million and $368$129 million for the ninethree months ended September 30, 2017March 31, 2022 and 2016,2021, respectively. On October 24, 2017,April 25, 2022, we announced a quarterly dividend of $0.83$1.25 per common share. The dividend will be paid on November 17, 2017May 20, 2022 to our shareholders of record at the close of business on November 6, 2017.May 9, 2022.
In December 2015, ourAugust 2020, the Company’s Board of Directors authorized us to repurchase up to $2.5 billion of our common stock through December 31, 2017, which was exhausted inSeptember 30, 2022. In January 2022, the third quarter 2017. In April 2017, ourCompany’s Board of Directors authorized us to repurchase up to an additional $2.5$3.0 billion for the repurchase of ourthe Company’s common stock through June 30, 2019.March 31, 2024. As of September 30, 2017,March 31, 2022, we had $2.4$3.0 billion remaining under thisthese share repurchase authorization.authorizations. We intend to fund share repurchases through existing working capital, future earnings and other customary financing methods. The share repurchase programs doprogram does not require the purchase of any minimum number of shares, and depending on market conditions and other factors, these purchases may be commenced or suspended at any time without prior notice. Acquisitions under the share repurchase programsprogram may be made in the open market, through privately negotiated transactions or block trades or other means. During the ninethree months ended September 30, 2017,March 31, 2022, we repurchased a total of 8.01.4 million shares of our common stock at an average price of $129.76$299.14 per share.
Cash Flows
Cash flows of CIEs and restricted and segregated cash and cash equivalents are reflected in our cash flows provided by (used in) operating activities, investing activities and financing activities. Cash held by CIEs is not available for general use by Ameriprise Financial, nor is Ameriprise Financial cash available for general use by its CIEs. Cash and cash equivalents segregated under federal and other regulations is held for the exclusive benefit of our brokerage customers and is not available for general use by Ameriprise Financial.
Operating Activities
Net cash provided by operating activities decreased $843increased $1.4 billion to $409 million to $1.2 billion for the ninethree months ended September 30, 2017March 31, 2022 compared to $2.0net cash used in operating activities of $1.0 billion for the prior year period primarily due toreflecting a $186$882 million increase in policyholder account balances, future policy benefits and claims, net, a $324 million increase in net income taxes paid,and a $148$222 million decreaseincrease in cash from changes in other investments (primarily trading securities), and net cash outflows related to derivatives for the nine months ended September 30, 2017 compared to net cash inflows for the prior year period.brokerage deposits.
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AMERIPRISE FINANCIAL, INC. 
Investing Activities
Our investing activities primarily relate to our Available-for-Sale investment portfolio. Further, this activity is significantly affected by the net flows of our investment certificate, fixed annuity and universal life products reflected in financing activities.
Net cash used in investing activities decreased $261increased $856 million to $106 million$1.7 billion for the ninethree months ended September 30, 2017March 31, 2022 compared to $367$809 million for the prior year period primarily due toreflecting a $944$755 million decrease in cash used for purchases of Available-for-Sale securities and a $204 million increase in proceeds from maturities, sinking fund payments and calls of Available-for-Sale securities, a $727 million increase in cash used for purchases of Available-for-Sale securities, partially offset by a $357 million decrease in proceeds from sales, maturities and repayments of mortgage loans reflecting the sale of a portion of our consumer loans in 2016 and a $242$490 million decrease in net cash flows used related to changes in investments of CIEs.consolidated investment entities.
Financing Activities
Net cash used inprovided by financing activities increased $713$85 million to $1.3 billion$518 million for the ninethree months ended September 30, 2017March 31, 2022 compared to $573$433 million for the prior year period primarily due to the issuance of $500reflecting a $1.2 billion increase in banking deposits, a $399 million of long-term debt in 2016 and a $371 million decreasereduction in net cash inflows related tooutflows from investment certificates, partially offset by a $246$797 million decrease in borrowings by CIEs and a $500 million increase in repayments of long-term debt.
Contractual Commitments
There have been no material changes to our contractual obligations disclosed in our 2016 10-K. 
Off-Balance Sheet Arrangements
We provide asset management services to investment entities which are considered to be VIEs, such as CLOs, hedge funds, property funds and private equity funds, which are sponsored by us. We consolidate certain CLOs. We have determined that consolidation is not required for hedge funds, property funds and private equity funds, which are sponsored by us. Our maximum exposure to loss with respect to our investment in these non-consolidated entities is limited to our carrying value. We have no obligation to provide further financial or other support to these investment entities nor have we provided any support to these investment entities. See Note 3 to our Consolidated Financial Statements for additional information on our arrangements with these investment entities.

AMERIPRISE FINANCIAL, INC. 

Forward-Looking Statements
This report contains forward-looking statements that reflect management’s plans, estimates and beliefs. Actual results could differ materially from those described in these forward-looking statements. Examples of such forward-looking statements include: 
statements of the Company’s plans, intentions, positioning, expectations, objectives or goals, including those relating to asset flows, mass affluent and affluent client acquisition strategy, client retention and growth of our client base, financial advisor productivity, retention, recruiting and enrollments, the introduction, cessation, terms or pricing of new or existing products and services, acquisition integration, benefits and claims expenses, general and administrative costs, consolidated tax rate, return of capital to shareholders, debt repayment and excess capital position and financial flexibility to capture additional growth opportunities;
statements of the Company’s position, future performance and ability to pursue business strategy relative to the spread and impact of the COVID-19 pandemic and the related market, economic, client, governmental and healthcare system response; 
statements about the expected trend in the shift to lower-risk products, including the exit from variable annuities with living benefit riders and the discontinuance of new sales of universal life insurance with secondary guarantees;
statements about the outcomes from the application to convert Ameriprise Bank, FSB to a state-chartered bank and national trust bank or the anticipated deposit growth or impacts from possible future interest rate increases;
other statements about future economic performance, the performance of equity markets and interest rate variations and the economic performance of the United States and of global markets; and
statements of assumptions underlying such statements.
The words “believe,” “expect,” “anticipate,” “optimistic,” “intend,” “plan,” “aim,” “will,” “may,” “should,” “could,” “would,” “likely,” “forecast,” “on pace,track,“project”“project,” “continue,” “able to remain,” “resume,” “deliver,” “develop,” “evolve,” “drive,” “enable,” “flexibility,” “scenario,” “case” and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. Forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from such statements.
Such factors include, but are not limited to:
conditionsthe impacts on our business of the COVID-19 pandemic and the related economic, client, governmental and healthcare system responses;
market fluctuations and general economic and political factors, including volatility in the interest rate, credit default, equityU.S. and global market conditions, client behavior and foreign exchange environments, including volatility in the markets for our products;
changes in valuations, liquidityinterest rates and volatility;periods of low interest rates;
changesadverse capital and credit market conditions or any downgrade in and the adoption of relevant accounting standards and securities rating agency standards and processes, as well as changes in the litigation and regulatory environment, including ongoing legal proceedings and regulatory actions, the frequency and extent of legal claims threatened or initiated by clients, other persons and regulators, and developments in regulation and legislation, including the rules and regulations implemented or that may be implemented or modified in connection with the Dodd-Frank Wall Street Reform and Consumer Protection Act or in light of the U.S. Department of Labor rule and exemptions pertaining to the fiduciary status of investment advice providers to 401(k) plans, plan sponsors, plan participants and the holders of individual retirement or health savings accounts;our credit ratings;
investment management performance and distribution partner and consumer acceptance of the Company’s products;
effects of competition and our larger competitors’ economies of scale;
declines in our investment management performance;
our ability to compete in attracting and retaining talent, including financial advisors;
impairment, negative performance or default by financial institutions or other counterparties;
the financial services industry, including pricing pressure,ability to maintain our unaffiliated third-party distribution channels and the introductionimpacts of new products and services and sales of unaffiliated products;
changes in product distribution mixvaluation of securities and distribution channels;investments included in our assets;
changes to the Company’s reputation that may arise from employee or advisor misconduct, legal or regulatory actions, perceptionsdetermination of the financial services industry generally, improper managementamount of conflictsallowances taken on loans and investments;
the illiquidity of interest or otherwise;our investments;
effects of the Company’s capital structure, including indebtedness, limitationselimination of LIBOR on, subsidiaries to pay dividends, and the extent, manner, terms and timingvalue of, any share or debt repurchases management may effect as well as the opinions of rating agenciessecurities and other analystsassets and the reactions of market participantsliabilities tied to LIBOR;
failures by other insurers that lead to higher assessments we owe to state insurance guaranty funds;
failures or the Company’s regulators, advisors, distribution partners or customers in response to any change or prospect of change in any such opinion;
changes to the availability and cost of liquidity and the Company’s credit capacity that may arise due to shifts in market conditions, the Company’s credit ratings and the overall availability of credit;
risks of default, capacity constraint or repricing by issuers or guarantors of investments the Company owns ordefaults by counterparties to hedge, derivative, insuranceour reinsurance arrangements;
inadequate reserves for future policy benefits and claims or reinsurance arrangements or by manufacturers of products the Company distributes, experience for future redemptions and maturities;
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AMERIPRISE FINANCIAL, INC. 
deviations from the Company’s assumptions regarding such risks, the evaluations or the prospect of changes in evaluations of any such third parties published by rating agencies or other analysts, and the reactions of other market participants or the Company’s regulators, advisors, distribution partners or customers in response to any such evaluation or prospect of changes in evaluation;
experience deviations from the Company’sour assumptions regarding morbidity, mortality and persistency in certain annuity andaffecting our insurance products,profitability;
changes to our reputation arising from employee or from assumptions regarding market returns assumed in valuingadvisor misconduct or unlocking DAC and DSICotherwise;
direct or market volatility underlying the Company’s valuation and hedgingindirect effects of guaranteed benefit annuity riders, or from assumptions regarding interest rates assumed in the Company's loss recognition testing of its long term care business, or from assumptions regarding anticipated claims and losses relatingresponses to the Company’s automobile and home insurance products;climate change;
changes in capital requirements that may be indicated, required or advised by regulators or rating agencies;
the impacts of the Company’s efforts to improve distribution economics and to grow third-party distribution of its products;
the ability to pursue and complete strategic transactions and initiatives, including acquisitions, divestitures, restructurings, joint ventures and the development of new products and services;
the ability to realize the financial, operating and business fundamental benefits of strategic transactions and initiatives the Company has completed, is pursuing or may pursue in the future, which may be impacted by the ability to obtain regulatory

AMERIPRISE FINANCIAL, INC. 

approvals, the ability to effectively manage related expenses and by market, business partner and consumer reactions to such strategic transactions and initiatives;
the ability and timing to realize savings and other benefits from re-engineering and tax planning;
interruptions or other failures in the Company’s communications, technologyour operating systems and other operating systems,networks, including errors or failures caused by third-party service providers, interference or failures caused by third party attacks on the Company’s systems,third-party attacks;
interruptions or the failureother errors in our telecommunications or data processing systems;
• identification and mitigation of risk exposure in market environments, new products, vendors and other types of risk;
• ability of our subsidiaries to safeguard the privacytransfer funds to us to pay dividends;
• changes in exchange rates and other risks in connection with our international operations and earnings and income generated overseas;
• occurrence of natural or confidentiality of sensitive informationman-made disasters and data on such systems; andcatastrophes;
general economic and political factors, including consumer confidence• risks in the economy and the financial industry, the ability and inclination of consumers generally to invest as well as their ability and inclination to invest in financial instruments and products other than cash and cash equivalents, the costs of products and services the Company consumes in the conduct of its business, and applicable legislation and regulation and changes therein (acquisition transactions, such as the June 2016 UK referendum on membershipintegration of the BMO Global Asset Management (EMEA) business or other potential strategic acquisitions or divestitures;
• legal and regulatory actions brought against us;
• changes to laws and regulations that govern operation of our business;
• supervision by bank regulators and related regulatory and prudential standards as a savings and loan holding company that may limit our activities and strategies;
• changes in corporate tax laws and regulations and interpretations and determinations of tax laws impacting our products;
• protection of our intellectual property and claims we infringe the European Unionintellectual property of others; and
changes in and the uncertain regulatory environment in the U.S. after the recent U.S. election), including tax laws, tax treaties, fiscal and central government treasury policy, and policies regarding the financial services industry and publicly-held firms, and regulatory rulings and pronouncements.
adoption of new accounting standards.
Management cautions the reader that the foregoing list of factors is not exhaustive. There may also be other risks that management is unable to predict at this time that may cause actual results to differ materially from those in forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. Management undertakes no obligation to update publicly or revise any forward-looking statements. The foregoing list of factors should be read in conjunction with the “Risk Factors” discussion included in Part I, Item 1A of our 20162021 10-K.
Ameriprise Financial announces financial and other information to investors through the Company’s investor relations website at ir.ameriprise.com, as well as SEC filings, press releases, public conference calls and webcasts. Investors and others interested in the company are encouraged to visit the investor relations website from time to time, as information is updated and new information is posted. The website also allows users to sign up for automatic notifications in the event new materials are posted. The information found on the website is not incorporated by reference into this report or in any other report or document the Company furnishes or files with the SEC.
ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
The information set forth in Part I, Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Market Risk” in this report is incorporated herein by reference. These disclosures should be read in conjunction with the “Quantitative and Qualitative Disclosures About Market Risk” discussion included as Part II, Item 7A of our 20162021 10-K filed with the SEC on February 23, 2017.25, 2022.
ITEM 4.  CONTROLS AND PROCEDURES
Disclosure Controls and Procedures
We maintain disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) designed to provide reasonable assurance that the information required to be reported in the Exchange Act filings is recorded, processed, summarized and reported within the time periods specified in and pursuant to SEC regulations, including controls and procedures designed to ensure that this information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding the required disclosure. It should be noted that, because of inherent limitations, our company’s disclosure controls and procedures, however well designed and operated, can provide only reasonable, and not absolute, assurance that the objectives of the disclosure controls and procedures are met.
Our management, under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report. Based upon that evaluation, our company’s Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures were effective at a reasonable level of assurance as of September 30, 2017.March 31, 2022.
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AMERIPRISE FINANCIAL, INC. 
Changes in Internal Control over Financial Reporting
There have not been any changes into our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the fiscal quarter to which this report relates that have materially affected, or are reasonably likely to materially affect, our company’s internal control over financial reporting.

AMERIPRISE FINANCIAL, INC. 

PART II.  OTHER INFORMATION
ITEM 1.  LEGAL PROCEEDINGS
The information set forth in Note 1516 to the Consolidated Financial Statements in Part I, Item 1 is incorporated herein by reference.
ITEM 1A.  RISK FACTORS
There have been no material changes in the risk factors provided in Part I, Item 1A of our 20162021 10-K.
ITEM 2.  UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
The following table presents the information with respect to purchases made by or on behalf of Ameriprise Financial, Inc. or any “affiliated purchaser” (as defined in Rule 10b-18(a)(3) under the Securities Exchange Act of 1934), of our common stock during the thirdfirst quarter of 2017:2022:
Period (a) (b) (c) (d)Period(a)(b)(c)(d)
Total Number
of Shares Purchased
Average Price
Paid Per Share
Total Number of Shares Purchased as part of Publicly Announced Plans or Programs(1)
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs(1)
Total Number
of Shares Purchased
Average Price
Paid Per Share
Total Number of Shares Purchased as part of Publicly Announced Plans or Programs (1)
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (1)
July 1 to July 31, 2017
January 1 to January 31, 2022January 1 to January 31, 2022
Share repurchase program (1)
 622,117
 $136.67
 622,117
 $2,635,014,130
Share repurchase program (1)
334,220 $311.16 334,220 $3,328,441,337 
Employee transactions (2)
 432,319
 $143.36
 N/A
 N/A
Employee transactions (2)
110,082 $304.64 N/AN/A
August 1 to August 31, 2017
February 1 to February 28, 2022February 1 to February 28, 2022
Share repurchase program (1)
 842,580
 $142.26
 842,580
 $2,515,148,831
Share repurchase program (1)
475,911 $304.67 475,911 $3,183,446,834 
Employee transactions (2)
 276,391
 $145.67
 N/A
 N/A
Employee transactions (2)
289,352 $311.08 N/AN/A
September 1 to September 30, 2017
March 1 to March 31, 2022March 1 to March 31, 2022
Share repurchase program (1)
 910,991
 $140.48
 910,991
 $2,387,172,782
Share repurchase program (1)
623,973 $288.49 623,973 $3,003,438,420 
Employee transactions (2)
 74,414
 $143.50
 N/A
 N/A
Employee transactions (2)
91,123 $297.15 N/AN/A
TotalsTotalsTotals
Share repurchase program (1)
 2,375,688
 $140.11
 2,375,688
  
Share repurchase program (1)
1,434,104 $299.14 1,434,104  
Employee transactions (2)
 783,124
 $144.19
 N/A
  
Employee transactions (2)
490,557 $307.05 N/A 
 3,158,812
  
 2,375,688
  
1,924,661  1,434,104  
N/A  Not applicable.
(1) On December 7, 2015, we announced that our Board of Directors authorized us to repurchase up to $2.5 billion of our common stock through December 31, 2017. On April 24, 2017, we announced thatIn August 2020, our Board of Directors authorized an additional expenditure of up to $2.5 billion for the repurchase of our common stock through JuneSeptember 30, 2019.2022. In January 2022, our Board of Directors authorized an additional $3.0 billion for the repurchase of our common stock through March 31, 2024. The share repurchase programs doprogram does not require the purchase of any minimum number of shares, and depending on market conditions and other factors, these purchases may be commenced or suspended at any time without prior notice. Acquisitions under the share repurchase programsprogram may be made in the open market, through privately negotiated transactions or block trades or other means.
(2)Includes restricted shares withheld pursuant to the terms of awards under the Company’s share-based compensation plans to offset tax withholding obligations that occur upon vesting and release of restricted shares. The value of the restricted shares withheld is the closing price of common stock of Ameriprise Financial, Inc. on the date the relevant transaction occurs. Also includes shares withheld pursuant to the net settlement of Non-Qualified Stock Option (“NQSO”) exercises to offset tax withholding obligations that occur upon exercise and to cover the strike price of the NQSO. The value of the shares withheld pursuant to the net settlement of NQSO exercises is the closing price of common stock of Ameriprise Financial, Inc. on the day prior to the date the relevant transaction occurs.

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AMERIPRISE FINANCIAL, INC. 

ITEM 6.  EXHIBITS
Pursuant to the rules and regulations of the Securities and Exchange Commission, we have filed certain agreements as exhibits to this Quarterly Report on Form 10-Q. These agreements may contain representations and warranties by the parties. These representations and warranties have been made solely for the benefit of the other party or parties to such agreements and (i) may have been qualified by disclosures made to such other party or parties, (ii) were made only as of the date of such agreements or such other date(s) as may be specified in such agreements and are subject to more recent developments, which may not be fully reflected in our public disclosure, (iii) may reflect the allocation of risk among the parties to such agreements and (iv) may apply materiality standards different from what may be viewed as material to investors. Accordingly, these representations and warranties may not describe our actual state of affairs at the date hereof and should not be relied upon.
The following exhibits are filed as part of this Quarterly Report on Form 10-Q. The exhibit numbers followed by an asterisk (*) indicate exhibits electronically filed herewith. All other exhibit numbers indicate exhibits previously filed and are hereby incorporated herein by reference.
ExhibitDescription
Amended and Restated Certificate of Incorporation of Ameriprise Financial, Inc. (incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K, File No. 1-32525, filed on May 1, 2014).
Amended and Restated Bylaws of Ameriprise Financial, Inc. (incorporated by reference to Exhibit 3.2 to the CurrentAnnual Report on Form 8-K,10-K, File No. 1-32525, filed on May 1, 2014)February 24, 2021).
Form of Specimen Common Stock Certificate (incorporated by reference to Exhibit 4.1 to Amendment No. 3 to Form 10 Registration Statement, File No. 1-32525, filed on August 19, 2005).

Other instruments defining the rights of holders of long-term debt securities of the registrant are omitted pursuant to Section (b)(4)(iii)(A) of Item 601 of Regulation S-K. The registrant agrees to furnish copies of these instruments to the SEC upon request.
10.1†*
Third Amended and Restated Credit Agreement dated as of October 12, 2017 among Ameriprise Financial Inc., as Borrower, the lenders party thereto, Wells Fargo Bank, National Association as Administrative Agent, Swingline Lender and Issuing Lender, Bank of America, N.A. and Citibank, N.A. as Co-Syndication Agents, Credit Suisse AG, Cayman Islands Branch, Goldman Sachs Bank USA, HSBC Bank USA, National Association, JPMorgan Chase Bank, N.A. and U.S. Bank National Association as Co-Documentation Agents, and Wells Fargo Securities, LLC, Merrill Lynch, Pierce, Fenner & Smith, Incorporated, and Citigroup Global Markets Inc., as Joint Lead Arrangers and Joint Bookrunners (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K, File No. 1-32525, filed on October 16, 2017).Long-Term Incentive Award Program Guide
Certification of James M. Cracchiolo pursuant to Rule 13a-14(a) promulgated under the Securities Exchange Act of 1934, as amended.
Certification of Walter S. Berman pursuant to Rule 13a-14(a) promulgated under the Securities Exchange Act of 1934, as amended.
Certification of James M. Cracchiolo and Walter S. Berman pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101*101The following materials from Ameriprise Financial, Inc.’s Quarterly Report on Form 10-Q for the period ended September 30, 2017,March 31, 2022 are formatted in XBRL:iXBRL (Inline eXtensible Business Reporting Language): (i) Consolidated Statements of Operations for the three months ended March 31, 2022 and nine months ended September 30, 2017 and 2016;2021; (ii) Consolidated Statements of Comprehensive Income for the three months ended March 31, 2022 and nine months ended September 30, 2017 and 2016;2021; (iii) Consolidated Balance Sheets at September 30, 2017March 31, 2022 and December 31, 2016;2021; (iv) Consolidated Statements of Equity for the ninethree months ended September 30, 2017March 31, 2022 and 2016;2021; (v) Consolidated Statements of Cash Flows for the ninethree months ended September 30, 2017March 31, 2022 and 2016;2021; and (vi) Notes to the Consolidated Financial Statements.
104The cover page from Ameriprise Financial, Inc.’s Quarterly Report on Form 10-Q for the period ended March 31, 2022 is formatted in iXBRL and contained in Exhibit 101.
* Filed electronically herewithin.
† Management contract or compensation plan or arrangement





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AMERIPRISE FINANCIAL, INC. 

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
AMERIPRISE FINANCIAL, INC.
(Registrant)

(Registrant)
Date:November 1, 2017May 2, 2022ByBy:/s/ Walter S. Berman
Walter S. Berman
Executive Vice President and
Chief Financial Officer
(Principal Financial Officer)

Date:November 1, 2017May 2, 2022ByBy:/s/ David K. StewartJohn R. Hutt
David K. StewartJohn R. Hutt
SeniorExecutive Vice President and Controller/ LFO – Finance
(Principal Accounting Officer)


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