Maximum borrowing capacity for line of credit facility

  
14. Debt The balances and the stated interest rates of outstanding debt of Ameriprise Financial were as follows: 

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|   | Outstanding Balance |   | Stated Interest Rate |
| December 31, | December 31, |
| 2021 |  | 2020 | 2021 |  | 2020 |
| (in millions) |   |
| Long-term debt: |  |  |  |  |  |  |  |
| Senior notes due 2022 | $ | 500  |  |  | $ | 500  |  |  | 3.0  | % |  | 3.0  | % |
| Senior notes due 2023 | 750  |  |  | 750  |  |  | 4.0  |  |  | 4.0  |  |
| Senior notes due 2024 | 550  |  |  | 550  |  |  | 3.7  |  |  | 3.7  |  |
| Senior notes due 2025 | 500  |  |  | 500  |  |  | 3.0  |  |  | 3.0  |  |
| Senior notes due 2026 | 500  |  |  | 500  |  |  | 2.9  |  |  | 2.9  |  |
| Finance lease liabilities | 40  |  |  | 44  |  |   | N/A |  | N/A |
| Other (1) | (8) |  |  | (13) |  |  | N/A |  | N/A |
| Total long-term debt | 2,832  |  |  | 2,831  |  |   |   |  |   |
|  |  |  |  |  |  |  |  |
| Short-term borrowings: |  |  |  |  |  |  |  |
| Federal Home Loan Bank (“FHLB”) advances | 200  |  |  | 200  |  |   | 0.3  | % |  | 0.4  | % |
|  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |
| Total | $ | 3,032  |  |  | $ | 3,031  |  |   |   |  |   |

(1) Includes adjustments for net unamortized discounts, debt issuance costs and other lease obligations.N/A  Not ApplicableLong-Term DebtThe Company’s senior notes may be redeemed, in whole or in part, at any time prior to maturity at a price equal to the greater of the principal amount and the present value of remaining scheduled payments, discounted to the redemption date, plus accrued interest. Short-Term BorrowingsThe Company’s life insurance and 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 access these borrowings. The fair value of the securities pledged is recorded in Investments and was $1.2 billion and $1.3 billion, of commercial mortgage backed securities, and $581 million and $604 million, of residential mortgage backed securities, as of December 31, 2021 and 2020, respectively. The remaining maturity of outstanding FHLB advances was less than three months as of both December 31, 2021 and 2020. 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 June 11, 2021, the Company entered into an amended and restated credit agreement that provides for an unsecured revolving credit facility of up to $1.0 billion that expires in June 2026. Under the terms of the credit agreement for the facility, the Company may increase the amount of this facility up to $1.25 billion upon satisfaction of certain approval requirements. As of both December 31, 2021 and 2020, the Company had no borrowings outstanding and $1 million of letters of credit issued against 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 December 31, 2021 and 2020. 15.  Fair Values of Assets and LiabilitiesGAAP 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 HierarchyThe 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. The three levels of the fair value hierarchy are defined as follows:Level 1    Unadjusted quoted prices for identical assets or liabilities in active markets that are accessible at the measurement date.Level 2      Prices or valuations based on observable inputs other than quoted prices in active markets for identical assets and liabilities.Level 3     Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable.  
  
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