2007 Annual Report - AIG.com

American International Group, Inc. and Subsidiaries
2. Segment Information
Continued
The following table summarizes AIG’s operations by reporting segment for the years ended December 31, 2007, 2006
and 2005:
Operating Segments
Life
Insurance
Consolidation
General & Retirement Financial Asset and
(in millions) Insurance Services (a) Services (a) Management (a) Other (a)(b) Total Eliminations (a) Consolidated
2007
Total revenues (c)(d)(e) $ 51,708 $ 53,570 $ (1,309) $ 5,625 $ 457 $ 110,051 $ 13 $ 110,064
Interest expense 29 128 7,794 567 1,170 9,688 — 9,688
Operating income (loss)
before minority interest (d)(e) 10,526 8,186 (9,515) 1,164 (2,140) 8,221 722 8,943
Income taxes (benefits) 2,393 1,494 (3,260) 334 537 1,498 (43) 1,455
Depreciation expense 300 392 1,831 88 179 2,790 — 2,790
Capital expenditures 354 532 4,569 3,557 271 9,283 — 9,283
Year-end identifiable assets 181,708 615,386 203,894 77,274 126,874 1,205,136 (144,631) 1,060,505
2006
Total revenues (c)(d) $ 49,206 $ 50,878 $ 7,777 $ 4,543 $ 483 $ 112,887 $ 500 $ 113,387
Interest expense 23 74 6,005 105 744 6,951 — 6,951
Operating income (loss)
before minority interest (d) 10,412 10,121 383 1,538 (1,435) 21,019 668 21,687
Income taxes (benefits) 2,351 2,892 (26) 575 719 6,511 26 6,537
Depreciation expense 274 268 1,655 13 164 2,374 — 2,374
Capital expenditures 375 711 6,278 835 244 8,443 — 8,443
Year-end identifiable assets 167,004 550,957 202,485 78,275 107,517 1,106,238 (126,828) 979,410
2005
Total revenues (c)(d) $ 45,174 $ 48,020 $ 10,677 $ 4,582 $ 344 $ 108,797 $ (16) $ 108,781
Interest expense 7 83 5,164 11 408 5,673 — 5,673
Operating income (loss)
before minority interest (d) 2,315 8,965 4,424 1,963 (2,765) (f) 14,902 311 15,213
Income taxes (benefits) 169 2,407 1,418 723 (587) 4,130 128 4,258
Depreciation expense 273 268 1,447 43 169 2,200 — 2,200
Capital expenditures 417 590 6,300 25 194 7,526 — 7,526
Year-end identifiable assets 150,667 489,331 161,919 69,584 94,047 965,548 (112,500) 853,048
(a) Beginning in 2007, revenues and operating income related to certain foreign investment contracts, which were historically reported as a component of
the Asset Management segment, are now reported in the Life Insurance & Retirement Services segment, net realized capital gains and losses;
including derivative gains and losses and foreign exchange transaction gains and losses for Financial Services entities other than AIGFP and Asset
Management entities, which were previously reported as part of AIG’s Other category, are now included in Asset Management and Financial Services
revenues and operating income; and revenues and operating income related to consolidated managed partnerships and funds, which were historically
reported in the Asset Management segment, are now being reported in Consolidation and eliminations. All prior periods have been revised to conform
to the current presentation.
(b) Includes AIG Parent and other operations that are not required to be reported separately. The following table presents the operating loss for AIG’s
Other category for the years ended December 31, 2007, 2006 and 2005:
For the Years Ended December 31,
(in millions) 2007 2006 2005
Operating income (loss):
Equity earnings in partially owned companies* $ 157 $ 193 $ (124)
Interest expense (1,223) (859) (541)
Unallocated corporate expenses (560) (517) (413)
Compensation expense — SICO Plans (39) (108) (205)
Compensation expense — Starr tender offer — (54) —
Net realized capital gains (losses) (409) (37) 269
Regulatory settlement costs — — (1,644)
Other miscellaneous, net (66) (53) (107)
Total Other $ (2,140) $ (1,435) $ (2,765)
* Includes current year catastrophe-related losses from unconsolidated entities of $312 million in 2005. There were no significant catastrophe-related
losses from unconsolidated entities in 2007 and 2006.
AIG 2007 Form 10-K 149