2007 Annual Report - AIG.com

More documents

Recommendations

Info

American International Group, Inc. and Subsidiaries Notes to Consolidated Financial Statements Continued 11. Debt Outstanding At December 31, 2007 and 2006, AIG’s total borrowings were as follows: (in millions) 2007 2006 Total long-term borrowings $162,935 $135,316 Commercial paper and extendible commercial notes 13,114 13,363 Total borrowings $176,049 $148,679 Maturities of Long-term borrowings at December 31, 2007, excluding borrowings of consolidated investments, are as follows: (in millions) Total 2008 2009 2010 2011 2012 Thereafter AIG: Notes and bonds payable $ 14,588 $ 1,591 $ 1,441 $ 1,349 $ 450 $ 27 $ 9,730 Junior subordinated debt 5,809 — — — — — 5,809 Loans and mortgages payable 729 627 — — — — 102 MIP matched notes and bonds payable 14,267 200 1,218 2,309 3,188 2,039 5,313 Series AIGFP matched notes and bonds payable 874 65 77 32 25 56 619 Total AIG 36,267 2,483 2,736 3,690 3,663 2,122 21,573 AIGFP: GIAs 19,908 6,370 1,831 1,127 581 660 9,339 Notes and bonds payable 36,676 23,670 4,522 431 403 3,885 3,765 Loans and mortgages payable 1,384 — — — — 160 1,224 Hybrid financial instrument liabilities (a) 7,479 1,581 425 1,739 693 332 2,709 Total AIGFP 65,447 31,621 6,778 3,297 1,677 5,037 17,037 AIGLH notes and bonds payable 797 — — 499 — — 298 Liabilities connected to trust preferred stock 1,435 — — — — — 1,435 ILFC (b) : Notes and bonds payable 22,111 4,065 2,978 3,808 4,021 3,531 3,708 Junior subordinated debt 999 — — — — — 999 Export credit facility (c) 2,542 522 470 356 266 237 691 Bank financings 1,084 25 471 103 160 325 — Total ILFC 26,736 4,612 3,919 4,267 4,447 4,093 5,398 AGF (b) : Notes and bonds payable 22,369 4,085 4,108 2,200 2,902 2,073 7,001 Junior subordinated debt 349 — — — — — 349 Total AGF 22,718 4,085 4,108 2,200 2,902 2,073 7,350 AIGCFG Loans and mortgages payable (b) 1,839 1,000 542 225 11 7 54 Other subsidiaries (b) 775 90 — — — — 685 Total $156,014 $43,891 $18,083 $14,178 $12,700 $13,332 $53,830 (a) Represents structured notes issued by AIGFP that are accounted for at fair value. (b) AIG does not guarantee these borrowings. (c) Reflects future minimum payment for ILFC’s borrowing under Export Credit Facilities. 170 AIG 2007 Form 10-K
American International Group, Inc. and Subsidiaries 11. Debt Outstanding Continued was outstanding at December 31, 2007, and was used for AIG’s general corporate purposes. (ii) Junior subordinated debt: During 2007, AIG issued an aggre- (a) Commercial Paper: gate of $5.6 billion of junior subordinated debentures in five series of securities. Substantially all of the proceeds from these At December 31, 2007, the commercial paper issued and sales, net of expenses, are being used to repurchase shares of outstanding was as follows: AIG’s common stock. In connection with each series of junior Unamortized Weighted Weighted subordinated debentures, AIG entered into a Replacement Capital Net Discount Average Average Covenant (RCC) for the benefit of the holders of AIG’s 6.25 per- (dollars in Book and Accrued Face Interest Maturity millions) Value Interest Amount Rate in Days cent senior notes due 2036. The RCCs provide that AIG will not repay, redeem, or purchase the applicable series of junior ILFC $ 4,483 $16 $ 4,499 4.63% 28 subordinated debentures on or before a specified date, unless AIG AGF 3,607 10 3,617 4.85 25 AIG Funding 4,222 15 4,237 4.81 29 has received qualifying proceeds from the sale of replacement AIGCC — capital securities. Taiwan (a) 151 — 151 2.81 42 AIGF — (c) AIGFP Borrowings: Thailand (a) 136 1 137 3.36 50 (i) Borrowings under Obligations of Guaranteed Investment Agree- Total (b) $12,599 $42 $12,641 — — ments: Borrowings under obligations of guaranteed investment agreements (GIAs), which are guaranteed by AIG, are recorded at (a) Issued in local currencies at prevailing local interest rates. the amount outstanding under each contract. Obligations may be (b) Excludes $321 million of borrowings of consolidated investments and called at various times prior to maturity at the option of the $194 million of extendible commercial notes. counterparty. Interest rates on these borrowings are primarily At December 31, 2007, AIG did not guarantee the commercial fixed, vary by maturity, and range up to 9.8 percent. paper of any of its subsidiaries other than AIG Funding. Funds received from GIA borrowings are invested in a diversi- (b) AIG Borrowings: fied portfolio of securities and derivative transactions. At December 31, 2007, the fair value of securities pledged as collateral (i) Notes and bonds issued by AIG: AIG maintains a medium-term with respect to these obligations approximated $14.5 billion. note program under its shelf registration statement. At December 31, 2007, approximately $7.3 billion principal amount of (ii) Notes and Bonds issued by AIGFP: senior notes were outstanding under the medium-term note At December 31, 2007, AIGFP’s notes and bonds out- program, of which $3.2 billion was used for AIG’s general standing, the proceeds of which are invested in a corporate purposes, $873 million was used by AIGFP and diversified portfolio of securities and derivative transac- $3.2 billion was used to fund the Matched Investment Program tions, were as follows: (MIP). The maturity dates of these notes range from 2008 to Range of U.S. Dollar 2052. To the extent deemed appropriate, AIG may enter into swap Maturities Range of Carrying transactions to manage its effective borrowing rates with respect (dollars in millions) Currency Interest Rates Value to these notes. 2008 - 2054 U.S. dollar 0.26 - 9.00% $ 29,490 AIG also maintains a Euro medium-term note program under 2008 - 2049 Euro 1.25 - 6.53 8,819 which an aggregate nominal amount of up to $20.0 billion of 2008 - 2012 United Kingdom pound 4.67 - 6.31 3,936 senior notes may be outstanding at any one time. At Decem- 2008 - 2037 Japanese Yen 0.01 - 2.9 2,025 ber 31, 2007, the equivalent of $12.7 billion of notes were 2008 - 2024 Swiss francs 0.25 512 outstanding under the program, of which $9.8 billion were used to 2008 New Zealand dollar 8.35 386 fund the MIP and the remainder was used for AIG’s general 2009 - 2017 Australian dollar 1.14 - 2.65 177 corporate purposes. The aggregate amount outstanding includes a 2008 - 2017 Other 4.39 - 4.95 194 $1.1 billion loss resulting from foreign exchange translation into U.S. dollars, of which a $332 million loss relates to notes issued Total $ 45,539 by AIG for general corporate purposes and a $726 million loss AIGFP economically hedges its notes and bonds. AIG guaran- relates to notes issued to fund the MIP. tees all of AIGFP’s debt. During 2007, AIG issued in Rule 144A offerings an aggregate (iii) Hybrid financial instrument liabilities: AIGFP’s notes and of $3.0 billion principal amount of senior notes, of which bonds include structured debt instruments whose payment terms $650 million was used to fund the MIP and $2.3 billion was used are linked to one or more financial or other indices (such as an for AIG’s general corporate purposes. equity index or commodity index or another measure that is not AIG maintains a shelf registration statement in Japan, providing considered to be clearly and closely related to the debt instrufor the issuance of up to Japanese Yen 300 billion principal ment). These notes contain embedded derivatives that otherwise amount of senior notes, of which the equivalent of $450 million AIG 2007 Form 10-K 171
Page 1 and 2:
AMERICAN INTERNATIONAL GROUP, INC.
Page 3 and 4:
FINANCIAL HIGHLIGHTS (in millions,
Page 5 and 6:
overall financial condition, althou
Page 7 and 8:
Group Executive Committee We are ad
Page 9 and 10:
AIG’s life insurance network is t
Page 11 and 12:
We have also begun to address the e
Page 13 and 14:
WHAT WE SEE The ability to see and
Page 15 and 16:
The Major Accounts Practice within
Page 17 and 18:
Around the world, the middle class
Page 19 and 20:
WE SEE GROWTH OPPORTUNITIES IN EMER
Page 21 and 22:
To grow the strength of the AIG glo
Page 23 and 24:
Since 2003, the AIG Disaster Relief
Page 25 and 26:
RESPECT Respect encompasses how we
Page 27 and 28:
Life Insurance & Retirement Service
Page 29 and 30:
Domestic Brokerage Group— Gross P
Page 31 and 32:
In the summer of 2007, widespread f
Page 33 and 34:
in gross premiums written. It launc
Page 35 and 36:
It grew new business premiums from
Page 37 and 38:
emerging markets for its services,
Page 39 and 40:
ILFC—Revenues by Region Total = $
Page 41 and 42:
AIG Investments acquired a 94 perce
Page 43 and 44:
and changing interest rates, as wel
Page 45 and 46:
American International Group, Inc.
Page 47 and 48:
Page 49 and 50:
Page 51 and 52:
Page 53 and 54:
Page 55 and 56:
UNITED STATES SECURITIES AND EXCHAN
Page 57 and 58:
Page 59 and 60:
Page 61 and 62:
Page 63 and 64:
Page 65 and 66:
Page 67 and 68:
Page 69 and 70:
Page 71 and 72:
Page 73 and 74:
Page 75 and 76:
Page 77 and 78:
Page 79 and 80:
Page 81 and 82:
Page 83 and 84:
Page 85 and 86:
Page 87 and 88:
Page 89 and 90:
Page 91 and 92:
Page 93 and 94:
Page 95 and 96:
Page 97 and 98:
Page 99 and 100:
Page 101 and 102:
Page 103 and 104:
Page 105 and 106:
Page 107 and 108:
Page 109 and 110:
Page 111 and 112:
Page 113 and 114:
Page 115 and 116:
Page 117 and 118:
Page 119 and 120:
Page 121 and 122:
Page 123 and 124:
Page 125 and 126:
Page 127 and 128:
Page 129 and 130:
Page 131 and 132:
Page 133 and 134:
Page 135 and 136:
Page 137 and 138:
Page 139 and 140:
Page 141 and 142:
Page 143 and 144:
Page 145 and 146:
Page 147 and 148:
Page 149 and 150:
Page 151 and 152:
Page 153 and 154:
Page 155 and 156:
Page 157 and 158:
Page 159 and 160:
Page 161 and 162:
Page 163 and 164:
Page 165 and 166:
Page 167 and 168:
Page 169 and 170:
Page 171 and 172:
Page 173 and 174: American International Group, Inc.
Page 191 and 192: Index of Notes to Consolidated Fina
Page 223: American International Group, Inc.
Page 275 and 276:
SHAREHOLDER INFORMATION Corporate H
show all

2007 Annual Report - AIG.com

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?