Bring on tomorrow - AIG.com

More documents

Recommendations

Info

ITEM 8 / NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES.....................................................................................................................................................................................Year Ended December 31, 2010 As Previously Effect of As Currently(dollars in millions, except per share data) Reported (a) Change ReportedStatement of Operations:Total net realized capital losses $ (727) $ 11 $ (716)Total revenues 72,818 11 72,829Interest credited to policyholder account balances 4,480 7 4,487Amortization of deferred acquisition costs 9,134 (3,313) 5,821Other acquisition and other insurance expenses 6,775 3,388 10,163Net (gain) loss on sale of properties and divested businesses (b) (17,767) (1,799) (19,566)Total benefits, claims and expenses 54,301 (1,719) 52,582Income from continuing operations before income tax expense 18,517 1,730 20,247Income tax expense (c) 6,116 877 6,993Income from continuing operations 12,401 853 13,254Income (loss) from discontinued operations, net of income tax expense (d) (2,388) 1,419 (969)Net income 10,013 2,272 12,285Net income attributable to AIG 7,786 2,272 10,058Net income attributable to AIG common shareholders 1,583 463 2,046Income (loss) per share attributable to AIG common shareholders:Basic and dilutedIncome from continuing operations $ 15.23 $ 1.27 $ 16.50Loss from discontinued operations $ (3.63) $ 2.11 $ (1.52)(a) Includes $783 million in Total net realized capital gains attributable to the effect of the reclassification of certain derivative activity discussed inNote 1 herein. Also includes the effect of the reclassification of ILFC as discontinued operations.(b) Represents the effect on the gain on sale of AIA ordinary shares, which were sold in the fourth quarter of 2010.(c) Includes the tax impact to the AIA gain adjustment of $1.0 billion in the fourth quarter of 2010.(d) Includes an adjustment to the after-tax gain on the sale of ALICO of $1.6 billion in the fourth quarter of 2010.Adoption of the standard did not affect the previously reported totals for net cash flows provided by (used in)operating, investing, or financing activities, but did affect the following components of net cash flows provided by(used in) operating activities.Year Ended December 31, 2011 As Previously Effect of As Currently(in millions) Reported (a) Change ReportedCash flows from operating activities:Net income $ 18,506 $ 2,824 $ 21,330(Income) loss from discontinued operations (858) (932) (1,790)Adjustments to reconcile net income to net cash provided by (usedin) operating activities:Noncash revenues, expenses, gains and losses included in income(loss):Unrealized gains in earnings – net (937) (20) (957)Depreciation and other amortization 7,935 (2,511) 5,424Changes in operating assets and liabilities:Capitalization of deferred policy acquisition costs (7,796) 2,367 (5,429)Current and deferred income taxes – net (18,333) (1,728) (20,061)Total adjustments (23,904) (1,892) (25,796)..................................................................................................................................................................................................................................AIG 2012 Form 10-K 219
ITEM 8 / NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES.....................................................................................................................................................................................Year Ended December 31, 2010 As Previously Effect of As Currently(in millions) Reported (a) Change ReportedCash flows from operating activities:Net income $ 10,013 $ 2,272 $ 12,285(Income) loss from discontinued operations 2,388 (1,419) 969Adjustments to reconcile net income to net cash provided by (usedin) operating activities:Noncash revenues, expenses, gains and losses included in income(loss):Net (gains) losses on sales of divested businesses (17,767) (1,799) (19,566)Unrealized gains in earnings – net (1,509) (20) (1,529)Depreciation and other amortization 8,488 (2,511) 5,977Changes in operating assets and liabilities:Capitalization of deferred policy acquisition costs (8,300) 2,367 (5,933)Current and deferred income taxes – net 7,780 (1,728) 6,052Total adjustments $ (5,201) $ (1,892) $ (7,093)(a) Includes the effect of the reclassification of ILFC as discontinued operations.For short-duration insurance contracts, starting in 2012, we elected to include anticipated investment income in ourdetermination of whether the deferred policy acquisition costs are recoverable. We believe the inclusion of anticipatedinvestment income in the recoverability analysis is a preferable accounting policy because it includes in therecoverability analysis the fact that there is a timing difference between when premiums are collected and in turninvested and when losses and related expenses are paid. This is considered a change in accounting principle thatrequired retrospective application to all periods presented. Because we historically have not recorded any premiumdeficiency on our short-duration insurance contracts even without the inclusion of anticipated investment income,there were no changes to the historical financial statements for the change in accounting principle.Reconsideration of Effective Control for Repurchase AgreementsIn April 2011, the FASB issued an accounting standard that amends the criteria used to determine effective controlfor repurchase agreements and other similar arrangements such as securities lending transactions. The standardmodifies the criteria for determining when these transactions would be accounted for as secured borrowings(i.e., financings) instead of sales of the securities.The standard removes from the assessment of effective control the requirement that the transferor have the ability torepurchase or redeem the financial assets on substantially the agreed terms, even in the event of default by thetransferee. The removal of this requirement makes the level of collateral received by the transferor in a repurchaseagreement or similar arrangement irrelevant in determining whether the transaction should be accounted for as asale. As a consequence, more repurchase agreements, securities lending transactions and similar arrangements willbe accounted for as secured borrowings.The guidance in the standard was required to be applied prospectively to transactions or modifications of existingtransactions that occur on or after January 1, 2012. There are no repurchase agreements that continue to beaccounted for as sales as of December 31, 2012.Common Fair Value Measurements and Disclosure Requirements in GAAP and IFRSIn May 2011, the FASB issued an accounting standard that amended certain aspects of the fair value measurementguidance in GAAP, primarily to achieve the FASB’s objective of a converged definition of fair value and substantiallyconverged measurement and disclosure guidance with International Financial Reporting Standards (IFRS). Themeasurement and disclosure requirements under GAAP and IFRS are now generally consistent, with certainexceptions including the accounting for day one gains and losses, measuring the fair value of alternative investmentsusing net asset value and certain disclosure requirements.The standard’s fair value measurement and disclosure guidance applies to all companies that measure assets,liabilities, or instruments classified in shareholders’ equity at fair value or provide fair value disclosures for items notrecorded at fair value. The guidance clarifies existing guidance on the application of fair value measurements,changes certain principles or requirements for measuring fair value, and requires significant additional disclosures for..................................................................................................................................................................................................................................220 AIG 2012 Form 10-K
Page 1 and 2:
American International Group, Inc.2
Page 3 and 4:
KEY FACTS & FIGURES52,000+ $65.7 bi
Page 5 and 6:
■We said we would return to profi
Page 7 and 8:
Financial HighlightsYears Ended Dec
Page 9 and 10:
~63,000AIG EMPLOYEES AROUND THE WOR
Page 11 and 12:
$115.1 millionAVERAGE CLAIMS PAID E
Page 13 and 14:
$10,000MAXIMUM DONATION MADE BY AIG
Page 15 and 16:
American International Group, Inc.F
Page 18 and 19:
AMERICAN INTERNATIONAL GROUP, INC.A
Page 20 and 21:
ITEM 1 / BUSINESS / AIG............
Page 22 and 23:
ITEM 1 / BUSINESS / AIG............
Page 24 and 25:
ITEM 1 / BUSINESS / AIG PROPERTY CA
Page 27 and 28:
ITEM 1 / BUSINESS / AIG PROPERTY CA
Page 29 and 30:
ITEM 1 / BUSINESS / AIG LIFE AND RE
Page 31 and 32:
Page 33 and 34:
Page 35 and 36:
ITEM 1 / BUSINESS / OTHER OPERATION
Page 37 and 38:
ITEM 1 / BUSINESS / OTHER OPERATION
Page 39 and 40:
ITEM 1 / BUSINESS..................
Page 41 and 42:
ITEM 1 / BUSINESS..................
Page 43 and 44:
ITEM 1 / BUSINESS..................
Page 45 and 46:
ITEM 1 / BUSINESS..................
Page 47 and 48:
ITEM 1 / BUSINESS..................
Page 49 and 50:
ITEM 1A / RISK FACTORS.............
Page 51 and 52:
Page 53 and 54:
Page 55 and 56:
Page 57 and 58:
Page 59 and 60:
Page 61 and 62:
ITEM 1B / UNRESOLVED STAFF COMMENTS
Page 63 and 64:
ITEM 5 / MARKET FOR REGISTRANT’S
Page 65 and 66:
ITEM 6 / SELECTED FINANCIAL DATA...
Page 67 and 68:
ITEM 6 / SELECTED FINANCIAL DATA...
Page 69 and 70:
ITEM 7 / MANAGEMENT’S DISCUSSION
Page 71 and 72:
ITEM 7 / USE OF NON-GAAP MEASURES..
Page 73 and 74:
ITEM 7 / EXECUTIVE SUMMARY.........
Page 75 and 76:
Page 77 and 78:
Page 79 and 80:
Page 81 and 82:
Page 83 and 84:
Page 85 and 86:
ITEM 7 / RESULTS OF OPERATIONS.....
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:
ITEM 7 / LIQUIDITY AND CAPITAL RESO
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:
ITEM 7 / INVESTMENTS...............
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:
ITEM 7 / ENTERPRISE RISK MANAGEMENT
Page 175 and 176:
Page 177 and 178:
Page 179 and 180:
Page 181 and 182:
Page 183 and 184:
Page 185 and 186: ITEM 7 / ENTERPRISE RISK MANAGEMENT
Page 187 and 188: ITEM 7 / ENTERPRISE RISK MANAGEMENT
Page 189 and 190: ITEM 7 / CRITICAL ACCOUNTING ESTIMA
Page 213 and 214: ITEM 7 / GLOSSARY..................
Page 215 and 216: ITEM 7 / GLOSSARY..................
Page 217 and 218: ITEM 7A / QUANTITATIVE AND QUALITAT
Page 219 and 220: ITEM 8 / INDEX TO FINANCIAL STATEME
Page 221 and 222: AMERICAN INTERNATIONAL GROUP, INC.C
Page 227 and 228: ITEM 8 / NOTE 1. BASIS OF PRESENTAT
Page 229 and 230: ITEM 8 / NOTE 2. SUMMARY OF SIGNIFI
Page 235: ITEM 8 / NOTE 2. SUMMARY OF SIGNIFI
Page 241 and 242: ITEM 8 / NOTE 3. SEGMENT INFORMATIO
Page 243 and 244: ITEM 8 / NOTE 3. SEGMENT INFORMATIO
Page 245 and 246: ITEM 8 / NOTE 4. DIVESTED BUSINESSE
Page 247 and 248: ITEM 8 / NOTE 4. DIVESTED BUSINESSE
Page 249 and 250: ITEM 8 / NOTE 5. BUSINESS COMBINATI
Page 251 and 252: ITEM 8 / NOTE 6. FAIR VALUE MEASURE
Page 269 and 270: ITEM 8 / NOTE 7. INVESTMENTS.......
Page 283 and 284: ITEM 8 / NOTE 8. LENDING ACTIVITIES
Page 285 and 286: ITEM 8 / NOTE 9. REINSURANCE.......
Page 287 and 288:
ITEM 8 / NOTE 10. DEFERRED POLICY A
Page 289 and 290:
ITEM 8 / NOTE 10. DEFERRED POLICY A
Page 291 and 292:
ITEM 8 / NOTE 11. VARIABLE INTEREST
Page 293 and 294:
ITEM 8 / NOTE 11. VARIABLE INTEREST
Page 295 and 296:
ITEM 8 / NOTE 12. DERIVATIVES AND H
Page 297 and 298:
Page 299 and 300:
Page 301 and 302:
ITEM 8 / NOTE 13. LIABILITY FOR UNP
Page 303 and 304:
ITEM 8 / NOTE 14. VARIABLE LIFE AND
Page 305 and 306:
ITEM 8 / NOTE 15. DEBT OUTSTANDING.
Page 307 and 308:
ITEM 8 / NOTE 15. DEBT OUTSTANDING.
Page 309 and 310:
ITEM 8 / NOTE 16. CONTINGENCIES, CO
Page 311 and 312:
Page 313 and 314:
Page 315 and 316:
Page 317 and 318:
Page 319 and 320:
Page 321 and 322:
ITEM 8 / NOTE 17. TOTAL EQUITY.....
Page 323 and 324:
Page 325 and 326:
Page 327 and 328:
ITEM 8 / NOTE 18. NONCONTROLLING IN
Page 329 and 330:
ITEM 8 / NOTE 19. EARNINGS (LOSS) P
Page 331 and 332:
ITEM 8 / NOTE 20. STATUTORY FINANCI
Page 333 and 334:
ITEM 8 / NOTE 21. SHARE-BASED COMPE
Page 335 and 336:
ITEM 8 / NOTE 21. SHARE-BASED COMPE
Page 337 and 338:
ITEM 8 / NOTE 22. EMPLOYEE BENEFITS
Page 339 and 340:
Page 341 and 342:
Page 343 and 344:
Page 345 and 346:
Page 347 and 348:
ITEM 8 / NOTE 24. INCOME TAXES.....
Page 349 and 350:
Page 351 and 352:
Page 353 and 354:
ITEM 8 / NOTE 26. QUARTERLY FINANCI
Page 355 and 356:
ITEM 8 / NOTE 27. INFORMATION PROVI
Page 357 and 358:
Page 359 and 360:
Page 361 and 362:
PART II............................
Page 363 and 364:
PART IV............................
Page 365 and 366:
SignatureTitle/s/ ARTHUR C. MARTINE
Page 367 and 368:
ExhibitNumber Description Location(
Page 369 and 370:
Page 371 and 372:
Page 373 and 374:
Page 375 and 376:
Condensed Financial Information of
Page 377 and 378:
Condensed Financial Information of
Page 379 and 380:
Notes to Condensed Financial Inform
Page 381 and 382:
Supplementary Insurance Information
Page 383 and 384:
Valuation and Qualifying AccountsFo
Page 385 and 386:
Subsidiaries of RegistrantExhibit 2
Page 387 and 388:
Percentageof VotingSecuritiesJurisd
Page 389 and 390:
Percentageof VotingSecuritiesJurisd
Page 391 and 392:
CONSENT OF INDEPENDENT REGISTERED P
Page 393 and 394:
CERTIFICATIONSI, Robert H. Benmosch
Page 395 and 396:
CERTIFICATIONExhibit 32In connectio
Page 397 and 398:
SECURITIES REGISTERED PURSUANT TO S
Page 399:
American International Group, Inc.1
show all

Bring on tomorrow - AIG.com

Create successful ePaper yourself

Delete template?

Save as template?