AMERICAN INTERNATIONAL GROUP INC | 2013 | FY | 3


 

 

26. INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT

 

The following condensed consolidating financial statements reflect the results of AIG Life Holdings, Inc. (AIGLH), a holding company and a wholly owned subsidiary of AIG. AIG provides a full and unconditional guarantee of all outstanding debt of AIGLH.

 

Condensed Consolidating Balance Sheets

 

 

   
(in millions)
  American
International
Group, Inc.
(As Guarantor)

  AIGLH
  Other
Subsidiaries

  Reclassifications
and
Eliminations

  Consolidated
AIG

 
   

December 31, 2013

                               

Assets:

                               

Short-term investments

  $ 11,965   $   $ 11,404   $ (1,752 ) $ 21,617  

Other investments(a)

    7,561         327,250         334,811
   

Total investments

    19,526         338,654     (1,752 )   356,428  

Cash

    30     51     2,160         2,241  

Loans to subsidiaries(b)

    31,220         854     (32,074 )    

Investment in consolidated subsidiaries(b)

    66,201     39,103         (105,304 )    

Other assets, including deferred income taxes

    21,606     112     132,492     (1,086 )   153,124  

Assets held for sale

            29,536         29,536
   

Total assets

  $ 138,583   $ 39,266   $ 503,696   $ (140,216 ) $ 541,329
   

Liabilities:

                               

Insurance liabilities

  $   $   $ 271,252   $   $ 271,252  

Long-term debt

    30,839     1,352     9,502         41,693  

Other liabilities, including intercompany balances(a)(c)

    6,422     161     98,908     (2,766 )   102,725  

Loans from subsidiaries(b)

    852     200     31,173     (32,225 )    

Liabilities held for sale

            24,548         24,548
   

Total liabilities

    38,113     1,713     435,383     (34,991 )   440,218
   

Redeemable noncontrolling interests (see Note 17)

            30         30
   

Total AIG shareholders' equity

    100,470     37,553     67,672     (105,225 )   100,470  

Non-redeemable noncontrolling interests

            611         611
   

Total equity

    100,470     37,553     68,283     (105,225 )   101,081
   

Total liabilities and equity

  $ 138,583   $ 39,266   $ 503,696   $ (140,216 ) $ 541,329
   

December 31, 2012

                               

Assets:

                               

Short-term investments

  $ 14,764   $   $ 17,061   $ (3,017 ) $ 28,808  

Other investments(a)

    3,902         343,114         347,016
   

Total investments

    18,666         360,175     (3,017 )   375,824  

Cash

    81     73     997         1,151  

Loans to subsidiaries(b)

    35,064         (2,251 )   (32,813 )    

Investment in consolidated subsidiaries(b)

    70,781     43,891         (114,672 )    

Other assets, including deferred income taxes

    23,153     150     120,575     (4,185 )   139,693  

Assets held for sale

            31,965         31,965
   

Total assets

  $ 147,745   $ 44,114   $ 511,461   $ (154,687 ) $ 548,633
   

Liabilities:

                               

Insurance liabilities

  $   $   $ 280,434   $ (136 ) $ 280,298  

Long-term debt

    36,366     1,638     10,496         48,500  

Other liabilities, including intercompany balances(a)(c)

    12,375     261     84,761     (3,931 )   93,466  

Loans from subsidiaries(b)

    1,002     472     34,500     (35,974 )    

Liabilities held for sale

            27,366         27,366
   

Total liabilities

    49,743     2,371     437,557     (40,041 )   449,630
   

Redeemable noncontrolling interests (see Note 17)

            334         334
   

Total AIG shareholders' equity

    98,002     41,743     72,903     (114,646 )   98,002  

Non-redeemable noncontrolling interests

            667         667
   

Total equity

    98,002     41,743     73,570     (114,646 )   98,669
   

Total liabilities and equity

  $ 147,745   $ 44,114   $ 511,461   $ (154,687 ) $ 548,633
   

(a)  Includes intercompany derivative positions, which are reported at fair value before credit valuation adjustment.

(b)  Eliminated in consolidation.

(c)  For December 31, 2013 and December 31, 2012, includes intercompany tax payable of $1.4 billion and $6.1 billion, respectively, and intercompany derivative liabilities of $249 million and $602 million, respectively, for American International Group, Inc. (As Guarantor) and intercompany tax receivables of $98 million and $120 million, respectively, for AIGLH.

 

Condensed Consolidating Statements of Income (Loss)

 

 

   
(in millions)
  American
International
Group, Inc.
(As Guarantor)

  AIGLH
  Other
Subsidiaries

  Reclassifications
and
Eliminations

  Consolidated
AIG

 
   

Year Ended December 31, 2013

                               

Revenues:

                               

Equity in earnings of consolidated subsidiaries*

  $ 7,638   $ 4,075   $   $ (11,713 ) $  

Other income

    1,487     1     67,502     (312 )   68,678
   

Total revenues

    9,125     4,076     67,502     (12,025 )   68,678
   

Expenses:

                               

Interest expense

    1,938     126     233     (155 )   2,142  

Loss on extinguishment of debt

    580         71         651  

Other expenses

    1,520     75     55,081     (159 )   56,517
   

Total expenses

    4,038     201     55,385     (314 )   59,310
   

Income (loss) from continuing operations before income tax expense (benefit)

    5,087     3,875     12,117     (11,711 )   9,368  

Income tax expense (benefit)

    (4,012 )   (58 )   4,454     (24 )   360
   

Income (loss) from continuing operations

    9,099     3,933     7,663     (11,687 )   9,008  

Income (loss) from discontinued operations, net of income taxes

    (14 )       98         84
   

Net income (loss)

    9,085     3,933     7,761     (11,687 )   9,092  

Less:

                               

Total net income attributable to noncontrolling interests

            7         7
   

Net income (loss) attributable to AIG

  $ 9,085   $ 3,933   $ 7,754   $ (11,687 ) $ 9,085
   

Year Ended December 31, 2012

                               

Revenues:

                               

Equity in earnings of consolidated subsidiaries*

  $ 1,970   $ 2,315   $   $ (4,285 ) $  

Change in fair value of ML III

    2,287         601         2,888  

Other income

    1,911     49     66,556     (383 )   68,133
   

Total revenues

    6,168     2,364     67,157     (4,668 )   71,021
   

Expenses:

                               

Interest expense

    2,257     174     271     (383 )   2,319  

Loss on extinguishment of debt

    9         23         32  

Other expenses

    1,602         64,177         65,779
   

Total expenses

    3,868     174     64,471     (383 )   68,130
   

Income (loss) from continuing operations before income tax expense (benefit)

    2,300     2,190     2,686     (4,285 )   2,891  

Income tax expense (benefit)

    (1,137 )   (17 )   346         (808 )
   

Income (loss) from continuing operations

    3,437     2,207     2,340     (4,285 )   3,699  

Income from discontinued operations, net of income taxes

    1                 1
   

Net income (loss)

    3,438     2,207     2,340     (4,285 )   3,700  

Less:

                               

Net income from continuing operations attributable to noncontrolling interests:

                               

Nonvoting, callable, junior and senior preferred interests

                208     208  

Other

            54         54
   

Total net income attributable to noncontrolling interests

            54     208     262
   

Net income (loss) attributable to AIG

  $ 3,438   $ 2,207   $ 2,286   $ (4,493 ) $ 3,438
   

 

   
(in millions)
  American
International
Group, Inc.
(As Guarantor)

  AIGLH
  Other
Subsidiaries

  Reclassifications
and
Eliminations

  Consolidated
AIG

 
   

Year Ended December 31, 2011

                               

Revenues:

                               

Equity in earnings of consolidated subsidiaries*

  $ 6,260   $ 1,586   $   $ (7,846 ) $  

Change in fair value of ML III

    (723 )       77         (646 )

Other income

    1,088     189     65,663     (1,189 )   65,751
   

Total revenues

    6,625     1,775     65,740     (9,035 )   65,105
   

Expenses:

                               

Interest expense on FRBNY Credit Facility

    72             (2 )   70  

Other interest expense

    2,845     281     437     (1,189 )   2,374  

Loss on extinguishment of debt

    2,847         61         2,908  

Other expenses

    867         59,787         60,654
   

Total expenses

    6,631     281     60,285     (1,191 )   66,006
   

Income (loss) from continuing operations before income tax expense (benefit)

    (6 )   1,494     5,455     (7,844 )   (901 )

Income tax expense (benefit)

    (19,695 )   (103 )   34         (19,764 )
   

Income (loss) from continuing operations

    19,689     1,597     5,421     (7,844 )   18,863  

Income (loss) from discontinued operations, net of income taxes

    933         1,536     (2 )   2,467
   

Net income (loss)

    20,622     1,597     6,957     (7,846 )   21,330  

Less:

                               

Net income from continuing operations attributable to noncontrolling interests:

                               

Nonvoting, callable, junior and senior preferred interests

                634     634  

Other

            55         55
   

Total net income from continuing operations attributable to noncontrolling interests

            55     634     689  

Net Income from discontinued operations attributable to noncontrolling interests

            19         19
   

Total net income attributable to noncontrolling interests

            74     634     708
   

Net income (loss) attributable to AIG

  $ 20,622   $ 1,597   $ 6,883   $ (8,480 ) $ 20,622
   

*    Eliminated in consolidation.

 

Condensed Consolidating Statements of Comprehensive Income (Loss)

 

 

   
(in millions)
  American
International
Group, Inc.
(As Guarantor)

  AIGLH
  Other
Subsidiaries

  Reclassifications
and
Eliminations

  Consolidated
AIG

 
   

Year Ended December 31, 2013

                               

Net income (loss)

  $ 9,085   $ 3,933   $ 7,761   $ (11,687 ) $ 9,092  

Other comprehensive income (loss)

    (6,214 )   (4,689 )   (6,719 )   11,385     (6,237 )
   

Comprehensive income (loss)

    2,871     (756 )   1,042     (302 )   2,855  

Total comprehensive loss attributable to noncontrolling interests

            (16 )       (16 )
   

Comprehensive income (loss) attributable to AIG

  $ 2,871   $ (756 ) $ 1,058   $ (302 ) $ 2,871
   

Year Ended December 31, 2012

                               

Net income (loss)

  $ 3,438   $ 2,207   $ 2,340   $ (4,285 ) $ 3,700  

Other comprehensive income (loss)

    6,093     3,973     7,158     (11,128 )   6,096
   

Comprehensive income (loss)

    9,531     6,180     9,498     (15,413 )   9,796  

Total comprehensive income attributable to noncontrolling interests

            57     208     265
   

Comprehensive income (loss) attributable to AIG

  $ 9,531   $ 6,180   $ 9,441   $ (15,621 ) $ 9,531
   

Year Ended December 31, 2011

                               

Net income (loss)

  $ 20,622   $ 1,597   $ 6,957   $ (7,846 ) $ 21,330  

Other comprehensive income (loss)

    (2,483 )   1,101     (2,674 )   1,452     (2,604 )
   

Comprehensive income (loss)

    18,139     2,698     4,283     (6,394 )   18,726  

Total comprehensive income (loss) attributable to noncontrolling interests

            (47 )   634     587
   

Comprehensive income (loss) attributable to AIG

  $ 18,139   $ 2,698   $ 4,330   $ (7,028 ) $ 18,139
   

 

Condensed Consolidating Statements of Cash Flows

 

 

   
(in millions)
  American
International
Group, Inc.
(As Guarantor)

  AIGLH
  Other
Subsidiaries
and
Eliminations

  Consolidated
AIG

 
   

Year Ended December 31, 2013

                       
   

Net cash (used in) provided by operating activities

    6,422     4,488     (5,045 )   5,865
   

Cash flows from investing activities:

                         

Sales of investments

    1,425         75,669     77,094  

Purchase of investments

    (5,506 )       (72,381 )   (77,887 )

Loans to subsidiaries – net

    3,660         (3,660 )    

Contributions to subsidiaries – net

    (2,081 )   (1 )   2,082      

Net change in restricted cash

    493         751     1,244  

Net change in short-term investments

    2,361         5,481     7,842  

Other, net

    130         (1,324 )   (1,194 )
   

Net cash (used in) provided by investing activities

    482     (1 )   6,618     7,099
   

Cash flows from financing activities:

                         

Issuance of long-term debt

    2,015         3,220     5,235  

Repayments of long-term debt

    (7,439 )   (245 )   (6,513 )   (14,197 )

Purchase of Common Stock

    (597 )           (597 )

Intercompany loans – net

    (123 )   (273 )   396      

Cash dividends paid

    (294 )   (3,991 )   3,991     (294 )

Other, net

    (517 )       (1,388 )   (1,905 )
   

Net cash (used in) financing activities

    (6,955 )   (4,509 )   (294 )   (11,758 )
   

Effect of exchange rate changes on cash

            (92 )   (92 )
   

Change in cash

    (51 )   (22 )   1,187     1,114  

Cash at beginning of year

    81     73     997     1,151  

Change in cash of businesses held for sale

            (24 )   (24 )
   

Cash at end of year

  $ 30   $ 51   $ 2,160   $ 2,241
   

 

 
 

 

 

 

 
   

Year Ended December 31, 2012

                       
   

Net cash (used in) provided by operating activities

    (825 )   2,682     1,819     3,676
   

Cash flows from investing activities:

                         

Sales of investments

    16,874         84,532     101,406  

Purchase of investments

    (4,406 )       (72,161 )   (76,567 )

Loans to subsidiaries – net

    5,126         (5,126 )    

Contributions to subsidiaries – net

    (152 )       152      

Net change in restricted cash

    (377 )       791     414  

Net change in short-term investments

    (2,029 )       (6,080 )   (8,109 )

Other, net

    259         (791 )   (532 )
   

Net cash provided by investing activities

    15,295         1,317     16,612
   

Cash flows from financing activities:

                         

Issuance of long-term debt

    3,754         4,858     8,612  

Repayments of long-term debt

    (3,238 )       (7,863 )   (11,101 )

Intercompany loans – net

    (2,032 )   (2,622 )   4,654      

Purchase of common stock

    (13,000 )           (13,000 )

Other, net

    (49 )       (5,026 )   (5,075 )
   

Net cash (used in) financing activities

    (14,565 )   (2,622 )   (3,377 )   (20,564 )
   

Effect of exchange rate changes on cash

            16     16
   

Change in cash

    (95 )   60     (225 )   (260 )

Cash at beginning of year

    176     13     1,285     1,474  

Reclassification to assets held for sale

            (63 )   (63 )
   

Cash at end of year

  $ 81   $ 73   $ 997   $ 1,151
   

 

   
(in millions)
  American
International
Group, Inc.
(As Guarantor)

  AIGLH
  Other
Subsidiaries
and
Eliminations

  Consolidated
AIG

 
   

Year Ended December 31, 2011

                         

Net cash (used in) provided by operating activities

  $ (5,600 ) $ 1,277   $ 872   $ (3,451 )

Net cash provided by operating activities – discontinued operations

            3,370     3,370
   

Net cash (used in) provided by operating activities

    (5,600 )   1,277     4,242     (81 )
   

Cash flows from investing activities:

                         

Sales of investments

    2,565         82,468     85,033  

Sales of divested businesses, net

    1,075         (488 )   587  

Purchase of investments

    (19 )       (101,136 )   (101,155 )

Loans to subsidiaries – net

    3,757         (3,757 )    

Contributions to subsidiaries – net

    (15,973 )   (2 )   15,975      

Net change in restricted cash

    1,945         25,299     27,244  

Net change in short-term investments

    (7,130 )       27,118     19,988  

Other, net

    1,543         (1,270 )   273
   

Net cash (used in) provided by investing activities

    (12,237 )   (2 )   44,209     31,970  

Net cash provided by investing activities – discontinued operations

            4,478     4,478
   

Net cash (used in) provided by investing activities

    (12,237 )   (2 )   48,687     36,448
   

Cash flows from financing activities:

                         

FRBNY credit facility repayments

    (14,622 )           (14,622 )

Issuance of long-term debt

    2,135         5,627     7,762  

Repayments of long-term debt

    (6,181 )       (11,629 )   (17,810 )

Proceeds from drawdown on the Department of the Treasury Commitment*

    20,292             20,292  

Issuance of common stock

    5,055             5,055  

Intercompany loans – net

    11,519     (1,262 )   (10,257 )    

Purchase of common stock

    (70 )           (70 )

Other, net

    (164 )       (35,427 )   (35,591 )
   

Net cash (used in) provided by financing activities

    17,964     (1,262 )   (51,686 )   (34,984 )

Net cash (used in) financing activities – discontinued operations

            (1,942 )   (1,942 )
   

Net cash (used in) provided by financing activities

    17,964     (1,262 )   (53,628 )   (36,926 )
   

Effect of exchange rate changes on cash

            29     29
   

Change in cash

    127     13     (670 )   (530 )

Cash at beginning of year

    49         1,509     1,558  

Change in cash of businesses held for sale

            446     446
   

Cash at end of year

  $ 176   $ 13   $ 1,285   $ 1,474
   

*     Includes activities related to the Recapitalization. See Note 24 herein.

 

Supplementary Disclosure of Condensed Consolidating Cash Flow Information

 

 

   
(in millions)
  American
International
Group, Inc.
(As Guarantor)

  AIGLH
  Other
Subsidiaries
and
Eliminations

  Consolidated
AIG

 
   

Cash (paid) received during the year ended December 31, 2013 for:

                         

Interest:

                         

Third party

  $ (1,963 ) $ (111 ) $ (1,782 ) $ (3,856 )

Intercompany

    (12 )   (21 )   33      

Taxes:

                         

Income tax authorities

  $ (161 ) $   $ (635 ) $ (796 )

Intercompany

    288     (78 )   (210 )  
   

Cash (paid) received during the year ended December 31, 2012 for:

                         

Interest:

                         

Third party

  $ (2,089 ) $ (128 ) $ (1,820 ) $ (4,037 )

Intercompany

    (133 )   (56 )   189      

Taxes:

                         

Income tax authorities

  $ (7 ) $   $ (440 ) $ (447 )

Intercompany

    230     (41 )   (189 )  
   

Cash (paid) received during the year ended December 31, 2011 for:

                         

Interest:

                         

Third party*

  $ (6,909 ) $ (128 ) $ (1,948 ) $ (8,985 )

Intercompany

    (311 )   (169 )   480      

Taxes:

                         

Income tax authorities

  $ 13   $   $ (729 ) $ (716 )

Intercompany

    (335 )   1     334    
   

*     Includes payment of FRBNY Credit Facility accrued compounded interest of $4.7 billion in the first quarter of 2011.

 

American International Group, Inc (As Guarantor) supplementary disclosure of non-cash activities:

 

 

 
 


   
   
 
   
Years Ended December 31,
(in millions)
 

2013

  2012
  2011
 
   

Intercompany non-cash financing and investing activities:

 
 
  
           

Capital contributions

 
 
  
           

in the form of bond available for sale securities

 
$
$ 4,078   $  

to subsidiaries through forgiveness of loans

 
 
341
       

Return of capital and dividend received

 
 
  
           

in the form of cancellation of intercompany loan

 
 
  9,303      

in the form of other bond securities

 
 
  3,320     3,668  

Intercompany loan receivable offset by intercompany payable

 
 
      18,284  

Other capital contributions – net

 
 
523
  579     523
   

us-gaap:CondensedFinancialStatementsTextBlock