AIG 2005 Annual Report Download - page 145

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AMERICAN INTERNATIONAL GROUP, INC. AND SUBSIDIARIES
2. Segment Information
Continued
(d) The following table summarizes AIG’s Financial Services operations by major internal reporting unit for the years ended
December 31, 2005, 2004 and 2003:
Financial Services
Total Reclassifications Total
Aircraft Capital Consumer Reportable and Financial
(in millions) Finance Markets(a) Finance Other Segment Eliminations Services
2005
Revenues(b)(c) $ 3,578 $ 3,260 $ 3,613 $ 387 $ 10,838 $ (313) $ 10,525
Interest expense(c) 1,125 3,033 1,005 316 5,479 (200) 5,279
Operating income(c) 679 2,661 901(d) 60 4,301 (25) 4,276
Depreciation expense 1,384 20 38 5 1,447 — 1,447
Capital expenditures 6,193 3 54 50 6,300 — 6,300
Identifiable assets 37,515 90,090 30,704 14,872 173,181 (6,693) 166,488
2004
Revenues(b)(c) $ 3,136 $ 1,278 $ 2,978 $ 835 $ 8,227 $ (732) $ 7,495
Interest expense(c) 993 2,300 705 144 4,142 (101) 4,041
Operating income(c) 642 662 808 90 2,202 (22) 2,180
Depreciation expense 1,273 42 33 18 1,366 – 1,366
Capital expenditures 4,400 29 35 17 4,481 – 4,481
Identifiable assets 33,997 98,303 26,560 13,985 172,845 (6,850) 165,995
2003
Revenues(b)(c) $ 2,897 $ 595 $ 2,642 $ 641 $ 6,775 $ (533) $ 6,242
Interest expense(c) 895 2,272 619 132 3,918 (101) 3,817
Operating income (loss)(c) 672 (188) 623 80 1,187 (5) 1,182
Depreciation expense 1,139 51 34 37 1,261 – 1,261
Capital expenditures 5,362 42 29 28 5,461 – 5,461
Identifiable assets 31,534 82,270 20,571 11,742 146,117 (4,450) 141,667
(a) Certain transactions entered into by AIGFP generate tax credits and benefits which are shown in the income tax line on the consolidated statement of
income. Thus, this source of income is not reflected in the Revenue and Operating Income categories in the above table. The amount of such tax credits
and benefits for the years ended December 31, 2005, 2004, and 2003 are $67 million, $107 million, and $123 million, respectively.
(b) Represents primarily the sum of ILFC aircraft lease rentals, AIGFP hedged financial positions entered into in connection with counterparty transactions
and finance charges from consumer finance operations.
(c) Includes the effect of hedging activities that do not qualify for hedge accounting treatment under FAS 133, including the related foreign exchange gains
and losses. For 2005, 2004 and 2003, the effect was $(34) million, $(27) million and $49 million, respectively, in operating income for Aircraft
Finance and $2.01 billion, $(122) million and $(1.01) billion in both revenues and operating income for Capital Markets.
(d) Includes $62 million of catastrophe related losses.
AIG m Form 10-K 93