AIG 2011 Annual Report Download - page 151

Off-Balance Sheet Arrangements and Commercial Commitments
The following table summarizes Off-Balance Sheet Arrangements and Commercial Commitments in total, and by
remaining maturity:
Total Amount of Commitment Expiring
December 31, 2011 Amounts
(in millions) Committed 2012 2013 - 2014 2015 - 2016 Thereafter
Guarantees:
Liquidity facilities(a) $ 643 $ 542 $ - $ - $ 101
Standby letters of credit 438 419 15 3 1
Guarantees of indebtedness 170 - - - 170
All other guarantees(b) 516 84 102 157 173
Commitments:
Investment commitments(c) 2,819 2,462 220 137 -
Commitments to extend credit 194 161 32 - 1
Letters of credit 26 25 1 - -
Other commercial commitments(d) 827 33 3 - 791
Total(e) $ 5,633 $ 3,726 $ 373 $ 297 $ 1,237
(a) Primarily represents liquidity facilities provided in connection with certain municipal swap transactions and collateralized bond obligations.
(b) Includes residual value guarantees associated with aircraft and SunAmerica construction guarantees connected to affordable housing
investments. Excludes potential amounts attributable to indemnification obligations included in asset sales agreements. See Note 16 to the
Consolidated Financial Statements.
(c) Includes commitments to invest in private equity, hedge funds and mutual funds and commitments to purchase and develop real estate in the
United States and abroad. The commitments to invest in private equity funds, hedge funds and other funds are called at the discretion of each
fund, as needed for funding new investments or expenses of the fund. The expiration of these commitments is estimated in the table above
based on the expected life cycle of the related fund, consistent with past trends of requirements for funding. Investors under these commitments
are primarily insurance and real estate subsidiaries.
(d) Excludes commitments with respect to pension plans. The annual pension contribution for 2012 is expected to be approximately $91 million for
U.S. and non-U.S. plans.
(e) Does not include guarantees, capital maintenance agreements or other support arrangements among AIG consolidated entities.
Securities Financing
The fair value of securities transferred under repurchase agreements accounted for as sales was $2.1 billion and
$2.7 billion at December 31, 2011 and December 31, 2010, respectively, and the related cash collateral obtained
was $1.6 billion and $2.1 billion at December 31, 2011 and December 31, 2010, respectively.
Arrangements with Variable Interest Entities
While AIG enters into various arrangements with variable interest entities (VIEs) in the normal course of
business, AIG’s involvement with VIEs is primarily as a passive investor in fixed maturities (rated and unrated)
and equity interests issued by VIEs. AIG consolidates a VIE when it is the primary beneficiary of the entity. For a
further discussion of AIG’s involvement with VIEs, see Notes 2 and 11 to the Consolidated Financial Statements.
Indemnification Agreements
AIG is subject to financial guarantees and indemnity arrangements in connection with the sales of businesses
completed pursuant to its asset disposition plan. The various arrangements may be triggered by, among other
things, declines in asset values, the occurrence of specified business contingencies, the realization of contingent
liabilities, developments in litigation, or breaches of representations, warranties or covenants provided by AIG.
These arrangements are typically subject to various time limitations, defined by the contract or by operation of
law, such as statutes of limitation. In some cases, the maximum potential obligation is subject to contractual
limitations, while in other cases no such limitation is specified or applicable.
AIG 2011 Form 10-K 137