AIG 2011 Annual Report Download - page 236

American International Group, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The following table presents the changes in goodwill by reportable segment:
Aircraft
(in millions) Chartis Leasing Other Total
Balance at December 31, 2009:
Goodwill – gross $ 2,480 $ - $ 7,192 $ 9,672
Accumulated impairments (1,196) - (2,281) (3,477)
Net goodwill 1,284 - 4,911 6,195
Increase (decrease) due to:
Acquisition 33 - - 33
Sales of business units - - (69) (69)
Other(a) 16 - (86) (70)
Goodwill impairment included in discontinued operations - - (4,625) (4,625)
Dispositions(b) - - (131) (131)
Balance at December 31, 2010:
Goodwill – gross $ 2,529 $ - $ 2,281 $ 4,810
Accumulated impairments (1,196) - (2,281) (3,477)
Net goodwill $ 1,333 $ - $ - $ 1,333
Increase (decrease) due to:
Acquisition 315 8 26
Other(a) 14 - - 14
Balance at December 31, 2011:
Goodwill – gross $ 2,546 $ 15 $ 2,289 $ 4,850
Accumulated impairments (1,196) - (2,281) (3,477)
Net goodwill $ 1,350 $ 15 $ 8 $ 1,373
(a) Includes foreign exchange translation and purchase price adjustments (PPA).
(b) Reflects the deconsolidation of AIA.
(k) Separate accounts: Separate accounts represent funds for which investment income and investment gains
and losses accrue directly to the policyholders who bear the investment risk. Each account has specific investment
objectives, and the assets are carried at fair value. The assets of each account are legally segregated and are not
subject to claims that arise out of any other business of AIG. The liabilities for these accounts are equal to the
account assets.
(l) Liability for unpaid claims and claims adjustment expense: The liability for unpaid claims and claims
adjustment expense represents the accumulation of estimates for unpaid reported losses and includes provisions
for IBNR losses. Because the reserves are based on estimates, the ultimate liability may be more or less than such
reserves. The methods of determining such estimates and establishing resulting reserves are reviewed and updated
periodically. If the estimate of reserves is determined to be inadequate or redundant, the increase or decrease is
reflected in income. AIG discounts its loss reserves relating to workers’ compensation business written by its U.S.
domiciled subsidiaries as permitted by the domiciliary statutory regulatory authorities.
(m) Future policy benefits for life and accident and health insurance contracts and policyholder contract
deposits: The liabilities for future policy benefits and policyholder contract deposits are established using
assumptions described in Note 13 herein. Future policy benefits for life and accident and health insurance
contracts include provisions for future dividends to participating policyholders, accrued in accordance with all
applicable regulatory or contractual provisions. Also included in Future policy benefits are liabilities for annuities
issued in structured settlement arrangements whereby a claimant has agreed to settle a general insurance claim in
222 AIG 2011 Form 10-K