AIG 2011 Annual Report Download - page 251

American International Group, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The following table presents AIG’s operations and long-lived assets by major geographic area:
Geographic Area
United Other
(in millions) States Asia Foreign Consolidated
2011
Total revenues(a) $ 40,234 $ 8,119 $ 15,884 $ 64,237
Real estate and other fixed assets, net of accumulated depreciation 1,330 591 386 2,307
Flight equipment primarily under operating leases, net of accumulated
depreciation(b) 35,539 - - 35,539
2010
Total revenues(a) $ 40,993 $ 20,411 $ 16,122 $ 77,526
Real estate and other fixed assets, net of accumulated depreciation 1,896 557 392 2,845
Flight equipment primarily under operating leases, net of accumulated
depreciation(b) 38,510 - - 38,510
2009
Total revenues(a) $ 34,986 $ 23,183 $ 17,278 $ 75,447
Real estate and other fixed assets, net of accumulated depreciation 2,328 1,189 625 4,142
Flight equipment primarily under operating leases, net of accumulated
depreciation(b) 44,091 - - 44,091
(a) Revenues are generally reported according to the geographic location of the reporting unit.
(b) ILFC derives more than 94 percent of its lease revenue from non-U.S. carriers.
AIA Initial Public Offering
During the second quarter of 2010, AIG and Prudential plc terminated the AIA purchase agreement they had
entered in March 2010 and in accordance with the terms of the purchase agreement, Prudential plc paid AIG a
termination fee of $228 million, which is included in Net (gain) loss on sale of properties and divested businesses
in the Consolidated Statement of Operations.
On October 29, 2010, AIG completed an IPO of 8.08 billion ordinary shares of AIA for aggregate gross
proceeds of approximately $20.5 billion. Upon completion of the IPO, AIG owned 33 percent of AIA’s
outstanding shares. Accordingly, AIG deconsolidated AIA and recorded a pre-tax gain of $16.3 billion in 2010.
Under the terms of an agreement with the underwriters, AIG is precluded from selling or hedging more than
one-half of its remaining shares of AIA until April 18, 2012. Based on AIG’s continuing involvement as a result of
its 33 percent ownership and board representation, AIA is not being presented as a discontinued operation in the
Consolidated Financial Statements at December 31, 2011 and 2010. AIG accounts for its investment in AIA under
the fair value option with gains and losses recorded in Net investment income. At December 31, 2011 and 2010,
the fair value of AIG’s retained interest in AIA was approximately $12.4 billion and approximately $11.1 billion,
respectively, and is included in Other invested assets.
The results of operations for the following sales are presented as discontinued operations in AIG’s Consolidated
Statement of Operations.
AIG 2011 Form 10-K 237
4. DIVESTED BUSINESSES, DISCONTINUED OPERATIONS AND
HELD-FOR-SALE CLASSIFICATION
DIVESTED BUSINESSES
DISCONTINUED OPERATIONS