AIG 2011 Annual Report Download - page 254

American International Group, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Prior to the Recapitalization, the terms of the FRBNY Credit Facility contractually required net proceeds from
dispositions, after taxes and transaction expenses, to the extent such proceeds did not represent capital of AIG’s
insurance subsidiaries required for regulatory or ratings purposes, to be applied toward the repayment of the
FRBNY Credit Facility as mandatory prepayments unless otherwise agreed with the FRBNY. Mandatory
prepayments reduced the amount available to be borrowed under the FRBNY Credit Facility by the amount of
the prepayment. In conjunction with anticipated prepayments, AIG allocated interest expense, including periodic
amortization of the prepaid commitment fee asset, to Income (loss) from discontinued operations. As a result of
the revised terms for repayment of the FRBNY Credit Facility, interest expense that was previously allocated to
discontinued operations in connection with the sales of AIG Star, AIG Edison and Nan Shan was reclassified to
continuing operations for all periods presented.
At December 31, 2011, AIG had completed the sales of its remaining assets and liabilities that had been
classified as held-for-sale. At December 31, 2010, held-for-sale assets and liabilities consisted of Nan Shan, AIG
Star, and AIG Edison, and aircraft that remained to be sold by ILFC under agreements for sale.
The following table summarizes the components of assets and liabilities held for sale on the Consolidated
Balance Sheet as of December 31, 2010:
December 31,
(in millions) 2010
Assets:
Fixed maturity securities $ 77,905
Equity securities 4,488
Mortgage and other loans receivable, net 5,584
Other invested assets 4,167
Short-term investments 3,670
Deferred policy acquisition costs and Other assets 7,639
Separate account assets 3,745
Assets of businesses held for sale 107,198
Flight equipment*255
Total assets held for sale $ 107,453
Liabilities:
Future policy benefits for life and accident and health insurance contracts $ 61,767
Policyholder contract deposits 26,847
Other liabilities 4,428
Other long-term debt 525
Separate account liabilities 3,745
Total liabilities held for sale $ 97,312
* Represents nine aircraft that were under agreements for sale by ILFC at December 31, 2010.
On March 31, 2010, AIG, through a Chartis subsidiary, purchased additional voting shares in Fuji, a publicly
traded Japanese insurance company with property/casualty insurance operations and a life insurance subsidiary.
The acquisition of the additional voting shares for $145 million increased Chartis’ total voting ownership interest
in Fuji from 41.7 percent to 54.8 percent, which resulted in Chartis obtaining control of Fuji. In connection with
the acquisition, AIG recognized a bargain purchase gain of $332 million in the Consolidated Statement of
Operations for the year ended December 31, 2010. The bargain purchase gain was primarily attributable to the
240 AIG 2011 Form 10-K
HELD-FOR-SALE CLASSIFICATION
5. BUSINESS COMBINATIONS