AIG 2011 Annual Report Download - page 344

American International Group, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The following table presents the principal Consolidated Balance Sheet line items affected by the Recapitalization
on January 14, 2011, further described in Note 1 herein:
Effect of Recapitalization
Repurchase Exchange
Repayment and and Exchange of Preferred
Termination of SPV Stock for
Increase (Decrease) of FRBNY Preferred Common Total Effect of
(dollars in millions) Credit Facility(a) Interests Stock(c) Recapitalization
Other assets $(24,297) $ (6,140)(b) $ - $ (30,437)
Other liabilities (325) - - (325)
Federal Reserve Bank of New York credit facility (20,689) - - (20,689)
Redeemable noncontrolling nonvoting, callable, junior
preferred interests held by Department of Treasury - 20,292 - 20,292
AIG shareholders’ equity:
Preferred stock
Series C preferred stock - - (23,000) (23,000)
Series E preferred stock - - (41,605) (41,605)
Series F preferred stock - 20,292 (7,378) (7,378)
(20,292)
Series G preferred stock; 20,000 shares issued;
liquidation value $0(d) -- - -
Common stock - - 4,138 4,138
Additional paid-in capital - - 67,845 67,845
Retained Earnings (3,283) - - (3,283)
Noncontrolling nonvoting, callable, junior and senior
preferred interests held by Federal Reserve Bank of
New York - (26,432) - (26,432)
Shares outstanding 1,655,037,962 1,655,037,962
(a) Repayment and Termination of the FRBNY Credit Facility – Funds held in escrow and included in Other assets from the AIA IPO and the
ALICO sale were used to repay the FRBNY Credit Facility. The adjustments to Other assets and Accumulated deficit reflects the write-off of the
unamortized portion of the net prepaid commitment fee asset.
(b) Repurchase and Exchange of SPV Preferred Interests – AIG used remaining net cash proceeds from the AIA IPO and the ALICO sale to pay
down a portion of the liquidation preference on the SPV Preferred Interests held by the FRBNY and drew down approximately $20.3 billion
under the Department of the Treasury Commitment (Series F) to repurchase the FRBNY’s remaining SPV Preferred Interests, which AIG then
transferred to the Department of the Treasury as part of the consideration for the exchange of the Series F Preferred Stock.
(c) Exchange of AIG’s Series C, E and F Preferred Stock for AIG Common Stock. The adjustments represent the exchange of Series C Preferred
Stock, Series E Preferred Stock, and Series F Preferred Stock for AIG Common Stock. As a result of the Recapitalization, the Department of
the Treasury acquired 1,655,037,962 shares of newly issued AIG Common Stock.
(d) In connection with the May Common Stock Offering, the Series G Preferred Stock was cancelled.
330 AIG 2011 Form 10-K