AIG 2011 Annual Report Download - page 347

American International Group, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The following table presents a rollforward of Accumulated other comprehensive income (loss):
Unrealized Appreciation Net Derivative
(Depreciation) of Fixed Unrealized Gains (Losses) Change in
Maturity Investments Appreciation Foreign Arising from Retirement
on Which Other-Than- (Depreciation) Currency Cash Flow Plan
Temporary Credit of All Other Translation Hedging Liabilities
(in millions) Impairments Were Taken Investments Adjustments Activities Adjustment Total
Balance, January 1, 2009, net of tax $ - $ (4,452) $ (187) $ (191) $ (1,498) $ (6,328)
Adjustment on April 1, 2009(a) (599) 599 - - - -
Change in unrealized appreciation of investments 2,392 30,829 - - - 33,221
Change in deferred acquisition costs adjustment and
other (345) (3,545) - - - (3,890)
Change in foreign currency translation adjustments - - 2,933 - - 2,933
Change in net derivative losses arising from cash flow
hedging activities - - - 95 - 95
Net actuarial gain - - - - 197 197
Prior service credit - - - - (29) (29)
Change attributable to divestitures and deconsolidations 1 607 (1) - 202 809
Deferred tax liability (724) (9,802) (1,005) (32) (16) (11,579)
Total other comprehensive income 1,324 18,089 1,927 63 354 21,757
Cumulative effect of change in accounting principle, net
of tax (2,537) (6,811) - - - (9,348)
Noncontrolling interests (2) 280 110 - - 388
Balance, December 31, 2009, net of tax $ (1,810) $ 7,145 $ 1,630 $ (128) $ (1,144) $ 5,693
Change in unrealized appreciation of investments 2,645 7,265 - - - 9,910
Change in deferred acquisition costs adjustment and
other (166) (780) - - - (946)
Change in foreign currency translation adjustments - - 703 - - 703
Change in net derivative losses arising from cash flow
hedging activities - - - 105 - 105
Net actuarial loss - - - - (1) (1)
Prior service credit - - - - 10 10
Change attributable to divestitures and deconsolidations 43 (2,845) (2,576) 6 290 (5,082)
Deferred tax asset (liability) (1,293) (1,529) 621 (17) (24) (2,242)
Total other comprehensive income (loss) 1,229 2,111 (1,252) 94 275 2,457
Cumulative effect of change in accounting principle, net
of tax (76) (269) - - - (345)
Noncontrolling interests 2 99 80 - - 181
Balance, December 31, 2010, net of tax $ (659) $ 8,888 $ 298 $ (34) $ (869) $ 7,624
Change in unrealized appreciation of investments 55 5,463 - - - 5,518
Change in deferred acquisition costs adjustment and
other(b) 11 (830) - - - (819)
Change in future policy benefits(c) - (2,302) - - - (2,302)
Change in foreign currency translation adjustments - - 8 - - 8
Change in net derivative losses arising from cash flow
hedging activities - - - 51 - 51
Net actuarial loss - - - - (752) (752)
Prior service credit - - - - 387 387
Change attributable to divestitures and deconsolidations 23 (3,475) (1,906) - 260 (5,098)
Deferred tax asset (liability) (163) (355) 694 (34) 35 177
Total other comprehensive income (loss) (74) (1,499) (1,204) 17 (70) (2,830)
Acquisition of noncontrolling interest - 45 66 - (18) 93
Noncontrolling interests 3 (160) 36 - - (121)
Balance, December 31, 2011, net of tax $ (736) $ 7,594 $ (876) $ (17) $ (957) $ 5,008
(a) Adjustment to reflect adoption of the other-than-temporary impairment accounting standard.
(b) Includes the pre-tax adjustment to Accumulated other comprehensive income related to a $152 million reduction of deferred acquisition costs as a consequence of
the recognition of additional policyholder benefit reserves disclosed below.
(c) The adjustment to policyholder benefit reserves assumes that the unrealized appreciation on available for sale securities is actually realized and that the proceeds are
reinvested at lower yields.
As a result of divestitures in 2010, $2.1 billion of Foreign currency cumulative translation adjustment and
$6.0 billion of Unrealized appreciation of investments were transferred to earnings as net gain on sale.
AIG 2011 Form 10-K 333
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)