AIG 2011 Annual Report Download - page 82

2010 and 2009 Comparison
The decrease in Amortization of deferred acquisition costs in 2010 compared to 2009 primarily resulted from
the dispositions of HSB, 21st Century, AIG Life Canada and Transatlantic in 2009 and from the decrease in
amortization for SunAmerica related to improved equity market conditions.
Other Acquisition and Insurance Expenses
2011 and 2010 Comparison
Other acquisition and insurance expenses decreased in 2011 compared to 2010 as a result of the deconsolidation
of AIA in the fourth quarter of 2010, partially offset by the consolidation of Fuji commencing in the third quarter
of 2010. AIA other acquisition and insurance expenses in 2010 totaled $1.6 billion.
2010 and 2009 Comparison
Other acquisition and insurance expenses decreased slightly in 2010 compared to 2009 as a result of a
$1.0 billion decrease related to the dispositions in 2009 noted above, partially offset by increased expenses at
Chartis, primarily resulting from the consolidation of Fuji noted above.
Interest Expense
2011 and 2010 Comparison
Interest expense decreased in 2011 compared to 2010 primarily as a result of the repayment and termination of
the FRBNY Credit Facility on January 14, 2011. Interest expense on the FRBNY Credit Facility was $72 million
in 2011 through the date of termination compared to $4.1 billion in 2010, including amortization of the prepaid
commitment fee asset of $48 million and $3.5 billion in 2011 and 2010, respectively. See Note 1 to the
Consolidated Financial Statements for further discussion regarding the repayment of the FRBNY Credit Facility in
connection with the Recapitalization in January 2011.
2010 and 2009 Comparison
Interest expense decreased in 2010 primarily due to lower interest expense on the FRBNY Credit Facility
reflecting a reduced weighted average interest rate on borrowings, a lower average outstanding balance and a
decline in amortization of the prepaid commitment fee asset as set forth below.
Years Ended December 31,
(dollars in millions) 2010 2009
Weighted average interest rate 3.3% 4.5%
Average outstanding balance (excluding paid in kind interest) $ 18,775 $37,358
Periodic amortization of prepaid commitment fee asset $ 1,766 $ 3,174
Accelerated amortization of prepaid commitment fee asset $ 1,705 $ 5,185
Aircraft Leasing Expenses
ILFC recorded impairment charges, fair value adjustments and lease-related charges of $1.7 billion in both 2011
and 2010 and charges of $51 million in 2009. See Segment Results — Aircraft Leasing Operations — Aircraft
Leasing Results for additional information.
68 AIG 2011 Form 10-K