AIG 2013 Annual Report Download - page 158

We enter into various arrangements with variable interest entities (VIEs) in the normal course of business, and we
consolidate a VIE when we are the primary beneficiary of the entity. For a further discussion of our involvement with
VIEs, see Note 10 to the Consolidated Financial Statements.
We are subject to financial guarantees and indemnity arrangements in connection with our sales of businesses.
These arrangements may be triggered by declines in asset values, specified business contingencies, the realization
of contingent liabilities, litigation developments, or breaches of representations, warranties or covenants provided by
us. These arrangements are typically subject to time limitations, defined by the contract or by operation of law, such
as by prevailing statutes of limitation. Depending on the specific terms of the arrangements, the maximum potential
obligation may or may not be subject to contractual limitations. For additional information regarding our
indemnification agreements, see Note 15 to the Consolidated Financial Statements.
We have recorded liabilities for certain of these arrangements where it is possible to estimate them. These liabilities
are not material in the aggregate. We are unable to develop a reasonable estimate of the maximum potential payout
under some of these arrangements. Overall, we believe that it is unlikely we will have to make any material
payments under these arrangements.
The following table provides the rollforward of AIG’s total debt outstanding:
Debt issued or guaranteed by AIG:
AIG general borrowings:
Notes and bonds payable $ 14,084 $ 2,024 $ (2,148) $ 83 $ 19
Subordinated debt 250 – – – –
Junior subordinated debt 9,416 – (3,910) 21 6
Loans and mortgages payable 79 – (78) – –
AIGLH notes and bonds payable 298 – – – 1
AIGLH junior subordinated debt(a) 1,339 – (286) – 1
Total AIG general borrowings 25,466 2,024 (6,422) 104 27
AIG/DIB borrowings supported by
assets:(b)
MIP notes payable 9,296 – (1,082) (183) (68)
Series AIGFP matched notes and
bonds payable 3,544 – (300) – (25)
GIAs, at fair value 6,501 528 (927) – (572)(c)
Notes and bonds payable, at fair
value 1,554 34 (613) – 242(c)
Total AIG/DIB borrowings supported by
assets 20,895 562 (2,922) (183) (423)
Total debt issued or guaranteed by
AIG 46,361 2,586 (9,344) (79) (396)
Debt not guaranteed by AIG:
Other subsidiaries notes, bonds, loans
and mortgages payable 325 546 (207) (26) 18
Debt of consolidated investments(d) 1,814 150 (126) 18 53
Total debt not guaranteed by AIG 2,139 696 (333) (8) 71
Total debt(e) $ 48,500 $ 3,282 $ (9,677) $ (87) $ (325)
(a) On July 11, 2013, AIGLH junior subordinated debentures with the same terms as the trust preferred securities were distributed to holders of the
trust preferred securities, and the trust preferred securities were cancelled.
Arrangements with Variable Interest Entities
Indemnification Agreements
Debt
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AIG 2013 Form 10-K140
ITEM 7 / LIQUIDITY AND CAPITAL RESOURCES
Balance at Maturities Effect of Balance at
Year Ended December 31, 2013 December 31, and Foreign Other December 31,
(in millions) 2012 Issuances Repayments Exchange Changes 2013
$ 14,062
250
5,533
1
299
1,054
21,199
7,963
3,219
5,530
1,217
17,929
39,128
656
1,909
2,565
$ 41,693
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