AIG 2013 Annual Report Download - page 234

American International Group, Inc. (AIG) is a leading international insurance organization serving customers in more
than 130 countries. AIG companies serve commercial, institutional and individual customers through one of the most
extensive worldwide property-casualty networks of any insurer. In addition, AIG companies are leading providers of
life insurance and retirement services in the United States. AIG Common Stock, par value $2.50 per share (AIG
Common Stock), is listed on the New York Stock Exchange (NYSE: AIG) and the Tokyo Stock Exchange. Unless the
context indicates otherwise, the terms ‘‘AIG,’’ ‘‘we,’’ ‘‘us’’ or ‘‘our’’ mean American International Group, Inc. and its
consolidated subsidiaries and the term ‘‘AIG Parent’’ means American International Group, Inc. and not any of its
consolidated subsidiaries.
The consolidated financial statements include the accounts of AIG Parent, our controlled subsidiaries (generally
through a greater than 50 percent ownership of voting rights of a voting interest entity), and variable interest entities
(VIEs) of which we are the primary beneficiary. Equity investments in entities that we do not consolidate, including
corporate entities in which we have significant influence and partnership and partnership-like entities in which we
have more than minor influence over operating and financial policies, are accounted for under the equity method
unless we have elected the fair value option.
Certain of our foreign subsidiaries included in the consolidated financial statements report on different annual fiscal
year bases, in most cases ending November 30. The effect on our consolidated financial condition and results of
operations of all material events occurring at these subsidiaries between such fiscal year end and December 31 for
all periods presented in these consolidated financial statements has been recorded.
The accompanying consolidated financial statements have been prepared in accordance with accounting principles
generally accepted in the United States (GAAP). All material intercompany accounts and transactions have been
eliminated.
Segment changes are discussed in Note 3 herein.
Advisory fee income, and the related commissions and advisory fee expenses of AIG Life and Retirement’s broker
dealer business, are now being presented on a gross basis within Other income and Other expenses, respectively.
Previously, these amounts were included on a net basis within Policy fees in AIG’s Consolidated Statements of
Income and in AIG Life and Retirement’s segment results.
In addition, policyholder benefits related to certain payout annuities, primarily with life contingent features, are now
being presented in the Consolidated Balance Sheets as Future policy benefits for life and accident and health
insurance contracts instead of as Policyholder contract deposits.
Prior period amounts were conformed to the current period presentation. These changes did not affect Income from
continuing operations before income tax expense, Net income attributable to AIG or Total liabilities.
On December 16, 2013, we entered into a definitive agreement with AerCap Holdings N.V. (AerCap) and AerCap
Ireland Limited (Purchaser), a wholly-owned subsidiary of AerCap for the sale of 100 percent of the common stock of
International Lease Finance Corporation (ILFC). Based on the terms of this agreement, notably AIG’s interest of
46 percent of the common shares of AerCap upon consummation of the sale of ILFC to AerCap, we determined
ILFC no longer met the criteria at December 31, 2013 to be presented as a discontinued operation. ILFC’s results
are reflected in Aircraft leasing revenue and Aircraft leasing expenses and the loss associated with the 2012
classification of ILFC as held for sale is included in Net loss on sale of properties and divested businesses in the
Consolidated Statements of Income. The assets and liabilities of ILFC are classified as held-for-sale at December 31,
2013 and 2012 in the Consolidated Balance Sheets. See Note 4 herein for further discussion.
1. BASIS OF PRESENTATION
AIG Life and Retirement
Sale of ILFC
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AIG 2013 Form 10-K216
ITEM 8 / NOTE 1. BASIS OF PRESENTATION
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