AIG 2013 Annual Report Download - page 341

The following table presents income (loss) from continuing operations before income tax expense (benefit)
by U.S. and foreign location in which such pre-tax income (loss) was earned or incurred.
U.S. $ (948) $ (1,626)
Foreign 3,839 725
Total $ 2,891 $ (901)
The following table presents the income tax expense (benefit) attributable to pre-tax income (loss) from
continuing operations:
Foreign and U.S. components of actual income tax expense:
Foreign:
Current $ 484 $ 303
Deferred (275) 48
U.S.:
Current 278 (208)
Deferred (1,295) (19,907)
Total $ (808) $ (19,764)
Our actual income tax (benefit) expense differs from the statutory U.S. federal amount computed by applying
the federal income tax rate due to the following:
U.S. federal income tax at
statutory rate adjustments: $ 2,891 $ 1,012 35.0% $ 2,604 $ 911 35.0%
Tax exempt interest (302) (10.4) (454) (17.4)
Investment in subsidiaries
and partnerships (26) (0.9) (224) (8.6)
Uncertain tax positions 446 15.4 (25) (1.0)
Dividends received deduction (58) (2.0) (52) (2.0)
Effect of foreign operations 171 5.9 (386) (14.8)
State income taxes (48) (1.7) (87) (3.3)
Other (96) (3.3) 88 5.0
Effect of discontinued
operations – – (190) (7.3)
Valuation allowance:
Continuing operations (1,907) (65.9) (18,307) NM
Consolidated total amounts 2,891 (808) (27.9) 2,604 (18,726) NM
Amounts attributable to
discontinued operations – – – 3,505 1,038 29.6
Amounts attributable to
continuing operations $ 2,891 $ (808) (27.9)% $ (901) $ (19,764) NM%
For the year ended December 31, 2013, the effective tax rate on income from continuing operations was 3.8 percent.
The effective tax rate on income from continuing operations differs from the statutory tax rate of 35 percent primarily
due to tax benefits of $2.8 billion related to a decrease in AIG Life and Retirement’s capital loss carryforward
valuation allowance, $396 million related to a decrease in certain other valuation allowances associated with foreign
23. INCOME TAXES
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AIG 2013 Form 10-K 323
ITEM 8 / NOTE 23. INCOME TAXES
Years Ended December 31,
(in millions) 2013 2012 2011
$ 8,058
1,310
$ 9,368
Years Ended December 31,
(in millions) 2013 2012 2011
$ 548
(442)
131
123
$ 360
2013 2012 2011
Percent of Percent of
Pre-Tax Tax Pre-Tax Pre-Tax Tax Pre-Tax Tax Percent of
Years Ended December 31, Income Expense/ Income Income Expense/ Income Pre-Tax Expense/ Pre-Tax
(dollars in millions) (Loss) (Benefit) (Loss) (Loss) (Benefit) (Loss) Income (Benefit) Income
$ 9,518 $ 3,331 35.0%
(298) (3.1)
––
632 6.6
(75) (0.8)
(5) –
(21) (0.2)
13 0.1
14 0.2
(3,165) (33.3)
9,518 426 4.5
150 66 44.0
$ 9,368 $ 360 3.8%
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