AIG 2014 Annual Report Download - page 162

ITEM 7 / LIQUIDITY AND CAPITAL RESOURCES
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• Dividend
We paid a cash dividend of $0.125 per share on AIG Common Stock during each quarter of 2014.
• Repurchase of Common Stock
We repurchased approximately 88 million shares of AIG Common Stock during 2014, for an aggregate purchase price of
approximately $4.9 billion. The total number of shares of AIG Common Stock repurchased in 2014, and the aggregate
purchase price of those shares, reflect our payment of approximately $3.1 billion in the aggregate under five ASR
agreements and the receipt of approximately 53 million shares of AIG Common Stock in the aggregate, including the initial
receipt of 70 percent of the total notional share equivalent, or approximately 9.2 million shares of AIG Common Stock,
under an ASR agreement executed in December 2014.
• Legal Settlement
On October 22, 2014, we made a cash payment of $960 million, which is being held in escrow pending final approval of
the settlement of the Consolidated 2008 Securities Class Action. See Note 16 to the Consolidated Financial Statements
for further discussion.
(a) In January 2015, we received $2.2 billion in additional dividends in the form of cash and fixed maturity securities from our Life Insurance Companies and, in
February 2015, we received $600 million in additional cash dividends from our Non-Life Insurance Companies. These dividends had been declared during the
three-month period ended December 31, 2014.
(b) On January 15, 2015, we issued $1.2 billion aggregate principal amount of 3.875% Notes due 2035 and $800 million aggregate principal amount of 4.375%
Notes due 2055.
Analysis of Sources and Uses of Cash
The following table presents selected data from AIG's Consolidated Statements of Cash Flows:
Years Ended December 31,
(in millions) 2014* 2013 2012
Sources:
Net cash provided by operating activities 5,007 5,865 3,676
Net cash provided by changes in restricted cash - 1,244 414
Net cash provided by other investing activities 15,731 5,855 16,198
Changes in policyholder contract balances 1,719 --
Issuance of long-term debt 6,687 5,235 8,612
Net cash provided by other financing activities - - 4,251
Total sources 29,144 18,199 33,151
Uses:
Change in restricted cash (1,447) --
Change in policyholder contract balances - (547) (690)
Repayments of long-term debt (16,160) (14,197) (11,101)
Repayment of Department of Treasury SPV Preferred Interests - - (8,636)
Purchases of AIG Common Stock (4,902) (597) (13,000)
Net cash used in other financing activities (7,132) (1,652) -
Total uses (29,641) (16,993) (33,427)
Effect of exchange rate changes on cash (74) (92) 16
Increase (decrease) in cash (571) 1,114 (260)
* For 2014, cash decreased by $162 million due to reclassification of $289 million to restricted cash presented in Other assets, partially offset by $127 million
reclassification from Short-term investments, to correct prior period presentation.