AIG 2014 Annual Report Download - page 169

ITEM 7 / LIQUIDITY AND CAPITAL RESOURCES

152
Contingent Liquidity Facilities
AIG Parent has access to a contingent liquidity facility of up to $500 million as a potential source of liquidity for general
corporate purposes. Under this facility, we have the unconditional right, prior to December 15, 2015, to issue up to $500 million
in senior debt to the counterparty, based on a put option agreement between AIG Parent and the counterparty.
Our ability to borrow under this facility is not contingent on our credit ratings.
Contractual Obligations
The following table summarizes contractual obligations in total, and by remaining maturity:
December 31, 2014 Payments due by Period
Total 2016 - 2018 -
(in millions) Payments 2015 2017 2019 Thereafter
Insurance operations
Loss reserves $80,424 $21,612 $24,154 $ 12,248 $22,410
Insurance and investment contract liabilities 226,219 13,870 27,617 24,705 160,027
Borrowings 820 - - - 820
Interest payments on borrowings 1,430 64 128 128 1,110
Operating leases 1,169 308 404 217 240
Other long-term obligations 23 610 4 3
Tota l $310,085 $35,860 $52,313 $ 37,302 $184,610
Other
Borrowings $26,656 $1,980 $5,149 $ 4,722 $14,805
Interest payments on borrowings 16,363 1,288 2,359 1,755 10,961
Operating leases 135 41 52 17 25
Other long-term obligations 234 -95 14 125
Tota l $43,388 $3,309 $7,655 $ 6,508 $25,916
Consolidated
Loss reserves $80,424 $21,612 $24,154 $ 12,248 $22,410
Insurance and investment contract liabilities 226,219 13,870 27,617 24,705 160,027
Borrowings 27,476 1,980 5,149 4,722 15,625
Interest payments on borrowings 17,793 1,352 2,487 1,883 12,071
Operating leases 1,304 349 456 234 265
Other long-term obligations(a) 257 6105 18 128
Tota l(b) $353,473 $39,169 $59,968 $ 43,810 $210,526
(a) Primarily includes contracts to purchase future services and other capital expenditures.
(b) Does not reflect unrecognized tax benefits of $4.4 billion, the timing of which is uncertain.
Loss Reserves
Loss reserves relate to our Non-Life Insurance Companies and represent future losses and loss adjustment expense
payments estimated based on historical loss development payment patterns. Due to the significance of the assumptions used,
the payments by period presented above could be materially different from actual required payments. We believe that our Non-
Life Insurance Companies maintain adequate financial resources to meet the actual required payments under these
obligations.
Insurance and Investment Contract Liabilities
Insurance and investment contract liabilities, including GIC liabilities, relate to our Life Insurance Companies. These liabilities
include various investment-type products with contractually scheduled maturities, including periodic payments of a term certain