AIG 2015 Annual Report Download - page 253

ITEM 8 / NOTE 4. FAIR VALUE MEASUREMENTS
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Counterparty netting and cash collateral - - - (2,102) (1,119) (3,221)
Total derivative assets 100 4,626 99 (2,102) (1,119) 1,604
Short-term investments 584 1,100 - - - 1,684
Separate account assets 73,939 6,097 - - - 80,036
Total $ 81,232 $ 255,366 $ 44,362 $ (2,102) $ (1,119) $ 377,739
Liabilities:
Policyholder contract deposits $ - $ 52 $ 1,509 $ - $ - $ 1,561
Other policyholder funds - 8 - - - 8
Derivative liabilities:
Interest rate contracts - 3,047 86 - - 3,133
Foreign exchange contracts - 1,482 9 - - 1,491
Equity contracts - 98 4 - - 102
Commodity contracts - 6 - - - 6
Credit contracts - - 982 - - 982
Other contracts - - 90 - - 90
Counterparty netting and cash collateral - - - (2,102) (1,429) (3,531)
Total derivative liabilities - 4,633 1,171 (2,102) (1,429) 2,273
Long-term debt - 5,253 213 - - 5,466
Other liabilities 34 316 - - - 350
Total $ 34 $ 10,262 $ 2,893 $ (2,102) $ (1,429) $ 9,658
* Represents netting of derivative exposures covered by qualifying master netting agreements.
Transfers of Level 1 and Level 2 Assets and Liabilities
Our policy is to record transfers of assets and liabilities between Level 1 and Level 2 at their fair values as of the end of each
reporting period, consistent with the date of the determination of fair value. Assets are transferred out of Level 1 when they are
no longer transacted with sufficient frequency and volume in an active market. Conversely, assets are transferred from Level 2
to Level 1 when transaction volume and frequency are indicative of an active market. During the years ended December 31,
2015 and 2014, we transferred $695 million and $590 million, respectively, of securities issued by Non-U.S. government
entities from Level 1 to Level 2, because they are no longer considered actively traded. For similar reasons, during the years
ended December 31, 2015 and 2014, we transferred $181 million and $107 million, respectively, of securities issued by the
U.S. government and government-sponsored entities from Level 1 to Level 2. There were no material transfers from Level 2 to
Level 1 during the years ended December 31, 2015 and 2014.