AIG 2015 Annual Report Download - page 272

ITEM 8 / NOTE 5. INVESTMENTS
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2014, respectively, the majority of which pertains to investments in private equity funds and hedge funds that have been in
continuous unrealized loss positions for less than 12 months.
Other Invested Assets – Equity Method Investments
We account for hedge funds, private equity funds, affordable housing partnerships and other investment partnerships using the
equity method of accounting unless our interest is so minor that we may have virtually no influence over partnership operating
and financial policies, or we have elected the fair value option. Under the equity method of accounting, our carrying amount
generally is our share of the net asset value of the funds or the partnerships, and changes in our share of the net asset values
are recorded in Net investment income with the exception of investments of AIG’s Corporate and Other category, for which
such changes are reported in Other income. In applying the equity method of accounting, we consistently use the most
recently available financial information provided by the general partner or manager of each of these investments, which is one
to three months prior to the end of our reporting period. The financial statements of these investees are generally audited
annually.
Summarized Financial Information of Equity Method Investees
The following is the aggregated summarized financial information of our equity method investees, including those for
which the fair value option has been elected:
Years Ended December 31,
(in millions) 2015 2014 2013
Operating results:
Total revenues $22,055 $ 29,579 $ 19,181
Total expenses (3,898) (7,828) (5,515)
Net income $18,157 $ 21,751 $ 13,666
At December 31,
(in millions) 2015 2014
Balance sheet:
Total assets $ 201,007 $ 207,994
Total liabilities $ (33,424) $ (67,346)
The following table presents the carrying amount and ownership percentage of equity method investments at
December 31, 2015 and 2014:
2015
2014
Carrying Ownership Carrying Ownership
(in millions, except percentages) Value Percentage Value Percentage
Equity method investments $14,259 Various $ 18,951 Various
Summarized financial information for these equity method investees may be presented on a lag, due to the unavailability of
information for the investees at our respective balance sheet dates, and is included for the periods in which we held an equity
method ownership interest.
Other Investments
Also included in Other invested assets are real estate held for investment and investments in aircraft equipment held in
consolidated trusts. These investments are reported at cost, less depreciation and are subject to impairment review, as
discussed below.