AIG 2006 Annual Report Download - page 156

American International Group, Inc. and Subsidiaries
Consolidated Statement of Cash Flows
Years Ended December 31,
(in millions) 2006 2005 2004
Summary:
Net cash provided by operating activities $ 6,829 $ 25,382 $ 29,414
Net cash used in investing activities (67,040) (62,500) (92,596)
Net cash provided by financing activities 59,790 37,169 64,217
Effect of exchange rate changes on cash 114 (163) 52
Change in cash (307) (112) 1,087
Cash at beginning of year 1,897 2,009 922
Cash at end of year $ 1,590 $ 1,897 $ 2,009
Cash flows from operating activities:
Net income $ 14,048 $ 10,477 $ 9,839
Adjustments to reconcile net income to net cash provided by operating activities:
Noncash revenues, expenses, gains and losses included in income:
Net gains on sales of securities available for sale and other assets (763) (1,218) (1,003)
Foreign exchange transaction (gains) losses 1,795 (3,330) 1,231
Net unrealized (gains) losses on non-AIGFP derivative assets and liabilities (713) 878 (648)
Equity in income of partially owned companies and other invested assets (3,990) (1,421) (1,279)
Amortization of deferred policy acquisition costs 11,578 10,693 9,815
Amortization of premium and discount on securities 699 207 502
Depreciation expenses, principally flight equipment 2,374 2,200 2,035
Provision for finance receivable losses 495 435 389
Impairment losses 944 598 684
Changes in operating assets and liabilities:
General and life insurance reserves 13,173 27,299 22,818
Premiums and insurance balances receivable and payable — net (1,214) 192 (953)
Reinsurance assets 1,665 (5,365) 1,032
Capitalization of deferred policy acquisition costs (15,363) (14,454) (13,334)
Investment income due and accrued (235) (171) (916)
Funds held under reinsurance treaties (1,612) 770 361
Other policyholders’ funds (953) 518 962
Income taxes payable 2,003 1,543 1,356
Commissions, expenses and taxes payable 408 140 (16)
Other assets and liabilities — net 331 2,966 1,943
Bonds, common and preferred stocks trading, at fair value (7,851) (5,448) (3,189)
Trading assets and liabilities — net (668) 2,272 (4,783)
Trading securities, at fair value 1,339 (3,753) 1,254
Spot commodities (128) 442 (289)
Net unrealized (gain) loss on swaps, options and forward transactions (1,482) 934 2,302
Securities purchased under agreements to resell (19,154) 11,725 (5,427)
Securities sold under agreements to repurchase 11,645 (12,534) 5,688
Securities and spot commodities sold but not yet purchased, at market value (1,899) 571 (269)
Finance receivables held for sale — originations and purchases (10,786) (13,070) (6,504)
Sales of finance receivables — held for sale 10,602 12,821 5,784
Other, net 541 (1,535) 29
Total adjustments (7,219) 14,905 19,575
Net cash provided by operating activities $ 6,829 $ 25,382 $ 29,414
See Accompanying Notes to Consolidated Financial Statements.
106 AIG 2006 Form 10-K