AIG 2006 Annual Report Download - page 170

American International Group, Inc. and Subsidiaries
Notes to Consolidated Financial Statements Continued
2. Segment Information
Continued
The following table summarizes the operations by major operating segment for the years ended December 31, 2006,
2005 and 2004:
Operating Segments
Life
Insurance
General & Retirement Financial Asset Consolidation
(in millions) Insurance Services Services Management Other(a) Total and Elimination Consolidated
2006
Revenues(b) $ 49,206 $ 50,163 $ 8,010 $ 5,814 $ (295) $ 112,898 $ 296 $113,194
Interest expense 23 74 6,216 105 533 6,951 — 6,951
Operating income (loss)
before minority interest 10,412 10,032 524 2,346 (1,701) 21,613 74 21,687
Income taxes (benefits) 2,351 2,861 (23) 606 716 6,511 26 6,537
Depreciation expense 274 268 1,655 13 164 2,374 — 2,374
Capital expenditures 375 711 6,278 835 244 8,443 — 8,443
Identifiable assets 167,004 534,977 206,845 97,913 105,279 1,112,018 (132,604) 979,414
2005
Revenues(b) $ 45,174 $ 47,376 $ 10,525 $ 5,325 $ 505 $ 108,905 $ — $108,905
Interest expense 7 83 5,279 11 293 5,673 — 5,673
Operating income (loss)
before minority interest 2,315 8,904 4,276 2,253 (2,535)(c) 15,213 — 15,213
Income taxes (benefits) 140 2,155 1,366 718 (121) 4,258 — 4,258
Depreciation expense 273 268 1,447 43 169 2,200 — 2,200
Capital expenditures 417 590 6,300 25 194 7,526 — 7,526
Identifiable assets 150,667 480,622 166,488 81,080 92,835 971,692 (118,641) 853,051
2004
Revenues(b) $ 41,961 $ 43,402 $ 7,495 $ 4,714 $ 94 $ 97,666 $ — $ 97,666
Interest expense 9 63 4,041 8 306 4,427 — 4,427
Operating income (loss)
before minority interest 3,177 7,925 2,180 2,125 (562) 14,845 — 14,845
Income taxes (benefits) 616 2,525 654 753 (141) 4,407 — 4,407
Depreciation expense 251 262 1,366 19 137 2,035 — 2,035
Capital expenditures 350 480 4,481 11 207 5,529 — 5,529
Identifiable assets 131,658 447,841 165,995 80,075 79,752 905,321 (104,314) 801,007
(a) Includes AIG Parent and other operations which are not required to be repor ted separately. The following table presents the operating loss for AIG’s
Other category for the years ended December 31, 2006, 2005 and 2004:
For the Years Ended December 31,
(in millions) 2006 2005 2004
Operating income (loss):
Equity earnings in unconsolidated entities* $ 193 $ (124) $ 157
Interest expense (859) (541) (435)
Unallocated corporate expenses (555) (413) (316)
Compensation expense — SICO Plans (108) (205) (62)
Compensation expense — Starr tender offer (54) ——
Realized capital gains (losses) (295) 505 94
Regulatory settlement costs —(1,644) —
Other miscellaneous, net (23) (113) —
Total Other $ (1,701) $ (2,535) $ (562)
* Includes current year catastrophe-related losses from unconsolidated entities of $312 million and $96 million for 2005 and 2004, respectively.
There were no significant catastrophe-related losses in 2006.
(b) Represents the sum of General Insurance net premiums earned, Life Insurance & Retirement Ser vices GAAP premiums, net investment income,
Financial Services interest, lease and finance charges, Asset Management net investment income from spread-based products and advisory and
management fees, and realized capital gains (losses).
(c) Includes settlement costs of $1.64 billion as described in Note 12(a) Litigation and Investigations herein.
120 AIG 2006 Form 10-K