AIG 2008 Annual Report Download - page 203

Consolidated Statement of Cash Flows
2008 2007 2006
Years Ended December 31,
(In millions)
Summary:
Net cash provided by (used in) operating activities ...................... $ 755 $ 35,171 $ 6,252
Net cash provided by (used in) investing activities ....................... 47,484 (67,834) (66,914)
Net cash provided by (used in) financing activities ...................... (41,919) 33,307 60,241
Effect of exchange rate changes on cash .............................. 38 50 114
Change in cash ................................................ 6,358 694 (307)
Cash at beginning of year ........................................ 2,284 1,590 1,897
Cash at end of year ............................................. $ 8,642 $ 2,284 $ 1,590
Cash flows from operating activities:
Net income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (99,289) $ 6,200 $ 14,048
Adjustments to reconcile net income (loss) to net cash provided by operating
activities:
Noncash revenues, expenses, gains and losses included in income (loss):
Unrealized market valuation losses on AIGFP super senior credit default swap
portfolio.................................................. $ 28,602 $ 11,472 $ —
Net (gains) losses on sales of securities available for sale and other assets . . . . . . 5,572 (1,349) (763)
Foreign exchange transaction (gains) losses . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,958) (104) 1,795
Net unrealized (gains) losses on non-AIGFP derivatives and other assets and
liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23,575 116 (713)
Equity in (income) loss from equity method investments, net of dividends or
distributions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,410 (4,760) (3,990)
Amortization of deferred policy acquisition costs . . . . . . . . . . . . . . . . . . . . . . . 12,400 11,602 11,578
Depreciation and other amortization. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,523 3,913 3,564
Provision for mortgage, other loans and finance receivables . . . . . . . . . . . . . . . . 1,445 646 495
Other-than-temporary impairments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,958 4,715 944
Impairments of goodwill and other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,538 ——
Amortization of costs related to Federal Reserve Bank of New York credit
facility ................................................... 11,218 ——
Changes in operating assets and liabilities:
General and life insurance reserves . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,787 16,242 12,930
Premiums and insurance balances receivable and payable — net . . . . . . . . . . . . . (258) (207) (1,214)
Reinsurance assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (565) 923 1,665
Capitalization of deferred policy acquisition costs . . . . . . . . . . . . . . . . . . . . . . . (14,610) (15,987) (15,486)
Investment income due and accrued . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 364 (401) (249)
Funds held under reinsurance treaties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (163) (151) (1,612)
Other policyholder funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 763 1,374 (498)
Income taxes receivable and payable — net . . . . . . . . . . . . . . . . . . . . . . . . . . . (8,992) (3,709) 2,003
Commissions, expenses and taxes payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1) 989 408
Other assets and liabilities — net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,567) 3,255 (444)
Trade receivables and payables — net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6,698) 2,243 (198)
Trading securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,746 (2,850) (7,936)
Net unrealized (gain) loss on swaps, options and forward transactions (net of
collateral) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (37,996) 1,413 (1,482)
Securities purchased under agreements to resell. . . . . . . . . . . . . . . . . . . . . . . . . 16,971 9,341 (16,568)
Securities sold under agreements to repurchase . . . . . . . . . . . . . . . . . . . . . . . . . (3,020) (11,391) 9,552
Securities and spot commodities sold but not yet purchased . . . . . . . . . . . . . . . . (2,027) 633 (1,899)
Finance receivables and other loans held for sale — originations and purchases . . (349) (5,145) (10,822)
Sales of finance receivables and other loans — held for sale . . . . . . . . . . . . . . . . 558 5,671 10,603
Other,net................................................... (182) 477 541
Total adjustments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,044 28,971 (7,796)
Net cash provided by operating activities ............................... $ 755 $ 35,171 $ 6,252
See Accompanying Notes to Consolidated Financial Statements
AIG 2008 Form 10-K 197
American International Group, Inc., and Subsidiaries