AIG 2008 Annual Report Download - page 303

2008 2007 2006
Years Ended December 31,
(In millions, except per share data)
Denominator for EPS:
Weighted average shares outstanding used in the computation of EPS:
Common stock issued ........................................ 2,872 2,751 2,751
Common stock in treasury ..................................... (252) (179) (153)
Deferred shares ............................................. 14 13 10
Weighted average shares outstanding — basic ........................ 2,634 2,585 2,608
Incremental shares from potential common stock:
Weighted average number of shares arising from outstanding employee stock
plans (treasury stock method)* ................................. — 13 7
Contingently convertible bonds ................................... — — 8
Weighted average shares outstanding — diluted* ...................... 2,634 2,598 2,623
EPS:
Basic:
Income (loss) before cumulative effect of change in accounting
principles ............................................... $ (37.84) $ 2.40 $ 5.38
Cumulative effect of change in accounting principles, net of tax ......... — — 0.01
Net income (loss) ............................................. $ (37.84) $ 2.40 $ 5.39
Diluted:
Income (loss) before cumulative effect of change in accounting
principles ............................................... $ (37.84) $ 2.39 $ 5.35
Cumulative effect of change in accounting principles, net of tax ......... — — 0.01
Net income (loss) ............................................. $ (37.84) $ 2.39 $ 5.36
* Calculated using the treasury stock method. Certain shares arising from share-based employee compensation
plans and the warrant associated with the Series D Preferred Stock were not included in the computation of
diluted EPS because the effect would have been anti-dilutive. The number of shares excluded were 98 million,
8 million and 13 million for the years ended December 31, 2008, 2007 and 2006, respectively.
16. Statutory Financial Data
Statutory surplus and net income (loss) for General Insurance and Life Insurance & Retirement
Services operations in accordance with statutory accounting practices were as follows:
2008 2007 2006
Years Ended December 31,
(In millions)
Statutory surplus(a):
General Insurance ................................... $ 34,616 $37,705 $32,665
Life Insurance & Retirement Services .................... 24,511 33,212 35,058
Statutory net income(loss)(a)(b):
General Insurance(c) ................................. 216 8,018 8,010
Life Insurance & Retirement Services(a) .................. (23,558) 4,465 5,088
AIG 2008 Form 10-K 297
American International Group, Inc., and Subsidiaries
Notes to Consolidated Financial Statements — (Continued)