AIG 2008 Annual Report Download - page 316

AIG of up to seven percent of annual salary depending on the employees’ years of service. Pre-tax expense
associated with this plan was $124 million, $114 million and $104 million in 2008, 2007 and 2006, respectively.
19. Ownership and Transactions With Related Parties
(a) Ownership: According to the Schedule 13D filed on January 22, 2009 by Maurice R. Greenberg, Edward
E. Matthews, Starr International Company, Inc., C.V. Starr & Co., Inc., Universal Foundation, Inc., The Maurice R.
and Corinne P. Greenberg Family Foundation, Inc., Maurice R. and Corinne P. Greenberg Joint Tenancy Company,
LLC and C.V. Starr & Co., Inc. Trust, these reporting persons could be deemed to beneficially own
270,491,939 shares of AIG’s common stock at that date. Based on the shares of AIG’s common stock outstanding
at January 30, 2009, this ownership would represent approximately 10.1 percent of the voting stock of AIG.
Although these reporting persons have made filings under Section 16 of the Exchange Act, reporting sales of shares
of common stock, no amendment to the Schedule 13D has been filed to report a change in ownership subsequent to
January 22, 2009.
(b) For discussion of the Series C Preferred Stock and the ownership by the Trust for the sole benefit of the
United States Treasury of a majority of the voting equity interest of AIG, see Note 15 herein.
20. Federal Income Taxes
The pretax components of U.S. and foreign income reflect the locations in which such pretax income
(loss) was generated. The pretax U.S. and foreign income (loss) was as follows:
2008 2007 2006
Years Ended December 31,
(In millions)
U.S .............................................. $(105,179) $ (3,957) $ 9,862
Foreign ........................................... (3,582) 12,900 11,825
Total ............................................. $(108,761) $ 8,943 $21,687
The provision for income taxes were as follows:
2008 2007 2006
Years Ended December 31,
(In millions)
Foreign and U.S. components of actual income tax expense (benefit):
Foreign:
Current ............................................. $ 1,537 $ 3,157 $2,725
Deferred ............................................ (1,812) 461 933
U.S.:
Current ............................................. 169 62 2,764
Deferred ............................................ (8,268) (2,225) 115
Total ................................................ $(8,374) $ 1,455 $6,537
310 AIG 2008 Form 10-K
American International Group, Inc., and Subsidiaries
Notes to Consolidated Financial Statements — (Continued)