AIG 2009 Annual Report Download - page 125

American International Group, Inc., and Subsidiaries
Other Results
The pre-tax income of AIG’s Other operations was as follows:
Percentage Increase/
(Decrease)
Years Ended December 31,
(in millions) 2009 2008 2007 2009 vs. 2008 2008 vs. 2007
Parent & Other:
Interest income $ 2,923 $ 1,649 $ 50 77% -%
Interest expense on FRBNY Credit Facility:
Accrued and compounding interest (2,022) (2,116) - - -
Amortization of prepaid commitment asset (8,359) (9,279) - - -
Total interest expense on FRBNY Credit Facility (10,381) (11,395) - - -
Other interest expense (2,198) (1,940) (1,223) - -
Unallocated corporate expenses (1,149) (967) (649) - -
Restructuring expenses (422) (195) - - -
Change in fair value of ML III*(1,401) (900) - - -
Net realized capital gains (losses) 900 (1,218) (265) - -
Net loss on sale of divested businesses (1,271) -- - -
Other miscellaneous, net 464 (24) 25 - -
Total Parent & Other $(12,535) $(14,990) $(2,062) -% -%
Noncore businesses:
Mortgage Guaranty $ (1,688) $ (2,488) $ (641) -% -%
Other noncore insurance 220 (846) 921 - -
Change in fair value of ML III*1,820 -- - -
Noncore Asset Management (3,586) (5,348) 83 - -
Total Noncore businesses $ (3,234) $ (8,682) $ 363 -% -%
Total Other operations $(15,769) $(23,672) $(1,699) -% -%
* Parent & Other contributed its equity interest in ML III to an AIG subsidiary, reported above in Noncore businesses, during the second quarter of
2009.
Parent & Other
Parent & Other pre-tax loss decreased in 2009 compared to 2008 primarily due to net realized capital gains in 2009
compared to losses in 2008, a decline in interest expense on the FRBNY Credit Facility and increased interest income
in 2009 on intercompany loans, which is eliminated in consolidation. See Consolidated Results — Interest Expense
herein for further discussion of the decline in interest expense. Additionally Parent & Other pre-tax loss in 2009
includes a decline in fair value of AIG’s equity interest in ML III, restructuring expenses, and net losses on sales of
divested businesses. The increased pre-tax loss in 2008 compared to 2007 largely resulted from interest expense on the
FRBNY Credit Facility.
117 AIG 2009 Form 10-K