AIG 2009 Annual Report Download - page 339

American International Group, Inc., and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Changes in Level 3 fair value measurements
The following table presents changes in AIG’s non-U.S. and U.S. Level 3 plan assets measured at fair value:
Changes in
Net Purchases, Unrealized Gains
Balance at Realized and Sales, Balance at (Losses) on
January 1, Unrealized Issuances and Transfers December 31, Instruments Held
(in millions) 2009 Gains (Losses) Settlements-Net In (Out) 2009 at December 31, 2009
Non-U.S. Plan Assets:
Real estate $ 22 $ (3) $ - $ - $ 19 $ (3)
Private equity 17 4 - - 21 -
Insurance contracts 24 2 3 - 29 -
Total $ 63 $ 3 $ 3 $ - $ 69 $ (3)
U.S. Plan Assets:
Fixed income
U.S. investment grade $ 3 $ 1 $ (3) $ - $ 1 $ -
U.S. high yield 1 - - - 1 -
Mortgage backed
securities 19 4 (6) 35 52 (44)
Other asset-backed
securities 30 (1) (34) 5 - -
Equities – U.S. 1 - - (1) - -
Private equity 159 33 (18) 1 175 (19)
Total $ 213 $ 37 $ (61) $ 40 $ 229 $ (63)
Expected Cash Flows
Funding for the U.S. pension plan ranges from the minimum amount required by ERISA to the maximum amount
that would be deductible for U.S. tax purposes. This range is generally not determined until the fourth quarter.
Contributed amounts in excess of the minimum amounts are deemed voluntary. Amounts in excess of the maximum
amount would be subject to an excise tax and may not be deductible under the Internal Revenue Code. Supplemental
and excess plans’ payments and postretirement plan payments are deductible when paid.
During 2009 AIG contributed $592 million to its U.S. and non-U.S. pension plans. The annual pension contribution
in 2010 is expected to be approximately $134 million for non-U.S. and certain U.S. plans. These estimates are subject
to change, since contribution decisions are affected by various factors including AIG’s liquidity, asset dispositions,
market performance and management’s discretion.
The expected future benefit payments, net of participants’ contributions, with respect to the defined benefit pension
plans and other postretirement benefit plans, are as follows:
Pension Postretirement
Non-U.S. U.S. Non-U.S. U.S.
(in millions) Plans Plans Plans Plans
2010 $ 108 $ 130 $ 1 $ 19
2011 114 142 1 20
2012 120 155 2 20
2013 130 169 2 21
2014 132 182 2 22
2015 - 2019 710 1,141 13 126
331 AIG 2009 Form 10-K