AIG 2009 Annual Report Download - page 340

American International Group, Inc., and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Defined Contribution Plans
In addition to several small defined contribution plans, AIG sponsors a voluntary savings plan for U.S. employees
which provides for salary reduction contributions by employees and matching U.S. contributions by AIG of up to
seven percent of annual salary depending on the employees’ years of service. Pre-tax expense associated with this plan
was $109 million, $124 million and $114 million in 2009, 2008 and 2007, respectively.
20. Ownership and Transactions With Related Parties
(a) Ownership: According to the Schedule 13D filed on June 5, 2009 by Maurice R. Greenberg, Edward E.
Matthews, Starr International Company, Inc. (Starr International), C.V. Starr & Co. (CV Starr), Inc., Universal
Foundation, Inc. (Universal Foundation), 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, Mr. Greenberg,
Mr. Matthews, Starr International, CV Starr and Universal Foundation could be deemed to beneficially own
14,146,455 shares of AIG Common Stock at that date. Based on the shares of AIG Common Stock outstanding at
January 29, 2010, this ownership would represent approximately 10.5 percent of the common stock of AIG. Although
these reporting persons may have made filings under Section 16 of the Securities Exchange Act of 1934 (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 June 5, 2009.
(b) Reinsurance: Following its deconsolidation, after confirmation from the New York Insurance Department that
AIG is not considered to control Transatlantic notwithstanding AIG’s ownership of 13.9 percent of Transatlantic’s
common stock outstanding, AIG no longer considers Transatlantic to be a related party. At December 31, 2009, AIG’s
credit exposure to Transatlantic in the form of uncollateralized reinsurance assets totaled approximately $1.6 billion
and Transatlantic represented AIG’s largest third-party reinsurer. Transatlantic’s core operating subsidiaries have
financial strength ratings of A by A.M. Best and A+ by S&P.
(c) For discussion of the AIG Series C Preferred Stock and the ownership by the Trust, see Note 16 herein.
21. Federal Income Taxes
The following table presents income (loss) from continuing operations before income tax expense (benefit) by U.S. and
foreign location in which such pretax income (loss) was generated.
Years ended December 31,
(in millions) 2009 2008 2007
U.S. $(16,993) $(105,179) $(3,957)
Foreign 3,345 (1,349) 12,091
Total $(13,648) $(106,528) $ 8,134
AIG 2009 Form 10-K 332