AIG 2010 Annual Report Download - page 320

American International Group, Inc., and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
In addition to GMDB, AIG’s contracts currently include to a lesser extent GMIB. The GMIB liability is
determined each period end by estimating the expected value of the annuitization benefits in excess of the
projected account balance at the date of annuitization and recognizing the excess ratably over the accumulation
period based on total expected assessments. AIG periodically evaluates estimates used and adjusts the additional
liability balance, with a related charge or credit to benefit expense, if actual experience or other evidence suggests
that earlier assumptions should be revised.
AIG contracts currently include GMAV and GMWB benefits. GMAV and GMWB considered to be embedded
derivatives are recognized at fair value through earnings. AIG enters into derivative contracts to economically
hedge a portion of the exposure that arises from GMAV and GMWB. At December 31, 2010, AIG had
$12.7 billion of account values and $1.1 billion of net amount at risk that were attributable to variable annuities
with these living benefit features. See Note 6 herein for additional fair value disclosures.
15. Debt Outstanding
The following table summarizes AIG’s total debt outstanding:
At December 31,
(in millions) 2010 2009
FRBNY Credit Facility (secured) $ 20,985 $ 23,435
Other long-term debt 85,476 113,298
Federal Reserve Bank of New York commercial paper funding facility -4,739
Total debt $106,461 $141,472
AIG has issued long-term debt denominated in various currencies, although predominantly in U.S. dollars, with
both fixed and variable interest rates.
304 AIG 2010 Form 10-K