AIG 2010 Annual Report Download - page 378

American International Group, Inc., and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
A rollforward of the restructuring liability, reported in Other liabilities on AIG’s Consolidated Balance Sheet, for
the years ended December 31, 2010 and 2009, the cumulative amounts incurred since inception of the
restructuring plan, and the total amounts expected to be incurred are summarized as follows:
Total
Contract Asset Other Subtotal Restructuring
Severance Termination Write- Exit Restructuring Separation and Separation
(in millions) Expenses Expenses Downs Expenses(a) Expenses Expenses Expenses
Year Ended December 31, 2010
Balance, beginning of year $125 $ 20 $ - $ 81 $ 226 $ 360 $ 586
Additional charges (5) 6 5 365 371 45 416
Cash payments (94) (12) - (389) (495) (290) (785)
Non-cash items(b) (3) - (6) - (9) (24) (33)
Changes in estimates 5 1 1 143 150 11 161
Activity of discontinued operations - (6) 1 (25) (30) (51) (81)
Sale of business unit /
deconsolidation (1) (3) (1) 18 13 (36) (23)
Balance, end of year $ 27 $ 6 $ - $ 193 $ 226 $ 15 $ 241
Cumulative amounts incurred since
inception of restructuring plan $240 $ 70 $ 87 $1,068 $1,465 $1,032 $2,497
Total amounts expected to be
incurred(c) $240 $100 $ 87 $1,159 $1,586 $1,043 $2,629
Year Ended December 31, 2009
Balance, beginning of year $ 77 $ 27 $ - $ 87 $ 191 $ 284 $ 475
Additional charges 146 35 34 441 656 506 1,162
Cash payments (91) (23) - (444) (558) (575) (1,133)
Non-cash items(b) (10) (31) (78) (1) (120) 52 (68)
Changes in estimates 13 7 - (20) - (13) (13)
Activity of discontinued operations (6) 5 44 18 61 107 168
Reclassified to Liabilities of
businesses held for sale (4) - - - (4) (1) (5)
Balance, end of year $125 $ 20 $ - $ 81 $ 226 $ 360 $ 586
Cumulative amounts incurred since
inception of restructuring plan $240 $ 63 $ 81 $ 560 $ 944 $ 976 $1,920
Total amounts expected to be
incurred(c) $250 $115 $180 $ 757 $1,302 $1,268 $2,570
(a) Primarily includes professional fees related to (i) disposition activities, (ii) the Recapitalization and (iii) AIGFP unwinding activities.
(b) Primarily represents asset impairment charges, foreign currency translation and reclassification adjustments.
(c) Includes cumulative amounts incurred and future amounts to be incurred that can be reasonably estimated at December 31, 2010.
362 AIG 2010 Form 10-K