AIG 2012 Annual Report Download - page 232

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The following table presents the changes in goodwill by reportable segment:
Balance at December 31, 2010:
Goodwill – gross $ 2,529 $ – $ 2,281 $ 4,810
Accumulated impairments (1,196) – (2,281) (3,477)
Net goodwill 1,333 – – 1,333
Increase (decrease) due to:
Acquisition 3 15 8 26
Other(a) 14 – – 14
Balance at December 31, 2011:
Goodwill – gross $ 2,546 $ 15 $ 2,289 $ 4,850
Accumulated impairments (1,196) – (2,281) (3,477)
Net goodwill $ 1,350 $ 15 $ 8 $ 1,373
Increase (decrease) due to:
Acquisition 119 – – 119
Other(a) ––––
Goodwill impairment included in discontinued operations – (15) (8) (23)
Balance at December 31, 2012:
Goodwill – gross
Accumulated impairments
Net goodwill
(a) Includes foreign exchange translation and purchase price adjustments.
Separate accounts represent funds for which investment income and investment gains
and losses accrue directly to the policyholders who bear the investment risk. Each account has specific investment
objectives and the assets are carried at fair value. The assets of each account are legally segregated and are not
subject to claims that arise from any of our other businesses. The liabilities for these accounts are equal to the
account assets.
For discussion of our accounting policies on
liability for unpaid claims and claims adjustment expense, see Note 13 herein.
For discussion of our accounting policies on future policy benefits and life and accident and health
insurance contracts and policyholder contract deposits, see Note 13 herein. See Note 6 herein for additional fair
value information.
Other policyholder funds are reported at cost and include any policyholder funds on
deposit that encompass premium deposits and similar items.
For a discussion of our accounting policies on income taxes, see Note 24 herein.
Other liabilities consist of other funds on deposit, other payables, securities sold under
agreements to repurchase and securities and spot commodities sold but not yet purchased. We have entered into
certain insurance and reinsurance contracts, primarily in our AIG Property Casualty segment, that do not contain
sufficient insurance risk to be accounted for as insurance or reinsurance. Accordingly, the premiums received on
such contracts, after deduction for certain related expenses, are recorded as deposits within Other liabilities in the
Consolidated Balance Sheet. Net proceeds of these deposits are invested and generate Net investment income. As
amounts are paid, consistent with the underlying contracts, the deposit liability is reduced. Also included in Other
liabilities are trade payables for the DIB and GCM, which include option premiums received and payables to
counterparties that relate to unrealized gains and losses on futures, forwards, and options and balances due to
clearing brokers and exchanges. Trade payables for GCM also include cash collateral received from derivative
counterparties that is not contractually nettable against derivative assets.
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AIG 2012 Form 10-K 215
AIG
Property Aircraft
(in millions) Casualty Leasing Other Total
$ 2,665 $ – $ 2,281 $ 4,946
(1,196) – (2,281) (3,477)
$ 1,469 $ – $ – $ 1,469
(k) Separate accounts:
(l) Liability for unpaid claims and claims adjustment expense:
(m) Future policy benefits for life and accident and health insurance contracts and policyholder contract
deposits:
(n) Other policyholder funds:
(o) Income taxes:
(p) Other liabilities:
ITEM 8 / NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES