AIG 2012 Annual Report Download - page 327

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18. NONCONTROLLING INTERESTS
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The following table presents a rollforward of non-controlling interests:
Year Ended December 31, 2012
Balance, beginning of year
Repayment to Department of the Treasury
Net contributions (distributions)
Consolidation (deconsolidation)
Comprehensive income:
Net income
Other comprehensive income (loss), net of tax:
Unrealized gains on investments
Foreign currency translation adjustments
Total other comprehensive income (loss), net of tax
Total comprehensive income
Other
Balance, end of year
Year Ended December 31, 2011
Balance, beginning of year $ – $ 434 $ 434 $ 26,358 $ 1,562 $ 27,920
Repurchase of SPV preferred interests in connection with
Recapitalization – – – (26,432) – (26,432)
Exchange of consideration for preferred stock in connection
with Recapitalization 20,292 – 20,292 – – –
Repayment to Department of the Treasury (12,425) – (12,425) – – –
Net distributions – (21) (21) – (8) (8)
Deconsolidation – (307) (307) – (123) (123)
Acquisition of noncontrolling interest – – – – (489) (489)
Comprehensive income (loss):
Net income (loss) 560 (8) 552 74 82 156
Other comprehensive income (loss), net of tax:
Unrealized losses on investments – (2) (2) – (155) (155)
Foreign currency translation adjustments – – – – 36 36
Total other comprehensive income (loss), net of tax – (2) (2) – (119) (119)
Total comprehensive income (loss) 560 (10) 550 74 (37) 37
Other – – – – (50) (50)
Balance, end of year $ 8,427 $ 96 $ 8,523 $ – $ 855 $ 855
Redeemable noncontrolling interest
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represented preferred
interests in the AIA SPV and ALICO SPV. In connection with the execution of our orderly asset disposition plan, as
well as the repayment of the FRBNY Credit Facility, we transferred two of our wholly owned businesses, AIA and
ALICO, to two newly created SPVs in exchange for all the common and preferred interests (the SPV Preferred
Interests) of those SPVs. On December 1, 2009, AIG transferred the SPV Preferred Interests to the FRBNY in
consideration for a $25 billion reduction of the outstanding loan balance and of the maximum amount of credit
available under the FRBNY Credit Facility and amended the terms of the FRBNY Credit Facility. As part of the
closing of the Recapitalization, the remaining SPV Preferred Interests, with an aggregate liquidation preference of
approximately $20.3 billion at January 14, 2011, were purchased from the FRBNY by AIG and transferred to the
Department of the Treasury as part of the consideration for the exchange of Series F Preferred Stock. Under the
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AIG 2012 Form 10-K310
Redeemable
Noncontrolling interests Non-redeemable
Noncontrolling interests
Held by
Department Held by
(in millions) of Treasury Other Total FRBNY Other Total
$ 8,427 $ 96 $ 8,523 $ – $ 855 $ 855
(8,635) – (8,635) – – –
– 36 36 – (87) (87)
– 68 68 – (27) (27)
208 14 222 – 40 40
–44–55
––––(6)(6)
–44–(1)(1)
208 18 226 – 39 39
– 116 116 – (113) (113)
$ – $ 334 $ 334 $ – $ 667 $ 667
Nonvoting, callable, junior preferred interests held by the Department of Treasury
ITEM 8 / NOTE 18. NONCONTROLLING INTERESTS