AIG 2013 Annual Report Download - page 245

The following table summarizes the components of ILFC assets and liabilities held-for-sale on the
Consolidated Balance Sheets as of December 31, 2013 and 2012:
Assets:
Equity securities $1
Mortgage and other loans receivable, net 117
Flight equipment primarily under operating leases, net of accumulated depreciation 34,468
Short-term investments 1,861
Cash 63
Premiums and other receivables, net of allowance 308
Other assets 1,864
Assets held for sale 38,682
Less: Loss accrual (6,717)
Total assets held for sale $ 31,965
Liabilities:
Other liabilities $ 3,043
Long-term debt 24,323
Total liabilities held for sale $ 27,366
On December 9, 2012, we entered into a definitive agreement (the Share Purchase Agreement) with Jumbo
Acquisition Limited (Jumbo) for the sale of 80.1 percent of the common stock of ILFC for approximately $4.2 billion in
cash. We determined ILFC met the criteria for held for sale and discontinued operations accounting at December 31,
2012 and, consequently, we recorded a $6.7 billion pre-tax loss and a $4.4 billion after tax loss for the year ended
December 31, 2012. ILFC’s operating results do not include depreciation and amortization expense because
depreciation and amortization expense is not recorded on the assets of a business after the business is classified as
held for sale. As of December 15, 2013, the sale of ILFC to Jumbo had not closed and on December 16, 2013, we
terminated the amended Share Purchase Agreement with Jumbo.
On December 16, 2013 we entered into a definitive agreement with AerCap and AerCap Ireland Limited (AerCap
Ireland), a wholly-owned subsidiary of AerCap, for the sale of 100 percent of the common stock of ILFC (the AerCap
Agreement) for consideration consisting of $3.0 billion of cash, a portion of which will be funded by a special dividend
of $600 million to be paid by ILFC to AIG upon consummation of the transaction, and approximately 97.6 million
newly-issued AerCap common shares. The consideration has a value of approximately $5.4 billion based on
AerCap’s pre-announcement closing price per share of $24.93 on December 13, 2013. In connection with the
AerCap Agreement, we entered into a credit agreement for a senior unsecured revolving credit facility between
AerCap Ireland as borrower and AIG as lender (the Revolving Credit Facility). The Revolving Credit Facility provides
for an aggregate commitment of $1 billion and permits loans for general corporate purposes after the closing of the
AerCap Transaction. The transaction is subject to required regulatory approvals, including all applicable U.S. and
foreign regulatory reviews and approvals, as well as other customary closing conditions. The AerCap Transaction
was approved by AerCap shareholders on February 13, 2014. We determined ILFC met the criteria for held-for-sale
accounting at December 31, 2013. Because we expect to hold approximately 46 percent of the common stock of
combined company upon closing of the transaction, ILFC no longer qualifies for discontinued operations presentation
in the Consolidated Statements of Income. Consequently, ILFC’s results are presented in continuing operations for all
periods presented.
ILFC recognized a $1.1 billion impairment charge related to flight equipment held for use in its separate-company
financial statements in the third quarter of 2013. ILFC concluded the net book values of certain four-engine widebody
aircraft in its fleet were no longer supportable based on the latest cash flow estimates because the estimated holding
period was not likely to be as long as previously anticipated. Sustained high fuel prices, the introduction of more
International Lease Finance Corporation
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AIG 2013 Form 10-K 227
ITEM 8 / NOTE 4. HELD-FOR-SALE CLASSIFICATION, DIVESTED BUSINESSES AND DISCONTINUED
OPERATIONS
December 31, December 31,
(in millions) 2013 2012
$3
229
35,508
658
88
318
2,066
38,870
(9,334)
$ 29,536
$ 3,127
21,421
$ 24,548
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