AIG 2013 Annual Report Download - page 314

portion of the purchase price. These commitments are related to businesses held for sale. See Note 4 for a
discussion of the ILFC transaction.
The following table presents the minimum future rental income on noncancelable operating leases of flight
equipment that has been delivered:
2014 $ 3,648
2015 3,034
2016 2,474
2017 1,857
2018 1,194
Remaining years after 2018 2,328
Total $ 14,535
Flight equipment is leased under operating leases with remaining terms ranging from one to thirteen years.
In the normal course of business, we enter into commitments to invest in limited partnerships, private equity funds
and hedge funds and to purchase and develop real estate in the U.S. and abroad. These commitments totaled
$2.4 billion at December 31, 2013.
We have issued unconditional guarantees with respect to the prompt payment, when due, of all present and future
payment obligations and liabilities of AIG Financial Products Corp. and AIG Trading Group Inc. and their respective
subsidiaries (collectively, AIGFP) and of AIG Markets, Inc. (AIG Markets) arising from transactions entered into by
AIG Markets.
In connection with AIGFP’s business activities, AIGFP has issued, in a limited number of transactions, standby letters
of credit or similar facilities to equity investors in an amount equal to the termination value owing to the equity
investor by the lessee in the event of a lessee default (the equity termination value). The total amount outstanding at
December 31, 2013 was $240 million. In those transactions, AIGFP has agreed to pay such amount if the lessee
fails to pay. The amount payable by AIGFP is, in certain cases, partially offset by amounts payable under other
instruments typically equal to the present value of scheduled payments to be made by AIGFP. In the event that
AIGFP is required to make a payment to the equity investor, the lessee is unconditionally obligated to reimburse
AIGFP. To the extent that the equity investor is paid the equity termination value from the standby letter of credit
and/or other sources, including payments by the lessee, AIGFP takes an assignment of the equity investor’s rights
under the lease of the underlying property. Because the obligations of the lessee under the lease transactions are
generally economically defeased, lessee bankruptcy is the most likely circumstance in which AIGFP would be
required to pay without reimbursement.
We are subject to financial guarantees and indemnity arrangements in connection with the completed sales of
businesses pursuant to our asset disposition plan. The various arrangements may be triggered by, among other
things, declines in asset values, the occurrence of specified business contingencies, the realization of contingent
liabilities, developments in litigation or breaches of representations, warranties or covenants provided by us. These
arrangements are typically subject to various time limitations, defined by the contract or by operation of law, such as
statutes of limitation. In some cases, the maximum potential obligation is subject to contractual limitations, while in
other cases such limitations are not specified or are not applicable.
Other Commitments
Guarantees
Subsidiaries
Asset Dispositions
General
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AIG 2013 Form 10-K296
ITEM 8 / NOTE 15. CONTINGENCIES, COMMITMENTS AND GUARANTEES
(in millions)
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