AIG 2013 Annual Report Download - page 372

American International Group, Inc.’s (the Registrant) investments in consolidated subsidiaries are stated at cost plus
equity in undistributed income of consolidated subsidiaries. The accompanying condensed financial statements of the
Registrant should be read in conjunction with the consolidated financial statements and notes thereto of American
International Group, Inc. and subsidiaries included in the Registrant’s 2013 Annual Report on Form 10-K for the year
ended December 31, 2013 (2013 Annual Report on Form 10-K) filed with the Securities and Exchange Commission
on February 20, 2014.
The Registrant includes in its statement of income dividends from its subsidiaries and equity in undistributed income
(loss) of consolidated subsidiaries, which represents the net income (loss) of each of its wholly-owned subsidiaries.
On December 1, 2009, the Registrant and the Federal Reserve Bank of New York (FRBNY) completed two
transactions that reduced the outstanding balance and the maximum amount of credit available under the FRBNY
Credit Facility by $25 billion. In connection with one of those transactions, the Registrant assigned $16 billion of its
obligation under the FRBNY Credit Agreement to a subsidiary. The Registrant subsequently settled its obligation to
the subsidiary with a $15.5 billion non-cash dividend from the subsidiary. The difference was recognized over the
remaining term of the FRBNY Credit Agreement as a reduction to interest expense. The remaining difference was
derecognized by AIG through earnings due to the repayment in January 2011 of all amounts owed under, and the
termination of, the FRBNY Credit Facility.
Certain prior period amounts have been reclassified to conform to the current period presentation.
The five-year debt maturity schedule is incorporated by reference from Note 14 to Consolidated Financial
Statements.
The Registrant files a consolidated federal income tax return with certain subsidiaries and acts as an agent for the
consolidated tax group when making payments to the Internal Revenue Service. The Registrant and its subsidiaries
have adopted, pursuant to a written agreement, a method of allocating consolidated Federal income taxes. Amounts
allocated to the subsidiaries under the written agreement are included in Due from affiliates in the accompanying
Condensed Balance Sheets.
Income taxes in the accompanying Condensed Balance Sheets are composed of the Registrant’s current and
deferred tax assets, the consolidated group’s current income tax receivable, deferred taxes related to tax attribute
carryforwards of AIG’s U.S. consolidated income tax group and a valuation allowance to reduce the consolidated
deferred tax asset to an amount more likely than not to be realized. See Note 23 to the Consolidated Financial
Statements for additional information.
The consolidated U.S. deferred tax asset for net operating loss, capital loss and tax credit carryforwards and
valuation allowance are recorded by the Parent Company, which files the consolidated U.S. Federal income tax
return, and are not allocated to its subsidiaries. Generally, as, and if, the consolidated net operating losses and other
tax attribute carryforwards are utilized, the intercompany tax balance will be settled with the subsidiaries.
Notes to Condensed Financial Information of Registrant
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AIG 2013 Form 10-K354
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