AIG 2014 Annual Report Download - page 161

ITEM 7 / LIQUIDITY AND CAPITAL RESOURCES
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Liquidity and Capital Resources Activity for 2014
Sources
• AIG Parent Funding from Subsidiaries(a)
During 2014, AIG Parent received $2.6 billion in dividends in the form of cash and fixed maturity securities from our Non-
Life Insurance Companies and $6.8 billion in dividends and loan repayments in the form of cash and fixed maturity
securities from our Life Insurance Companies, which included approximately $829 million of legal settlement proceeds.
AIG Parent also received a net amount of $1.0 billion in tax sharing payments from our insurance businesses in 2014,
reflecting $57 million in net reimbursements to our insurance businesses during the fourth quarter of 2014. The tax
sharing payments may be subject to further adjustment in future periods.
 Debt Issuances(b)
On July 16, 2014, we issued $1.0 billion aggregate principal amount of 2.300% Notes due 2019 and $1.5 billion aggregate
principal amount of 4.500% Notes due 2044.
On October 15, 2014, we issued an additional $750 million aggregate principal amount of 4.500% Notes due 2044.
 Legal Settlement
In July 2014, we received $650 million in cash in connection with the global resolution of our residential mortgage-related
disputes with Bank of America.
 ILFC Sale
On May 14, 2014, we received net cash proceeds of approximately $2.4 billion from the sale of ILFC after taking into
account the settlement of intercompany loans. This cash amount is in addition to the 97.6 million newly issued AerCap
common shares we received as consideration from the sale.
Uses
• Debt Reduction
During 2014, we reduced DIB debt by approximately $7.5 billion, in each case, using cash allocated to the DIB, through
the following:
• On January 17, 2014, a redemption of $1.2 billion aggregate principal amount of its 4.250% Notes due 2014;
• In January 2014, repurchases of $1.0 billion aggregate principal amount of its 8.250% Notes due 2018;
• On May 5, 2014, a redemption of $750 million aggregate principal amount of its 3.000% Notes due 2015;
• On July 31, 2014, a redemption of $790 million aggregate principal amount of its 4.875% Notes due 2016;
• On July 31, 2014, a redemption of $1.25 billion aggregate principal amount of its 3.800% Notes due 2017;
• On October 27, 2014, a redemption of approximately $2.0 billion aggregate principal amount of its 8.250% Notes
due 2018;
• In October and November 2014, total repurchases of approximately $410 million aggregate principal amount of its
5.450% Medium-Term Notes, Series MP, Matched Investment Program due 2017; and
• On December 24, 2014, a repurchase of approximately $73 million aggregate principal amount of its 7.000% Notes
due 2015.
On July 14, 2014, we purchased, in cash tender offers, (i) certain junior subordinated debentures issued or guaranteed by
AIG for an aggregate purchase price of $1.8 billion and (ii) certain senior notes and debentures issued or guaranteed by
AIG for an aggregate purchase price of $700 million. In October and December 2014, we repurchased approximately $1.6
billion aggregate principal amount of 8.175% Series A-6 Junior Subordinated Debentures.
We also made other repurchases and repayments of approximately $5.1 billion during 2014. AIG Parent made interest
payments on our debt instruments totaling $1.6 billion during 2014.