AIG 2015 Annual Report Download - page 166

ITEM 7 / LIQUIDITY AND CAPITAL RESOURCES
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Arrangements with Variable Interest Entities
We enter into various arrangements with variable interest entities (VIEs) in the normal course of business, and we consolidate
a VIE when we are the primary beneficiary of the entity. For a further discussion of our involvement with VIEs, see Note 9 to
the Consolidated Financial Statements.
Indemnification Agreements
We are subject to financial guarantees and indemnity arrangements in connection with our sales of businesses. These
arrangements may be triggered by declines in asset values, specified business contingencies, the realization of contingent
liabilities, litigation developments, or breaches of representations, warranties or covenants provided by us. These
arrangements are typically subject to time limitations, defined by contract or by operation of law, such as by prevailing statutes
of limitation. Depending on the specific terms of the arrangements, the maximum potential obligation may or may not be
subject to contractual limitations. For additional information regarding our indemnification agreements, see Note 15 to the
Consolidated Financial Statements.
We have recorded liabilities for certain of these arrangements where it is possible to estimate them. These liabilities are not
material in the aggregate. We are unable to develop a reasonable estimate of the maximum potential payout under some of
these arrangements. Overall, we believe that it is unlikely we will have to make any material payments under these
arrangements.
Debt
The following table provides the rollforward of AIG’s total debt outstanding:
Balance at Maturities Effect of Balance at
Year Ended December 31, 2015 December 31, and Foreign Other December 31,
(in millions) 2014 Issuances Repayments Exchange Changes 2015
Debt issued or guaranteed by AIG:
AIG general borrowings:
Notes and bonds payable $ 15,570 $ 5,540 $ (3,828) $ (156) $ 10 $17,136
Subordinated debt 250 - (250) - - -
Junior subordinated debt 2,466 - (1,073) (57) 1 1,337
AIG Japan Holdings Kabushiki Kaisha - 110 (1) (3) - 106
AIGLH notes and bonds payable 284 - - - - 284
AIGLH junior subordinated debt 536 - (114) - - 422
Total AIG general borrowings 19,106 5,650 (5,266) (216) 11 19,285
AIG borrowings supported by assets:(a)
MIP notes payable 2,870 - (1,351) (143) (4) 1,372
Series AIGFP matched notes and bonds payable 34 - (2) - 2 34
GIAs, at fair value 4,648 388 (1,812) - 52 (b) 3,276
Notes and bonds payable, at fair value 818 16 (431) - (9)(b) 394
Total AIG borrowings supported by assets 8,370 404 (3,596) (143) 41 5,076
Total debt issued or guaranteed by AIG 27,476 6,054 (8,862) (359) 52 24,361
Debt not guaranteed by AIG:
Other subsidiaries notes, bonds, loans and
mortgages payable 58 450 (505) (1) - 2
Debt of consolidated investments(c) 3,683 363 (614) (1) 1,556 (d) 4,987
Total debt not guaranteed by AIG 3,741 813 (1,119) (2) 1,556 4,989
Total debt $ 31,217 $ 6,867 $ (9,981) $ (361) $ 1,608 $29,350