AIG 2015 Annual Report Download - page 293

ITEM 8 / NOTE 10. DERIVATIVES AND HEDGE ACCOUNTING
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Other income - 23 - - 23
Gain/(Loss) on extinguishment of debt - 2 - - 2
Equity contracts:
Realized capital gains/(losses) (23) 22 - (1) -
Year ended December 31, 2013
Interest rate contracts:
Realized capital gains/(losses) $ (5) $5$- $ -$-
Interest credited to policyholder
account balances - (2) - - (2)
Other income - 99 - - 99
Foreign exchange contracts:
Realized capital gains/(losses) (187) 204 - 17 -
(a) The amounts presented do not include the periodic net coupon settlements of the derivative contract or the coupon income (expense) related to the hedged
item.
(b) Represents accretion/amortization of opening fair value of the hedged item at inception of hedge relationship, amortization of basis adjustment on hedged
item following the discontinuation of hedge accounting, and the release of debt basis adjustment following the repurchase of issued debt that was part of
previously-discontinued fair value hedge relationship.
Derivatives Not Designated as Hedging Instruments
The following table presents the effect of derivative instruments not designated as hedging instruments in the
Consolidated Statements of Income:
Gains (Losses)
Years Ended December 31, Recognized in Earnings
(in millions) 2015 2014 2013
By Derivative Type:
Interest rate contracts $339 $ 851 $ (259)
Foreign exchange contracts 416 309 41
Equity contracts (182) (274) (507)
Commodity contracts (1) (1) (4)
Credit contracts 186 263 567
Other contracts 69 192 85
Embedded derivatives 49 (841) 1,099
Total $876 $ 499 $ 1,022
By Classification:
Policy fees $78 $ - $ -
Net investment income 26 102 28
Net realized capital gains (losses) 365 (219) 257
Other income 401 599 750
Policyholder benefits and claims incurred 6 17 (13)
Total $876 $ 499 $ 1,022
Credit Risk-Related Contingent Features
The aggregate fair value of our derivative instruments that contain credit risk-related contingent features that were in a net
liability position at December 31, 2015 and 2014, was approximately $2.0 billion and $2.5 billion, respectively. The aggregate
fair value of assets posted as collateral under these contracts at December 31, 2015 and 2014, was $2.1 billion and $2.7
billion, respectively.