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INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT
 6 Months Ended
Jun. 30, 2014
INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT  
INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT

16. INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT

The following condensed consolidating financial statements reflect the results of AIG Life Holdings, Inc. (AIGLH), a holding company and a wholly owned subsidiary of AIG. AIG provides a full and unconditional guarantee of all outstanding debt of AIGLH.

Condensed Consolidating Balance Sheets

American
International Reclassifications
Group, Inc. OtherandConsolidated
(in millions)(As Guarantor)AIGLHSubsidiariesEliminationsAIG
June 30, 2014
Assets:
Short-term investments$ 12,892$ -$ 9,313$ (1,317)$ 20,888
Other investments(a) 11,025 - 338,063 - 349,088
Total investments 23,917 - 347,376 (1,317) 369,976
Cash 160 2 1,665 - 1,827
Loans to subsidiaries(b) 31,880 - 727 (32,607) -
Investment in consolidated subsidiaries(b) 67,728 40,069 - (107,797) -
Other assets, including deferred income taxes 22,512 83 137,130 (2,419) 157,306
Total assets$ 146,197$ 40,154$ 486,898$ (144,140)$ 529,109
Liabilities:
Insurance liabilities$ -$ -$ 274,370$ -$ 274,370
Long-term debt 27,602 1,296 9,516 - 38,414
Other liabilities, including intercompany balances(a)(c) 9,628 113 101,682 (3,679) 107,744
Loans from subsidiaries(b) 806 100 31,794 (32,700) -
Total liabilities 38,036 1,509 417,362 (36,379) 420,528
Redeemable noncontrolling interests (see Note 12) - - - - -
Total AIG shareholders’ equity 108,161 38,645 69,116 (107,761) 108,161
Non-redeemable noncontrolling interests - - 420 - 420
Total equity 108,161 38,645 69,536 (107,761) 108,581
Total liabilities and equity$ 146,197$ 40,154$ 486,898$ (144,140)$ 529,109
December 31, 2013
Assets:
Short-term investments$ 11,965$ -$ 11,404$ (1,752)$ 21,617
Other investments(a) 7,561 - 327,250 - 334,811
Total investments 19,526 - 338,654 (1,752) 356,428
Cash 30 51 2,160 - 2,241
Loans to subsidiaries(b) 31,220 - 854 (32,074) -
Investment in consolidated subsidiaries(b) 66,201 39,103 - (105,304) -
Other assets, including deferred income taxes 21,606 112 132,492 (1,086) 153,124
Assets held for sale - - 29,536 - 29,536
Total assets$ 138,583$ 39,266$ 503,696$ (140,216)$ 541,329
Liabilities:
Insurance liabilities$ -$ -$ 271,252$ -$ 271,252
Long-term debt 30,839 1,352 9,502 - 41,693
Other liabilities, including intercompany balances(a)(c) 6,422 161 98,908 (2,766) 102,725
Loans from subsidiaries(b) 852 200 31,173 (32,225) -
Liabilities held for sale - - 24,548 - 24,548
Total liabilities 38,113 1,713 435,383 (34,991) 440,218
Redeemable noncontrolling interests (see Note 12) - - 30 - 30
Total AIG shareholders’ equity 100,470 37,553 67,672 (105,225) 100,470
Non-redeemable noncontrolling interests - - 611 - 611
Total equity 100,470 37,553 68,283 (105,225) 101,081
Total liabilities and equity$ 138,583$ 39,266$ 503,696$ (140,216)$ 541,329

(a) Includes intercompany derivative positions, which are reported at fair value before credit valuation adjustment.

(b) Eliminated in consolidation.

(c) For June 30, 2014 and December 31, 2013, includes intercompany tax payable of $2.9 billion and $1.4 billion, respectively, and intercompany derivative liabilities of $229 million and $249 million, respectively, for American International Group, Inc. (As Guarantor) and intercompany tax receivable (payable) of $ (19) million and $98 million, respectively, for AIGLH.

Condensed Consolidating Statements of Income

American
International Reclassifications
Group, Inc. OtherandConsolidated
(in millions)(As Guarantor)AIGLHSubsidiariesEliminationsAIG
Three Months Ended June 30, 2014
Revenues:
Equity in earnings of consolidated subsidiaries*$ 3,503$ 744$ -$ (4,247)$ -
Other income 255 - 15,922 (72) 16,105
Total revenues 3,758 744 15,922 (4,319) 16,105
Expenses:
Interest expense 410 29 57 (33) 463
Loss on extinguishment of debt 17 - 17 - 34
Other expenses 784 17 10,368 (41) 11,128
Total expenses 1,211 46 10,442 (74) 11,625
Income (loss) from continuing operations before income tax
expense (benefit) 2,547 698 5,480 (4,245) 4,480
Income tax expense (benefit) (527) 123 1,878 - 1,474
Income (loss) from continuing operations 3,074 575 3,602 (4,245) 3,006
Income (loss) from discontinued operations, net of income taxes (1) - 31 - 30
Net income (loss) 3,073 575 3,633 (4,245) 3,036
Less:
Net loss from continuing operations attributable to
noncontrolling interests - - (37) - (37)
Net income (loss) attributable to AIG$ 3,073$ 575$ 3,670$ (4,245)$ 3,073
Three Months Ended June 30, 2013
Revenues:
Equity in earnings of consolidated subsidiaries*$ 2,374$ 754$ -$ (3,128)$ -
Other income 673 - 17,837 (84) 18,426
Total revenues 3,047 754 17,837 (3,212) 18,426
Expenses:
Interest expense 482 32 36 (15) 535
Net loss on extinguishment of debt 38 - - - 38
Other expenses 335 - 14,410 (57) 14,688
Total expenses 855 32 14,446 (72) 15,261
Income (loss) from continuing operations before income tax
expense (benefit) 2,192 722 3,391 (3,140) 3,165
Income tax expense (benefit) (538) (3) 970 (4) 425
Income (loss) from continuing operations 2,730 725 2,421 (3,136) 2,740
Income from discontinued operations, net of income taxes 1 - 17 - 18
Net income (loss) 2,731 725 2,438 (3,136) 2,758
Less:
Net income from continuing operations attributable to
noncontrolling interests - - 27 - 27
Net income (loss) attributable to AIG$ 2,731$ 725$ 2,411$ (3,136)$ 2,731
American
International Reclassifications
Group, Inc. OtherandConsolidated
(in millions)(As Guarantor)AIGLHSubsidiariesEliminationsAIG
Six Months Ended June 30, 2014
Revenues:
Equity in earnings of consolidated subsidiaries*$ 5,488$ 1,474$ -$ (6,962)$ -
Other income 479 - 31,922 (184) 32,217
Total revenues 5,967 1,474 31,922 (7,146) 32,217
Expenses:
Interest expense 832 58 118 (66) 942
Loss on extinguishment of debt 305 - 17 (50) 272
Other expenses 1,026 18 23,286 (80) 24,250
Total expenses 2,163 76 23,421 (196) 25,464
Income (loss) from continuing operations before income tax
expense (benefit) 3,804 1,398 8,501 (6,950) 6,753
Income tax expense (benefit) (876) (21) 3,004 (19) 2,088
Income (loss) from continuing operations 4,680 1,419 5,497 (6,931) 4,665
Income (loss) from discontinued operations, net of income taxes 2 - (19) - (17)
Net income (loss) 4,682 1,419 5,478 (6,931) 4,648
Less:
Net loss from continuing operations attributable to
noncontrolling interests - - (34) - (34)
Net income (loss) attributable to AIG$ 4,682$ 1,419$ 5,512$ (6,931)$ 4,682
Six Months Ended June 30, 2013
Revenues:
Equity in earnings of consolidated subsidiaries*$ 4,265$ 1,424$ -$ (5,689)$ -
Other income 967 - 34,574 (153) 35,388
Total revenues 5,232 1,424 34,574 (5,842) 35,388
Expenses:
Interest expense 1,010 68 118 (84) 1,112
Net loss on extinguishment of debt 307 - 71 - 378
Other expenses 593 71 27,251 (57) 27,858
Total expenses 1,910 139 27,440 (141) 29,348
Income (loss) from continuing operations before income tax
expense (benefit) 3,322 1,285 7,134 (5,701) 6,040
Income tax expense (benefit) (1,618) (14) 2,778 (4) 1,142
Income (loss) from continuing operations 4,940 1,299 4,356 (5,697) 4,898
Income (loss) from discontinued operations, net of income taxes (3) - 94 - 91
Net income (loss) 4,937 1,299 4,450 (5,697) 4,989
Less:
Net income from continuing operations attributable to
noncontrolling interests - - 52 - 52
Net income (loss) attributable to AIG$ 4,937$ 1,299$ 4,398$ (5,697)$ 4,937

* Eliminated in consolidation.

Condensed Consolidating Statements of Comprehensive Income

American
InternationalReclassifications
Group, Inc.OtherandConsolidated
(in millions)(As Guarantor)AIGLHSubsidiariesEliminationsAIG
Three Months Ended June 30, 2014
Net income (loss)$ 3,073$ 575$ 3,633$ (4,245)$ 3,036
Other comprehensive income (loss) 2,426 1,287 1,884 (3,171) 2,426
Comprehensive income (loss) 5,499 1,862 5,517 (7,416) 5,462
Total comprehensive loss attributable to noncontrolling interests - - (37) - (37)
Comprehensive income (loss) attributable to AIG$ 5,499$ 1,862$ 5,554$ (7,416)$ 5,499
Three Months Ended June 30, 2013
Net income (loss)$ 2,731$ 725$ 2,438$ (3,136)$ 2,758
Other comprehensive income (loss) (4,800) (3,351) (4,707) 8,037 (4,821)
Comprehensive income (loss) (2,069) (2,626) (2,269) 4,901 (2,063)
Total comprehensive income attributable to noncontrolling interests - - 6 - 6
Comprehensive income (loss) attributable to AIG$ (2,069)$ (2,626)$ (2,275)$ 4,901$ (2,069)
Six Months Ended June 30, 2014
Net income (loss)$ 4,682$ 1,419$ 5,478$ (6,931)$ 4,648
Other comprehensive income (loss) 5,151 2,781 3,733 (6,514) 5,151
Comprehensive income (loss) 9,833 4,200 9,211 (13,445) 9,799
Total comprehensive loss attributable to noncontrolling interests - - (34) - (34)
Comprehensive income (loss) attributable to AIG$ 9,833$ 4,200$ 9,245$ (13,445)$ 9,833
Six Months Ended June 30, 2013
Net income (loss)$ 4,937$ 1,299$ 4,450$ (5,697)$ 4,989
Other comprehensive income (loss) (5,535) (3,990) (5,627) 9,596 (5,556)
Comprehensive income (loss) (598) (2,691) (1,177) 3,899 (567)
Total comprehensive income attributable to noncontrolling interests - - 31 - 31
Comprehensive income (loss) attributable to AIG$ (598)$ (2,691)$ (1,208)$ 3,899$ (598)

Condensed Consolidating Statements of Cash Flows

American Other
International Subsidiaries
Group, Inc. andConsolidated
(in millions)(As Guarantor)AIGLHEliminationsAIG
Six Months Ended June 30, 2014
Net cash (used in) provided by operating activities 5,324 2,586 (6,269) 1,641
Cash flows from investing activities:
Sales of investments 1,714 - 30,600 32,314
Purchase of investments (624) - (27,533) (28,157)
Loans to subsidiaries - net (530) - 530 -
Contributions to subsidiaries - net 111 - (111) -
Net change in restricted cash (20) - (608) (628)
Net change in short-term investments 65 - 433 498
Other, net (27) - (338) (365)
Net cash provided by investing activities 689 - 2,973 3,662
Cash flows from financing activities:
Issuance of long-term debt - - 3,028 3,028
Repayments of long-term debt (3,314) - (2,713) (6,027)
Purchase of Common Stock (1,849) - - (1,849)
Intercompany loans - net (52) (175) 227 -
Cash dividends paid (361) (2,460) 2,460 (361)
Other, net (307) - (286) (593)
Net cash (used in) provided by financing activities (5,883) (2,635) 2,716 (5,802)
Effect of exchange rate changes on cash - - (3) (3)
Change in cash 130 (49) (583) (502)
Cash at beginning of year 30 51 2,160 2,241
Reclassification to assets held for sale - - 88 88
Cash at end of period$ 160$ 2$ 1,665$ 1,827
Six Months Ended June 30, 2013
Net cash (used in) provided by operating activities 698 1,809 (833) 1,674
Cash flows from investing activities:
Sales of investments 646 - 38,629 39,275
Purchase of investments (4,179) - (38,683) (42,862)
Loans to subsidiaries - net 2,427 - (2,427) -
Contributions to subsidiaries - net (86) (1) 87 -
Net change in restricted cash 422 - 794 1,216
Net change in short-term investments 4,129 - 4,734 8,863
Other, net 205 - (626) (421)
Net cash (used in) provided by investing activities 3,564 (1) 2,508 6,071
Cash flows from financing activities:
Issuance of long-term debt - - 2,338 2,338
Repayments of long-term debt (4,107) (245) (3,967) (8,319)
Intercompany loans - net 128 (123) (5) -
Purchase of common stock - - - -
Cash dividends paid to shareholders - (1,482) 1,482 -
Other, net (257) - (817) (1,074)
Net cash (used in) financing activities (4,236) (1,850) (969) (7,055)
Effect of exchange rate changes on cash - - (70) (70)
Change in cash 26 (42) 636 620
Cash at beginning of year 81 73 997 1,151
Change in cash of businesses held for sale - - (9) (9)
Cash at end of period$ 107$ 31$ 1,624$ 1,762

Supplementary Disclosure of Condensed Consolidating Cash Flow Information

AmericanOther
InternationalSubsidiaries
Group, Inc.andConsolidated
(in millions)(As Guarantor)AIGLHEliminationsAIG
Cash (paid) received during the 2014 period for:
Interest:
Third party$ (946)$ (51)$ (730)$ (1,727)
Intercompany (1) (4) 5 -
Taxes:
Income tax authorities$ (17)$ -$ (465)$ (482)
Intercompany 953 - (953) -
Cash (paid) received during the 2013 period for:
Interest:
Third party$ (1,117)$ (57)$ (1,234)$ (2,408)
Intercompany (5) (14) 19 -
Taxes:
Income tax authorities$ (6)$ -$ (203)$ (209)
Intercompany 501 (78) (423) -

American International Group, Inc. (As Guarantor) supplementary disclosure of non-cash activities:

Six Months Ended June 30,
(in millions)20142013
Intercompany non-cash financing and investing activities:
Capital contributions
to subsidiaries through forgiveness of loans$ 993$ 341
Other capital contributions - net - 245