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EQUITY
 12 Months Ended
Dec. 31, 2014
EQUITY  
EQUITY

17. Equity

Shares Outstanding

The following table presents a rollforward of outstanding shares:

CommonTreasuryCommon Stock
Stock IssuedStockOutstanding
Year Ended December 31, 2012
Shares, beginning of year1,906,568,099(9,746,617)1,896,821,482
Issuances43,581685,727729,308
Shares purchased-(421,228,855)(421,228,855)
Shares, end of year1,906,611,680(430,289,745)1,476,321,935
Year Ended December 31, 2013
Shares, beginning of year1,906,611,680(430,289,745)1,476,321,935
Shares issued34,00924,77858,787
Shares repurchased-(12,317,399)(12,317,399)
Shares, end of year1,906,645,689(442,582,366)1,464,063,323
Year Ended December 31, 2014
Shares, beginning of year1,906,645,689(442,582,366)1,464,063,323
Shares issued25,80315,74841,551
Shares repurchased-(88,177,903)(88,177,903)
Shares, end of year1,906,671,492(530,744,521)1,375,926,971

Dividends

Payment of future dividends to our shareholders and repurchases of AIG Common Stock depends in part on the regulatory framework that we are currently subject to and that will ultimately be applicable to us, including as a nonbank systemically important financial institution under the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd Frank) and a global systemically important insurer. In addition, dividends are payable on AIG Common Stock only when, as and if declared by our Board of Directors in its discretion, from funds legally available therefor. In considering whether to pay a dividend or purchase shares of AIG Common Stock, our Board of Directors considers such matters as the performance of our businesses, our consolidated financial condition, results of operations and liquidity, available capital, the existence of investment opportunities, contractual, legal and regulatory restrictions on the payment of dividends by our subsidiaries, rating agency considerations, including the potential effect on our debt ratings, and such other factors as our Board of Directors may deem relevant.

On March 25, 2014, AIG paid a dividend of $0.125 per share on AIG Common Stock to shareholders of record on March 11, 2014. On June 24, 2014, AIG paid a dividend of $0.125 per share on AIG Common Stock to shareholders of record on June 10, 2014. On September 25, 2014, AIG paid a dividend of $0.125 per share on AIG Common Stock to shareholders of record on September 11, 2014. On December 18, 2014, AIG paid a dividend of $0.125 per share on AIG Common Stock to shareholders of record on December 4, 2014.

Repurchase of AIG Common Stock in 2014 and 2013

On August 1, 2013, our Board of Directors authorized the repurchase of shares of AIG Common Stock, with an aggregate purchase price of up to $1.0 billion, from time to time in the open market, private purchases, through forward, derivative, accelerated repurchase or automatic repurchase transactions or otherwise. For the year ended December 31, 2013, we repurchased approximately 12 million shares of AIG Common Stock for an aggregate purchase price of approximately $597 million pursuant to this authorization.

On February 13, 2014, June 5, 2014 and October 31, 2014, our Board of Directors authorized increases to the August 1, 2013 repurchase authorization of AIG Common Stock of an aggregate of $4.5 billion. For the year ended December 31, 2014, we repurchased approximately 88 million shares of AIG Common Stock for an aggregate purchase price of approximately $4.9 billion.

In the second, third and fourth quarters of 2014, we executed five accelerated stock repurchase (ASR) agreements with third-party financial institutions. The total number of shares of AIG Common Stock repurchased in the twelve-month period ended December 31, 2014, and the aggregate purchase price of those shares, each as set forth above, reflect our payment of approximately $3.1 billion in the aggregate under the ASR agreements and the receipt of approximately 53 million shares of AIG Common Stock in the aggregate, including the initial receipt of 70 percent of the total notional share equivalent, or approximately 9.2 million shares of AIG Common Stock, under an ASR agreement executed in December 2014. That ASR agreement settled in January 2015, at which time we received approximately 3.5 million additional shares of AIG Common Stock based on a formula specified by the terms of the ASR agreement.

The timing of any future repurchases will depend on market conditions, our financial condition, results of operations, liquidity and other factor

AIG Common Stock Offerings by the Department of the Treasury and AIG Purchases of AIG Common Stock in 2012

Through registered public offerings, the Department of the Treasury disposed of all of its ownership of AIG Common Stock as of December 31, 2012, from ownership of approximately 92 percent (1.7 billion shares) prior to the completion of the first registered public offering initiated by the Department of the Treasury as selling shareholder in May 2011. During 2012, the Department of the Treasury, as selling shareholder, completed registered public offerings of AIG Common Stock on March 13 (the March Offering), May 10 (the May Offering), August 8 (the August Offering), September 14 (the September Offering) and December 14 (the December Offering). We participated as a purchaser in the first four 2012 offerings. Each of these purchases was authorized by our Board of Directors.

The following table presents certain information relating to these offerings:

U.S. TreasuryAIG
(dollars in millions, except share-price data)PriceShares SoldAmountShares PurchasedAmount
2012 Offerings:
March Offering$29.00206,896,552$6,000103,448,276$3,000
May Offering30.50188,524,5895,75065,573,7702,000
August Offering30.50188,524,5905,75098,360,6563,000
September Offering32.50636,923,07520,700153,846,1535,000
December Offering32.50234,169,1567,610--
1,455,037,962$45,810421,228,855$13,000

* Shares purchased by us in each of the 2012 offerings were purchased pursuant to AIG Board of Directors authorization.

Accumulated Other Comprehensive Income

The following table presents a rollforward of Accumulated other comprehensive income:

Unrealized Appreciation
(Depreciation) of FixedNet Derivative
Maturity SecuritiesUnrealized Gains (Losses)
on Which Other-Than-AppreciationForeign Arising fromRetirement
Temporary Credit(Depreciation)CurrencyCash FlowPlan
Impairments of All OtherTranslationHedgingLiabilities
(in millions)Were RecognizedInvestmentsAdjustmentsActivitiesAdjustmentTotal
Balance, January 1, 2012$(711)$8,575$(409)$(17)$(957)$6,481
Change in unrealized
appreciation
of investments2,3068,404---10,710
Change in deferred policy
acquisition costs
adjustment and other(49)(840)---(889)
Change in future policy
benefits*(85)(432)---(517)
Change in foreign currency
translation adjustments--(33)--(33)
Change in net derivative
gains arising from
cash flow hedging
activities---33-33
Change in net actuarial loss----(273)(273)
Change in prior service credit----(46)(46)
Change in deferred tax
asset (liability)(886)(2,252)33(16)232(2,889)
Total other comprehensive
income (loss)1,2864,880-17(87)6,096
Noncontrolling interests-9(6)--3
Balance, December 31, 2012$575$13,446$(403)$-$(1,044)$12,574
Change in unrealized
appreciation (depreciation)
of investments464(14,069)---(13,605)
Change in deferred policy
acquisition costs
adjustment and other(127)1,000---873
Change in future policy
benefits792,658---2,737
Change in foreign currency
translation adjustments--(454)--(454)
Change in net actuarial loss----1,0121,012
Change in prior service credit----(51)(51)
Change in deferred tax
asset (liability)(55)3,738(102)-(330)3,251
Total other comprehensive
income (loss)361(6,673)(556)-631(6,237)
Noncontrolling interests-(16)(7)--(23)
Balance, December 31, 2013$936$6,789$(952)$-$(413)$6,360
Change in unrealized
appreciation
of investments1567,564---7,720
Change in deferred policy
acquisition costs
adjustment and other68(495)---(427)
Change in future policy
benefits(133)(1,113)---(1,246)
Change in foreign currency
translation adjustments--(833)--(833)
Change in net actuarial loss----(815)(815)
Change in prior service credit----(49)(49)
Change in deferred tax
asset (liability)16(418)1-308(93)
Total other comprehensive
income (loss)1075,538(832)-(556)4,257
Noncontrolling interests------
Balance, December 31, 2014$1,043$12,327$(1,784)$-$(969)$10,617

* The adjustment to policyholder benefit reserves assumes that the unrealized appreciation on available for sale securities is actually realized and that the proceeds are reinvested at lower yields.

The following table presents the other comprehensive income (loss) reclassification adjustments for the years ended December 31, 2014, 2013 and 2012:

Unrealized Appreciation
(Depreciation) of FixedNet Derivative
Maturity SecuritiesUnrealizedGains (Losses)
on Which Other-Than-AppreciationForeignArising fromRetirement
Temporary Credit(Depreciation)CurrencyCash FlowPlan
Impairments Wereof All OtherTranslationHedgingLiabilities
(in millions)RecognizedInvestmentsAdjustmentsActivitiesAdjustmentTotal
December 31, 2012
Unrealized change arising during period$2,236$8,896$(33)$(2)$(406)$10,691
Less: Reclassification adjustments
included in net income641,764-(35)(87)1,706
Total other comprehensive income (loss),
before income tax expense (benefit)2,1727,132(33)33(319)8,985
Less: Income tax expense (benefit)8862,252(33)16(232)2,889
Total other comprehensive income (loss),
net of income tax expense (benefit)$1,286$4,880$-$17$(87)$6,096
December 31, 2013
Unrealized change arising during period$507$(9,556)$(454)$-$851$(8,652)
Less: Reclassification adjustments
included in net income91855--(110)836
Total other comprehensive income (loss),
before income tax expense (benefit)416(10,411)(454)-961(9,488)
Less: Income tax expense (benefit)55(3,738)102-330(3,251)
Total other comprehensive income (loss),
net of income tax expense (benefit)$361$(6,673)$(556)$-$631$(6,237)
December 31, 2014
Unrealized change arising during period$119$6,488$(833)$-$(866)$4,908
Less: Reclassification adjustments
included in net income28532--(2)558
Total other comprehensive income (loss),
before income tax expense (benefit)915,956(833)-(864)4,350
Less: Income tax expense (benefit)(16)418(1)-(308)93
Total other comprehensive income (loss),
net of income tax expense (benefit)$107$5,538$(832)$-$(556)$4,257

The following table presents the effect of the reclassification of significant items out of Accumulated other comprehensive income on the respective line items in the Consolidated Statements of Income:

Amount Reclassified
from Accumulated Other
Comprehensive Income
Years Ended December 31,Affected Line Item in the
(in millions) 20142013Consolidated Statements of Income
Unrealized appreciation (depreciation) of fixed maturity securities on which other-than-temporary credit impairments were recognized
Investments$28$91Other realized capital gains
Total2891
Unrealized appreciation (depreciation) of all other investments
Investments6692,452Other realized capital gains
Deferred acquisition costs adjustment(20)(28)Amortization of deferred acquisition costs
Future policy benefits(117)(1,569)Policyholder benefits and losses incurred
Total532855
Change in retirement plan liabilities adjustment
Prior-service costs4747*
Actuarial gains/(losses)(49)(157)*
Total(2)(110)
Total reclassifications for the period$558$836

* These Accumulated other comprehensive income components are included in the computation of net periodic pension cost. See Note 22 to the Consolidated Financial Statements.