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Schedule II Condensed Financial Information of Registrant - Parent Company Only
 12 Months Ended
Dec. 31, 2014
Schedule II Condensed Financial Information of Registrant - Parent Company Only  
Schedule II Condensed Financial Information of Registrant - Parent Company Only

Condensed Financial Information of Registrant

Balance Sheets — Parent Company Only

Schedule II
December 31,
(in millions)20142013
Assets:
Short-term investments$6,078$11,965
Other investments11,4157,561
Total investments17,49319,526
Cash2630
Loans to subsidiaries*31,07031,220
Due from affiliates - net*3,561765
Deferred income taxes18,30919,352
Investments in consolidated subsidiaries*62,81166,201
Other assets1,9651,489
Total assets$135,235$138,583
Liabilities:
Intercompany tax payable*$343$1,419
Notes and bonds payable15,82114,312
Junior subordinated debt2,4665,533
MIP notes payable2,8707,963
Series AIGFP matched notes and bonds payable333,031
Loans from subsidiaries*951852
Other liabilities (includes intercompany derivative liabilities of $275 in 2014 and $249 in 2013)5,8535,003
Total liabilities28,33738,113
AIG Shareholders’ equity:
Common stock4,7664,766
Treasury stock(19,218)(14,520)
Additional paid-in capital80,95880,899
Retained earnings29,77522,965
Accumulated other comprehensive income10,6176,360
Total AIG shareholders’ equity106,898100,470
Total liabilities and equity$135,235$138,583

* Eliminated in consolidation.

See Accompanying Notes to Condensed Financial Information of Registrant.

Condensed Financial Information of Registrant (Continued)
Statements of Income — Parent Company Only
Schedule II
Years Ended December 31,
(in millions)201420132012
Revenues:
Equity in undistributed net income (loss) of consolidated subsidiaries*$(5,573)$(2,226)$(8,740)
Dividend income from consolidated subsidiaries*15,0239,86410,710
Interest income305387358
Change in fair value of ML III--2,287
Net realized capital gains8169747
Other income1,345931806
Expenses:
Interest expense1,5071,9382,257
Net loss on extinguishment of debt2,2485809
Other expenses1,5461,5201,602
Income from continuing operations before income tax expense (benefit)5,8075,0872,300
Income tax benefit(1,735)(4,012)(1,137)
Net income7,5429,0993,437
Income (loss) from discontinued operations(13)(14)1
Net income attributable to AIG Parent Company$7,529$9,085$3,438
* Eliminated in consolidation.
See Accompanying Notes to Condensed Financial Information of Registrant.

Condensed Financial Information of Registrant (Continued)
Statements of Comprehensive Income — Parent Company Only
Schedule II
Years Ended December 31,
(in millions)201420132012
Net income$7,529$9,085$3,438
Other comprehensive income4,257(6,214)6,093
Total comprehensive income attributable to AIG$11,786$2,871$9,531
See accompanying Notes to Condensed Financial Information of Registrant

Condensed Financial Information of Registrant (Continued)
Statements of Cash Flows — Parent Company Only
Schedule II
Years Ended December 31,
(in millions)201420132012
Net cash provided by (used in) operating activities$9,316$6,422$(825)
Cash flows from investing activities:
Sales and maturities of investments2,9961,07416,546
Purchase of investments(1,051)(5,506)(4,406)
Net change in restricted cash(501)493(377)
Net change in short-term investments5,7922,361(2,029)
Contributions to subsidiaries - net(148)(2,081)(152)
Payments received on mortgages and other loan receivables40351328
Loans to subsidiaries - net4463,6605,126
Other, net(141)130259
Net cash provided by investing activities7,43348215,295
Cash flows from financing activities:
Issuance of long-term debt3,2472,0153,754
Repayment of long-term debt(14,468)(7,439)(3,238)
Cash dividends paid(712)(294)-
Loans from subsidiaries - net110(123)(2,032)
Purchase of Common Stock(4,902)(597)(13,000)
Other, net(28)(517)(49)
Net cash used in financing activities(16,753)(6,955)(14,565)
Change in cash(4)(51)(95)
Cash at beginning of year3081176
Cash at end of year$26$30$81
Supplementary disclosure of cash flow information:
Years Ended December 31,
(in millions)201420132012
Cash (paid) received during the period for:
Interest:
Third party$(1,624)$(1,963)$(2,089)
Intercompany5(12)(133)
Taxes:
Income tax authorities(18)(161)(7)
Intercompany1,172288230
Intercompany non-cash financing and investing activities:
Capital contributions in the form of bond available for sale securities--4,078
Capital contributions to subsidiaries through forgiveness of loans-341-
Other capital contributions - net2,457523579
Return of capital*4,836--
Dividends received in the form of bond available for sale securities3,088--
Intercompany loan receivable offset by intercompany payable--3,320
Return of capital and dividend received in the form of cancellation of intercompany loan--9,303
See Accompanying Notes to Condensed Financial Information of Registrant.
* Includes $4.8 billion return of capital from AIG Capital Corporation related to the sale of ILFC.

Notes to Condensed Financial Information of Registrant

American International Group, Inc.’s (the Registrant) investments in consolidated subsidiaries are stated at cost plus equity in undistributed income of consolidated subsidiaries. The accompanying condensed financial statements of the Registrant should be read in conjunction with the consolidated financial statements and notes thereto of American International Group, Inc. and subsidiaries included in the Registrant’s 2014 Annual Report on Form 10-K for the year ended December 31, 2014 (2014 Annual Report on Form 10-K) filed with the Securities and Exchange Commission on February 20, 2015.

The Registrant includes in its Statement of Income dividends from its subsidiaries and equity in undistributed income (loss) of consolidated subsidiaries, which represents the net income (loss) of each of its wholly-owned subsidiaries.

Certain prior period amounts have been reclassified to conform to the current period presentation.

The five-year debt maturity schedule is incorporated by reference from Note 15 to Consolidated Financial Statements.

The Registrant files a consolidated federal income tax return with certain subsidiaries and acts as an agent for the consolidated tax group when making payments to the Internal Revenue Service. The Registrant and its subsidiaries have adopted, pursuant to a written agreement, a method of allocating consolidated Federal income taxes. Amounts allocated to the subsidiaries under the written agreement are included in Due from affiliates in the accompanying Condensed Balance Sheets.

Income taxes in the accompanying Condensed Balance Sheets are composed of the Registrant’s current and deferred tax assets, the consolidated group’s current income tax receivable, deferred taxes related to tax attribute carryforwards of AIG’s U.S. consolidated income tax group and a valuation allowance to reduce the consolidated deferred tax asset to an amount more likely than not to be realized. See Note 24 to the Consolidated Financial Statements for additional information.

The consolidated U.S. deferred tax asset for net operating loss, capital loss and tax credit carryforwards and valuation allowance are recorded by the Parent Company, which files the consolidated U.S. Federal income tax return, and are not allocated to its subsidiaries. Generally, as, and if, the consolidated net operating losses and other tax attribute carryforwards are utilized, the intercompany tax balance will be settled with the subsidiaries.