INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2014

Years Ended December 31,
(in millions)		2014		2013		2012
Foreign and U.S. components of actual income tax expense:
Foreign:
Current	$	473	$	549	$	484
Deferred		154		(442)		(275)
U.S.:
Current		115		131		278
Deferred		2,185		122		(1,295)
Total	$	2,927	$	360	$	(808)

	2014						2013						2012
		Pre-Tax		Tax	Percent of			Pre-Tax		Tax	Percent of					Tax	Percent of
Years Ended December 31,		Income		Expense/	Pre-Tax			Income		Expense/	Pre-Tax			Pre-Tax		Expense/	Pre-Tax
(dollars in millions)		(Loss)		(Benefit)	Income (Loss)			(Loss)		(Benefit)	Income (Loss)			Income		(Benefit)	Income
U.S. federal income tax at statutory	$	10,524	$	3,683	35.0	%	$	9,518	$	3,331	35.0	%	$	2,891	$	1,012	35.0	%
rate adjustments:
Tax exempt interest				(236)	(2.2)					(298)	(3.1)					(302)	(10.4)
Investment in subsidiaries
and partnerships				-	-					-	-					(26)	(0.9)
Uncertain tax positions				(81)	(0.8)					632	6.6					446	15.4
Dividends received deduction				(62)	(0.6)					(75)	(0.8)					(58)	(2.0)
Effect of foreign operations				(68)	(0.6)					(5)	(0.1)					171	5.9
State income taxes				39	0.4					(21)	(0.2)					(48)	(1.7)
Other				(159)	(1.5)					13	0.1					(96)	(3.3)
Effect of discontinued operations				65	0.6					14	0.1					-	-
Valuation allowance:
Continuing operations				(181)	(1.7)					(3,165)	(33.3)					(1,907)	(65.9)
Consolidated total amounts		10,524		3,000	28.5			9,518		426	4.5			2,891		(808)	(27.9)
Amounts attributable to discontinued
operations		23		73	317.4			150		66	44.3			-		-	-
Amounts attributable to continuing
operations	$	10,501	$	2,927	27.9	%	$	9,368	$	360	3.8	%	$	2,891	$	(808)	(27.9)	%

December 31,
(in millions)		2014		2013
Deferred tax assets:
Losses and tax credit carryforwards	$	18,203	$	20,825
Basis Differences on Investments		4,114		4,843
Life Policy Reserves		629		445
Accruals not currently deductible, and other		1,804		2,935
Investments in foreign subsidiaries		(58)		1,035
Loss reserve discount		1,378		1,164
Loan loss and other reserves		152		888
Unearned premium reserve reduction		1,269		1,451
Employee benefits		1,543		1,217
Total deferred tax assets		29,034		34,803
Deferred tax liabilities:
Deferred policy acquisition costs		(3,003)		(3,396)
Flight equipment, fixed assets and intangible assets		28		(2,354)
Unrealized gains related to available for sale debt securities		(5,795)		(3,693)
Other		220		(571)
Total deferred tax liabilities		(8,550)		(10,014)
Net deferred tax assets before valuation allowance		20,484		24,789
Valuation allowance		(1,739)		(3,596)
Net deferred tax assets (liabilities)	$	18,745	$	21,193

December 31, 2014				Tax	Expiration
(in millions)		Gross		Effected	Periods
Net operating loss carryforwards	$	33,021	$	11,557	2028 - 2031
Foreign tax credit carryforwards		-		7,109	2016 - 2023
Other carryforwards and other		-		1,034	Various
Total AIG U.S. consolidated income tax group tax losses and credits carryforwards			$	19,700

December 31,
(in millions)		2014		2013
Net U.S. consolidated return group deferred tax assets	$	24,543	$	26,296
Net deferred tax assets (liabilities) in accumulated other comprehensive income		(5,510)		(3,337)
Valuation allowance		(129)		(1,650)
Subtotal		18,904		21,309
Net foreign, state and local deferred tax assets		2,045		2,563
Valuation allowance		(1,610)		(1,947)
Subtotal		435		616
Subtotal - Net U.S, foreign, state and local deferred tax assets		19,339		21,925
Net foreign, state and local deferred tax liabilities		(594)		(732)
Total AIG net deferred tax assets (liabilities)	$	18,745	$	21,193

Years Ended December 31,
(in millions)		2014		2013		2012
Gross unrecognized tax benefits, beginning of year	$	4,340	$	4,385	$	4,279
Increases in tax positions for prior years		91		680		336
Decreases in tax positions for prior years		(60)		(796)		(264)
Increases in tax positions for current year		10		43		47
Lapse in statute of limitations		(6)		(20)		(8)
Settlements		-		(2)		(5)
Activity of discontinued operations		20		50		-
Gross unrecognized tax benefits, end of year	$	4,395	$	4,340	$	4,385