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Schedule II Condensed Financial Information of Registrant - Parent Company Only
 12 Months Ended
Dec. 31, 2018
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)20182017
Assets:
Short-term investments(a)$1,141$2,541
Other investments3,3776,004
Total investments4,5188,545
Cash23
Loans to subsidiaries(b)34,96335,004
Due from affiliates - net(b)1,2061,585
Intercompany tax receivable(b)3,0533,058
Deferred income taxes10,74711,030
Investments in consolidated subsidiaries(b)33,30040,135
Other assets(c)383343
Total assets$88,172$99,703
Liabilities:
Due to affiliate(b)$2,329$4,340
Intercompany tax payable(b)2,9544,577
Deferred tax liabilities--
Notes and bonds payable20,85320,339
Junior subordinated debt1,548841
MIP notes payable-356
Series AIGFP matched notes and bonds payable2121
Loans from subsidiaries(b)615517
Other liabilities (includes intercompany derivative liabilities of $105 in 2018 and $63 in 2017)3,4913,541
Total liabilities31,81134,532
AIG Shareholders’ equity:
Common stock4,7664,766
Treasury stock(49,144)(47,595)
Additional paid-in capital81,26881,078
Retained earnings20,88421,457
Accumulated other comprehensive income(1,413)5,465
Total AIG shareholders’ equity56,36165,171
Total liabilities and equity$88,172$99,703

(a) At December 31, 2018 and 2017, included restricted cash of $124 million and $4 million, respectively.

(b) Eliminated in consolidation.

(c) At December 31, 2018 and 2017, included restricted cash of $1 million and $1 million, respectively.

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)201820172016
Revenues:
Equity in undistributed net income (loss) of consolidated subsidiaries(a)$(5,160)$(2,375)$(8,633)
Dividend income from consolidated subsidiaries(a)4,5802,2267,364
Interest income(b)961656411
Net realized capital gains (losses)(49)462
Other income26189103
Expenses:
Interest expense954949988
Net loss on extinguishment of debt-277
Net (gain) loss on sale of divested businesses(c)330(690)
Other expenses800922985
Loss from continuing operations before income tax expense (benefit)(1,399)(1,161)(2,113)
Income tax expense (benefit)(1,433)4,922(1,301)
Net income (loss)34(6,083)(812)
Loss from discontinued operations(40)(1)(37)
Net income (loss) attributable to AIG Parent Company$(6)$(6,084)$(849)
(a) Eliminated in consolidation.
(b) Includes interest income on intercompany borrowings of $840 million, $512 million and $294 million on December 31, 2018, 2017 and 2016, respectively,
eliminated in consolidation.
(c) Primarily includes pre-tax gain of $697 million on the sale of United Guaranty on December 31, 2016.
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)201820172016
Net income$(6)$(6,084)$(849)
Other comprehensive income(6,302)2,235693
Total comprehensive loss attributable to AIG$(6,308)$(3,849)$(156)
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)201820172016
Net cash provided by operating activities$1,256$36$2,112
Cash flows from investing activities:
Sales and maturities of investments5,5875,7145,598
Sales of divested businesses-402,160
Purchase of investments(1,980)(2,465)(1,002)
Net change in short-term investments1,5331,994(1,170)
Contributions to subsidiaries - net12,4461,637
Acquisition of business(5,475)--
Mortgage and other loan receivables - originations and purchases--(85)
Payments received on mortgages and other loan receivables-107171
Loans to subsidiaries - net8681991,525
Other, net(73)(183)(56)
Net cash provided by investing activities4617,8528,778
Cash flows from financing activities:
Issuance of long-term debt2,4701,5053,831
Repayment of long-term debt(1,493)(1,724)(1,996)
Cash dividends paid(1,138)(1,172)(1,372)
Loans from subsidiaries - net90(63)3
Purchase of Common Stock(1,739)(6,275)(11,460)
Other, net212(154)(309)
Net cash used in financing activities(1,598)(7,883)(11,303)
Change in cash and restricted cash1195(413)
Cash and restricted cash at beginning of year83416
Cash and restricted cash at end of year$127$8$3
Supplementary disclosure of cash flow information:
Years Ended December 31,
(in millions)201820172016
Cash$232
Restricted cash included in Short-term investments124$4$-
Restricted cash included in Other assets111
Total cash and restricted cash shown in Statements of Cash Flows — Parent Company Only$127$8$3
Cash (paid) received during the period for:
Interest:
Third party$(914)$(948)$(975)
Intercompany1-2
Taxes:
Income tax authorities(32)(329)(15)
Intercompany895614479
Intercompany non-cash financing and investing activities:
Capital contributions2,3692593,245
Return of capital2,70626-
Dividends received in the form of securities7457355,234
Fixed maturity securities received in exchange for equity securities--440
Non-cash financing/investing activities
Non-cash consideration received from sale of United Guaranty--1,101
See accompanying Notes to Condensed Financial Information of Registrant.

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 2018 Annual Report on Form 10-K for the year ended December 31, 2018 (Annual Report on Form 10-K) filed with the Securities and Exchange Commission on February 15, 2019.

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 and deferred taxes related to tax attribute carryforwards of AIG’s U.S. consolidated income tax group.

For additional information see Note 23 to the Consolidated Financial Statements.

The consolidated U.S. deferred tax asset for net operating loss, capital loss and tax credit carryforwards 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.