INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT (Tables)

9 Months Ended

Sep. 30, 2013

INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT

Condensed Consolidating Balance Sheets

(in millions)	American International Group, Inc. (As Guarantor)		AIGLH		Other Subsidiaries			Reclassifications and Eliminations			Consolidated AIG
September 30, 2013
Assets:
Short-term investments	$	12,612	$	–	$	11,741		$	(1,896	)	$	22,457
Other investments(a)		7,361		–		328,484			–			335,845
Total investments		19,973		–		340,225			(1,896	)		358,302
Cash		62		5		1,991			–			2,058
Loans to subsidiaries(b)		31,376		–		955			(32,331	)		–
Investment in consolidated subsidiaries(b)		68,252		39,624		–			(107,876	)		–
Other assets, including deferred income taxes		26,342		97		124,712			(887	)		150,264
Assets held for sale		–		–		30,120			–			30,120
Total assets	$	146,005	$	39,726	$	498,003		$	(142,990	)	$	540,744
Liabilities:
Insurance liabilities	$	–	$	–	$	273,501		$	–		$	273,501
Long-term debt		31,393		1,352		9,486			–			42,231
Other liabilities, including intercompany balances(a)(c)		14,908		114		87,732			(2,705	)		100,049
Loans from subsidiaries(b)		911		268		31,334			(32,513	)		–
Liabilities held for sale		–		–		25,448			–			25,448
Total liabilities		47,212		1,734		427,501			(35,218	)		441,229
Redeemable noncontrolling interests (see Note 12)		–		–		66			–			66
Total AIG shareholders' equity		98,793		37,992		69,780			(107,772	)		98,793
Non-redeemable noncontrolling interests		–		–		656			–			656
Total equity		98,793		37,992		70,436			(107,772	)		99,449
Total liabilities and equity	$	146,005	$	39,726	$	498,003		$	(142,990	)	$	540,744
December 31, 2012
Assets:
Short-term investments	$	14,764	$	–	$	18,323		$	(4,279	)	$	28,808
Other investments(a)		3,902		–		345,706			(2,592	)		347,016
Total investments		18,666		–		364,029			(6,871	)		375,824
Cash		81		73		997			–			1,151
Loans to subsidiaries(b)		35,064		–		5,169			(40,233	)		–
Investment in consolidated subsidiaries(b)		70,781		43,891		(28,239	)		(86,433	)		–
Other assets, including deferred income taxes		23,153		150		121,345			(4,955	)		139,693
Assets held for sale		–		–		31,965			–			31,965
Total assets	$	147,745	$	44,114	$	495,266		$	(138,492	)	$	548,633
Liabilities:
Insurance liabilities	$	–	$	–	$	280,533		$	(235	)	$	280,298
Long-term debt		36,366		1,638		10,197			299			48,500
Other liabilities, including intercompany balances(a)(c)		12,375		261		89,976			(9,146	)		93,466
Loans from subsidiaries(b)		1,002		472		41,754			(43,228	)		–
Liabilities held for sale		–		–		27,366			–			27,366
Total liabilities		49,743		2,371		449,826			(52,310	)		449,630
Redeemable noncontrolling interests (see Note 12)		–		–		192			142			334
Total AIG shareholders' equity		98,002		41,743		44,955			(86,698	)		98,002
Non-redeemable noncontrolling interests		–		–		293			374			667
Total equity		98,002		41,743		45,248			(86,324	)		98,669
Total liabilities and equity	$	147,745	$	44,114	$	495,266		$	(138,492	)	$	548,633

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

(b)  Eliminated in consolidation.

(c)  For September 30, 2013 and December 31, 2012, includes intercompany tax payables of $8.6 billion and $6.1 billion, respectively, and intercompany derivative liabilities of $353 million and $602 million, respectively, for American International Group, Inc. (As Guarantor) and intercompany tax receivables for $82 million and $120 million, respectively, for AIGLH.

Condensed Consolidating Statements of Income

(in millions)	American International Group, Inc. (As Guarantor)			AIGLH			Other Subsidiaries			Reclassifications and Eliminations			Consolidated AIG
Three Months Ended September 30, 2013
Revenues:
Equity in earnings of consolidated subsidiaries*	$	1,992		$	1,368		$	–		$	(3,360	)	$	–
Other income		64			1			14,866			(105	)		14,826
Total revenues		2,056			1,369			14,866			(3,465	)		14,826
Expenses:
Interest expense		465			29			59			(37	)		516
Loss on extinguishment of debt		81			–			–			–			81
Other expenses		668			3			12,410			(31	)		13,050
Total expenses		1,214			32			12,469			(68	)		13,647
Income (loss) from continuing operations before income tax expense (benefit)		842			1,337			2,397			(3,397	)		1,179
Income tax expense (benefit)		(1,328	)		(13	)		361			(13	)		(993	)
Income (loss) from continuing operations		2,170			1,350			2,036			(3,384	)		2,172
Loss from discontinued operations, net of income taxes		–			–			(42	)		–			(42	)
Net income (loss)		2,170			1,350			1,994			(3,384	)		2,130
Less:
Net loss from continuing operations attributable to noncontrolling interests		–			–			(40	)		–			(40	)
Net income (loss) attributable to AIG	$	2,170		$	1,350		$	2,034		$	(3,384	)	$	2,170
Three Months Ended September 30, 2012
Revenues:
Equity in earnings of consolidated subsidiaries*	$	1,811		$	1,580		$	–		$	(3,391	)	$	–
Change in fair value of ML III		330			–			–			–			330
Other income		373			–			16,080			(61	)		16,392
Total revenues		2,514			1,580			16,080			(3,452	)		16,722
Expenses:
Interest expense		550			38			74			(60	)		602
Other expenses		173			–			13,389			–			13,562
Total expenses		723			38			13,463			(60	)		14,164
Income (loss) from continuing operations before income tax expense (benefit)		1,791			1,542			2,617			(3,392	)		2,558
Income tax expense (benefit)		(65	)		117			682			–			734
Income (loss) from continuing operations		1,856			1,425			1,935			(3,392	)		1,824
Income from discontinued operations, net of income taxes		–			–			37			–			37
Net income (loss)		1,856			1,425			1,972			(3,392	)		1,861
Less:
Net income from continuing operations attributable to noncontrolling interests:
Other		–			–			5			–			5
Net income from continuing operations attributable to noncontrolling interests		–			–			5			–			5
Net income (loss) attributable to AIG	$	1,856		$	1,425		$	1,967		$	(3,392	)	$	1,856

(in millions)	American International Group, Inc. (As Guarantor)			AIGLH			Other Subsidiaries		Reclassifications and Eliminations			Consolidated AIG
Nine Months Ended September 30, 2013
Revenues:
Equity in earnings of consolidated subsidiaries*	$	6,257		$	2,792		$	–	$	(9,049	)	$	–
Other income		1,031			1			47,255		(258	)		48,029
Total revenues		7,288			2,793			47,255		(9,307	)		48,029
Expenses:
Interest expense		1,475			97			177		(121	)		1,628
Loss on extinguishment of debt		388			–			71		–			459
Other expenses		1,261			74			37,537		(88	)		38,784
Total expenses		3,124			171			37,785		(209	)		40,871
Income (loss) from continuing operations before income tax expense (benefit)		4,164			2,622			9,470		(9,098	)		7,158
Income tax expense (benefit)		(2,946	)		(27	)		3,113		(17	)		123
Income (loss) from continuing operations		7,110			2,649			6,357		(9,081	)		7,035
Income (loss) from discontinued operations, net of income taxes		(3	)		–			87		–			84
Net income (loss)		7,107			2,649			6,444		(9,081	)		7,119
Less:
Net income from continuing operations attributable to noncontrolling interests		–			–			12		–			12
Net income (loss) attributable to AIG	$	7,107		$	2,649		$	6,432	$	(9,081	)	$	7,107
Nine Months Ended September 30, 2012
Revenues:
Equity in earnings of consolidated subsidiaries*	$	5,757		$	1,716		$	–	$	(7,473	)	$	–
Change in fair value of ML III		2,287			–			601		–			2,888
Other income		1,074			49			46,759		(330	)		47,552
Total revenues		9,118			1,765			47,360		(7,803	)		50,440
Expenses:
Interest expense		1,719			136			207		(328	)		1,734
Net loss on extinguishment of debt		9			–			–		–			9
Other expenses		1,278			–			38,726		–			40,004
Total expenses		3,006			136			38,933		(328	)		41,747
Income (loss) from continuing operations before income tax expense (benefit)		6,112			1,629			8,427		(7,475	)		8,693
Income tax expense (benefit)		(1,284	)		580			2,028		–			1,324
Income (loss) from continuing operations		7,396			1,049			6,399		(7,475	)		7,369
Income from discontinued operations, net of income taxes		–			–			280		–			280
Net income (loss)		7,396			1,049			6,679		(7,475	)		7,649
Less:
Net income (loss) from continuing operations attributable to noncontrolling interests:
Nonvoting, callable, junior and senior preferred interests		–			–			–		208			208
Other		–			–			45		–			45
Net income from continuing operations attributable to noncontrolling interests		–			–			45		208			253
Net income (loss) attributable to AIG	$	7,396		$	1,049		$	6,634	$	(7,683	)	$	7,396

*     Eliminated in consolidation.

Condensed Consolidating Statements of Comprehensive Income

(in millions)	American International Group, Inc. (As Guarantor)			AIGLH			Other Subsidiaries			Reclassifications and Eliminations			Consolidated AIG
Three Months Ended September 30, 2013
Net income (loss)	$	2,170		$	1,350		$	1,994		$	(3,384	)	$	2,130
Other comprehensive income (loss)		(530	)		(299	)		(498	)		795			(532	)
Comprehensive income (loss)		1,640			1,051			1,496			(2,589	)		1,598
Total comprehensive loss attributable to noncontrolling interests		–			–			(42	)		–			(42	)
Comprehensive income (loss) attributable to AIG	$	1,640		$	1,051		$	1,538		$	(2,589	)	$	1,640
Three Months Ended September 30, 2012
Net income (loss)	$	1,856		$	1,425		$	1,972		$	(3,392	)	$	1,861
Other comprehensive income (loss)		3,096			1,995			3,096			(5,088	)		3,099
Comprehensive income (loss)		4,952			3,420			5,068			(8,480	)		4,960
Total comprehensive income attributable to noncontrolling interests		–			–			8			–			8
Comprehensive income (loss) attributable to AIG	$	4,952		$	3,420		$	5,060		$	(8,480	)	$	4,952
Nine Months Ended September 30, 2013
Net income (loss)	$	7,107		$	2,649		$	6,444		$	(9,081	)	$	7,119
Other comprehensive income (loss)		(6,065	)		(4,289	)		(6,125	)		10,391			(6,088	)
Comprehensive income (loss)		1,042			(1,640	)		319			1,310			1,031
Total comprehensive loss attributable to noncontrolling interests		–			–			(11	)		–			(11	)
Comprehensive income (loss) attributable to AIG	$	1,042		$	(1,640	)	$	330		$	1,310		$	1,042
Nine Months Ended September 30, 2012
Net income (loss)	$	7,396		$	1,049		$	6,679		$	(7,475	)	$	7,649
Other comprehensive income (loss)		5,734			3,754			6,791			(10,545	)		5,734
Comprehensive income (loss)		13,130			4,803			13,470			(18,020	)		13,383
Total comprehensive income attributable to noncontrolling interests		–			–			45			208			253
Comprehensive income (loss) attributable to AIG	$	13,130		$	4,803		$	13,425		$	(18,228	)	$	13,130

Condensed Consolidating Statements of Cash Flows

(in millions)	American International Group, Inc. (As Guarantor)			AIGLH			Other Subsidiaries and Eliminations			Consolidated AIG
Nine Months Ended September 30, 2013
Net cash (used in) provided by operating activities — continuing operations	$	3,078		$	3,082		$	(4,236	)	$	1,924
Net cash provided by operating activities — discontinued operations		–			–			2,024			2,024
Net cash (used in) provided by operating activities		3,078			3,082			(2,212	)		3,948
Cash flows from investing activities:
Sales of investments		1,065			–			57,607			58,672
Purchase of investments		(4,981	)		–			(54,232	)		(59,213	)
Loans to subsidiaries — net		3,491			–			(3,491	)		–
Contributions to subsidiaries — net		(240	)		(1	)		241			–
Net change in restricted cash		428			–			549			977
Net change in short-term investments		2,552			–			4,249			6,801
Other, net		194			–			(1,063	)		(869	)
Net cash (used in) provided by investing activities — continuing operations		2,509			(1	)		3,860			6,368
Net cash provided by investing activities — discontinued operations		–			–			150			150
Net cash (used in) provided by investing activities		2,509			(1	)		4,010			6,518
Cash flows from financing activities:
Issuance of long-term debt		1,020			–			722			1,742
Repayments of long-term debt		(5,866	)		(245	)		(1,270	)		(7,381	)
Purchase of Common Stock		(192	)		–			–			(192	)
Intercompany loans — net		(89	)		(205	)		294			–
Cash dividends paid		(147	)		(2,699	)		2,699			(147	)
Other, net		(332	)		–			(996	)		(1,328	)
Net cash (used in) provided by financing activities — continuing operations		(5,606	)		(3,149	)		1,449			(7,306	)
Net cash (used in) financing activities — discontinued operations		–			–			(2,166	)		(2,166	)
Net cash (used in) financing activities		(5,606	)		(3,149	)		(717	)		(9,472	)
Effect of exchange rate changes on cash		–			–			(79	)		(79	)
Change in cash		(19	)		(68	)		1,002			915
Cash at beginning of year		81			73			997			1,151
Reclassification to assets held for sale		–			–			(8	)		(8	)
Cash at end of period	$	62		$	5		$	1,991		$	2,058
Nine Months Ended September 30, 2012
Net cash (used in) provided by operating activities — continuing operations	$	1,275		$	2,243		$	(2,928	)	$	590
Net cash provided by operating activities — discontinued operations		–			–			2,249			2,249
Net cash (used in) provided by operating activities		1,275			2,243			(679	)		2,839
Cash flows from investing activities:
Sales of investments		9,806			–			65,131			74,937
Purchase of investments		(4,339	)		–			(51,709	)		(56,048	)
Loans to subsidiaries — net		1,730			–			(1,730	)		–
Contributions to subsidiaries — net		954			–			(954	)		–
Net change in restricted cash		(381	)		–			1,032			651
Net change in short-term investments		4,881			–			(3,081	)		1,800
Other, net		252			–			(429	)		(177	)
Net cash provided by investing activities — continuing operations		12,903			–			8,260			21,163
Net cash (used in) investing activities — discontinued operations		–			–			(2,005	)		(2,005	)
Net cash provided by investing activities		12,903			–			6,255			19,158
Cash flows from financing activities:
Issuance of long-term debt		3,754			–			750			4,504
Repayments of long-term debt		(2,995	)		–			(3,176	)		(6,171	)
Intercompany loans — net		(1,944	)		(2,256	)		4,200			–
Purchase of common stock		(13,000	)		–			–			(13,000	)
Other, net		(44	)		–			(6,871	)		(6,915	)
Net cash (used in) financing activities — continuing operations		(14,229	)		(2,256	)		(5,097	)		(21,582	)
Net cash (used in) financing activities — discontinued operations		–			–			(272	)		(272	)
Net cash (used in) financing activities		(14,229	)		(2,256	)		(5,369	)		(21,854	)
Effect of exchange rate changes on cash		–			–			(9	)		(9	)
Change in cash		(51	)		(13	)		198			134
Cash at beginning of year		176			13			1,285			1,474
Cash at end of period	$	125		$	–		$	1,483		$	1,608

Supplementary Disclosure of Condensed Consolidating Cash Flow Information

(in millions)	American International Group, Inc. (As Guarantor)			AIGLH			Other Subsidiaries and Eliminations			Consolidated AIG
Cash (paid) received during the nine month period ended September 30, 2013 period for:
Interest:
Third party	$	(1,473	)	$	(98	)	$	(1,380	)	$	(2,951	)
Intercompany		(9	)		(21	)		30			–
Taxes:
Income tax authorities	$	(160	)	$	–		$	(218	)	$	(378	)
Intercompany		1,116			(78	)		(1,038	)		–
Cash (paid) received during the nine month period ended September 30, 2012 period for:
Interest:
Third party	$	(1,535	)	$	(109	)	$	(1,412	)	$	(3,056	)
Intercompany		(129	)		(49	)		178			–
Taxes:
Income tax authorities	$	(6	)	$	–		$	(397	)	$	(403	)
Intercompany		884			(41	)		(843	)		–

Supplementary disclosure of non-cash activities

Nine Months Ended September 30, (in millions)	2013		2012
Intercompany non-cash financing and investing activities:
Capital contributions
in the form of bond available for sale securities	$	–	$	959
to subsidiaries through forgiveness of loans		341
Return of capital and dividend received
in the form of cancellation of intercompany loan		–		9,303
in the form of bond trading securities		–		3,320
Other capital contributions — net		523		339