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INCOME TAXES (Tables)
12 Months Ended
Dec. 31, 2021
INCOME TAXES  
Schedule of income (loss) from continuing operations before income tax expense (benefit) by U.S. and foreign location

Years Ended December 31,

 

 

 

 

 

 

(in millions)

 

2021

 

2020

 

2019

U.S.

$

9,838

$

(8,396)

$

3,825

Foreign

 

2,261

 

1,103

 

1,462

Total

$

12,099

$

(7,293)

$

5,287

Schedule of income tax expense (benefit) attributable to pre-tax income (loss) from continuing operations

Years Ended December 31,

 

 

 

 

 

 

(in millions)

 

2021

 

2020

 

2019

Foreign and U.S. components of actual income tax expense (benefit):

 

 

 

 

 

 

U.S.:

 

 

 

 

 

 

Current

$

(216)

$

(57)

$

278

Deferred

 

2,190

 

(1,676)

 

633

Foreign:

 

 

 

 

 

 

Current

 

171

 

274

 

267

Deferred

 

31

 

(1)

 

(12)

Total

$

2,176

$

(1,460)

$

1,166

Schedule of reconciliation between actual income tax (benefit) expense and statutory U.S. federal amount computed by applying the federal income tax rate

Years Ended December 31,

2021

 

2020

 

2019

 

 

Pre-Tax

 

Tax

 

Percent of

 

 

 

Pre-Tax

 

Tax

 

Percent of

 

 

 

Pre-Tax

 

Tax

 

Percent of

 

 

 

Income

 

Expense/

 

Pre-Tax

 

 

 

Income

 

Expense/

 

Pre-Tax

 

 

 

Income

 

Expense/

 

Pre-Tax

 

(dollars in millions)

 

(Loss)

 

(Benefit)

 

Income (Loss)

 

 

 

(Loss)

 

(Benefit)

Income (Loss)

 

 

 

(Loss)

 

(Benefit)

Income (Loss)

 

U.S. federal income tax at statutory

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

rate

$

12,099

$

2,540

 

21.0

%

 

$

(7,288)

$

(1,531)

 

21.0

%

 

$

5,336

$

1,120

 

21.0

%

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax exempt interest

 

 

 

(18)

 

(0.1)

 

 

 

 

 

(19)

 

0.3

 

 

 

 

 

(25)

 

(0.5)

 

Uncertain tax positions*

 

 

 

(9)

 

(0.1)

 

 

 

 

 

165

 

(2.3)

 

 

 

 

 

258

 

4.8

 

Reclassifications from AOCI

 

 

 

(109)

 

(0.9)

 

 

 

 

 

(101)

 

1.4

 

 

 

 

 

(113)

 

(2.1)

 

Dispositions of subsidiaries

 

 

 

11

 

0.1

 

 

 

 

 

180

 

(2.5)

 

 

 

 

 

21

 

0.4

 

Non-controlling interest

 

 

 

(97)

 

(0.8)

 

 

 

 

 

(12)

 

0.2

 

 

 

 

 

(5)

 

(0.1)

 

Non-deductible transfer pricing

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

charges

 

 

 

16

 

0.1

 

 

 

 

 

11

 

(0.2)

 

 

 

 

 

15

 

0.3

 

Dividends received deduction

 

 

 

(37)

 

(0.3)

 

 

 

 

 

(39)

 

0.5

 

 

 

 

 

(40)

 

(0.7)

 

Effect of foreign operations

 

 

 

134

 

1.1

 

 

 

 

 

76

 

(1.0)

 

 

 

 

 

82

 

1.5

 

Share-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

payments excess tax effect

 

 

 

16

 

0.1

 

 

 

 

 

35

 

(0.5)

 

 

 

 

 

27

 

0.5

 

State income taxes

 

 

 

37

 

0.3

 

 

 

 

 

15

 

(0.2)

 

 

 

 

 

13

 

0.2

 

Expiration of tax attribute

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

carryforwards

 

 

 

16

 

0.1

 

 

 

 

 

221

 

(3.0)

 

 

 

 

 

-

 

-

 

Tax audit resolution

 

 

 

(935)

 

(7.6)

 

 

 

 

 

(379)

 

5.2

 

 

 

 

 

-

 

-

 

Other*

 

 

 

(107)

 

(0.9)

 

 

 

 

 

(16)

 

0.2

 

 

 

 

 

(134)

 

(2.5)

 

Effect of discontinued operations

 

 

 

-

 

-

 

 

 

 

 

-

 

-

 

 

 

 

 

(8)

 

(0.1)

 

Valuation allowance:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations

 

 

 

718

 

5.9

 

 

 

 

 

(65)

 

0.9

 

 

 

 

 

(44)

 

(0.8)

 

Consolidated total amounts

 

12,099

 

2,176

 

18.0

 

 

 

(7,288)

 

(1,459)

 

20.0

 

 

 

5,336

 

1,167

 

21.9

 

Amounts attributable to discontinued

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

operations

 

-

 

-

 

-

 

 

 

5

 

1

 

20.0

 

 

 

49

 

1

 

2.0

 

Amounts attributable to continuing

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

operations

$

12,099

$

2,176

 

18.0

%

 

$

(7,293)

$

(1,460)

 

20.0

%

 

$

5,287

$

1,166

 

22.1

%

*2020 includes a net charge of $67 million related to the accrual of IRS interest, of which $139 million tax expense is reported in Uncertain tax positions and $72 million tax benefit is reported in Other. 2019 includes a net charge of $96 million related to the accrual of IRS interest, of which $207 million tax expense is reported in Uncertain tax positions and $(111) million tax benefit is reported in Other.
Schedule of components of the net deferred tax asset

December 31,

 

 

 

 

(in millions)

 

2021

 

2020

Deferred tax assets:

 

 

 

 

Losses and tax credit carryforwards

$

7,291

$

9,257

Basis differences on investments

 

2,944

 

3,718

Fortitude Re funds withheld embedded derivative

 

543

 

1,193

Life policy reserves

 

3,751

 

2,396

Accruals not currently deductible, and other

 

634

 

632

Investments in foreign subsidiaries

 

-

 

146

Loss reserve discount

 

455

 

423

Loan loss and other reserves

 

509

 

560

Unearned premium reserve reduction

 

283

 

326

Fixed assets and intangible assets

 

1,262

 

1,077

Other

 

247

 

-

Employee benefits

 

407

 

567

Total deferred tax assets

 

18,326

 

20,295

Deferred tax liabilities:

 

 

 

 

Investments in foreign subsidiaries

 

(15)

 

-

Deferred policy acquisition costs

 

(2,054)

 

(2,026)

Unrealized gains related to available for sale debt securities

 

(2,791)

 

(4,328)

Other

 

-

 

(221)

Total deferred tax liabilities

 

(4,860)

 

(6,575)

Net deferred tax assets before valuation allowance

 

13,466

 

13,720

Valuation allowance

 

(1,987)

 

(1,330)

Net deferred tax assets (liabilities)

$

11,479

$

12,390

Schedule of consolidated income tax group tax losses carryforwards

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unlimited

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Carryforward

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Period and

December 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Carryforward

 

 

 

 

Tax

 

Carryforward Period Ending Tax Year(b)

 

 

Periods(b)

(in millions)

 

Gross

 

Effected

 

 

2022

 

2023

 

2024

 

2025

 

2026

 

2027

 

2028 - After

Net operating loss carryforwards

$

27,597

$

5,795

 

$

-

$

-

$

-

$

-

$

-

$

-

 

$

5,795

Capital loss carryforwards

$

-

 

-

 

 

-

 

-

 

-

 

-

 

-

 

-

 

 

-

Foreign tax credit carryforwards

 

 

 

284

 

 

-

 

284

 

-

 

-

 

-

 

-

 

 

-

Other carryforwards

 

 

 

-

 

 

-

 

-

 

-

 

-

 

-

 

-

 

 

-

Total AIG U.S. consolidated federal income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

tax group tax losses and credits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

carryforwards on a U.S. GAAP basis(a)

 

 

$

6,079

 

$

-

$

284

$

-

$

-

$

-

$

-

 

$

5,795

(a)Financial reporting basis reflects the impact of unrecognized tax benefits for tax years in which tax attributes can be realized through carryback upon settlement.(b)Carryforward periods are based on U.S. tax laws governing utilization of tax attributes. Expiration periods are based on the year the carryforward was generated.
Schedule of net deferred tax assets (liabilities)

December 31,

 

 

 

 

 

(in millions)

 

 

 

2021

 

2020

Net U.S. consolidated return group deferred tax assets

 

 

$

14,616

$

16,502

Net deferred tax assets (liabilities) in AOCI

 

 

 

(2,764)

 

(4,259)

Valuation allowance

 

 

 

(859)

 

(237)

Subtotal

 

 

 

10,993

 

12,006

Net foreign, state and local deferred tax assets

 

 

 

1,849

 

1,711

Valuation allowance

 

 

 

(1,128)

 

(1,093)

Subtotal

 

 

 

721

 

618

Subtotal - Net U.S., foreign, state and local deferred tax assets

 

 

 

11,714

 

12,624

Net foreign, state and local deferred tax liabilities

 

 

 

(235)

 

(234)

Total AIG net deferred tax assets (liabilities)

 

 

$

11,479

$

12,390

Schedule of reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits

Years Ended December 31,

 

 

 

 

 

 

(in millions)

 

2021

 

2020

 

2019

Gross unrecognized tax benefits, beginning of year

$

2,343

$

4,762

$

4,709

Increases in tax positions for prior years

 

22

 

45

 

51

Decreases in tax positions for prior years

 

(1,233)

 

(131)

 

(1)

Increases in tax positions for current year

 

37

 

13

 

4

Settlements

 

(12)

 

(2,346)

 

(1)

Gross unrecognized tax benefits, end of year

$

1,157

$

2,343

$

4,762

Schedule of tax years that remain subject to examination by major tax jurisdictions

At December 31, 2021

Open Tax Years

Major Tax Jurisdiction

 

United States

2007-2020

Australia

2017-2020

Canada

2014-2020

France

2019-2020

Japan

2015-2020

Korea

2014-2020

Singapore

2017-2020

United Kingdom

2020-2020