INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2017

Years Ended December 31,
(in millions)		2017		2016		2015
Foreign and U.S. components of actual income tax expense:
Foreign:
Current	$	209	$	436	$	391
Deferred		25		(121)		(95)
U.S.:
Current		427		140		429
Deferred		6,865		(270)		334
Total	$	7,526	$	185	$	1,059

	2017						2016							2015
		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
rate	$	1,476	$	517	35.0	%	$	(159)	$	(56)		35.0	%	$	3,281	$	1,148	35.0	%
Adjustments:
Tax exempt interest				(111)	(7.5)					(178)		111.9					(195)	(5.9)
Uncertain tax positions				660	44.7					268		(168.6)					195	5.9
Reclassifications from accumulated
other comprehensive income				(184)	(12.5)					(132)		83.0					(127)	(3.9)
Dispositions of Subsidiaries				17	1.2					118		(74.2)					-	-
Tax Attribute Restoration				-	-					(164)		103.1					-	-
Non-controlling Interest				(7)	(0.5)					(81)		50.9					-	-
Non-deductible transfer pricing
charges				35	2.4					102		(64.2)					97	3.0
Dividends received deduction				(90)	(6.1)					(75)		47.2					(72)	(2.2)
Effect of foreign operations				69	4.7					234		(147.2)					(58)	(1.8)
Share-based compensation
payments excess tax deduction				(40)	(2.7)					-		-					-	-
State income taxes				(9)	(0.6)					23		(14.5)					34	1.0
Impact of Tax Act				6,687	453.0					-		-					-	-
Other				(58)	(3.9)					13		(8.2)					(73)	(2.2)
Effect of discontinued operations				3	0.2					35		(22.0)					-	-
Valuation allowance:
Continuing operations				43	2.9					83		(52.2)					110	3.4
Consolidated total amounts		1,476		7,532	510.3			(159)		190		(119.5)			3,281		1,059	32.3
Amounts attributable to discontinued
operations		10		6	60.0			(85)		5		(5.9)			-		-	-
Amounts attributable to continuing
operations	$	1,466	$	7,526	513.4	%	$	(74)	$	185		(250.0)	%	$	3,281	$	1,059	32.3	%

December 31,
(in millions)		2017		2016
Deferred tax assets:
Losses and tax credit carryforwards	$	11,931	$	16,448
Basis differences on investments		2,133		4,985
Life policy reserves		1,996		3,040
Accruals not currently deductible, and other		532		1,128
Investments in foreign subsidiaries		159		103
Loss reserve discount		526		1,151
Loan loss and other reserves		34		39
Unearned premium reserve reduction		566		924
Fixed assets and intangible assets		442		478
Other		731		710
Employee benefits		601		1,171
Total deferred tax assets		19,651		30,177
Deferred tax liabilities:
Deferred policy acquisition costs		(2,313)		(3,790)
Unrealized gains related to available for sale debt securities		(2,151)		(2,844)
Total deferred tax liabilities		(4,464)		(6,634)
Net deferred tax assets before valuation allowance		15,187		23,543
Valuation allowance		(1,374)		(2,831)
Net deferred tax assets (liabilities)	$	13,813	$	20,712

December 31, 2017				Tax	Expiration
(in millions)		Gross		Effected	Periods
Net operating loss carryforwards	$	35,592	$	7,474	2028-2037
Capital loss carryforwards		305		64	2022
Foreign tax credit carryforwards				4,481	2018-2022
Other carryforwards				1,154	Various
Total AIG U.S. consolidated income tax group tax losses and credits
carryforwards on a tax return basis				13,173
Unrecognized tax benefit				(2,543)
Total AIG U.S. consolidated income tax group tax losses and credits
carryforwards on a U.S. GAAP basis^*			$	10,630

* Includes other carryforwards, e.g. general business credits, of $118 million on a U.S. GAAP basis.

December 31, 2017				Tax	Expiration
(in millions)		Gross		Effected	Periods
Net operating loss carryforwards	$	35,592	$	7,474	2028-2037
Capital loss carryforwards		305		64	2022
Foreign tax credit carryforwards				4,481	2018-2022
Other carryforwards				1,154	Various
Total AIG U.S. consolidated income tax group tax losses and credits
carryforwards on a tax return basis				13,173
Unrecognized tax benefit				(2,543)
Total AIG U.S. consolidated income tax group tax losses and credits
carryforwards on a U.S. GAAP basis^*			$	10,630

* Includes other carryforwards, e.g. general business credits, of $118 million on a U.S. GAAP basis.

December 31,
(in millions)		2017		2016
Net U.S. consolidated return group deferred tax assets	$	15,603	$	24,134
Net deferred tax assets (liabilities) in accumulated other comprehensive income		(2,070)		(2,384)
Valuation allowance		(86)		(874)
Subtotal		13,447		20,876
Net foreign, state and local deferred tax assets		1,874		2,413
Valuation allowance		(1,288)		(1,957)
Subtotal		586		456
Subtotal - Net U.S., foreign, state and local deferred tax assets		14,033		21,332
Net foreign, state and local deferred tax liabilities		(220)		(620)
Total AIG net deferred tax assets (liabilities)	$	13,813	$	20,712

Years Ended December 31,
(in millions)		2017		2016		2015
Gross unrecognized tax benefits, beginning of year	$	4,530	$	4,331	$	4,395
Increases in tax positions for prior years		210		235		162
Decreases in tax positions for prior years		(33)		(39)		(209)
Increases in tax positions for current year		-		3		-
Lapse in statute of limitations		-		-		(4)
Settlements		-		-		(13)
Activity of discontinued operations		-		-		-
Gross unrecognized tax benefits, end of year	$	4,707	$	4,530	$	4,331