INCOME TAXES (Tables)
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12 Months Ended |
Dec. 31, 2018 |
INCOME TAXES |
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Schedule of income (loss) from continuing operations before income tax expense (benefit) by U.S. and foreign location |
Years Ended December 31, | | | | | | | (in millions) | | 2018 | | 2017 | | 2016 | U.S. | $ | (12) | $ | 1,940 | $ | 1,041 | Foreign | | 269 | | (474) | | (1,115) | Total | $ | 257 | $ | 1,466 | $ | (74) |
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Schedule of income tax expense (benefit) attributable to pre-tax income (loss) from continuing operations |
Years Ended December 31, | | | | | | | (in millions) | | 2018 | | 2017 | | 2016 | Foreign and U.S. components of actual income tax expense: | | | | | | | U.S.: | | | | | | | Current | $ | 134 | $ | 427 | $ | 140 | Deferred | | (175) | | 6,865 | | (270) | Foreign: | | | | | | | Current | | 202 | | 209 | | 436 | Deferred | | (7) | | 25 | | (121) | Total | $ | 154 | $ | 7,526 | $ | 185 |
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Schedule of reconciliation between actual income tax (benefit) expense and statutory U.S. federal amount computed by applying the federal income tax rate |
| 2018 | | 2017 | | 2016 | | | 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 | $ | 255 | $ | 54 | | 21.0 | % | | $ | 1,476 | $ | 517 | | 35.0 | % | | $ | (159) | $ | (56) | | 35.0 | % | Adjustments: | | | | | | | | | | | | | | | | | | | | | | | | Tax exempt interest | | | | (37) | | (14.5) | | | | | | (111) | | (7.5) | | | | | | (178) | | 111.9 | | Uncertain tax positions | | | | 176 | | 69.0 | | | | | | 660 | | 44.7 | | | | | | 268 | | (168.6) | | Reclassifications from accumulated | | | | | | | | | | | | | | | | | | | | | | | | other comprehensive income | | | | (72) | | (28.2) | | | | | | (184) | | (12.5) | | | | | | (132) | | 83.0 | | Dispositions of Subsidiaries | | | | - | | - | | | | | | 17 | | 1.2 | | | | | | 118 | | (74.2) | | Tax Attribute Restoration | | | | - | | - | | | | | | - | | - | | | | | | (164) | | 103.1 | | Non-controlling Interest | | | | (1) | | (0.4) | | | | | | (7) | | (0.5) | | | | | | (81) | | 50.9 | | Non-deductible transfer pricing | | | | | | | | | | | | | | | | | | | | | | | | charges | | | | 29 | | 11.4 | | | | | | 35 | | 2.4 | | | | | | 102 | | (64.2) | | Dividends received deduction | | | | (38) | | (14.8) | | | | | | (90) | | (6.1) | | | | | | (75) | | 47.2 | | Effect of foreign operations | | | | 44 | | 17.3 | | | | | | 69 | | 4.7 | | | | | | 234 | | (147.2) | | Share-based compensation | | | | | | | | | | | | | | | | | | | | | | | | payments excess tax deduction | | | | (13) | | (5.1) | | | | | | (40) | | (2.7) | | | | | | - | | - | | State income taxes | | | | 10 | | 3.9 | | | | | | (9) | | (0.6) | | | | | | 23 | | (14.5) | | Impact of Tax Act | | | | 62 | | 24.3 | | | | | | 6,687 | | 453.0 | | | | | | - | | - | | Global intangible low-taxed income | | | | 21 | | 8.2 | | | | | | - | | - | | | | | | - | | - | | Other | | | | (102) | | (40.0) | | | | | | (58) | | (3.9) | | | | | | 13 | | (8.2) | | Effect of discontinued operations | | | | 40 | | 15.7 | | | | | | 3 | | 0.2 | | | | | | 35 | | (22.0) | | Valuation allowance: | | | | | | | | | | | | | | | | | | | | | | | | Continuing operations | | | | 21 | | 8.2 | | | | | | 43 | | 2.9 | | | | | | 83 | | (52.2) | | Consolidated total amounts | | 255 | | 194 | | 76.0 | | | | 1,476 | | 7,532 | | 510.3 | | | | (159) | | 190 | | (119.5) | | Amounts attributable to discontinued | | | | | | | | | | | | | | | | | | | | | | | | operations | | (2) | | 40 | | NM | | | | 10 | | 6 | | 60.0 | | | | (85) | | 5 | | (5.9) | | Amounts attributable to continuing | | | | | | | | | | | | | | | | | | | | | | | | operations | $ | 257 | $ | 154 | | 59.9 | % | | $ | 1,466 | $ | 7,526 | | 513.4 | % | | $ | (74) | $ | 185 | | (250.0) | % |
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Schedule of components of the net deferred tax asset |
December 31, | | | | | (in millions) | | 2018 | | 2017 | Deferred tax assets: | | | | | Losses and tax credit carryforwards | $ | 11,792 | $ | 11,931 | Basis differences on investments | | 2,038 | | 2,133 | Life policy reserves | | 2,200 | | 1,996 | Accruals not currently deductible, and other | | 608 | | 532 | Investments in foreign subsidiaries | | 173 | | 159 | Loss reserve discount | | 272 | | 526 | Loan loss and other reserves | | - | | 34 | Unearned premium reserve reduction | | 504 | | 566 | Fixed assets and intangible assets | | 531 | | 442 | Other | | 962 | | 731 | Employee benefits | | 604 | | 601 | Total deferred tax assets | | 19,684 | | 19,651 | Deferred tax liabilities: | | | | | Deferred policy acquisition costs | | (2,342) | | (2,313) | Unrealized gains related to available for sale debt securities | | (490) | | (2,151) | Loan loss and other reserves | | (20) | | - | Total deferred tax liabilities | | (2,852) | | (4,464) | Net deferred tax assets before valuation allowance | | 16,832 | | 15,187 | Valuation allowance | | (1,780) | | (1,374) | Net deferred tax assets (liabilities) | $ | 15,052 | $ | 13,813 |
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Schedule of consolidated income tax group credits carryforwards |
December 31, 2018 | | | | Tax | | Expiration | (in millions) | | Gross | | Effected | | Periods | Net operating loss carryforwards | $ | 36,268 | $ | 7,616 | | 2028 - 2037 | Capital loss carryforwards | | 82 | | 17 | | 2023 | Foreign tax credit carryforwards | | | | 3,516 | | 2019 - 2023 | Other carryforwards | | | | 814 | | Various | Total AIG U.S. consolidated income tax group tax losses and credits | | | | | | | carryforwards on a tax return basis | | | | 11,963 | | | Unrecognized tax benefit | | | | (1,733) | | | Total AIG U.S. consolidated income tax group tax losses and credits | | | | | | | carryforwards on a U.S. GAAP basis* | | | $ | 10,230 | | |
* Includes other carryforwards, i.e. general business credits of $30 million and refundable Alternative Minimum Tax Credits of $39 million on a U.S. GAAP basis.
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Schedule of consolidated income tax group tax losses carryforwards |
December 31, 2018 | | | | Tax | | Expiration | (in millions) | | Gross | | Effected | | Periods | Net operating loss carryforwards | $ | 36,268 | $ | 7,616 | | 2028 - 2037 | Capital loss carryforwards | | 82 | | 17 | | 2023 | Foreign tax credit carryforwards | | | | 3,516 | | 2019 - 2023 | Other carryforwards | | | | 814 | | Various | Total AIG U.S. consolidated income tax group tax losses and credits | | | | | | | carryforwards on a tax return basis | | | | 11,963 | | | Unrecognized tax benefit | | | | (1,733) | | | Total AIG U.S. consolidated income tax group tax losses and credits | | | | | | | carryforwards on a U.S. GAAP basis* | | | $ | 10,230 | | |
* Includes other carryforwards, i.e. general business credits of $30 million and refundable Alternative Minimum Tax Credits of $39 million on a U.S. GAAP basis.
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Schedule of net deferred tax assets (liabilities) |
December 31, | | | | | | (in millions) | | | | 2018 | | 2017 | Net U.S. consolidated return group deferred tax assets | | | $ | 15,479 | $ | 15,603 | Net deferred tax assets (liabilities) in accumulated other comprehensive income | | | | (510) | | (2,070) | Valuation allowance | | | | (405) | | (86) | Subtotal | | | | 14,564 | | 13,447 | Net foreign, state and local deferred tax assets | | | | 2,031 | | 1,874 | Valuation allowance | | | | (1,374) | | (1,288) | Subtotal | | | | 657 | | 586 | Subtotal - Net U.S., foreign, state and local deferred tax assets | | | | 15,221 | | 14,033 | Net foreign, state and local deferred tax liabilities | | | | (169) | | (220) | Total AIG net deferred tax assets (liabilities) | | | $ | 15,052 | $ | 13,813 |
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Schedule of reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits |
Years Ended December 31, | | | | | | | (in millions) | | 2018 | | 2017 | | 2016 | Gross unrecognized tax benefits, beginning of year | $ | 4,707 | $ | 4,530 | $ | 4,331 | Increases in tax positions for prior years | | 14 | | 210 | | 235 | Decreases in tax positions for prior years | | (6) | | (33) | | (39) | Increases in tax positions for current year | | - | | - | | 3 | Lapse in statute of limitations | | - | | - | | - | Settlements | | (6) | | - | | - | Activity of discontinued operations | | - | | - | | - | Gross unrecognized tax benefits, end of year | $ | 4,709 | $ | 4,707 | $ | 4,530 |
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Schedule of tax years that remain subject to examination by major tax jurisdictions |
At December 31, 2018 | Open Tax Years | Major Tax Jurisdiction | | United States | 2000-2017 | Australia | 2014-2017 | France | 2017-2018 | Japan | 2012-2017 | Korea | 2013-2017 | Singapore | 2014-2017 | United Kingdom | 2017-2018 |
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