Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Schedule of income (loss) from continuing operations before income tax expense (benefit) by U.S. and foreign location

The following table presents income (loss) from continuing operations before income tax expense (benefit) by U.S. and foreign location in which such pre-tax income (loss) was earned or incurred:


Years Ended December 31,
(in millions)		2022		2021		2020
U.S.	$	12,432	$	9,838	$	(8,396)
Foreign		1,850		2,261		1,103
Total	$	14,282	$	12,099	$	(7,293)

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

The following table presents the income tax expense (benefit) attributable to pre-tax income (loss) from continuing operations:


Years Ended December 31,
(in millions)		2022		2021		2020
Foreign and U.S. components of actual income tax expense (benefit):
U.S.:
Current	$	246	$	(216)	$	(57)
Deferred		2,348		2,190		(1,676)
Foreign:
Current		271		171		274
Deferred		141		31		(1)
Total	$	3,006	$	2,176	$	(1,460)

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

Our actual income tax expense (benefit) differs from the statutory U.S. federal amount computed by applying the federal income tax rate due to the following:


Years Ended December 31,	2022						2021						2020
(dollars in millions)	Pre-Tax Income (Loss)		Tax Expense (Benefit)		Percent of Pre-Tax Income (Loss)		Pre-Tax Income (Loss)		Tax Expense (Benefit)		Percent of Pre-Tax Income (Loss)		Pre-Tax Income (Loss)		Tax Expense (Benefit)		Percent of Pre-Tax Income (Loss)
U.S. federal income tax at statutory rate	$	14,281	$	2,999	21.0	%	$	12,099	$	2,540	21.0	%	$	(7,288)	$	(1,531)	21.0	%
Adjustments:
Tax exempt interest			(18)		(0.1)				(18)		(0.1)				(19)		0.3
Uncertain tax positions(a)(b)			(17)		(0.1)				(9)		(0.1)				165		(2.3)
Reclassifications from AOCI			(81)		(0.6)				(109)		(0.9)				(101)		1.4
Dispositions of subsidiaries(c)			—		—				11		0.1				180		(2.5)
Non-controlling interest			(31)		(0.2)				(97)		(0.8)				(12)		0.2
Non-deductible transfer pricing charges			12		0.1				16		0.1				11		(0.2)
Dividends received deduction			(36)		(0.3)				(37)		(0.3)				(39)		0.5
Effect of foreign operations(d)			149		1.0				134		1.1				76		(1.0)
Share-based compensation payments excess tax effect			(19)		(0.1)				16		0.1				35		(0.5)
State income taxes			33		0.2				37		0.3				15		(0.2)
Expiration of tax attribute carryforwards			—		—				16		0.1				221		(3.0)
Tax audit resolution			—		—				(935)		(7.6)				(379)		5.2
Other(b)			40		0.3				(107)		(0.9)				(16)		0.2
Effect of discontinued operations			—		—				—		—				—		—
Valuation allowance:
Continuing operations			(25)		(0.2)				718		5.9				(65)		0.9
Consolidated total amounts	14,281		3,006		21.0		12,099		2,176		18.0		(7,288)		(1,459)		20.0
Amounts attributable to discontinued operations	(1)		—		—		—		—		—		5		1		20.0
Amounts attributable to continuing operations	$	14,282	$	3,006	21.0	%	$	12,099	$	2,176	18.0	%	$	(7,293)	$	(1,460)	20.0	%

(a)Refer to the Accounting for Uncertainty in Income Taxes section below for further discussion on 2021 and 2020 tax audit resolution activity.

(b)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.

(d)Effect of foreign operations is primarily related to income and losses in our foreign operations taxed at statutory tax rates different than 21 percent, and foreign income subject to U.S. taxation.

Schedule of components of the net deferred tax asset

The following table presents the components of the net deferred tax assets (liabilities):


December 31,
(in millions)		2022		2021
Deferred tax assets:
Losses and tax credit carryforwards	$	6,868	$	7,291
Basis differences on investments		2,652		2,944
Fortitude Re funds withheld embedded derivative		—		543
Life policy reserves		3,697		3,751
Accruals not currently deductible, and other		389		634

Loss reserve discount		352		455
Loan loss and other reserves		62		509
Unearned premium reserve reduction		294		283
Fixed assets and intangible assets		1,081		1,262
Unrealized losses related to available for sale debt securities		5,595		—
Other		498		247
Employee benefits		382		407
Total deferred tax assets		21,870		18,326
Deferred tax liabilities:
Investments in foreign subsidiaries		(41)		(15)
Deferred policy acquisition costs		(1,868)		(2,054)
Unrealized gains related to available for sale debt securities		—		(2,791)
Fortitude Re funds withheld embedded derivative		(862)		—
Other		—		—
Total deferred tax liabilities		(2,771)		(4,860)
Net deferred tax assets before valuation allowance		19,099		13,466
Valuation allowance		(4,250)		(1,987)
Net deferred tax assets (liabilities)	$	14,849	$	11,479

Schedule of consolidated income tax group credits carryforwards

The following table presents AIG's U.S. consolidated federal income tax group tax losses and credits carryforwards.


December 31, 2022			Tax		Carryforward Period Ending Tax Year(b)												Unlimited Carryforward Period and Carryforward Periods(b)
(in millions)	Gross		Effected		2023		2024		2025		2026		2027		2028		2029 - After
Net operating loss carryforwards	$	24,804	$	5,209	$	—	$	—	$	—	$	—	$	—	$	3,253	$	1,956
Capital loss carryforwards	$	—	—		—		—		—		—		—		—		—
Foreign tax credit carryforwards			22		22		—		—		—		—		—		—
Other carryforwards			—		—		—		—		—		—		—		—
Total AIG U.S. consolidated federal income tax group tax losses and credits carryforwards on a U.S. GAAP basis(a)			$	5,231	$	22	$	—	$	—	$	—	$	—	$	3,253	$	1,956

(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)

The following table presents the net deferred tax assets (liabilities) at December 31, 2022 and 2021 on a U.S. GAAP basis:


December 31,
(in millions)		2022		2021
Net U.S. deferred tax assets	$	12,094	$	14,656
Net deferred tax assets (liabilities) in AOCI		4,958		(2,772)
Valuation allowance		(3,128)		(859)
Subtotal		13,924		11,025
Net foreign, state and local deferred tax assets		2,342		1,817
Valuation allowance		(1,122)		(1,128)
Subtotal		1,220		689
Subtotal - Net U.S., foreign, state and local deferred tax assets		15,144		11,714
Net foreign, state and local deferred tax liabilities		(295)		(235)
Total AIG net deferred tax assets (liabilities)	$	14,849	$	11,479

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

The following table presents a reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits, excluding interest and penalties:


Years Ended December 31,
(in millions)		2022		2021		2020
Gross unrecognized tax benefits, beginning of year	$	1,157	$	2,343	$	4,762
Increases in tax positions for prior years		29		22		45
Decreases in tax positions for prior years		(33)		(1,233)		(131)
Increases in tax positions for current year		59		37		13
Lapse in statute of limitations		(21)		—		—
Settlements		—		(12)		(2,346)
Gross unrecognized tax benefits, end of year	$	1,191	$	1,157	$	2,343

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

Listed below are the tax years that remain subject to examination by major tax jurisdictions:


At December 31, 2022			Open Tax Years
Major Tax Jurisdiction
United States			2007-2021
Australia			2018-2021
Canada			2018-2021
France			2019-2021
Japan			2016-2021
Korea			2014-2021
Singapore			2018-2021
United Kingdom			2021-2021