Basis of Presentation and Significant Events (Tables)

9 Months Ended

Sep. 30, 2011

Basis of Presentation and Significant Events

Schedule of new line items in the statement of income

Due to changes in the relative composition of AIG's remaining continuing operations as a result of the substantial completion of AIG's asset disposition plan, AIG began presenting separately the following line items on its Consolidated Statement of Operations beginning in the first quarter of 2011:

Current line item:	Previously included in line item:
Policy fees(a)	Premiums and other considerations
Aircraft leasing revenues and Aircraft leasing expenses, respectively	Other income and Other expenses, respectively
Interest credited to policyholder account balances(b)	Policyholder benefits and claims incurred
Amortization of deferred acquisition costs	Policy acquisition and other insurance expenses

(a)

Represents fees recognized from universal life and investment-type products consisting of policy charges for the cost of insurance, policy administration charges, amortization of unearned revenue reserves and surrender charges.

(b)

Represents interest on account-value-based policyholder deposits consisting of amounts credited on non-equity-indexed account values, accretion to the host contract for equity indexed products, and net amortization of sales inducements.

Schedule of supplementary disclosure of cash flow information

Nine Months Ended September 30, (in millions)		2011			2010
Cash paid during the period for:
	Interest*	$	(7,952	)	$	(3,978	)
	Taxes	$	(643	)	$	(1,134	)
Non-cash financing/investing activities:
	Interest credited to policyholder contract deposits included in financing activities	$	3,602		$	6,768
	Debt assumed on consolidation of variable interest entities	$	-		$	2,591
	Debt assumed on acquisition	$	-		$	164

*

2011 includes payment of FRBNY Credit Facility accrued compounded interest of $4.7 billion, before the facility was terminated on January 14, 2011 in connection with the Recapitalization.