TOTAL EQUITY AND EARNINGS (LOSS) PER SHARE (Tables)

6 Months Ended

Jun. 30, 2012

TOTAL EQUITY AND EARNINGS (LOSS) PER SHARE

Rollforward of common stock outstanding

	Preferred Stock
													Common Stock Issued		Treasury Stock			Outstanding Shares
	AIG Series E			AIG Series F			AIG Series C			AIG Series G
Six Months Ended June 30, 2012
Shares, beginning of year		-			-			-			-			1,906,568,099		(9,746,617	)		1,896,821,482
Issuances		-			-			-			-			44,567		625,815			670,382
Shares repurchased		-			-			-			-			-		(169,022,046	)		(169,022,046	)
Shares, end of period		-			-			-			-			1,906,612,666		(178,142,848	)		1,728,469,818
Six Months Ended June 30, 2011
Shares, beginning of year		400,000			300,000			100,000			-			147,124,067		(6,660,908	)		140,463,159
Issuances		-			-			-			20,000			100,066,640		-			100,066,640
Settlement of equity unit stock purchase contracts		-			-			-			-			2,404,278		-			2,404,278
Shares exchanged*		(400,000	)		(300,000	)		(100,000	)		-			1,655,037,962		(11,678	)		1,655,026,284
Shares cancelled		-			-			-			(20,000	)		-		-			-
Shares, end of period		-			-			-			-			1,904,632,947		(6,672,586	)		1,897,960,361

*

See Note 1 to the Consolidated Financial Statements in the 2011 Annual Report for further discussion of shares exchanged in connection with the Recapitalization.

Accumulated Other Comprehensive Income

(in millions)	Unrealized Appreciation (Depreciation) of Fixed Maturity Investments on Which Other-Than- Temporary Credit Impairments Were Taken			Unrealized Appreciation (Depreciation) of All Other Investments			Foreign Currency Translation Adjustments			Net Derivative Gains (Losses) Arising from Cash Flow Hedging Activities			Change in Retirement Plan Liabilities Adjustment			Total
Balance, December 31, 2011, net of tax	$	(736	)	$	7,891		$	(1,028	)	$	(17	)	$	(957	)	$	5,153
Change in unrealized appreciation of investments		1,069			3,722			-			-			-			4,791
Change in deferred acquisition costs adjustment and other		(7	)		(491	)		-			-			-			(498	)
Change in future policy benefits		(31	)		(36	)		-			-			-			(67	)
Change in foreign currency translation adjustments		-			-			(425	)		-			-			(425	)
Change in net derivative gains arising from cash flow hedging activities		-			-			-			8			-			8
Net actuarial gain		-			-			-			-			70			70
Prior service credit		-			-			-			-			(24	)		(24	)
Deferred tax asset (liability)		(401	)		(909	)		89			15			(14	)		(1,220	)
Total other comprehensive income (loss)		630			2,286			(336	)		23			32			2,635
Noncontrolling interests		-			2			(5	)		-			-			(3	)
Balance, June 30, 2012, net of tax	$	(106	)	$	10,175		$	(1,359	)	$	6		$	(925	)	$	7,791
Balance, December 31, 2010, net of tax	$	(659	)	$	8,888		$	298		$	(34	)	$	(869	)	$	7,624
Cumulative effect of change in accounting principle		-			283			(364	)		-			-			(81	)
Change in unrealized appreciation of investments		559			2,267			-			-			-			2,826
Change in deferred acquisition costs adjustment and other		(75	)		(613	)		-			-			-			(688	)
Change in foreign currency translation adjustments		-			-			957			-			-			957
Change in net derivative gains arising from cash flow hedging activities		-			-			-			31			-			31
Net actuarial gain		-			-			-			-			11			11
Prior service credit		-			-			-			-			(1	)		(1	)
Change attributable to divestitures and deconsolidations		53			(1,129	)		(1,506	)		-			248			(2,334	)
Deferred tax asset (liability)		(248	)		529			320			40			(109	)		532
Total other comprehensive income (loss)		289			1,054			(229	)		71			149			1,334
Acquisition of noncontrolling interest		-			43			62			-			(17	)		88
Noncontrolling interests		3			(81	)		31			-			-			(47	)
Balance, June 30, 2011, net of tax	$	(373	)	$	10,349		$	(264	)	$	37		$	(737	)	$	9,012

Other comprehensive income reclassification adjustments

(in millions)	Unrealized Appreciation (Depreciation) of Fixed Maturity Investments on Which Other-Than- Temporary Credit Impairments Were Taken			Unrealized Appreciation (Depreciation) of All Other Investments			Foreign Currency Translation Adjustments			Net Derivative Gains (Losses) Arising from Cash Flow Hedging Activities			Change in Retirement Plan Liabilities Adjustment			Total
Three Months Ended June 30, 2012
Unrealized change arising during period	$	26		$	2,149		$	(512	)	$	-		$	4		$	1,667
Less: Reclassification adjustments included in net income		(2	)		317			-			(4	)		(13	)		298
Total other comprehensive income (loss), before income tax expense (benefit)		28			1,832			(512	)		4			17			1,369
Less: Income tax expense (benefit)		11			527			(85	)		3			3			459
Total other comprehensive income (loss), net of income tax expense (benefit)	$	17		$	1,305		$	(427	)	$	1		$	14		$	910
Three Months Ended June 30, 2011
Unrealized change arising during period	$	(76	)	$	2,407		$	308		$	(3	)	$	(19	)	$	2,617
Less: Reclassification adjustments included in net income		(1	)		613			-			(16	)		(27	)		569
Total other comprehensive income (loss), before income tax expense (benefit)		(75	)		1,794			308			13			8			2,048
Less: Income tax expense (benefit)		32			(67	)		20			(45	)		(6	)		(66	)
Total other comprehensive income (loss), net of income tax expense (benefit)	$	(107	)	$	1,861		$	288		$	58		$	14		$	2,114
Six Months Ended June 30, 2012
Unrealized change arising during period	$	1,027		$	4,472		$	(425	)	$	(1	)	$	4		$	5,077
Less: Reclassification adjustments included in net income		(4	)		1,277			-			(9	)		(42	)		1,222
Total other comprehensive income (loss), before income tax expense (benefit)		1,031			3,195			(425	)		8			46			3,855
Less: Income tax expense (benefit)		401			909			(89	)		(15	)		14			1,220
Total other comprehensive income (loss), net of income tax expense (benefit)	$	630		$	2,286		$	(336	)	$	23		$	32		$	2,635
Six Months Ended June 30, 2011
Unrealized change arising during period	$	500		$	2,503		$	957		$	(3	)	$	(19	)	$	3,938
Less: Reclassification adjustments included in net income		(37	)		1,978			1,506			(34	)		(277	)		3,136
Total other comprehensive income (loss), before income tax expense (benefit)		537			525			(549	)		31			258			802
Less: Income tax expense (benefit)		248			(529	)		(320	)		(40	)		109			(532	)
Total other comprehensive income (loss), net of income tax expense (benefit)	$	289		$	1,054		$	(229	)	$	71		$	149		$	1,334

Rollforward of non-controlling interests

	Redeemable Noncontrolling interests									Non-redeemable Noncontrolling interests
(in millions)	Held by Department of Treasury			Other			Total			Held by FRBNY			Other			Total
Six Months Ended June 30, 2012
Balance, beginning of year	$	8,427		$	96		$	8,523		$	-		$	855		$	855
Repayment to Department of the Treasury		(8,635	)		-			(8,635	)		-			-			-
Net contributions (distributions)		-			23			23			-			(54	)		(54	)
Consolidation (deconsolidation)		-			(4	)		(4	)		-			-			-
Comprehensive income:
Net income (loss)		208			(3	)		205			-			43			43
Accumulated other comprehensive loss, net of tax:
Unrealized gains on investments		-			-			-			-			2			2
Foreign currency translation adjustments		-			-			-			-			(5	)		(5	)
Total accumulated other comprehensive loss, net of tax		-			-			-			-			(3	)		(3	)
Total comprehensive income (loss)		208			(3	)		205			-			40			40
Other		-			-			-			-			(21	)		(21	)
Balance, end of period	$	-		$	112		$	112		$	-		$	820		$	820
Six Months Ended June 30, 2011
Balance, beginning of year	$	-		$	434		$	434		$	26,358		$	1,562		$	27,920
Repurchase of SPV preferred interests in connection with Recapitalization		-			-			-			(26,432	)		-			(26,432	)
Exchange of consideration for preferred stock in connection with Recapitalization		20,292			-			20,292			-			-			-
Repayment to Department of the Treasury		(9,146	)		-			(9,146	)		-			-			-
Net distributions		-			(21	)		(21	)		-			(74	)		(74	)
Deconsolidation		-			(308	)		(308	)		-			(6	)		(6	)
Acquisition of noncontrolling interest		-			-			-			-			(468	)		(468	)
Comprehensive income:
Net income		319			6			325			74			22			96
Accumulated other comprehensive income (loss), net of tax:
Unrealized losses on investments		-			-			-			-			(78	)		(78	)
Foreign currency translation adjustments		-			-			-			-			31			31
Total accumulated other comprehensive income (loss), net of tax		-			-			-			-			(47	)		(47	)
Total comprehensive income (loss)		319			6			325			74			(25	)		49
Other		-			-			-			-			(41	)		(41	)
Balance, end of period	$	11,465		$	111		$	11,576		$	-		$	948		$	948

Computation of basic and diluted EPS

	Three Months Ended June 30,						Six Months Ended June 30,
(dollars in millions, except per share data)	2012			2011			2012		2011
Numerator for EPS:
Income from continuing operations	$	2,344		$	2,090		$	5,780	$	1,006
Net income from continuing operations attributable to noncontrolling interests:
Nonvoting, callable, junior and senior preferred interests		-			141			208		393
Other		7			64			40		9
Total net income from continuing operations attributable to noncontrolling interests		7			205			248		402
Net income attributable to AIG from continuing operations		2,337			1,885			5,532		604
Income (loss) from discontinued operations	$	(5	)	$	(37	)	$	8	$	2,548
Net income from discontinued operations attributable to noncontrolling interests		-			12			-		19
Net income (loss) attributable to AIG from discontinued operations, applicable to common stock for EPS		(5	)		(49	)		8		2,529
Deemed dividends to AIG Series E and F Preferred Stock		-			-			-		(812	)
Net income (loss) attributable to AIG common shareholders from continuing operations, applicable to common stock for EPS	$	2,337		$	1,885		$	5,532	$	(208	)

	Three Months Ended June 30,					Six Months Ended June 30,
(dollars in millions, except per share data)	2012		2011			2012		2011
Denominator for EPS:
Weighted average shares outstanding – basic		1,756,689,067		1,836,713,069			1,816,331,019		1,698,001,301
Dilutive shares		25,408		58,444			27,606		-
Weighted average shares outstanding – diluted*		1,756,714,475		1,836,771,513			1,816,358,625		1,698,001,301
EPS attributable to AIG common shareholders:
Basic:
Income (loss) from continuing operations	$	1.33	$	1.03		$	3.05	$	(0.12	)
Income (loss) from discontinued operations	$	-	$	(0.03	)	$	-	$	1.49
Diluted:
Income (loss) from continuing operations	$	1.33	$	1.03		$	3.05	$	(0.12	)
Income (loss) from discontinued operations	$	-	$	(0.03	)	$	-	$	1.49

*

Dilutive shares are calculated using the treasury stock method and include dilutive shares from share-based employee compensation plans, the warrants issued to the Department of the Treasury in 2009 and the warrants issued to common shareholders (other than the Department of the Treasury) in January 2011. The number of shares and warrants excluded from diluted shares outstanding were 78 million for both the three and six months ended June 30, 2012, and 80 million and 72 million for the three and six months ended June 30, 2011, respectively, because the effect of including those shares and warrants in the calculation would have been anti-dilutive. Included in the anti-dilutive total were 75 million shares for both the three and six months ended June 30, 2012 and 75 million and 67 million shares for the three and six months ended June 30, 2011, respectively, representing the weighted average number of warrants to purchase AIG Common Stock that were issued to common shareholders.