Long-Term Debt Maturities

Entity Registrant Name AMERICAN INTERNATIONAL GROUP INC
CIK 0000005272
Accession number 0001047469-14-001096
Link to XBRL instance http://www.sec.gov/Archives/edgar/data/5272/000104746914001096/aig-20131231.xml
Fiscal year end --12-31
Fiscal year focus 2013
Fiscal period focus FY
Current balance sheet date 2013-12-31
Current year-to-date income statement start date 2013-01-01

Commentary Filer provides an unclassified balance sheet. For some reason the total maturities do not foot to total long term debt of the amount of debt of consolidated investments.

Level 1 (Note level) Text Block concept us-gaap:DebtDisclosureTextBlock

14. DEBT

 

AIG's long-term debt is denominated in various currencies, with both fixed and variable interest rates. Long-term debt is carried at the principal amount borrowed, including unamortized discounts, hedge accounting valuation adjustments and fair value adjustments, where applicable. The interest rates presented in the following table reflect the range of contractual rates in effect at year end, including fixed and variable rate issuances.

The following table lists our total debt outstanding at December 31, 2013 and 2012. The interest rates presented in the following table are the range of contractual rates in effect at year end, including fixed and variable-rates:

 

 
   
   
 


   
 
   
At December 31, 2013
(in millions)
  Range of
Interest Rate(s)

  Maturity
Date(s)

 

Balance at
December 31,
2013

  Balance at
December 31,
2012

 
   

Debt issued or guaranteed by AIG:

           
 
 
     

AIG General borrowings:

           
 
 
     

Notes and bonds payable

  1.24% – 8.13%     2015 – 2097  
$
14,062
$ 14,084  

Subordinated debt

  2.38%     2015  
 
250
  250  

Junior subordinated debt

  4.88% – 8.63%     2037 – 2058  
 
5,533
  9,416  

Loans and mortgages payable

  9.00%     2015  
 
1
  79  

AIGLH notes and bonds payable

  6.63% – 7.50%     2025 – 2029  
 
299
  298  

AIGLH junior subordinated debt(a)

  7.57% – 8.50%     2030 – 2046  
 
1,054
  1,339
   

Total AIG general borrowings

       
 
21,199
  25,466
   

AIG/DIB borrowings supported by assets:(b)

           
 
 
     

MIP notes payable

  2.28% – 8.59%     2014 – 2018  
 
7,963
  9,296  

Series AIGFP matched notes and bonds payable

  0.01% – 8.25%     2014 – 2047  
 
3,219
  3,544  

GIAs, at fair value

  3.00% – 9.80%     2014 – 2047  
 
5,530
  6,501  

Notes and bonds payable, at fair value

  0.18% – 10.00%     2014 – 2047  
 
1,217
  1,554
   

Total AIG/DIB borrowings supported by assets

       
 
17,929
  20,895
   

Total debt issued or guaranteed by AIG

       
 
39,128
  46,361
   

Debt not guaranteed by AIG:

           
 
 
   
   

Other subsidiaries notes, bonds, loans and mortgages payable

  0.20% – 8.29%     2014 – 2060  
 
656
  325
   

Debt of consolidated investments(c)

  0.03% – 10.00%     2014 – 2052  
 
1,909
  1,814
   

Total debt not guaranteed by AIG

       
 
2,565
  2,139
   

Total long term debt(d)

       
$
41,693
$ 48,500
   

(a)  On July 11, 2013. AIGLH junior subordinated debentures with the same terms as the trust preferred securities were distributed to holders of the trust preferred securities, and the trust preferred securities were cancelled.

(b)  AIG Parent guarantees all DIB debt, except for MIP notes payable and Series AIGFP matched notes and bonds payable, which are direct obligations to AIG Parent.

(c)  At December 31, 2013, includes debt of consolidated investments held through AIG Global Real Estate Investment Corp., AIG Credit Corp., AIG Life and Retirement and AIG Property Casualty U.S. of $1.5 billion, $111 million, $201 million and $58 million, respectively. At December 31, 2012, includes debt of consolidated investments held through AIG Global Real Estate Investment Corp., AIG Credit Corp. and AIG Life and Retirement of $1.5 billion, $176 million and $133 million, respectively.

(d)  Excludes $21.4 billion and $24.3 billion related to ILFC as it is classified as a held-for-sale business at December 31, 2013 and 2012, respectively.

The following table presents maturities of long-term debt (including unamortized original issue discount, hedge accounting valuation adjustments and fair value adjustments, when applicable), excluding $1.9 billion in borrowings of debt of consolidated investments:

 

   
 
   
  Year Ending  
December 31, 2013
(in millions)
   
 
  Total
  2014
  2015
  2016
  2017
  2018
  Thereafter
 
   

General borrowings:

                                           

Notes and bonds payable

  $ 14,062   $   $ 999   $ 1,781   $ 1,374   $ 2,494   $ 7,414  

Subordinated debt

    250         250                  

Junior subordinated debt

    5,533                         5,533  

Loans and mortgages payable

    1         1                  

AIGLH notes and bonds payable

    299                         299  

AIGLH junior subordinated debt

    1,054                         1,054
   

AIG general borrowings

  $ 21,199   $   $ 1,250   $ 1,781   $ 1,374   $ 2,494   $ 14,300
   

AIG/DIB borrowings supported by assets:

                                           

MIP notes payable

    7,963     1,575     900     1,215     3,866     407      

Series AIGFP matched notes and
bonds payable

    3,219     1,000             10     1,983     226  

GIAs, at fair value

    5,530     632     597     311     249     655     3,086  

Notes and bonds payable, at fair value

    1,217     116     223     220     141     164     353
   

AIG/DIB borrowings supported by assets

    17,929     3,323     1,720     1,746     4,266     3,209     3,665
   

Other subsidiaries notes, bonds, loans and mortgages payable

    656     7     44     3     5     3     594
   

Total

  $ 39,784   $ 3,330   $ 3,014   $ 3,530   $ 5,645   $ 5,706   $ 18,559
   

Uncollateralized and collateralized notes, bonds, loans and mortgages payable consisted of the following:

 

   
At December 31, 2013
(in millions)
  Uncollateralized
Notes/Bonds/Loans
Payable

  Collateralized
Loans and
Mortgages Payable

  Total
 
   

AIG general borrowings

  $ 1   $   $ 1  

Other subsidiaries notes, bonds, loans and mortgages payable*

    83     573     656
   

Total

  $ 84   $ 573   $ 657
   

*     AIG does not guarantee any of these borrowings.

 

Junior Subordinated Debt

 

During 2007 and 2008, we issued an aggregate of $12.5 billion of junior subordinated debentures denominated in U.S. dollars, British pounds and euros in eight series of securities. In November 2011, we exchanged certain of our outstanding U.S. dollar, British pound and euro junior subordinated debentures for newly issued senior notes in equivalent currencies pursuant to an exchange offer. This exchange resulted in a pre-tax gain on extinguishment of debt of approximately $484 million, which is reflected in Loss on extinguishment of debt in the Consolidated Statements of Income and a deferred gain of $65 million, which is being amortized as a reduction to future interest expense.

In connection with the issuance of the eight series of junior subordinated debentures, we had entered into replacement capital covenants (the Original RCCs) for the benefit of the holders of "covered debt" (a designated series of our notes). The Original RCCs provided that we would not repay, redeem, or purchase the applicable series of junior subordinated debentures on or before a specified date, unless we issued certain replacement capital securities. In August 2012, we issued an aggregate of $250 million of 2.375% Subordinated Notes due 2015 (the Subordinated Notes), which upon their issuance became the "covered debt" under the Original RCCs. The holders of the newly issued Subordinated Notes, as the holders of the "covered debt" under the Original RCCs, consented to amendments to each of those Original RCCs that deleted all of the covenants that restricted our ability to repay, redeem or purchase the applicable series of the junior subordinated debentures.

We also entered into new replacement capital covenants (the New RCCs) for the initial benefit of the holders of the Subordinated Notes, in connection with our 5.75% Series A-2 Junior Subordinated Debentures and our 4.875% Series A-3 Junior Subordinated Debentures. We covenanted in each New RCC that, subject to certain exceptions, we would not repay, redeem or purchase, and that none of our subsidiaries would purchase, the applicable series of junior subordinated debentures prior to the scheduled termination date of that New RCC, unless since the date 360 days prior to the date of that repayment, redemption or purchase, we have received a specified amount of net cash proceeds from the sale of common stock or certain other qualifying securities that have certain characteristics that are at least as equity-like as the applicable characteristics of the applicable series of junior subordinated debentures, or we or our subsidiaries have issued a specified amount of common stock in connection with the conversion or exchange of certain convertible or exchangeable securities. In the first quarter of 2013, our obligations under the new RCCs were effectively terminated because one of the termination provisions set forth in the new RCCs was triggered when it was determined that neither series of junior subordinated debentures received equity credit any longer for rating agency purposes.

In 2013, we redeemed $1.1 billion aggregate principal amount of our 7.70% Series A-5 Junior Subordinated Debentures and $750 million aggregate principal amount of our 6.45% Series A-4 Junior Subordinated Debentures, in each case for a redemption price of 100 percent of the principal amount, plus accrued and unpaid interest.

 

AIGLH Junior Subordinated Debentures (Formerly, Liabilities Connected To Trust Preferred Stock)

 

In connection with our acquisition of AIG Life Holdings, Inc. (AIGLH) in 2001, we entered into arrangements with AIGLH with respect to outstanding AIGLH capital securities. In 1996, AIGLH issued capital securities through a trust to institutional investors and funded the trust with AIGLH junior subordinated debentures issued to the trust with the same terms as the capital securities. AIG Parent guaranteed the debentures pursuant to a guarantee that is expressly subordinated to certain AIGLH senior debt securities. Under the AIG Parent guarantee, AIG Parent was not required to make any payments in respect of the debentures if such payment would be prohibited by the subordination provisions of the debentures. As a result, AIG Parent would never be required to make a payment under its guarantee of the debentures for so long as AIGLH was prohibited from making a payment on the debentures.

On July 11, 2013, the AIGLH junior subordinated debentures were distributed to holders of the capital securities, the capital securities were cancelled and the trusts were dissolved. At December 31, 2013, the junior subordinated debentures outstanding consisted of $300 million of 8.5 percent junior subordinated debentures due July 2030, $500 million of 8.125 percent junior subordinated debentures due March 2046 and $500 million of 7.57 percent junior subordinated debentures due December 2045, each guaranteed by AIG Parent as described above.

 

Credit Facilities

 

The four-year syndicated credit facility that we entered into on October 5, 2012 (the Four-Year Facility) provides for $4.0 billion of unsecured revolving loans, which includes a $2.0 billion letter of credit sublimit. As of December 31, 2013, a total of approximately $3.9 billion remains available under the Four-Year Facility, of which approximately $1.9 billion remains available for letters of credit. We expect that we may draw down on the Four-Year Facility from time to time, and may use the proceeds for general corporate purposes. The Four Year Facility also provides for the issuance of letters of credit. The Four-Year Facility is summarized in the following table.

 

 
At December 31, 2013
(in millions)
  Size
  Available
Amount

  Expiration
  Effective
Date

 
   

Four-Year Syndicated Credit Facility

  $ 4,000   $ 3,947   October 2016   10/5/2012
 
Level 4 (Note level) Text Block concept - Maturities of Long Term Debt us-gaap:ScheduleOfMaturitiesOfLongTermDebtTableTextBlock

 

 

   
 
   
  Year Ending  
December 31, 2013
(in millions)
   
 
  Total
  2014
  2015
  2016
  2017
  2018
  Thereafter
 
   

General borrowings:

                                           

Notes and bonds payable

  $ 14,062   $   $ 999   $ 1,781   $ 1,374   $ 2,494   $ 7,414  

Subordinated debt

    250         250                  

Junior subordinated debt

    5,533                         5,533  

Loans and mortgages payable

    1         1                  

AIGLH notes and bonds payable

    299                         299  

AIGLH junior subordinated debt

    1,054                         1,054
   

AIG general borrowings

  $ 21,199   $   $ 1,250   $ 1,781   $ 1,374   $ 2,494   $ 14,300
   

AIG/DIB borrowings supported by assets:

                                           

MIP notes payable

    7,963     1,575     900     1,215     3,866     407      

Series AIGFP matched notes and
bonds payable

    3,219     1,000             10     1,983     226  

GIAs, at fair value

    5,530     632     597     311     249     655     3,086  

Notes and bonds payable, at fair value

    1,217     116     223     220     141     164     353
   

AIG/DIB borrowings supported by assets

    17,929     3,323     1,720     1,746     4,266     3,209     3,665
   

Other subsidiaries notes, bonds, loans and mortgages payable

    656     7     44     3     5     3     594
   

Total

  $ 39,784   $ 3,330   $ 3,014   $ 3,530   $ 5,645   $ 5,706   $ 18,559
   
Level 4 (Note level) Text Block concept - Debt Instruments us-gaap:ScheduleOfDebtTableTextBlock

 

 

 
   
   
 


   
 
   
At December 31, 2013
(in millions)
  Range of
Interest Rate(s)

  Maturity
Date(s)

 

Balance at
December 31,
2013

  Balance at
December 31,
2012

 
   

Debt issued or guaranteed by AIG:

           
 
 
     

AIG General borrowings:

           
 
 
     

Notes and bonds payable

  1.24% – 8.13%     2015 – 2097  
$
14,062
$ 14,084  

Subordinated debt

  2.38%     2015  
 
250
  250  

Junior subordinated debt

  4.88% – 8.63%     2037 – 2058  
 
5,533
  9,416  

Loans and mortgages payable

  9.00%     2015  
 
1
  79  

AIGLH notes and bonds payable

  6.63% – 7.50%     2025 – 2029  
 
299
  298  

AIGLH junior subordinated debt(a)

  7.57% – 8.50%     2030 – 2046  
 
1,054
  1,339
   

Total AIG general borrowings

       
 
21,199
  25,466
   

AIG/DIB borrowings supported by assets:(b)

           
 
 
     

MIP notes payable

  2.28% – 8.59%     2014 – 2018  
 
7,963
  9,296  

Series AIGFP matched notes and bonds payable

  0.01% – 8.25%     2014 – 2047  
 
3,219
  3,544  

GIAs, at fair value

  3.00% – 9.80%     2014 – 2047  
 
5,530
  6,501  

Notes and bonds payable, at fair value

  0.18% – 10.00%     2014 – 2047  
 
1,217
  1,554
   

Total AIG/DIB borrowings supported by assets

       
 
17,929
  20,895
   

Total debt issued or guaranteed by AIG

       
 
39,128
  46,361
   

Debt not guaranteed by AIG:

           
 
 
   
   

Other subsidiaries notes, bonds, loans and mortgages payable

  0.20% – 8.29%     2014 – 2060  
 
656
  325
   

Debt of consolidated investments(c)

  0.03% – 10.00%     2014 – 2052  
 
1,909
  1,814
   

Total debt not guaranteed by AIG

       
 
2,565
  2,139
   

Total long term debt(d)

       
$
41,693
$ 48,500
   

(a)  On July 11, 2013. AIGLH junior subordinated debentures with the same terms as the trust preferred securities were distributed to holders of the trust preferred securities, and the trust preferred securities were cancelled.

(b)  AIG Parent guarantees all DIB debt, except for MIP notes payable and Series AIGFP matched notes and bonds payable, which are direct obligations to AIG Parent.

(c)  At December 31, 2013, includes debt of consolidated investments held through AIG Global Real Estate Investment Corp., AIG Credit Corp., AIG Life and Retirement and AIG Property Casualty U.S. of $1.5 billion, $111 million, $201 million and $58 million, respectively. At December 31, 2012, includes debt of consolidated investments held through AIG Global Real Estate Investment Corp., AIG Credit Corp. and AIG Life and Retirement of $1.5 billion, $176 million and $133 million, respectively.

(d)  Excludes $21.4 billion and $24.3 billion related to ILFC as it is classified as a held-for-sale business at December 31, 2013 and 2012, respectively.


Level 4 Details Key Concepts: Long-term Debt Maturities

Description Fact value US GAAP XBRL Concept
Year 1 (Current portion) 3,330,000,000 us-gaap:LongTermDebtMaturitiesRepaymentsOfPrincipalInNextTwelveMonths
Year 2 3,014,000,000 us-gaap:LongTermDebtMaturitiesRepaymentsOfPrincipalInYearTwo
Year 3 3,530,000,000 us-gaap:LongTermDebtMaturitiesRepaymentsOfPrincipalInYearThree
Year 4 5,645,000,000 us-gaap:LongTermDebtMaturitiesRepaymentsOfPrincipalInYearFour
Year 5 5,706,000,000 us-gaap:LongTermDebtMaturitiesRepaymentsOfPrincipalInYearFive
Thereafter 18,559,000,000 us-gaap:LongTermDebtMaturitiesRepaymentsOfPrincipalAfterYearFive
Total Long-term Debt 41,693,000,000 us-gaap:LongTermDebt
CHECK 1,909,000,000

*


(Classified balance sheet) Deferred tax assets (liabilities), net components current/noncurrent asset/liability

Description Fact value US GAAP XBRL Concept
Current portion 0
Noncurrent portion 0
Total Long-Term Debt 41,693,000,000 us-gaap:LongTermDebt
CHECK 0

*


*

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