2014 Q2 Form 10-Q Financial Statement

#000000527214000010 Filed on August 04, 2014

View on sec.gov

Income Statement

Concept 2014 Q2 2013 Q2
Revenue $16.14B $18.43B
YoY Change -12.43% 6.28%
Cost Of Revenue $6.771B $8.090B
YoY Change -16.3%
Gross Profit $9.365B $10.34B
YoY Change -9.39%
Gross Profit Margin 58.04% 56.09%
Selling, General & Admin $2.213B $2.245B
YoY Change -1.43%
% of Gross Profit 23.63% 21.72%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $1.396B $1.353B
YoY Change 3.18% 0.74%
% of Gross Profit 14.91% 13.09%
Operating Expenses $2.213B $2.245B
YoY Change -1.43% -83.94%
Operating Profit $7.152B $8.091B
YoY Change -11.61%
Interest Expense $463.0M $535.0M
YoY Change -13.46% -194.36%
% of Operating Profit 6.47% 6.61%
Other Income/Expense, Net $1.470B $888.0M
YoY Change 65.54%
Pretax Income $4.480B $3.165B
YoY Change 41.55% 80.75%
Income Tax $1.474B $425.0M
% Of Pretax Income 32.9% 13.43%
Net Earnings $3.073B $2.731B
YoY Change 12.52% 17.11%
Net Earnings / Revenue 19.04% 14.82%
Basic Earnings Per Share $2.13 $1.85
Diluted Earnings Per Share $2.10 $1.84
COMMON SHARES
Basic Shares Outstanding 1.442B shares 1.477B shares
Diluted Shares Outstanding 1.465B shares 1.482B shares

Balance Sheet

Concept 2014 Q2 2013 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments
YoY Change
Cash & Equivalents
Short-Term Investments
Other Short-Term Assets
YoY Change
Inventory
Prepaid Expenses
Receivables
Other Receivables
Total Short-Term Assets
YoY Change
LONG-TERM ASSETS
Property, Plant & Equipment
YoY Change
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments $370.0B $358.2B
YoY Change 3.29% -5.09%
Other Assets $19.91B $52.13B
YoY Change -61.81% 168.07%
Total Long-Term Assets
YoY Change
TOTAL ASSETS
Total Short-Term Assets
Total Long-Term Assets
Total Assets $529.1B $537.4B
YoY Change -1.55% -3.23%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable
YoY Change
Accrued Expenses
YoY Change
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities
YoY Change
LONG-TERM LIABILITIES
Long-Term Debt $38.41B $42.61B
YoY Change -9.86% -42.33%
Other Long-Term Liabilities $32.03B $60.52B
YoY Change -47.08% 47.13%
Total Long-Term Liabilities $70.44B $103.1B
YoY Change -31.7% -10.34%
TOTAL LIABILITIES
Total Short-Term Liabilities
Total Long-Term Liabilities $70.44B $103.1B
Total Liabilities $420.5B $440.0B
YoY Change -4.42% -2.37%
SHAREHOLDERS EQUITY
Retained Earnings $27.29B
YoY Change
Common Stock $85.73B
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost) $16.37B
YoY Change
Treasury Stock Shares 478.1M shares
Shareholders Equity $108.2B $97.46B
YoY Change
Total Liabilities & Shareholders Equity $529.1B $537.4B
YoY Change -1.55% -3.23%

Cashflow Statement

Concept 2014 Q2 2013 Q2
OPERATING ACTIVITIES
Net Income $3.073B $2.731B
YoY Change 12.52% 17.11%
Depreciation, Depletion And Amortization $1.396B $1.353B
YoY Change 3.18% 0.74%
Cash From Operating Activities $963.0M $1.799B
YoY Change -46.47% 16.97%
INVESTING ACTIVITIES
Capital Expenditures
YoY Change
Acquisitions
YoY Change
Other Investing Activities -$121.0M $2.107B
YoY Change -105.74% 136.74%
Cash From Investing Activities -$121.0M $2.107B
YoY Change -105.74% 136.74%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -1.513B -3.337B
YoY Change -54.66% 34.07%
NET CHANGE
Cash From Operating Activities 963.0M 1.799B
Cash From Investing Activities -121.0M 2.107B
Cash From Financing Activities -1.513B -3.337B
Net Change In Cash -671.0M 569.0M
YoY Change -217.93% -1032.79%
FREE CASH FLOW
Cash From Operating Activities $963.0M $1.799B
Capital Expenditures
Free Cash Flow
YoY Change

Facts In Submission

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<div><p style='text-align:left;margin-top:18pt;margin-bottom:0pt;line-height:12pt;' ><font style='font-family:Arial;font-size:10.5pt;font-weight:bold;margin-left:0pt;color:#005984;' >Use of Estimates</font></p><p style='text-align:left;line-height:12pt;' ></p><p style='text-align:left;margin-top:12pt;margin-bottom:12pt;line-height:12pt;' ><font style='font-family:Arial;font-size:9.5pt;margin-left:0pt;' >The preparation of financial stateme</font><font style='font-family:Arial;font-size:9.5pt;' >nts in accordance with GAAP requires the application of accounting policies that often involve a significant degree of judgment. Accounting policies that we believe are most dependent on the application of estimates and assumptions are considered our criti</font><font style='font-family:Arial;font-size:9.5pt;' >cal accounting estimates and are related to the determination of:</font></p><ul><li style='list-style:disc;text-align:left;margin-top:0pt;margin-bottom:6pt;' ><font style='font-family:Arial;font-size:9.5pt;' >income tax assets and liabilities, including recoverability of our net deferred tax asset and the predictability of future tax operating profitability of the character necessary to realize t</font><font style='font-family:Arial;font-size:9.5pt;' >he net deferred tax asset;</font></li><li style='list-style:disc;text-align:left;margin-top:0pt;margin-bottom:6pt;' ><font style='font-family:Arial;font-size:9.5pt;' >liability for unpaid claims and claims adjustment expense;</font></li><li style='list-style:disc;text-align:left;margin-top:0pt;margin-bottom:6pt;' ><font style='font-family:Arial;font-size:9.5pt;' >reinsurance assets;</font></li><li style='list-style:disc;text-align:left;margin-top:0pt;margin-bottom:6pt;' ><font style='font-family:Arial;font-size:9.5pt;' >valuation of future policy benefit liabilities and timing and extent of loss recognition;</font></li><li style='list-style:disc;text-align:left;margin-top:0pt;margin-bottom:6pt;' ><font style='font-family:Arial;font-size:9.5pt;' >valuation of liabilities for guaranteed benefit features of </font><font style='font-family:Arial;font-size:9.5pt;' >variable annuity products;</font></li><li style='list-style:disc;text-align:left;margin-top:0pt;margin-bottom:6pt;' ><font style='font-family:Arial;font-size:9.5pt;' >estimated gross profits to value deferred acquisition costs for investment</font><font style='font-family:Arial;font-size:9.5pt;' >-oriented products;</font></li><li style='list-style:disc;text-align:left;margin-top:0pt;margin-bottom:6pt;' ><font style='font-family:Arial;font-size:9.5pt;' >impairment charges, including other</font><font style='font-family:Arial;font-size:9.5pt;' >-than</font><font style='font-family:Arial;font-size:9.5pt;' >-temporary impairments on available for sale securities, impairments on investments in life set</font><font style='font-family:Arial;font-size:9.5pt;' >tlements and goodwill impairment;</font></li><li style='list-style:disc;text-align:left;margin-top:0pt;margin-bottom:6pt;' ><font style='font-family:Arial;font-size:9.5pt;' >liability for legal contingencies; and</font></li><li style='list-style:disc;text-align:left;margin-top:0pt;margin-bottom:6pt;' ><font style='font-family:Arial;font-size:9.5pt;' >fair value measurements of certain financial assets and liabilities.</font></li></ul><p style='text-align:left;margin-top:12pt;margin-bottom:12pt;line-height:12pt;' ><font style='font-family:Arial;font-size:9.5pt;margin-left:0pt;' >These accounting estimates require the use of </font><font style='font-family:Arial;font-size:9.5pt;' >assumptions about matters, some of which are highly uncertain at the time of estimation. To the extent actual experience differs from the assumptions used, </font><font style='font-family:Arial;font-size:9.5pt;' >our</font><font style='font-family:Arial;font-size:9.5pt;' > consolidated financial condition, results of operations and cash flows could be materially affec</font><font style='font-family:Arial;font-size:9.5pt;' >ted</font><font style='font-family:Arial;font-size:9.5pt;' >.</font></p></div>
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us-gaap Weighted Average Number Of Diluted Shares Outstanding
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us-gaap Income Loss From Continuing Operations Per Basic Share
IncomeLossFromContinuingOperationsPerBasicShare
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us-gaap Income Loss From Discontinued Operations Net Of Tax Per Basic Share
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us-gaap Income Loss From Discontinued Operations Net Of Tax Per Basic Share
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us-gaap Earnings Per Share Basic
EarningsPerShareBasic
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us-gaap Earnings Per Share Basic
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CY2013Q2 us-gaap Income Loss From Continuing Operations Per Diluted Share
IncomeLossFromContinuingOperationsPerDilutedShare
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us-gaap Income Loss From Continuing Operations Per Diluted Share
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us-gaap Income Loss From Continuing Operations Per Diluted Share
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us-gaap Earnings Per Share Diluted
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CY2013Q2 aig Other Than Temporary Impairments Due To Change In Intent
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CY2013Q2 aig Other Than Temporary Impairments Due To Foreign Currency Fluctuations
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CY2013Q2 aig Other Than Temporary Impairments Due To Issuer Specific Credit Events
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CY2013Q2 aig Other Than Temporary Impairments Due To Change In Projected Cash Flows
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CY2014Q2 aig Impairments On Life Settlement Contracts
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CY2013Q2 us-gaap Available For Sale Securities Change In Net Unrealized Holding Gain Loss
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us-gaap Net Investment Income
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us-gaap Income Loss From Subsidiaries Before Tax
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us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
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us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
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CY2014Q2 us-gaap Revenues
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us-gaap Revenues
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101000000 USD
CY2013Q2 aig Realized Capital Gains Losses Net Impairment Charges And Other
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us-gaap Common Stock Dividends Per Share Declared
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CY2013Q2 us-gaap Translation Adjustment For Net Investment Hedge Increase Decrease Gross Of Tax
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aig Available For Sale Securities Sold Fair Value
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CY2013Q2 aig Available For Sale Securities Sold Fair Value
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us-gaap Allowance For Loan And Lease Losses Write Offs
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CY2014Q2 us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
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aig Noncontrolling Interest Increase From Deconsolidation
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CY2014Q2 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Gain Loss Included In Earnings1
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CY2014Q2 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Gain Loss Included In Other Comprehensive Income Loss
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CY2014Q2 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Purchases Sales Issuances Settlements
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CY2014Q1 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Value
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us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Gain Loss Included In Earnings1
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us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Purchases Sales Issuances Settlements
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us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Transfers Into Level3
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1810000000 USD
us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Transfers Out Of Level3
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us-gaap Income Loss From Continuing Operations Attributable To Noncontrolling Entity
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us-gaap Income Loss From Continuing Operations Attributable To Noncontrolling Entity
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CY2013Q2 us-gaap Income Loss From Continuing Operations
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us-gaap Income Loss From Continuing Operations
IncomeLossFromContinuingOperations
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us-gaap Income Loss From Continuing Operations
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CY2014Q2 us-gaap Financing Receivable Modifications Recorded Investment
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CY2013Q2 us-gaap Financing Receivable Modifications Recorded Investment
FinancingReceivableModificationsRecordedInvestment
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us-gaap Allowance For Loan And Lease Loss Recovery Of Bad Debts
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us-gaap Allowance For Loan And Lease Loss Recovery Of Bad Debts
AllowanceForLoanAndLeaseLossRecoveryOfBadDebts
16000000 USD
CY2013Q2 us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate
0.35 pure
us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate
0.35 pure
us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate
0.35 pure
us-gaap Effective Income Tax Rate Continuing Operations
EffectiveIncomeTaxRateContinuingOperations
0.309 pure
us-gaap Effective Income Tax Rate Continuing Operations
EffectiveIncomeTaxRateContinuingOperations
0.189 pure
CY2014Q2 us-gaap Effective Income Tax Rate Continuing Operations
EffectiveIncomeTaxRateContinuingOperations
0.329 pure
CY2013Q2 us-gaap Effective Income Tax Rate Continuing Operations
EffectiveIncomeTaxRateContinuingOperations
0.134 pure
us-gaap Valuation Allowance Deferred Tax Asset Change In Amount
ValuationAllowanceDeferredTaxAssetChangeInAmount
1613000000 USD
CY2014Q2 us-gaap Valuation Allowance Deferred Tax Asset Change In Amount
ValuationAllowanceDeferredTaxAssetChangeInAmount
659000000 USD
us-gaap Income Tax Reconciliation Change In Deferred Tax Assets Valuation Allowance
IncomeTaxReconciliationChangeInDeferredTaxAssetsValuationAllowance
139000000 USD
CY2014Q2 us-gaap Income Tax Reconciliation Change In Deferred Tax Assets Valuation Allowance
IncomeTaxReconciliationChangeInDeferredTaxAssetsValuationAllowance
77000000 USD
aig Income Tax Reconciliation Other Comprehensive Income Change In Deferred Tax Assets Valuation Allowance
IncomeTaxReconciliationOtherComprehensiveIncomeChangeInDeferredTaxAssetsValuationAllowance
1474000000 USD
CY2014Q2 aig Income Tax Reconciliation Other Comprehensive Income Change In Deferred Tax Assets Valuation Allowance
IncomeTaxReconciliationOtherComprehensiveIncomeChangeInDeferredTaxAssetsValuationAllowance
582000000 USD
us-gaap Cash Period Increase Decrease
CashPeriodIncreaseDecrease
-502000000 USD
CY2014Q2 us-gaap Cash
Cash
1827000000 USD
CY2013Q4 us-gaap Cash
Cash
2241000000 USD
CY2014Q2 us-gaap Common Stock Dividends Per Share Cash Paid
CommonStockDividendsPerShareCashPaid
0.125
us-gaap Proceeds From Divestiture Of Businesses Net Of Cash Divested
ProceedsFromDivestitureOfBusinessesNetOfCashDivested
2348000000 USD
us-gaap Proceeds From Divestiture Of Businesses Net Of Cash Divested
ProceedsFromDivestitureOfBusinessesNetOfCashDivested
0 USD
CY2014Q2 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
300000 shares
aig Gain Loss On Contract Termination11
GainLossOnContractTermination11
196000000 USD
CY2014Q2 aig Gain Loss On Contract Termination11
GainLossOnContractTermination11
196000000 USD
CY2014Q2 us-gaap Notes Receivable Fair Value Disclosure
NotesReceivableFairValueDisclosure
6000000 USD
CY2013Q4 us-gaap Notes Receivable Fair Value Disclosure
NotesReceivableFairValueDisclosure
0 USD
CY2014Q2 aig Other Policyholder Contract Deposits At Fair Value
OtherPolicyholderContractDepositsAtFairValue
8000000 USD
CY2013Q4 aig Other Policyholder Contract Deposits At Fair Value
OtherPolicyholderContractDepositsAtFairValue
0 USD
us-gaap Interest Paid
InterestPaid
1727000000 USD
us-gaap Interest Paid
InterestPaid
2408000000 USD
us-gaap Income Taxes Paid Net
IncomeTaxesPaidNet
482000000 USD
us-gaap Income Taxes Paid Net
IncomeTaxesPaidNet
209000000 USD
aig Interest Credited To Policyholder Accounts Included In Financing Activities
InterestCreditedToPolicyholderAccountsIncludedInFinancingActivities
1937000000 USD
aig Interest Credited To Policyholder Accounts Included In Financing Activities
InterestCreditedToPolicyholderAccountsIncludedInFinancingActivities
1980000000 USD
us-gaap Other Significant Noncash Transaction Value Of Consideration Received1
OtherSignificantNoncashTransactionValueOfConsiderationReceived1
4586000000 USD
us-gaap Other Significant Noncash Transaction Value Of Consideration Received1
OtherSignificantNoncashTransactionValueOfConsiderationReceived1
0 USD

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