41
Operating
revenue
excludes
Net
realized
capital
gains
(losses),
Aircraft
leasing
revenues,
income
from
legal
settlements
(included
in
Other
income for GAAP purposes) and changes in fair values of fixed maturity securities
designated to hedge living benefit liabilities, net if interest expense
(included in Net investment income for GAAP purposes). Book
Value
Per
Share
Excluding
Accumulated
Other
Comprehensive
Income
(AOCI)
and
Book
Value
Per
Share
Excluding
AOCI
and
DTA (Deferred Tax Assets)
are used to show the amount of our net worth on a per-share basis. We believe
these measures are useful to investors because they eliminate the effect of
non-cash items that can fluctuate significantly from period to period, including changes in fair
value of our available for sale securities portfolio, foreign currency translation
adjustments and U.S. tax attribute deferred tax assets. Book Value
Per
Share
Excluding
AOCI
is
derived
by
dividing
Total
AIG
shareholders
equity,
excluding
AOCI,
by
Total
common
shares
outstanding.
Book
Value
Per
Share
Excluding
AOCI
and
DTA
is
derived
by
dividing
Total
AIG
shareholders
equity,
excluding
AOCI
and
DTA,
by
Total
common shares outstanding.
After-tax
operating
income
attributable
to
AIG
is
derived
by
excluding
the
following
items
from
net
income
attributable
to
AIG:
General
operating
expenses,
operating
basis,
is
derived
by
making
the
following
adjustments
to
general
operating
and
other
expenses:
include (i) loss adjustment expenses, reported as policyholder benefits and losses
incurred and (ii) investment expenses reported as net investment income, and
exclude (i) advisory fee expenses, (ii) non-deferrable insurance commissions, (iii) direct marketing and acquisition
expenses, net of deferrals, (iv) legal reserves related to legacy crisis matters
and (v) other expense related to retroactive reinsurance agreement. We use
general operating expenses, operating basis, because we believe it provides a more meaningful indication of our ordinary
course of business operating costs.
Glossary of Non-GAAP Financial Measures
AIG
income and loss from divested businesses, including:
gain on the sale of International Lease Finance Corporation
(ILFC); and
certain post-acquisition transaction expenses incurred by
AerCap Holdings N.V. (AerCap) in connection with its
acquisition of ILFC and the difference between expensing
AerCaps maintenance rights assets over the remaining
lease term as compared to the remaining economic life of
the related aircraft and related tax effects;
legacy tax adjustments primarily related to certain changes in
uncertain tax positions and other tax adjustments; and
legal reserves and settlements related to legacy crisis matters,
which include favorable and unfavorable settlements related to
events leading up to and resulting from our September 2008
liquidity crisis and legal fees incurred as the plaintiff in
connection with such legal matters.
deferred income tax valuation allowance releases and charges;
changes
in
fair
value
of
fixed
maturity
securities
designated
to
hedge
living benefit liabilities (net of interest expense);
changes in benefit reserves and deferred policy acquisition costs (DAC),
value of business acquired (VOBA), and sales inducement assets (SIA)
related to net realized capital gains and losses;
other
income
and
expense
net,
related
to
Corporate
and
Other
run-off
insurance lines; loss on extinguishment of debt;
net realized capital gains and losses;
non-qualifying
derivative
hedging
activities,
excluding
net
realized
capital
gains and losses;
income or loss from discontinued operations; |