Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Schedule of income (loss) from continuing operations before income tax expense (benefit) by U.S. and foreign location

The following table presents income (loss) from continuing operations before income tax expense (benefit) by U.S. and foreign location in which such pre-tax income (loss) was earned or incurred:


Years Ended December 31,
(in millions)		2023		2022		2021
U.S.	$	1,885	$	12,431	$	11,041
Foreign		1,973		1,868		2,306
Total	$	3,858	$	14,299	$	13,347

Schedule of income tax expense (benefit) attributable to pre-tax income (loss) from continuing operations

The following table presents the income tax expense (benefit) attributable to pre-tax income (loss) from continuing operations:


Years Ended December 31,
(in millions)		2023		2022		2021
Foreign and U.S. components of actual income tax expense (benefit):
U.S.:
Current	$	68	$	246	$	(216)
Deferred		(564)		2,363		2,443
Foreign:
Current		423		271		171
Deferred		53		145		43
Total	$	(20)	$	3,025	$	2,441

Schedule of reconciliation between actual income tax (benefit) expense and statutory U.S. federal amount computed by applying the federal income tax rate

Our actual income tax expense (benefit) differs from the statutory U.S. federal amount computed by applying the federal income tax rate due to the following:


Years Ended December 31,	2023						2022						2021
(dollars in millions)	Pre-Tax Income (Loss)		Tax Expense (Benefit)		Percent of Pre-Tax Income (Loss)		Pre-Tax Income (Loss)		Tax Expense (Benefit)		Percent of Pre-Tax Income (Loss)		Pre-Tax Income (Loss)		Tax Expense (Benefit)		Percent of Pre-Tax Income (Loss)
U.S. federal income tax at statutory rate	$	3,858	$	810	21.0	%	$	14,298	$	3,003	21.0	%	$	13,347	$	2,802	21.0	%
Adjustments:
Tax exempt interest			(14)		(0.4)				(18)		(0.1)				(18)		(0.1)
Uncertain tax positions(a)			162		4.2				(17)		(0.1)				(9)		(0.1)
Reclassifications from AOCI			(45)		(1.2)				(81)		(0.6)				(109)		(0.8)
Dispositions of subsidiaries(b)			(382)		(9.9)				—		—				11		0.1
Non-controlling interest			14		0.4				(31)		(0.2)				(97)		(0.7)
Non-deductible transfer pricing charges			16		0.4				12		0.1				16		0.1
Dividends received deduction			(60)		(1.6)				(36)		(0.3)				(37)		(0.3)
Effect of foreign operations(c)			176		4.6				150		1.0				136		1.0
Share-based compensation payments excess tax effect			(31)		(0.8)				(19)		(0.1)				16		0.1
State and local income taxes			10		0.3				47		0.3				38		0.3
Expiration of tax attribute carryforwards			—		—				—		—				16		0.1
Tax audit resolution(a)			(494)		(12.8)				—		—				(935)		(7.0)
Affiliated dividend income, net of dividends received deduction			59		1.5				—		—				—		—
Other(d)			116		3.1				40		0.4				(107)		(0.8)

Valuation allowance:
Continuing operations			(357)		(9.3)				(25)		(0.2)				718		5.4
Consolidated total amounts	3,858		(20)		(0.5)		14,298		3,025		21.2		$	13,347	2,441		18.3
Amounts attributable to discontinued operations	—		—		—		(1)		—		—		—		—		—
Amounts attributable to continuing operations	$	3,858	$	(20)	(0.5)	%	$	14,299	$	3,025	21.2	%	$	13,347	$	2,441	18.3	%

(a)Refer to the Accounting for Uncertainty in Income Taxes section below for further discussion on 2023 and 2021 tax audit resolution activity.

(b)Tax implications of the sales of certain AIG and Corebridge subsidiaries, including Validus Re and Laya, as well as tax implications of Corebridge secondary offerings and the announced sale of AIG Life.

(c)Effect of foreign operations is primarily related to income and losses in our foreign operations taxed at statutory tax rates different than 21 percent, and foreign income subject to U.S. taxation.

(d)Primarily includes tax charges associated with tax adjustments related to prior year returns.

Schedule of components of the net deferred tax asset

The following table presents the components of the net deferred tax assets (liabilities):


December 31,
(in millions)		2023		2022
Deferred tax assets:
Losses and tax credit carryforwards	$	6,107	$	6,868
Basis differences on investments		3,441		2,652

Life policy reserves		1,589		1,622
Accruals not currently deductible, and other		89		392
Investments in foreign subsidiaries		66		—
Loss reserve discount		424		352
Loan loss and other reserves		51		62
Unearned premium reserve reduction		87		294
Fixed assets and intangible assets		1,487		1,081
Unrealized losses related to available for sale debt securities		4,728		6,519
Employee benefits		344		382
Market risk benefit		1,010		827
Other		356		458
Total deferred tax assets		19,779		21,509
Deferred tax liabilities:
Investments in foreign subsidiaries		—		(41)
Deferred policy acquisition costs		(1,853)		(1,847)

Fortitude Re funds withheld embedded derivative		(711)		(862)

Total deferred tax liabilities		(2,564)		(2,750)
Net deferred tax assets before valuation allowance		17,215		18,759
Valuation allowance		(3,116)		(4,250)
Net deferred tax assets (liabilities)	$	14,099	$	14,509

Schedule of consolidated income tax group credits carryforwards

The following table presents AIG's U.S. consolidated federal income tax group tax losses and credits carryforwards.


December 31, 2023			Tax		Carryforward Period Ending Tax Year(b)												Unlimited Carryforward Period and Carryforward Periods(b)
(in millions)	Gross		Effected		2024		2025		2026		2027		2028		2029		2030 - After
Net operating loss carryforwards	$	21,968	$	4,613	$	—	$	—	$	—	$	—	$	2,660	$	178	$	1,775


Other carryforwards			67		—		—		—		—		—		—		67
Total AIG U.S. consolidated federal income tax group tax losses and credits carryforwards on a U.S. GAAP basis(a)			$	4,680	$	—	$	—	$	—	$	—	$	2,660	$	178	$	1,842

(a)Financial reporting basis reflects the impact of unrecognized tax benefits for tax years in which tax attributes can be realized through carryback upon settlement.

(b)Carryforward periods are based on U.S. tax laws governing utilization of tax attributes. Expiration periods are based on the year the carryforward was generated

Schedule of net deferred tax assets (liabilities)

The following table presents the net deferred tax assets (liabilities) at December 31, 2023 and 2022 on a U.S. GAAP basis:


December 31,
(in millions)		2023		2022
Net U.S. deferred tax assets	$	11,317	$	10,831
Net deferred tax assets (liabilities) in AOCI		4,286		5,881
Valuation allowance		(2,006)		(3,128)
Subtotal		13,597		13,584
Net foreign, state and local deferred tax assets		1,958		2,342
Valuation allowance		(1,110)		(1,122)
Subtotal		848		1,220
Subtotal - Net U.S., foreign, state and local deferred tax assets		14,445		14,804
Net foreign, state and local deferred tax liabilities		(346)		(295)
Total AIG net deferred tax assets (liabilities)	$	14,099	$	14,509

Schedule of reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits

The following table presents a reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits, excluding interest and penalties:


Years Ended December 31,
(in millions)		2023		2022		2021
Gross unrecognized tax benefits, beginning of year	$	1,191	$	1,157	$	2,343
Increases in tax positions for prior years		200		29		22
Decreases in tax positions for prior years		(4)		(33)		(1,233)
Increases in tax positions for current year		—		59		37
Lapse in statute of limitations		—		(21)		—
Settlements		—		—		(12)
Gross unrecognized tax benefits, end of year	$	1,387	$	1,191	$	1,157