10-Q/APeriod: Q2 FY2005

AMERICAN INTERNATIONAL GROUP, INC. Quarterly Report (Amendment) for Q2 Ended Jun 30, 2005

Filed June 19, 2006For Securities:AIG

Summary

This Form 10-Q/A filed by American International Group, Inc. (AIG) on June 19, 2006, is an amendment to their quarterly report for the period ended June 30, 2005. The filing primarily addresses restatements to previously issued financial statements due to "First Restatement" and "Second Restatement" periods, stemming from internal reviews and identified errors. These restatements impact various periods, including the financial information presented for the quarter ended June 30, 2005. Investors should note that this filing is primarily for amendment purposes and that more current information is available in later filings, such as the 2005 Annual Report on Form 10-K. The company is also addressing material weaknesses in internal control over financial reporting, with ongoing remediation efforts. The restatements highlight adjustments related to accounting for derivatives (FAS 133), certain payments received by ILFC from aircraft manufacturers, and reconciliation of balance sheet accounts within the Domestic Brokerage Group. These adjustments have led to significant revisions in previously reported financial data, impacting total assets, liabilities, shareholders' equity, revenues, and net income across multiple periods. Investors should exercise caution and consult subsequent filings for the most up-to-date financial and operational information.

Key Highlights

  • 1AIG is filing an amended 10-Q for the quarter ended June 30, 2005, due to restatements of previously issued financial statements.
  • 2The restatements are categorized into a 'First Restatement' and a 'Second Restatement', addressing issues identified during internal reviews and remediation of material weaknesses.
  • 3Key areas of adjustment include accounting for derivatives (FAS 133), reconciliation of balance sheet accounts, and accounting for certain payments received by ILFC.
  • 4The restatements have resulted in significant changes to previously reported financial figures for assets, liabilities, equity, revenues, and net income.
  • 5The company acknowledges that disclosure controls and procedures were ineffective as of June 30, 2005, due to material weaknesses in internal control over financial reporting.
  • 6AIG is actively engaged in remediation efforts to address these material weaknesses.
  • 7The filing provides detailed tables showing the impact of these restatements on the Consolidated Balance Sheet, Statement of Income, and Statement of Cash Flows for various periods.

Frequently Asked Questions

This filing is an amendment to the original Form 10-Q for the quarter ended June 30, 2005. The primary reason for the amendment is to restate previously issued financial statements due to errors identified during internal reviews and the remediation of material weaknesses in internal control over financial reporting.

The restatements impacted several key accounting areas, including the accounting for derivatives and related assets and liabilities under FAS 133, reconciliation of certain balance sheet accounts, and accounting for certain payments received by International Lease Finance Corporation (ILFC) from aircraft and engine manufacturers. These adjustments have led to revisions in revenues, expenses, net income, and balance sheet items.

As of June 30, 2005, AIG's management, including the CEO and CFO, concluded that AIG's disclosure controls and procedures remained ineffective due to identified material weaknesses in internal control over financial reporting. The company is actively implementing remediation efforts to address these weaknesses.

Investors should be aware that the financial information presented in this filing has been restated. It is crucial for investors to consult AIG's subsequent filings, such as the 2005 Annual Report on Form 10-K and any subsequent quarterly reports, for the most up-to-date financial and operational performance data. The presence of restatements and acknowledged control weaknesses indicates a period of significant internal review and adjustment for the company.