AIG 2013 Annual Report Download - page 145

reserves recorded for potential exposure under aircraft assets value guarantees and an increase in depreciation
expense due to the change in depreciable lives and residual value of certain aircraft.
In 2012, we recognized a pre-tax loss of $6.7 billion associated with the announced sale of ILFC.
Includes impairments on investments in life settlements of $971 million, $309 million and $312 million in 2013, 2012,
and 2011, respectively. Also included in 2012 is a $426 million gain on the sale of common units of The Blackstone
Group L.P. Impairments on investments in life settlements increased in 2013 compared to 2012 as a result of
updated longevity assumptions in the valuation tables used to estimate future expected cash flows. These updates
were due to observed experience deviating significantly compared to prior expectations.
Income (loss) from Discontinued Operations is comprised of the following:
Foreign life insurance businesses $ – $ 1,170
Net gain on sale 1 2,338
Consolidation adjustments –(1)
Interest allocation –(2)
Income from discontinued operations 1 3,505
Income tax expense – 1,038
Income from discontinued operations, net of tax $ 1 $ 2,467
Significant items affecting the comparison of results from discontinued operations included the following:
• a pre-tax gain of $150 million for 2013 in connection with the sale of American Life Insurance Company (ALICO)
primarily attributable to the refund of taxes, interest and penalties, together with other matters;
• a gain on the sale of AIG Star Life Insurance Co., Ltd. (AIG Star) and AIG Edison Life Insurance Company (AIG
Edison) in 2011;
• tax effects of the above transactions, notably the impact of non-deductible goodwill impairment and the change in
investment in subsidiaries, which was principally related to changes in the estimated U.S. tax liability with respect
to the planned sales.
See Note 4 to the Consolidated Financial Statements for further discussion of discontinued operations.
Net Loss on Sale of Divested Businesses
Net Realized Capital Gains (Losses)
DISCONTINUED OPERATIONS
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AIG 2013 Form 10-K 127
ITEM 7 / RESULTS OF OPERATIONS / OTHER OPERATIONS
Years Ended December 31,
(in millions) 2013 2012 2011
$–
150
–
–
150
66
$84
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