AIG 2012 Annual Report Download - page 245

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4. DIVESTED BUSINESSES, HELD-FOR-SALE CLASSIFICATION AND DISCONTINUED OPERATIONS
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Divested Businesses
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AIA Initial Public Offering and Subsequent Sales
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On October 29, 2010, we completed an initial public offering (IPO) of 8.08 billion ordinary shares of AIA for
aggregate gross proceeds of approximately $20.5 billion. Upon completion of the IPO, we owned 33 percent of the
outstanding AIA ordinary shares. Accordingly, we deconsolidated AIA and recorded a pre-tax gain of $18.1 billion in
2010. During 2012, we sold our remaining AIA ordinary shares for aggregate gross proceeds of approximately
$14.5 billion. As a result of these sales, we no longer held an interest in AIA as of December 31, 2012. Prior to the
disposition, we accounted for our investment in AIA under the fair value option with gains and losses recorded in Net
investment income. At December 31, 2011, the fair value of our retained interest in AIA was approximately
$12.4 billion, and was included in Other invested assets.
The following table presents certain information relating to our sales of AIA ordinary shares:
Sales:
March 7, 2012 1,720,000,000 $ 6.0
September 11, 2012 591,866,000 2.0
December 20, 2012 1,648,903,201 6.5
Total Sales 3,960,769,201 $ 14.5
Held-For-Sale Classification
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We report a business as held for sale when management has approved or received approval to sell the business
and is committed to a formal plan, the business is available for immediate sale, the business is being actively
marketed, the sale is anticipated to occur during the next 12 months and certain other specified criteria are met. A
business classified as held for sale is recorded at the lower of its carrying amount or estimated fair value less cost to
sell. If the carrying amount of the business exceeds its estimated fair value, a loss is recognized. Depreciation is not
recorded on assets of a business after it is classified as held for sale. Assets and liabilities related to a business
classified as held for sale are segregated in the Consolidated Balance Sheet in the period in which the business is
classified as held for sale.
At December 31, 2012, held-for-sale assets and liabilities consisted of ILFC.
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AIG 2012 Form 10-K228
Shares Gross
(in billions, except share data) Sold Proceeds
ITEM 8 / NOTE 4. DIVESTED BUSINESSES, HELD-FOR-SALE CLASSIFICATION AND DISCONTINUED
OPERATIONS