AIG 2012 Annual Report Download - page 246

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The following table summarizes the components of assets and liabilities held-for-sale on the Consolidated
Balance Sheet as of December 31, 2012:
Assets:
Equity securities
Mortgage and other loans receivable, net
Flight equipment primarily under operating leases, net of accumulated depreciation
Short-term investments
Cash
Premiums and other receivables, net of allowance
Other assets
Assets of businesses held for sale
Less: Loss Accrual
Total assets held for sale
Liabilities:
Other liabilities
Other long-term debt
Total liabilities held for sale
Discontinued Operations
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We report the results of operations of a business as discontinued operations if the business is classified as held for
sale, the operations and cash flows of the business have been or will be eliminated from our ongoing operations as a
result of a disposal transaction and we will not have any significant continuing involvement in the operations of the
business after the disposal transaction. The results of discontinued operations are reported in Discontinued
Operations in the Consolidated Statement of Operations for current and prior periods commencing in the period in
which the business meets the criteria of a discontinued operation, and include any gain or loss recognized on closing
or adjustment of the carrying amount to fair value less cost to sell.
The results of operations for the following businesses are presented as discontinued operations in our Consolidated
Statement of Operations.
International Lease Finance Corporation Sale
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On December 9, 2012, we entered into a definitive agreement with Jumbo Acquisition Limited for the sale of
80.1 percent of the common stock of ILFC for approximately $4.2 billion in cash. Jumbo Acquisition Limited may
elect to purchase an additional 9.9 percent of the common stock of ILFC for $522.5 million (the Option) by the later
of March 15, 2013 and ten days after approval of the ILFC Transaction and the Option by the Committee on Foreign
Investment in the United States. We will retain a 19.9 percent ownership interest in ILFC, or a 10.0 percent
ownership interest in ILFC, if the Option is exercised by Jumbo Acquisition Limited, in each case subject to dilution
for management issuances (which, over time, would reduce our ownership interest by approximately one percentage
point). The transaction is subject to required regulatory approvals and other customary closing conditions. We
determined ILFC met the criteria at December 31, 2012 for held for sale and discontinued operations accounting and,
consequently, we recorded a $4.4 billion after tax loss for the year ended December 31, 2012, which is reported in
Income (loss) from discontinued operations in the Consolidated Statement of Operations. At the closing of the
transaction, AIG will return $1.1 billion to ILFC in connection with the termination of intercompany arrangements
between AIG and ILFC.
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AIG 2012 Form 10-K 229
December 31,
(in millions) 2012
$1
117
34,468
1,861
63
308
1,864
38,682
(6,717)
$ 31,965
$ 3,043
24,323
$ 27,366
ITEM 8 / NOTE 4. DIVESTED BUSINESSES, HELD-FOR-SALE CLASSIFICATION AND DISCONTINUED
OPERATIONS