AIG 2015 Annual Report Download - page 59

ITEM 7 / USE OF NON-GAAP MEASURES
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 Commercial Insurance: Institutional Markets; Consumer Insurance: Retirement and Life
• Pre-tax operating income is derived by excluding the following items from pre-tax income:
 changes in fair value of securities used to hedge
guaranteed living benefits;
 changes in benefit reserves and DAC, VOBA and SIA
related to net realized capital gains and losses; and
 net realized capital gains and losses;  non-operating litigation reserves and settlements.
• Premiums and deposits: includes direct and assumed amounts received and earned on traditional life insurance
policies, group benefit policies and life-contingent payout annuities, as well as deposits received on universal life,
investment-type annuity contracts and mutual funds.
 Corporate and Other — Pre-tax operating income and loss is derived by excluding the following items from pre-tax
income and loss:
 loss on extinguishment of debt;
 net realized capital gains and losses;
 changes in benefit reserves and DAC, VOBA and SIA
related to net realized capital gains and losses;
 income and loss from divested businesses, including
Aircraft Leasing;
 net gain or loss on sale of divested businesses,
including:
• gain on the sale of ILFC; and
• certain post-acquisition transaction expenses incurred
by AerCap in connection with its acquisition of ILFC
and the difference between expensing AerCap’s
maintenance rights assets over the remaining lease
term as compared to the remaining economic life of
the related aircraft and our share of AerCap’s income
taxes;
 non-operating litigation reserves and settlements;
 reserve development related to non-operating run-off
insurance business; and
 restructuring and other costs related to initiatives
designed to reduce operating expenses, improve
efficiency and simplify our organization.
Results from discontinued operations are excluded from all of these measures.