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ITEM 7 / RESULTS OF OPERATIONS.....................................................................................................................................................................................Other OperationsOther Operations Results..............................................................................................................................................................................................The following table presents AIG’s Other operations results:Years Ended December 31,Percentage Change(in millions) 2012 2011 2010 2012 vs. 2011 2011 vs. 2010Mortgage Guaranty $ 9 $ (97) $ 353 NM% NM%Global Capital Markets 557 (11) 210 NM NMDirect Investment book 1,215 604 1,421 101 (57)Retained interests:Change in fair value of AIA securities, includingrealized gain in 2012 2,069 1,289 (638) 61 NMChange in fair value of ML III 2,888 (646) 1,792 NM NMChange in the fair value of the MetLifesecurities prior to their sale – (157) 665 NM NMCorporate & Other:Interest expense on FRBNY Credit Facility* – (72) (636) NM 89Other interest expense (1,597) (1,613) (1,856) 1 13Corporate expenses, net (900) (1,095) (1,233) 18 11Real estate and other non-core businesses (121) 24 (658) NM NMTotal Corporate & Other operating income (2,618) (2,756) (4,383) 5 37Consolidation and eliminations 4 – 89 NM NMTotal Other operations operating income (loss) 4,124 (1,774) (491) NM (261)Legal reserves (754) (20) (3) NM NMLegal settlements 39 – – NM NMDeferred gain on FRBNY credit facility – 296 – NM NMAmortization of prepaid commitment fee asset – – (3,471) NM NMGain (loss) on extinguishment of debt (9) (3,143) (104) 100 NMNet realized capital gains 501 12 908 NM (99)Net gain (loss) on sale of divested businesses (2) (74) 18,897 97 NMDivested businesses – – 1,875 NM NMTotal Other operations pre-tax income (loss) $ 3,899 $ (4,703) $ 17,611 NM% NM%* Includes interest expense of $2 million and $75 million for 2011 and 2010, respectively, allocated to discontinued operations in consolidation...................................................................................................................................................................................................................................AIG 2012 Form 10-K 111