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ITEM 7 / LIQUIDITY AND CAPITAL RESOURCES.....................................................................................................................................................................................On February 19, 2013, AIG commenced cash tender offers for (i) our 8.625% Series A-8 Junior SubordinatedDebentures and 8.000% Series A-7 Junior Subordinated Debentures for a purchase price of up to $325 million,(ii) our 6.250% Series A-1 Junior Subordinated Debentures and 8.175% Series A-6 Junior Subordinated Debenturesfor a purchase price of up to $650 million and (iii) the 8 1 ⁄2% Capital Trust Pass-Through Securities of AmericanGeneral Capital II, the 7.57% Capital Securities, Series A of American General Institutional Capital A, the 8 1 ⁄8%Capital Securities, Series B of American General Institutional Capital B and the 5.60% Senior Debentures due July2097 of SunAmerica Inc. assumed by AIG, for a purchase price of up to $275 million, in each case plus accruedinterest or distributions through the settlement date. The offers are not cross-conditioned and AIG may complete all,some or none of the tender offers. The offers are scheduled to expire on March 18, 2013 with an early participationperiod through March 4, 2013, in each case subject to amendment and to extension in AIG’s sole discretion. Thepurpose of the tender offers is to purchase certain outstanding debt issued or guaranteed by AIG and to reduce itslevel of indebtedness and its interest expense.See Liquidity and Capital Resources of AIG Parent and Subsidiaries – AIG Parent – Sources and Uses of Liquidityand Capital Resources of AIG Parent herein for further discussion.Analysis of Sources and Uses of Cash..............................................................................................................................................................................................The following table presents selected data from AIG’s Consolidated Statement of Cash Flows:Years Ended December 31,(in millions) 2012 2011 2010Sources:Net cash provided by (used in) operating activities – continuing operations $ 748 $ (6,256) $ 6,161Net cash provided by operating activities – discontinued operations 2,928 6,175 10,436Net cash provided by changes in restricted cash 695 27,202 –Net cash provided by other investing activities 15,917 9,246 17,114Changes in policyholder contract balances – 4,333 4,673Issuance of other long-term debt 4,844 3,190 3,342Federal Reserve Bank of New York credit facility borrowings –– 19,900Proceeds from drawdown on the Department of Treasury Commitment – 20,292 2,199Issuance of Common Stock – 5,055 –Net cash provided by other financing activities 4,194– –Total sources 29,326 69,237 63,825Uses:Changes in restricted cash –– (27,026)Changes in policyholder contract balances (690) – –Repayments of other long-term debt (7,276) (9,486) (7,986)Federal Reserve Bank of New York credit facility repayments – (14,622) (23,178)Repayment of Department of Treasury SPV Preferred Interests (8,636) (12,425) –Repayment of Federal Reserve Bank of New York SPV Preferred Interests – (26,432) –Purchases of AIG Common Stock (13,000) (70) –Net cash used in other financing activities – (6,761) (8,211)Total uses (29,602) (69,796) (66,401)Effect of exchange rate changes on cash 16 29 39Decrease in cash (260) (530) (2,537)..................................................................................................................................................................................................................................122 AIG 2012 Form 10-K