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ITEM 8 / NOTE 7. INVESTMENTS.....................................................................................................................................................................................Summarized Financial Information of Other Equity Method Investees..............................................................................................................................................................................................The following is the aggregated summarized financial information of our other equity method investees,including those for which the fair value option has been elected:Years Ended December 31,(in millions) 2012 2011 2010Operating results:Total revenues $ 9,438 $ 12,749 $ 14,079Total expenses (5,183) (3,530) (3,812)Net income $ 4,255 $ 9,219 $ 10,267At December 31,(in millions) 2012 2011Balance sheet:Total assets $ 139,681 $ 95,749Total liabilities $ (26,529) $ (22,379)Summarized financial information for these equity method investees may be presented on a lag, due to theunavailability of information for the investees at the respective balance sheet date, and is included for the periods inwhich we held an equity method ownership interest. Summarized financial information for investees of entities thathave been divested or are held-for-sale is not included in the table above.Other Investments..............................................................................................................................................................................................Also included in Other invested assets are real estate held for investment and aircraft asset investments held bynon-Aircraft Leasing subsidiaries. These investments are reported at cost, less depreciation and subject toimpairment review, as discussed below.Investments in Life Settlement Contracts..............................................................................................................................................................................................Life settlement contracts are accounted for under the investment method. Under the investment method, werecognize our initial investment in life settlement contracts at the transaction price plus all initial direct external costs.Continuing costs to keep the policy in force, primarily life insurance premiums, increase the carrying value of theinvestment. We recognize income on individual life settlement contracts when the insured dies, at an amount equalto the excess of the contract proceeds over the carrying amount of the contract at that time. Contracts are reviewedfor indications that the expected future proceeds from the contract would not be sufficient to recover our estimatedfuture carrying amount of the contract, which is the current carrying amount for the contract plus anticipatedundiscounted future premiums and other capitalizable future costs. Any such contracts identified are written down totheir estimated fair value.During 2012, 2011 and 2010, income recognized on life settlement contracts was $253 million, $320 million and$213 million, respectively, and is included in Net investment income in the Consolidated Statement of Operations.Our life settlement contracts reported above are monitored for impairment on a contract-by-contract basis quarterly.Impairment charges on life settlement contracts included in net realized capital gains (losses) totaled $309 million,$312 million and $74 million in 2012, 2011, and 2010 respectively...................................................................................................................................................................................................................................258 AIG 2012 Form 10-K