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ITEM 8 / NOTE 17. TOTAL EQUITY.....................................................................................................................................................................................Accumulated Other Comprehensive Income (Loss)..............................................................................................................................................................................................The following table presents a rollforward of Accumulated other comprehensive income (loss):Unrealized Appreciation(Depreciation) of FixedNet DerivativeMaturity Investments Unrealized Gains (Losses) Change inon Which Other-Than- Appreciation Foreign Arising from RetirementTemporary Credit (Depreciation) Currency Cash Flow PlanImpairments Were of All Other Translation Hedging Liabilities(in millions) Recognized Investments Adjustments Activities Adjustment TotalBalance, January 1, 2010, net of tax $ (1,785) $ 7,829 $ 2,249 $ (128) $ (1,144) $ 7,021Cumulative effect of change in accounting principle (76) (168) (688) – – (932)Change in unrealized appreciation of investments 2,645 7,265 – – – 9,910Change in deferred acquisition costs adjustment andother (166) (491) – – – (657)Change in foreign currency translation adjustments – – 654 – – 654Change in net derivative losses arising from cash flowhedging activities – – – 105 – 105Net actuarial loss – – – – (1) (1)Prior service credit – – – – 10 10Change attributable to divestitures and deconsolidations 43 (2,854) (2,357) 6 290 (4,872)Deferred tax asset (liability) (1,293) (1,627) 775 (17) (24) (2,186)Total other comprehensive income (loss) 1,229 2,293 (928) 94 275 2,963Acquisition of noncontrolling interest – – – – – –Noncontrolling interests 2 99 80 – – 181Balance, December 31, 2010, net of tax $ (634) $ 9,855 $ 553 $ (34) $ (869) $ 8,871Change in unrealized appreciation of investments 55 5,463 – – – 5,518Change in deferred acquisition costs adjustment andother (a) 11 (641) – – – (630)Change in future policy benefits (b) – (2,302) – – – (2,302)Change in foreign currency translation adjustments – – (97) – – (97)Change in net derivative losses arising from cash flowhedging activities – – – 51 – 51Net actuarial loss – – – – (752) (752)Prior service credit – – – – 387 387Change attributable to divestitures and deconsolidations 23 (3,643) (1,681) – 260 (5,041)Deferred tax asset (liability) (163) (362) 786 (34) 35 262Total other comprehensive income (loss) (74) (1,485) (992) 17 (70) (2,604)Acquisition of noncontrolling interest – 45 66 – (18) 93Noncontrolling interests 3 (160) 36 – – (121)Balance, December 31, 2011, net of tax$ (711) $ 8,575 $ (409) $ (17) $ (957) $ 6,481Change in unrealized appreciation of investmentsChange in deferred acquisition costs adjustment andotherChange in future policy benefitsChange in foreign currency translation adjustmentsChange in net derivative gains (losses) arising fromcash flow hedging activitiesNet actuarial lossPrior service creditDeferred tax asset (liability)Total other comprehensive income (loss)Noncontrolling interestsBalance, December 31, 2012, net of tax(a)2,306 8,404 – – – 10,710(49) (840) – – – (889)(85) (432) – – – (517)– – (33) – – (33)– – – 33 – 33– – – – (273) (273)– – – – (46) (46)(886) (2,252) 33 (16) 232 (2,889)1,286 4,880 – 17 (87) 6,096– 9 (6) – – 3$ 575 $ 13,446 $ (403) $ – $ (1,044) $ 12,574Includes the pre-tax adjustment to Accumulated other comprehensive income related to a $152 million reduction of deferred acquisition costsas a consequence of the recognition of additional policyholder benefit reserves disclosed below.(b) The adjustment to policyholder benefit reserves assumes that the unrealized appreciation on available for sale securities is actually realizedand that the proceeds are reinvested at lower yields.As a result of divestitures in 2010, $1.8 billion of Foreign currency cumulative translation adjustment and $6.1 billionof Unrealized appreciation of investments were transferred to earnings as net gain on sale...................................................................................................................................................................................................................................308 AIG 2012 Form 10-K