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ITEM 8 / NOTE 24. INCOME TAXES.....................................................................................................................................................................................24. INCOME TAXES..............................................................................................................................................................................................The following table presents income (loss) from continuing operations before income tax expense (benefit)by U.S. and foreign location in which such pre-tax income (loss) was earned or incurred.Years Ended December 31,(in millions)2012 2011 2010U.S. $ 5,515 $ (566) $ 15,749Foreign 3,807 682 4,498Total $ 9,322 $ 116 $ 20,247The following table presents the income tax expense (benefit) attributable to pre-tax income (loss) fromcontinuing operations:Years Ended December 31,(in millions)2012 2011 2010Foreign and U.S. components of actual income tax expense:Foreign:Current $ 484 $ 302 $ 823Deferred (275) (20) 270U.S.:Current 311 (284) (243)Deferred 1,050 (19,422) 6,143Total $ 1,570 $ (19,424) $ 6,993Our actual income tax (benefit) expense differs from the statutory U.S. federal amount computed by applyingthe federal income tax rate due to the following:2012 2011 2010Pre-Tax Tax Percent of Pre-Tax Tax Percent of Tax Percent ofYears Ended December 31, Income Expense/ Pre-Tax Income Expense/ Pre-Tax Pre-Tax Expense/ Pre-Tax(dollars in millions) (Loss) (Benefit) Income (Loss) (Loss) (Benefit) Income (Loss) Income (Benefit) IncomeU.S. federal income tax atstatutory rate adjustments: $ 2,893 $ 1,013 35.0% $ 2,604 $ 911 35.0% $ 22,877 $ 8,007 35.0%Tax exempt interest (302) (10.4)(454) (17.4) (587) (2.6)Investment in subsidiaries andpartnerships (26) (0.9)(224) (8.6) (1,319) (5.8)Variable interest entities 32 1.1(43) (1.7) (2) –Uncertain tax positions 586 20.3(29) (1.1) (36) (0.2)Dividends received deduction (58) (2.0)(52) (2.0) (108) (0.5)Effect of foreign operations 172 5.9(386) (14.8) 602 2.6Bargain purchase gain – –– – (116) (0.5)State income taxes (83) (2.9)(85) (3.3) (104) (0.5)Other (107) (3.7)116 4.5 215 1.0Effect of discontinuedoperations (127) (4.4)(173) (6.6) 119 0.5Effect of discontinuedoperations – goodwill – –– – 1,268 5.5Valuation allowance:Continuing operations (1,907) (65.9)(18,307) NM 1,361 6.0Discontinued operations – –– – 1,292 5.7Consolidated total amounts 2,893 (807) (27.9) 2,604 (18,726) NM 22,877 10,592 46.2Amounts attributable todiscontinued operations (6,429) (2,377) 37.0 2,488 698 28.1 2,630 3,599 136.8Amounts attributable tocontinuing operations $ 9,322 $ 1,570 16.8% $ 116 $ (19,424) NM% $ 20,247 $ 6,993 34.5%..................................................................................................................................................................................................................................330 AIG 2012 Form 10-K