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Bring on tomorrow - AIG.com

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ITEM 8 / NOTE 27. INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT.....................................................................................................................................................................................AmericanInternati<strong>on</strong>alReclassificati<strong>on</strong>sGroup, Inc. Other and C<strong>on</strong>solidated(in milli<strong>on</strong>s) (As Guarantor) SAFG, Inc. Subsidiaries Eliminati<strong>on</strong>s <strong>AIG</strong>Year Ended December 31, 2010Revenues:Equity in earnings of c<strong>on</strong>solidated subsidiaries (a) $ 21,385 $ 1,695 $ – $ (23,080) $ –Change in fair value of ML III – – 1,792 – 1,792Other in<strong>com</strong>e (b) 3,046 246 70,403 (2,658) 71,037Total revenues 24,431 1,941 72,195 (25,738) 72,829Expenses:Interest expense <strong>on</strong> FRBNY Credit Facility 4,107 – – (79) 4,028Other interest expense (c) 2,279 378 2,711 (2,654) 2,714Loss <strong>on</strong> extinguishment of debt 104 – – – 104Other expenses 1,664 – 44,072 – 45,736Total expenses 8,154 378 46,783 (2,733) 52,582In<strong>com</strong>e (loss) from c<strong>on</strong>tinuing operati<strong>on</strong>s before in<strong>com</strong>e taxexpense (benefit) 16,277 1,563 25,412 (23,005) 20,247In<strong>com</strong>e tax expense (benefit) (d) 5,402 (101) 1,692 – 6,993In<strong>com</strong>e (loss) from c<strong>on</strong>tinuing operati<strong>on</strong>s 10,875 1,664 23,720 (23,005) 13,254Loss from disc<strong>on</strong>tinued operati<strong>on</strong>s (817) – (73) (79) (969)Net in<strong>com</strong>e (loss) 10,058 1,664 23,647 (23,084) 12,285Less:Net in<strong>com</strong>e from c<strong>on</strong>tinuing operati<strong>on</strong>s attributable to n<strong>on</strong>c<strong>on</strong>trollinginterests:N<strong>on</strong>voting, callable, junior and senior preferred interests – – – 1,818 1,818Other – – 354 – 354Total in<strong>com</strong>e from c<strong>on</strong>tinuing operati<strong>on</strong>s attributable t<strong>on</strong><strong>on</strong>c<strong>on</strong>trolling interests – – 354 1,818 2,172In<strong>com</strong>e from disc<strong>on</strong>tinued operati<strong>on</strong>s attributable to n<strong>on</strong>c<strong>on</strong>trollinginterests – – 55 – 55Total net in<strong>com</strong>e attributable to n<strong>on</strong>c<strong>on</strong>trolling interests – – 409 1,818 2,227Net in<strong>com</strong>e (loss) attributable to <strong>AIG</strong> $ 10,058 $ 1,664 $ 23,238 $ (24,902) $ 10,058(a) Eliminated in c<strong>on</strong>solidati<strong>on</strong>.(b) Includes inter<strong>com</strong>pany in<strong>com</strong>e of $242 milli<strong>on</strong>, $489 milli<strong>on</strong>, and $2.6 billi<strong>on</strong> for 2012, 2011, and 2010, respectively, for American Internati<strong>on</strong>alGroup, Inc. (As Guarantor).(c) Includes inter<strong>com</strong>pany interest expense of $141 milli<strong>on</strong>, $700 milli<strong>on</strong>, and $28 milli<strong>on</strong> for 2012, 2011, and 2010, respectively, for American Internati<strong>on</strong>alGroup, Inc. (As Guarantor).(d) For 2010 and 2009, in<strong>com</strong>e taxes recorded by American Internati<strong>on</strong>al Group, Inc. (As Guarantor) include deferred tax expense attributable to foreignbusinesses sold and a valuati<strong>on</strong> allowance to reduce the c<strong>on</strong>solidated deferred tax asset to the amount more likely than not to be realized. For 2011, thein<strong>com</strong>e tax benefit includes the effect of releasing a significant porti<strong>on</strong> of the deferred tax asset valuati<strong>on</strong> allowance. See Note 24 herein for additi<strong>on</strong>alinformati<strong>on</strong>...................................................................................................................................................................................................................................<strong>AIG</strong> 2012 Form 10-K 339

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