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ITEM 6 / SELECTED FINANCIAL DATA.....................................................................................................................................................................................Items Affecting Comparability Between PeriodsThe following are significant developments that affected multiple periods and financial statement captions. Otheritems that affected comparability are included in the footnotes to the table presented immediately above.Market Events in 2008 and 2009..............................................................................................................................................................................................AIG was significantly affected by the market turmoil in late 2008 and early 2009 and recognized other-than-temporaryimpairment charges in 2008 related primarily to collateralized mortgage-backed securities, other structured securitiesand securities of financial institutions; losses related to the change in AIG’s intent and ability to hold to recoverycertain securities; and losses related to AIG’s securities lending program.In 2008, AIG also recognized unrealized market valuation losses representing the change in fair value of its supersenior credit default swap portfolio, established a deferred tax valuation allowance and experienced anunprecedented strain on liquidity. This strain led to several transactions with the FRBNY and the Department of theTreasury. See Note 25 to the Consolidated Financial Statements for further discussion of these transactions andrelationships.FRBNY Activity and Effect on Interest Expense in 2008, 2009 and 2010..............................................................................................................................................................................................The decline in interest expense in 2010 was due primarily to a reduced weighted-average interest rate onborrowings, a lower average outstanding balance and a decline in amortization of the prepaid commitment fee assetrelated to the partial repayment of the FRBNY Credit Facility. On January 14, 2011, AIG repaid the remaining$20.7 billion and terminated this facility, resulting in a net $3.3 billion pretax charge in the first quarter of 2011,representing primarily the accelerated amortization of the remaining prepaid commitment fee asset included in Netloss on extinguishment of debt. See Note 25 to the Consolidated Financial Statements for further discussion of theRecapitalization.As a result of the closing of the Recapitalization on January 14, 2011, the preferred interests (the SPV PreferredInterests) in the special purpose vehicles that held remaining AIA shares and the proceeds of the AIA initial publicoffering and the ALICO sale (the SPVs) were transferred to the Department of the Treasury. After such closing, theSPV Preferred Interests were not considered permanent equity on AIG’s Consolidated Balance Sheet and wereclassified as redeemable non-controlling interests.Asset Dispositions in 2010, 2011 and 2012..............................................................................................................................................................................................On December 9, 2012, we announced the agreement to sell up to 90% of ILFC and executed multiple assetdispositions in 2010 and 2011, as further discussed in Note 4 to the Consolidated Financial Statements, including thecompletion of an initial public offering of AIA in 2010 for which AIG recognized an $18.1 billion gain.Adjustment to Federal Deferred Tax Valuation Allowance in 2008, 2009, 2010, 2011 and 2012..............................................................................................................................................................................................As further discussed in Note 24 to the Consolidated Financial Statements, AIG concluded that $18.4 billion of thedeferred tax asset valuation allowance for the U.S. consolidated income tax group should be released through theConsolidated Statement of Operations in 2011. The valuation allowance resulted primarily from losses subject to U.S.income taxes recorded from 2008 through 2010.Capitalization and Book Value Per Share..............................................................................................................................................................................................As a result of the closing of the Recapitalization on January 14, 2011, the remaining SPV Preferred Interests held bythe FRBNY of approximately $26.4 billion were purchased by AIG and transferred to the Department of the Treasury.The SPV Preferred Interests were no longer considered permanent equity on AIG’s Consolidated Balance Sheet, andwere classified as redeemable non-controlling interests. See Note 18 to the Consolidated Financial Statements forfurther discussion...................................................................................................................................................................................................................................50 AIG 2012 Form 10-K