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ITEM 7 / EXECUTIVE SUMMARY.....................................................................................................................................................................................PRE-TAX INCOME (LOSS) ($ millions)AIG PROPERTY CASUALTYAIG LIFE AND RETIREMENTOTHER OPERATIONS$1,837$1,820$3,780$2,956$2,701$17,6112012 2011 2010$(93)OPERATING INCOME (LOSS) ($ millions)2012 2011 2010$3,899201215FEB201316543331 15FEB201316543600 15FEB2013165434702011$(4,703)2010AIG PROPERTY CASUALTYAIG LIFE AND RETIREMENTOTHER OPERATIONS$1,8202012$1,2182011$4,160$4,056$3,2772010$(1,056)2012 2011 2010$4,12420122011$(1,774)2010$(491)15FEB201316542803 15FEB201316543069 15FEB201316542940Prior Period Revisions..............................................................................................................................................................................................Prior period amounts have been revised to reflect the following:Accounting for Deferred Acquisition Costs..............................................................................................................................................................................................As discussed in Note 2 to the Consolidated Financial Statements, AIG retrospectively adopted an accountingstandard on January 1, 2012 that amended the accounting for costs incurred by insurance companies that can becapitalized in connection with acquiring or renewing insurance contracts.AIG Property Casualty Operating Segment Changes..............................................................................................................................................................................................To align financial reporting with changes made during 2012 to the manner in which AIG’s chief operating decisionmakers review the businesses to assess performance and make decisions about resources to be allocated, certainproducts previously reported in Commercial Insurance were reclassified to Consumer Insurance. These revisions didnot affect the total AIG Property Casualty reportable segment results previously reported.In the fourth quarter of 2012, to increase the focus on the drivers of the losses and proactively mitigate reservedevelopment and legal costs, the management of certain environmental liability businesses written prior to 2004 wasmoved from Commercial Insurance to a separate claims organization. To align financial reporting with the internalmanagement changes, this environmental (1987-2004) business is reported in the Other category. These revisionsdid not affect our total reportable segment results previously reported.Sale of ILFC and Discontinued Operations Presentation..............................................................................................................................................................................................On December 9, 2012, AIG entered into an agreement to sell 80.1 percent of ILFC for approximately $4.2 billion incash, with an option for the purchaser to buy an additional 9.9 percent stake (the ILFC Transaction). The sale isexpected to close in 2013. At the closing of the transaction, in connection with the termination of intercompanyarrangements between AIG and ILFC, AIG will return $1.1 billion to ILFC. As a result, ILFC operating results, whichwere previously presented in the Aircraft Leasing segment, have been classified as discontinued operations in allperiods, and associated assets and liabilities have been classified as held-for-sale at December 31, 2012. SeeNote 4 to the Consolidated Financial Statements for further discussion...................................................................................................................................................................................................................................60 AIG 2012 Form 10-K