American International Group, Inc.  and Subsidiaries Management’s Discussion and Analysis of Financial Condition and Results of Operations Continued
## Table 0 ##
(a) Includes the effect of an out of period UCITS adjustment in 2006, which increased net investment income by $240 million and operating income by $169 million.
(b) Includes real estate income, income on non-partnership invested assets, securities lending and Foreign Life Insurance & Retirement Services’ equal share of the results of AIG Credit Card Company (Taiwan).
(c) Relates principally to assets held in various trading securities accounts that do not qualify for separate account treatment under SOP 03-1.
These amounts are principally offset by an equal change included in incurred policy losses and benefits.
(d) Includes call and tender income.2007 and 2006 Comparison Net investment income increased $2.3 billion,or 12 percent in2007 compared to 2006 as the invested asset base grew forfixed maturities，equity securities and mortgage and other loans.
ln addition,yield enhancement activity increased compared to2006.
Net investment income from ucITs in 2006 included a$240 million out of period increase.
Policyholder trading gains in-creased in 2007 compared to 2006 principally due to an increasein assets under management，partially offset by trading accountlosses of $150 million on certain investment-linked products inthe U. K.  Net investment income for certain operations includeinvestments in structured notes linked to emerging marketsovereign debt that incorporates both interest rate risk and currency risk.
These investments generated income of $45 millionin 2007 compared to losses of $8 million in 2006.
In addition,period to period comparisons of investment income for some investment activities,par ticularly partnership income,are affectedby yield enhancement activity.
See Invested Assets for furtherinformation.
AIG generates income tax credits as a result of investing insynthetic fuel production (synfuels) related to the partnershipincome (loss) shown in the above table and records those benefits separately from segment operating results in its consoli-dated provision for income taxes.
The amounts of those incometax credits were $84 million，$127 million and $203 million for2007,2006 and 2005,respectively.
These tax credits will nolonger be generated after December 31,2007.
Synfuel productionhas ceased and the investments have been fully written off as ofDecember 31,2007.2006 and 2005 Comparison Net investment income increased 7 percent in 2006 compared to2005 as income from fixed maturities,equity securities and mortgage and other loans income rose as the underlying investedasset base grew.
Net investment income in 2006 also includedthe out of period increase relating to ucITS of $240 million.
American International Group, Inc.  and Subsidiaries majority of the losses would be incurred in the first year.
Themodeled losses calculated were based on 2006 policy datarepresenting approximately 92 percent of AIG's individual life,group life and credit life books of business, net of reinsurance.
This estimate does not include claims that could be made underother policies,such as business interruption or general liabilitypolicies,and does not reflect estimates for losses resulting fromdisruption of AlG's own business operations or asset losses thatmay arise out of such a pandemic.
The model used to generatethis estimate has only recently been developed.
The reasonable-ness of the model and its underlying assumptions cannot readilybe verified by reference to comparable historical events.
As are sult,AlG's actual losses from a pandemic influenza outbreakare likely to vary significantly from those predicted by the model.
Financial Services AIG's Financial Services subsidiaries engage in diversified activi-ties including aircraft and equipment leasing, capital markets,consumer finance and insurance premium finance.
Capital Markets The Capital Markets operations of AlG are conducted primarilythrough AIGFP, which engages as principal in standard and customized interest rate, currency,equity,commodity, energy andcredit products with top-tier corporations, financial institutions,governments，agencies，institutional investors and high-net-worthindividuals throughout the world.
The senior management of AlG defines the policies andestablishes general operating parameters for Capital Marketsoperations.
AIG's senior management has established variousoversight committees to monitor on an ongoing basis the variousfinancial market，operational and credit risk attendant to theCapital Markets operations.
The senior management of AIGFPreports the results of its operations to and reviews futurestrategies with AIG's senior manage ment.
AIGFP actively manages its exposures to limit potential eco-nomic losses,while maximizing the rewards afforded by thesebusiness opportunities even though some products or derivativesmay result in operating income volatility.
lIn doing so,AIGFPmustcontinually manage a variety of exposures including credit,market,liq uidity, operational and legal risks.
Derivative Transactions A counterparty may default on any obligation to AIG,including aderivative contract.
Credit risk is a consequence of extending credit and/or carrying trading and invesstment positions.
Credit riskexists for a derivative contract when that contract has a positive fair value to AIG.
The maximum potential exposure will increase ordecrease during the life of the derivative commitments as a  function of maturity and market conditions.
To help manage thisrisk，AIGFP's credit department operates within the guidelines setby the CRC.
Transactions which fall outside these pre-establishedguidelines require the specific approval of the CRC.
lt is alsoAIG's policy to establish reserves for potential credit impairmentwhen necessary.
function of maturity and market conditions.
To help manage thisrisk，AIGFP's credit department operates within the guidelines setby the CRC.
Transactions which fall outside these pre-establishedguidelines require the specific approval of the CRC.
lt is alsoAIG's policy to establish reserves for potential credit impairmentwhen necessary.
relating to its outstanding financial derivative transactions.
AIGFPrequires credit enhancements in connection with specific transac-tions based on,among other things, the creditworthiness of thecounterparties,and the transaction's size and maturity.
Further-more,AIGFP generally seeks to enter into agreements that havethe benefit of set-off and close-out netting provisions.
Theseprovisions provide that, in the case of an early termination of atransaction,AIGFP can setoff its receivables from a counterpartyagainst its payables to the same counterparty arising out of allcovered transactions.
As a result, where a legally enforce ablenetting agreement exists, the fair value of the transaction with thecounterparty represents the net sum of estimated positive fairvalues.
The fair value of AIGFP's interest rate, currency, commod-ity and equity swaps，options，swaptions, and forward commit-ments,futures, and forward contracts approximated $17.13 billion at December 31,2007 and $19.61 billion at December 31，2006.
Where applicable，these amounts have beendetermined in accordance with the respective master netting agreements.
AIGFP evaluates the counterparty credit quality by reference toratings from rating agencies or,where such ratings are not available,by internal analysis consistent with the risk ratingpolicies of the CRC.
In addition,AIGFP's credit approval processinvolves pre-set counterparty and country credit exposure limitsand, for particularly credit-intensive transactions,requires approvalfrom the CRC.
AIG estimates that the average credit rating of Capital Markets derivatives counterparties, measured by referenceto the fair value of its derivative portfolio as a whole, is equivalentto the AA rating category.
At December 31, 2007 and 2006, the fair value of Capital Markets derivatives portfolios by counterparty credit rating was as follows:
## Table 1 ##
Credit Derivatives AIGFP enters into credit derivative transactions in the ordinarycourse of its business.
The majority of AIGFP's credit derivativesrequire AlGFP to provide credit protection on a designated AIGFP enters into credit derivative transactions in the ordinarycourse of its business.
The majority of AIGFP's credit derivativesrequire AlGFP to provide credit protection on a designated
American International Group, Inc.  and Subsidiaries Notes to Consolidated Financial Statements Continued 2.
Segment Information Continued The following table summarizes AIG’s Financial Services operations by major internal reporting unit for the years ended December 31, 2007, 2006 and 2005:
## Table 2 ##
(a) Both revenues and operating income include gains (losses) from hedging activities that did not qualify for hedge accounting treatment under FAS 133, including the related foreign exchange gains and losses.
In 2007, 2006 and 2005, the effect was $(37) million, $(73) million and $93 million, respectively.
These amounts result primarily from interest rate and foreign currency derivatives that are effective economic hedges of borrowings.
In the second quarter of 2007, ILFC began applying hedge accounting to most of its derivatives hedging interest rate and foreign exchange risks associated with its floating rate and foreign currency denominated borrowings.
(b) Both revenues and operating income include gains (losses) from hedging activities that did not qualify for hedge accounting treatment under FAS 133, including the related foreign exchange gains and losses.
In 2007, 2006 and 2005, the effect was $211 million, $(1.82) billion and $2.01 billion, respectively.
The year ended December 31, 2007 includes a $380 million out of period charge to reverse net gains recognized on transfers of available for sale securities among legal entities consolidated within AIGFP.
The year ended December 31, 2006 includes an out of period charge of $223 million related to the remediation of the material weakness in internal control over the accounting for certain derivative transactions under FAS 133.
In the first quarter of 2007, AIGFP began applying hedge accounting for certain of its interest rate swaps and foreign currency forward contracts hedging its investments and borrowings.
(c) Both revenues and operating income include gains (losses) from hedging activities that did not qualify for hedge accounting treatment under FAS 133, including the related foreign exchange gains and losses.
In 2007, 2006 and 2005, the effect was $(20) million, $(94) million and $75 million, respectively.
These amounts result primarily from interest rate and foreign currency derivatives that are effective economic hedges of borrowings.
In the second quarter of 2007, AGF began applying hedge accounting to most of its derivatives hedging interest rate and foreign exchange risks associated with its floating rate and foreign currency denominated borrowings.
(d) Represents primarily the sum of aircraft lease rentals from ILFC, AIGFP hedged financial positions entered into in connection with counterparty transactions, the effect of hedging activities that did not qualify for hedge accounting treatment under FAS 133, including the related foreign exchange gains and losses, and finance charges from consumer finance operations.
(e) Interest expense for the Capital Markets business is included in Revenues above and in Other income in the consolidated statement of income.
(f) Both revenues and operating income (loss) include an unrealized market valuation loss of $11.5 billion on AIGFP’s super senior credit default swap portfolio and an other-than-temporary impairment charge of $643 million on AIGFP’s available for sale investment securities reported in other income.
(g) Includes a pre-tax charge of $178 million in connection with domestic consumer finance’s mortgage banking activities.
(6) On June 21, 2002, one of the lenders purchased the other participant’s interest in the loan.
At the same time, the loan was extended for one year, with certain modifications, including (i) making the risk of a loss due to terrorism (as defined) not covered by insurance recourse to the Company and (ii) the granting of two 1-year renewal options to the Company.
(7) On November 25, 2003, the Company completed an offering of $200,000, aggregate principal amount of 4.75% senior unsecured notes due December 1, 2010.
Interest on the notes is payable semi-annually on June 1st and December 1st, commencing in 2004.
The notes were priced at 99.869% of their face amount to yield 4.772%.
The notes contain the same financial covenants that are in the Company’s notes issued in June 2002, except the maximum ratio of secured debt to total assets is now 50% (previously 55%).
The net proceeds of approximately $198,500 were used primarily to repay existing mortgage debt.
(8) On July 3, 2003, the Company entered into a new $600,000 unsecured revolving credit facility which has replaced its $1 billion unsecured revolving credit facility which was to mature in July 2003.
The new facility has a three-year term, a one-year extension option and bears interest at LIBOR plus .65%.
The Company also has the ability under the new facility to seek up to $800,000 of commitments during the facility’s term.
The new facility contains financial covenants similar to the prior facility.
The net carrying amount of properties collateralizing the notes and mortgages amounted to $4,557,065,000 at December 31, 2003.
As at December 31, 2003, the principal repayments required for the next five years and thereafter are as follows:

<table><tr><td><i>(in millions)</i></td><td> 2007</td><td>2006</td><td>2005</td></tr><tr><td>Total:</td><td></td><td></td><td></td></tr><tr><td>Fixed maturities, including short-term investments</td><td>$16,750</td><td>$15,909</td><td>$15,119</td></tr><tr><td>Equity securities</td><td>161</td><td>112</td><td>61</td></tr><tr><td>Interest on mortgage and other loans</td><td>1,423</td><td>1,252</td><td>1,175</td></tr><tr><td>Partnership income — excluding Synfuels</td><td>823</td><td>599</td><td>416</td></tr><tr><td>Partnership loss — Synfuels</td><td>-101</td><td>-107</td><td>-143</td></tr><tr><td>Unit investment trusts<i><sup>(a)</sup></i></td><td>442</td><td>264</td><td>4</td></tr><tr><td>Other<i><sup>(b)</sup></i></td><td>394</td><td>350</td><td>413</td></tr><tr><td>Total investment income before policyholder income and trading gains</td><td>19,892</td><td>18,379</td><td>17,045</td></tr><tr><td>Policyholder investment income and trading gains<i><sup>(c)</sup></i></td><td>2,903</td><td>2,017</td><td>2,021</td></tr><tr><td>Total investment income</td><td>22,795</td><td>20,396</td><td>19,066</td></tr><tr><td>Investment expenses</td><td>454</td><td>372</td><td>389</td></tr><tr><td>Net investment income<i><sup>(d)</sup></i></td><td>$22,341</td><td>$20,024</td><td>$18,677</td></tr></table>
<table><tr><td><i>(in millions)</i></td><td> 2007</td><td>2006</td></tr><tr><td>Rating:</td><td></td><td></td></tr><tr><td>AAA</td><td>$5,069</td><td>$5,465</td></tr><tr><td>AA</td><td>5,166</td><td>8,321</td></tr><tr><td>A</td><td>4,796</td><td>3,690</td></tr><tr><td>BBB</td><td>1,801</td><td>2,032</td></tr><tr><td>Below investment grade</td><td>302</td><td>99</td></tr><tr><td>Total</td><td>$17,134</td><td>$19,607</td></tr></table>
<table><tr><td></td><td colspan="7">Financial Services</td></tr><tr><td></td><td colspan="4"></td><td>Total</td><td>Consolidation</td><td>Total</td></tr><tr><td></td><td>Aircraft</td><td>Capital</td><td>Consumer</td><td></td><td>Reportable</td><td>and</td><td>Financial</td></tr><tr><td><i>(in millions)</i></td><td>Leasing<i><sup>(a)</sup></i></td><td>Markets (b)</td><td>Finance<i><sup>(c)</sup></i></td><td>Other</td><td>Segment</td><td>Elimination</td><td>Services</td></tr><tr><td> 2007</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Total revenues<i><sup>(d)(e)(f)(g)</sup></i></td><td>$4,694</td><td>$-9,979</td><td>$3,655</td><td>$1,471</td><td>$-159</td><td>$-1,150</td><td>$-1,309</td></tr><tr><td>Interest expense<i><sup>(e)</sup></i></td><td>1,650</td><td>4,644</td><td>1,437</td><td>63</td><td>7,794</td><td>—</td><td>7,794</td></tr><tr><td>Operating income (loss)<i><sup>(e)(f)(g)</sup></i></td><td>873</td><td>-10,557</td><td>171</td><td>-2</td><td>-9,515</td><td>—</td><td>-9,515</td></tr><tr><td>Depreciation expense</td><td>1,751</td><td>24</td><td>41</td><td>15</td><td>1,831</td><td>—</td><td>1,831</td></tr><tr><td>Capital expenditures</td><td>4,164</td><td>21</td><td>62</td><td>322</td><td>4,569</td><td>—</td><td>4,569</td></tr><tr><td>Year-end identifiable assets</td><td>44,970</td><td>115,487</td><td>36,822</td><td>17,357</td><td>214,636</td><td>-10,742</td><td>203,894</td></tr><tr><td>2006</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Total revenues<i><sup>(d)(e)</sup></i></td><td>$4,082</td><td>$-186</td><td>$3,587</td><td>$320</td><td>$7,803</td><td>$-26</td><td>$7,777</td></tr><tr><td>Interest expense<i><sup>(e)</sup></i></td><td>1,442</td><td>3,215</td><td>1,303</td><td>108</td><td>6,068</td><td>-63</td><td>6,005</td></tr><tr><td>Operating income (loss)</td><td>578</td><td>-873</td><td>668</td><td>10</td><td>383</td><td>—</td><td>383</td></tr><tr><td>Depreciation expense</td><td>1,584</td><td>19</td><td>41</td><td>11</td><td>1,655</td><td>—</td><td>1,655</td></tr><tr><td>Capital expenditures</td><td>6,012</td><td>15</td><td>52</td><td>199</td><td>6,278</td><td>—</td><td>6,278</td></tr><tr><td>Year-end identifiable assets</td><td>41,975</td><td>121,243</td><td>32,702</td><td>12,368</td><td>208,288</td><td>-5,803</td><td>202,485</td></tr><tr><td>2005</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Total revenues<i><sup>(d)(e)</sup></i></td><td>$3,668</td><td>$3,260</td><td>$3,563</td><td>$206</td><td>$10,697</td><td>$-20</td><td>$10,677</td></tr><tr><td>Interest expense<i><sup>(e)</sup></i></td><td>1,125</td><td>3,033</td><td>1,005</td><td>201</td><td>5,364</td><td>-200</td><td>5,164</td></tr><tr><td>Operating income</td><td>769</td><td>2,661</td><td>922</td><td>72</td><td>4,424</td><td>—</td><td>4,424</td></tr><tr><td>Depreciation expense</td><td>1,384</td><td>20</td><td>38</td><td>5</td><td>1,447</td><td>—</td><td>1,447</td></tr><tr><td>Capital expenditures</td><td>6,193</td><td>3</td><td>54</td><td>50</td><td>6,300</td><td>—</td><td>6,300</td></tr><tr><td>Year-end identifiable assets</td><td>37,515</td><td>90,090</td><td>30,704</td><td>7,984</td><td>166,293</td><td>-4,374</td><td>161,919</td></tr></table>

Question: In what year is Operating income of capital markets positive? (in year)
Answer: 2005