ITEM 8 / NOTE 7.
INVESTMENTS Maiden Lane III The FRBNY completed the liquidation of ML III assets during the third quarter of 2012 and substantially all of the sales proceeds have been distributed in accordance with the priority of payments of the transaction.
In 2012, we received total payments of approximately $8.5 billion, which included contractual and additional distributions and our original $5.0 billion equity interest in ML III.
In 2012, we purchased $7.1 billion of securities through the FRBNY’s auction of ML III assets.
Other Invested Assets The following table summarizes the carrying values of other invested assets:
## Table 0 ##
(a) Includes hedge funds, private equity funds, affordable housing partnerships and other investment partnerships.
(b) Net of accumulated depreciation of $469 million and $428 million in 2012 and 2011, respectively.
(c) Consist primarily of AIG Life and Retirement investments in aircraft equipment held in trusts.
Other Invested Assets Carried at Fair Value Certain hedge funds, private equity funds, affordable housing partnerships and other investment partnerships for which we have elected the fair value option are reported at fair value with changes in fair value recognized in Net investment income with the exception of DIB investments, for which such changes are reported in Other income.
Other investments in hedge funds, private equity funds, affordable housing partnerships and other investment partnerships in which our insurance operations do not hold aggregate interests sufficient to exercise more than minor influence over the respective partnerships are reported at fair value with changes in fair value recognized as a component of Accumulated other comprehensive income (loss).
These investments are subject to other-than-temporary impairment evaluation (see below for discussion on evaluating equity investments for other-than-temporary impairment).
The gross unrealized loss recorded in Accumulated other comprehensive income on such investments was $68 million and $269 million at December 31, 2012 and 2011, respectively, the majority of which pertains to investments in private equity funds and hedge funds that have been in continuous unrealized loss position for less than 12 months.
Other Invested Assets – Equity Method Investments We account for hedge funds, private equity funds, affordable housing partnerships and other investment partnerships using the equity method of accounting unless our interest is so minor that we may have virtually no influence over partnership operating and financial policies.
Under the equity method of accounting, our carrying value generally is our share of the net asset value of the funds or the partnerships, and changes in our share of the net asset values are recorded in Net investment income with the exception of DIB investments, for which such changes are reported in Other income.
In applying the equity method of accounting, we consistently use the most recently available financial information provided by the general partner or manager of each of these investments, which is one to three months prior to the end of our reporting period.
The financial statements of these investees are generally audited annually.
ITEM 8 / NOTE 12.
DERIVATIVES AND HEDGE ACCOUNTING designated as hedges of the change in fair value of foreign currency denominated available-for-sale securities attributable to changes in foreign exchange rates.
We previously designated certain interest rate swaps entered into by GCM with third parties as cash flow hedges of certain floating rate debt issued by ILFC, specifically to hedge the changes in cash flows on floating rate debt attributable to changes in the benchmark interest rate.
We de-designated such cash flow hedges in December 2012 subsequent to the announcement of the ILFC Transaction.
We use foreign currency denominated debt and cross-currency swaps as hedging instruments in net investment hedge relationships to mitigate the foreign exchange risk associated with our non-U.
S.  dollar functional currency foreign subsidiaries.
We assess the hedge effectiveness and measure the amount of ineffectiveness for these hedge relationships based on changes in spot exchange rates.
For the years ended December 31, 2012, 2011, and 2010 we recognized gains (losses) of $(74) million, $(13) million and $28 million, respectively, included in Foreign currency translation adjustment in Accumulated other comprehensive income related to the net investment hedge relationships.
A qualitative methodology is utilized to assess hedge effectiveness for net investment hedges, while regression analysis is employed for all other hedges.
The following table presents the effect of our derivative instruments in fair value hedging relationships in the Consolidated Statement of Operations:
## Table 1 ##
(a) Gains and losses recognized in earnings for the ineffective portion and amounts excluded from effectiveness testing, if any, are recorded in Net realized capital gains (losses).
(b) Includes $124 million and $149 million, for the years ended December 31, 2012 and 2011, respectively, representing the amortization of debt basis adjustment recorded in Other income and Net realized capital gains (losses) following the discontinuation of hedge accounting.
The following table presents the effect of our derivative instruments in cash flow hedging relationships in the Consolidated Statement of Operations:
## Table 2 ##
(a) Hedge accounting was discontinued in December 2012 subsequent to the announcement of the ILFC Transaction.
Gains and losses recognized in earnings are recorded in Income (loss) from discontinued operations.
Previously the effective portion of the change in fair value of a derivative qualifying as a cash flow hedge was recorded in Accumulated other comprehensive income until earnings were affected by the variability of cash flows in the hedged item.
Gains and losses reclassified from Accumulated other comprehensive income were previously recorded in Other income.
Gains or losses recognized in earnings on derivatives for the ineffective portion were previously recorded in Net realized capital gains (losses).
(b) Includes $19 million for the year ended December 2012, representing the reclassification from Accumulated other comprehensive income into earnings following the discontinuation of cash flow hedges of ILFC debt.
ITEM 6 / SELECTED FINANCIAL DATA The Selected Consolidated Financial Data should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations and the Consolidated Financial Statements and accompanying notes included elsewhere herein.
## Table 3 ##
(a) Comparability between 2010 and 2009 data is affected by the deconsolidation of AIA in the fourth quarter of 2010.
Book value per share, excluding Accumulated other comprehensive income (loss) is a non-GAAP measure.
See Item 7.
MD&A – Use of Non-GAAP Measures for additional information.
Comparability of 2010, 2009 and 2008 is affected by a one for twenty reverse stock split.
(b) Reduced by fourth quarter reserve strengthening charges of $4.2 billion and $2.2 billion in 2010 and 2009, respectively, related to the annual review of AIG Property Casualty loss and loss adjustment reserves.
(c) Amounts for periods after December 31, 2008 have been revised to reflect reclassification of income taxes from AOCI to additional paid in capital to correct the presentation of components of AIG Shareholders’ Equity.
See Note 1 to the Consolidated Financial Statements for additional information on the reclass.
(d) See Item 7.
MD&A – Results of Operations – AIG Property Casualty Operations for a reconciliation of the adjusted combined ratio.
Management’s Discussion and Analysis Business-Specific Limits.
The Firmwide Finance Committee sets asset and liability limits for each business and aged inventory limits for certain financial instruments as a disincentive to hold inventory over longer periods of time.
These limits are set at levels which are close to actual operating levels in order to ensure prompt escalation and discussion among business managers and managers in our independent control and support functions on a routine basis.
The Firmwide Finance Committee reviews and approves balance sheet limits on a quarterly basis and may also approve changes in limits on an ad hoc basis in response to changing business needs or market conditions.
Monitoring of Key Metrics.
We monitor key balance sheet metrics daily both by business and on a consolidated basis, including asset and liability size and composition, aged inventory, limit utilization, risk measures and capital usage.
We allocate assets to businesses and review and analyze movements resulting from new business activity as well as market fluctuations.
Scenario Analyses.
We conduct scenario analyses to determine how we would manage the size and composition of our balance sheet and maintain appropriate funding, liquidity and capital positions in a variety of situations: ‰ These scenarios cover short-term and long-term time horizons using various macro-economic and firm-specific assumptions.
We use these analyses to assist us in developing longer-term funding plans, including the level of unsecured debt issuances, the size of our secured funding program and the amount and composition of our equity capital.
We also consider any potential future constraints, such as limits on our ability to grow our asset base in the absence of appropriate funding.
‰ Through our Internal Capital Adequacy Assessment Process (ICAAP), CCAR, the stress tests we are required to conduct under the Dodd-Frank Act, and our resolution and recovery planning, we further analyze how we would manage our balance sheet and risks through the duration of a severe crisis and we develop plans to access funding, generate liquidity, and/or redeploy or issue equity capital, as appropriate.
Balance Sheet Allocation In addition to preparing our consolidated statements of financial condition in accordance with U. S.  GAAP, we prepare a balance sheet that generally allocates assets to our businesses, which is a non-GAAP presentation and may not be comparable to similar non-GAAP presentations used by other companies.
We believe that presenting our assets on this basis is meaningful because it is consistent with the way management views and manages risks associated with the firm’s assets and better enables investors to assess the liquidity of the firm’s assets.
The table below presents a summary of this balance sheet allocation.

<table><tr><td>  December 31, <i>(in millions)</i> </td><td>  2012 </td><td>2011 </td></tr><tr><td>Alternative investments<sup>(a)</sup></td><td>$18,990</td><td>$18,793</td></tr><tr><td>Mutual funds</td><td>128</td><td>258</td></tr><tr><td>Investment real estate<sup>(b)</sup></td><td>3,195</td><td>2,778</td></tr><tr><td>Aircraft asset investments<sup>(c)</sup></td><td>984</td><td>1,100</td></tr><tr><td>Life settlement contracts</td><td>4,357</td><td>4,006</td></tr><tr><td>Retained interest in AIA</td><td>–</td><td>12,367</td></tr><tr><td>All other investments</td><td>1,463</td><td>1,442</td></tr><tr><td>Total</td><td>$29,117</td><td>$40,744</td></tr></table>
<table><tr><td>  Years Ended December 31, <i>(in millions)</i> </td><td colspan="2">2012</td><td>2011</td></tr><tr><td>Interest rate contracts:<sup>(a)</sup></td><td></td><td></td><td></td></tr><tr><td>Loss recognized in earnings on derivatives</td><td>  $</td><td>–</td><td>$-3</td></tr><tr><td>Gain recognized in earnings on hedged items<sup>(b)</sup></td><td></td><td>124</td><td>152</td></tr><tr><td>Foreign exchange contracts:<sup>(a)</sup></td><td></td><td></td><td></td></tr><tr><td>Loss recognized in earnings on derivatives</td><td></td><td>-2</td><td>-1</td></tr><tr><td>Gain recognized in earnings on hedged items</td><td></td><td>2</td><td>1</td></tr></table>
<table><tr><td>  Years Ended December 31, <i>(in millions)</i> </td><td>2012</td><td>2011</td></tr><tr><td>Interest rate contracts<sup>(a)</sup>:</td><td></td><td></td></tr><tr><td>Gain (loss) recognized in OCI on derivatives</td><td>$-2</td><td>$-5</td></tr><tr><td>Gain (loss) reclassified from Accumulated OCI into earnings<sup>(b)</sup></td><td>-35</td><td>-55</td></tr></table>
<table><tr><td> </td><td colspan="5">Years Ended December 31,</td></tr><tr><td><i>(in millions, except per share data)</i> </td><td>2012</td><td>2011</td><td>2010 (a)</td><td>2009 (a)</td><td>2008</td></tr><tr><td> Revenues:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Premiums</td><td>$38,011</td><td>$38,990</td><td>$45,319</td><td>$48,583</td><td>$60,147</td></tr><tr><td>Policy fees</td><td>2,791</td><td>2,705</td><td>2,710</td><td>2,656</td><td>2,990</td></tr><tr><td>Net investment income</td><td>20,343</td><td>14,755</td><td>20,934</td><td>18,992</td><td>10,453</td></tr><tr><td>Net realized capital gains (losses)</td><td>929</td><td>701</td><td>-716</td><td>-3,787</td><td>-50,426</td></tr><tr><td>Other income</td><td>3,582</td><td>2,661</td><td>4,582</td><td>3,729</td><td>-34,941</td></tr><tr><td> Total revenues</td><td>65,656</td><td>59,812</td><td>72,829</td><td>70,173</td><td>-11,777</td></tr><tr><td> Benefits, claims and expenses:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Policyholder benefits and claims incurred</td><td>31,977</td><td>33,450</td><td>41,392</td><td>45,314</td><td>45,447</td></tr><tr><td>Interest credited to policyholder account balances</td><td>4,362</td><td>4,467</td><td>4,487</td><td>4,611</td><td>5,582</td></tr><tr><td>Amortization of deferred acquisition costs</td><td>5,709</td><td>5,486</td><td>5,821</td><td>6,670</td><td>6,425</td></tr><tr><td>Other acquisition and insurance expenses</td><td>9,235</td><td>8,458</td><td>10,163</td><td>9,815</td><td>14,783</td></tr><tr><td>Interest expense</td><td>2,319</td><td>2,444</td><td>6,742</td><td>13,237</td><td>14,440</td></tr><tr><td>Net loss on extinguishment of debt</td><td>9</td><td>2,847</td><td>104</td><td>–</td><td>–</td></tr><tr><td>Net (gain) loss on sale of properties and divested businesses</td><td>2</td><td>74</td><td>-19,566</td><td>1,271</td><td>–</td></tr><tr><td>Other expenses</td><td>2,721</td><td>2,470</td><td>3,439</td><td>5,282</td><td>5,842</td></tr><tr><td> Total benefits, claims and expenses</td><td>56,334</td><td>59,696</td><td>52,582</td><td>86,200</td><td>92,519</td></tr><tr><td>Income (loss) from continuing operations before income taxes<sup>(b)</sup></td><td>9,322</td><td>116</td><td>20,247</td><td>-16,027</td><td>-104,296</td></tr><tr><td>Income taxes expense (benefit)</td><td>1,570</td><td>-19,424</td><td>6,993</td><td>-2,551</td><td>-8,097</td></tr><tr><td>Income (loss) from continuing operations</td><td>7,752</td><td>19,540</td><td>13,254</td><td>-13,476</td><td>-96,199</td></tr><tr><td>Income (loss) from discontinued operations, net of taxes</td><td>-4,052</td><td>1,790</td><td>-969</td><td>3,750</td><td>-6,683</td></tr><tr><td> Net income (loss)</td><td>3,700</td><td>21,330</td><td>12,285</td><td>-9,726</td><td>-102,882</td></tr><tr><td> Net income (loss) attributable to AIG</td><td>3,438</td><td>20,622</td><td>10,058</td><td>-8,362</td><td>-101,784</td></tr><tr><td> Income (loss) per common share attributable to AIG common shareholders</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Basic and diluted</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Income (loss) from continuing operations</td><td>4.44</td><td>10.03</td><td>16.50</td><td>-98.52</td><td>-725.89</td></tr><tr><td>Income (loss) from discontinued operations</td><td>-2.40</td><td>0.98</td><td>-1.52</td><td>27.15</td><td>-49.91</td></tr><tr><td>Net income (loss) attributable to AIG</td><td>2.04</td><td>11.01</td><td>14.98</td><td>-71.37</td><td>-775.80</td></tr><tr><td>Dividends declared per common share</td><td>–</td><td>–</td><td>–</td><td>–</td><td>8.40</td></tr><tr><td> Year-end balance sheet data:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Total investments</td><td>375,824</td><td>410,438</td><td>410,412</td><td>601,165</td><td>636,912</td></tr><tr><td>Total assets</td><td>548,633</td><td>553,054</td><td>675,573</td><td>838,346</td><td>848,552</td></tr><tr><td>Long-term debt</td><td>48,500</td><td>75,253</td><td>106,461</td><td>136,733</td><td>177,485</td></tr><tr><td>Total liabilities</td><td>449,630</td><td>442,138</td><td>568,363</td><td>748,550</td><td>797,692</td></tr><tr><td>Total AIG shareholders' equity</td><td>98,002</td><td>101,538</td><td>78,856</td><td>60,585</td><td>40,844</td></tr><tr><td>Total equity</td><td>98,669</td><td>102,393</td><td>106,776</td><td>88,837</td><td>48,939</td></tr><tr><td>Book value per share<sup>(a)</sup></td><td>66.38</td><td>53.53</td><td>561.40</td><td>448.54</td><td>303.71</td></tr><tr><td>Book value per share, excluding Accumulated other comprehensive income (loss)<sup>(a)</sup><sup>(c)</sup></td><td>57.87</td><td>50.11</td><td>498.25</td><td>400.90</td><td>353.97</td></tr><tr><td>AIG Property Casualty combined ratio<sup>(d)</sup></td><td>108.6</td><td>108.8</td><td>116.8</td><td>108.4</td><td>102.1</td></tr><tr><td> Other data (from continuing operations):</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Other-than-temporary impairments</td><td>1,167</td><td>1,280</td><td>3,039</td><td>6,696</td><td>41,867</td></tr><tr><td>Adjustment to federal and foreign deferred tax valuation allowance</td><td>-1,907</td><td>-18,307</td><td>1,361</td><td>2,986</td><td>22,172</td></tr><tr><td>Amortization of prepaid commitment fee</td><td>–</td><td>49</td><td>3,471</td><td>8,359</td><td>9,279</td></tr><tr><td>Catastrophe-related losses</td><td>$2,652</td><td>$3,307</td><td>$1,076</td><td>$53</td><td>$1,840</td></tr></table>

Question: In which year is Net realized capital gains (losses) income positive?
Answer: 2012 2011