American Express 2003 Annual Report Download - page 88

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The following table provides information about Available-for-Sale investments with gross unrealized losses and the length
of time that individual securities have been in a continuous unrealized loss position as of December 31, 2003:
(Millions) Less than 12 months 12 months or more Total
Fair Unrealized Fair Unrealized Fair Unrealized
Description of Securities Value Losses Value Losses Value Losses
Corporate debt securities $4,901 $ (102) $ 90 $ (8) $ 4,991 $ (110)
Mortgage and other asset-
backed securities 6,216 (81) 30 (3) 6,246 (84)
State and municipal obligations 223 (5) 2 — 225 (5)
Foreign government bonds
and obligations 164 (3) — — 164 (3)
U.S. Go ve rnment and
agencies obligations 9——— 9—
Other 13 (6) 35 (3) 48 (9)
Total $11,526 $ (197) $ 157 $ (14) $ 11,683 $ (211)
Note: Excludes structured investments that are accounted for pursuant to EITF 99-20, and are therefore outside the scope of EITF 03-1. At December 31, 2003, such investments had gross
unrealized losses of $60 million.
Approximately 1,176 investment positions were in an unrealized loss position as of December 31, 2003. The gross unreal-
ized losses on these securities are attributable to a number of factors including changes in interest rates and credit spreads
and specific credit events associated with individual issuers. As part of its ongoing monitoring process, management
has concluded that none of these securities are other-than-temporarily impaired at December 31, 2003. The Company
has the ability and intent to hold these securities for a time sufficient to recover its amortized cost. See the Investments
section of Note 1 for information regarding the Company’s policy for determining when an investment’s decline in value is
other-than-temporary.
The following is a distribution of investments classified as Available-for-Sale by maturity as of December 31, 2003:
(Millions) Cost Fair Value
Due within 1 year $2,840 $ 2,866
Due after 1 year through 5 years 10,192 10,606
Due after 5 years through 10 years 13,237 13,741
Due after 10 years 7,747 8,107
34,016 35,320
Mortgage and other asset-backed securities 16,674 16,869
Equity securities 96 89
Total $50,786 $ 52,278
Mortgage and other asset-backed securities primarily include GNMA, FNMA and FHLMC securities at December 31, 2003
and 2002.
The table below includes purchases, sales and maturities of investments classified as Available-for-Sale for the years ended
December 31:
(Millions) 2003 2002
Purchases $29,618 $22,692
Sales $14,743 $12,321
Maturities $11,156 $6,229
(p.86_axp_ notes to consolidated financial statements)