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[ 84 ]
notes to consolidated fi nancial statements
american express company
AVAIL ABLE-FOR-SALE INVESTMENTS
The following is a summary of investments classified as Available-for-Sale at December 31:
2006 2005
(Millions) Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Fair
Value Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Fair
Value
State and municipal obligations $6,678 $195 $(10)$6,863 $ 6,832 $ 293 $ (5) $ 7,120
U.S. Government and agencies
obligations 5,082 10 (15) 5,077 5,080 1 (48) 5,033
Mortgage and other asset-backed
securities 3,858 8 (75) 3,791 3,900 13 (75) 3,838
Corporate debt securities 2,539 17 (44) 2,512 3,170 79 (47) 3,202
Foreign government bonds and
obligations 688 3 (11) 680 718 7 (9) 716
Other 1,773 3 (4) 1,772 1,184 10 — 1,194
Tota l $20,618 $236 $(159) $20,695 $20,884 $ 403 $ (184) $21,103
The following tables provide 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, 2006
and 2005:
As of December 31, 2006
(Millions) Less than 12 months 12 months or more Total
Description of Securities
Fair
Value
Gross
Unrealized
Losses
Fair
Value
Gross
Unrealized
Losses
Fair
Value
Gross
Unrealized
Losses
State and municipal obligations $ 818 $ (9) $ 23 $ (1) $ 841 $ (10)
U.S. Government and agencies obligations 1,522 (3) 1,537 (12) 3,059 (15)
Mortgage and other asset-backed securities 345 (2) 2,518 (73) 2,863 (75)
Corporate debt securities 441 (5) 1,511 (39) 1,952 (44)
Foreign government bonds and obligations 269 (1) 174 (10) 443 (11)
Other 191 (4) 16 — 207 (4)
Tota l $3,586 $(24)$5,779 $(135)$9,365 $(159)
As of December 31, 2005
(Millions) Less than 12 months 12 months or more Total
Description of Securities
Fair
Value
Gross
Unrealized
Losses
Fair
Value
Gross
Unrealized
Losses
Fair
Value
Gross
Unrealized
Losses
State and municipal obligations $ 392 $ (4) $ 19 $ (1) $ 411 $ (5)
U.S. Government and agencies obligations 1,716 (17) 2,893 (31) 4,609 (48)
Mortgage and other asset-backed securities 1,803 (31) 1,298 (44) 3,101 (75)
Corporate debt securities 750 (15) 821 (32) 1,571 (47)
Foreign government bonds and obligations 283 (2) 58 (7) 341 (9)
Other 10— 6—16—
Total $ 4,954 $ (69) $ 5,095 $ (115) $ 10,049 $ (184)