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ge 2008 annual report 71
notes to consolidated financial statements
Note 9.
Investment Securities
Investment securities comprise mainly investment-grade debt securities supporting obligations to annuitants and policyholders in our
run-off insurance operations and holders of guaranteed investment contracts.
2008 2007
Gross Gross Gross Gross
Amortized unrealized unrealized Estimated Amortized unrealized unrealized Estimated
December 31 (In millions) cost gains losses fair value cost gains losses fair value
GE
Debt —U.S. corporate $ 182 $ — $ — $ 182 $ 301 $ 23 $ — $ 324
Equity —available-for-sale 32 — (1) 31 21 3 (5) 19
214 — (1) 213 322 26 (5) 343
GECS
Debt
U.S. corporate 22,183 512 (2,477) 20,218 21,896 725 (669) 21,952
State and municipal 1,556 19 (94) 1,481 1,106 28 (8) 1,126
Residential mortgage-backed (a) 5,326 70 (1,052) 4,344 5,677 22 (225) 5,474
Commercial mortgage-backed 2,910 14 (788) 2,136 2,930 15 (49) 2,896
Asset-backed 2,881 1 (691) 2,191 2,307 3 (89) 2,221
Corporate —non-U.S. 1,441 14 (166) 1,289 1,489 47 (11) 1,525
Government —non-U.S. 1,300 61 (19) 1,342 1,082 70 (10) 1,142
U.S. government and federal agency 739 65 (100) 704 832 55 (37) 850
Retained interests (b) (c) 6,395 113 (152) 6,356 5,579 178 (57) 5,700
Equity
Available-for-sale 921 26 (160) 787 1,524 265 (120) 1,669
Trading 388 — — 388 386 — — 386
46,040 895 (5,699) 41,236 44,808 1,408 (1,275) 44,941
ELIMINATIONS (7) — 4 (3) (7) (1) — (8)
Total $46,247 $895 $(5,696) $41,446 $45,123 $1,433 $(1,280) $45,276
(a) Substantially collateralized by U.S. mortgages.
(b) Included $1,752 million and $2,227 million of retained interests at December 31, 2008 and 2007, respectively, accounted for in accordance with SFAS 155, Accounting for
Certain Hybrid Financial Instruments. See Note 30.
(c) Amortized cost and estimated fair value included $20 million and $25 million of trading securities at December 31, 2008 and 2007, respectively.