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84 GE 2010 ANNUAL REPORT
    
Note 3.
Investment Securities
Substantially all of our investment securities are classified as available-for-sale. These comprise mainly investment grade debt securities
supporting obligations to annuitants and policyholders in our run-off insurance operations and holders of guaranteed investment con-
tracts (GICs) in Trinity (which ceased issuing new investment contracts beginning in the first quarter of 2010), and investment securities
held at our global banks. We do not have any securities classified as held-to-maturity.
2010 2009
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 $ 1 $ — $ — $ 1 $ 12 $ 4 $ (1) $ 15
Equity—available-for-sale 18 — — 18 14 1 — 15
19 — — 19 26 5 (1) 30
GECS
Debt
U.S. corporate 21,224 1,582 (234) 22,572 22,413 956 (728) 22,641
State and municipal 2,904 46 (226) 2,724 2,621 42 (269) 2,394
Residential mortgage-backed (a) 3,084 102 (377) 2,809 4,005 79 (766) 3,318
Commercial mortgage-backed 2,883 169 (128) 2,924 3,057 89 (441) 2,705
Asset-backed 3,407 16 (193) 3,230 2,990 48 (304) 2,734
Corporate—non-U.S. 2,880 118 (131) 2,867 2,003 75 (55) 2,023
Government—non-U.S. 2,242 82 (58) 2,266 2,621 57 (27) 2,651
U.S. government and federal agency 3,358 57 (47) 3,368 2,526 46 — 2,572
Retained interests
(b) 55 10 (26) 39 8,479 392 (40) 8,831
Equity
Available-for-sale 500 213 (8) 705 489 242 (5) 726
Trading 417 — — 417 720 — — 720
42,954 2,395 (1,428) 43,921 51,924 2,026 (2,635) 51,315
ELIMINATIONS (2) — — (2) (2) — — (2)
Total $42,971 $2,395 $(1,428) $43,938 $51,948 $2,031 $(2,636) $51,343
(a) Substantially collateralized by U.S. mortgages. Of our total residential mortgage-backed securities (RMBS) portfolio at December 31, 2010, $1,318 million relates to securities
issued by government-sponsored entities and $1,491 million relates to securities of private label issuers. Securities issued by private label issuers are collateralized primarily by
pools of individual direct mortgage loans of financial institutions.
(b) Included $1,918 million of retained interests at December 31, 2009 accounted for at fair value in accordance with ASC 815, Derivatives and Hedging. See Note 24.
The fair value of investment securities decreased to $43,938 million at December 31, 2010, from $51,343 million at December 31, 2009,
primarily driven by a decrease in retained interests that were consolidated as a result of our adoption of ASU 2009-16 & 17 and maturities,
partially offset by improved market conditions.
The following tables present the gross unrealized losses and estimated fair values of our available-for-sale investment securities.
2010
2009
In loss position for
Less than 12 months 12 months or more Less than 12 months 12 months or more
Gross Gross Gross Gross
Estimated unrealized Estimated unrealized Estimated unrealized Estimated unrealized
December 31 (In millions) fair value losses (a) fair value losses
(a) fair value losses fair value losses
Debt
U.S. corporate $2,181 $ (78) $ 1,519 $ (156) $2,773 $ (76) $4,786 $ (653)
State and municipal 920 (31) 570 (195) 937 (141) 575 (128)
Residential mortgage-backed 102 (3) 1,024 (374) 118 (14) 1,678 (752)
Commercial mortgage-backed 174 (2) 817 (126) 167 (5) 1,296 (436)
Asset-backed 113 (5) 910 (188) 126 (11) 1,339 (293)
Corporate—non-U.S. 386 (11) 804 (120) 371 (18) 536 (37)
Government—non-U.S. 661 (6) 107 (52) 325 (2) 224 (25)
U.S. government and federal agency 1,822 (47) — — — — — —
Retained interests — — 34 (26) 208 (16) 27 (24)
Equity 49 (8) — — 92 (2) 10 (3)
Total $6,408 $(191) $ 5,785 $(1,237) $5,117 $(285) $10,471 $(2,351)
(a) At December 31, 2010, other-than-temporary impairments previously recognized through other comprehensive income (OCI) on securities still held amounted to $(478) million, of
which $(368) million related to RMBS. Gross unrealized losses related to those securities at December 31, 2010, amounted to $(328) million, of which $(232) million related to
RMBS.