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GE 2013 ANNUAL REPORT 89
    
Note 3.
Investment Securities
Substantially all of our investment securities are classifi ed as available-for-sale. These comprise mainly investment-grade debt securities
supporting obligations to annuitants and policyholders in our run-off insurance operations and supporting obligations to holders of
guaranteed investment contracts (GICs) in Trinity and investments held in our CLL business collateralized by senior secured loans of
high-quality, middle-market companies in a variety of industries. We do not have any securities classifi ed as held-to-maturity.
2013 2012
December 31 (In millions)
Amortized
cost
Gross
unrealized
gains
Gross
unrealized
losses
Estimated
fair value
Amortized
cost
Gross
unrealized
gains
Gross
unrealized
losses
Estimated
fair value
GE
Debt
U.S. corporate $ 21 $ 14 $ — $ 35 $ 39 $ — $ — $ 39
Corporate—non-U.S. 13 — (1) 12 6 — — 6
Equity
Available-for-sale 302 9 (41) 270 26 — — 26
Trading 6 — — 6 3 — — 3
342 23 (42) 323 74 — — 74
GECC
Debt
U.S. corporate 19,600 2,323 (217) 21,706 20,233 4,201 (302) 24,132
State and municipal 4,245 235 (191) 4,289 4,084 575 (113) 4,546
Residential mortgage-backed (a) 1,819 139 (48) 1,910 2,198 183 (119) 2,262
Commercial mortgage-backed 2,929 188 (82) 3,035 2,930 259 (95) 3,094
Asset-backed 7,373 60 (46) 7,387 5,784 31 (77) 5,738
Corporate—non-U.S. 1,741 103 (86) 1,758 2,391 150 (126) 2,415
Government—non-U.S. 2,336 81 (7) 2,410 1,617 149 (3) 1,763
U.S. government and federal agency 752 45 (27) 770 3,462 103 — 3,565
Retained interests 64 8 — 72 76 7 — 83
Equity
Available-for-sale 203 51 (3) 251 513 86 (3) 596
Trading 74 — — 74 245 — — 245
41,136 3,233 (707) 43,662 43,533 5,744 (838) 48,439
ELIMINATIONS (4) — — (4) (3) — — (3)
Total $ 41,474 $ 3,256 $ (749) $ 43,981 $ 43,604 $ 5,744 $ (838) $ 48,510
(a) Substantially collateralized by U.S. mortgages. Of our total RMBS portfolio at December 31, 2013, $1,224 million relates to securities issued by government-sponsored
entities and $686 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.
The fair value of investment securities decreased to $43,981 million at December 31, 2013, from $48,510 million at December 31,
2012, primarily due to the sale of U.S. government and federal agency securities at our treasury operations and the impact of higher
interest rates.
The following table presents the estimated fair values and gross unrealized losses of our available-for-sale investment securities.
2013 2012
In loss position for
Less than 12 months 12 months or more Less than 12 months 12 months or more
December 31 (In millions)
Estimated
fair value
(a)
Gross
unrealized
losses
(a) (b) Estimated
fair value
Gross
unrealized
losses (b) Estimated
fair value
(a)
Gross
unrealized
losses
(a) (b) Estimated
fair value
Gross
unrealized
losses (b)
Debt
U.S. corporate $ 2,170 $ (122) $ 598 $ (95) $ 434 $ (7) $ 813 $ (295)
State and municipal 1,076 (82) 367 (109) 146 (2) 326 (111)
Residential mortgage-backed 232 (11) 430 (37) 98 (1) 691 (118)
Commercial mortgage-backed 396 (24) 780 (58) 37 — 979 (95)
Asset-backed 112 (2) 359 (44) 18 (1) 658 (76)
Corporate—non-U.S. 108 (4) 454 (83) 167 (8) 602 (118)
Government—non-U.S. 1,479 (6) 42 (1) 201 (1) 37 (2)
U.S. government and federal agency 229 (27) 254 — — — — —
Retained interests 2 — — — 3 — — —
Equity 253 (44) — — 26 (3) — —
Total $ 6,057 $ (322) $ 3,284 $ (427) $ 1,130 $ (23) $ 4,106 $ (815)
(a) The December 31, 2013 table includes the estimated fair value of and gross unrealized losses on Corporate-non-U.S. and Equity securities held by GE. The estimated fair
value of and gross unrealized losses on Corporate-non-U.S. securities held by GE were $12 million and $(1) million, respectively. The estimated fair value of and gross
unrealized losses on Equity securities held by GE were $222 million and $(41) million, respectively.
(b) Includes gross unrealized losses at December 31, 2013 of $(99) million related to securities that had other-than-temporary impairments previously recognized.