content_image/128640.jpg content_image/128637.jpg content_image/128638.jpg
## NOTE 5. Marketable, Loaned and Other Securities (Continued) 

The amortized cost and fair value of investments in available-for-sale and held-to-maturity securities by contractual maturity for Automotive and Financial Service sectors at December 31, 2004 were as follows (in millions): 

<img src='content_image/128640.jpg'>

The fair value of the Company’s investments in an unrealized loss position at December 31, 2004, aggregated by investment category and length of time that the investments have been in a continuous loss position, are as follows (in millions): 

<img src='content_image/128637.jpg'>

We also hold an additional $2.5 billion investment in marketable securities as of December 31, 2004 in a Voluntary Employees Beneficiary Association trust (“VEBA”), which assets are used to fund certain employee benefit obligations in the near term. These investments are recorded at fair value and classified as other assets in our balance sheet. At December 31, 2004, the fair value and unrealized loss of these assets that have been in a continuous loss position for less than twelve months was $2 billion and $7 million, respectively, and the fair value and unrealized loss of these assets in a continuous loss position for twelve months or greater was $7 million and $4 million, respectively. 

Management has determined that the unrealized losses on our investments in debt and equity securities at December 31, 2004 are temporary in nature. Factors considered in determining whether a loss is temporary include the length of time and extent to which fair value has been below cost, the financial condition and near-term prospects of the issuer and our ability and intent to hold the investment for a period of time sufficient to allow for any anticipated recovery. 

## NOTE 6. INVENTORIES – AUTOMOTIVE SECTOR 

Inventories at December 31 were as follows (in millions): 

<img src='content_image/128638.jpg'>

Inventories are stated at lower of cost or market. About one-fourth of inventories were determined under the last-in, first-out method. 

