Notes to the Financial Statements

Note 9. Debt and Equity Securities

These debt and equity securities do not include nonmarketable Treasury securities, which have been eliminated in consolidation. Held-to-maturity debt and equity securities are reported at amortized cost, net of unamortized discounts and premiums. Available-for-sale debt and equity securities are reported at fair value. Trading debt and equity securities are reported at fair value. The Pension Benefit Guaranty Corporation (PBGC) and the TVA invest primarily in fixed maturity and equity securities, classified as trading. Treasury invests primarily in fixed maturity and equity securities, classified as available-for-sale securities. Treasury’s Exchange Stabilization Fund invests primarily in foreign fixed maturity debt, with a fair value of $15.4 billion and $15.8 billion as of September 30, 2012, and 2011, respectively. The General Fund also owns shares of AIG common stock. This non-TARP investment has a fair value of $2.6 billion and $10.9 billion as of September 30, 2012, and 2011, respectively. For more information on this non-TARP investment in AIG, refer to Note 6—Non-TARP Investments in American International Group, Inc. The National Railroad Retirement Investment Trust (NRRIT), on behalf of the RRB, manages and invests railroad retirement assets that are to be used to pay retirement benefits to the Nation’s railroad workers under the Railroad Retirement Program. As an investment company, NRRIT is subject to different accounting standards that do not require the classifications presented above. NRRIT’s total debt and equity securities are presented as a separate line item. Please refer to NRRIT’s financial statements for more detailed information concerning this specific investment information. The TVA balance includes $7.2 billion and $7.0 billion as of September 30, 2012, and 2011, respectively, for the Tennessee Valley Authority Retirement System. Please refer to the individual financial statements of PBGC, NRRIT, Treasury, and TVA for more detailed information related to debt and equity securities. These agencies comprise 93.7 percent of the total reported debt and equity securities of $110.2 billion as of September 30, 2012.