85 NOTES TO THE FINANCIAL STATEMENTS 

Note 7. Debt and Equity Securities

Debt and Equity Securities as of September 30, 2017

Book 

(In billions of dollars) Cost Adjustment Value

Held-To Maturity

Debt securities:

Non-US Government ........................ - - -

Mortgage/asset backed .................... 0.2 - 0.2

Equity Securities:

All other equity securities .................. 3.6 - 3.6

Total Held-To-Maturity (Net Investment) 3.8 - 3.8

Available-for-Sale:

Debt Securities: 5.4 0.2 5.6

Total Available-for-Sale (Fair Value) 5.4 0.2 5.6

Trading Securities:

Debt Securities:

Non-U.S. Government ...................... 12.2 0.6 12.8

Commercial .................................... 0.2 - 0.2

Mortgage/asset backed..................... 3.9 - 3.9

Corporate and other bonds ............... 16.4 0.6 17.0

All other debt securities..................... 4.0 (0.1) 3.9

Equity Securities:

Unit Trust......................................... 18.0 8.2 26.2

Common Stocks............................... 2.1 0.1 2.2

All other equity securities .................. 15.2 (0.1) 15.1

Total Trading Securities (Fair Value) 72.0 9.3 81.3

Total

Total debt and equity securities categorized

as held-to-maturity, available-for-sale or trading........................................................................... 90.7

Total RRB debt and equity securities........................................................................................... 25.5

Total debt and equity securities................................................................................................... 116.2
 NOTES TO THE FINANCIAL STATEMENTS 86

Debt and Equity Securities as of September 30, 2016 Restated

Restated Restated Book 

(In billions of dollars) Cost Adjustment Value

Held-To Maturity

Debt securities:

Non-US Government ........................ 0.1 - 0.1

Mortgage/asset backed .................... 0.3 - 0.3

Equity Securities:

All other equity securities .................. 11.0 - 11.0

Total Held-To-Maturity (Net Investment) 11.4 - 11.4

Available-for-Sale:

Debt Securities: 9.5 0.4 9.9

Total Available-for-Sale (Fair Value) 9.5 0.4 9.9

Trading Securities:

Debt Securities:

Non-U.S. Government ...................... 11.4 0.3 11.7

Commercial .................................... 0.1 0.1

Mortgage/asset backed .................... 3.9 0.1 4.0

Corporate and other bonds ............... 11.9 0.8 12.7

All other debt securities..................... 2.4 - 2.4

Equity Securities:

Unit Trust......................................... 19.4 4.6 24.0

Common Stocks............................... 0.3 0.1 0.4

All other equity securities .................. 7.4 (0.1) 7.3

Total Trading Securities (Fair Value) 56.8 5.8 62.6

Total

Total debt and equity securities categorized

as held-to-maturity, available-for-sale or trading.......................................................................... 83.9

Total RRB debt and equity securities.......................................................................................... 24.3

Total debt and equity securities.................................................................................................. 108.2
87 NOTES TO THE FINANCIAL STATEMENTS 

Debt and Equity Securities as of September 30, 2017, and 2016

(In billions of dollars) 2017 2016 Restated

Pension Benefit Guaranty Corporation....................................... 66.7 60.0

Railroad Retirement Board........................................................ 25.5 24.3

Tennessee Valley Authority....................................................... 11.4 9.8

Department of the Treasury ...................................................... 8.6 9.9

All other................................................................................... 4.0 4.2

Total securities and investments ............................................. 116.2 108.2

These debt and equity securities do not include nonmarketable Treasury securities that have been eliminated in

consolidation. Held-to-maturity debt and equity securities are reported as total net investment, net of unamortized discounts

and premiums. Available-for-sale debt and equity securities are reported at fair value, net of unrealized gain or loss. Trading

debt and equity securities are reported at fair value, net of unrealized gain or loss. PBGC and TVA invest primarily in fixed

maturity and equity securities, classified as trading. PBGC reported gains related to trading securities held as of September

30, 2017 and September 30, 2016 of $3.3 billion and $2.2 billion, respectively. TVA reported gains related to trading

securities held as of September 30, 2017 and 2016 of $1.2 billion and $0.9 billion, respectively. Treasury invests primarily in

fixed maturity and equity securities, classified as available-for-sale and trading securities. Treasury’s Exchange Stabilization

Fund invests in among other things, foreign fixed maturity debt, with a fair value of $8.5 billion and $9.8 billion as of

September 30, 2017, and 2016, respectively. 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. Please refer to NRRIT’s financial statements for more

detailed information concerning this specific investment. The TVA balance includes $8.5 billion and $7.3 billion as of

September 30, 2017, and 2016, respectively, for the Tennessee Valley Authority Retirement System (TVARS). TVARS

includes unrealized gains of $0.8 billion and $0.5 billion as of September 30, 2017 and 2016, respectively. The Department

of the Defense reflects the majority of all other total securities and investments. PBGC, NRRIT, Treasury and TVA base

market values on the last sale of a listed security, on the mean of the “bid-and-ask” for nonlisted securities, or on a valuation

model in the case of fixed income securities that are not actively traded. These valuations are determined as of the end of

each fiscal year. Purchases and sales of securities are recorded on the trade date. Please refer to the individual financial

statements of PBGC, NRRIT, TVA, Treasury and DOD for more detailed information related to debt and equity securities.

These agencies comprise 99.6 percent of the total reported debt and equity securities of $116.2 billion as of September 30,

2017.

Certain PBGC amounts have been restated. Refer to Note 1.V— Restatements for more information.