NOTES TO THE FINANCIAL STATEMENTS NOTE 5. MARKETABLE, LOANED AND OTHER SECURITIES 6 7 The proceeds and gains/(losses) from sales of available-for-sale securities were as follows (in millions): We loan certain securities from our portfolio to other institutions. Such securities are classified as  Loaned securities  on the  balance sheet. Collateral for the loaned securities, consisting of cash or other securities, is required to be maintained at a rate  of 102% of the market value of a loaned security. Ford received securities as collateral in the amount of $399 million and $5.4 billion for 2004 and 2003, respectively. This collateral has not been pledged or sold. Cash collateral received is recorded  as an asset in  Other current assets , offset by an obligation to return the collateral in  Other payables . Income received from loaning securities is recorded as  Interest income and other non-operating income/(expense), net. Investments in marketable and loaned securities at December 31 were as follows (in millions): Trading securities are recorded at fair value with unrealized gains and losses included in income. Available-for-sale  securities are recorded at fair value with net unrealized holding gains and losses reported, net of tax, in  Accumulated other  comprehensive income . Held-to-maturity securities are recorded at amortized cost. Realized gains and losses are accounted for  using the specific identification method. The fair value of substantially all securities is determined by quoted market prices. The estimated fair value of securities for  which there are no quoted market prices is based on similar types of securities that are traded in the market. Equity securities  that do not have readily determinable fair values are recorded at cost. Book value approximates fair value for all securities. Expected maturities of debt securities may differ from contractual maturities because borrowers may have the right to call or  prepay obligations with or without penalty.  2004  2003 Amortized  Unrealized Book/Fair Amortized  Unrealized Book/Fair  Cost Gains Losses  Value  Cost Gains Losses  Value Automotive sector Trading  $ 7,648 $ 12 $ 23 $ 7,637  $ 13,069  $  69  $  4  $ 13,134 Available-for-sale: U.S. government and  agency 1,179 3 10 1,172 1,402 6 5 1,403 Other debt securities 548 1 9 540 448 4 6 446 Subtotal 1,727 4 19 1,712 1,850 10 11 1,849 Total $ 9,375 $ 16 $ 42 $ 9,349  $ 14,919  $  79  $  15  $ 14,983 Financial Services sector Trading  $ 560 $ - $ - $ 560  $  501  $  -  $  -  $  501 Available-for-sale: Other debt securities 552 14 1 565 524 17 2 539 Equity 50 37 3 84 47 31 3 75 Subtotal 602 51 4 649 571 48 5 614 Held-to-maturity: U.S. government 7 - - 7 8 - - 8 Total $ 1,169 $ 51 $ 4 $ 1,216  $  1,080  $  48  $  5  $  1,123 Proceeds Gains/(Losses) 2004 2003 2002 2004 2003 2002 Automotive sector  $ 7,615  $  8,673  $  3,445 $ (12) $  9  $  24 Financial Services sector 787 703 479 6 14 6