NOTES TO THE FINANCIAL STATEMENTS 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): 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): 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. Inventories at December 31 were as follows (in millions): NOTE 6. INVENTORIES – AUTOMOTIVE SECTOR Inventories are stated at lower of cost or market. About one-fourth of inventories were determined under the last-in, first-out method. 6 8 Description of Securities Less Than 12 Months 12 Months or Greater Total Fair Value Gross  Unrealized  Losses Fair Value Gross  Unrealized  Losses Fair Value Gross  Unrealized  Losses Automotive sector U.S. government and agency $  737 $  7  $  76 $  3 $  813 $  10 Other debt securities 435 4 11 5 446 9 Total $  1,172 $  11  $  87 $  8  $ 1,259 $  19 Financial Services sector Other debt securities $  186 $  1  $  17 $  - $  203 $  1  Equity securities 2 - 4 3 6 3 Total $  188 $  1  $  21 $  $  209 $  4  2004  2003 Raw materials, work-in-process and supplies $ 3,968 $  3,813 Finished products 7,799 6,334 Total inventories at FIFO 11,767 10,147 Less LIFO adjustment (1,001) (996) Total inventories $ 10,766 $  9,151 NOTE 5. Marketable, Loaned and Other Securities (Continued) Contractual Maturity Automotive Financial Services Available-for-Sale Available-for-Sale Held-to-Maturity Amortized Fair Amortized Fair Amortized Fair Cost Value Cost Value Cost Value 1 year $  52 $  52 $  8  $  8 $  1 $  1 2-5 years 1,218 1,209 212 212 4 4 6-10 years 211 205 80 85 - - 11 years and later 246 246 69 73 2 2 Mortgage-backed securities - - 184 187 - - Equity securities 49 84 Total $  1,727 $  1,712 $  602  $  649 $  7 $  7