The fair value of fixed income securities and common stocks ar e based on the quoted market prices of the investments as of the close of business on December 31 of the respective years. The gross unrealized appreciation of $119.5 million and the gross unrealized depreciation of $55.7 million resulted principally  from the change in value of U.S. and non-U.S. equities, the cr edit quality of fixed income securities and the then current interest rate environment. 54 Cost or Gross Gross Amortized Unrealized Unrealized Cost Appreciation Depreciation Fair Value Fixed income securities: Bonds United States government and  government agencies and authorities $  894,397 $ 2,050 $44,926 $ 851,521 States, municipalities and political subdivisions 205,747 4,954 1,637 209,064 Foreign governments 79,447 3,642 797 82,292 Public utilities 37,959 1,270 — 39,229 All other corporate 387,828 29,895 2,141 415,582 Total fixed income securities 1,605,378 41,811 49,501 1,597,688 Common stocks, at fair value: Banks, trusts and insurance companies 167,436 41,013 6,234 202,215 Industrial, miscellaneous and all other 208,779 36,712 6 245,485 Total common stocks, at fair value 376,215 77,725 6,240 447,700 Short-term investments: United States government 21,092 — — 21,092 All other 197,116 — — 197,116 Total short-term investments 218,208 — — 218,208 Total $2,199,801 $119,536 $55,741 $2,263,596 The composition of the fixed income securities, common stocks carried at fair value and short-term investments as of December 31, 2003, follows (in thousands): ODYSSEY RE HOLDINGS CORP. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued