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Real estate includes real estate held for investment and real estate held for sale, as described in Note 1. The carrying value and fair
value of real estate in each of these categories as at December 31 is shown in the table below.
2010 2009
Carrying
Value
Fair
Value
Carrying
Value
Fair
Value
Real estate held for investment $ 4,910 $ 5,116 $ 4,861 $ 5,108
Real estate held for sale 9916 16
Total real estate $ 4,919 $ 5,125 $ 4,877 $ 5,124
The carrying value of real estate that was non-income producing for the preceding 12 months was $142 in 2010 ($185 in 2009).
Deferred net realized gains are realized gains and losses which have not yet been recognized in income. The changes in deferred net
realized gains for real estate are shown in the following table.
2010 2009
Balance, January 1 $ 225 $ 251
Net realized gains for the year 28 12
Amortization of deferred net realized gains (27) (30)
Effect of changes in currency exchange rates (7) (8)
Balance, December 31 $ 219 $ 225
Amortization of deferred net realized gains on real estate for 2008 recorded to income was $33.
5.C Net investment income (loss)
Changes in fair value of held-for-trading assets recorded to net income (loss) for the years ended December 31 consist of the following:
2010 2009 2008
Bonds $ 2,288 $ 4,124 $ (5,852)
Stocks 431 705 (1,432)
Other invested assets 38 41 (122)
Cash equivalents and short-term securities 487
Total changes in fair value of held-for-trading assets $ 2,761 $ 4,878 $ (7,399)
Income (loss) from derivative investments consists of income from derivatives that are not classified as hedges for accounting
purposes. Income from derivative investments in our Consolidated Statements of Operations for the years ended December 31
consists of the following:
2010 2009 2008
Changes in fair value $ (95) $ (847) $ (154)
Interest income (expense) (46) (114) (70)
Other income (loss) 15 18 4
Total income (loss) from derivative investments $ (126) $ (943) $ (220)
Other net investment income (loss) for the years ended December 31 has the following components:
2010 2009 2008
Interest income:
Held-for-trading bonds $ 2,902 $ 3,037 $ 3,006
Available-for-sale bonds 474 569 580
Mortgages and corporate loans 1,148 1,253 1,291
Policy loans 186 210 216
Cash, cash equivalents and short-term securities 31 36 147
Interest income 4,741 5,105 5,240
Dividends on held-for-trading stocks 107 115 117
Dividends on available-for-sale stocks 16 35 24
Real estate income (net)(1) 316 327 332
Amortization of deferred net realized gains and unrealized gains and losses 33 76 136
Foreign exchange gains (losses) –(10) (22)
Other income (expense)(2) 158 (79) 354
Investment expenses and taxes (126) (107) (103)
Total other net investment income (loss) $ 5,245 $ 5,462 $ 6,078
(1) Includes operating lease rental income of $270 in 2010 ($283 and $293, in 2009 and 2008, respectively).
(2) In 2010, this includes the pre-tax gain on disposal of $130 relating to the sale of life retrocession business, as described in Note 3. In 2008, this includes equity income from
CI Financial of $190. Our investment in CI Financial was sold in December 2008, as described in Note 3.
96 Sun Life Financial Inc. Annual Report 2010 Notes to the Consolidated Financial Statements