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Available-For-Sale Securities
 9 Months Ended
Sep. 30, 2015
Investments, Debt and Equity Securities [Abstract]  
Available-For-Sale Securities
    Available-for-sale securities
 
We have investments in certain debt and equity securities, primarily at Insurance Services, that have been classified as available-for-sale and recorded at fair value. These investments are primarily included in Other assets in the Consolidated Statement of Financial Position. Unrealized gains and losses arising from the revaluation of available-for-sale securities are included, net of applicable deferred income taxes, in equity (Accumulated other comprehensive income (loss) in the Consolidated Statement of Financial Position).  Realized gains and losses on sales of investments are generally determined using the specific identification method for debt and equity securities and are included in Other income (expense) in the Consolidated Statement of Results of Operations.

The cost basis and fair value of available-for-sale securities were as follows:
 
September 30, 2015
 
December 31, 2014
(Millions of dollars)
Cost 
Basis
 
Unrealized Pretax Net Gains 
(Losses)
 
Fair 
Value
 
Cost 
Basis
 
Unrealized Pretax Net Gains 
(Losses)
 
Fair 
Value
Government debt
 
 
 
 
 
 
 
 
 
 
 
U.S. treasury bonds
$
13

 
$
—

 
$
13

 
$
10

 
$
—

 
$
10

Other U.S. and non-U.S. government bonds
82

 
1

 
83

 
94

 
—

 
94

 
 
 
 
 
 
 
 
 
 
 
 
Corporate bonds
 

 
 

 
 
 
 

 
 

 
 

Corporate bonds
700

 
13

 
713

 
677

 
16

 
693

Asset-backed securities
96

 
1

 
97

 
103

 
2

 
105

 
 
 
 
 
 
 
 
 
 
 
 
Mortgage-backed debt securities
 
 
 
 
 
 
 

 
 

 
 

U.S. governmental agency
270

 
4

 
274

 
292

 
2

 
294

Residential
13

 
—

 
13

 
15

 
—

 
15

Commercial
59

 
3

 
62

 
63

 
4

 
67

 
 
 
 
 
 
 
 
 
 
 
 
Equity securities
 
 
 
 
 
 
 

 
 

 
 

Large capitalization value
212

 
38

 
250

 
150

 
83

 
233

Real estate investment trust (REIT)
8

 
—

 
8

 
—

 
—

 
—

Smaller company growth
31

 
19

 
50

 
17

 
26

 
43

Total
$
1,484

 
$
79

 
$
1,563

 
$
1,421

 
$
133

 
$
1,554

 
 
 
 
 
 
 
 
 
 
 
 

Investments in an unrealized loss position that are not other-than-temporarily impaired:
 
 
 
September 30, 2015
 
Less than 12 months 1
 
12 months or more 1
 
Total
(Millions of dollars)
Fair 
Value
 
Unrealized
Losses
 
Fair 
Value
 
Unrealized
Losses
 
Fair 
Value
 
Unrealized
Losses
Corporate bonds
 
 
 
 
 
 
 
 
 
 
 
Corporate bonds
$
155

 
$
2

 
$
23

 
$
—

 
$
178

 
$
2

Mortgage-backed debt securities
 
 
 
 
 
 
 
 
 
 
 
U.S. governmental agency
15

 
—

 
60

 
1

 
75

 
1

Equity securities
 
 
 
 
 
 
 
 
 
 
 
Large capitalization value
84

 
8

 
1

 
—

 
85

 
8

Small company growth
13

 
2

 
—

 
—

 
13

 
2

Total
$
267

 
$
12

 
$
84

 
$
1

 
$
351

 
$
13

 
December 31, 2014
 
Less than 12 months 1
 
12 months or more 1
 
Total
(Millions of dollars)
Fair 
Value
 
Unrealized
Losses
 
Fair 
Value
 
Unrealized
Losses
 
Fair 
Value
 
Unrealized
Losses
Corporate bonds
 
 
 
 
 
 
 
 
 
 
 
Corporate bonds
$
195

 
$
1

 
$
32

 
$
—

 
$
227

 
$
1

Mortgage-backed debt securities
 

 
 

 
 

 
 

 
 

 
 

U.S. governmental agency
34

 
—

 
140

 
3

 
174

 
3

Equity securities
 

 
 

 
 

 
 

 
 

 
 

Large capitalization value
15

 
2

 
1

 
—

 
16

 
2

Total
$
244

 
$
3

 
$
173

 
$
3

 
$
417

 
$
6

 1    Indicates length of time that individual securities have been in a continuous unrealized loss position.
 
 
 
 
 


Corporate Bonds. The unrealized losses on our investments in corporate bonds relate to changes in interest rates and credit-related yield spreads since time of purchase. We do not intend to sell the investments and it is not likely that we will be required to sell the investments before recovery of their amortized cost basis. We do not consider these investments to be other-than-temporarily impaired as of September 30, 2015.

Mortgage-Backed Debt Securities.  The unrealized losses on our investments in mortgage-backed securities relate to changes in interest rates and credit-related yield spreads since time of purchase.  We do not intend to sell the investments and it is not likely that we will be required to sell these investments before recovery of their amortized cost basis.  We do not consider these investments to be other-than-temporarily impaired as of September 30, 2015.
 
Equity Securities.  The unrealized losses on our investments in equity securities relate to inherent risks of individual holdings and/or their respective sectors. We do not consider these investments to be other-than-temporarily impaired as of September 30, 2015.
 
The cost basis and fair value of the available-for-sale debt securities at September 30, 2015, by contractual maturity, is shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to prepay and creditors may have the right to call obligations.

 
September 30, 2015
(Millions of dollars)
Cost Basis
 
Fair Value
Due in one year or less
$
102

 
$
102

Due after one year through five years
739

 
752

Due after five years through ten years
21

 
22

Due after ten years
29

 
30

U.S. governmental agency mortgage-backed securities
270

 
274

Residential mortgage-backed securities
13

 
13

Commercial mortgage-backed securities
59

 
62

Total debt securities – available-for-sale
$
1,233

 
$
1,255

 
 
 
 

 
Sales of Securities:
 
 
 
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
(Millions of dollars)
2015
 
2014
 
2015
 
2014
Proceeds from the sale of available-for-sale securities
$
110

 
$
125

 
$
238

 
$
347

Gross gains from the sale of available-for-sale securities
$
32

 
$
22

 
$
38

 
$
36

Gross losses from the sale of available-for-sale securities
$
1

 
$
1

 
$
2

 
$
1