Investments in Debt and Equity Securities (Tables)

3 Months Ended

Mar. 31, 2017

Investments, Debt and Equity Securities [Abstract]

Cost basis and fair value of available-for-sale securities

The cost basis and fair value of debt and equity securities were as follows:



	March 31, 2017							December 31, 2016
(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	$	9	$	—		$	9	$	9	$	—		$	9
Other U.S. and non-U.S. government bonds	58		—			58		60		—			60

Corporate bonds
Corporate bonds	479		3			482		489		3			492
Asset-backed securities	88		—			88		90		—			90

Mortgage-backed debt securities
U.S. governmental agency	214		(2		)	212		225		(2		)	223
Residential	9		—			9		10		—			10
Commercial	31		—			31		36		—			36

Equity securities
Large capitalization value	281		44			325		280		32			312
Real estate investment trust (REIT)	84		4			88		77		2			79
Smaller company growth	41		19			60		41		15			56
Total	$	1,294	$	68		$	1,362	$	1,317	$	50		$	1,367

Investments in an unrealized loss position that are not other-than-temporarily impaired:



Available-for-sale investments in an unrealized loss position that are not other-than-temporarily impaired:

	March 31, 2017
	Less than 12 months¹				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	$	121	$	1	$	12	$	—	$	133	$	1
Mortgage-backed debt securities
U.S. governmental agency	140		2		12		—		152		2
Equity securities
Large capitalization value	42		5		8		1		50		6
Small company growth	6		1		2		—		8		1
Total	$	309	$	9	$	34	$	1	$	343	$	10



	December 31, 2016
	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	$	131	$	1	$	13	$	—	$	144	$	1
Mortgage-backed debt securities
U.S. governmental agency	167		2		11		—		178		2
Equity securities
Large capitalization value	68		6		11		2		79		8
Smaller company growth	10		1		3		1		13		2
Total	$	376	$	10	$	38	$	3	$	414	$	13

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

Cost basis and fair value of the available-for-sale debt securities by contractual maturity

The cost basis and fair value of the available-for-sale debt securities at March 31, 2017, 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.



	March 31, 2017
(Millions of dollars)	Cost Basis		Fair Value
Due in one year or less	$	198	$	200
Due after one year through five years	386		387
Due after five years through ten years	24		24
Due after ten years	26		26
U.S. governmental agency mortgage-backed securities	214		212
Residential mortgage-backed securities	9		9
Commercial mortgage-backed securities	31		31
Total debt securities – available-for-sale	$	888	$	889

Schedule of proceeds and gross gain and losses from the sale of available-for-sale securities



Sales of Securities:
	Three Months Ended March 31
(Millions of dollars)	2017		2016
Proceeds from the sale of available-for-sale securities	$	89	$	49
Gross gains from the sale of available-for-sale securities	$	1	$	1
Gross losses from the sale of available-for-sale securities	$	1	$	1