Investments in Debt and Equity Securities (Tables)

3 Months Ended

Mar. 31, 2018

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 with unrealized gains and losses included in equity (Accumulated other comprehensive income (loss) in the Consolidated Statement of Financial Position) were as follows:



	March 31, 2018							December 31, 2017
(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	51		—			51		42		—			42

Corporate bonds
Corporate bonds	649		(9		)	640		585		(1		)	584
Asset-backed securities	63		—			63		67		—			67

Mortgage-backed debt securities
U.S. governmental agency	292		(7		)	285		265		(4		)	261
Residential	8		—			8		8		—			8
Commercial	17		(1		)	16		17		—			17
Total debt securities	$	1,093	$	(17	)	$	1,076	$	994	$	(5	)	$	989

Equity securities¹
Large capitalization value								287		(3		)	284
Real estate investment trust (REIT)								104		6			110
Smaller company growth								40		16			56
Total equity securities								$	431	$	19		$	450

¹Beginning January 1, 2018, the unrealized gains and losses arising from the revaluation of the equity securities are included in Other income (expense) in the Consolidated Statement of Results of Operations. See Note 2 for additional information.

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, 2018
	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	$	501	$	9	$	35	$	1	$	536	$	10
Mortgage-backed debt securities
U.S. governmental agency	160		3		103		4		263		7
Total	$	661	$	12	$	138	$	5	$	799	$	17



	December 31, 2017
	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	$	312	$	2	$	38	$	—	$	350	$	2
Mortgage-backed debt securities
U.S. governmental agency	129		1		110		3		239		4
Equity securities
Large capitalization value	129		5		14		2		143		7
Smaller company growth	17		1		1		—		18		1
Total	$	587	$	9	$	163	$	5	$	750	$	14

¹ Indicates the 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, 2018, 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, 2018
(Millions of dollars)	Cost Basis		Fair Value
Due in one year or less	$	127	$	127
Due after one year through five years	513		506
Due after five years through ten years	117		115
Due after ten years	19		19
U.S. governmental agency mortgage-backed securities	292		285
Residential mortgage-backed securities	8		8
Commercial mortgage-backed securities	17		16
Total debt securities – available-for-sale	$	1,093	$	1,076

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



Sales of available-for-sale securities:
	Three Months Ended March 31
(Millions of dollars)	2018¹		2017
Proceeds from the sale of available-for-sale securities	$	73	$	89
Gross gains from the sale of available-for-sale securities	$	—	$	1
Gross losses from the sale of available-for-sale securities	$	—	$	1

¹ Beginning January 1, 2018, equity securities are no longer classified as available-for-sale securities. See Note 2 for additional information.