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Investments in Debt and Equity Securities
 6 Months Ended
Jun. 30, 2021
Investments, Debt and Equity Securities [Abstract]  
Investments in Debt and Equity Securities Investments in debt and equity securities
 
We have investments in certain debt and equity securities, primarily at Insurance Services, which we record at fair value and primarily include in Other assets in the Consolidated Statement of Financial Position.

We classify debt securities as available-for-sale, and we include the unrealized gains and losses arising from the revaluation of these debt securities, net of applicable deferred income taxes, in equity (AOCI in the Consolidated Statement of Financial Position). We include the unrealized gains and losses arising from the revaluation of the equity securities in Other income (expense) in the Consolidated Statement of Results of Operations. We generally determine realized gains and losses on sales of investments using the specific identification method for debt and equity securities and include them in Other income (expense) in the Consolidated Statement of Results of Operations.

The cost basis and fair value of debt securities with unrealized gains and losses included in equity (AOCI in the Consolidated Statement of Financial Position) were as follows:
 June 30, 2021December 31, 2020
(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$10 $— $10 $10 $— $10 
Other U.S. and non-U.S. government bonds57 1 58 58 1 59 
Corporate bonds      
Corporate bonds991 37 1,028 962 50 1,012 
Asset-backed securities150 2 152 156 3 159 
Mortgage-backed debt securities  
U.S. governmental agency346 9 355 362 12 374 
Residential5 — 5 5 — 5 
Commercial80 3 83 60 4 64 
Total debt securities$1,639 $52 $1,691 $1,613 $70 $1,683 
Available-for-sale investments in an unrealized loss position:
 June 30, 2021
 
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$118 $1 $5 $— $123 $1 
Mortgage-backed debt securities
U.S. governmental agency89 1 2 — 91 1 
Total$207 $2 $7 $— $214 $2 
 December 31, 2020
 
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$13 $— $4 $— $17 $— 
Mortgage-backed debt securities      
U.S. governmental agency2 — 5 — 7 — 
Total$15 $— $9 $— $24 $— 
1 Indicates the 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. In addition, we did not expect credit-related losses on these investments as of June 30, 2021.

Mortgage-Backed Debt Securities The unrealized losses on our investments in U.S. government agency 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 the investments before recovery of their amortized cost basis. In addition, we did not expect credit-related losses on these investments as of June 30, 2021.
The cost basis and fair value of the available-for-sale debt securities at June 30, 2021, by contractual maturity, are 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.        
June 30, 2021
(Millions of dollars)Cost BasisFair Value
Due in one year or less$146 $148 
Due after one year through five years725 753 
Due after five years through ten years284 292 
Due after ten years53 55 
U.S. governmental agency mortgage-backed securities346 355 
Residential mortgage-backed securities5 5 
Commercial mortgage-backed securities80 83 
Total debt securities – available-for-sale$1,639 $1,691 
  
Sales of available-for-sale securities:  
 Three Months Ended June 30Six Months Ended June 30
(Millions of dollars)2021202020212020
Proceeds from the sale of available-for-sale securities$125 $66 $225 $124 
Gross gains from the sale of available-for-sale securities2 1 2 1 
Gross losses from the sale of available-for-sale securities— 1 — 1 
For the three months ended June 30, 2021 and 2020, the net unrealized gains (losses) for equity securities held at June 30, 2021 and 2020 were $21 million and $26 million, respectively. For the six months ended June 30, 2021 and 2020, the net unrealized gains (losses) for equity securities held at June 30, 2021 and 2020 were $38 million and $(14) million, respectively.