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Investments in Debt and Equity Securities
 9 Months Ended
Sep. 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 primarily as available-for-sale. We include the unrealized gains and losses arising from the revaluation of available-for-sale 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 available-for-sale 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 available-for-sale debt securities with unrealized gains and losses included in equity (AOCI in the Consolidated Statement of Financial Position) were as follows:
Available-for-sale debt securities
September 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 — 57 58 1 59 
Corporate bonds      
Corporate bonds1,004 31 1,035 962 50 1,012 
Asset-backed securities146 2 148 156 3 159 
Mortgage-backed debt securities  
U.S. governmental agency340 9 349 362 12 374 
Residential4 — 4 5 — 5 
Commercial97 3 100 60 4 64 
Total available-for-sale debt securities$1,658 $45 $1,703 $1,613 $70 $1,683 
Available-for-sale debt securities in an unrealized loss position:
 September 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$215 $2 $6 $— $221 $2 
Total$215 $2 $6 $— $221 $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 $— 
Total$13 $— $4 $— $17 $— 
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 September 30, 2021.
The cost basis and fair value of available-for-sale debt securities at September 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.        
September 30, 2021
(Millions of dollars)Cost BasisFair Value
Due in one year or less$154 $156 
Due after one year through five years730 753 
Due after five years through ten years271 278 
Due after ten years62 63 
U.S. governmental agency mortgage-backed securities340 349 
Residential mortgage-backed securities4 4 
Commercial mortgage-backed securities97 100 
Total debt securities – available-for-sale$1,658 $1,703 
  
Sales of available-for-sale debt securities:  
 Three Months Ended September 30Nine Months Ended September 30
(Millions of dollars)2021202020212020
Proceeds from the sale of available-for-sale securities$97 $74 $322 $197 
Gross gains from the sale of available-for-sale securities1 — 3 1 
Gross losses from the sale of available-for-sale securities— — — 1 
In addition, we had $543 million of investments in time deposits classified as held-to-maturity debt securities as of September 30, 2021. All these investments mature within one year and we include them in Prepaid expenses and other current assets in the Consolidated Statement of Financial Position. We did not have any investments classified as held-to-maturity debt securities as of December 31, 2020. We record held-to-maturity debt securities at amortized cost, which approximates fair value. We did not have any unrealized gains or losses on these securities as of September 30, 2021 and December 31, 2020.
For the three months ended September 30, 2021 and 2020, the net unrealized gains (losses) for equity securities held at September 30, 2021 and 2020 were $46 million and $9 million, respectively. For the nine months ended September 30, 2021 and 2020, the net unrealized gains (losses) for equity securities held at September 30, 2021 and 2020 were $65 million and $(1) million, respectively.