Investments

9 Months Ended

Sep. 25, 2020

INVESTMENTS

Equity Securities

The carrying values of our equity securities were included in the following line items in our condensed consolidated balance sheets (in millions):


	Fair Value with Changes Recognized in Income		Measurement Alternative — No Readily Determinable Fair Value
September 25, 2020

Marketable securities	$	296	$	—
Other investments	662		50
Other assets	1,097		—
Total equity securities	$	2,055	$	50
December 31, 2019

Marketable securities	$	329	$	—
Other investments	772		82
Other assets	1,118		—
Total equity securities	$	2,219	$	82

The calculation of net unrealized gains and losses recognized during the period related to equity securities still held at the end of the period is as follows (in millions):


	Three Months Ended
	September 25, 2020		September 27, 2019
Net gains (losses) recognized during the period related to equity securities	$	17	$	29
Less: Net gains (losses) recognized during the period related to equity securities sold during the period	—		—
Net unrealized gains (losses) recognized during the period related to equity securities still held at the end of the period	$	17	$	29


	Nine Months Ended
	September 25, 2020		September 27, 2019
Net gains (losses) recognized during the period related to equity securities	$	(137)	$	163
Less: Net gains (losses) recognized during the period related to equity securities sold during the period	(24)		16
Net unrealized gains (losses) recognized during the period related to equity securities still held at the end of the period	$	(113)	$	147

Debt Securities

Our debt securities consisted of the following (in millions):


			Gross Unrealized						Estimated Fair Value
	Cost		Gains		Losses
September 25, 2020
Trading securities	$	34	$	1	$	—	$	35
Available-for-sale securities	2,611		63		(16)		2,658
Total debt securities	$	2,645	$	64	$	(16)	$	2,693
December 31, 2019
Trading securities	$	46	$	1	$	—	$	47
Available-for-sale securities	3,172		113		(4)		3,281
Total debt securities	$	3,218	$	114	$	(4)	$	3,328

The carrying values of our debt securities were included in the following line items in our condensed consolidated balance sheets (in millions):


	September 25, 2020						December 31, 2019
	Trading Securities		Available-for-Sale Securities		Trading Securities		Available-for-Sale Securities
Cash and cash equivalents	$	—	$	305	$	—	$	123
Marketable securities	35		2,065		47		2,852
Other assets	—		288		—		306
Total debt securities	$	35	$	2,658	$	47	$	3,281

The contractual maturities of these available-for-sale debt securities as of September 25, 2020 were as follows (in millions):


	Cost		Estimated Fair Value
Within 1 year	$	1,186	$	1,212
After 1 year through 5 years	1,140		1,134
After 5 years through 10 years	89		102
After 10 years	196		210
Total	$	2,611	$	2,658

The Company expects that actual maturities may differ from the contractual maturities above because borrowers have the right to call or prepay certain obligations.

The sale and/or maturity of available-for-sale debt securities resulted in the following realized activity (in millions):


	Three Months Ended						Nine Months Ended
	September 25, 2020		September 27, 2019		September 25, 2020		September 27, 2019
Gross gains	$	2	$	9	$	19	$	37
Gross losses	(3)		(1)		(11)		(5)
Proceeds	233		1,284		1,419		3,074

Captive Insurance Companies

In accordance with local insurance regulations, our captive insurance companies are required to meet and maintain minimum solvency capital requirements. The Company elected to invest a majority of its solvency capital in a portfolio of marketable equity and debt securities. These securities are included in the disclosures above. The Company uses one of its consolidated captive insurance companies to reinsure group annuity insurance contracts that cover the pension obligations of certain of our European and Canadian pension plans. This captive's solvency capital funds included equity and debt securities of $1,227 million and $1,266 million as of September 25, 2020 and December 31, 2019, respectively, which are classified in the line item other assets in our condensed consolidated balance sheets because the assets are not available to satisfy our current obligations.