XML 36 R11.htm IDEA: XBRL DOCUMENT v3.24.2
INVESTMENT SECURITIES
 6 Months Ended
Jun. 30, 2024
Investments, Debt and Equity Securities [Abstract]  
INVESTMENT SECURITIES INVESTMENT SECURITIES. The majority of our investment securities are held within our run-off insurance operations and are classified as non-current as they support the long-duration insurance liabilities and include debt securities all classified as available-for-sale, substantially all of which are investment-grade.
Our remaining equity shares in GE HealthCare comprised 30.5 million shares (approximately 6.7% ownership interest) at June 30, 2024. Our senior note from AerCap, for which we have adopted the fair value option and matures in the fourth quarter of 2025, is still outstanding as of June 30, 2024.
June 30, 2024December 31, 2023
Amortized
cost		Gross
unrealized
gains		Gross
unrealized
losses		Estimated
fair value 		Amortized
cost		Gross
unrealized
gains		Gross
unrealized
losses		Estimated
fair value
Equity (GE HealthCare)
$— $— $— $2,379 $— $— $— $4,761 
Equity note (AerCap)— — — 959 — — — 944 
Current investment securities$— $— $— $3,338 $— $— $— $5,706 
Debt
U.S. corporate$27,771 $618 $(2,122)$26,268 $27,495 $1,034 $(1,606)$26,923 
Non-U.S. corporate2,710 23 (270)2,463 2,529 34 (209)2,353 
State and municipal2,647 36 (220)2,464 2,828 79 (185)2,723 
Mortgage and asset-backed5,044 40 (220)4,864 4,827 34 (291)4,571 
Government and agencies1,985 1 (114)1,873 1,213 3 (116)1,100 
Other equity198 — — 198 331 — — 331 
Non-current investment securities$40,356 $719 $(2,946)$38,129 $39,222 $1,183 $(2,406)$38,000 

The amortized cost of debt securities excludes accrued interest of $468 million and $466 million at June 30, 2024 and December 31, 2023, respectively, which is reported in All other current assets.

The estimated fair value of investment securities at June 30, 2024 decreased since December 31, 2023, primarily due to share sales of our GE HealthCare equity interest and higher market yields partially offset by new investments at Insurance and the mark-to-market effect on our equity interest in GE HealthCare.

Total estimated fair value of debt securities in an unrealized loss position were $21,476 million and $18,730 million, of which $16,283 million and $17,146 million had gross unrealized losses of $(2,813) million and $(2,370) million and had been in a loss position for 12 months or more at June 30, 2024 and December 31, 2023, respectively. Gross unrealized losses of $(2,946) million at June 30, 2024 included $(2,122) million related to U.S. corporate securities, $(138) million related to commercial mortgage-backed securities (CMBS) collateralized by pools of commercial mortgage loans on real estate, and $(71) million related to Asset-backed securities. The majority of our U.S. corporate securities' gross unrealized losses were in the consumer, electric, technology and insurance industries. The majority of our CMBS and Asset-backed securities in an unrealized loss position have received investment-grade credit ratings from the major rating agencies. For our securities in an unrealized loss position, the losses are not indicative of credit losses, we currently do not intend to sell the investments, and it is not more likely than not that we will be required to sell the investments before recovery of their amortized cost basis.
Three months ended June 30Six months ended June 30
2024202320242023
Net unrealized gains (losses) for equity securities with readily determinable fair value (RDFV)$(378)$522 $62 $6,562 
Proceeds from debt/equity securities sales and early redemptions1,083 3,745 4,278 6,754 
Gross realized gains on debt securities9 26 17 38 
Gross realized losses on debt securities(28)(25)(38)(46)

Contractual maturities of our debt securities (excluding mortgage and asset-backed securities) at June 30, 2024 are as follows:

Amortized costEstimated fair value
Within one year$1,422 $1,417 
After one year through five years5,249 5,269 
After five years through ten years4,911 4,917 
After ten years23,532 21,463 

We expect actual maturities to differ from contractual maturities because borrowers have the right to call or prepay certain obligations.

The majority of our equity securities are classified within Level 1 and the majority of our debt securities are classified within Level 2, as their valuation is determined based on significant observable inputs. Investments with a fair value of $7,088 million and $6,841 million are classified within Level 3, as significant inputs to their valuation models are unobservable at June 30, 2024 and December 31, 2023, respectively. During the six months ended June 30, 2024 and 2023 there were no significant transfers into or out of Level 3, respectively.
In addition to the equity securities described above, we hold $1,141 million and $974 million of equity securities without RDFV including $1,115 million and $939 million at Insurance at June 30, 2024 and December 31, 2023, respectively, that are classified within non-current All other assets in our Statement of Financial Position. Fair value adjustments, including impairments, recorded in earnings were $29 million and $26 million, and $63 million and $35 million for the three and six months ended June 30, 2024 and 2023, respectively. These are primarily limited partnership investments in private equity, infrastructure and real estate funds that are measured at net asset value per share (or equivalent) as a practical expedient to estimated fair value and are excluded from the fair value hierarchy.