Marketable Securities

3 Months Ended

Mar. 31, 2020

Marketable Securities and Held-to-Maturity Debt Securities

Marketable Securities and Held-to-Maturity Debt Securities

NOTE 9. Marketable Securities

The Company invests in asset-backed securities, certificates of deposit/time deposits, commercial paper, and other securities. The following is a summary of amounts recorded on the Consolidated Balance Sheet for marketable securities (current and non-current).

(Millions)	March 31, 2020		December 31, 2019
Commercial paper	$	194	$	85
Certificates of deposit/time deposits		6		10
U.S. municipal securities		24		3
Current marketable securities	$	224	$	98
U.S. municipal securities	$	34	$	43
Non-current marketable securities	$	34	$	43
Total marketable securities	$	258	$	141

At March 31, 2020 and December 31, 2019, gross unrealized, gross realized, and net realized gains and/or losses (pre-tax) were not material.

The balances at March 31, 2020 for marketable securities by contractual maturity are shown below. Actual maturities may differ from contractual maturities because the issuers of the securities may have the right to prepay obligations without prepayment penalties.

(Millions)	March 31, 2020
Due in one year or less	$	224
Due after one year through five years		14
Due after five years through ten years		20
Total marketable securities	$	258

Held-to-Maturity Debt Securities

In connection with the in-substance debt defeasance of the Third Lien Notes described in Note 10, the Company purchased a $0.5 billion U.S. Treasury security in the fourth quarter of 2019 that matures in the second quarter of 2020 and transferred it to a trust with irrevocable instructions to use the proceeds from its maturity to satisfy the redemption of the Third Lien Notes in May 2020. This debt security is considered held-to-maturity due to the restrictions in satisfying and discharging the Third Lien Notes, is carried at amortized cost, and is reflected in other current assets on the Company’s consolidated balance sheet. At March 31, 2020, the difference between the amortized cost of the U.S. Treasury security and its fair value was not material.