Investments of Insurance Subsidiaries

6 Months Ended

Jun. 30, 2025

Investments, Debt and Equity Securities [Abstract]

Investments of Insurance Subsidiaries

NOTE 5 — INVESTMENTS OF INSURANCE SUBSIDIARIES

A summary of our insurance subsidiaries’ investments at June 30, 2025 and December 31, 2024 follows (dollars in millions):

	June 30, 2025
			Unrealized Amounts
	Amortized Cost		Gains		Losses			Fair Value
Debt securities	$	349	$	1	$	(19	)	$	331
Money market funds and other		301		—		—			301
	$	650	$	1	$	(19	)		632
Amounts classified as current assets									(101	)
Investment carrying value								$	531

	December 31, 2024
			Unrealized Amounts
	Amortized Cost		Gains		Losses			Fair Value
Debt securities	$	388	$	—	$	(27	)	$	361
Money market funds and other		296		—		—			296
	$	684	$	—	$	(27	)		657
Amounts classified as current assets									(88	)
Investment carrying value								$	569

At June 30, 2025 and December 31, 2024, the investments in debt securities of our insurance subsidiaries were classified as “available-for-sale.” Changes in unrealized gains and losses that are not credit-related are recorded as adjustments to other comprehensive income or loss.

NOTE 5 — INVESTMENTS OF INSURANCE SUBSIDIARIES (continued)

Scheduled maturities of investments in debt securities at June 30, 2025 were as follows (dollars in millions):

	Amortized Cost		Fair Value
Due in one year or less	$	13	$	13
Due after one year through five years		148		144
Due after five years through ten years		128		117
Due after ten years		60		57
	$	349	$	331

The average expected maturity of the investments in debt securities at June 30, 2025 was 4.2 years, compared to the average scheduled maturity of 8.3 years. Expected and scheduled maturities may differ because the issuers of certain securities have the right to call, prepay or otherwise redeem such obligations prior to their scheduled maturity date.