Investments of Insurance Subsidiaries

12 Months Ended

Dec. 31, 2014

Investments, Debt and Equity Securities [Abstract]

Investments of Insurance Subsidiaries

NOTE 6 — INVESTMENTS OF INSURANCE SUBSIDIARIES

A summary of the insurance subsidiaries’ investments at December 31 follows (dollars in millions):

	2014
	Amortized Cost		Unrealized Amounts					Fair Value
			Gains		Losses
Debt securities:
States and municipalities	$	477	$	18	$	(1	)	$	494
Money market funds		61		—		—			61
		538		18		(1	)		555
Equity securities		1		2		—			3
	$	539	$	20	$	(1	)		558
Amounts classified as current assets									(64	)
Investment carrying value								$	494

	2013
	Amortized Cost		Unrealized Amounts					Fair Value
			Gains		Losses
Debt securities:
States and municipalities	$	404	$	11	$	(3	)	$	412
Money market funds		94		—		—			94
		498		11		(3	)		506
Equity securities		2		2		—			4
	$	500	$	13	$	(3	)		510
Amounts classified as current assets									(62	)
Investment carrying value								$	448

At December 31, 2014 and 2013, the investments of our insurance subsidiaries were classified as “available-for-sale.” Changes in temporary unrealized gains and losses are recorded as adjustments to other comprehensive income (loss).

Scheduled maturities of investments in debt securities at December 31, 2014 were as follows (dollars in millions):

	Amortized Cost		Fair Value
Due in one year or less	$	82	$	82
Due after one year through five years		229		234
Due after five years through ten years		109		116
Due after ten years		118		123
	$	538	$	555

The average expected maturity of the investments in debt securities at December 31, 2014 was 3.8 years, compared to the average scheduled maturity of 5.6 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.