Investments of Insurance Subsidiaries

12 Months Ended

Dec. 31, 2019

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):

	2019
	Amortized Cost		Unrealized Amounts				Fair Value
			Gains		Losses
Debt securities	$	359	$	18	$	—	$	377
Money market funds and other		85		—		—		85
	$	444	$	18	$	—		462
Amounts classified as current assets								(147	)
Investment carrying value							$	315

	2018
	Amortized Cost		Unrealized Amounts					Fair Value
			Gains		Losses
Debt securities	$	338	$	5	$	(2	)	$	341
Money market funds and other		68		—		—			68
	$	406	$	5	$	(2	)		409
Amounts classified as current assets									(47	)
Investment carrying value								$	362

At December 31, 2019 and 2018, the investments in debt securities of our insurance subsidiaries were classified as “available-for-sale.” Changes in unrealized gains and losses are recorded as adjustments to other comprehensive income (loss).

Scheduled maturities of investments in debt securities at December 31, 2019 were as follows (dollars in millions):

	Amortized Cost		Fair Value
Due in one year or less	$	9	$	9
Due after one year through five years		85		88
Due after five years through ten years		190		202
Due after ten years		75		78
	$	359	$	377

The average expected maturity of the investments in debt securities at December 31, 2019 was 5.6 years, compared to the average scheduled maturity of 10.5 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.