Investments of Insurance Subsidiaries

3 Months Ended

Mar. 31, 2021

Investments, Debt and Equity Securities [Abstract]

Investments of Insurance Subsidiaries

NOTE 5 — INVESTMENTS OF INSURANCE SUBSIDIARIES

A summary of our insurance subsidiaries’ investments at March 31, 2021 and December 31, 2020 follows (dollars in millions):

	March 31, 2021
	Amortized Cost		Unrealized Amounts					Fair Value
			Gains		Losses
Debt securities	$	376	$	22	$	(1	)	$	397
Money market funds and other		104		—		—			104
	$	480	$	22	$	(1	)		501
Amounts classified as current assets									(108	)
Investment carrying value								$	393

	December 31, 2020
	Amortized Cost		Unrealized Amounts				Fair Value
			Gains		Losses
Debt securities	$	384	$	32	$	—	$	416
Money market funds and other		88		—		—		88
	$	472	$	32	$	—		504
Amounts classified as current assets								(116	)
Investment carrying value							$	388

At March 31, 2021 and December 31, 2020, 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 (loss).

Scheduled maturities of investments in debt securities at March 31, 2021 were as follows (dollars in millions):

	Amortized Cost		Fair Value
Due in one year or less	$	4	$	4
Due after one year through five years		144		152
Due after five years through ten years		157		167
Due after ten years		71		74
	$	376	$	397

The average expected maturity of the investments in debt securities at March 31, 2021 was 5.0 years, compared to the average scheduled maturity of 9.2 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.