Note 8. Investment gains/losses

Investment gains/losses, including other-than-temporary impairment (“OTTI”) losses are summarized below (in millions).


	Second Quarter						First Six Months
	2015			2014			2015			2014
Fixed maturity securities —
Gross gains	$	53		$	39		$	82		$	229
Gross losses		(46	)		(19	)		(84	)		(48	)
Equity securities —
Gross gains		342			2,391			448			3,395
Gross losses		(14	)		(3	)		(20	)		(3	)
OTTI losses		—			—			—			(19	)
Other		27			(42	)		33			(57	)

	$	362		$	2,366		$	459		$	3,497

Gains from equity securities in 2014 included non-cash holding gains of approximately $1.1 billion in the second quarter and $2.1 billion in the first six months from the exchange of Phillips 66 (“PSX”) common stock in connection with the acquisition of Phillips Specialty Products Inc. (subsequently renamed Lubrizol Specialty Products Inc. (“LSPI”)) and the exchange of Graham Holding Company (“GHC”) common stock for WPLG, Inc. (“WPLG”). The PSX/LSPI exchange was completed February 25, 2014 and the GHC/WPLG exchange was completed June 30, 2014. The holding gains represented the excess of the respective fair value of the net assets of LSPI and WPLG received over the respective cost basis of the PSX and GHC shares exchanged.

We record investments in equity and fixed maturity securities classified as available-for-sale at fair value and record the difference between fair value and cost in other comprehensive income. OTTI losses recognized in earnings represent reductions in the cost basis of the investment, but not the fair value. Accordingly, such losses that are included in earnings are generally offset by a credit to other comprehensive income, producing no net effect on shareholders’ equity as of the balance sheet date.