Note 8. Investment gains/losses

Investment gains/losses are summarized below (in millions).


	First Quarter
	2016			2015
Fixed maturity securities—
Gross gains from sales and other disposals	$	19		$	29
Gross losses from sales and other disposals		(3	)		(38)
Equity securities—
Gross gains from sales and redemptions		1,807			106
Gross losses from sales and redemptions		(10	)		(6)
Other		37			6

	$	1,850		$	97

Gains from sales and other dispositions of equity securities in the first quarter of 2016 included a pre-tax non-cash holding gain of approximately $1.1 billion from the exchange of our P&G common stock in connection with the acquisition of Duracell. The pre-tax gain represented the excess of the fair value of Duracell over our cost of P&G shares as of the exchange date. Our after-tax gain from this transaction was approximately $1.9 billion. The exchange transaction was structured as a tax-free reorganization under the Internal Revenue Code. As a result, no income taxes are currently payable on the excess of the fair value of the business received over the tax basis of the P&G shares exchanged. Income tax expense in the first quarter of 2016 also included a benefit from the reduction of certain deferred income tax liabilities that we recorded in 2005 in connection with our exchange of The Gillette Company common stock for P&G common stock as a result of a merger between the two companies.

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.