Investments in Debt and Equity Securities (Tables)

6 Months Ended

Jun. 30, 2017

Investments, Debt and Equity Securities [Abstract]

Cost basis and fair value of available-for-sale securities

The cost basis and fair value of debt and equity securities were as follows:

	June 30, 2017							December 31, 2016
(Millions of dollars)	Cost Basis		Unrealized Pretax Net Gains (Losses)			Fair Value		Cost Basis		Unrealized Pretax Net Gains (Losses)			Fair Value
Government debt
U.S. treasury bonds	$	10	$	—		$	10	$	9	$	—		$	9
Other U.S. and non-U.S. government bonds	46		—			46		60		—			60
Corporate bonds
Corporate bonds	520		3			523		489		3			492
Asset-backed securities	82		—			82		90		—			90
Mortgage-backed debt securities
U.S. governmental agency	233		(1		)	232		225		(2		)	223
Residential	9		—			9		10		—			10
Commercial	26		—			26		36		—			36
Equity securities
Large capitalization value	282		55			337		280		32			312
Real estate investment trust (REIT)	93		4			97		77		2			79
Smaller company growth	41		20			61		41		15			56
Total	$	1,342	$	81		$	1,423	$	1,317	$	50		$	1,367

Investments in an unrealized loss position that are not other-than-temporarily impaired:

Available-for-sale investments in an unrealized loss position that are not other-than-temporarily impaired:
	June 30, 2017
	Less than 12 months1				12 months or more1				Total
(Millions of dollars)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Corporate bonds
Corporate bonds	$	146	$	1	$	11	$	—	$	157	$	1
Mortgage-backed debt securities
U.S. governmental agency	142		2		34		1		176		3
Equity securities
Large capitalization value	49		5		8		1		57		6
Small company growth	5		1		1		—		6		1
Total	$	342	$	9	$	54	$	2	$	396	$	11

	December 31, 2016
	Less than 12 months1				12 months or more1				Total
(Millions of dollars)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Corporate bonds
Corporate bonds	$	131	$	1	$	13	$	—	$	144	$	1
Mortgage-backed debt securities
U.S. governmental agency	167		2		11		—		178		2
Equity securities
Large capitalization value	68		6		11		2		79		8
Smaller company growth	10		1		3		1		13		2
Total	$	376	$	10	$	38	$	3	$	414	$	13

¹  Indicates length of time that individual securities have been in a continuous unrealized loss position.

Cost basis and fair value of the available-for-sale debt securities by contractual maturity

The cost basis and fair value of the available-for-sale debt securities at June 30, 2017, by contractual maturity, is shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to prepay and creditors may have the right to call obligations.

	June 30, 2017
(Millions of dollars)	Cost Basis		Fair Value
Due in one year or less	$	198	$	199
Due after one year through five years	406		407
Due after five years through ten years	28		28
Due after ten years	26		27
U.S. governmental agency mortgage-backed securities	233		232
Residential mortgage-backed securities	9		9
Commercial mortgage-backed securities	26		26
Total debt securities – available-for-sale	$	926	$	928

Schedule of proceeds and gross gain and losses from the sale of available-for-sale securities

Sales of Securities:
	Three Months Ended June 30				Six Months Ended June 30
(Millions of dollars)	2017		2016		2017		2016
Proceeds from the sale of available-for-sale securities	$	98	$	146	$	187	$	195
Gross gains from the sale of available-for-sale securities	$	1	$	32	$	2	$	33
Gross losses from the sale of available-for-sale securities	$	1	$	1	$	2	$	2