Investments in Debt and Equity Securities (Tables)

9 Months Ended

Sep. 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:



	September 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	48		—			48		60		—			60

Corporate bonds
Corporate bonds	529		3			532		489		3			492
Asset-backed securities	76		—			76		90		—			90

Mortgage-backed debt securities
U.S. governmental agency	245		(2		)	243		225		(2		)	223
Residential	8		—			8		10		—			10
Commercial	17		—			17		36		—			36

Equity securities
Large capitalization value	313		36			349		280		32			312
Real estate investment trust (REIT)	104		5			109		77		2			79
Smaller company growth	43		22			65		41		15			56
Total	$	1,393	$	64		$	1,457	$	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:

	September 30, 2017
	Less than 12 months¹				12 months or more ¹				Total
(Millions of dollars)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Mortgage-backed debt securities
U.S. governmental agency	102		1		89		2		191		3
Equity securities
Large capitalization value	72		5		14		3		86		8
Small company growth	9		1		2		—		11		1
Total	$	183	$	7	$	105	$	5	$	288	$	12



	December 31, 2016
	Less than 12 months ¹				12 months or more ¹				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 September 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.



	September 30, 2017
(Millions of dollars)	Cost Basis		Fair Value
Due in one year or less	$	169	$	170
Due after one year through five years	415		417
Due after five years through ten years	55		55
Due after ten years	24		24
U.S. governmental agency mortgage-backed securities	245		243
Residential mortgage-backed securities	8		8
Commercial mortgage-backed securities	17		17
Total debt securities – available-for-sale	$	933	$	934

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



Sales of Securities:
	Three Months Ended September 30				Nine Months Ended September 30
(Millions of dollars)	2017		2016		2017		2016
Proceeds from the sale of available-for-sale securities	$	244	$	109	$	431	$	304
Gross gains from the sale of available-for-sale securities	$	38	$	10	$	40	$	43
Gross losses from the sale of available-for-sale securities	$	1	$	1	$	3	$	3