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Investments in Debt and Equity Securities (Tables)
 6 Months Ended
Jun. 30, 2018
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 with unrealized gains and losses included in equity (Accumulated other comprehensive income (loss) in the Consolidated Statement of Financial Position) were as follows:
 
June 30, 2018
 
December 31, 2017
(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
$
9

 
$
—

 
$
9

 
$
10

 
$
—

 
$
10

Other U.S. and non-U.S. government bonds
47

 
—

 
47

 
42

 
—

 
42

 
 
 
 
 
 
 
 
 
 
 
 
Corporate bonds
 

 
 

 
 
 
 

 
 

 
 

Corporate bonds
677

 
(12
)
 
665

 
585

 
(1
)
 
584

Asset-backed securities
61

 
—

 
61

 
67

 
—

 
67

 
 
 
 
 
 
 
 
 
 
 
 
Mortgage-backed debt securities
 
 
 
 
 
 
 

 
 

 
 

U.S. governmental agency
304

 
(8
)
 
296

 
265

 
(4
)
 
261

Residential
7

 
—

 
7

 
8

 
—

 
8

Commercial
16

 
(1
)
 
15

 
17

 
—

 
17

Total debt securities
$
1,121

 
$
(21
)
 
$
1,100

 
$
994

 
$
(5
)
 
$
989

 
 
 
 
 
 
 
 
 
 
 
 
Equity securities1
 
 
 
 
 
 
 

 
 

 
 

Large capitalization value
 
 
 
 
 
 
287

 
(3
)
 
284

Real estate investment trust (REIT)
 
 
 
 
 
 
104

 
6

 
110

Smaller company growth
 
 
 
 
 
 
40

 
16

 
56

Total equity securities
 
 
 
 
 
 
$
431

 
$
19

 
$
450

 
 
 
 
 
 
 
 
 
 
 
 
1 Beginning January 1, 2018, the unrealized gains and losses arising from the revaluation of the equity securities are included in Other income (expense) in the Consolidated Statement of Results of Operations. See Note 2 for additional information.
 
 
 
 
 
 
 
 
 
 
 
 
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, 2018
 
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
$
529

 
$
12

 
$
29

 
$
1

 
$
558

 
$
13

Mortgage-backed debt securities
 
 
 
 
 
 
 
 
 
 
 
U.S. governmental agency
157

 
3

 
119

 
5

 
276

 
8

Total
$
686

 
$
15

 
$
148

 
$
6

 
$
834

 
$
21

 
December 31, 2017
 
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
$
312

 
$
2

 
$
38

 
$
—

 
$
350

 
$
2

Mortgage-backed debt securities
 

 
 

 
 

 
 

 
 

 
 

U.S. governmental agency
129

 
1

 
110

 
3

 
239

 
4

Equity securities
 

 
 

 
 

 
 

 
 

 
 

Large capitalization value
129

 
5

 
14

 
2

 
143

 
7

Smaller company growth
17

 
1

 
1

 
—

 
18

 
1

Total
$
587

 
$
9

 
$
163

 
$
5

 
$
750

 
$
14

 
 
 
 
 
 
 
 
 
 
 
 
1 Indicates the 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, 2018, 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, 2018
(Millions of dollars)
Cost Basis
 
Fair Value
Due in one year or less
$
135

 
$
135

Due after one year through five years
518

 
509

Due after five years through ten years
123

 
120

Due after ten years
18

 
18

U.S. governmental agency mortgage-backed securities
304

 
296

Residential mortgage-backed securities
7

 
7

Commercial mortgage-backed securities
16

 
15

Total debt securities – available-for-sale
$
1,121

 
$
1,100

 
 
 
 
Schedule of proceeds and gross gain and losses from the sale of available-for-sale securities
Sales of available-for-sale securities:
 
 
 
 
Three Months Ended
June 30
 
Six Months Ended
June 30
(Millions of dollars)
20181
 
2017
 
20181
 
2017
Proceeds from the sale of available-for-sale securities
$
67

 
$
98

 
$
140

 
$
187

Gross gains from the sale of available-for-sale securities
$
—

 
$
1

 
$
—

 
$
2

Gross losses from the sale of available-for-sale securities
$
—

 
$
1

 
$
—

 
$
2

 
 
 
 
 
 
 
 
1 Beginning January 1, 2018, equity securities are no longer classified as available-for-sale securities. See Note 2 for additional information.