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Investments in Debt and Equity Securities
 3 Months Ended
Mar. 31, 2022
Investments, Debt and Equity Securities [Abstract]  
Investments in Debt and Equity Securities Investments in debt and equity securities
 
We have investments in certain debt and equity securities, which we record at fair value and primarily include in Other assets in the Consolidated Statement of Financial Position.

We classify debt securities primarily as available-for-sale. We include the unrealized gains and losses arising from the revaluation of available-for-sale debt securities, net of applicable deferred income taxes, in equity (AOCI in the Consolidated Statement of Financial Position). We include the unrealized gains and losses arising from the revaluation of the equity securities in Other income (expense) in the Consolidated Statement of Results of Operations. We generally determine realized gains and losses on sales of investments using the specific identification method for available-for-sale debt and equity securities and include them in Other income (expense) in the Consolidated Statement of Results of Operations.

The cost basis and fair value of available-for-sale debt securities with unrealized gains and losses included in equity (AOCI in the Consolidated Statement of Financial Position) were as follows:
Available-for-sale debt securities
March 31, 2022December 31, 2021
(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 bonds61 (1)60 61 — 61 
Corporate bonds      
Corporate bonds2,026 (38)1,988 1,027 19 1,046 
Asset-backed securities184 (1)183 175 1 176 
Mortgage-backed debt securities  
U.S. governmental agency328 (9)319 319 6 325 
Residential3 — 3 4 — 4 
Commercial103 (3)100 98 1 99 
Total available-for-sale debt securities$2,714 $(52)$2,662 $1,694 $27 $1,721 
Available-for-sale debt securities in an unrealized loss position:
 March 31, 2022
 
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
Government debt      
Other U.S. and non-U.S. government bonds$24 $1 $— $— $24 $1 
Corporate bonds
Corporate bonds1,433 37 61 6 1,494 43 
Asset-backed securities109 3 — — 109 3 
Mortgage-backed debt securities
U.S. governmental agency231 8 25 2 256 10 
Commercial98 3 1 — 99 3 
Total$1,895 $52 $87 $8 $1,982 $60 
 December 31, 2021
 
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$270 $4 $33 $1 $303 $5 
Mortgage-backed debt securities      
U.S. governmental agency89 1 22 — 111 1 
Total$359 $5 $55 $1 $414 $6 
1 Indicates the length of time that individual securities have been in a continuous unrealized loss position.
The unrealized losses on our investments in government debt, corporate bonds and mortgage-backed debt securities relate to changes in interest rates and credit-related yield spreads since time of purchase. We do not intend to sell the investments, and it is not likely that we will be required to sell the investments before recovery of their amortized cost basis. In addition, we did not expect credit-related losses on these investments as of March 31, 2022.
The cost basis and fair value of available-for-sale debt securities at March 31, 2022, by contractual maturity, are 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.        
March 31, 2022
(Millions of dollars)Cost BasisFair Value
Due in one year or less$508 $507 
Due after one year through five years1,369 1,341 
Due after five years through ten years327 317 
Due after ten years76 75 
U.S. governmental agency mortgage-backed securities328 319 
Residential mortgage-backed securities3 3 
Commercial mortgage-backed securities103 100 
Total debt securities – available-for-sale$2,714 $2,662 
  
Sales of available-for-sale debt securities: 
 Three Months Ended March 31
(Millions of dollars)20222021
Proceeds from the sale of available-for-sale securities$96 $100 
Gross gains from the sale of available-for-sale securities— — 
Gross losses from the sale of available-for-sale securities— — 
In addition, we had $813 million and $964 million of investments in time deposits classified as held-to-maturity debt securities as of March 31, 2022 and December 31, 2021, respectively. All these investments mature within one year and we include them in Prepaid expenses and other current assets in the Consolidated Statement of Financial Position. We record held-to-maturity debt securities at amortized cost, which approximates fair value. We did not have any unrealized gains or losses on these securities as of March 31, 2022 and December 31, 2021.
For the three months ended March 31, 2022 and 2021, the net unrealized gains (losses) for equity securities held at March 31, 2022 and 2021 were $(12) million and $20 million, respectively.