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Investments in Debt and Equity Securities
 3 Months Ended
Mar. 31, 2023
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, 2023December 31, 2022
(Millions of dollars)
Cost
Basis
Unrealized Pretax Net Gains
(Losses)
Fair
Value
Cost
Basis
Unrealized Pretax Net Gains
(Losses)
Fair
Value
Government debt securities      
U.S. treasury bonds$10 $(1)$9 $9 $— $9 
Other U.S. and non-U.S. government bonds61 (4)57 60 (5)55 
Corporate debt securities     
Corporate bonds and other debt securities2,594 (75)2,519 2,561 (95)2,466 
Asset-backed securities189 (5)184 187 (5)182 
Mortgage-backed debt securities  
U.S. governmental agency366 (25)341 364 (31)333 
Residential3 (1)2 3 (1)2 
Commercial135 (10)125 127 (10)117 
Total available-for-sale debt securities$3,358 $(121)$3,237 $3,311 $(147)$3,164 
Available-for-sale debt securities in an unrealized loss position:
 March 31, 2023
 
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 securities      
Other U.S. and non-U.S. government bonds$13 $1 $26 $4 $39 $5 
Corporate debt securities
Corporate bonds990 19 931 61 1,921 80 
Asset-backed securities67 2 86 4 153 6 
Mortgage-backed debt securities
U.S. governmental agency107 3 226 22 333 25 
Commercial42 2 83 8 125 10 
$1,219 $27 $1,352 $99 $2,571 $126 
 December 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 securities      
Other U.S. and non-U.S. government bonds$19 $1 $20 $4 $39 $5 
Corporate debt securities
Corporate bonds1,815 46 357 50 2,172 96 
Asset-backed securities75 2 55 3 130 5 
Mortgage-backed debt securities      
U.S. governmental agency229 16 98 15 327 31 
Residential2 — 1 1 3 1 
Commercial63 5 54 5 117 10 
Total$2,203 $70 $585 $78 $2,788 $148 
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 securities, corporate debt securities, 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 respective amortized cost basis. In addition, we did not expect credit-related losses on these investments as of March 31, 2023.

The cost basis and fair value of available-for-sale debt securities at March 31, 2023, 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, 2023
(Millions of dollars)Cost BasisFair Value
Due in one year or less$961 $950 
Due after one year through five years1,571 1,511 
Due after five years through ten years257 245 
Due after ten years65 63 
U.S. governmental agency mortgage-backed securities366 341 
Residential mortgage-backed securities3 2 
Commercial mortgage-backed securities135 125 
Total debt securities – available-for-sale$3,358 $3,237 
  
Sales of available-for-sale debt securities: 
 Three Months Ended March 31
(Millions of dollars)20232022
Proceeds from the sale of available-for-sale securities$223 $96 
Gross gains from the sale of available-for-sale securities— — 
Gross losses from the sale of available-for-sale securities— — 
In addition, we had $250 million of investments in time deposits classified as held-to-maturity debt securities as of March 31, 2023. We did not have any investments classified as held-to-maturity debt securities as of December 31, 2022. 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.
For the three months ended March 31, 2023 and 2022, the net unrealized gains (losses) for equity securities held at March 31, 2023 and 2022 were $(8) million and $(12) million, respectively.