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INVESTMENT SECURITIES
 3 Months Ended
Mar. 31, 2016
Investments, Debt and Equity Securities [Abstract]  
INVESTMENT SECURITIES
INVESTMENT SECURITIES
Investment securities classified as current and long-term were as follows at March 31, 2016 and December 31, 2015, respectively:
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
 
(in millions)
March 31, 2016
 
 
 
 
 
 
 
U.S. Treasury and other U.S. government
corporations and agencies:
 
 
 
 
 
 
 
U.S. Treasury and agency obligations
$
451

 
$
2

 
$
—

 
$
453

Mortgage-backed securities
2,015

 
20

 
(1
)
 
2,034

Tax-exempt municipal securities
2,967

 
74

 
(3
)
 
3,038

Mortgage-backed securities:
 
 
 
 
 
 
 
Residential
11

 
—

 
—

 
11

Commercial
885

 
7

 
(33
)
 
859

Asset-backed securities
252

 
1

 
—

 
253

Corporate debt securities
2,870

 
187

 
(27
)
 
3,030

Total debt securities
$
9,451

 
$
291

 
$
(64
)
 
$
9,678

 
 
 
 
 
 
 
 
December 31, 2015
 
 
 
 
 
 
 
U.S. Treasury and other U.S. government
corporations and agencies:
 
 
 
 
 
 
 
U.S. Treasury and agency obligations
$
331

 
$
2

 
$
(1
)
 
$
332

Mortgage-backed securities
1,902

 
12

 
(23
)
 
1,891

Tax-exempt municipal securities
2,611

 
61

 
(4
)
 
2,668

Mortgage-backed securities:
 
 
 
 
 
 
 
Residential
13

 
—

 
—

 
13

Commercial
1,024

 
2

 
(41
)
 
985

Asset-backed securities
264

 
1

 
(2
)
 
263

Corporate debt securities
2,873

 
140

 
(55
)
 
2,958

Total debt securities
$
9,018

 
$
218

 
$
(126
)
 
$
9,110


Gross unrealized losses and fair values aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position were as follows at March 31, 2016 and December 31, 2015, respectively:
 
Less than 12 months
 
12 months or more
 
Total
 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
 
(in millions)
March 31, 2016
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury and other U.S.
government corporations
and agencies:
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury and agency
obligations
$
76

 
$
—

 
$
4

 
$
—

 
$
80

 
$
—

Mortgage-backed
securities
177

 
—

 
126

 
(1
)
 
303

 
(1
)
Tax-exempt municipal
securities
597

 
(2
)
 
42

 
(1
)
 
639

 
(3
)
Mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
Residential
2

 
—

 
3

 
—

 
5

 
—

Commercial
276

 
(6
)
 
249

 
(27
)
 
525

 
(33
)
Asset-backed securities
146

 
—

 
—

 
—

 
146

 
—

Corporate debt securities
374

 
(16
)
 
97

 
(11
)
 
471

 
(27
)
Total debt securities
$
1,648

 
$
(24
)
 
$
521

 
$
(40
)
 
$
2,169

 
$
(64
)
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2015
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury and other U.S.
government corporations
and agencies:
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury and agency
obligations
$
195

 
$
(1
)
 
$
14

 
$
—

 
$
209

 
$
(1
)
Mortgage-backed
securities
1,484

 
(20
)
 
86

 
(3
)
 
1,570

 
(23
)
Tax-exempt municipal
securities
843

 
(3
)
 
52

 
(1
)
 
895

 
(4
)
Mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
Residential
2

 
—

 
4

 
—

 
6

 
—

Commercial
626

 
(13
)
 
265

 
(28
)
 
891

 
(41
)
Asset-backed securities
258

 
(2
)
 
—

 
—

 
258

 
(2
)
Corporate debt securities
918

 
(45
)
 
63

 
(10
)
 
981

 
(55
)
Total debt securities
$
4,326

 
$
(84
)
 
$
484

 
$
(42
)
 
$
4,810

 
$
(126
)

Approximately 98% of our debt securities were investment-grade quality, with a weighted average credit rating of AA by S&P at March 31, 2016. Most of the debt securities that were below investment-grade were rated BB, the higher end of the below investment-grade rating scale. At March 31, 2016, 6% of our tax-exempt municipal securities were pre-refunded, generally with U.S. government and agency securities. Tax-exempt municipal securities that were not pre-refunded were diversified among general obligation bonds of U.S. states and local municipalities as well as special revenue bonds. General obligation bonds, which are backed by the taxing power and full faith of the issuer, accounted for 46% of the tax-exempt municipals that were not pre-refunded in the portfolio. Special revenue bonds, issued by a municipality to finance a specific public works project such as utilities, water and sewer, transportation, or education, and supported by the revenues of that project, accounted for the remaining 54% of these municipals. Our general obligation bonds are diversified across the United States with no individual state exceeding 9%. In addition, 5.4% of our tax-exempt securities were insured by bond insurers and had an equivalent weighted average S&P credit rating of AA exclusive of the bond insurers’ guarantee. Our investment policy limits investments in a single issuer and requires diversification among various asset types.
Residential mortgage-backed securities comprised approximately 98% of our agency mortgage-backed securities at March 31, 2016 and 98% at December 31, 2015.

The recoverability of our non-agency commercial mortgage-backed securities is supported by factors such as seniority, underlying collateral characteristics and credit enhancements. At March 31, 2016, these commercial mortgage-backed securities primarily were composed of senior tranches having higher credit support than junior tranches. The weighted average credit rating of all commercial mortgage-backed securities was AA+ at March 31, 2016.
The percentage of corporate securities associated with the financial services industry was 24% at March 31, 2016 and 25% at December 31, 2015.
Our unrealized loss from all securities was generated from approximately 360 positions out of a total of approximately 2,000 positions at March 31, 2016. All issuers of securities we own that were trading at an unrealized loss at March 31, 2016 remain current on all contractual payments. After taking into account these and other factors previously described, we believe these unrealized losses primarily were caused by an increase in market interest rates in the current markets since the time the securities were purchased. At March 31, 2016, we did not intend to sell the securities with an unrealized loss position in accumulated other comprehensive income, and it is not likely that we will be required to sell these securities before recovery of their amortized cost basis. As a result, we believe that the securities with an unrealized loss were not other-than-temporarily impaired at March 31, 2016.

The detail of realized gains (losses) related to investment securities and included within investment income was as follows for the three months ended March 31, 2016 and 2015:
 
Three Months Ended
March 31,
 
2016
 
2015
 
(in millions)
Gross realized gains
$
31

 
$
17

Gross realized losses
(11
)
 
(8
)
Net realized capital gains
$
20


$
9


There were no material other-than-temporary impairments for the three months ended March 31, 2016 or 2015.
The contractual maturities of debt securities available for sale at March 31, 2016, regardless of their balance sheet classification, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
 
Amortized
Cost
 
Fair
Value
 
(in millions)
Due within one year
$
420

 
$
419

Due after one year through five years
1,961

 
2,006

Due after five years through ten years
1,432

 
1,473

Due after ten years
2,475

 
2,623

Mortgage and asset-backed securities
3,163

 
3,157

Total debt securities
$
9,451

 
$
9,678