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INVESTMENT SECURITIES
 12 Months Ended
Dec. 31, 2019
Investments, Debt and Equity Securities [Abstract]  
INVESTMENT SECURITIES INVESTMENT SECURITIES
Investment securities classified as current and long-term were as follows at December 31, 2019 and 2018, respectively:
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
 
(in millions)
December 31, 2019
 
 
 
 
 
 
 
U.S. Treasury and other U.S. government
corporations and agencies:
 
 
 
 
 
 
 
U.S. Treasury and agency obligations
$
353

 
$
1

 
$
—

 
$
354

Mortgage-backed securities
3,628

 
85

 
(3
)
 
3,710

Tax-exempt municipal securities
1,433

 
30

 
—

 
1,463

Mortgage-backed securities:
 
 
 
 
 
 
 
Commercial
786

 
18

 
—

 
804

Asset-backed securities
1,093

 
3

 
(3
)
 
1,093

Corporate debt securities
3,867

 
82

 
(2
)
 
3,947

Total debt securities
$
11,160

 
$
219

 
$
(8
)
 
$
11,371

December 31, 2018
 
 
 
 
 
 
 
U.S. Treasury and other U.S. government
corporations and agencies:
 
 
 
 
 
 
 
U.S. Treasury and agency obligations
$
419

 
$
1

 
$
(3
)
 
$
417

Mortgage-backed securities
2,595

 
3

 
(54
)
 
2,544

Tax-exempt municipal securities
2,805

 
3

 
(37
)
 
2,771

Mortgage-backed securities:
 
 
 
 
 
 
 
Residential
55

 
—

 
—

 
55

Commercial
537

 
—

 
(14
)
 
523

Asset-backed securities
991

 
1

 
(7
)
 
985

Corporate debt securities
3,239

 
1

 
(98
)
 
3,142

Total debt securities
$
10,641

 
$
9

 
$
(213
)
 
$
10,437



We also held $7 million of equity securities carried at fair value as of December 31, 2019 consisting of common stock.
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 December 31, 2019 and 2018, 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)
 
December 31, 2019
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury and other U.S. government
corporations and agencies:
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury and agency obligations
$
48

 
$
—

 
$
23

 
$
—

 
$
71

 
$
—

 
Mortgage-backed securities
315

 
(1
)
 
204

 
(2
)
 
519

 
(3
)
 
Tax-exempt municipal securities
58

 
—

 
75

 
—

 
133

 
—

 
Mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
118

 
—

 
36

 
—

 
154

 
—

 
Asset-backed securities
20

 
—

 
607

 
(3
)
 
627

 
(3
)
 
Corporate debt securities
589

 
(2
)
 
155

 
—

 
744

 
(2
)
 
Total debt securities
$
1,148

 
$
(3
)
 
$
1,100

 
$
(5
)
 
$
2,248

 
$
(8
)
 
December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury and other U.S. government
corporations and agencies:
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury and agency obligations
$
179

 
$
(1
)
 
$
153

 
$
(2
)
 
$
332

 
$
(3
)
 
Mortgage-backed securities
956

 
(16
)
 
1,019

 
(38
)
 
1,975

 
(54
)
 
Tax-exempt municipal securities
809

 
(9
)
 
1,648

 
(28
)
 
2,457

 
(37
)
 
Mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
Residential
—

 
—

 
15

 
—

 
15

 
—

 
Commercial
372

 
(8
)
 
133

 
(6
)
 
505

 
(14
)
 
Asset-backed securities
824

 
(7
)
 
40

 
—

 
864

 
(7
)
 
Corporate debt securities
1,434

 
(35
)
 
1,439

 
(63
)
 
2,873

 
(98
)
 
Total debt securities
$
4,574

 
$
(76
)
 
$
4,447

 
$
(137
)
 
$
9,021

 
$
(213
)

Approximately 96% of our debt securities were investment-grade quality, with a weighted average credit rating of AA by S&P at December 31, 2019. Most of the debt securities that were below investment-grade were rated BB, the higher end of the below investment-grade rating scale. Tax-exempt municipal securities were diversified among general obligation bonds of states and local municipalities in the United States as well as special revenue bonds issued by municipalities to finance specific public works projects such as utilities, water and sewer, transportation, or education. Our general obligation bonds are diversified across the United States with no individual state exceeding 1% of our total debt securities. Our investment policy limits investments in a single issuer and requires diversification among various asset types.
Our unrealized loss from all securities was generated from approximately 235 positions out of a total of approximately 1,515 positions at December 31, 2019. All issuers of securities we own that were trading at an unrealized loss at December 31, 2019 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 December 31, 2019, 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 December 31, 2019.
The detail of realized gains (losses) related to investment securities and included within investment income was as follows for the years ended December 31, 2019, 2018, and 2017:
 
2019
 
2018
 
2017
 
(in millions)
Gross realized gains
$
129

 
$
106

 
$
35

Gross realized losses
(67
)
 
(16
)
 
(21
)
Net realized capital gains
$
62

 
$
90

 
$
14


There were no material other-than-temporary impairments in 2019, 2018, or 2017.
The contractual maturities of debt securities available for sale at December 31, 2019, 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
$
1,316

 
$
1,317

Due after one year through five years
1,974

 
2,013

Due after five years through ten years
1,724

 
1,780

Due after ten years
639

 
654

Mortgage and asset-backed securities
5,507

 
5,607

Total debt securities
$
11,160

 
$
11,371