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Investment Securities
 12 Months Ended
Dec. 31, 2019
Investments, Debt and Equity Securities [Abstract]  
Investment Securities
INVESTMENT SECURITIES
Investment securities principally include available-for-sale debt securities carried at fair value on the Consolidated Balance Sheets, with unrealized gains and losses recorded in AOCI, net of income taxes. Investment securities also include equity securities carried at fair value on the Consolidated Balance Sheets. Effective January 1, 2018, the unrealized gains and losses on equity securities are recorded in the Consolidated Statements of Income; prior to January 1, 2018, the unrealized gains and losses on equity securities were recorded in AOCI, net of income taxes.
Realized gains and losses are recognized upon disposition of available-for-sale securities using the specific identification method.
Refer to Note 14 for a description of our methodology for determining the fair value of investment securities.
The following is a summary of investment securities as of December 31:
201920182017
Description of Securities (Millions)
CostGross
Unrealized
Gains		Gross
Unrealized
Losses		Estimated
Fair
Value		CostGross
Unrealized
Gains		Gross
Unrealized
Losses		Estimated
Fair
Value		CostGross
Unrealized
Gains		Gross
Unrealized
Losses		Estimated
Fair
Value
Available-for-sale debt securities:
State and municipal obligations$236  $8  $(1) $243  $594  $4  $(2) $596  $1,369  $11  $(3) $1,377  
U.S. Government agency obligations9  —  —  9  10  —  —  10  11  —  —  11  
U.S. Government treasury obligations7,395  35  (1) 7,429  3,452  5  (17) 3,440  1,051  3  (9) 1,045  
Corporate debt securities27  —  —  27  28  —  —  28  28  —  —  28  
Mortgage-backed securities (a)
39  2  —  41  50  1  —  51  67  2  —  69  
Foreign government bonds and obligations578  1  —  579  474  —  —  474  581  —  —  581  
Equity securities (b)
55  25  
(c)
(2) 78  51  —  (3) 48  51  —  (3) 48  
Total$8,339  $71  $(4) $8,406  $4,659  $10  $(22) $4,647  $3,158  $16  $(15) $3,159  
(a)Represents mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae.
(b)Equity securities comprise investments in common stock, exchange-traded funds and mutual funds.
(c)During 2019, an equity investment transferred from Other assets to Investment securities following the completion of an initial public offering by the issuer of the securities. The investment had a fair value of $28 million with an associated cost of $3 million as of December 31, 2019. The gross unrealized gains include $9 million that were recognized during 2018.
The following table provides information about our investment securities with gross unrealized losses and the length of time that individual securities have been in an unrealized loss position as of December 31:
20192018
Less than 12 months12 months or moreLess than 12 months12 months or more
Description of Securities (Millions)
Estimated Fair
Value		Gross Unrealized
Losses		Estimated Fair
Value		Gross Unrealized
Losses		Estimated Fair
Value		Gross Unrealized
Losses		Estimated Fair
Value		Gross Unrealized
Losses
State and municipal obligations$18  $(1) $—  $—  $—  $—  $82  $(1) 
U.S. Government treasury obligations—  —  324  (1) 224  (2) 791  (15) 
Total$18  $(1) $324  $(1) $224  $(2) $873  $(16) 

The following table summarizes the gross unrealized losses due to temporary impairments by ratio of fair value to amortized cost as of December 31:
Less than 12 months12 months or moreTotal
Ratio of Fair Value to
Amortized Cost (Dollars in millions)
Number of
Securities		Estimated
Fair Value		Gross
Unrealized
Losses		Number of
Securities		Estimated
Fair Value		Gross
Unrealized
Losses		Number of
Securities		Estimated
Fair Value		Gross
Unrealized
Losses
2019:
90%–100%2$18  $(1) 3$324  $(1) 5$342  $(2) 
Total as of December 31, 20192$18  $(1) 3$324  $(1) 5$342  $(2) 
2018:
90%–100%2$224  $(2) 29$873  $(16) 31$1,097  $(18) 
Total as of December 31, 20182$224  $(2) 29$873  $(16) 31$1,097  $(18) 
The gross unrealized losses for available-for-sale debt securities are attributed to wider credit spreads for specific issuers, adverse changes in benchmark interest rates, or a combination thereof, all compared to those prevailing when the investment securities were purchased.
Overall, for the available-for-sale debt securities in gross unrealized loss positions, (i) we do not intend to sell the securities, (ii) it is more likely than not that we will not be required to sell the securities before recovery of the unrealized losses, and (iii) we expect that the contractual principal and interest will be received on the securities. As a result, we recognized no other-than-temporary impairment during the periods presented.
Weighted average yields and contractual maturities for investment securities with stated maturities as of December 31, 2019 were as follows:
(Millions)Due within 1 yearDue after 1 year but within 5 yearsDue after 5 years but within 10 yearsDue after 10 yearsTotal
State and municipal obligations(a)
$6  $39  $30  $168  $243  
U.S. Government agency obligations(a)
—  —  —  9  9  
U.S. Government treasury obligations6,019  1,270  140  —  7,429  
Corporate debt securities5  22  —  —  27  
Mortgage-backed securities(a)
—  —  —  41  41  
Foreign government bonds and obligations577  1  1  —  579  
Total Estimated Fair Value$6,607  $1,332  $171  $218  $8,328  
Total Cost$6,602  $1,307  $166  $209  $8,284  
Weighted average yields(b)
2.17 %2.27 %3.01 %3.99 %2.25 %
(a)The expected payments on state and municipal obligations, U.S. government agency obligations and mortgage-backed securities may not coincide with their contractual maturities because the issuers have the right to call or prepay certain obligations.
(b)Average yields for investment securities have been calculated using the effective yield on the date of purchase. Yields on tax-exempt investment securities have been computed on a tax-equivalent basis using the U.S. federal statutory tax rate of 21 percent.