Investments (Notes)

9 Months Ended

Sep. 30, 2023

Investments, Debt and Equity Securities [Abstract]

Investments [Text Block]

Investments

(a)Debt Securities

Following is a summary of debt securities as of September 30, 2023 and December 31, 2022:

	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(Amounts are in millions)
September 30, 2023
Taxable bonds	$	11,373		1		829	10,545
Tax exempt bonds	20			—		—	20
Restricted investments	187			—		5	182
	$	11,580		1		834	10,747
December 31, 2022
Taxable bonds	$	9,705		6		830	8,881
Tax exempt bonds	37			—		—	37
Restricted investments	170			—		4	166
	$	9,912		6		834	9,084

The Company maintains restricted investments primarily for the benefit of the Company’s insurance carrier related to self-insurance reserves. These investments are held as collateral and not used for claim payments.

Following is a summary of the cost and fair value of debt securities by expected maturity as of September 30, 2023 and December 31, 2022:

	September 30, 2023				December 31, 2022
	Cost		Fair Value		Cost		Fair Value
	(Amounts are in millions)
Due in one year or less	$	1,783		1,771		570	566
Due after one year through five years	9,239			8,466		8,355	7,661
Due after five years through ten years	542			495		985	855
Due after ten years	16			15		2	2
	$	11,580		10,747		9,912	9,084

The Company had no debt securities with credit losses as of September 30, 2023 and December 31, 2022.

Following is a summary of debt securities with other unrealized losses by the time period impaired as of September 30, 2023 and December 31, 2022:

	Less Than 12 Months				12 Months or Longer			Total
	Fair Value		Unrealized Losses		Fair Value	Unrealized Losses		Fair Value	Unrealized Losses
	(Amounts are in millions)
September 30, 2023
Taxable bonds	$	2,442		29	7,648		800	10,090		829
Restricted investments	62			2	120		3	182		5
	$	2,504		31	7,768		803	10,272		834
December 31, 2022
Taxable bonds	$	3,705		199	4,627		631	8,332		830
Restricted investments	151			2	15		2	166		4
	$	3,856		201	4,642		633	8,498		834

There are 546 debt securities contributing to the total unrealized losses of $834 million as of September 30, 2023. Unrealized losses related to debt securities are primarily due to increases in interest rates that occurred since the debt securities were purchased. The Company continues to receive scheduled principal and interest payments on these debt securities.

(b)Equity Securities

Equity securities are measured at fair value with net unrealized gains and losses from changes in the fair value recognized in earnings (fair value adjustment). The fair value of equity securities was $2.5 billion as of September 30, 2023 and December 31, 2022.

(c)Investment Income (Loss)

Net realized gain or loss on investments represents the difference between the cost and the proceeds from the sale of debt and equity securities. The net realized gain or loss on investments excludes the net gain or loss on the sale of equity securities previously recognized through the fair value adjustment, which is presented separately in the following table.

Following is a summary of investment income (loss) for the three and nine months ended September 30, 2023 and September 24, 2022:

		Three Months Ended					Nine Months Ended
	September 30, 2023			September 24, 2022		September 30, 2023		September 24, 2022
	(Amounts are in millions)
Interest and dividend income		$	101		61		273		173
Net realized (loss) gain on investments		—			(3)		134		(2)
		101			58		407		171
Fair value adjustment, due to net unrealized (loss) gain, on equity securities held at end of period		(144)			(556)		225		(1,495)
Net gain on sale of equity securities previously recognized through fair value adjustment		—			—		(48)		—
		$	(43)		(498)		584		(1,324)