Investments of Insurance Subsidiaries

9 Months Ended

Sep. 30, 2015

Investments, Debt and Equity Securities [Abstract]

Investments of Insurance Subsidiaries

NOTE 5 — INVESTMENTS OF INSURANCE SUBSIDIARIES

A summary of our insurance subsidiaries’ investments at September 30, 2015 and December 31, 2014 follows (dollars in millions):

	September 30, 2015
	Amortized Cost		Unrealized Amounts					Fair Value
			Gains		Losses
Debt securities:
States and municipalities	$	429	$	16	$	(1	)	$	444
Money market funds		13		—		—			13
		442		16		(1	)		457
Equity securities		1		2		—			3
	$	443	$	18	$	(1	)		460
Amounts classified as current assets									(51	)
Investment carrying value								$	409

	December 31, 2014
	Amortized Cost		Unrealized Amounts					Fair Value
			Gains		Losses
Debt securities:
States and municipalities	$	477	$	18	$	(1	)	$	494
Money market funds		61		—		—			61
		538		18		(1	)		555
Equity securities		1		2		—			3
	$	539	$	20	$	(1	)		558
Amounts classified as current assets									(64	)
Investment carrying value								$	494

At September 30, 2015 and December 31, 2014, the investments of our insurance subsidiaries were classified as “available-for-sale.” Changes in temporary unrealized gains and losses are recorded as adjustments to other comprehensive income (loss).

Scheduled maturities of investments in debt securities at September 30, 2015 were as follows (dollars in millions):

	Amortized Cost		Fair Value
Due in one year or less	$	61	$	61
Due after one year through five years		172		177
Due after five years through ten years		108		114
Due after ten years		101		105
	$	442	$	457

The average expected maturity of the investments in debt securities at September 30, 2015 was 4.2 years, compared to the average scheduled maturity of 5.8 years. Expected and scheduled maturities may differ because the issuers of certain securities have the right to call, prepay or otherwise redeem such obligations prior to their scheduled maturity date.