Investments of Insurance Subsidiaries

12 Months Ended

Dec. 31, 2016

Investments, Debt and Equity Securities [Abstract]

Investments of Insurance Subsidiaries

NOTE 6 — INVESTMENTS OF INSURANCE SUBSIDIARIES

A summary of the insurance subsidiaries’ investments at December 31 follows (dollars in millions):

	2016
	Amortized Cost		Unrealized Amounts					Fair Value
			Gains		Losses
Debt securities:
States and municipalities	$	345	$	9	$	(1	)	$	353
Money market funds		28		—		—			28
		373		9		(1	)		381
Equity securities		1		3		—			4
	$	374	$	12	$	(1	)		385
Amounts classified as current assets									(49	)
Investment carrying value								$	336

	2015
	Amortized Cost		Unrealized Amounts					Fair Value
			Gains		Losses
Debt securities:
States and municipalities	$	428	$	17	$	(1	)	$	444
Money market funds		34		—		—			34
		462		17		(1	)		478
Equity securities		—		4		—			4
	$	462	$	21	$	(1	)		482
Amounts classified as current assets									(50	)
Investment carrying value								$	432

At December 31, 2016 and 2015, 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 December 31, 2016 were as follows (dollars in millions):

	Amortized Cost		Fair Value
Due in one year or less	$	91	$	91
Due after one year through five years		95		97
Due after five years through ten years		159		165
Due after ten years		28		28
	$	373	$	381

The average expected maturity of the investments in debt securities at December 31, 2016 was 3.7 years, compared to the average scheduled maturity of 5.3 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.