Investments of Insurance Subsidiaries

12 Months Ended

Dec. 31, 2017

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):

	2017
	Amortized Cost		Unrealized Amounts				Fair Value
			Gains		Losses
States and municipalities debt securities	$	361	$	10	$	—	$	371
Money market funds and other		101		—		—		101
	$	462	$	10	$	—		472
Amounts classified as current assets								(54	)
Investment carrying value							$	418

	2016
	Amortized Cost		Unrealized Amounts					Fair Value
			Gains		Losses
States and municipalities debt securities	$	345	$	9	$	(1	)	$	353
Money market funds and other		29		3		—			32
	$	374	$	12	$	(1	)		385
Amounts classified as current assets									(49	)
Investment carrying value								$	336

At December 31, 2017 and 2016, 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, 2017 were as follows (dollars in millions):

	Amortized Cost		Fair Value
Due in one year or less	$	31	$	31
Due after one year through five years		84		86
Due after five years through ten years		187		194
Due after ten years		59		60
	$	361	$	371

The average expected maturity of the investments in debt securities at December 31, 2017 was 4.8 years, compared to the average scheduled maturity of 6.5 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.