Investments of Insurance Subsidiaries

9 Months Ended

Sep. 30, 2018

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, 2018 and December 31, 2017 follows (dollars in millions):

	September 30, 2018
	Amortized Cost		Unrealized Amounts					Fair Value
			Gains		Losses
Debt securities	$	343	$	4	$	(2	)	$	345
Money market funds and other		68		—		—			68
	$	411	$	4	$	(2	)		413
Amounts classified as current assets									(46	)
Investment carrying value								$	367

	December 31, 2017
	Amortized Cost		Unrealized Amounts				Fair Value
			Gains		Losses
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

At September 30, 2018 and December 31, 2017, 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, 2018 were as follows (dollars in millions):

	Amortized Cost		Fair Value
Due in one year or less	$	9	$	9
Due after one year through five years		57		58
Due after five years through ten years		210		212
Due after ten years		67		66
	$	343	$	345

The average expected maturity of the investments in debt securities at September 30, 2018 was 5.7 years, compared to the average scheduled maturity of 10.1 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.