Investments of Insurance Subsidiaries

12 Months Ended

Dec. 31, 2018

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):

	2018
	Amortized Cost		Unrealized Amounts					Fair Value
			Gains		Losses
Debt securities	$	338	$	5	$	(2	)	$	341
Money market funds and other		68		—		—			68
	$	406	$	5	$	(2	)		409
Amounts classified as current assets									(47	)
Investment carrying value								$	362

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

	Amortized Cost		Fair Value
Due in one year or less	$	3	$	3
Due after one year through five years		64		65
Due after five years through ten years		201		203
Due after ten years		70		70
	$	338	$	341

The average expected maturity of the investments in debt securities at December 31, 2018 was 6.2 years, compared to the average scheduled maturity of 10.5 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.