Investments of Insurance Subsidiaries

9 Months Ended

Sep. 30, 2020

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, 2020 and December 31, 2019 follows (dollars in millions):

	September 30, 2020
	Amortized Cost		Unrealized Amounts				Fair Value
			Gains		Losses
Debt securities	$	384	$	31	$	—	$	415
Money market funds and other		71		—		—		71
	$	455	$	31	$	—		486
Amounts classified as current assets								(96	)
Investment carrying value							$	390

	December 31, 2019
	Amortized Cost		Unrealized Amounts				Fair Value
			Gains		Losses
Debt securities	$	359	$	18	$	—	$	377
Money market funds and other		85		—		—		85
	$	444	$	18	$	—		462
Amounts classified as current assets								(147	)
Investment carrying value							$	315

At September 30, 2020 and December 31, 2019, the investments in debt securities of our insurance subsidiaries were classified as “available-for-sale.” Changes in unrealized gains and losses that are not credit-related are recorded as adjustments to other comprehensive income (loss).

Scheduled maturities of investments in debt securities at September 30, 2020 were as follows (dollars in millions):

	Amortized Cost		Fair Value
Due in one year or less	$	4	$	4
Due after one year through five years		127		135
Due after five years through ten years		175		192
Due after ten years		78		84
	$	384	$	415

The average expected maturity of the investments in debt securities at September 30, 2020 was 5.5 years, compared to the average scheduled maturity of 9.8 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.