Investments of Insurance Subsidiaries

12 Months Ended

Dec. 31, 2020

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):

	2020
	Amortized Cost		Unrealized Amounts				Fair Value
			Gains		Losses
Debt securities	$	384	$	32	$	—	$	416
Money market funds and other		88		—		—		88
	$	472	$	32	$	—		504
Amounts classified as current assets								(116	)
Investment carrying value							$	388
	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 December 31, 2020 and 2019, the investments in debt securities of our insurance subsidiaries were classified as “available-for-sale.” Changes in unrealized gains and losses are recorded as adjustments to other comprehensive income (loss).

Scheduled maturities of investments in debt securities at December 31, 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		147		156
Due after five years through ten years		157		174
Due after ten years		76		82
	$	384	$	416

The average expected maturity of the investments in debt securities at December 31, 2020 was 5.2 years, compared to the average scheduled maturity of 9.4 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.