INVESTMENTS

3 Months Ended

Apr. 01, 2022

Investments, Debt and Equity Securities [Abstract]

Equity Securities

The carrying values of our equity securities were included in the following line items in our consolidated balance sheets (in millions):


	Fair Value with Changes Recognized in Income		Measurement Alternative — No Readily Determinable Fair Value
April 1, 2022

Marketable securities	$	357	$	—
Other investments	745		43
Other noncurrent assets	1,493		—
Total equity securities	$	2,595	$	43
December 31, 2021

Marketable securities	$	376	$	—
Other investments	771		47
Other noncurrent assets	1,576		—
Total equity securities	$	2,723	$	47

The calculation of net unrealized gains and losses recognized during the period related to equity securities still held at the end of the period is as follows (in millions):


	Three Months Ended
	April 1, 2022		April 2, 2021
Net gains (losses) recognized during the period related to equity securities	$	(100)	$	155
Less: Net gains (losses) recognized during the period related to equity securities sold during the period	(132)		14
Net unrealized gains (losses) recognized during the period related to equity securities still held at the end of the period	$	32	$	141

Debt Securities

Our debt securities consisted of the following (in millions):


			Gross Unrealized				Estimated Fair Value
	Cost		Gains		Losses
April 1, 2022
Trading securities	$	41	$	—	$	(1)	$	40
Available-for-sale securities	1,933		25		(165)		1,793
Total debt securities	$	1,974	$	25	$	(166)	$	1,833
December 31, 2021
Trading securities	$	39	$	1	$	—	$	40
Available-for-sale securities	1,648		33		(132)		1,549
Total debt securities	$	1,687	$	34	$	(132)	$	1,589

The carrying values of our debt securities were included in the following line items in our consolidated balance sheets (in millions):


	April 1, 2022				December 31, 2021
	Trading Securities		Available-for-Sale Securities		Trading Securities		Available-for-Sale Securities

Marketable securities	$	40	$	1,542	$	40	$	1,283
Other noncurrent assets	—		251		—		266
Total debt securities	$	40	$	1,793	$	40	$	1,549

The contractual maturities of these available-for-sale debt securities as of April 1, 2022 were as follows (in millions):


	Cost		Estimated Fair Value
Within 1 year	$	70	$	68
After 1 year through 5 years	1,649		1,504
After 5 years through 10 years	43		57
After 10 years	171		164
Total	$	1,933	$	1,793

The Company expects that actual maturities may differ from the contractual maturities above because borrowers have the right to call or prepay certain obligations.

The sale and/or maturity of available-for-sale debt securities resulted in the following realized activity (in millions):


	Three Months Ended
		April 1, 2022		April 2, 2021
Gross gains		$	1	$	1
Gross losses		(5)		(4)
Proceeds		231		158

Captive Insurance Companies

In accordance with local insurance regulations, our consolidated captive insurance companies are required to meet and maintain minimum solvency capital requirements. The Company elected to invest a majority of its solvency capital in a portfolio of marketable equity and debt securities. These securities are included in the disclosures above. The Company uses one of our consolidated captive insurance companies to reinsure group annuity insurance contracts that cover the obligations of certain of our European and Canadian pension plans. This captive’s solvency capital funds included total equity and debt securities of $1,580 million and $1,670 million as of April 1, 2022 and December 31, 2021, respectively, which are classified in the line item other noncurrent assets in our consolidated balance sheets because the assets are not available to satisfy our current obligations.