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Investment Securities | 12 Months Ended
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Dec. 31, 2014
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Investment Securities | NOTE 5 Investment S ecurities Investment securities include debt and equity securities that the Company classifies as available-for-sale. The Company’s investment securities, principally debt securities, are carried at fair value on the Consolidated Balanc e Sheets with unrealized gains (losses) recorded in AOCI, net of income tax es. Realized gains and losses are recognized in results of operations upon disposition of the securities using the specific identification method on a trade date basis. Refer to Note 15 for a description of the Company’s methodology for determining the fair value of investment securities. The following is a summary of investment securities as of December 31:
|  | 2014 |  | 2013 |  |  | 2012
|  |  |  |  | Gross |  | Gross |  | Estimated |  |  |  |  | Gross |  | Gross |  | Estimated |  | Estimated
|  |  |  | Unrealized | Unrealized |  | Fair |  |  | Unrealized | Unrealized |  | Fair |  |  | Fair
Description of Securities (Millions) |  |  | Cost | Gains | Losses |  | Value |  | Cost | Gains | Losses |  | Value |  |  | Value
State and municipal obligations |  | $ | 3,366 |  | $ | 129 |  | $ | (2) |  | $ | 3,493 |  | $ | 4,060 |  | $ | 54 |  | $ | (79) |  | $ | 4,035 |  | $ | 4,474
U.S. Government agency obligations |  |  | 3 |  |  | ― |  |  | ― |  |  | 3 |  |  | 3 |  |  | ― |  |  | ― |  |  | 3 |  |  | 3
U.S. Government treasury obligations |  |  | 346 |  |  | 4 |  |  | ― |  |  | 350 |  |  | 318 |  |  | 3 |  |  | (1) |  |  | 320 |  |  | 338
Corporate debt securities |  |  | 37 |  |  | 3 |  |  | ― |  |  | 40 |  |  | 43 |  |  | 3 |  |  | ― |  |  | 46 |  |  | 79
Mortgage-backed securities (a) |  |  | 128 |  |  | 8 |  |  | ― |  |  | 136 |  |  | 160 |  |  | 5 |  |  | (1) |  |  | 164 |  |  | 224
Equity securities (b) |  |  | ― |  |  | 1 |  |  | ― |  |  | 1 |  |  | 29 |  |  | 95 |  |  | ― |  |  | 124 |  |  | 296
Foreign government bonds and obligations |  |  | 350 |  |  | 9 |  |  | ― |  |  | 359 |  |  | 272 |  |  | 5 |  |  | (1) |  |  | 276 |  |  | 149
Other (c) |  |  | 50 |  |  | ― |  |  | (1) |  |  | 49 |  |  | 50 |  |  | ― |  |  | (2) |  |  | 48 |  |  | 51
Total |  | $ | 4,280 |  | $ | 154 |  | $ | (3) |  | $ | 4,431 |  | $ | 4,935 |  | $ | 165 |  | $ | (84) |  | $ | 5,016 |  | $ | 5,614
Represents mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae. Primarily r epr esents the Company’s investment in the Industrial and Commercial Bank of China (ICBC) as of December 31, 2013 and 2012. Other comprises investments in various mutual funds. The following table provides information about the Company’s investment securities with gross unrealized losses and the length of time that individual securities have been in a continuous unrealized loss position as of December 31:
|  |  |  | 2014 |  | 2013
|  | Less than 12 months |  | 12 months or more |  | Less than 12 months |  | 12 months or more
|  |  |  |  |  |  | Gross |  |  |  |  |  | Gross |  |  |  |  | Gross |  |  |  |  | Gross
|  |  |  | Estimated | Unrealized | Estimated | Unrealized |  | Estimated | Unrealized | Estimated | Unrealized
Description of Securities (Millions) |  | Fair Value | Losses | Fair Value | Losses |  | Fair Value | Losses | Fair Value | Losses
State and municipal obligations |  | $ | ― |  | $ | ― |  | $ | 72 |  | $ | (2) |  | $ | 1,320 |  | $ | (63) |  | $ | 106 |  | $ | (16)
Foreign government bonds and obligations |  |  | ― |  |  | ― |  |  | ― |  |  | ― |  |  | 208 |  |  | (1) |  |  | ― |  |  | ―
U.S. Government treasury obligations |  |  | ― |  |  | ― |  |  | ― |  |  | ― |  |  | 166 |  |  | (1) |  |  | ― |  |  | ―
Mortgage-backed securities |  |  | ― |  |  | ― |  |  | ― |  |  | ― |  |  | 35 |  |  | (1) |  |  | ― |  |  | ―
Other |  |  | ― |  |  | ― |  |  | 33 |  |  | (1) |  |  | 30 |  |  | (1) |  |  | 17 |  |  | (1)
Total |  | $ | ― |  | $ | ― |  | $ | 105 |  | $ | (3) |  | $ | 1,759 |  | $ | (67) |  | $ | 123 |  | $ | (17)
The following table summarizes the gross unrealized losses due to temporary impairments by ratio of fair value to amortized cost as of December 31:
|  | Less than 12 months |  | 12 months or more |  | Total
|  |  |  |  |  | Gross |  |  |  |  |  |  | Gross |  |  |  |  |  |  | Gross
Ratio of Fair Value to |  | Number of | Estimated | Unrealized |  | Number of | Estimated | Unrealized |  | Number of | Estimated | Unrealized
Amortized Cost (Dollars in millions) |  | Securities | Fair Value | Losses |  | Securities | Fair Value | Losses |  | Securities | Fair Value | Losses
2014: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
90%–100% |  | ― |  | $ | ― |  | $ | ― |  | 15 |  | $ | 105 |  | $ | (3) |  | 15 |  | $ | 105 |  | $ | (3)
Total as of December 31, 2014 |  | ― |  | $ | ― |  | $ | ― |  | 15 |  | $ | 105 |  | $ | (3) |  | 15 |  | $ | 105 |  | $ | (3)
2013: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
90%–100% |  | 228 |  | $ | 1,665 |  | $ | (53) |  | 6 |  | $ | 24 |  | $ | (2) |  | 234 |  | $ | 1,689 |  | $ | (55)
Less than 90% |  | 13 |  |  | 94 |  |  | (14) |  | 5 |  |  | 99 |  |  | (15) |  | 18 |  |  | 193 |  |  | (29)
Total as of December 31, 2013 |  | 241 |  | $ | 1,759 |  | $ | (67) |  | 11 |  | $ | 123 |  | $ | (17) |  | 252 |  | $ | 1,882 |  | $ | (84)
The gross unrealized losses are attributed to overall wider credit spreads for state and municipal securities, wider credit spreads for specific issuers, adverse changes in market benchmark interest rates, or a combination thereof, all as compared to those prevailing when the investment securities were acquired. Overall, for the investment securities in gross unrealize d loss positions identified above, (i) the Company does not intend to sell the investment s ecurities, (ii) it is more likely than not that the Company will not be required to sell the investment securities before recovery of the unrealized losses, and (iii) the Company expects that the contractual principal and interest will be received on the investment securities. As a result, the Company recognized no o ther-than-temporary impairment during the periods presented. Supplemental Information Contractual maturities and weighted average yields f or investment securities, excluding equity securities and other securities, as of December 31, 2014 we re as follows:
|  |  |  |  |  | Due after 1 |  | Due after 5 |  |  |  |  |
|  |  | Due within | year but |  | years but |  | Due after |  |  |
(Millions) |  | 1 year |  | within 5 years |  | within 10 years |  | 10 years |  |  | Total
State and municipal obligations(a) |  | $ | 182 |  | $ | 74 |  | $ | 233 |  | $ | 3,004 |  | $ | 3,493
U.S. Government agency obligations |  |  | ― |  |  | ― |  |  | ― |  |  | 3 |  |  | 3
U.S. Government treasury obligations |  |  | 66 |  |  | 264 |  |  | 8 |  |  | 12 |  |  | 350
Corporate debt securities |  |  | 6 |  |  | 34 |  |  | ― |  |  | ― |  |  | 40
Mortgage-backed securities(a) |  |  | ― |  |  | 2 |  |  | ― |  |  | 134 |  |  | 136
Foreign government bonds and obligations |  |  | 307 |  |  | 7 |  |  | ― |  |  | 45 |  |  | 359
Total Estimated Fair Value |  | $ | 561 |  | $ | 381 |  | $ | 241 |  | $ | 3,198 |  |  | 4,381
Total Cost |  | $ | 560 |  | $ | 374 |  | $ | 225 |  | $ | 3,071 |  |  | 4,230
Weighted average yields(b)(c) |  |  | 2.50 | % |  | 2.07 | % |  | 6.71 | % |  | 6.81 | % |  |
The expected payments on state and municipal obligations and mortgage-backed securities may not coincide with their contractual maturities because the issuers have the right to call or prepay certain obligations. Average yields for investment securities have been calculated using the effective yield on the date of purchase. Yields on tax-exempt investment securities have been computed on a tax-equivalent basis using the U.S. federal statutory tax rate of 35 percent.

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