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Investment Securities

3 Months Ended

Mar. 31, 2016

Investments, Debt and Equity Securities [Abstract]

Investment Securities

5. Investment Securities

Investment securities principally include debt securities that the Company classifies as available-for-sale and carries at fair value on the Consolidated Balance Sheets, with unrealized gains (losses) recorded in Accumulated Other Comprehensive Loss, net of income taxes. Realized gains and losses are recognized on a trade-date basis in results of operations upon disposition of the securities using the specific identification method.

The following is a summary of investment securities as of March 31, 2016 and December 31, 2015:

			2016												2015
							Gross			Gross			Estimated						Gross			Gross			Estimated
							Unrealized			Unrealized			Fair						Unrealized			Unrealized			Fair
Description of Securities (Millions)				Cost			Gains			Losses			Value			Cost			Gains			Losses			Value
State and municipal obligations			$	2,695		$	76		$	(4)		$	2,767		$	2,813		$	85		$	(5)		$	2,893
U.S. Government agency
	obligations			2			―			―			2			2			―			―			2
U.S. Government treasury
	obligations			375			10			―			385			406			4			(1)			409
Corporate debt securities				28			1			―			29			29			1			―			30
Mortgage-backed securities (a)				117			5			―			122			117			4			―			121
Equity securities				1			―			―			1			1			―			―			1
Foreign government bonds and
	obligations			477			7			―			484			250			6			(1)			255
Other (b)				50			1			(2)			49			50			―			(2)			48
Total			$	3,745		$	100		$	(6)		$	3,839		$	3,668		$	100		$	(9)		$	3,759

• Represents mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae.
• 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 March 31, 2016 and December 31, 2015:

			2016														2015
			Less than 12 months							12 months or more							Less than 12 months						12 months or more
							Gross							Gross							Gross						Gross
Description of Securities (Millions)				Estimated Fair Value			Unrealized Losses				Estimated Fair Value			Unrealized Losses				Estimated Fair Value			Unrealized Losses			Estimated Fair Value			Unrealized Losses
State and municipal obligations			$	97		$	(4)			$	―			―			$	100		$	(3)		$	13		$	(2)
U.S. Government treasury
	obligations			―			―				―			―				253			(1)			―			―
Foreign government bonds and
	obligations			―			―				―			―				99			(1)			―			―
Other				―			―				33			(2)				―			―			33			(2)
Total			$	97		$	(4)			$	33		$	(2)			$	452		$	(5)		$	46		$	(4)

The following table summarizes the gross unrealized losses due to temporary impairments by ratio of fair value to amortized cost as of March 31, 2016 and December 31, 2015:

			Less than 12 months								12 months or more								Total
Ratio of Fair Value to									Gross								Gross								Gross
Amortized Cost			Number of			Estimated			Unrealized		Number of			Estimated			Unrealized		Number of			Estimated			Unrealized
(Dollars in millions)			Securities			Fair Value			Losses		Securities			Fair Value			Losses		Securities			Fair Value			Losses
2016:
90%–100%			14		$	97		$	(4)		6		$	33		$	(2)		20		$	130		$	(6)
Less than 90%			―			―			―		―			―			―		―			―			―
Total as of March 31, 2016			14		$	97		$	(4)		6		$	33		$	(2)		20		$	130		$	(6)
2015:
90%–100%			52		$	450		$	(5)		15		$	37		$	(2)		67		$	487		$	(7)
Less than 90%			―			―			―		2			9			(2)		2			9			(2)
Total as of December 31, 2015			52		$	450		$	(5)		17		$	46		$	(4)		69		$	496		$	(9)

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 compared to those prevailing when the investment securities were acquired.

Overall, for the investment securities in gross unrealized loss positions (i) the Company does not intend to sell the investment securities, (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 other-than-temporary impairment during the periods presented.

Contractual maturities of investment securities with stated maturities as of March 31, 2016 were as follows:

							Estimated
(Millions)				Cost			Fair Value
Due within 1 year			$	556		$	557
Due after 1 year but within 5 years				209			214
Due after 5 years but within 10 years				410			430
Due after 10 years				2,519			2,588
Total(a)			$	3,694		$	3,789

Balances primarily represent investments in state and municipal obligations, and foreign government bonds and obligations.

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.

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- References

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- Definition

The entire disclosure for investments in certain debt and equity securities.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-Glossary Debt Security
-URI http://asc.fasb.org/extlink&oid=6509901

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=27724398&loc=d3e27290-111563

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 30
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6379141&loc=d3e15032-111544

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=27724398&loc=d3e27232-111563

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-Glossary Equity Security
-URI http://asc.fasb.org/extlink&oid=6511694

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 320
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6957658&loc=d3e62557-112803

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=27724398&loc=d3e27161-111563

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=27724398&loc=d3e27357-111563

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=27724398&loc=d3e27405-111563

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