XML 33 R15.htm IDEA: XBRL DOCUMENT
v3.8.0.1

Investment Securities | 12 Months Ended
--- | ---
Dec. 31, 2017
Disclosure Text Block Abstract |
Investment Securities | NOTE 5 Investment Securities Investment securities principally include debt securities the Company classifies as available-for-sale and carries at fair value on the Consolidated Balance Sheets, with unrealized gains and losses recorded in AOCI, net of income taxes. Realized gains and losses are recognized upon disposition of the securities using the specific identification method. 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:
|  | 2017 |  | 2016 |  |  | 2015
Description of Securities (Millions) |  |  | Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Estimated Fair Value |  |  | Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Estimated Fair Value |  |  | Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Estimated Fair Value
State and municipal obligations |  | $ | 1,369 |  | $ | 11 |  | $ | (3) |  | $ | 1,377 |  | $ | 2,019 |  | $ | 28 |  | $ | (11) |  | $ | 2,036 |  | $ | 2,813 |  | $ | 85 |  | $ | (5) |  | $ | 2,893
U.S. Government agency obligations |  |  | 11 |  |  | ― |  |  | ― |  |  | 11 |  |  | 12 |  |  | ― |  |  | ― |  |  | 12 |  |  | 2 |  |  | ― |  |  | ― |  |  | 2
U.S. Government treasury obligations |  |  | 1,051 |  |  | 3 |  |  | (9) |  |  | 1,045 |  |  | 465 |  |  | 3 |  |  | (8) |  |  | 460 |  |  | 406 |  |  | 4 |  |  | (1) |  |  | 409
Corporate debt securities |  |  | 28 |  |  | ― |  |  | ― |  |  | 28 |  |  | 19 |  |  | ― |  |  | ― |  |  | 19 |  |  | 29 |  |  | 1 |  |  | ― |  |  | 30
Mortgage-backed securities (a) |  |  | 67 |  |  | 2 |  |  | ― |  |  | 69 |  |  | 92 |  |  | 3 |  |  | ― |  |  | 95 |  |  | 117 |  |  | 4 |  |  | ― |  |  | 121
Foreign government bonds and obligations |  |  | 581 |  |  | ― |  |  | ― |  |  | 581 |  |  | 486 |  |  | 1 |  |  | (1) |  |  | 486 |  |  | 250 |  |  | 6 |  |  | (1) |  |  | 255
Equity securities (b) |  |  | 51 |  |  | ― |  |  | (3) |  |  | 48 |  |  | 51 |  |  | ― |  |  | (2) |  |  | 49 |  |  | 51 |  |  | ― |  |  | (2) |  |  | 49
Total |  | $ | 3,158 |  | $ | 16 |  | $ | (15) |  | $ | 3,159 |  | $ | 3,144 |  | $ | 35 |  | $ | (22) |  | $ | 3,157 |  | $ | 3,668 |  | $ | 100 |  | $ | (9) |  | $ | 3,759
Represents mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae. Equity securities comprise investments in common stock and 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:
|  |  |  | 2017 |  | 2016
|  | Less than 12 months |  | 12 months or more |  | Less than 12 months |  | 12 months or more
Description of Securities (Millions) |  | Estimated Fair Value |  | Gross Unrealized Losses |  | Estimated Fair Value |  | Gross Unrealized Losses |  | Estimated Fair Value |  | Gross Unrealized Losses |  | Estimated Fair Value |  | Gross Unrealized Losses
State and municipal obligations |  | $ | 157 |  | $ | (3) |  | $ | ― |  | $ | ― |  | $ | 153 |  | $ | (11) |  | $ | ― |  | $ | ―
U.S. Government treasury obligations |  |  | 650 |  |  | (3) |  |  | 175 |  |  | (6) |  |  | 298 |  |  | (8) |  |  | ― |  |  | ―
Equity securities |  |  | ― |  |  | ― |  |  | 36 |  |  | (2) |  |  | ― |  |  | ― |  |  | 32 |  |  | (2)
Total |  | $ | 807 |  | $ | (6) |  | $ | 211 |  | $ | (8) |  | $ | 451 |  | $ | (19) |  | $ | 32 |  | $ | (2)
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
Ratio of Fair Value to Amortized Cost (Dollars in millions) |  | Number of Securities |  | Estimated Fair Value |  | Gross Unrealized Losses |  | Number of Securities |  | Estimated Fair Value |  | Gross Unrealized Losses |  | Number of Securities |  | Estimated Fair Value |  | Gross Unrealized Losses
2017: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
90%–100% |  | 34 |  | $ | 807 |  | $ | (6) |  | 13 |  | $ | 211 |  | $ | (8) |  | 47 |  | $ | 1,018 |  | $ | (14)
Total as of December 31, 2017 |  | 34 |  | $ | 807 |  | $ | (6) |  | 13 |  | $ | 211 |  | $ | (8) |  | 47 |  | $ | 1,018 |  | $ | (14)
2016: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
90%–100% |  | 33 |  | $ | 411 |  | $ | (13) |  | 6 |  | $ | 32 |  | $ | (2) |  | 39 |  | $ | 443 |  | $ | (15)
Less than 90% |  | 4 |  |  | 40 |  |  | (6) |  | ― |  |  | ― |  |  | ― |  | 4 |  |  | 40 |  |  | (6)
Total as of December 31, 2016 |  | 37 |  | $ | 451 |  | $ | (19) |  | 6 |  | $ | 32 |  | $ | (2) |  | 43 |  | $ | 483 |  | $ | (21)
The gross unrealized losses are attributed to wider credit spreads for speci fic issuers, adverse changes in benchmark interest rates, or a combination thereof, all compared to those prevailing when the investment securities were purchase d. 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 rec overy 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. We ighted average yields and contractual maturities for investment securities with stated maturities as of December 31, 2017 were as follows:
(Millions) |  | Due within 1 year |  | Due after 1 year but within 5 years |  | Due after 5 years but within 10 years |  | Due after 10 years |  |  | Total |
State and municipal obligations(a) |  | $ | 18 |  | $ | 87 |  | $ | 98 |  | $ | 1,174 |  | $ | 1,377 |
U.S. Government agency obligations |  |  | ― |  |  | ― |  |  | ― |  |  | 11 |  |  | 11 |
U.S. Government treasury obligations |  |  | 30 |  |  | 879 |  |  | 125 |  |  | 11 |  |  | 1,045 |
Corporate debt securities |  |  | 4 |  |  | 24 |  |  | ― |  |  | ― |  |  | 28 |
Mortgage-backed securities(a) |  |  | ― |  |  | ― |  |  | ― |  |  | 69 |  |  | 69 |
Foreign government bonds and obligations |  |  | 573 |  |  | 4 |  |  | ― |  |  | 4 |  |  | 581 |
Total Estimated Fair Value |  | $ | 625 |  | $ | 994 |  | $ | 223 |  | $ | 1,269 |  | $ | 3,111 |
Total Cost |  | $ | 625 |  | $ | 1,000 |  | $ | 222 |  | $ | 1,260 |  | $ | 3,107 |
Weighted average yields(b) |  |  | 3.65 | % |  | 1.95 | % |  | 4.39 | % |  | 4.47 | % |  | 3.49 | %
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. Effective January 1, 2018, the U.S. fed eral statutory tax rate was reduced to 21 percent. Refer to Note 21 for additional information.

X
- References No definition available. + Details
Name: | us-gaap_DisclosureTextBlockAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 -URI http://asc.fasb.org/topic&trid=2196928 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=4738149 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 940 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2176304 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2324412 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2209399 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 954 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2289146 + Details
Name: | us-gaap_InvestmentsInDebtAndMarketableEquitySecuritiesAndCertainTradingAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration