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Investments in Debt and Equity Securities | 9 Months Ended
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Sep. 30, 2025
Investments, Debt and Equity Securities [Abstract] |
Investments in Debt and Equity Securities | Investments in debt and equity securities We have investments in certain debt and equity securities, which we record at fair value and primarily include in Other assets in the Consolidated Statement of Financial Position. Short-term and long-term investments are held with high quality institutions and, by policy, the amount of credit exposure to any one institution is limited. We classify debt securities primarily as available-for-sale. We include the unrealized gains and losses arising from the revaluation of available-for-sale debt securities, net of applicable deferred income taxes, in equity (AOCI in the Consolidated Statement of Financial Position). We include the unrealized gains and losses arising from the revaluation of the equity securities in Other income (expense) in the Consolidated Statement of Results of Operations. We generally determine realized gains and losses on sales of investments using the specific identification method for available-for-sale debt and equity securities and include them in Other income (expense) in the Consolidated Statement of Results of Operations. The cost basis and fair value of available-for-sale debt securities with unrealized gains and losses included in equity (AOCI in the Consolidated Statement of Financial Position) were as follows:
Available-for-sale debt securities | September 30, 2025 |  | December 31, 2024
(Millions of dollars) | Cost Basis |  | Unrealized Pretax Net Gains (Losses) |  | Fair Value |  | Cost Basis |  | Unrealized Pretax Net Gains (Losses) |  | Fair Value
Government debt securities |  |  |  |  |  |  |  |  |  |  |
U.S. treasury bonds | $ | 10 |  |  | $ | — |  |  | $ | 10 |  |  | $ | 10 |  |  | $ | — |  |  | $ | 10 |
Other U.S. and non-U.S. government bonds | 72 |  |  | 2 |  |  | 74 |  |  | 71 |  |  | (3) |  |  | 68 |
Corporate debt securities |  |  |  |  |  |  |  |  |  |  |
Corporate bonds and other debt securities | 2,475 |  |  | 17 |  |  | 2,492 |  |  | 3,199 |  |  | (29) |  |  | 3,170 |
Asset-backed securities | 265 |  |  | — |  |  | 265 |  |  | 220 |  |  | (1) |  |  | 219 |
Mortgage-backed debt securities |  |  |  |  |  |  |  |  |  |  |
U.S. governmental agency | 515 |  |  | (15) |  |  | 500 |  |  | 476 |  |  | (33) |  |  | 443 |
Residential | 5 |  |  | — |  |  | 5 |  |  | 2 |  |  | — |  |  | 2 |
Commercial | 127 |  |  | (3) |  |  | 124 |  |  | 136 |  |  | (6) |  |  | 130 |
Total available-for-sale debt securities | $ | 3,469 |  |  | $ | 1 |  |  | $ | 3,470 |  |  | $ | 4,114 |  |  | $ | (72) |  |  | $ | 4,042 |
Available-for-sale debt securities in an unrealized loss position:
| September 30, 2025
| Less than 12 months 1 |  | 12 months or more 1 |  | Total
(Millions of dollars) | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
Government debt securities |  |  |  |  |  |  |  |  |  |  |
Other U.S. and non-U.S. government bonds | $ | — |  |  | $ | — |  |  | $ | 26 |  |  | $ | 1 |  |  | $ | 26 |  |  | $ | 1 |
Corporate debt securities |  |  |  |  |  |  |  |  |  |  |
Corporate bonds | 107 |  |  | — |  |  | 474 |  |  | 11 |  |  | 581 |  |  | 11 |
Asset-backed securities | 6 |  |  | — |  |  | 38 |  |  | 1 |  |  | 44 |  |  | 1 |
Mortgage-backed debt securities |  |  |  |  |  |  |  |  |  |  |
U.S. governmental agency | — |  |  | — |  |  | 290 |  |  | 20 |  |  | 290 |  |  | 20 |
Commercial | 3 |  |  | — |  |  | 89 |  |  | 3 |  |  | 92 |  |  | 3 |
Total | $ | 116 |  |  | $ | — |  |  | $ | 917 |  |  | $ | 36 |  |  | $ | 1,033 |  |  | $ | 36 |
| December 31, 2024
| Less than 12 months 1 |  | 12 months or more 1 |  | Total
(Millions of dollars) | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
Government debt securities |  |  |  |  |  |  |  |  |  |  |
Other U.S. and non-U.S. government bonds | $ | — |  |  | $ | — |  |  | $ | 55 |  |  | $ | 4 |  |  | $ | 55 |  |  | $ | 4 |
Corporate debt securities |  |  |  |  |  |  |  |  |  |  |
Corporate bonds | 729 |  |  | 3 |  |  | 812 |  |  | 33 |  |  | 1,541 |  |  | 36 |
Asset-backed securities | 7 |  |  | — |  |  | 37 |  |  | 2 |  |  | 44 |  |  | 2 |
Mortgage-backed debt securities |  |  |  |  |  |  |  |  |  |  |
U.S. governmental agency | 126 |  |  | 3 |  |  | 273 |  |  | 30 |  |  | 399 |  |  | 33 |
Commercial | 13 |  |  | — |  |  | 113 |  |  | 6 |  |  | 126 |  |  | 6 |
Total | $ | 875 |  |  | $ | 6 |  |  | $ | 1,290 |  |  | $ | 75 |  |  | $ | 2,165 |  |  | $ | 81 |
1 Indicates the length of time that individual securities have been in a continuous unrealized loss position.
The unrealized losses on our investments in government debt securities, corporate debt securities, and mortgage-backed debt securities relate to changes in underlying interest rates and credit spreads since time of purchase. We do not intend to sell the investments, and it is not likely that we will be required to sell the investments before recovery of their respective amortized cost basis. In addition, we did not expect credit-related losses on these investments as of September 30, 2025. The cost basis and fair value of available-for-sale debt securities at September 30, 2025, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to prepay and creditors may have the right to call obligations.
| September 30, 2025
(Millions of dollars) | Cost Basis |  | Fair Value
Due in one year or less | $ | 826 |  |  | $ | 829 |
Due after one year through five years | 1,530 |  |  | 1,542 |
Due after five years through ten years | 287 |  |  | 292 |
Due after ten years | 179 |  |  | 178 |
U.S. governmental agency mortgage-backed securities | 515 |  |  | 500 |
Residential mortgage-backed securities | 5 |  |  | 5 |
Commercial mortgage-backed securities | 127 |  |  | 124 |
Total debt securities – available-for-sale | $ | 3,469 |  |  | $ | 3,470 |
For the three months ended September 30, 2025 and 2024, proceeds from available-for-sale debt securities were $323 million and $257 million, respectively. For the nine months ended September 30, 2025 and 2024, proceeds from available-for-sale debt securities were $1,636 million and $917 million, respectively. For the three months ended September 30, 2025 and 2024, the net unrealized gains (losses) for equity securities held at September 30, 2025 and 2024 were $9 million and $18 million, respectively. For the nine months ended September 30, 2025 and 2024, the net unrealized gains (losses) for equity securities held at September 30, 2025 and 2024 were $36 million and $32 million, respectively.

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