Investments of Insurance Subsidiaries

3 Months Ended

Mar. 31, 2018

Investments, Debt and Equity Securities [Abstract]

NOTE 5 — INVESTMENTS OF INSURANCE SUBSIDIARIES

A summary of our insurance subsidiaries’ investments at March 31, 2018 and December 31, 2017 follows (dollars in millions):


	March 31, 2018
	Amortized Cost		Unrealized Amounts				Fair Value
	Amortized Cost		Gains		Losses		Fair Value
Debt securities	$	251	$	5	$	—	$	256
Money market funds and other		205		—		—		205

	$	456	$	5	$	—		461

Amounts classified as current assets								(44	)

Investment carrying value							$	417


	December 31, 2017
	Amortized Cost		Unrealized Amounts				Fair Value
	Amortized Cost		Gains		Losses		Fair Value
Debt securities	$	361	$	10	$	—	$	371
Money market funds and other		101		—		—		101

	$	462	$	10	$	—		472

Amounts classified as current assets								(54	)

Investment carrying value							$	418

At March 31, 2018 and December 31, 2017, the investments of our insurance subsidiaries were classified as “available-for-sale.” Changes in temporary unrealized gains and losses are recorded as adjustments to other comprehensive income (loss).

Scheduled maturities of investments in debt securities at March 31, 2018 were as follows (dollars in millions):


	Amortized Cost		Fair Value
Due in one year or less	$	29	$	29
Due after one year through five years		34		35
Due after five years through ten years		166		170
Due after ten years		22		22

	$	251	$	256

The average expected maturity of the investments in debt securities at March 31, 2018 was 4.8 years, compared to the average scheduled maturity of 6.4 years. Expected and scheduled maturities may differ because the issuers of certain securities have the right to call, prepay or otherwise redeem such obligations prior to their scheduled maturity date.