Short-term and Long-term Investments, Restricted Deposits

3 Months Ended

Mar. 31, 2026

Investments, Debt and Equity Securities [Abstract]

Short-term and Long-term Investments, Restricted Deposits

Short-term and long-term investments and restricted deposits by investment type consist of the following ($ in millions):


	March 31, 2026								December 31, 2025
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Debt securities:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	532	$	1	$	(1)	$	532	$	533	$	3	$	(1)	$	535
Corporate securities	10,676		89		(173)		10,592		10,642		166		(146)		10,662
Restricted certificates of deposit	1		—		—		1		1		—		—		1
Restricted cash equivalents	89		—		—		89		69		—		—		69
Short-term time deposits	68		—		—		68		205		—		—		205
Municipal securities	3,736		25		(72)		3,689		3,790		37		(69)		3,758
Asset-backed securities	1,612		13		(13)		1,612		1,656		20		(10)		1,666
Residential mortgage-backed securities	1,764		14		(75)		1,703		1,763		21		(70)		1,714
Commercial mortgage-backed securities	1,140		6		(31)		1,115		1,156		9		(29)		1,136
Equity securities	1		—		—		1		1		—		—		1
Private equity investments	896		—		—		896		915		—		—		915
Life insurance contracts	210		—		—		210		217		—		—		217
Total	$	20,725	$	148	$	(365)	$	20,508	$	20,948	$	256	$	(325)	$	20,879

The Company's investments are debt securities classified as available-for-sale with the exception of equity securities, certain private equity investments and life insurance contracts. Private equity investments include direct investments in private equity securities as well as private equity funds. The Company's investment policies are designed to provide liquidity, preserve capital and maximize total return on invested assets with a focus on high credit quality securities. The Company limits the size of investment in any single issuer other than U.S. treasury securities and obligations of U.S. government corporations and agencies. As of March 31, 2026, 99% of the Company's investments in rated securities carry an investment grade rating by nationally recognized statistical rating organizations. At March 31, 2026, the Company held certificates of deposit, equity securities, private equity investments and life insurance contracts, which did not carry a credit rating. Accrued interest income on available-for-sale debt securities was $174 million and $180 million at March 31, 2026 and December 31, 2025, respectively, and is included in other current assets in the Consolidated Balance Sheets.

The Company's residential mortgage-backed securities are primarily issued by the Federal National Mortgage Association, Government National Mortgage Association or Federal Home Loan Mortgage Corporation, which carry implicit or explicit guarantees of the U.S. government. The Company's commercial mortgage-backed securities are primarily senior tranches with a weighted average rating of AA+ and a weighted average duration of 3 years at March 31, 2026.

The fair value of available-for-sale debt securities with gross unrealized losses by investment type and length of time that individual securities have been in a continuous unrealized loss position were as follows ($ in millions):


	March 31, 2026								December 31, 2025
	Less Than 12 Months				12 Months or More				Less Than 12 Months				12 Months or More
	Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	(1)	$	203	$	—	$	28	$	—	$	88	$	(1)	$	43
Corporate securities	(20)		2,130		(153)		2,933		(2)		464		(144)		3,226
Municipal securities	(4)		582		(68)		1,431		(1)		241		(68)		1,550
Asset-backed securities	(3)		307		(10)		159		(2)		114		(8)		180
Residential mortgage-backed securities	(3)		267		(72)		618		—		120		(70)		687
Commercial mortgage-backed securities	(2)		235		(29)		457		—		156		(29)		480

Total	$	(33)	$	3,724	$	(332)	$	5,626	$	(5)	$	1,183	$	(320)	$	6,166

As of March 31, 2026, the gross unrealized losses were generated from 3,831 positions out of a total of 6,224 positions. The change in fair value of available-for-sale debt securities is primarily a result of movement in interest rates subsequent to the purchase of the security.

For each security in an unrealized loss position, the Company assesses whether it intends to sell the security or if it is more likely than not the Company will be required to sell the security before recovery of the amortized cost basis for reasons such as liquidity, contractual or regulatory purposes. If the security meets this criterion, the decline in fair value is recorded in earnings. The Company does not intend to sell these securities prior to maturity and it is not likely that the Company will be required to sell these securities prior to maturity; therefore, the Company did not record an impairment for these securities.

In addition, the Company monitors available-for-sale debt securities for credit losses. Certain investments have experienced a decline in fair value due to changes in credit quality, market interest rates and/or general economic conditions. The Company recognizes an allowance when evidence demonstrates that the decline in fair value is credit related. Evidence of a credit-related loss may include rating agency actions, adverse conditions specifically related to the security or failure of the issuer of the security to make scheduled payments.

The contractual maturities of short-term and long-term debt securities and restricted deposits are as follows ($ in millions):


	March 31, 2026								December 31, 2025
	Investments				Restricted Deposits				Investments				Restricted Deposits
	Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value
One year or less	$	2,231	$	2,217	$	466	$	465	$	2,201	$	2,190	$	464	$	464
One year through five years	7,211		7,109		611		600		7,266		7,219		574		566
Five years through ten years	4,058		4,057		348		349		4,198		4,252		334		339
Greater than ten years	159		156		18		18		160		157		43		43
Asset-backed securities	4,516		4,430		—		—		4,575		4,516		—		—
Total	$	18,175	$	17,969	$	1,443	$	1,432	$	18,400	$	18,334	$	1,415	$	1,412

Actual maturities may differ from contractual maturities due to call or prepayment options. Equity securities, private equity investments and life insurance contracts are excluded from the table above because they do not have a contractual maturity. The Company has an option to redeem substantially all of the securities included in the greater than ten years category listed above at amortized cost.