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Investments | 6 Months Ended
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Jun. 30, 2018
Investments, Debt and Equity Securities [Abstract] |
Investments | Investments Available-for-Sale Investments We consider all of our investments classified as current assets (including restricted investments) to be available-for-sale. Our 4.875% Notes, as further discussed in Note 7, “Debt,” contain a limitation on the use of proceeds which required us to deposit the net proceeds from their issuance into a segregated deposit account, a current asset reported as “Restricted investments” in the accompanying consolidated balance sheets. Such proceeds, while restricted as to their use and held in a segregated deposit account, are available-for-sale based upon our contractual liquidity requirements. The following tables summarize our investments as of the dates indicated:
| June 30, 2018
| Amortized |  | Gross Unrealized |  | Estimated Fair
| Cost |  | Gains |  | Losses |  | Value
| (In millions)
Corporate debt securities | $ | 1,390 |  |  | $ | — |  |  | $ | 8 |  |  | $ | 1,382 |
U.S. treasury notes | 331 |  |  | — |  |  | 1 |  |  | 330 |
GSEs | 209 |  |  | — |  |  | 2 |  |  | 207 |
Municipal securities | 138 |  |  | — |  |  | 2 |  |  | 136 |
Asset backed securities | 100 |  |  | — |  |  | 1 |  |  | 99 |
Certificates of deposit | 19 |  |  | — |  |  | — |  |  | 19 |
Other | 3 |  |  | — |  |  | — |  |  | 3 |
Subtotal - current investments | 2,190 |  |  | — |  |  | 14 |  |  | 2,176 |
Corporate debt securities | 55 |  |  | — |  |  | — |  |  | 55 |
U.S. treasury notes | 25 |  |  | — |  |  | — |  |  | 25 |
Subtotal - current restricted investments | 80 |  |  | — |  |  | — |  |  | 80 |
| $ | 2,270 |  |  | $ | — |  |  | $ | 14 |  |  | $ | 2,256 |
| December 31, 2017
| Amortized |  | Gross Unrealized |  | Estimated Fair
| Cost |  | Gains |  | Losses |  | Value
| (In millions)
Corporate debt securities | $ | 1,591 |  |  | $ | 1 |  |  | $ | 4 |  |  | $ | 1,588 |
U.S. treasury notes | 389 |  |  | — |  |  | 1 |  |  | 388 |
GSEs | 255 |  |  | — |  |  | 2 |  |  | 253 |
Municipal securities | 142 |  |  | — |  |  | 1 |  |  | 141 |
Asset-backed securities | 117 |  |  | — |  |  | — |  |  | 117 |
Certificates of deposit | 37 |  |  | — |  |  | — |  |  | 37 |
Subtotal - current investments | 2,531 |  |  | 1 |  |  | 8 |  |  | 2,524 |
Corporate debt securities | 101 |  |  | — |  |  | — |  |  | 101 |
U.S. treasury notes | 68 |  |  | — |  |  | — |  |  | 68 |
Subtotal - current restricted investments | 169 |  |  | — |  |  | — |  |  | 169 |
| $ | 2,700 |  |  | $ | 1 |  |  | $ | 8 |  |  | $ | 2,693 |
The contractual maturities of our available-for-sale investments as of June 30, 2018 are summarized below:
| Amortized Cost |  | Estimated Fair Value
| (In millions)
Due in one year or less | $ | 1,356 |  |  | $ | 1,354 |
Due after one year through five years | 914 |  |  | 902 |
| $ | 2,270 |  |  | $ | 2,256 |
Gross realized gains and losses from sales of available-for-sale securities are calculated under the specific identification method and are included in investment income. Gross realized investment gains and losses for the three and six months ended June 30, 2018 and 2017 were insignificant. We have determined that unrealized losses at June 30, 2018 and December 31, 2017, are temporary in nature, because the change in market value for these securities has resulted from fluctuating interest rates, rather than a deterioration of the creditworthiness of the issuers. So long as we maintain the intent and ability to hold these securities to maturity, we are unlikely to experience losses. In the event that we dispose of these securities before maturity, we expect that realized losses, if any, will be insignificant. The following table segregates those available-for-sale investments that have been in a continuous loss position for less than 12 months, and those that have been in a continuous loss position for 12 months or more as of June 30, 2018:
| In a Continuous Loss Position for Less than 12 Months |  | In a Continuous Loss Position for 12 Months or More
| Estimated Fair Value |  | Unrealized Losses |  | Total Number of Positions |  | Estimated Fair Value |  | Unrealized Losses |  | Total Number of Positions
| (Dollars in millions)
Corporate debt securities | $ | 959 |  |  | $ | 7 |  |  | 535 |  |  | $ | 116 |  |  | $ | 1 |  |  | 72 |
U.S. Treasury notes | 224 |  |  | 1 |  |  | 52 |  |  | — |  |  | — |  |  | — |
GSEs | — |  |  | — |  |  | — |  |  | 113 |  |  | 2 |  |  | 56 |
Municipal securities | 81 |  |  | 1 |  |  | 79 |  |  | 40 |  |  | 1 |  |  | 52 |
Asset backed securities | 90 |  |  | 1 |  |  | 59 |  |  | — |  |  | — |  |  | — |
| $ | 1,354 |  |  | $ | 10 |  |  | 725 |  |  | $ | 269 |  |  | $ | 4 |  |  | 180 |
The following table segregates those available-for-sale investments that have been in a continuous loss position for less than 12 months, and those that have been in a continuous loss position for 12 months or more as of December 31, 2017:
| In a Continuous Loss Position for Less than 12 Months |  | In a Continuous Loss Position for 12 Months or More
| Estimated Fair Value |  | Unrealized Losses |  | Total Number of Positions |  | Estimated Fair Value |  | Unrealized Losses |  | Total Number of Positions
| (Dollars in millions)
Corporate debt securities | $ | 1,297 |  |  | $ | 3 |  |  | 561 |  |  | $ | 94 |  |  | $ | 1 |  |  | 69 |
U.S. Treasury Notes | 470 |  |  | 1 |  |  | 89 |  |  | — |  |  | — |  |  | — |
GSEs | 173 |  |  | 1 |  |  | 69 |  |  | 95 |  |  | 1 |  |  | 47 |
Municipal securities | — |  |  | — |  |  | — |  |  | 38 |  |  | 1 |  |  | 48 |
| $ | 1,940 |  |  | $ | 5 |  |  | 719 |  |  | $ | 227 |  |  | $ | 3 |  |  | 164 |
Held-to-Maturity Investments Pursuant to the regulations governing our Health Plans segment subsidiaries, we maintain statutory deposits and deposits required by government authorities primarily in certificates of deposit and U.S. treasury securities. We also maintain restricted investments as protection against the insolvency of certain capitated providers. The use of these funds is limited as required by regulations in the various states in which we operate, or as needed in the event of insolvency of capitated providers. Therefore, such investments are reported as non-current “Restricted investments” in the accompanying consolidated balance sheets. We have the ability to hold these restricted investments until maturity, and as a result, we would not expect the value of these investments to decline significantly due to a sudden change in market interest rates. Our held-to-maturity restricted investments are carried at amortized cost, which approximates fair value. Such investments amounted to $117 million at June 30, 2018, and mature in one year or less.

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