Investments

12 Months Ended

Dec. 31, 2021

Investments, Debt and Equity Securities [Abstract]

Available-for-Sale

We consider all of our investments classified as current assets to be available-for-sale. The following tables summarize our current investments as of the dates indicated:


	December 31, 2021
	Amortized Cost		Gross Unrealized				Estimated Fair Value
			Gains		Losses

	(In millions)
Corporate debt securities	$	1,836	$	9	$	12	$	1,833
Mortgage-backed securities	616		2		4		614
U.S. Treasury notes	353		—		—		353
Asset-backed securities	248		—		1		247
Municipal securities	123		1		1		123


Other	32		—		—		32
Total	$	3,208	$	12	$	18	$	3,202


	December 31, 2020
	Amortized Cost		Gross Unrealized				Estimated Fair Value
			Gains		Losses

	(In millions)
Corporate debt securities	$	1,220	$	36	$	—	$	1,256
Mortgage-backed securities	383		10		1		392
U.S. Treasury notes	27		—		—		27
Asset-backed securities	130		2		—		132
Municipal securities	66		2		—		68



Total	$	1,826	$	50	$	1	$	1,875

The contractual maturities of our current investments as of December 31, 2021 are summarized below:


	Amortized Cost		Estimated Fair Value

	(In millions)
Due in one year or less	$	665	$	667
Due after one year through five years	1,667		1,662
Due after five years through ten years	335		335
Due after ten years	541		538
Total	$	3,208	$	3,202

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 amounted to $10 million, $6 million and $13 million in the years ended December 31, 2021, 2020 and 2019, respectively. Gross realized investment losses were insignificant in the years ended December 31, 2021, 2020 and 2019.

We have determined that unrealized losses at December 31, 2021 and 2020 primarily resulted from fluctuating interest rates, rather than a deterioration of the creditworthiness of the issuers. Therefore, we determined that an allowance for credit losses was not necessary. 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 summarizes those available-for-sale investments that have been in a continuous loss position for less than 12 months. No investments have been in a continuous loss position for 12 months or more as of December 31, 2021, and 2020.


	In a Continuous Loss Position for Less than 12 Months as of December 31, 2021					In a Continuous Loss Position for Less than 12 Months as of December 31, 2020
	Estimated Fair Value		Unrealized Losses		Total Number of Positions	Estimated Fair Value		Unrealized Losses		Total Number of Positions

	(Dollars in millions)
Corporate debt securities	$	1,063	$	12	395	$	—	$	—	—
Mortgage-backed securities	408		4		146	77		1		21
Asset-backed securities	166		1		75	—		—		—

Municipal securities	69		1		61	—		—		—



Total	$	1,706	$	18	677	$	77	$	1	21

Restricted Investments Held-to-Maturity

Pursuant to the regulations governing our state health plan subsidiaries, we maintain statutory deposits and deposits required by government authorities primarily in cash, cash equivalents, 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 “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, of which $142 million will mature in one year or less, and $70 million will mature in one through five years.

The following table presents the balances of restricted investments:


	December 31,
	2021		2020

	(In millions)
Cash and cash equivalents	$	68	$	63
U.S. Treasury notes	144		24
Magellan Complete Care acquisition opening balance	—		49
Total restricted investments	$	212	$	136