Investments

3 Months Ended

Mar. 31, 2022

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:


	March 31, 2022
	Amortized Cost		Gross Unrealized				Estimated Fair Value
			Gains		Losses

	(In millions)
Corporate debt securities	$	1,874	$	1	$	67	$	1,808
Mortgage-backed securities	622		—		24		598
Asset-backed securities	261		—		9		252
U.S. Treasury notes	174		—		—		174
Municipal securities	123		—		6		117



Other	40		—		1		39
Total	$	3,094	$	1	$	107	$	2,988


	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
Asset-backed securities	248		—		1		247
U.S. Treasury notes	353		—		—		353
Municipal securities	123		1		1		123


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

The contractual maturities of our current investments as of March 31, 2022 are summarized below:


	Amortized Cost		Estimated Fair Value

	(In millions)
Due in one year or less	$	466	$	466
Due after one year through five years	1,733		1,668
Due after five years through ten years	318		306
Due after ten years	577		548
Total	$	3,094	$	2,988

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 were insignificant for the three months ended March 31, 2022, and 2021.

We have determined that unrealized losses at March 31, 2022, and December 31, 2021, 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 March 31, 2022, and December 31, 2021.


	March 31, 2022					December 31, 2021
	Estimated Fair Value		Unrealized Losses		Total Number of Positions	Estimated Fair Value		Unrealized Losses		Total Number of Positions

	(Dollars in millions)
Corporate debt securities	$	1,516	$	67	624	$	1,063	$	12	395
Mortgage-backed securities	582		24		238	408		4		146
Asset-backed securities	208		9		99	166		1		75

Municipal securities	97		6		120	69		1		61
Other	25		1		10	—		—		—



Total	$	2,428	$	107	1,091	$	1,706	$	18	677

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. Such investments amounted to $221 million at March 31, 2022, of which $190 million will mature in one year or less, and $31 million will mature in one through five years.