Quarterly report pursuant to Section 13 or 15(d)

Short-term and Long-term Investments, Restricted Deposits (Tables)

v3.20.2
Short-term and Long-term Investments, Restricted Deposits (Tables)
6 Months Ended
Jun. 30, 2020
Investments, Debt and Equity Securities [Abstract]  
Short-term and long-term investments and restricted deposits by investment type

Short-term and long-term investments and restricted deposits by investment type consist of the following ($ in millions):
 
June 30, 2020
 
December 31, 2019
 
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
$
975

 
$
6

 
$

 
$
981

 
$
211

 
$
1

 
$

 
$
212

Corporate securities
4,841

 
222

 
(32
)
 
5,031

 
3,629

 
108

 
(4
)
 
3,733

Restricted certificates of deposit
104

 

 

 
104

 
482

 

 

 
482

Restricted cash equivalents
157

 

 

 
157

 
8

 

 

 
8

Short-term time deposits
56

 

 

 
56

 

 

 

 

Municipal securities
2,429

 
111

 
(5
)
 
2,535

 
2,320

 
69

 
(1
)
 
2,388

Asset-backed securities
974

 
10

 
(13
)
 
971

 
741

 
5

 
(2
)
 
744

Residential mortgage-backed securities
888

 
32

 

 
920

 
464

 
8

 
(1
)
 
471

Commercial mortgage-backed securities
584

 
23

 
(8
)
 
599

 
380

 
9

 
(1
)
 
388

Equity securities (1)
561

 

 

 
561

 

 

 

 

Private equity investments
778

 

 

 
778

 
664

 

 

 
664

Life insurance contracts
146

 

 

 
146

 
148

 

 

 
148

Total
$
12,493

 
$
404

 
$
(58
)
 
$
12,839

 
$
9,047

 
$
200

 
$
(9
)
 
$
9,238

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1)    Investments in equity securities primarily consists of exchange traded funds in fixed income securities.

Fair value of available-for-sale investments with gross unrealized losses by investment type and length of time
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):
 
June 30, 2020
 
December 31, 2019
 
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
Corporate securities
$
(29
)
 
$
627

 
$
(3
)
 
$
21

 
$
(2
)
 
$
192

 
$
(2
)
 
$
48

Municipal securities
(5
)
 
162

 

 
1

 
(1
)
 
185

 

 
11

Asset-backed securities
(10
)
 
334

 
(3
)
 
105

 
(1
)
 
153

 
(1
)
 
151

Residential mortgage-backed securities

 
27

 

 
4

 

 
44

 
(1
)
 
81

Commercial mortgage-backed securities
(7
)
 
147

 
(1
)
 
9

 
(1
)
 
118

 

 
21

Total
$
(51
)
 
$
1,297

 
$
(7
)
 
$
140

 
$
(5
)
 
$
692

 
$
(4
)
 
$
312


Contractual maturities of short-term and long-term investments and restricted deposits
The contractual maturities of short-term and long-term debt securities and restricted deposits are as follows ($ in millions):
 
June 30, 2020
 
December 31, 2019
 
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
$
1,406

 
$
1,414

 
$
881

 
$
882

 
$
750

 
$
752

 
$
550

 
$
550

One year through five years
3,847

 
3,986

 
151

 
154

 
3,034

 
3,106

 
106

 
108

Five years through ten years
2,200

 
2,346

 
13

 
14

 
2,162

 
2,257

 

 

Greater than ten years
64

 
68

 

 

 
48

 
50

 

 

Asset-backed securities
2,446

 
2,490

 

 

 
1,585

 
1,603

 

 

Total
$
9,963

 
$
10,304

 
$
1,045

 
$
1,050

 
$
7,579

 
$
7,768

 
$
656

 
$
658