Quarterly report pursuant to Section 13 or 15(d)

Investments

v3.20.1
Investments
 3 Months Ended
Mar. 27, 2020
Investments [Abstracts]  
Investments INVESTMENTS
Equity Securities
The carrying values of our equity securities were included in the following line items in our condensed consolidated balance sheets (in millions):
 
Fair Value with Changes Recognized in Income

Measurement Alternative — No Readily Determinable Fair Value

March 27, 2020
 
 
Marketable securities
$
275

$
—

Other investments
599

53

Other assets
889

—

Total equity securities
$
1,763

$
53

December 31, 2019


Marketable securities
$
329

$
—

Other investments
772

82

Other assets
1,118

—

Total equity securities
$
2,219

$
82


The calculation of net unrealized gains and losses recognized during the period related to equity securities still held at the end of the period is as follows (in millions):

Three Months Ended
 
March 27, 2020

March 29, 2019

Net gains (losses) recognized during the period related to equity securities
$
(396
)
$
147

Less: Net gains (losses) recognized during the period related to equity securities sold
during the period
(16
)
7

Net unrealized gains (losses) recognized during the period related to equity securities
   still held at the end of the period
$
(380
)
$
140


Debt Securities
Our debt securities consisted of the following (in millions):
 
 
Gross Unrealized
Estimated Fair Value

 
Cost

Gains

Losses

March 27, 2020
 
 
 
 
Trading securities
$
33

$
—

$
(2
)
$
31

Available-for-sale securities
2,365

98

(4
)
2,459

Total debt securities
$
2,398

$
98

$
(6
)
$
2,490

December 31, 2019
 
 
 
 
Trading securities
$
46

$
1

$
—

$
47

Available-for-sale securities
3,172

113

(4
)
3,281

Total debt securities
$
3,218

$
114

$
(4
)
$
3,328


The carrying values of our debt securities were included in the following line items in our condensed consolidated balance sheets (in millions):
 
March 27, 2020
 
December 31, 2019
 
Trading Securities

Available-for-Sale Securities

 
Trading Securities

Available-for-Sale Securities

Cash and cash equivalents
$
—

$
97

 
$
—

$
123

Marketable securities
31

2,086

 
47

2,852

Other assets
—

276

 
—

306

Total debt securities
$
31

$
2,459

 
$
47

$
3,281


The contractual maturities of these available-for-sale debt securities as of March 27, 2020 were as follows (in millions):
 
Cost

Estimated
Fair Value

Within 1 year
$
1,374

$
1,393

After 1 year through 5 years
761

805

After 5 years through 10 years
58

68

After 10 years
172

193

Total
$
2,365

$
2,459


The Company expects that actual maturities may differ from the contractual maturities above because borrowers have the right to call or prepay certain obligations.
The sale and/or maturity of available-for-sale debt securities resulted in the following realized activity (in millions):
 
Three Months Ended
 
March 27, 2020

March 29, 2019

Gross gains
$
8

$
5

Gross losses
(2
)
(3
)
Proceeds
906

722


Captive Insurance Companies
In accordance with local insurance regulations, our captive insurance companies are required to meet and maintain minimum solvency capital requirements. The Company elected to invest a majority of its solvency capital in a portfolio of marketable equity and debt securities. These securities are included in the disclosures above. The Company uses one of its consolidated captive insurance companies to reinsure group annuity insurance contracts that cover the pension obligations of certain of our European and Canadian pension plans. This captive's solvency capital funds included equity and debt securities of $1,025 million as of March 27, 2020 and $1,266 million as of December 31, 2019, which are classified in the line item other assets in our condensed consolidated balance sheets because the assets are not available to satisfy our current obligations.