Quarterly report pursuant to Section 13 or 15(d)

INVESTMENTS

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INVESTMENTS
 6 Months Ended
Jul. 01, 2022
Investments, Debt and Equity Securities [Abstract]  
INVESTMENTS INVESTMENTS
Equity Securities
The carrying values of our equity securities were included in the following line items in our consolidated balance sheets (in millions):
Fair Value with Changes Recognized in Income Measurement Alternative — No Readily Determinable Fair Value
July 1, 2022
Marketable securities $ 310  $ — 
Other investments 614  41 
Other noncurrent assets 1,282  — 
Total equity securities $ 2,206  $ 41 
December 31, 2021
Marketable securities $ 376  $ — 
Other investments 771  47 
Other noncurrent assets 1,576  — 
Total equity securities $ 2,723  $ 47 
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
July 1,
2022		 July 2,
2021
Net gains (losses) recognized during the period related to equity securities $ (261) $ 202 
Less: Net gains (losses) recognized during the period related to equity securities sold
during the period
(129) 5 
Net unrealized gains (losses) recognized during the period related to equity securities
still held at the end of the period
 $ (132) $ 197 
Six Months Ended
July 1,
2022		 July 2,
2021
Net gains (losses) recognized during the period related to equity securities $ (361) $ 357 
Less: Net gains (losses) recognized during the period related to equity securities sold
during the period
(254) 19 
Net unrealized gains (losses) recognized during the period related to equity securities
still held at the end of the period
 $ (107) $ 338 
Debt Securities
Our debt securities consisted of the following (in millions):
Gross Unrealized Estimated
Fair Value
Cost Gains Losses
July 1, 2022
Trading securities
 $ 42  $ —  $ (4) $ 38 
Available-for-sale securities
 1,882  22  (158) 1,746 
Total debt securities
 $ 1,924  $ 22  $ (162) $ 1,784 
December 31, 2021
Trading securities
 $ 39  $ 1  $ —  $ 40 
Available-for-sale securities
 1,648  33  (132) 1,549 
Total debt securities
 $ 1,687  $ 34  $ (132) $ 1,589 
The carrying values of our debt securities were included in the following line items in our consolidated balance sheets (in millions):
July 1, 2022 December 31, 2021
Trading Securities Available-for-Sale Securities Trading Securities Available-for-Sale Securities
Marketable securities
 $ 38  $ 1,519  $ 40  $ 1,283 
Other noncurrent assets
 —  227  —  266 
Total debt securities $ 38  $ 1,746  $ 40  $ 1,549 
The contractual maturities of these available-for-sale debt securities as of July 1, 2022 were as follows (in millions):
Cost Estimated
Fair Value
Within 1 year $ 61  $ 60 
After 1 year through 5 years 1,612  1,478 
After 5 years through 10 years 37  49 
After 10 years 172  159 
Total $ 1,882  $ 1,746 
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 Six Months Ended
July 1,
2022		 July 2,
2021		 July 1,
2022		 July 2,
2021
Gross gains $ 2  $ 1  $ 3  $ 2 
Gross losses (3) (4) (8) (8)
Proceeds 113  809  344  967 
Captive Insurance Companies
In accordance with local insurance regulations, our consolidated 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 our consolidated captive insurance companies to reinsure group annuity insurance contracts that cover the obligations of certain of our European and Canadian pension plans. This captive’s solvency capital funds included total equity and debt securities of $1,362 million and $1,670 million as of July 1, 2022 and December 31, 2021, respectively, which were classified in the line item other noncurrent assets in our consolidated balance sheets because the assets are not available to satisfy our current obligations.