Quarterly report pursuant to Section 13 or 15(d)

INVESTMENTS

v3.24.2
INVESTMENTS
 6 Months Ended
Jun. 28, 2024
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
June 28, 2024
Marketable securities $ 381  $ — 
Other investments 125  42 
Other noncurrent assets 1,628  — 
Total equity securities $ 2,134  $ 42 
December 31, 2023
Marketable securities $ 345  $ — 
Other investments 76  42 
Other noncurrent assets 1,585  — 
Total equity securities $ 2,006  $ 42 
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
June 28,
2024		 June 30,
2023
Net gains (losses) recognized during the period related to equity securities $ 52  $ 130 
Less: Net gains (losses) recognized during the period related to equity securities sold
during the period
4  22 
Net unrealized gains (losses) recognized during the period related to equity securities
still held at the end of the period
 $ 48  $ 108 
Six Months Ended
June 28,
2024		 June 30,
2023
Net gains (losses) recognized during the period related to equity securities $ 235  $ 255 
Less: Net gains (losses) recognized during the period related to equity securities sold
during the period
21  33 
Net unrealized gains (losses) recognized during the period related to equity securities
still held at the end of the period
 $ 214  $ 222 
Debt Securities
Our debt securities consisted of the following (in millions):
Gross Unrealized Estimated
Fair Value
Cost Gains Losses
June 28, 2024
Trading securities
 $ 44  $ 1  $ (1) $ 44 
Available-for-sale securities
 1,575  22  (58) 1,539 
Total debt securities
 $ 1,619  $ 23  $ (59) $ 1,583 
December 31, 2023
Trading securities
 $ 43  $ —  $ (2) $ 41 
Available-for-sale securities
 1,136  26  (28) 1,134 
Total debt securities
 $ 1,179  $ 26  $ (30) $ 1,175 
The carrying values of our debt securities were included in the following line items in our consolidated balance sheets (in millions):
June 28, 2024 December 31, 2023
Trading Securities Available-for-Sale Securities Trading Securities Available-for-Sale Securities
Marketable securities
 $ 44  $ 1,169  $ 41  $ 914 
Other noncurrent assets
 —  370  —  220 
Total debt securities $ 44  $ 1,539  $ 41  $ 1,134 
The contractual maturities of these available-for-sale debt securities as of June 28, 2024 were as follows (in millions):
Cost Estimated
Fair Value
Within 1 year $ 187  $ 187 
After 1 year through 5 years 1,156  1,125 
After 5 years through 10 years 46  56 
After 10 years 186  171 
Total $ 1,575  $ 1,539 
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
June 28,
2024		 June 30,
2023		 June 28,
2024		 June 30,
2023
Gross gains $ 4  $ 2  $ 5  $ 2 
Gross losses (2) (1) (9) (4)
Proceeds 57  40  440  108 
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 $1,877 million and $1,643 million as of June 28, 2024 and December 31, 2023, respectively, which were classified in the line item other noncurrent assets in our consolidated balance sheets because the assets were not available to satisfy our current obligations.