Quarterly report pursuant to Section 13 or 15(d)

Investments

v3.20.2
Investments
9 Months Ended
Sep. 25, 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
September 25, 2020
Marketable securities $ 296  $  
Other investments 662  50 
Other assets 1,097   
Total equity securities $ 2,055  $ 50 
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
September 25,
2020
September 27,
2019
Net gains (losses) recognized during the period related to equity securities $ 17  $ 29 
Less: Net gains (losses) recognized during the period related to equity securities sold
during the period
  — 
Net unrealized gains (losses) recognized during the period related to equity securities
still held at the end of the period
$ 17  $ 29 
Nine Months Ended
September 25,
2020
September 27,
2019
Net gains (losses) recognized during the period related to equity securities $ (137) $ 163 
Less: Net gains (losses) recognized during the period related to equity securities sold
during the period
(24) 16 
Net unrealized gains (losses) recognized during the period related to equity securities
still held at the end of the period
$ (113) $ 147 
Debt Securities
Our debt securities consisted of the following (in millions):
Gross Unrealized Estimated Fair Value
Cost Gains Losses
September 25, 2020
Trading securities
$ 34  $ 1  $   $ 35 
Available-for-sale securities
2,611  63  (16) 2,658 
Total debt securities
$ 2,645  $ 64  $ (16) $ 2,693 
December 31, 2019
Trading securities
$ 46  $ $ —  $ 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):
September 25, 2020 December 31, 2019
Trading Securities Available-for-Sale Securities Trading Securities Available-for-Sale Securities
Cash and cash equivalents
$   $ 305  $ —  $ 123 
Marketable securities
35  2,065  47  2,852 
Other assets
  288  —  306 
Total debt securities $ 35  $ 2,658  $ 47  $ 3,281 
The contractual maturities of these available-for-sale debt securities as of September 25, 2020 were as follows (in millions):
Cost Estimated
Fair Value
Within 1 year $ 1,186  $ 1,212 
After 1 year through 5 years 1,140  1,134 
After 5 years through 10 years 89  102 
After 10 years 196  210 
Total $ 2,611  $ 2,658 
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 Nine Months Ended
September 25,
2020
September 27,
2019
September 25,
2020
September 27,
2019
Gross gains $ 2  $ $ 19  $ 37 
Gross losses (3) (1) (11) (5)
Proceeds 233  1,284  1,419  3,074 
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 $1,227 million and $1,266 million as of September 25, 2020 and December 31, 2019, respectively, 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.