Quarterly report pursuant to Section 13 or 15(d)

Investments

v3.21.1
Investments
 3 Months Ended
Apr. 02, 2021
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
April 2, 2021
Marketable securities $ 345  $ — 
Other investments 755  51 
Other assets 1,441  — 
Total equity securities $ 2,541  $ 51 
December 31, 2020
Marketable securities $ 330  $ — 
Other investments 762  50 
Other assets 1,282  — 
Total equity securities $ 2,374  $ 50 
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
April 2,
2021		 March 27,
2020
Net gains (losses) recognized during the period related to equity securities $ 155  $ (396)
Less: Net gains (losses) recognized during the period related to equity securities sold
   during the period 		14  (16)
Net unrealized gains (losses) recognized during the period related to equity securities
   still held at the end of the period		 $ 141  $ (380)
Debt Securities
Our debt securities consisted of the following (in millions):
Gross Unrealized Estimated Fair Value
Cost Gains Losses
April 2, 2021
Trading securities
 $ 37  $ 2  $ —  $ 39 
Available-for-sale securities
 2,180  33  (85) 2,128 
Total debt securities
 $ 2,217  $ 35  $ (85) $ 2,167 
December 31, 2020
Trading securities
 $ 36  $ 2  $ —  $ 38 
Available-for-sale securities
 2,227  51  (13) 2,265 
Total debt securities
 $ 2,263  $ 53  $ (13) $ 2,303 
The carrying values of our debt securities were included in the following line items in our condensed consolidated balance sheets (in millions):
April 2, 2021 December 31, 2020
Trading Securities Available-for-Sale Securities Trading Securities Available-for-Sale Securities
Cash and cash equivalents
 $ —  $ —  $ —  $ — 
Marketable securities
 39  1,850  38  1,980 
Other assets
 —  278  —  285 
Total debt securities $ 39  $ 2,128  $ 38  $ 2,265 
The contractual maturities of these available-for-sale debt securities as of April 2, 2021 were as follows (in millions):
Cost Estimated
Fair Value
Within 1 year $ 684  $ 691 
After 1 year through 5 years 1,205  1,143 
After 5 years through 10 years 92  101 
After 10 years 199  193 
Total $ 2,180  $ 2,128 
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
April 2,
2021		 March 27,
2020
Gross gains $ 1  $ 8 
Gross losses (4) (2)
Proceeds 158  906 
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 $1,534 million and $1,389 million as of April 2, 2021 and December 31, 2020, 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.