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The following table summarizes the gross unrealized losses due to temporary impairments by ratio of fair value to
amortized cost, as of December 31:
Less than 12 months 12 months or more Total
Ratio of Fair Value to Amortized
Cost (Dollars in millions) Number of
Securities Estimated
Fair Value
Gross
Unrealized
Losses Number of
Securities Estimated
Fair Value
Gross
Unrealized
Losses Number of
Securities Estimated
Fair Value
Gross
Unrealized
Losses
2015:
90%–100% ................ 52 $450 $(5) 15 $ 37 $(2) 67 $ 487 $ (7)
Less than 90% .............. — — — 2 9 (2) 2 9 (2)
Total as of December 31, 2015 . .
52 $450 $(5) 17 $ 46 $(4) 69 $496 $(9)
2014:
90%–100% ................ — $ — $— 15 $105 $(3) 15 $105 $(3)
Total as of December 31, 2014 . .
— $ — $ — 15 $105 $ (3) 15 $ 105 $(3)
The gross unrealized losses are attributed to overall wider credit spreads for state and municipal securities, wider
credit spreads for specific issuers, adverse changes in market benchmark interest rates, or a combination thereof, all
compared to those prevailing when the investment securities were acquired.
Overall, for the investment securities in gross unrealized loss positions, (i) the Company does not intend to sell the
investment securities, (ii) it is more likely than not that the Company will not be required to sell the investment
securities before recovery of the unrealized losses, and (iii) the Company expects that the contractual principal and
interest will be received on the investment securities. As a result, the Company recognized no other-than-temporary
impairment during the periods presented.
Weighted average yields and contractual maturities for investment securities with stated maturities as of
December 31, 2015 were as follows:
(Millions) Due within
1 year
Due after 1
year but
within 5 years
Due after 5
years but
within 10 years Due after
10 years Total
State and municipal obligations (a) .................... $ 23 $ 61 $ 277 $2,532 $2,893
U.S. Government agency obligations .................. —— —22
U.S. Government treasury obligations ................. 120 144 132 13 409
Corporate debt securities ............................ 624 ——30
Mortgage-backed securities (a) ....................... 1 — — 120 121
Foreign government bonds and obligations ............ 190 23 — 42 255
Total Estimated Fair Value ........................... $ 340 $ 252 $ 409 $2,709 $ 3,710
Total Cost ......................................... $ 340 $ 247 $ 395 $2,635 $ 3,617
Weighted average yields (b) .......................... 2.86% 2.78% 5.48% 6.58% 5.85%
(a) The expected payments on state and municipal obligations and mortgage-backed securities may not coincide with their contractual maturities
because the issuers have the right to call or prepay certain obligations.
(b) Average yields for investment securities have been calculated using the effective yield on the date of purchase. Yields on tax-exempt investment
securities have been computed on a tax-equivalent basis using the U.S. federal statutory tax rate of 35 percent.
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