Investments recorded at fair value that carry rating of AA Plus, weighted average (in years)

[Table of Contents](#ia12bad69886c4075b7558d5239cbff30_7)3. Short-term and Long-term Investments, Restricted Deposits  
Short-term and long-term investments and restricted deposits by investment type consist of the following ($ in millions):

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|   | March 31, 2022 |  | December 31, 2021 |
|   | AmortizedCost |  | GrossUnrealizedGains |  | GrossUnrealized Losses |  | FairValue |  | AmortizedCost |  | GrossUnrealizedGains |  | GrossUnrealized Losses |  | FairValue |
| Debt securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| U.S. Treasury securities and obligations of U.S. government corporations and agencies | $ | 552  |  |  | $ | —  |  |  | $ | (9) |  |  | $ | 543  |  |  | $ | 642  |  |  | $ | —  |  |  | $ | (2) |  |  | $ | 640  |  |
| Corporate securities | 8,752  |  |  | 26  |  |  | (368) |  |  | 8,410  |  |  | 8,145  |  |  | 130  |  |  | (75) |  |  | 8,200  |  |
| Restricted certificates of deposit | 4  |  |  | —  |  |  | —  |  |  | 4  |  |  | 4  |  |  | —  |  |  | —  |  |  | 4  |  |
| Restricted cash equivalents | 262  |  |  | —  |  |  | —  |  |  | 262  |  |  | 96  |  |  | —  |  |  | —  |  |  | 96  |  |
| Short-term time deposits | 130  |  |  | —  |  |  | —  |  |  | 130  |  |  | 109  |  |  | —  |  |  | —  |  |  | 109  |  |
| Municipal securities | 3,607  |  |  | 13  |  |  | (136) |  |  | 3,484  |  |  | 3,398  |  |  | 85  |  |  | (15) |  |  | 3,468  |  |
| Asset-backed securities | 1,308  |  |  | —  |  |  | (29) |  |  | 1,279  |  |  | 1,308  |  |  | 5  |  |  | (5) |  |  | 1,308  |  |
| Residential mortgage-backed securities | 919  |  |  | 1  |  |  | (45) |  |  | 875  |  |  | 850  |  |  | 10  |  |  | (7) |  |  | 853  |  |
| Commercial mortgage-backed securities | 939  |  |  | 1  |  |  | (43) |  |  | 897  |  |  | 870  |  |  | 13  |  |  | (10) |  |  | 873  |  |
| Equity securities (1) | 301  |  |  | —  |  |  | —  |  |  | 301  |  |  | 326  |  |  | —  |  |  | —  |  |  | 326  |  |
| Private equity investments | 626  |  |  | —  |  |  | —  |  |  | 626  |  |  | 587  |  |  | —  |  |  | —  |  |  | 587  |  |
| Life insurance contracts | 196  |  |  | —  |  |  | —  |  |  | 196  |  |  | 186  |  |  | —  |  |  | —  |  |  | 186  |  |
| Total | $ | 17,596  |  |  | $ | 41  |  |  | $ | (630) |  |  | $ | 17,007  |  |  | $ | 16,521  |  |  | $ | 243  |  |  | $ | (114) |  |  | $ | 16,650  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (1) Investments in equity securities primarily consist of exchange traded funds in fixed income securities. |

  
The Company's investments are debt securities classified as available-for-sale with the exception of equity securities, certain private equity investments and life insurance contracts. The Company's investment policies are designed to provide liquidity, preserve capital and maximize total return on invested assets with the focus on high credit quality securities. The Company limits the size of investment in any single issuer other than U.S. treasury securities and obligations of U.S. government corporations and agencies. As of March 31, 2022, 98% of the Company's investments in rated securities carry an investment grade rating by nationally recognized statistical rating organizations. At March 31, 2022, the Company held certificates of deposit, equity securities, private equity investments and life insurance contracts, which did not carry a credit rating. Accrued interest income on available-for-sale debt securities was $101 million and $96 million at March 31, 2022 and December 31, 2021, respectively, and is included in other current assets on the Consolidated Balance Sheets.  
The Company's residential mortgage-backed securities are primarily issued by the Federal National Mortgage Association, Government National Mortgage Association or Federal Home Loan Mortgage Corporation, which carry implicit or explicit guarantees of the U.S. government. The Company's commercial mortgage-backed securities are primarily senior tranches with a weighted average rating of AA and a weighted average duration of 4 years at March 31, 2022.  
8
