We have investments in certain debt and equity securities, which we record at fair value and primarily include in Other assets in Statement 3. Short-term and long-term investments are held with high quality institutions and, by policy, the amount of credit exposure to any one institution is limited.

We classify debt securities primarily as available-for-sale. We include the unrealized gains and losses arising from the revaluation of available-for-sale debt securities, net of applicable deferred income taxes, in equity (AOCI in Statement 3). We include the unrealized gains and losses arising from the revaluation of the equity securities in Other income (expense) in Statement 1. We generally determine realized gains and losses on sales of investments using the specific identification method for available-for-sale debt and equity securities and include them in Other income (expense) in Statement 1.

The cost basis and fair value of available-for-sale debt securities with unrealized gains and losses included in equity (AOCI in Statement 3) were as follows:


Available-for-sale debt securities	December 31, 2025						December 31, 2024
(Millions of dollars)	Cost Basis		Unrealized Pretax Net Gains (Losses)		Fair Value		Cost Basis		Unrealized Pretax Net Gains (Losses)		Fair Value
Government debt securities
U.S. treasury bonds	$	10	$	—	$	10	$	10	$	—	$	10
Other U.S. and non-U.S. government bonds	72		2		74		71		(3)		68

Corporate debt securities
Corporate bonds and other debt securities	2,457		23		2,480		3,199		(29)		3,170
Asset-backed securities	273		—		273		220		(1)		219

Mortgage-backed debt securities
U.S. governmental agency	580		(8)		572		476		(33)		443
Residential	2		(1)		1		2		—		2
Commercial	141		(2)		139		136		(6)		130
Total available-for-sale debt securities	$	3,535	$	14	$	3,549	$	4,114	$	(72)	$	4,042


Available-for-sale debt securities in an unrealized loss position:

	December 31, 2025
	Less than 12 months 1				12 months or more 1				Total
(Millions of dollars)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Government debt securities
Other U.S. and non-U.S. government bonds	$	—	$	—	$	17	$	—	$	17	$	—


Corporate debt securities
Corporate bonds	130		—		306		6		436		6
Asset-backed securities	38		—		43		1		81		1

Mortgage-backed debt securities
U.S. governmental agency	3		—		307		15		310		15
Residential	—		—		1		1		1		1
Commercial	6		—		89		3		95		3
Total	$	177	$	—	$	763	$	26	$	940	$	26


	December 31, 2024
	Less than 12 months 1				12 months or more 1				Total
(Millions of dollars)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Government debt securities
Other U.S. and non-U.S. government bonds	$	—	$	—	$	55	$	4	$	55	$	4

Corporate debt securities
Corporate bonds	729		3		812		33		1,541		36
Asset-backed securities	7		—		37		2		44		2

Mortgage-backed debt securities
U.S. governmental agency	126		3		273		30		399		33

Commercial	13		—		113		6		126		6
Total	$	875	$	6	$	1,290	$	75	$	2,165	$	81

1 Indicates the length of time that individual securities have been in a continuous unrealized loss position.

The unrealized losses on our investments in government debt securities, corporate debt securities, and mortgage-backed debt securities relate to changes in underlying interest rates and credit spreads since time of purchase. We do not intend to sell the investments, and it is not likely that we will be required to sell the investments before recovery of their respective amortized cost basis. In addition, we did not expect credit-related losses on these investments as of December 31, 2025.

The cost basis and fair value of available-for-sale debt securities at December 31, 2025, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to prepay and creditors may have the right to call obligations.



	December 31, 2025
(Millions of dollars)	Cost Basis		Fair Value
Due in one year or less	$	744	$	748
Due after one year through five years	1,488		1,504
Due after five years through ten years	378		383
Due after ten years	202		202
U.S. governmental agency mortgage-backed securities	580		572
Residential mortgage-backed securities	2		1
Commercial mortgage-backed securities	141		139
Total debt securities – available-for-sale	$	3,535	$	3,549

For the years ended December 31, 2025, 2024 and 2023 proceeds from available-for-sale debt securities were $2,166 million, $1,223 million and $940 million respectively.

The net unrealized gains (losses) for equity securities held at December 31, 2025, 2024 and 2023 were $20 million, $25 million and $(12) million respectively.