NOTE 6 — INVESTMENTS OF INSURANCE SUBSIDIARIES
A summary of the insurance subsidiaries’ investments at December 31 follows (dollars in millions):
| 2013 | ||||||||||||||||
| Amortized Cost |
Unrealized Amounts |
Fair Value |
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| Gains | Losses | |||||||||||||||
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Debt securities: |
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States and municipalities |
$ | 385 | $ | 11 | $ | (3 | ) | $ | 393 | |||||||
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Auction rate securities |
7 | — | — | 7 | ||||||||||||
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Asset-backed securities |
12 | — | — | 12 | ||||||||||||
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Money market funds |
94 | — | — | 94 | ||||||||||||
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| 498 | 11 | (3 | ) | 506 | ||||||||||||
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Equity securities |
2 | 2 | — | 4 | ||||||||||||
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| $ | 500 | $ | 13 | $ | (3 | ) | 510 | |||||||||
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Amounts classified as current assets |
(62 | ) | ||||||||||||||
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Investment carrying value |
$ | 448 | ||||||||||||||
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| 2012 | ||||||||||||||||
| Amortized Cost |
Unrealized Amounts |
Fair Value |
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| Gains | Losses | |||||||||||||||
|
Debt securities: |
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|
States and municipalities |
$ | 395 | $ | 23 | $ | — | $ | 418 | ||||||||
|
Auction rate securities |
74 | — | (6 | ) | 68 | |||||||||||
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Asset-backed securities |
14 | — | — | 14 | ||||||||||||
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Money market funds |
67 | — | — | 67 | ||||||||||||
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| 550 | 23 | (6 | ) | 567 | ||||||||||||
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Equity securities |
2 | 1 | — | 3 | ||||||||||||
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| $ | 552 | $ | 24 | $ | (6 | ) | 570 | |||||||||
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Amounts classified as current assets |
(55 | ) | ||||||||||||||
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Investment carrying value |
$ | 515 | ||||||||||||||
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At December 31, 2013 and 2012, the investments of our insurance subsidiaries were classified as “available-for-sale.” Changes in temporary unrealized gains and losses are recorded as adjustments to other comprehensive income (loss). At December 31, 2013 and 2012, $1 million and $9 million, respectively, of our investments were subject to the restrictions included in insurance bond collateralization and assumed reinsurance contracts.
Scheduled maturities of investments in debt securities at December 31, 2013 were as follows (dollars in millions):
| Amortized Cost |
Fair Value |
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Due in one year or less |
$ | 110 | $ | 110 | ||||
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Due after one year through five years |
180 | 186 | ||||||
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Due after five years through ten years |
100 | 102 | ||||||
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Due after ten years |
89 | 89 | ||||||
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| 479 | 487 | |||||||
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Auction rate securities |
7 | 7 | ||||||
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Asset-backed securities |
12 | 12 | ||||||
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| $ | 498 | $ | 506 | |||||
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The average expected maturity of the investments in debt securities at December 31, 2013 was 3.8 years, compared to the average scheduled maturity of 5.4 years. Expected and scheduled maturities may differ because the issuers of certain securities have the right to call, prepay or otherwise redeem such obligations prior to their scheduled maturity date.