NOTE 4 — INVESTMENTS

Investment Components

The components of investments, including associated derivatives, but excluding held-to-maturity investments, were as follows:

 

(In millions)		Cost Basis				Unrealized Gains				Unrealized Losses				Recorded Basis				Cash and Cash Equivalents				Short-term Investments				Equity and Other Investments
September 30, 2016
Cash		$	3,473			$	0			$	0			$	3,473			$	3,473			$	0			$	0
Mutual funds			1,516				0				0				1,516				1,516				0				0
Commercial paper			745				0				0				745				645				100				0
Certificates of deposit			1,304				0				0				1,304				1,128				176				0
U.S. government and agency securities			112,619				116				(34	)			112,701				6,916				105,785				0
Foreign government bonds			5,709				9				(18	)			5,700				250				5,450				0
Mortgage- and asset-backed securities			4,599				24				(1	)			4,622				0				4,622				0
Corporate notes and bonds			6,440				108				(18	)			6,530				0				6,530				0
Municipal securities			284				59				0				343				0				343				0
Common and preferred stock			5,395				4,639				(161	)			9,873				0				0				9,873
Other investments			585				0				0				585				0				(2	)			587
Total		$	142,669			$	4,955			$	(232	)		$	147,392			$	13,928			$	123,004			$	10,460

 

(In millions)		Cost Basis				Unrealized Gains				Unrealized Losses				Recorded Basis				Cash and Cash Equivalents				Short-term Investments				Equity and Other Investments
June 30, 2016
Cash		$	3,501			$	0			$	0			$	3,501			$	3,501			$	0			$	0
Mutual funds			1,012				0				0				1,012				1,012				0				0
Commercial paper			298				0				0				298				298				0				0
Certificates of deposit			1,000				0				0				1,000				868				132				0
U.S. government and agency securities			89,970				245				(11	)			90,204				100				90,104				0
Foreign government bonds			5,502				10				(18	)			5,494				731				4,763				0
Mortgage- and asset-backed securities			4,789				21				(2	)			4,808				0				4,808				0
Corporate notes and bonds			6,509				110				(35	)			6,584				0				6,584				0
Municipal securities			285				57				0				342				0				342				0
Common and preferred stock			5,597				4,452				(236	)			9,813				0				0				9,813
Other investments			590				0				0				590				0				(3	)			593
Total		$	119,053			$	4,895			$	(302	)		$	123,646			$	6,510			$	106,730			$	10,406

 

As of September 30, 2016 and June 30, 2016, the recorded bases of common and preferred stock that are restricted for more than one year or are not publicly traded were $802 million and $767 million, respectively. These investments are carried at cost and are reviewed quarterly for indicators of other-than-temporary impairment. It is not practicable for us to reliably estimate the fair value of these investments.

We lend certain fixed-income and equity securities to increase investment returns. These transactions are accounted for as secured borrowings and the loaned securities continue to be carried as investments on our consolidated balance sheets. Cash and/or security interests are received as collateral for the loaned securities with the amount determined based upon the underlying security lent and the creditworthiness of the borrower. As of September 30, 2016 and June 30, 2016, the collateral received under agreements for loaned securities totaled $210 million and $294 million, which is primarily comprised of U.S. government and agency securities.

Unrealized Losses on Investments

Investments with continuous unrealized losses for less than 12 months and 12 months or greater and their related fair values were as follows:

 

		Less than 12 Months								12 Months or Greater												Total Unrealized Losses
(In millions)		Fair Value				Unrealized Losses				Fair Value				Unrealized Losses				Total Fair Value
September 30, 2016
U.S. government and agency securities		$	40,654			$	(26	)		$	379			$	(8	)		$	41,033			$	(34	)
Foreign government bonds			5,081				(1	)			38				(17	)			5,119				(18	)
Mortgage- and asset-backed securities			0				0				214				(1	)			214				(1	)
Corporate notes and bonds			920				(4	)			484				(14	)			1,404				(18	)
Common and preferred stock			523				(65	)			486				(96	)			1,009				(161	)
Total		$	47,178			$	(96	)		$	1,601			$	(136	)		$	48,779			$	(232	)

 

		Less than 12 Months								12 Months or Greater												Total Unrealized Losses
(In millions)		Fair Value				Unrealized Losses				Fair Value				Unrealized Losses				Total Fair Value
June 30, 2016
U.S. government and agency securities		$	5,816			$	(3	)		$	432			$	(8	)		$	6,248			$	(11	)
Foreign government bonds			3,452				(3	)			35				(15	)			3,487				(18	)
Mortgage- and asset-backed securities			844				(1	)			322				(1	)			1,166				(2	)
Corporate notes and bonds			1,180				(11	)			788				(24	)			1,968				(35	)
Common and preferred stock			896				(147	)			390				(89	)			1,286				(236	)
Total		$	12,188			$	(165	)		$	1,967			$	(137	)		$	14,155			$	(302	)

Unrealized losses from fixed-income securities are primarily attributable to changes in interest rates. Unrealized losses from domestic and international equities are due to market price movements. Management does not believe any remaining unrealized losses represent other-than-temporary impairments based on our evaluation of available evidence.

 

Debt Investment Maturities

 

(In millions)		Cost Basis				Estimated Fair Value
September 30, 2016
Due in one year or less		$	48,954			$	48,970
Due after one year through five years			79,647				79,755
Due after five years through 10 years			1,745				1,788
Due after 10 years			1,354				1,432
Total		$	131,700			$	131,945