| INVESTMENTS |
NOTE 4 — INVESTMENTS
Investment Components
The components of investments, including associated derivatives, were as follows:
|
(In millions) |
|
Cost Basis |
|
|
Unrealized
Gains |
|
|
Unrealized
Losses |
|
|
Recorded
Basis |
|
|
Cash
and Cash
Equivalents |
|
|
Short-term
Investments |
|
|
Equity
and Other
Investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash |
|
$ |
3,624 |
|
|
$ |
0 |
|
|
$ |
0 |
|
|
$ |
3,624 |
|
|
$ |
3,624 |
|
|
$ |
0 |
|
|
$ |
0 |
|
|
Mutual funds |
|
|
1,478 |
|
|
|
0 |
|
|
|
0 |
|
|
|
1,478 |
|
|
|
1,478 |
|
|
|
0 |
|
|
|
0 |
|
|
Commercial paper |
|
|
319 |
|
|
|
0 |
|
|
|
0 |
|
|
|
319 |
|
|
|
69 |
|
|
|
250 |
|
|
|
0 |
|
|
Certificates of deposit |
|
|
1,358 |
|
|
|
0 |
|
|
|
0 |
|
|
|
1,358 |
|
|
|
972 |
|
|
|
386 |
|
|
|
0 |
|
|
U.S. government and agency securities |
|
|
112,119 |
|
|
|
85 |
|
|
|
(360 |
) |
|
|
111,844 |
|
|
|
16 |
|
|
|
111,828 |
|
|
|
0 |
|
|
Foreign government bonds |
|
|
5,276 |
|
|
|
2 |
|
|
|
(13 |
) |
|
|
5,265 |
|
|
|
1,504 |
|
|
|
3,761 |
|
|
|
0 |
|
|
Mortgage- and asset-backed securities |
|
|
3,921 |
|
|
|
14 |
|
|
|
(4 |
) |
|
|
3,931 |
|
|
|
0 |
|
|
|
3,931 |
|
|
|
0 |
|
|
Corporate notes and bonds |
|
|
4,786 |
|
|
|
61 |
|
|
|
(12 |
) |
|
|
4,835 |
|
|
|
0 |
|
|
|
4,835 |
|
|
|
0 |
|
|
Municipal securities |
|
|
284 |
|
|
|
43 |
|
|
|
0 |
|
|
|
327 |
|
|
|
0 |
|
|
|
327 |
|
|
|
0 |
|
|
Common and preferred stock |
|
|
2,472 |
|
|
|
3,062 |
|
|
|
(34 |
) |
|
|
5,500 |
|
|
|
0 |
|
|
|
0 |
|
|
|
5,500 |
|
|
Other investments |
|
|
523 |
|
|
|
0 |
|
|
|
0 |
|
|
|
523 |
|
|
|
0 |
|
|
|
0 |
|
|
|
523 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
136,160 |
|
|
$ |
3,267 |
|
|
$ |
(423 |
) |
|
$ |
139,004 |
|
|
$ |
7,663 |
|
|
$ |
125,318 |
|
|
$ |
6,023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 |
|
|
615 |
|
|
|
0 |
|
|
|
0 |
|
|
|
615 |
|
|
|
0 |
|
|
|
(3 |
) |
|
|
618 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
119,078 |
|
|
$ |
4,895 |
|
|
$ |
(302 |
) |
|
$ |
123,671 |
|
|
$ |
6,510 |
|
|
$ |
106,730 |
|
|
$ |
10,431 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of June 30, 2017 and 2016, the recorded bases of common and preferred stock that are restricted for more than one year or are not publicly traded were $1.1 billion 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.
As of June 30, 2017, collateral received under agreements for loaned securities was $3.7 billion, which was primarily comprised of U.S. government and agency securities. As of June 30, 2016, collateral received under agreements for loaned securities was $294 million, which was primarily comprised of cash.
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. government and agency securities |
|
$ |
87,558 |
|
|
$ |
(348 |
) |
|
$ |
371 |
|
|
$ |
(12 |
) |
|
$ |
87,929 |
|
|
$ |
(360 |
) |
|
Foreign government bonds |
|
|
4,006 |
|
|
|
(2 |
) |
|
|
23 |
|
|
|
(11 |
) |
|
|
4,029 |
|
|
|
(13 |
) |
|
Mortgage- and asset-backed securities |
|
|
1,068 |
|
|
|
(3 |
) |
|
|
198 |
|
|
|
(1 |
) |
|
|
1,266 |
|
|
|
(4 |
) |
|
Corporate notes and bonds |
|
|
669 |
|
|
|
(8 |
) |
|
|
177 |
|
|
|
(4 |
) |
|
|
846 |
|
|
|
(12 |
) |
|
Common and preferred stock |
|
|
69 |
|
|
|
(6 |
) |
|
|
148 |
|
|
|
(28 |
) |
|
|
217 |
|
|
|
(34 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
93,370 |
|
|
$ |
(367 |
) |
|
$ |
917 |
|
|
$ |
(56 |
) |
|
$ |
94,287 |
|
|
$ |
(423 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
|
|
|
|
|
|
|
|
June 30, 2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Due in one year or less |
|
$ |
18,212 |
|
|
$ |
18,188 |
|
|
Due after one year through five years |
|
|
102,374 |
|
|
|
102,168 |
|
|
Due after five years through 10 years |
|
|
6,478 |
|
|
|
6,504 |
|
|
Due after 10 years |
|
|
999 |
|
|
|
1,019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
128,063 |
|
|
$ |
127,879 |
|
|
|
|
|
|
|
|
|
|
|
|