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 |
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| June 30, 2013 | ||||||||||||||||||||||||||||
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Cash |
$ | 1,967 | $ | 0 | $ | 0 | $ | 1,967 | $ | 1,967 | $ | 0 | $ | 0 | ||||||||||||||
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Mutual funds |
868 | 0 | 0 | 868 | 868 | 0 | 0 | |||||||||||||||||||||
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Commercial paper |
603 | 0 | 0 | 603 | 214 | 389 | 0 | |||||||||||||||||||||
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Certificates of deposit |
994 | 0 | 0 | 994 | 609 | 385 | 0 | |||||||||||||||||||||
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U.S. government and agency securities |
64,934 | 47 | (84 | ) | 64,897 | 146 | 64,751 | 0 | ||||||||||||||||||||
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Foreign government bonds |
900 | 16 | (41 | ) | 875 | 0 | 875 | 0 | ||||||||||||||||||||
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Mortgage-backed securities |
1,258 | 43 | (13 | ) | 1,288 | 0 | 1,288 | 0 | ||||||||||||||||||||
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Corporate notes and bonds |
4,993 | 169 | (40 | ) | 5,122 | 0 | 5,122 | 0 | ||||||||||||||||||||
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Municipal securities |
350 | 36 | (1 | ) | 385 | 0 | 385 | 0 | ||||||||||||||||||||
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Common and preferred stock |
6,931 | 2,938 | (281 | ) | 9,588 | 0 | 0 | 9,588 | ||||||||||||||||||||
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Other investments |
1,279 | 0 | 0 | 1,279 | 0 | 23 | 1,256 | |||||||||||||||||||||
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Total |
$ | 85,077 | $ | 3,249 | $ | (460 | ) | $ | 87,866 | $ | 3,804 | $ | 73,218 | $ | 10,844 | |||||||||||||
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| (In millions) | Cost Basis |
Unrealized Gains |
Unrealized Losses |
Recorded Basis |
Cash and Cash Equivalents |
Short-term Investments |
Equity and Other Investments |
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| June 30, 2012 | ||||||||||||||||||||||||||||
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Cash |
$ | 2,019 | $ | 0 | $ | 0 | $ | 2,019 | $ | 2,019 | $ | 0 | $ | 0 | ||||||||||||||
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Mutual funds |
820 | 0 | 0 | 820 | 820 | 0 | 0 | |||||||||||||||||||||
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Commercial paper |
96 | 0 | 0 | 96 | 96 | 0 | 0 | |||||||||||||||||||||
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Certificates of deposit |
744 | 0 | 0 | 744 | 342 | 402 | 0 | |||||||||||||||||||||
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U.S. government and agency securities |
47,178 | 130 | (2 | ) | 47,306 | 561 | 46,745 | 0 | ||||||||||||||||||||
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Foreign government bonds |
1,741 | 18 | (29 | ) | 1,730 | 575 | 1,155 | 0 | ||||||||||||||||||||
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Mortgage-backed securities |
1,816 | 82 | (2 | ) | 1,896 | 0 | 1,896 | 0 | ||||||||||||||||||||
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Corporate notes and bonds |
7,799 | 224 | (15 | ) | 8,008 | 2,525 | 5,483 | 0 | ||||||||||||||||||||
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Municipal securities |
358 | 58 | (0 | ) | 416 | 0 | 416 | 0 | ||||||||||||||||||||
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Common and preferred stock |
6,965 | 2,204 | (436 | ) | 8,733 | 0 | 0 | 8,733 | ||||||||||||||||||||
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Other investments |
1,048 | 0 | 0 | 1,048 | 0 | 5 | 1,043 | |||||||||||||||||||||
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Total |
$ | 70,584 | $ | 2,716 | $ | (484 | ) | $ | 72,816 | $ | 6,938 | $ | 56,102 | $ | 9,776 | |||||||||||||
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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 |
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| (In millions) | Fair Value | Unrealized Losses |
Fair Value | Unrealized Losses |
Total Fair Value |
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| June 30, 2013 | ||||||||||||||||||||||||
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U.S. government and agency securities |
$ | 2,208 | $ | (84 | ) | $ | 0 | $ | 0 | $ | 2,208 | $ | (84 | ) | ||||||||||
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Foreign government bonds |
589 | (18 | ) | 69 | (23 | ) | 658 | (41 | ) | |||||||||||||||
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Mortgage-backed securities |
357 | (12 | ) | 39 | (1 | ) | 396 | (13 | ) | |||||||||||||||
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Corporate notes and bonds |
1,142 | (38 | ) | 27 | (2 | ) | 1,169 | (40 | ) | |||||||||||||||
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Municipal securities |
44 | (1 | ) | 0 | 0 | 44 | (1 | ) | ||||||||||||||||
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Common and preferred stock |
1,166 | (168 | ) | 409 | (113 | ) | 1,575 | (281 | ) | |||||||||||||||
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Total |
$ | 5,506 | $ | (321 | ) | $ | 544 | $ | (139 | ) | $ | 6,050 | $ | (460 | ) | |||||||||
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| Less than 12 Months | 12 Months or Greater |
Total Unrealized Losses |
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| (In millions) | Fair Value | Unrealized Losses |
Fair Value | Unrealized Losses |
Total Fair Value |
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| June 30, 2012 | ||||||||||||||||||||||||
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U.S. government and agency securities |
$ | 44 | $ | (2 | ) | $ | 0 | $ | 0 | $ | 44 | $ | (2 | ) | ||||||||||
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Foreign government bonds |
657 | (27 | ) | 12 | (2 | ) | 669 | (29 | ) | |||||||||||||||
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Mortgage-backed securities |
53 | 0 | 48 | (2 | ) | 101 | (2 | ) | ||||||||||||||||
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Corporate notes and bonds |
640 | (11 | ) | 70 | (4 | ) | 710 | (15 | ) | |||||||||||||||
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Common and preferred stock |
2,135 | (329 | ) | 305 | (107 | ) | 2,440 | (436 | ) | |||||||||||||||
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Total |
$ | 3,529 | $ | (369 | ) | $ | 435 | $ | (115 | ) | $ | 3,964 | $ | (484 | ) | |||||||||
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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 as of June 30, 2013.
At June 30, 2013 and 2012, the recorded bases of common and preferred stock and other investments that are restricted for more than one year or are not publicly traded were $395 million and $313 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.
Debt Investment Maturities
| (In millions) | Cost Basis |
Estimated Fair Value |
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| June 30, 2013 | ||||||||
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Due in one year or less |
$ | 26,386 | $ | 26,412 | ||||
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Due after one year through five years |
42,343 | 42,400 | ||||||
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Due after five years through 10 years |
3,293 | 3,303 | ||||||
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Due after 10 years |
2,010 | 2,049 | ||||||
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Total |
$ | 74,032 | $ | 74,164 | ||||
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