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
March 31, 2016
Cash		$	3,691			$	0			$	0			$	3,691			$	3,691			$	0			$	0
Mutual funds			1,111				0				0				1,111				1,111				0				0
Commercial paper			824				0				0				824				824				0				0
Certificates of deposit			1,324				0				0				1,324				1,178				146				0
U.S. government and agency securities			81,676				98				(23	)			81,751				138				81,613				0
Foreign government bonds			5,221				6				(28	)			5,199				228				4,971				0
Mortgage- and asset-backed securities			4,695				19				(4	)			4,710				0				4,710				0
Corporate notes and bonds			6,582				95				(64	)			6,613				0				6,613				0
Municipal securities			285				47				0				332				0				332				0
Common and preferred stock			6,075				4,912				(254	)			10,733				0				0				10,733
Other investments			554				0				0				554				0				(3	)			557
Total		$	112,038			$	5,177			$	(373	)		$	116,842			$	7,170			$	98,382			$	11,290

 

(In millions)		Cost Basis				Unrealized Gains				Unrealized Losses				Recorded Basis				Cash and Cash Equivalents				Short-term Investments				Equity and Other Investments
June 30, 2015
Cash		$	3,679			$	0			$	0			$	3,679			$	3,679			$	0			$	0
Mutual funds			1,100				0				0				1,100				1,100				0				0
Commercial paper			1				0				0				1				1				0				0
Certificates of deposit			906				0				0				906				776				130				0
U.S. government and agency securities			72,843				76				(30	)			72,889				39				72,850				0
Foreign government bonds			5,477				3				(24	)			5,456				0				5,456				0
Mortgage- and asset-backed securities			4,899				23				(6	)			4,916				0				4,916				0
Corporate notes and bonds			7,192				97				(37	)			7,252				0				7,252				0
Municipal securities			285				35				(1	)			319				0				319				0
Common and preferred stock			6,668				4,986				(215	)			11,439				0				0				11,439
Other investments			597				0				0				597				0				8				589
Total		$	103,647			$	5,220			$	(313	)		$	108,554			$	5,595			$	90,931			$	12,028

As of March 31, 2016 and June 30, 2015, the recorded bases of common and preferred stock that are restricted for more than one year or are not publicly traded were $770 million and $561 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 March 31, 2016, the collateral received under these agreements totaled $373 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
March 31, 2016
U.S. government and agency securities		$	29,389			$	(12	)		$	529			$	(11	)		$	29,918			$	(23	)
Foreign government bonds			4,231				(2	)			58				(26	)			4,289				(28	)
Mortgage- and asset-backed securities			2,403				(4	)			136				0				2,539				(4	)
Corporate notes and bonds			2,753				(34	)			467				(30	)			3,220				(64	)
Common and preferred stock			991				(179	)			394				(75	)			1,385				(254	)
Total		$	39,767			$	(231	)		$	1,584			$	(142	)		$	41,351			$	(373	)

 

		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, 2015
U.S. government and agency securities		$	6,636			$	(9	)		$	421			$	(21	)		$	7,057			$	(30	)
Foreign government bonds			4,611				(12	)			18				(12	)			4,629				(24	)
Mortgage- and asset-backed securities			3,171				(5	)			28				(1	)			3,199				(6	)
Corporate notes and bonds			2,946				(29	)			104				(8	)			3,050				(37	)
Municipal securities			36				(1	)			0				0				36				(1	)
Common and preferred stock			1,389				(180	)			148				(35	)			1,537				(215	)
Total		$	18,789			$	(236	)		$	719			$	(77	)		$	19,508			$	(313	)

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
March 31, 2016
Due in one year or less		$	43,753			$	43,745
Due after one year through five years			53,372				53,453
Due after five years through 10 years			2,266				2,275
Due after 10 years			1,216				1,280
Total		$	100,607			$	100,753