Available-for-Sale Investments

12 Months Ended

Aug. 31, 2016

Available-for-Sale Investments [Abstract]

Available-for-Sale Investments

6. Available-for-Sale Investments

A summary of the cost and fair value of available-for-sale securities, with gross unrealized gains and losses, is as follows (in millions):

	August 31, 2016
	Amortized cost basis		Gross unrealized gains		Gross unrealized (losses)		Fair value
Corporate bonds and Treasury Bills	$	30	$	2	$	-	$	32

	August 31, 2015
		Amortized cost basis		Gross unrealized gains		Gross unrealized (losses)			Fair value
AmerisourceBergen common stock	$	717	$	430	$	-		$	1,147
Corporate bonds and Treasury Bills		37		-		(1	)		36
Total available-for-sale investments	$	754	$	430	$	(1	)	$	1,183

On March 18, 2016, the Company exercised warrants to purchase 22,696,912 shares of AmerisourceBergen common stock at an exercise price of $51.50 per share, which resulted in a change in method of accounting for the Company’s investment to the equity method of accounting. In conjunction with the change to the equity method of accounting, the Company recognized a gain of $268 million of Other Comprehensive Income to Other income (expense) within the Consolidated Statements of Earnings. See Note 5, Equity Method Investments, and Note 10, Financial Instruments for further information.

In fiscal 2016, there were $7 million of available-for-sale securities sold. In fiscal 2015, subsequent to the Second Step Transaction, $52 million of acquired available-for-sale securities were sold. In 2014, there were no sales of available-for-sale investments. Gains and losses related to these disposals were not significant.

The Company has $32 million and $36 million of available-for-sale investments classified within other current assets in the Consolidated Balance Sheets at August 31, 2016 and 2015, respectively.