Investments

9 Months Ended

Mar. 31, 2013

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
March 31, 2013
Cash	$	2,271	$	0	$	0		$	2,271	$	2,271	$	0	$	0
Mutual funds		1,064		0		0			1,064		1,064		0		0
Commercial paper		186		0		0			186		186		0		0
Certificates of deposit		933		0		0			933		550		383		0
U.S. government and agency securities		60,870		139		(2	)		61,007		69		60,938		0
Foreign government bonds		1,141		34		(15	)		1,160		0		1,160		0
Mortgage-backed securities		1,271		59		(1	)		1,329		0		1,329		0
Corporate notes and bonds		5,842		261		(4	)		6,099		1,100		4,999		0
Municipal securities		357		65		0			422		0		422		0
Common and preferred stock		7,063		3,033		(190	)		9,906		0		0		9,906
Other investments		1,299		0		0			1,299		0		12		1,287
Total	$	82,297	$	3,591	$	(212	)	$	85,676	$	5,240	$	69,243	$	11,193

(In millions)	Cost Basis		Unrealized Gains		Unrealized Losses			Recorded Basis		Cash and Cash Equivalents		Short-term Investments		Equity and Other Investments
June 30, 2012
Cash	$	2,019	$	0	$	0		$	2,019	$	2,019	$	0	$	0
Mutual funds		820		0		0			820		820		0		0
Commercial paper		96		0		0			96		96		0		0
Certificates of deposit		744		0		0			744		342		402		0
U.S. government and agency securities		47,178		130		(2	)		47,306		561		46,745		0
Foreign government bonds		1,741		18		(29	)		1,730		575		1,155		0
Mortgage-backed securities		1,816		82		(2	)		1,896		0		1,896		0
Corporate notes and bonds		7,799		224		(15	)		8,008		2,525		5,483		0
Municipal securities		358		58		0			416		0		416		0
Common and preferred stock		6,965		2,204		(436	)		8,733		0		0		8,733
Other investments		1,048		0		0			1,048		0		5		1,043
Total	$	70,584	$	2,716	$	(484	)	$	72,816	$	6,938	$	56,102	$	9,776

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, 2013
U.S. government and agency securities	$	213	$	(2	)	$	0	$	0		$	213	$	(2	)
Foreign government bonds		151		(2	)		79		(13	)		230		(15	)
Mortgage-backed securities		52		0			42		(1	)		94		(1	)
Corporate notes and bonds		364		(1	)		30		(3	)		394		(4	)
Common and preferred stock		1,059		(107	)		426		(83	)		1,485		(190	)
Total	$	1,839	$	(112	)	$	577	$	(100	)	$	2,416	$	(212	)

	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, 2012
U.S. government and agency securities	$	44	$	(2	)	$	0	$	0		$	44	$	(2	)
Foreign government bonds		657		(27	)		12		(2	)		669		(29	)
Mortgage-backed securities		53		0			48		(2	)		101		(2	)
Corporate notes and bonds		640		(11	)		70		(4	)		710		(15	)
Common and preferred stock		2,135		(329	)		305		(107	)		2,440		(436	)
Total	$	3,529	$	(369	)	$	435	$	(115	)	$	3,964	$	(484	)

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 March 31, 2013.

At March 31, 2013 and June 30, 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 $380 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 possible for us to reliably estimate the fair value of these investments.

Debt Investment Maturities

(In millions)	Cost Basis		Estimated Fair Value
March 31, 2013
Due in one year or less	$	33,279	$	33,331
Due after one year through five years		32,128		32,267
Due after five years through 10 years		3,098		3,319
Due after 10 years		2,095		2,219
Total	$	70,600	$	71,136