INVESTMENTS

6 Months Ended

Dec. 31, 2016

INVESTMENTS

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
December 31, 2016
Cash	$	4,037	$	0	$	0		$	4,037	$	4,037	$	0		$	0
Mutual funds		2,363		0		0			2,363		1,961		402			0
Commercial paper		177		0		0			177		77		100			0
Certificates of deposit		1,284		0		0			1,284		1,098		186			0
U.S. government and agency securities		100,128		27		(415	)		99,740		1,052		98,688			0
Foreign government bonds		4,747		3		(29	)		4,721		243		4,478			0
Mortgage- and asset-backed securities		4,361		12		(7	)		4,366		0		4,366			0
Corporate notes and bonds		5,736		64		(26	)		5,774		0		5,774			0
Municipal securities		283		39		0			322		0		322			0
Common and preferred stock		4,864		3,685		(160	)		8,389		0		0			8,389
Other investments		494		0		0			494		0		(3	)		497
Total	$	128,474	$	3,830	$	(637	)	$	131,667	$	8,468	$	114,313		$	8,886

(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		590		0		0			590		0		(3	)		593
Total	$	119,053	$	4,895	$	(302	)	$	123,646	$	6,510	$	106,730		$	10,406

As of December 31, 2016 and June 30, 2016, the recorded bases of common and preferred stock that are restricted for more than one year or are not publicly traded were $815 million 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.

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 December 31, 2016 and June 30, 2016, the collateral received under agreements for loaned securities totaled $1.3 billion and $294 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
December 31, 2016
U.S. government and agency securities	$	86,391	$	(403	)	$	375	$	(12	)	$	86,766	$	(415	)
Foreign government bonds		3,721		(10	)		35		(19	)		3,756		(29	)
Mortgage- and asset-backed securities		887		(6	)		199		(1	)		1,086		(7	)
Corporate notes and bonds		1,100		(14	)		408		(12	)		1,508		(26	)
Common and preferred stock		677		(71	)		407		(89	)		1,084		(160	)
Total	$	92,776	$	(504	)	$	1,424	$	(133	)	$	94,200	$	(637	)

	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
December 31, 2016
Due in one year or less	$	16,027	$	16,026
Due after one year through five years		94,925		94,669
Due after five years through 10 years		4,470		4,402
Due after 10 years		1,294		1,287
Total	$	116,716	$	116,384