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


December 31, 2017

Cash	$	3,877	$	0	$	0		$	3,877	$	3,877	$	0	$	0
Mutual funds		1,080		0		0			1,080		1,080		0		0
Commercial paper		1,533		0		0			1,533		904		629		0
Certificates of deposit		1,832		0		0			1,832		1,642		190		0
U.S. government and agency securities		119,085		34		(746	)		118,373		4,465		113,908		0
Foreign government bonds		6,605		2		(12	)		6,595		891		5,704		0
Mortgage- and asset-backed securities		3,952		7		(7	)		3,952		0		3,952		0
Corporate notes and bonds		5,172		48		(14	)		5,206		0		5,206		0
Municipal securities		284		47		0			331		0		331		0
Common and preferred stock		1,697		1,707		(6	)		3,398		0		0		3,398
Other investments		564		0		0			564		0		1		563


Total	$	145,681	$	1,845	$	(785	)	$	146,741	$	12,859	$	129,921	$	3,961


(In millions)		Cost Basis	Unrealized Gains		Unrealized Losses			Recorded Basis		Cash and Cash Equivalents		Short-term Investments		Equity and Other Investments


June 30, 2017

Cash	$	3,624	$	0	$	0		$	3,624	$	3,624	$	0	$	0
Mutual funds		1,478		0		0			1,478		1,478		0		0
Commercial paper		319		0		0			319		69		250		0
Certificates of deposit		1,358		0		0			1,358		972		386		0
U.S. government and agency securities		112,119		85		(360	)		111,844		16		111,828		0
Foreign government bonds		5,276		2		(13	)		5,265		1,504		3,761		0
Mortgage- and asset-backed securities		3,921		14		(4	)		3,931		0		3,931		0
Corporate notes and bonds		4,786		61		(12	)		4,835		0		4,835		0
Municipal securities		284		43		0			327		0		327		0
Common and preferred stock		2,472		3,062		(34	)		5,500		0		0		5,500
Other investments		523		0		0			523		0		0		523


Total	$	136,160	$	3,267	$	(423	)	$	139,004	$	7,663	$	125,318	$	6,023

As of December 31, 2017 and June 30, 2017, the recorded bases of common and preferred stock that are restricted for more than one year or are not publicly traded were $1.0 billion and $1.1 billion, 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. Cash received is recorded as an asset with a corresponding liability. As of December 31, 2017 and June 30, 2017, collateral received under agreements for loaned securities was $4.3 billion and $3.7 billion, respectively, and was 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, 2017

U.S. government and agency securities	$	101,552	$	(672	)	$	2,855	$	(74	)	$	104,407	$	(746	)
Foreign government bonds		2,537		(1	)		34		(11	)		2,571		(12	)
Mortgage- and asset-backed securities		1,317		(3	)		338		(4	)		1,655		(7	)
Corporate notes and bonds		1,118		(6	)		439		(8	)		1,557		(14	)
Common and preferred stock		17		0			36		(6	)		53		(6	)


Total	$	106,541	$	(682	)	$	3,702	$	(103	)	$	110,243	$	(785	)

	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, 2017

U.S. government and agency securities	$	87,558	$	(348	)	$	371	$	(12	)	$	87,929	$	(360	)
Foreign government bonds		4,006		(2	)		23		(11	)		4,029		(13	)
Mortgage- and asset-backed securities		1,068		(3	)		198		(1	)		1,266		(4	)
Corporate notes and bonds		669		(8	)		177		(4	)		846		(12	)
Common and preferred stock		69		(6	)		148		(28	)		217		(34	)


Total	$	93,370	$	(367	)	$	917	$	(56	)	$	94,287	$	(423	)

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, 2017

Due in one year or less	$	19,448	$	19,447
Due after one year through five years		103,950		103,341
Due after five years through 10 years		14,143		14,083
Due after 10 years		922		951


Total	$	138,463	$	137,822