NOTES TO FINANCIAL STATEMENTS

NOTE 4    CASH AND SHORT-TERM INVESTMENTS

In millions
June 30, 2001					Cost Basis			Unrealized Gains			Unrealized Losses				Recorded Basis
Cash and equivalents:
	Cash			$	1,145		$	–		$	–			$	1,145
	Commercial paper				894			–			–				894
	Certificates of deposit				286			–			–				286
	U.S. government and agency securities				400			–			–				400
	Corporate notes and bonds				1,130			–			–				1,130
	Municipal securities				67			–			–				67
		Cash and equivalents			3,922			–			–				3,922
Short-term investments:
	Commercial paper				635			3			–				638
	U.S. government and agency securities				7,355			9			(42	)			7,322
	Corporate notes and bonds				17,256			214			(149	)			17,321
	Municipal securities				1,662			41			–				1,703
	Certificates of deposit				694			–			–				694
		Short-term investments			27,602			267			(191	)			27,678
			Cash and short-term investments	$	31,524		$	267		$	(191	)		$	31,600
In millions
June 30, 2002					Cost Basis			Unrealized Gains			Unrealized Losses				Recorded Basis
Cash and equivalents:
	Cash			$	1,114		$	–		$	–			$	1,114
	Commercial paper				260			–			–				260
	Certificates of deposit				31			–			–				31
	Money market mutual funds				714			–			–				714
	Corporate notes and bonds				560			–			–				560
	Municipal securities				337			–			–				337
		Cash and equivalents			3,016			–			–				3,016
Short-term investments:
	Commercial paper				552			–			–				552
	U.S. government and agency securities				10,726			114			(13	)			10,827
	Corporate notes and bonds				18,822			255			(241	)			18,836
	Municipal securities				4,462			86			–				4,548
	Certificates of deposit				873			–			–				873
		Short-term investments			35,435			455			(254	)			35,636
			Cash and short-term investments	$	38,451		$	455		$	(254	)		$	38,652

      Realized gains and (losses) from cash and short-term investments were $80 million and $(226) million in 2000, $541 million and $(369) million in 2001, and $816 million and $(558) million in 2002.