NOTE 4    INVESTMENT INCOME AND OTHER

The components of investment income and other were as follows:

(In millions)
Year Ended June 30	2006)		2005)		2004)
Dividends and interest	$1,510)		$1,460)		$1,892)
Net gains on investments	161)		856)		1,563)
Net losses on derivatives	(99)		(262)		(268)
Income/(losses) from equity investees and other	218)		13)		(25)
Investment income and other	$1,790)		$2,067)		$3,162)

Net gains on investments include other-than-temporary impairments of $408 million in fiscal year 2006, $152 million in fiscal year 2005, and $82 million in fiscal year 2004. The increase in other-than-temporary impairments in fiscal year 2006 was driven by planned sales of certain investments in an unrealized loss position in order to raise funds for the $20 billion tender offer announced on July 20, 2006. Realized gains and (losses) from sales of available-for-sale securities (excluding other-than-temporary impairments) were $1.11 billion and $(531) million in fiscal year 2006, $1.38 billion and $(376) million in fiscal year 2005, and $2.16 billion and $(518) million in fiscal year 2004.