Investments

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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
June 30, 2011                          
Cash $    1,648   $           0   $           0   $    1,648   $    1,648   $           0   $           0
Mutual funds       1,752               0               0         1,752         1,752               0               0
Commercial paper          639               0               0            639            414            225               0
Certificates of deposit          598               0               0            598            372            226               0
U.S. government
      and agency securities		     33,607            162              (7 )       33,762         2,049       31,713               0
Foreign government bonds          658              11              (2 )            667               0            667               0
Mortgage-backed securities       2,307            121              (4 )         2,424               0         2,424               0
Corporate notes and bonds     10,575            260             (11 )       10,824         3,375         7,449               0
Municipal securities          441              15              (2 )            454               0            454               0
Common and preferred stock       7,925         2,483           (193 )       10,215               0               0       10,215
Other investments          654               0               0            654               0               4            650
Total $   60,804   $    3,052   $      (219 )   $   63,637   $    9,610   $   43,162   $   10,865
                           
(In millions) Cost Basis   Unrealized
Gains		   Unrealized
Losses		   Recorded
Basis		   Cash
and Cash
Equivalents		     Short-term
Investments  		  Equity
and Other
Investments
June 30, 2010                          
Cash $    1,661   $           0   $           0   $    1,661   $    1,661   $           0   $           0
Mutual funds       1,120               0               0         1,120         1,120               0               0
Commercial paper          188               0               0            188              13            175               0
Certificates of deposit          348               0               0            348              68            280               0
U.S. government
      and agency securities		     21,036            167              (1 )       21,202         1,822       19,380               0
Foreign government bonds          518              13               0            531               0            531               0
Mortgage-backed securities       3,137            135              (7 )         3,265               0         3,265               0
Corporate notes and bonds       7,450            289             (18 )         7,721            701         7,020               0
Municipal securities          726              22              (1 )            747            120            627               0
Common and preferred stock       6,640         1,030           (418 )         7,252               0               0         7,252
Other investments          507               0               0            507               0               5            502
Total $   43,331   $    1,656   $      (445 )   $   44,542   $    5,505   $   31,283   $    7,754

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
Fair Value		   Total
Unrealized
Losses
(In millions) Fair Value   Unrealized
Losses		   Fair Value   Unrealized
Losses		  
June 30, 2011                      
U.S. government and agency securities $       484     $          (7 )   $           0     $           0   $       484     $          (7 )
Foreign government bonds          365              (2 )               0               0            365              (2 )
Mortgage-backed securities            63              (3 )              14              (1 )              77              (4 )
Corporate notes and bonds          750             (10 )              25              (1 )            775             (11 )
Municipal securities            79              (2 )               0               0              79              (2 )
Common and preferred stock       1,377           (146 )            206             (47 )         1,583           (193 )
Total $    3,118   $      (170 )   $       245   $        (49 )   $    3,363   $      (219 )
  Less than 12 Months   12 Months or Greater   Total
Fair Value		   Total
Unrealized
Losses
(In millions) Fair Value   Unrealized
Losses		   Fair Value   Unrealized
Losses		  
June 30, 2010                      
U.S. government and agency securities $       216   $          (1 )   $           0   $           0   $       216   $          (1)
Mortgage-backed securities          105              (6 )              18              (1 )            123              (7 )
Corporate notes and bonds       1,124             (13 )              89              (5 )         1,213             (18 )
Municipal securities            66              (1 )               0               0              66              (1 )
Common and preferred stock       2,102           (339 )            190             (79 )         2,292           (418 )
Total $    3,613   $      (360 )   $       297   $        (85 )   $    3,910   $      (445 )

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 June 30, 2011.

At June 30, 2011 and 2010, the recorded bases and estimated fair values of common and preferred stock and other investments that are restricted for more than one year or are not publicly traded were $334 million and $216 million, respectively.

Debt Investment Maturities

(In millions) Cost Basis   Estimated
Fair Value
June 30, 2011      
Due in one year or less $      23,982     $      24,053  
Due after one year through five years         19,516           19,733
Due after five years through 10 years           2,516             2,637
Due after 10 years           2,811             2,945
Total $      48,825   $      49,368