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
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions) |
|
Cost Basis |
|
|
Unrealized
Gains
|
|
|
Unrealized
Losses
|
|
|
Recorded
Basis
|
|
|
Cash
and
Cash
Equivalents
|
|
|
Short-term
Investments
|
|
|
Equity
and
Other
Investments
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
|
|
$ |
3,679 |
|
|
$ |
0 |
|
|
$ |
0 |
|
|
$ |
3,679 |
|
|
$ |
3,679 |
|
|
$ |
0 |
|
|
$ |
0 |
|
Mutual funds
|
|
|
1,100 |
|
|
|
0 |
|
|
|
0 |
|
|
|
1,100 |
|
|
|
1,100 |
|
|
|
0 |
|
|
|
0 |
|
Commercial paper
|
|
|
1 |
|
|
|
0 |
|
|
|
0 |
|
|
|
1 |
|
|
|
1 |
|
|
|
0 |
|
|
|
0 |
|
Certificates of deposit
|
|
|
906 |
|
|
|
0 |
|
|
|
0 |
|
|
|
906 |
|
|
|
776 |
|
|
|
130 |
|
|
|
0 |
|
U.S. government and
agency securities
|
|
|
72,843 |
|
|
|
76 |
|
|
|
(30 |
) |
|
|
72,889 |
|
|
|
39 |
|
|
|
72,850 |
|
|
|
0 |
|
Foreign government bonds
|
|
|
5,477 |
|
|
|
3 |
|
|
|
(24 |
) |
|
|
5,456 |
|
|
|
0 |
|
|
|
5,456 |
|
|
|
0 |
|
Mortgage- and asset-backed
securities
|
|
|
4,899 |
|
|
|
23 |
|
|
|
(6 |
) |
|
|
4,916 |
|
|
|
0 |
|
|
|
4,916 |
|
|
|
0 |
|
Corporate notes and bonds
|
|
|
7,192 |
|
|
|
97 |
|
|
|
(37 |
) |
|
|
7,252 |
|
|
|
0 |
|
|
|
7,252 |
|
|
|
0 |
|
Municipal securities
|
|
|
285 |
|
|
|
35 |
|
|
|
(1 |
) |
|
|
319 |
|
|
|
0 |
|
|
|
319 |
|
|
|
0 |
|
Common and preferred stock
|
|
|
6,668 |
|
|
|
4,986 |
|
|
|
(215 |
) |
|
|
11,439 |
|
|
|
0 |
|
|
|
0 |
|
|
|
11,439 |
|
Other investments
|
|
|
597 |
|
|
|
0 |
|
|
|
0 |
|
|
|
597 |
|
|
|
0 |
|
|
|
8 |
|
|
|
589 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$ |
103,647 |
|
|
$ |
5,220 |
|
|
$ |
(313 |
) |
|
$ |
108,554 |
|
|
$ |
5,595 |
|
|
$ |
90,931 |
|
|
$ |
12,028 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of June 30, 2016
and 2015, the recorded bases of common and preferred stock that are
restricted for more than one year or are not publicly traded were
$767 million and $561 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.
As of June 30, 2016
and 2015, the collateral received under agreements for loaned
securities totaled $294 million and $92 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
|
|
|
|
|
|
|
|
|
|
|
|
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 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. government and agency
securities
|
|
$ |
6,636 |
|
|
$ |
(9 |
) |
|
$ |
421 |
|
|
$ |
(21 |
) |
|
$ |
7,057 |
|
|
$ |
(30 |
) |
Foreign government bonds
|
|
|
4,611 |
|
|
|
(12 |
) |
|
|
18 |
|
|
|
(12 |
) |
|
|
4,629 |
|
|
|
(24 |
) |
Mortgage- and asset-backed
securities
|
|
|
3,171 |
|
|
|
(5 |
) |
|
|
28 |
|
|
|
(1 |
) |
|
|
3,199 |
|
|
|
(6 |
) |
Corporate notes and bonds
|
|
|
2,946 |
|
|
|
(29 |
) |
|
|
104 |
|
|
|
(8 |
) |
|
|
3,050 |
|
|
|
(37 |
) |
Municipal securities
|
|
|
36 |
|
|
|
(1 |
) |
|
|
0 |
|
|
|
0 |
|
|
|
36 |
|
|
|
(1 |
) |
Common and preferred stock
|
|
|
1,389 |
|
|
|
(180 |
) |
|
|
148 |
|
|
|
(35 |
) |
|
|
1,537 |
|
|
|
(215 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$ |
18,789 |
|
|
$ |
(236 |
) |
|
$ |
719 |
|
|
$ |
(77 |
) |
|
$ |
19,508 |
|
|
$ |
(313 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
June 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
Due in one year or less
|
|
$ |
54,503 |
|
|
$ |
54,544 |
|
Due after one year through five
years
|
|
|
50,683 |
|
|
|
50,896 |
|
Due after five years through 10
years
|
|
|
1,914 |
|
|
|
1,954 |
|
Due after 10 years
|
|
|
1,253 |
|
|
|
1,336 |
|
|
|
|
|
|
|
Total
|
|
$ |
108,353 |
|
|
$ |
108,730 |
|
|
|
|
|
|
|
|
|
|
|