United States Securities and Exchange Commission Washington, D. C. 20549 form 10-K

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
(In millions)		Fair Value			Unrealized Losses					Fair Value			Unrealized Losses					Total Fair Value			Unrealized Losses
June 30, 2009
Mutual funds		$	3		$		(1	)		$	77		$	(24		)		$	80		$	(25	)
U.S. Government and Agency securities			4,033				(5	)			–			–					4,033			(5	)
Foreign government bonds			1,444				(3	)			669			(1		)			2,113			(4	)
Mortgage-backed securities			503				(16	)			–			–					503			(16	)
Corporate notes and bonds			713				(10	)			504			(42		)			1,217			(52	)
Municipal securities			16				(1	)			–			–					16			(1	)
Common and preferred stock			1,154				(135	)			120			(47		)			1,274			(182	)
Total		$	7,866		$		(171	)		$	1,370		$	(114		)		$	9,236		$	(285	)
		Less than 12 Months								12 Months or Greater								Total
(In millions)		Fair Value			Unrealized Losses					Fair Value			Unrealized Losses					Total Fair Value			Unrealized Losses
June 30, 2008
Mutual funds		$	123		$	(7		)		$	12		$		(1	)		$	135		$	(8	)
U.S. Government and Agency securities			342			(4		)			–				–				342			(4	)
Foreign government bonds			2,241			(62		)			–				–				2,241			(62	)
Mortgage-backed securities			1,078			(25		)			–				–				1,078			(25	)
Corporate notes and bonds			807			(26		)			925				(13	)			1,732			(39	)
Municipal securities			176			(3		)			193				(1	)			369			(4	)
Common and preferred stock			598			(106		)			28				(7	)			626			(113	)
Total		$	5,365		$	(233		)		$	1,158		$		(22	)		$	6,523		$	(255	)

At June 30, 2009, unrealized losses of $285 million consisted of: $79 million related to investment grade fixed-income securities, $24 million related to investments in high yield and emerging market fixed-income securities, $110 million related to domestic equity securities, and $72 million related to international equity securities. At June 30, 2008, unrealized losses of $255 million consisted of: $121 million related to investment grade fixed-income securities, $21 million related to investments in high yield and emerging market fixed-income securities, $99 million related to domestic equity securities, and $14 million related to international equity securities. 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 unrealized losses represent other-than-temporary impairments based on our evaluation of available evidence as of June 30, 2009.

At June 30, 2009, the recorded basis and estimated fair value of common and preferred stock and other investments that are restricted for more than one year or are not publicly traded was $204 million. At June 30, 2008, the recorded basis and estimated fair value of these investments was $289 million. The estimate of fair value is based on publicly available market information or other estimates determined by management.