NOTE 4   INVESTMENT INCOME AND OTHER

The components of investment income and other were as follows:

(In millions)
Year Ended June 30	2007)		2006)		2005)
Dividends and interest	$1,319)		$1,510)		$1,460)
Net gains on investments	650)		161)		856)
Net losses on derivatives	(358))		(99))		(262))
Income/(losses) from equity investees and other	(34))		218)		13)
Investment income and other	$1,577)		$1,790)		$2,067)

Net gains on investments include other-than-temporary impairments. These were not material in fiscal year 2007, were $408 million in fiscal year 2006, and were $152 million in fiscal year 2005. The decrease in other-than-temporary impairments in fiscal year 2007 and the increase in fiscal year 2006 were 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 $851 million and $176 million, respectively, in fiscal year 2007, $1.11 billion and $531 million, respectively, in fiscal year 2006, and $1.38 billion and $376 million, respectively, in fiscal year 2005.