Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

During fiscal years 2010 and 2009, impairment charges of $5 million and $86 million, respectively, were recognized for certain investments measured at fair value on a nonrecurring basis, as the decline in their respective fair values below their cost was determined to be other than temporary in all instances. At June 30, 2010 and 2009, the fair values of the common and preferred stocks that we held that were required to be measured at fair value on a non-recurring basis were $0 and $164 million, respectively.

NOTE 7 — INVENTORIES

The components of inventories were as follows:

The components of property and equipment were as follows: