Creating opportunities through innovation

Realized gains and (losses) from cash and short-term investments (excluding impairments) were $541 million and $(369) million in 2001, $816 million and $(558) million in 2002 and $1.42 billion and $(957) million in 2003.

 

Note 6—Inventories

 

(In millions)
June 30	2002		2003
Finished goods	$  505		$  393
Raw materials and work in process	168		247
Inventories	$  673		$  640

 

Note 7—Property and Equipment

 

(In millions)
June 30	2002		2003
Land	$    197		$    248
Buildings	1,701		1,854
Computer equipment and software	2,621		2,464
Other	1,372		1,512
Property and equipment – at cost	5,891		6,078
Accumulated depreciation	(3,623)		(3,855)
Property and equipment – net	$ 2,268		$ 2,223

 

During 2001, 2002, and 2003, depreciation expense, the majority of which related to computer equipment, was $764 million, $820 million, and $929 million.

 

Note 8—Equity and Other Investments

 

(In millions)	Cost Basis		Unrealized Gains		Unrealized Losses		Recorded Basis
June 30, 2002
Debt securities recorded at market, maturing:
Within one year	$   485		$ 26		$ –		$ 511
Between 2 and 10 years	893		46		(4)		935
Between 10 and 15 years	541		19		(2)		558
Beyond 15 years	3,036		–		–		3,036
Debt securities recorded at market	4,955		91		(6)		5,040
Common stock and warrants	6,580		1,287		(617)		7,250
Preferred stock	1,382		–		–		1,382
Other investments	519		–		–		519
Equity and other investments	$  13,436		$ 1,378		$ (623)		$ 14,191