10. INVESTMENTS

The following table summarizes the company's equity investments as of October 31, 2016 and 2015 (net book value):



	October 31,
	2016		2015
	(in millions)
Long-Term
Cost method investments	$	104	$	23
Trading securities	31		35
Equity method investments	—		28
Total	$	135	$	86

Cost method investments consist of non-marketable equity securities and a fund and are accounted for at historical cost. Approximately $80 million relates to our variable interest entity investment, see Note 1, "Overview and Summary of Significant Accounting Policies". Trading securities are reported at fair value, with gains or losses resulting from changes in fair value recognized currently in earnings. Equity method investments are reported at the amount of the company’s initial investment and adjusted each period for the company’s share of the investee’s income or loss and dividend paid.

All of our investments, excluding trading securities, are subject to periodic impairment review. The impairment analysis requires significant judgment to identify events or circumstances that would likely have significant adverse effect on the future value of the investment. We consider various factors in determining whether an impairment is other-than-temporary, including the severity and duration of the impairment, forecasted recovery, the financial condition and near-term prospects of the investee, and our ability and intent to hold the investment for a period of time sufficient to allow for any anticipated recovery in market value. During the year ended October 31, 2016, we have identified certain events and circumstances that indicates the decline in value of an equity method investment is other-than-temporary. As a result, we have written down the investment to its fair value of zero, resulting in an impairment charge of approximately $18 million.

Amounts included in other income (expense), net for the appropriate share of loss on equity method investments and other than temporary impairments were as follows:



	Years Ended October 31,
	2016			2015			2014
	(in millions)
Equity method investments - share of losses	$	(10	)	$	(9	)	$	(7	)
Equity method investments - other than temporary impairments	(18		)	—			—
Total	$	(28	)	$	(9	)	$	(7	)

Net unrealized gains on our trading securities portfolio were $1 million in 2016, $2 million in 2015 and $2 million in 2014.