XML 39 R28.htm IDEA: XBRL DOCUMENT v3.6.0.2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables)
 6 Months Ended
Dec. 31, 2016
DERIVATIVE FINANCIAL INSTRUMENTS  
Schedule of fair values of the derivative financial instruments included in the consolidated balance sheets

 

 

 

Asset Derivatives

 

Liability Derivatives

 

 

 

 

 

Fair Value (1)

 

 

 

Fair Value (1)

 

(In millions)

 

Balance Sheet
Location

 

December 31
2016

 

June 30
2016

 

Balance Sheet
Location

 

December 31
2016

 

June 30
2016

 

Derivatives Designated as Hedging Instruments 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency forward contracts

 

Prepaid expenses and other current assets

 

$
47 

 

$
37 

 

Other accrued liabilities

 

$
7 

 

$
18 

 

Interest rate-related derivatives

 

Prepaid expenses and other current assets

 
11 

 

—

 

Not applicable

 

 

 

 

 

Interest rate swap contracts

 

Prepaid expenses and other current assets

 
1 

 
18 

 

Other accrued liabilities

 
5 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Derivatives Designated as Hedging Instruments

 

 

 
59 

 
55 

 

 

 
12 

 
18 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives Not Designated as Hedging Instruments

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency forward contracts

 

Prepaid expenses and other current assets

 
9 

 
11 

 

Other accrued liabilities

 
4 

 
8 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Derivatives

 

 

 

$
68 

 

$
66 

 

 

 

$
16 

 

$
26 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

See Note 8 — Fair Value Measurements for further information about how the fair value of derivative assets and liabilities are determined.
Schedule of gains and losses related to derivative financial instruments designated as hedging instruments

 

 

 

Amount of Gain or (Loss)
Recognized in OCI on
Derivatives
(Effective Portion)

 

Location of Gain or
(Loss) Reclassified

 

Amount of Gain or (Loss)
Reclassified from AOCI
into Earnings
(Effective Portion) (1)

 

 

 

Three Months Ended
December 31

 

from AOCI into

Earnings

 

Three Months Ended
December 31

 

(In millions)

 

2016

 

2015

 

(Effective Portion)

 

2016

 

2015

 

Derivatives in Cash Flow Hedging Relationships

 

 

 

 

 

 

 

 

 

 

 

Foreign currency forward contracts

 

$
45 

 

$
11 

 

Cost of sales

 

$
4 

 

$
4 

 

 

 

 

 

 

 

Selling, general and administrative

 
12 

 
14 

 

Interest rate-related derivatives

 
11 

 

—

 

Not applicable

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Derivatives

 

$
56 

 

$
11 

 

 

 

$
16 

 

$
18 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

The amount of gain (loss) recognized in earnings related to the amount excluded from effectiveness testing was de minimis and $1 million for the three months ended December 31, 2016 and 2015, respectively.  The amount of gain recognized in earnings related to the ineffective portion of the hedging relationships was de minimis for the three months ended December 31, 2016.  There was no gain (loss) recognized in earnings related to the ineffective portion of the hedging relationships for the three months ended December 31, 2015.

 

 

 

Amount of Gain or (Loss)
Recognized in OCI on
Derivatives
(Effective Portion)

 

Location of Gain or
(Loss) Reclassified

 

Amount of Gain or (Loss)
Reclassified from AOCI
into Earnings
(Effective Portion) (1)

 

 

 

Six Months Ended
December 31

 

from AOCI into
Earnings

 

Six Months Ended
December 31

 

(In millions)

 

2016

 

2015

 

(Effective Portion)

 

2016

 

2015

 

Derivatives in Cash Flow Hedging Relationships

 

 

 

 

 

 

 

 

 

 

 

Foreign currency forward contracts

 

$
48 

 

$
36 

 

Cost of sales

 

$
6 

 

$
7 

 

 

 

 

 

 

 

Selling, general and administrative

 
19 

 
24 

 

Interest rate-related derivatives

 
11 

 

—

 

Not applicable

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Derivatives

 

$
59 

 

$
36 

 

 

 

$
25 

 

$
31 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

The amount of gain (loss) recognized in earnings related to the amount excluded from effectiveness testing was $(1) million and $2 million for the six months ended December 31, 2016 and 2015, respectively.  The amount of gain recognized in earnings related to the ineffective portion of the hedging relationships was de minimis for the six months ended December 31, 2016 and 2015.

 

 

 

 

 

Amount of Gain or (Loss)
Recognized in Earnings on Derivatives (1)

 

 

 

Location of Gain or (Loss)
Recognized in Earnings on

 

Three Months Ended
December 31

 

Six Months Ended
December 31

 

(In millions)

 

Derivatives

 

2016

 

2015

 

2016

 

2015

 

Derivatives in Fair Value Hedging Relationships

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swap contracts

 

Interest expense

 

$
(17

)

$
(2

)

$
(22

)

$
6

 

 

 

(1)

Changes in the fair value of the interest rate swap agreements are exactly offset by the change in the fair value of the underlying long-term debt.
Schedule of gains and losses related to derivative financial instruments not designated as hedging instruments

 

 

 

 

 

Amount of Gain or (Loss)
Recognized in Earnings on Derivatives

 

 

 

Location of Gain or (Loss)
Recognized in Earnings on

 

Three Months Ended
December 31

 

Six Months Ended
December 31

 

(In millions)

 

Derivatives

 

2016

 

2015

 

2016

 

2015

 

Derivatives Not Designated as Hedging Instruments

 

 

 

 

 

 

 

 

 

 

 

Foreign currency forward contracts

 

Selling, general and administrative

 

$
4

 

$
(6

)

$
1

 

$
1