FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Dec. 31, 2016

FAIR VALUE MEASUREMENTS

Financial assets and liabilities measured at fair value on a recurring basis

The following table presents the Company’s hierarchy for its financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2016:

(In millions)	Level 1		Level 2		Level 3		Total
Assets:
Foreign currency forward contracts	$	—	$	56	$	—	$	56
Interest rate-related derivatives	—		11		—		11
Interest rate swap contracts	—		1		—		1
Available-for-sale securities:
U.S. government and agency securities	—		430		—		430
Foreign government and agency securities	—		87		—		87
Corporate notes and bonds	—		508		—		508
Time deposits	—		280		—		280
Other securities	—		28		—		28
Total	$	—	$	1,401	$	—	$	1,401
Liabilities:
Foreign currency forward contracts	$	—	$	11	$	—	$	11
Interest rate swap contracts	—		5		—		5
Contingent consideration	—		—		200		200
Total	$	—	$	16	$	200	$	216

The following table presents the Company’s hierarchy for its financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2016:

(In millions)	Level 1		Level 2		Level 3		Total
Assets:
Foreign currency forward contracts	$	—	$	48	$	—	$	48
Interest rate swap contracts	—		18		—		18
Available-for-sale securities:
U.S. government and agency securities	—		563		—		563
Foreign government and agency securities	—		61		—		61
Corporate notes and bonds	—		457		—		457
Time deposits	—		390		—		390
Other securities	—		33		—		33
Total	$	—	$	1,570	$	—	$	1,570
Liabilities:
Foreign currency forward contracts	$	—	$	26	$	—	$	26
Contingent consideration	—		—		196		196
Total	$	—	$	26	$	196	$	222

Estimated fair values of financial instruments

	December 31						June 30
	2016						2016
(In millions)	Carrying Amount			Fair Value			Carrying Amount		Fair Value
Nonderivatives
Cash and cash equivalents	$	1,262		$	1,262		$	914	$	914
Available-for-sale securities	1,333			1,333			1,504		1,504
Current and long-term debt	4,033			4,120			2,242		2,482
Additional purchase price payable	37			37			37		37
Contingent consideration	200			200			196		196
Derivatives
Foreign currency forward contracts - asset (liability), net	45			45			22		22
Interest rate-related derivatives - asset	11			11			—		—
Interest rate swap contracts - asset (liability), net	(4		)	(4		)	18		18

Changes in the fair value of the contingent consideration obligations

(In millions)	Fair Value
Contingent consideration at June 30, 2016	$	196
Change in fair value	4
Contingent consideration at December 31, 2016	$	200