FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Jun. 30, 2018

FAIR VALUE MEASUREMENTS

Schedule of 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 June 30, 2018:

(In millions)	Level 1		Level 2		Level 3		Total
Assets:
Foreign currency forward contracts	$	—	$	33	$	—	$	33
Available-for-sale securities:
U.S. government and agency securities	—		422		—		422
Foreign government and agency securities	—		112		—		112
Corporate notes and bonds	—		472		—		472
Time deposits	—		200		—		200
Other securities	—		16		—		16
Total	$	—	$	1,255	$	—	$	1,255
Liabilities:
Foreign currency forward contracts	$	—	$	13	$	—	$	13
Interest rate swap contracts	—		26		—		26
Contingent consideration	—		—		96		96
Total	$	—	$	39	$	96	$	135

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, 2017:

(In millions)	Level 1		Level 2		Level 3		Total
Assets:
Foreign currency forward contracts	$	—	$	10	$	—	$	10
Interest rate swap contracts		—		3		—		3
Available-for-sale securities:
U.S. government and agency securities		—		464		—		464
Foreign government and agency securities		—		102		—		102
Corporate notes and bonds		—		505		—		505
Time deposits		—		410		—		410
Other securities		—		17		—		17
Total	$	—	$	1,511	$	—	$	1,511
Liabilities:
Foreign currency forward contracts	$	—	$	46	$	—	$	46
Interest rate swap contracts		—		3		—		3
Contingent consideration		—		—		139		139
Total	$	—	$	49	$	139	$	188

Schedule of estimated fair values of financial instruments

	June 30
	2018						2017
(In millions)	Carrying Amount			Fair Value			Carrying Amount			Fair Value
Nonderivatives
Cash and cash equivalents	$	2,181		$	2,181		$	1,136		$	1,136
Available-for-sale securities	1,222			1,222			1,498			1,498
Current and long-term debt	3,544			3,667			3,572			3,759
Additional purchase price payable	3			3			38			38
Contingent consideration	96			96			139			139
Derivatives
Foreign currency forward contracts – asset (liability), net	20			20			(36		)	(36		)
Interest rate swap contracts – asset (liability), net	(26		)	(26		)	—			—

Impairment charges measured at fair value on a nonrecurring basis, classified as Level 3

(In millions)	Impairment charges		Date of Fair Value Measurement	Fair Value
Goodwill	$	28	April 1, 2017	$	6
Other intangible assets, net (trademarks)	2		April 1, 2017	32
Other intangible assets, net (customer lists and other)	1		April 1, 2017	—
Total	$	31		$	38

Schedule of fair value assumptions of contingent consideration

The Monte Carlo Method has various inputs into the valuation model, in addition to the risk-adjusted projected future operating results of the acquired entities, which include the following ranges at June 30, 2018:

Risk-adjusted discount rate	2.7% to 3.2%
Revenue volatility	4.7% to 5.2%
Asset volatility	20.5% to 22.6%
Revenue and earnings before income tax, depreciation and amortization correlation coefficient factor	80.0%
Revenue discount rates	4.8% to 5.0%
Earnings before income tax, depreciation and amortization discount rates	12.8% to 13.6%

Changes in the fair value of the contingent consideration obligations

(In millions)	Fair Value
Contingent consideration at June 30, 2017	$	139
Changes in fair value	(43		)
Contingent consideration at June 30, 2018	$	96