The following tables present the fair values of derivative instruments designated as hedging instruments (“designated hedge derivatives”) and not designated as hedging instruments (“non-designated hedge derivatives”). The fair values exclude the impact of netting derivative assets and liabilities when a legally enforceable master netting agreement exists and fair value adjustments related to our own credit risk and counterparty credit risk:


		September 30, 2013										June 30, 2013

		Assets						Liabilities				Assets						Liabilities

(In millions)	Short-term Investments				Other Current Assets			Other Current Liabilities			Short-term Investments				Other Current Assets			Other Current Liabilities


Non-designated Hedge Derivatives
Foreign exchange contracts		$	27		$	68		$	(68	)		$	41		$	87		$	(63	)
Equity contracts			202			0			(9	)			157			0			(9	)
Interest rate contracts			15			0			(11	)			18			0			(45	)
Credit contracts			20			0			(17	)			19			0			(17	)
Commodity contracts			5			0			(3	)			3			0			(1	)

Total		$	269		$	68		$	(108	)		$	238		$	87		$	(135	)


Designated Hedge Derivatives
Foreign exchange contracts		$	0		$	66		$	(7	)		$	9		$	167		$	0

Total		$	0		$	66		$	(7	)		$	9		$	167		$	0

Total gross amounts of derivatives		$	269		$	134		$	(115	)		$	247		$	254		$	(135	)

Gross derivatives either offset or subject to an enforceable master netting agreement		$	126		$	134		$	(115	)		$	105		$	254		$	(97	)
Gross amount offset in the balance sheet			(73	)		(24	)		97				(72	)		(9	)		80

Net amounts presented in the balance sheet		$	53		$	110		$	(18	)		$	33		$	245		$	(17	)
Gross amounts not offset in the balance sheet			0			0			0				0			0			0

Net amount		$	53		$	110		$	(18	)		$	33		$	245		$	(17	)

Gains (Losses) on Derivative Instruments

We recognized in other income (expense) the following gains (losses) on contracts designated as fair-value hedges and their related hedged items:


(In millions)


Three Months Ended September 30,	2013			2012

Foreign Exchange Contracts
Derivatives	$	(14	)	$	(12	)
Hedged items		13			14

Total	$	(1	)	$	2

Gains (Losses) on Derivative Instruments

We recognized the following gains (losses) on foreign exchange contracts designated as cash-flow hedges (our only cash flow hedges during the periods presented):



(In millions)


Three Months Ended September 30,	2013			2012

Effective Portion
Losses recognized in OCI (net of tax effect of $(2) and $(12))	$	(8	)	$	(23	)
Gains reclassified from AOCI into revenue	$	19		$	35
Amount Excluded from Effectiveness Assessment and Ineffective Portion
Losses recognized in other income (expense)	$	(80	)	$	(71	)

Gains (Losses) on Derivative Instruments

Gains (losses) from changes in fair values of derivatives that are not designated as hedges are primarily recognized in other income (expense). These amounts are shown in the table below, with the exception of gains (losses) on derivatives presented in income statement line items other than other income (expense), which were immaterial for the periods presented. Other than those derivatives entered into for investment purposes, such as commodity contracts, the gains (losses) below are generally economically offset by unrealized gains (losses) in the underlying available-for-sale securities.


(In millions)


Three Months Ended September 30,	2013			2012

Foreign exchange contracts	$	14		$	(13	)
Equity contracts		(5	)		2
Interest-rate contracts		13			18
Credit contracts		(1	)		(7	)
Commodity contracts		11			66

Total	$	32		$	66