Fair Value Measurements (Tables)

3 Months Ended

Sep. 30, 2013

Assets and Liabilities Measured at Fair Value on Recurring Basis

The following tables present the fair value of our financial instruments that are measured at fair value on a recurring basis:

(In millions)		Level 1		Level 2		Level 3	(a)		Gross Fair Value		Netting	(b)		Net Fair Value
September 30, 2013
Assets
Mutual funds	$	700	$	0	$	0		$	700	$	0		$	700
Commercial paper		0		816		0			816		0			816
Certificates of deposit		0		683		0			683		0			683
U.S. government and agency securities		63,306		2,717		0			66,023		0			66,023
Foreign government bonds		9		1,067		0			1,076		0			1,076
Mortgage-backed securities		0		1,178		0			1,178		0			1,178
Corporate notes and bonds		0		5,079		2,048			7,127		0			7,127
Municipal securities		0		371		0			371		0			371
Common and preferred stock		8,930		1,381		12			10,323		0			10,323
Derivatives		6		368		29			403		(97	)		306
Total	$	72,951	$	13,660	$	2,089		$	88,700	$	(97	)	$	88,603
Liabilities
Derivatives and other	$	8	$	107	$	0		$	115	$	(97	)	$	18

(In millions)		Level 1		Level 2		Level 3		Gross Fair Value		Netting	(b)		Net Fair Value
June 30, 2013
Assets
Mutual funds	$	868	$	0	$	0	$	868	$	0		$	868
Commercial paper		0		603		0		603		0			603
Certificates of deposit		0		994		0		994		0			994
U.S. government and agency securities		62,237		2,664		0		64,901		0			64,901
Foreign government bonds		9		851		0		860		0			860
Mortgage-backed securities		0		1,311		0		1,311		0			1,311
Corporate notes and bonds		0		4,915		19		4,934		0			4,934
Municipal securities		0		385		0		385		0			385
Common and preferred stock		8,470		717		5		9,192		0			9,192
Derivatives		12		489		0		501		(81	)		420
Total	$	71,596	$	12,929	$	24	$	84,549	$	(81	)	$	84,468
Liabilities
Derivatives and other	$	14	$	121	$	0	$	135	$	(80	)	$	55

(a) Level 3 assets at September 30, 2013 primarily comprised €1.5 billion principal amount of Nokia convertible notes. The valuation of these notes considers the probability of the acquisition transaction closing as well as an analysis of market comparable transactions and management assumptions. The probability-weighted scenarios are considered significant unobservable inputs used in the fair value measurement of both the convertible notes and the embedded derivative. Significant changes in these probabilities in isolation would significantly alter the fair value measurement for both the notes and the embedded derivative.

(b) These amounts represent the impact of netting derivative assets and derivative liabilities when a legally enforceable master netting agreement exists and fair value adjustments related to our own credit risk and counterparty credit risk.

Reconciliation of Total Assets Measured at Fair Value on Recurring Basis to Balance Sheet Presentation

The following table reconciles the total Net Fair Value of assets above to the balance sheet presentation of these same assets in Note 4 – Investments.

(In millions)
September 30, 2013				June 30, 2013
Net fair value of assets measured at fair value on a recurring basis	$	88,603		$	84,468
Cash		2,489			1,967
Common and preferred stock measured at fair value on a nonrecurring basis		416			395
Other investments measured at fair value on a nonrecurring basis		1,256			1,256
Less derivative assets classified as other current assets		(93	)		(213	)
Other		(4	)		(7	)
Recorded basis of investment components	$	92,667		$	87,866