FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Dec. 31, 2015

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		Gross Fair Value		Netting	(a)		Net Fair Value
December 31, 2015
Assets
Mutual funds	$	1,428	$	0	$	0	$	1,428	$	0		$	1,428
Commercial paper		0		790		0		790		0			790
Certificates of deposit		0		1,062		0		1,062		0			1,062
U.S. government and agency securities		75,122		3,773		0		78,895		0			78,895
Foreign government bonds		68		4,907		0		4,975		0			4,975
Mortgage- and asset-backed securities		0		4,858		0		4,858		0			4,858
Corporate notes and bonds		0		6,728		1		6,729		0			6,729
Municipal securities		0		321		0		321		0			321
Common and preferred stock		7,981		2,216		18		10,215		0			10,215
Derivatives		6		931		0		937		(231	)		706
Total	$	84,605	$	25,586	$	19	$	110,210	$	(231	)	$	109,979
Liabilities
Derivatives and other	$	4	$	267	$	0	$	271	$	(231	)	$	40

(In millions)		Level 1		Level 2		Level 3		Gross Fair Value		Netting	(a)		Net Fair Value
June 30, 2015
Assets
Mutual funds	$	1,100	$	0	$	0	$	1,100	$	0		$	1,100
Commercial paper		0		1		0		1		0			1
Certificates of deposit		0		906		0		906		0			906
U.S. government and agency securities		71,930		955		0		72,885		0			72,885
Foreign government bonds		131		5,299		0		5,430		0			5,430
Mortgage- and asset-backed securities		0		4,917		0		4,917		0			4,917
Corporate notes and bonds		0		7,108		1		7,109		0			7,109
Municipal securities		0		319		0		319		0			319
Common and preferred stock		8,585		2,277		14		10,876		0			10,876
Derivatives		4		979		5		988		(162	)		826
Total	$	81,750	$	22,761	$	20	$	104,531	$	(162	)	$	104,369
Liabilities
Derivatives and other	$	5	$	159	$	54	$	218	$	(161	)	$	57

(a) 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)
December 31, 2015				June 30, 2015
Net fair value of assets measured at fair value on a recurring basis	$	109,979		$	104,369
Cash		3,480			3,679
Common and preferred stock measured at fair value on a nonrecurring basis		727			561
Other investments measured at fair value on a nonrecurring basis		565			589
Less derivative net assets classified as other current assets		(628	)		(648	)
Other		6			4
Recorded basis of investment components	$	114,129		$	108,554