DERIVATIVES (Tables)

6 Months Ended

Dec. 31, 2016

Fair Values of Derivative Instruments

The following table presents 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:

	December 31, 2016												June 30, 2016
	Assets									Liabilities			Assets									Liabilities
(In millions)	Short-term Investments			Other Current Assets			Equity and Other Investments			Other Current Liabilities			Short-term Investments			Other Current Assets			Equity and Other Investments			Other Current Liabilities
Non-designated Hedge Derivatives
Foreign exchange contracts	$	23		$	229		$	0		$	(238	)	$	33		$	156		$	0		$	(296	)
Equity contracts		20			0			0			(4	)		23			0			0			(16	)
Interest rate contracts		5			0			0			(5	)		10			0			0			(25	)
Credit contracts		6			0			0			(3	)		6			0			0			(5	)
Commodity contracts		1			0			0			0			0			0			0			0
Total	$	55		$	229		$	0		$	(250	)	$	72		$	156		$	0		$	(342	)
Designated Hedge Derivatives
Foreign exchange contracts	$	293		$	543		$	0		$	0		$	1		$	392		$	0		$	(263	)
Equity contracts		0			0			1			(26	)		0			0			18			(25	)
Total	$	293		$	543		$	1		$	(26	)	$	1		$	392		$	18		$	(288	)
Total gross amounts of derivatives	$	348		$	772		$	1		$	(276	)	$	73		$	548		$	18		$	(630	)
Gross derivatives either offset or subject to an enforceable master netting agreement	$	348		$	772		$	1		$	(275	)	$	69		$	548		$	18		$	(630	)
Gross amounts of derivatives offset on the balance sheet		(2	)		(227	)		(25	)		251			(74	)		(302	)		(25	)		398
Net amounts presented on the balance sheet		346			545			(24	)		(24	)		(5	)		246			(7	)		(232	)
Gross amounts of derivatives not offset on the balance sheet		0			0			0			(1	)		0			0			0			0
Cash collateral received		0			0			0			(548	)		0			0			0			(250	)
Net amount	$	346		$	545		$	(24	)	$	(573	)	$	(5	)	$	246		$	(7	)	$	(482	)

Non-designated Hedge Derivatives

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), net. 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), net, 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 and gains (losses) from foreign exchange rate changes on certain balance sheet amounts.

(In millions)	Three Months Ended December 31,						Six Months Ended December 31,
	2016			2015			2016			2015
Foreign exchange contracts	$	26		$	(134	)	$	(5	)	$	(75	)
Equity contracts		(25	)		(30	)		(42	)		4
Interest-rate contracts		(10	)		9			(6	)		8
Credit contracts		2			2			4			(3	)
Commodity contracts		22			(52	)		0			(136	)
Total	$	15		$	(205	)	$	(49	)	$	(202	)

Fair value hedging

Gains (Losses) on Derivative Instruments

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

(In millions)	Three Months Ended December 31,						Six Months Ended December 31,
	2016			2015			2016			2015
Foreign Exchange Contracts
Derivatives	$	685		$	48		$	637		$	(33	)
Hedged items		(674	)		(41	)		(606	)		50
Total amount of ineffectiveness	$	11		$	7		$	31		$	17
Equity Contracts
Derivatives	$	(7	)	$	(59	)	$	(17	)	$	(92	)
Hedged items		7			59			17			92
Total amount of ineffectiveness	$	0		$	0		$	0		$	0
Amount of equity contracts excluded from effectiveness assessment	$	(1	)	$	(15	)	$	(4	)	$	4

Cash flow hedging

Gains (Losses) on Derivative Instruments

We recognized the following gains (losses) on foreign exchange contracts designated as cash-flow hedges:

(In millions)	Three Months Ended December 31,						Six Months Ended December 31,
	2016			2015			2016			2015
Effective Portion
Gains recognized in other comprehensive income (net of tax effects of $3, $15, $4, and $43)	$	449		$	122		$	484		$	283
Gains reclassified from accumulated other comprehensive income into revenue		172			181			247			290
Amount Excluded from Effectiveness Assessment and Ineffective Portion
Losses recognized in other income (expense), net		(84	)		(72	)		(154	)		(154	)