DERIVATIVES (Tables)

3 Months Ended

Sep. 30, 2017

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:

	Assets												Liabilities
(In millions)	Short-term Investments			Other Current Assets			Equity and Other Investments			Other Long-term Assets			Other Current Liabilities			Other Long-term Liabilities
September 30, 2017
Non-designated Hedge Derivatives
Foreign exchange contracts	$	10		$	93		$	0		$	14		$	(83	)	$	(7	)
Equity contracts		5			0			0			0			(16	)		0
Interest rate contracts		4			0			0			0			(8	)		0
Credit contracts		4			0			0			0			(1	)		0
Total	$	23		$	93		$	0		$	14		$	(108	)	$	(7	)
Designated Hedge Derivatives
Foreign exchange contracts	$	81		$	89		$	0		$	6		$	(3	)	$	0
Equity contracts		0			0			23			0			(337	)		0
Total	$	81		$	89		$	23		$	6		$	(340	)	$	0
Total gross amounts of derivatives	$	104		$	182		$	23		$	20		$	(448	)	$	(7	)
Gross derivatives either offset or subject to an enforceable master netting agreement	$	104		$	182		$	23		$	20		$	(444	)	$	(7	)
Gross amounts of derivatives offset on the balance sheet		(18	)		(92	)		(23	)		(7	)		133			7
Net amounts presented on the balance sheet		86			90			0			13			(311	)		0
Gross amounts of derivatives not offset on the balance sheet		0			0			0			0			0			0
Cash collateral received		0			0			0			0			(134	)		0
Net amount	$	86		$	90		$	0		$	13		$	(445	)	$	0

	Assets																Liabilities
(In millions)	Short-term Investments			Other Current Assets				Equity and Other Investments				Other Long-term Assets				Other Current Liabilities				Other Long-term Liabilities
June 30, 2017
Non-designated Hedge Derivatives
Foreign exchange contracts	$	9			$	203			$	0			$	6			$	(134	)		$	(8	)
Equity contracts		3				0				0				0				(6	)			0
Interest rate contracts		3				0				0				0				(7	)			0
Credit contracts		5				0				0				0				(1	)			0
Total	$	20			$	203			$	0			$	6			$	(148	)		$	(8	)
Designated Hedge Derivatives
Foreign exchange contracts	$	80			$	133			$	0			$	0			$	(3	)		$	0
Equity contracts		0				0				67				0				(186	)			0
Total	$	80			$	133			$	67			$	0			$	(189	)		$	0
Total gross amounts of derivatives	$	100			$	336			$	67			$	6			$	(337	)		$	(8	)
Gross derivatives either offset or subject to an enforceable master netting agreement	$	100			$	336			$	67			$	6			$	(334	)		$	(8	)
Gross amounts of derivatives offset on the balance sheet		(20	)			(132	)			(67	)			(8	)			221				7
Net amounts presented on the balance sheet		80				204				0				(2	)			(113	)			(1	)
Gross amounts of derivatives not offset on the balance sheet		0				0				0				0				0				0
Cash collateral received		0				0				0				0				(228	)			0
Net amount	$	80			$	204			$	0			$	(2	)		$	(341	)		$	(1	)

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, 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 September 30,	2017			2016
Foreign exchange contracts	$	(69	)	$	(31	)
Equity contracts		(29	)		(17	)
Interest-rate contracts		11			4
Credit contracts		0			2
Other contracts		0			(22	)
Total	$	(87	)	$	(64	)

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 September 30,	2017			2016
Foreign Exchange Contracts
Derivatives	$	22		$	(48	)
Hedged items		(2	)		68
Total amount of ineffectiveness	$	20		$	20
Equity Contracts
Derivatives	$	(236	)	$	(10	)
Hedged items		236			10
Total amount of ineffectiveness	$	0		$	0
Amount of equity contracts excluded from effectiveness assessment	$	40		$	(3	)

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 September 30,	2017			2016
Effective Portion
Gains recognized in other comprehensive income (net of tax of $0 and $1)	$	5		$	35
Gains reclassified from accumulated other comprehensive income into revenue		111			75
Amount Excluded from Effectiveness Assessment and Ineffective Portion
Losses recognized in other income (expense), net		(91	)		(70	)