FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Sep. 30, 2017

Financial 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
September 30, 2017
Assets
Mutual funds	$	1,040	$	0	$	0	$	1,040	$	0		$	1,040
Commercial paper		0		833		0		833		0			833
Certificates of deposit		0		1,430		0		1,430		0			1,430
U.S. government and agency securities		114,965		1,979		0		116,944		0			116,944
Foreign government bonds		16		5,042		0		5,058		0			5,058
Mortgage- and asset-backed securities		0		3,781		0		3,781		0			3,781
Corporate notes and bonds		0		4,915		1		4,916		0			4,916
Municipal securities		0		330		0		330		0			330
Common and preferred stock		2,429		1,346		18		3,793		0			3,793
Derivatives		2		327		0		329		(140	)		189
Total	$	118,452	$	19,983	$	19	$	138,454	$	(140	)	$	138,314
Liabilities
Derivatives and other	$	16	$	439	$	38	$	493	$	(140	)	$	353

(In millions)		Level 1		Level 2		Level 3		Gross Fair Value		Netting	(a)		Net Fair Value
June 30, 2017
Assets
Mutual funds	$	1,478	$	0	$	0	$	1,478	$	0		$	1,478
Commercial paper		0		319		0		319		0			319
Certificates of deposit		0		1,358		0		1,358		0			1,358
U.S. government and agency securities		109,228		2,616		0		111,844		0			111,844
Foreign government bonds		0		5,187		0		5,187		0			5,187
Mortgage- and asset-backed securities		0		3,934		0		3,934		0			3,934
Corporate notes and bonds		0		4,829		1		4,830		0			4,830
Municipal securities		0		327		0		327		0			327
Common and preferred stock		2,414		1,994		18		4,426		0			4,426
Derivatives		1		508		0		509		(227	)		282
Total	$	113,121	$	21,072	$	19	$	134,212	$	(227	)	$	133,985
Liabilities
Derivatives and other	$	0	$	345	$	39	$	384	$	(228	)	$	156

(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)
September 30, 2017				June 30, 2017
Net fair value of assets measured at fair value on a recurring basis	$	138,314		$	133,985
Cash		4,052			3,624
Common and preferred stock measured at fair value on a nonrecurring basis		1,020			1,073
Other investments measured at fair value on a nonrecurring basis		528			523
Less derivative net assets classified as other current and long-term assets		(103	)		(202	)
Other		3			1
Recorded basis of investment components	$	143,814		$	139,004