| 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:
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| (In millions) |
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Level 1 |
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Level 2 |
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Level 3 |
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Gross Fair
Value
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Netting |
(a) |
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Net Fair
Value |
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March 31, 2016
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Assets
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Mutual funds
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$ |
1,111 |
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$ |
0 |
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$ |
0 |
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$ |
1,111 |
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$ |
0 |
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$ |
1,111 |
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Commercial paper
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0 |
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|
824 |
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0 |
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|
824 |
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0 |
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|
824 |
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Certificates of deposit
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0 |
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1,324 |
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0 |
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1,324 |
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0 |
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1,324 |
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U.S. government and agency
securities
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78,052 |
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3,684 |
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0 |
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81,736 |
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0 |
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81,736 |
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Foreign government bonds
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10 |
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5,306 |
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0 |
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5,316 |
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0 |
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5,316 |
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Mortgage- and asset-backed
securities
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0 |
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4,708 |
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0 |
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4,708 |
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0 |
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4,708 |
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Corporate notes and bonds
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0 |
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6,520 |
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1 |
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6,521 |
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0 |
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6,521 |
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Municipal securities
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0 |
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|
332 |
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0 |
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|
332 |
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0 |
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332 |
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Common and preferred stock
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7,833 |
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2,114 |
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18 |
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9,965 |
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0 |
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9,965 |
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Derivatives
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1 |
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|
699 |
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0 |
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700 |
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(243 |
) |
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457 |
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Total
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$ |
87,007 |
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$ |
25,511 |
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$ |
19 |
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$ |
112,537 |
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$ |
(243 |
) |
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$ |
112,294 |
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Liabilities
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Derivatives and other
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$ |
15 |
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$ |
360 |
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$ |
0 |
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$ |
375 |
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$ |
(240 |
) |
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$ |
135 |
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| (In millions) |
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Level 1 |
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Level 2 |
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Level 3 |
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Gross Fair
Value
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Netting |
(a) |
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Net Fair
Value |
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June 30, 2015
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Assets
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Mutual funds
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$ |
1,100 |
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$ |
0 |
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$ |
0 |
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$ |
1,100 |
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$ |
0 |
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$ |
1,100 |
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Commercial paper
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0 |
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1 |
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0 |
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1 |
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0 |
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1 |
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Certificates of deposit
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0 |
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|
906 |
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0 |
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|
906 |
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0 |
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|
906 |
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U.S. government and agency
securities
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71,930 |
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|
955 |
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0 |
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72,885 |
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0 |
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72,885 |
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Foreign government bonds
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131 |
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5,299 |
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0 |
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5,430 |
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0 |
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5,430 |
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Mortgage- and asset-backed
securities
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0 |
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4,917 |
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0 |
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4,917 |
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0 |
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4,917 |
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Corporate notes and bonds
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0 |
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7,108 |
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1 |
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7,109 |
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0 |
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7,109 |
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Municipal securities
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0 |
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|
319 |
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0 |
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|
319 |
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0 |
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|
319 |
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Common and preferred stock
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8,585 |
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2,277 |
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14 |
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10,876 |
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0 |
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10,876 |
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Derivatives
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|
4 |
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|
979 |
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|
5 |
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|
988 |
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(162 |
) |
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|
826 |
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Total
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$ |
81,750 |
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$ |
22,761 |
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$ |
20 |
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$ |
104,531 |
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$ |
(162 |
) |
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$ |
104,369 |
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Liabilities
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Derivatives and other
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$ |
5 |
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$ |
159 |
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$ |
54 |
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$ |
218 |
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$ |
(161 |
) |
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$ |
57 |
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| (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.
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| 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 our balance sheet presentation of these same assets in Note 4
– Investments.
|
|
|
|
|
|
|
|
|
| (In millions) |
|
|
|
|
|
|
|
|
|
|
|
March 31,
2016
|
|
|
June 30,
2015
|
|
|
|
|
|
Net fair value of assets measured at
fair value on a recurring basis
|
|
$ |
112,294 |
|
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$ |
104,369 |
|
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Cash
|
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|
3,691 |
|
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|
3,679 |
|
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Common and preferred stock measured
at fair value on a nonrecurring basis
|
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|
770 |
|
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|
561 |
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Other investments measured at fair
value on a nonrecurring basis
|
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|
557 |
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|
589 |
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Less derivative net assets classified
as other current assets
|
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(486 |
) |
|
|
(648 |
) |
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Other
|
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|
16 |
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|
4 |
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Recorded basis of investment
components
|
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$ |
116,842 |
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$ |
108,554 |
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