| 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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| June 30, 2014 |
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Assets
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Mutual funds
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$ |
590 |
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$ |
0 |
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$ |
0 |
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$ |
590 |
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|
$ |
0 |
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$ |
590 |
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Commercial paper
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|
0 |
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|
189 |
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|
0 |
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|
189 |
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|
0 |
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|
189 |
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Certificates of deposit
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|
0 |
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1,197 |
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0 |
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1,197 |
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0 |
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1,197 |
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U.S. government and agency
securities
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|
66,288 |
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|
745 |
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|
0 |
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|
67,033 |
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|
0 |
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|
67,033 |
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Foreign government bonds
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|
139 |
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|
3,210 |
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0 |
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|
3,349 |
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0 |
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|
3,349 |
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Mortgage-backed securities
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|
0 |
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|
1,015 |
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0 |
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|
1,015 |
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|
0 |
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|
1,015 |
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Corporate notes and bonds
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|
0 |
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|
6,863 |
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0 |
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|
6,863 |
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|
0 |
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|
6,863 |
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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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9,552 |
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|
1,825 |
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|
14 |
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11,391 |
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0 |
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11,391 |
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Derivatives
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|
5 |
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|
348 |
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7 |
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|
360 |
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(155 |
) |
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205 |
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Total
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$ |
76,574 |
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$ |
15,724 |
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$ |
21 |
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$ |
92,319 |
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$ |
(155 |
) |
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$ |
92,164 |
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Liabilities
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Derivatives and other
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$ |
5 |
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$ |
153 |
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$ |
126 |
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$ |
284 |
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$ |
(155 |
) |
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$ |
129 |
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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, 2013 |
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Assets
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Mutual funds
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$ |
868 |
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$ |
0 |
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$ |
0 |
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$ |
868 |
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$ |
0 |
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$ |
868 |
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Commercial paper
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|
0 |
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|
603 |
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0 |
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|
603 |
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0 |
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|
603 |
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Certificates of deposit
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|
0 |
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|
994 |
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0 |
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|
994 |
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0 |
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|
994 |
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U.S. government and agency
securities
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|
62,237 |
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|
2,664 |
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|
0 |
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64,901 |
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0 |
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64,901 |
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Foreign government bonds
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|
9 |
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|
851 |
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0 |
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|
860 |
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0 |
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|
860 |
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Mortgage-backed securities
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|
0 |
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|
1,311 |
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0 |
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|
1,311 |
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0 |
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|
1,311 |
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Corporate notes and bonds
|
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|
0 |
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|
4,915 |
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19 |
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|
4,934 |
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0 |
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4,934 |
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Municipal securities
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|
0 |
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|
385 |
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0 |
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|
385 |
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0 |
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|
385 |
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Common and preferred stock
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8,470 |
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|
717 |
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5 |
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9,192 |
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0 |
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9,192 |
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Derivatives
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|
12 |
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|
489 |
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0 |
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|
501 |
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(81 |
) |
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|
420 |
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Total
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$ |
71,596 |
|
|
$ |
12,929 |
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$ |
24 |
|
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$ |
84,549 |
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$ |
(81 |
) |
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$ |
84,468 |
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Liabilities
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Derivatives and other
|
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$ |
14 |
|
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$ |
121 |
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$ |
0 |
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$ |
135 |
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$ |
(80 |
) |
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$ |
55 |
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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 the balance
sheet presentation of these same assets in Note 4 –
Investments.
|
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| (In millions) |
|
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|
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| June 30, |
|
2014 |
|
|
2013 |
|
|
|
|
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Net fair value of assets measured at
fair value on a recurring basis
|
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$ |
92,164 |
|
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$ |
84,468 |
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Cash
|
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|
4,980 |
|
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|
1,967 |
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Common and preferred stock measured at
fair value on a nonrecurring basis
|
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|
520 |
|
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|
395 |
|
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Other investments measured at fair
value on a nonrecurring basis
|
|
|
1,150 |
|
|
|
1,256 |
|
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Less derivative net assets classified
as other current assets
|
|
|
(38 |
) |
|
|
(213 |
) |
|
Other
|
|
|
(6 |
) |
|
|
(7 |
) |
|
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|
|
Recorded basis of investment
components (a)
|
|
$ |
98,770 |
|
|
$ |
87,866 |
|
| |
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|
|
| (a) |
Excludes held-to-maturity investments recorded at amortized
cost and measured at fair value on a nonrecurring
basis.
|
|