| 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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September 30,
2016
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Assets
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Mutual funds
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$ |
1,516 |
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$ |
0 |
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$ |
0 |
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$ |
1,516 |
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$ |
0 |
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$ |
1,516 |
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Commercial paper
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|
0 |
|
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|
745 |
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|
0 |
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|
745 |
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|
0 |
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|
745 |
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Certificates of deposit
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|
0 |
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|
1,304 |
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0 |
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|
1,304 |
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0 |
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|
1,304 |
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U.S. government and agency
securities
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|
106,431 |
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|
6,260 |
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|
0 |
|
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|
112,691 |
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|
0 |
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|
112,691 |
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Foreign government bonds
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|
10 |
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|
5,723 |
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0 |
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5,733 |
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0 |
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|
5,733 |
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Mortgage- and asset-backed
securities
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|
0 |
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|
4,620 |
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0 |
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|
4,620 |
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0 |
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|
4,620 |
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Corporate notes and bonds
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|
0 |
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|
6,502 |
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|
1 |
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6,503 |
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|
0 |
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6,503 |
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Municipal securities
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|
0 |
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|
343 |
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0 |
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|
343 |
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0 |
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|
343 |
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Common and preferred stock
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6,696 |
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2,377 |
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18 |
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9,091 |
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0 |
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|
9,091 |
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Derivatives
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6 |
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|
533 |
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0 |
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|
539 |
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(164 |
) |
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|
375 |
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Total
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$ |
114,659 |
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$ |
28,407 |
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$ |
19 |
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$ |
143,085 |
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$ |
(164 |
) |
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$ |
142,921 |
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Liabilities
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Derivatives and other
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$ |
3 |
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$ |
184 |
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$ |
0 |
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$ |
187 |
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$ |
(161 |
) |
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$ |
26 |
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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, 2016
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Assets
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Mutual funds
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$ |
1,012 |
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$ |
0 |
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$ |
0 |
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$ |
1,012 |
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$ |
0 |
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$ |
1,012 |
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Commercial paper
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0 |
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|
298 |
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0 |
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|
298 |
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0 |
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|
298 |
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Certificates of deposit
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|
0 |
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|
1,000 |
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0 |
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|
1,000 |
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0 |
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|
1,000 |
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U.S. government and agency
securities
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|
86,492 |
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|
3,707 |
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0 |
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|
90,199 |
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0 |
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|
90,199 |
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Foreign government bonds
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|
10 |
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|
5,705 |
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0 |
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5,715 |
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0 |
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|
5,715 |
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Mortgage- and asset-backed
securities
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|
0 |
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|
4,803 |
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0 |
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4,803 |
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0 |
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4,803 |
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Corporate notes and bonds
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|
0 |
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|
6,361 |
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|
1 |
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6,362 |
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|
0 |
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6,362 |
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Municipal securities
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|
0 |
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|
342 |
|
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0 |
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|
342 |
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0 |
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|
342 |
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Common and preferred stock
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6,918 |
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|
2,114 |
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|
18 |
|
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|
9,050 |
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0 |
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|
9,050 |
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Derivatives
|
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|
6 |
|
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|
633 |
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0 |
|
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|
639 |
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(401 |
) |
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|
238 |
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Total
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$ |
94,438 |
|
|
$ |
24,963 |
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$ |
19 |
|
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$ |
119,420 |
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$ |
(401 |
) |
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$ |
119,019 |
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Liabilities
|
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Derivatives and other
|
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$ |
17 |
|
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$ |
613 |
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$ |
0 |
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$ |
630 |
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$ |
(398 |
) |
|
$ |
232 |
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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.
|
|
| 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,
2016
|
|
|
June 30,
2016
|
|
|
|
|
|
Net fair value of assets measured at
fair value on a recurring basis
|
|
$ |
142,921 |
|
|
$ |
119,019 |
|
|
Cash
|
|
|
3,473 |
|
|
|
3,501 |
|
|
Common and preferred stock measured
at fair value on a nonrecurring basis
|
|
|
802 |
|
|
|
767 |
|
|
Other investments measured at fair
value on a nonrecurring basis
|
|
|
587 |
|
|
|
593 |
|
|
Less derivative net assets classified
as other current assets
|
|
|
(393 |
) |
|
|
(246 |
) |
|
Other
|
|
|
2 |
|
|
|
12 |
|
|
|
|
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|
|
Recorded basis of investment
components
|
|
$ |
147,392 |
|
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$ |
123,646 |
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