| 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) |
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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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|
December 31, 2017 |
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Assets |
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Mutual funds |
|
$ |
1,080 |
|
|
$ |
0 |
|
|
$ |
0 |
|
|
$ |
1,080 |
|
|
$ |
0 |
|
|
$ |
1,080 |
|
|
Commercial paper |
|
|
0 |
|
|
|
1,533 |
|
|
|
0 |
|
|
|
1,533 |
|
|
|
0 |
|
|
|
1,533 |
|
|
Certificates of deposit |
|
|
0 |
|
|
|
1,832 |
|
|
|
0 |
|
|
|
1,832 |
|
|
|
0 |
|
|
|
1,832 |
|
|
U.S. government and agency securities |
|
|
116,194 |
|
|
|
2,180 |
|
|
|
0 |
|
|
|
118,374 |
|
|
|
0 |
|
|
|
118,374 |
|
|
Foreign government bonds |
|
|
15 |
|
|
|
6,598 |
|
|
|
0 |
|
|
|
6,613 |
|
|
|
0 |
|
|
|
6,613 |
|
|
Mortgage- and asset-backed securities |
|
|
0 |
|
|
|
3,953 |
|
|
|
0 |
|
|
|
3,953 |
|
|
|
0 |
|
|
|
3,953 |
|
|
Corporate notes and bonds |
|
|
1 |
|
|
|
5,181 |
|
|
|
6 |
|
|
|
5,188 |
|
|
|
0 |
|
|
|
5,188 |
|
|
Municipal securities |
|
|
0 |
|
|
|
331 |
|
|
|
0 |
|
|
|
331 |
|
|
|
0 |
|
|
|
331 |
|
|
Common and preferred stock |
|
|
969 |
|
|
|
1,392 |
|
|
|
18 |
|
|
|
2,379 |
|
|
|
0 |
|
|
|
2,379 |
|
|
Derivatives |
|
|
1 |
|
|
|
262 |
|
|
|
1 |
|
|
|
264 |
|
|
|
(159 |
) |
|
|
105 |
|
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Total |
|
$ |
118,260 |
|
|
$ |
23,262 |
|
|
$ |
25 |
|
|
$ |
141,547 |
|
|
$ |
(159 |
) |
|
$ |
141,388 |
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Liabilities |
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Derivatives and other |
|
$ |
3 |
|
|
$ |
534 |
|
|
$ |
37 |
|
|
$ |
574 |
|
|
$ |
(159 |
) |
|
$ |
415 |
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|
(In millions) |
|
|
Level 1 |
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Level 2 |
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Level 3 |
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Gross Fair
Value |
|
|
|
Netting |
(a)
|
|
|
Net Fair
Value |
|
|
|
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|
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|
June 30, 2017 |
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Assets |
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|
Mutual funds |
|
$ |
1,478 |
|
|
$ |
0 |
|
|
$ |
0 |
|
|
$ |
1,478 |
|
|
$ |
0 |
|
|
$ |
1,478 |
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|
Commercial paper |
|
|
0 |
|
|
|
319 |
|
|
|
0 |
|
|
|
319 |
|
|
|
0 |
|
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|
319 |
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|
Certificates of deposit |
|
|
0 |
|
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|
1,358 |
|
|
|
0 |
|
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|
1,358 |
|
|
|
0 |
|
|
|
1,358 |
|
|
U.S. government and agency securities |
|
|
109,228 |
|
|
|
2,616 |
|
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|
0 |
|
|
|
111,844 |
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|
|
0 |
|
|
|
111,844 |
|
|
Foreign government bonds |
|
|
0 |
|
|
|
5,187 |
|
|
|
0 |
|
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|
5,187 |
|
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|
0 |
|
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|
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 |
|
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Total |
|
$ |
113,121 |
|
|
$ |
21,072 |
|
|
$ |
19 |
|
|
$ |
134,212 |
|
|
$ |
(227 |
) |
|
$ |
133,985 |
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Liabilities |
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|
Derivatives and other |
|
$ |
0 |
|
|
$ |
345 |
|
|
$ |
39 |
|
|
$ |
384 |
|
|
$ |
(228 |
) |
|
$ |
156 |
|
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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) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2017 |
|
|
June 30,
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
Net fair value of assets measured at fair value on a recurring basis |
|
$ |
141,388 |
|
|
$ |
133,985 |
|
|
Cash |
|
|
3,877 |
|
|
|
3,624 |
|
|
Common and preferred stock measured at fair value on a nonrecurring basis |
|
|
1,017 |
|
|
|
1,073 |
|
|
Other investments measured at fair value on a nonrecurring basis |
|
|
564 |
|
|
|
523 |
|
|
Less derivative net assets classified as other current and long-term assets |
|
|
(106 |
) |
|
|
(202 |
) |
|
Other |
|
|
1 |
|
|
|
1 |
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
Recorded basis of investment components |
|
$ |
146,741 |
|
|
$ |
139,004 |
|
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|
|
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|