Microsoft 2010 Annual Report Download - page 53

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52
NOTE 6 — FAIR VALUE MEASUREMENTS
Assets and Liabilities Measured at Fair Value on a 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
June 30, 2010
Assets
Mutual funds $1,120 $ 0 $ 0 $ 1,120
$ 0 $1,120
Commercial paper 0 172 0 172
0 172
Certificates of deposit 0 348 0 348
0 348
U.S. Government and Agency securities 16,473 4,756 0 21,229
0 21,229
Foreign government bonds 239 294 0 533
0 533
Mortgage-backed securities 0 3,264 0 3,264
0 3,264
Corporate notes and bonds 0 7,460 167 7,627
0 7,627
Municipal securities 0 747 0 747
0 747
Common and preferred stock 6,988 43 5 7,036
0 7,036
Derivatives 22 745 9 776
(207) 569
Total $ 24,842 $ 17,829 $ 181 $ 42,852
$ (207) $ 42,645
Liabilities
Derivatives and other $85 $ 137 $ 0 $ 222
$ (205) $ 17
(In millions) Level 1 Level 2 Level 3
Gross
Fair
Value
Netting (a)
Net Fair
Value
June 30, 2009
Assets
Mutual funds $ 982 $0 $0 $ 982 $ 0 $ 982
Commercial paper 0 2,601 0 2,601
0 2,601
Certificates of deposit 0 555 0 555
0 555
U.S. Government and Agency securities 7,134 6,105 0 13,239
0 13,239
Foreign government bonds 501 3,022 0 3,523
0 3,523
Mortgage-backed securities 0 3,593 0 3,593
0 3,593
Corporate notes and bonds 0 4,073 253 4,326
0 4,326
Municipal securities 0 256 0 256
0 256
Common and preferred stock 4,218 28 5 4,251
0 4,251
Derivatives 5 623 5 633
(235) 398
Total $ 12,840 $ 20,856 $ 263 $ 33,959 $ (235) $ 33,724
Liabilities
Derivatives and other $5 $ 344 $0 $ 349 $ (231) $ 118
(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.