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59
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, 2015
Assets
Mutual funds $1,100 $ 0 $ 0 $ 1,100 $ 0 $1,100
Commercial paper 0 1 0 1 0 1
Certificates of deposit 0 906 0 906 0 906
U.S. government and agency securities 71,930 955 0 72,885 0 72,885
Foreign government bonds 131 5,299 0 5,430 0 5,430
Mortgage- and asset-backed securities 0 4,917 0 4,917 0 4,917
Corporate notes and bonds 0 7,108 1 7,109 0 7,109
Municipal securities 0 319 0 319 0 319
Common and preferred stock 8,585 2,277 14 10,876 0 10,876
Derivatives 4 979 5 988 (162) 826
Total $81,750 $ 22,761 $ 20 $ 104,531 $ (162) $ 104,369
Liabilities
Derivatives and other $ 5 $ 159 $ 54 $ 218 $ (161) $57
(In millions) Level 1 Level 2 Level 3
Gross
Fair
Value
Netting (a)
Net Fair
Value
June 30, 2014
Assets
Mutual funds $590 $0 $0 $590 $ 0 $590
Commercial paper 0 189 0 189 0 189
Certificates of deposit 0 1,197 0 1,197 0 1,197
U.S. government and agency securities 66,288 745 0 67,033 0 67,033
Foreign government bonds 139 3,210 0 3,349 0 3,349
Mortgage- and asset-backed securities 0 1,015 0 1,015 0 1,015
Corporate notes and bonds 0 6,863 0 6,863 0 6,863
Municipal securities 0 332 0 332 0 332
Common and preferred stock 9,552 1,825 14 11,391 0 11,391
Derivatives 5 348 7 360 (155) 205
Total $ 76,574 $ 15,724 $21 $92,319 $ (155) $92,164
Liabilities
Derivatives and other $5 $153 $ 126 $284 $ (155) $129
(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.
The changes in our Level 3 financial instruments that are measured at fair value on a recurring basis were immaterial
during the periods presented.