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RISK MANAGEMENT ACTIVITIES AND FAIR VALUE MEASUREMENTS (TABLES)
 12 Months Ended
Jun. 30, 2011
Notes to Financial Statements [Abstract]  
Schedule Of Fair Value Assets And Liabilities Measured On Recurring Basis Table
The following table sets forth the Company's financial assets and liabilities as of June 30, 2011 and 2010 that were measured at fair value on a recurring basis during the period, segregated by level within the fair value hierarchy:
 
  
Level 1
  
Level 2
  
Level 3
  
Total
June 30
2011
  
2010
  
2011
  
2010
  
2011
  
2010
  
2011
  
2010
ASSETS AT FAIR VALUE:
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
Investment securities
$
16


  
$
12


  
$
—


  
$
—


  
$
23


  
$
45


  
$
39


  
$
57


Derivatives relating to:
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
Foreign currency hedges
—


 
—


 
1


 
—


 
—


 
—


 
1


 
—


Other foreign currency instruments(1)
—


  
—


  
182


  
81


  
—


  
—


  
182


  
81


Interest rates
—


  
—


  
163


  
191


  
—


  
—


  
163


  
191


Net investment hedges
—


  
—


  
—


  
14


  
—


 
—


 
—


  
14


Commodities
—


  
—


  
4


  
10


  
—


  
—


  
4


  
10


TOTAL ASSETS AT FAIR VALUE(2)
16


  
12


  
350


  
296


  
23


  
45


  
389


  
353


 
 
 
 
 
 
 
 
 
LIABILITIES AT FAIR VALUE:
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
Derivatives relating to:
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
Foreign currency hedges
—


  
—


 
119


  
177


 
—


  
—


 
119


  
177


Other foreign currency instruments(1)
—


  
—


 
43


  
175


 
—


  
—


 
43


  
175


Net investment hedges
—


  
—


 
138


  
23


 
—


  
—


 
138


  
23


Commodities
—


  
—


 
1


  
—


 
—


  
—


 
1


  
—


TOTAL LIABILITIES AT FAIR VALUE(3)
—


  
—


 
301


  
375


  
—


  
—


 
301


  
375


(1)
Other foreign currency instruments are comprised of foreign currency financial instruments that do not qualify as hedges.
(2)
Investment securities are presented in other noncurrent assets and all derivative assets are presented in prepaid expenses and other current assets or other noncurrent assets.
(3)
All liabilities are presented in accrued and other liabilities or other noncurrent liabilities.
Schedule of Derivative Instruments
The notional amounts and fair values of qualifying and non-qualifying financial instruments used in hedging transactions as of June 30, 2011 and 2010 are as follows:
 
 
Notional Amount
  
Fair Value Asset/(Liability)
June 30
2011
  
2010
  
2011
 
2010
DERIVATIVES IN CASH FLOW HEDGING RELATIONSHIPS
 
  
 
  
 
 
 
Interest rate contracts
$
—


  
$
—


  
$
—


 
$
—


Foreign currency contracts
831


  
690


  
(118
)
 
(177
)
Commodity contracts
16


  
43


  
4


 
10


TOTAL
847


  
733


  
(114
)
 
(167
)
 
 
 
 
 
 
DERIVATIVES IN FAIR VALUE HEDGING RELATIONSHIPS
 
  
 
  
 
 
 
Interest rate contracts
10,308


  
7,942


  
163


 
191


 
 
 
 
 
 
DERIVATIVES IN NET INVESTMENT HEDGING RELATIONSHIPS
 
  
 
  
 
 
 
Net investment hedges
1,540


  
1,586


  
(138
)
 
(9
)
 
 
 
 
 
 
DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS
 
  
 
  
 
 
 
Foreign currency contracts
14,957


  
11,845


  
139


 
(94
)
Commodity contracts
39


  
19


  
(1
)
 
—


TOTAL
14,996


  
11,864


  
138


 
(94
)
The total notional amount of contracts outstanding at the end of the period is indicative of the level of the Company's derivative activity during the period.
 
 
Amount of Gain/(Loss)
Recognized in
Accumulated OCI
on Derivatives
(Effective Portion)
June 30
2011
 
2010
DERIVATIVES IN CASH FLOW HEDGING RELATIONSHIPS
 
 
 
Interest rate contracts
$
15


 
$
19


Foreign currency contracts
32


 
23


Commodity contracts
3


 
11


TOTAL
50


 
53


 
 
 
 
DERIVATIVES IN NET INVESTMENT HEDGING RELATIONSHIPS
 
 
 
Net investment hedges
(88
)
 
(8
)


The effective portion of gains and losses on derivative instruments that was recognized in other comprehensive income during the years ended June 30, 2011 and 2010 is not material. During the next 12 months, the amount of the June 30, 2011, accumulated OCI balance that will be reclassified to earnings is expected to be immaterial.
The amounts of gains and losses on qualifying and non-qualifying financial instruments used in hedging transactions for the years ended June 30, 2011 and 2010 are as follows:
 
 
Amount of Gain/(Loss)
Reclassified  from
Accumulated
OCI into  Income(1)
Years ended June 30
2011
 
2010
DERIVATIVES IN CASH FLOW HEDGING RELATIONSHIPS
 
 
 
Interest rate contracts
$
7


 
$
(8
)
Foreign currency contracts
(77
)
 
(48
)
Commodity contracts
20


 
(76
)
TOTAL
(50
)
 
(132
)
 
 
 
Amount of Gain/(Loss)
Recognized in Income
Years ended June 30
2011
 
2010
DERIVATIVES IN FAIR VALUE HEDGING RELATIONSHIPS(2)
 
 
 
Interest rate contracts
$
(28
)
 
$
191


Debt
31


 
(196
)
TOTAL
3


 
(5
)
 
 
 
 
DERIVATIVES IN NET INVESTMENT HEDGING RELATIONSHIPS(2)
 
 
 
Net investment hedges
—


 
3


 
 
 
 
DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS(3)
 
 
 
Foreign currency contracts(4)
1,359


 
(814
)
Commodity contracts
3


 
1


TOTAL
1,362


 
(813
)
 
(1)
The gain or loss on the effective portion of cash flow hedging relationships is reclassified from accumulated OCI into net income in the same period during which the related item affects earnings. Such amounts are included in the Consolidated Statements of Earnings as follows: interest rate contracts in interest expense, foreign currency contracts in selling, general and administrative and interest expense, and commodity contracts in cost of products sold.
(2)
The gain or loss on the ineffective portion of interest rate contracts and net investment hedges, if any, is included in the Consolidated Statements of Earnings in interest expense.
(3)
The gain or loss on contracts not designated as hedging instruments is included in the Consolidated Statements of Earnings as follows: foreign currency contracts in selling, general and administrative expense and commodity contracts in cost of products sold.
(4)
The gain or loss on non-qualifying foreign currency contracts substantially offsets the foreign currency mark-to-market impact of the related exposure.
Amounts in millions of dollars except per share amounts or as otherwise specified.