Risk Management Activities and Fair Value Measurements (Tables)

6 Months Ended

Dec. 31, 2013

Risk Management Activities and Fair Value Measurements [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 December 31, 2013 and June 30, 2013 that are 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
	December 31, 2013		June 30, 2013		December 31, 2013		June 30, 2013		December 31, 2013		June 30, 2013		December 31, 2013		June 30, 2013
Assets recorded at fair value:
Investments:
U.S. government securities	$	—	$	—	$	1,574	$	1,571	$	—	$	—	$	1,574	$	1,571
Other investments	8		23		—		—		25		24		33		47
Derivatives relating to:
Foreign currency hedges	—		—		219		168		—		—		219		168
Other foreign currency instruments (1)	—		—		31		19		—		—		31		19
Interest rates	—		—		136		191		—		—		136		191
Net investment hedges	—		—		133		233		—		—		133		233
Total assets recorded at fair value (2)	8		23		2,093		2,182		25		24		2,126		2,229
Liabilities recorded at fair value:
Derivatives relating to:
Foreign currency hedges	—		—		—		—		—		—		—		—
Other foreign currency instruments (1)	—		—		76		90		—		—		76		90
Interest rates	—		—		117		59		—		—		117		59
Net investment hedges	—		—		—		—		—		—		—		—
Liabilities recorded at fair value (3)	—		—		193		149		—		—		193		149
Liabilities not recorded at fair value:
Long-term debt (4)	26,275		22,671		3,626		3,022		—		—		29,901		25,693
Total liabilities recorded and not recorded at fair value	$	26,275	$	22,671	$	3,819	$	3,171	$	—	$	—	$	30,094	$	25,842

⁽¹⁾  Other foreign currency instruments are comprised of foreign currency financial instruments that do not qualify as hedges.

⁽²⁾  All derivative assets are presented in prepaid expenses and other current assets and other noncurrent assets. Investment securities are presented in available-for-sale investment securities and other noncurrent assets. The U.S government securities are included in other noncurrent assets in our Consolidated Balance Sheet at June 30, 2013. The amortized cost of the U.S. government securities was $1,604 as of December 31, 2013 and June 30, 2013. All U.S. government securities have contractual maturities between one and five years. Fair values are generally estimated based upon quoted market prices for similar instruments.

⁽³⁾  All liabilities are presented in accrued and other liabilities or other noncurrent liabilities.

⁽⁴⁾  Long-term debt includes the current portion ($6,521 and $4,540 as of December 31, 2013 and June 30, 2013, respectively) of debt instruments. Long-term debt is not recorded at fair value on a recurring basis, but is measured at fair value for disclosure purposes. Fair values are generally estimated based on quoted market prices for identical or similar instruments.

Schedule of Derivative Instruments

The notional amounts and fair values of qualifying and non-qualifying financial instruments used in hedging transactions as of December 31, 2013 and June 30, 2013 are as follows:

	Notional Amount				Fair Value Asset/(Liability)
	December 31, 2013		June 30, 2013		December 31, 2013			June 30, 2013
Derivatives in Cash Flow Hedging Relationships
Foreign currency contracts	$	951	$	951	$	219		$	168
Derivatives in Fair Value Hedging Relationships
Interest rate contracts	$	11,833	$	9,117	$	19		$	132
Derivatives in Net Investment Hedging Relationships
Net investment hedges	$	1,125	$	1,303	$	133		$	233
Derivatives Not Designated as Hedging Instruments
Foreign currency contracts	$	6,824	$	7,080	$	(45	)	$	(71	)

Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss)

	Amount of Gain (Loss) Recognized in Accumulated OCI on Derivatives (Effective Portion)
	December 31, 2013		June 30, 2013
Derivatives in Cash Flow Hedging Relationships
Interest rate contracts	$	5	$	7
Foreign currency contracts	18		14
Total	$	23	$	21
Derivatives in Net Investment Hedging Relationships
Net investment hedges	$	82	$	145

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance

The amounts of gains and losses on qualifying and non-qualifying financial instruments used in hedging transactions for the three and six months ended December 31, 2013 and 2012 are as follows:

	Amount of Gain/(Loss) Reclassified from Accumulated OCI into  Income (1)
	Three Months Ended December 31						Six Months Ended December 31
	2013			2012			2013			2012
Derivatives in Cash Flow Hedging Relationships
Interest rate contracts	$	1		$	1		$	3		$	3
Foreign currency contracts	58			106			56			88
Total	$	59		$	107		$	59		$	91
	Amount of Gain/(Loss) Recognized in Income
	Three Months Ended December 31						Six Months Ended December 31
	2013			2012			2013			2012
Derivatives in Fair Value Hedging Relationships(2)
Interest rate contracts	$	(84	)	$	(15	)	(113		)	25
Debt	84			17			113			(21		)
Total	—			2			—			4
Derivatives in Net Investment Hedging Relationships (2)
Net investment hedges	$	—		$	(1	)	$	—		$	(1	)
Derivatives Not Designated as Hedging Instruments (3)
Foreign currency contracts (4)	$	(26	)	$	(53	)	$	83		$	226
Commodity contracts	—			(2		)	—			—
Total	$	(26	)	$	(55	)	$	83		$	226

⁽¹⁾  The gain or loss on the effective portion of cash flow hedging relationships is reclassified from AOCI 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 expense (SG&A) 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 SG&A 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.