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RISK MANAGEMENT ACTIVITIES AND FAIR VALUE MEASUREMENTS
 6 Months Ended
Dec. 31, 2016
Risk Management Activities and Fair Value Measurements [Abstract]  
Risk Management And Fair Value [Text Block]
Risk Management Activities and Fair Value Measurements
As a multinational company with diverse product offerings, we are exposed to market risks, such as changes in interest rates, currency exchange rates and commodity prices. There have been no significant changes in our risk management policies or activities during the six months ended December 31, 2016.
The Company has not changed its valuation techniques used in measuring the fair value of any financial assets and liabilities during the period. The Company recognizes transfers between levels within the fair value hierarchy, if any, at the end of each quarter. There were no transfers between levels during the periods presented. Also, there was no significant activity within the Level 3 assets and liabilities during the periods presented. There were no significant assets or liabilities that were remeasured at fair value on a non-recurring basis for the six months ended December 31, 2016.
The following table sets forth the Company’s financial assets as of December 31, 2016 and June 30, 2016 that are measured at fair value on a recurring basis during the period:
 
Fair Value Asset
 
December 31, 2016
 
June 30, 2016
Investments
 
 
 
U.S. government securities
$
5,599

 
$
4,839

Corporate bond securities
1,804

 
1,407

Other investments
30

 
28

Total
$
7,433

 
$
6,274


Investment securities are presented in Available-for-sale investment securities and Other noncurrent assets. The amortized cost of U.S. government securities with maturities less than one year was $1,642 as of December 31, 2016 and $292 as of June 30, 2016. The amortized cost of U.S. government securities with maturities between one and five years was $3,983 as of December 31, 2016 and $4,513 as of June 30, 2016. The amortized cost of Corporate bond securities with maturities of less than a year was $443 as of December 31, 2016 and $382 as of June 30, 2016. The amortized cost of Corporate bond securities with maturities between one and five years was $1,369 as of December 31, 2016 and $1,018 as of June 30, 2016. The Company's investments measured at fair value are generally classified as Level 2 within the fair value hierarchy. There are no material investment balances classified as either Level 1 or Level 3 within the fair value hierarchy. Fair values are generally estimated based upon quoted market prices for similar instruments.
The fair value of long-term debt was $19,870 and $24,362 as of December 31, 2016 and June 30, 2016, respectively. This includes the current portion ($1,790 and $2,761 as of December 31, 2016 and June 30, 2016, respectively) of debt instruments. Certain long-term debt is recorded at fair value. Certain long-term debt is not recorded at fair value on a recurring basis but is measured at fair value for disclosure purposes. Long-term debt with fair value of $1,700 and $2,331 as of December 31, 2016 and June 30, 2016, respectively, is classified as Level 2 within the fair value hierarchy. All remaining long-term debt is classified as Level 1 within the fair value hierarchy. Fair values are generally estimated based on quoted market prices for identical or similar instruments.
The following table sets forth the notional amounts and fair values of qualifying and non-qualifying financial instruments used in hedging transactions as of December 31, 2016 and June 30, 2016:
 
Notional Amount
 
Fair Value Asset/(Liability)
 
December 31, 2016
 
June 30, 2016
 
December 31, 2016
 
June 30, 2016
Derivatives in Cash Flow Hedging Relationships
 
 
 
 
 
 
 
Foreign currency contracts
$
798

 
$
798

 
$
116

 
$
31

Derivatives in Fair Value Hedging Relationships
 
 
 
 
 
 
 
Interest rate contracts
$
4,393

 
$
4,993

 
$
191

 
$
371

Derivatives in Net Investment Hedging Relationships
 
 
 
 
 
 
 
Net investment hedges
$
3,044

 
$
3,013

 
$
147

 
$
(87
)
Derivatives Not Designated as Hedging Instruments
 
 
 
 
 
 
 
Foreign currency contracts
$
3,745

 
$
6,482

 
$
(20
)
 
$
(10
)

All derivative assets are presented in Prepaid expenses and other current assets or Other noncurrent assets. All derivative liabilities are presented in Accrued and other liabilities or Other noncurrent liabilities. The total notional amount of contracts outstanding at the end of the period is indicative of the Company's derivative activity during the period. The change in the notional balance of foreign currency contracts not designated as hedging instruments during the period reflects changes in the level of intercompany financing activity. All of the Company's derivative assets and liabilities measured at fair value are classified as Level 2 within the fair value hierarchy.
 
Amount of Gain/(Loss) Recognized in AOCI on Derivatives (Effective Portion)
 
December 31, 2016
 
June 30, 2016
Derivatives in Cash Flow Hedging Relationships
 
 
 
Interest rate contracts
$
(2
)
 
$
(2
)
Foreign currency contracts
(7
)
 
—

Total
$
(9
)
 
$
(2
)
Derivatives in Net Investment Hedging Relationships
 
 
 
Net investment hedges
$
94

 
$
(53
)

During the next 12 months, the amount of the December 31, 2016 Accumulated other comprehensive income (AOCI) 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 three and six months ended December 31, 2016 and 2015 are as follows:
 
Amount of Gain/(Loss) Reclassified from AOCI into Earnings
 
Three Months Ended December 31
 
Six Months Ended December 31
 
2016
 
2015
 
2016
 
2015
Derivatives in Cash Flow Hedging Relationships (1)
 
 
 
 
 
 
 
Interest rate contracts
$
—

 
$
1

 
$
—

 
$
3

Foreign currency contracts
107

 
8

 
99

 
(1
)
Total
$
107

 
$
9

 
$
99

 
$
2

 
 
 
 
 
 
 
 
 
Amount of Gain/(Loss) Recognized in Earnings
 
Three Months Ended December 31
 
Six Months Ended December 31
 
2016
 
2015
 
2016
 
2015
Derivatives in Fair Value Hedging Relationships (2)
 
 
 
 
 
 
 
Interest rate contracts
$
(152
)
 
$
(50
)
 
$
(180
)
 
$
39

Debt
152

 
50

 
180

 
(39
)
Total
$
—

 
$
—

 
$
—

 
$
—

Derivatives in Net Investment Hedging Relationships (2)
 
 
 
 
 
 
 
Net investment hedges
$
—

 
$
—

 
$
—

 
$
—

Derivatives Not Designated as Hedging Instruments (3)
 
 
 
 
 
 
 
Foreign currency contracts
$
(176
)
 
$
(158
)
 
$
(184
)
 
$
(220
)
(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 and foreign currency contracts in Selling, general and administrative expense (SG&A) and Interest expense.
(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 foreign currency contracts not designated as hedging instruments is included in the Consolidated Statements of Earnings in SG&A. This gain or loss substantially offsets the foreign currency mark-to-market impact of the related exposure.