Microsoft 2012 Annual Report Download - page 58

Download and view the complete annual report

Please find page 58 of the 2012 Microsoft annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 87

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87

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, 2012
Assets
Mutual funds
$
820
$
0
$
0
$
820
$
0
$
820
Commercial paper
0
96
0
96
0
96
Certificates of deposit
0
744
0
744
0
744
U.S. government and agency
securities
42,291
5,019
0
47,310
0
47,310
Foreign government bonds
31
1,703
0
1,734
0
1,734
Mortgage-backed securities
0
1,892
0
1,892
0
1,892
Corporate notes and bonds
0
7,839
9
7,848
0
7,848
Municipal securities
0
416
0
416
0
416
Common and preferred stock
7,539
877
5
8,421
0
8,421
Derivatives
16
467
0
483
(141
)
342
Total
$
50,697
$
19,053
$
14
$
69,764
$
(141
)
$
69,623
Liabilities
Derivatives and other
$
10
$
145
$
0
$
155
$
(139
)
$
16
(In millions)
Level 1
Level 2
Level 3
Gross
Fair
Value
Netting
(a)
Net Fair
Value
June 30, 2011
Assets
Mutual funds
$
1,752
$
0
$
0
$
1,752
$
0
$
1,752
Commercial paper
0
639
0
639
0
639
Certificates of deposit
0
598
0
598
0
598
U.S. government and agency
securities
23,591
10,175
0
33,766
0
33,766
Foreign government bonds
303
367
0
670
0
670
Mortgage-backed securities
0
2,428
0
2,428
0
2,428
Corporate notes and bonds
0
10,600
58
10,658
0
10,658
Municipal securities
0
454
0
454
0
454
Common and preferred stock
9,821
55
5
9,881
0
9,881
Derivatives
8
388
20
416
(204
)
212
Total
$
35,475
$
25,704
$
83
$
61,262
$
(204
)
$
61,058
Liabilities
Derivatives and other
$
109
$
257
$
0
$
366
$
(203
)
$
163
(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.