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Fair Value Measurements | 6 Months Ended
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Dec. 31, 2017
Fair Value Disclosures [Abstract] |
Fair Value Measurements | 10. Fair Value Measurements Assets and (liabilities) measured on a recurring basis The following tables present the fair values for assets and (liabilities) measured on a recurring basis at:
| December 31, 2017
(in millions) | Level 1 |  | Level 2 |  | Level 3 |  | Total
Assets: |  |  |  |  |  |  |
Cash equivalents | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Available-for-sale securities (2) | — |  |  | — |  |  | — |  |  | — |
Other investments (3) | 122 |  |  | — |  |  | — |  |  | 122 |
Liabilities: |  |  |  |  |  |  |
Forward contracts (1) | — |  |  | (33 | ) |  | — |  |  | (33 | )
Contingent consideration (4) | — |  |  | — |  |  | (21 | ) |  | (21 | )
| June 30, 2017
(in millions) | Level 1 |  | Level 2 |  | Level 3 |  | Total
Assets: |  |  |  |  |  |  |
Cash equivalents | $ | 739 |  |  | $ | — |  |  | $ | — |  |  | $ | 739 |
Available-for-sale securities (2) | — |  |  | 65 |  |  | — |  |  | 65 |
Other investments (3) | 116 |  |  | — |  |  | — |  |  | 116 |
Liabilities: |  |  |  |  |  |  |
Forward contracts (1) | — |  |  | (21 | ) |  | — |  |  | (21 | )
Contingent consideration (4) | — |  |  | — |  |  | (32 | ) |  | (32 | )
(1) | The fair value of interest rate swaps, foreign currency contracts and commodity contracts is determined based on the present value of expected future cash flows considering the risks involved, including non-performance risk, and using discount rates appropriate for the respective maturities. Observable Level 2 inputs are used to determine the present value of expected future cash flows. The fair value of these derivative contracts, which are subject to master netting arrangements under certain circumstances, is presented on a gross basis in the condensed consolidated balance sheets.
(2) | We invest in marketable securities, which are classified as available-for-sale and are carried at fair value in the condensed consolidated balance sheets. Observable Level 2 inputs such as quoted prices for similar securities, interest rate spreads, yield curves and credit risk are used to determine the fair value. See Note 6 for additional information regarding available-for-sale securities.
(3) | The other investments balance includes investments in mutual funds, which are used to offset fluctuations in deferred compensation liabilities. These mutual funds primarily invest in the equity securities of companies with large market capitalization and high quality fixed income debt securities. The fair value of these investments is determined using quoted market prices.
(4) | Contingent consideration represents the obligations incurred in connection with acquisitions. We do not deem the fair value of the contingent consideration obligations under any single acquisition to be significant. The estimate of fair value of the contingent consideration obligations requires subjective assumptions to be made regarding future business results, discount rates, discount periods, and probabilities assigned to various potential business result scenarios and was determined using probability assessments with respect to the likelihood of reaching various targets or of achieving certain milestones. The fair value measurement is based on significant inputs unobservable in the market and thus represents a Level 3 measurement. Changes in current expectations of progress could change the probability of achieving the targets within the measurement periods and result in an increase or decrease in the fair value of the contingent consideration obligation.
The following table presents those liabilities measured at fair value on a recurring basis using unobservable inputs (Level 3):
(in millions) | Contingent Consideration Obligation
Balance at June 30, 2017 | $ | 32 |
Additions from acquisitions | 5 |
Changes in fair value of contingent consideration (1) | — |
Payment of contingent consideration | (17 | )
Balance at December 31, 2017 | $ | 21 |
The sum of the components may not equal the total due to rounding.
(1) | Amount is included in amortization and other acquisition-related costs in the condensed consolidated statements of earnings.
Assets and (liabilities) measured on a nonrecurring basis Assets and liabilities held for sale of $2.2 billion and $1.3 billion, respectively, at December 31, 2017 are related to the sale of our China distribution business that closed on February 1, 2018. There were no assets or liabilities held for sale at June 30, 2017. These estimated fair values utilized Level 3 unobservable inputs based on expected sales proceeds following a competitive bidding process. See Note 4 for additional information regarding assets and liabilities held for sale.

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- Definition The entire disclosure of the fair value measurement of assets and liabilities, which includes financial instruments measured at fair value that are classified in shareholders' equity, which may be measured on a recurring or nonrecurring basis. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -URI http://asc.fasb.org/topic&trid=2155941 + Details
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