DERIVATIVES (Tables)

9 Months Ended

Mar. 31, 2023

Notional Amounts of Outstanding Derivative Instruments Measured in U.S. Dollar Equivalents

The following table presents the notional amounts of our outstanding derivative instruments measured in U.S. dollar equivalents:

(In millions)	March 31, 2023		June 30, 2022
Designated as Hedging Instruments
Foreign exchange contracts purchased	$	1,492	$	635
Interest rate contracts purchased		1,108		1,139
Not Designated as Hedging Instruments
Foreign exchange contracts purchased		10,232		10,322
Foreign exchange contracts sold		20,460		21,606
Other contracts purchased		4,787		2,773
Other contracts sold		2,952		544

Fair Values of Derivative Instruments

The following table presents our derivative instruments:

(In millions)	Derivative Assets				Derivative Liabilities		Derivative Assets			Derivative Liabilities
	March 31, 2023						June 30, 2022
Designated as Hedging Instruments
Foreign exchange contracts	$	19		$	(77	)	$	0		$	(77	)
Interest rate contracts		6			0			3			0
Not Designated as Hedging Instruments
Foreign exchange contracts		278			(333	)		333			(362	)
Other contracts		217			(311	)		20			(112	)
Gross amounts of derivatives		520			(721	)		356			(551	)
Gross amounts of derivatives offset in the balance sheet		(265	)		263			(130	)		133
Cash collateral received		0			(26	)		0			(75	)
Net amounts of derivatives	$	255		$	(484	)	$	226		$	(493	)
Reported as
Short-term investments	$	8		$	0		$	8		$	0
Other current assets		243			0			218			0
Other long-term assets		4			0			0			0
Other current liabilities		0			(188	)		0			(298	)
Other long-term liabilities		0			(296	)		0			(195	)
Total	$	255		$	(484	)	$	226		$	(493	)

The following table presents the fair value of our derivatives instruments on a gross basis:

(In millions)	Level 1			Level 2		Level 3		Total
March 31, 2023
Derivative assets	$	4	$	507		$	9	$	520
Derivative liabilities		0		(721	)		0		(721	)
June 30, 2022
Derivative assets		1		349			6		356
Derivative liabilities		0		(551	)		0		(551	)

Gains (Losses) on Derivative Instruments

Gains (losses) on derivative instruments recognized in other income (expense), net were as follows:

(In millions)		Three Months Ended March 31,						Nine Months Ended March 31,
		2023			2022			2023			2022
Designated as Fair Value Hedging Instruments
Foreign exchange contracts
Derivatives	$	0		$	0		$	0		$	49
Hedged items		0			0			0			(50	)
Excluded from effectiveness assessment		0			0			0			4
Interest rate contracts
Derivatives		1			(57	)		(37	)		(71	)
Hedged items		(15	)		61			20			83
Designated as Cash Flow Hedging Instruments
Foreign exchange contracts
Amount reclassified from accumulated other comprehensive loss		18			(15	)		62			(44	)
Not Designated as Hedging Instruments
Foreign exchange contracts		(10	)		35			(20	)		308
Other contracts		(60	)		(29	)		(264	)		(41	)

Cash Flow Hedges | Other Comprehensive Income (Loss)

Gains (Losses) on Derivative Instruments

Gains (losses), net of tax, on derivative instruments recognized in our consolidated comprehensive income statements were as follows:

(In millions)	Three Months Ended March 31,						Nine Months Ended March 31,
	2023		2022				2023		2022
Designated as Cash Flow Hedging Instruments
Foreign exchange contracts
Included in effectiveness assessment	$	5	$	(6	)	$	14	$	(27	)