DERIVATIVES (Tables)

3 Months Ended

Sep. 30, 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)	September 30, 2023		June 30, 2023
Designated as Hedging Instruments
Foreign exchange contracts purchased	$	1,492	$	1,492
Interest rate contracts purchased		1,084		1,078
Not Designated as Hedging Instruments
Foreign exchange contracts purchased		6,957		7,874
Foreign exchange contracts sold		17,026		25,159
Equity contracts purchased		3,548		3,867
Equity contracts sold		2,154		2,154
Other contracts purchased		1,698		1,224
Other contracts sold		678		581

Fair Values of Derivative Instruments

The following table presents our derivative instruments:

(In millions)	Derivative Assets				Derivative Liabilities		Derivative Assets			Derivative Liabilities
	September 30, 2023						June 30, 2023
Designated as Hedging Instruments
Foreign exchange contracts	$	21		$	(75	)	$	34		$	(67	)
Interest rate contracts		9			0			16			0
Not Designated as Hedging Instruments
Foreign exchange contracts		503			(331	)		249			(332	)
Equity contracts		95			(342	)		165			(400	)
Other contracts		8			(24	)		5			(6	)
Gross amounts of derivatives		636			(772	)		469			(805	)
Gross amounts of derivatives offset in the balance sheet		(294	)		296			(202	)		206
Cash collateral received		0			(103	)		0			(125	)
Net amounts of derivatives	$	342		$	(579	)	$	267		$	(724	)
Reported as
Short-term investments	$	6		$	0		$	6		$	0
Other current assets		327			0			245			0
Other long-term assets		9			0			16			0
Other current liabilities		0			(259	)		0			(341	)
Other long-term liabilities		0			(320	)		0			(383	)
Total	$	342		$	(579	)	$	267		$	(724	)

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

(In millions)	Level 1			Level 2		Level 3		Total
September 30, 2023
Derivative assets	$	2	$	629		$	5	$	636
Derivative liabilities		0		(772	)		0		(772	)
June 30, 2023
Derivative assets		0		462			7		469
Derivative liabilities		0		(805	)		0		(805	)

Gains (Losses) on Derivative Instruments

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

(In millions)
Three Months Ended September 30,		2023			2022
Designated as Fair Value Hedging Instruments
Interest rate contracts
Derivatives	$	(16	)	$	(43	)
Hedged items		3			43
Designated as Cash Flow Hedging Instruments
Foreign exchange contracts
Amount reclassified from accumulated other comprehensive loss		(46	)		(59	)
Not Designated as Hedging Instruments
Foreign exchange contracts		206			240
Equity contracts		113			12
Other contracts		(33	)		(10	)

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 September 30,	2023			2022
Designated as Cash Flow Hedging Instruments
Foreign exchange contracts
Included in effectiveness assessment	$	(15	)	$	(40	)