DERIVATIVES (Tables)

3 Months Ended

Sep. 30, 2024

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, 2024		June 30, 2024
Designated as Hedging Instruments
Foreign exchange contracts purchased	$	1,492	$	1,492
Interest rate contracts purchased		1,144		1,100
Not Designated as Hedging Instruments
Foreign exchange contracts purchased		8,438		7,167
Foreign exchange contracts sold		22,559		31,793
Equity contracts purchased		4,290		4,016
Equity contracts sold		2,165		2,165
Other contracts purchased		2,829		2,113
Other contracts sold		1,121		811

Fair Values of Derivative Instruments

The following table presents our derivative instruments:

(In millions)	Derivative Assets				Derivative Liabilities		Derivative Assets			Derivative Liabilities
	September 30, 2024						June 30, 2024
Designated as Hedging Instruments
Foreign exchange contracts	$	50		$	(65	)	$	24		$	(76	)
Interest rate contracts		5			0			19			0
Not Designated as Hedging Instruments
Foreign exchange contracts		189			(615	)		213			(230	)
Equity contracts		68			(804	)		63			(491	)
Other contracts		6			(6	)		12			(3	)
Gross amounts of derivatives		318			(1,490	)		331			(800	)
Gross amounts of derivatives offset in the balance sheets		(196	)		198			(151	)		152
Cash collateral received		0			(18	)		0			(104	)
Net amounts of derivatives	$	122		$	(1,310	)	$	180		$	(752	)
Reported as
Short-term investments	$	(1	)	$	0		$	12		$	0
Other current assets		118			0			149			0
Other long-term assets		5			0			19			0
Other current liabilities		0			(900	)		0			(401	)
Other long-term liabilities		0			(410	)		0			(351	)
Total	$	122		$	(1,310	)	$	180		$	(752	)

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, 2024
Derivative assets	$	0		$	313		$	5	$	318
Derivative liabilities		(1	)		(1,489	)		0		(1,490	)
June 30, 2024
Derivative assets		0			327			4		331
Derivative liabilities		(1	)		(799	)		0		(800	)

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,		2024			2023
Designated as Fair Value Hedging Instruments
Interest rate contracts
Derivatives	$	20		$	(16	)
Hedged items		(32	)		3
Designated as Cash Flow Hedging Instruments
Foreign exchange contracts
Amount reclassified from accumulated other comprehensive loss		49			(46	)
Not Designated as Hedging Instruments
Foreign exchange contracts		(383	)		206
Equity contracts		(348	)		113
Other contracts		24			(33	)

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,	2024		2023
Designated as Cash Flow Hedging Instruments
Foreign exchange contracts
Included in effectiveness assessment	$	29	$	(15	)