DERIVATIVES (Tables)

3 Months Ended

Sep. 30, 2019

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, 2019		June 30, 2019
Designated as Hedging Instruments
Foreign exchange contracts purchased	$	239	$	0
Foreign exchange contracts sold		6,018		6,034
Interest rate contracts purchased		401		0
Not Designated as Hedging Instruments
Foreign exchange contracts purchased		11,715		14,889
Foreign exchange contracts sold		9,082		15,614
Other contracts purchased		1,882		2,007
Other contracts sold		470		456

Fair Values of Derivative Instruments

The following table presents our derivative instruments:

	Derivative				Derivative		Derivative			Derivative
(In millions)	Assets				Liabilities		Assets			Liabilities
	September 30, 2019						June 30, 2019
Designated as Hedging Instruments
Foreign exchange contracts	$	47		$	(9	)	$	0		$	(93	)
Interest rate contracts		2			(1	)		0			0
Not Designated as Hedging Instruments
Foreign exchange contracts		122			(295	)		204			(172	)
Other contracts		10			(19	)		46			(7	)
Gross amounts of derivatives		181			(324	)		250			(272	)
Gross amounts of derivatives offset in the balance sheet		(121	)		122			(113	)		114
Cash collateral received		0			(5	)		0			(78	)
Net amounts of derivatives	$	60		$	(207	)	$	137		$	(236	)
Reported as
Short-term investments	$	27		$	0		$	(13	)	$	0
Other current assets		33			0			146			0
Other long-term assets		0			0			4			0
Other current liabilities		0			(151	)		0			(221	)
Other long-term liabilities		0			(56	)		0			(15	)
Total	$	60		$	(207	)	$	137		$	(236	)

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, 2019
Derivative assets	$	0	$	178		$	3	$	181
Derivative liabilities		0		(324	)		0		(324	)
June 30, 2019
Derivative assets		0		247			3		250
Derivative liabilities		0		(272	)		0		(272	)

Gains (Losses) on Derivative Instruments

Gains (losses) on derivative instruments recognized in our consolidated income statements were as follows:

(In millions)	Revenue			Other Income (Expense), Net		Revenue		Other Income (Expense), Net
Three Months Ended September 30,		2019					2018
Designated as Fair Value Hedging Instruments
Foreign Exchange Contracts
Derivatives	$	0	$	30		$	0	$	122
Hedged items		0		(33	)		0		(122	)
Excluded from effectiveness assessment		0		41			0		28
Interest Rate Contracts
Derivatives		0		1			0		0
Hedged items		0		(1	)		0		0
Designated as Cash Flow Hedging Instruments
Foreign Exchange Contracts
Amount reclassified from accumulated other comprehensive income		0		(5	)		92		0
Excluded from effectiveness assessment		0		0			0		(27	)
Not Designated as Hedging Instruments
Foreign exchange contracts		0		(171	)		0		(30	)
Other contracts		0		1			0		(3	)

Cash Flow Hedges | Other Comprehensive Income

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,	2019			2018
Designated as Cash Flow Hedging Instruments
Foreign exchange contracts
Included in effectiveness assessment	$	(6	)	$	44