DERIVATIVES (Tables)

12 Months Ended

Jun. 30, 2020

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)	June 30, 2020		June 30, 2019
Designated as Hedging Instruments
Foreign exchange contracts purchased	$	635	$	0
Foreign exchange contracts sold		6,754		6,034
Interest rate contracts purchased		1,295		0
Not Designated as Hedging Instruments
Foreign exchange contracts purchased		11,896		14,889
Foreign exchange contracts sold		15,595		15,614
Other contracts purchased		1,844		2,007
Other contracts sold		757		456

Fair Values of Derivative Instruments

The following table presents our derivative instruments:

	Derivative			Derivative				Derivative				Derivative
(In millions)	Assets			Liabilities				Assets				Liabilities
	June 30, 2020							June 30, 2019
Designated as Hedging Instruments
Foreign exchange contracts	$	44			$	(54	)		$	0			$	(93	)
Interest rate contracts		93				0				0				0
Not Designated as Hedging Instruments
Foreign exchange contracts		245				(334	)			204				(172	)
Other contracts		18				(11	)			46				(7	)
Gross amounts of derivatives		400				(399	)			250				(272	)
Gross amounts of derivatives offset in the balance sheet		(154	)			158				(113	)			114
Cash collateral received		0				(154	)			0				(78	)
Net amounts of derivatives	$	246			$	(395	)		$	137			$	(236	)
Reported as
Short-term investments	$	35			$	0			$	(13	)		$	0
Other current assets		199				0				146				0
Other long-term assets		12				0				4				0
Other current liabilities		0				(334	)			0				(221	)
Other long-term liabilities		0				(61	)			0				(15	)
Total	$	246			$	(395	)		$	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
June 30, 2020
Derivative assets	$	1	$	398		$	1	$	400
Derivative liabilities		0		(399	)		0		(399	)
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)
Year Ended June 30,	2020					2019						2018
	Revenue		Other Income (Expense), Net				Revenue			Other Income (Expense), Net			Revenue			Other Income (Expense), Net
Designated as Fair Value Hedging Instruments
Foreign exchange contracts
Derivatives	$	0	$	1			$	0		$	(130	)	$	0		$	(78	)
Hedged items		0		3				0			130			0			78
Excluded from effectiveness assessment		0		139				0			168			0			103
Interest rate contracts
Derivatives		0		93				0			0			0			0
Hedged items		0		(93	)			0			0			0			0
Equity contracts
Derivatives		0		0				0			0			0			(324	)
Hedged items		0		0				0			0			0			324
Excluded from effectiveness assessment		0		0				0			0			0			80
Designated as Cash Flow Hedging Instruments
Foreign exchange contracts
Amount reclassified from accumulated other comprehensive income		0		0				341			0			185			0
Excluded from effectiveness assessment		0		0				(64	)		0			(255	)		0
Not Designated as Hedging Instruments
Foreign exchange contracts		0		(123	)			0			(97	)		0			(33	)
Other contracts		0		50				0			38			0			(104	)

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)
Year Ended June 30,	2020			2019		2018
Designated as Cash Flow Hedging Instruments
Foreign exchange contracts
Included in effectiveness assessment	$	(38	)	$	159	$	219