DERIVATIVES (Tables)

12 Months Ended

Jun. 30, 2021

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, 2021		June 30, 2020
Designated as Hedging Instruments
Foreign exchange contracts purchased	$	635	$	635
Foreign exchange contracts sold		6,081		6,754
Interest rate contracts purchased		1,247		1,295
Not Designated as Hedging Instruments
Foreign exchange contracts purchased		14,223		11,896
Foreign exchange contracts sold		23,391		15,595
Other contracts purchased		2,456		1,844
Other contracts sold		763		757

Fair Values of Derivative Instruments

The following table presents our derivative instruments:

	Derivative			Derivative				Derivative				Derivative
(In millions)	Assets			Liabilities				Assets				Liabilities
	June 30, 2021							June 30, 2020
Designated as Hedging Instruments
Foreign exchange contracts	$	76			$	(8	)		$	44			$	(54	)
Interest rate contracts		40				0				93				0
Not Designated as Hedging Instruments
Foreign exchange contracts		227				(291	)			245				(334	)
Other contracts		56				(36	)			18				(11	)
Gross amounts of derivatives		399				(335	)			400				(399	)
Gross amounts of derivatives offset in the balance sheet		(141	)			142				(154	)			158
Cash collateral received		0				(42	)			0				(154	)
Net amounts of derivatives	$	258			$	(235	)		$	246			$	(395	)
Reported as
Short-term investments	$	78			$	0			$	35			$	0
Other current assets		137				0				199				0
Other long-term assets		43				0				12				0
Other current liabilities		0				(182	)			0				(334	)
Other long-term liabilities		0				(53	)			0				(61	)
Total	$	258			$	(235	)		$	246			$	(395	)

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, 2021
Derivative assets	$	0	$	396		$	3	$	399
Derivative liabilities		0		(335	)		0		(335	)
June 30, 2020
Derivative assets		1		398			1		400
Derivative liabilities		0		(399	)		0		(399	)

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,	2021					2020					2019
	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	$	193			$	0	$	1		$	0		$	(130	)
Hedged items		0		(188	)			0		3			0			130
Excluded from effectiveness assessment		0		30				0		139			0			168
Interest rate contracts
Derivatives		0		(37	)			0		93			0			0
Hedged items		0		53				0		(93	)		0			0
Designated as Cash Flow Hedging Instruments
Foreign exchange contracts
Amount reclassified from accumulated other comprehensive income		0		17				0		0			341			0
Excluded from effectiveness assessment		0		0				0		0			(64	)		0
Not Designated as Hedging Instruments
Foreign exchange contracts		0		27				0		(123	)		0			(97	)
Other contracts		0		9				0		50			0			38

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,	2021		2020			2019
Designated as Cash Flow Hedging Instruments
Foreign exchange contracts
Included in effectiveness assessment	$	34	$	(38	)	$	159