DERIVATIVES (Tables)

9 Months Ended

Mar. 31, 2022

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)	March 31, 2022		June 30, 2021
Designated as Hedging Instruments
Foreign exchange contracts purchased	$	635	$	635
Foreign exchange contracts sold		0		6,081
Interest rate contracts purchased		1,160		1,247
Not Designated as Hedging Instruments
Foreign exchange contracts purchased		8,151		14,223
Foreign exchange contracts sold		13,929		23,391
Other contracts purchased		2,757		2,456
Other contracts sold		869		763

Fair Values of Derivative Instruments

The following table presents our derivative instruments:

	Derivative				Derivative		Derivative			Derivative
(In millions)	Assets				Liabilities		Assets			Liabilities
	March 31, 2022						June 30, 2021
Designated as Hedging Instruments
Foreign exchange contracts	$	0		$	(39	)	$	76		$	(8	)
Interest rate contracts		0			(43	)		40			0
Not Designated as Hedging Instruments
Foreign exchange contracts		234			(322	)		227			(291	)
Other contracts		96			(25	)		56			(36	)
Gross amounts of derivatives		330			(429	)		399			(335	)
Gross amounts of derivatives offset in the balance sheet		(175	)		177			(141	)		142
Cash collateral received		0			(175	)		0			(42	)
Net amounts of derivatives	$	155		$	(427	)	$	258		$	(235	)
Reported as
Short-term investments	$	33		$	0		$	78		$	0
Other current assets		167			0			137			0
Other long-term assets		(45	)		0			43			0
Other current liabilities		0			(311	)		0			(182	)
Other long-term liabilities		0			(116	)		0			(53	)
Total	$	155		$	(427	)	$	258		$	(235	)

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

(In millions)	Level 1			Level 2		Level 3		Total
March 31, 2022
Derivative assets	$	0	$	314		$	16	$	330
Derivative liabilities		0		(429	)		0		(429	)
June 30, 2021
Derivative assets		0		396			3		399
Derivative liabilities		0		(335	)		0		(335	)

Gains (Losses) on Derivative Instruments

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

(In millions)	Three Months Ended March 31,							Nine Months Ended March 31,
		2022			2021			2022			2021
Designated as Fair Value Hedging Instruments
Foreign exchange contracts
Derivatives	$	0		$	482		$	49		$	189
Hedged items		0			(474	)		(50	)		(181	)
Excluded from effectiveness assessment		0			7			4			25
Interest rate contracts
Derivatives		(57	)		(41	)		(71	)		(50	)
Hedged items		61			46			83			62
Designated as Cash Flow Hedging Instruments
Foreign exchange contracts
Amount reclassified from accumulated other comprehensive income		(15	)		(26	)		(44	)		15
Not Designated as Hedging Instruments
Foreign exchange contracts		35			(130	)		308			67
Other contracts		(29	)		(17	)		(41	)		(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 March 31,							Nine Months Ended March 31,
	2022			2021				2022			2021
Designated as Cash Flow Hedging Instruments
Foreign exchange contracts
Included in effectiveness assessment	$	(6	)	$	(2	)	$	(27	)	$	43