DERIVATIVES (Tables)

12 Months Ended

Jun. 30, 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)	June 30, 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		1,139		1,247
Not Designated as Hedging Instruments
Foreign exchange contracts purchased		10,322		14,223
Foreign exchange contracts sold		21,606		23,391
Other contracts purchased		2,773		2,456
Other contracts sold		544		763

Fair Values of Derivative Instruments

The following table presents our derivative instruments:

	Derivative			Derivative				Derivative				Derivative
(In millions)	Assets			Liabilities				Assets				Liabilities
	June 30, 2022							June 30, 2021
Designated as Hedging Instruments
Foreign exchange contracts	$	0			$	(77	)		$	76			$	(8	)
Interest rate contracts		3				0				40				0
Not Designated as Hedging Instruments
Foreign exchange contracts		333				(362	)			227				(291	)
Other contracts		20				(112	)			56				(36	)
Gross amounts of derivatives		356				(551	)			399				(335	)
Gross amounts of derivatives offset in the balance sheet		(130	)			133				(141	)			142
Cash collateral received		0				(75	)			0				(42	)
Net amounts of derivatives	$	226			$	(493	)		$	258			$	(235	)
Reported as
Short-term investments	$	8			$	0			$	78			$	0
Other current assets		218				0				137				0
Other long-term assets		0				0				43				0
Other current liabilities		0				(298	)			0				(182	)
Other long-term liabilities		0				(195	)			0				(53	)
Total	$	226			$	(493	)		$	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
June 30, 2022
Derivative assets	$	1	$	349		$	6	$	356
Derivative liabilities		0		(551	)		0		(551	)
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)
Year Ended June 30,	2022			2021			2020
Designated as Fair Value Hedging Instruments
Foreign exchange contracts
Derivatives	$	49		$	193		$	1
Hedged items		(50	)		(188	)		3
Excluded from effectiveness assessment		4			30			139
Interest rate contracts
Derivatives		(92	)		(37	)		93
Hedged items		108			53			(93	)
Designated as Cash Flow Hedging Instruments
Foreign exchange contracts
Amount reclassified from accumulated other comprehensive income		(79	)		17			0
Not Designated as Hedging Instruments
Foreign exchange contracts		383			27			(123	)
Other contracts		(72	)		9			50

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)
Year Ended June 30,	2022			2021		2020
Designated as Cash Flow Hedging Instruments
Foreign exchange contracts
Included in effectiveness assessment	$	(57	)	$	34	$	(38	)