DERIVATIVES (Tables)

6 Months Ended

Dec. 31, 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)
	December 31, 2020		June 30, 2020
Designated as Hedging Instruments
Foreign exchange contracts purchased	$	635	$	635
Foreign exchange contracts sold		6,953		6,754
Interest rate contracts purchased		1,283		1,295
Not Designated as Hedging Instruments
Foreign exchange contracts purchased		11,247		11,896
Foreign exchange contracts sold		14,598		15,595
Other contracts purchased		2,350		1,844
Other contracts sold		745		757

Fair Values of Derivative Instruments

The following table presents our derivative instruments:

	Derivative				Derivative		Derivative			Derivative
(In millions)	Assets				Liabilities		Assets			Liabilities
	December 31, 2020						June 30, 2020
Designated as Hedging Instruments
Foreign exchange contracts	$	14		$	(72	)	$	44		$	(54	)
Interest rate contracts		77			0			93			0
Not Designated as Hedging Instruments
Foreign exchange contracts		409			(463	)		245			(334	)
Other contracts		44			(9	)		18			(11	)
Gross amounts of derivatives		544			(544	)		400			(399	)
Gross amounts of derivatives offset in the balance sheet		(157	)		158			(154	)		158
Cash collateral received		0			(288	)		0			(154	)
Net amounts of derivatives	$	387		$	(674	)	$	246		$	(395	)
Reported as
Short-term investments	$	(21	)	$	0		$	35		$	0
Other current assets		320			0			199			0
Other long-term assets		88			0			12			0
Other current liabilities		0			(648	)		0			(334	)
Other long-term liabilities		0			(26	)		0			(61	)
Total	$	387		$	(674	)	$	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
December 31, 2020
Derivative assets	$	1	$	542		$	1	$	544
Derivative liabilities		0		(544	)		0		(544	)
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:

	Three Months Ended December 31,										Six Months Ended December 31,
	2020					2019					2020					2019
(In millions)	Revenue		Other Income (Expense), Net			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	$	(124	)	$	0	$	23		$	0	$	(293	)	$	0	$	53
Hedged items		0		125			0		(26	)		0		293			0		(59	)
Excluded from effectiveness assessment		0		10			0		42			0		18			0		83
Interest rate contracts
Derivatives		0		(9	)		0		(14	)		0		(9	)		0		(13	)
Hedged items		0		12			0		13			0		16			0		12
Designated as Cash Flow Hedging Instruments
Foreign exchange contracts
Amount reclassified from accumulated other comprehensive income		0		21			0		8			0		41			0		3
Excluded from effectiveness assessment		0		0			0		0			0		0			0		0
Not Designated as Hedging Instruments
Foreign exchange contracts		0		139			0		52			0		197			0		(119	)
Other contracts		0		3			0		1			0		7			0		2

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 December 31,				Six Months Ended December 31,
	2020		2019			2020		2019
Designated as Cash Flow Hedging Instruments
Foreign exchange contracts
Included in effectiveness assessment	$	25	$	2	$	45	$	(4	)