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DERIVATIVES (Tables) | 3 Months Ended
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Sep. 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) |  |  |  |  |  |
|  | September 30, 2020 |  |  | June 30, 2020 |
Designated as Hedging Instruments |  |  |  |  |  |  |  |
Foreign exchange contracts purchased |  | $ | 635 |  |  | $ | 635 |
Foreign exchange contracts sold |  |  | 6,844 |  |  |  | 6,754 |
Interest rate contracts purchased |  |  | 1,292 |  |  |  | 1,295 |
Not Designated as Hedging Instruments |  |  |  |  |  |  |  |
Foreign exchange contracts purchased |  |  | 11,935 |  |  |  | 11,896 |
Foreign exchange contracts sold |  |  | 10,903 |  |  |  | 15,595 |
Other contracts purchased |  |  | 2,202 |  |  |  | 1,844 |
Other contracts sold |  |  | 749 |  |  |  | 757 |
Fair Values of Derivative Instruments | The following table presents our derivative instruments:
|  | Derivative |  |  |  | Derivative |  |  | Derivative |  |  | Derivative |
(In millions) |  | Assets |  |  |  | Liabilities |  |  | Assets |  |  | Liabilities |
|  | September 30, 2020 |  |  | June 30, 2020 |
Designated as Hedging Instruments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign exchange contracts |  | $ | 16 |  |  | $ | (67 | ) |  | $ | 44 |  |  | $ | (54 | )
Interest rate contracts |  |  | 89 |  |  |  | 0 |  |  |  | 93 |  |  |  | 0 |
Not Designated as Hedging Instruments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign exchange contracts |  |  | 165 |  |  |  | (247 | ) |  |  | 245 |  |  |  | (334 | )
Other contracts |  |  | 6 |  |  |  | (27 | ) |  |  | 18 |  |  |  | (11 | )
Gross amounts of derivatives |  |  | 276 |  |  |  | (341 | ) |  |  | 400 |  |  |  | (399 | )
Gross amounts of derivatives offset in the balance sheet |  |  | (74 | ) |  |  | 76 |  |  |  | (154 | ) |  |  | 158 |
Cash collateral received |  |  | 0 |  |  |  | (58 | ) |  |  | 0 |  |  |  | (154 | )
Net amounts of derivatives |  | $ | 202 |  |  | $ | (323 | ) |  | $ | 246 |  |  | $ | (395 | )
Reported as |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Short-term investments |  | $ | 28 |  |  | $ | 0 |  |  | $ | 35 |  |  | $ | 0 |
Other current assets |  |  | 81 |  |  |  | 0 |  |  |  | 199 |  |  |  | 0 |
Other long-term assets |  |  | 93 |  |  |  | 0 |  |  |  | 12 |  |  |  | 0 |
Other current liabilities |  |  | 0 |  |  |  | (232 | ) |  |  | 0 |  |  |  | (334 | )
Other long-term liabilities |  |  | 0 |  |  |  | (91 | ) |  |  | 0 |  |  |  | (61 | )
Total |  | $ | 202 |  |  | $ | (323 | ) |  | $ | 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 |
September 30, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Derivative assets |  | $ | 0 |  |  | $ | 275 |  |  | $ | 1 |  |  | $ | 276 |
Derivative liabilities |  |  | 0 |  |  |  | (341 | ) |  |  | 0 |  |  |  | (341 | )
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) |  | Revenue |  |  | Other Income (Expense), Net |  |  | Revenue |  |  | Other Income (Expense), Net |
Three Months Ended September 30, |  | 2020 |  |  | 2019 |
Designated as Fair Value Hedging Instruments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign exchange contracts |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Derivatives |  | $ | 0 |  |  | $ | (169 | ) |  | $ | 0 |  |  | $ | 30 |
Hedged items |  |  | 0 |  |  |  | 168 |  |  |  | 0 |  |  |  | (33 | )
Excluded from effectiveness assessment |  |  | 0 |  |  |  | 8 |  |  |  | 0 |  |  |  | 41 |
Interest rate contracts |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Derivatives |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 1 |
Hedged items |  |  | 0 |  |  |  | 4 |  |  |  | 0 |  |  |  | (1 | )
Designated as Cash Flow Hedging Instruments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign exchange contracts |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Amount reclassified from accumulated other comprehensive income |  |  | 0 |  |  |  | 20 |  |  |  | 0 |  |  |  | (5 | )
Excluded from effectiveness assessment |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
Not Designated as Hedging Instruments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign exchange contracts |  |  | 0 |  |  |  | 58 |  |  |  | 0 |  |  |  | (171 | )
Other contracts |  |  | 0 |  |  |  | 4 |  |  |  | 0 |  |  |  | 1 |
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 September 30, |  | 2020 |  |  | 2019 |
Designated as Cash Flow Hedging Instruments |  |  |  |  |  |  |  |
Foreign exchange contracts |  |  |  |  |  |  |  |
Included in effectiveness assessment |  | $ | 20 |  |  | $ | (6 | )

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