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DERIVATIVES (Tables) | 12 Months Ended
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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 |

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