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DERIVATIVES (Tables) | 6 Months Ended
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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 | )

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