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DERIVATIVES (Tables) | 9 Months Ended
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Mar. 31, 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) |  |  |  |  |  |
|  | March 31, 2021 |  |  | June 30, 2020 |
Designated as Hedging Instruments |  |  |  |  |  |  |  |
Foreign exchange contracts purchased |  | $ | 635 |  |  | $ | 635 |
Foreign exchange contracts sold |  |  | 6,868 |  |  |  | 6,754 |
Interest rate contracts purchased |  |  | 1,234 |  |  |  | 1,295 |
Not Designated as Hedging Instruments |  |  |  |  |  |  |  |
Foreign exchange contracts purchased |  |  | 12,469 |  |  |  | 11,896 |
Foreign exchange contracts sold |  |  | 14,306 |  |  |  | 15,595 |
Other contracts purchased |  |  | 2,411 |  |  |  | 1,844 |
Other contracts sold |  |  | 698 |  |  |  | 757 |
Fair Values of Derivative Instruments | The following table presents our derivative instruments:
|  | Derivative |  |  |  | Derivative |  |  | Derivative |  |  | Derivative |
(In millions) |  | Assets |  |  |  | Liabilities |  |  | Assets |  |  | Liabilities |
|  | March 31, 2021 |  |  | June 30, 2020 |
Designated as Hedging Instruments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign exchange contracts |  | $ | 314 |  |  | $ | (3 | ) |  | $ | 44 |  |  | $ | (54 | )
Interest rate contracts |  |  | 31 |  |  |  | 0 |  |  |  | 93 |  |  |  | 0 |
Not Designated as Hedging Instruments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign exchange contracts |  |  | 207 |  |  |  | (290 | ) |  |  | 245 |  |  |  | (334 | )
Other contracts |  |  | 29 |  |  |  | (17 | ) |  |  | 18 |  |  |  | (11 | )
Gross amounts of derivatives |  |  | 581 |  |  |  | (310 | ) |  |  | 400 |  |  |  | (399 | )
Gross amounts of derivatives offset in the balance sheet |  |  | (110 | ) |  |  | 110 |  |  |  | (154 | ) |  |  | 158 |
Cash collateral received |  |  | 0 |  |  |  | (281 | ) |  |  | 0 |  |  |  | (154 | )
Net amounts of derivatives |  | $ | 471 |  |  | $ | (481 | ) |  | $ | 246 |  |  | $ | (395 | )
Reported as |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Short-term investments |  | $ | 394 |  |  | $ | 0 |  |  | $ | 35 |  |  | $ | 0 |
Other current assets |  |  | 43 |  |  |  | 0 |  |  |  | 199 |  |  |  | 0 |
Other long-term assets |  |  | 34 |  |  |  | 0 |  |  |  | 12 |  |  |  | 0 |
Other current liabilities |  |  | 0 |  |  |  | (456 | ) |  |  | 0 |  |  |  | (334 | )
Other long-term liabilities |  |  | 0 |  |  |  | (25 | ) |  |  | 0 |  |  |  | (61 | )
Total |  | $ | 471 |  |  | $ | (481 | ) |  | $ | 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 |
March 31, 2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Derivative assets |  | $ | 0 |  |  | $ | 578 |  |  | $ | 3 |  |  | $ | 581 |
Derivative liabilities |  |  | 0 |  |  |  | (310 | ) |  |  | 0 |  |  |  | (310 | )
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 March 31, |  |  | Nine Months Ended March 31, |
|  | 2021 |  |  | 2020 |  |  | 2021 |  |  | 2020 |
(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 |  |  | $ | 482 |  |  | $ | 0 |  |  | $ | (23 | ) |  | $ | 0 |  |  | $ | 189 |  |  | $ | 0 |  |  | $ | 30 |
Hedged items |  |  | 0 |  |  |  | (474 | ) |  |  | 0 |  |  |  | 32 |  |  |  | 0 |  |  |  | (181 | ) |  |  | 0 |  |  |  | (27 | )
Excluded from effectiveness assessment |  |  | 0 |  |  |  | 7 |  |  |  | 0 |  |  |  | 35 |  |  |  | 0 |  |  |  | 25 |  |  |  | 0 |  |  |  | 118 |
Interest rate contracts |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Derivatives |  |  | 0 |  |  |  | (41 | ) |  |  | 0 |  |  |  | 91 |  |  |  | 0 |  |  |  | (50 | ) |  |  | 0 |  |  |  | 78 |
Hedged items |  |  | 0 |  |  |  | 46 |  |  |  | 0 |  |  |  | (92 | ) |  |  | 0 |  |  |  | 62 |  |  |  | 0 |  |  |  | (80 | )
Designated as Cash Flow Hedging Instruments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign exchange contracts |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Amount reclassified from accumulated other comprehensive income |  |  | 0 |  |  |  | (26 | ) |  |  | 0 |  |  |  | (12 | ) |  |  | 0 |  |  |  | 15 |  |  |  | 0 |  |  |  | (9 | )
Excluded from effectiveness assessment |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
Not Designated as Hedging Instruments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign exchange contracts |  |  | 0 |  |  |  | (130 | ) |  |  | 0 |  |  |  | (98 | ) |  |  | 0 |  |  |  | 67 |  |  |  | 0 |  |  |  | (217 | )
Other contracts |  |  | 0 |  |  |  | (17 | ) |  |  | 0 |  |  |  | 16 |  |  |  | 0 |  |  |  | (10 | ) |  |  | 0 |  |  |  | 18 |
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 March 31, |  |  | Nine Months Ended March 31, |  |
|  | 2021 |  |  | 2020 |  |  |  | 2021 |  |  |  | 2020 |  |
Designated as Cash Flow Hedging Instruments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign exchange contracts |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Included in effectiveness assessment |  | $ | (2 | ) |  | $ | (46 | ) |  | $ | 43 |  |  | $ | (50 | )

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