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DERIVATIVES (Tables) | 6 Months Ended
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Dec. 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) |  | December 31, 2021 |  |  | June 30, 2021 |
Designated as Hedging Instruments |  |  |  |  |  |  |  |
Foreign exchange contracts purchased |  | $ | 635 |  |  | $ | 635 |
Foreign exchange contracts sold |  |  | 0 |  |  |  | 6,081 |
Interest rate contracts purchased |  |  | 1,224 |  |  |  | 1,247 |
Not Designated as Hedging Instruments |  |  |  |  |  |  |  |
Foreign exchange contracts purchased |  |  | 7,956 |  |  |  | 14,223 |
Foreign exchange contracts sold |  |  | 18,931 |  |  |  | 23,391 |
Other contracts purchased |  |  | 3,126 |  |  |  | 2,456 |
Other contracts sold |  |  | 664 |  |  |  | 763 |
Fair Values of Derivative Instruments | The following table presents our derivative instruments:
|  | Derivative |  |  |  | Derivative |  |  | Derivative |  |  | Derivative |
(In millions) |  | Assets |  |  |  | Liabilities |  |  | Assets |  |  | Liabilities |
|  | December 31, 2021 |  |  | June 30, 2021 |
Designated as Hedging Instruments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign exchange contracts |  | $ | 0 |  |  | $ | (33 | ) |  | $ | 76 |  |  | $ | (8 | )
Interest rate contracts |  |  | 18 |  |  |  | 0 |  |  |  | 40 |  |  |  | 0 |
Not Designated as Hedging Instruments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign exchange contracts |  |  | 241 |  |  |  | (187 | ) |  |  | 227 |  |  |  | (291 | )
Other contracts |  |  | 101 |  |  |  | (18 | ) |  |  | 56 |  |  |  | (36 | )
Gross amounts of derivatives |  |  | 360 |  |  |  | (238 | ) |  |  | 399 |  |  |  | (335 | )
Gross amounts of derivatives offset in the balance sheet |  |  | (64 | ) |  |  | 65 |  |  |  | (141 | ) |  |  | 142 |
Cash collateral received |  |  | 0 |  |  |  | (100 | ) |  |  | 0 |  |  |  | (42 | )
Net amounts of derivatives |  | $ | 296 |  |  | $ | (273 | ) |  | $ | 258 |  |  | $ | (235 | )
Reported as |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Short-term investments |  | $ | 21 |  |  | $ | 0 |  |  | $ | 78 |  |  | $ | 0 |
Other current assets |  |  | 253 |  |  |  | 0 |  |  |  | 137 |  |  |  | 0 |
Other long-term assets |  |  | 22 |  |  |  | 0 |  |  |  | 43 |  |  |  | 0 |
Other current liabilities |  |  | 0 |  |  |  | (160 | ) |  |  | 0 |  |  |  | (182 | )
Other long-term liabilities |  |  | 0 |  |  |  | (113 | ) |  |  | 0 |  |  |  | (53 | )
Total |  | $ | 296 |  |  | $ | (273 | ) |  | $ | 258 |  |  | $ | (235 | )
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, 2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Derivative assets |  | $ | 0 |  |  | $ | 347 |  |  | $ | 13 |  |  | $ | 360 |
Derivative liabilities |  |  | 0 |  |  |  | (238 | ) |  |  | 0 |  |  |  | (238 | )
June 30, 2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Derivative assets |  |  | 0 |  |  |  | 396 |  |  |  | 3 |  |  |  | 399 |
Derivative liabilities |  |  | 0 |  |  |  | (335 | ) |  |  | 0 |  |  |  | (335 | )
Gains (Losses) on Derivative Instruments | Gains (losses) on derivative instruments recognized in other income (expense), net were as follows:
(In millions) |  | Three Months Ended December 31, |  |  |  | Six Months Ended December 31, |
|  |  | 2021 |  |  |  | 2020 |  |  |  | 2021 |  |  |  | 2020 |
Designated as Fair Value Hedging Instruments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign exchange contracts |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Derivatives |  | $ | 46 |  |  | $ | (124 | ) |  | $ | 49 |  |  | $ | (293 | )
Hedged items |  |  | (45 | ) |  |  | 125 |  |  |  | (50 | ) |  |  | 293 |
Excluded from effectiveness assessment |  |  | 0 |  |  |  | 10 |  |  |  | 4 |  |  |  | 18 |
Interest rate contracts |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Derivatives |  |  | (11 | ) |  |  | (9 | ) |  |  | (14 | ) |  |  | (9 | )
Hedged items |  |  | 15 |  |  |  | 12 |  |  |  | 22 |  |  |  | 16 |
Designated as Cash Flow Hedging Instruments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign exchange contracts |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Amount reclassified from accumulated other comprehensive income |  |  | (14 | ) |  |  | 21 |  |  |  | (29 | ) |  |  | 41 |
Not Designated as Hedging Instruments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign exchange contracts |  |  | 96 |  |  |  | 139 |  |  |  | 273 |  |  |  | 197 |
Other contracts |  |  | 6 |  |  |  | 3 |  |  |  | (12 | ) |  |  | 7 |
Cash Flow Hedges | Other Comprehensive Income (Loss) |
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, |
|  | 2021 |  |  | 2020 |  |  |  | 2021 |  |  |  | 2020 |
Designated as Cash Flow Hedging Instruments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign exchange contracts |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Included in effectiveness assessment |  | $ | (11 | ) |  | $ | 25 |  |  | $ | (21 | ) |  | $ | 45 |

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