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DERIVATIVES (Tables) | 6 Months Ended
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Dec. 31, 2022
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, 2022 |  |  | June 30, 2022 |
Designated as Hedging Instruments |  |  |  |  |  |  |  |
Foreign exchange contracts purchased |  | $ | 1,492 |  |  | $ | 635 |
Interest rate contracts purchased |  |  | 1,089 |  |  |  | 1,139 |
Not Designated as Hedging Instruments |  |  |  |  |  |  |  |
Foreign exchange contracts purchased |  |  | 7,042 |  |  |  | 10,322 |
Foreign exchange contracts sold |  |  | 17,653 |  |  |  | 21,606 |
Other contracts purchased |  |  | 4,803 |  |  |  | 2,773 |
Other contracts sold |  |  | 1,023 |  |  |  | 544 |
Fair Values of Derivative Instruments | The following table presents our derivative instruments:
|  | Derivative |  |  |  | Derivative |  |  | Derivative |  |  | Derivative |
(In millions) |  | Assets |  |  |  | Liabilities |  |  | Assets |  |  | Liabilities |
|  | December 31, 2022 |  |  | June 30, 2022 |
Designated as Hedging Instruments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign exchange contracts |  | $ | 13 |  |  | $ | (79 | ) |  | $ | 0 |  |  | $ | (77 | )
Interest rate contracts |  |  | 0 |  |  |  | (3 | ) |  |  | 3 |  |  |  | 0 |
Not Designated as Hedging Instruments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign exchange contracts |  |  | 195 |  |  |  | (599 | ) |  |  | 333 |  |  |  | (362 | )
Other contracts |  |  | 41 |  |  |  | (305 | ) |  |  | 20 |  |  |  | (112 | )
Gross amounts of derivatives |  |  | 249 |  |  |  | (986 | ) |  |  | 356 |  |  |  | (551 | )
Gross amounts of derivatives offset in the balance sheet |  |  | (203 | ) |  |  | 206 |  |  |  | (130 | ) |  |  | 133 |
Cash collateral received |  |  | 0 |  |  |  | (12 | ) |  |  | 0 |  |  |  | (75 | )
Net amounts of derivatives |  | $ | 46 |  |  | $ | (792 | ) |  | $ | 226 |  |  | $ | (493 | )
Reported as |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Short-term investments |  | $ | 13 |  |  | $ | 0 |  |  | $ | 8 |  |  | $ | 0 |
Other current assets |  |  | 27 |  |  |  | 0 |  |  |  | 218 |  |  |  | 0 |
Other long-term assets |  |  | 6 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
Other current liabilities |  |  | 0 |  |  |  | (607 | ) |  |  | 0 |  |  |  | (298 | )
Other long-term liabilities |  |  | 0 |  |  |  | (185 | ) |  |  | 0 |  |  |  | (195 | )
Total |  | $ | 46 |  |  | $ | (792 | ) |  | $ | 226 |  |  | $ | (493 | )
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, 2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Derivative assets |  | $ | 0 |  |  | $ | 241 |  |  | $ | 8 |  |  | $ | 249 |
Derivative liabilities |  |  | 0 |  |  |  | (986 | ) |  |  | 0 |  |  |  | (986 | )
June 30, 2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Derivative assets |  |  | 1 |  |  |  | 349 |  |  |  | 6 |  |  |  | 356 |
Derivative liabilities |  |  | 0 |  |  |  | (551 | ) |  |  | 0 |  |  |  | (551 | )
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, |
|  |  | 2022 |  |  |  | 2021 |  |  |  | 2022 |  |  |  | 2021 |
Designated as Fair Value Hedging Instruments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign exchange contracts |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Derivatives |  | $ | 0 |  |  | $ | 46 |  |  | $ | 0 |  |  | $ | 49 |
Hedged items |  |  | 0 |  |  |  | (45 | ) |  |  | 0 |  |  |  | (50 | )
Excluded from effectiveness assessment |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 4 |
Interest rate contracts |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Derivatives |  |  | 5 |  |  |  | (11 | ) |  |  | (38 | ) |  |  | (14 | )
Hedged items |  |  | (8 | ) |  |  | 15 |  |  |  | 35 |  |  |  | 22 |
Designated as Cash Flow Hedging Instruments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign exchange contracts |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Amount reclassified from accumulated other comprehensive income (loss) |  |  | 103 |  |  |  | (14 | ) |  |  | 44 |  |  |  | (29 | )
Not Designated as Hedging Instruments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign exchange contracts |  |  | (250 | ) |  |  | 96 |  |  |  | (10 | ) |  |  | 273 |
Other contracts |  |  | (206 | ) |  |  | 6 |  |  |  | (204 | ) |  |  | (12 | )
Cash Flow Hedges | Other Comprehensive Income (Loss) |
Gains (Losses) on Derivative Instruments | 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, |
|  | 2022 |  |  | 2021 |  |  |  | 2022 |  |  |  | 2021 |
Designated as Cash Flow Hedging Instruments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign exchange contracts |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Included in effectiveness assessment |  | $ | 49 |  |  | $ | (11 | ) |  | $ | 9 |  |  | $ | (21 | )

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