v3.25.4

DERIVATIVES (Tables)

6 Months Ended

Dec. 31, 2025

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, 2025				June 30, 2025
Designated as Hedging Instruments
Foreign exchange contracts purchased		$	1,492			$	1,492
Interest rate contracts purchased			1,166				1,150
Not Designated as Hedging Instruments
Foreign exchange contracts purchased			8,884				15,214
Foreign exchange contracts sold			43,710				43,307
Equity contracts purchased			4,943				5,434
Equity contracts sold			2,189				2,189
Other contracts purchased			2,578				2,769
Other contracts sold			878				1,242

Fair Values of Derivative Instruments

The following table presents our derivative instruments:

(In millions)		Derivative Assets					Derivative Liabilities			Derivative Assets				Derivative Liabilities
		December 31, 2025								June 30, 2025
Designated as Hedging Instruments
Foreign exchange contracts		$	78			$	(53	)		$	89			$	(44	)
Interest rate contracts			14				0				15				0
Not Designated as Hedging Instruments
Foreign exchange contracts			173				(438	)			248				(809	)
Equity contracts			43				(407	)			385				(983	)
Other contracts			12				(9	)			21				(1	)
Gross amounts of derivatives			320				(907	)			758				(1,837	)
Gross amounts of derivatives offset in the balance sheets			(196	)			197				(258	)			260
Cash collateral received			0				(73	)			0				(99	)
Net amounts of derivatives		$	124			$	(783	)		$	500			$	(1,676	)
Reported as
Short-term investments		$	6			$	0			$	10			$	0
Other current assets			104				0				201				0
Equity and other investments			0				0				272				0
Other long-term assets			14				0				17				0
Other current liabilities			0				(715	)			0				(1,639	)
Other long-term liabilities			0				(68	)			0				(37	)
Total		$	124			$	(783	)		$	500			$	(1,676	)

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, 2025
Derivative assets		$	0			$	314			$	6			$	320
Derivative liabilities			0				(907	)			0				(907	)
June 30, 2025
Derivative assets			1				474				283				758
Derivative liabilities			0				(1,832	)			(5	)			(1,837	)

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,
			2025				2024				2025				2024
Designated as Fair Value Hedging Instruments
Interest rate contracts
Derivatives		$	(1	)		$	(18	)		$	(2	)		$	2
Hedged items			(7	)			8				(15	)			(24	)
Designated as Cash Flow Hedging Instruments
Foreign exchange contracts
Amount reclassified from accumulated other comprehensive loss			(7	)			(106	)			(12	)			(57	)
Not Designated as Hedging Instruments
Foreign exchange contracts			(54	)			1,138				327				755
Equity contracts			31				(111	)			1610				(459	)
Other contracts			6				(26	)			6				(2	)

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,
		2025				2024				2025				2024
Designated as Cash Flow Hedging Instruments
Foreign exchange contracts
Included in effectiveness assessment		$	(9	)		$	(50	)		$	(16	)		$	(21	)

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