DERIVATIVES (Tables)

12 Months Ended

Jun. 30, 2019

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)	June 30, 2019		June 30, 2018


Designated as Hedging Instruments

Foreign exchange contracts sold	$	6,034	$	11,101

Not Designated as Hedging Instruments

Foreign exchange contracts purchased		14,889		9,425
Foreign exchange contracts sold		15,614		13,374
Equity contracts purchased		680		49
Equity contracts sold		5		5
Other contracts purchased		1,327		878
Other contracts sold		451		472

Fair Values of Derivative Instruments

The following table presents our derivative instruments:

	Derivative			Derivative				Derivative				Derivative
(In millions)	Assets			Liabilities				Assets				Liabilities


	June 30, 2019							June 30, 2018

Changes in Fair Value Recorded in Other Comprehensive Income

Designated as Hedging Instruments

Foreign exchange contracts	$	0			$	0			$	174			$	0

Changes in Fair Value Recorded in Net Income

Designated as Hedging Instruments

Foreign exchange contracts		0				(93	)			95				0

Not Designated as Hedging Instruments

Foreign exchange contracts		204				(172	)			256				(197	)
Equity contracts		38				0				2				(7	)
Other contracts		8				(7	)			11				(3	)


Gross amounts of derivatives		250				(272	)			538				(207	)
Gross amounts of derivatives offset in the balance sheet		(113	)			114				(152	)			153
Cash collateral received		0				(78	)			0				(235	)


Net amounts of derivatives	$	137			$	(236	)		$	386			$	(289	)

Reported as

Short-term investments	$	(13	)		$	0			$	104			$	0
Other current assets		146				0				260				0
Other long-term assets		4				0				22				0
Other current liabilities		0				(221	)			0				(288	)
Other long-term liabilities		0				(15	)			0				(1	)


Total	$	137			$	(236	)		$	386			$	(289	)

The following table presents the fair value of our derivatives instruments on a gross basis:

(In millions)	Level 1				Level 2		Level 3		Total


June 30, 2019

Derivative assets	$	0		$	247		$	3	$	250
Derivative liabilities		0			(272	)		0		(272	)

June 30, 2018

Derivative assets		1			535			2		538
Derivative liabilities		(1	)		(206	)		0		(207	)

Not Designated as Hedging Instruments

Gains (Losses) on Derivative Instruments

We recognized in other income (expense), net the following gains (losses) on derivatives not designated as hedging instruments:

(In millions)


Year Ended June 30,	2019			2018			2017

Foreign exchange contracts	$	(97	)	$	(33	)	$	(117	)
Equity contracts		3			(87	)		(114	)
Other contracts		35			(17	)		(3	)


Total	$	(59	)	$	(137	)	$	(234	)

Fair value hedging

Gains (Losses) on Derivative Instruments

We recognized in other income (expense), net the following gains (losses) on contracts designated as fair value hedges and their related hedged items:

(In millions)


Year Ended June 30,	2019		2018			2017

Foreign Exchange Contracts

Derivatives	$	38	$	25		$	441
Hedged items		130		78			(386	)


Total amount of ineffectiveness	$	168	$	103		$	55


Equity Contracts

Derivatives	$	0	$	(324	)	$	(74	)
Hedged items		0		324			74


Total amount of ineffectiveness	$	0	$	0		$	0


Amount of equity contracts excluded from effectiveness assessment	$	0	$	80		$	(80	)

Cash flow hedging

Gains (Losses) on Derivative Instruments

We recognized the following gains (losses) on foreign exchange contracts designated as cash flow hedges:

(In millions)


Year Ended June 30,	2019			2018			2017

Effective Portion

Gains recognized in other comprehensive income (loss), net of tax of $1, $11, and $4	$	159		$	219		$	328
Gains reclassified from accumulated other comprehensive income (loss) into revenue		341			185			555

Amount Excluded from Effectiveness Assessment and Ineffective Portion

Losses recognized in other income (expense), net		(64	)		(255	)		(389	)