The following table presents the fair value of our derivatives instruments on a gross basis:
(In millions)
Level 1 / Level 1 / Level 2 / Level 3 / Level 3 / Total / Total
June 30, 2025
Derivative assets ....................... $ / 1 / $ / 474 / $ / 283 / $ / 758
Derivative liabilities .................. 0 / ( 1,832 / ) / ( 5 / ) / ( 1,837 / )
June 30, 2024
Derivative assets ....................... 0 / 327 / 4 / 331
Derivative liabilities .................. ( 1 / ) / ( 799 / ) / 0 / ( 800 / )
Gains (losses) on derivative instruments recognized in other income (expense), net were as follows:
(In millions)
(In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions)
Year Ended June 30, ..................... 2025 / 2025 / 2024 / 2024 / 2023 / 2023
Designated as Fair Value Hedging Instruments
Interest rate contracts
Derivatives ............................. $ / 5 / $ / ( 23 / ) / $ / ( 65 / )
Hedged items ............................ ( 45 / ) / ( 25 / ) / 38
Designated as Cash Flow Hedging Instruments
Foreign exchange contracts
Amount reclassified from accumulated other comprehensive loss ... 103 / ( 48 / ) / 61
Not Designated as Hedging Instruments
Foreign exchange contracts .............. ( 938 / ) / 367 / ( 73 / )
Equity contracts ........................ ( 266 / ) / ( 177 / ) / ( 420 / )
Other contracts ......................... 21 / ( 15 / ) / ( 41 / )
Gains (losses), net of tax, on derivative instruments recognized in our consolidated comprehensive income statements were as follows:
(In millions)
Year Ended June 30, ..................... 2025 / 2025 / 2024 / 2024 / 2023 / 2023
Designated as Cash Flow Hedging Instruments
Foreign exchange contracts
Included in effectiveness assessment .... $ / 77 / $ / ( 14 / ) / $ / 34
NOTE 6 — PROPERTY AND EQUIPMENT
The components of property and equipment were as follows:
(In millions)
(In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions) / (In millions)
June 30, ................................ 2025 / 2025 / 2024 / 2024
Land .................................... $ / 9,338 / $ / 8,163
Buildings and improvements .............. 137,921 / 93,943
Leasehold improvements .................. 12,117 / 9,594
Computer equipment and software ......... 132,836 / 93,780
Furniture and equipment ................. 6,407 / 6,532
Total, at cost .......................... 298,619 / 212,012
Accumulated depreciation ................ ( 93,653 / ) / ( 76,421 / )
Total, net .............................. $ / 204,966 / $ / 135,591
During fiscal years 2025, 2024, and 2023, depreciation expense was $ 22.0 billion, $ 15.2 billion, and $ 11.0 billion, respectively.
As of June 30, 2025, 2024, and 2023, purchases of property and equipment remaining in accounts payable were $ 6.9 billion, $ 4.3 billion, and $ 3.8 billion, respectively. As of June 30, 2025, we have committed $ 32.1 billion for the construction of new buildings, building improvements, and leasehold improvements, primarily related to datacenters.
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PART II