Disclosures about Financial Instruments The notional amounts and fair values of financial instruments used in hedging transactio ns as of June 30, 2022 and 2021, are as follows: Notional Amount Fair Value Asset Fair Value (Liability) As of June 30 2022 2021 2022 2021 2022 2021 DERIVATIVES IN FAIR VALUE HEDGING RELATIONSHIPS Interest rate contracts $ 4,972 $ 7,415 $ 3 $ 146 $ (307) $ — DERIVATIVES IN NET INVESTMENT HEDGING RELATIONSHIPS Foreign currency interest rate contracts $ 7,943 $ 8,484 $ 561 $ 89 $ (1) $ (94) TOTAL DERIVATIVES DESIGNATED AS HEDGING INSTRUMENTS $ 12,915 $ 15,899 $ 564 $ 235 $ (308) $ (94) DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS Foreign currency contracts $ 5,625 $ 5,060 $ 6 $ 20 $ (61) $ (22) TOTAL DERIVATIVES AT FAIR VALUE $ 18,540 $ 20,959 $ 570 $ 255 $ (369) $ (116) All derivative assets are p resented in Prepaid expenses and other current assets or Other noncurrent assets. All derivative liabilities are presented in Accrued and other liabilities or Other noncurrent liabilities. The fair value of the interest rate derivative asset/liability d irectly offsets the cumulative amount of the fair value hedging adjustment included in the carrying amount of the underlying debt obligation. The carrying amount of the underlying debt obligation, which includes the unamortized discount or premium and the fair value adjustment, was $4.7 billion and $7.5 billion as of June 30, 2022 and 2021, respectively. In addition to the foreign currency derivative contracts designated as net investment hedges, certain of our foreign currency denominated debt instrument s are designated as net investment hedges. The carrying value of those debt instruments designated as net investment hedges, which includes the adjustment for the foreign currency transaction gain or loss on those instruments, was $11.2 billion and $12.0 billion as of June 30, 2022 and 2021, respectively. The decrease in the notional balance of interest rate contracts was primarily due to the maturity of interest rate swaps that were associated with multiple bonds maturing in the period. All of the Compan y's derivative assets and liabilities are measured at fair value that is derived from observable market data, including interest rate yield curves and foreign exchange rates, and are classified as Level 2 within the fair value hierarch y. There was no sign ificant activity within the Level 3 assets and liabilities during the periods presented. There were no significant assets or liabilities that were re - measured at fair value on a non - recurring basis during the years ended June 30, 2022 and 2021. The Procter & Gamble Company 59 Amounts in millions of dollars except per share amounts or as otherwise specified.