Weighted average shares outstanding:

$ 12,193

^[1]

$ 22,074

^[2]

$ 21,863

Earnings per share:

Basic

$ 1.49

$ 2.66

$ 2.61

Diluted

$ 1.48

^[1]

$ 2.63

^[2]

$ 2.58

Basic

8,177

8,299

8,375

Diluted

8,254

8,399

8,470

Cash dividends declared per common share

$ 1.24

$ 1.12

$ 0.92

[1]	Includes $7.5 billion of goodwill and asset impairment charges related to our phone business, as well as $2.5 billion of integration and restructuring expenses, primarily costs associated with our restructuring plans, which decreased fiscal year 2015 net income by $10.0 billion and diluted EPS by $1.15.
[2]	Includes a tax provision adjustment recorded in the fourth quarter of fiscal year 2014 related to adjustments to prior years' liabilities for intercompany transfer pricing which decreased net income by $458 million and diluted EPS by $0.05.

COMPREHENSIVE INCOME STATEMENTS (USD $)
In Millions, unless otherwise specified

12 Months Ended

Jun. 30, 2015

Jun. 30, 2014

Jun. 30, 2013

Net unrealized gains (losses) on derivatives (net of tax effects of $20, $(4), and $(14))

$ 12,193

^[1]

$ 22,074

^[2]

$ 21,863

Other comprehensive income (loss):

559

(35)

(26)

Net unrealized gains (losses) on investments (net of tax effects of $(197), $936, and $195)

(362)

1,737

363

Translation adjustments and other (net of tax effects of $16, $12, and $(8))

(1,383)

263

(16)

(1,186)

1,965

321

Comprehensive income

$ 11,007

$ 24,039

$ 22,184

[1]	Includes $7.5 billion of goodwill and asset impairment charges related to our phone business, as well as $2.5 billion of integration and restructuring expenses, primarily costs associated with our restructuring plans, which decreased fiscal year 2015 net income by $10.0 billion and diluted EPS by $1.15.
[2]	Includes a tax provision adjustment recorded in the fourth quarter of fiscal year 2014 related to adjustments to prior years' liabilities for intercompany transfer pricing which decreased net income by $458 million and diluted EPS by $0.05.

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References+ Details

COMPREHENSIVE INCOME STATEMENTS (Parenthetical) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Net unrealized gains (losses) on derivatives, tax effects	$ 20	$ (4)	$ (14)
Net unrealized gains (losses) on investments, tax effects	(197)	936	195
Translation adjustments and other, tax effects	$ 16	$ 12	$ (8)

BALANCE SHEETS (USD $) In Millions, unless otherwise specified	Jun. 30, 2015	Jun. 30, 2014
Current assets:
Cash and cash equivalents	$ 5,595	$ 8,669
Short-term investments (including securities loaned of $75 and $541)	90,931	77,040
Total cash, cash equivalents, and short-term investments	96,526	85,709
Accounts receivable, net of allowance for doubtful accounts of $335 and $301	17,908	19,544
Inventories	2,902	2,660
Deferred income taxes	1,915	1,941
Other	5,461	4,392
Total current assets	124,712	114,246
Property and equipment, net of accumulated depreciation of $17,606 and $14,793	14,731	13,011
Equity and other investments	12,053	14,597
Goodwill	16,939	20,127
Intangible assets, net	4,835	6,981
Other long-term assets	2,953	3,422
Total assets	176,223	172,384
Current liabilities:
Accounts payable	6,591	7,432
Short-term debt	4,985	2,000
Current portion of long-term debt	2,499	0
Accrued compensation	5,096	4,797
Income taxes	606	782
Short-term unearned revenue	23,223	23,150
Securities lending payable	92	558
Other	6,766	6,906
Total current liabilities	49,858	45,625
Long-term debt	27,808	20,645
Long-term unearned revenue	2,095	2,008
Deferred income taxes	2,835	2,728
Other long-term liabilities	13,544	11,594
Total liabilities	96,140	82,600
Commitments and contingencies
Stockholders' equity:
Common stock and paid-in capital - shares authorized 24,000; outstanding 8,027 and 8,239	68,465	68,366
Retained earnings	9,096	17,710
Accumulated other comprehensive income	2,522	3,708
Total stockholders' equity	80,083	89,784
Total liabilities and stockholders' equity	$ 176,223	$ 172,384

BALANCE SHEETS (Parenthetical) (USD $) In Millions, except Share data, unless otherwise specified	Jun. 30, 2015	Jun. 30, 2014
Short-term investments, securities loaned	$ 75	$ 541
Accounts receivable, allowance for doubtful accounts	335	301
Property and equipment, accumulated depreciation	$ 17,606	$ 14,793
Common stock, shares authorized	24,000,000,000	24,000,000,000
Common stock, outstanding	8,027,000,000	8,239,000,000

CASH FLOWS STATEMENTS (USD $)
In Millions, unless otherwise specified

12 Months Ended

Jun. 30, 2015

Jun. 30, 2014

Jun. 30, 2013

Operations

Adjustments to reconcile net income to net cash from operations:

$ 12,193

^[1]

$ 22,074

^[2]

$ 21,863

Goodwill and asset impairments

7,498

Depreciation, amortization, and other

5,957

5,212

3,755

Net recognized losses (gains) on investments and derivatives

2,574

2,446

2,406

(443)

(109)

Excess tax benefits from stock-based compensation

(588)

(271)

(209)

Deferred income taxes

224

(331)

(19)

Deferral of unearned revenue

45,072

44,325

44,253

Recognition of unearned revenue

(44,920)

(41,739)

(41,921)

Changes in operating assets and liabilities:

Accounts receivable

1,456

(1,120)

(1,807)

Inventories

(272)

(161)

(802)

Other current assets

(29)

(129)

Other long-term assets

346

(628)

(478)

Accounts payable

(1,054)

473

537

Other current liabilities

(624)

1,075

146

Other long-term liabilities

1,599

1,014

1,158

Net cash from operations

29,080

32,231

28,833

Financing

Proceeds from issuance of short-term debt, maturities of 90 days or less, net

4,481

500

Proceeds from issuance of debt

10,680

10,350

4,883

Repayments of debt

(1,500)

(3,888)

(1,346)

634

607

931

Common stock cash dividends paid

(14,443)

(7,316)

(5,360)

(9,882)

(8,879)

(7,455)

Excess tax benefits from stock-based compensation

588

271

209

Net cash used in financing

362

(39)

(10)

(9,080)

(8,394)

(8,148)

Investing

Additions to property and equipment

(5,944)

(5,485)

(4,257)

Acquisition of companies, net of cash acquired, and purchases of intangible and other assets

(3,723)

(5,937)

(1,584)

Purchases of investments

(98,729)

(72,690)

(75,396)

Maturities of investments

15,013

5,272

5,130

Sales of investments

70,848

60,094

52,464

Securities lending payable

(466)

(87)

(168)

Net cash used in investing

(23,001)

(18,833)

(23,811)

Effect of exchange rates on cash and cash equivalents

(73)

(139)

(8)

Net change in cash and cash equivalents

(3,074)

4,865

(3,134)

Cash and cash equivalents, beginning of period

8,669

3,804

6,938

Cash and cash equivalents, end of period

$ 5,595

$ 8,669

$ 3,804

[1]	Includes $7.5 billion of goodwill and asset impairment charges related to our phone business, as well as $2.5 billion of integration and restructuring expenses, primarily costs associated with our restructuring plans, which decreased fiscal year 2015 net income by $10.0 billion and diluted EPS by $1.15.
[2]	Includes a tax provision adjustment recorded in the fourth quarter of fiscal year 2014 related to adjustments to prior years' liabilities for intercompany transfer pricing which decreased net income by $458 million and diluted EPS by $0.05.

STOCKHOLDERS' EQUITY STATEMENTS (USD $)
In Millions

Total

Common stock and paid-in capital

Retained earnings

Accumulated other comprehensive income

Balance, beginning of period at Jun. 30, 2012

$ 65,797

$ (856)

$ 1,422

920

21,863

Common stock cash dividends

321

(7,694)

(2,014)

(3,418)

Stock-based compensation income tax benefits

2,406

190

Other, net

Balance, end of period at Jun. 30, 2013

78,944

67,306

9,895

1,743

607

22,074

^[1]

22,074

Common stock cash dividends

1,965

(9,271)

(2,328)

(4,988)

Stock-based compensation income tax benefits

2,446

272

Other, net

Balance, end of period at Jun. 30, 2014

89,784

68,366

17,710

3,708

634

12,193

^[2]

12,193

Common stock cash dividends

(1,186)

(10,063)

(3,700)

(10,744)

Stock-based compensation income tax benefits

2,574

588

Other, net

Balance, end of period at Jun. 30, 2015

$ 80,083

$ 68,465

$ 9,096

$ 2,522

[1]	Includes a tax provision adjustment recorded in the fourth quarter of fiscal year 2014 related to adjustments to prior years' liabilities for intercompany transfer pricing which decreased net income by $458 million and diluted EPS by $0.05.
[2]	Includes $7.5 billion of goodwill and asset impairment charges related to our phone business, as well as $2.5 billion of integration and restructuring expenses, primarily costs associated with our restructuring plans, which decreased fiscal year 2015 net income by $10.0 billion and diluted EPS by $1.15.

This element represents the amount of recognized equity-based compensation during the period, that is, the amount recognized as expense in the income statement (or as asset if compensation is capitalized). Alternate captions include the words "stock-based compensation".

+ References+ Details

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References+ Details

ACCOUNTING POLICIES

12 Months Ended

Jun. 30, 2015

ACCOUNTING POLICIES

NOTE 1 — ACCOUNTING POLICIES

Accounting Principles

The consolidated financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).

Principles of Consolidation

The consolidated financial statements include the accounts of Microsoft Corporation and its subsidiaries. Intercompany transactions and balances have been eliminated. Equity investments through which we are able to exercise significant influence over but do not control the investee and are not the primary beneficiary of the investee’s activities are accounted for using the equity method. Investments through which we are not able to exercise significant influence over the investee and which do not have readily determinable fair values are accounted for under the cost method.

Recasting of Certain Prior Period Information

In June 2015, we announced a change in organizational structure as part of our transformation in the mobile-first, cloud-first world. During the first quarter of fiscal year 2016, the Company’s chief operating decision maker requested changes in the information that he regularly reviews for purposes of allocating resources and assessing performance. As a result, beginning in fiscal year 2016, we report our financial performance based on our new segments described in Note 22 – Segment Information and Geographic Data, and analyze operating income as the measure of segment profitability. In this Form 8-K, we have recast certain previously reported amounts to conform to the way we internally manage and monitor segment performance during fiscal year 2016. This change primarily impacted Note 10 – Goodwill, Note 15 – Unearned Revenue, and Note 22 – Segment Information and Geographic Data, with no impact on consolidated net income or cash flows.

In addition to the segment changes described above, we also previously recast certain prior period amounts to conform to the current period presentation, with no impact on consolidated net income or cash flows, as disclosed in our 2015 Form 10-K.

Estimates and Assumptions

Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses. Examples of estimates include: loss contingencies; product warranties; the fair value of, and/or potential impairment of goodwill and intangibles assets, for our reporting units; product life cycles; useful lives of our tangible and intangible assets; allowances for doubtful accounts; allowances for product returns; the market value of our inventory; and stock-based compensation forfeiture rates. Examples of assumptions include: the elements comprising a software arrangement, including the distinction between upgrades or enhancements and new products; when technological feasibility is achieved for our products; the potential outcome of future tax consequences of events that have been recognized in our consolidated financial statements or tax returns; and determining when investment impairments are other-than-temporary. Actual results and outcomes may differ from management’s estimates and assumptions.

Foreign Currencies

Assets and liabilities recorded in foreign currencies are translated at the exchange rate on the balance sheet date. Revenue and expenses are translated at average rates of exchange prevailing during the year. Translation adjustments resulting from this process are recorded to other comprehensive income (“OCI”).

Revenue Recognition

Revenue is recognized when persuasive evidence of an arrangement exists, delivery has occurred, the fee is fixed or determinable, and collectability is probable. Revenue generally is recognized net of allowances for returns and any taxes collected from customers and subsequently remitted to governmental authorities.

Revenue recognition for multiple-element arrangements requires judgment to determine if multiple elements exist, whether elements can be accounted for as separate units of accounting, and if so, the fair value for each of the elements.

Microsoft enters into arrangements that can include various combinations of software, services, and hardware. Where elements are delivered over different periods of time, and when allowed under U.S. GAAP, revenue is allocated to the respective elements based on their relative selling prices at the inception of the arrangement, and revenue is recognized as each element is delivered. We use a hierarchy to determine the fair value to be used for allocating revenue to elements: (i) vendor-specific objective evidence of fair value (“VSOE”), (ii) third-party evidence, and (iii) best estimate of selling price (“ESP”). For software elements, we follow the industry specific software guidance which only allows for the use of VSOE in establishing fair value. Generally, VSOE is the price charged when the deliverable is sold separately or the price established by management for a product that is not yet sold if it is probable that the price will not change before introduction into the marketplace. ESPs are established as best estimates of what the selling prices would be if the deliverables were sold regularly on a stand-alone basis. Our process for determining ESPs requires judgment and considers multiple factors that may vary over time depending upon the unique facts and circumstances related to each deliverable.

Revenue for retail packaged products, products licensed to original equipment manufacturers (“OEMs”), and perpetual licenses under certain volume licensing programs generally is recognized as products are shipped or made available.

Technology guarantee programs are accounted for as multiple-element arrangements as customers receive free or significantly discounted rights to use upcoming new versions of a software product if they license existing versions of the product during the eligibility period. Revenue is allocated between the existing product and the new product, and revenue allocated to the new product is deferred until that version is delivered. The revenue allocation is based on the VSOE of fair value of the products. The VSOE of fair value for upcoming new products are based on the price determined by management having the relevant authority when the element is not yet sold separately, but is expected to be sold in the near future at the price set by management.

Software updates that will be provided free of charge are evaluated on a case-by-case basis to determine whether they meet the definition of an upgrade and create a multiple-element arrangement, which may require revenue to be deferred and recognized when the upgrade is delivered, or if it is determined that implied post-contract customer support (“PCS”) is being provided, the arrangement is accounted for as a multiple-element arrangement and all revenue from the arrangement is deferred and recognized over the implied PCS term when the VSOE of fair value does not exist. If updates are determined to not meet the definition of an upgrade, revenue is generally recognized as products are shipped or made available.

Certain volume licensing arrangements include a perpetual license for current products combined with rights to receive unspecified future versions of software products, which we have determined are additional software products and are therefore accounted for as subscriptions, with billings recorded as unearned revenue and recognized as revenue ratably over the coverage period. Arrangements that include term-based licenses for current products with the right to use unspecified future versions of the software during the coverage period, are also accounted for as subscriptions, with revenue recognized ratably over the coverage period.

Revenue from cloud-based services arrangements that allow for the use of a hosted software product or service over a contractually determined period of time without taking possession of software are accounted for as subscriptions with billings recorded as unearned revenue and recognized as revenue ratably over the coverage period beginning on the date the service is made available to customers. Revenue from cloud-based services arrangements that are provided on a consumption basis (for example, the amount of storage used in a particular period) is recognized commensurate with the customer utilization of such resources.

Some volume licensing arrangements include time-based subscriptions for cloud-based services and software offerings that are accounted for as subscriptions. These arrangements are considered multiple-element arrangements. However, because all elements are accounted for as subscriptions and have the same coverage period and delivery pattern, they have the same revenue recognition timing.

Revenue related to phones, Surface devices, Xbox consoles, games published by us, and other hardware components is generally recognized when ownership is transferred to the resellers or to end customers when selling directly through Microsoft retail stores and online marketplaces. A portion of revenue may be deferred when these products are combined with software elements, and/or services. Revenue related to licensing for games published by third parties for use on the Xbox consoles is recognized when games are manufactured by the game publishers.

Display advertising revenue is recognized as advertisements are displayed. Search advertising revenue is recognized when the ad appears in the search results or when the action necessary to earn the revenue has been completed. Consulting services revenue is recognized as services are rendered, generally based on the negotiated hourly rate in the consulting arrangement and the number of hours worked during the period. Consulting revenue for fixed-price services arrangements is recognized as services are provided. Revenue from prepaid points redeemable for the purchase of software or services is recognized upon redemption of the points and delivery of the software or services.

Cost of Revenue

Cost of revenue includes: manufacturing and distribution costs for products sold and programs licensed; operating costs related to product support service centers and product distribution centers; costs incurred to include software on PCs sold by OEMs, to drive traffic to our websites, and to acquire online advertising space; costs incurred to support and maintain Internet-based products and services, including datacenter costs and royalties; warranty costs; inventory valuation adjustments; costs associated with the delivery of consulting services; and the amortization of capitalized software development costs. Capitalized software development costs are amortized over the estimated lives of the products.

Product Warranty

We provide for the estimated costs of fulfilling our obligations under hardware and software warranties at the time the related revenue is recognized. For hardware warranties, we estimate the costs based on historical and projected product failure rates, historical and projected repair costs, and knowledge of specific product failures (if any). The specific hardware warranty terms and conditions vary depending upon the product sold and the country in which we do business, but generally include parts and labor over a period generally ranging from 90 days to three years. For software warranties, we estimate the costs to provide bug fixes, such as security patches, over the estimated life of the software. We regularly reevaluate our estimates to assess the adequacy of the recorded warranty liabilities and adjust the amounts as necessary.

Research and Development

Research and development expenses include payroll, employee benefits, stock-based compensation expense, and other headcount-related expenses associated with product development. Research and development expenses also include third-party development and programming costs, localization costs incurred to translate software for international markets, and the amortization of purchased software code and services content. Such costs related to software development are included in research and development expense until the point that technological feasibility is reached, which for our software products, is generally shortly before the products are released to manufacturing. Once technological feasibility is reached, such costs are capitalized and amortized to cost of revenue over the estimated lives of the products.

Sales and Marketing

Sales and marketing expenses include payroll, employee benefits, stock-based compensation expense, and other headcount-related expenses associated with sales and marketing personnel, and the costs of advertising, promotions, trade shows, seminars, and other programs. Advertising costs are expensed as incurred. Advertising expense was $1.9 billion, $2.3 billion, and $2.6 billion in fiscal years 2015, 2014, and 2013, respectively.

Stock-Based Compensation

We measure stock-based compensation cost at the grant date based on the fair value of the award and recognize it as expense, net of estimated forfeitures, over the vesting or service period, as applicable, of the stock award (generally four to five years) using the straight-line method.

Employee Stock Purchase Plan

Shares of our common stock may be purchased by employees at three-month intervals at 90% of the fair market value of the stock on the last day of each three-month period. Compensation expense for the employee stock purchase plan is measured as the discount the employee is entitled to upon purchase and is recognized in the period of purchase.

Income Taxes

Income tax expense includes U.S. and international income taxes, the provision for U.S. taxes on undistributed earnings of international subsidiaries not deemed to be permanently invested, and interest and penalties on uncertain tax positions. Certain income and expenses are not reported in tax returns and financial statements in the same year. The tax effect of such temporary differences is reported as deferred income taxes. Deferred tax assets are reported net of a valuation allowance when it is more likely than not that a tax benefit will not be realized. The deferred income taxes are classified as current or long-term based on the classification of the related asset or liability.

Fair Value Measurements

We account for certain assets and liabilities at fair value. The hierarchy below lists three levels of fair value based on the extent to which inputs used in measuring fair value are observable in the market. We categorize each of our fair value measurements in one of these three levels based on the lowest level input that is significant to the fair value measurement in its entirety. These levels are:

•

Level 1—inputs are based upon unadjusted quoted prices for identical instruments traded in active markets. Our Level 1 non-derivative investments primarily include U.S. government securities, domestic and international equities, and actively traded mutual funds. Our Level 1 derivative assets and liabilities include those actively traded on exchanges.

•

Level 2—inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques (e.g. the Black-Scholes model) for which all significant inputs are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Where applicable, these models project future cash flows and discount the future amounts to a present value using market-based observable inputs including interest rate curves, credit spreads, foreign exchange rates, and forward and spot prices for currencies and commodities. Our Level 2 non-derivative investments consist primarily of corporate notes and bonds, common and preferred stock, mortgage- and asset-backed securities, U.S. government and agency securities, and foreign government bonds. Our Level 2 derivative assets and liabilities primarily include certain over-the-counter option and swap contracts.

•

Level 3—inputs are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques, including option pricing models and discounted cash flow models. Our Level 3 non-derivative assets primarily comprise investments in common and preferred stock and goodwill when it is recorded at fair value due to an impairment charge. Unobservable inputs used in the models are significant to the fair values of the assets and liabilities. Our Level 3 derivative assets and liabilities primarily include equity derivatives.

We measure certain assets, including our cost and equity method investments, at fair value on a nonrecurring basis when they are deemed to be other-than-temporarily impaired. The fair values of these investments are determined based on valuation techniques using the best information available, and may include quoted market prices, market comparables, and discounted cash flow projections. An impairment charge is recorded when the cost of the investment exceeds its fair value and this condition is determined to be other-than-temporary.

Our other current financial assets and our current financial liabilities have fair values that approximate their carrying values.

Financial Instruments

We consider all highly liquid interest-earning investments with a maturity of three months or less at the date of purchase to be cash equivalents. The fair values of these investments approximate their carrying values. In general, investments with original maturities of greater than three months and remaining maturities of less than one year are classified as short-term investments. Investments with maturities beyond one year may be classified as short-term based on their highly liquid nature and because such marketable securities represent the investment of cash that is available for current operations. All cash equivalents and short-term investments are classified as available-for-sale and realized gains and losses are recorded using the specific identification method. Changes in market value, excluding other-than-temporary impairments, are reflected in OCI.

Equity and other investments classified as long-term include both debt and equity instruments. With the exception of certain corporate notes that are classified as held-to-maturity, debt and publicly-traded equity securities are classified as available-for-sale and realized gains and losses are recorded using the specific identification method. Changes in the market value of available-for-sale securities, excluding other-than-temporary impairments, are reflected in OCI. Held-to-maturity investments are recorded and held at amortized cost. Common and preferred stock and other investments that are restricted for more than one year or are not publicly traded are recorded at cost or using the equity method.

We lend certain fixed-income and equity securities to increase investment returns. The loaned securities continue to be carried as investments on our balance sheet. Cash and/or security interests are received as collateral for the loaned securities with the amount determined based upon the underlying security lent and the creditworthiness of the borrower. Cash received is recorded as an asset with a corresponding liability.

Investments are considered to be impaired when a decline in fair value is judged to be other-than-temporary. Fair value is calculated based on publicly available market information or other estimates determined by management. We employ a systematic methodology on a quarterly basis that considers available quantitative and qualitative evidence in evaluating potential impairment of our investments. If the cost of an investment exceeds its fair value, we evaluate, among other factors, general market conditions, credit quality of debt instrument issuers, the duration and extent to which the fair value is less than cost, and for equity securities, our intent and ability to hold, or plans to sell, the investment. For fixed-income securities, we also evaluate whether we have plans to sell the security or it is more likely than not that we will be required to sell the security before recovery. We also consider specific adverse conditions related to the financial health of and business outlook for the investee, including industry and sector performance, changes in technology, and operational and financing cash flow factors. Once a decline in fair value is determined to be other-than-temporary, an impairment charge is recorded to other income (expense), net and a new cost basis in the investment is established.

Derivative instruments are recognized as either assets or liabilities and are measured at fair value. The accounting for changes in the fair value of a derivative depends on the intended use of the derivative and the resulting designation.

For derivative instruments designated as fair value hedges, the gains (losses) are recognized in earnings in the periods of change together with the offsetting losses (gains) on the hedged items attributed to the risk being hedged. For options designated as fair value hedges, changes in the time value are excluded from the assessment of hedge effectiveness and are recognized in earnings.

For derivative instruments designated as cash-flow hedges, the effective portion of the gains (losses) on the derivatives is initially reported as a component of OCI and is subsequently recognized in earnings when the hedged exposure is recognized in earnings. For options designated as cash-flow hedges, changes in the time value are excluded from the assessment of hedge effectiveness and are recognized in earnings. Gains (losses) on derivatives representing either hedge components excluded from the assessment of effectiveness or hedge ineffectiveness are recognized in earnings.

For derivative instruments that are not designated as hedges, gains (losses) from changes in fair values are primarily recognized in other income (expense), net. Other than those derivatives entered into for investment purposes, such as commodity contracts, the gains (losses) are generally economically offset by unrealized gains (losses) in the underlying available-for-sale securities, which are recorded as a component of OCI until the securities are sold or other-than-temporarily impaired, at which time the amounts are reclassified from accumulated other comprehensive income (“AOCI”) into other income (expense), net.

Allowance for Doubtful Accounts

The allowance for doubtful accounts reflects our best estimate of probable losses inherent in the accounts receivable balance. We determine the allowance based on known troubled accounts, historical experience, and other currently available evidence. Activity in the allowance for doubtful accounts was as follows:


(In millions)


Year Ended June 30,	2015			2014			2013

Balance, beginning of period	$	301		$	336		$	389
Charged to costs and other		77			16			4
Write-offs		(43	)		(51	)		(57	)

Balance, end of period	$	335		$	301		$	336

Inventories

Inventories are stated at average cost, subject to the lower of cost or market. Cost includes materials, labor, and manufacturing overhead related to the purchase and production of inventories. We regularly review inventory quantities on hand, future purchase commitments with our suppliers, and the estimated utility of our inventory. If our review indicates a reduction in utility below carrying value, we reduce our inventory to a new cost basis through a charge to cost of revenue. The determination of market value and the estimated volume of demand used in the lower of cost or market analysis require significant judgment.

Property and Equipment

Property and equipment is stated at cost and depreciated using the straight-line method over the shorter of the estimated useful life of the asset or the lease term. The estimated useful lives of our property and equipment are generally as follows: computer software developed or acquired for internal use, three to seven years; computer equipment, two to three years; buildings and improvements, five to 15 years; leasehold improvements, three to 20 years; and furniture and equipment, one to 10 years. Land is not depreciated.

Goodwill

Goodwill is tested for impairment at the reporting unit level (operating segment or one level below an operating segment) on an annual basis (May 1 for us) and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value.

Intangible Assets

All of our intangible assets are subject to amortization and are amortized using the straight-line method over their estimated period of benefit, ranging from one to 15 years. We evaluate the recoverability of intangible assets periodically by taking into account events or circumstances that may warrant revised estimates of useful lives or that indicate the asset may be impaired.

Recent Accounting Guidance Not Yet Adopted

In May 2014, as part of its ongoing efforts to assist in the convergence of U.S. GAAP and International Financial Reporting Standards, the Financial Accounting Standards Board (“FASB”) issued a new standard related to revenue recognition. Under the new standard, recognition of revenue occurs when a customer obtains control of promised goods or services in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The new standard will be effective for us beginning July 1, 2018, and adoption as of the original effective date of July 1, 2017 is permitted. We anticipate this standard will have a material impact on our consolidated financial statements, and we are currently evaluating its impact.

The entire disclosure for all significant accounting policies of the reporting entity.

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EARNINGS PER SHARE

12 Months Ended

Jun. 30, 2015

EARNINGS PER SHARE

NOTE 2 — EARNINGS PER SHARE

Basic earnings per share (“EPS”) is computed based on the weighted average number of shares of common stock outstanding during the period. Diluted EPS is computed based on the weighted average number of shares of common stock plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares include outstanding stock options and stock awards.

The components of basic and diluted EPS were as follows:


(In millions, except earnings per share)


	2015		2014		2013

Year Ended June 30,

Net income available for common shareholders (A)	$	12,193	$	22,074	$	21,863
Weighted average outstanding shares of common stock (B)		8,177		8,299		8,375
Dilutive effect of stock-based awards		77		100		95

Common stock and common stock equivalents (C)		8,254		8,399		8,470


Earnings Per Share

Basic (A/B)	$	1.49	$	2.66	$	2.61
Diluted (A/C)	$	1.48	$	2.63	$	2.58

Anti-dilutive stock-based awards excluded from the calculations of diluted EPS were immaterial during the periods presented.

OTHER INCOME (EXPENSE), NET

The entire disclosure for earnings per share.

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OTHER INCOME (EXPENSE), NET

12 Months Ended

Jun. 30, 2015

NOTE 3 — OTHER INCOME (EXPENSE), NET

The components of other income (expense), net were as follows:


(In millions)


	2015			2014			2013

Year Ended June 30,

Dividends and interest income	$	766		$	883		$	677
Interest expense		(781	)		(597	)		(429	)
Net recognized gains on investments		716			437			116
Net losses on derivatives		(423	)		(328	)		(196	)
Net gains (losses) on foreign currency remeasurements		335			(165	)		(74	)
Other		(267	)		(169	)		194

Total	$	346		$	61		$	288

Following are details of net recognized gains on investments during the periods reported:


(In millions)


	2015			2014			2013

Year Ended June 30,

Other-than-temporary impairments of investments	$	(183	)	$	(106	)	$	(208	)
Realized gains from sales of available-for-sale securities		1,176			776			489
Realized losses from sales of available-for-sale securities		(277	)		(233	)		(165	)

Total	$	716		$	437		$	116

INVESTMENTS

12 Months Ended

Jun. 30, 2015

INVESTMENTS

NOTE 4 — INVESTMENTS

Investment Components

The components of investments, including associated derivatives, but excluding held-to-maturity investments, were as follows:


(In millions)	Cost Basis		Unrealized Gains		Unrealized Losses			Recorded Basis		Cash and Cash Equivalents		Short-term Investments		Equity and Other Investments


June 30, 2015

Cash	$	3,679	$	0	$	0		$	3,679	$	3,679	$	0	$	0
Mutual funds		1,100		0		0			1,100		1,100		0		0
Commercial paper		1		0		0			1		1		0		0
Certificates of deposit		906		0		0			906		776		130		0
U.S. government and agency securities		72,843		76		(30	)		72,889		39		72,850		0
Foreign government bonds		5,477		3		(24	)		5,456		0		5,456		0
Mortgage- and asset-backed securities		4,899		23		(6	)		4,916		0		4,916		0
Corporate notes and bonds		7,192		97		(37	)		7,252		0		7,252		0
Municipal securities		285		35		(1	)		319		0		319		0
Common and preferred stock		6,668		4,986		(215	)		11,439		0		0		11,439
Other investments		597		0		0			597		0		8		589

Total	$	103,647	$	5,220	$	(313	)	$	108,554	$	5,595	$	90,931	$	12,028


(In millions)	Cost Basis		Unrealized Gains		Unrealized Losses			Recorded Basis		Cash and Cash Equivalents		Short-term Investments		Equity and Other Investments


June 30, 2014

Cash	$	4,980	$	0	$	0		$	4,980	$	4,980	$	0	$	0
Mutual funds		590		0		0			590		590		0		0
Commercial paper		189		0		0			189		89		100		0
Certificates of deposit		1,197		0		0			1,197		865		332		0
U.S. government and agency securities		66,952		103		(29	)		67,026		109		66,917		0
Foreign government bonds		3,328		17		(10	)		3,335		2,027		1,308		0
Mortgage- and asset-backed securities		991		30		(2	)		1,019		0		1,019		0
Corporate notes and bonds		6,845		191		(9	)		7,027		9		7,018		0
Municipal securities		287		45		0			332		0		332		0
Common and preferred stock		6,785		5,207		(81	)		11,911		0		0		11,911
Other investments		1,164		0		0			1,164		0		14		1,150

Total	$	93,308	$	5,593	$	(131	)	$	98,770	$	8,669	$	77,040	$	13,061

In addition to the investments in the table above, we also own corporate notes that are classified as held-to-maturity investments, which are included in equity and other investments on the balance sheet. These corporate notes are due October 31, 2023 and are measured at fair value on a nonrecurring basis. As of June 30, 2015, the amortized cost and recorded basis of these corporate notes were both $25 million with an estimated fair value that

approximates the carrying value. As of June 30, 2014, the amortized cost, recorded basis, and estimated fair value of these corporate notes was $1.5 billion, $1.5 billion, and $1.7 billion, respectively, while their associated gross unrealized holding gains were $164 million.

As of June 30, 2015 and 2014, the recorded bases of common and preferred stock that are restricted for more than one year or are not publicly traded were $561 million and $520 million, respectively. These investments are carried at cost and are reviewed quarterly for indicators of other-than-temporary impairment. It is not practicable for us to reliably estimate the fair value of these investments.

We lend certain fixed-income and equity securities to increase investment returns. These transactions are accounted for as secured borrowings and the loaned securities continue to be carried as investments on our balance sheet. Cash and/or security interests are received as collateral for the loaned securities with the amount determined based upon the underlying security lent and the creditworthiness of the borrower. As of June 30, 2015, the collateral received under these agreements totaled $92 million which is comprised of $79 million of certificates of deposit and $13 million of U.S. government and agency securities. The contractual maturities of these agreements are primarily on a continuous and overnight basis.

Unrealized Losses on Investments

Investments with continuous unrealized losses for less than 12 months and 12 months or greater and their related fair values were as follows:


	Less than 12 Months					12 Months or Greater							Total Unrealized Losses

(In millions)	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Total Fair Value


June 30, 2015

U.S. government and agency securities	$	6,636	$	(9	)	$	421	$	(21	)	$	7,057	$	(30	)
Foreign government bonds		4,611		(12	)		18		(12	)		4,629		(24	)
Mortgage- and asset-backed securities		3,171		(5	)		28		(1	)		3,199		(6	)
Corporate notes and bonds		2,946		(29	)		104		(8	)		3,050		(37	)
Municipal securities		36		(1	)		0		0			36		(1	)
Common and preferred stock		1,389		(180	)		148		(35	)		1,537		(215	)

Total	$	18,789	$	(236	)	$	719	$	(77	)	$	19,508	$	(313	)


	Less than 12 Months					12 Months or Greater							Total Unrealized Losses

(In millions)	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Total Fair Value


June 30, 2014

U.S. government and agency securities	$	4,161	$	(29	)	$	850	$	0		$	5,011	$	(29	)
Foreign government bonds		566		(4	)		21		(6	)		587		(10	)
Mortgage- and asset-backed securities		120		0			61		(2	)		181		(2	)
Corporate notes and bonds		1,154		(8	)		34		(1	)		1,188		(9	)
Common and preferred stock		463		(48	)		257		(33	)		720		(81	)

Total	$	6,464	$	(89	)	$	1,223	$	(42	)	$	7,687	$	(131	)

Unrealized losses from fixed-income securities are primarily attributable to changes in interest rates. Unrealized losses from domestic and international equities are due to market price movements. Management does not believe any remaining unrealized losses represent other-than-temporary impairments based on our evaluation of available evidence as of June 30, 2015.

Debt Investment Maturities


(In millions)	Cost Basis		Estimated Fair Value


June 30, 2015

Due in one year or less	$	53,616	$	53,645
Due after one year through five years		33,260		33,336
Due after five years through 10 years		3,180		3,161
Due after 10 years		1,547		1,597

Total	$	91,603	$	91,739

DERIVATIVES

12 Months Ended

Jun. 30, 2015

DERIVATIVES

NOTE 5 — DERIVATIVES

We use derivative instruments to manage risks related to foreign currencies, equity prices, interest rates, and credit; to enhance investment returns; and to facilitate portfolio diversification. Our objectives for holding derivatives include reducing, eliminating, and efficiently managing the economic impact of these exposures as effectively as possible.

Our derivative programs include strategies that both qualify and do not qualify for hedge accounting treatment. All notional amounts presented below are measured in U.S. dollar equivalents.

Foreign Currency

Certain forecasted transactions, assets, and liabilities are exposed to foreign currency risk. We monitor our foreign currency exposures daily to maximize the economic effectiveness of our foreign currency hedge positions. Option and forward contracts are used to hedge a portion of forecasted international revenue for up to three years in the future and are designated as cash flow hedging instruments. Principal currencies hedged include the euro, Japanese yen, British pound, Canadian dollar, and Australian dollar. As of June 30, 2015 and June 30, 2014, the total notional amounts of these foreign exchange contracts sold were $9.8 billion and $4.9 billion, respectively.

Foreign currency risks related to certain non-U.S. dollar denominated securities are hedged using foreign exchange forward contracts that are designated as fair value hedging instruments. As of June 30, 2015 and June 30, 2014, the total notional amounts of these foreign exchange contracts sold were $5.3 billion and $3.1 billion, respectively.

Certain options and forwards not designated as hedging instruments are also used to manage the variability in foreign exchange rates on certain balance sheet amounts and to manage other foreign currency exposures. As of June 30, 2015, the total notional amounts of these foreign exchange contracts purchased and sold were $9.7 billion and $11.0 billion, respectively. As of June 30, 2014, the total notional amounts of these foreign exchange contracts purchased and sold were $6.2 billion and $8.5 billion, respectively.

Equity

Securities held in our equity and other investments portfolio are subject to market price risk. Market price risk is managed relative to broad-based global and domestic equity indices using certain convertible preferred investments, options, futures, and swap contracts not designated as hedging instruments. From time to time, to hedge our price risk, we may use and designate equity derivatives as hedging instruments, including puts, calls, swaps, and forwards. As of June 30, 2015, the total notional amounts of equity contracts purchased and sold for managing market price risk were $2.2 billion and $2.6 billion, respectively, of which $1.1 billion and $1.4 billion, respectively, were designated as hedging instruments. As of June 30, 2014, the total notional amounts of equity contracts purchased and sold for managing market price risk were $1.9 billion and $1.9 billion, respectively, of which $362 million and $420 million, respectively, were designated as hedging instruments.

Interest Rate

Securities held in our fixed-income portfolio are subject to different interest rate risks based on their maturities. We manage the average maturity of our fixed-income portfolio to achieve economic returns that correlate to certain broad-based fixed-income indices using exchange-traded option and futures contracts and over-the-counter swap and option contracts, none of which are designated as hedging instruments. As of June 30, 2015, the total notional amounts of fixed-interest rate contracts purchased and sold were $1.0 billion and $3.2 billion, respectively. As of June 30, 2014, the total notional amounts of fixed-interest rate contracts purchased and sold were $1.7 billion and $936 million, respectively.

In addition, we use “To Be Announced” forward purchase commitments of mortgage-backed assets to gain exposure to agency mortgage-backed securities. These meet the definition of a derivative instrument in cases where physical delivery of the assets is not taken at the earliest available delivery date. As of June 30, 2015 and 2014, the total notional derivative amounts of mortgage contracts purchased were $812 million and $1.1 billion, respectively.

Credit

Our fixed-income portfolio is diversified and consists primarily of investment-grade securities. We use credit default swap contracts, not designated as hedging instruments, to manage credit exposures relative to broad-based indices and to facilitate portfolio diversification. We use credit default swaps as they are a low-cost method of managing exposure to individual credit risks or groups of credit risks. As of June 30, 2015, the total notional amounts of credit contracts purchased and sold were $618 million and $430 million, respectively. As of June 30, 2014, the total notional amounts of credit contracts purchased and sold were $550 million and $440 million, respectively.

Commodity

We use broad-based commodity exposures to enhance portfolio returns and to facilitate portfolio diversification. We use swaps, futures, and option contracts, not designated as hedging instruments, to generate and manage exposures to broad-based commodity indices. We use derivatives on commodities as they can be low-cost alternatives to the purchase and storage of a variety of commodities, including, but not limited to, precious metals, energy, and grain. As of June 30, 2015, the total notional amounts of commodity contracts purchased and sold were $882 million and $316 million, respectively. As of June 30, 2014, the total notional amounts of commodity contracts purchased and sold were $1.4 billion and $408 million, respectively.

Credit-Risk-Related Contingent Features

Certain of our counterparty agreements for derivative instruments contain provisions that require our issued and outstanding long-term unsecured debt to maintain an investment grade credit rating and require us to maintain minimum liquidity of $1.0 billion. To the extent we fail to meet these requirements, we will be required to post collateral, similar to the standard convention related to over-the-counter derivatives. As of June 30, 2015, our long-term unsecured debt rating was AAA, and cash investments were in excess of $1.0 billion. As a result, no collateral was required to be posted.

Fair Values of Derivative Instruments

The following table presents the fair values of derivative instruments designated as hedging instruments (“designated hedge derivatives”) and not designated as hedging instruments (“non-designated hedge derivatives”). The fair values exclude the impact of netting derivative assets and liabilities when a legally enforceable master netting agreement exists and fair value adjustments related to our own credit risk and counterparty credit risk:


	June 30, 2015												June 30, 2014

	Assets									Liabilities			Assets									Liabilities

(In millions)	Short-term Investments			Other Current Assets			Equity and Other Investments			Other Current Liabilities			Short-term Investments			Other Current Assets			Equity and Other Investments			Other Current Liabilities


Non-designated Hedge Derivatives

Foreign exchange contracts	$	17		$	167		$	0		$	(79	)	$	10		$	39		$	0		$	(97	)
Equity contracts		148			0			0			(18	)		177			0			0			(21	)
Interest rate contracts		7			0			0			(12	)		17			0			0			(12	)
Credit contracts		16			0			0			(9	)		24			0			0			(13	)
Commodity contracts		0			0			0			0			15			0			0			(1	)

Total	$	188		$	167		$	0		$	(118	)	$	243		$	39		$	0		$	(144	)


Designated Hedge Derivatives

Foreign exchange contracts	$	56		$	552		$	0		$	(31	)	$	1		$	70		$	0		$	(15	)
Equity contracts		0			0			25			(69	)		0			0			7			(125	)

Total	$	56		$	552		$	25		$	(100	)	$	1		$	70		$	7		$	(140	)

Total gross amounts of derivatives	$	244		$	719		$	25		$	(218	)	$	244		$	109		$	7		$	(284	)

Gross derivatives either offset or subject to an enforceable master netting agreement	$	126		$	719		$	25		$	(218	)	$	99		$	109		$	7		$	(284	)
Gross amounts of derivatives offset in the balance sheet		(66	)		(71	)		(25	)		161			(77	)		(71	)		(7	)		155

Net amounts presented in the balance sheet		60			648			0			(57	)		22			38			0			(129	)
Gross amounts of derivatives not offset in the balance sheet		0			0			0			0			0			0			0			0
Cash collateral received		0			0			0			(456	)		0			0			0			0

Net amount	$	60		$	648		$	0		$	(513	)	$	22		$	38		$	0		$	(129	)

See also Note 4 – Investments and Note 6 – Fair Value Measurements.

Fair Value Hedge Gains (Losses)

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,	2015			2014			2013

Foreign Exchange Contracts

Derivatives	$	741		$	(14	)	$	70
Hedged items		(725	)		6			(69	)

Total amount of ineffectiveness	$	16		$	(8	)	$	1


Equity Contracts

Derivatives	$	(107	)	$	(110	)	$	0
Hedged items		107			110			0

Total amount of ineffectiveness	$	0		$	0		$	0


Amount of equity contracts excluded from effectiveness assessment	$	0		$	(9)		$	0

Cash Flow Hedge Gains (Losses)

We recognized the following gains (losses) on foreign exchange contracts designated as cash flow hedges (our only cash flow hedges during the periods presented):


(In millions)


Year Ended June 30,	2015			2014			2013

Effective Portion

Gains recognized in OCI (net of tax effects of $35, $2 and $54)	$	1,152		$	63		$	101
Gains reclassified from AOCI into revenue	$	608		$	104		$	195

Amount Excluded from Effectiveness Assessment and Ineffective Portion

Losses recognized in other income (expense), net	$	(346	)	$	(239	)	$	(168	)

We estimate that $492 million of net derivative gains included in AOCI at June 30, 2015 will be reclassified into earnings within the following 12 months. No significant amounts of gains (losses) were reclassified from AOCI into earnings as a result of forecasted transactions that failed to occur during fiscal year 2015.

Non-Designated Derivative Gains (Losses)

Gains (losses) from changes in fair values of derivatives that are not designated as hedges are primarily recognized in other income (expense), net. These amounts are shown in the table below, with the exception of gains (losses) on derivatives presented in income statement line items other than other income (expense), net, which were immaterial for the periods presented. Other than those derivatives entered into for investment purposes, such as commodity contracts, the gains (losses) below are generally economically offset by unrealized gains (losses) in the underlying available-for-sale securities and gains (losses) from foreign exchange rate changes on certain balance sheet amounts.


(In millions)


Year Ended June 30,	2015			2014			2013

Foreign exchange contracts	$	(483	)	$	(78	)	$	18
Equity contracts		(19	)		(64	)		16
Interest-rate contracts		23			24			(11	)
Credit contracts		(1	)		13			(3	)
Commodity contracts		(223	)		71			(42	)

Total	$	(703	)	$	(34	)	$	(22	)

The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts.

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+ Details

FAIR VALUE MEASUREMENTS

12 Months Ended

Jun. 30, 2015

FAIR VALUE MEASUREMENTS

NOTE 6 — FAIR VALUE MEASUREMENTS

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following tables present the fair value of our financial instruments that are measured at fair value on a recurring basis:



(In millions)		Level 1		Level 2		Level 3		Gross Fair Value		Netting	^(a)		Net Fair Value


June 30, 2015

Assets

Mutual funds	$	1,100	$	0	$	0	$	1,100	$	0		$	1,100
Commercial paper		0		1		0		1		0			1
Certificates of deposit		0		906		0		906		0			906
U.S. government and agency securities		71,930		955		0		72,885		0			72,885
Foreign government bonds		131		5,299		0		5,430		0			5,430
Mortgage- and asset-backed securities		0		4,917		0		4,917		0			4,917
Corporate notes and bonds		0		7,108		1		7,109		0			7,109
Municipal securities		0		319		0		319		0			319
Common and preferred stock		8,585		2,277		14		10,876		0			10,876
Derivatives		4		979		5		988		(162	)		826

Total	$	81,750	$	22,761	$	20	$	104,531	$	(162	)	$	104,369


Liabilities

Derivatives and other	$	5	$	159	$	54	$	218	$	(161	)	$	57



(In millions)		Level 1		Level 2		Level 3		Gross Fair Value		Netting	^(a)		Net Fair Value


June 30, 2014

Assets

Mutual funds	$	590	$	0	$	0	$	590	$	0		$	590
Commercial paper		0		189		0		189		0			189
Certificates of deposit		0		1,197		0		1,197		0			1,197
U.S. government and agency securities		66,288		745		0		67,033		0			67,033
Foreign government bonds		139		3,210		0		3,349		0			3,349
Mortgage- and asset-backed securities		0		1,015		0		1,015		0			1,015
Corporate notes and bonds		0		6,863		0		6,863		0			6,863
Municipal securities		0		332		0		332		0			332
Common and preferred stock		9,552		1,825		14		11,391		0			11,391
Derivatives		5		348		7		360		(155	)		205

Total	$	76,574	$	15,724	$	21	$	92,319	$	(155	)	$	92,164


Liabilities

Derivatives and other	$	5	$	153	$	126	$	284	$	(155	)	$	129

(a)	These amounts represent the impact of netting derivative assets and derivative liabilities when a legally enforceable master netting agreement exists and fair value adjustments related to our own credit risk and counterparty credit risk.

The changes in our Level 3 financial instruments that are measured at fair value on a recurring basis were immaterial during the periods presented.

The following table reconciles the total “Net Fair Value” of assets above to the balance sheet presentation of these same assets in Note 4 – Investments.


(In millions)


June 30,	2015			2014

Net fair value of assets measured at fair value on a recurring basis	$	104,369		$	92,164
Cash		3,679			4,980
Common and preferred stock measured at fair value on a nonrecurring basis		561			520
Other investments measured at fair value on a nonrecurring basis		589			1,150
Less derivative net assets classified as other current assets		(648	)		(38	)
Other		4			(6	)

Recorded basis of investment components	$	108,554		$	98,770

Financial Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

During fiscal year 2015 and 2014, we did not record any material other-than-temporary impairments on financial assets required to be measured at fair value on a nonrecurring basis.

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References+ Details

INVENTORIES

12 Months Ended

Jun. 30, 2015

INVENTORIES

OTE 7 — INVENTORIES

The components of inventories were as follows:


(In millions)


June 30,	2015		2014

Raw materials	$	1,100	$	944
Work in process		202		266
Finished goods		1,600		1,450

Total	$	2,902	$	2,660

The entire disclosure for inventory. This may include, but is not limited to, the basis of stating inventory, the method of determining inventory cost, the major classes of inventory, and the nature of the cost elements included in inventory. If inventory is stated above cost, accrued net losses on firm purchase commitments for inventory and losses resulting from valuing inventory at the lower-of-cost-or-market may also be included. For LIFO inventory, may disclose the amount and basis for determining the excess of replacement or current cost over stated LIFO value and the effects of a LIFO quantities liquidation that impacts net income.

+ References+ Details

PROPERTY AND EQUIPMENT

12 Months Ended

Jun. 30, 2015

PROPERTY AND EQUIPMENT

NOTE 8 — PROPERTY AND EQUIPMENT

The components of property and equipment were as follows:


(In millions)


June 30,	2015			2014

Land	$	769		$	541
Buildings and improvements		10,800			8,867
Leasehold improvements		3,577			3,560
Computer equipment and software		13,612			11,430
Furniture and equipment		3,579			3,406

Total, at cost		32,337			27,804
Accumulated depreciation		(17,606	)		(14,793	)

Total, net	$	14,731		$	13,011

During fiscal years 2015, 2014, and 2013, depreciation expense was $4.1 billion, $3.4 billion, and $2.6 billion, respectively.

The entire disclosure for long-lived, physical assets used in the normal conduct of business and not intended for resale. Includes, but is not limited to, accounting policies and methodology, roll forwards, depreciation, depletion and amortization expense, including composite depreciation, accumulated depreciation, depletion and amortization expense, useful lives and method used, income statement disclosures, assets held for sale and public utility disclosures.

+ References+ Details

BUSINESS COMBINATIONS

12 Months Ended

Jun. 30, 2015

BUSINESS COMBINATIONS

NOTE 9 — BUSINESS COMBINATIONS

Mojang Synergies AB

On November 6, 2014, we acquired Mojang Synergies AB (“Mojang”), the Swedish video game developer of the Minecraft gaming franchise, for $2.5 billion in cash, net of cash acquired. The addition of Minecraft and its community enhances our gaming portfolio across Windows, Xbox, and other ecosystems besides our own. Our purchase price allocation is preliminary and subject to revision as more detailed analyses are completed and additional information about fair value of assets and liabilities becomes available, including additional information relating to tax matters and finalization of our valuation of identified intangible assets.

The significant classes of assets and liabilities to which we preliminarily allocated the purchase price were goodwill of $1.8 billion and identifiable intangible assets of $928 million, primarily marketing-related (trade names). The goodwill recognized in connection with the acquisition is primarily attributable to anticipated synergies from future growth, and is not expected to be deductible for tax purposes. We assigned the goodwill to More Personal Computing under our current segment structure. Identifiable intangible assets were assigned a total weighted-average amortization period of 6.3 years. Mojang has been included in our consolidated results of operations since the acquisition date.

Nokia’s Devices and Services Business

On April 25, 2014, we acquired substantially all of Nokia Corporation’s (“Nokia”) Devices and Services business (“NDS”) for a total purchase price of $9.4 billion, including cash acquired of $1.5 billion (the “Acquisition”). The purchase price consisted primarily of cash of $7.1 billion and Nokia’s repurchase of convertible notes of $2.1 billion, which was a non-cash transaction, and liabilities assumed of $0.2 billion. The Acquisition was expected to accelerate the growth of our Devices business through faster innovation, synergies, and unified branding and marketing.

The allocation of the purchase price to goodwill was completed as of March 31, 2015. The major classes of assets and liabilities to which we have allocated the purchase price were as follows:


(In millions)


Cash	$	1,506
Accounts receivable ^(a)		754
Inventories		544
Other current assets		936
Property and equipment		981
Intangible assets		4,509
Goodwill ^(b)		5,456
Other		221
Current liabilities		(4,575	)
Long-term liabilities		(890	)

Total purchase price	$	9,442

(a)	Gross accounts receivable was $901 million, of which $147 million was expected to be uncollectible.

(b)	Goodwill was assigned to More Personal Computing under our current segment structure. The goodwill was primarily attributed to increased synergies that were expected to be achieved from the integration of NDS.

Following are the details of the purchase price allocated to the intangible assets acquired:


(In millions)	Amount		Weighted Average Life


Technology-based	$	2,493		9 years
Contract-based		1,500		9 years
Customer-related		359		3 years
Marketing-related (trade names)		157		2 years

Fair value of intangible assets acquired	$	4,509		8 years

During the fourth quarter of fiscal year 2015, we recorded $7.5 billion of goodwill and asset impairment charges related to our phone business. These costs are included in impairment, integration, and restructuring expenses in our consolidated income statement. See Note 10 – Goodwill and Note 11 – Intangible Assets for additional details.

Our consolidated income statement for fiscal year 2014 included revenue and operating loss of $2.0 billion and $692 million, respectively, attributable to NDS since the Acquisition.

Following are the supplemental consolidated results of Microsoft Corporation on an unaudited pro forma basis, as if the Acquisition had been consummated on July 1, 2012:


(In millions, except per share amounts)


Year Ended June 30,	2014		2013

Revenue	$	96,248	$	93,243
Net income	$	20,234	$	20,153
Diluted earnings per share	$	2.41	$	2.38

These pro forma results were based on estimates and assumptions, which we believe are reasonable. They are not the results that would have been realized had we been a combined company during the periods presented and are not necessarily indicative of our consolidated results of operations in future periods. The pro forma results include adjustments primarily related to purchase accounting adjustments and the elimination of related party transactions between Microsoft and NDS. Acquisition costs and other nonrecurring charges incurred are included in the earliest period presented.

During the fourth quarter of fiscal year 2014, we incurred $21 million of acquisition costs associated with the purchase of NDS. Acquisition costs are primarily comprised of transaction fees and direct acquisition costs, including legal, finance, consulting, and other professional fees. These costs are included in impairment, integration, and restructuring expenses on our consolidated income statement for fiscal year 2014.

Certain concurrent transactions were recognized separately from the Acquisition. Prior to the Acquisition, we had joint strategic initiatives with Nokia; this contractual relationship was terminated in conjunction with the Acquisition. No gain or loss was recorded upon termination of this agreement, as it was determined to be at market value. In addition, we agreed to license Nokia’s mapping services and will pay Nokia separately for the services provided under a four-year license as they are rendered.

Yammer

On July 18, 2012, we acquired Yammer, Inc. (“Yammer”), a leading provider of enterprise social networks, for $1.1 billion in cash. Yammer added an enterprise social networking service to Microsoft’s portfolio of complementary cloud-based services. The major classes of assets to which we allocated the purchase price were goodwill of $937 million and identifiable intangible assets of $178 million. We assigned the goodwill to Productivity and Business Processes, Intelligent Cloud, and More Personal Computing under our current segment structure. Yammer was consolidated into our results of operations starting on the acquisition date.

Other

During fiscal year 2015, we completed 15 additional acquisitions for total cash consideration of $892 million. These entities have been included in our consolidated results of operations since their respective acquisition dates.

Pro forma results of operations for Mojang and our other acquisitions during the current period have not been presented because the effects of these business combinations, individually and in aggregate, were not material to our consolidated results of operations.

GOODWILL

12 Months Ended

Jun. 30, 2015

GOODWILL

NOTE 10 — GOODWILL

Changes in the carrying amount of goodwill were as follows:


(In millions)	June 30, 2013		Acquisitions		Other			June 30, 2014		Acquisitions		Other			June 30, 2015


Productivity and Business Processes	$	6,057	$	56	$	3		$	6,116	$	376	$	(183	)	$	6,309
Intelligent Cloud		4,580		51		0			4,631		291		(5	)		4,917
More Personal Computing		4,018		5,458		(96	)		9,380		1,788		(5,455	)		5,713

Total goodwill	$	14,655	$	5,565	$	(93	)	$	20,127	$	2,455	$	(5,643	)	$	16,939

(a)	Goodwill acquired during fiscal year 2014 related to the acquisition of NDS. See Note 9 – Business Combinations for additional details.

The measurement periods for the valuation of assets acquired and liabilities assumed end as soon as information on the facts and circumstances that existed as of the acquisition dates becomes available, but do not exceed 12 months. Adjustments in purchase price allocations may require a recasting of the amounts allocated to goodwill retroactive to the periods in which the acquisitions occurred.

Any change in the goodwill amounts resulting from foreign currency translations and purchase accounting adjustments are presented as “Other” in the above table. Also included in “Other” are business dispositions and transfers between business segments due to reorganizations, as applicable. For fiscal year 2015, a $5.1 billion goodwill impairment charge was included in “Other,” as discussed further below. This goodwill impairment charge was included in impairment, integration, and restructuring expenses in our consolidated income statement, and reflected in Corporate and Other in our table of operating income (loss) by segment in Note 22 – Segment Information and Geographic Data.

Our accumulated goodwill impairment as of June 30, 2015 and 2014 was $11.3 billion and $6.2 billion, respectively.

As discussed in Note 22 – Segment Information and Geographic Data, during the first quarter of fiscal year 2016 the Company’s chief operating decision maker requested changes in the information that he regularly reviews for purposes of allocating resources and assessing performance. This resulted in a change in our operating segments and reporting units. We allocated goodwill to our new reporting units using a relative fair value approach. In addition, we completed an assessment of any potential goodwill impairment for all reporting units immediately prior to the reallocation and determined that no impairment existed.

Goodwill Impairment

We test goodwill for impairment annually on May 1 at the reporting unit level, primarily using a discounted cash flow methodology with a peer-based, risk-adjusted weighted average cost of capital. We believe use of a discounted cash flow approach is the most reliable indicator of the fair values of the businesses.

Upon completion of the annual testing as of May 1, 2015, our previous Phone Hardware reporting unit goodwill was determined to be impaired. In the second half of fiscal year 2015, Phone Hardware did not meet its sales volume and revenue goals, and the mix of units sold had lower margins than planned. These results, along with changes in the competitive marketplace and an evaluation of business priorities, led to a shift in strategic direction and reduced future revenue and profitability expectations for the business. As a result of these changes in strategy and expectations, we have forecasted reductions in unit volume growth rates and lower future cash flows used to estimate the fair value of the Phone Hardware reporting unit, which resulted in the determination that an impairment adjustment was required.

Because our annual test indicated that Phone Hardware’s carrying value exceeded its estimated fair value, a second phase of the goodwill impairment test (“Step 2”) was performed specific to Phone Hardware. Under Step 2, the fair value of all Phone Hardware assets and liabilities were estimated, including tangible assets, existing technology, patent agreements, and contractual arrangements, for the purpose of deriving an estimate of the implied fair value of

goodwill. The implied fair value of the goodwill was then compared to the recorded goodwill to determine the amount of the impairment. Assumptions used in measuring the value of these assets and liabilities included the discount rates and royalty rates used in valuing the intangible assets, and consideration of the market environment in valuing the tangible assets. Phone Hardware goodwill is included in our Devices reporting unit, within More Personal Computing under our current segment structure.

No other instances of impairment were identified in our May 1, 2015 test. No impairment of goodwill was identified as of May 1, 2014.

INTANGIBLE ASSETS

12 Months Ended

Jun. 30, 2015

INTANGIBLE ASSETS

NOTE 11 — INTANGIBLE ASSETS

The components of intangible assets, all of which are finite-lived, were as follows:


(In millions)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount


Year Ended June 30,						2015							2014

Technology-based ^(a)	$	6,187	$	(3,410	)	$	2,777	$	6,440	$	(2,615	)	$	3,825
Marketing-related		1,974		(540	)		1,434		1,518		(324	)		1,194
Contract-based		1,344		(862	)		482		2,266		(716	)		1,550
Customer-related		632		(490	)		142		732		(320	)		412

Total	$	10,137	$	(5,302	)	$	4,835	$	10,956	$	(3,975	)	$	6,981

(a)	Technology-based intangible assets included $116 million and $98 million as of June 30, 2015 and 2014, respectively, of net carrying amount of software to be sold, leased, or otherwise marketed.

We estimate that we have no significant residual value related to our intangible assets. During fiscal year 2015, we recorded impairment charges of $2.2 billion related to our previous Phone Hardware reporting unit intangible assets. In the fourth quarter of fiscal year 2015, we tested the intangible assets for recoverability due to changes in facts and circumstances associated with the shift in strategic direction and reduced profitability expectations for Phone Hardware. Based on the results of our testing, we determined that the carrying value of the intangible assets was not recoverable, and an impairment charge was recorded to the extent that estimated fair value exceeded carrying value. We primarily used a relief from royalty income approach to determine the fair value of the intangible assets and determine the amount of impairment. These intangible assets impairment charges were included in impairment, integration, and restructuring expenses in our consolidated income statement, and reflected in Corporate and Other in our table of operating income (loss) by segment in Note 22 – Segment Information and Geographic Data. Phone Hardware intangible assets are included in our Devices reporting unit, within More Personal Computing under our current segment structure.

No material impairments of intangible assets were identified during fiscal year 2014.

The components of intangible assets acquired during the periods presented were as follows:

(In millions)

Amount

Weighted

Average Life

Amount

Weighted

Average Life

Year Ended June 30,

2015

2014

Technology-based

874

5 years

2,841

9 years

Marketing-related

543

8 years

174

2 years

Contract-based

1,500

9 years

Customer-related

4 years

363

3 years

Total

1,454

6 years

4,878

8 years

The table above includes $4.5 billion related to the acquisition of NDS during fiscal year 2014, of which $2.2 billion was impaired in fiscal year 2015. See Note 9 – Business Combination for additional details.

Intangible assets amortization expense was $1.3 billion, $845 million, and $739 million for fiscal years 2015, 2014, and 2013, respectively. Amortization of capitalized software was $79 million, $200 million, and $210 million for fiscal years 2015, 2014, and 2013, respectively.

The following table outlines the estimated future amortization expense related to intangible assets held at June 30, 2015:


(In millions)


Year Ending June 30,

2016	$	910
2017		755
2018		670
2019		554
2020		495
Thereafter		1,451

Total	$	4,835

DEBT

12 Months Ended

Jun. 30, 2015

DEBT

NOTE 12 — DEBT

Short-term Debt

As of June 30, 2015, we had $5.0 billion of commercial paper issued and outstanding, with a weighted-average interest rate of 0.11% and maturities ranging from 8 days to 63 days. As of June 30, 2014, we had $2.0 billion of commercial paper issued and outstanding, with a weighted-average interest rate of 0.12% and maturities ranging from 86 to 91 days. The estimated fair value of this commercial paper approximates its carrying value.

We have two $5.0 billion credit facilities that expire on November 4, 2015 and November 14, 2018, respectively. These credit facilities serve as a back-up for our commercial paper program. As of June 30, 2015, we were in compliance with the only financial covenant in both credit agreements, which requires us to maintain a coverage ratio of at least three times earnings before interest, taxes, depreciation, and amortization to interest expense, as defined in the credit agreements. No amounts were drawn against these credit facilities during any of the periods presented.

Long-term Debt

As of June 30, 2015, the total carrying value and estimated fair value of our long-term debt, including the current portion, were $30.3 billion and $30.5 billion, respectively. This is compared to a carrying value and estimated fair value of our long-term debt of $20.6 billion and $21.5 billion, respectively, as of June 30, 2014. These estimated fair values are based on Level 2 inputs.

The components of our long-term debt, including the current portion, and the associated interest rates were as follows as of June 30, 2015 and 2014:

Due Date

Face Value

June 30,
2015

Face Value

June 30,
2014

Stated
Interest

Rate

Effective
Interest

Rate

(In millions)

Notes

September 25, 2015

1,750

1,750

1.625%

1.795%

February 8, 2016

750

750

2.500%

2.642%

November 15, 2017

600

600

0.875%

1.084%

May 1, 2018

450

450

1.000%

1.106%

December 6, 2018

1,250

1,250

1.625%

1.824%

June 1, 2019

1,000

1,000

4.200%

4.379%

February 12, 2020 ^(a)

1,500

1.850%

1.935%

October 1, 2020

1,000

1,000

3.000%

3.137%

February 8, 2021

500

500

4.000%

4.082%

December 6, 2021 ^(b)

1,950

2,396

2.125%

2.233%

February 12, 2022 ^(a)

1,500

2.375%

2.466%

November 15, 2022

750

750

2.125%

2.239%

May 1, 2023

1,000

1,000

2.375%

2.465%

December 15, 2023

1,500

1,500

3.625%

3.726%

February 12, 2025 ^(a)

2,250

2.700%

2.772%

December 6, 2028 ^(b)

1,950

2,396

3.125%

3.218%

May 2, 2033 ^(b)

613

753

2.625%

2.690%

February 12, 2035 ^(a)

1,500

3.500%

3.604%

June 1, 2039

750

750

5.200%

5.240%

October 1, 2040

1,000

1,000

4.500%

4.567%

February 8, 2041

1,000

1,000

5.300%

5.361%

November 15, 2042

900

900

3.500%

3.571%

May 1, 2043

500

500

3.750%

3.829%

December 15, 2043

500

500

4.875%

4.918%

February 12, 2045 ^(a)

1,750

3.750%

3.800%

February 12, 2055 ^(a)

2,250

4.000%

4.063%

Total

30,463

20,745

(a)	In February 2015, we issued $10.8 billion of debt securities.

(b)	Euro-denominated debt securities.

The notes in the table above are senior unsecured obligations and rank equally with our other senior unsecured debt outstanding. Interest on these notes is paid semi-annually, except for the euro-denominated debt securities on which interest is paid annually. Cash paid for interest on our debt for fiscal years 2015, 2014, and 2013 was $620 million, $509 million, and $371 million, respectively. As of June 30, 2015 and 2014, the aggregate unamortized discount for our long-term debt, including the current portion, was $156 million and $100 million, respectively.

Debt Service

Maturities of our long-term debt for each of the next five years and thereafter are as follows:


(In millions)


Year Ending June 30,

2016	$	2,500
2017		0
2018		1,050
2019		2,250
2020		1,500
Thereafter		23,163

Total	$	30,463

INCOME TAXES

12 Months Ended

Jun. 30, 2015

INCOME TAXES

NOTE 13 — INCOME TAXES

The components of the provision for income taxes were as follows:


(In millions)


Year Ended June 30,	2015		2014			2013

Current Taxes

U.S. federal	$	3,661	$	3,738		$	3,131
U.S. state and local		364		266			332
Foreign		2,065		2,073			1,745

Current taxes		6,090		6,077			5,208

Deferred Taxes

Deferred taxes		224		(331	)		(19	)

Provision for income taxes	$	6,314	$	5,746		$	5,189

U.S. and foreign components of income before income taxes were as follows:


(In millions)


Year Ended June 30,		2015		2014		2013

U.S.	$	7,363	$	7,127	$	6,674
Foreign		11,144		20,693		20,378

Income before income taxes	$	18,507	$	27,820	$	27,052

The items accounting for the difference between income taxes computed at the U.S. federal statutory rate and our effective rate were as follows:




Year Ended June 30,	2015		2014		2013

Federal statutory rate		35.0%		35.0%		35.0%
Effect of:
Foreign earnings taxed at lower rates		(20.9)%		(17.1)%		(17.5)%
Phone nondeductible charges and valuation allowance		19.1%		0.9%		0%
Domestic production activities deduction		(2.4)%		(1.0)%		(1.2)%
Other reconciling items, net		3.3%		2.9%		2.9%

Effective rate		34.1%		20.7%		19.2%

The reduction from the federal statutory rate is primarily due to foreign earnings taxed at lower rates resulting from producing and distributing our products and services through our foreign regional operations centers in Ireland, Singapore, and Puerto Rico. In fiscal year 2015, this reduction was mostly offset by losses in foreign jurisdictions for which we may not realize a tax benefit, primarily as a result of impairment and restructuring charges. Excluding these losses, our foreign earnings, which are taxed at rates lower than the U.S. rate and are generated from our regional operating centers, were 73%, 81%, and 79% of our foreign income before tax in fiscal years 2015, 2014, and 2013, respectively. In general, other reconciling items consist of interest, U.S. state income taxes, and credits. In fiscal years 2015, 2014, and 2013, there were no individually significant other reconciling items.

The components of the deferred income tax assets and liabilities were as follows:


(In millions)


June 30,	2015			2014

Deferred Income Tax Assets

Stock-based compensation expense	$	884		$	903
Other expense items		1,531			1,112
Restructuring charges		211			0
Unearned revenue		520			520
Impaired investments		257			272
Loss carryforwards		1,158			922
Depreciation and amortization		798			0
Other revenue items		56			64

Deferred income tax assets		5,415			3,793
Less valuation allowance		(2,265	)		(903	)

Deferred income tax assets, net of valuation allowance	$	3,150		$	2,890


Deferred Income Tax Liabilities

Foreign earnings	$	(1,280	)	$	(1,140	)
Unrealized gain on investments and debt		(2,223	)		(1,974	)
Depreciation and amortization		(685	)		(470	)
Other		(29	)		(87	)

Deferred income tax liabilities		(4,217	)		(3,671	)

Net deferred income tax assets (liabilities)	$	(1,067	)	$	(781	)


Reported As

Current deferred income tax assets	$	1,915		$	1,941
Other current liabilities		(211	)		(125	)
Other long-term assets		64			131
Long-term deferred income tax liabilities		(2,835	)		(2,728	)

Net deferred income tax assets (liabilities)	$	(1,067	)	$	(781	)

As of June 30, 2015, we had net operating loss carryforwards of $4.6 billion, including $1.8 billion of foreign net operating loss carryforwards acquired through our acquisition of Skype, and $545 million through our acquisition of NDS. The valuation allowance disclosed in the table above relates to the foreign net operating loss carryforwards and other future deductible net deferred tax assets that may not be realized.

Deferred income tax balances reflect the effects of temporary differences between the carrying amounts of assets and liabilities and their tax bases and are stated at enacted tax rates expected to be in effect when the taxes are actually paid or recovered.

As of June 30, 2015, we have not provided deferred U.S. income taxes or foreign withholding taxes on temporary differences of approximately $108.3 billion resulting from earnings for certain non-U.S. subsidiaries which are permanently reinvested outside the U.S. The unrecognized deferred tax liability associated with these temporary differences was approximately $34.5 billion at June 30, 2015.

Income taxes paid were $4.4 billion, $5.5 billion, and $3.9 billion in fiscal years 2015, 2014, and 2013, respectively.

Uncertain Tax Positions

Unrecognized tax benefits as of June 30, 2015, 2014, and 2013, were $9.6 billion, $8.7 billion, and $8.6 billion, respectively. If recognized, these tax benefits would affect our effective tax rates for fiscal years 2015, 2014, and 2013, by $7.9 billion, $7.0 billion, and $6.5 billion, respectively.

As of June 30, 2015, 2014, and 2013, we had accrued interest expense related to uncertain tax positions of $1.7 billion, $1.5 billion, and $1.3 billion, respectively, net of federal income tax benefits. Interest expense on unrecognized tax benefits was $237 million, $235 million, and $400 million in fiscal years 2015, 2014, and 2013, respectively, and was included in income tax expense.

The aggregate changes in the balance of unrecognized tax benefits were as follows:


(In millions)


Year Ended June 30,	2015			2014			2013

Balance, beginning of year	$	8,714		$	8,648		$	7,202
Decreases related to settlements		(50	)		(583	)		(30	)
Increases for tax positions related to the current year		1,091			566			612
Increases for tax positions related to prior years		94			217			931
Decreases for tax positions related to prior years		(144	)		(95	)		(65	)
Decreases due to lapsed statutes of limitations		(106	)		(39	)		(2	)

Balance, end of year	$	9,599		$	8,714		$	8,648

During the third quarter of fiscal year 2011, we reached a settlement of a portion of an I.R.S. audit of tax years 2004 to 2006, which reduced our income tax expense by $461 million. While we settled a portion of the I.R.S. audit, we remain under audit for these years. In February 2012, the I.R.S. withdrew its 2011 Revenue Agents Report and reopened the audit phase of the examination. As of June 30, 2015, the primary unresolved issue relates to transfer pricing, which could have a significant impact on our consolidated financial statements if not resolved favorably. We believe our allowances for income tax contingencies are adequate. We have not received a proposed assessment for the unresolved issues and do not expect a final resolution of these issues in the next 12 months. Based on the information currently available, we do not anticipate a significant increase or decrease to our tax contingencies for these issues within the next 12 months. We also continue to be subject to examination by the I.R.S. for tax years 2007 to 2015.

We are subject to income tax in many jurisdictions outside the U.S. Our operations in certain jurisdictions remain subject to examination for tax years 1996 to 2015, some of which are currently under audit by local tax authorities. The resolutions of these audits are not expected to be material to our consolidated financial statements.

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References+ Details

RESTRUCTURING CHARGES

12 Months Ended

Jun. 30, 2015

RESTRUCTURING CHARGES

NOTE 14 — RESTRUCTURING CHARGES

Phone Hardware Integration

In July 2014, we announced a restructuring plan to simplify our organization and align NDS with our company’s overall strategy (the “Phone Hardware Integration Plan”). Pursuant to the Phone Hardware Integration Plan, we eliminated approximately 19,000 positions in fiscal year 2015, including approximately 13,000 professional and factory positions related to the NDS business. The actions associated with the Phone Hardware Integration Plan were completed as of June 30, 2015.

In connection with the Phone Hardware Integration Plan, we incurred restructuring charges of $1.3 billion during fiscal year 2015, including severance expenses and other reorganization costs, primarily associated with our facilities consolidation and write-downs of certain assets.

Phone Hardware Restructuring

In June 2015, management approved a plan to restructure our phone business to better focus and align resources (the “Phone Hardware Restructuring Plan”), under which we will eliminate up to 7,800 positions in fiscal year 2016. In connection with the Phone Hardware Restructuring Plan, we recorded restructuring charges of $780 million during fiscal year 2015, including severance expenses and other reorganization costs, primarily related to contractual obligations. The actions associated with the Phone Hardware Restructuring Plan are expected to be completed as of June 30, 2016.

Restructuring charges associated with each plan were included in impairment, integration, and restructuring expenses in our consolidated income statement, and reflected in Corporate and Other in our table of operating income (loss) by segment in Note 22 – Segment Information and Geographic Data.

Changes in the restructuring liability were as follows:


(In millions)	Severance			Asset Impairments and Other^(a)			Total


Restructuring liability as of June 30, 2014	$	0		$	0		$	0
Restructuring charges		1,308			770			2,078
Cash paid		(701	)		(134	)		(835	)
Other		(19	)		(387	)		(406	)

Restructuring liability as of June 30, 2015	$	588		$	249		$	837

(a)	“Asset Impairments and Other” primarily reflects activities associated with the consolidation of our facilities and manufacturing operations, including asset write-downs of $372 million during fiscal year 2015, as well as contract termination costs.

OTHER LONG-TERM LIABILITIES

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

+ References+ Details

UNEARNED REVENUE

12 Months Ended

Jun. 30, 2015

UNEARNED REVENUE

NOTE 15 — UNEARNED REVENUE

Unearned revenue by segment was as follows:


(In millions)


June 30,	2015		2014

Productivity and Business Processes	$	11,643	$	11,412
Intelligent Cloud		10,346		9,812
More Personal Computing		3,246		3,579
Corporate and Other		83		355

Total	$	25,318	$	25,158

OTHER LONG-TERM LIABILITIES

12 Months Ended

Jun. 30, 2015

NOTE 16 — OTHER LONG-TERM LIABILITIES


(In millions)


June 30,	2015		2014

Tax contingencies and other tax liabilities	$	12,290	$	10,510
Other		1,254		1,084

Total	$	13,544	$	11,594

COMMITMENTS AND GUARANTEES

12 Months Ended

Jun. 30, 2015

COMMITMENTS AND GUARANTEES

NOTE 17 — COMMITMENTS AND GUARANTEES

Construction and Operating Leases

We have committed $681 million for constructing new buildings, building improvements, and leasehold improvements as of June 30, 2015.

We have operating leases for most U.S. and international sales and support offices, research and development facilities, manufacturing facilities, retail stores, and certain equipment. Rental expense for facilities operating leases was $989 million, $874 million, and $711 million, in fiscal years 2015, 2014, and 2013, respectively. Future minimum rental commitments under non-cancellable facilities operating leases in place as of June 30, 2015 are as follows:


(In millions)


Year Ending June 30,

2016	$	863
2017		803
2018		735
2019		611
2020		524
Thereafter		1,617

Total	$	5,153

Indemnifications

We provide indemnifications of varying scope and size to certain customers against claims of intellectual property infringement made by third parties arising from the use of our products and certain other matters. We evaluate estimated losses for these indemnifications, and we consider such factors as the degree of probability of an unfavorable outcome and the ability to make a reasonable estimate of the amount of loss. To date, we have not encountered significant costs as a result of these obligations and have not accrued any liabilities related to these indemnifications in our consolidated financial statements.

CONTINGENCIES

12 Months Ended

Jun. 30, 2015

CONTINGENCIES

NOTE 18 — CONTINGENCIES

Patent and Intellectual Property Claims

Motorola litigation

In October 2010, Microsoft filed patent infringement complaints against Motorola Mobility (“Motorola”) with the International Trade Commission (“ITC”) and in U.S. District Court in Seattle for infringement of nine Microsoft patents by Motorola’s Android devices. Microsoft and Motorola have filed additional claims against each other with the ITC, in federal district courts in Seattle, Wisconsin, Florida, and California, and in courts in Germany. The nature of the claims asserted and status of individual matters are summarized below.

International Trade Commission

In 2012, the ITC issued a limited exclusion order against Motorola on one Microsoft patent, which was affirmed on appeal. In 2013, Microsoft filed an action in U.S. District Court in Washington, D.C. seeking an order to compel enforcement of the ITC’s 2012 import ban against infringing Motorola products by the Bureau of Customs and Border Protection (“CBP”), after learning that CBP had failed to fully enforce the order.

In 2010, Motorola filed an action against Microsoft with the ITC alleging infringement of five Motorola patents by Xbox consoles and accessories and seeking an exclusion order to prohibit importation of the allegedly infringing Xbox products. At Motorola’s request, the ITC terminated its investigation of four Motorola patents. In 2013, the ITC affirmed there was no violation of the remaining Motorola patent. Motorola appealed the ITC’s decision to the U.S. Court of Appeals for the Federal Circuit.

U.S. District Court

The Seattle District Court case filed in October 2010 by Microsoft as a companion to Microsoft’s ITC case against Motorola was stayed pending the outcome of the ITC case.

In November 2010, Microsoft sued Motorola for breach of contract in U.S. District Court in Seattle, alleging that Motorola breached its commitments to standards-setting organizations to license to Microsoft certain patents on reasonable and non-discriminatory (“RAND”) terms and conditions. Motorola has declared these patents essential to the implementation of the H.264 video standard and the 802.11 Wi-Fi standard. In the Motorola ITC case described above and in suits described below, Motorola or a Motorola affiliate subsequently sued Microsoft on those patents in U.S. District Courts, in the ITC, and in Germany. In 2012, the Seattle District Court granted a partial summary judgment in favor of Microsoft ruling that (1) Motorola had committed to standards organizations to license its declared-essential patents on RAND terms and conditions; and (2) Microsoft is a third-party beneficiary of those commitments. After trial, the Seattle District Court set per unit royalties for Motorola’s H.264 and 802.11 patents, which resulted in an immaterial Microsoft liability. In 2013, following trial of Microsoft’s breach of contract claim, a jury awarded $14.5 million in damages to Microsoft. Motorola appealed with respect to both the Court’s determination of royalties due Motorola and the jury’s award of damages against Motorola; in July 2015 the U.S. Court of Appeals for the Ninth Circuit affirmed the trial court’s judgment in all respects.

Cases filed by Motorola in Wisconsin, California, and Florida, with the exception of one case in Wisconsin initially stayed and later dismissed without prejudice (a companion case to Motorola’s ITC action), have been transferred to the U.S District Court in Seattle. Motorola and Microsoft both seek damages as well as injunctive relief. The court has stayed these cases in Seattle on agreement of the parties.

•

In the transferred cases, Motorola asserts 15 patents are infringed by a range of Microsoft products including mobile and PC operating system, productivity, server, communication, browser and gaming products.

•

In the Motorola action originally filed in California, Motorola asserts Microsoft violated antitrust laws in connection with Microsoft’s assertion of patents against Motorola that Microsoft agreed to license to certain qualifying entities on RAND terms and conditions.

•

In counterclaims, Microsoft asserts 14 patents are infringed by Motorola Android devices and certain Motorola digital video recorders.

Germany

In 2011, Motorola filed patent infringement actions in Germany against Microsoft and several Microsoft subsidiaries.

•

Motorola asserts two patents (both now expired) are essential to implementation of the H.264 video standard, and Motorola alleges that H.264 capable products including Xbox 360, Windows 7, Media Player, and Internet Explorer infringe those patents. In 2012, the court issued an injunction relating to all H.264 capable Microsoft products in Germany, which Microsoft appealed. Orders in the litigation pending in Seattle, Washington described above enjoin Motorola from enforcing the German injunction.

•

Motorola asserts that one patent covers certain syncing functionality in the ActiveSync protocol employed by Windows Phone 7, Outlook Mobile, Hotmail Mobile, Exchange Online, Exchange Server, and Hotmail Server. In 2013, the court stayed the case pending the outcome of parallel proceedings in which Microsoft is seeking to invalidate the patent. In 2013, the Federal Patent Court invalidated the originally issued patent claims, but ruled that certain new amended claims were patentable. Both Motorola and Microsoft appealed. In June 2014, the court reopened infringement proceedings, which are currently stayed.

•

Microsoft may be able to mitigate the adverse impact of any injunction by altering its products to avoid Motorola’s infringement claims.

•

Any damages would be determined in separate proceedings.

In lawsuits Microsoft filed in Germany in 2011 and 2012, Microsoft asserts that Motorola Android devices infringe Microsoft patents and is seeking damages and injunctions. In 2012, regional courts in Germany issued injunctions on three of the Microsoft patents, which Motorola appealed. One judgment has been affirmed on appeal (and Motorola has further appealed), and the other two appeals are pending (in one of these two cases the asserted patent has expired). An additional infringement proceeding is still pending in the court of first instance. In actions filed separately by Motorola to invalidate these patents, the Federal Patent Court in 2013 and 2014 held the Microsoft patents invalid, and Microsoft appealed. For the cases in which Microsoft obtained injunctions, if Motorola were to prevail following all appeals, Motorola could have a claim against Microsoft for damages caused by an erroneously granted injunction.

IPCom patent litigation

IPCom GmbH & Co. (“IPCom”) is a German company that holds a large portfolio of mobile technology-related patents spanning about 170 patent families and addressing a broad range of cellular technologies. IPCom has asserted 19 of these patents in litigation against Nokia and many of the leading cell phone companies and operators. In November 2014, Microsoft and IPCom entered into a standstill agreement staying all of the pending litigation against Microsoft to permit the parties to pursue settlement discussions.

InterDigital patent litigation

InterDigital Technology Corporation and InterDigital Communications Corporation (collectively, “IDT”) filed four patent infringement cases against Nokia in the ITC and in U.S. District Court for the District of Delaware between 2007 and 2013. We have been added to these cases as a defendant. IDT has cases pending against other defendants based on the same patents because most of the patents at issue allegedly relate to 3G and 4G wireless communications standards essential functionality. The cases involving us include three ITC investigations where IDT is seeking an order excluding importation of 3G and 4G phones into the U.S. and one active case in U.S. District Court in Delaware seeking an injunction and damages. The ITC issued a finding of no violation relating to two of the investigations, which IDT appealed. In February 2015, the U.S. Court of Appeals for the Federal Circuit affirmed one of the ITC’s findings; the other has been stayed. In the third ITC action the administrative law judge (“ALJ”) issued a determination finding: (1) infringement; (2) evidence of “reverse hold-up;” and (3) the public interest does not preclude issuance of an exclusion order. The ITC is reviewing the ALJ’s initial determination. The trial in the Delaware case is scheduled for November 2015.

European copyright levies

We assumed from Nokia all potential liability due to Nokia’s alleged failure to pay “private copying levies” in various European countries based upon sale of memory cards and mobile phones that incorporate blank memory. The levies are based upon a 2001 European Union (“EU”) Directive establishing a right for end users to make copies of copyrighted works for personal or private use, but also allowing the collection of levies based upon sales of blank media or recording devices to compensate copyright holders for private copying. Various collecting societies in EU countries initiated litigation against Nokia, stating that Nokia must pay levies not only based upon sales of blank memory cards, but also phones that include blank memory for data storage on the phones, regardless of actual usage of that memory. The most significant cases against Nokia are pending in Germany and Austria, due to both the high volume of sales and high levy amounts sought in these countries. Since April 2015, we and other major manufacturers have been engaged in settlement negotiations with the German collecting society, with the aim of concluding negotiations by October 2015.

Other patent and intellectual property claims

In addition to these cases, there are approximately 70 other patent infringement cases pending against Microsoft.

Antitrust, Unfair Competition, and Overcharge Class Actions

A large number of antitrust and unfair competition class action lawsuits were filed against us in various state, federal, and Canadian courts on behalf of various classes of direct and indirect purchasers of our PC operating system and certain other software products between 1999 and 2005.

We obtained dismissals or reached settlements of all claims made in the U.S. Under the settlements, generally class members can obtain vouchers that entitle them to be reimbursed for purchases of a wide variety of platform-neutral computer hardware and software. The total value of vouchers that we may issue varies by state. We will make available to certain schools a percentage of those vouchers that are not issued or claimed (one-half to two-thirds depending on the state). The total value of vouchers we ultimately issue will depend on the number of class members who make claims and are issued vouchers. We estimate the total remaining cost of the settlements is approximately $200 million, all of which had been accrued as of June 30, 2015.

Three similar cases pending in British Columbia, Ontario, and Quebec, Canada have not been settled. In 2010, the court in the British Columbia case certified it as a class action. After the British Columbia Court of Appeal dismissed the case, in 2013 the Canadian Supreme Court reversed the appellate court and reinstated part of the British Columbia case, which is now scheduled for trial in 2016. The other two cases are inactive.

Other Antitrust Litigation and Claims

GO Computer litigation

In June 2005, GO Computer Inc. and co-founder Jerry Kaplan filed a complaint in California state court asserting antitrust claims under the Cartwright Act related to the business of the former GO Corporation in the early 1990s and its successor in interest, Lucent Corporation in the early 2000s. All claims prior to June 2001 have been dismissed with prejudice as barred by the statute of limitations. The case is moving forward with discovery, and a trial is set for September 2015.

China State Administration for Industry and Commerce investigation

In July 2014, Microsoft was informed that China’s State Administration for Industry and Commerce (“SAIC”) had begun a formal investigation relating to China’s Anti-Monopoly Law, and the SAIC conducted onsite inspections of Microsoft offices in Beijing, Shanghai, Guangzhou, and Chengdu. SAIC has stated the investigation relates to compatibility, bundle sales, and file verification issues related to Windows and Office software.

Product-Related Litigation

U.S. cell phone litigation

Nokia, along with other handset manufacturers and network operators, is a defendant in 19 lawsuits filed in the Superior Court for the District of Columbia by individual plaintiffs who allege that radio emissions from cellular handsets caused their brain tumors and other adverse health effects. We have assumed responsibility for these claims as part of the NDS acquisition and have been substituted for the Nokia defendants. Nine of these cases were filed in 2002 and are consolidated for certain pre-trial proceedings; the remaining 10 cases are stayed. In a separate 2009 decision, the Court of Appeals for the District of Columbia held that adverse health effect claims arising from the use of cellular handsets that operate within the U.S. Federal Communications Commission radio frequency emission guidelines (“FCC Guidelines”) are pre-empted by federal law. The plaintiffs allege that their handsets either operated outside the FCC Guidelines or were manufactured before the FCC Guidelines went into effect. The lawsuits also allege an industry-wide conspiracy to manipulate the science and testing around emission guidelines.

In September 2013, defendants in the consolidated cases moved to exclude plaintiffs’ expert evidence of general causation on the basis of flawed scientific methodologies. In March 2014, defendants filed a separate motion to preclude plaintiffs’ general causation testimony. In August 2014, the court granted in part defendants’ motion to exclude plaintiffs’ general causation experts. The plaintiffs filed an interlocutory appeal. In December 2014, the District of Columbia Court of Appeals agreed to hear en banc defendants’ interlocutory appeal challenging the standard for evaluating expert scientific evidence. Trial court proceedings are stayed pending resolution of the appeal.

Canadian cell phone class action

Nokia, along with other handset manufacturers and network operators, is a defendant in a 2013 class action lawsuit filed in the Supreme Court of British Columbia by a purported class of Canadians who have used cellular phones for at least 1,600 hours, including a subclass of users with brain tumors. Microsoft was served with the complaint in June 2014 and has been substituted for the Nokia defendants. The litigation is not yet active as several defendants remain to be served.

Other

We also are subject to a variety of other claims and suits that arise from time to time in the ordinary course of our business. Although management currently believes that resolving claims against us, individually or in aggregate, will not have a material adverse impact on our consolidated financial statements, these matters are subject to inherent uncertainties and management’s view of these matters may change in the future.

As of June 30, 2015, we accrued aggregate legal liabilities of $614 million in other current liabilities and $20 million in other long-term liabilities. While we intend to defend these matters vigorously, adverse outcomes that we estimate could reach approximately $1.6 billion in aggregate beyond recorded amounts are reasonably possible. Were unfavorable final outcomes to occur, there exists the possibility of a material adverse impact on our consolidated financial statements for the period in which the effects become reasonably estimable.

STOCKHOLDERS' EQUITY

12 Months Ended

Jun. 30, 2015

STOCKHOLDERS' EQUITY

NOTE 19 — STOCKHOLDERS’ EQUITY

Shares Outstanding

Shares of common stock outstanding were as follows:


(In millions)


Year Ended June 30,	2015		2014		2013

Balance, beginning of year	8,239		8,328		8,381
Issued	83		86		105
Repurchased	(295	)	(175	)	(158	)

Balance, end of year	8,027		8,239		8,328

Share Repurchases

On September 16, 2013, our Board of Directors approved a share repurchase program authorizing up to $40.0 billion in share repurchases. The share repurchase program became effective on October 1, 2013, has no expiration date, and may be suspended or discontinued at any time without notice. This share repurchase program replaced the share repurchase program that was announced on September 22, 2008 and expired on September 30, 2013. As of June 30, 2015, $21.9 billion remained of our $40.0 billion share repurchase program. All repurchases were made using cash resources.

We repurchased the following shares of common stock under the above-described repurchase plans:


(In millions)	Shares		Amount		Shares		Amount		Shares		Amount


Year Ended June 30,		2015				2014^(a)				2013

First quarter		43	$	2,000		47	$	1,500		33	$	1,000
Second quarter		43		2,000		53		2,000		58		1,607
Third quarter		116		5,000		47		1,791		36		1,000
Fourth quarter		93		4,209		28		1,118		31		1,000

Total		295	$	13,209		175	$	6,409		158	$	4,607

(a)

Of the 175 million shares repurchased in fiscal year 2014, 128 million shares were repurchased for $4.9 billion under the share repurchase program approved by our Board of Directors on September 16, 2013 and 47 million shares were repurchased for $1.5 billion under the share repurchase program that was announced on September 22, 2008 and expired on September 30, 2013.

The above table excludes shares repurchased to settle statutory employee tax withholding related to the vesting of stock awards.

Dividends

In fiscal year 2015, our Board of Directors declared the following dividends:

Declaration Date

Dividend

Per Share

Record Date

Total Amount

Payment Date

(In millions)

September 16, 2014

0.31

November 20, 2014

2,547

December 11, 2014

December 3, 2014

0.31

February 19, 2015

2,532

March 12, 2015

March 10, 2015

0.31

May 21, 2015

2,496

June 11, 2015

June 9, 2015

0.31

August 20, 2015

2,488

September 10, 2015

The dividend declared on June 9, 2015 will be paid after the filing date of the 2015 Form 10-K and was included in other current liabilities as of June 30, 2015.

In fiscal year 2014, our Board of Directors declared the following dividends:


Declaration Date	Dividend Per Share		Record Date		Total Amount		Payment Date

					(In millions)

September 16, 2013	$	0.28		November 21, 2013	$	2,332		December 12, 2013
November 19, 2013	$	0.28		February 20, 2014	$	2,322		March 13, 2014
March 11, 2014	$	0.28		May 15, 2014	$	2,309		June 12, 2014
June 10, 2014	$	0.28		August 21, 2014	$	2,307		September 11, 2014

The dividend declared on June 10, 2014 was included in other current liabilities as of June 30, 2014.

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

ACCUMULATED OTHER COMPREHENSIVE INCOME

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+ Details

ACCUMULATED OTHER COMPREHENSIVE INCOME

12 Months Ended

Jun. 30, 2015

NOTE 20 — ACCUMULATED OTHER COMPREHENSIVE INCOME

The following table summarizes the changes in accumulated other comprehensive income by component:


(In millions)


Year Ended June 30,	2015			2014			2013

Derivatives

Accumulated other comprehensive income balance, beginning of period	$	31		$	66		$	92
Unrealized gains, net of tax effects of $35, $2 and $54		1,152			63			101

Reclassification adjustments for gains included in revenue		(608	)		(104	)		(195	)
Tax expense included in provision for income taxes		15			6			68

Amounts reclassified from accumulated other comprehensive income		(593	)		(98	)		(127	)

Net current period other comprehensive income (loss)		559			(35	)		(26	)

Accumulated other comprehensive income balance, end of period	$	590		$	31		$	66


Investments

Accumulated other comprehensive income balance, beginning of period	$	3,531		$	1,794		$	1,431
Unrealized gains, net of tax effects of $59, $1,067 and $244		110			2,053			453

Reclassification adjustments for gains included in other income (expense), net		(728	)		(447	)		(139	)
Tax expense included in provision for income taxes		256			131			49

Amounts reclassified from accumulated other comprehensive income		(472	)		(316	)		(90	)

Net current period other comprehensive income (loss)		(362	)		1,737			363

Accumulated other comprehensive income balance, end of period	$	3,169		$	3,531		$	1,794


Translation Adjustments and Other

Accumulated other comprehensive income (loss) balance, beginning of period	$	146		$	(117	)	$	(101	)
Translation adjustments and other, net of tax effects of $16, $12 and $(8)		(1,383	)		263			(16	)

Accumulated other comprehensive income (loss) balance, end of period	$	(1,237	)	$	146		$	(117	)

Accumulated other comprehensive income, end of period	$	2,522		$	3,708		$	1,743

The entire disclosure for comprehensive income, which includes, but is not limited to, 1) the amount of income tax expense or benefit allocated to each component of other comprehensive income, including reclassification adjustments, 2) the reclassification adjustments for each classification of other comprehensive income and 3) the ending accumulated balances for each component of comprehensive income.

EMPLOYEE STOCK AND SAVINGS PLANS

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+ Details

EMPLOYEE STOCK AND SAVINGS PLANS

12 Months Ended

Jun. 30, 2015

NOTE 21 — EMPLOYEE STOCK AND SAVINGS PLANS

We grant stock-based compensation to directors and employees. At June 30, 2015, an aggregate of 294 million shares were authorized for future grant under our stock plans. Awards that expire or are canceled without delivery of shares generally become available for issuance under the plans. We issue new shares of Microsoft common stock to satisfy exercises and vesting of awards granted under all of our stock plans.

Stock-based compensation expense and related income tax benefits were as follows:


(In millions)


Year Ended June 30,		2015		2014		2013

Stock-based compensation expense	$	2,574	$	2,446	$	2,406
Income tax benefits related to stock-based compensation	$	868	$	830	$	842

Stock Plans

Stock awards

Stock awards (“SAs”) are grants that entitle the holder to shares of Microsoft common stock as the award vests. SAs generally vest over a four or five-year period.

Executive incentive plan

Under the Executive Incentive Plan, the Compensation Committee awards SAs to executive officers and certain senior executives. The SAs vest ratably in August of each of the four years following the grant date.

Activity for all stock plans

The fair value of each award was estimated on the date of grant using the following assumptions:

Year Ended June 30,

2015

2014

2013

Dividends per share (quarterly amounts)

0.28 – $0.31

0.23 – $0.28

0.20 – $0.23

Interest rates range

1.2% – 1.9%

1.3% – 1.8%

0.6% – 1.1%

During fiscal year 2015, the following activity occurred under our stock plans:


	Shares			Weighted Average Grant-Date Fair Value


	(In millions)

Stock Awards

Nonvested balance, beginning of year		259		$	27.88
Granted		75		$	42.36
Vested		(94	)	$	27.47
Forfeited		(24	)	$	31.81

Nonvested balance, end of year		216		$	32.72

As of June 30, 2015, there was approximately $4.7 billion of total unrecognized compensation costs related to stock awards. These costs are expected to be recognized over a weighted average period of 3 years.

During fiscal years 2014 and 2013, the following activity occurred under our stock plans:


(In millions, except fair values)	2014		2013


Stock Awards

Awards granted ^(a)		103		104
Weighted average grant-date fair value	$	31.50	$	28.37

(a)	Awards granted during fiscal year 2014 included four million shares in stock replacement awards related to the acquisition of NDS. The weighted average grant-date fair value was $37.64.

Total vest-date fair value of stock awards vested was $4.2 billion, $3.2 billion, and $2.8 billion, for fiscal years 2015, 2014, and 2013, respectively.

Employee Stock Purchase Plan

We have an employee stock purchase plan (the “Plan”) for all eligible employees. Shares of our common stock may be purchased by employees at three-month intervals at 90% of the fair market value on the last trading day of each three-month period. Employees may purchase shares having a value not exceeding 15% of their gross compensation during an offering period. Employees purchased the following shares during the periods presented:


(Shares in millions)


Year Ended June 30,		2015		2014		2013

Shares purchased		16		18		20
Average price per share	$	39.87	$	33.60	$	26.81

At June 30, 2015, 157 million shares of our common stock were reserved for future issuance through the Plan.

Savings Plan

We have a savings plan in the U.S. that qualifies under Section 401(k) of the Internal Revenue Code, and a number of savings plans in international locations. Participating U.S. employees may contribute up to 75% of their salary, but not more than statutory limits. We contribute fifty cents for each dollar of the first 6% a participant contributes in this plan, with a maximum contribution of the lesser of 3% of a participant’s earnings or 3% of the IRS compensation limit for the given year. Matching contributions for all plans were $454 million, $420 million, and $393 million in fiscal years 2015, 2014, and 2013, respectively, and were expensed as contributed. Matching contributions in the U.S. plan are invested proportionate to each participant’s voluntary contributions in the investment options provided under the plan. Investment options in the U.S. plan include Microsoft common stock, but neither participant nor our matching contributions are required to be invested in Microsoft common stock.

SEGMENT INFORMATION AND GEOGRAPHIC DATA

12 Months Ended

Jun. 30, 2015

SEGMENT INFORMATION AND GEOGRAPHIC DATA

NOTE 22 – SEGMENT INFORMATION AND GEOGRAPHIC DATA

In its operation of the business, management, including our chief operating decision maker, the company’s Chief Executive Officer, reviews certain financial information, including segmented internal profit and loss statements prepared on a basis not consistent with U.S. GAAP.

On April 25, 2014, we acquired substantially all of NDS. See Note 9 – Business Combinations for additional details. NDS has been included in our consolidated results of operations since the acquisition date. We report the financial performance of the acquired business in More Personal Computing under our current segment structure. The contractual relationship with Nokia related to those initiatives ended in conjunction with the acquisition.

In June 2015, we announced a change in organizational structure as part of our transformation in the mobile-first, cloud-first world. During the first quarter of fiscal year 2016, the Company’s chief operating decision maker requested changes in the information that he regularly reviews for purposes of allocating resources and assessing performance. As a result, beginning in fiscal year 2016, we report our financial performance based on our new segments – Productivity and Business Processes, Intelligent Cloud, and More Personal Computing – and analyze operating income as the measure of segment profitability. In this Form 8-K, we have recast certain prior period amounts to conform to the way we internally manage and monitor segment performance.

Our reportable segments are described below.

Productivity and Business Processes

Our Productivity and Business Processes segment consists of products and services in our portfolio of productivity, communication, and information services, spanning a variety of devices and platforms. This segment primarily comprises:

•

Office Commercial, including volume licensing and subscriptions to Office 365 Commercial for products and services such as Microsoft Office, Exchange, SharePoint, and Skype for Business, and related Client Access Licenses (“CALs”).

•

Office Consumer, including Office sold through retail or through an Office 365 Consumer subscription, and Office Consumer Services, including Outlook.com, OneDrive, and consumer Skype services.

•

Microsoft Dynamics business solutions, including Dynamics ERP products, Dynamics CRM on-premises, and Dynamics CRM Online (“Microsoft Dynamics”).

Intelligent Cloud

Our Intelligent Cloud segment consists of our public, private, and hybrid server products and services that can power modern business. This segment primarily comprises:

•

Server products and services, including Windows Server, Microsoft SQL Server, Visual Studio, System Center, and related CALs, as well as Microsoft Azure.

•

Enterprise Services, including Premier Support Services and Microsoft Consulting Services.

More Personal Computing

Our More Personal Computing segment consists of products and services geared towards harmonizing the interests of end users, developers, and IT professionals across screens of all sizes. This segment primarily comprises:

•

Windows, including Windows OEM licensing (“Windows OEM”) and other non-volume licensing of the Windows operating system, volume licensing of the Windows operating system (“Windows VL”), patent licensing, Windows Embedded, MSN display advertising, and Windows Phone licensing.

•

Devices, including phones, Surface, and Microsoft PC accessories.

•

Gaming, including Xbox hardware; Xbox Live, comprising transactions, subscriptions, and advertising; video games; and third-party video game royalties.

•

Search advertising.

Revenue and costs are generally directly attributed to our segments. However, due to the integrated structure of our business, certain revenue recognized and costs incurred by one segment may benefit other segments. Revenue on certain contracts is allocated among the segments based on the relative value of the underlying products and services, which can include allocation based on actual prices charged, prices when sold separately, or estimated costs plus a profit margin. Cost of revenue is allocated in certain cases based on a relative revenue methodology. Operating expenses that are allocated primarily include those relating to marketing of products and services from which multiple segments benefit, and are generally allocated based on relative gross margin.

In addition, certain costs incurred at a corporate level that are identifiable and that benefit our segments are allocated to them. These allocated costs include costs of: legal, including settlements, and fines; information technology; human resources; finance; excise taxes; field selling; shared facilities services; and customer service and support. Each allocation is measured differently based on the specific facts and circumstances of the costs being allocated. Revenue and expenses associated with non-Microsoft products sold in our retail stores are allocated from Corporate and Other to reportable segments as a marketing charge, utilizing the stores as a sales channel, based on the related revenue sold through the stores. Certain corporate-level activity is not allocated to our segments, including impairment, integration, and restructuring expenses.

Segment revenue and operating income (loss) were as follows during the periods presented:


(In millions)


Year Ended June 30,	2015		2014			2013

Revenue

Productivity and Business Processes	$	26,431	$	26,972		$	25,776
Intelligent Cloud		23,715		21,732			19,747
More Personal Computing		42,953		38,407			31,951
Corporate and Other		481		(278	)		375

Total revenue	$	93,580	$	86,833		$	77,849


(In millions)


Year Ended June 30,	2015			2014			2013

Operating Income (Loss)

Productivity and Business Processes	$	13,087		$	13,940		$	13,151
Intelligent Cloud		9,871			8,443			7,300
More Personal Computing		5,179			6,150			6,144
Corporate and Other		(9,976	)		(774	)		169

Total operating income (loss)	$	18,161		$	27,759		$	26,764

Corporate and Other operating income (loss) includes impairment, integration, and restructuring expenses, adjustments to conform our internal accounting policies to U.S. GAAP, and other corporate-level activity not specifically allocated to a segment. Significant internal accounting policies that differ from U.S. GAAP relate to revenue recognition, income statement classification, and depreciation.

Corporate and Other activity was as follows:


(In millions)


Year Ended June 30,	2015			2014			2013

Impairment, integration and restructuring expenses	$	(10,011	)	$	(127	)	$	0
Revenue reconciling amounts ^(a)		204			(415	)		366
Other		(169	)		(232	)		(197	)

Total Corporate and Other	$	(9,976	)	$	(774	)	$	169

(a)

Revenue reconciling amounts for fiscal year 2015 included a net $303 million of previously deferred net revenue related to sales of bundled products and services (“Bundled Offerings”). Revenue reconciling amounts for fiscal year 2014 included a net $349 million of revenue deferrals related to Bundled Offerings. Revenue reconciling amounts for fiscal year 2013 included the recognition of $540 million of revenue previously deferred on sales of Windows 7 with an option to upgrade to Windows 8 Pro at a discounted price.

No sales to an individual customer or country other than the United States accounted for more than 10% of fiscal year 2015, 2014, or 2013 revenue. Revenue, classified by the major geographic areas in which our customers are located, was as follows:


(In millions)


Year Ended June 30,	2015		2014		2013

United States ^(a)	$	42,941	$	43,474	$	41,344
Other countries		50,639		43,359		36,505

Total	$	93,580	$	86,833	$	77,849

(a)	Includes billings to OEMs and certain multinational organizations because of the nature of these businesses and the impracticability of determining the geographic source of the revenue.

Revenue from external customers, classified by significant product and service offerings were as follows:


(In millions)


Year Ended June 30,	2015		2014		2013

Microsoft Office system	$	23,538	$	24,323	$	22,995
Server products and tools		18,612		17,055		15,408
Windows PC operating system		14,826		16,856		17,529
Xbox		9,121		8,643		7,100
Phone		7,702		3,073		615
Consulting and product support services		5,090		4,767		4,372
Advertising		4,557		4,016		3,387
Surface		3,900		1,883		853
Other		6,234		6,217		5,590

Total	$	93,580	$	86,833	$	77,849

Our total commercial cloud revenue, which primarily comprises Office 365 Commercial, Microsoft Azure, and Dynamics CRM Online, was $5.8 billion, $2.8 billion, and $1.3 billion in fiscal years 2015, 2014, and 2013, respectively. These amounts are included in their respective product categories in the table above.

Assets are not allocated to segments for internal reporting presentations. A portion of amortization and depreciation is charged to the respective segment. It is impracticable for us to separately identify the amount of amortization and depreciation by segment that is included in the measure of segment profit or loss.

Long-lived assets, excluding financial instruments and tax assets, classified by the location of the controlling statutory company and with countries over 10% of the total shown separately, were as follows:


(In millions)


June 30,	2015		2014		2013

United States	$	19,562	$	17,653	$	16,615
Luxembourg		6,879		6,913		6,943
Finland		1,757		9,840		12
Other countries		8,307		5,713		4,159

Total	$	36,505	$	40,119	$	27,729

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

QUARTERLY INFORMATION (UNAUDITED)

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+ Details

QUARTERLY INFORMATION (UNAUDITED)

12 Months Ended

Jun. 30, 2015

NOTE 23 — QUARTERLY INFORMATION (UNAUDITED)


(In millions, except per share amounts)


Quarter Ended	September 30		December 31		March 31		June 30			Total

Fiscal Year 2015

Revenue	$	23,201	$	26,470	$	21,729	$	22,180		$	93,580
Gross margin		14,928		16,334		14,568		14,712			60,542
Operating income (loss)		5,844		7,776		6,594		(2,053	)		18,161
Net income (loss)		4,540		5,863		4,985		(3,195	)^(a)		12,193	^(b)
Basic earnings (loss) per share		0.55		0.71		0.61		(0.40	)		1.49
Diluted earnings (loss) per share		0.54		0.71		0.61		(0.40	)^(a)		1.48	^(b)

Fiscal Year 2014

Revenue	$	18,529	$	24,519	$	20,403	$	23,382		$	86,833
Gross margin		13,384		16,197		14,425		15,749			59,755
Operating income		6,334		7,969		6,974		6,482			27,759
Net income		5,244		6,558		5,660		4,612	^(c)		22,074	^(c)
Basic earnings per share		0.63		0.79		0.68		0.56			2.66
Diluted earnings per share		0.62		0.78		0.68		0.55	^(c)		2.63	^(c)

(a)

Includes $7.5 billion of goodwill and asset impairment charges related to our phone business, as well as $940 million of integration and restructuring expenses, primarily costs associated with our Phone Hardware Restructuring Plan, which decreased fourth quarter fiscal year 2015 net income by $8.4 billion and diluted EPS by $1.02.

(b)

Includes $7.5 billion of goodwill and asset impairment charges related to our phone business, as well as $2.5 billion of integration and restructuring expenses, primarily costs associated with our restructuring plans, which decreased fiscal year 2015 net income by $10.0 billion and diluted EPS by $1.15.

(c)	Includes a tax provision adjustment recorded in the fourth quarter of fiscal year 2014 related to adjustments to prior years’ liabilities for intercompany transfer pricing which decreased net income by $458 million and diluted EPS by $0.05.

Principles of Consolidation

The entire disclosure for the quarterly financial data in the annual financial statements. The disclosure may include a tabular presentation of financial information for each fiscal quarter for the current and previous year, including revenues, gross profit, income or loss before extraordinary items and earnings per share data. It also includes an indication if the information in the note is unaudited, comments on the aggregate effect of year-end adjustments, and an explanation of matters or transactions that affect comparability or are pertinent to an understanding of the information furnished.

+ References+ Details

ACCOUNTING POLICIES (Policies)

12 Months Ended

Jun. 30, 2015

Accounting Principles

Accounting Principles

The consolidated financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).

Principles of Consolidation

Recasting of Certain Prior Period Information

Recasting of Certain Prior Period Information

Estimates and Assumptions

Estimates and Assumptions

Foreign Currencies

Foreign Currencies

Revenue Recognition

Revenue Recognition

Cost of Revenue

Cost of Revenue

Product Warranty

Product Warranty

Research and Development

Research and Development

Sales and Marketing

Sales and Marketing

Stock-Based Compensation

Stock-Based Compensation

Employee Stock Purchase Plan

Employee Stock Purchase Plan

Income Taxes

Income Taxes

Fair Value Measurements

Fair Value Measurements

•

Our other current financial assets and our current financial liabilities have fair values that approximate their carrying values.

Financial Instruments

Financial Instruments

Allowance for Doubtful Accounts

Allowance for Doubtful Accounts


(In millions)


Year Ended June 30,	2015			2014			2013

Balance, beginning of period	$	301		$	336		$	389
Charged to costs and other		77			16			4
Write-offs		(43	)		(51	)		(57	)

Balance, end of period	$	335		$	301		$	336

Inventories

Inventories

Property and Equipment

Property and Equipment

Goodwill

Goodwill

Intangible Assets

Intangible Assets

Recent Accounting Guidance Not Yet Adopted

Recent Accounting Guidance Not Yet Adopted

Earnings Per Share Policy

Segment Reporting Policy

ACCOUNTING POLICIES (Tables)

12 Months Ended

Jun. 30, 2015

Allowance for Doubtful Accounts

Activity in the allowance for doubtful accounts was as follows:


(In millions)


Year Ended June 30,	2015			2014			2013

Balance, beginning of period	$	301		$	336		$	389
Charged to costs and other		77			16			4
Write-offs		(43	)		(51	)		(57	)

Balance, end of period	$	335		$	301		$	336

EARNINGS PER SHARE (Tables)

12 Months Ended

Jun. 30, 2015

Basic and Diluted Earnings Per Share

The components of basic and diluted EPS were as follows:


(In millions, except earnings per share)


	2015		2014		2013

Year Ended June 30,

Net income available for common shareholders (A)	$	12,193	$	22,074	$	21,863
Weighted average outstanding shares of common stock (B)		8,177		8,299		8,375
Dilutive effect of stock-based awards		77		100		95

Common stock and common stock equivalents (C)		8,254		8,399		8,470


Earnings Per Share

Basic (A/B)	$	1.49	$	2.66	$	2.61
Diluted (A/C)	$	1.48	$	2.63	$	2.58

OTHER INCOME (EXPENSE), NET (Tables)

12 Months Ended

Jun. 30, 2015

Components of Other Income (Expense), Net

The components of other income (expense), net were as follows:


(In millions)


	2015			2014			2013

Year Ended June 30,

Dividends and interest income	$	766		$	883		$	677
Interest expense		(781	)		(597	)		(429	)
Net recognized gains on investments		716			437			116
Net losses on derivatives		(423	)		(328	)		(196	)
Net gains (losses) on foreign currency remeasurements		335			(165	)		(74	)
Other		(267	)		(169	)		194

Total	$	346		$	61		$	288

Net Recognized Gains on Investments

Following are details of net recognized gains on investments during the periods reported:


(In millions)


	2015			2014			2013

Year Ended June 30,

Other-than-temporary impairments of investments	$	(183	)	$	(106	)	$	(208	)
Realized gains from sales of available-for-sale securities		1,176			776			489
Realized losses from sales of available-for-sale securities		(277	)		(233	)		(165	)

Total	$	716		$	437		$	116

INVESTMENTS (Tables)

12 Months Ended

Jun. 30, 2015

Investment Components, Including Associated Derivatives but Excluding Held to Maturity Investments

The components of investments, including associated derivatives, but excluding held-to-maturity investments, were as follows:


(In millions)	Cost Basis		Unrealized Gains		Unrealized Losses			Recorded Basis		Cash and Cash Equivalents		Short-term Investments		Equity and Other Investments


June 30, 2015

Cash	$	3,679	$	0	$	0		$	3,679	$	3,679	$	0	$	0
Mutual funds		1,100		0		0			1,100		1,100		0		0
Commercial paper		1		0		0			1		1		0		0
Certificates of deposit		906		0		0			906		776		130		0
U.S. government and agency securities		72,843		76		(30	)		72,889		39		72,850		0
Foreign government bonds		5,477		3		(24	)		5,456		0		5,456		0
Mortgage- and asset-backed securities		4,899		23		(6	)		4,916		0		4,916		0
Corporate notes and bonds		7,192		97		(37	)		7,252		0		7,252		0
Municipal securities		285		35		(1	)		319		0		319		0
Common and preferred stock		6,668		4,986		(215	)		11,439		0		0		11,439
Other investments		597		0		0			597		0		8		589

Total	$	103,647	$	5,220	$	(313	)	$	108,554	$	5,595	$	90,931	$	12,028


(In millions)	Cost Basis		Unrealized Gains		Unrealized Losses			Recorded Basis		Cash and Cash Equivalents		Short-term Investments		Equity and Other Investments


June 30, 2014

Cash	$	4,980	$	0	$	0		$	4,980	$	4,980	$	0	$	0
Mutual funds		590		0		0			590		590		0		0
Commercial paper		189		0		0			189		89		100		0
Certificates of deposit		1,197		0		0			1,197		865		332		0
U.S. government and agency securities		66,952		103		(29	)		67,026		109		66,917		0
Foreign government bonds		3,328		17		(10	)		3,335		2,027		1,308		0
Mortgage- and asset-backed securities		991		30		(2	)		1,019		0		1,019		0
Corporate notes and bonds		6,845		191		(9	)		7,027		9		7,018		0
Municipal securities		287		45		0			332		0		332		0
Common and preferred stock		6,785		5,207		(81	)		11,911		0		0		11,911
Other investments		1,164		0		0			1,164		0		14		1,150

Total	$	93,308	$	5,593	$	(131	)	$	98,770	$	8,669	$	77,040	$	13,061

Unrealized Losses on Investments

Investments with continuous unrealized losses for less than 12 months and 12 months or greater and their related fair values were as follows:


	Less than 12 Months					12 Months or Greater							Total Unrealized Losses

(In millions)	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Total Fair Value


June 30, 2015

U.S. government and agency securities	$	6,636	$	(9	)	$	421	$	(21	)	$	7,057	$	(30	)
Foreign government bonds		4,611		(12	)		18		(12	)		4,629		(24	)
Mortgage- and asset-backed securities		3,171		(5	)		28		(1	)		3,199		(6	)
Corporate notes and bonds		2,946		(29	)		104		(8	)		3,050		(37	)
Municipal securities		36		(1	)		0		0			36		(1	)
Common and preferred stock		1,389		(180	)		148		(35	)		1,537		(215	)

Total	$	18,789	$	(236	)	$	719	$	(77	)	$	19,508	$	(313	)


	Less than 12 Months					12 Months or Greater							Total Unrealized Losses

(In millions)	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Total Fair Value


June 30, 2014

U.S. government and agency securities	$	4,161	$	(29	)	$	850	$	0		$	5,011	$	(29	)
Foreign government bonds		566		(4	)		21		(6	)		587		(10	)
Mortgage- and asset-backed securities		120		0			61		(2	)		181		(2	)
Corporate notes and bonds		1,154		(8	)		34		(1	)		1,188		(9	)
Common and preferred stock		463		(48	)		257		(33	)		720		(81	)

Total	$	6,464	$	(89	)	$	1,223	$	(42	)	$	7,687	$	(131	)

Debt Investment Maturities

Debt Investment Maturities


(In millions)	Cost Basis		Estimated Fair Value


June 30, 2015

Due in one year or less	$	53,616	$	53,645
Due after one year through five years		33,260		33,336
Due after five years through 10 years		3,180		3,161
Due after 10 years		1,547		1,597

Total	$	91,603	$	91,739

DERIVATIVES (Tables)

12 Months Ended

Jun. 30, 2015

Fair Values of Derivative Instruments


	June 30, 2015												June 30, 2014

	Assets									Liabilities			Assets									Liabilities

(In millions)	Short-term Investments			Other Current Assets			Equity and Other Investments			Other Current Liabilities			Short-term Investments			Other Current Assets			Equity and Other Investments			Other Current Liabilities


Non-designated Hedge Derivatives

Foreign exchange contracts	$	17		$	167		$	0		$	(79	)	$	10		$	39		$	0		$	(97	)
Equity contracts		148			0			0			(18	)		177			0			0			(21	)
Interest rate contracts		7			0			0			(12	)		17			0			0			(12	)
Credit contracts		16			0			0			(9	)		24			0			0			(13	)
Commodity contracts		0			0			0			0			15			0			0			(1	)

Total	$	188		$	167		$	0		$	(118	)	$	243		$	39		$	0		$	(144	)


Designated Hedge Derivatives

Foreign exchange contracts	$	56		$	552		$	0		$	(31	)	$	1		$	70		$	0		$	(15	)
Equity contracts		0			0			25			(69	)		0			0			7			(125	)

Total	$	56		$	552		$	25		$	(100	)	$	1		$	70		$	7		$	(140	)

Total gross amounts of derivatives	$	244		$	719		$	25		$	(218	)	$	244		$	109		$	7		$	(284	)

Gross derivatives either offset or subject to an enforceable master netting agreement	$	126		$	719		$	25		$	(218	)	$	99		$	109		$	7		$	(284	)
Gross amounts of derivatives offset in the balance sheet		(66	)		(71	)		(25	)		161			(77	)		(71	)		(7	)		155

Net amounts presented in the balance sheet		60			648			0			(57	)		22			38			0			(129	)
Gross amounts of derivatives not offset in the balance sheet		0			0			0			0			0			0			0			0
Cash collateral received		0			0			0			(456	)		0			0			0			0

Net amount	$	60		$	648		$	0		$	(513	)	$	22		$	38		$	0		$	(129	)

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,	2015			2014			2013

Foreign Exchange Contracts

Derivatives	$	741		$	(14	)	$	70
Hedged items		(725	)		6			(69	)

Total amount of ineffectiveness	$	16		$	(8	)	$	1


Equity Contracts

Derivatives	$	(107	)	$	(110	)	$	0
Hedged items		107			110			0

Total amount of ineffectiveness	$	0		$	0		$	0


Amount of equity contracts excluded from effectiveness assessment	$	0		$	(9)		$	0

Cash flow hedging

Gains (Losses) on Derivative Instruments

We recognized the following gains (losses) on foreign exchange contracts designated as cash flow hedges (our only cash flow hedges during the periods presented):


(In millions)


Year Ended June 30,	2015			2014			2013

Effective Portion

Gains recognized in OCI (net of tax effects of $35, $2 and $54)	$	1,152		$	63		$	101
Gains reclassified from AOCI into revenue	$	608		$	104		$	195

Amount Excluded from Effectiveness Assessment and Ineffective Portion

Losses recognized in other income (expense), net	$	(346	)	$	(239	)	$	(168	)

Non-designated Hedge Derivatives

Gains (Losses) on Derivative Instruments


(In millions)


Year Ended June 30,	2015			2014			2013

Foreign exchange contracts	$	(483	)	$	(78	)	$	18
Equity contracts		(19	)		(64	)		16
Interest-rate contracts		23			24			(11	)
Credit contracts		(1	)		13			(3	)
Commodity contracts		(223	)		71			(42	)

Total	$	(703	)	$	(34	)	$	(22	)

FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Jun. 30, 2015

Assets and Liabilities Measured at Fair Value on Recurring Basis

The following tables present the fair value of our financial instruments that are measured at fair value on a recurring basis:



(In millions)		Level 1		Level 2		Level 3		Gross Fair Value		Netting	^(a)		Net Fair Value


June 30, 2015

Assets

Mutual funds	$	1,100	$	0	$	0	$	1,100	$	0		$	1,100
Commercial paper		0		1		0		1		0			1
Certificates of deposit		0		906		0		906		0			906
U.S. government and agency securities		71,930		955		0		72,885		0			72,885
Foreign government bonds		131		5,299		0		5,430		0			5,430
Mortgage- and asset-backed securities		0		4,917		0		4,917		0			4,917
Corporate notes and bonds		0		7,108		1		7,109		0			7,109
Municipal securities		0		319		0		319		0			319
Common and preferred stock		8,585		2,277		14		10,876		0			10,876
Derivatives		4		979		5		988		(162	)		826

Total	$	81,750	$	22,761	$	20	$	104,531	$	(162	)	$	104,369


Liabilities

Derivatives and other	$	5	$	159	$	54	$	218	$	(161	)	$	57



(In millions)		Level 1		Level 2		Level 3		Gross Fair Value		Netting	^(a)		Net Fair Value


June 30, 2014

Assets

Mutual funds	$	590	$	0	$	0	$	590	$	0		$	590
Commercial paper		0		189		0		189		0			189
Certificates of deposit		0		1,197		0		1,197		0			1,197
U.S. government and agency securities		66,288		745		0		67,033		0			67,033
Foreign government bonds		139		3,210		0		3,349		0			3,349
Mortgage- and asset-backed securities		0		1,015		0		1,015		0			1,015
Corporate notes and bonds		0		6,863		0		6,863		0			6,863
Municipal securities		0		332		0		332		0			332
Common and preferred stock		9,552		1,825		14		11,391		0			11,391
Derivatives		5		348		7		360		(155	)		205

Total	$	76,574	$	15,724	$	21	$	92,319	$	(155	)	$	92,164


Liabilities

Derivatives and other	$	5	$	153	$	126	$	284	$	(155	)	$	129

(a)	These amounts represent the impact of netting derivative assets and derivative liabilities when a legally enforceable master netting agreement exists and fair value adjustments related to our own credit risk and counterparty credit risk.

Reconciliation of Total Assets Measured at Fair Value on Recurring Basis to Balance Sheet Presentation

The following table reconciles the total “Net Fair Value” of assets above to the balance sheet presentation of these same assets in Note 4 – Investments.


(In millions)


June 30,	2015			2014

Net fair value of assets measured at fair value on a recurring basis	$	104,369		$	92,164
Cash		3,679			4,980
Common and preferred stock measured at fair value on a nonrecurring basis		561			520
Other investments measured at fair value on a nonrecurring basis		589			1,150
Less derivative net assets classified as other current assets		(648	)		(38	)
Other		4			(6	)

Recorded basis of investment components	$	108,554		$	98,770

INVENTORIES (Tables)

12 Months Ended

Jun. 30, 2015

Components of Inventories

The components of inventories were as follows:


(In millions)


June 30,	2015		2014

Raw materials	$	1,100	$	944
Work in process		202		266
Finished goods		1,600		1,450

Total	$	2,902	$	2,660

PROPERTY AND EQUIPMENT (Tables)

12 Months Ended

Jun. 30, 2015

Components of Property and Equipment

The components of property and equipment were as follows:


(In millions)


June 30,	2015			2014

Land	$	769		$	541
Buildings and improvements		10,800			8,867
Leasehold improvements		3,577			3,560
Computer equipment and software		13,612			11,430
Furniture and equipment		3,579			3,406

Total, at cost		32,337			27,804
Accumulated depreciation		(17,606	)		(14,793	)

Total, net	$	14,731		$	13,011

BUSINESS COMBINATIONS (Tables) (Nokia Devices And Services Business)

12 Months Ended

Jun. 30, 2015

Nokia Devices And Services Business

Major Classes of Assets and Liabilities to Which We Have Allocated the Purchase Price

The major classes of assets and liabilities to which we have allocated the purchase price were as follows:


(In millions)


Cash	$	1,506
Accounts receivable ^(a)		754
Inventories		544
Other current assets		936
Property and equipment		981
Intangible assets		4,509
Goodwill ^(b)		5,456
Other		221
Current liabilities		(4,575	)
Long-term liabilities		(890	)

Total purchase price	$	9,442

(a)	Gross accounts receivable was $901 million, of which $147 million was expected to be uncollectible.

(b)	Goodwill was assigned to More Personal Computing under our current segment structure. The goodwill was primarily attributed to increased synergies that were expected to be achieved from the integration of NDS.

Supplemental Consolidated Results on Unaudited Pro Forma Basis, as If the Acquisition Had Been Consummated on Beginning of Period

Following are the supplemental consolidated results of Microsoft Corporation on an unaudited pro forma basis, as if the Acquisition had been consummated on July 1, 2012:


(In millions, except per share amounts)


Year Ended June 30,	2014		2013

Revenue	$	96,248	$	93,243
Net income	$	20,234	$	20,153
Diluted earnings per share	$	2.41	$	2.38

INTANGIBLE ASSETS (Tables)

12 Months Ended

Jun. 30, 2015

Acquired Intangible Assets

The components of intangible assets acquired during the periods presented were as follows:

(In millions)

Amount

Weighted

Average Life

Amount

Weighted

Average Life

Year Ended June 30,

2015

2014

Technology-based

874

5 years

2,841

9 years

Marketing-related

543

8 years

174

2 years

Contract-based

1,500

9 years

Customer-related

4 years

363

3 years

Total

1,454

6 years

4,878

8 years

Finite-Lived Intangible Assets

The components of intangible assets, all of which are finite-lived, were as follows:


(In millions)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount


Year Ended June 30,						2015							2014

Technology-based ^(a)	$	6,187	$	(3,410	)	$	2,777	$	6,440	$	(2,615	)	$	3,825
Marketing-related		1,974		(540	)		1,434		1,518		(324	)		1,194
Contract-based		1,344		(862	)		482		2,266		(716	)		1,550
Customer-related		632		(490	)		142		732		(320	)		412

Total	$	10,137	$	(5,302	)	$	4,835	$	10,956	$	(3,975	)	$	6,981

(a)	Technology-based intangible assets included $116 million and $98 million as of June 30, 2015 and 2014, respectively, of net carrying amount of software to be sold, leased, or otherwise marketed.

Estimated Future Amortization Expense Related to Intangible Assets

The following table outlines the estimated future amortization expense related to intangible assets held at June 30, 2015:


(In millions)


Year Ending June 30,

2016	$	910
2017		755
2018		670
2019		554
2020		495
Thereafter		1,451

Total	$	4,835

Nokia Devices And Services Business

Acquired Intangible Assets

Following are the details of the purchase price allocated to the intangible assets acquired:


(In millions)	Amount		Weighted Average Life


Technology-based	$	2,493		9 years
Contract-based		1,500		9 years
Customer-related		359		3 years
Marketing-related (trade names)		157		2 years

Fair value of intangible assets acquired	$	4,509		8 years

GOODWILL (Tables)

12 Months Ended

Jun. 30, 2015

Carrying Amount of Goodwill

Changes in the carrying amount of goodwill were as follows:


(In millions)	June 30, 2013		Acquisitions		Other			June 30, 2014		Acquisitions		Other			June 30, 2015


Productivity and Business Processes	$	6,057	$	56	$	3		$	6,116	$	376	$	(183	)	$	6,309
Intelligent Cloud		4,580		51		0			4,631		291		(5	)		4,917
More Personal Computing		4,018		5,458		(96	)		9,380		1,788		(5,455	)		5,713

Total goodwill	$	14,655	$	5,565	$	(93	)	$	20,127	$	2,455	$	(5,643	)	$	16,939

(a)	Goodwill acquired during fiscal year 2014 related to the acquisition of NDS. See Note 9 – Business Combinations for additional details.

DEBT (Tables)

12 Months Ended

Jun. 30, 2015

Long-term Debt

The components of our long-term debt, including the current portion, and the associated interest rates were as follows as of June 30, 2015 and 2014:

Due Date

Face Value

June 30,
2015

Face Value

June 30,
2014

Stated
Interest

Rate

Effective
Interest

Rate

(In millions)

Notes

September 25, 2015

1,750

1,750

1.625%

1.795%

February 8, 2016

750

750

2.500%

2.642%

November 15, 2017

600

600

0.875%

1.084%

May 1, 2018

450

450

1.000%

1.106%

December 6, 2018

1,250

1,250

1.625%

1.824%

June 1, 2019

1,000

1,000

4.200%

4.379%

February 12, 2020 ^(a)

1,500

1.850%

1.935%

October 1, 2020

1,000

1,000

3.000%

3.137%

February 8, 2021

500

500

4.000%

4.082%

December 6, 2021 ^(b)

1,950

2,396

2.125%

2.233%

February 12, 2022 ^(a)

1,500

2.375%

2.466%

November 15, 2022

750

750

2.125%

2.239%

May 1, 2023

1,000

1,000

2.375%

2.465%

December 15, 2023

1,500

1,500

3.625%

3.726%

February 12, 2025 ^(a)

2,250

2.700%

2.772%

December 6, 2028 ^(b)

1,950

2,396

3.125%

3.218%

May 2, 2033 ^(b)

613

753

2.625%

2.690%

February 12, 2035 ^(a)

1,500

3.500%

3.604%

June 1, 2039

750

750

5.200%

5.240%

October 1, 2040

1,000

1,000

4.500%

4.567%

February 8, 2041

1,000

1,000

5.300%

5.361%

November 15, 2042

900

900

3.500%

3.571%

May 1, 2043

500

500

3.750%

3.829%

December 15, 2043

500

500

4.875%

4.918%

February 12, 2045 ^(a)

1,750

3.750%

3.800%

February 12, 2055 ^(a)

2,250

4.000%

4.063%

Total

30,463

20,745

(a)	In February 2015, we issued $10.8 billion of debt securities.

(b)	Euro-denominated debt securities.

Maturities of Long-term Debt

Maturities of our long-term debt for each of the next five years and thereafter are as follows:


(In millions)


Year Ending June 30,

2016	$	2,500
2017		0
2018		1,050
2019		2,250
2020		1,500
Thereafter		23,163

Total	$	30,463

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

Provision for Income Taxes

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-Paragraph 1

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Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 505

-SubTopic 10

-Section 50

-Paragraph 6

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Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 505

-SubTopic 10

-Section 50

-Paragraph 7

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-Publisher FASB

-Name Accounting Standards Codification

-Topic 505

-SubTopic 10

-Section 50

-Paragraph 8

-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21538-112644

Reference 9: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 942

-SubTopic 470

-Section 50

-Paragraph 3

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-Publisher FASB

-Name Accounting Standards Codification

-Topic 235

-SubTopic 10

-Section S99

-Paragraph 1

-Subparagraph (SX 210.4-08.(e),(f))

-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

+ Details

INCOME TAXES (Tables)

12 Months Ended

Jun. 30, 2015

The components of the provision for income taxes were as follows:


(In millions)


Year Ended June 30,	2015		2014			2013

Current Taxes

U.S. federal	$	3,661	$	3,738		$	3,131
U.S. state and local		364		266			332
Foreign		2,065		2,073			1,745

Current taxes		6,090		6,077			5,208

Deferred Taxes

Deferred taxes		224		(331	)		(19	)

Provision for income taxes	$	6,314	$	5,746		$	5,189

Income Before Income Taxes

U.S. and foreign components of income before income taxes were as follows:


(In millions)


Year Ended June 30,		2015		2014		2013

U.S.	$	7,363	$	7,127	$	6,674
Foreign		11,144		20,693		20,378

Income before income taxes	$	18,507	$	27,820	$	27,052

Difference Between Income Taxes Computed at Federal Statutory Rate and Provision for Income Taxes

The items accounting for the difference between income taxes computed at the U.S. federal statutory rate and our effective rate were as follows:




Year Ended June 30,	2015		2014		2013

Federal statutory rate		35.0%		35.0%		35.0%
Effect of:
Foreign earnings taxed at lower rates		(20.9)%		(17.1)%		(17.5)%
Phone nondeductible charges and valuation allowance		19.1%		0.9%		0%
Domestic production activities deduction		(2.4)%		(1.0)%		(1.2)%
Other reconciling items, net		3.3%		2.9%		2.9%

Effective rate		34.1%		20.7%		19.2%

Deferred Income Tax Assets and Liabilities

The components of the deferred income tax assets and liabilities were as follows:


(In millions)


June 30,	2015			2014

Deferred Income Tax Assets

Stock-based compensation expense	$	884		$	903
Other expense items		1,531			1,112
Restructuring charges		211			0
Unearned revenue		520			520
Impaired investments		257			272
Loss carryforwards		1,158			922
Depreciation and amortization		798			0
Other revenue items		56			64

Deferred income tax assets		5,415			3,793
Less valuation allowance		(2,265	)		(903	)

Deferred income tax assets, net of valuation allowance	$	3,150		$	2,890


Deferred Income Tax Liabilities

Foreign earnings	$	(1,280	)	$	(1,140	)
Unrealized gain on investments and debt		(2,223	)		(1,974	)
Depreciation and amortization		(685	)		(470	)
Other		(29	)		(87	)

Deferred income tax liabilities		(4,217	)		(3,671	)

Net deferred income tax assets (liabilities)	$	(1,067	)	$	(781	)


Reported As

Current deferred income tax assets	$	1,915		$	1,941
Other current liabilities		(211	)		(125	)
Other long-term assets		64			131
Long-term deferred income tax liabilities		(2,835	)		(2,728	)

Net deferred income tax assets (liabilities)	$	(1,067	)	$	(781	)

Changes in Unrecognized Tax Benefits

The aggregate changes in the balance of unrecognized tax benefits were as follows:


(In millions)


Year Ended June 30,	2015			2014			2013

Balance, beginning of year	$	8,714		$	8,648		$	7,202
Decreases related to settlements		(50	)		(583	)		(30	)
Increases for tax positions related to the current year		1,091			566			612
Increases for tax positions related to prior years		94			217			931
Decreases for tax positions related to prior years		(144	)		(95	)		(65	)
Decreases due to lapsed statutes of limitations		(106	)		(39	)		(2	)

Balance, end of year	$	9,599		$	8,714		$	8,648

Changes in Restructuring Liability

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

+ References+ Details

RESTRUCTURING CHARGES (Tables)

12 Months Ended

Jun. 30, 2015

Changes in the restructuring liability were as follows:


(In millions)	Severance			Asset Impairments and Other^(a)			Total


Restructuring liability as of June 30, 2014	$	0		$	0		$	0
Restructuring charges		1,308			770			2,078
Cash paid		(701	)		(134	)		(835	)
Other		(19	)		(387	)		(406	)

Restructuring liability as of June 30, 2015	$	588		$	249		$	837

(a)	“Asset Impairments and Other” primarily reflects activities associated with the consolidation of our facilities and manufacturing operations, including asset write-downs of $372 million during fiscal year 2015, as well as contract termination costs.

UNEARNED REVENUE (Tables)

12 Months Ended

Jun. 30, 2015

Unearned Revenue by Segment

Unearned revenue by segment was as follows:


(In millions)


June 30,	2015		2014

Productivity and Business Processes	$	11,643	$	11,412
Intelligent Cloud		10,346		9,812
More Personal Computing		3,246		3,579
Corporate and Other		83		355

Total	$	25,318	$	25,158

OTHER LONG-TERM LIABILITIES (Tables)

12 Months Ended

Jun. 30, 2015

Other Long-Term Liabilities


(In millions)


June 30,	2015		2014

Tax contingencies and other tax liabilities	$	12,290	$	10,510
Other		1,254		1,084

Total	$	13,544	$	11,594

COMMITMENTS AND GUARANTEES (Tables) (Buildings)

12 Months Ended

Jun. 30, 2015

Buildings

Future Minimum Rental Commitments Under Non-cancellable Operating Leases

Future minimum rental commitments under non-cancellable facilities operating leases in place as of June 30, 2015 are as follows:


(In millions)


Year Ending June 30,

2016	$	863
2017		803
2018		735
2019		611
2020		524
Thereafter		1,617

Total	$	5,153

STOCKHOLDERS' EQUITY (Tables)

12 Months Ended

Jun. 30, 2015

Shares of Common Stock Outstanding

Shares of common stock outstanding were as follows:


(In millions)


Year Ended June 30,	2015		2014		2013

Balance, beginning of year	8,239		8,328		8,381
Issued	83		86		105
Repurchased	(295	)	(175	)	(158	)

Balance, end of year	8,027		8,239		8,328

Share Repurchases

We repurchased the following shares of common stock under the above-described repurchase plans:


(In millions)	Shares		Amount		Shares		Amount		Shares		Amount


Year Ended June 30,		2015				2014^(a)				2013

First quarter		43	$	2,000		47	$	1,500		33	$	1,000
Second quarter		43		2,000		53		2,000		58		1,607
Third quarter		116		5,000		47		1,791		36		1,000
Fourth quarter		93		4,209		28		1,118		31		1,000

Total		295	$	13,209		175	$	6,409		158	$	4,607

(a)

Dividends Declared

In fiscal year 2015, our Board of Directors declared the following dividends:

Declaration Date

Dividend

Per Share

Record Date

Total Amount

Payment Date

(In millions)

September 16, 2014

0.31

November 20, 2014

2,547

December 11, 2014

December 3, 2014

0.31

February 19, 2015

2,532

March 12, 2015

March 10, 2015

0.31

May 21, 2015

2,496

June 11, 2015

June 9, 2015

0.31

August 20, 2015

2,488

September 10, 2015

The dividend declared on June 9, 2015 will be paid after the filing date of the 2015 Form 10-K and was included in other current liabilities as of June 30, 2015.

In fiscal year 2014, our Board of Directors declared the following dividends:


Declaration Date	Dividend Per Share		Record Date		Total Amount		Payment Date

					(In millions)

September 16, 2013	$	0.28		November 21, 2013	$	2,332		December 12, 2013
November 19, 2013	$	0.28		February 20, 2014	$	2,322		March 13, 2014
March 11, 2014	$	0.28		May 15, 2014	$	2,309		June 12, 2014
June 10, 2014	$	0.28		August 21, 2014	$	2,307		September 11, 2014

ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables)

12 Months Ended

Jun. 30, 2015

Summary of Changes in Accumulated Other Comprehensive Income by Component

The following table summarizes the changes in accumulated other comprehensive income by component:


(In millions)


Year Ended June 30,	2015			2014			2013

Derivatives

Accumulated other comprehensive income balance, beginning of period	$	31		$	66		$	92
Unrealized gains, net of tax effects of $35, $2 and $54		1,152			63			101

Reclassification adjustments for gains included in revenue		(608	)		(104	)		(195	)
Tax expense included in provision for income taxes		15			6			68

Amounts reclassified from accumulated other comprehensive income		(593	)		(98	)		(127	)

Net current period other comprehensive income (loss)		559			(35	)		(26	)

Accumulated other comprehensive income balance, end of period	$	590		$	31		$	66


Investments

Accumulated other comprehensive income balance, beginning of period	$	3,531		$	1,794		$	1,431
Unrealized gains, net of tax effects of $59, $1,067 and $244		110			2,053			453

Reclassification adjustments for gains included in other income (expense), net		(728	)		(447	)		(139	)
Tax expense included in provision for income taxes		256			131			49

Amounts reclassified from accumulated other comprehensive income		(472	)		(316	)		(90	)

Net current period other comprehensive income (loss)		(362	)		1,737			363

Accumulated other comprehensive income balance, end of period	$	3,169		$	3,531		$	1,794


Translation Adjustments and Other

Accumulated other comprehensive income (loss) balance, beginning of period	$	146		$	(117	)	$	(101	)
Translation adjustments and other, net of tax effects of $16, $12 and $(8)		(1,383	)		263			(16	)

Accumulated other comprehensive income (loss) balance, end of period	$	(1,237	)	$	146		$	(117	)

Accumulated other comprehensive income, end of period	$	2,522		$	3,708		$	1,743

EMPLOYEE STOCK AND SAVINGS PLANS (Tables)

12 Months Ended

Jun. 30, 2015

Stock-Based Compensation Expense and Related Income Tax Benefits

Stock-based compensation expense and related income tax benefits were as follows:


(In millions)


Year Ended June 30,		2015		2014		2013

Stock-based compensation expense	$	2,574	$	2,446	$	2,406
Income tax benefits related to stock-based compensation	$	868	$	830	$	842

Assumptions Used in Estimating the Fair Value of Award Grants

The fair value of each award was estimated on the date of grant using the following assumptions:

Year Ended June 30,

2015

2014

2013

Dividends per share (quarterly amounts)

0.28 – $0.31

0.23 – $0.28

0.20 – $0.23

Interest rates range

1.2% – 1.9%

1.3% – 1.8%

0.6% – 1.1%

Stock Plan Activity

During fiscal year 2015, the following activity occurred under our stock plans:


	Shares			Weighted Average Grant-Date Fair Value


	(In millions)

Stock Awards

Nonvested balance, beginning of year		259		$	27.88
Granted		75		$	42.36
Vested		(94	)	$	27.47
Forfeited		(24	)	$	31.81

Nonvested balance, end of year		216		$	32.72

During fiscal years 2014 and 2013, the following activity occurred under our stock plans:


(In millions, except fair values)	2014		2013


Stock Awards

Awards granted ^(a)		103		104
Weighted average grant-date fair value	$	31.50	$	28.37

(a)	Awards granted during fiscal year 2014 included four million shares in stock replacement awards related to the acquisition of NDS. The weighted average grant-date fair value was $37.64.

Employee Purchased Shares

Employees purchased the following shares during the periods presented:


(Shares in millions)


Year Ended June 30,		2015		2014		2013

Shares purchased		16		18		20
Average price per share	$	39.87	$	33.60	$	26.81

Operating Income (Loss) by Segment and Corporate and Other Activity

Tabular disclosure of components of a stock option or other award plan under which equity-based compensation is awarded to employees, typically comprised of the amount of unearned compensation (deferred compensation cost), compensation expense, and changes in the quantity and fair value of the shares (or other type of equity) granted, exercised, forfeited, and issued and outstanding pertaining to that plan. Disclosure may also include nature and general terms of such arrangements that existed during the period and potential effects of those arrangements on shareholders, effect of compensation cost arising from equity-based payment arrangements on the income statement, method of estimating the fair value of the goods or services received, or the fair value of the equity instruments granted, during the period, cash flow effects resulting from equity-based payment arrangements and, for registrants that accelerate vesting of out of the money share options, reasons for the decision to accelerate.

+ References+ Details

SEGMENT INFORMATION AND GEOGRAPHIC DATA (Tables)

12 Months Ended

Jun. 30, 2015

Segment Revenue


(In millions)


Year Ended June 30,	2015		2014			2013

Revenue

Productivity and Business Processes	$	26,431	$	26,972		$	25,776
Intelligent Cloud		23,715		21,732			19,747
More Personal Computing		42,953		38,407			31,951
Corporate and Other		481		(278	)		375

Total revenue	$	93,580	$	86,833		$	77,849


(In millions)


Year Ended June 30,	2015			2014			2013

Operating Income (Loss)

Productivity and Business Processes	$	13,087		$	13,940		$	13,151
Intelligent Cloud		9,871			8,443			7,300
More Personal Computing		5,179			6,150			6,144
Corporate and Other		(9,976	)		(774	)		169

Total operating income (loss)	$	18,161		$	27,759		$	26,764

Corporate and Other activity was as follows:


(In millions)


Year Ended June 30,	2015			2014			2013

Impairment, integration and restructuring expenses	$	(10,011	)	$	(127	)	$	0
Revenue reconciling amounts ^(a)		204			(415	)		366
Other		(169	)		(232	)		(197	)

Total Corporate and Other	$	(9,976	)	$	(774	)	$	169

(a)

Revenue Classified by Major Geographic Areas

Revenue, classified by the major geographic areas in which our customers are located, was as follows:


(In millions)


Year Ended June 30,	2015		2014		2013

United States ^(a)	$	42,941	$	43,474	$	41,344
Other countries		50,639		43,359		36,505

Total	$	93,580	$	86,833	$	77,849

(a)	Includes billings to OEMs and certain multinational organizations because of the nature of these businesses and the impracticability of determining the geographic source of the revenue.

Revenue Classified by Significant Product and Service Offerings

Revenue from external customers, classified by significant product and service offerings were as follows:


(In millions)


Year Ended June 30,	2015		2014		2013

Microsoft Office system	$	23,538	$	24,323	$	22,995
Server products and tools		18,612		17,055		15,408
Windows PC operating system		14,826		16,856		17,529
Xbox		9,121		8,643		7,100
Phone		7,702		3,073		615
Consulting and product support services		5,090		4,767		4,372
Advertising		4,557		4,016		3,387
Surface		3,900		1,883		853
Other		6,234		6,217		5,590

Total	$	93,580	$	86,833	$	77,849

Long-Lived Assets, Excluding Financial Instruments and Tax Assets, Classified by Location of Controlling Statutory Company


(In millions)


June 30,	2015		2014		2013

United States	$	19,562	$	17,653	$	16,615
Luxembourg		6,879		6,913		6,943
Finland		1,757		9,840		12
Other countries		8,307		5,713		4,159

Total	$	36,505	$	40,119	$	27,729

QUARTERLY INFORMATION (UNAUDITED) (Tables)

12 Months Ended

Jun. 30, 2015

Quarterly Information (Unaudited)


(In millions, except per share amounts)


Quarter Ended	September 30		December 31		March 31		June 30			Total

Fiscal Year 2015

Revenue	$	23,201	$	26,470	$	21,729	$	22,180		$	93,580
Gross margin		14,928		16,334		14,568		14,712			60,542
Operating income (loss)		5,844		7,776		6,594		(2,053	)		18,161
Net income (loss)		4,540		5,863		4,985		(3,195	)^(a)		12,193	^(b)
Basic earnings (loss) per share		0.55		0.71		0.61		(0.40	)		1.49
Diluted earnings (loss) per share		0.54		0.71		0.61		(0.40	)^(a)		1.48	^(b)

Fiscal Year 2014

Revenue	$	18,529	$	24,519	$	20,403	$	23,382		$	86,833
Gross margin		13,384		16,197		14,425		15,749			59,755
Operating income		6,334		7,969		6,974		6,482			27,759
Net income		5,244		6,558		5,660		4,612	^(c)		22,074	^(c)
Basic earnings per share		0.63		0.79		0.68		0.56			2.66
Diluted earnings per share		0.62		0.78		0.68		0.55	^(c)		2.63	^(c)

(a)

(b)

(c)	Includes a tax provision adjustment recorded in the fourth quarter of fiscal year 2014 related to adjustments to prior years’ liabilities for intercompany transfer pricing which decreased net income by $458 million and diluted EPS by $0.05.

Accounting Policies - Additional Information (Detail) (USD $) In Billions, unless otherwise specified	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Significant Accounting Policies [Line Items]
Advertising expense	$ 1.9	$ 2.3	$ 2.6
Percentage of market value at which employees are able to purchase shares of common stock	90.00%
Lower Limit
Significant Accounting Policies [Line Items]
Share-based compensation cost recognition/vesting/service period	4 years	4 years	4 years
Estimated useful lives of intangible assets	1 year	1 year	1 year
Upper Limit
Significant Accounting Policies [Line Items]
Share-based compensation cost recognition/vesting/service period	5 years	5 years	5 years
Estimated useful lives of intangible assets	15 years	15 years	15 years
Software \| Lower Limit
Significant Accounting Policies [Line Items]
Estimated useful lives	3 years
Software \| Upper Limit
Significant Accounting Policies [Line Items]
Estimated useful lives	7 years
Computer Equipment \| Lower Limit
Significant Accounting Policies [Line Items]
Estimated useful lives	2 years	2 years	2 years
Computer Equipment \| Upper Limit
Significant Accounting Policies [Line Items]
Estimated useful lives	3 years	3 years	3 years
Buildings and Improvements \| Lower Limit
Significant Accounting Policies [Line Items]
Estimated useful lives	5 years	5 years	5 years
Buildings and Improvements \| Upper Limit
Significant Accounting Policies [Line Items]
Estimated useful lives	15 years	15 years	15 years
Leasehold Improvements \| Lower Limit
Significant Accounting Policies [Line Items]
Estimated useful lives	3 years	3 years	3 years
Leasehold Improvements \| Upper Limit
Significant Accounting Policies [Line Items]
Estimated useful lives	20 years	20 years	20 years
Furniture and Fixtures \| Lower Limit
Significant Accounting Policies [Line Items]
Estimated useful lives	1 year	1 year	1 year
Furniture and Fixtures \| Upper Limit
Significant Accounting Policies [Line Items]
Estimated useful lives	10 years	10 years	10 years

Allowance for Doubtful Accounts (Detail) (Allowance for doubtful accounts, USD $) In Millions, unless otherwise specified	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Allowance for doubtful accounts
Valuation and Qualifying Accounts Disclosure [Line Items]
Balance, beginning of period	$ 301	$ 336	$ 389
Charged to costs and other	77	16	4
Write-offs	(43)	(51)	(57)
Balance, end of period	$ 335	$ 301	$ 336

Basic and Diluted Earnings Per Share (Detail) (USD $)
In Millions, except Per Share data, unless otherwise specified

3 Months Ended

12 Months Ended

Jun. 30, 2015

Mar. 31, 2015

Dec. 31, 2014

Sep. 30, 2014

Jun. 30, 2014

Mar. 31, 2014

Dec. 31, 2013

Sep. 30, 2013

Jun. 30, 2015

Jun. 30, 2014

Jun. 30, 2013

Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items]

Net income available for common shareholders (A)

$ (3,195)

^[1]

$ 4,985

$ 5,863

$ 4,540

$ 4,612

^[2]

$ 5,660

$ 6,558

$ 5,244

$ 12,193

^[3]

$ 22,074

^[2]

$ 21,863

Weighted average outstanding shares of common stock (B)

8,177

8,299

8,375

Dilutive effect of stock-based awards

100

Common stock and common stock equivalents (C)

8,254

8,399

8,470

Earnings Per Share

Basic (A/B)

$ (0.40)

$ 0.61

$ 0.71

$ 0.55

$ 0.56

$ 0.68

$ 0.79

$ 0.63

$ 1.49

$ 2.66

$ 2.61

Diluted (A/C)

$ (0.40)

^[1]

$ 0.61

$ 0.71

$ 0.54

$ 0.55

^[2]

$ 0.68

$ 0.78

$ 0.62

$ 1.48

^[3]

$ 2.63

^[2]

$ 2.58

[1]	Includes $7.5 billion of goodwill and asset impairment charges related to our phone business, as well as $940 million of integration and restructuring expenses, primarily costs associated with our Phone Hardware Restructuring Plan, which decreased fourth quarter fiscal year 2015 net income by $8.4 billion and diluted EPS by $1.02.
[2]	Includes a tax provision adjustment recorded in the fourth quarter of fiscal year 2014 related to adjustments to prior years' liabilities for intercompany transfer pricing which decreased net income by $458 million and diluted EPS by $0.05.
[3]	Includes $7.5 billion of goodwill and asset impairment charges related to our phone business, as well as $2.5 billion of integration and restructuring expenses, primarily costs associated with our restructuring plans, which decreased fiscal year 2015 net income by $10.0 billion and diluted EPS by $1.15.

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References+ Details

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

+ References+ Details

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References+ Details

Components of Other Income (Expense), Net (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Components of Other Income (Expense) [Line Items]
Dividends and interest income	$ 766	$ 883	$ 677
Interest expense	(781)	(597)	(429)
Net recognized gains on investments	716	437	116
Net losses on derivatives	(423)	(328)	(196)
Net gains (losses) on foreign currency remeasurements	335	(165)	(74)
Other	(267)	(169)	194
Total	$ 346	$ 61	$ 288

This item represents the net total realized and unrealized gain (loss) included in earnings for the period as a result of selling or holding marketable securities categorized as trading, available-for-sale, or held-to-maturity, including the unrealized holding gain (loss) of held-to-maturity securities transferred to the trading security category and the cumulative unrealized gain (loss) which was included in other comprehensive income (a separate component of shareholders' equity) for available-for-sale securities transferred to trading securities during the period. Additionally, this item would include any gains (losses) realized during the period from the sale of investments accounted for under the cost method of accounting and losses recognized for other than temporary impairments (OTTI) of the subject investments.

+ References+ Details

Net Recognized Gains on Investments (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Gains (Losses) on Investments [Line Items]
Other-than-temporary impairments of investments	$ (183)	$ (106)	$ (208)
Realized gains from sales of available-for-sale securities	1,176	776	489
Realized losses from sales of available-for-sale securities	(277)	(233)	(165)
Total	$ 716	$ 437	$ 116

+ References+ Details

Investment Components, Including Associated Derivatives but Excluding Held to Maturity Investments (Detail) (USD $) In Millions, unless otherwise specified	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2012
Cash, Cash Equivalents and Investments [Line Items]
Cost Basis	$ 103,647	$ 93,308
Unrealized Gains	5,220	5,593
Unrealized Losses	(313)	(131)
Recorded Basis	108,554	98,770
Cash and cash equivalents	5,595	8,669	3,804	6,938
Short-term Investments	90,931	77,040
Equity and Other Investments	12,028	13,061
Cash
Cash, Cash Equivalents and Investments [Line Items]
Cash	3,679	4,980
Unrealized Gains	0	0
Unrealized Losses	0	0
Cash	3,679	4,980
Cash and cash equivalents	3,679	4,980
Short-term Investments	0	0
Equity and Other Investments	0	0
Mutual funds
Cash, Cash Equivalents and Investments [Line Items]
Cost Basis	1,100	590
Unrealized Gains	0	0
Unrealized Losses	0	0
Recorded Basis	1,100	590
Cash and cash equivalents	1,100	590
Short-term Investments	0	0
Equity and Other Investments	0	0
Commercial paper
Cash, Cash Equivalents and Investments [Line Items]
Cost Basis	1	189
Unrealized Gains	0	0
Unrealized Losses	0	0
Recorded Basis	1	189
Cash and cash equivalents	1	89
Short-term Investments	0	100
Equity and Other Investments	0	0
Certificates of deposit
Cash, Cash Equivalents and Investments [Line Items]
Cost Basis	906	1,197
Unrealized Gains	0	0
Unrealized Losses	0	0
Recorded Basis	906	1,197
Cash and cash equivalents	776	865
Short-term Investments	130	332
Equity and Other Investments	0	0
U.S. government and agency securities
Cash, Cash Equivalents and Investments [Line Items]
Cost Basis	72,843	66,952
Unrealized Gains	76	103
Unrealized Losses	(30)	(29)
Recorded Basis	72,889	67,026
Cash and cash equivalents	39	109
Short-term Investments	72,850	66,917
Equity and Other Investments	0	0
Foreign government bonds
Cash, Cash Equivalents and Investments [Line Items]
Cost Basis	5,477	3,328
Unrealized Gains	3	17
Unrealized Losses	(24)	(10)
Recorded Basis	5,456	3,335
Cash and cash equivalents	0	2,027
Short-term Investments	5,456	1,308
Equity and Other Investments	0	0
Mortgage- and asset-backed securities
Cash, Cash Equivalents and Investments [Line Items]
Cost Basis	4,899	991
Unrealized Gains	23	30
Unrealized Losses	(6)	(2)
Recorded Basis	4,916	1,019
Cash and cash equivalents	0	0
Short-term Investments	4,916	1,019
Equity and Other Investments	0	0
Corporate notes and bonds
Cash, Cash Equivalents and Investments [Line Items]
Cost Basis	7,192	6,845
Unrealized Gains	97	191
Unrealized Losses	(37)	(9)
Recorded Basis	7,252	7,027
Cash and cash equivalents	0	9
Short-term Investments	7,252	7,018
Equity and Other Investments	0	0
Municipal securities
Cash, Cash Equivalents and Investments [Line Items]
Cost Basis	285	287
Unrealized Gains	35	45
Unrealized Losses	(1)	0
Recorded Basis	319	332
Cash and cash equivalents	0	0
Short-term Investments	319	332
Equity and Other Investments	0	0
Common and preferred stock
Cash, Cash Equivalents and Investments [Line Items]
Cost Basis	6,668	6,785
Unrealized Gains	4,986	5,207
Unrealized Losses	(215)	(81)
Recorded Basis	11,439	11,911
Cash and cash equivalents	0	0
Short-term Investments	0	0
Equity and Other Investments	11,439	11,911
Other investments
Cash, Cash Equivalents and Investments [Line Items]
Cost Basis	597	1,164
Unrealized Gains	0	0
Unrealized Losses	0	0
Recorded Basis	597	1,164
Cash and cash equivalents	0	0
Short-term Investments	8	14
Equity and Other Investments	$ 589	$ 1,150

Investments - Held To Maturity - Additional Information (Detail) (USD $)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Schedule of Held-to-maturity Securities [Line Items]
Held to maturity investments, due date	Oct. 31, 2023
Held to maturity investments, amortized cost	$ 25,000,000	$ 1,500,000,000
Held to maturity investments, recorded basis	25,000,000	1,500,000,000
Held to maturity investments, estimated fair value		1,700,000,000
Held to maturity investments, gross unrealized holding gains		$ 164,000,000

Amount after other than temporary impairment (OTTI) accretion, of investments in debt securities classified as held-to-maturity.

+ References+ Details

Investments - Cost Method - Additional Information (Detail) (Fair Value, Measurements, Nonrecurring, USD $) In Millions, unless otherwise specified	Jun. 30, 2015	Jun. 30, 2014
Fair Value, Measurements, Nonrecurring
Schedule of Cost-method Investments [Line Items]
Recorded basis of common and preferred stock that are restricted for more than one year or are not publicly traded	$ 561	$ 520

Investments - Secured Borrowings and Loaned Securities - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	Jun. 30, 2015
Investment [Line Items]
Collateral received	$ 92
Certificates of deposit
Investment [Line Items]
Collateral received	79
U.S. government and agency securities
Investment [Line Items]
Collateral received	$ 13

Unrealized Losses on Investments (Detail) (USD $) In Millions, unless otherwise specified	Jun. 30, 2015	Jun. 30, 2014
Unrealized Losses on Investments [Line Items]
Less than 12 Months - Fair Value	$ 18,789	$ 6,464
Less than 12 Months - Unrealized Losses	(236)	(89)
12 Months or Greater - Fair Value	719	1,223
12 Months or Greater - Unrealized Losses	(77)	(42)
Total Fair Value	19,508	7,687
Total Unrealized Losses	(313)	(131)
U.S. government and agency securities
Unrealized Losses on Investments [Line Items]
Less than 12 Months - Fair Value	6,636	4,161
Less than 12 Months - Unrealized Losses	(9)	(29)
12 Months or Greater - Fair Value	421	850
12 Months or Greater - Unrealized Losses	(21)	0
Total Fair Value	7,057	5,011
Total Unrealized Losses	(30)	(29)
Foreign government bonds
Unrealized Losses on Investments [Line Items]
Less than 12 Months - Fair Value	4,611	566
Less than 12 Months - Unrealized Losses	(12)	(4)
12 Months or Greater - Fair Value	18	21
12 Months or Greater - Unrealized Losses	(12)	(6)
Total Fair Value	4,629	587
Total Unrealized Losses	(24)	(10)
Mortgage- and asset-backed securities
Unrealized Losses on Investments [Line Items]
Less than 12 Months - Fair Value	3,171	120
Less than 12 Months - Unrealized Losses	(5)	0
12 Months or Greater - Fair Value	28	61
12 Months or Greater - Unrealized Losses	(1)	(2)
Total Fair Value	3,199	181
Total Unrealized Losses	(6)	(2)
Corporate notes and bonds
Unrealized Losses on Investments [Line Items]
Less than 12 Months - Fair Value	2,946	1,154
Less than 12 Months - Unrealized Losses	(29)	(8)
12 Months or Greater - Fair Value	104	34
12 Months or Greater - Unrealized Losses	(8)	(1)
Total Fair Value	3,050	1,188
Total Unrealized Losses	(37)	(9)
Municipal securities
Unrealized Losses on Investments [Line Items]
Less than 12 Months - Fair Value	36
Less than 12 Months - Unrealized Losses	(1)
12 Months or Greater - Fair Value	0
12 Months or Greater - Unrealized Losses	0
Total Fair Value	36
Total Unrealized Losses	(1)
Common and preferred stock
Unrealized Losses on Investments [Line Items]
Less than 12 Months - Fair Value	1,389	463
Less than 12 Months - Unrealized Losses	(180)	(48)
12 Months or Greater - Fair Value	148	257
12 Months or Greater - Unrealized Losses	(35)	(33)
Total Fair Value	1,537	720
Total Unrealized Losses	$ (215)	$ (81)

Debt Investment Maturities (Detail) (USD $) In Millions, unless otherwise specified	Jun. 30, 2015
Cost Basis
Due in one year or less	$ 53,616
Due after one year through five years	33,260
Due after five years through 10 years	3,180
Due after 10 years	1,547
Total	91,603
Estimated Fair Value
Due in one year or less	53,645
Due after one year through five years	33,336
Due after five years through 10 years	3,161
Due after 10 years	1,597
Total	$ 91,739

Derivatives - Additional Information (Detail) (USD $)	12 Months Ended
Derivatives - Additional Information (Detail) (USD $)	Jun. 30, 2015	Jun. 30, 2015 Senior Unsecured Obligations	Jun. 30, 2015 Derivatives Sold Equity Contracts	Jun. 30, 2014 Derivatives Sold Equity Contracts	Jun. 30, 2015 Derivatives Sold Designated Hedge Derivatives Equity Contracts	Jun. 30, 2014 Derivatives Sold Designated Hedge Derivatives Equity Contracts	Jun. 30, 2015 Derivatives Sold Non-designated Hedge Derivatives Foreign Exchange Contracts	Jun. 30, 2014 Derivatives Sold Non-designated Hedge Derivatives Foreign Exchange Contracts	Jun. 30, 2015 Derivatives Sold Non-designated Hedge Derivatives Interest Rate Contracts	Jun. 30, 2014 Derivatives Sold Non-designated Hedge Derivatives Interest Rate Contracts	Jun. 30, 2015 Derivatives Sold Non-designated Hedge Derivatives Credit Contracts	Jun. 30, 2014 Derivatives Sold Non-designated Hedge Derivatives Credit Contracts	Jun. 30, 2015 Derivatives Sold Non-designated Hedge Derivatives Commodity Contracts	Jun. 30, 2014 Derivatives Sold Non-designated Hedge Derivatives Commodity Contracts	Jun. 30, 2015 Derivatives Sold Cash flow hedging Foreign Exchange Contracts	Jun. 30, 2014 Derivatives Sold Cash flow hedging Foreign Exchange Contracts	Jun. 30, 2015 Derivatives Sold Fair value hedging Foreign Exchange Contracts	Jun. 30, 2014 Derivatives Sold Fair value hedging Foreign Exchange Contracts	Jun. 30, 2015 Derivatives Purchased Equity Contracts	Jun. 30, 2014 Derivatives Purchased Equity Contracts	Jun. 30, 2015 Derivatives Purchased Designated Hedge Derivatives Equity Contracts	Jun. 30, 2014 Derivatives Purchased Designated Hedge Derivatives Equity Contracts	Jun. 30, 2015 Derivatives Purchased Non-designated Hedge Derivatives Foreign Exchange Contracts	Jun. 30, 2014 Derivatives Purchased Non-designated Hedge Derivatives Foreign Exchange Contracts	Jun. 30, 2015 Derivatives Purchased Non-designated Hedge Derivatives Interest Rate Contracts	Jun. 30, 2014 Derivatives Purchased Non-designated Hedge Derivatives Interest Rate Contracts	Jun. 30, 2015 Derivatives Purchased Non-designated Hedge Derivatives Mortgage-backed securities	Jun. 30, 2014 Derivatives Purchased Non-designated Hedge Derivatives Mortgage-backed securities	Jun. 30, 2015 Derivatives Purchased Non-designated Hedge Derivatives Credit Contracts	Jun. 30, 2014 Derivatives Purchased Non-designated Hedge Derivatives Credit Contracts	Jun. 30, 2015 Derivatives Purchased Non-designated Hedge Derivatives Commodity Contracts	Jun. 30, 2014 Derivatives Purchased Non-designated Hedge Derivatives Commodity Contracts
Derivative [Line Items]
Maximum length of time hedged in cash flow hedge	3 years
Notional amounts			$ 2,600,000,000	$ 1,900,000,000	$ 1,400,000,000	$ 420,000,000	$ 11,000,000,000	$ 8,500,000,000	$ 3,200,000,000	$ 936,000,000	$ 430,000,000	$ 440,000,000	$ 316,000,000	$ 408,000,000	$ 9,800,000,000	$ 4,900,000,000	$ 5,300,000,000	$ 3,100,000,000	$ 2,200,000,000	$ 1,900,000,000	$ 1,100,000,000	$ 362,000,000	$ 9,700,000,000	$ 6,200,000,000	$ 1,000,000,000	$ 1,700,000,000	$ 812,000,000	$ 1,100,000,000	$ 618,000,000	$ 550,000,000	$ 882,000,000	$ 1,400,000,000
Minimum required liquidity under certain counterparty agreements	1,000,000,000
Debt instrument credit rating		AAA
Minimum liquidity for the period as defined by certain counterparty agreements	1,000,000,000
Estimated derivative net gains (losses) included in AOCI that will be reclassified into earnings within 12 months	$ 492,000,000

Fair Values of Derivative Instruments (Detail) (USD $) In Millions, unless otherwise specified	Jun. 30, 2015	Jun. 30, 2014
Short-term Investments
Derivatives, Fair Value [Line Items]
Derivative Assets	$ 244	$ 244
Net amount, assets	60	22
Short-term Investments \| Eligible for Offsetting
Derivatives, Fair Value [Line Items]
Derivative Assets	126	99
Gross amounts of derivatives offset in the balance sheet, assets	(66)	(77)
Net amounts presented in the balance sheet, assets	60	22
Gross amounts of derivatives not offset in the balance sheet, assets	0	0
Cash collateral received, assets	0	0
Short-term Investments \| Non-designated Hedge Derivatives
Derivatives, Fair Value [Line Items]
Derivative Assets	188	243
Short-term Investments \| Non-designated Hedge Derivatives \| Foreign Exchange Contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	17	10
Short-term Investments \| Non-designated Hedge Derivatives \| Equity Contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	148	177
Short-term Investments \| Non-designated Hedge Derivatives \| Interest Rate Contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	7	17
Short-term Investments \| Non-designated Hedge Derivatives \| Credit Contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	16	24
Short-term Investments \| Non-designated Hedge Derivatives \| Commodity Contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	0	15
Short-term Investments \| Designated Hedge Derivatives
Derivatives, Fair Value [Line Items]
Derivative Assets	56	1
Short-term Investments \| Designated Hedge Derivatives \| Foreign Exchange Contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	56	1
Short-term Investments \| Designated Hedge Derivatives \| Equity Contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	0	0
Other Current Assets
Derivatives, Fair Value [Line Items]
Derivative Assets	719	109
Net amount, assets	648	38
Other Current Assets \| Eligible for Offsetting
Derivatives, Fair Value [Line Items]
Derivative Assets	719	109
Gross amounts of derivatives offset in the balance sheet, assets	(71)	(71)
Net amounts presented in the balance sheet, assets	648	38
Gross amounts of derivatives not offset in the balance sheet, assets	0	0
Cash collateral received, assets	0	0
Other Current Assets \| Non-designated Hedge Derivatives
Derivatives, Fair Value [Line Items]
Derivative Assets	167	39
Other Current Assets \| Non-designated Hedge Derivatives \| Foreign Exchange Contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	167	39
Other Current Assets \| Non-designated Hedge Derivatives \| Equity Contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	0	0
Other Current Assets \| Non-designated Hedge Derivatives \| Interest Rate Contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	0	0
Other Current Assets \| Non-designated Hedge Derivatives \| Credit Contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	0	0
Other Current Assets \| Non-designated Hedge Derivatives \| Commodity Contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	0	0
Other Current Assets \| Designated Hedge Derivatives
Derivatives, Fair Value [Line Items]
Derivative Assets	552	70
Other Current Assets \| Designated Hedge Derivatives \| Foreign Exchange Contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	552	70
Other Current Assets \| Designated Hedge Derivatives \| Equity Contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	0	0
Equity and Other Investments
Derivatives, Fair Value [Line Items]
Derivative Assets	25	7
Net amount, assets	0	0
Equity and Other Investments \| Eligible for Offsetting
Derivatives, Fair Value [Line Items]
Derivative Assets	25	7
Gross amounts of derivatives offset in the balance sheet, assets	(25)	(7)
Net amounts presented in the balance sheet, assets	0	0
Gross amounts of derivatives not offset in the balance sheet, assets	0	0
Cash collateral received, assets	0	0
Equity and Other Investments \| Non-designated Hedge Derivatives
Derivatives, Fair Value [Line Items]
Derivative Assets	0	0
Equity and Other Investments \| Non-designated Hedge Derivatives \| Foreign Exchange Contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	0	0
Equity and Other Investments \| Non-designated Hedge Derivatives \| Equity Contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	0	0
Equity and Other Investments \| Non-designated Hedge Derivatives \| Interest Rate Contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	0	0
Equity and Other Investments \| Non-designated Hedge Derivatives \| Credit Contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	0	0
Equity and Other Investments \| Non-designated Hedge Derivatives \| Commodity Contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	0	0
Equity and Other Investments \| Designated Hedge Derivatives
Derivatives, Fair Value [Line Items]
Derivative Assets	25	7
Equity and Other Investments \| Designated Hedge Derivatives \| Foreign Exchange Contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	0	0
Equity and Other Investments \| Designated Hedge Derivatives \| Equity Contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	25	7
Other Current Liabilities
Derivatives, Fair Value [Line Items]
Derivative Liabilities	(218)	(284)
Net amount, liabilities	(513)	(129)
Other Current Liabilities \| Eligible for Offsetting
Derivatives, Fair Value [Line Items]
Derivative Liabilities	(218)	(284)
Gross amounts of derivatives offset in the balance sheet, liabilities	161	155
Net amounts presented in the balance sheet, liabilities	(57)	(129)
Gross amounts of derivatives not offset in the balance sheet, liabilities	0	0
Cash collateral received, liabilities	(456)	0
Other Current Liabilities \| Non-designated Hedge Derivatives
Derivatives, Fair Value [Line Items]
Derivative Liabilities	(118)	(144)
Other Current Liabilities \| Non-designated Hedge Derivatives \| Foreign Exchange Contracts
Derivatives, Fair Value [Line Items]
Derivative Liabilities	(79)	(97)
Other Current Liabilities \| Non-designated Hedge Derivatives \| Equity Contracts
Derivatives, Fair Value [Line Items]
Derivative Liabilities	(18)	(21)
Other Current Liabilities \| Non-designated Hedge Derivatives \| Interest Rate Contracts
Derivatives, Fair Value [Line Items]
Derivative Liabilities	(12)	(12)
Other Current Liabilities \| Non-designated Hedge Derivatives \| Credit Contracts
Derivatives, Fair Value [Line Items]
Derivative Liabilities	(9)	(13)
Other Current Liabilities \| Non-designated Hedge Derivatives \| Commodity Contracts
Derivatives, Fair Value [Line Items]
Derivative Liabilities	0	(1)
Other Current Liabilities \| Designated Hedge Derivatives
Derivatives, Fair Value [Line Items]
Derivative Liabilities	(100)	(140)
Other Current Liabilities \| Designated Hedge Derivatives \| Foreign Exchange Contracts
Derivatives, Fair Value [Line Items]
Derivative Liabilities	(31)	(15)
Other Current Liabilities \| Designated Hedge Derivatives \| Equity Contracts
Derivatives, Fair Value [Line Items]
Derivative Liabilities	$ (69)	$ (125)

Gains (Losses) on Fair Value Hedges and Related Hedged Items (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Foreign Exchange Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Derivatives	$ 741	$ (14)	$ 70
Hedged items	(725)	6	(69)
Total amount of ineffectiveness	16	(8)	1
Equity Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Derivatives	(107)	(110)	0
Hedged items	107	110	0
Total amount of ineffectiveness	0	0	0
Amount of equity contracts excluded from effectiveness assessment	$ 0	$ (9)	$ 0

Gains (Losses) Related to Cash Flow Hedges (Detail) (Designated Hedge Derivatives, Foreign Exchange Contracts, USD $) In Millions, unless otherwise specified	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Designated Hedge Derivatives \| Foreign Exchange Contracts
Effective Portion
Gains recognized in OCI (net of tax effects of $35, $2 and $54)	$ 1,152	$ 63	$ 101
Gains reclassified from AOCI into revenue	608	104	195
Amount Excluded from Effectiveness Assessment and Ineffective Portion
Losses recognized in other income (expense), net	$ (346)	$ (239)	$ (168)

Amount after tax of increase (decrease) in accumulated gain (loss) from derivative instruments designated and qualifying as the effective portion of cash flow hedges and an entity's share of an equity investee's increase (decrease) in deferred hedging gain (loss).

+ References+ Details

Gains (Losses) Related to Cash Flow Hedges (Parenthetical) (Detail) (Designated Hedge Derivatives, Foreign Exchange Contracts, USD $) In Millions, unless otherwise specified	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Designated Hedge Derivatives \| Foreign Exchange Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Gains recognized in OCI, tax effects	$ 35	$ 2	$ 54

Non-Designated Derivative Gains (Losses) (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Derivative Instruments, Gain (Loss) [Line Items]
Changes in fair value of derivatives not designated as hedges	$ (703)	$ (34)	$ (22)
Foreign Exchange Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Changes in fair value of derivatives not designated as hedges	(483)	(78)	18
Equity Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Changes in fair value of derivatives not designated as hedges	(19)	(64)	16
Interest Rate Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Changes in fair value of derivatives not designated as hedges	23	24	(11)
Credit Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Changes in fair value of derivatives not designated as hedges	(1)	13	(3)
Commodity Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Changes in fair value of derivatives not designated as hedges	$ (223)	$ 71	$ (42)

Reconciliation of Total Assets Measured at Fair Value on Recurring Basis to Balance Sheet Presentation (Detail) (USD $) In Millions, unless otherwise specified	Jun. 30, 2015	Jun. 30, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net fair value of assets measured at fair value on a recurring basis	$ 104,369	$ 92,164
Other assets	4
Other liabilities		(6)
Recorded basis of investment components	108,554	98,770
Other Current Assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Less derivative net assets classified as other current assets	(648)	(38)
Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash	3,679	4,980
Fair Value, Measurements, Nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Common and preferred stock measured at fair value on a nonrecurring basis	561	520
Other investments measured at fair value on a nonrecurring basis	$ 589	$ 1,150

Cash paid, net of cash acquired, to acquire the business

Fair value, after the effects of master netting arrangements, of a financial asset or other contract with one or more underlyings, notional amount or payment provision or both, and the contract can be net settled by means outside the contract or delivery of an asset, expected to be settled within one year or normal operating cycle, if longer. Includes assets not subject to a master netting arrangement and not elected to be offset.

+ References+ Details

Components of Inventories (Detail) (USD $) In Millions, unless otherwise specified	Jun. 30, 2015	Jun. 30, 2014
Inventory [Line Items]
Raw materials	$ 1,100	$ 944
Work in process	202	266
Finished goods	1,600	1,450
Total	$ 2,902	$ 2,660

Components of Property and Equipment (Detail) (USD $) In Millions, unless otherwise specified	Jun. 30, 2015	Jun. 30, 2014
Property, Plant and Equipment [Line Items]
Land	$ 769	$ 541
Buildings and improvements	10,800	8,867
Leasehold improvements	3,577	3,560
Computer equipment and software	13,612	11,430
Furniture and equipment	3,579	3,406
Total, at cost	32,337	27,804
Accumulated depreciation	(17,606)	(14,793)
Total, net	$ 14,731	$ 13,011

Property and Equipment - Additional Information (Detail) (USD $) In Billions, unless otherwise specified	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Property, Plant and Equipment [Line Items]
Depreciation expense	$ 4.1	$ 3.4	$ 2.6

Business Combinations - Additional Information (Detail) (USD $)

12 Months Ended

0 Months Ended

3 Months Ended

12 Months Ended

0 Months Ended

12 Months Ended

0 Months Ended

2 Months Ended

3 Months Ended

12 Months Ended

0 Months Ended

12 Months Ended

Jun. 30, 2015

Jun. 30, 2014

Jun. 30, 2013

Apr. 25, 2014

Nokia Mapping Services License

Jun. 30, 2015

Phone Business

Jun. 30, 2015

Phone Business

Nov. 06, 2014

Mojang Synergies AB

Jun. 30, 2015

Mojang Synergies AB

Nov. 06, 2014

Mojang Synergies AB

Apr. 25, 2014

Nokia Devices And Services Business

Jun. 30, 2014

Nokia Devices And Services Business

Jun. 30, 2014

Nokia Devices And Services Business

Jun. 30, 2015

Nokia Devices And Services Business

Apr. 25, 2014

Nokia Devices And Services Business

Apr. 25, 2014

Nokia Devices And Services Business

Corporate notes and bonds

Nokia

Jul. 18, 2012

Yammer, Inc.

Jun. 30, 2015

Yammer, Inc.

Jul. 18, 2012

Yammer, Inc.

Jun. 30, 2015

Series of Individually Immaterial Business Acquisitions

Entity

Business Acquisition [Line Items]

Name of acquired entity

Mojang Synergies AB

Nokia Corporation's ("Nokia") Devices and Services business ("NDS")

Yammer, Inc. ("Yammer")

Acquisition date

Nov. 06, 2014

Apr. 25, 2014

Jul. 18, 2012

$ 2,500,000,000

Goodwill acquired

16,939,000,000

20,127,000,000

14,655,000,000

1,800,000,000

5,456,000,000

^[1]

937,000,000

Identifiable intangible assets acquired

928,000,000

4,509,000,000

178,000,000

Weighted-average amortization period

6 years

8 years

6 years 3 months 18 days

8 years

Total purchase price

9,400,000,000

Cash acquired

1,506,000,000

Cash paid to acquire the business

7,100,000,000

1,100,000,000

892,000,000

Non-cash transaction to acquire the business

2,100,000,000

Liabilities assumed

200,000,000

Goodwill and asset impairments

7,498,000,000

Revenue since the Acquisition

2,000,000,000

Operating loss since the Acquisition

692,000,000

Acquisition costs

21,000,000

Gain or loss upon termination of contractual agreement

$ 0

License period

4 years

Number of entities acquired

[1]	Goodwill was assigned to More Personal Computing under our current segment structure. The goodwill was primarily attributed to increased synergies that were expected to be achieved from the integration of NDS.

Major Classes of Assets and Liabilities to Which We Have Allocated the Purchase Price (Detail) (USD $)
In Millions, unless otherwise specified

Jun. 30, 2015

Jun. 30, 2014

Jun. 30, 2013

Apr. 25, 2014

Nokia Devices And Services Business

Business Acquisition [Line Items]

Cash

$ 1,506

Accounts receivable

754

^[1]

Inventories

544

Other current assets

936

Property and equipment

981

Intangible assets

4,509

Goodwill

16,939

20,127

14,655

5,456

^[2]

221

Current liabilities

(4,575)

Long-term liabilities

(890)

Total purchase price

$ 9,442

[1]	Gross accounts receivable was $901 million, of which $147 million was expected to be uncollectible.
[2]	Goodwill was assigned to More Personal Computing under our current segment structure. The goodwill was primarily attributed to increased synergies that were expected to be achieved from the integration of NDS.

Major Classes of Assets and Liabilities to Which We Have Allocated the Purchase Price (Parenthetical) (Detail) (Nokia Devices And Services Business, USD $) In Millions, unless otherwise specified	Apr. 25, 2014
Nokia Devices And Services Business
Business Acquisition [Line Items]
Gross accounts receivable	$ 901
Gross accounts receivable, expected to be uncollectible	$ 147

Acquired Intangible Assets (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended							0 Months Ended		0 Months Ended		0 Months Ended		0 Months Ended		0 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015 Technology-based	Jun. 30, 2014 Technology-based	Jun. 30, 2015 Customer-related	Jun. 30, 2014 Customer-related	Jun. 30, 2014 Contract-based	Apr. 25, 2014 Nokia Devices And Services Business	Apr. 25, 2014 Nokia Devices And Services Business	Apr. 25, 2014 Nokia Devices And Services Business Marketing-related (trade names)	Apr. 25, 2014 Nokia Devices And Services Business Marketing-related (trade names)	Apr. 25, 2014 Nokia Devices And Services Business Technology-based	Apr. 25, 2014 Nokia Devices And Services Business Technology-based	Apr. 25, 2014 Nokia Devices And Services Business Customer-related	Apr. 25, 2014 Nokia Devices And Services Business Customer-related	Apr. 25, 2014 Nokia Devices And Services Business Contract-based	Apr. 25, 2014 Nokia Devices And Services Business Contract-based
Acquired Finite-Lived Intangible Assets [Line Items]
Fair value of intangible assets acquired									$ 4,509		$ 157		$ 2,493		$ 359		$ 1,500
Weighted Average Life	6 years	8 years	5 years	9 years	4 years	3 years	9 years	8 years		2 years		9 years		3 years		9 years

Supplemental Consolidated Results on Unaudited Pro Forma Basis, as If the Acquisition Had Been Consummated on Beginning of Period (Detail) (USD $) In Millions, except Per Share data, unless otherwise specified	12 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Business Acquisition [Line Items]
Revenue	$ 96,248	$ 93,243
Net income	$ 20,234	$ 20,153
Diluted earnings per share	$ 2.41	$ 2.38

Carrying Amount of Goodwill (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Goodwill [Line Items]
Beginning Balance	$ 20,127	$ 14,655
Acquisitions	2,455	5,565
Other	(5,643)	(93)
Ending Balance	16,939	20,127
Productivity and Business Processes
Goodwill [Line Items]
Beginning Balance	6,116	6,057
Acquisitions	376	56
Other	(183)	3
Ending Balance	6,309	6,116
Intelligent Cloud
Goodwill [Line Items]
Beginning Balance	4,631	4,580
Acquisitions	291	51
Other	(5)	0
Ending Balance	4,917	4,631
More Personal Computing
Goodwill [Line Items]
Beginning Balance	9,380	4,018
Acquisitions	1,788	5,458
Other	(5,455)	(96)
Ending Balance	$ 5,713	$ 9,380

Goodwill - Additional Information (Detail) (USD $)	0 Months Ended			12 Months Ended
Goodwill - Additional Information (Detail) (USD $)	May 01, 2014	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015 Phone Hardware
Goodwill [Line Items]
Goodwill impairment charge	$ 0			$ 5,100,000,000
Accumulated goodwill impairment		$ 11,300,000,000	$ 6,200,000,000

Finite-Lived Intangible Assets (Detail) (USD $)
In Millions, unless otherwise specified

Jun. 30, 2015

Jun. 30, 2014

$ 10,137

$ 10,956

(5,302)

(3,975)

4,835

6,981

Technology-based

6,187

^[1]

6,440

^[1]

(3,410)

^[1]

(2,615)

^[1]

2,777

^[1]

3,825

^[1]

Marketing-related

1,974

1,518

(540)

(324)

1,434

1,194

Contract-based

1,344

2,266

(862)

(716)

482

1,550

Customer-related

632

732

(490)

(320)

$ 142

$ 412

[1]	Goodwill acquired during fiscal year 2014 related to the acquisition of NDS. See Note 9 - Business Combinations for additional details.

Finite-Lived Intangible Assets (Parenthetical) (Detail) (USD $) In Millions, unless otherwise specified	Jun. 30, 2015	Jun. 30, 2014
Finite-Lived Intangible Assets [Line Items]
Net Carrying Amount	$ 4,835	$ 6,981
Software to be sold, leased, or otherwise marketed
Finite-Lived Intangible Assets [Line Items]
Net Carrying Amount	$ 116	$ 98

Intangible Assets - Additional Information (Detail) (USD $)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2015 Phone Hardware	Apr. 25, 2014 Nokia Devices And Services Business
Finite-Lived Intangible Assets [Line Items]
Impairment charges of intangible assets				$ 2,200,000,000
Intangible assets acquired					4,509,000,000
Intangible assets amortization expense	1,300,000,000	845,000,000	739,000,000
Amortization of capitalized software	$ 79,000,000	$ 200,000,000	$ 210,000,000

Intangible Assets Acquired (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Acquired Finite-Lived Intangible Assets [Line Items]
Amount	$ 1,454	$ 4,878
Weighted Average Life	6 years	8 years
Technology-based
Acquired Finite-Lived Intangible Assets [Line Items]
Amount	874	2,841
Weighted Average Life	5 years	9 years
Marketing-related
Acquired Finite-Lived Intangible Assets [Line Items]
Amount	543	174
Weighted Average Life	8 years	2 years
Contract-based
Acquired Finite-Lived Intangible Assets [Line Items]
Amount	0	1,500
Weighted Average Life		9 years
Customer-related
Acquired Finite-Lived Intangible Assets [Line Items]
Amount	$ 37	$ 363
Weighted Average Life	4 years	3 years

Estimated Future Amortization Expense Related to Intangible Assets (Detail) (USD $) In Millions, unless otherwise specified	Jun. 30, 2015	Jun. 30, 2014
Finite-Lived Intangible Assets [Line Items]
Year Ending June 30, 2016	$ 910
Year Ending June 30, 2017	755
Year Ending June 30, 2018	670
Year Ending June 30, 2019	554
Year Ending June 30, 2020	495
Thereafter	1,451
Net Carrying Amount	$ 4,835	$ 6,981

Debt - Additional Information (Detail) (USD $)	12 Months Ended
Debt - Additional Information (Detail) (USD $)	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Debt Instrument [Line Items]
Commercial paper	$ 5,000,000,000	$ 2,000,000,000
Credit facility, financial covenant	As of June 30, 2015, we were in compliance with the only financial covenant in both credit agreements, which requires us to maintain a coverage ratio of at least three times earnings before interest, taxes, depreciation, and amortization to interest expense, as defined in the credit agreements.
Credit facility, drawn	0	0
Long-term debt	30,300,000,000	20,600,000,000
Long-term debt fair value	30,500,000,000	21,500,000,000
Cash paid for interest	620,000,000	509,000,000	371,000,000
Unamortized discount	156,000,000	100,000,000
Commercial paper
Debt Instrument [Line Items]
Commercial paper, weighted average interest rate	0.11%	0.12%
Commercial paper \| Lower Limit
Debt Instrument [Line Items]
Commercial paper, maturity term	8 days	86 days
Commercial paper \| Upper Limit
Debt Instrument [Line Items]
Commercial paper, maturity term	63 days	91 days
Credit Facility Expire on November 4th 2015
Debt Instrument [Line Items]
Credit facility	5,000,000,000
Credit facility, expiration date	Nov. 04, 2015
Credit Facility Expire on November 14th 2018
Debt Instrument [Line Items]
Credit facility	$ 5,000,000,000
Credit facility, expiration date	Nov. 14, 2018

Long-term Debt (Detail) (USD $)
In Millions, unless otherwise specified

12 Months Ended

Jun. 30, 2015

Jun. 30, 2014

$ 30,463

$ 20,745

Notes 1.625 Percent Due September 25th 2015

Sep. 25, 2015

1,750

1.625%

1.795%

Notes 2.5 Percent Due February 8th 2016

Feb. 08, 2016

750

2.50%

2.642%

Notes 0.875 Percent Due November 15th 2017

Nov. 15, 2017

600

0.875%

1.084%

Notes 1.0 Percent Due May 1st 2018

May 01, 2018

450

1.00%

1.106%

Notes 1.625 Percent Due December 6th 2018

Dec. 06, 2018

1,250

1.625%

1.824%

Notes 4.2 Percent Due June 1st 2019

Jun. 01, 2019

1,000

4.20%

4.379%

Notes 1.850 Percent Due February 12th 2020

Feb. 12, 2020

^[1]

Feb. 12, 2020

^[1]

1,500

^[1]

1.85%

^[1]

1.85%

^[1]

1.935%

^[1]

1.935%

^[1]

Notes 3.0 Percent Due October 1st 2020

Oct. 01, 2020

1,000

3.00%

3.137%

Notes 4.0 Percent Due February 8th 2021

Feb. 08, 2021

500

4.00%

4.082%

Notes 2.125 Percent Due December 6th 2021

Dec. 06, 2021

^[2]

Dec. 06, 2021

^[2]

1,950

^[2]

2,396

^[2]

2.125%

^[2]

2.125%

^[2]

2.233%

^[2]

2.233%

^[2]

Notes 2.375 Percent Due February 12th 2022

Feb. 12, 2022

^[1]

Feb. 12, 2022

^[1]

1,500

^[1]

2.375%

^[1]

2.375%

^[1]

2.466%

^[1]

2.466%

^[1]

Notes 2.125 Percent Due November 15th 2022

Nov. 15, 2022

750

2.125%

2.239%

Notes 2.375 Percent Due May 1st 2023

May 01, 2023

1,000

2.375%

2.465%

Notes 3.625 Percent Due December 15th 2023

Dec. 15, 2023

1,500

3.625%

3.726%

Notes 2.70 Percent Due February 12th 2025

Feb. 12, 2025

^[1]

Feb. 12, 2025

^[1]

2,250

^[1]

2.70%

^[1]

2.70%

^[1]

2.772%

^[1]

2.772%

^[1]

Notes 3.125 Percent Due December 6th 2028

Dec. 06, 2028

^[2]

Dec. 06, 2028

^[2]

1,950

^[2]

2,396

^[2]

3.125%

^[2]

3.125%

^[2]

3.218%

^[2]

3.218%

^[2]

Notes 2.625 Percent Due May 2nd 2033

May 02, 2033

^[2]

May 02, 2033

^[2]

613

^[2]

753

^[2]

2.625%

^[2]

2.625%

^[2]

2.69%

^[2]

2.69%

^[2]

Notes 3.50 Percent Due February 12th 2035

Feb. 12, 2035

^[1]

Feb. 12, 2035

^[1]

1,500

^[1]

3.50%

^[1]

3.50%

^[1]

3.604%

^[1]

3.604%

^[1]

Notes 5.2 Percent Due June 1st 2039

Jun. 01, 2039

750

5.20%

5.24%

Notes 4.5 Percent Due October 1st 2040

Oct. 01, 2040

1,000

4.50%

4.567%

Notes 5.3 Percent Due February 8th 2041

Feb. 08, 2041

1,000

5.30%

5.361%

Notes 3.5 Percent Due November 15th 2042

Nov. 15, 2042

900

3.50%

3.571%

Notes 3.750 Percent Due May 1st 2043

May 01, 2043

500

3.75%

3.829%

Notes 4.875 Percent Due December 15th 2043

Dec. 15, 2043

500

4.875%

4.918%

Notes 3.750 Percent Due February 12th 2045

Feb. 12, 2045

^[1]

Feb. 12, 2045

^[1]

1,750

^[1]

3.75%

^[1]

3.75%

^[1]

3.80%

^[1]

3.80%

^[1]

Notes 4.0 Percent Due February 12th 2055

Feb. 12, 2055

^[1]

Feb. 12, 2055

^[1]

$ 2,250

^[1]

$ 0

^[1]

4.00%

^[1]

4.00%

^[1]

4.063%

^[1]

4.063%

^[1]

[1]	In February 2015, we issued $10.8 billion of debt securities.
[2]	Euro-denominated debt securities.

Long-term Debt (Parenthetical) (Detail) (USD $) In Millions, unless otherwise specified	Jun. 30, 2015	Jun. 30, 2014	Feb. 28, 2015
Debt Instrument [Line Items]
Face Value	$ 30,463	$ 20,745	$ 10,800

Maturities of Long-term Debt (Detail) (USD $) In Millions, unless otherwise specified	Jun. 30, 2015	Jun. 30, 2014
Debt Instrument [Line Items]
Year Ending June 30, 2016	$ 2,500
Year Ending June 30, 2017	0
Year Ending June 30, 2018	1,050
Year Ending June 30, 2019	2,250
Year Ending June 30, 2020	1,500
Thereafter	23,163
Total	$ 30,463	$ 20,745

Provision for Income Taxes (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Current Taxes
U.S. federal	$ 3,661	$ 3,738	$ 3,131
U.S. state and local	364	266	332
Foreign	2,065	2,073	1,745
Current taxes	6,090	6,077	5,208
Deferred Taxes
Deferred taxes	224	(331)	(19)
Provision for income taxes	$ 6,314	$ 5,746	$ 5,189

Amount of current federal tax expense (benefit) pertaining to income (loss) from continuing operations.

+ References+ Details

Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations.

+ References+ Details

Amount of current state and local tax expense (benefit) pertaining to income (loss) from continuing operations.

+ References+ Details

Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.

+ References+ Details

Income Before Income Taxes (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Schedule of Components of Income Before Income Tax Expense (Benefit) [Line Items]
U.S.	$ 7,363	$ 7,127	$ 6,674
Foreign	11,144	20,693	20,378
Income before income taxes	$ 18,507	$ 27,820	$ 27,052

Difference Between Income Taxes Computed at Federal Statutory Rate and Provision for Income Taxes (Detail)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Reconciliation of Statutory Federal Tax Rate [Line Items]
Federal statutory rate	35.00%	35.00%	35.00%
Effect of:
Foreign earnings taxed at lower rates	(20.90%)	(17.10%)	(17.50%)
Phone nondeductible charges and valuation allowance	19.10%	0.90%	0.00%
Domestic production activities deduction	(2.40%)	(1.00%)	(1.20%)
Other reconciling items, net	3.30%	2.90%	2.90%
Effective rate	34.10%	20.70%	19.20%

Income Taxes - Additional Information (Detail) (USD $)	3 Months Ended	12 Months Ended				12 Months Ended					3 Months Ended
Income Taxes - Additional Information (Detail) (USD $)	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2015 Regional Operating Centers	Jun. 30, 2014 Regional Operating Centers	Jun. 30, 2013 Regional Operating Centers	Jun. 30, 2015 Skype Global S.a r.l. Foreign Country	Jun. 30, 2015 Nokia Devices And Services Business Foreign Country	Mar. 31, 2011 Internal Revenue Service (IRS)
Income Taxes [Line Items]
Foreign earnings, excluding losses in foreign jurisdictions, taxed at rates lower than U.S. rate as a percentage of foreign income before tax						73.00%	81.00%	79.00%
Operating loss carryforwards		$ 4,600,000,000							$ 1,800,000,000	$ 545,000,000
Temporary differences resulting from earnings for certain non-U.S. subsidiaries which are permanently reinvested outside the United States		108,300,000,000
Unrecognized tax liability on temporary differences resulting from earnings for certain non-U.S. subsidiaries which are permanently reinvested outside the United States		34,500,000,000
Income taxes paid		4,400,000,000	5,500,000,000	3,900,000,000
Unrecognized tax benefits	8,714,000,000	9,599,000,000	8,714,000,000	8,648,000,000	7,202,000,000
Unrecognized tax benefits, if recognized would affect our effective tax rates	7,000,000,000	7,900,000,000	7,000,000,000	6,500,000,000
Accrued interest expense related to uncertain tax positions net of federal income tax benefits	1,500,000,000	1,700,000,000	1,500,000,000	1,300,000,000
Interest expense on unrecognized tax benefits		237,000,000	235,000,000	400,000,000
Reduction of income tax expense due to settlement of prior year audit	$ 458,000,000										$ (461,000,000)

Deferred Income Tax Assets and Liabilities (Detail) (USD $) In Millions, unless otherwise specified	Jun. 30, 2015	Jun. 30, 2014
Deferred Income Tax Assets
Stock-based compensation expense	$ 884	$ 903
Other expense items	1,531	1,112
Restructuring charges	211	0
Unearned revenue	520	520
Impaired investments	257	272
Loss carryforwards	1,158	922
Depreciation and amortization	798	0
Other revenue items	56	64
Deferred income tax assets	5,415	3,793
Less valuation allowance	(2,265)	(903)
Deferred income tax assets, net of valuation allowance	3,150	2,890
Deferred Income Tax Liabilities
Foreign earnings	(1,280)	(1,140)
Unrealized gain on investments and debt	(2,223)	(1,974)
Depreciation and amortization	(685)	(470)
Other	(29)	(87)
Deferred income tax liabilities	(4,217)	(3,671)
Net deferred income tax assets (liabilities)	(1,067)	(781)
Reported As
Current deferred income tax assets	1,915	1,941
Other current liabilities	(6,766)	(6,906)
Other long-term assets	2,953	3,422
Long-term deferred income tax liabilities	(2,835)	(2,728)
Net deferred income tax assets (liabilities)	(1,067)	(781)
Deferred Taxes Assets (Liabilities), Net
Reported As
Other current liabilities	(211)	(125)
Other long-term assets	$ 64	$ 131

Changes in Unrecognized Tax Benefits (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Income Tax Contingency [Line Items]
Balance, beginning of year	$ 8,714	$ 8,648	$ 7,202
Decreases related to settlements	(50)	(583)	(30)
Increases for tax positions related to the current year	1,091	566	612
Increases for tax positions related to prior years	94	217	931
Decreases for tax positions related to prior years	(144)	(95)	(65)
Decreases due to lapsed statutes of limitations	(106)	(39)	(2)
Balance, end of year	$ 9,599	$ 8,714	$ 8,648

Income Taxes - Additional Information Regarding Examinations (Detail)	12 Months Ended
	Jun. 30, 2015
Internal Revenue Service (IRS) \| Earliest Tax Year
Income Tax Examination [Line Items]
Tax years under audit	2004
Tax years subject to examination	2007
Internal Revenue Service (IRS) \| Latest Tax Year
Income Tax Examination [Line Items]
Tax years under audit	2006
Tax years subject to examination	2015
Foreign Country \| Earliest Tax Year
Income Tax Examination [Line Items]
Tax years subject to examination	1996
Foreign Country \| Latest Tax Year
Income Tax Examination [Line Items]
Tax years subject to examination	2015

Restructuring Charges - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Jun. 30, 2015
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 2,078
Phone Hardware Integration Plan
Restructuring Cost and Reserve [Line Items]
Number of positions eliminated	19,000
Completion date	Jun. 30, 2015
Restructuring charges	1,300
Phone Hardware Integration Plan \| Nokia Devices And Services Business
Restructuring Cost and Reserve [Line Items]
Number of positions eliminated	13,000
Phone Hardware Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Completion date	Jun. 30, 2016
Restructuring charges	$ 780
Phone Hardware Restructuring Plan \| Upper Limit
Restructuring Cost and Reserve [Line Items]
Number of positions expected to be eliminated in fiscal year 2016	7,800

Restructuring Cost and Reserve [Line Items]

Amount of expenses associated with exit or disposal activities pursuant to an authorized plan. Excludes expenses related to a discontinued operation or an asset retirement obligation.

+ References+ Details

Changes in Restructuring Liability (Detail) (USD $)
In Millions, unless otherwise specified

12 Months Ended

Jun. 30, 2015

Restructuring liability as of June 30, 2014

$ 0

Restructuring charges

2,078

Cash paid

(835)

Restructuring liability as of June 30, 2015

(406)

837

Severance

Restructuring Cost and Reserve [Line Items]

Restructuring liability as of June 30, 2014

Restructuring charges

1,308

Cash paid

(701)

Restructuring liability as of June 30, 2015

(19)

588

Asset Impairments and Other

Restructuring Cost and Reserve [Line Items]

Restructuring liability as of June 30, 2014

^[1]

Restructuring charges

770

^[1]

Cash paid

(134)

^[1]

Restructuring liability as of June 30, 2015

(387)

^[1]

$ 249

^[1]

[1]	"Asset Impairments and Other" primarily reflects activities associated with the consolidation of our facilities and manufacturing operations, including asset write-downs of $372 million during fiscal year 2015, as well as contract termination costs.

Shares of common stock repurchased

Amount of expenses associated with exit or disposal activities pursuant to an authorized plan. Excludes expenses related to a discontinued operation or an asset retirement obligation.

+ References+ Details

Changes in Restructuring Liability (Parenthetical) (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Jun. 30, 2015
Restructuring Cost and Reserve [Line Items]
Asset write-downs	$ 372

Unearned Revenue by Segment (Detail) (USD $) In Millions, unless otherwise specified	Jun. 30, 2015	Jun. 30, 2014
Deferred Revenue Arrangement [Line Items]
Unearned revenue	$ 25,318	$ 25,158
Reportable Segments \| Productivity and Business Processes
Deferred Revenue Arrangement [Line Items]
Unearned revenue	11,643	11,412
Reportable Segments \| Intelligent Cloud
Deferred Revenue Arrangement [Line Items]
Unearned revenue	10,346	9,812
Reportable Segments \| More Personal Computing
Deferred Revenue Arrangement [Line Items]
Unearned revenue	3,246	3,579
Corporate and Other
Deferred Revenue Arrangement [Line Items]
Unearned revenue	$ 83	$ 355

Other Long-Term Liabilities (Detail) (USD $) In Millions, unless otherwise specified	Jun. 30, 2015	Jun. 30, 2014
Other Liabilities [Line Items]
Tax contingencies and other tax liabilities	$ 12,290	$ 10,510
Other	1,254	1,084
Total	$ 13,544	$ 11,594

Commitments And Guarantees - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Buildings
Guarantor Obligations [Line Items]
Rental expense for facilities operating leases	$ 989	$ 874	$ 711
Building, Building Improvements and Leasehold Improvements
Guarantor Obligations [Line Items]
Committed for construction of new buildings, building improvements and leasehold improvements	$ 681

Future Minimum Rental Commitments Under Non-cancellable Operating Leases (Detail) (Buildings, USD $) In Millions, unless otherwise specified	Jun. 30, 2015
Buildings
Operating Leased Assets [Line Items]
Year Ending June 30, 2016	$ 863
Year Ending June 30, 2017	803
Year Ending June 30, 2018	735
Year Ending June 30, 2019	611
Year Ending June 30, 2020	524
Thereafter	1,617
Total	$ 5,153

Contingencies - Additional Information (Detail) (USD $)			12 Months Ended
Contingencies - Additional Information (Detail) (USD $)	Jun. 30, 2015 Antitrust, Unfair Competition, And Overcharge Class Actions United States	Jun. 30, 2015 Contingencies Disclosed in Contingencies Note	Dec. 31, 2013 Patent And Intellectual Property Claims US State District Court Microsoft, Plaintiff
Loss Contingencies [Line Items]
Damages awarded value			$ 14,500,000
Accrual for loss contingency, ending balance	200,000,000
Accrual for disclosed loss contingencies, current, ending balance		614,000,000
Accrual for disclosed loss contingencies, noncurrent, ending balance		20,000,000
Amount not accrued for estimated maximum losses for disclosed loss contingencies		$ 1,600,000,000

Shares of Common Stock Outstanding (Detail) In Millions, unless otherwise specified	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Capital Unit [Line Items]
Balance, beginning of year	8,239	8,328	8,381
Issued	83	86	105
Repurchased	(295)	(175)	(158)
Balance, end of year	8,027	8,239	8,328

Stockholders' Equity - Additional Information (Detail) (USD $)	Jun. 30, 2015	Sep. 16, 2013
Share Repurchases [Line Items]
Amount available for repurchase under the current share repurchase program approved by the company's Board of Directors		$ 40,000,000,000
Unused amount of share repurchase program	$ 21,900,000,000

Share Repurchases (Detail) (USD $)
In Millions, unless otherwise specified

3 Months Ended

12 Months Ended

Jun. 30, 2015

Mar. 31, 2015

Dec. 31, 2014

Sep. 30, 2014

Jun. 30, 2014

Mar. 31, 2014

Dec. 31, 2013

Sep. 30, 2013

Jun. 30, 2013

Mar. 31, 2013

Dec. 31, 2012

Sep. 30, 2012

Jun. 30, 2015

Jun. 30, 2014

Jun. 30, 2013

Share Repurchases [Line Items]

295

175

158

Share Repurchase Program

Share Repurchases [Line Items]

Shares of common stock repurchased

116

^[1]

295

175

^[1]

158

Value of common stock repurchased

$ 4,209

$ 5,000

$ 2,000

$ 1,118

^[1]

$ 1,791

^[1]

$ 2,000

^[1]

$ 1,500

^[1]

$ 1,000

$ 1,607

$ 1,000

$ 13,209

$ 6,409

^[1]

$ 4,607

[1]

Share Repurchases (Parenthetical) (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Share Repurchases [Line Items]
Shares of common stock repurchased	295	175	158
Share Repurchase Program 2013
Share Repurchases [Line Items]
Shares of common stock repurchased		128
Value of common stock repurchased		$ 4,900
Share Repurchase Program 2008
Share Repurchases [Line Items]
Shares of common stock repurchased		47
Value of common stock repurchased		$ 1,500

Dividends Declared (Detail) (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended								12 Months Ended
	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Dividends [Line Items]
Declaration Date	Jun. 09, 2015	Mar. 10, 2015	Dec. 03, 2014	Sep. 16, 2014	Jun. 10, 2014	Mar. 11, 2014	Nov. 19, 2013	Sep. 16, 2013
Dividend Per Share	$ 0.31	$ 0.31	$ 0.31	$ 0.31	$ 0.28	$ 0.28	$ 0.28	$ 0.28	$ 1.24	$ 1.12	$ 0.92
Record Date	Aug. 20, 2015	May 21, 2015	Feb. 19, 2015	Nov. 20, 2014	Aug. 21, 2014	May 15, 2014	Feb. 20, 2014	Nov. 21, 2013
Total Amount	$ 2,488	$ 2,496	$ 2,532	$ 2,547	$ 2,307	$ 2,309	$ 2,322	$ 2,332
Payment Date	Sep. 10, 2015	Jun. 11, 2015	Mar. 12, 2015	Dec. 11, 2014	Sep. 11, 2014	Jun. 12, 2014	Mar. 13, 2014	Dec. 12, 2013

Summary of Changes in Accumulated Other Comprehensive Income by Component (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive income (loss), beginning of period	$ 3,708	$ 1,743
Translation adjustments and other, net of tax effects of $16, $12 and $(8)	(1,383)	263	(16)
Net current period other comprehensive income (loss)	559	(35)	(26)
Net current period other comprehensive income (loss)	(362)	1,737	363
Accumulated other comprehensive income (loss), end of period	2,522	3,708	1,743
Derivatives
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive income (loss), beginning of period	31	66	92
Unrealized gains, net of tax effects of $35, $2 and $54	1,152	63	101
Tax expense included in provision for income taxes	15	6	68
Amounts reclassified from accumulated other comprehensive income	(593)	(98)	(127)
Net current period other comprehensive income (loss)	559	(35)	(26)
Accumulated other comprehensive income (loss), end of period	590	31	66
Derivatives \| Revenue
Accumulated Other Comprehensive Income (Loss) [Line Items]
Reclassification adjustments for gains included in revenue	(608)	(104)	(195)
Investments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive income (loss), beginning of period	3,531	1,794	1,431
Unrealized gains, net of tax effects of $59, $1,067 and $244	110	2,053	453
Tax expense included in provision for income taxes	256	131	49
Amounts reclassified from accumulated other comprehensive income	(472)	(316)	(90)
Net current period other comprehensive income (loss)	(362)	1,737	363
Accumulated other comprehensive income (loss), end of period	3,169	3,531	1,794
Investments \| Other income (expense), net
Accumulated Other Comprehensive Income (Loss) [Line Items]
Reclassification adjustments for gains included in other income (expense), net	(728)	(447)	(139)
Translation Adjustments and Other
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive income (loss), beginning of period	146	(117)	(101)
Translation adjustments and other, net of tax effects of $16, $12 and $(8)	(1,383)	263	(16)
Accumulated other comprehensive income (loss), end of period	$ (1,237)	$ 146	$ (117)

Summary of Changes in Accumulated Other Comprehensive Income by Component (Parenthetical) (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Accumulated Other Comprehensive Income (Loss) [Line Items]
Translation adjustments and other, tax effects	$ 16	$ 12	$ (8)
Derivatives
Accumulated Other Comprehensive Income (Loss) [Line Items]
Unrealized gains, tax effects	35	2	54
Investments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Unrealized gains, tax effects	59	1,067	244
Translation Adjustments and Other
Accumulated Other Comprehensive Income (Loss) [Line Items]
Translation adjustments and other, tax effects	$ 16	$ 12	$ (8)

Employee Stock and Savings Plans - Additional Information (Detail) (USD $) Share data in Millions, unless otherwise specified	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Compensation Related Costs Disclosure [Line Items]
Shares authorized for future grant	294
Percentage of market value at which employees are able to purchase shares of common stock	90.00%
Shares reserved for future issuance through the employee stock purchase plan	157
Percentage of salary participating U.S. employees may contribute to the savings plan	75.00%	75.00%	75.00%
Matching contributions for all employee savings plans	$ 454,000,000	$ 420,000,000	$ 393,000,000
First 6% of Participant Contributions
Compensation Related Costs Disclosure [Line Items]
Company contribution amount for each dollar a participant contributes to the savings plan	50.00%	50.00%	50.00%
Upper Limit
Compensation Related Costs Disclosure [Line Items]
Percentage of employee's earnings the company may contribute to the savings plan	3.00%	3.00%	3.00%
Upper Limit \| IRS Compensation Limit
Compensation Related Costs Disclosure [Line Items]
Percentage of employee's earnings the company may contribute to the savings plan	3.00%	3.00%	3.00%
Executive Incentive Plan
Compensation Related Costs Disclosure [Line Items]
Award vest period	4 years
Stock Awards
Compensation Related Costs Disclosure [Line Items]
Unrecognized compensation costs	4,700,000,000
Unrecognized compensation costs are expected to be recognized over a weighted average period (years)	3 years
Total vest-date fair value of awards vested	$ 4,200,000,000	$ 3,200,000,000	$ 2,800,000,000
Stock Awards \| Lower Limit
Compensation Related Costs Disclosure [Line Items]
Award vest period	4 years
Stock Awards \| Upper Limit
Compensation Related Costs Disclosure [Line Items]
Award vest period	5 years
Employee Stock
Compensation Related Costs Disclosure [Line Items]
Percentage of market value at which employees are able to purchase shares of common stock	90.00%	90.00%	90.00%
Maximum percentage of gross compensation at which employees may purchase shares	15.00%	15.00%	15.00%

Stock-Based Compensation Expense and Related Income Tax Benefits (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	$ 2,574	$ 2,446	$ 2,406
Income tax benefits related to stock-based compensation	$ 868	$ 830	$ 842

Assumptions Used in Estimating Fair Value of Award Grants (Detail) (USD $)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Share based Compensation Arrangement by Share based Payment Award, Fair Value Assumptions, Method Used [Line Items]
Interest rates range minimum	1.20%	1.30%	0.60%
Interest rates range maximum	1.90%	1.80%	1.10%
Lower Limit
Share based Compensation Arrangement by Share based Payment Award, Fair Value Assumptions, Method Used [Line Items]
Dividends per share (quarterly amounts)	$ 0.28	$ 0.23	$ 0.20
Upper Limit
Share based Compensation Arrangement by Share based Payment Award, Fair Value Assumptions, Method Used [Line Items]
Dividends per share (quarterly amounts)	$ 0.31	$ 0.28	$ 0.23

Stock Plan Activity (Detail) (Stock Awards, USD $)
In Millions, except Per Share data, unless otherwise specified

12 Months Ended

Jun. 30, 2015

Jun. 30, 2014

Jun. 30, 2013

Stock Awards

Shares

Nonvested balance, beginning of year

259

Granted

103

^[1]

104

^[1]

Vested

(94)

Forfeited

(24)

Nonvested balance, end of year

216

259

Weighted Average Grant-Date Fair Value

Nonvested balance, beginning of year

$ 27.88

Granted

$ 42.36

$ 31.50

$ 28.37

Vested

$ 27.47

Forfeited

$ 31.81

Nonvested balance, end of year

$ 32.72

$ 27.88

[1]	Awards granted during fiscal year 2014 included four million shares in stock replacement awards related to the acquisition of NDS. The weighted average grant-date fair value was $37.64.

Stock Plan Activity (Parenthetical) (Detail) (Stock Replacement Awards, Nokia Devices And Services Business, USD $) In Millions, except Per Share data, unless otherwise specified	12 Months Ended
	Jun. 30, 2014
Stock Replacement Awards \| Nokia Devices And Services Business
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards granted	4
Weighted average grant-date fair value	$ 37.64

Employee Purchased Shares (Detail) (USD $) In Millions, except Per Share data, unless otherwise specified	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Employee Stock Purchase Plan [Line Items]
Shares purchased	16	18	20
Average price per share	$ 39.87	$ 33.60	$ 26.81

Segment Revenue (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended								12 Months Ended
	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Segment Reporting Information [Line Items]
Revenue	$ 22,180	$ 21,729	$ 26,470	$ 23,201	$ 23,382	$ 20,403	$ 24,519	$ 18,529	$ 93,580	$ 86,833	$ 77,849
Reportable Segments \| Productivity and Business Processes
Segment Reporting Information [Line Items]
Revenue									26,431	26,972	25,776
Reportable Segments \| Intelligent Cloud
Segment Reporting Information [Line Items]
Revenue									23,715	21,732	19,747
Reportable Segments \| More Personal Computing
Segment Reporting Information [Line Items]
Revenue									42,953	38,407	31,951
Corporate and Other
Segment Reporting Information [Line Items]
Revenue									$ 481	$ (278)	$ 375

Operating Income (Loss) by Segment (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended								12 Months Ended
	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Segment Reporting Information [Line Items]
Operating income (loss)	$ (2,053)	$ 6,594	$ 7,776	$ 5,844	$ 6,482	$ 6,974	$ 7,969	$ 6,334	$ 18,161	$ 27,759	$ 26,764
Reportable Segments \| Productivity and Business Processes
Segment Reporting Information [Line Items]
Operating income (loss)									13,087	13,940	13,151
Reportable Segments \| Intelligent Cloud
Segment Reporting Information [Line Items]
Operating income (loss)									9,871	8,443	7,300
Reportable Segments \| More Personal Computing
Segment Reporting Information [Line Items]
Operating income (loss)									5,179	6,150	6,144
Corporate and Other
Segment Reporting Information [Line Items]
Operating income (loss)									$ (9,976)	$ (774)	$ 169

Corporate and Other Activity (Detail) (USD $)
In Millions, unless otherwise specified

3 Months Ended

12 Months Ended

Jun. 30, 2015

Mar. 31, 2015

Dec. 31, 2014

Sep. 30, 2014

Jun. 30, 2014

Mar. 31, 2014

Dec. 31, 2013

Sep. 30, 2013

Jun. 30, 2015

Jun. 30, 2014

Jun. 30, 2013

Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]

Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]

$ (2,053)

$ 6,594

$ 7,776

$ 5,844

$ 6,482

$ 6,974

$ 7,969

$ 6,334

$ 18,161

$ 27,759

$ 26,764

Corporate and Other

Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]

(9,976)

(774)

169

Corporate and Other | Impairment, integration, and restructuring expenses

Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]

(10,011)

(127)

Revenue reconciling amounts

Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]

204

^[1]

(415)

^[1]

366

^[1]

Other

Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]

$ (169)

$ (232)

$ (197)

[1]

Revenue reconciling amounts for fiscal year 2015 included a net $303 million of previously deferred net revenue related to sales of bundled products and services ("Bundled Offerings"). Revenue reconciling amounts for fiscal year 2014 included a net $349 million of revenue deferrals related to Bundled Offerings. Revenue reconciling amounts for fiscal year 2013 included the recognition of $540 million of revenue previously deferred on sales of Windows 7 with an option to upgrade to Windows 8 Pro at a discounted price.

Corporate and Other Activity (Parenthetical) (Detail) (USD $)
In Millions, unless otherwise specified

3 Months Ended

12 Months Ended

Jun. 30, 2015

Mar. 31, 2015

Dec. 31, 2014

Sep. 30, 2014

Jun. 30, 2014

Mar. 31, 2014

Dec. 31, 2013

Sep. 30, 2013

Jun. 30, 2015

Jun. 30, 2014

Jun. 30, 2013

Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]

$ (2,053)

$ 6,594

$ 7,776

$ 5,844

$ 6,482

$ 6,974

$ 7,969

$ 6,334

$ 18,161

$ 27,759

$ 26,764

Revenue reconciling amounts

Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]

204

^[1]

(415)

^[1]

366

^[1]

Bundled Offerings | Revenue reconciling amounts

Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]

303

349

Windows Upgrade Offer | Revenue reconciling amounts

Quarterly Financial Information [Line Items]

$ 540

[1]

Segment Information and Geographic Data - Additional Information (Detail)	12 Months Ended
	Jun. 30, 2015
Segment Reporting Information [Line Items]
Sales to an individual customer	No sales to an individual customer or country other than the United States accounted for more than 10% of fiscal year 2015, 2014, or 2013 revenue.

Revenue Classified by Major Geographic Areas (Detail) (USD $)
In Millions, unless otherwise specified

3 Months Ended

12 Months Ended

Jun. 30, 2015

Mar. 31, 2015

Dec. 31, 2014

Sep. 30, 2014

Jun. 30, 2014

Mar. 31, 2014

Dec. 31, 2013

Sep. 30, 2013

Jun. 30, 2015

Jun. 30, 2014

Jun. 30, 2013

Geographic Information [Line Items]

Revenues

$ 22,180

$ 21,729

$ 26,470

$ 23,201

$ 23,382

$ 20,403

$ 24,519

$ 18,529

$ 93,580

$ 86,833

$ 77,849

United States

Geographic Information [Line Items]

Revenues

42,941

^[1]

43,474

^[1]

41,344

^[1]

Other Countries

Geographic Information [Line Items]

Revenues

$ 50,639

$ 43,359

$ 36,505

[1]	Includes billings to OEMs and certain multinational organizations because of the nature of these businesses and the impracticability of determining the geographic source of the revenue.

Revenue Classified by Significant Product and Service Offerings (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended								12 Months Ended
	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Revenue from External Customer [Line Items]
Revenue	$ 22,180	$ 21,729	$ 26,470	$ 23,201	$ 23,382	$ 20,403	$ 24,519	$ 18,529	$ 93,580	$ 86,833	$ 77,849
Microsoft Office system
Revenue from External Customer [Line Items]
Revenue									23,538	24,323	22,995
Server products and tools
Revenue from External Customer [Line Items]
Revenue									18,612	17,055	15,408
Windows PC operating system
Revenue from External Customer [Line Items]
Revenue									14,826	16,856	17,529
Xbox
Revenue from External Customer [Line Items]
Revenue									9,121	8,643	7,100
Phone
Revenue from External Customer [Line Items]
Revenue									7,702	3,073	615
Consulting and product support services
Revenue from External Customer [Line Items]
Revenue									5,090	4,767	4,372
Advertising
Revenue from External Customer [Line Items]
Revenue									4,557	4,016	3,387
Surface
Revenue from External Customer [Line Items]
Revenue									3,900	1,883	853
Other products and services
Revenue from External Customer [Line Items]
Revenue									$ 6,234	$ 6,217	$ 5,590

Revenue Classified by Significant Product and Service Offerings (Parenthetical) (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended								12 Months Ended
	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Revenue from External Customer [Line Items]
Revenue	$ 22,180	$ 21,729	$ 26,470	$ 23,201	$ 23,382	$ 20,403	$ 24,519	$ 18,529	$ 93,580	$ 86,833	$ 77,849
Commercial Cloud
Revenue from External Customer [Line Items]
Revenue									$ 5,800	$ 2,800	$ 1,300

Long-Lived Assets, Excluding Financial Instruments and Tax Assets, Classified by Location of Controlling Statutory Company (Detail) (USD $) In Millions, unless otherwise specified	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Certain Long-Lived Assets by Geography [Line Items]
Long-lived assets	$ 36,505	$ 40,119	$ 27,729
United States
Certain Long-Lived Assets by Geography [Line Items]
Long-lived assets	19,562	17,653	16,615
Luxembourg
Certain Long-Lived Assets by Geography [Line Items]
Long-lived assets	6,879	6,913	6,943
Finland
Certain Long-Lived Assets by Geography [Line Items]
Long-lived assets	1,757	9,840	12
Other Countries
Certain Long-Lived Assets by Geography [Line Items]
Long-lived assets	$ 8,307	$ 5,713	$ 4,159

Quarterly Information (Unaudited) (Detail) (USD $)
In Millions, except Per Share data, unless otherwise specified

3 Months Ended

12 Months Ended

Jun. 30, 2015

Mar. 31, 2015

Dec. 31, 2014

Sep. 30, 2014

Jun. 30, 2014

Mar. 31, 2014

Dec. 31, 2013

Sep. 30, 2013

Jun. 30, 2015

Jun. 30, 2014

Jun. 30, 2013

Revenue

$ 22,180

$ 21,729

$ 26,470

$ 23,201

$ 23,382

$ 20,403

$ 24,519

$ 18,529

$ 93,580

$ 86,833

$ 77,849

Gross margin

14,712

14,568

16,334

14,928

15,749

14,425

16,197

13,384

60,542

59,755

57,464

Operating income

(2,053)

6,594

7,776

5,844

6,482

6,974

7,969

6,334

18,161

27,759

26,764

Basic earnings (loss) per share

$ (3,195)

^[1]

$ 4,985

$ 5,863

$ 4,540

$ 4,612

^[2]

$ 5,660

$ 6,558

$ 5,244

$ 12,193

^[3]

$ 22,074

^[2]

$ 21,863

$ (0.40)

$ 0.61

$ 0.71

$ 0.55

$ 0.56

$ 0.68

$ 0.79

$ 0.63

$ 1.49

$ 2.66

$ 2.61

Diluted earnings (loss) per share

$ (0.40)

^[1]

$ 0.61

$ 0.71

$ 0.54

$ 0.55

^[2]

$ 0.68

$ 0.78

$ 0.62

$ 1.48

^[3]

$ 2.63

^[2]

$ 2.58

[1]	Includes $7.5 billion of goodwill and asset impairment charges related to our phone business, as well as $940 million of integration and restructuring expenses, primarily costs associated with our Phone Hardware Restructuring Plan, which decreased fourth quarter fiscal year 2015 net income by $8.4 billion and diluted EPS by $1.02.
[2]	Includes a tax provision adjustment recorded in the fourth quarter of fiscal year 2014 related to adjustments to prior years' liabilities for intercompany transfer pricing which decreased net income by $458 million and diluted EPS by $0.05.
[3]	Includes $7.5 billion of goodwill and asset impairment charges related to our phone business, as well as $2.5 billion of integration and restructuring expenses, primarily costs associated with our restructuring plans, which decreased fiscal year 2015 net income by $10.0 billion and diluted EPS by $1.15.

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References+ Details

+ References+ Details