Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Mar. 31, 2016	Apr. 15, 2016
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q3
Trading Symbol	MSFT
Entity Registrant Name	MICROSOFT CORPORATION
Entity Central Index Key	0000789019
Current Fiscal Year End Date	--06-30
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		7,860,466,856

INCOME STATEMENTS - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Revenue	$ 20,531	$ 21,729	$ 64,706	$ 71,400
Cost of revenue	7,722	7,161	24,801	25,570
Gross margin	12,809	14,568	39,905	45,830
Research and development	2,980	2,984	8,842	8,952
Sales and marketing	3,406	3,709	10,699	11,752
General and administrative	1,140	1,091	3,262	3,339
Impairment, integration, and restructuring	0	190	0	1,573
Operating income	5,283	6,594	17,102	20,214
Other income (expense), net	(247)	(77)	(698)	49
Income before income taxes	5,036	6,517	16,404	20,263
Provision for income taxes	1,280	1,532	2,728	4,875
Net income	$ 3,756	$ 4,985	$ 13,676	$ 15,388
Earnings per share:
Basic	$ 0.48	$ 0.61	$ 1.72	$ 1.87
Diluted	$ 0.47	$ 0.61	$ 1.70	$ 1.86
Weighted average shares outstanding:
Basic	7,895	8,167	7,952	8,215
Diluted	7,985	8,237	8,041	8,293
Cash dividends declared per common share	$ 0.36	$ 0.31	$ 1.08	$ 0.93

COMPREHENSIVE INCOME STATEMENTS - USD ($) $ in Millions	3 Months Ended		9 Months Ended
COMPREHENSIVE INCOME STATEMENTS - USD ($) $ in Millions	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Net income	$ 3,756	$ 4,985	$ 13,676	$ 15,388
Other comprehensive income (loss):
Net unrealized gains (losses) on derivatives (net of tax effects of $(30), $21, $(2), and $31)	(285)	401	(277)	967
Net unrealized gains (losses) on investments (net of tax effects of $186, $68, $(36), and $(158))	345	125	(66)	(295)
Translation adjustments and other (net of tax effects of $3, $(174), $(18), and $(432))	7	(438)	(339)	(909)
Other comprehensive income (loss)	67	88	(682)	(237)
Comprehensive income	$ 3,823	$ 5,073	$ 12,994	$ 15,151

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	3 Months Ended		9 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Net unrealized gains (losses) on derivatives, tax effects	$ (30)	$ 21	$ (2)	$ 31
Net unrealized gains (losses) on investments, tax effects	186	68	(36)	(158)
Translation adjustments and other, tax effects	$ 3	$ (174)	$ (18)	$ (432)

BALANCE SHEETS - USD ($) $ in Millions	Mar. 31, 2016	Jun. 30, 2015
Current assets:
Cash and cash equivalents	$ 7,170	$ 5,595
Short-term investments (including securities loaned of $241 and $75)	98,382	90,931
Total cash, cash equivalents, and short-term investments	105,552	96,526
Accounts receivable, net of allowance for doubtful accounts of $361 and $335	12,247	17,908
Inventories	2,450	2,902
Deferred income taxes	1,574	1,915
Other	6,598	5,461
Total current assets	128,421	124,712
Property and equipment, net of accumulated depreciation of $18,885 and $17,606	16,831	14,731
Equity and other investments	11,315	12,053
Goodwill	17,948	16,939
Intangible assets, net	4,459	4,835
Other long-term assets	2,895	2,953
Total assets	181,869	176,223
Current liabilities:
Accounts payable	6,759	6,591
Short-term debt	5,498	4,985
Current portion of long-term debt	0	2,499
Accrued compensation	4,276	5,096
Income taxes	685	606
Short-term unearned revenue	20,876	23,223
Securities lending payable	373	92
Other	5,887	6,766
Total current liabilities	44,354	49,858
Long-term debt	40,896	27,808
Long-term unearned revenue	5,017	2,095
Deferred income taxes	2,674	2,835
Other long-term liabilities	14,122	13,544
Total liabilities	$ 107,063	$ 96,140
Commitments and contingencies
Stockholders' equity:
Common stock and paid-in capital-shares authorized 24,000; outstanding 7,870 and 8,027	$ 68,012	$ 68,465
Retained earnings	4,954	9,096
Accumulated other comprehensive income	1,840	2,522
Total stockholders' equity	74,806	80,083
Total liabilities and stockholders' equity	$ 181,869	$ 176,223

BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions	Mar. 31, 2016	Jun. 30, 2015
Short-term investments, securities loaned	$ 241	$ 75
Accounts receivable, allowance for doubtful accounts	361	335
Property and equipment, accumulated depreciation	$ 18,885	$ 17,606
Common stock, shares authorized	24,000,000,000	24,000,000,000
Common stock, outstanding	7,870,000,000	8,027,000,000

CASH FLOWS STATEMENTS - USD ($) $ in Millions	3 Months Ended		9 Months Ended
CASH FLOWS STATEMENTS - USD ($) $ in Millions	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Operations
Net income	$ 3,756	$ 4,985	$ 13,676	$ 15,388
Adjustments to reconcile net income to net cash from operations:
Depreciation, amortization, and other	1,707	1,515	4,712	4,464
Stock-based compensation expense	672	641	2,004	1,920
Net recognized losses (gains) on investments and derivatives	65	(55)	216	(179)
Deferred income taxes	351	253	177	868
Deferral of unearned revenue	13,073	10,163	36,066	28,385
Recognition of unearned revenue	(12,210)	(11,209)	(35,494)	(33,347)
Changes in operating assets and liabilities:
Accounts receivable	2,288	3,655	5,546	6,904
Inventories	241	(430)	408	157
Other current assets	(420)	(111)	(1,914)	(550)
Other long-term assets	7	(108)	58	341
Accounts payable	(129)	(390)	105	(912)
Other current liabilities	626	200	(1,293)	(1,952)
Other long-term liabilities	340	492	594	1,332
Net cash from operations	10,367	9,601	24,861	22,819
Financing
Proceeds from issuance (repayments) of short-term debt, maturities of 90 days or less, net	2,622	(6,575)	481	1,222
Proceeds from issuance of debt	25	10,680	13,274	10,680
Repayments of debt	(900)	0	(2,771)	(1,500)
Common stock issued	159	146	495	483
Common stock repurchased	(3,857)	(5,131)	(12,292)	(10,164)
Common stock cash dividends paid	(2,842)	(2,532)	(8,185)	(7,386)
Other	(123)	316	(366)	601
Net cash used in financing	(4,916)	(3,096)	(9,364)	(6,064)
Investing
Additions to property and equipment	(2,308)	(1,391)	(5,688)	(4,163)
Acquisition of companies, net of cash acquired, and purchases of intangible and other assets	(559)	(162)	(1,330)	(3,097)
Purchases of investments	(27,341)	(30,218)	(99,661)	(73,470)
Maturities of investments	5,192	5,561	16,229	9,643
Sales of investments	19,599	21,063	76,292	53,616
Securities lending payable	(66)	(334)	281	(463)
Net cash used in investing	(5,483)	(5,481)	(13,877)	(17,934)
Effect of foreign exchange rates on cash and cash equivalents	17	(36)	(45)	(76)
Net change in cash and cash equivalents	(15)	988	1,575	(1,255)
Cash and cash equivalents, beginning of period	7,185	6,426	5,595	8,669
Cash and cash equivalents, end of period	$ 7,170	$ 7,414	$ 7,170	$ 7,414

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, 2014		$ 68,366	$ 17,710	$ 3,708
Common stock issued		483
Net income	$ 15,388		15,388
Other comprehensive income (loss)	(237)			(237)
Common stock cash dividends			(7,592)
Common stock repurchased		(2,853)	(7,320)
Stock-based compensation expense		1,920
Stock-based compensation income tax benefits		555
Other, net		4
Balance, end of period at Mar. 31, 2015	90,132	68,475	18,186	3,471
Balance, beginning of period at Dec. 31, 2014		68,765	19,731	3,383
Common stock issued		146
Net income	4,985		4,985
Other comprehensive income (loss)	88			88
Common stock cash dividends	(2,515)		(2,499)
Common stock repurchased		(1,109)	(4,031)
Stock-based compensation expense		641
Stock-based compensation income tax benefits		30
Other, net		2
Balance, end of period at Mar. 31, 2015	90,132	68,475	18,186	3,471
Balance, beginning of period at Jun. 30, 2015	80,083	68,465	9,096	2,522
Common stock issued		495
Net income	13,676		13,676
Other comprehensive income (loss)	(682)			(682)
Common stock cash dividends			(8,530)
Common stock repurchased		(3,010)	(9,288)
Stock-based compensation expense		2,004
Stock-based compensation income tax benefits		0
Other, net		58
Balance, end of period at Mar. 31, 2016	74,806	68,012	4,954	1,840
Balance, beginning of period at Dec. 31, 2015		67,977	7,030	1,773
Common stock issued		159
Net income	3,756		3,756
Other comprehensive income (loss)	67			67
Common stock cash dividends	(2,833)		(2,822)
Common stock repurchased		(853)	(3,010)
Stock-based compensation expense		672
Stock-based compensation income tax benefits		0
Other, net		57
Balance, end of period at Mar. 31, 2016	$ 74,806	$ 68,012	$ 4,954	$ 1,840

ACCOUNTING POLICIES

9 Months Ended

Mar. 31, 2016

ACCOUNTING POLICIES

NOTE 1 — ACCOUNTING POLICIES

Accounting Principles

We prepare our unaudited interim consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). In the opinion of management, the unaudited interim consolidated financial statements reflect all adjustments of a normal recurring nature that are necessary for a fair presentation of the results for the interim periods presented. Interim results are not necessarily indicative of results for a full year. The information included in this Form 10-Q should be read in conjunction with information included in the Microsoft Corporation 2015 Form 10-K and Form 8-K filed with the U.S. Securities and Exchange Commission on July 31, 2015 and October 27, 2015, respectively.

We have recast certain prior period amounts to conform to the current period presentation, with no impact on consolidated net income or cash flows.

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, who is also our Chief Executive Officer, 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 18 – Segment Information. We have recast certain prior period amounts to conform to the way we internally manage and monitor segment performance during fiscal year 2016. This change primarily impacted Note 9 – Goodwill, Note 14 – Unearned Revenue, and Note 18 – Segment Information, with no impact on consolidated net income or cash flows.

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.

Revenue Recognition for Windows 10 Licenses

Customers purchasing a Windows 10 license will receive unspecified updates and upgrades over the life of their Windows 10 device at no additional cost. As these updates and upgrades will not be sold on a stand-alone basis, we are unable to establish vendor-specific objective evidence of fair value. Accordingly, revenue from licenses of Windows 10 is recognized ratably over the estimated life of the related device, which ranges between two to four years.

Recent Accounting Guidance

Recently adopted accounting guidance

In March 2016, the Financial Accounting Standards Board (“FASB”) issued a new standard that changes the accounting for certain aspects of share-based payments to employees. The new guidance requires excess tax benefits and tax deficiencies to be recorded in the income statement when the awards vest or are settled. In addition, cash flows related to excess tax benefits will no longer be separately classified as a financing activity apart from other income tax cash flows. The standard also allows us to repurchase more of an employee’s shares for tax withholding purposes without triggering liability accounting, clarifies that all cash payments made on an employee’s behalf for withheld shares should be presented as a financing activity on our cash flows statement, and provides an accounting policy election to account for forfeitures as they occur. The new standard is effective for us beginning July 1, 2017, with early adoption permitted.

We elected to early adopt the new guidance in the third quarter of fiscal year 2016 which requires us to reflect any adjustments as of July 1, 2015, the beginning of the annual period that includes the interim period of adoption. The primary impact of adoption was the recognition of excess tax benefits in our provision for income taxes rather than paid-in capital for all periods in fiscal year 2016. Additional amendments to the accounting for income taxes and minimum statutory withholding tax requirements had no impact to retained earnings as of July 1, 2015, where the cumulative effect of these changes are required to be recorded. We have elected to continue to estimate forfeitures expected to occur to determine the amount of compensation cost to be recognized in each period.

We elected to apply the presentation requirements for cash flows related to excess tax benefits retrospectively to all periods presented which resulted in an increase to both net cash from operations and net cash used in financing of $31 million and $555 million for the three months and nine months ended March 31, 2015, respectively. The presentation requirements for cash flows related to employee taxes paid for withheld shares had no impact to any of the periods presented in our consolidated cash flows statements since such cash flows have historically been presented as a financing activity.

Adoption of the new standard resulted in the recognition of excess tax benefits in our provision for income taxes rather than paid-in capital of $74 million and $376 million for the three and nine months ended March 31, 2016, respectively, and impacted our previously reported quarterly results for fiscal year 2016 as follows:


(In millions, except earnings per share)	Three Months Ended September 30, 2015						Three Months Ended December 31, 2015


	As reported			As adjusted			As reported			As adjusted

Income statements:

Provision for income taxes	$	893		$	611		$	857		$	837
Net income	$	4,620		$	4,902		$	4,998		$	5,018
Basic earnings per share	$	0.58		$	0.61		$	0.63		$	0.63
Diluted earnings per share	$	0.57		$	0.61		$	0.62		$	0.62
Diluted weighted average shares outstanding		8,066			8,084			8,028			8,051

Cash flows statements:

Net cash from operations	$	8,594		$	8,876		$	5,598		$	5,618
Net cash used in financing	$	(3,648	)	$	(3,930	)	$	(498	)	$	(518	)


(In millions)	September 30, 2015				December 31, 2015


	As reported		As adjusted		As reported		As adjusted

Balance sheets:

Common stock and paid-in capital	$	68,093	$	67,811	$	68,279	$	67,977
Retained earnings	$	7,614	$	7,896	$	6,728	$	7,030

Recent accounting guidance not yet adopted

In May 2014, the 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.

In January 2016, the FASB issued a new standard to amend certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. Most prominent among the amendments is the requirement for changes in the fair value of our equity investments, with certain exceptions, to be recognized through net income rather than other comprehensive income (“OCI”). The new standard will be effective for us beginning July 1, 2018. The application of the amendments will result in a cumulative-effect adjustment to our consolidated balance sheet as of the effective date. We are currently evaluating the impact of this standard on our consolidated financial statements.

In February 2016, the FASB issued a new standard related to leases to increase transparency and comparability among organizations by requiring the recognition of lease assets and lease liabilities on the balance sheet. Most prominent among the amendments is the recognition of assets and liabilities by lessees for those leases classified as operating leases under previous U.S. GAAP. Under the new standard, disclosures are required to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. The new standard will be effective for us beginning July 1, 2019, with early adoption permitted. We anticipate this standard will have a material impact on our consolidated balance sheets, and we are currently evaluating its impact.

EARNINGS PER SHARE

9 Months Ended

Mar. 31, 2016

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 are as follows:


(In millions, except earnings per share)	Three Months Ended March 31,				Nine Months Ended March 31,


	2016		2015		2016		2015

Net income available for common shareholders (A)	$	3,756	$	4,985	$	13,676	$	15,388


Weighted average outstanding shares of common stock (B)		7,895		8,167		7,952		8,215
Dilutive effect of stock-based awards		90		70		89		78

Common stock and common stock equivalents (C)		7,985		8,237		8,041		8,293


Earnings Per Share

Basic (A/B)	$	0.48	$	0.61	$	1.72	$	1.87
Diluted (A/C)	$	0.47	$	0.61	$	1.70	$	1.86

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

OTHER INCOME (EXPENSE), NET

9 Months Ended

Mar. 31, 2016

OTHER INCOME (EXPENSE), NET

NOTE 3 — OTHER INCOME (EXPENSE), NET

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


(In millions)	Three Months Ended March 31,						Nine Months Ended March 31,


	2016			2015			2016			2015

Dividends and interest income	$	230		$	160		$	629		$	568
Interest expense		(340	)		(211	)		(898	)		(534	)
Net recognized gains on investments		85			169			193			565
Net losses on derivatives		(155	)		(114	)		(414	)		(386	)
Net gains (losses) on foreign currency remeasurements		(18	)		(54	)		(52	)		107
Other		(49	)		(27	)		(156	)		(271	)

Total	$	(247	)	$	(77	)	$	(698	)	$	49

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


(In millions)	Three Months Ended March 31,						Nine Months Ended March 31,


	2016			2015			2016			2015

Other-than-temporary impairments of investments	$	(86	)	$	(95	)	$	(248	)	$	(130	)
Realized gains from sales of available-for-sale securities		282			358			740			897
Realized losses from sales of available-for-sale securities		(111	)		(94	)		(299	)		(202	)

Total	$	85		$	169		$	193		$	565

INVESTMENTS

9 Months Ended

Mar. 31, 2016

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


March 31, 2016

Cash	$	3,691	$	0	$	0		$	3,691	$	3,691	$	0		$	0
Mutual funds		1,111		0		0			1,111		1,111		0			0
Commercial paper		824		0		0			824		824		0			0
Certificates of deposit		1,324		0		0			1,324		1,178		146			0
U.S. government and agency securities		81,676		98		(23	)		81,751		138		81,613			0
Foreign government bonds		5,221		6		(28	)		5,199		228		4,971			0
Mortgage- and asset-backed securities		4,695		19		(4	)		4,710		0		4,710			0
Corporate notes and bonds		6,582		95		(64	)		6,613		0		6,613			0
Municipal securities		285		47		0			332		0		332			0
Common and preferred stock		6,075		4,912		(254	)		10,733		0		0			10,733
Other investments		554		0		0			554		0		(3	)		557

Total	$	112,038	$	5,177	$	(373	)	$	116,842	$	7,170	$	98,382		$	11,290


(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

As of March 31, 2016 and June 30, 2015, the recorded bases of common and preferred stock that are restricted for more than one year or are not publicly traded were $770 million and $561 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 consolidated balance sheets. 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 March 31, 2016, the collateral received under these agreements totaled $373 million which is primarily comprised of U.S. government and agency securities.

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


March 31, 2016

U.S. government and agency securities	$	29,389	$	(12	)	$	529	$	(11	)	$	29,918	$	(23	)
Foreign government bonds		4,231		(2	)		58		(26	)		4,289		(28	)
Mortgage- and asset-backed securities		2,403		(4	)		136		0			2,539		(4	)
Corporate notes and bonds		2,753		(34	)		467		(30	)		3,220		(64	)
Common and preferred stock		991		(179	)		394		(75	)		1,385		(254	)

Total	$	39,767	$	(231	)	$	1,584	$	(142	)	$	41,351	$	(373	)


	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	)

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.

Debt Investment Maturities


(In millions)	Cost Basis		Estimated Fair Value


March 31, 2016

Due in one year or less	$	43,753	$	43,745
Due after one year through five years		53,372		53,453
Due after five years through 10 years		2,266		2,275
Due after 10 years		1,216		1,280

Total	$	100,607	$	100,753

DERIVATIVES

9 Months Ended

Mar. 31, 2016

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 March 31, 2016 and June 30, 2015, the total notional amounts of these foreign exchange contracts sold were $9.8 billion for both periods.

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 March 31, 2016 and June 30, 2015, the total notional amounts of these foreign exchange contracts sold were $5.0 billion and $5.3 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 March 31, 2016, the total notional amounts of these foreign exchange contracts purchased and sold were $8.6 billion and $6.0 billion, respectively. 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.

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 March 31, 2016, the total notional amounts of equity contracts purchased and sold for managing market price risk were $1.4 billion and $2.1 billion, respectively, of which $697 million and $948 million, respectively, were designated as hedging instruments. 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.

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 March 31, 2016, the total notional amounts of fixed-interest rate contracts purchased and sold were $356 million and $2.5 billion, respectively. 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.

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 March 31, 2016 and June 30, 2015, the total notional derivative amounts of mortgage contracts purchased were $534 million and $812 million, 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 March 31, 2016, the total notional amounts of credit contracts purchased and sold were $468 million and $281 million, respectively. As of June 30, 2015, the total notional amounts of credit contracts purchased and sold were $618 million and $430 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 March 31, 2016, the total notional amounts of commodity contracts purchased and sold were $613 million and $163 million, respectively. As of June 30, 2015, the total notional amounts of commodity contracts purchased and sold were $882 million and $316 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 March 31, 2016, 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

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.

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:


	March 31, 2016												June 30, 2015

	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	$	22		$	248		$	0		$	(177	)	$	17		$	167		$	0		$	(79	)
Equity contracts		28			0			0			(27	)		148			0			0			(18	)
Interest rate contracts		7			0			0			(19	)		7			0			0			(12	)
Credit contracts		6			0			0			(6	)		16			0			0			(9	)
Commodity contracts		2			0			0			(2	)		0			0			0			0

Total	$	65		$	248		$	0		$	(231	)	$	188		$	167		$	0		$	(118	)


Designated Hedge Derivatives

Foreign exchange contracts	$	8		$	358		$	0		$	(112	)	$	56		$	552		$	0		$	(31	)
Equity contracts		0			0			21			(32	)		0			0			25			(69	)

Total	$	8		$	358		$	21		$	(144	)	$	56		$	552		$	25		$	(100	)

Total gross amounts of derivatives	$	73		$	606		$	21		$	(375	)	$	244		$	719		$	25		$	(218	)

Gross derivatives either offset or subject to an enforceable master netting agreement	$	71		$	606		$	21		$	(375	)	$	126		$	719		$	25		$	(218	)
Gross amounts of derivatives offset in the balance sheet		(98	)		(120	)		(25	)		240			(66	)		(71	)		(25	)		161

Net amounts presented in the balance sheet		(27	)		486			(4	)		(135	)		60			648			0			(57	)
Gross amounts of derivatives not offset in the balance sheet		0			0			0			0			0			0			0			0
Cash collateral received		0			0			0			(261	)		0			0			0			(456	)

Net amount	$	(27	)	$	486		$	(4	)	$	(396	)	$	60		$	648		$	0		$	(513	)

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)	Three Months Ended March 31,						Nine Months Ended March 31,


	2016			2015			2016			2015

Foreign Exchange Contracts

Derivatives	$	(331	)	$	31		$	(364	)	$	653
Hedged items		340			(23	)		390			(647	)

Total amount of ineffectiveness	$	9		$	8		$	26		$	6


Equity Contracts

Derivatives	$	15		$	(25	)	$	(77	)	$	(88	)
Hedged items		(15	)		25			77			88

Total amount of ineffectiveness	$	0		$	0		$	0		$	0


Amount of equity contracts excluded from effectiveness assessment	$	(12	)	$	5		$	(8	)	$	(8	)

Cash Flow Hedge Gains (Losses)

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


(In millions)	Three Months Ended March 31,						Nine Months Ended March 31,


	2016			2015			2016			2015

Effective Portion

Gains (losses) recognized in OCI (net of tax effects of $(19), $25, $24, and $37)	$	(125	)	$	559		$	158		$	1,251
Gains reclassified from AOCI into revenue		171			162			461			290

Amount Excluded from Effectiveness Assessment and Ineffective Portion

Losses recognized in other income (expense), net		(86	)		(120	)		(240	)		(262	)

We estimate that $290 million of net derivative gains included in AOCI at March 31, 2016 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 the three and nine months ended March 31, 2016.

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)	Three Months Ended March 31,						Nine Months Ended March 31,


	2016			2015			2016			2015

Foreign exchange contracts	$	188		$	(442	)	$	113		$	(647	)
Equity contracts		(19	)		(4	)		(15	)		(18	)
Interest-rate contracts		(4	)		3			4			21
Credit contracts		1			2			(2	)		(2	)
Commodity contracts		(9	)		(47	)		(145	)		(264	)

Total	$	157		$	(488	)	$	(45	)	$	(910	)

- Definition

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.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 2: http://www.xbrl.org/2003/role/presentationRef
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+ Details

FAIR VALUE MEASUREMENTS

9 Months Ended

Mar. 31, 2016

FAIR VALUE MEASUREMENTS

NOTE 6 — 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 and intangible assets, when they are 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.

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.

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


March 31, 2016

Assets

Mutual funds	$	1,111	$	0	$	0	$	1,111	$	0		$	1,111
Commercial paper		0		824		0		824		0			824
Certificates of deposit		0		1,324		0		1,324		0			1,324
U.S. government and agency securities		78,052		3,684		0		81,736		0			81,736
Foreign government bonds		10		5,306		0		5,316		0			5,316
Mortgage- and asset-backed securities		0		4,708		0		4,708		0			4,708
Corporate notes and bonds		0		6,520		1		6,521		0			6,521
Municipal securities		0		332		0		332		0			332
Common and preferred stock		7,833		2,114		18		9,965		0			9,965
Derivatives		1		699		0		700		(243	)		457

Total	$	87,007	$	25,511	$	19	$	112,537	$	(243	)	$	112,294


Liabilities

Derivatives and other	$	15	$	360	$	0	$	375	$	(240	)	$	135



(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

(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 our balance sheet presentation of these same assets in Note 4 – Investments.


(In millions)


March 31, 2016				June 30, 2015

Net fair value of assets measured at fair value on a recurring basis	$	112,294		$	104,369
Cash		3,691			3,679
Common and preferred stock measured at fair value on a nonrecurring basis		770			561
Other investments measured at fair value on a nonrecurring basis		557			589
Less derivative net assets classified as other current assets		(486	)		(648	)
Other		16			4

Recorded basis of investment components	$	116,842		$	108,554

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

During the three and nine months ended March 31, 2016 and 2015, we did not record any material other-than-temporary impairments on financial assets required to be measured at fair value on a nonrecurring basis.

- Definition

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

9 Months Ended

Mar. 31, 2016

INVENTORIES

NOTE 7 — INVENTORIES

The components of inventories were as follows:


(In millions)


March 31, 2016			June 30, 2015

Raw materials	$	636	$	1,100
Work in process		122		202
Finished goods		1,692		1,600

Total	$	2,450	$	2,902

BUSINESS COMBINATIONS

9 Months Ended

Mar. 31, 2016

BUSINESS COMBINATIONS

NOTE 8 — 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. The significant classes of assets and liabilities to which we 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.

Other

During the nine months ended March 31, 2016, we completed 14 acquisitions for total cash consideration of $1.3 billion. These entities have been included in our consolidated results of operations since their respective acquisition dates.

Pro forma results of operations 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

9 Months Ended

Mar. 31, 2016

GOODWILL

NOTE 9 — GOODWILL

Changes in the carrying amount of goodwill were as follows:

(In millions)

June 30,

2015

Acquisitions

Other

March 31,
2016

Productivity and Business Processes

6,309

444

(61

)

6,692

Intelligent Cloud

4,917

537

5,469

More Personal Computing

5,713

(17

)

5,787

Total goodwill

16,939

1,072

(63

)

17,948

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.

As discussed in Note 18 – Segment Information, 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.

INTANGIBLE ASSETS

9 Months Ended

Mar. 31, 2016

INTANGIBLE ASSETS

NOTE 10 — 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


	March 31, 2016								June 30, 2015

Technology-based ^(a)	$	6,169		$	(3,532	)	$	2,637	$	5,926		$	(3,149	)	$	2,777
Marketing-related		1,936			(631	)		1,305		1,942			(508	)		1,434
Contract-based		1,177			(757	)		420		1,192			(710	)		482
Customer-related		469			(372	)		97		492			(350	)		142

Total	$	9,751		$	(5,292	)	$	4,459	$	9,552		$	(4,717	)	$	4,835

(a)	Technology-based intangible assets included $128 million and $116 million as of March 31, 2016 and June 30, 2015, respectively, of net carrying amount of software to be sold, leased, or otherwise marketed.

Intangible assets amortization expense was $249 million and $740 million for the three and nine months ended March 31, 2016, respectively, and $361 million and $1.1 billion for the three and nine months ended March 31, 2015, respectively. Amortization of capitalized software was $18 million and $55 million for the three and nine months ended March 31, 2016, respectively, and $13 million and $68 million for the three and nine months ended March 31, 2015, respectively.

In the third quarter of fiscal year 2016, we corrected our intangible assets in the table above for a $585 million misstatement between gross carrying amount and accumulated amortization as of June 30, 2015. We do not consider this correction to be material, and there was no impact to our consolidated financial statements.

The following table outlines the estimated future amortization expense related to intangible assets held as of March 31, 2016:


(In millions)


Year Ending June 30,

2016 (excluding the nine months ended March 31, 2016)	$	247
2017		861
2018		753
2019		602
2020		522
Thereafter		1,474

Total	$	4,459

DEBT

9 Months Ended

Mar. 31, 2016

DEBT

NOTE 11 — DEBT

Short-term Debt

As of March 31, 2016, we had $5.5 billion of commercial paper issued and outstanding, with a weighted-average interest rate of 0.36% and maturities ranging from 26 days to 91 days. 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. The estimated fair value of this commercial paper approximates its carrying value.

We currently have two $5.0 billion credit facilities that expire on November 1, 2016 and November 14, 2018, respectively. These credit facilities serve as a back-up for our commercial paper program. As of March 31, 2016, 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 March 31, 2016, the total carrying value and estimated fair value of our long-term debt were $40.9 billion and $43.5 billion, respectively. This is compared to a carrying value and estimated fair value of our long-term debt, including the current portion, of $30.3 billion and $30.5 billion, respectively, as of June 30, 2015. 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 March 31, 2016 and June 30, 2015:

Due Date

Face Value

March 31,

2016

Face Value

June 30,

2015

Stated

Interest

Rate

Effective

Interest

Rate

(In millions)

Notes

September 25, 2015

1,750

1.625%

1.795%

February 8, 2016

750

2.500%

2.642%

November 15, 2017

600

600

0.875%

1.084%

May 1, 2018

450

450

1.000%

1.106%

November 3, 2018 ^(a)

1,750

1.300%

1.396%

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

1,500

1,500

1.850%

1.935%

October 1, 2020

1,000

1,000

3.000%

3.137%

November 3, 2020 ^(a)

2,250

2.000%

2.093%

February 8, 2021

500

500

4.000%

4.082%

December 6, 2021 ^(b)

1,994

1,950

2.125%

2.233%

February 12, 2022

1,500

1,500

2.375%

2.466%

November 3, 2022 ^(a)

1,000

2.650%

2.717%

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

2,250

2,250

2.700%

2.772%

November 3, 2025 ^(a)

3,000

3.125%

3.176%

December 6, 2028 ^(b)

1,994

1,950

3.125%

3.218%

May 2, 2033 ^(b)

627

613

2.625%

2.690%

February 12, 2035

1,500

1,500

3.500%

3.604%

November 3, 2035 ^(a)

1,000

4.200%

4.260%

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

1,750

1,750

3.750%

3.800%

November 3, 2045 ^(a)

3,000

4.450%

4.492%

February 12, 2055

2,250

2,250

4.000%

4.063%

November 3, 2055 ^(a)

1,000

4.750%

4.782%

Total

41,065

30,463

(a)	In November 2015, we issued $13.0 billion of debt securities.

(b)	Euro-denominated debt securities.

*	Not applicable

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. As of March 31, 2016 and June 30, 2015, the aggregate unamortized discount for our long-term debt, including the current portion, was $169 million and $156 million, respectively.

INCOME TAXES

9 Months Ended

Mar. 31, 2016

INCOME TAXES

NOTE 12 — INCOME TAXES

Our effective tax rate for the three months ended March 31, 2016 and 2015 was 25% and 24%, respectively, and 17% and 24% for the nine months ended March 31, 2016 and 2015, respectively. Our effective tax rate was lower than the U.S. federal statutory rate primarily due to earnings taxed at lower rates in foreign jurisdictions resulting from producing and distributing our products and services through our foreign regional operations centers in Ireland, Singapore, and Puerto Rico.

The change in the current quarter and year-to-date effective tax rate compared to prior year was primarily due to changes in the mix of our income before income taxes between the U.S. and foreign countries, offset by a benefit from the adoption of the new accounting guidance relating to stock-based compensation. The prior year-to-date effective tax rate also included an expense relating to Internal Revenue Service (“IRS”) audit adjustments and adjustments to prior years’ liabilities for intercompany transfer pricing that increased taxable income in more highly-taxed jurisdictions.

Tax contingencies and other income tax liabilities were $12.7 billion and $12.1 billion as of March 31, 2016 and June 30, 2015, respectively, and are included in other long-term liabilities. This increase relates primarily to current period quarterly growth relating to intercompany transfer pricing adjustments, offset by a partial settlement of the IRS audit for tax years 2007 to 2009 in the first quarter of fiscal year 2016. While we settled a portion of the IRS audit for tax years 2004 to 2006 during the third quarter of fiscal year 2011, and settled a portion of the IRS audit for tax years 2007 to 2009 during the first quarter of fiscal year 2016, we remain under audit for those years. In February 2012, the IRS withdrew its 2011 Revenue Agents Report for tax years 2004 to 2006 and reopened the audit phase of the examination. As of March 31, 2016, 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 IRS for tax years 2010 to 2016.

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 2016, 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.

RESTRUCTURING CHARGES

9 Months Ended

Mar. 31, 2016

RESTRUCTURING CHARGES

NOTE 13 — RESTRUCTURING CHARGES

Phone Hardware Integration

In July 2014, we announced a restructuring plan to simplify our organization and align the purchase of Nokia Corporation’s (“Nokia”) Devices and Services business (“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 $98 million and $1.3 billion during the three and nine months ended March 31, 2015, respectively, including severance expenses and other reorganization costs, primarily associated with our facilities consolidation. Total restructuring charges incurred under the Phone Hardware Integration Plan were $1.3 billion, all of which were recognized in fiscal year 2015.

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. The actions associated with the Phone Hardware Restructuring Plan are expected to be completed as of June 30, 2016.

To date, we have incurred restructuring charges of $780 million under the Phone Hardware Restructuring Plan, including severance expenses and other reorganization costs.

Restructuring charges associated with these plans 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 18 – Segment Information.

Changes in the restructuring liability were as follows:



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


Restructuring liability as of June 30, 2015	$	588		$	249		$	837
Restructuring charges		0			0			0
Cash paid		(400	)		(92	)		(492	)
Other		(23	)		0			(23	)

Restructuring liability as of March 31, 2016	$	165		$	157		$	322

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

UNEARNED REVENUE

9 Months Ended

Mar. 31, 2016

UNEARNED REVENUE

NOTE 14 — UNEARNED REVENUE

Unearned revenue by segment was as follows:


(In millions)


	March 31, 2016		June 30, 2015

Productivity and Business Processes	$	9,635	$	11,643
Intelligent Cloud		8,658		10,346
More Personal Computing		2,848		3,246
Corporate and Other		4,752		83

Total	$	25,893	$	25,318

Revenue from Windows 10 is primarily recognized upfront in the More Personal Computing segment, and the deferral and subsequent recognition of revenue is reflected in Corporate and Other in the table above. As of March 31, 2016, we deferred a net $4.6 billion in revenue related to Windows 10.

CONTINGENCIES

9 Months Ended

Mar. 31, 2016

CONTINGENCIES

NOTE 15 — CONTINGENCIES

Patent and Intellectual Property Claims

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 International Trade Commission (“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 sought 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. Each of the ITC matters has been resolved in our favor. In September 2015, in an inter partes review the United States Patent Trial and Appeal Board issued a final written decision that deemed unpatentable all asserted claims of the patent remaining at issue in the Delaware case. IDT has appealed this decision to the U.S. Court of Appeals for the Federal Circuit. The Delaware case has been stayed pending final completion of the inter partes review (including appeals and any subsequent proceedings in the Patent Office). We filed an antitrust complaint against IDT in the District of Delaware in August 2015 asserting violations of Section 2 of the Sherman Act, alleging the unlawful exploitation of standard essential patents. IDT filed a motion to dismiss, which remains pending.

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. In December 2015, the industry group BITKOM, of which we are a member, reached a settlement with the German collecting society for all claims from 2008 forward, leaving litigation only for the period 2004-2007 pending in Germany. In addition, the industry is engaged in settlement negotiations with the Austrian collecting society. We have also settled copyright levies litigation in Spain and France.

Other patent and intellectual property claims

In addition to these cases, there are approximately 55 other patent infringement cases pending against Microsoft.

Antitrust and Unfair Competition Claims

Three antitrust and unfair competition class action lawsuits were filed against us in British Columbia, Ontario, and Quebec, Canada on behalf of various classes of direct and indirect purchasers of our PC operating system and certain other software products between 1999 and 2005.

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 beginning in 2016. The other two cases are inactive.

China State Administration for Industry and Commerce investigation

In 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, file verification issues related to Windows and Office software, and potentially other issues.

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 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 2013, defendants in the consolidated cases moved to exclude plaintiffs’ expert evidence of general causation on the basis of flawed scientific methodologies. In 2014, the court granted in part defendants’ motion to exclude plaintiffs’ general causation experts. The plaintiffs filed an interlocutory appeal challenging the standard for evaluating expert scientific evidence, which the District of Columbia Court of Appeals agreed to hear en banc. 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 March 31, 2016, we accrued aggregate legal liabilities of $520 million in other current liabilities and $10 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

9 Months Ended

Mar. 31, 2016

STOCKHOLDERS' EQUITY

NOTE 16 — STOCKHOLDERS’ EQUITY

Share Repurchases

We repurchased the following shares of common stock through our share repurchase program during the periods presented:


(In millions)	Three Months Ended March 31,				Nine Months Ended March 31,


		2016		2015		2016		2015

Shares of common stock repurchased		69		116		224		202
Value of common stock repurchased	$	3,600	$	5,000	$	11,200	$	9,000

The above table excludes shares repurchased to settle statutory employee tax withholding related to the vesting of stock awards. 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. As of March 31, 2016, $10.7 billion remained of our $40.0 billion share repurchase program. All repurchases were made using cash resources.

Dividends

Our Board of Directors declared the following dividends:

Declaration Date

Dividend

Per Share

Record Date

Total Amount

Payment Date

(in millions)

Fiscal Year 2016

September 15, 2015

0.36

November 19, 2015

2,868

December 10, 2015

December 2, 2015

0.36

February 18, 2016

2,842

March 10, 2016

March 15, 2016

0.36

May 19, 2016

2,833

June 9, 2016

Declaration Date

Dividend

Per Share

Record Date

Total Amount

Payment Date

(in millions)

Fiscal Year 2015

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

2,515

June 11, 2015

The dividend declared on March 15, 2016 was included in other current liabilities as of March 31, 2016.

- Definition

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.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-Subparagraph (SX 210.4-08.(d),(e))
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+ Details

ACCUMULATED OTHER COMPREHENSIVE INCOME

9 Months Ended

Mar. 31, 2016

ACCUMULATED OTHER COMPREHENSIVE INCOME

NOTE 17 — ACCUMULATED OTHER COMPREHENSIVE INCOME

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


(In millions)	Three Months Ended March 31,						Nine Months Ended March 31,


	2016			2015			2016			2015

Derivatives

Accumulated other comprehensive income balance, beginning of period	$	598		$	597		$	590		$	31
Unrealized gains (losses), net of tax effects of $(19), $25, $24, and $37		(125	)		559			158			1,251

Reclassification adjustments for gains included in revenue		(171	)		(162	)		(461	)		(290	)
Tax expense included in provision for income taxes		11			4			26			6

Amounts reclassified from accumulated other comprehensive income		(160	)		(158	)		(435	)		(284	)

Net current period other comprehensive income (loss)		(285	)		401			(277	)		967

Accumulated other comprehensive income balance, end of period	$	313		$	998		$	313		$	998


Investments

Accumulated other comprehensive income balance, beginning of period	$	2,758		$	3,111		$	3,169		$	3,531
Unrealized gains, net of tax effects of $217, $133, $34, and $47		402			245			64			83

Reclassification adjustments for gains included in other income (expense), net		(88	)		(185	)		(200	)		(583	)
Tax expense included in provision for income taxes		31			65			70			205

Amounts reclassified from accumulated other comprehensive income		(57	)		(120	)		(130	)		(378	)

Net current period other comprehensive income (loss)		345			125			(66	)		(295	)

Accumulated other comprehensive income balance, end of period	$	3,103		$	3,236		$	3,103		$	3,236


Translation adjustments and other

Accumulated other comprehensive income (loss) balance, beginning of period	$	(1,583	)	$	(325	)	$	(1,237	)	$	146
Translation adjustments and other, net of tax effects of $3, $(174), $(18), and $(432)		7			(438	)		(339	)		(909	)

Accumulated other comprehensive loss balance, end of period	$	(1,576	)	$	(763	)	$	(1,576	)	$	(763	)

Accumulated other comprehensive income, end of period	$	1,840		$	3,471		$	1,840		$	3,471

- Definition

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.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=36458714&loc=d3e689-108580

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+ Details

SEGMENT INFORMATION

9 Months Ended

Mar. 31, 2016

SEGMENT INFORMATION

NOTE 18 — SEGMENT INFORMATION

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

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. 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 cloud 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 cloud 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 cloud services that can power modern business. This segment primarily comprises:

•

Server products and cloud 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 information technology professionals across screens of all sizes. This segment primarily comprises:

•

Windows, including Windows original equipment manufacturer licensing (“Windows OEM”) and other non-volume licensing of the Windows operating system, volume licensing of the Windows operating system, 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. 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)	Three Months Ended March 31,					Nine Months Ended March 31,


	2016			2015		2016			2015

Revenue

Productivity and Business Processes	$	6,522		$	6,457	$	19,518		$	19,769
Intelligent Cloud		6,096			5,903		18,331			17,419
More Personal Computing		9,458			9,369		31,563			33,917
Corporate and Other		(1,545	)		0		(4,706	)		295

Total revenue	$	20,531		$	21,729	$	64,706		$	71,400


(In millions)	Three Months Ended March 31,						Nine Months Ended March 31,


	2016			2015			2016			2015

Operating income (loss)

Productivity and Business Processes	$	2,994		$	3,204		$	9,461		$	10,192
Intelligent Cloud		2,188			2,533			7,168			7,238
More Personal Computing		1,645			1,049			5,178			4,063
Corporate and Other		(1,544	)		(192	)		(4,705	)		(1,279	)

Total operating income	$	5,283		$	6,594		$	17,102		$	20,214

Corporate and Other operating income (loss) includes adjustments to conform our internal accounting policies to U.S. GAAP, and impairment, integration, and restructuring expenses. Significant internal accounting policies that differ from U.S. GAAP relate to revenue recognition.

Corporate and Other operating income (loss) activity was as follows during the periods presented:


(In millions)	Three Months Ended March 31,						Nine Months Ended March 31,

	2016			2015			2016			2015

Revenue reconciling amounts and other ^(a)	$	(1,544	)	$	(2	)	$	(4,705	)	$	294
Impairment, integration, and restructuring expenses		0			(190	)		0			(1,573	)

Total Corporate and Other	$	(1,544	)	$	(192	)	$	(4,705	)	$	(1,279	)

(a)	Revenue reconciling amounts and other for the three months ended March 31, 2016 primarily consisted of a net $1.6 billion of revenue deferrals related to sales of Windows 10.

Revenue reconciling amounts and other for the nine months ended March 31, 2016 primarily consisted of a net $4.6 billion of revenue deferrals related to sales of Windows 10. Revenue reconciling amounts and other for the nine months ended March 31, 2015 included the net recognition of $296 million of previously deferred revenue related to bundled products and services.

Assets are not allocated to segments for internal reporting presentations. A portion of amortization and depreciation is included with various other costs in an overhead allocation to each segment, and 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.

- Definition

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.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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+ Details

ACCOUNTING POLICIES (Policies)

9 Months Ended

Mar. 31, 2016

Accounting Principles

Accounting Principles

We have recast certain prior period amounts to conform to the current period presentation, with no impact on consolidated net income or cash flows.

Principles of Consolidation

Principles of Consolidation

Recasting of Certain Prior Period Information

Recasting of Certain Prior Period Information

Estimates and Assumptions

Estimates and Assumptions

Revenue Recognition for Windows 10 Licenses

Revenue Recognition for Windows 10 Licenses

Recent Accounting Guidance

Recent Accounting Guidance

Recently adopted accounting guidance


(In millions, except earnings per share)	Three Months Ended September 30, 2015						Three Months Ended December 31, 2015


	As reported			As adjusted			As reported			As adjusted

Income statements:

Provision for income taxes	$	893		$	611		$	857		$	837
Net income	$	4,620		$	4,902		$	4,998		$	5,018
Basic earnings per share	$	0.58		$	0.61		$	0.63		$	0.63
Diluted earnings per share	$	0.57		$	0.61		$	0.62		$	0.62
Diluted weighted average shares outstanding		8,066			8,084			8,028			8,051

Cash flows statements:

Net cash from operations	$	8,594		$	8,876		$	5,598		$	5,618
Net cash used in financing	$	(3,648	)	$	(3,930	)	$	(498	)	$	(518	)


(In millions)	September 30, 2015				December 31, 2015


	As reported		As adjusted		As reported		As adjusted

Balance sheets:

Common stock and paid-in capital	$	68,093	$	67,811	$	68,279	$	67,977
Retained earnings	$	7,614	$	7,896	$	6,728	$	7,030

Recent accounting guidance not yet adopted

Earnings Per Share Policy

Derivative Instruments Policy

Fair Value Measurements Policy

•

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

Segment Reporting Policy

ACCOUNTING POLICIES (Tables)

9 Months Ended

Mar. 31, 2016

Adoption of New Standard Impact on Previously Reported Quarterly Results


(In millions, except earnings per share)	Three Months Ended September 30, 2015						Three Months Ended December 31, 2015


	As reported			As adjusted			As reported			As adjusted

Income statements:

Provision for income taxes	$	893		$	611		$	857		$	837
Net income	$	4,620		$	4,902		$	4,998		$	5,018
Basic earnings per share	$	0.58		$	0.61		$	0.63		$	0.63
Diluted earnings per share	$	0.57		$	0.61		$	0.62		$	0.62
Diluted weighted average shares outstanding		8,066			8,084			8,028			8,051

Cash flows statements:

Net cash from operations	$	8,594		$	8,876		$	5,598		$	5,618
Net cash used in financing	$	(3,648	)	$	(3,930	)	$	(498	)	$	(518	)


(In millions)	September 30, 2015				December 31, 2015


	As reported		As adjusted		As reported		As adjusted

Balance sheets:

Common stock and paid-in capital	$	68,093	$	67,811	$	68,279	$	67,977
Retained earnings	$	7,614	$	7,896	$	6,728	$	7,030

- Definition

Tabular disclosure of changes in accounting principles, including adoption of new accounting pronouncements, that describes the new methods, amount and effects on financial statement line items.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 10
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+ Details

EARNINGS PER SHARE (Tables)

9 Months Ended

Mar. 31, 2016

Basic and Diluted Earnings Per Share

The components of basic and diluted EPS are as follows:


(In millions, except earnings per share)	Three Months Ended March 31,				Nine Months Ended March 31,


	2016		2015		2016		2015

Net income available for common shareholders (A)	$	3,756	$	4,985	$	13,676	$	15,388


Weighted average outstanding shares of common stock (B)		7,895		8,167		7,952		8,215
Dilutive effect of stock-based awards		90		70		89		78

Common stock and common stock equivalents (C)		7,985		8,237		8,041		8,293


Earnings Per Share

Basic (A/B)	$	0.48	$	0.61	$	1.72	$	1.87
Diluted (A/C)	$	0.47	$	0.61	$	1.70	$	1.86

OTHER INCOME (EXPENSE), NET (Tables)

9 Months Ended

Mar. 31, 2016

Components of Other Income (Expense), Net

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


(In millions)	Three Months Ended March 31,						Nine Months Ended March 31,


	2016			2015			2016			2015

Dividends and interest income	$	230		$	160		$	629		$	568
Interest expense		(340	)		(211	)		(898	)		(534	)
Net recognized gains on investments		85			169			193			565
Net losses on derivatives		(155	)		(114	)		(414	)		(386	)
Net gains (losses) on foreign currency remeasurements		(18	)		(54	)		(52	)		107
Other		(49	)		(27	)		(156	)		(271	)

Total	$	(247	)	$	(77	)	$	(698	)	$	49

Net Recognized Gains (Losses) on Investments

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


(In millions)	Three Months Ended March 31,						Nine Months Ended March 31,


	2016			2015			2016			2015

Other-than-temporary impairments of investments	$	(86	)	$	(95	)	$	(248	)	$	(130	)
Realized gains from sales of available-for-sale securities		282			358			740			897
Realized losses from sales of available-for-sale securities		(111	)		(94	)		(299	)		(202	)

Total	$	85		$	169		$	193		$	565

INVESTMENTS (Tables)

9 Months Ended

Mar. 31, 2016

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


March 31, 2016

Cash	$	3,691	$	0	$	0		$	3,691	$	3,691	$	0		$	0
Mutual funds		1,111		0		0			1,111		1,111		0			0
Commercial paper		824		0		0			824		824		0			0
Certificates of deposit		1,324		0		0			1,324		1,178		146			0
U.S. government and agency securities		81,676		98		(23	)		81,751		138		81,613			0
Foreign government bonds		5,221		6		(28	)		5,199		228		4,971			0
Mortgage- and asset-backed securities		4,695		19		(4	)		4,710		0		4,710			0
Corporate notes and bonds		6,582		95		(64	)		6,613		0		6,613			0
Municipal securities		285		47		0			332		0		332			0
Common and preferred stock		6,075		4,912		(254	)		10,733		0		0			10,733
Other investments		554		0		0			554		0		(3	)		557

Total	$	112,038	$	5,177	$	(373	)	$	116,842	$	7,170	$	98,382		$	11,290


(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

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


March 31, 2016

U.S. government and agency securities	$	29,389	$	(12	)	$	529	$	(11	)	$	29,918	$	(23	)
Foreign government bonds		4,231		(2	)		58		(26	)		4,289		(28	)
Mortgage- and asset-backed securities		2,403		(4	)		136		0			2,539		(4	)
Corporate notes and bonds		2,753		(34	)		467		(30	)		3,220		(64	)
Common and preferred stock		991		(179	)		394		(75	)		1,385		(254	)

Total	$	39,767	$	(231	)	$	1,584	$	(142	)	$	41,351	$	(373	)


	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	)

Debt Investment Maturities

Debt Investment Maturities


(In millions)	Cost Basis		Estimated Fair Value


March 31, 2016

Due in one year or less	$	43,753	$	43,745
Due after one year through five years		53,372		53,453
Due after five years through 10 years		2,266		2,275
Due after 10 years		1,216		1,280

Total	$	100,607	$	100,753

DERIVATIVES (Tables)

9 Months Ended

Mar. 31, 2016

Fair Values of Derivative Instruments


	March 31, 2016												June 30, 2015

	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	$	22		$	248		$	0		$	(177	)	$	17		$	167		$	0		$	(79	)
Equity contracts		28			0			0			(27	)		148			0			0			(18	)
Interest rate contracts		7			0			0			(19	)		7			0			0			(12	)
Credit contracts		6			0			0			(6	)		16			0			0			(9	)
Commodity contracts		2			0			0			(2	)		0			0			0			0

Total	$	65		$	248		$	0		$	(231	)	$	188		$	167		$	0		$	(118	)


Designated Hedge Derivatives

Foreign exchange contracts	$	8		$	358		$	0		$	(112	)	$	56		$	552		$	0		$	(31	)
Equity contracts		0			0			21			(32	)		0			0			25			(69	)

Total	$	8		$	358		$	21		$	(144	)	$	56		$	552		$	25		$	(100	)

Total gross amounts of derivatives	$	73		$	606		$	21		$	(375	)	$	244		$	719		$	25		$	(218	)

Gross derivatives either offset or subject to an enforceable master netting agreement	$	71		$	606		$	21		$	(375	)	$	126		$	719		$	25		$	(218	)
Gross amounts of derivatives offset in the balance sheet		(98	)		(120	)		(25	)		240			(66	)		(71	)		(25	)		161

Net amounts presented in the balance sheet		(27	)		486			(4	)		(135	)		60			648			0			(57	)
Gross amounts of derivatives not offset in the balance sheet		0			0			0			0			0			0			0			0
Cash collateral received		0			0			0			(261	)		0			0			0			(456	)

Net amount	$	(27	)	$	486		$	(4	)	$	(396	)	$	60		$	648		$	0		$	(513	)

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)	Three Months Ended March 31,						Nine Months Ended March 31,


	2016			2015			2016			2015

Foreign Exchange Contracts

Derivatives	$	(331	)	$	31		$	(364	)	$	653
Hedged items		340			(23	)		390			(647	)

Total amount of ineffectiveness	$	9		$	8		$	26		$	6


Equity Contracts

Derivatives	$	15		$	(25	)	$	(77	)	$	(88	)
Hedged items		(15	)		25			77			88

Total amount of ineffectiveness	$	0		$	0		$	0		$	0


Amount of equity contracts excluded from effectiveness assessment	$	(12	)	$	5		$	(8	)	$	(8	)

Cash flow hedging

Gains (Losses) on Derivative Instruments

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


(In millions)	Three Months Ended March 31,						Nine Months Ended March 31,


	2016			2015			2016			2015

Effective Portion

Gains (losses) recognized in OCI (net of tax effects of $(19), $25, $24, and $37)	$	(125	)	$	559		$	158		$	1,251
Gains reclassified from AOCI into revenue		171			162			461			290

Amount Excluded from Effectiveness Assessment and Ineffective Portion

Losses recognized in other income (expense), net		(86	)		(120	)		(240	)		(262	)

Non-designated Hedge Derivatives

Gains (Losses) on Derivative Instruments


(In millions)	Three Months Ended March 31,						Nine Months Ended March 31,


	2016			2015			2016			2015

Foreign exchange contracts	$	188		$	(442	)	$	113		$	(647	)
Equity contracts		(19	)		(4	)		(15	)		(18	)
Interest-rate contracts		(4	)		3			4			21
Credit contracts		1			2			(2	)		(2	)
Commodity contracts		(9	)		(47	)		(145	)		(264	)

Total	$	157		$	(488	)	$	(45	)	$	(910	)

FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Mar. 31, 2016

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


March 31, 2016

Assets

Mutual funds	$	1,111	$	0	$	0	$	1,111	$	0		$	1,111
Commercial paper		0		824		0		824		0			824
Certificates of deposit		0		1,324		0		1,324		0			1,324
U.S. government and agency securities		78,052		3,684		0		81,736		0			81,736
Foreign government bonds		10		5,306		0		5,316		0			5,316
Mortgage- and asset-backed securities		0		4,708		0		4,708		0			4,708
Corporate notes and bonds		0		6,520		1		6,521		0			6,521
Municipal securities		0		332		0		332		0			332
Common and preferred stock		7,833		2,114		18		9,965		0			9,965
Derivatives		1		699		0		700		(243	)		457

Total	$	87,007	$	25,511	$	19	$	112,537	$	(243	)	$	112,294


Liabilities

Derivatives and other	$	15	$	360	$	0	$	375	$	(240	)	$	135



(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

(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 our balance sheet presentation of these same assets in Note 4 – Investments.


(In millions)


March 31, 2016				June 30, 2015

Net fair value of assets measured at fair value on a recurring basis	$	112,294		$	104,369
Cash		3,691			3,679
Common and preferred stock measured at fair value on a nonrecurring basis		770			561
Other investments measured at fair value on a nonrecurring basis		557			589
Less derivative net assets classified as other current assets		(486	)		(648	)
Other		16			4

Recorded basis of investment components	$	116,842		$	108,554

INVENTORIES (Tables)

9 Months Ended

Mar. 31, 2016

Components of Inventories

The components of inventories were as follows:


(In millions)


March 31, 2016			June 30, 2015

Raw materials	$	636	$	1,100
Work in process		122		202
Finished goods		1,692		1,600

Total	$	2,450	$	2,902

GOODWILL (Tables)

9 Months Ended

Mar. 31, 2016

Carrying Amount of Goodwill

Changes in the carrying amount of goodwill were as follows:

(In millions)

June 30,

2015

Acquisitions

Other

March 31,
2016

Productivity and Business Processes

6,309

444

(61

)

6,692

Intelligent Cloud

4,917

537

5,469

More Personal Computing

5,713

(17

)

5,787

Total goodwill

16,939

1,072

(63

)

17,948

INTANGIBLE ASSETS (Tables)

9 Months Ended

Mar. 31, 2016

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


	March 31, 2016								June 30, 2015

Technology-based ^(a)	$	6,169		$	(3,532	)	$	2,637	$	5,926		$	(3,149	)	$	2,777
Marketing-related		1,936			(631	)		1,305		1,942			(508	)		1,434
Contract-based		1,177			(757	)		420		1,192			(710	)		482
Customer-related		469			(372	)		97		492			(350	)		142

Total	$	9,751		$	(5,292	)	$	4,459	$	9,552		$	(4,717	)	$	4,835

(a)	Technology-based intangible assets included $128 million and $116 million as of March 31, 2016 and June 30, 2015, 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 as of March 31, 2016:


(In millions)


Year Ending June 30,

2016 (excluding the nine months ended March 31, 2016)	$	247
2017		861
2018		753
2019		602
2020		522
Thereafter		1,474

Total	$	4,459

DEBT (Tables)

9 Months Ended

Mar. 31, 2016

Long-term Debt

The components of our long-term debt, including the current portion, and the associated interest rates were as follows as of March 31, 2016 and June 30, 2015:

Due Date

Face Value

March 31,

2016

Face Value

June 30,

2015

Stated

Interest

Rate

Effective

Interest

Rate

(In millions)

Notes

September 25, 2015

1,750

1.625%

1.795%

February 8, 2016

750

2.500%

2.642%

November 15, 2017

600

600

0.875%

1.084%

May 1, 2018

450

450

1.000%

1.106%

November 3, 2018 ^(a)

1,750

1.300%

1.396%

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

1,500

1,500

1.850%

1.935%

October 1, 2020

1,000

1,000

3.000%

3.137%

November 3, 2020 ^(a)

2,250

2.000%

2.093%

February 8, 2021

500

500

4.000%

4.082%

December 6, 2021 ^(b)

1,994

1,950

2.125%

2.233%

February 12, 2022

1,500

1,500

2.375%

2.466%

November 3, 2022 ^(a)

1,000

2.650%

2.717%

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

2,250

2,250

2.700%

2.772%

November 3, 2025 ^(a)

3,000

3.125%

3.176%

December 6, 2028 ^(b)

1,994

1,950

3.125%

3.218%

May 2, 2033 ^(b)

627

613

2.625%

2.690%

February 12, 2035

1,500

1,500

3.500%

3.604%

November 3, 2035 ^(a)

1,000

4.200%

4.260%

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

1,750

1,750

3.750%

3.800%

November 3, 2045 ^(a)

3,000

4.450%

4.492%

February 12, 2055

2,250

2,250

4.000%

4.063%

November 3, 2055 ^(a)

1,000

4.750%

4.782%

Total

41,065

30,463

(a)	In November 2015, we issued $13.0 billion of debt securities.

(b)	Euro-denominated debt securities.

*	Not applicable

- Definition

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.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-Section S99
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-Publisher FASB
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=6479336&loc=d3e64711-112823

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
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-Name Accounting Standards Codification
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-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
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Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
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Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
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-URI http://asc.fasb.org/extlink&oid=6451184&loc=d3e28551-108399

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21521-112644

+ Details

RESTRUCTURING CHARGES (Tables)

9 Months Ended

Mar. 31, 2016

Changes in Restructuring Liability

Changes in the restructuring liability were as follows:



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


Restructuring liability as of June 30, 2015	$	588		$	249		$	837
Restructuring charges		0			0			0
Cash paid		(400	)		(92	)		(492	)
Other		(23	)		0			(23	)

Restructuring liability as of March 31, 2016	$	165		$	157		$	322

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

UNEARNED REVENUE (Tables)

9 Months Ended

Mar. 31, 2016

Unearned Revenue by Segment

Unearned revenue by segment was as follows:


(In millions)


	March 31, 2016		June 30, 2015

Productivity and Business Processes	$	9,635	$	11,643
Intelligent Cloud		8,658		10,346
More Personal Computing		2,848		3,246
Corporate and Other		4,752		83

Total	$	25,893	$	25,318

STOCKHOLDERS' EQUITY (Tables)

9 Months Ended

Mar. 31, 2016

Share Repurchases

We repurchased the following shares of common stock through our share repurchase program during the periods presented:


(In millions)	Three Months Ended March 31,				Nine Months Ended March 31,


		2016		2015		2016		2015

Shares of common stock repurchased		69		116		224		202
Value of common stock repurchased	$	3,600	$	5,000	$	11,200	$	9,000

Dividends Declared

Our Board of Directors declared the following dividends:

Declaration Date

Dividend

Per Share

Record Date

Total Amount

Payment Date

(in millions)

Fiscal Year 2016

September 15, 2015

0.36

November 19, 2015

2,868

December 10, 2015

December 2, 2015

0.36

February 18, 2016

2,842

March 10, 2016

March 15, 2016

0.36

May 19, 2016

2,833

June 9, 2016

Declaration Date

Dividend

Per Share

Record Date

Total Amount

Payment Date

(in millions)

Fiscal Year 2015

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

2,515

June 11, 2015

ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables)

9 Months Ended

Mar. 31, 2016

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)	Three Months Ended March 31,						Nine Months Ended March 31,


	2016			2015			2016			2015

Derivatives

Accumulated other comprehensive income balance, beginning of period	$	598		$	597		$	590		$	31
Unrealized gains (losses), net of tax effects of $(19), $25, $24, and $37		(125	)		559			158			1,251

Reclassification adjustments for gains included in revenue		(171	)		(162	)		(461	)		(290	)
Tax expense included in provision for income taxes		11			4			26			6

Amounts reclassified from accumulated other comprehensive income		(160	)		(158	)		(435	)		(284	)

Net current period other comprehensive income (loss)		(285	)		401			(277	)		967

Accumulated other comprehensive income balance, end of period	$	313		$	998		$	313		$	998


Investments

Accumulated other comprehensive income balance, beginning of period	$	2,758		$	3,111		$	3,169		$	3,531
Unrealized gains, net of tax effects of $217, $133, $34, and $47		402			245			64			83

Reclassification adjustments for gains included in other income (expense), net		(88	)		(185	)		(200	)		(583	)
Tax expense included in provision for income taxes		31			65			70			205

Amounts reclassified from accumulated other comprehensive income		(57	)		(120	)		(130	)		(378	)

Net current period other comprehensive income (loss)		345			125			(66	)		(295	)

Accumulated other comprehensive income balance, end of period	$	3,103		$	3,236		$	3,103		$	3,236


Translation adjustments and other

Accumulated other comprehensive income (loss) balance, beginning of period	$	(1,583	)	$	(325	)	$	(1,237	)	$	146
Translation adjustments and other, net of tax effects of $3, $(174), $(18), and $(432)		7			(438	)		(339	)		(909	)

Accumulated other comprehensive loss balance, end of period	$	(1,576	)	$	(763	)	$	(1,576	)	$	(763	)

Accumulated other comprehensive income, end of period	$	1,840		$	3,471		$	1,840		$	3,471

SEGMENT INFORMATION (Tables)

9 Months Ended

Mar. 31, 2016

Segment Revenue


(In millions)	Three Months Ended March 31,					Nine Months Ended March 31,


	2016			2015		2016			2015

Revenue

Productivity and Business Processes	$	6,522		$	6,457	$	19,518		$	19,769
Intelligent Cloud		6,096			5,903		18,331			17,419
More Personal Computing		9,458			9,369		31,563			33,917
Corporate and Other		(1,545	)		0		(4,706	)		295

Total revenue	$	20,531		$	21,729	$	64,706		$	71,400

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


(In millions)	Three Months Ended March 31,						Nine Months Ended March 31,


	2016			2015			2016			2015

Operating income (loss)

Productivity and Business Processes	$	2,994		$	3,204		$	9,461		$	10,192
Intelligent Cloud		2,188			2,533			7,168			7,238
More Personal Computing		1,645			1,049			5,178			4,063
Corporate and Other		(1,544	)		(192	)		(4,705	)		(1,279	)

Total operating income	$	5,283		$	6,594		$	17,102		$	20,214

Corporate and Other operating income (loss) activity was as follows during the periods presented:


(In millions)	Three Months Ended March 31,						Nine Months Ended March 31,

	2016			2015			2016			2015

Revenue reconciling amounts and other ^(a)	$	(1,544	)	$	(2	)	$	(4,705	)	$	294
Impairment, integration, and restructuring expenses		0			(190	)		0			(1,573	)

Total Corporate and Other	$	(1,544	)	$	(192	)	$	(4,705	)	$	(1,279	)

(a)	Revenue reconciling amounts and other for the three months ended March 31, 2016 primarily consisted of a net $1.6 billion of revenue deferrals related to sales of Windows 10.

Accounting Policies - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended				9 Months Ended
	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Significant Accounting Policies [Line Items]
Net cash from operations	$ 10,367	$ 5,618	$ 8,876	$ 9,601	$ 24,861	$ 22,819
Net cash used in financing	(4,916)	(518)	(3,930)	(3,096)	(9,364)	(6,064)
Provision (benefit) for income taxes	1,280	$ 837	$ 611	1,532	2,728	4,875
Adjustments for New Accounting Pronouncement
Significant Accounting Policies [Line Items]
Net cash from operations				31		555
Net cash used in financing				$ (31)		$ (555)
Provision (benefit) for income taxes	$ (74)				$ (376)
Windows 10 Licenses \| Lower Limit
Significant Accounting Policies [Line Items]
Revenue recognition period					2 years
Windows 10 Licenses \| Upper Limit
Significant Accounting Policies [Line Items]
Revenue recognition period					4 years

Adoption of New Standard Impact on Previously Reported Quarterly Results (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended				9 Months Ended
	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015	Jun. 30, 2015
Income statements:
Provision for income taxes	$ 1,280	$ 837	$ 611	$ 1,532	$ 2,728	$ 4,875
Net income	$ 3,756	$ 5,018	$ 4,902	$ 4,985	$ 13,676	$ 15,388
Basic earnings per share	$ 0.48	$ 0.63	$ 0.61	$ 0.61	$ 1.72	$ 1.87
Diluted earnings per share	$ 0.47	$ 0.62	$ 0.61	$ 0.61	$ 1.70	$ 1.86
Diluted weighted average shares outstanding	7,985	8,051	8,084	8,237	8,041	8,293
Cash flows statements:
Net cash from operations	$ 10,367	$ 5,618	$ 8,876	$ 9,601	$ 24,861	$ 22,819
Net cash used in financing	(4,916)	(518)	(3,930)	$ (3,096)	(9,364)	$ (6,064)
Balance sheets:
Common stock and paid-in capital	68,012	67,977	67,811		68,012		$ 68,465
Retained earnings	$ 4,954	7,030	7,896		$ 4,954		$ 9,096
As reported
Income statements:
Provision for income taxes		857	893
Net income		$ 4,998	$ 4,620
Basic earnings per share		$ 0.63	$ 0.58
Diluted earnings per share		$ 0.62	$ 0.57
Diluted weighted average shares outstanding		8,028	8,066
Cash flows statements:
Net cash from operations		$ 5,598	$ 8,594
Net cash used in financing		(498)	(3,648)
Balance sheets:
Common stock and paid-in capital		68,279	68,093
Retained earnings		$ 6,728	$ 7,614

Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended				9 Months Ended
	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items]
Net income available for common shareholders (A)	$ 3,756	$ 5,018	$ 4,902	$ 4,985	$ 13,676	$ 15,388
Weighted average outstanding shares of common stock (B)	7,895			8,167	7,952	8,215
Dilutive effect of stock-based awards	90			70	89	78
Common stock and common stock equivalents (C)	7,985	8,051	8,084	8,237	8,041	8,293
Earnings Per Share
Basic (A/B)	$ 0.48	$ 0.63	$ 0.61	$ 0.61	$ 1.72	$ 1.87
Diluted (A/C)	$ 0.47	$ 0.62	$ 0.61	$ 0.61	$ 1.70	$ 1.86

- Definition

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

+ References + Details

- Definition

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	3 Months Ended		9 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Components of Other Income (Expense) [Line Items]
Dividends and interest income	$ 230	$ 160	$ 629	$ 568
Interest expense	(340)	(211)	(898)	(534)
Net recognized gains on investments	85	169	193	565
Net losses on derivatives	(155)	(114)	(414)	(386)
Net gains (losses) on foreign currency remeasurements	(18)	(54)	(52)	107
Other	(49)	(27)	(156)	(271)
Total	$ (247)	$ (77)	$ (698)	$ 49

- Definition

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 (Losses) on Investments (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Gains (Losses) on Investments [Line Items]
Other-than-temporary impairments of investments	$ (86)	$ (95)	$ (248)	$ (130)
Realized gains from sales of available-for-sale securities	282	358	740	897
Realized losses from sales of available-for-sale securities	(111)	(94)	(299)	(202)
Total	$ 85	$ 169	$ 193	$ 565

- Definition

+ References + Details

Investment Components, Including Associated Derivatives but Excluding Held to Maturity Investments (Detail) - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Jun. 30, 2014
Cash, Cash Equivalents and Investments [Line Items]
Cost Basis	$ 112,038		$ 103,647
Unrealized Gains	5,177		5,220
Unrealized Losses	(373)		(313)
Recorded Basis	116,842		108,554
Cash and cash equivalents	7,170	$ 7,185	5,595	$ 7,414	$ 6,426	$ 8,669
Short-term Investments	98,382		90,931
Equity and Other Investments	11,290		12,028
Cash
Cash, Cash Equivalents and Investments [Line Items]
Cash	3,691		3,679
Unrealized Gains	0		0
Unrealized Losses	0		0
Cash	3,691		3,679
Cash and cash equivalents	3,691		3,679
Short-term Investments	0		0
Equity and Other Investments	0		0
Mutual funds
Cash, Cash Equivalents and Investments [Line Items]
Cost Basis	1,111		1,100
Unrealized Gains	0		0
Unrealized Losses	0		0
Recorded Basis	1,111		1,100
Cash and cash equivalents	1,111		1,100
Short-term Investments	0		0
Equity and Other Investments	0		0
Commercial paper
Cash, Cash Equivalents and Investments [Line Items]
Cost Basis	824		1
Unrealized Gains	0		0
Unrealized Losses	0		0
Recorded Basis	824		1
Cash and cash equivalents	824		1
Short-term Investments	0		0
Equity and Other Investments	0		0
Certificates of deposit
Cash, Cash Equivalents and Investments [Line Items]
Cost Basis	1,324		906
Unrealized Gains	0		0
Unrealized Losses	0		0
Recorded Basis	1,324		906
Cash and cash equivalents	1,178		776
Short-term Investments	146		130
Equity and Other Investments	0		0
U.S. government and agency securities
Cash, Cash Equivalents and Investments [Line Items]
Cost Basis	81,676		72,843
Unrealized Gains	98		76
Unrealized Losses	(23)		(30)
Recorded Basis	81,751		72,889
Cash and cash equivalents	138		39
Short-term Investments	81,613		72,850
Equity and Other Investments	0		0
Foreign government bonds
Cash, Cash Equivalents and Investments [Line Items]
Cost Basis	5,221		5,477
Unrealized Gains	6		3
Unrealized Losses	(28)		(24)
Recorded Basis	5,199		5,456
Cash and cash equivalents	228		0
Short-term Investments	4,971		5,456
Equity and Other Investments	0		0
Mortgage- and asset-backed securities
Cash, Cash Equivalents and Investments [Line Items]
Cost Basis	4,695		4,899
Unrealized Gains	19		23
Unrealized Losses	(4)		(6)
Recorded Basis	4,710		4,916
Cash and cash equivalents	0		0
Short-term Investments	4,710		4,916
Equity and Other Investments	0		0
Corporate notes and bonds
Cash, Cash Equivalents and Investments [Line Items]
Cost Basis	6,582		7,192
Unrealized Gains	95		97
Unrealized Losses	(64)		(37)
Recorded Basis	6,613		7,252
Cash and cash equivalents	0		0
Short-term Investments	6,613		7,252
Equity and Other Investments	0		0
Municipal securities
Cash, Cash Equivalents and Investments [Line Items]
Cost Basis	285		285
Unrealized Gains	47		35
Unrealized Losses	0		(1)
Recorded Basis	332		319
Cash and cash equivalents	0		0
Short-term Investments	332		319
Equity and Other Investments	0		0
Common and preferred stock
Cash, Cash Equivalents and Investments [Line Items]
Cost Basis	6,075		6,668
Unrealized Gains	4,912		4,986
Unrealized Losses	(254)		(215)
Recorded Basis	10,733		11,439
Cash and cash equivalents	0		0
Short-term Investments	0		0
Equity and Other Investments	10,733		11,439
Other investments
Cash, Cash Equivalents and Investments [Line Items]
Cost Basis	554		597
Unrealized Gains	0		0
Unrealized Losses	0		0
Recorded Basis	554		597
Cash and cash equivalents	0		0
Short-term Investments	(3)		8
Equity and Other Investments	$ 557		$ 589

Investments - Cost Method - Additional Information (Detail) - USD ($) $ in Millions	Mar. 31, 2016	Jun. 30, 2015
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	$ 770	$ 561

Investments - Secured Borrowings and Loaned Securities - Additional Information (Detail) $ in Millions	Mar. 31, 2016 USD ($)
Investment [Line Items]
Collateral received	$ 373

Unrealized Losses on Investments (Detail) - USD ($) $ in Millions	Mar. 31, 2016	Jun. 30, 2015
Unrealized Losses on Investments [Line Items]
Less than 12 Months - Fair Value	$ 39,767	$ 18,789
Less than 12 Months - Unrealized Losses	(231)	(236)
12 Months or Greater - Fair Value	1,584	719
12 Months or Greater - Unrealized Losses	(142)	(77)
Total Fair Value	41,351	19,508
Total Unrealized Losses	(373)	(313)
U.S. government and agency securities
Unrealized Losses on Investments [Line Items]
Less than 12 Months - Fair Value	29,389	6,636
Less than 12 Months - Unrealized Losses	(12)	(9)
12 Months or Greater - Fair Value	529	421
12 Months or Greater - Unrealized Losses	(11)	(21)
Total Fair Value	29,918	7,057
Total Unrealized Losses	(23)	(30)
Foreign government bonds
Unrealized Losses on Investments [Line Items]
Less than 12 Months - Fair Value	4,231	4,611
Less than 12 Months - Unrealized Losses	(2)	(12)
12 Months or Greater - Fair Value	58	18
12 Months or Greater - Unrealized Losses	(26)	(12)
Total Fair Value	4,289	4,629
Total Unrealized Losses	(28)	(24)
Mortgage- and asset-backed securities
Unrealized Losses on Investments [Line Items]
Less than 12 Months - Fair Value	2,403	3,171
Less than 12 Months - Unrealized Losses	(4)	(5)
12 Months or Greater - Fair Value	136	28
12 Months or Greater - Unrealized Losses	0	(1)
Total Fair Value	2,539	3,199
Total Unrealized Losses	(4)	(6)
Corporate notes and bonds
Unrealized Losses on Investments [Line Items]
Less than 12 Months - Fair Value	2,753	2,946
Less than 12 Months - Unrealized Losses	(34)	(29)
12 Months or Greater - Fair Value	467	104
12 Months or Greater - Unrealized Losses	(30)	(8)
Total Fair Value	3,220	3,050
Total Unrealized Losses	(64)	(37)
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	991	1,389
Less than 12 Months - Unrealized Losses	(179)	(180)
12 Months or Greater - Fair Value	394	148
12 Months or Greater - Unrealized Losses	(75)	(35)
Total Fair Value	1,385	1,537
Total Unrealized Losses	$ (254)	$ (215)

Debt Investment Maturities (Detail) $ in Millions	Mar. 31, 2016 USD ($)
Cost Basis
Due in one year or less	$ 43,753
Due after one year through five years	53,372
Due after five years through 10 years	2,266
Due after 10 years	1,216
Total	100,607
Estimated Fair Value
Due in one year or less	43,745
Due after one year through five years	53,453
Due after five years through 10 years	2,275
Due after 10 years	1,280
Total	$ 100,753

Derivatives - Additional Information (Detail) - USD ($)	9 Months Ended
Derivatives - Additional Information (Detail) - USD ($)	Mar. 31, 2016	Jun. 30, 2015
Derivative [Line Items]
Maximum length of time hedged in cash flow hedge	3 years
Minimum required liquidity under certain counterparty agreements	$ 1,000,000,000
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	$ 290,000,000
Senior Unsecured Obligations
Derivative [Line Items]
Debt instrument credit rating	AAA
Derivatives Sold \| Equity Contracts
Derivative [Line Items]
Notional amounts	$ 2,100,000,000	$ 2,600,000,000
Derivatives Sold \| Designated Hedge Derivatives \| Equity Contracts
Derivative [Line Items]
Notional amounts	948,000,000	1,400,000,000
Derivatives Sold \| Non-designated Hedge Derivatives \| Foreign Exchange Contracts
Derivative [Line Items]
Notional amounts	6,000,000,000	11,000,000,000
Derivatives Sold \| Non-designated Hedge Derivatives \| Interest Rate Contracts
Derivative [Line Items]
Notional amounts	2,500,000,000	3,200,000,000
Derivatives Sold \| Non-designated Hedge Derivatives \| Credit Contracts
Derivative [Line Items]
Notional amounts	281,000,000	430,000,000
Derivatives Sold \| Non-designated Hedge Derivatives \| Commodity Contracts
Derivative [Line Items]
Notional amounts	163,000,000	316,000,000
Derivatives Sold \| Cash flow hedging \| Foreign Exchange Contracts
Derivative [Line Items]
Notional amounts	9,800,000,000	9,800,000,000
Derivatives Sold \| Fair value hedging \| Foreign Exchange Contracts
Derivative [Line Items]
Notional amounts	5,000,000,000	5,300,000,000
Derivatives Purchased \| Equity Contracts
Derivative [Line Items]
Notional amounts	1,400,000,000	2,200,000,000
Derivatives Purchased \| Designated Hedge Derivatives \| Equity Contracts
Derivative [Line Items]
Notional amounts	697,000,000	1,100,000,000
Derivatives Purchased \| Non-designated Hedge Derivatives \| Foreign Exchange Contracts
Derivative [Line Items]
Notional amounts	8,600,000,000	9,700,000,000
Derivatives Purchased \| Non-designated Hedge Derivatives \| Interest Rate Contracts
Derivative [Line Items]
Notional amounts	356,000,000	1,000,000,000
Derivatives Purchased \| Non-designated Hedge Derivatives \| Mortgage-backed securities
Derivative [Line Items]
Notional amounts	534,000,000	812,000,000
Derivatives Purchased \| Non-designated Hedge Derivatives \| Credit Contracts
Derivative [Line Items]
Notional amounts	468,000,000	618,000,000
Derivatives Purchased \| Non-designated Hedge Derivatives \| Commodity Contracts
Derivative [Line Items]
Notional amounts	$ 613,000,000	$ 882,000,000

Fair Values of Derivative Instruments (Detail) - USD ($) $ in Millions	Mar. 31, 2016	Jun. 30, 2015
Short-term Investments
Derivatives, Fair Value [Line Items]
Derivative Assets	$ 73	$ 244
Net amount, assets	(27)	60
Short-term Investments \| Eligible for Offsetting
Derivatives, Fair Value [Line Items]
Derivative Assets	71	126
Gross amounts of derivatives offset in the balance sheet, assets	(98)	(66)
Net amounts presented in the balance sheet, assets	(27)	60
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	65	188
Short-term Investments \| Non-designated Hedge Derivatives \| Foreign Exchange Contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	22	17
Short-term Investments \| Non-designated Hedge Derivatives \| Equity Contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	28	148
Short-term Investments \| Non-designated Hedge Derivatives \| Interest Rate Contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	7	7
Short-term Investments \| Non-designated Hedge Derivatives \| Credit Contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	6	16
Short-term Investments \| Non-designated Hedge Derivatives \| Commodity Contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	2	0
Short-term Investments \| Designated Hedge Derivatives
Derivatives, Fair Value [Line Items]
Derivative Assets	8	56
Short-term Investments \| Designated Hedge Derivatives \| Foreign Exchange Contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	8	56
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	606	719
Net amount, assets	486	648
Other Current Assets \| Eligible for Offsetting
Derivatives, Fair Value [Line Items]
Derivative Assets	606	719
Gross amounts of derivatives offset in the balance sheet, assets	(120)	(71)
Net amounts presented in the balance sheet, assets	486	648
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	248	167
Other Current Assets \| Non-designated Hedge Derivatives \| Foreign Exchange Contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	248	167
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	358	552
Other Current Assets \| Designated Hedge Derivatives \| Foreign Exchange Contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	358	552
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	21	25
Net amount, assets	(4)	0
Equity and Other Investments \| Eligible for Offsetting
Derivatives, Fair Value [Line Items]
Derivative Assets	21	25
Gross amounts of derivatives offset in the balance sheet, assets	(25)	(25)
Net amounts presented in the balance sheet, assets	(4)	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	21	25
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	21	25
Other Current Liabilities
Derivatives, Fair Value [Line Items]
Derivative Liabilities	(375)	(218)
Net amount, liabilities	(396)	(513)
Other Current Liabilities \| Eligible for Offsetting
Derivatives, Fair Value [Line Items]
Derivative Liabilities	(375)	(218)
Gross amounts of derivatives offset in the balance sheet, liabilities	240	161
Net amounts presented in the balance sheet, liabilities	(135)	(57)
Gross amounts of derivatives not offset in the balance sheet, liabilities	0	0
Cash collateral received, liabilities	(261)	(456)
Other Current Liabilities \| Non-designated Hedge Derivatives
Derivatives, Fair Value [Line Items]
Derivative Liabilities	(231)	(118)
Other Current Liabilities \| Non-designated Hedge Derivatives \| Foreign Exchange Contracts
Derivatives, Fair Value [Line Items]
Derivative Liabilities	(177)	(79)
Other Current Liabilities \| Non-designated Hedge Derivatives \| Equity Contracts
Derivatives, Fair Value [Line Items]
Derivative Liabilities	(27)	(18)
Other Current Liabilities \| Non-designated Hedge Derivatives \| Interest Rate Contracts
Derivatives, Fair Value [Line Items]
Derivative Liabilities	(19)	(12)
Other Current Liabilities \| Non-designated Hedge Derivatives \| Credit Contracts
Derivatives, Fair Value [Line Items]
Derivative Liabilities	(6)	(9)
Other Current Liabilities \| Non-designated Hedge Derivatives \| Commodity Contracts
Derivatives, Fair Value [Line Items]
Derivative Liabilities	(2)	0
Other Current Liabilities \| Designated Hedge Derivatives
Derivatives, Fair Value [Line Items]
Derivative Liabilities	(144)	(100)
Other Current Liabilities \| Designated Hedge Derivatives \| Foreign Exchange Contracts
Derivatives, Fair Value [Line Items]
Derivative Liabilities	(112)	(31)
Other Current Liabilities \| Designated Hedge Derivatives \| Equity Contracts
Derivatives, Fair Value [Line Items]
Derivative Liabilities	$ (32)	$ (69)

Gains (Losses) on Fair Value Hedges and Related Hedged Items (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Foreign Exchange Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Derivatives	$ (331)	$ 31	$ (364)	$ 653
Hedged items	340	(23)	390	(647)
Total amount of ineffectiveness	9	8	26	6
Equity Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Derivatives	15	(25)	(77)	(88)
Hedged items	(15)	25	77	88
Total amount of ineffectiveness	0	0	0	0
Amount of equity contracts excluded from effectiveness assessment	$ (12)	$ 5	$ (8)	$ (8)

Gains (Losses) Related to Cash Flow Hedges (Detail) - Designated Hedge Derivatives - Foreign Exchange Contracts - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Effective Portion
Gains (losses) recognized in OCI (net of tax effects of $(19), $25, $24, and $37)	$ (125)	$ 559	$ 158	$ 1,251
Gains reclassified from AOCI into revenue	171	162	461	290
Amount Excluded from Effectiveness Assessment and Ineffective Portion
Losses recognized in other income (expense), net	$ (86)	$ (120)	$ (240)	$ (262)

Gains (Losses) Related to Cash Flow Hedges (Parenthetical) (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Designated Hedge Derivatives \| Foreign Exchange Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in OCI, tax effects	$ (19)	$ 25	$ 24	$ 37

Non-Designated Derivative Gains (Losses) (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Derivative Instruments, Gain (Loss) [Line Items]
Changes in fair value of derivatives not designated as hedges	$ 157	$ (488)	$ (45)	$ (910)
Foreign Exchange Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Changes in fair value of derivatives not designated as hedges	188	(442)	113	(647)
Equity Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Changes in fair value of derivatives not designated as hedges	(19)	(4)	(15)	(18)
Interest Rate Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Changes in fair value of derivatives not designated as hedges	(4)	3	4	21
Credit Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Changes in fair value of derivatives not designated as hedges	1	2	(2)	(2)
Commodity Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Changes in fair value of derivatives not designated as hedges	$ (9)	$ (47)	$ (145)	$ (264)

Reconciliation of Total Assets Measured at Fair Value on Recurring Basis to Balance Sheet Presentation (Detail) - USD ($) $ in Millions	Mar. 31, 2016	Jun. 30, 2015
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	$ 112,294	$ 104,369
Other assets	16	4
Recorded basis of investment components	116,842	108,554
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	(486)	(648)
Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash	3,691	3,679
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	770	561
Other investments measured at fair value on a nonrecurring basis	$ 557	$ 589

Components of Inventories (Detail) - USD ($) $ in Millions	Mar. 31, 2016	Jun. 30, 2015
Inventory [Line Items]
Raw materials	$ 636	$ 1,100
Work in process	122	202
Finished goods	1,692	1,600
Total	$ 2,450	$ 2,902

Business Combinations - Additional Information (Detail) $ in Millions		9 Months Ended
	Nov. 06, 2014 USD ($)	Mar. 31, 2016 USD ($) Entity	Jun. 30, 2015 USD ($)
Business Acquisition [Line Items]
Goodwill acquired		$ 17,948	$ 16,939
Mojang Synergies AB
Business Acquisition [Line Items]
Name of acquired entity		Mojang Synergies AB
Acquisition date	Nov. 06, 2014
Cash paid, net of cash acquired, to acquire the business	$ 2,500
Goodwill acquired	1,800
Identifiable intangible assets acquired	$ 928
Weighted-average amortization period	6 years 3 months 18 days
Series of Individually Immaterial Business Acquisitions
Business Acquisition [Line Items]
Number of entities acquired \| Entity		14
Cash paid to acquire the business		$ 1,300

Carrying Amount of Goodwill (Detail) $ in Millions	9 Months Ended
Carrying Amount of Goodwill (Detail) $ in Millions	Mar. 31, 2016 USD ($)
Goodwill [Line Items]
Beginning Balance	$ 16,939
Acquisitions	1,072
Other	(63)
Ending Balance	17,948
Productivity and Business Processes
Goodwill [Line Items]
Beginning Balance	6,309
Acquisitions	444
Other	(61)
Ending Balance	6,692
Intelligent Cloud
Goodwill [Line Items]
Beginning Balance	4,917
Acquisitions	537
Other	15
Ending Balance	5,469
More Personal Computing
Goodwill [Line Items]
Beginning Balance	5,713
Acquisitions	91
Other	(17)
Ending Balance	$ 5,787

Finite-Lived Intangible Assets (Detail) - USD ($)
$ in Millions

Mar. 31, 2016

Jun. 30, 2015

Finite-Lived Intangible Assets [Line Items]

Gross Carrying Amount

$ 9,751

$ 9,552

Accumulated Amortization

(5,292)

(4,717)

Net Carrying Amount

4,459

4,835

Technology-based

Finite-Lived Intangible Assets [Line Items]

Gross Carrying Amount

^[1]

6,169

5,926

Accumulated Amortization

^[1]

(3,532)

(3,149)

Net Carrying Amount

^[1]

2,637

2,777

Marketing-related

Finite-Lived Intangible Assets [Line Items]

Gross Carrying Amount

1,936

1,942

Accumulated Amortization

(631)

(508)

Net Carrying Amount

1,305

1,434

Contract-based

Finite-Lived Intangible Assets [Line Items]

Gross Carrying Amount

1,177

1,192

Accumulated Amortization

(757)

(710)

Net Carrying Amount

420

482

Customer-related

Finite-Lived Intangible Assets [Line Items]

Gross Carrying Amount

469

492

Accumulated Amortization

(372)

(350)

Net Carrying Amount

$ 97

$ 142

[1]	Technology-based intangible assets included $128 million and $116 million as of March 31, 2016 and June 30, 2015, respectively, of net carrying amount of software to be sold, leased, or otherwise marketed.

Finite-Lived Intangible Assets (Parenthetical) (Detail) - USD ($) $ in Millions	Mar. 31, 2016	Jun. 30, 2015
Finite-Lived Intangible Assets [Line Items]
Net Carrying Amount	$ 4,459	$ 4,835
Software to be sold, leased, or otherwise marketed
Finite-Lived Intangible Assets [Line Items]
Net Carrying Amount	$ 128	$ 116

Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015	Jun. 30, 2015
Finite-Lived Intangible Assets [Line Items]
Intangible assets amortization expense	$ 249	$ 361	$ 740	$ 1,100
Amortization of capitalized software	18	$ 13	55	$ 68
Gross Carrying Amount	9,751		9,751		$ 9,552
Accumulated Amortization	$ (5,292)		$ (5,292)		(4,717)
Restatement Adjustment
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount					(585)
Accumulated Amortization					$ 585

Estimated Future Amortization Expense Related to Intangible Assets (Detail) - USD ($) $ in Millions	Mar. 31, 2016	Jun. 30, 2015
Finite-Lived Intangible Assets [Line Items]
Year Ending June 30,2016 (excluding the nine months ended March 31, 2016)	$ 247
Year Ending June 30, 2017	861
Year Ending June 30, 2018	753
Year Ending June 30, 2019	602
Year Ending June 30, 2020	522
Thereafter	1,474
Net Carrying Amount	$ 4,459	$ 4,835

Debt - Additional Information (Detail) - USD ($)	9 Months Ended	12 Months Ended
Debt - Additional Information (Detail) - USD ($)	Mar. 31, 2016	Jun. 30, 2015
Debt Instrument [Line Items]
Commercial paper	$ 5,500,000,000	$ 5,000,000,000
Credit facility, financial covenant	As of March 31, 2016, 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	40,900,000,000	30,300,000,000
Long-term debt fair value	43,500,000,000	30,500,000,000
Unamortized discount	169,000,000	$ 156,000,000
Credit Facility Expire on November 1st 2016
Debt Instrument [Line Items]
Credit facility	$ 5,000,000,000
Credit facility, expiration date	Nov. 01, 2016
Credit Facility Expire on November 14th 2018
Debt Instrument [Line Items]
Credit facility	$ 5,000,000,000
Credit facility, expiration date	Nov. 14, 2018
Commercial paper
Debt Instrument [Line Items]
Commercial paper, weighted average interest rate	0.36%	0.11%
Commercial paper \| Lower Limit
Debt Instrument [Line Items]
Commercial paper, maturity term	26 days	8 days
Commercial paper \| Upper Limit
Debt Instrument [Line Items]
Commercial paper, maturity term	91 days	63 days

Long-term Debt (Detail) - USD ($)
$ in Millions

9 Months Ended

12 Months Ended

Mar. 31, 2016

Jun. 30, 2015

Debt Instrument [Line Items]

Face Value

$ 41,065

$ 30,463

Notes 1.625 Percent Due September 25th 2015

Debt Instrument [Line Items]

Debt maturity date

Sep. 25, 2015

Face Value

^[1]

$ 1,750

Stated Interest Rate

1.625%

Effective Interest Rate

1.795%

Notes 2.5 Percent Due February 8th 2016

Debt Instrument [Line Items]

Debt maturity date

Feb. 08, 2016

Face Value

^[1]

$ 750

Stated Interest Rate

2.50%

Effective Interest Rate

2.642%

Notes 0.875 Percent Due November 15th 2017

Debt Instrument [Line Items]

Debt maturity date

Nov. 15, 2017

Face Value

$ 600

Stated Interest Rate

0.875%

Effective Interest Rate

1.084%

Notes 1.0 Percent Due May 1st 2018

Debt Instrument [Line Items]

Debt maturity date

May 01, 2018

Face Value

$ 450

Stated Interest Rate

1.00%

Effective Interest Rate

1.106%

Notes 1.30 Percent Due November 3rd 2018

Debt Instrument [Line Items]

Debt maturity date

^[2]

Nov. 03, 2018

Face Value

^[2]

$ 1,750

^[1]

Stated Interest Rate

^[2]

1.30%

Effective Interest Rate

^[2]

1.396%

Notes 1.625 Percent Due December 6th 2018

Debt Instrument [Line Items]

Debt maturity date

Dec. 06, 2018

Face Value

$ 1,250

Stated Interest Rate

1.625%

Effective Interest Rate

1.824%

Notes 4.2 Percent Due June 1st 2019

Debt Instrument [Line Items]

Debt maturity date

Jun. 01, 2019

Face Value

$ 1,000

Stated Interest Rate

4.20%

Effective Interest Rate

4.379%

Notes 1.850 Percent Due February 12th 2020

Debt Instrument [Line Items]

Debt maturity date

Feb. 12, 2020

Face Value

$ 1,500

Stated Interest Rate

1.85%

Effective Interest Rate

1.935%

Notes 3.0 Percent Due October 1st 2020

Debt Instrument [Line Items]

Debt maturity date

Oct. 01, 2020

Face Value

$ 1,000

Stated Interest Rate

3.00%

Effective Interest Rate

3.137%

Notes 2.0 Percent Due November 3rd 2020

Debt Instrument [Line Items]

Debt maturity date

^[2]

Nov. 03, 2020

Face Value

^[2]

$ 2,250

^[1]

Stated Interest Rate

^[2]

2.00%

Effective Interest Rate

^[2]

2.093%

Notes 4.0 Percent Due February 8th 2021

Debt Instrument [Line Items]

Debt maturity date

Feb. 08, 2021

Face Value

$ 500

Stated Interest Rate

4.00%

Effective Interest Rate

4.082%

Notes 2.125 Percent Due December 6th 2021

Debt Instrument [Line Items]

Debt maturity date

^[3]

Dec. 06, 2021

Face Value

^[3]

$ 1,994

$ 1,950

Stated Interest Rate

^[3]

2.125%

Effective Interest Rate

^[3]

2.233%

Notes 2.375 Percent Due February 12th 2022

Debt Instrument [Line Items]

Debt maturity date

Feb. 12, 2022

Face Value

$ 1,500

Stated Interest Rate

2.375%

Effective Interest Rate

2.466%

Notes 2.65 Percent Due November 3rd 2022

Debt Instrument [Line Items]

Debt maturity date

^[2]

Nov. 03, 2022

Face Value

^[2]

$ 1,000

^[1]

Stated Interest Rate

^[2]

2.65%

Effective Interest Rate

^[2]

2.717%

Notes 2.125 Percent Due November 15th 2022

Debt Instrument [Line Items]

Debt maturity date

Nov. 15, 2022

Face Value

$ 750

Stated Interest Rate

2.125%

Effective Interest Rate

2.239%

Notes 2.375 Percent Due May 1st 2023

Debt Instrument [Line Items]

Debt maturity date

May 01, 2023

Face Value

$ 1,000

Stated Interest Rate

2.375%

Effective Interest Rate

2.465%

Notes 3.625 Percent Due December 15th 2023

Debt Instrument [Line Items]

Debt maturity date

Dec. 15, 2023

Face Value

$ 1,500

Stated Interest Rate

3.625%

Effective Interest Rate

3.726%

Notes 2.70 Percent Due February 12th 2025

Debt Instrument [Line Items]

Debt maturity date

Feb. 12, 2025

Face Value

$ 2,250

Stated Interest Rate

2.70%

Effective Interest Rate

2.772%

Notes 3.125 Percent Due November 3rd 2025

Debt Instrument [Line Items]

Debt maturity date

^[2]

Nov. 03, 2025

Face Value

^[2]

$ 3,000

^[1]

Stated Interest Rate

^[2]

3.125%

Effective Interest Rate

^[2]

3.176%

Notes 3.125 Percent Due December 6th 2028

Debt Instrument [Line Items]

Debt maturity date

^[3]

Dec. 06, 2028

Face Value

^[3]

$ 1,994

$ 1,950

Stated Interest Rate

^[3]

3.125%

Effective Interest Rate

^[3]

3.218%

Notes 2.625 Percent Due May 2nd 2033

Debt Instrument [Line Items]

Debt maturity date

^[3]

May 02, 2033

Face Value

^[3]

$ 627

$ 613

Stated Interest Rate

^[3]

2.625%

Effective Interest Rate

^[3]

2.69%

Notes 3.50 Percent Due February 12th 2035

Debt Instrument [Line Items]

Debt maturity date

Feb. 12, 2035

Face Value

$ 1,500

Stated Interest Rate

3.50%

Effective Interest Rate

3.604%

Notes 4.2 Percent Due November 3rd 2035

Debt Instrument [Line Items]

Debt maturity date

^[2]

Nov. 03, 2035

Face Value

^[2]

$ 1,000

^[1]

Stated Interest Rate

^[2]

4.20%

Effective Interest Rate

^[2]

4.26%

Notes 5.2 Percent Due June 1st 2039

Debt Instrument [Line Items]

Debt maturity date

Jun. 01, 2039

Face Value

$ 750

Stated Interest Rate

5.20%

Effective Interest Rate

5.24%

Notes 4.5 Percent Due October 1st 2040

Debt Instrument [Line Items]

Debt maturity date

Oct. 01, 2040

Face Value

$ 1,000

Stated Interest Rate

4.50%

Effective Interest Rate

4.567%

Notes 5.3 Percent Due February 8th 2041

Debt Instrument [Line Items]

Debt maturity date

Feb. 08, 2041

Face Value

$ 1,000

Stated Interest Rate

5.30%

Effective Interest Rate

5.361%

Notes 3.5 Percent Due November 15th 2042

Debt Instrument [Line Items]

Debt maturity date

Nov. 15, 2042

Face Value

$ 900

Stated Interest Rate

3.50%

Effective Interest Rate

3.571%

Notes 3.750 Percent Due May 1st 2043

Debt Instrument [Line Items]

Debt maturity date

May 01, 2043

Face Value

$ 500

Stated Interest Rate

3.75%

Effective Interest Rate

3.829%

Notes 4.875 Percent Due December 15th 2043

Debt Instrument [Line Items]

Debt maturity date

Dec. 15, 2043

Face Value

$ 500

Stated Interest Rate

4.875%

Effective Interest Rate

4.918%

Notes 3.750 Percent Due February 12th 2045

Debt Instrument [Line Items]

Debt maturity date

Feb. 12, 2045

Face Value

$ 1,750

Stated Interest Rate

3.75%

Effective Interest Rate

3.80%

Notes 4.45 Percent Due November 3rd 2045

Debt Instrument [Line Items]

Debt maturity date

^[2]

Nov. 03, 2045

Face Value

^[2]

$ 3,000

^[1]

Stated Interest Rate

^[2]

4.45%

Effective Interest Rate

^[2]

4.492%

Notes 4.0 Percent Due February 12th 2055

Debt Instrument [Line Items]

Debt maturity date

Feb. 12, 2055

Face Value

$ 2,250

Stated Interest Rate

4.00%

Effective Interest Rate

4.063%

Notes 4.75 Percent Due November 3rd 2055

Debt Instrument [Line Items]

Debt maturity date

^[2]

Nov. 03, 2055

Face Value

^[2]

$ 1,000

^[1]

Stated Interest Rate

^[2]

4.75%

Effective Interest Rate

^[2]

4.782%

[1]	Not applicable
[2]	In November 2015, we issued $13.0 billion of debt securities.
[3]	Euro-denominated debt securities.

Long-term Debt (Parenthetical) (Detail) - USD ($) $ in Millions	Mar. 31, 2016	Nov. 30, 2015	Jun. 30, 2015
Debt Instrument [Line Items]
Face Value	$ 41,065		$ 30,463
USD Debt Issued in Period
Debt Instrument [Line Items]
Face Value		$ 13,000

Income Taxes - Additional Information (Detail)	3 Months Ended		9 Months Ended
Income Taxes - Additional Information (Detail)	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Income Tax [Line Items]
Effective tax rate	25.00%	24.00%	17.00%	24.00%

Income Taxes - Additional Information Regarding Examinations (Detail) - USD ($) $ in Billions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Mar. 31, 2011	Mar. 31, 2016	Mar. 31, 2015	Jun. 30, 2015
Income Tax Examination [Line Items]
Tax contingencies and other tax liabilities				$ 12.7	$ 12.1
Internal Revenue Service (IRS) \| Earliest Tax Year
Income Tax Examination [Line Items]
Tax years under audit	2007	2004
Tax years subject to examination				2010
Internal Revenue Service (IRS) \| Latest Tax Year
Income Tax Examination [Line Items]
Tax years under audit	2009	2006
Tax years subject to examination				2016
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			2016

Restructuring Charges - Additional Information (Detail) $ in Millions	3 Months Ended	9 Months Ended		12 Months Ended
	Mar. 31, 2015 USD ($)	Mar. 31, 2016 USD ($) Position	Mar. 31, 2015 USD ($)	Jun. 30, 2015 USD ($) Position
Restructuring Cost and Reserve [Line Items]
Restructuring charges \| $		$ 0
Phone Hardware Integration Plan
Restructuring Cost and Reserve [Line Items]
Number of positions eliminated \| Position				19,000
Completion date		Jun. 30, 2015
Restructuring charges \| $	$ 98		$ 1,300	$ 1,300
Phone Hardware Integration Plan \| Nokia Devices And Services Business
Restructuring Cost and Reserve [Line Items]
Number of positions eliminated \| Position				13,000
Phone Hardware Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Completion date		Jun. 30, 2016
Restructuring charge to date \| $		$ 780
Phone Hardware Restructuring Plan \| Upper Limit
Restructuring Cost and Reserve [Line Items]
Number of positions expected to be eliminated in fiscal year 2016 \| Position		7,800

Changes in Restructuring Liability (Detail)
$ in Millions

9 Months Ended

Mar. 31, 2016

USD ($)

Restructuring Cost and Reserve [Line Items]

Restructuring liability as of June 30, 2015

$ 837

Restructuring charges

Cash paid

(492)

Other

(23)

Restructuring liability as of March 31, 2016

322

Severance

Restructuring Cost and Reserve [Line Items]

Restructuring liability as of June 30, 2015

588

Restructuring charges

Cash paid

(400)

Other

(23)

Restructuring liability as of March 31, 2016

165

Asset Impairments and Other

Restructuring Cost and Reserve [Line Items]

Restructuring liability as of June 30, 2015

249

^[1]

Restructuring charges

^[1]

Cash paid

(92)

^[1]

Other

^[1]

Restructuring liability as of March 31, 2016

$ 157

^[1]

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

Unearned Revenue by Segment (Detail) - USD ($) $ in Millions	Mar. 31, 2016	Jun. 30, 2015
Deferred Revenue Arrangement [Line Items]
Unearned revenue	$ 25,893	$ 25,318
Reportable Segments \| Productivity and Business Processes
Deferred Revenue Arrangement [Line Items]
Unearned revenue	9,635	11,643
Reportable Segments \| Intelligent Cloud
Deferred Revenue Arrangement [Line Items]
Unearned revenue	8,658	10,346
Reportable Segments \| More Personal Computing
Deferred Revenue Arrangement [Line Items]
Unearned revenue	2,848	3,246
Corporate and Other
Deferred Revenue Arrangement [Line Items]
Unearned revenue	$ 4,752	$ 83

Unearned Revenue - Additional Information (Detail) - USD ($) $ in Millions	Mar. 31, 2016	Jun. 30, 2015
Deferred Revenue Arrangement [Line Items]
Unearned revenue	$ 25,893	$ 25,318
Windows 10 Licenses
Deferred Revenue Arrangement [Line Items]
Unearned revenue	$ 4,600

Contingencies - Additional Information (Detail) - Contingencies Disclosed in Contingencies Note $ in Millions	Mar. 31, 2016 USD ($)
Loss Contingencies [Line Items]
Accrual for disclosed loss contingencies, current, ending balance	$ 520
Accrual for disclosed loss contingencies, noncurrent, ending balance	10
Amount not accrued for estimated maximum losses for disclosed loss contingencies	$ 1,600

Share Repurchases (Detail) - Share Repurchase Program - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Share Repurchases [Line Items]
Shares of common stock repurchased	69	116	224	202
Value of common stock repurchased	$ 3,600	$ 5,000	$ 11,200	$ 9,000

Stockholders' Equity - Additional Information (Detail) - USD ($)	Mar. 31, 2016	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	$ 10,700,000,000

Dividends Declared (Detail) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended						9 Months Ended
	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Mar. 31, 2016	Mar. 31, 2015
Dividends [Line Items]
Declaration Date	Mar. 15, 2016	Dec. 02, 2015	Sep. 15, 2015	Mar. 10, 2015	Dec. 03, 2014	Sep. 16, 2014
Dividend Per Share	$ 0.36	$ 0.36	$ 0.36	$ 0.31	$ 0.31	$ 0.31	$ 1.08	$ 0.93
Record Date	May 19, 2016	Feb. 18, 2016	Nov. 19, 2015	May 21, 2015	Feb. 19, 2015	Nov. 20, 2014
Total Amount	$ 2,833	$ 2,842	$ 2,868	$ 2,515	$ 2,532	$ 2,547
Payment Date	Jun. 09, 2016	Mar. 10, 2016	Dec. 10, 2015	Jun. 11, 2015	Mar. 12, 2015	Dec. 11, 2014

Summary of Changes in Accumulated Other Comprehensive Income by Component (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive income (loss), beginning of period			$ 2,522
Translation adjustments and other, net of tax effects of $3, $(174), $(18), and $(432)	$ 7	$ (438)	(339)	$ (909)
Net current period other comprehensive income (loss)	(285)	401	(277)	967
Net current period other comprehensive income (loss)	345	125	(66)	(295)
Accumulated other comprehensive income (loss), end of period	1,840	3,471	1,840	3,471
Derivatives
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive income (loss), beginning of period	598	597	590	31
Unrealized gains (losses), net of tax effects of $(19), $25, $24, and $37	(125)	559	158	1,251
Tax expense included in provision for income taxes	11	4	26	6
Amounts reclassified from accumulated other comprehensive income	(160)	(158)	(435)	(284)
Net current period other comprehensive income (loss)	(285)	401	(277)	967
Accumulated other comprehensive income (loss), end of period	313	998	313	998
Derivatives \| Revenue
Accumulated Other Comprehensive Income (Loss) [Line Items]
Reclassification adjustments for gains included in revenue	(171)	(162)	(461)	(290)
Investments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive income (loss), beginning of period	2,758	3,111	3,169	3,531
Unrealized gains, net of tax effects of $217, $133, $34, and $47	402	245	64	83
Tax expense included in provision for income taxes	31	65	70	205
Amounts reclassified from accumulated other comprehensive income	(57)	(120)	(130)	(378)
Net current period other comprehensive income (loss)	345	125	(66)	(295)
Accumulated other comprehensive income (loss), end of period	3,103	3,236	3,103	3,236
Investments \| Other income (expense), net
Accumulated Other Comprehensive Income (Loss) [Line Items]
Reclassification adjustments for gains included in other income (expense), net	(88)	(185)	(200)	(583)
Translation Adjustments and Other
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive income (loss), beginning of period	(1,583)	(325)	(1,237)	146
Translation adjustments and other, net of tax effects of $3, $(174), $(18), and $(432)	7	(438)	(339)	(909)
Accumulated other comprehensive income (loss), end of period	$ (1,576)	$ (763)	$ (1,576)	$ (763)

Summary of Changes in Accumulated Other Comprehensive Income by Component (Parenthetical) (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Accumulated Other Comprehensive Income (Loss) [Line Items]
Translation adjustments and other, tax effects	$ 3	$ (174)	$ (18)	$ (432)
Derivatives
Accumulated Other Comprehensive Income (Loss) [Line Items]
Unrealized gains (losses), tax effects	(19)	25	24	37
Investments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Unrealized gains, tax effects	217	133	34	47
Translation Adjustments and Other
Accumulated Other Comprehensive Income (Loss) [Line Items]
Translation adjustments and other, tax effects	$ 3	$ (174)	$ (18)	$ (432)

Segment Revenue (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
Segment Revenue (Detail) - USD ($) $ in Millions	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Segment Reporting Information [Line Items]
Revenue	$ 20,531	$ 21,729	$ 64,706	$ 71,400
Reportable Segments \| Productivity and Business Processes
Segment Reporting Information [Line Items]
Revenue	6,522	6,457	19,518	19,769
Reportable Segments \| Intelligent Cloud
Segment Reporting Information [Line Items]
Revenue	6,096	5,903	18,331	17,419
Reportable Segments \| More Personal Computing
Segment Reporting Information [Line Items]
Revenue	9,458	9,369	31,563	33,917
Corporate and Other
Segment Reporting Information [Line Items]
Revenue	$ (1,545)	$ 0	$ (4,706)	$ 295

Operating Income (Loss) by Segment (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Segment Reporting Information [Line Items]
Operating income (loss)	$ 5,283	$ 6,594	$ 17,102	$ 20,214
Reportable Segments \| Productivity and Business Processes
Segment Reporting Information [Line Items]
Operating income (loss)	2,994	3,204	9,461	10,192
Reportable Segments \| Intelligent Cloud
Segment Reporting Information [Line Items]
Operating income (loss)	2,188	2,533	7,168	7,238
Reportable Segments \| More Personal Computing
Segment Reporting Information [Line Items]
Operating income (loss)	1,645	1,049	5,178	4,063
Corporate and Other
Segment Reporting Information [Line Items]
Operating income (loss)	$ (1,544)	$ (192)	$ (4,705)	$ (1,279)

Corporate and Other Operating Income (Loss) Activity (Detail) - USD ($)
$ in Millions

3 Months Ended

9 Months Ended

Mar. 31, 2016

Mar. 31, 2015

Mar. 31, 2016

Mar. 31, 2015

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

Operating income (loss)

$ 5,283

$ 6,594

$ 17,102

$ 20,214

Corporate and Other

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

Operating income (loss)

(1,544)

(192)

(4,705)

(1,279)

Corporate and Other | Revenue reconciling amounts and other

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

Operating income (loss)

^[1]

(1,544)

(2)

(4,705)

294

Corporate and Other | Impairment, integration, and restructuring expenses

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

Operating income (loss)

$ 0

$ (190)

$ 0

$ (1,573)

[1]

Revenue reconciling amounts and other for the three months ended March 31, 2016 primarily consisted of a net $1.6 billion of revenue deferrals related to sales of Windows 10. Revenue reconciling amounts and other for the nine months ended March 31, 2016 primarily consisted of a net $4.6 billion of revenue deferrals related to sales of Windows 10. Revenue reconciling amounts and other for the nine months ended March 31, 2015 included the net recognition of $296 million of previously deferred revenue related to bundled products and services.