Weighted average shares outstanding:

$ 16,798

^[2]

$ 12,193

^[3]

$ 22,074

Earnings per share:

Basic

$ 2.12

$ 1.49

$ 2.66

Diluted

$ 2.10

^[2]

$ 1.48

^[3]

$ 2.63

Basic

7,925

8,177

8,299

Diluted

8,013

8,254

8,399

Cash dividends declared per common share

$ 1.44

$ 1.24

$ 1.12

[1]	Reflects the impact of the net revenue deferral from Windows 10 of $1.3 billion, $1.7 billion, $1.6 billion, and $2.0 billion, for the first, second, third, and fourth quarter of fiscal year 2016, respectively, and $6.6 billion for fiscal year 2016.
[2]	Includes $630 million of asset impairment charges related to our phone business, and $480 million of restructuring charges associated with our 2016 restructuring plans, which together decreased net income and diluted EPS by $895 million and $0.11, respectively.
[3]	Includes $7.5 billion of goodwill and asset impairment charges related to our phone business, and $2.5 billion of integration and restructuring expenses, primarily associated with our Phone Hardware Integration Plan and Phone Hardware Restructuring Plan, which together decreased net income and diluted EPS by $9.5 billion and $1.15, respectively.

COMPREHENSIVE INCOME STATEMENTS - USD ($)
$ in Millions

12 Months Ended

Jun. 30, 2016

Jun. 30, 2015

Jun. 30, 2014

Net unrealized gains (losses) on derivatives (net of tax effects of $(12), $20, and $(4))

$ 16,798

^[1]

$ 12,193

^[2]

$ 22,074

Other comprehensive income (loss):

(238)

559

(35)

Net unrealized gains (losses) on investments (net of tax effects of $(121), $(197), and $936)

(228)

(362)

1,737

Translation adjustments and other (net of tax effects of $(33), $16, and $12)

(519)

(1,383)

263

Cash and cash equivalents

(985)

(1,186)

1,965

Comprehensive income

$ 15,813

$ 11,007

$ 24,039

[1]	Includes $630 million of asset impairment charges related to our phone business, and $480 million of restructuring charges associated with our 2016 restructuring plans, which together decreased net income and diluted EPS by $895 million and $0.11, respectively.
[2]	Includes $7.5 billion of goodwill and asset impairment charges related to our phone business, and $2.5 billion of integration and restructuring expenses, primarily associated with our Phone Hardware Integration Plan and Phone Hardware Restructuring Plan, which together decreased net income and diluted EPS by $9.5 billion and $1.15, respectively.

COMPREHENSIVE INCOME STATEMENTS (Parenthetical) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Net unrealized gains (losses) on derivatives, tax effects	$ (12)	$ 20	$ (4)
Net unrealized gains (losses) on investments, tax effects	(121)	(197)	936
Translation adjustments and other, tax effects	$ (33)	$ 16	$ 12

BALANCE SHEETS - USD ($)
$ in Millions

Jun. 30, 2016

Jun. 30, 2015

Current assets:

$ 6,510

$ 5,595

Short-term investments (including securities loaned of $204 and $75)

106,730

90,931

Total cash, cash equivalents, and short-term investments

113,240

96,526

Accounts receivable, net of allowance for doubtful accounts of $426 and $335

18,277

17,908

2,251

2,902

Property and equipment, net of accumulated depreciation of $19,800 and $17,606

5,892

5,461

Total current assets

139,660

122,797

18,356

14,731

Equity and other investments

10,431

12,053

17,872

16,939

Intangible assets, net

3,733

4,835

Current portion of long-term debt

3,642

3,117

Total assets

193,694

174,472

Current liabilities:

Accounts payable

6,898

6,591

Short-term debt

12,904

4,985

2,499

Accrued compensation

5,264

5,096

Income taxes

580

606

Short-term unearned revenue

27,468

23,223

Securities lending payable

294

Total current liabilities

5,949

6,555

59,357

49,647

Long-term debt

40,783

27,808

Long-term unearned revenue

6,441

2,095

Deferred income taxes

^[1]

1,476

1,295

Other long-term liabilities

13,640

13,544

Total liabilities

121,697

94,389

Commitments and contingencies

Stockholders' equity:

Common stock and paid-in capital - shares authorized 24,000; outstanding 7,808 and 8,027

68,178

68,465

Retained earnings

2,282

9,096

Accumulated other comprehensive income

1,537

2,522

Total stockholders' equity

71,997

80,083

Total liabilities and stockholders' equity

$ 193,694

$ 174,472

[1]	Balances as of June 30, 2015 reflect the impact of the adoption of the new accounting standard in fiscal year 2016 related to balance sheet classification of deferred taxes. See Note 1 - Accounting Policies for additional details.

BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions	Jun. 30, 2016	Jun. 30, 2015
Short-term investments, securities loaned	$ 204	$ 75
Accounts receivable, allowance for doubtful accounts	426	335
Property and equipment, accumulated depreciation	$ 19,800	$ 17,606
Common stock, shares authorized	24,000,000,000	24,000,000,000
Common stock, outstanding	7,808,000,000	8,027,000,000

CASH FLOWS STATEMENTS - USD ($)
$ in Millions

12 Months Ended

Jun. 30, 2016

Jun. 30, 2015

Jun. 30, 2014

Operations

Adjustments to reconcile net income to net cash from operations:

$ 16,798

^[1]

$ 12,193

^[2]

$ 22,074

Depreciation, amortization, and other

630

7,498

6,622

5,957

5,212

Net recognized gains on investments and derivatives

2,668

2,574

2,446

(223)

(443)

(109)

Deferred income taxes

332

224

(331)

Deferral of unearned revenue

57,072

45,072

44,325

Recognition of unearned revenue

(48,498)

(44,920)

(41,739)

Changes in operating assets and liabilities:

Accounts receivable

(530)

1,456

(1,120)

600

(272)

(161)

Other current assets

(1,167)

(29)

Other current liabilities

(41)

346

(628)

Accounts payable

(1,054)

473

(260)

(624)

1,075

Other long-term liabilities

(766)

1,599

1,014

Net cash from operations

33,325

29,668

32,502

Financing

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

7,195

4,481

500

Proceeds from issuance of debt

13,884

10,680

10,350

Repayments of debt

(2,796)

(1,500)

(3,888)

668

634

607

Common stock cash dividends paid

(15,969)

(14,443)

(7,316)

(11,006)

(9,882)

(8,879)

Net cash used in financing

(369)

362

(39)

(8,393)

(9,668)

(8,665)

Investing

Additions to property and equipment

(8,343)

(5,944)

(5,485)

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

(1,393)

(3,723)

(5,937)

Purchases of investments

(129,758)

(98,729)

(72,690)

Maturities of investments

22,054

15,013

5,272

Sales of investments

93,287

70,848

60,094

Securities lending payable

203

(466)

(87)

Net cash used in investing

(23,950)

(23,001)

(18,833)

Effect of foreign exchange rates on cash and cash equivalents

(67)

(73)

(139)

Net change in cash and cash equivalents

915

(3,074)

4,865

Cash and cash equivalents, beginning of period

5,595

8,669

3,804

Cash and cash equivalents, end of period

$ 6,510

$ 5,595

$ 8,669

[1]	Includes $630 million of asset impairment charges related to our phone business, and $480 million of restructuring charges associated with our 2016 restructuring plans, which together decreased net income and diluted EPS by $895 million and $0.11, respectively.
[2]	Includes $7.5 billion of goodwill and asset impairment charges related to our phone business, and $2.5 billion of integration and restructuring expenses, primarily associated with our Phone Hardware Integration Plan and Phone Hardware Restructuring Plan, which together decreased net income and diluted EPS by $9.5 billion and $1.15, respectively.

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, 2013

$ 67,306

$ 9,895

$ 1,743

607

$ 22,074

22,074

Common stock cash dividends

1,965

(9,271)

(6,409)

^[1]

(2,328)

(4,988)

Stock-based compensation income tax benefits

2,446

272

Other, net

Balance, end of period at Jun. 30, 2014

89,784

68,366

17,710

3,708

634

12,193

^[2]

12,193

Common stock cash dividends

(1,186)

(10,063)

(13,209)

(3,700)

(10,744)

Stock-based compensation income tax benefits

2,574

588

Other, net

Balance, end of period at Jun. 30, 2015

80,083

68,465

9,096

2,522

668

16,798

^[3]

16,798

Common stock cash dividends

(985)

(11,329)

(14,800)

(3,689)

(12,283)

Stock-based compensation income tax benefits

2,668

Other, net

Balance, end of period at Jun. 30, 2016

$ 71,997

$ 68,178

$ 2,282

$ 1,537

[1]	Of the 175 million shares repurchased in fiscal year 2014, 128 million shares were repurchased for $4.9 billion under the share repurchase program approved by our Board of Directors on September 16, 2013 and 47 million shares were repurchased for $1.5 billion under the share repurchase program that was announced on September 22, 2008 and expired on September 30, 2013.
[2]	Includes $7.5 billion of goodwill and asset impairment charges related to our phone business, and $2.5 billion of integration and restructuring expenses, primarily associated with our Phone Hardware Integration Plan and Phone Hardware Restructuring Plan, which together decreased net income and diluted EPS by $9.5 billion and $1.15, respectively.
[3]	Includes $630 million of asset impairment charges related to our phone business, and $480 million of restructuring charges associated with our 2016 restructuring plans, which together decreased net income and diluted EPS by $895 million and $0.11, respectively.

ACCOUNTING POLICIES

12 Months Ended

Jun. 30, 2016

ACCOUNTING POLICIES

NOTE 1 — ACCOUNTING POLICIES

Accounting Principles

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

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.

Segment Information

In June 2015, we announced a change in organizational structure to align to our strategic direction as a productivity and platform company. During the first quarter of fiscal year 2016, our 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 21 – Segment Information and Geographic Data. 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 10 – Goodwill, Note 15 – Unearned Revenue, and Note 21 – Segment Information and Geographic Data, 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 intangible 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 and volume of demand for 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 on our consolidated financial statements or tax returns; and determining when investment impairments are other-than-temporary. Actual results and outcomes may differ from management’s estimates and assumptions.

Foreign Currencies

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

Product Revenue and Service and Other Revenue

Service revenue exceeded 10% of total revenue for the first time in fiscal year 2016. As a result, we have separately disclosed product revenue and service and other revenue on our consolidated income statements.

Product revenue includes sales from operating systems; cross-device productivity applications; server applications; business solution applications; desktop and server management tools; software development tools; video games; hardware such as PCs, tablets, gaming and entertainment consoles, phones, other intelligent devices, and related accessories; and training and certification of computer system integrators and developers.

Service and other revenue includes sales from cloud-based solutions that provide customers with software, services, platforms, and content such as Office 365, Microsoft Azure (“Azure”), Microsoft Dynamics (“Dynamics”) CRM Online, and Xbox Live; solution support; and consulting services. Service and other revenue also includes sales from online advertising.

Revenue Recognition

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

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

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

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

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

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

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 VSOE 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.

Certain volume licensing arrangements include a perpetual license for current products combined with rights to receive unspecified future versions of software products, which we have determined are additional software products and are therefore accounted for as subscriptions, with billings recorded as unearned revenue and recognized as revenue ratably over the coverage period. Arrangements that include term-based licenses for current products with the right to use unspecified future versions of the software during the coverage period, are also accounted for as subscriptions, with revenue recognized ratably over the coverage period. Revenue from cloud-based services arrangements that allow for the use of a hosted software product or service over a contractually determined period of time without taking possession of software are accounted for as subscriptions with billings recorded as unearned revenue and recognized as revenue ratably over the coverage period beginning on the date the service is made available to customers. Revenue from cloud-based services arrangements that are provided on a consumption basis (for example, the amount of storage used in a particular period) is recognized commensurate with the customer utilization of such resources.

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

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

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

Cost of Revenue

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

Product Warranty

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

Research and Development

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

Sales and Marketing

Sales and marketing expenses include payroll, employee benefits, stock-based compensation expense, and other headcount-related expenses associated with sales and marketing personnel, and the costs of advertising, promotions, trade shows, seminars, and other programs. Advertising costs are expensed as incurred. Advertising expense was $1.6 billion, $1.9 billion, and $2.3 billion in fiscal years 2016, 2015, and 2014, respectively.

Stock-Based Compensation

Compensation cost for stock awards is measured at the fair value on the grant date and recognized as expense, net of estimated forfeitures, over the related service period using the straight-line method. The fair value of stock awards is based on the quoted price of our common stock on the grant date less the present value of expected dividends not received during the vesting period. Compensation expense for the employee stock purchase plan (“ESPP”) is measured as the discount the employee is entitled to upon purchase and is recognized in the period of purchase.

Income Taxes

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

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.

Financial Instruments

Investments

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

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

We lend certain fixed-income and equity securities to increase investment returns. 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. Cash received is recorded as an asset with a corresponding liability.

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

Derivatives

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

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

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

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

Allowance for Doubtful Accounts

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


(In millions)


Year Ended June 30,	2016			2015			2014

Balance, beginning of period	$	335		$	301		$	336
Charged to costs and other		146			77			16
Write-offs		(55	)		(43	)		(51	)

Balance, end of period	$	426		$	335		$	301

Inventories

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

Property and Equipment

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

Goodwill

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

Intangible Assets

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

Recent Accounting Guidance

Recently adopted accounting guidance

Improvements to Employee Share-Based Payment Accounting

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 stock 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 vesting shares for tax withholding purposes without triggering liability accounting, clarifies that all cash payments made to tax authorities 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 $588 million and $271 million for the years ended June 30, 2015 and 2014, respectively. The presentation requirements for cash flows related to employee taxes paid for withheld shares had no impact to any of the periods presented on 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 $402 million for the year ended June 30, 2016.

Balance Sheet Classification of Deferred Taxes

In November 2015, the FASB issued guidance that requires companies to classify all deferred tax assets and liabilities as noncurrent on the balance sheet rather than separately disclosing deferred taxes as current and noncurrent. This standard is effective for us beginning July 1, 2017, and can be early adopted and applied either prospectively or retrospectively to all periods presented upon adoption.

We elected to early adopt the new guidance in the fourth quarter of fiscal year 2016 on a retrospective basis. While the guidance changes the manner in which deferred taxes are classified on the balance sheet, we are still required to offset deferred tax assets and liabilities for each taxpaying component within a tax jurisdiction. Adoption of the new standard impacted our previously reported results as follows:


(In millions)	June 30, 2015


		As adjusted		As reported

Balance sheets:

Current deferred income tax assets	$	0	$	1,915
Other long-term assets	$	3,117	$	2,953
Other current liabilities	$	6,555	$	6,766
Long-term deferred income tax liabilities	$	1,295	$	2,835

Recent accounting guidance not yet adopted

Financial Instruments – Credit Losses

In June 2016, the FASB issued a new standard to replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. For trade and other receivables, loans, and other financial instruments, we will be required to use a forward-looking expected loss model rather than the incurred loss model for recognizing credit losses which reflects losses that are probable. Credit losses relating to available-for-sale debt securities will also be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. The new standard will be effective for us beginning July 1, 2020, with early adoption permitted beginning July 1, 2019. Application of the amendments is through a cumulative-effect adjustment to retained earnings as of the effective date. We are currently evaluating the impact of this standard on our consolidated financial statements.

Leases

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. We will be required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach.

The new standard will be effective for us beginning July 1, 2019, with early adoption permitted. We currently anticipate early adoption of the new standard effective July 1, 2017 in conjunction with our adoption of the new revenue standard. Our ability to early adopt is dependent on system readiness, including software procured from third-party providers, and the completion of our analysis of information necessary to restate prior period financial statements.

Financial Instruments – Recognition, Measurement, Presentation, and Disclosure

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 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 sheets as of the effective date. We are currently evaluating the impact of this standard on our consolidated financial statements.

Revenue from Contracts with Customers

In May 2014, the FASB issued a new standard related to revenue recognition. Under the new standard, revenue is recognized when a customer obtains control of promised goods or services and is recognized 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 FASB has recently issued several amendments to the standard, including clarification on accounting for licenses of intellectual property and identifying performance obligations.

The guidance permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (the cumulative catch-up transition method). We currently anticipate adopting the standard using the full retrospective method to restate each prior reporting period presented.

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 currently anticipate early adoption of the new standard effective July 1, 2017. Our ability to early adopt using the full retrospective method is dependent on system readiness, including software procured from third-party providers, and the completion of our analysis of information necessary to restate prior period financial statements.

We anticipate this standard will have a material impact on our consolidated financial statements. While we are continuing to assess all potential impacts of the standard, we currently believe the most significant impact relates to our accounting for software license revenue. We expect revenue related to hardware, cloud offerings, and professional services to remain substantially unchanged. Specifically, under the new standard we expect to recognize Windows 10 revenue predominantly at the time of billing rather than ratably over the life of the related device. We also expect to recognize license revenue at the time of billing rather than over the subscription period from certain multi-year commercial software subscriptions that include both software licenses and Software Assurance. Due to the complexity of certain of our commercial license subscription contracts, the actual revenue recognition treatment required under the standard will be dependent on contract-specific terms, and may vary in some instances from recognition at the time of billing.

We currently believe that the net change in Windows 10 revenue from period to period is indicative of the net change in revenue we expect from the adoption of the new standard.

EARNINGS PER SHARE

12 Months Ended

Jun. 30, 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)


Year Ended June 30,	2016		2015		2014

Net income available for common shareholders (A)	$	16,798	$	12,193	$	22,074

Weighted average outstanding shares of common stock (B)		7,925		8,177		8,299
Dilutive effect of stock-based awards		88		77		100

Common stock and common stock equivalents (C)		8,013		8,254		8,399


Earnings Per Share

Basic (A/B)	$	2.12	$	1.49	$	2.66
Diluted (A/C)	$	2.10	$	1.48	$	2.63

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

OTHER INCOME (EXPENSE), NET

12 Months Ended

Jun. 30, 2016

OTHER INCOME (EXPENSE), NET

NOTE 3 — OTHER INCOME (EXPENSE), NET

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


(In millions)


Year Ended June 30,	2016			2015			2014

Dividends and interest income	$	903		$	766		$	883
Interest expense		(1,243	)		(781	)		(597	)
Net recognized gains on investments		668			716			437
Net losses on derivatives		(443	)		(423	)		(328	)
Net gains (losses) on foreign currency remeasurements		(121	)		335			(165	)
Other		(195	)		(267	)		(169	)

Total	$	(431	)	$	346		$	61

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


(In millions)


Year Ended June 30,	2016			2015			2014

Other-than-temporary impairments of investments	$	(322	)	$	(183	)	$	(106	)
Realized gains from sales of available-for-sale securities		1,376			1,176			776
Realized losses from sales of available-for-sale securities		(386	)		(277	)		(233	)

Total	$	668		$	716		$	437

INVESTMENTS

12 Months Ended

Jun. 30, 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


June 30, 2016

Cash	$	3,501	$	0	$	0		$	3,501	$	3,501	$	0		$	0
Mutual funds		1,012		0		0			1,012		1,012		0			0
Commercial paper		298		0		0			298		298		0			0
Certificates of deposit		1,000		0		0			1,000		868		132			0
U.S. government and agency securities		89,970		245		(11	)		90,204		100		90,104			0
Foreign government bonds		5,502		10		(18	)		5,494		731		4,763			0
Mortgage- and asset-backed securities		4,789		21		(2	)		4,808		0		4,808			0
Corporate notes and bonds		6,509		110		(35	)		6,584		0		6,584			0
Municipal securities		285		57		0			342		0		342			0
Common and preferred stock		5,597		4,452		(236	)		9,813		0		0			9,813
Other investments		590		0		0			590		0		(3	)		593

Total	$	119,053	$	4,895	$	(302	)	$	123,646	$	6,510	$	106,730		$	10,406


(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 June 30, 2016 and 2015, the recorded bases of common and preferred stock that are restricted for more than one year or are not publicly traded were $767 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.

As of June 30, 2016 and 2015, the collateral received under agreements for loaned securities totaled $294 million and $92 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


June 30, 2016

U.S. government and agency securities	$	5,816	$	(3	)	$	432	$	(8	)	$	6,248	$	(11	)
Foreign government bonds		3,452		(3	)		35		(15	)		3,487		(18	)
Mortgage- and asset-backed securities		844		(1	)		322		(1	)		1,166		(2	)
Corporate notes and bonds		1,180		(11	)		788		(24	)		1,968		(35	)
Common and preferred stock		896		(147	)		390		(89	)		1,286		(236	)

Total	$	12,188	$	(165	)	$	1,967	$	(137	)	$	14,155	$	(302	)


	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


June 30, 2016

Due in one year or less	$	54,503	$	54,544
Due after one year through five years		50,683		50,896
Due after five years through 10 years		1,914		1,954
Due after 10 years		1,253		1,336

Total	$	108,353	$	108,730

DERIVATIVES

12 Months Ended

Jun. 30, 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 June 30, 2016 and June 30, 2015, the total notional amounts of these foreign exchange contracts sold were $8.4 billion and $9.8 billion, respectively.

Foreign currency risks related to certain non-U.S. dollar denominated securities are hedged using foreign exchange forward contracts that are designated as fair value hedging instruments. As of June 30, 2016 and June 30, 2015, the total notional amounts of these foreign exchange contracts sold were $5.3 billion for both periods.

Certain options and forwards not designated as hedging instruments are also used to manage the variability in foreign exchange rates on certain balance sheet amounts and to manage other foreign currency exposures. As of June 30, 2016, the total notional amounts of these foreign exchange contracts purchased and sold were $12.0 billion and $11.7 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 June 30, 2016, the total notional amounts of equity contracts purchased and sold for managing market price risk were $1.3 billion and $2.2 billion, respectively, of which $737 million and $986 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 June 30, 2016, the total notional amounts of fixed-interest rate contracts purchased and sold were $328 million and $2.4 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 June 30, 2016 and 2015, the total notional derivative amounts of mortgage contracts purchased were $548 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 June 30, 2016, the total notional amounts of credit contracts purchased and sold were $440 million and $273 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 June 30, 2016, the total notional amounts of commodity contracts purchased and sold were $631 million and $162 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 June 30, 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

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


	June 30, 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	$	33		$	156		$	0		$	(296	)	$	17		$	167		$	0		$	(79	)
Equity contracts		23			0			0			(16	)		148			0			0			(18	)
Interest rate contracts		10			0			0			(25	)		7			0			0			(12	)
Credit contracts		6			0			0			(5	)		16			0			0			(9	)
Commodity contracts		0			0			0			0			0			0			0			0

Total	$	72		$	156		$	0		$	(342	)	$	188		$	167		$	0		$	(118	)


Designated Hedge Derivatives

Foreign exchange contracts	$	1		$	392		$	0		$	(263	)	$	56		$	552		$	0		$	(31	)
Equity contracts		0			0			18			(25	)		0			0			25			(69	)

Total	$	1		$	392		$	18		$	(288	)	$	56		$	552		$	25		$	(100	)

Total gross amounts of derivatives	$	73		$	548		$	18		$	(630	)	$	244		$	719		$	25		$	(218	)

Gross derivatives either offset or subject to an enforceable master netting agreement	$	69		$	548		$	18		$	(630	)	$	126		$	719		$	25		$	(218	)
Gross amounts of derivatives offset in the balance sheet		(74	)		(302	)		(25	)		398			(66	)		(71	)		(25	)		161

Net amounts presented in the balance sheet		(5	)		246			(7	)		(232	)		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			(250	)		0			0			0			(456	)

Net amount	$	(5	)	$	246		$	(7	)	$	(482	)	$	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)


Year Ended June 30,	2016			2015			2014

Foreign Exchange Contracts

Derivatives	$	(797	)	$	741		$	(14	)
Hedged items		838			(725	)		6

Total amount of ineffectiveness	$	41		$	16		$	(8	)


Equity Contracts

Derivatives	$	(76	)	$	(107	)	$	(110	)
Hedged items		76			107			110

Total amount of ineffectiveness	$	0		$	0		$	0

Amount of equity contracts excluded from effectiveness assessment	$	(10	)	$	0		$	(9	)

Cash Flow Hedge Gains (Losses)

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


(In millions)


Year Ended June 30,	2016			2015			2014

Effective Portion

Gains recognized in OCI (net of tax effects of $24, $35 and $2)	$	351		$	1,152		$	63
Gains reclassified from AOCI into revenue	$	625		$	608		$	104

Amount Excluded from Effectiveness Assessment and Ineffective Portion

Losses recognized in other income (expense), net	$	(354	)	$	(346	)	$	(239	)

We estimate that $319 million of net derivative gains included in AOCI as of June 30, 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 fiscal year 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)


Year Ended June 30,	2016			2015			2014

Foreign exchange contracts	$	(55	)	$	(483	)	$	(78	)
Equity contracts		(21	)		(19	)		(64	)
Interest-rate contracts		10			23			24
Credit contracts		(1	)		(1	)		13
Commodity contracts		(87	)		(223	)		71

Total	$	(154	)	$	(703	)	$	(34	)

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.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 30
-Section 45
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6441202&loc=d3e80720-113993

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4C
-URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5624171-113959

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=64837297&loc=d3e41620-113959

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4B
-URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5624163-113959

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5579240-113959

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4D
-URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5624177-113959

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 30
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=35736893&loc=d3e80784-113994

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=64837297&loc=d3e41641-113959

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5579245-113959

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4H
-URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5624258-113959

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 30
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=35736893&loc=d3e80748-113994

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4K
-URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5708775-113959

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4J
-URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5708773-113959

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4A
-URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5618551-113959

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1B
-URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5580258-113959

Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4E
-URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5624181-113959

Reference 17: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 25
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6886632&loc=d3e76258-113986

Reference 18: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=64837297&loc=d3e41638-113959

Reference 19: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(n))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

FAIR VALUE MEASUREMENTS

12 Months Ended

Jun. 30, 2016

FAIR VALUE MEASUREMENTS

NOTE 6 — FAIR VALUE MEASUREMENTS

Assets and Liabilities Measured at Fair Value on a Recurring Basis

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


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


June 30, 2016

Assets

Mutual funds	$	1,012	$	0	$	0	$	1,012	$	0		$	1,012
Commercial paper		0		298		0		298		0			298
Certificates of deposit		0		1,000		0		1,000		0			1,000
U.S. government and agency securities		86,492		3,707		0		90,199		0			90,199
Foreign government bonds		10		5,705		0		5,715		0			5,715
Mortgage- and asset-backed securities		0		4,803		0		4,803		0			4,803
Corporate notes and bonds		0		6,361		1		6,362		0			6,362
Municipal securities		0		342		0		342		0			342
Common and preferred stock		6,918		2,114		18		9,050		0			9,050
Derivatives		6		633		0		639		(401	)		238

Total	$	94,438	$	24,963	$	19	$	119,420	$	(401	)	$	119,019


Liabilities

Derivatives and other	$	17	$	613	$	0	$	630	$	(398	)	$	232


(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)


June 30,	2016			2015

Net fair value of assets measured at fair value on a recurring basis	$	119,019		$	104,369
Cash		3,501			3,679
Common and preferred stock measured at fair value on a nonrecurring basis		767			561
Other investments measured at fair value on a nonrecurring basis		593			589
Less derivative net assets classified as other current assets		(246	)		(648	)
Other		12			4

Recorded basis of investment components	$	123,646		$	108,554

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

During fiscal year 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.

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.

PROPERTY AND EQUIPMENT

12 Months Ended

Jun. 30, 2016

PROPERTY AND EQUIPMENT

NOTE 8 — PROPERTY AND EQUIPMENT

The components of property and equipment were as follows:


(In millions)


June 30,	2016			2015

Land	$	824		$	769
Buildings and improvements		12,393			10,800
Leasehold improvements		3,659			3,577
Computer equipment and software		17,391			13,612
Furniture and equipment		3,889			3,579

Total, at cost		38,156			32,337
Accumulated depreciation		(19,800	)		(17,606	)

Total, net	$	18,356		$	14,731

During fiscal years 2016, 2015, and 2014, depreciation expense was $4.9 billion, $4.1 billion, and $3.4 billion, respectively.

BUSINESS COMBINATIONS

12 Months Ended

Jun. 30, 2016

BUSINESS COMBINATIONS

NOTE 9 — BUSINESS COMBINATIONS

Mojang Synergies AB

On November 6, 2014, we acquired Mojang Synergies AB (“Mojang”), the Swedish video game developer of the Minecraft gaming franchise, for $2.5 billion in cash, net of cash acquired. The addition of Minecraft and its community enhances our gaming portfolio across Windows, Xbox, and other ecosystems besides our own. 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.

Nokia’s Devices and Services Business

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

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


(In millions)


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

Total purchase price	$	9,442

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

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

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


(In millions)	Amount		Weighted Average Life


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

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

During the fourth quarter of fiscal year 2016, we recorded $630 million of intangible and fixed asset impairment charges, and during the fourth quarter of fiscal year 2015, we recorded $7.5 billion of goodwill and asset impairment charges. The impairment charges for both periods related to our phone business. These costs are included in impairment, integration, and restructuring expenses on our consolidated income statement. See Note 10 – Goodwill and Note 11 – Intangible Assets for additional details.

In May 2016, we announced an agreement to sell our entry-level feature phone assets for $350 million. The transaction is expected to close in the second half of calendar year 2016, subject to regulatory approvals and other closing conditions.

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

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


(In millions, except per share amounts)


Year Ended June 30,	2014

Revenue	$	96,248
Net income	$	20,234
Diluted earnings per share	$	2.41

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

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

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

Other

During fiscal year 2016, we completed 17 acquisitions for total cash consideration of $1.4 billion. These entities have been included in our consolidated results of operations since their respective acquisition dates.

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

GOODWILL

12 Months Ended

Jun. 30, 2016

GOODWILL

NOTE 10 — GOODWILL

Changes in the carrying amount of goodwill were as follows:


(In millions)	June 30, 2014		Acquisitions		Other			June 30, 2015		Acquisitions		Other			June 30, 2016

Productivity and Business Processes	$	6,116	$	376	$	(183	)	$	6,309	$	443	$	(74	)	$	6,678
Intelligent Cloud		4,631		291		(5	)		4,917		549		1			5,467
More Personal Computing		9,380		1,788		(5,455	)		5,713		100		(86	)		5,727

Total goodwill	$	20,127	$	2,455	$	(5,643	)	$	16,939	$	1,092	$	(159	)	$	17,872

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

Any change in the goodwill amounts resulting from foreign currency translations and purchase accounting adjustments are presented as “Other” in the above table. Also included in “Other” are business dispositions and transfers between business segments due to reorganizations, as applicable. For fiscal year 2015, a $5.1 billion goodwill impairment charge was included in “Other,” as discussed below. This goodwill impairment charge was included in impairment, integration, and restructuring expenses on our consolidated income statement, and reflected in Corporate and Other in our table of operating income (loss) by segment in Note 21 – Segment Information and Geographic Data.

Our accumulated goodwill impairment as of both June 30, 2016 and 2015 was $11.3 billion.

As discussed in Note 21 – Segment Information and Geographic Data, during the first quarter of fiscal year 2016 our chief operating decision maker requested changes in the information that he regularly reviews for purposes of allocating resources and assessing performance. This resulted in a change in our operating segments and reporting units. We allocated goodwill to our new reporting units using a relative fair value approach. In addition, we completed an assessment of any potential goodwill impairment for all reporting units immediately prior to the reallocation and determined that no impairment existed.

Goodwill Impairment

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

No instances of impairment were identified in our May 1, 2016 test.

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

Because our annual test indicated that Phone Hardware’s carrying value exceeded its estimated fair value, a second phase of the goodwill impairment test (“Step 2”) was performed specific to Phone Hardware. Under Step 2, the fair value of all Phone Hardware assets and liabilities were estimated, including tangible assets, existing technology, patent agreements, and contractual arrangements, for the purpose of deriving an estimate of the implied fair value of goodwill. The implied fair value of the goodwill was then compared to the recorded goodwill to determine the amount of the impairment. Assumptions used in measuring the value of these assets and liabilities included the discount rates and royalty rates used in valuing the intangible assets, and consideration of the market environment in valuing the tangible assets.

No other instances of impairment were identified in our May 1, 2015 test.

INTANGIBLE ASSETS

12 Months Ended

Jun. 30, 2016

INTANGIBLE ASSETS

NOTE 11 — INTANGIBLE ASSETS

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


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


June 30,						2016							2015

Technology-based ^(a)	$	5,970	$	(3,648	)	$	2,322	$	5,926	$	(3,149	)	$	2,777
Marketing-related		1,869		(616	)		1,253		1,942		(508	)		1,434
Contract-based		796		(718	)		78		1,192		(710	)		482
Customer-related		465		(385	)		80		492		(350	)		142

Total	$	9,100	$	(5,367	)	$	3,733	$	9,552	$	(4,717	)	$	4,835

(a)	Technology-based intangible assets included $115 million and $116 million as of June 30, 2016 and 2015, respectively, of net carrying amount of software to be sold, leased, or otherwise marketed.

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.

During fiscal year 2016, we recorded impairment charges of $480 million related to intangible assets in the Devices reporting unit within our More Personal Computing segment. In the fourth quarter of fiscal year 2016, we tested these intangible assets for recoverability due to changes in facts and circumstances associated with the shift in strategic direction and reduced profitability expectations for our phone business. Based on the results of our testing, we determined that the carrying value of the intangible assets was not recoverable, and an impairment charge was recorded to the extent that estimated fair value exceeded carrying value. We primarily used the income approach to determine the fair value of the intangible assets and determine the amount of impairment.

During fiscal year 2015, we recorded impairment charges of $2.2 billion related to intangible assets in our previous Phone Hardware reporting unit. Phone Hardware intangible assets are included in the Devices reporting unit under our current segment structure. In the fourth quarter of fiscal year 2015, we tested these intangible assets for recoverability due to changes in facts and circumstances associated with the shift in strategic direction and reduced profitability expectations for Phone Hardware. Based on the results of our testing, we determined that the carrying value of the intangible assets was not recoverable, and an impairment charge was recorded to the extent that estimated fair value exceeded carrying value. We primarily used a relief from royalty income approach to determine the fair value of the intangible assets and determine the amount of impairment.

These intangible assets impairment charges were included in impairment, integration, and restructuring expenses on our consolidated income statement, and reflected in Corporate and Other in our table of operating income (loss) by segment in Note 21 – Segment Information and Geographic Data.

We estimate that we have no significant residual value related to our intangible assets.

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

(In millions)

Amount

Weighted

Average Life

Amount

Weighted

Average Life

Year Ended June 30,

2016

2015

Technology-based

361

4 years

874

5 years

Marketing-related

1 year

543

8 years

Customer-related

3 years

4 years

Total

393

4 years

1,454

6 years

Intangible assets amortization expense was $978 million, $1.3 billion, and $845 million for fiscal years 2016, 2015, and 2014, respectively. Amortization of capitalized software was $69 million, $79 million, and $200 million for fiscal years 2016, 2015, and 2014, respectively.

The following table outlines the estimated future amortization expense related to intangible assets held as of June 30, 2016:


(In millions)


Year Ending June 30,

2017	$	787
2018		677
2019		526
2020		448
2021		379
Thereafter		916

Total	$	3,733

DEBT

12 Months Ended

Jun. 30, 2016

DEBT

NOTE 12 — DEBT

Short-term Debt

As of June 30, 2016, we had $12.9 billion of commercial paper issued and outstanding, with a weighted-average interest rate of 0.43% and maturities ranging from 1 day to 99 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 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 June 30, 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 June 30, 2016, the total carrying value and estimated fair value of our long-term debt were $40.8 billion and $44.0 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 June 30, 2016 and 2015:

Due Date

Face Value

June 30,

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)

1,944

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)

1,944

1,950

3.125%

3.218%

May 2, 2033 ^(b)

611

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

40,949

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. Cash paid for interest on our debt for fiscal years 2016, 2015, and 2014 was $1.1 billion, $620 million, and $509 million, respectively. As of June 30, 2016 and 2015, the aggregate unamortized discount for our long-term debt, including the current portion, was $166 million and $156 million, respectively.

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


(In millions)


Year Ending June 30,

2017	$	0
2018		1,050
2019		4,000
2020		1,500
2021		3,750
Thereafter		30,649

Total	$	40,949

INCOME TAXES

12 Months Ended

Jun. 30, 2016

INCOME TAXES

NOTE 13 — INCOME TAXES

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


(In millions)


Year Ended June 30,	2016		2015		2014

Current Taxes

U.S. federal	$	545	$	3,661	$	3,738
U.S. state and local		136		364		266
Foreign		1,940		2,065		2,073

Current taxes		2,621		6,090		6,077

Deferred Taxes

Deferred taxes		332		224		(331	)

Provision for income taxes	$	2,953	$	6,314	$	5,746

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


(In millions)


Year Ended June 30,	2016			2015		2014

U.S.	$	(325	)	$	7,363	$	7,127
Foreign		20,076			11,144		20,693

Income before income taxes	$	19,751		$	18,507	$	27,820

In fiscal year 2016, income before income taxes included the net impact of U.S. and foreign revenue deferrals related to the sales of Windows 10 of $6.0 billion and $588 million, respectively. In fiscal year 2015, income before income taxes included the net impact of U.S. and foreign impairment, integration, and restructuring expenses relating to our phone business of $1.1 billion and $8.9 billion, respectively.

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



Year Ended June 30,	2016		2015		2014

Federal statutory rate		35.0%		35.0%		35.0%
Effect of:
Foreign earnings taxed at lower rates		(19.4)%		(20.9)%		(17.1)%
Phone nondeductible charges and valuation allowance		1.3%		19.1%		0.9%
Domestic production activities deduction		(0.6)%		(2.4)%		(1.0)%
Excess tax benefits relating to stock-based compensation		(2.0)%		0%		0%
Other reconciling items, net		0.7%		3.3%		2.9%

Effective rate		15.0%		34.1%		20.7%

The reduction from the federal statutory rate is 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. Our foreign regional operating centers, which are taxed at rates lower than the U.S. rate, generated 69%, 73%, and 81% of our foreign income before tax in fiscal years 2016, 2015, and 2014, respectively. In general, other reconciling items consist of interest, U.S. state income taxes, and credits. In fiscal years 2016, 2015, and 2014, there were no individually significant other reconciling items.

The decrease in our effective tax rate for fiscal year 2016 compared to fiscal year 2015 was primarily due to changes in the mix of our income before income taxes between the U.S. and foreign countries, including the net impact of revenue deferrals related to sales of Windows 10, tax benefits from the adoption of the new accounting guidance relating to stock-based compensation, and distributions from foreign affiliates. The fiscal year 2015 effective tax rate included the tax impact of losses in foreign jurisdictions for which we may not realize a tax benefit, primarily as a result of impairment and restructuring charges.

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


(In millions)


June 30,	2016			2015

Deferred Income Tax Assets

Stock-based compensation expense	$	809		$	884
Other expense items		1,609			1,531
Restructuring charges		284			211
Unearned revenue		494			520
Impaired investments		226			257
Loss carryforwards		1,703			1,158
Depreciation and amortization		115			798
Other revenue items		89			56

Deferred income tax assets		5,329			5,415
Less valuation allowance		(2,180	)		(2,265	)

Deferred income tax assets, net of valuation allowance	$	3,149		$	3,150


Deferred Income Tax Liabilities

Foreign earnings	$	(1,242	)	$	(1,280	)
Unrealized gain on investments and debt		(2,102	)		(2,223	)
Depreciation and amortization		(1,008	)		(685	)
Other		(54	)		(29	)

Deferred income tax liabilities		(4,406	)		(4,217	)

Net deferred income tax assets (liabilities)	$	(1,257	)	$	(1,067	)


Reported As

Other long-term assets ^(a)	$	219		$	228
Long-term deferred income tax liabilities ^(a)		(1,476	)		(1,295	)

Net deferred income tax assets (liabilities) ^(a)	$	(1,257	)	$	(1,067	)

(a)	Balances as of June 30, 2015 reflect the impact of the adoption of the new accounting standard in fiscal year 2016 related to balance sheet classification of deferred taxes. See Note 1 – Accounting Policies for additional details.

As of June 30, 2016, we had net operating loss carryforwards of $8.0 billion, including $6.3 billion of foreign net operating loss carryforwards. The valuation allowance disclosed in the table above relates to the foreign net operating loss carryforwards and other net deferred tax assets that may not be realized.

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

As of June 30, 2016, we have not provided deferred U.S. income taxes or foreign withholding taxes on temporary differences of approximately $124.0 billion resulting from earnings for certain non-U.S. subsidiaries which are permanently reinvested outside the U.S. The unrecognized deferred tax liability associated with these temporary differences was approximately $39.3 billion as of June 30, 2016.

Income taxes paid were $3.9 billion, $4.4 billion, and $5.5 billion in fiscal years 2016, 2015, and 2014, respectively.

Tax contingencies and other income tax liabilities were $11.8 billion and $12.1 billion as of June 30, 2016 and 2015, respectively, and are included in other long-term liabilities. This decrease relates primarily to tax credits available for carryover and a partial settlement of the IRS audit for tax years 2007 to 2009, offset by increases relating to intercompany transfer pricing.

Uncertain Tax Positions

Unrecognized tax benefits as of June 30, 2016, 2015, and 2014, were $10.2 billion, $9.6 billion, and $8.7 billion, respectively. If recognized, these tax benefits would affect our effective tax rates for fiscal years 2016, 2015, and 2014, by $8.8 billion, $7.9 billion, and $7.0 billion, respectively.

As of June 30, 2016, 2015, and 2014, we had accrued interest expense related to uncertain tax positions of $1.9 billion, $1.7 billion, and $1.5 billion, respectively, net of federal income tax benefits. Interest expense on unrecognized tax benefits was $163 million, $237 million, and $235 million in fiscal years 2016, 2015, and 2014, respectively, and was included in provision for income taxes.

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


(In millions)


Year Ended June 30,	2016			2015			2014

Balance, beginning of year	$	9,599		$	8,714		$	8,648
Decreases related to settlements		(201	)		(50	)		(583	)
Increases for tax positions related to the current year		1,086			1,091			566
Increases for tax positions related to prior years		115			94			217
Decreases for tax positions related to prior years		(317	)		(144	)		(95	)
Decreases due to lapsed statutes of limitations		(118	)		(106	)		(39	)

Balance, end of year	$	10,164		$	9,599		$	8,714

While we settled a portion of our 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 June 30, 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

12 Months Ended

Jun. 30, 2016

RESTRUCTURING CHARGES

NOTE 14 — RESTRUCTURING CHARGES

Phone Hardware Integration

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

In connection with the Phone Hardware Integration Plan, we incurred total restructuring charges of $1.3 billion, including severance expenses and other reorganization costs, primarily associated with our facilities consolidation and write-downs of certain assets. All restructuring charges incurred under the Phone Hardware Integration Plan 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 eliminated approximately 7,400 positions in fiscal year 2016.

In fiscal year 2015, we incurred restructuring charges of $780 million under the Phone Hardware Restructuring Plan, including severance expenses and other reorganization costs. In fiscal year 2016, we reversed $21 million of previously estimated restructuring charges related to contract termination costs. The actions associated with the Phone Hardware Restructuring Plan were substantially complete as of June 30, 2016, and are expected to be completed by the end of calendar year 2016.

2016 Restructuring

We periodically evaluate how to best deploy the company’s resources. In the fourth quarter of 2016, management approved restructuring plans that would result in job eliminations, primarily across our smartphone hardware business and global sales. In addition to the elimination of 1,850 positions that were announced in May 2016, approximately 2,850 roles globally will be reduced during the year as an extension of the earlier plan, and these actions are expected to be completed by the end of fiscal year 2017.

In connection with the restructuring plans, we incurred restructuring charges of $501 million in fiscal year 2016, including severance expenses and other reorganization costs. We do not expect to incur additional charges for these restructuring plans in subsequent years.

Restructuring charges associated with each of these plans were included in impairment, integration, and restructuring expenses on our consolidated income statement, and reflected in Corporate and Other in our table of operating income (loss) by segment in Note 21– Segment Information and Geographic Data.

Changes in the restructuring liability were as follows:

(In millions)

Severance

Other

^(a)

Total

Restructuring liability as of June 30, 2015

588

249

837

Restructuring charges

372

129

501

Reversal of prior year restructuring charges

(21

)

(21

)

Cash paid

(466

)

(112

)

(578

)

Other

(24

)

(30

)

Restructuring liability as of June 30, 2016

470

239

709

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

UNEARNED REVENUE

12 Months Ended

Jun. 30, 2016

UNEARNED REVENUE

NOTE 15 — UNEARNED REVENUE

Unearned revenue by segment was as follows:


(In millions)


June 30,	2016		2015

Productivity and Business Processes	$	12,482	$	11,643
Intelligent Cloud		11,472		10,346
More Personal Computing		3,246		3,246
Corporate and Other		6,709		83

Total	$	33,909	$	25,318

Revenue from Windows 10 is primarily recognized at the time of billing 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 June 30, 2016, we deferred a net $6.6 billion in revenue related to Windows 10.

The entire disclosure for deferred revenues at the end of the reporting period, and description and amounts of significant changes that occurred during the reporting period. Deferred revenue is a liability as of the balance sheet date related to a revenue producing activity for which revenue has not yet been recognized. Generally, an entity records deferred revenue when it receives consideration from a customer before achieving certain criteria that must be met for revenue to be recognized in conformity with GAAP.

COMMITMENTS

12 Months Ended

Jun. 30, 2016

COMMITMENTS

NOTE 16 — COMMITMENTS

Construction and Operating Lease Commitments

We have committed $2.0 billion for constructing new buildings, building improvements, and leasehold improvements as of June 30, 2016.

We have operating leases for most U.S. and international sales and support offices, research and development facilities, manufacturing facilities, retail stores, and certain equipment. Rental expense for facilities operating leases was $1.0 billion, $989 million, and $874 million, in fiscal years 2016, 2015, and 2014, respectively. Future minimum rental commitments under non-cancellable facilities operating leases in place as of June 30, 2016 are as follows:


(In millions)


Year Ending June 30,

2017	$	961
2018		996
2019		922
2020		833
2021		634
Thereafter		2,118

Total	$	6,464

Other Commitments

On June 11, 2016, we entered into a definitive agreement to acquire LinkedIn Corporation (“LinkedIn”) for $196 per share in an all-cash transaction valued at $26.2 billion, inclusive of LinkedIn’s net cash (the “Merger Agreement”). We will finance the transaction primarily through the issuance of new indebtedness. The Merger Agreement has been unanimously approved by the Boards of Directors of both Microsoft and LinkedIn, and we expect the acquisition will close in the 2016 calendar year, subject to approval by LinkedIn’s shareholders, satisfaction of certain regulatory approvals, and other customary closing conditions. The transaction is expected to accelerate the growth of LinkedIn, as well as Office 365 and Dynamics.

CONTINGENCIES

12 Months Ended

Jun. 30, 2016

CONTINGENCIES

NOTE 17 — 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 the District Court denied.

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 were 54 other patent infringement cases pending against Microsoft as of June 30, 2016.

Antitrust, Unfair Competition, and Overcharge Class Actions

Antitrust and unfair competition class action lawsuits were filed against us in British Columbia, Ontario, and Quebec, Canada. All three have been certified on behalf of Canadian indirect purchasers who acquired licenses for Microsoft operating system software and/or productivity application software between 1998 and 2010.

The trial of the British Columbia action commenced in May 2016. The plaintiffs are expected to file their case in chief in August 2016, setting out claims made, authorities, and evidence in support. A six-month oral hearing is scheduled to commence in September 2017, consisting of cross examination on witness affidavits. The Ontario and Quebec cases are inactive.

Other Antitrust Litigation and Claims

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 June 30, 2016, we accrued aggregate legal liabilities of $521 million in other current 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.

Indemnifications

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

STOCKHOLDERS' EQUITY

12 Months Ended

Jun. 30, 2016

STOCKHOLDERS' EQUITY

NOTE 18 — STOCKHOLDERS’ EQUITY

Shares Outstanding

Shares of common stock outstanding were as follows:


(In millions)


Year Ended June 30,	2016			2015			2014

Balance, beginning of year		8,027			8,239			8,328
Issued		75			83			86
Repurchased		(294	)		(295	)		(175	)

Balance, end of year		7,808			8,027			8,239

Share Repurchases

On September 16, 2013, our Board of Directors approved a share repurchase program authorizing up to $40.0 billion in share repurchases. The share repurchase program became effective on October 1, 2013, has no expiration date, and may be suspended or discontinued at any time without notice. This share repurchase program replaced the share repurchase program that was announced on September 22, 2008 and expired on September 30, 2013. As of June 30, 2016, $7.1 billion remained of our $40.0 billion share repurchase program. All repurchases were made using cash resources.

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


(In millions)	Shares		Amount		Shares		Amount		Shares		Amount


Year Ended June 30,		2016				2015						2014	^(a)

First quarter		89	$	4,000		43	$	2,000		47	$	1,500
Second quarter		66		3,600		43		2,000		53		2,000
Third quarter		69		3,600		116		5,000		47		1,791
Fourth quarter		70		3,600		93		4,209		28		1,118

Total		294	$	14,800		295	$	13,209		175	$	6,409

(a)

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

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

Dividends

In fiscal year 2016, our Board of Directors declared the following dividends:

Declaration Date

Dividend

Per Share

Record Date

Total Amount

Payment Date

(In millions)

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

2,821

June 9, 2016

June 14, 2016

0.36

August 18, 2016

2,811

September 8, 2016

The dividend declared on June 14, 2016 will be paid after the filing date of the 2016 Form 10-K and was included in other current liabilities as of June 30, 2016.

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


Declaration Date	Dividend Per Share		Record Date		Total Amount		Payment Date

					(In millions)

September 16, 2014	$	0.31		November 20, 2014	$	2,547		December 11, 2014
December 3, 2014	$	0.31		February 19, 2015	$	2,532		March 12, 2015
March 10, 2015	$	0.31		May 21, 2015	$	2,496		June 11, 2015
June 9, 2015	$	0.31		August 20, 2015	$	2,475		September 10, 2015

The dividend declared on June 9, 2015 was included in other current liabilities as of June 30, 2015.

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.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section S99
-Paragraph 4
-Subparagraph (SAB Topic 4.E)
-URI http://asc.fasb.org/extlink&oid=27010918&loc=d3e74567-122707

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21484-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(29))
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21488-112644

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(e))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(31))
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 4
-Subparagraph (SAB Topic 4.C)
-URI http://asc.fasb.org/extlink&oid=27012166&loc=d3e187143-122770

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(30))
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(d))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-URI http://asc.fasb.org/extlink&oid=27012166&loc=d3e187085-122770

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 30
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6405834&loc=d3e23285-112656

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Preferred Stock
-URI http://asc.fasb.org/extlink&oid=6521494

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21463-112644

Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21564-112644

ACCUMULATED OTHER COMPREHENSIVE INCOME

ACCUMULATED OTHER COMPREHENSIVE INCOME

12 Months Ended

Jun. 30, 2016

NOTE 19 — ACCUMULATED OTHER COMPREHENSIVE INCOME

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


(In millions)


Year Ended June 30,	2016			2015			2014

Derivatives

Accumulated other comprehensive income balance, beginning of period	$	590		$	31		$	66
Unrealized gains, net of tax effects of $24, $35 and $2		351			1,152			63
Reclassification adjustments for gains included in revenue		(625	)		(608	)		(104	)
Tax expense included in provision for income taxes		36			15			6

Amounts reclassified from accumulated other comprehensive income		(589	)		(593	)		(98	)

Net current period other comprehensive income (loss)		(238	)		559			(35	)

Accumulated other comprehensive income balance, end of period	$	352		$	590		$	31


Investments

Accumulated other comprehensive income balance, beginning of period	$	3,169		$	3,531		$	1,794
Unrealized gains, net of tax effects of $120, $59 and $1,067		219			110			2,053
Reclassification adjustments for gains included in other income (expense), net		(688	)		(728	)		(447	)
Tax expense included in provision for income taxes		241			256			131

Amounts reclassified from accumulated other comprehensive income		(447	)		(472	)		(316	)

Net current period other comprehensive income (loss)		(228	)		(362	)		1,737

Accumulated other comprehensive income balance, end of period	$	2,941		$	3,169		$	3,531


Translation Adjustments and Other

Accumulated other comprehensive income (loss) balance, beginning of period	$	(1,237	)	$	146		$	(117	)
Translation adjustments and other, net of tax effects of $(33), $16 and $12		(519	)		(1,383	)		263

Accumulated other comprehensive income (loss) balance, end of period	$	(1,756	)	$	(1,237	)	$	146

Accumulated other comprehensive income, end of period	$	1,537		$	2,522		$	3,708

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.

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=66004124&loc=d3e689-108580

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=66004124&loc=SL7669619-108580

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=66004124&loc=d3e640-108580

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 17
-URI http://asc.fasb.org/extlink&oid=66004124&loc=d3e716-108580

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 16
-URI http://asc.fasb.org/extlink&oid=66004124&loc=d3e709-108580

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-URI http://asc.fasb.org/extlink&oid=27012166&loc=d3e187085-122770

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=66004124&loc=d3e637-108580

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 14
-URI http://asc.fasb.org/extlink&oid=66004124&loc=d3e681-108580

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Reclassification Adjustments
-URI http://asc.fasb.org/extlink&oid=6522872

EMPLOYEE STOCK AND SAVINGS PLANS

EMPLOYEE STOCK AND SAVINGS PLANS

12 Months Ended

Jun. 30, 2016

NOTE 20 — EMPLOYEE STOCK AND SAVINGS PLANS

We grant stock-based compensation to employees and directors. As of June 30, 2016 an aggregate of 214 million shares were authorized for future grant under our stock plans. Awards that expire or are canceled without delivery of shares generally become available for issuance under the plans. We issue new shares of Microsoft common stock to satisfy exercises and vesting of awards granted under all of our stock plans. We also have an ESPP for all eligible employees.

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


(In millions)


Year Ended June 30,	2016		2015		2014

Stock-based compensation expense	$	2,668	$	2,574	$	2,446
Income tax benefits related to stock-based compensation		882		868		830

Stock Plans

Stock awards entitle the holder to receive shares of Microsoft common stock as the award vests. Stock awards generally vest over a four or five-year service period.

Executive incentive plan

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

Activity for all stock plans

The fair value of stock awards were estimated on the date of grant using the following assumptions:



Year Ended June 30,	2016		2015		2014

Dividends per share (quarterly amounts)	$	0.31 - $ 0.36	$	0.28 - $ 0.31	$	0.23 - $ 0.28
Interest rates		1.1% -1.8%		1.2% - 1.9%		1.3% - 1.8%

During fiscal year 2016, the following activity occurred under our stock plans:


Shares			Weighted Average Grant-Date Fair Value

(In millions)

Stock Awards

Nonvested balance, beginning of year	216		$	32.72
Granted	83		$	41.51
Vested	(85	)	$	30.98
Forfeited	(20	)	$	35.93

Nonvested balance, end of year	194		$	36.92

As of June 30, 2016, there was approximately $4.8 billion of total unrecognized compensation costs related to stock awards. These costs are expected to be recognized over a weighted average period of 3 years. The weighted average grant-date fair value of stock award granted was $41.51, $42.36, and $31.50 for fiscal years 2016, 2015, and 2014, respectively. The fair value of stock awards vested was $3.9 billion, $4.2 billion, and $3.2 billion, for fiscal years 2016, 2015, and 2014, respectively.

Employee Stock Purchase Plan

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


(Shares in millions)


Year Ended June 30,	2016		2015		2014

Shares purchased		15		16		18
Average price per share	$	44.83	$	39.87	$	33.60

As of June 30, 2016, 142 million shares of our common stock were reserved for future issuance through the ESPP.

Savings Plan

We have a savings plan in the U.S. that qualifies under Section 401(k) of the Internal Revenue Code, and a number of savings plans in international locations. Participating U.S. employees may contribute a portion of their salary, subject to certain limitations. Beginning January 2016, we contribute fifty cents for each dollar a participant contributes in this plan, with a maximum employer contribution of 50% of the IRS contribution limit for the calendar year. Prior to January 2016, we contributed fifty cents for each dollar of the first 6% a participant contributed in this plan, with a maximum contribution of the lesser of 3% of a participant’s earnings or 3% of the IRS compensation limit for the calendar year. Matching contributions for all plans were $549 million, $454 million, and $420 million in fiscal years 2016, 2015, and 2014, respectively, and were expensed as contributed.

SEGMENT INFORMATION AND GEOGRAPHIC DATA

12 Months Ended

Jun. 30, 2016

SEGMENT INFORMATION AND GEOGRAPHIC DATA

NOTE 21 — SEGMENT INFORMATION AND GEOGRAPHIC DATA

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 to align to our strategic direction as a productivity and platform company. During the first quarter of fiscal year 2016, our 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 services in our portfolio of productivity, communication, and information services, spanning a variety of devices and platforms. This segment primarily comprises:

•

Office Commercial, including volume licensing and subscriptions to Office 365 commercial for products and services such as 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 Skype, Outlook.com, and OneDrive.

•

Dynamics business solutions, including Dynamics ERP products, Dynamics CRM on-premises, and Dynamics CRM Online.

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

•

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

More Personal Computing

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

•

Windows, including Windows 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 Surface, phones, and 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)


Year Ended June 30,	2016			2015		2014

Revenue

Productivity and Business Processes	$	26,487		$	26,430	$	26,976
Intelligent Cloud		25,042			23,715		21,735
More Personal Computing		40,460			43,160		38,460
Corporate and Other		(6,669	)		275		(338	)

Total revenue	$	85,320		$	93,580	$	86,833


(In millions)


Year Ended June 30,	2016			2015			2014

Operating income (loss)

Productivity and Business Processes	$	12,461		$	13,359		$	14,173
Intelligent Cloud		9,358			9,871			8,446
More Personal Computing		6,142			4,667			5,605
Corporate and Other		(7,779	)		(9,736	)		(465	)

Total operating income	$	20,182		$	18,161		$	27,759

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)


Year Ended June 30,	2016			2015			2014

Impairment, integration and restructuring expenses	$	(1,110	)	$	(10,011	)	$	(127	)
Revenue reconciling amounts and other ^(a)		(6,669	)		275			(338	)

Total Corporate and Other	$	(7,779	)	$	(9,736	)	$	(465	)

(a)

Revenue reconciling amounts and other for fiscal year 2016 primarily consisted of a net $6.6 billion of revenue deferrals related to sales of Windows 10. Revenue reconciling amounts for fiscal year 2015 included a net $303 million of previously deferred net revenue related to sales of bundled products and services (“Bundled Offerings”). Revenue reconciling amounts for fiscal year 2014 included a net $349 million of revenue deferrals related to Bundled Offerings.

No sales to an individual customer or country other than the United States accounted for more than 10% of fiscal year 2016, 2015, or 2014 revenue. Revenue, classified by the major geographic areas in which our customers are located, was as follows:


(In millions)


Year Ended June 30,	2016		2015		2014

United States ^(a)	$	40,578	$	42,941	$	43,474
Other countries		44,742		50,639		43,359

Total	$	85,320	$	93,580	$	86,833

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

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


(In millions)


Year Ended June 30,	2016			2015		2014

Microsoft Office system	$	23,588		$	23,538	$	24,323
Server products and tools		19,177			18,612		17,055
Xbox		9,395			9,121		8,643
Windows PC operating system		8,104	^(a)		14,826		16,856
Advertising		6,098			4,557		4,016
Consulting and product support services		5,641			5,090		4,767
Surface		4,108			3,900		1,883
Phone		3,358			7,702		3,073
Other		5,851			6,234		6,217

Total	$	85,320		$	93,580	$	86,833

(a)	Includes a net $6.6 billion of revenue deferrals related to sales of Windows 10.

Our total commercial cloud revenue, which primarily comprises Office 365 commercial, Azure, Dynamics Online, and other cloud properties, was $9.5 billion, $5.8 billion, and $2.8 billion in fiscal years 2016, 2015, and 2014, respectively. These amounts are included in their respective product categories in the table above.

Assets are not allocated to segments for internal reporting presentations. A portion of amortization and depreciation is included with various other costs in an overhead allocation to each segment; it is impracticable for us to separately identify the amount of amortization and depreciation by segment that is included in the measure of segment profit or loss.

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


(In millions)


June 30,	2016		2015		2014

United States	$	22,819	$	19,562	$	17,653
Luxembourg		6,854		6,879		6,913
Finland		389		1,757		9,840
Other countries		9,899		8,307		5,713

Total	$	39,961	$	36,505	$	40,119

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.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8981-108599

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9038-108599

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 33
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8971-108599

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8595-108599

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8380-108599

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 26
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8844-108599

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 35
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8984-108599

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9031-108599

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9054-108599

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8538-108599

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 29
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8864-108599

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8924-108599

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8906-108599

QUARTERLY INFORMATION (UNAUDITED)

QUARTERLY INFORMATION (UNAUDITED)

12 Months Ended

Jun. 30, 2016

NOTE 22 — QUARTERLY INFORMATION (UNAUDITED)


(In millions, except per share amounts)


Quarter Ended	September 30		December 31		March 31		June 30			Total

Fiscal Year 2016
Revenue ^(a)	$	20,379	$	23,796	$	20,531	$	20,614		$	85,320
Gross margin		13,172		13,924		12,809		12,635			52,540
Operating income		5,793		6,026		5,283		3,080			20,182
Net income		4,902		5,018		3,756		3,122	^(b)		16,798	^(b)
Basic earnings per share		0.61		0.63		0.48		0.40			2.12
Diluted earnings per share		0.61		0.62		0.47		0.39	^(b)		2.10	^(b)


Fiscal Year 2015

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

(a)	Reflects the impact of the net revenue deferral from Windows 10 of $1.3 billion, $1.7 billion, $1.6 billion, and $2.0 billion, for the first, second, third, and fourth quarter of fiscal year 2016, respectively, and $6.6 billion for fiscal year 2016.

(b)	Includes $630 million of asset impairment charges related to our phone business, and $480 million of restructuring charges associated with our 2016 restructuring plans, which together decreased net income and diluted EPS by $895 million and $0.11, respectively.

(c)

Includes $7.5 billion of goodwill and asset impairment charges related to our phone business, and $940 million of integration and restructuring expenses, primarily associated with our Phone Hardware Restructuring Plan, which together decreased net income and diluted EPS by $8.3 billion and $1.02, respectively.

(d)

Includes $7.5 billion of goodwill and asset impairment charges related to our phone business, and $2.5 billion of integration and restructuring expenses, primarily associated with our Phone Hardware Integration Plan and Phone Hardware Restructuring Plan, which together decreased net income and diluted EPS by $9.5 billion and $1.15, respectively.

ACCOUNTING POLICIES (Policies)

12 Months Ended

Jun. 30, 2016

Accounting Principles

Accounting Principles

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

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

Segment Information

Segment Information

Estimates and Assumptions

Estimates and Assumptions

Foreign Currencies

Foreign Currencies

Product Revenue and Service and Other Revenue

Product Revenue and Service and Other Revenue

Revenue Recognition

Revenue Recognition

Cost of Revenue

Cost of Revenue

Product Warranty

Product Warranty

Research and Development

Research and Development

Sales and Marketing

Sales and Marketing

Stock-Based Compensation

Stock-Based Compensation

Income Taxes

Income Taxes

Fair Value Measurements

Fair Value Measurements

•

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

Investments

Investments

Derivatives

Derivatives

Allowance for Doubtful Accounts

Allowance for Doubtful Accounts


(In millions)


Year Ended June 30,	2016			2015			2014

Balance, beginning of period	$	335		$	301		$	336
Charged to costs and other		146			77			16
Write-offs		(55	)		(43	)		(51	)

Balance, end of period	$	426		$	335		$	301

Inventories

Property and Equipment

Property and Equipment

Recent Accounting Guidance

Goodwill

Intangible Assets

Intangible Assets

Recent Accounting Guidance

Recently adopted accounting guidance

Improvements to Employee Share-Based Payment Accounting

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 $402 million for the year ended June 30, 2016.

Balance Sheet Classification of Deferred Taxes


(In millions)	June 30, 2015


		As adjusted		As reported

Balance sheets:

Current deferred income tax assets	$	0	$	1,915
Other long-term assets	$	3,117	$	2,953
Other current liabilities	$	6,555	$	6,766
Long-term deferred income tax liabilities	$	1,295	$	2,835

Recent accounting guidance not yet adopted

Financial Instruments – Credit Losses

Leases

Financial Instruments – Recognition, Measurement, Presentation, and Disclosure

Revenue from Contracts with Customers

We currently believe that the net change in Windows 10 revenue from period to period is indicative of the net change in revenue we expect from the adoption of the new standard.

Earnings Per Share Policy

ACCOUNTING POLICIES (Tables)

12 Months Ended

Jun. 30, 2016

Allowance for Doubtful Accounts

Activity in the allowance for doubtful accounts was as follows:


(In millions)


Year Ended June 30,	2016			2015			2014

Balance, beginning of period	$	335		$	301		$	336
Charged to costs and other		146			77			16
Write-offs		(55	)		(43	)		(51	)

Balance, end of period	$	426		$	335		$	301

Adoption of New Standard Impact on Previously Reported Results

Adoption of the new standard impacted our previously reported results as follows:


(In millions)	June 30, 2015


		As adjusted		As reported

Balance sheets:

Current deferred income tax assets	$	0	$	1,915
Other long-term assets	$	3,117	$	2,953
Other current liabilities	$	6,555	$	6,766
Long-term deferred income tax liabilities	$	1,295	$	2,835

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.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=64853466&loc=d3e22580-107794

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Direct Effects of a Change in Accounting Principle
-URI http://asc.fasb.org/extlink&oid=66092750

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Indirect Effects of a Change in Accounting Principle
-URI http://asc.fasb.org/extlink&oid=6515603

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 270
-SubTopic 10
-Section 45
-Paragraph 13
-URI http://asc.fasb.org/extlink&oid=68064558&loc=d3e765-108305

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Accounting Change
-URI http://asc.fasb.org/extlink&oid=6503790

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=64853466&loc=d3e22499-107794

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 270
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.10-01.(b)(6))
-URI http://asc.fasb.org/extlink&oid=27015980&loc=d3e46468-122699

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=64853466&loc=d3e22583-107794

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Change in Accounting Principle
-URI http://asc.fasb.org/extlink&oid=6507316

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 270
-SubTopic 10
-Section 45
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=68064558&loc=d3e725-108305

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Retrospective Application
-URI http://asc.fasb.org/extlink&oid=6523989

Components of Other Income (Expense), Net

OTHER INCOME (EXPENSE), NET (Tables)

12 Months Ended

Jun. 30, 2016

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


(In millions)


Year Ended June 30,	2016			2015			2014

Dividends and interest income	$	903		$	766		$	883
Interest expense		(1,243	)		(781	)		(597	)
Net recognized gains on investments		668			716			437
Net losses on derivatives		(443	)		(423	)		(328	)
Net gains (losses) on foreign currency remeasurements		(121	)		335			(165	)
Other		(195	)		(267	)		(169	)

Total	$	(431	)	$	346		$	61

Net Recognized Gains (Losses) on Investments

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


(In millions)


Year Ended June 30,	2016			2015			2014

Other-than-temporary impairments of investments	$	(322	)	$	(183	)	$	(106	)
Realized gains from sales of available-for-sale securities		1,376			1,176			776
Realized losses from sales of available-for-sale securities		(386	)		(277	)		(233	)

Total	$	668		$	716		$	437

INVESTMENTS (Tables)

12 Months Ended

Jun. 30, 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


June 30, 2016

Cash	$	3,501	$	0	$	0		$	3,501	$	3,501	$	0		$	0
Mutual funds		1,012		0		0			1,012		1,012		0			0
Commercial paper		298		0		0			298		298		0			0
Certificates of deposit		1,000		0		0			1,000		868		132			0
U.S. government and agency securities		89,970		245		(11	)		90,204		100		90,104			0
Foreign government bonds		5,502		10		(18	)		5,494		731		4,763			0
Mortgage- and asset-backed securities		4,789		21		(2	)		4,808		0		4,808			0
Corporate notes and bonds		6,509		110		(35	)		6,584		0		6,584			0
Municipal securities		285		57		0			342		0		342			0
Common and preferred stock		5,597		4,452		(236	)		9,813		0		0			9,813
Other investments		590		0		0			590		0		(3	)		593

Total	$	119,053	$	4,895	$	(302	)	$	123,646	$	6,510	$	106,730		$	10,406


(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


June 30, 2016

U.S. government and agency securities	$	5,816	$	(3	)	$	432	$	(8	)	$	6,248	$	(11	)
Foreign government bonds		3,452		(3	)		35		(15	)		3,487		(18	)
Mortgage- and asset-backed securities		844		(1	)		322		(1	)		1,166		(2	)
Corporate notes and bonds		1,180		(11	)		788		(24	)		1,968		(35	)
Common and preferred stock		896		(147	)		390		(89	)		1,286		(236	)

Total	$	12,188	$	(165	)	$	1,967	$	(137	)	$	14,155	$	(302	)


	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


June 30, 2016

Due in one year or less	$	54,503	$	54,544
Due after one year through five years		50,683		50,896
Due after five years through 10 years		1,914		1,954
Due after 10 years		1,253		1,336

Total	$	108,353	$	108,730

DERIVATIVES (Tables)

12 Months Ended

Jun. 30, 2016

Fair Values of Derivative Instruments


	June 30, 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	$	33		$	156		$	0		$	(296	)	$	17		$	167		$	0		$	(79	)
Equity contracts		23			0			0			(16	)		148			0			0			(18	)
Interest rate contracts		10			0			0			(25	)		7			0			0			(12	)
Credit contracts		6			0			0			(5	)		16			0			0			(9	)
Commodity contracts		0			0			0			0			0			0			0			0

Total	$	72		$	156		$	0		$	(342	)	$	188		$	167		$	0		$	(118	)


Designated Hedge Derivatives

Foreign exchange contracts	$	1		$	392		$	0		$	(263	)	$	56		$	552		$	0		$	(31	)
Equity contracts		0			0			18			(25	)		0			0			25			(69	)

Total	$	1		$	392		$	18		$	(288	)	$	56		$	552		$	25		$	(100	)

Total gross amounts of derivatives	$	73		$	548		$	18		$	(630	)	$	244		$	719		$	25		$	(218	)

Gross derivatives either offset or subject to an enforceable master netting agreement	$	69		$	548		$	18		$	(630	)	$	126		$	719		$	25		$	(218	)
Gross amounts of derivatives offset in the balance sheet		(74	)		(302	)		(25	)		398			(66	)		(71	)		(25	)		161

Net amounts presented in the balance sheet		(5	)		246			(7	)		(232	)		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			(250	)		0			0			0			(456	)

Net amount	$	(5	)	$	246		$	(7	)	$	(482	)	$	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)


Year Ended June 30,	2016			2015			2014

Foreign Exchange Contracts

Derivatives	$	(797	)	$	741		$	(14	)
Hedged items		838			(725	)		6

Total amount of ineffectiveness	$	41		$	16		$	(8	)


Equity Contracts

Derivatives	$	(76	)	$	(107	)	$	(110	)
Hedged items		76			107			110

Total amount of ineffectiveness	$	0		$	0		$	0

Amount of equity contracts excluded from effectiveness assessment	$	(10	)	$	0		$	(9	)

Cash flow hedging

Gains (Losses) on Derivative Instruments

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


(In millions)


Year Ended June 30,	2016			2015			2014

Effective Portion

Gains recognized in OCI (net of tax effects of $24, $35 and $2)	$	351		$	1,152		$	63
Gains reclassified from AOCI into revenue	$	625		$	608		$	104

Amount Excluded from Effectiveness Assessment and Ineffective Portion

Losses recognized in other income (expense), net	$	(354	)	$	(346	)	$	(239	)

Non-designated Hedge Derivatives

Gains (Losses) on Derivative Instruments


(In millions)


Year Ended June 30,	2016			2015			2014

Foreign exchange contracts	$	(55	)	$	(483	)	$	(78	)
Equity contracts		(21	)		(19	)		(64	)
Interest-rate contracts		10			23			24
Credit contracts		(1	)		(1	)		13
Commodity contracts		(87	)		(223	)		71

Total	$	(154	)	$	(703	)	$	(34	)

FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Jun. 30, 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


June 30, 2016

Assets

Mutual funds	$	1,012	$	0	$	0	$	1,012	$	0		$	1,012
Commercial paper		0		298		0		298		0			298
Certificates of deposit		0		1,000		0		1,000		0			1,000
U.S. government and agency securities		86,492		3,707		0		90,199		0			90,199
Foreign government bonds		10		5,705		0		5,715		0			5,715
Mortgage- and asset-backed securities		0		4,803		0		4,803		0			4,803
Corporate notes and bonds		0		6,361		1		6,362		0			6,362
Municipal securities		0		342		0		342		0			342
Common and preferred stock		6,918		2,114		18		9,050		0			9,050
Derivatives		6		633		0		639		(401	)		238

Total	$	94,438	$	24,963	$	19	$	119,420	$	(401	)	$	119,019


Liabilities

Derivatives and other	$	17	$	613	$	0	$	630	$	(398	)	$	232


(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)


June 30,	2016			2015

Net fair value of assets measured at fair value on a recurring basis	$	119,019		$	104,369
Cash		3,501			3,679
Common and preferred stock measured at fair value on a nonrecurring basis		767			561
Other investments measured at fair value on a nonrecurring basis		593			589
Less derivative net assets classified as other current assets		(246	)		(648	)
Other		12			4

Recorded basis of investment components	$	123,646		$	108,554

INVENTORIES (Tables)

12 Months Ended

Jun. 30, 2016

Components of Inventories

The components of inventories were as follows:


(In millions)


June 30,	2016		2015

Raw materials	$	612	$	1,100
Work in process		158		202
Finished goods		1,481		1,600

Total	$	2,251	$	2,902

PROPERTY AND EQUIPMENT (Tables)

12 Months Ended

Jun. 30, 2016

Components of Property and Equipment

The components of property and equipment were as follows:


(In millions)


June 30,	2016			2015

Land	$	824		$	769
Buildings and improvements		12,393			10,800
Leasehold improvements		3,659			3,577
Computer equipment and software		17,391			13,612
Furniture and equipment		3,889			3,579

Total, at cost		38,156			32,337
Accumulated depreciation		(19,800	)		(17,606	)

Total, net	$	18,356		$	14,731

BUSINESS COMBINATIONS (Tables) - Nokia Devices And Services Business

12 Months Ended

Jun. 30, 2016

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

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


(In millions)


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

Total purchase price	$	9,442

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

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

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

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


(In millions, except per share amounts)


Year Ended June 30,	2014

Revenue	$	96,248
Net income	$	20,234
Diluted earnings per share	$	2.41

INTANGIBLE ASSETS (Tables)

12 Months Ended

Jun. 30, 2016

Acquired Intangible Assets

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

(In millions)

Amount

Weighted

Average Life

Amount

Weighted

Average Life

Year Ended June 30,

2016

2015

Technology-based

361

4 years

874

5 years

Marketing-related

1 year

543

8 years

Customer-related

3 years

4 years

Total

393

4 years

1,454

6 years

Finite-Lived Intangible Assets

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


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


June 30,						2016							2015

Technology-based ^(a)	$	5,970	$	(3,648	)	$	2,322	$	5,926	$	(3,149	)	$	2,777
Marketing-related		1,869		(616	)		1,253		1,942		(508	)		1,434
Contract-based		796		(718	)		78		1,192		(710	)		482
Customer-related		465		(385	)		80		492		(350	)		142

Total	$	9,100	$	(5,367	)	$	3,733	$	9,552	$	(4,717	)	$	4,835

(a)	Technology-based intangible assets included $115 million and $116 million as of June 30, 2016 and 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 June 30, 2016:


(In millions)


Year Ending June 30,

2017	$	787
2018		677
2019		526
2020		448
2021		379
Thereafter		916

Total	$	3,733

Nokia Devices And Services Business

Acquired Intangible Assets

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


(In millions)	Amount		Weighted Average Life


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

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

GOODWILL (Tables)

12 Months Ended

Jun. 30, 2016

Carrying Amount of Goodwill

Changes in the carrying amount of goodwill were as follows:


(In millions)	June 30, 2014		Acquisitions		Other			June 30, 2015		Acquisitions		Other			June 30, 2016

Productivity and Business Processes	$	6,116	$	376	$	(183	)	$	6,309	$	443	$	(74	)	$	6,678
Intelligent Cloud		4,631		291		(5	)		4,917		549		1			5,467
More Personal Computing		9,380		1,788		(5,455	)		5,713		100		(86	)		5,727

Total goodwill	$	20,127	$	2,455	$	(5,643	)	$	16,939	$	1,092	$	(159	)	$	17,872

DEBT (Tables)

12 Months Ended

Jun. 30, 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 June 30, 2016 and 2015:

Due Date

Face Value

June 30,

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)

1,944

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)

1,944

1,950

3.125%

3.218%

May 2, 2033 ^(b)

611

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

40,949

30,463

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

(b)	Euro-denominated debt securities.

*	Not applicable

Maturities of Long-term Debt

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


(In millions)


Year Ending June 30,

2017	$	0
2018		1,050
2019		4,000
2020		1,500
2021		3,750
Thereafter		30,649

Total	$	40,949

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.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-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
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=64930739&loc=d3e28878-108400

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21538-112644

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=64930785&loc=d3e28541-108399

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=64930785&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

Provision for Income Taxes

INCOME TAXES (Tables)

12 Months Ended

Jun. 30, 2016

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


(In millions)


Year Ended June 30,	2016		2015		2014

Current Taxes

U.S. federal	$	545	$	3,661	$	3,738
U.S. state and local		136		364		266
Foreign		1,940		2,065		2,073

Current taxes		2,621		6,090		6,077

Deferred Taxes

Deferred taxes		332		224		(331	)

Provision for income taxes	$	2,953	$	6,314	$	5,746

Income (Loss) Before Income Taxes

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


(In millions)


Year Ended June 30,	2016			2015		2014

U.S.	$	(325	)	$	7,363	$	7,127
Foreign		20,076			11,144		20,693

Income before income taxes	$	19,751		$	18,507	$	27,820

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

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



Year Ended June 30,	2016		2015		2014

Federal statutory rate		35.0%		35.0%		35.0%
Effect of:
Foreign earnings taxed at lower rates		(19.4)%		(20.9)%		(17.1)%
Phone nondeductible charges and valuation allowance		1.3%		19.1%		0.9%
Domestic production activities deduction		(0.6)%		(2.4)%		(1.0)%
Excess tax benefits relating to stock-based compensation		(2.0)%		0%		0%
Other reconciling items, net		0.7%		3.3%		2.9%

Effective rate		15.0%		34.1%		20.7%

Deferred Income Tax Assets and Liabilities

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


(In millions)


June 30,	2016			2015

Deferred Income Tax Assets

Stock-based compensation expense	$	809		$	884
Other expense items		1,609			1,531
Restructuring charges		284			211
Unearned revenue		494			520
Impaired investments		226			257
Loss carryforwards		1,703			1,158
Depreciation and amortization		115			798
Other revenue items		89			56

Deferred income tax assets		5,329			5,415
Less valuation allowance		(2,180	)		(2,265	)

Deferred income tax assets, net of valuation allowance	$	3,149		$	3,150


Deferred Income Tax Liabilities

Foreign earnings	$	(1,242	)	$	(1,280	)
Unrealized gain on investments and debt		(2,102	)		(2,223	)
Depreciation and amortization		(1,008	)		(685	)
Other		(54	)		(29	)

Deferred income tax liabilities		(4,406	)		(4,217	)

Net deferred income tax assets (liabilities)	$	(1,257	)	$	(1,067	)


Reported As

Other long-term assets ^(a)	$	219		$	228
Long-term deferred income tax liabilities ^(a)		(1,476	)		(1,295	)

Net deferred income tax assets (liabilities) ^(a)	$	(1,257	)	$	(1,067	)

(a)	Balances as of June 30, 2015 reflect the impact of the adoption of the new accounting standard in fiscal year 2016 related to balance sheet classification of deferred taxes. See Note 1 – Accounting Policies for additional details.

Changes in Unrecognized Tax Benefits

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


(In millions)


Year Ended June 30,	2016			2015			2014

Balance, beginning of year	$	9,599		$	8,714		$	8,648
Decreases related to settlements		(201	)		(50	)		(583	)
Increases for tax positions related to the current year		1,086			1,091			566
Increases for tax positions related to prior years		115			94			217
Decreases for tax positions related to prior years		(317	)		(144	)		(95	)
Decreases due to lapsed statutes of limitations		(118	)		(106	)		(39	)

Balance, end of year	$	10,164		$	9,599		$	8,714

RESTRUCTURING CHARGES (Tables)

12 Months Ended

Jun. 30, 2016

Changes in Restructuring Liability

Changes in the restructuring liability were as follows:

(In millions)

Severance

Other

^(a)

Total

Restructuring liability as of June 30, 2015

588

249

837

Restructuring charges

372

129

501

Reversal of prior year restructuring charges

(21

)

(21

)

Cash paid

(466

)

(112

)

(578

)

Other

(24

)

(30

)

Restructuring liability as of June 30, 2016

470

239

709

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

STOCKHOLDERS' EQUITY (Tables)

12 Months Ended

Jun. 30, 2016

Shares of Common Stock Outstanding

Shares of common stock outstanding were as follows:


(In millions)


Year Ended June 30,	2016			2015			2014

Balance, beginning of year		8,027			8,239			8,328
Issued		75			83			86
Repurchased		(294	)		(295	)		(175	)

Balance, end of year		7,808			8,027			8,239

Share Repurchases

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


(In millions)	Shares		Amount		Shares		Amount		Shares		Amount


Year Ended June 30,		2016				2015						2014	^(a)

First quarter		89	$	4,000		43	$	2,000		47	$	1,500
Second quarter		66		3,600		43		2,000		53		2,000
Third quarter		69		3,600		116		5,000		47		1,791
Fourth quarter		70		3,600		93		4,209		28		1,118

Total		294	$	14,800		295	$	13,209		175	$	6,409

(a)

Dividends Declared

In fiscal year 2016, our Board of Directors declared the following dividends:

Declaration Date

Dividend

Per Share

Record Date

Total Amount

Payment Date

(In millions)

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

2,821

June 9, 2016

June 14, 2016

0.36

August 18, 2016

2,811

September 8, 2016

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


Declaration Date	Dividend Per Share		Record Date		Total Amount		Payment Date

					(In millions)

September 16, 2014	$	0.31		November 20, 2014	$	2,547		December 11, 2014
December 3, 2014	$	0.31		February 19, 2015	$	2,532		March 12, 2015
March 10, 2015	$	0.31		May 21, 2015	$	2,496		June 11, 2015
June 9, 2015	$	0.31		August 20, 2015	$	2,475		September 10, 2015

ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables)

12 Months Ended

Jun. 30, 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)


Year Ended June 30,	2016			2015			2014

Derivatives

Accumulated other comprehensive income balance, beginning of period	$	590		$	31		$	66
Unrealized gains, net of tax effects of $24, $35 and $2		351			1,152			63
Reclassification adjustments for gains included in revenue		(625	)		(608	)		(104	)
Tax expense included in provision for income taxes		36			15			6

Amounts reclassified from accumulated other comprehensive income		(589	)		(593	)		(98	)

Net current period other comprehensive income (loss)		(238	)		559			(35	)

Accumulated other comprehensive income balance, end of period	$	352		$	590		$	31


Investments

Accumulated other comprehensive income balance, beginning of period	$	3,169		$	3,531		$	1,794
Unrealized gains, net of tax effects of $120, $59 and $1,067		219			110			2,053
Reclassification adjustments for gains included in other income (expense), net		(688	)		(728	)		(447	)
Tax expense included in provision for income taxes		241			256			131

Amounts reclassified from accumulated other comprehensive income		(447	)		(472	)		(316	)

Net current period other comprehensive income (loss)		(228	)		(362	)		1,737

Accumulated other comprehensive income balance, end of period	$	2,941		$	3,169		$	3,531


Translation Adjustments and Other

Accumulated other comprehensive income (loss) balance, beginning of period	$	(1,237	)	$	146		$	(117	)
Translation adjustments and other, net of tax effects of $(33), $16 and $12		(519	)		(1,383	)		263

Accumulated other comprehensive income (loss) balance, end of period	$	(1,756	)	$	(1,237	)	$	146

Accumulated other comprehensive income, end of period	$	1,537		$	2,522		$	3,708

EMPLOYEE STOCK AND SAVINGS PLANS (Tables)

12 Months Ended

Jun. 30, 2016

Stock-Based Compensation Expense and Related Income Tax Benefits

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


(In millions)


Year Ended June 30,	2016		2015		2014

Stock-based compensation expense	$	2,668	$	2,574	$	2,446
Income tax benefits related to stock-based compensation		882		868		830

Assumptions Used in Estimating the Fair Value of Stock Award Grants

The fair value of stock awards were estimated on the date of grant using the following assumptions:



Year Ended June 30,	2016		2015		2014

Dividends per share (quarterly amounts)	$	0.31 - $ 0.36	$	0.28 - $ 0.31	$	0.23 - $ 0.28
Interest rates		1.1% -1.8%		1.2% - 1.9%		1.3% - 1.8%

Stock Plan Activity

During fiscal year 2016, the following activity occurred under our stock plans:


Shares			Weighted Average Grant-Date Fair Value

(In millions)

Stock Awards

Nonvested balance, beginning of year	216		$	32.72
Granted	83		$	41.51
Vested	(85	)	$	30.98
Forfeited	(20	)	$	35.93

Nonvested balance, end of year	194		$	36.92

Employee Purchased Shares

Employees purchased the following shares during the periods presented:


(Shares in millions)


Year Ended June 30,	2016		2015		2014

Shares purchased		15		16		18
Average price per share	$	44.83	$	39.87	$	33.60

SEGMENT INFORMATION AND GEOGRAPHIC DATA (Tables)

12 Months Ended

Jun. 30, 2016

Segment Revenue


(In millions)


Year Ended June 30,	2016			2015		2014

Revenue

Productivity and Business Processes	$	26,487		$	26,430	$	26,976
Intelligent Cloud		25,042			23,715		21,735
More Personal Computing		40,460			43,160		38,460
Corporate and Other		(6,669	)		275		(338	)

Total revenue	$	85,320		$	93,580	$	86,833

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


(In millions)


Year Ended June 30,	2016			2015			2014

Operating income (loss)

Productivity and Business Processes	$	12,461		$	13,359		$	14,173
Intelligent Cloud		9,358			9,871			8,446
More Personal Computing		6,142			4,667			5,605
Corporate and Other		(7,779	)		(9,736	)		(465	)

Total operating income	$	20,182		$	18,161		$	27,759

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


(In millions)


Year Ended June 30,	2016			2015			2014

Impairment, integration and restructuring expenses	$	(1,110	)	$	(10,011	)	$	(127	)
Revenue reconciling amounts and other ^(a)		(6,669	)		275			(338	)

Total Corporate and Other	$	(7,779	)	$	(9,736	)	$	(465	)

(a)

Revenue Classified by Major Geographic Areas

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


(In millions)


Year Ended June 30,	2016		2015		2014

United States ^(a)	$	40,578	$	42,941	$	43,474
Other countries		44,742		50,639		43,359

Total	$	85,320	$	93,580	$	86,833

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

Revenue Classified by Significant Product and Service Offerings

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


(In millions)


Year Ended June 30,	2016			2015		2014

Microsoft Office system	$	23,588		$	23,538	$	24,323
Server products and tools		19,177			18,612		17,055
Xbox		9,395			9,121		8,643
Windows PC operating system		8,104	^(a)		14,826		16,856
Advertising		6,098			4,557		4,016
Consulting and product support services		5,641			5,090		4,767
Surface		4,108			3,900		1,883
Phone		3,358			7,702		3,073
Other		5,851			6,234		6,217

Total	$	85,320		$	93,580	$	86,833

(a)	Includes a net $6.6 billion of revenue deferrals related to sales of Windows 10.

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


(In millions)


June 30,	2016		2015		2014

United States	$	22,819	$	19,562	$	17,653
Luxembourg		6,854		6,879		6,913
Finland		389		1,757		9,840
Other countries		9,899		8,307		5,713

Total	$	39,961	$	36,505	$	40,119

QUARTERLY INFORMATION (UNAUDITED) (Tables)

12 Months Ended

Jun. 30, 2016

Quarterly Information (Unaudited)


(In millions, except per share amounts)


Quarter Ended	September 30		December 31		March 31		June 30			Total

Fiscal Year 2016
Revenue ^(a)	$	20,379	$	23,796	$	20,531	$	20,614		$	85,320
Gross margin		13,172		13,924		12,809		12,635			52,540
Operating income		5,793		6,026		5,283		3,080			20,182
Net income		4,902		5,018		3,756		3,122	^(b)		16,798	^(b)
Basic earnings per share		0.61		0.63		0.48		0.40			2.12
Diluted earnings per share		0.61		0.62		0.47		0.39	^(b)		2.10	^(b)


Fiscal Year 2015

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

(a)	Reflects the impact of the net revenue deferral from Windows 10 of $1.3 billion, $1.7 billion, $1.6 billion, and $2.0 billion, for the first, second, third, and fourth quarter of fiscal year 2016, respectively, and $6.6 billion for fiscal year 2016.

(b)	Includes $630 million of asset impairment charges related to our phone business, and $480 million of restructuring charges associated with our 2016 restructuring plans, which together decreased net income and diluted EPS by $895 million and $0.11, respectively.

(c)

(d)

Accounting Policies - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Significant Accounting Policies [Line Items]
Advertising expense	$ 1,600	$ 1,900	$ 2,300
Net cash from operations	33,325	29,668	32,502
Net cash used in financing	(8,393)	(9,668)	(8,665)
Provision (benefit) for income taxes	$ 2,953	$ 6,314	$ 5,746
Lower Limit
Significant Accounting Policies [Line Items]
Estimated useful lives of intangible assets	1 year	1 year	1 year
Upper Limit
Significant Accounting Policies [Line Items]
Estimated useful lives of intangible assets	15 years	15 years	15 years
Adjustments for New Accounting Pronouncement
Significant Accounting Policies [Line Items]
Net cash from operations		$ 588	$ 271
Net cash used in financing		$ (588)	$ (271)
Provision (benefit) for income taxes	$ 402
Software \| Lower Limit
Significant Accounting Policies [Line Items]
Estimated useful lives	3 years	3 years	3 years
Software \| Upper Limit
Significant Accounting Policies [Line Items]
Estimated useful lives	7 years	7 years	7 years
Computer Equipment \| Lower Limit
Significant Accounting Policies [Line Items]
Estimated useful lives	2 years	2 years	2 years
Computer Equipment \| Upper Limit
Significant Accounting Policies [Line Items]
Estimated useful lives	3 years	3 years	3 years
Buildings and Improvements \| Lower Limit
Significant Accounting Policies [Line Items]
Estimated useful lives	5 years	5 years	5 years
Buildings and Improvements \| Upper Limit
Significant Accounting Policies [Line Items]
Estimated useful lives	15 years	15 years	15 years
Leasehold Improvements \| Lower Limit
Significant Accounting Policies [Line Items]
Estimated useful lives	3 years	3 years	3 years
Leasehold Improvements \| Upper Limit
Significant Accounting Policies [Line Items]
Estimated useful lives	20 years	20 years	20 years
Furniture and Fixtures \| Lower Limit
Significant Accounting Policies [Line Items]
Estimated useful lives	1 year	1 year	1 year
Furniture and Fixtures \| Upper Limit
Significant Accounting Policies [Line Items]
Estimated useful lives	10 years	10 years	10 years
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

Allowance for Doubtful Accounts (Detail) - Allowance for doubtful accounts - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Valuation and Qualifying Accounts Disclosure [Line Items]
Balance, beginning of period	$ 335	$ 301	$ 336
Charged to costs and other	146	77	16
Write-offs	(55)	(43)	(51)
Balance, end of period	$ 426	$ 335	$ 301

Adoption of New Standard Impact on Previously Reported Results (Detail) - USD ($)
$ in Millions

Jun. 30, 2016

Jun. 30, 2015

Balance sheets:

Current deferred income tax assets

$ 0

Other current liabilities

$ 3,642

3,117

5,949

6,555

Long-term deferred income tax liabilities

^[1]

$ 1,476

1,295

As reported

Balance sheets:

Current deferred income tax assets

1,915

Other current liabilities

2,953

6,766

Long-term deferred income tax liabilities

$ 2,835

[1]	Balances as of June 30, 2015 reflect the impact of the adoption of the new accounting standard in fiscal year 2016 related to balance sheet classification of deferred taxes. See Note 1 - Accounting Policies for additional details.

Basic and Diluted Earnings Per Share (Detail) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions

3 Months Ended

12 Months Ended

Jun. 30, 2016

Mar. 31, 2016

Dec. 31, 2015

Sep. 30, 2015

Jun. 30, 2015

Mar. 31, 2015

Dec. 31, 2014

Sep. 30, 2014

Jun. 30, 2016

Jun. 30, 2015

Jun. 30, 2014

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

Net income available for common shareholders (A)

$ 3,122

^[1]

$ 3,756

$ 5,018

$ 4,902

$ (3,195)

^[2]

$ 4,985

$ 5,863

$ 4,540

$ 16,798

^[1]

$ 12,193

^[3]

$ 22,074

Weighted average outstanding shares of common stock (B)

7,925

8,177

8,299

Dilutive effect of stock-based awards

100

Common stock and common stock equivalents (C)

8,013

8,254

8,399

Earnings Per Share

Basic (A/B)

$ 0.40

$ 0.48

$ 0.63

$ 0.61

$ (0.40)

$ 0.61

$ 0.71

$ 0.55

$ 2.12

$ 1.49

$ 2.66

Diluted (A/C)

$ 0.39

^[1]

$ 0.47

$ 0.62

$ 0.61

$ (0.40)

^[2]

$ 0.61

$ 0.71

$ 0.54

$ 2.10

^[1]

$ 1.48

^[3]

$ 2.63

[1]	Includes $630 million of asset impairment charges related to our phone business, and $480 million of restructuring charges associated with our 2016 restructuring plans, which together decreased net income and diluted EPS by $895 million and $0.11, respectively.
[2]	Includes $7.5 billion of goodwill and asset impairment charges related to our phone business, and $940 million of integration and restructuring expenses, primarily associated with our Phone Hardware Restructuring Plan, which together decreased net income and diluted EPS by $8.3 billion and $1.02, respectively.
[3]	Includes $7.5 billion of goodwill and asset impairment charges related to our phone business, and $2.5 billion of integration and restructuring expenses, primarily associated with our Phone Hardware Integration Plan and Phone Hardware Restructuring Plan, which together decreased net income and diluted EPS by $9.5 billion and $1.15, respectively.

Components of Other Income (Expense), Net (Detail) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Components of Other Income (Expense) [Line Items]
Dividends and interest income	$ 903	$ 766	$ 883
Interest expense	(1,243)	(781)	(597)
Net recognized gains on investments	668	716	437
Net losses on derivatives	(443)	(423)	(328)
Net gains (losses) on foreign currency remeasurements	(121)	335	(165)
Other	(195)	(267)	(169)
Total	$ (431)	$ 346	$ 61

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.

Net Recognized Gains (Losses) on Investments (Detail) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Gains (Losses) on Investments [Line Items]
Other-than-temporary impairments of investments	$ (322)	$ (183)	$ (106)
Realized gains from sales of available-for-sale securities	1,376	1,176	776
Realized losses from sales of available-for-sale securities	(386)	(277)	(233)
Total	$ 668	$ 716	$ 437

Investment Components, Including Associated Derivatives but Excluding Held to Maturity Investments (Detail) - USD ($) $ in Millions	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Cash, Cash Equivalents and Investments [Line Items]
Cost Basis	$ 119,053	$ 103,647
Unrealized Gains	4,895	5,220
Unrealized Losses	(302)	(313)
Recorded Basis	123,646	108,554
Cash and cash equivalents	6,510	5,595	$ 8,669	$ 3,804
Short-term Investments	106,730	90,931
Equity and Other Investments	10,406	12,028
Cash
Cash, Cash Equivalents and Investments [Line Items]
Cash	3,501	3,679
Unrealized Gains	0	0
Unrealized Losses	0	0
Cash	3,501	3,679
Cash and cash equivalents	3,501	3,679
Short-term Investments	0	0
Equity and Other Investments	0	0
Mutual funds
Cash, Cash Equivalents and Investments [Line Items]
Cost Basis	1,012	1,100
Unrealized Gains	0	0
Unrealized Losses	0	0
Recorded Basis	1,012	1,100
Cash and cash equivalents	1,012	1,100
Short-term Investments	0	0
Equity and Other Investments	0	0
Commercial paper
Cash, Cash Equivalents and Investments [Line Items]
Cost Basis	298	1
Unrealized Gains	0	0
Unrealized Losses	0	0
Recorded Basis	298	1
Cash and cash equivalents	298	1
Short-term Investments	0	0
Equity and Other Investments	0	0
Certificates of deposit
Cash, Cash Equivalents and Investments [Line Items]
Cost Basis	1,000	906
Unrealized Gains	0	0
Unrealized Losses	0	0
Recorded Basis	1,000	906
Cash and cash equivalents	868	776
Short-term Investments	132	130
Equity and Other Investments	0	0
U.S. government and agency securities
Cash, Cash Equivalents and Investments [Line Items]
Cost Basis	89,970	72,843
Unrealized Gains	245	76
Unrealized Losses	(11)	(30)
Recorded Basis	90,204	72,889
Cash and cash equivalents	100	39
Short-term Investments	90,104	72,850
Equity and Other Investments	0	0
Foreign government bonds
Cash, Cash Equivalents and Investments [Line Items]
Cost Basis	5,502	5,477
Unrealized Gains	10	3
Unrealized Losses	(18)	(24)
Recorded Basis	5,494	5,456
Cash and cash equivalents	731	0
Short-term Investments	4,763	5,456
Equity and Other Investments	0	0
Mortgage- and asset-backed securities
Cash, Cash Equivalents and Investments [Line Items]
Cost Basis	4,789	4,899
Unrealized Gains	21	23
Unrealized Losses	(2)	(6)
Recorded Basis	4,808	4,916
Cash and cash equivalents	0	0
Short-term Investments	4,808	4,916
Equity and Other Investments	0	0
Corporate notes and bonds
Cash, Cash Equivalents and Investments [Line Items]
Cost Basis	6,509	7,192
Unrealized Gains	110	97
Unrealized Losses	(35)	(37)
Recorded Basis	6,584	7,252
Cash and cash equivalents	0	0
Short-term Investments	6,584	7,252
Equity and Other Investments	0	0
Municipal securities
Cash, Cash Equivalents and Investments [Line Items]
Cost Basis	285	285
Unrealized Gains	57	35
Unrealized Losses	0	(1)
Recorded Basis	342	319
Cash and cash equivalents	0	0
Short-term Investments	342	319
Equity and Other Investments	0	0
Common and preferred stock
Cash, Cash Equivalents and Investments [Line Items]
Cost Basis	5,597	6,668
Unrealized Gains	4,452	4,986
Unrealized Losses	(236)	(215)
Recorded Basis	9,813	11,439
Cash and cash equivalents	0	0
Short-term Investments	0	0
Equity and Other Investments	9,813	11,439
Other investments
Cash, Cash Equivalents and Investments [Line Items]
Cost Basis	590	597
Unrealized Gains	0	0
Unrealized Losses	0	0
Recorded Basis	590	597
Cash and cash equivalents	0	0
Short-term Investments	(3)	8
Equity and Other Investments	$ 593	$ 589

Investments - Cost Method - Additional Information (Detail) - USD ($) $ in Millions	Jun. 30, 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	$ 767	$ 561

Investments - Secured Borrowings and Loaned Securities - Additional Information (Detail) - USD ($) $ in Millions	Jun. 30, 2016	Jun. 30, 2015
Investment [Line Items]
Collateral received	$ 294	$ 92

Unrealized Losses on Investments (Detail) - USD ($) $ in Millions	Jun. 30, 2016	Jun. 30, 2015
Unrealized Losses on Investments [Line Items]
Less than 12 Months - Fair Value	$ 12,188	$ 18,789
Less than 12 Months - Unrealized Losses	(165)	(236)
12 Months or Greater - Fair Value	1,967	719
12 Months or Greater - Unrealized Losses	(137)	(77)
Total Fair Value	14,155	19,508
Total Unrealized Losses	(302)	(313)
U.S. government and agency securities
Unrealized Losses on Investments [Line Items]
Less than 12 Months - Fair Value	5,816	6,636
Less than 12 Months - Unrealized Losses	(3)	(9)
12 Months or Greater - Fair Value	432	421
12 Months or Greater - Unrealized Losses	(8)	(21)
Total Fair Value	6,248	7,057
Total Unrealized Losses	(11)	(30)
Foreign government bonds
Unrealized Losses on Investments [Line Items]
Less than 12 Months - Fair Value	3,452	4,611
Less than 12 Months - Unrealized Losses	(3)	(12)
12 Months or Greater - Fair Value	35	18
12 Months or Greater - Unrealized Losses	(15)	(12)
Total Fair Value	3,487	4,629
Total Unrealized Losses	(18)	(24)
Mortgage- and asset-backed securities
Unrealized Losses on Investments [Line Items]
Less than 12 Months - Fair Value	844	3,171
Less than 12 Months - Unrealized Losses	(1)	(5)
12 Months or Greater - Fair Value	322	28
12 Months or Greater - Unrealized Losses	(1)	(1)
Total Fair Value	1,166	3,199
Total Unrealized Losses	(2)	(6)
Corporate notes and bonds
Unrealized Losses on Investments [Line Items]
Less than 12 Months - Fair Value	1,180	2,946
Less than 12 Months - Unrealized Losses	(11)	(29)
12 Months or Greater - Fair Value	788	104
12 Months or Greater - Unrealized Losses	(24)	(8)
Total Fair Value	1,968	3,050
Total Unrealized Losses	(35)	(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	896	1,389
Less than 12 Months - Unrealized Losses	(147)	(180)
12 Months or Greater - Fair Value	390	148
12 Months or Greater - Unrealized Losses	(89)	(35)
Total Fair Value	1,286	1,537
Total Unrealized Losses	$ (236)	$ (215)

Debt Investment Maturities (Detail) $ in Millions	Jun. 30, 2016 USD ($)
Cost Basis
Due in one year or less	$ 54,503
Due after one year through five years	50,683
Due after five years through 10 years	1,914
Due after 10 years	1,253
Total	108,353
Estimated Fair Value
Due in one year or less	54,544
Due after one year through five years	50,896
Due after five years through 10 years	1,954
Due after 10 years	1,336
Total	$ 108,730

Derivatives - Additional Information (Detail) - USD ($)	12 Months Ended
Derivatives - Additional Information (Detail) - USD ($)	Jun. 30, 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	$ 319,000,000
Senior Unsecured Obligations
Derivative [Line Items]
Debt instrument credit rating	AAA
Derivatives Sold \| Equity Contracts
Derivative [Line Items]
Notional amounts	$ 2,200,000,000	$ 2,600,000,000
Derivatives Sold \| Designated Hedge Derivatives \| Equity Contracts
Derivative [Line Items]
Notional amounts	986,000,000	1,400,000,000
Derivatives Sold \| Non-designated Hedge Derivatives \| Foreign Exchange Contracts
Derivative [Line Items]
Notional amounts	11,700,000,000	11,000,000,000
Derivatives Sold \| Non-designated Hedge Derivatives \| Interest Rate Contracts
Derivative [Line Items]
Notional amounts	2,400,000,000	3,200,000,000
Derivatives Sold \| Non-designated Hedge Derivatives \| Credit Contracts
Derivative [Line Items]
Notional amounts	273,000,000	430,000,000
Derivatives Sold \| Non-designated Hedge Derivatives \| Commodity Contracts
Derivative [Line Items]
Notional amounts	162,000,000	316,000,000
Derivatives Sold \| Cash flow hedging \| Foreign Exchange Contracts
Derivative [Line Items]
Notional amounts	8,400,000,000	9,800,000,000
Derivatives Sold \| Fair value hedging \| Foreign Exchange Contracts
Derivative [Line Items]
Notional amounts	5,300,000,000	5,300,000,000
Derivatives Purchased \| Equity Contracts
Derivative [Line Items]
Notional amounts	1,300,000,000	2,200,000,000
Derivatives Purchased \| Designated Hedge Derivatives \| Equity Contracts
Derivative [Line Items]
Notional amounts	737,000,000	1,100,000,000
Derivatives Purchased \| Non-designated Hedge Derivatives \| Foreign Exchange Contracts
Derivative [Line Items]
Notional amounts	12,000,000,000	9,700,000,000
Derivatives Purchased \| Non-designated Hedge Derivatives \| Interest Rate Contracts
Derivative [Line Items]
Notional amounts	328,000,000	1,000,000,000
Derivatives Purchased \| Non-designated Hedge Derivatives \| Mortgage-backed securities
Derivative [Line Items]
Notional amounts	548,000,000	812,000,000
Derivatives Purchased \| Non-designated Hedge Derivatives \| Credit Contracts
Derivative [Line Items]
Notional amounts	440,000,000	618,000,000
Derivatives Purchased \| Non-designated Hedge Derivatives \| Commodity Contracts
Derivative [Line Items]
Notional amounts	$ 631,000,000	$ 882,000,000

Fair Values of Derivative Instruments (Detail) - USD ($) $ in Millions	Jun. 30, 2016	Jun. 30, 2015
Short-term Investments
Derivatives, Fair Value [Line Items]
Derivative Assets	$ 73	$ 244
Net amount, assets	(5)	60
Short-term Investments \| Eligible for Offsetting
Derivatives, Fair Value [Line Items]
Derivative Assets	69	126
Gross amounts of derivatives offset in the balance sheet, assets	(74)	(66)
Net amounts presented in the balance sheet, assets	(5)	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	72	188
Short-term Investments \| Non-designated Hedge Derivatives \| Foreign Exchange Contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	33	17
Short-term Investments \| Non-designated Hedge Derivatives \| Equity Contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	23	148
Short-term Investments \| Non-designated Hedge Derivatives \| Interest Rate Contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	10	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	0	0
Short-term Investments \| Designated Hedge Derivatives
Derivatives, Fair Value [Line Items]
Derivative Assets	1	56
Short-term Investments \| Designated Hedge Derivatives \| Foreign Exchange Contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	1	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	548	719
Net amount, assets	246	648
Other Current Assets \| Eligible for Offsetting
Derivatives, Fair Value [Line Items]
Derivative Assets	548	719
Gross amounts of derivatives offset in the balance sheet, assets	(302)	(71)
Net amounts presented in the balance sheet, assets	246	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	156	167
Other Current Assets \| Non-designated Hedge Derivatives \| Foreign Exchange Contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	156	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	392	552
Other Current Assets \| Designated Hedge Derivatives \| Foreign Exchange Contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	392	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	18	25
Net amount, assets	(7)	0
Equity and Other Investments \| Eligible for Offsetting
Derivatives, Fair Value [Line Items]
Derivative Assets	18	25
Gross amounts of derivatives offset in the balance sheet, assets	(25)	(25)
Net amounts presented in the balance sheet, assets	(7)	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	18	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	18	25
Other Current Liabilities
Derivatives, Fair Value [Line Items]
Derivative Liabilities	(630)	(218)
Net amount, liabilities	(482)	(513)
Other Current Liabilities \| Eligible for Offsetting
Derivatives, Fair Value [Line Items]
Derivative Liabilities	(630)	(218)
Gross amounts of derivatives offset in the balance sheet, liabilities	398	161
Net amounts presented in the balance sheet, liabilities	(232)	(57)
Gross amounts of derivatives not offset in the balance sheet, liabilities	0	0
Cash collateral received, liabilities	(250)	(456)
Other Current Liabilities \| Non-designated Hedge Derivatives
Derivatives, Fair Value [Line Items]
Derivative Liabilities	(342)	(118)
Other Current Liabilities \| Non-designated Hedge Derivatives \| Foreign Exchange Contracts
Derivatives, Fair Value [Line Items]
Derivative Liabilities	(296)	(79)
Other Current Liabilities \| Non-designated Hedge Derivatives \| Equity Contracts
Derivatives, Fair Value [Line Items]
Derivative Liabilities	(16)	(18)
Other Current Liabilities \| Non-designated Hedge Derivatives \| Interest Rate Contracts
Derivatives, Fair Value [Line Items]
Derivative Liabilities	(25)	(12)
Other Current Liabilities \| Non-designated Hedge Derivatives \| Credit Contracts
Derivatives, Fair Value [Line Items]
Derivative Liabilities	(5)	(9)
Other Current Liabilities \| Non-designated Hedge Derivatives \| Commodity Contracts
Derivatives, Fair Value [Line Items]
Derivative Liabilities	0	0
Other Current Liabilities \| Designated Hedge Derivatives
Derivatives, Fair Value [Line Items]
Derivative Liabilities	(288)	(100)
Other Current Liabilities \| Designated Hedge Derivatives \| Foreign Exchange Contracts
Derivatives, Fair Value [Line Items]
Derivative Liabilities	(263)	(31)
Other Current Liabilities \| Designated Hedge Derivatives \| Equity Contracts
Derivatives, Fair Value [Line Items]
Derivative Liabilities	$ (25)	$ (69)

Gains (Losses) on Fair Value Hedges and Related Hedged Items (Detail) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Foreign Exchange Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Derivatives	$ (797)	$ 741	$ (14)
Hedged items	838	(725)	6
Total amount of ineffectiveness	41	16	(8)
Equity Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Derivatives	(76)	(107)	(110)
Hedged items	76	107	110
Total amount of ineffectiveness	0	0	0
Amount of equity contracts excluded from effectiveness assessment	$ (10)	$ 0	$ (9)

Gains (Losses) Related to Cash Flow Hedges (Detail) - Designated Hedge Derivatives - Foreign Exchange Contracts - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Effective Portion
Gains recognized in OCI (net of tax effects of $24, $35 and $2)	$ 351	$ 1,152	$ 63
Gains reclassified from AOCI into revenue	625	608	104
Amount Excluded from Effectiveness Assessment and Ineffective Portion
Losses recognized in other income (expense), net	$ (354)	$ (346)	$ (239)

Gains (Losses) Related to Cash Flow Hedges (Parenthetical) (Detail) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Designated Hedge Derivatives \| Foreign Exchange Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Gains recognized in OCI, tax effects	$ 24	$ 35	$ 2

Non-Designated Derivative Gains (Losses) (Detail) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Derivative Instruments, Gain (Loss) [Line Items]
Changes in fair value of derivatives not designated as hedges	$ (154)	$ (703)	$ (34)
Foreign Exchange Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Changes in fair value of derivatives not designated as hedges	(55)	(483)	(78)
Equity Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Changes in fair value of derivatives not designated as hedges	(21)	(19)	(64)
Interest Rate Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Changes in fair value of derivatives not designated as hedges	10	23	24
Credit Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Changes in fair value of derivatives not designated as hedges	(1)	(1)	13
Commodity Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Changes in fair value of derivatives not designated as hedges	$ (87)	$ (223)	$ 71

Reconciliation of Total Assets Measured at Fair Value on Recurring Basis to Balance Sheet Presentation (Detail) - USD ($) $ in Millions	Jun. 30, 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	$ 119,019	$ 104,369
Other assets	12	4
Recorded basis of investment components	123,646	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	(246)	(648)
Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash	3,501	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	767	561
Other investments measured at fair value on a nonrecurring basis	$ 593	$ 589

Components of Inventories (Detail) - USD ($) $ in Millions	Jun. 30, 2016	Jun. 30, 2015
Inventory [Line Items]
Raw materials	$ 612	$ 1,100
Work in process	158	202
Finished goods	1,481	1,600
Total	$ 2,251	$ 2,902

Components of Property and Equipment (Detail) - USD ($) $ in Millions	Jun. 30, 2016	Jun. 30, 2015
Property, Plant and Equipment [Line Items]
Land	$ 824	$ 769
Buildings and improvements	12,393	10,800
Leasehold improvements	3,659	3,577
Computer equipment and software	17,391	13,612
Furniture and equipment	3,889	3,579
Total, at cost	38,156	32,337
Accumulated depreciation	(19,800)	(17,606)
Total, net	$ 18,356	$ 14,731

Business Combinations - Additional Information (Detail)

2 Months Ended

3 Months Ended

12 Months Ended

Nov. 06, 2014

USD ($)

Apr. 25, 2014

USD ($)

Jun. 30, 2014

USD ($)

Jun. 30, 2016

USD ($)

Jun. 30, 2015

USD ($)

Jun. 30, 2014

USD ($)

Jun. 30, 2016

USD ($)

Entity

Jun. 30, 2015

USD ($)

Jun. 30, 2014

USD ($)

May 31, 2016

USD ($)

Weighted-average amortization period

Goodwill acquired

$ 20,127,000,000

$ 17,872,000,000

$ 16,939,000,000

$ 20,127,000,000

$ 17,872,000,000

$ 16,939,000,000

$ 20,127,000,000

4 years

6 years

Nokia Mapping Services License

$ 630,000,000

$ 7,498,000,000

$ 0

License period

4 years

Phone Business

$ 630,000,000

$ 7,498,000,000

Mojang Synergies AB

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

Name of acquired entity

Mojang Synergies AB

Acquisition date

Nov. 06, 2014

$ 2,500,000,000

Goodwill acquired

1,800,000,000

Identifiable intangible assets acquired

$ 928,000,000

Weighted-average amortization period

6 years 3 months 18 days

Nokia Devices And Services Business

Identifiable intangible assets acquired

Name of acquired entity

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

Acquisition date

Apr. 25, 2014

Goodwill acquired

^[1]

$ 5,456,000,000

$ 4,509,000,000

Weighted-average amortization period

8 years

Total purchase price

$ 9,400,000,000

Cash acquired

1,506,000,000

Cash paid to acquire the business

7,100,000,000

Liabilities assumed

200,000,000

Sale of entry-level feature phone assets

$ 350,000,000

Revenue since the Acquisition

2,000,000,000

Operating loss since the Acquisition

$ 692,000,000

Acquisition costs

$ 21,000,000

Gain or loss upon termination of contractual agreement

Nokia Devices And Services Business | Corporate notes and bonds | Nokia

Non-cash transaction to acquire the business

$ 2,100,000,000

Series of Individually Immaterial Business Acquisitions

Cash paid to acquire the business

$ 1,400,000,000

Number of entities acquired | Entity

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

Major Classes of Assets and Liabilities to Which We Allocated the Purchase Price (Detail) - USD ($)
$ in Millions

Jun. 30, 2016

Jun. 30, 2015

Jun. 30, 2014

Apr. 25, 2014

Nokia Devices And Services Business

$ 17,872

$ 16,939

$ 20,127

Cash

$ 1,506

Accounts receivable

^[1]

754

544

Other current assets

936

Property and equipment

981

Intangible assets

4,509

^[2]

5,456

221

Current liabilities

(4,575)

Long-term liabilities

(890)

Total purchase price

$ 9,442

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

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

Acquired Intangible Assets (Detail) - USD ($) $ in Millions		12 Months Ended
Acquired Intangible Assets (Detail) - USD ($) $ in Millions	Apr. 25, 2014	Jun. 30, 2016	Jun. 30, 2015
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted Average Life		4 years	6 years
Technology-based
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted Average Life		4 years	5 years
Customer-related
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted Average Life		3 years	4 years
Nokia Devices And Services Business
Acquired Finite-Lived Intangible Assets [Line Items]
Fair value of intangible assets acquired	$ 4,509
Weighted Average Life	8 years
Nokia Devices And Services Business \| Technology-based
Acquired Finite-Lived Intangible Assets [Line Items]
Fair value of intangible assets acquired	$ 2,493
Weighted Average Life	9 years
Nokia Devices And Services Business \| Contract-based
Acquired Finite-Lived Intangible Assets [Line Items]
Fair value of intangible assets acquired	$ 1,500
Weighted Average Life	9 years
Nokia Devices And Services Business \| Customer-related
Acquired Finite-Lived Intangible Assets [Line Items]
Fair value of intangible assets acquired	$ 359
Weighted Average Life	3 years
Nokia Devices And Services Business \| Marketing-related (trade names)
Acquired Finite-Lived Intangible Assets [Line Items]
Fair value of intangible assets acquired	$ 157
Weighted Average Life	2 years

Supplemental Consolidated Results on Unaudited Pro Forma Basis, as If the Acquisition Had Been Consummated on Beginning of Period (Detail) $ / shares in Units, $ in Millions	12 Months Ended
	Jun. 30, 2014 USD ($) $ / shares
Business Acquisition [Line Items]
Revenue	$ 96,248
Net income	$ 20,234
Diluted earnings per share \| $ / shares	$ 2.41

Carrying Amount of Goodwill (Detail) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Goodwill [Line Items]
Beginning Balance	$ 16,939	$ 20,127
Acquisitions	1,092	2,455
Other	(159)	(5,643)
Ending Balance	17,872	16,939
Productivity and Business Processes
Goodwill [Line Items]
Beginning Balance	6,309	6,116
Acquisitions	443	376
Other	(74)	(183)
Ending Balance	6,678	6,309
Intelligent Cloud
Goodwill [Line Items]
Beginning Balance	4,917	4,631
Acquisitions	549	291
Other	1	(5)
Ending Balance	5,467	4,917
More Personal Computing
Goodwill [Line Items]
Beginning Balance	5,713	9,380
Acquisitions	100	1,788
Other	(86)	(5,455)
Ending Balance	$ 5,727	$ 5,713

Goodwill - Additional Information (Detail) - USD ($)		12 Months Ended
Goodwill - Additional Information (Detail) - USD ($)	May 01, 2016	Jun. 30, 2015	Jun. 30, 2016
Goodwill [Line Items]
Goodwill impairment charge	$ 0
Accumulated goodwill impairment		$ 11,300,000,000	$ 11,300,000,000
Phone Hardware
Goodwill [Line Items]
Goodwill impairment charge		$ 5,100,000,000

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

Jun. 30, 2016

Jun. 30, 2015

$ 9,100

$ 9,552

(5,367)

(4,717)

3,733

4,835

Technology-based

^[1]

5,970

5,926

^[1]

(3,648)

(3,149)

^[1]

2,322

2,777

Marketing-related

1,869

1,942

(616)

(508)

1,253

1,434

Contract-based

796

1,192

(718)

(710)

482

Customer-related

465

492

(385)

(350)

$ 80

$ 142

[1]	Technology-based intangible assets included $115 million and $116 million as of June 30, 2016 and 2015, respectively, of net carrying amount of software to be sold, leased, or otherwise marketed.

Finite-Lived Intangible Assets (Parenthetical) (Detail) - USD ($) $ in Millions	Jun. 30, 2016	Jun. 30, 2015
Technology-based
Finite-Lived Intangible Assets [Line Items]
Net carrying amount of software to be sold, leased, or otherwise marketed	$ 115	$ 116

Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 9,100	$ 9,552
Accumulated Amortization	(5,367)	(4,717)
Intangible assets amortization expense	978	1,300	$ 845
Amortization of capitalized software	69	79	$ 200
Phone Hardware
Finite-Lived Intangible Assets [Line Items]
Impairment charges of intangible assets		2,200
Devices
Finite-Lived Intangible Assets [Line Items]
Impairment charges of intangible assets	$ 480
Restatement Adjustment
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount		(585)
Accumulated Amortization		$ 585

Intangible Assets Acquired (Detail) - USD ($) $ in Millions	12 Months Ended
Intangible Assets Acquired (Detail) - USD ($) $ in Millions	Jun. 30, 2016	Jun. 30, 2015
Acquired Finite-Lived Intangible Assets [Line Items]
Amount	$ 393	$ 1,454
Weighted Average Life	4 years	6 years
Technology-based
Acquired Finite-Lived Intangible Assets [Line Items]
Amount	$ 361	$ 874
Weighted Average Life	4 years	5 years
Marketing-related
Acquired Finite-Lived Intangible Assets [Line Items]
Amount	$ 2	$ 543
Weighted Average Life	1 year	8 years
Customer-related
Acquired Finite-Lived Intangible Assets [Line Items]
Amount	$ 30	$ 37
Weighted Average Life	3 years	4 years

Estimated Future Amortization Expense Related to Intangible Assets (Detail) - USD ($) $ in Millions	Jun. 30, 2016	Jun. 30, 2015
Finite-Lived Intangible Assets [Line Items]
Year Ending June 30, 2017	$ 787
Year Ending June 30, 2018	677
Year Ending June 30, 2019	526
Year Ending June 30, 2020	448
Year Ending June 30, 2021	379
Thereafter	916
Net Carrying Amount	$ 3,733	$ 4,835

Debt - Additional Information (Detail) - USD ($)	12 Months Ended
Debt - Additional Information (Detail) - USD ($)	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Debt Instrument [Line Items]
Commercial paper	$ 12,900,000,000	$ 5,000,000,000
Credit facility, financial covenant	As of June 30, 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	40,800,000,000	30,300,000,000
Long-term debt fair value	44,000,000,000	30,500,000,000
Cash paid for interest	1,100,000,000	620,000,000	$ 509,000,000
Unamortized discount	166,000,000	$ 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	0.43%	0.11%
Commercial paper \| Lower Limit
Debt Instrument [Line Items]
Commercial paper, maturity term	1 day	8 days
Commercial paper \| Upper Limit
Debt Instrument [Line Items]
Commercial paper, maturity term	99 days	63 days

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

12 Months Ended

Jun. 30, 2016

Jun. 30, 2015

Notes 1.625 Percent Due September 25th 2015

$ 40,949

$ 30,463

Sep. 25, 2015

^[1]

$ 1,750

1.625%

Notes 2.5 Percent Due February 8th 2016

1.795%

Feb. 08, 2016

^[1]

$ 750

2.50%

Notes 0.875 Percent Due November 15th 2017

2.642%

Nov. 15, 2017

$ 600

0.875%

Notes 1.0 Percent Due May 1st 2018

1.084%

May 01, 2018

$ 450

1.00%

Notes 1.30 Percent Due November 3rd 2018

1.106%

^[2]

Nov. 03, 2018

^[2]

$ 1,750

^[1]

^[2]

1.30%

Notes 1.625 Percent Due December 6th 2018

^[2]

1.396%

Dec. 06, 2018

$ 1,250

1.625%

Notes 4.2 Percent Due June 1st 2019

1.824%

Jun. 01, 2019

$ 1,000

4.20%

Notes 1.850 Percent Due February 12th 2020

4.379%

Feb. 12, 2020

$ 1,500

1.85%

Notes 3.0 Percent Due October 1st 2020

1.935%

Oct. 01, 2020

$ 1,000

3.00%

Notes 2.0 Percent Due November 3rd 2020

3.137%

^[2]

Nov. 03, 2020

^[2]

$ 2,250

^[1]

^[2]

2.00%

Notes 4.0 Percent Due February 8th 2021

^[2]

2.093%

Feb. 08, 2021

$ 500

4.00%

Notes 2.125 Percent Due December 6th 2021

4.082%

^[3]

Dec. 06, 2021

^[3]

$ 1,944

$ 1,950

^[3]

2.125%

Notes 2.375 Percent Due February 12th 2022

^[3]

2.233%

Feb. 12, 2022

$ 1,500

2.375%

Notes 2.65 Percent Due November 3rd 2022

2.466%

^[2]

Nov. 03, 2022

^[2]

$ 1,000

^[1]

^[2]

2.65%

Notes 2.125 Percent Due November 15th 2022

^[2]

2.717%

Nov. 15, 2022

$ 750

2.125%

Notes 2.375 Percent Due May 1st 2023

2.239%

May 01, 2023

$ 1,000

2.375%

Notes 3.625 Percent Due December 15th 2023

2.465%

Dec. 15, 2023

$ 1,500

3.625%

Notes 2.70 Percent Due February 12th 2025

3.726%

Feb. 12, 2025

$ 2,250

2.70%

Notes 3.125 Percent Due November 3rd 2025

2.772%

^[2]

Nov. 03, 2025

^[2]

$ 3,000

^[1]

^[2]

3.125%

Notes 3.125 Percent Due December 6th 2028

^[2]

3.176%

^[3]

Dec. 06, 2028

^[3]

$ 1,944

$ 1,950

^[3]

3.125%

Notes 2.625 Percent Due May 2nd 2033

^[3]

3.218%

^[3]

May 02, 2033

^[3]

$ 611

$ 613

^[3]

2.625%

Notes 3.50 Percent Due February 12th 2035

^[3]

2.69%

Feb. 12, 2035

$ 1,500

3.50%

Notes 4.2 Percent Due November 3rd 2035

3.604%

^[2]

Nov. 03, 2035

^[2]

$ 1,000

^[1]

^[2]

4.20%

Notes 5.2 Percent Due June 1st 2039

^[2]

4.26%

Jun. 01, 2039

$ 750

5.20%

Notes 4.5 Percent Due October 1st 2040

5.24%

Oct. 01, 2040

$ 1,000

4.50%

Notes 5.3 Percent Due February 8th 2041

4.567%

Feb. 08, 2041

$ 1,000

5.30%

Notes 3.5 Percent Due November 15th 2042

5.361%

Nov. 15, 2042

$ 900

3.50%

Notes 3.750 Percent Due May 1st 2043

3.571%

May 01, 2043

$ 500

3.75%

Notes 4.875 Percent Due December 15th 2043

3.829%

Dec. 15, 2043

$ 500

4.875%

Notes 3.750 Percent Due February 12th 2045

4.918%

Feb. 12, 2045

$ 1,750

3.75%

Notes 4.45 Percent Due November 3rd 2045

3.80%

^[2]

Nov. 03, 2045

^[2]

$ 3,000

^[1]

^[2]

4.45%

Notes 4.0 Percent Due February 12th 2055

^[2]

4.492%

Feb. 12, 2055

$ 2,250

4.00%

Notes 4.75 Percent Due November 3rd 2055

4.063%

^[2]

Nov. 03, 2055

^[2]

$ 1,000

^[1]

^[2]

4.75%

^[2]

4.782%

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

Maturities of Long-term Debt (Detail) - USD ($) $ in Millions	Jun. 30, 2016	Jun. 30, 2015
Debt Instrument [Line Items]
Year Ending June 30, 2017	$ 0
Year Ending June 30, 2018	1,050
Year Ending June 30, 2019	4,000
Year Ending June 30, 2020	1,500
Year Ending June 30, 2021	3,750
Thereafter	30,649
Total	$ 40,949	$ 30,463

Provision for Income Taxes (Detail) - USD ($) $ in Millions	12 Months Ended
Provision for Income Taxes (Detail) - USD ($) $ in Millions	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Current Taxes
U.S. federal	$ 545	$ 3,661	$ 3,738
U.S. state and local	136	364	266
Foreign	1,940	2,065	2,073
Current taxes	2,621	6,090	6,077
Deferred Taxes
Deferred taxes	332	224	(331)
Provision for income taxes	$ 2,953	$ 6,314	$ 5,746

Income (Loss) Before Income Taxes (Detail) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Schedule of Components of Income Before Income Tax Expense (Benefit) [Line Items]
U.S.	$ (325)	$ 7,363	$ 7,127
Foreign	20,076	11,144	20,693
Income before income taxes	$ 19,751	$ 18,507	$ 27,820

Income Taxes - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Income Taxes [Line Items]
U.S. income (loss) before income taxes	$ (325)	$ 7,363	$ 7,127
Foreign income (loss) before income taxes	20,076	11,144	20,693
Operating loss carryforwards	8,000
Temporary differences resulting from earnings for certain non-U.S. subsidiaries which are permanently reinvested outside the United States	124,000
Unrecognized tax liability on temporary differences resulting from earnings for certain non-U.S. subsidiaries which are permanently reinvested outside the United States	39,300
Income taxes paid	3,900	4,400	5,500
Tax contingencies and other tax liabilities	11,800	12,100
Unrecognized tax benefits	10,164	9,599	8,714	$ 8,648
Unrecognized tax benefits, if recognized would affect our effective tax rates	8,800	7,900	7,000
Accrued interest expense related to uncertain tax positions net of federal income tax benefits	1,900	1,700	1,500
Interest expense on unrecognized tax benefits	163	237	$ 235
Windows 10 Licenses
Income Taxes [Line Items]
U.S. income (loss) before income taxes	6,000
Foreign income (loss) before income taxes	$ 588
Phone Business \| Impairment, integration, and restructuring expenses
Income Taxes [Line Items]
U.S. income (loss) before income taxes		(1,100)
Foreign income (loss) before income taxes		$ (8,900)
Regional Operating Centers
Income Taxes [Line Items]
Foreign earnings, taxed at rates lower than U.S. rate as a percentage of foreign income before tax	69.00%	73.00%	81.00%
Foreign Country
Income Taxes [Line Items]
Operating loss carryforwards	$ 6,300

Difference Between Income Taxes Computed at Federal Statutory Rate and Provision for Income Taxes (Detail)	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Reconciliation of Statutory Federal Tax Rate [Line Items]
Federal statutory rate	35.00%	35.00%	35.00%
Effect of:
Foreign earnings taxed at lower rates	(19.40%)	(20.90%)	(17.10%)
Phone nondeductible charges and valuation allowance	1.30%	19.10%	0.90%
Domestic production activities deduction	(0.60%)	(2.40%)	(1.00%)
Excess tax benefits relating to stock-based compensation	(2.00%)	0.00%	0.00%
Other reconciling items, net	0.70%	3.30%	2.90%
Effective rate	15.00%	34.10%	20.70%

Deferred Income Tax Assets and Liabilities (Detail) - USD ($)
$ in Millions

Jun. 30, 2016

Jun. 30, 2015

Deferred Income Tax Assets

$ 809

$ 884

Other expense items

1,609

1,531

Depreciation and amortization

284

211

Unearned revenue

494

520

Impaired investments

226

257

Loss carryforwards

1,703

1,158

115

798

Other revenue items

Deferred income tax assets

5,329

5,415

Less valuation allowance

(2,180)

(2,265)

Deferred income tax assets, net of valuation allowance

3,149

3,150

Deferred Income Tax Liabilities

Foreign earnings

(1,242)

(1,280)

Unrealized gain on investments and debt

(2,102)

(2,223)

Depreciation and amortization

(1,008)

(685)

Deferred income tax liabilities

(54)

(29)

(4,406)

(4,217)

Net deferred income tax assets (liabilities)

^[1]

(1,257)

(1,067)

Reported As

Long-term deferred income tax liabilities

3,642

3,117

^[1]

(1,476)

(1,295)

Net deferred income tax assets (liabilities)

^[1]

(1,257)

(1,067)

Deferred Taxes Assets (Liabilities), Net

Reported As

Restructuring Cost and Reserve [Line Items]

^[1]

$ 219

$ 228

[1]	Balances as of June 30, 2015 reflect the impact of the adoption of the new accounting standard in fiscal year 2016 related to balance sheet classification of deferred taxes. See Note 1 - Accounting Policies for additional details.

Changes in Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Income Tax Contingency [Line Items]
Balance, beginning of year	$ 9,599	$ 8,714	$ 8,648
Decreases related to settlements	(201)	(50)	(583)
Increases for tax positions related to the current year	1,086	1,091	566
Increases for tax positions related to prior years	115	94	217
Decreases for tax positions related to prior years	(317)	(144)	(95)
Decreases due to lapsed statutes of limitations	(118)	(106)	(39)
Balance, end of year	$ 10,164	$ 9,599	$ 8,714

Income Taxes - Additional Information Regarding Examinations (Detail)	3 Months Ended		12 Months Ended
	Sep. 30, 2015	Mar. 31, 2011	Jun. 30, 2016
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	1 Months Ended	3 Months Ended	12 Months Ended
	May 31, 2016 Position	Jun. 30, 2016 Position	Jun. 30, 2016 USD ($) Position	Jun. 30, 2015 USD ($) Position
Restructuring Cost and Reserve [Line Items]
Restructuring charges			$ 501
Reversal of prior year restructuring charges			$ (21)
Phone Hardware Integration Plan
Restructuring Cost and Reserve [Line Items]
Number of positions eliminated \| Position				19,000
Completion date			Jun. 30, 2015
Restructuring charges				$ 1,300
Phone Hardware Integration Plan \| Nokia Devices And Services Business
Restructuring Cost and Reserve [Line Items]
Number of positions eliminated \| Position				13,000
Phone Hardware Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Number of positions eliminated \| Position			7,400
Completion date			Dec. 31, 2016
Restructuring charges				$ 780
Reversal of prior year restructuring charges			$ (21)
2016 Restructuring
Restructuring Cost and Reserve [Line Items]
Completion date			Jun. 30, 2017
Restructuring charges			$ 501
Number of positions expected to be eliminated \| Position	1,850	2,850

Changes in Restructuring Liability (Detail)
$ in Millions

12 Months Ended

Jun. 30, 2016

USD ($)

Restructuring liability as of June 30, 2015

$ 837

Reversal of prior year restructuring charges

501

(21)

Cash paid

(578)

Restructuring liability as of June 30, 2016

(30)

709

Severance

Restructuring Cost and Reserve [Line Items]

Restructuring liability as of June 30, 2015

588

Reversal of prior year restructuring charges

372

Cash paid

(466)

Restructuring liability as of June 30, 2016

(24)

470

Restructuring Cost and Reserve [Line Items]

Restructuring liability as of June 30, 2015

249

^[1]

Reversal of prior year restructuring charges

129

^[1]

(21)

^[1]

Cash paid

(112)

^[1]

Restructuring liability as of June 30, 2016

(6)

^[1]

$ 239

^[1]

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

Unearned Revenue by Segment (Detail) - USD ($) $ in Millions	Jun. 30, 2016	Jun. 30, 2015
Deferred Revenue Arrangement [Line Items]
Unearned revenue	$ 33,909	$ 25,318
Reportable Segments \| Productivity and Business Processes
Deferred Revenue Arrangement [Line Items]
Unearned revenue	12,482	11,643
Reportable Segments \| Intelligent Cloud
Deferred Revenue Arrangement [Line Items]
Unearned revenue	11,472	10,346
Reportable Segments \| More Personal Computing
Deferred Revenue Arrangement [Line Items]
Unearned revenue	3,246	3,246
Corporate and Other
Deferred Revenue Arrangement [Line Items]
Unearned revenue	$ 6,709	$ 83

Unearned Revenue - Additional Information (Detail) - USD ($) $ in Millions	Jun. 30, 2016	Jun. 30, 2015
Deferred Revenue Arrangement [Line Items]
Unearned revenue	$ 33,909	$ 25,318
Windows 10 Licenses
Deferred Revenue Arrangement [Line Items]
Unearned revenue	$ 6,600

Commitments - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014	Jun. 11, 2016
LinkedIn Corporation
Commitments [Line Items]
Acquisition price per share				$ 196
All-cash transaction valued				$ 26,200
Buildings
Commitments [Line Items]
Rental expense for facilities operating leases	$ 1,000	$ 989	$ 874
Building, Building Improvements and Leasehold Improvements
Commitments [Line Items]
Committed for construction of new buildings, building improvements and leasehold improvements	$ 2,000

Future Minimum Rental Commitments Under Non-cancellable Operating Leases (Detail) - Buildings $ in Millions	Jun. 30, 2016 USD ($)
Operating Leased Assets [Line Items]
Year Ending June 30, 2017	$ 961
Year Ending June 30, 2018	996
Year Ending June 30, 2019	922
Year Ending June 30, 2020	833
Year Ending June 30, 2021	634
Thereafter	2,118
Total	$ 6,464

Contingencies - Additional Information (Detail) $ in Millions	Jun. 30, 2016 USD ($)
Loss Contingencies [Line Items]
Accrual for disclosed loss contingencies, current, ending balance	$ 521
Amount not accrued for estimated maximum losses for disclosed loss contingencies	$ 1,600

Shares of Common Stock Outstanding (Detail) - shares
shares in Millions

3 Months Ended

12 Months Ended

Jun. 30, 2016

Mar. 31, 2016

Dec. 31, 2015

Sep. 30, 2015

Jun. 30, 2015

Mar. 31, 2015

Dec. 31, 2014

Sep. 30, 2014

Jun. 30, 2014

Mar. 31, 2014

^[1]

Dec. 31, 2013

^[1]

Sep. 30, 2013

Jun. 30, 2016

Jun. 30, 2015

Jun. 30, 2014

Capital Unit [Line Items]

Balance, beginning of year

8,027

8,239

8,328

8,027

8,239

8,328

Issued

Repurchased

(70)

(69)

(66)

(89)

(93)

(116)

(43)

(28)

^[1]

(47)

(53)

(47)

^[1]

(294)

(295)

(175)

^[1]

Balance, end of year

7,808

8,027

8,239

7,808

8,027

8,239

[1]

Share Repurchases (Detail) - USD ($)
shares in Millions, $ in Millions

3 Months Ended

12 Months Ended

Jun. 30, 2016

Mar. 31, 2016

Dec. 31, 2015

Sep. 30, 2015

Jun. 30, 2015

Mar. 31, 2015

Dec. 31, 2014

Sep. 30, 2014

Jun. 30, 2014

^[1]

Mar. 31, 2014

^[1]

Dec. 31, 2013

^[1]

Sep. 30, 2013

^[1]

Jun. 30, 2016

Jun. 30, 2015

Jun. 30, 2014

^[1]

116

294

295

175

$ 3,600

$ 4,000

$ 4,209

$ 5,000

$ 2,000

$ 1,118

$ 1,791

$ 2,000

$ 1,500

$ 14,800

$ 13,209

$ 6,409

[1]

Share Repurchases (Parenthetical) (Detail) - USD ($)
shares in Millions, $ in Millions

3 Months Ended

12 Months Ended

Jun. 30, 2016

Mar. 31, 2016

Dec. 31, 2015

Sep. 30, 2015

Jun. 30, 2015

Mar. 31, 2015

Dec. 31, 2014

Sep. 30, 2014

Jun. 30, 2014

^[1]

Mar. 31, 2014

^[1]

Dec. 31, 2013

^[1]

Sep. 30, 2013

^[1]

Jun. 30, 2016

Jun. 30, 2015

Jun. 30, 2014

116

294

295

175

^[1]

Share Repurchase Program 2013

$ 3,600

$ 4,000

$ 4,209

$ 5,000

$ 2,000

$ 1,118

$ 1,791

$ 2,000

$ 1,500

$ 14,800

$ 13,209

$ 6,409

^[1]

128

Share Repurchase Program 2008

$ 4,900

$ 1,500

[1]

Dividends Declared (Detail) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended								12 Months Ended
	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Dividends [Line Items]
Declaration Date	Jun. 14, 2016	Mar. 15, 2016	Dec. 02, 2015	Sep. 15, 2015	Jun. 09, 2015	Mar. 10, 2015	Dec. 03, 2014	Sep. 16, 2014
Dividend Per Share	$ 0.36	$ 0.36	$ 0.36	$ 0.36	$ 0.31	$ 0.31	$ 0.31	$ 0.31	$ 1.44	$ 1.24	$ 1.12
Record Date	Aug. 18, 2016	May 19, 2016	Feb. 18, 2016	Nov. 19, 2015	Aug. 20, 2015	May 21, 2015	Feb. 19, 2015	Nov. 20, 2014
Total Amount	$ 2,811	$ 2,821	$ 2,842	$ 2,868	$ 2,475	$ 2,496	$ 2,532	$ 2,547
Payment Date	Sep. 08, 2016	Jun. 09, 2016	Mar. 10, 2016	Dec. 10, 2015	Sep. 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	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive income (loss), beginning of period	$ 2,522	$ 3,708
Translation adjustments and other, net of tax effects of $(33), $16 and $12	(519)	(1,383)	$ 263
Net current period other comprehensive income (loss)	(238)	559	(35)
Net current period other comprehensive income (loss)	(228)	(362)	1,737
Accumulated other comprehensive income (loss), end of period	1,537	2,522	3,708
Derivatives
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive income (loss), beginning of period	590	31	66
Unrealized gains, net of tax effects of $24, $35 and $2	351	1,152	63
Tax expense included in provision for income taxes	36	15	6
Amounts reclassified from accumulated other comprehensive income	(589)	(593)	(98)
Net current period other comprehensive income (loss)	(238)	559	(35)
Accumulated other comprehensive income (loss), end of period	352	590	31
Derivatives \| Revenue
Accumulated Other Comprehensive Income (Loss) [Line Items]
Reclassification adjustments for gains included in revenue	(625)	(608)	(104)
Investments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive income (loss), beginning of period	3,169	3,531	1,794
Unrealized gains, net of tax effects of $120, $59 and $1,067	219	110	2,053
Tax expense included in provision for income taxes	241	256	131
Amounts reclassified from accumulated other comprehensive income	(447)	(472)	(316)
Net current period other comprehensive income (loss)	(228)	(362)	1,737
Accumulated other comprehensive income (loss), end of period	2,941	3,169	3,531
Investments \| Other income (expense), net
Accumulated Other Comprehensive Income (Loss) [Line Items]
Reclassification adjustments for gains included in other income (expense), net	(688)	(728)	(447)
Translation Adjustments and Other
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive income (loss), beginning of period	(1,237)	146	(117)
Translation adjustments and other, net of tax effects of $(33), $16 and $12	(519)	(1,383)	263
Accumulated other comprehensive income (loss), end of period	$ (1,756)	$ (1,237)	$ 146

Summary of Changes in Accumulated Other Comprehensive Income by Component (Parenthetical) (Detail) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Accumulated Other Comprehensive Income (Loss) [Line Items]
Translation adjustments and other, tax effects	$ (33)	$ 16	$ 12
Derivatives
Accumulated Other Comprehensive Income (Loss) [Line Items]
Unrealized gains, tax effects	24	35	2
Investments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Unrealized gains, tax effects	120	59	1,067
Translation Adjustments and Other
Accumulated Other Comprehensive Income (Loss) [Line Items]
Translation adjustments and other, tax effects	$ (33)	$ 16	$ 12

Employee Stock and Savings Plans - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	6 Months Ended		12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Compensation Related Costs Disclosure [Line Items]
Shares authorized for future grant	214		214
Shares reserved for future issuance through the employee stock purchase plan	142		142
Company contribution amount for each dollar a participant contributes to the savings plan	50.00%
Matching contributions for all employee savings plans			$ 549	$ 454	$ 420
First 6% of Participant Contributions
Compensation Related Costs Disclosure [Line Items]
Company contribution amount for each dollar a participant contributes to the savings plan		50.00%		50.00%	50.00%
Upper Limit
Compensation Related Costs Disclosure [Line Items]
Percentage of employee's earnings the company may contribute to the savings plan		3.00%		3.00%	3.00%
Upper Limit \| IRS Compensation Limit
Compensation Related Costs Disclosure [Line Items]
Percentage of employee's earnings the company may contribute to the savings plan	50.00%	3.00%		3.00%	3.00%
Stock Awards
Compensation Related Costs Disclosure [Line Items]
Unrecognized compensation costs	$ 4,800		$ 4,800
Unrecognized compensation costs are expected to be recognized over a weighted average period (years)			3 years
Weighted average grant-date fair value			$ 41.51	$ 42.36	$ 31.50
Fair value of awards vested			$ 3,900	$ 4,200	$ 3,200
Stock Awards \| Lower Limit
Compensation Related Costs Disclosure [Line Items]
Award vest period			4 years
Stock Awards \| Upper Limit
Compensation Related Costs Disclosure [Line Items]
Award vest period			5 years
Employee Stock
Compensation Related Costs Disclosure [Line Items]
Percentage of market value at which employees are able to purchase shares of common stock			90.00%	90.00%	90.00%
Maximum percentage of gross compensation at which employees may purchase shares	15.00%		15.00%	15.00%	15.00%
Executive Incentive Plan
Compensation Related Costs Disclosure [Line Items]
Award vest period			4 years

Stock-Based Compensation Expense and Related Income Tax Benefits (Detail) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	$ 2,668	$ 2,574	$ 2,446
Income tax benefits related to stock-based compensation	$ 882	$ 868	$ 830

Assumptions Used in Estimating the Fair Value of Stock Award Grants (Detail) - $ / shares	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Share based Compensation Arrangement by Share based Payment Award, Fair Value Assumptions, Method Used [Line Items]
Interest rates minimum	1.10%	1.20%	1.30%
Interest rates maximum	1.80%	1.90%	1.80%
Lower Limit
Share based Compensation Arrangement by Share based Payment Award, Fair Value Assumptions, Method Used [Line Items]
Dividends per share (quarterly amounts)	$ 0.31	$ 0.28	$ 0.23
Upper Limit
Share based Compensation Arrangement by Share based Payment Award, Fair Value Assumptions, Method Used [Line Items]
Dividends per share (quarterly amounts)	$ 0.36	$ 0.31	$ 0.28

Stock Plan Activity (Detail) - Stock Awards - $ / shares shares in Millions	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Shares
Nonvested balance, beginning of year	216
Granted	83
Vested	(85)
Forfeited	(20)
Nonvested balance, end of year	194	216
Weighted Average Grant-Date Fair Value
Nonvested balance, beginning of year	$ 32.72
Granted	41.51	$ 42.36	$ 31.50
Vested	30.98
Forfeited	35.93
Nonvested balance, end of year	$ 36.92	$ 32.72

Employee Purchased Shares (Detail) - $ / shares shares in Millions	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Employee Stock Purchase Plan [Line Items]
Shares purchased	15	16	18
Average price per share	$ 44.83	$ 39.87	$ 33.60

Segment Revenue (Detail) - USD ($)
$ in Millions

3 Months Ended

12 Months Ended

Jun. 30, 2016

^[1]

Mar. 31, 2016

^[1]

Dec. 31, 2015

^[1]

Sep. 30, 2015

^[1]

Jun. 30, 2015

Mar. 31, 2015

Dec. 31, 2014

Sep. 30, 2014

Jun. 30, 2016

Jun. 30, 2015

Jun. 30, 2014

Reportable Segments | Productivity and Business Processes

$ 20,614

$ 20,531

$ 23,796

$ 20,379

$ 22,180

$ 21,729

$ 26,470

$ 23,201

$ 85,320

^[1]

$ 93,580

$ 86,833

Reportable Segments | Intelligent Cloud

26,487

26,430

26,976

Reportable Segments | More Personal Computing

25,042

23,715

21,735

40,460

43,160

38,460

Corporate and Other

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

$ (6,669)

$ 275

$ (338)

[1]	Reflects the impact of the net revenue deferral from Windows 10 of $1.3 billion, $1.7 billion, $1.6 billion, and $2.0 billion, for the first, second, third, and fourth quarter of fiscal year 2016, respectively, and $6.6 billion for fiscal year 2016.

Operating Income (Loss) by Segment (Detail) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Segment Reporting Information [Line Items]
Operating income (loss)	$ 3,080	$ 5,283	$ 6,026	$ 5,793	$ (2,053)	$ 6,594	$ 7,776	$ 5,844	$ 20,182	$ 18,161	$ 27,759
Reportable Segments \| Productivity and Business Processes
Segment Reporting Information [Line Items]
Operating income (loss)									12,461	13,359	14,173
Reportable Segments \| Intelligent Cloud
Segment Reporting Information [Line Items]
Operating income (loss)									9,358	9,871	8,446
Reportable Segments \| More Personal Computing
Segment Reporting Information [Line Items]
Operating income (loss)									6,142	4,667	5,605
Corporate and Other
Segment Reporting Information [Line Items]
Operating income (loss)									$ (7,779)	$ (9,736)	$ (465)

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

3 Months Ended

12 Months Ended

Jun. 30, 2016

Mar. 31, 2016

Dec. 31, 2015

Sep. 30, 2015

Jun. 30, 2015

Mar. 31, 2015

Dec. 31, 2014

Sep. 30, 2014

Jun. 30, 2016

Jun. 30, 2015

Jun. 30, 2014

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

$ 3,080

$ 5,283

$ 6,026

$ 5,793

$ (2,053)

$ 6,594

$ 7,776

$ 5,844

$ 20,182

$ 18,161

$ 27,759

Corporate and Other

Corporate and Other | Impairment, integration, and restructuring expenses

(7,779)

(9,736)

(465)

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

Corporate and Other | Revenue reconciling amounts and other

(1,110)

(10,011)

(127)

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

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

^[1]

$ (6,669)

$ 275

$ (338)

[1]

Revenue reconciling amounts and other for fiscal year 2016 primarily consisted of a net $6.6 billion of revenue deferrals related to sales of Windows 10. Revenue reconciling amounts for fiscal year 2015 included a net $303 million of previously deferred net revenue related to sales of bundled products and services ("Bundled Offerings"). Revenue reconciling amounts for fiscal year 2014 included a net $349 million of revenue deferrals related to Bundled Offerings.

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

3 Months Ended

12 Months Ended

Jun. 30, 2016

Mar. 31, 2016

Dec. 31, 2015

Sep. 30, 2015

Jun. 30, 2015

Mar. 31, 2015

Dec. 31, 2014

Sep. 30, 2014

Jun. 30, 2016

Jun. 30, 2015

Jun. 30, 2014

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

$ 3,080

$ 5,283

$ 6,026

$ 5,793

$ (2,053)

$ 6,594

$ 7,776

$ 5,844

$ 20,182

$ 18,161

$ 27,759

Corporate and Other

Corporate and Other | Revenue reconciling amounts and other

(7,779)

(9,736)

(465)

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

Corporate and Other | Windows 10 Licenses | Revenue reconciling amounts and other

^[1]

(6,669)

275

(338)

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

Corporate and Other | Bundled Offerings | Revenue reconciling amounts and other

$ 6,600

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

$ 303

$ 349

[1]

Revenue reconciling amounts and other for fiscal year 2016 primarily consisted of a net $6.6 billion of revenue deferrals related to sales of Windows 10. Revenue reconciling amounts for fiscal year 2015 included a net $303 million of previously deferred net revenue related to sales of bundled products and services ("Bundled Offerings"). Revenue reconciling amounts for fiscal year 2014 included a net $349 million of revenue deferrals related to Bundled Offerings.

Segment Information and Geographic Data - Additional Information (Detail)	12 Months Ended
	Jun. 30, 2016
Segment Reporting Information [Line Items]
Sales to an individual customer	No sales to an individual customer or country other than the United States accounted for more than 10% of fiscal year 2016, 2015, or 2014 revenue.

Revenue Classified by Major Geographic Areas (Detail) - USD ($)
$ in Millions

3 Months Ended

12 Months Ended

Jun. 30, 2016

^[1]

Mar. 31, 2016

^[1]

Dec. 31, 2015

^[1]

Sep. 30, 2015

^[1]

Jun. 30, 2015

Mar. 31, 2015

Dec. 31, 2014

Sep. 30, 2014

Jun. 30, 2016

Jun. 30, 2015

Jun. 30, 2014

Geographic Information [Line Items]

Revenues

$ 20,614

$ 20,531

$ 23,796

$ 20,379

$ 22,180

$ 21,729

$ 26,470

$ 23,201

$ 85,320

^[1]

$ 93,580

$ 86,833

United States

Geographic Information [Line Items]

Revenues

^[2]

40,578

42,941

43,474

Other Countries

Geographic Information [Line Items]

Revenues

$ 44,742

$ 50,639

$ 43,359

[1]	Reflects the impact of the net revenue deferral from Windows 10 of $1.3 billion, $1.7 billion, $1.6 billion, and $2.0 billion, for the first, second, third, and fourth quarter of fiscal year 2016, respectively, and $6.6 billion for fiscal year 2016.
[2]	Includes billings to OEMs and certain multinational organizations because of the nature of these businesses and the impracticability of determining the geographic source of the revenue.

Revenue Classified by Significant Product and Service Offerings (Detail) - USD ($)
$ in Millions

3 Months Ended

12 Months Ended

Jun. 30, 2016

^[1]

Mar. 31, 2016

^[1]

Dec. 31, 2015

^[1]

Sep. 30, 2015

^[1]

Jun. 30, 2015

Mar. 31, 2015

Dec. 31, 2014

Sep. 30, 2014

Jun. 30, 2016

Jun. 30, 2015

Jun. 30, 2014

$ 20,614

$ 20,531

$ 23,796

$ 20,379

$ 22,180

$ 21,729

$ 26,470

$ 23,201

$ 85,320

^[1]

$ 93,580

$ 86,833

Microsoft Office system

Server products and tools

23,588

23,538

24,323

19,177

18,612

17,055

Xbox

Windows PC operating system

9,395

9,121

8,643

8,104

^[2]

14,826

16,856

Advertising

Consulting and product support services

6,098

4,557

4,016

5,641

5,090

4,767

Surface

4,108

3,900

1,883

Phone

Other products and services

3,358

7,702

3,073

$ 5,851

$ 6,234

$ 6,217

[1]	Reflects the impact of the net revenue deferral from Windows 10 of $1.3 billion, $1.7 billion, $1.6 billion, and $2.0 billion, for the first, second, third, and fourth quarter of fiscal year 2016, respectively, and $6.6 billion for fiscal year 2016.
[2]	Includes a net $6.6 billion of revenue deferrals related to sales of Windows 10.

Revenue Classified by Significant Product and Service Offerings (Parenthetical) (Detail) - USD ($)
$ in Millions

3 Months Ended

12 Months Ended

Jun. 30, 2016

Mar. 31, 2016

Dec. 31, 2015

Sep. 30, 2015

Jun. 30, 2015

Mar. 31, 2015

Dec. 31, 2014

Sep. 30, 2014

Jun. 30, 2016

Jun. 30, 2015

Jun. 30, 2014

$ 20,614

^[1]

$ 20,531

^[1]

$ 23,796

^[1]

$ 20,379

^[1]

$ 22,180

$ 21,729

$ 26,470

$ 23,201

$ 85,320

^[1]

$ 93,580

$ 86,833

Commercial Cloud

9,500

$ 5,800

$ 2,800

Windows 10 Licenses

$ 2,000

$ 1,600

$ 1,700

$ 1,300

$ 6,600

[1]	Reflects the impact of the net revenue deferral from Windows 10 of $1.3 billion, $1.7 billion, $1.6 billion, and $2.0 billion, for the first, second, third, and fourth quarter of fiscal year 2016, respectively, and $6.6 billion for fiscal year 2016.

Long-Lived Assets, Excluding Financial Instruments and Tax Assets, Classified by Location of Controlling Statutory Company (Detail) - USD ($) $ in Millions	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Certain Long-Lived Assets by Geography [Line Items]
Long-lived assets	$ 39,961	$ 36,505	$ 40,119
United States
Certain Long-Lived Assets by Geography [Line Items]
Long-lived assets	22,819	19,562	17,653
Luxembourg
Certain Long-Lived Assets by Geography [Line Items]
Long-lived assets	6,854	6,879	6,913
Finland
Certain Long-Lived Assets by Geography [Line Items]
Long-lived assets	389	1,757	9,840
Other Countries
Certain Long-Lived Assets by Geography [Line Items]
Long-lived assets	$ 9,899	$ 8,307	$ 5,713

Quarterly Information (Unaudited) (Detail) - USD ($)
$ / shares in Units, $ in Millions

3 Months Ended

12 Months Ended

Jun. 30, 2016

Mar. 31, 2016

Dec. 31, 2015

Sep. 30, 2015

Jun. 30, 2015

Mar. 31, 2015

Dec. 31, 2014

Sep. 30, 2014

Jun. 30, 2016

Jun. 30, 2015

Jun. 30, 2014

Basic earnings (loss) per share

$ 20,614

^[1]

$ 20,531

^[1]

$ 23,796

^[1]

$ 20,379

^[1]

$ 22,180

$ 21,729

$ 26,470

$ 23,201

$ 85,320

^[1]

$ 93,580

$ 86,833

Gross margin

12,635

12,809

13,924

13,172

14,712

14,568

16,334

14,928

52,540

60,542

59,755

Operating income

3,080

5,283

6,026

5,793

(2,053)

6,594

7,776

5,844

20,182

18,161

27,759

Net income (loss)

$ 3,122

^[2]

$ 3,756

$ 5,018

$ 4,902

$ (3,195)

^[3]

$ 4,985

$ 5,863

$ 4,540

$ 16,798

^[2]

$ 12,193

^[4]

$ 22,074

$ 0.40

$ 0.48

$ 0.63

$ 0.61

$ (0.40)

$ 0.61

$ 0.71

$ 0.55

$ 2.12

$ 1.49

$ 2.66

Diluted earnings (loss) per share

$ 0.39

^[2]

$ 0.47

$ 0.62

$ 0.61

$ (0.40)

^[3]

$ 0.61

$ 0.71

$ 0.54

$ 2.10

^[2]

$ 1.48

^[4]

$ 2.63

[1]	Reflects the impact of the net revenue deferral from Windows 10 of $1.3 billion, $1.7 billion, $1.6 billion, and $2.0 billion, for the first, second, third, and fourth quarter of fiscal year 2016, respectively, and $6.6 billion for fiscal year 2016.
[2]	Includes $630 million of asset impairment charges related to our phone business, and $480 million of restructuring charges associated with our 2016 restructuring plans, which together decreased net income and diluted EPS by $895 million and $0.11, respectively.
[3]	Includes $7.5 billion of goodwill and asset impairment charges related to our phone business, and $940 million of integration and restructuring expenses, primarily associated with our Phone Hardware Restructuring Plan, which together decreased net income and diluted EPS by $8.3 billion and $1.02, respectively.
[4]	Includes $7.5 billion of goodwill and asset impairment charges related to our phone business, and $2.5 billion of integration and restructuring expenses, primarily associated with our Phone Hardware Integration Plan and Phone Hardware Restructuring Plan, which together decreased net income and diluted EPS by $9.5 billion and $1.15, respectively.

Quarterly Information (Unaudited) (Parenthetical) (Detail) - USD ($)
$ / shares in Units, $ in Millions

3 Months Ended

12 Months Ended

Jun. 30, 2016

Mar. 31, 2016

Dec. 31, 2015

Sep. 30, 2015

Jun. 30, 2015

Mar. 31, 2015

Dec. 31, 2014

Sep. 30, 2014

Jun. 30, 2016

Jun. 30, 2015

Jun. 30, 2014

$ 20,614

^[1]

$ 20,531

^[1]

$ 23,796

^[1]

$ 20,379

^[1]

$ 22,180

$ 21,729

$ 26,470

$ 23,201

$ 85,320

^[1]

$ 93,580

$ 86,833

Integration and restructuring expenses

630

7,498

$ 0

480

940

2,500

Decrease in net income due to impairment, integration and restructuring

$ 895

$ 8,300

$ 9,500

Decrease in diluted earnings per share due to impairment, integration and restructuring

$ 0.11

$ 1.02

$ 1.15

Windows 10 Licenses

$ 2,000

$ 1,600

$ 1,700

$ 1,300

$ 6,600

Phone Business