Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Mar. 31, 2017	Apr. 21, 2017
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2017
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q3
Trading Symbol	MSFT
Entity Registrant Name	MICROSOFT CORPORATION
Entity Central Index Key	0000789019
Current Fiscal Year End Date	--06-30
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		7,720,514,731

INCOME STATEMENTS - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016
Revenue
Product	$ 13,391	$ 14,321	$ 43,421	$ 47,514
Service and other	8,699	6,210	23,212	17,192
Total revenue	22,090	20,531	66,633	64,706
Cost of revenue
Product	3,075	3,801	12,034	14,104
Service and other	4,985	3,921	13,771	10,697
Total cost of revenue	8,060	7,722	25,805	24,801
Gross margin	14,030	12,809	40,828	39,905
Research and development	3,355	2,980	9,523	8,842
Sales and marketing	3,879	3,406	11,183	10,699
General and administrative	1,202	1,140	3,126	3,262
Operating income	5,594	5,283	16,996	17,102
Other income (expense), net	322	(247)	608	(698)
Income before income taxes	5,916	5,036	17,604	16,404
Provision for income taxes	1,115	1,280	2,913	2,728
Net income	$ 4,801	$ 3,756	$ 14,691	$ 13,676
Earnings per share:
Basic	$ 0.62	$ 0.48	$ 1.89	$ 1.72
Diluted	$ 0.61	$ 0.47	$ 1.87	$ 1.70
Weighted average shares outstanding:
Basic	7,725	7,895	7,756	7,952
Diluted	7,813	7,985	7,840	8,041
Cash dividends declared per common share	$ 0.39	$ 0.36	$ 1.17	$ 1.08

COMPREHENSIVE INCOME STATEMENTS - USD ($) $ in Millions	3 Months Ended		9 Months Ended
COMPREHENSIVE INCOME STATEMENTS - USD ($) $ in Millions	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016
Net income	$ 4,801	$ 3,756	$ 14,691	$ 13,676
Other comprehensive income (loss):
Net unrealized gains (losses) on derivatives (net of tax effects of $1, $(30), $(1), and $(2))	(225)	(285)	18	(277)
Net unrealized gains (losses) on investments (net of tax effects of $34, $186, $(457), and $(36))	65	345	(846)	(66)
Translation adjustments and other (net of tax effects of $0, $3, $7, and $(18))	292	7	(65)	(339)
Other comprehensive income (loss)	132	67	(893)	(682)
Comprehensive income	$ 4,933	$ 3,823	$ 13,798	$ 12,994

COMPREHENSIVE INCOME STATEMENTS (Parenthetical) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016
Net unrealized gains (losses) on derivatives, tax effects	$ 1	$ (30)	$ (1)	$ (2)
Net unrealized gains (losses) on investments, tax effects	34	186	(457)	(36)
Translation adjustments and other, tax effects	$ 0	$ 3	$ 7	$ (18)

BALANCE SHEETS - USD ($) $ in Millions	Mar. 31, 2017	Jun. 30, 2016
Current assets:
Cash and cash equivalents	$ 6,713	$ 6,510
Short-term investments (including securities loaned of $4,462 and $204)	119,305	106,730
Total cash, cash equivalents, and short-term investments	126,018	113,240
Accounts receivable, net of allowance for doubtful accounts of $302 and $426	12,882	18,277
Inventories	1,979	2,251
Other	5,434	5,892
Total current assets	146,313	139,660
Property and equipment, net of accumulated depreciation of $22,992 and $19,800	21,962	18,356
Equity and other investments	7,381	10,431
Goodwill	34,668	17,872
Intangible assets, net	10,547	3,733
Other long-term assets	4,146	3,416
Total assets	225,017	193,468
Current liabilities:
Accounts payable	6,217	6,898
Short-term debt	7,187	12,904
Current portion of long-term debt	599	0
Accrued compensation	4,604	5,264
Income taxes	654	580
Short-term unearned revenue	26,518	27,468
Securities lending payable	201	294
Other	6,025	5,949
Total current liabilities	52,005	59,357
Long-term debt	76,222	40,557
Long-term unearned revenue	9,215	6,441
Deferred income taxes	465	1,476
Other long-term liabilities	17,381	13,640
Total liabilities	155,288	121,471
Commitments and contingencies
Stockholders' equity:
Common stock and paid-in capital—shares authorized 24,000; outstanding 7,723 and 7,808	68,554	68,178
Retained earnings	531	2,282
Accumulated other comprehensive income	644	1,537
Total stockholders' equity	69,729	71,997
Total liabilities and stockholders' equity	$ 225,017	$ 193,468

BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions	Mar. 31, 2017	Jun. 30, 2016
Short-term investments, securities loaned	$ 4,462	$ 204
Accounts receivable, allowance for doubtful accounts	302	426
Property and equipment, accumulated depreciation	$ 22,992	$ 19,800
Common stock, shares authorized	24,000,000,000	24,000,000,000
Common stock, outstanding	7,723,000,000	7,808,000,000

CASH FLOWS STATEMENTS - USD ($) $ in Millions	3 Months Ended		9 Months Ended
CASH FLOWS STATEMENTS - USD ($) $ in Millions	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016
Operations
Net income	$ 4,801	$ 3,756	$ 14,691	$ 13,676
Adjustments to reconcile net income to net cash from operations:
Depreciation, amortization, and other	2,453	1,707	6,435	4,712
Stock-based compensation expense	883	672	2,353	2,004
Net recognized losses (gains) on investments and derivatives	(590)	65	(1,553)	216
Deferred income taxes	(777)	351	(1,349)	177
Deferral of unearned revenue	15,995	13,073	42,719	36,066
Recognition of unearned revenue	(14,941)	(12,210)	(41,490)	(35,494)
Changes in operating assets and liabilities:
Accounts receivable	1,487	2,288	5,950	5,546
Inventories	(16)	241	249	408
Other current assets	(25)	(420)	318	(1,914)
Other long-term assets	(26)	7	(298)	58
Accounts payable	(425)	(129)	(769)	105
Other current liabilities	742	626	(1,148)	(1,293)
Other long-term liabilities	1,099	340	2,394	594
Net cash from operations	10,660	10,367	28,502	24,861
Financing
Proceeds from issuance (repayments) of short-term debt, maturities of 90 days or less, net	(1,302)	2,622	(8,447)	481
Proceeds from issuance of debt	547	25	42,593	13,274
Repayments of debt	(211)	(900)	(4,554)	(2,771)
Common stock issued	179	159	551	495
Common stock repurchased	(2,062)	(3,857)	(10,023)	(12,292)
Common stock cash dividends paid	(3,012)	(2,842)	(8,836)	(8,185)
Other, net	(375)	(123)	(175)	(366)
Net cash from (used in) financing	(6,236)	(4,916)	11,109	(9,364)
Investing
Additions to property and equipment	(1,695)	(2,308)	(5,846)	(5,688)
Acquisition of companies, net of cash acquired, and purchases of intangible and other assets	(802)	(559)	(25,586)	(1,330)
Purchases of investments	(43,918)	(27,341)	(147,874)	(99,661)
Maturities of investments	4,860	5,192	22,234	16,229
Sales of investments	36,444	19,599	117,754	76,292
Securities lending payable	(1,080)	(66)	(94)	281
Net cash used in investing	(6,191)	(5,483)	(39,412)	(13,877)
Effect of foreign exchange rates on cash and cash equivalents	12	17	4	(45)
Net change in cash and cash equivalents	(1,755)	(15)	203	1,575
Cash and cash equivalents, beginning of period	8,468	7,185	6,510	5,595
Cash and cash equivalents, end of period	$ 6,713	$ 7,170	$ 6,713	$ 7,170

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, 2015		$ 68,465	$ 9,096	$ 2,522
Common stock issued		495
Net income	$ 13,676		13,676
Other comprehensive income (loss)	(682)			(682)
Common stock cash dividends			(8,530)
Common stock repurchased	(11,200)	(3,010)	(9,288)
Stock-based compensation expense		2,004
Other, net		58
Balance, end of period at Mar. 31, 2016	74,806	68,012	4,954	1,840
Balance, beginning of period at Dec. 31, 2015		67,977	7,030	1,773
Common stock issued		159
Net income	3,756		3,756
Other comprehensive income (loss)	67			67
Common stock cash dividends	(2,821)		(2,822)
Common stock repurchased		(853)	(3,010)
Stock-based compensation expense		672
Other, net		57
Balance, end of period at Mar. 31, 2016	74,806	68,012	4,954	1,840
Balance, beginning of period at Jun. 30, 2016	71,997	68,178	2,282	1,537
Common stock issued		551
Net income	14,691		14,691
Other comprehensive income (loss)	(893)			(893)
Common stock cash dividends			(9,037)
Common stock repurchased	(8,683)	(2,619)	(7,405)
Stock-based compensation expense		2,353
Other, net		91
Balance, end of period at Mar. 31, 2017	69,729	68,554	531	644
Balance, beginning of period at Dec. 31, 2016		68,177	120	512
Common stock issued		179
Net income	4,801		4,801
Other comprehensive income (loss)	132			132
Common stock cash dividends	(3,012)		(3,009)
Common stock repurchased		(684)	(1,381)
Stock-based compensation expense		883
Other, net		(1)
Balance, end of period at Mar. 31, 2017	$ 69,729	$ 68,554	$ 531	$ 644

ACCOUNTING POLICIES

9 Months Ended

Mar. 31, 2017

ACCOUNTING POLICIES

NOTE 1 — ACCOUNTING POLICIES

Accounting Principles

We prepare our unaudited interim consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). In the opinion of management, the unaudited interim consolidated financial statements reflect all adjustments of a normal recurring nature that are necessary for a fair presentation of the results for the interim periods presented. Interim results are not necessarily indicative of results for a full year. The information included in this Form 10-Q should be read in conjunction with information included in the Microsoft Corporation 2016 Form 10-K filed with the U.S. Securities and Exchange Commission on July 28, 2016.

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.

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 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.

Product Revenue and Service and Other Revenue

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 365 (“Dynamics 365”), and Xbox Live; solution support; and consulting services. Service and other revenue also includes sales from online advertising and LinkedIn.

Recent Accounting Guidance Not Yet Adopted

Accounting for Income Taxes – Intra-Entity Asset Transfers

In October 2016, the Financial Accounting Standards Board (“FASB”) issued new guidance requiring an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs, rather than when the asset has been sold to an outside party. This guidance is effective for us beginning July 1, 2018, with early adoption permitted beginning July 1, 2017. We plan to adopt the guidance effective July 1, 2018. Adoption of the guidance will be applied using a modified retrospective approach through a cumulative-effect adjustment to retained earnings as of the effective date. A cumulative-effect adjustment will capture the write-off of income tax consequences deferred from past intra-entity transfers involving assets other than inventory and new deferred tax assets for amounts not recognized under current U.S. GAAP. We are currently evaluating the impact of the guidance on our consolidated financial statements, including accounting policies, processes, and systems.

Financial Instruments – Credit Losses

In June 2016, the FASB issued a new standard to replace the incurred loss impairment methodology under current U.S. 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. We will be required to use a forward-looking expected credit loss model for accounts receivables, loans, and other financial instruments. 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 standard will be effective for us beginning July 1, 2020, with early adoption permitted beginning July 1, 2019. Adoption of the standard will be applied using a modified retrospective approach 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, including accounting policies, processes, and systems.

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 right-of-use (“ROU”) assets and lease liabilities on the balance sheet. Most prominent among the changes in the standard is the recognition of ROU assets and lease liabilities by lessees for those leases classified as operating leases under current U.S. GAAP. Under the 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 existing at, or entered into after, the beginning of the earliest comparative period presented using a modified retrospective approach, with certain practical expedients available.

The standard will be effective for us beginning July 1, 2019, with early adoption permitted. We plan to adopt the standard effective July 1, 2017 concurrent with our adoption of the new standard related to revenue recognition. We intend to elect the available practical expedients on adoption. While our ability to early adopt depends on system readiness, including software procured from third-party providers, and completing our analysis of information necessary to restate prior period consolidated financial statements, we remain on schedule and have implemented key system functionality to enable the preparation of restated financial information.

We anticipate this standard will have a material impact on our consolidated balance sheets. However, we do not expect adoption will have a material impact on our consolidated income statements. While we are continuing to assess potential impacts of the standard, we currently expect the most significant impact will be the recognition of ROU assets and lease liabilities for operating leases. We expect our accounting for capital leases to remain substantially unchanged.

We are nearing completion of retrospectively adjusting financial information for fiscal year 2016 and are progressing as planned for fiscal year 2017. We expect adoption of the standard will result in the recognition of additional ROU assets and lease liabilities for operating leases of approximately $5 billion as of June 30, 2016. ROU assets and lease liabilities for operating leases are expected to increase in fiscal year 2017 primarily due to the acquisition of LinkedIn Corporation (“LinkedIn”) and additional datacenter leases.

Financial Instruments – Recognition, Measurement, Presentation, and Disclosure

In January 2016, the FASB issued a new standard related to certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. Most prominent among the changes in the standard is the requirement for changes in the fair value of our equity investments, with certain exceptions, to be recognized through net income rather than other comprehensive income (“OCI”). The standard will be effective for us beginning July 1, 2018. Adoption of the standard will be applied using a modified retrospective approach 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, including accounting policies, processes, and systems.

Revenue from Contracts with Customers

In May 2014, the FASB issued a new standard related to revenue recognition. Under the standard, revenue is recognized when a customer obtains control of promised goods or services in an amount that reflects the consideration 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 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 (modified retrospective method). We plan to adopt the standard using the full retrospective method to restate each prior reporting period presented.

The standard will be effective for us beginning July 1, 2018, with early adoption permitted as of the original effective date of July 1, 2017. We plan to adopt the standard effective July 1, 2017. While our ability to early adopt using the full retrospective method depends on system readiness, including software procured from third-party providers, and completing our analysis of information necessary to restate prior period consolidated financial statements, we remain on schedule and have implemented key system functionality to enable the preparation of restated financial information.

We have reached conclusions on key accounting assessments related to the standard. However, we are finalizing our assessment and quantifying the impacts related to accounting for costs incurred to obtain a contract based on guidance issued by the FASB Transition Resource Group as part of their November 2016 meeting. We will continue to monitor and assess the impact of any changes to the standard and interpretations as they become available.

The most significant impact of the standard relates to our accounting for software license revenue. Specifically, under the 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 expect to recognize license revenue at the time of contract execution 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 depend on contract-specific terms and in some instances may vary from recognition at the time of billing. We expect revenue recognition related to our hardware, cloud offerings including Office 365, LinkedIn, and professional services to remain substantially unchanged.

We are nearing completion of retrospectively adjusting financial information for fiscal year 2016 and are progressing as planned for fiscal year 2017. We estimate our revenue would have been approximately $6 billion higher in fiscal year 2016 under the standard primarily due to the net change in Windows 10 revenue recognition.

EARNINGS PER SHARE

9 Months Ended

Mar. 31, 2017

EARNINGS PER SHARE

NOTE 2 — EARNINGS PER SHARE

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

The components of basic and diluted EPS were as follows:

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


	2017		2016		2017		2016

Net income available for common shareholders (A)	$	4,801	$	3,756	$	14,691	$	13,676


Weighted average outstanding shares of common stock (B)		7,725		7,895		7,756		7,952
Dilutive effect of stock-based awards		88		90		84		89


Common stock and common stock equivalents (C)		7,813		7,985		7,840		8,041


Earnings Per Share

Basic (A/B)	$	0.62	$	0.48	$	1.89	$	1.72
Diluted (A/C)	$	0.61	$	0.47	$	1.87	$	1.70

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

OTHER INCOME (EXPENSE), NET

9 Months Ended

Mar. 31, 2017

OTHER INCOME (EXPENSE), NET

NOTE 3 — OTHER INCOME (EXPENSE), NET

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

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


	2017			2016			2017			2016

Dividends and interest income	$	380		$	230		$	984		$	629
Interest expense		(609	)		(340	)		(1,567	)		(898	)
Net recognized gains on investments		790			85			1,893			193
Net losses on derivatives		(200	)		(155	)		(340	)		(414	)
Net losses on foreign currency remeasurements		0			(18	)		(134	)		(52	)
Other, net		(39	)		(49	)		(228	)		(156	)


Total	$	322		$	(247	)	$	608		$	(698	)

Following are details of net recognized gains (losses) on investments:

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


	2017			2016			2017			2016

Other-than-temporary impairments of investments	$	(15	)	$	(86	)	$	(54	)	$	(248	)
Realized gains from sales of available-for-sale securities		938			282			2,272			740
Realized losses from sales of available-for-sale securities		(133	)		(111	)		(325	)		(299	)


Total	$	790		$	85		$	1,893		$	193

INVESTMENTS

9 Months Ended

Mar. 31, 2017

INVESTMENTS

NOTE 4 — INVESTMENTS

Investment Components

The components of investments, including associated derivatives, were as follows:

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


March 31, 2017

Cash	$	3,390	$	0	$	0		$	3,390	$	3,390	$	0		$	0
Mutual funds		1,139		0		0			1,139		1,139		0			0
Commercial paper		536		0		0			536		337		199			0
Certificates of deposit		1,767		0		0			1,767		1,341		426			0
U.S. government and agency securities		104,688		75		(345	)		104,418		102		104,316			0
Foreign government bonds		5,344		2		(16	)		5,330		404		4,926			0
Mortgage- and asset-backed securities		4,241		16		(4	)		4,253		0		4,253			0
Corporate notes and bonds		4,823		60		(17	)		4,866		0		4,866			0
Municipal securities		284		38		0			322		0		322			0
Common and preferred stock		3,380		3,561		(79	)		6,862		0		0			6,862
Other investments		516		0		0			516		0		(3	)		519


Total	$	130,108	$	3,752	$	(461	)	$	133,399	$	6,713	$	119,305		$	7,381

(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		615		0		0			615		0		(3	)		618


Total	$	119,078	$	4,895	$	(302	)	$	123,671	$	6,510	$	106,730		$	10,431

As of March 31, 2017 and June 30, 2016, the recorded bases of common and preferred stock that are restricted for more than one year or are not publicly traded were $856 million and $767 million, respectively. These investments are carried at cost and are reviewed quarterly for indicators of other-than-temporary impairment. It is not practicable for us to reliably estimate the fair value of these investments.

We lend certain fixed-income and equity securities to increase investment returns. These transactions are accounted for as secured borrowings and the loaned securities continue to be carried as investments on our consolidated balance sheets. Cash and/or security interests are received as collateral for the loaned securities with the amount determined based upon the underlying security lent and the creditworthiness of the borrower. As of March 31, 2017, collateral received was $4.6 billion, which was primarily comprised of U.S. government and agency securities. As of June 30, 2016, collateral received was $294 million, which was primarily comprised of cash.

Unrealized Losses on Investments

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

	Less than 12 Months					12 Months or Greater							Total Unrealized Losses


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


March 31, 2017

U.S. government and agency securities	$	68,195	$	(336	)	$	373	$	(9	)	$	68,568	$	(345	)
Foreign government bonds		5,281		(4	)		23		(12	)		5,304		(16	)
Mortgage- and asset-backed securities		774		(3	)		198		(1	)		972		(4	)
Corporate notes and bonds		658		(11	)		346		(6	)		1,004		(17	)
Common and preferred stock		295		(25	)		233		(54	)		528		(79	)


Total	$	75,203	$	(379	)	$	1,173	$	(82	)	$	76,376	$	(461	)

	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	)

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

Debt Investment Maturities

(In millions)	Cost Basis		Estimated Fair Value


March 31, 2017

Due in one year or less	$	16,644	$	16,637
Due after one year through five years		97,412		97,250
Due after five years through 10 years		6,536		6,512
Due after 10 years		1,091		1,093


Total	$	121,683	$	121,492

DERIVATIVES

9 Months Ended

Mar. 31, 2017

DERIVATIVES

NOTE 5 — DERIVATIVES

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

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

Foreign Currency

Certain forecasted transactions, assets, and liabilities are exposed to foreign currency risk. We monitor our foreign currency exposures daily to maximize the economic effectiveness of our foreign currency hedge positions. Option and forward contracts are used to hedge a portion of forecasted international revenue for up to three years in the future and are designated as cash flow hedging instruments. Principal currencies hedged include the euro, Japanese yen, British pound, Canadian dollar, and Australian dollar. As of March 31, 2017 and June 30, 2016, the total notional amounts of these foreign exchange contracts sold were $10.6 billion and $8.4 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 March 31, 2017 and June 30, 2016, the total notional amounts of these foreign exchange contracts sold were $5.2 billion and $5.3 billion, respectively.

Certain options and forwards not designated as hedging instruments are also used to manage the variability in foreign exchange rates on certain balance sheet amounts and to manage other foreign currency exposures. As of March 31, 2017, the total notional amounts of these foreign exchange contracts purchased and sold were $7.9 billion and $6.3 billion, respectively. 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.

Equity

Securities held in our equity and other investments portfolio are subject to market price risk. Market price risk is managed relative to broad-based global and domestic equity indices using certain convertible preferred investments, options, futures, and swap contracts not designated as hedging instruments. From time to time, to hedge our price risk, we may use and designate equity derivatives as hedging instruments, including puts, calls, swaps, and forwards. As of March 31, 2017, the total notional amounts of equity contracts purchased and sold for managing market price risk were $1.3 billion and $1.8 billion, respectively, of which $1.1 billion and $1.2 billion, respectively, were designated as hedging instruments. 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.

Interest Rate

Securities held in our fixed-income portfolio are subject to different interest rate risks based on their maturities. We manage the average maturity of our fixed-income portfolio to achieve economic returns that correlate to certain broad-based fixed-income indices using exchange-traded option and futures contracts, and over-the-counter swap and option contracts, none of which are designated as hedging instruments. As of March 31, 2017, the total notional amounts of fixed-interest rate contracts purchased and sold were $438 million and $393 million, respectively. 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.

In addition, we use “To Be Announced” forward purchase commitments of mortgage-backed assets to gain exposure to agency mortgage-backed securities. These meet the definition of a derivative instrument in cases where physical delivery of the assets is not taken at the earliest available delivery date. As of March 31, 2017 and June 30, 2016, the total notional derivative amounts of mortgage contracts purchased were $568 million and $548 million, respectively.

Credit

Our fixed-income portfolio is diversified and consists primarily of investment-grade securities. We use credit default swap contracts, not designated as hedging instruments, to manage credit exposures relative to broad-based indices and to facilitate portfolio diversification. We use credit default swaps as they are a low-cost method of managing exposure to individual credit risks or groups of credit risks. As of March 31, 2017, the total notional amounts of credit contracts purchased and sold were $312 million and $107 million, respectively. As of June 30, 2016, the total notional amounts of credit contracts purchased and sold were $440 million and $273 million, respectively.

Commodity

We use broad-based commodity exposures to enhance portfolio returns and to facilitate portfolio diversification. We use swaps, futures, and option contracts, not designated as hedging instruments, to generate and manage exposures to broad-based commodity indices. We use derivatives on commodities as they can be low-cost alternatives to the purchase and storage of a variety of commodities, including, but not limited to, precious metals, energy, and grain. As of March 31, 2017, the total notional amounts of commodity contracts purchased and sold were $306 million and $170 million, respectively. As of June 30, 2016, the total notional amounts of commodity contracts purchased and sold were $631 million and $162 million, respectively.

Credit Risk-Related Contingent Features

Certain of our counterparty agreements for derivative instruments contain provisions that require our issued and outstanding long-term unsecured debt to maintain an investment grade credit rating and require us to maintain minimum liquidity of $1.0 billion. To the extent we fail to meet these requirements, we will be required to post collateral, similar to the standard convention related to over-the-counter derivatives. As of March 31, 2017, our long-term unsecured debt rating was AAA, and cash investments were in excess of $1.0 billion. As a result, no collateral was required to be posted.

Fair Values of Derivative Instruments

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

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

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

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

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

	March 31, 2017																		June 30, 2016


	Assets												Liabilities						Assets									Liabilities


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

Non-designated Hedge Derivatives

Foreign exchange contracts	$	13		$	75		$	0		$	6		$	(117	)	$	(13	)	$	33		$	156		$	0		$	(296	)
Equity contracts		6			0			0			0			(13	)		0			23			0			0			(16	)
Interest rate contracts		9			0			0			0			(4	)		0			10			0			0			(25	)
Credit contracts		5			0			0			0			(2	)		0			6			0			0			(5	)
Commodity contracts		0			0			0			0			(1	)		0			0			0			0			0


Total	$	33		$	75		$	0		$	6		$	(137	)	$	(13	)	$	72		$	156		$	0		$	(342	)


Designated Hedge Derivatives

Foreign exchange contracts	$	9		$	347		$	0		$	81		$	(126	)	$	0		$	1		$	392		$	0		$	(263	)
Equity contracts		0			0			82			0			(57	)		(55	)		0			0			18			(25	)


Total	$	9		$	347		$	82		$	81		$	(183	)	$	(55	)	$	1		$	392		$	18		$	(288	)


Total gross amounts of derivatives	$	42		$	422		$	82		$	87		$	(320	)	$	(68	)	$	73		$	548		$	18		$	(630	)


Gross derivatives either offset or subject to an enforceable master netting agreement	$	40		$	422		$	82		$	87		$	(320	)	$	(68	)	$	69		$	548		$	18		$	(630	)
Gross amounts of derivatives offset on the balance sheet		(60	)		(106	)		(86	)		(18	)		208			59			(74	)		(302	)		(25	)		398


Net amounts presented on the balance sheet		(20	)		316			(4	)		69			(112	)		(9	)		(5	)		246			(7	)		(232	)
Gross amounts of derivatives not offset on the balance sheet		0			0			0			0			0			0			0			0			0			0
Cash collateral received		0			0			0			0			(260	)		0			0			0			0			(250	)


Net amount	$	(20	)	$	316		$	(4	)	$	69		$	(372	)	$	(9	)	$	(5	)	$	246		$	(7	)	$	(482	)

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

Fair Value Hedge Gains (Losses)

We recognized in other income (expense), net the following gains (losses) on contracts designated as fair value hedges and their related hedged items:

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


	2017			2016			2017			2016

Foreign Exchange Contracts

Derivatives	$	(248	)	$	(331	)	$	389		$	(364	)
Hedged items		257			340			(349	)		390


Total amount of ineffectiveness	$	9		$	9		$	40		$	26


Equity Contracts

Derivatives	$	(19	)	$	15		$	(36	)	$	(77	)
Hedged items		19			(15	)		36			77


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


Amount of equity contracts excluded from effectiveness assessment	$	(25	)	$	(12	)	$	(29	)	$	(8	)

Cash Flow Hedge Gains (Losses)

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

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


	2017			2016			2017			2016

Effective Portion

Gains (losses) recognized in other comprehensive income (net of tax effects of $3, $(19), $7, and $24)	$	(60	)	$	(125	)	$	424		$	158
Gains reclassified from accumulated other comprehensive income into revenue	$	167		$	171		$	414		$	461

Amount Excluded from Effectiveness Assessment and Ineffective Portion

Losses recognized in other income (expense), net	$	(121	)	$	(86	)	$	(275	)	$	(240	)

We estimate that $326 million of net derivative gains included in AOCI as of March 31, 2017 will be reclassified into earnings within the following 12 months. No significant amounts of gains (losses) were reclassified from AOCI into earnings as a result of forecasted transactions that failed to occur during the three and nine months ended March 31, 2017.

Non-Designated Derivative Gains (Losses)

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

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


	2017			2016			2017			2016

Foreign exchange contracts	$	(115	)	$	188		$	(120	)	$	113
Equity contracts		(42	)		(19	)		(84	)		(15	)
Interest rate contracts		8			(4	)		2			4
Credit contracts		1			1			5			(2	)
Commodity contracts		(18	)		(9	)		(18	)		(145	)


Total	$	(166	)	$	157		$	(215	)	$	(45	)

- Definition

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

+ References

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

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+ Details

FAIR VALUE MEASUREMENTS

9 Months Ended

Mar. 31, 2017

FAIR VALUE MEASUREMENTS

NOTE 6 — FAIR VALUE MEASUREMENTS

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

•

Level 1 – inputs are based upon unadjusted quoted prices for identical instruments 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, foreign government bonds, mortgage- and asset-backed securities, U.S. government and agency securities, and certificates of deposit. 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 and liabilities 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 Assets and Liabilities Measured at Fair Value on a Recurring Basis

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

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


March 31, 2017

Assets

Mutual funds	$	1,139	$	0	$	0	$	1,139	$	0		$	1,139
Commercial paper		0		536		0		536		0			536
Certificates of deposit		0		1,767		0		1,767		0			1,767
U.S. government and agency securities		101,203		3,215		0		104,418		0			104,418
Foreign government bonds		1		5,443		0		5,444		0			5,444
Mortgage- and asset-backed securities		0		4,249		0		4,249		0			4,249
Corporate notes and bonds		0		4,765		1		4,766		0			4,766
Municipal securities		0		322		0		322		0			322
Common and preferred stock		4,112		1,877		18		6,007		0			6,007
Derivatives		1		658		0		659		(270	)		389


Total	$	106,456	$	22,832	$	19	$	129,307	$	(270	)	$	129,037


Liabilities

Derivatives and other	$	6	$	383	$	25	$	414	$	(267	)	$	147

(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

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

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

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

(In millions)


March 31, 2017				June 30, 2016

Net fair value of assets measured at fair value on a recurring basis	$	129,037		$	119,019
Cash		3,390			3,501
Common and preferred stock measured at fair value on a nonrecurring basis		856			767
Other investments measured at fair value on a nonrecurring basis		519			618
Less derivative net assets classified as other current and long-term assets		(385	)		(246	)
Other		(18	)		12


Recorded basis of investment components	$	133,399		$	123,671

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

During the three and nine months ended March 31, 2017 and 2016, we did not record any material other-than-temporary impairments on financial assets required to be measured at fair value on a nonrecurring basis.

- Definition

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

+ References + Details

INVENTORIES

9 Months Ended

Mar. 31, 2017

INVENTORIES

NOTE 7 — INVENTORIES

The components of inventories were as follows:

(In millions)


	March 31, 2017		June 30, 2016

Raw materials	$	555	$	612
Work in process		127		158
Finished goods		1,297		1,481


Total	$	1,979	$	2,251

BUSINESS COMBINATIONS

9 Months Ended

Mar. 31, 2017

BUSINESS COMBINATIONS

NOTE 8 — BUSINESS COMBINATIONS

On December 8, 2016, we completed our acquisition of all issued and outstanding shares of LinkedIn, the world’s largest professional network on the Internet, for a preliminary total purchase price of $27.0 billion. The purchase price primarily consisted of cash of $26.4 billion. The acquisition is expected to accelerate the growth of LinkedIn, Office 365, and Dynamics 365. The financial results of LinkedIn have been included in our consolidated financial statements since the date of the acquisition.

The purchase price allocation as of the date of the acquisition was based on a preliminary valuation and is subject to revision as more detailed analyses are completed and additional information about the fair value of assets acquired and liabilities assumed becomes available.

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

(In millions)


Cash and cash equivalents	$	1,328
Short-term investments		2,110
Other current assets		697
Property and equipment		1,529
Intangible assets		7,887
Goodwill ⁽^a⁾		16,687
Short-term debt ^(b)		(1,323	)
Other current liabilities		(1,117	)
Deferred income taxes		(657	)
Other		(132	)


Total purchase price	$	27,009

(a)	Goodwill was assigned to our Productivity and Business Processes segment. The goodwill was primarily attributed to increased synergies that are expected to be achieved from the integration of LinkedIn. None of the goodwill is expected to be deductible for income tax purposes.

(b)

Convertible senior notes issued by LinkedIn on November 12, 2014, substantially all of which were redeemed after our acquisition of LinkedIn. The remaining $18 million of notes are not redeemable and are included in long-term debt on our consolidated balance sheets. See Note 11 – Debt for further information.

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

(In millions)	Amount		Weighted Average Life


Customer-related	$	3,607		7 years
Marketing-related (trade names)		2,148		20 years
Technology-based		2,109		3 years
Contract-based		23		5 years


Fair value of intangible assets acquired	$	7,887		9 years

Our consolidated income statements include the following revenue and operating loss attributable to LinkedIn since the date of acquisition:

(In millions)	Three Months Ended March 31, 2017			Nine Months Ended March 31, 2017




Revenue	$	975		$	1,203
Operating loss	$	(386	)	$	(587	)

Following are the supplemental consolidated financial results of Microsoft Corporation on an unaudited pro forma basis, as if the acquisition had been consummated on July 1, 2015:

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


	2017		2016			2017		2016

Revenue	$	22,086	$	21,377	$	68,357	$	67,116
Net income	$	4,820	$	3,402	$	14,283	$	12,547
Diluted earnings per share	$	0.62	$	0.43	$	1.82	$	1.56

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 related to purchase accounting, primarily amortization of intangible assets. Acquisition costs and other nonrecurring charges were immaterial and are included in the earliest period presented.

GOODWILL

9 Months Ended

Mar. 31, 2017

GOODWILL

NOTE 9 — GOODWILL

Changes in the carrying amount of goodwill were as follows:

(In millions)	June 30, 2016		Acquisitions			Other			March 31, 2017


Productivity and Business Processes	$	6,678	$	16,854	^(a)	$	(149	)	$	23,383
Intelligent Cloud		5,467		37			24			5,528
More Personal Computing		5,727		115			(85	)		5,757


Total	$	17,872	$	17,006		$	(210	)	$	34,668

(a)	Includes goodwill related to LinkedIn and other acquisitions. See Note 8 – Business Combinations for further information.

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 change in the amounts allocated to goodwill during the periods in which the adjustments are determined.

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.

INTANGIBLE ASSETS

9 Months Ended

Mar. 31, 2017

INTANGIBLE ASSETS

NOTE 10 — INTANGIBLE ASSETS

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

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


	March 31, 2017								June 30, 2016

Technology-based ^(a)	$	7,646		$	(3,952	)	$	3,694	$	5,970	$	(3,648	)	$	2,322
Marketing-related		3,999			(759	)		3,240		1,869		(616	)		1,253
Contract-based		841			(715	)		126		796		(718	)		78
Customer-related		4,044			(557	)		3,487		465		(385	)		80


Total	$	16,530	^(b)	$	(5,983	)	$	10,547	$	9,100	$	(5,367	)	$	3,733

(a)	Technology-based intangible assets included $73 million and $115 million of net carrying amount of software to be sold, leased, or otherwise marketed as of March 31, 2017 and June 30, 2016, respectively.

(b)	Includes intangible assets related to LinkedIn and other additions. See Note 8 – Business Combinations for further information.

Intangible assets amortization expense was $560 million and $1.1 billion for the three and nine months ended March 31, 2017, respectively, and $249 million and $740 million for the three and nine months ended March 31, 2016, respectively. Amortization of capitalized software was $14 million and $42 million for the three and nine months ended March 31, 2017, respectively, and $18 million and $55 million for the three and nine months ended March 31, 2016, respectively.

The following table outlines the estimated future amortization expense related to intangible assets held as of March 31, 2017:

(In millions)


Year Ending June 30,

2017 (excluding the nine months ended March 31, 2017)	$	544
2018		2,145
2019		1,660
2020		1,148
2021		970
Thereafter		4,080


Total	$	10,547

DEBT

9 Months Ended

Mar. 31, 2017

DEBT

NOTE 11 — DEBT

Short-term Debt

As of March 31, 2017, we had $7.2 billion of commercial paper issued and outstanding, with a weighted average interest rate of 0.86% and maturities ranging from 15 days to 266 days. 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. The estimated fair value of this commercial paper approximates its carrying value.

We currently have two $5.0 billion credit facilities that expire on October 31, 2017 and November 14, 2018, respectively. These credit facilities serve as a back-up for our commercial paper program. As of March 31, 2017, we were in compliance with the only financial covenant in both credit agreements, which requires us to maintain a coverage ratio of at least three times earnings before interest, taxes, depreciation, and amortization to interest expense, as defined in the credit agreements. No amounts were drawn against these credit facilities during any of the periods presented.

Long-term Debt

As of March 31, 2017, the total carrying value and estimated fair value of our long-term debt, including the current portion, were $76.8 billion and $78.1 billion, respectively. As of June 30, 2016, the total carrying value and estimated fair value of our long-term debt were $40.6 billion and $44.0 billion, respectively. 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:

Due Date	Face Value March 31, 2017		Face Value June 30, 2016		Stated Interest Rate		Effective Interest Rate


	(In millions)

Notes

November 15, 2017	$	600	$	600		0.875%		1.084%
May 1, 2018		450		450		1.000%		1.106%
November 3, 2018		1,750		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%
August 8, 2019 ^(a)		2,500		*		1.100%		1.203%
November 1, 2019 ⁽^b⁾		18		*		0.500%		0.500%
February 6, 2020 ^(c)		1,500		*		1.850%		1.952%
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		2,250		2,250		2.000%		2.093%
February 8, 2021		500		500		4.000%		4.082%
August 8, 2021 ^(a)		2,750		*		1.550%		1.642%
December 6, 2021 ⁽^d⁾		1,872		1,944		2.125%		2.233%
February 6, 2022 ^(c)		1,750		*		2.400%		2.520%
February 12, 2022		1,500		1,500		2.375%		2.466%
November 3, 2022		1,000		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%
August 8, 2023 ^(a)		1,500		*		2.000%		2.101%
December 15, 2023		1,500		1,500		3.625%		3.726%
February 6, 2024 ^(c)		2,250		*		2.875%		3.041%
February 12, 2025		2,250		2,250		2.700%		2.772%
November 3, 2025		3,000		3,000		3.125%		3.176%
August 8, 2026 ^(a)		4,000		*		2.400%		2.464%
February 6, 2027 ^(c)		4,000		*		3.300%		3.383%
December 6, 2028 ⁽^d⁾		1,872		1,944		3.125%		3.218%
May 2, 2033 ⁽^d⁾		588		611		2.625%		2.690%
February 12, 2035		1,500		1,500		3.500%		3.604%
November 3, 2035		1,000		1,000		4.200%		4.260%
August 8, 2036 ^(a)		2,250		*		3.450%		3.510%
February 6, 2037 ^(c)		2,500		*		4.100%		4.152%
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		3,000		3,000		4.450%		4.492%
August 8, 2046 ^(a)		4,500		*		3.700%		3.743%
February 6, 2047 ^(c)		3,000		*		4.250%		4.287%
February 12, 2055		2,250		2,250		4.000%		4.063%
November 3, 2055		1,000		1,000		4.750%		4.782%
August 8, 2056 ^(a)		2,250		*		3.950%		4.033%
February 6, 2057 ^(c)		2,000		*		4.500%		4.528%


Total	$	77,550	$	40,949

(a)	In August 2016, we issued $19.8 billion of debt securities.

(b)	Remaining notes that were acquired as part of the LinkedIn acquisition. See Note 8 – Business Combinations for further information.

(c)	In February 2017, we issued $17.0 billion of debt securities.

(d)	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. Effective July 1, 2016, we retrospectively adopted accounting guidance that requires debt issuance costs to be recorded as a deduction from the carrying amount of the debt liability, consistent with debt discounts. As of March 31, 2017 and June 30, 2016, the combined aggregate unamortized discount and debt issuance costs associated with our long-term debt, including the current portion, were $729 million and $392 million, respectively.

INCOME TAXES

9 Months Ended

Mar. 31, 2017

INCOME TAXES

NOTE 12 — INCOME TAXES

Our effective tax rate for the three months ended March 31, 2017 and 2016 was 19% and 25%, respectively, and our effective tax rate for each of the nine months ended March 31, 2017 and 2016 was 17%. Our effective tax rate was lower than the U.S. federal statutory rate primarily due to earnings taxed at lower rates in foreign jurisdictions resulting from producing and distributing our products and services through our foreign regional operations centers in Ireland, Singapore, and Puerto Rico.

This quarter’s effective tax rate was lower than the prior year’s third quarter effective tax rate, primarily due to changes in the mix of our income before income taxes between the U.S. and foreign countries and an increase in the tax benefits related to stock-based compensation.

Tax contingencies and other income tax liabilities were $14.4 billion and $11.8 billion as of March 31, 2017 and June 30, 2016, respectively, and are included in other long-term liabilities. This increase relates primarily to current period intercompany transfer pricing and foreign tax credits.

While we settled a portion of the Internal Revenue Service (“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. We also continue to be subject to examination by the IRS for tax years 2010 to 2016. In February 2012, the IRS withdrew its 2011 Revenue Agents Report for tax years 2004 to 2006 and reopened the audit phase of the examination. As of March 31, 2017, 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 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 2017, some of which are currently under audit by local tax authorities. The resolutions of these audits are not expected to be material to our consolidated financial statements.

RESTRUCTURING CHARGES

9 Months Ended

Mar. 31, 2017

RESTRUCTURING CHARGES

NOTE 13 — RESTRUCTURING CHARGES

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 fiscal year 2017.

2016 Restructuring

In the fourth quarter of fiscal year 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 fiscal year 2017 as an extension of the earlier plan. These actions are expected to be completed by the end of the current fiscal year.

In fiscal year 2016, we incurred restructuring charges of $501 million in connection with the 2016 restructuring plans, 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 statements, and were reflected in Corporate and Other in our table of operating income (loss) by segment.

Changes in the restructuring liability were as follows:

(In millions)		Severance			Other	^(a)		Total


Restructuring liability as of June 30, 2016	$	470		$	239		$	709
Restructuring charges		0			0			0
Cash paid		(327	)		(76	)		(403	)
Other		(7	)		(2	)		(9	)


Restructuring liability as of March 31, 2017	$	136		$	161		$	297

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

UNEARNED REVENUE

9 Months Ended

Mar. 31, 2017

UNEARNED REVENUE

NOTE 14 — UNEARNED REVENUE

Unearned revenue by segment was as follows:

(In millions)


	March 31, 2017		June 30, 2016

Productivity and Business Processes	$	11,159	$	12,497
Intelligent Cloud		9,722		11,472
More Personal Computing		2,930		3,334
Corporate and Other ^(a)		11,922		6,606


Total	$	35,733	$	33,909

(a)	Consists of the net revenue deferral from Windows 10.

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.

- Definition

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.

+ References + Details

COMMITMENTS AND CONTINGENCIES

9 Months Ended

Mar. 31, 2017

COMMITMENTS AND CONTINGENCIES

NOTE 15 — COMMITMENTS AND CONTINGENCIES

Capital Lease Commitments

We have capital leases for datacenters and corporate offices. As of March 31, 2017 and June 30, 2016, assets recorded under capital leases were $1.9 billion and $865 million, respectively, and accumulated depreciation associated with capital leases was $124 million and $57 million, respectively. For the three and nine months ended March 31, 2017, property and equipment acquired under capital leases was $296 million and $1.1 billion, respectively. For both the three and nine months ended March 31, 2016, property and equipment acquired under capital leases was $97 million. As of March 31, 2017 and June 30, 2016, capital lease obligations included in other current liabilities were $86 million and $25 million, respectively, and capital lease obligations included in other long-term liabilities were $1.7 billion and $761 million, respectively.

Future minimum lease payments under non-cancellable capital leases as of March 31, 2017 were as follows:

(In millions)


Year Ending June 30,

2017 (excluding the nine months ended March 31, 2017)	$	35
2018		149
2019		155
2020		159
2021		163
Thereafter		1,826


Total ^(a)	$	2,487

(a)	Includes imputed interest of $660 million.

As of March 31, 2017, we had additional purchase obligations for capital leases executed but not yet recorded of $4.1 billion.

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 Corporation (“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’s appeal of this decision was heard by the U.S. Court of Appeals for the Federal Circuit on April 7, 2017. 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 unlawful exploitation of standard essential patents. That case is set for trial in September 2018.

European copyright levies

We assumed from Nokia all potential liability due to Nokia’s alleged failure to pay “private copyright 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 it 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 were pending in Germany and Austria, due to both the high volume of sales and high levy amounts sought in these countries. We reached a settlement of the Austrian case in August 2016. In Germany, the only period for which settlement has not been reached is 2004 through 2007. In July 2016, the German Supreme Court heard our appeal contesting the legality of the levy assessed on phones with music players and over five megabytes of memory. The Supreme Court issued a ruling in December 2016, finding that the levy may not be appropriate for phones that have the ability to receive music files only via Bluetooth or infrared inputs, and remanded for further proceedings. A new case schedule has not been set, and we are participating in industry-wide settlement negotiations with the collecting society.

Other patent and intellectual property claims

In addition to these cases, there were 43 other patent infringement cases pending against Microsoft as of March 31, 2017.

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 filed their case in chief in August 2016, setting out claims made, authorities, and evidence in support of their claims. 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 our acquisition of Nokia’s Devices and Services business 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 trial court granted in part and denied in part defendants’ motion to exclude plaintiffs’ general causation experts. The defendants filed an interlocutory appeal challenging the standard for evaluating expert scientific evidence, which the District of Columbia Court of Appeals heard en banc. In October 2016, the Court of Appeals issued its decision adopting the standard advocated by defendants and remanding the cases to the trial court for further proceedings under that standard. Plaintiffs have filed a motion to reopen discovery and file additional expert evidence.

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 has been dormant for more than two years.

Other Contingencies

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

As of March 31, 2017, we accrued aggregate legal liabilities of $443 million. While we intend to defend these matters vigorously, adverse outcomes that we estimate could reach approximately $1.5 billion in aggregate beyond recorded amounts are reasonably possible. Were unfavorable final outcomes to occur, there exists the possibility of a material adverse impact on our consolidated financial statements for the period in which the effects become reasonably estimable.

STOCKHOLDERS' EQUITY

9 Months Ended

Mar. 31, 2017

STOCKHOLDERS' EQUITY

NOTE 16 — STOCKHOLDERS’ EQUITY

Share Repurchases

On September 16, 2013, our Board of Directors approved a share repurchase program authorizing up to $40.0 billion in share repurchases. This share repurchase program became effective on October 1, 2013, and was completed on December 22, 2016.

On September 20, 2016, our Board of Directors approved a share repurchase program authorizing up to an additional $40.0 billion in share repurchases. This share repurchase program commenced on December 22, 2016 following completion of the prior program approved on September 16, 2013, has no expiration date, and may be suspended or discontinued at any time without notice. As of March 31, 2017, $38.4 billion remained of this $40.0 billion share repurchase program.

We repurchased the following shares of common stock under the share repurchase programs:

(In millions)	Shares		Amount				Shares		Amount


Fiscal Year				2017						2016

First Quarter ^(a)		63		$	3,550			89		$	4,000
Second Quarter ^(a)		59			3,533			66			3,600
Third Quarter		25			1,600	^(b)		69			3,600	^(a)


Total		147		$	8,683			224		$	11,200

(a)	Repurchased under the share repurchase program approved September 16, 2013.

(b)	Repurchased under the share repurchase program approved September 20, 2016.

The above table excludes shares repurchased to settle statutory employee tax withholding related to the vesting of stock awards. All repurchases were made using cash resources.

Dividends

Our Board of Directors declared the following dividends:

Declaration Date	Dividend Per Share		Record Date		Total Amount		Payment Date


					(in millions)

Fiscal year 2017

September 20, 2016	$	0.39		November 17, 2016	$	3,024		December 8, 2016
November 30, 2016	$	0.39		February 16, 2017	$	3,012		March 9, 2017
March 14, 2017	$	0.39		May 18, 2017	$	3,012		June 8, 2017

Declaration Date	Dividend Per Share		Record Date		Total Amount		Payment Date


					(in millions)

Fiscal year 2016

September 15, 2015	$	0.36		November 19, 2015	$	2,868		December 10, 2015
December 2, 2015	$	0.36		February 18, 2016	$	2,842		March 10, 2016
March 15, 2016	$	0.36		May 19, 2016	$	2,821		June 9, 2016

The dividend declared on March 14, 2017 was included in other current liabilities as of March 31, 2017.

- Definition

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

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+ Details

ACCUMULATED OTHER COMPREHENSIVE INCOME

9 Months Ended

Mar. 31, 2017

ACCUMULATED OTHER COMPREHENSIVE INCOME

NOTE 17 — ACCUMULATED OTHER COMPREHENSIVE INCOME

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

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


	2017			2016			2017			2016

Derivatives

Accumulated other comprehensive income balance, beginning of period	$	595		$	598		$	352		$	590
Unrealized gains (losses), net of tax effects of $3, $(19), $7, and $24		(60	)		(125	)		424			158

Reclassification adjustments for gains included in revenue		(167	)		(171	)		(414	)		(461	)
Tax expense included in provision for income taxes		2			11			8			26


Amounts reclassified from accumulated other comprehensive income		(165	)		(160	)		(406	)		(435	)


Net current period other comprehensive income (loss)		(225	)		(285	)		18			(277	)


Accumulated other comprehensive income balance, end of period	$	370		$	313		$	370		$	313


Investments

Accumulated other comprehensive income balance, beginning of period	$	2,030		$	2,758		$	2,941		$	3,169
Unrealized gains, net of tax effects of $307, $217, $197, and $34		571			402			367			64

Reclassification adjustments for gains included in other income (expense), net		(779	)		(88	)		(1,867	)		(200	)
Tax expense included in provision for income taxes		273			31			654			70


Amounts reclassified from accumulated other comprehensive income		(506	)		(57	)		(1,213	)		(130	)


Net current period other comprehensive income (loss)		65			345			(846	)		(66	)


Accumulated other comprehensive income balance, end of period	$	2,095		$	3,103		$	2,095		$	3,103


Translation adjustments and other

Accumulated other comprehensive loss balance, beginning of period	$	(2,113	)	$	(1,583	)	$	(1,756	)	$	(1,237	)
Translation adjustments and other, net of tax effects of $0, $3, $7, and $(18)		292			7			(65	)		(339	)


Accumulated other comprehensive loss balance, end of period	$	(1,821	)	$	(1,576	)	$	(1,821	)	$	(1,576	)


Accumulated other comprehensive income, end of period	$	644		$	1,840		$	644		$	1,840

- Definition

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

+ References

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+ Details

SEGMENT INFORMATION

9 Months Ended

Mar. 31, 2017

SEGMENT INFORMATION

NOTE 18 — SEGMENT INFORMATION

In its operation of the business, management, including our chief operating decision maker, who is also our Chief Executive Officer, reviews certain financial information, including segmented internal profit and loss statements prepared on a basis not consistent with U.S. GAAP. During the periods presented, we reported our financial performance based on the following segments: Productivity and Business Processes, Intelligent Cloud, and More Personal Computing.

In December 2016, we completed our acquisition of LinkedIn. LinkedIn is reported as part of our Productivity and Business Processes segment. LinkedIn offers services that can be used by customers to transform the way they hire, market, sell, and learn on a global basis through Talent Solutions, Marketing Solutions, and Premium Subscriptions.

•

Talent Solutions is comprised of Hiring and Learning and Development. Hiring provides services to recruiters that enable them to attract, recruit, and hire talent. Learning and Development provides subscriptions to enterprises and individuals to online learning content.

•

Marketing Solutions enable enterprises and individuals to advertise to LinkedIn’s member base through relevant content. Advertising (consisting of content-based, graphic display, text link, and programmatic) is shown primarily on LinkedIn.com and its mobile applications.

•

Premium Subscriptions (inclusive of Sales Solutions) enable professionals to manage their professional identity, grow their network, and connect with talent.

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.

•

Microsoft Dynamics (“Dynamics”) business solutions, including Dynamics ERP on-premises, Dynamics CRM on-premises, and Dynamics 365, a set of cloud-based applications across ERP and CRM.

•

LinkedIn, including Talent Solutions, Marketing Solutions, and Premium Subscriptions.

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 and other non-volume licensing of the Windows operating system; Windows Commercial, comprising volume licensing of the Windows operating system, Windows cloud services, and other Windows commercial offerings; patent licensing; Windows Embedded; MSN display advertising; and Windows Phone licensing.

•

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

•

Gaming, including Xbox hardware and Xbox software and services, comprising Xbox Live transactions, subscriptions, and advertising (“Xbox Live”), video games, and third-party video game royalties.

•

Search advertising.

Corporate and Other 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 Windows 10 revenue recognition.

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

In addition, certain costs incurred at a corporate level that are identifiable and that benefit our segments are allocated to them. These allocated costs include costs of: legal, including settlements, and fines; information technology; human resources; finance; excise taxes; field selling; shared facilities services; and customer service and support. Each allocation is measured differently based on the specific facts and circumstances of the costs being allocated. Certain corporate-level activity is not allocated to our segments, including impairment, integration, and restructuring expenses.

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

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


	2017			2016			2017			2016

Revenue

Productivity and Business Processes	$	7,958		$	6,521		$	21,998		$	19,517
Intelligent Cloud		6,763			6,096			20,006			18,331
More Personal Computing		8,836			9,539			29,953			31,474
Corporate and Other ^(a)		(1,467	)		(1,625	)		(5,324	)		(4,616	)


Total	$	22,090		$	20,531		$	66,633		$	64,706

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


	2017			2016			2017			2016

Operating income (loss)

Productivity and Business Processes	$	2,783		$	2,981		$	9,159		$	9,429
Intelligent Cloud		2,181			2,176			6,637			7,135
More Personal Computing		2,097			1,751			6,524			5,154
Corporate and Other ^(a)		(1,467	)		(1,625	)		(5,324	)		(4,616	)


Total	$	5,594		$	5,283		$	16,996		$	17,102

(a)	Consists of the net revenue deferral from Windows 10.

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

- Definition

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

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+ Details

ACCOUNTING POLICIES (Policies)

9 Months Ended

Mar. 31, 2017

Accounting Principles

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

Principles of Consolidation

Estimates and Assumptions

Product Revenue and Service and Other Revenue

Recent Accounting Guidance Not Yet Adopted

Accounting for Income Taxes – Intra-Entity Asset Transfers

Financial Instruments – Credit Losses

Leases

Financial Instruments – Recognition, Measurement, Presentation, and Disclosure

Revenue from Contracts with Customers

Earnings Per Share Policy

Derivative Instruments Policy

Fair Value Measurements Policy

•

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

Segment Reporting Policy

EARNINGS PER SHARE (Tables)

9 Months Ended

Mar. 31, 2017

Basic and Diluted Earnings Per Share

The components of basic and diluted EPS were as follows:

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


	2017		2016		2017		2016

Net income available for common shareholders (A)	$	4,801	$	3,756	$	14,691	$	13,676


Weighted average outstanding shares of common stock (B)		7,725		7,895		7,756		7,952
Dilutive effect of stock-based awards		88		90		84		89


Common stock and common stock equivalents (C)		7,813		7,985		7,840		8,041


Earnings Per Share

Basic (A/B)	$	0.62	$	0.48	$	1.89	$	1.72
Diluted (A/C)	$	0.61	$	0.47	$	1.87	$	1.70

OTHER INCOME (EXPENSE), NET (Tables)

9 Months Ended

Mar. 31, 2017

Components of Other Income (Expense), Net

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

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


	2017			2016			2017			2016

Dividends and interest income	$	380		$	230		$	984		$	629
Interest expense		(609	)		(340	)		(1,567	)		(898	)
Net recognized gains on investments		790			85			1,893			193
Net losses on derivatives		(200	)		(155	)		(340	)		(414	)
Net losses on foreign currency remeasurements		0			(18	)		(134	)		(52	)
Other, net		(39	)		(49	)		(228	)		(156	)


Total	$	322		$	(247	)	$	608		$	(698	)

Net Recognized Gains (Losses) on Investments

Following are details of net recognized gains (losses) on investments:

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


	2017			2016			2017			2016

Other-than-temporary impairments of investments	$	(15	)	$	(86	)	$	(54	)	$	(248	)
Realized gains from sales of available-for-sale securities		938			282			2,272			740
Realized losses from sales of available-for-sale securities		(133	)		(111	)		(325	)		(299	)


Total	$	790		$	85		$	1,893		$	193

INVESTMENTS (Tables)

9 Months Ended

Mar. 31, 2017

Investment Components, Including Associated Derivatives

The components of investments, including associated derivatives, were as follows:

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


March 31, 2017

Cash	$	3,390	$	0	$	0		$	3,390	$	3,390	$	0		$	0
Mutual funds		1,139		0		0			1,139		1,139		0			0
Commercial paper		536		0		0			536		337		199			0
Certificates of deposit		1,767		0		0			1,767		1,341		426			0
U.S. government and agency securities		104,688		75		(345	)		104,418		102		104,316			0
Foreign government bonds		5,344		2		(16	)		5,330		404		4,926			0
Mortgage- and asset-backed securities		4,241		16		(4	)		4,253		0		4,253			0
Corporate notes and bonds		4,823		60		(17	)		4,866		0		4,866			0
Municipal securities		284		38		0			322		0		322			0
Common and preferred stock		3,380		3,561		(79	)		6,862		0		0			6,862
Other investments		516		0		0			516		0		(3	)		519


Total	$	130,108	$	3,752	$	(461	)	$	133,399	$	6,713	$	119,305		$	7,381

(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		615		0		0			615		0		(3	)		618


Total	$	119,078	$	4,895	$	(302	)	$	123,671	$	6,510	$	106,730		$	10,431

Unrealized Losses on Investments

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

	Less than 12 Months					12 Months or Greater							Total Unrealized Losses


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


March 31, 2017

U.S. government and agency securities	$	68,195	$	(336	)	$	373	$	(9	)	$	68,568	$	(345	)
Foreign government bonds		5,281		(4	)		23		(12	)		5,304		(16	)
Mortgage- and asset-backed securities		774		(3	)		198		(1	)		972		(4	)
Corporate notes and bonds		658		(11	)		346		(6	)		1,004		(17	)
Common and preferred stock		295		(25	)		233		(54	)		528		(79	)


Total	$	75,203	$	(379	)	$	1,173	$	(82	)	$	76,376	$	(461	)

	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	)

Debt Investment Maturities

(In millions)	Cost Basis		Estimated Fair Value


March 31, 2017

Due in one year or less	$	16,644	$	16,637
Due after one year through five years		97,412		97,250
Due after five years through 10 years		6,536		6,512
Due after 10 years		1,091		1,093


Total	$	121,683	$	121,492

DERIVATIVES (Tables)

9 Months Ended

Mar. 31, 2017

Fair Values of Derivative Instruments

	March 31, 2017																		June 30, 2016


	Assets												Liabilities						Assets									Liabilities


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

Non-designated Hedge Derivatives

Foreign exchange contracts	$	13		$	75		$	0		$	6		$	(117	)	$	(13	)	$	33		$	156		$	0		$	(296	)
Equity contracts		6			0			0			0			(13	)		0			23			0			0			(16	)
Interest rate contracts		9			0			0			0			(4	)		0			10			0			0			(25	)
Credit contracts		5			0			0			0			(2	)		0			6			0			0			(5	)
Commodity contracts		0			0			0			0			(1	)		0			0			0			0			0


Total	$	33		$	75		$	0		$	6		$	(137	)	$	(13	)	$	72		$	156		$	0		$	(342	)


Designated Hedge Derivatives

Foreign exchange contracts	$	9		$	347		$	0		$	81		$	(126	)	$	0		$	1		$	392		$	0		$	(263	)
Equity contracts		0			0			82			0			(57	)		(55	)		0			0			18			(25	)


Total	$	9		$	347		$	82		$	81		$	(183	)	$	(55	)	$	1		$	392		$	18		$	(288	)


Total gross amounts of derivatives	$	42		$	422		$	82		$	87		$	(320	)	$	(68	)	$	73		$	548		$	18		$	(630	)


Gross derivatives either offset or subject to an enforceable master netting agreement	$	40		$	422		$	82		$	87		$	(320	)	$	(68	)	$	69		$	548		$	18		$	(630	)
Gross amounts of derivatives offset on the balance sheet		(60	)		(106	)		(86	)		(18	)		208			59			(74	)		(302	)		(25	)		398


Net amounts presented on the balance sheet		(20	)		316			(4	)		69			(112	)		(9	)		(5	)		246			(7	)		(232	)
Gross amounts of derivatives not offset on the balance sheet		0			0			0			0			0			0			0			0			0			0
Cash collateral received		0			0			0			0			(260	)		0			0			0			0			(250	)


Net amount	$	(20	)	$	316		$	(4	)	$	69		$	(372	)	$	(9	)	$	(5	)	$	246		$	(7	)	$	(482	)

Non-designated Hedge Derivatives

Gains (Losses) on Derivative Instruments

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


	2017			2016			2017			2016

Foreign exchange contracts	$	(115	)	$	188		$	(120	)	$	113
Equity contracts		(42	)		(19	)		(84	)		(15	)
Interest rate contracts		8			(4	)		2			4
Credit contracts		1			1			5			(2	)
Commodity contracts		(18	)		(9	)		(18	)		(145	)


Total	$	(166	)	$	157		$	(215	)	$	(45	)

Fair value hedging

Gains (Losses) on Derivative Instruments

We recognized in other income (expense), net the following gains (losses) on contracts designated as fair value hedges and their related hedged items:

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


	2017			2016			2017			2016

Foreign Exchange Contracts

Derivatives	$	(248	)	$	(331	)	$	389		$	(364	)
Hedged items		257			340			(349	)		390


Total amount of ineffectiveness	$	9		$	9		$	40		$	26


Equity Contracts

Derivatives	$	(19	)	$	15		$	(36	)	$	(77	)
Hedged items		19			(15	)		36			77


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


Amount of equity contracts excluded from effectiveness assessment	$	(25	)	$	(12	)	$	(29	)	$	(8	)

Cash flow hedging

Gains (Losses) on Derivative Instruments

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

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


	2017			2016			2017			2016

Effective Portion

Gains (losses) recognized in other comprehensive income (net of tax effects of $3, $(19), $7, and $24)	$	(60	)	$	(125	)	$	424		$	158
Gains reclassified from accumulated other comprehensive income into revenue	$	167		$	171		$	414		$	461

Amount Excluded from Effectiveness Assessment and Ineffective Portion

Losses recognized in other income (expense), net	$	(121	)	$	(86	)	$	(275	)	$	(240	)

FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Mar. 31, 2017

Financial Assets and Liabilities Measured at Fair Value on Recurring Basis

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

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


March 31, 2017

Assets

Mutual funds	$	1,139	$	0	$	0	$	1,139	$	0		$	1,139
Commercial paper		0		536		0		536		0			536
Certificates of deposit		0		1,767		0		1,767		0			1,767
U.S. government and agency securities		101,203		3,215		0		104,418		0			104,418
Foreign government bonds		1		5,443		0		5,444		0			5,444
Mortgage- and asset-backed securities		0		4,249		0		4,249		0			4,249
Corporate notes and bonds		0		4,765		1		4,766		0			4,766
Municipal securities		0		322		0		322		0			322
Common and preferred stock		4,112		1,877		18		6,007		0			6,007
Derivatives		1		658		0		659		(270	)		389


Total	$	106,456	$	22,832	$	19	$	129,307	$	(270	)	$	129,037


Liabilities

Derivatives and other	$	6	$	383	$	25	$	414	$	(267	)	$	147

(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

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

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

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

(In millions)


March 31, 2017				June 30, 2016

Net fair value of assets measured at fair value on a recurring basis	$	129,037		$	119,019
Cash		3,390			3,501
Common and preferred stock measured at fair value on a nonrecurring basis		856			767
Other investments measured at fair value on a nonrecurring basis		519			618
Less derivative net assets classified as other current and long-term assets		(385	)		(246	)
Other		(18	)		12


Recorded basis of investment components	$	133,399		$	123,671

INVENTORIES (Tables)

9 Months Ended

Mar. 31, 2017

Components of Inventories

The components of inventories were as follows:

(In millions)


	March 31, 2017		June 30, 2016

Raw materials	$	555	$	612
Work in process		127		158
Finished goods		1,297		1,481


Total	$	1,979	$	2,251

BUSINESS COMBINATIONS (Tables) - LinkedIn Corporation

9 Months Ended

Mar. 31, 2017

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

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

(In millions)


Cash and cash equivalents	$	1,328
Short-term investments		2,110
Other current assets		697
Property and equipment		1,529
Intangible assets		7,887
Goodwill ⁽^a⁾		16,687
Short-term debt ^(b)		(1,323	)
Other current liabilities		(1,117	)
Deferred income taxes		(657	)
Other		(132	)


Total purchase price	$	27,009

(a)	Goodwill was assigned to our Productivity and Business Processes segment. The goodwill was primarily attributed to increased synergies that are expected to be achieved from the integration of LinkedIn. None of the goodwill is expected to be deductible for income tax purposes.

(b)

Acquired Intangible Assets

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

(In millions)	Amount		Weighted Average Life


Customer-related	$	3,607		7 years
Marketing-related (trade names)		2,148		20 years
Technology-based		2,109		3 years
Contract-based		23		5 years


Fair value of intangible assets acquired	$	7,887		9 years

Revenue and Operating Loss Attributable to Acquiree, Since the Date of Acquisition

Our consolidated income statements include the following revenue and operating loss attributable to LinkedIn since the date of acquisition:

(In millions)	Three Months Ended March 31, 2017			Nine Months Ended March 31, 2017




Revenue	$	975		$	1,203
Operating loss	$	(386	)	$	(587	)

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

Following are the supplemental consolidated financial results of Microsoft Corporation on an unaudited pro forma basis, as if the acquisition had been consummated on July 1, 2015:

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


	2017		2016			2017		2016

Revenue	$	22,086	$	21,377	$	68,357	$	67,116
Net income	$	4,820	$	3,402	$	14,283	$	12,547
Diluted earnings per share	$	0.62	$	0.43	$	1.82	$	1.56

GOODWILL (Tables)

9 Months Ended

Mar. 31, 2017

Carrying Amount of Goodwill

Changes in the carrying amount of goodwill were as follows:

(In millions)	June 30, 2016		Acquisitions			Other			March 31, 2017


Productivity and Business Processes	$	6,678	$	16,854	^(a)	$	(149	)	$	23,383
Intelligent Cloud		5,467		37			24			5,528
More Personal Computing		5,727		115			(85	)		5,757


Total	$	17,872	$	17,006		$	(210	)	$	34,668

(a)	Includes goodwill related to LinkedIn and other acquisitions. See Note 8 – Business Combinations for further information.

INTANGIBLE ASSETS (Tables)

9 Months Ended

Mar. 31, 2017

Finite-Lived Intangible Assets

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

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


	March 31, 2017								June 30, 2016

Technology-based ^(a)	$	7,646		$	(3,952	)	$	3,694	$	5,970	$	(3,648	)	$	2,322
Marketing-related		3,999			(759	)		3,240		1,869		(616	)		1,253
Contract-based		841			(715	)		126		796		(718	)		78
Customer-related		4,044			(557	)		3,487		465		(385	)		80


Total	$	16,530	^(b)	$	(5,983	)	$	10,547	$	9,100	$	(5,367	)	$	3,733

(a)	Technology-based intangible assets included $73 million and $115 million of net carrying amount of software to be sold, leased, or otherwise marketed as of March 31, 2017 and June 30, 2016, respectively.

(b)	Includes intangible assets related to LinkedIn and other additions. See Note 8 – Business Combinations for further information.

Estimated Future Amortization Expense Related to Intangible Assets

The following table outlines the estimated future amortization expense related to intangible assets held as of March 31, 2017:

(In millions)


Year Ending June 30,

2017 (excluding the nine months ended March 31, 2017)	$	544
2018		2,145
2019		1,660
2020		1,148
2021		970
Thereafter		4,080


Total	$	10,547

DEBT (Tables)

9 Months Ended

Mar. 31, 2017

Long-term Debt

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

Due Date	Face Value March 31, 2017		Face Value June 30, 2016		Stated Interest Rate		Effective Interest Rate


	(In millions)

Notes

November 15, 2017	$	600	$	600		0.875%		1.084%
May 1, 2018		450		450		1.000%		1.106%
November 3, 2018		1,750		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%
August 8, 2019 ^(a)		2,500		*		1.100%		1.203%
November 1, 2019 ⁽^b⁾		18		*		0.500%		0.500%
February 6, 2020 ^(c)		1,500		*		1.850%		1.952%
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		2,250		2,250		2.000%		2.093%
February 8, 2021		500		500		4.000%		4.082%
August 8, 2021 ^(a)		2,750		*		1.550%		1.642%
December 6, 2021 ⁽^d⁾		1,872		1,944		2.125%		2.233%
February 6, 2022 ^(c)		1,750		*		2.400%		2.520%
February 12, 2022		1,500		1,500		2.375%		2.466%
November 3, 2022		1,000		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%
August 8, 2023 ^(a)		1,500		*		2.000%		2.101%
December 15, 2023		1,500		1,500		3.625%		3.726%
February 6, 2024 ^(c)		2,250		*		2.875%		3.041%
February 12, 2025		2,250		2,250		2.700%		2.772%
November 3, 2025		3,000		3,000		3.125%		3.176%
August 8, 2026 ^(a)		4,000		*		2.400%		2.464%
February 6, 2027 ^(c)		4,000		*		3.300%		3.383%
December 6, 2028 ⁽^d⁾		1,872		1,944		3.125%		3.218%
May 2, 2033 ⁽^d⁾		588		611		2.625%		2.690%
February 12, 2035		1,500		1,500		3.500%		3.604%
November 3, 2035		1,000		1,000		4.200%		4.260%
August 8, 2036 ^(a)		2,250		*		3.450%		3.510%
February 6, 2037 ^(c)		2,500		*		4.100%		4.152%
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		3,000		3,000		4.450%		4.492%
August 8, 2046 ^(a)		4,500		*		3.700%		3.743%
February 6, 2047 ^(c)		3,000		*		4.250%		4.287%
February 12, 2055		2,250		2,250		4.000%		4.063%
November 3, 2055		1,000		1,000		4.750%		4.782%
August 8, 2056 ^(a)		2,250		*		3.950%		4.033%
February 6, 2057 ^(c)		2,000		*		4.500%		4.528%


Total	$	77,550	$	40,949

(a)	In August 2016, we issued $19.8 billion of debt securities.

(b)	Remaining notes that were acquired as part of the LinkedIn acquisition. See Note 8 – Business Combinations for further information.

(c)	In February 2017, we issued $17.0 billion of debt securities.

(d)	Euro-denominated debt securities.

*	Not applicable.

- Definition

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

+ References

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

+ Details

RESTRUCTURING CHARGES (Tables)

9 Months Ended

Mar. 31, 2017

Changes in Restructuring Liability

Changes in the restructuring liability were as follows:

(In millions)		Severance			Other	^(a)		Total


Restructuring liability as of June 30, 2016	$	470		$	239		$	709
Restructuring charges		0			0			0
Cash paid		(327	)		(76	)		(403	)
Other		(7	)		(2	)		(9	)


Restructuring liability as of March 31, 2017	$	136		$	161		$	297

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

UNEARNED REVENUE (Tables)

9 Months Ended

Mar. 31, 2017

Unearned Revenue by Segment

Unearned revenue by segment was as follows:

(In millions)


	March 31, 2017		June 30, 2016

Productivity and Business Processes	$	11,159	$	12,497
Intelligent Cloud		9,722		11,472
More Personal Computing		2,930		3,334
Corporate and Other ^(a)		11,922		6,606


Total	$	35,733	$	33,909

(a)	Consists of the net revenue deferral from Windows 10.

COMMITMENTS AND CONTINGENCIES (Tables)

9 Months Ended

Mar. 31, 2017

Future Minimum Lease Payments under Non-cancellable Capital Leases

Future minimum lease payments under non-cancellable capital leases as of March 31, 2017 were as follows:

(In millions)


Year Ending June 30,

2017 (excluding the nine months ended March 31, 2017)	$	35
2018		149
2019		155
2020		159
2021		163
Thereafter		1,826


Total ^(a)	$	2,487

(a)	Includes imputed interest of $660 million.

STOCKHOLDERS' EQUITY (Tables)

9 Months Ended

Mar. 31, 2017

Share Repurchases

We repurchased the following shares of common stock under the share repurchase programs:

(In millions)	Shares		Amount				Shares		Amount


Fiscal Year				2017						2016

First Quarter ^(a)		63		$	3,550			89		$	4,000
Second Quarter ^(a)		59			3,533			66			3,600
Third Quarter		25			1,600	^(b)		69			3,600	^(a)


Total		147		$	8,683			224		$	11,200

(a)	Repurchased under the share repurchase program approved September 16, 2013.

(b)	Repurchased under the share repurchase program approved September 20, 2016.

Dividends Declared

Our Board of Directors declared the following dividends:

Declaration Date	Dividend Per Share		Record Date		Total Amount		Payment Date


					(in millions)

Fiscal year 2017

September 20, 2016	$	0.39		November 17, 2016	$	3,024		December 8, 2016
November 30, 2016	$	0.39		February 16, 2017	$	3,012		March 9, 2017
March 14, 2017	$	0.39		May 18, 2017	$	3,012		June 8, 2017

Declaration Date	Dividend Per Share		Record Date		Total Amount		Payment Date


					(in millions)

Fiscal year 2016

September 15, 2015	$	0.36		November 19, 2015	$	2,868		December 10, 2015
December 2, 2015	$	0.36		February 18, 2016	$	2,842		March 10, 2016
March 15, 2016	$	0.36		May 19, 2016	$	2,821		June 9, 2016

ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables)

9 Months Ended

Mar. 31, 2017

Summary of Changes in Accumulated Other Comprehensive Income by Component

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

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


	2017			2016			2017			2016

Derivatives

Accumulated other comprehensive income balance, beginning of period	$	595		$	598		$	352		$	590
Unrealized gains (losses), net of tax effects of $3, $(19), $7, and $24		(60	)		(125	)		424			158

Reclassification adjustments for gains included in revenue		(167	)		(171	)		(414	)		(461	)
Tax expense included in provision for income taxes		2			11			8			26


Amounts reclassified from accumulated other comprehensive income		(165	)		(160	)		(406	)		(435	)


Net current period other comprehensive income (loss)		(225	)		(285	)		18			(277	)


Accumulated other comprehensive income balance, end of period	$	370		$	313		$	370		$	313


Investments

Accumulated other comprehensive income balance, beginning of period	$	2,030		$	2,758		$	2,941		$	3,169
Unrealized gains, net of tax effects of $307, $217, $197, and $34		571			402			367			64

Reclassification adjustments for gains included in other income (expense), net		(779	)		(88	)		(1,867	)		(200	)
Tax expense included in provision for income taxes		273			31			654			70


Amounts reclassified from accumulated other comprehensive income		(506	)		(57	)		(1,213	)		(130	)


Net current period other comprehensive income (loss)		65			345			(846	)		(66	)


Accumulated other comprehensive income balance, end of period	$	2,095		$	3,103		$	2,095		$	3,103


Translation adjustments and other

Accumulated other comprehensive loss balance, beginning of period	$	(2,113	)	$	(1,583	)	$	(1,756	)	$	(1,237	)
Translation adjustments and other, net of tax effects of $0, $3, $7, and $(18)		292			7			(65	)		(339	)


Accumulated other comprehensive loss balance, end of period	$	(1,821	)	$	(1,576	)	$	(1,821	)	$	(1,576	)


Accumulated other comprehensive income, end of period	$	644		$	1,840		$	644		$	1,840

SEGMENT INFORMATION (Tables)

9 Months Ended

Mar. 31, 2017

Segment Revenue

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


	2017			2016			2017			2016

Revenue

Productivity and Business Processes	$	7,958		$	6,521		$	21,998		$	19,517
Intelligent Cloud		6,763			6,096			20,006			18,331
More Personal Computing		8,836			9,539			29,953			31,474
Corporate and Other ^(a)		(1,467	)		(1,625	)		(5,324	)		(4,616	)


Total	$	22,090		$	20,531		$	66,633		$	64,706

(a)	Consists of the net revenue deferral from Windows 10.

Operating Income (Loss) by Segment

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


	2017			2016			2017			2016

Operating income (loss)

Productivity and Business Processes	$	2,783		$	2,981		$	9,159		$	9,429
Intelligent Cloud		2,181			2,176			6,637			7,135
More Personal Computing		2,097			1,751			6,524			5,154
Corporate and Other ^(a)		(1,467	)		(1,625	)		(5,324	)		(4,616	)


Total	$	5,594		$	5,283		$	16,996		$	17,102

(a)	Consists of the net revenue deferral from Windows 10.

Accounting Policies - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended		12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016	Jun. 30, 2016
Significant Accounting Policies [Line Items]
Revenue	$ 22,090	$ 20,531	$ 66,633	$ 64,706
Accounting Standards Update 2016-02 \| Scenario Plan
Significant Accounting Policies [Line Items]
Recognition of additional ROU assets for operating leases					$ 5,000
Recognition of additional lease liabilities for operating leases					5,000
Accounting Standards Update 2014-09 \| Scenario Plan
Significant Accounting Policies [Line Items]
Revenue					$ 6,000

Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items]
Net income available for common shareholders (A)	$ 4,801	$ 3,756	$ 14,691	$ 13,676
Weighted average outstanding shares of common stock (B)	7,725	7,895	7,756	7,952
Dilutive effect of stock-based awards	88	90	84	89
Common stock and common stock equivalents (C)	7,813	7,985	7,840	8,041
Earnings Per Share
Basic (A/B)	$ 0.62	$ 0.48	$ 1.89	$ 1.72
Diluted (A/C)	$ 0.61	$ 0.47	$ 1.87	$ 1.70

Components of Other Income (Expense), Net (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016
Components of Other Income (Expense) [Line Items]
Dividends and interest income	$ 380	$ 230	$ 984	$ 629
Interest expense	(609)	(340)	(1,567)	(898)
Net recognized gains on investments	790	85	1,893	193
Net losses on derivatives	(200)	(155)	(340)	(414)
Net losses on foreign currency remeasurements	0	(18)	(134)	(52)
Other, net	(39)	(49)	(228)	(156)
Total	$ 322	$ (247)	$ 608	$ (698)

- Definition

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

+ References + Details

Net Recognized Gains (Losses) on Investments (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016
Gains (Losses) on Investments [Line Items]
Other-than-temporary impairments of investments	$ (15)	$ (86)	$ (54)	$ (248)
Realized gains from sales of available-for-sale securities	938	282	2,272	740
Realized losses from sales of available-for-sale securities	(133)	(111)	(325)	(299)
Total	$ 790	$ 85	$ 1,893	$ 193

- Definition

+ References + Details

Investment Components, Including Associated Derivatives (Detail) - USD ($) $ in Millions	Mar. 31, 2017	Dec. 31, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Jun. 30, 2015
Cash, Cash Equivalents and Investments [Line Items]
Cost Basis	$ 130,108		$ 119,078
Unrealized Gains	3,752		4,895
Unrealized Losses	(461)		(302)
Recorded Basis	133,399		123,671
Cash and cash equivalents	6,713	$ 8,468	6,510	$ 7,170	$ 7,185	$ 5,595
Short-term Investments	119,305		106,730
Equity and Other Investments	7,381		10,431
Cash
Cash, Cash Equivalents and Investments [Line Items]
Cash	3,390		3,501
Unrealized Gains	0		0
Unrealized Losses	0		0
Cash and cash equivalents	3,390		3,501
Short-term Investments	0		0
Equity and Other Investments	0		0
Mutual funds
Cash, Cash Equivalents and Investments [Line Items]
Cost Basis	1,139		1,012
Unrealized Gains	0		0
Unrealized Losses	0		0
Recorded Basis	1,139		1,012
Cash and cash equivalents	1,139		1,012
Short-term Investments	0		0
Equity and Other Investments	0		0
Commercial paper
Cash, Cash Equivalents and Investments [Line Items]
Cost Basis	536		298
Unrealized Gains	0		0
Unrealized Losses	0		0
Recorded Basis	536		298
Cash and cash equivalents	337		298
Short-term Investments	199		0
Equity and Other Investments	0		0
Certificates of deposit
Cash, Cash Equivalents and Investments [Line Items]
Cost Basis	1,767		1,000
Unrealized Gains	0		0
Unrealized Losses	0		0
Recorded Basis	1,767		1,000
Cash and cash equivalents	1,341		868
Short-term Investments	426		132
Equity and Other Investments	0		0
U.S. government and agency securities
Cash, Cash Equivalents and Investments [Line Items]
Cost Basis	104,688		89,970
Unrealized Gains	75		245
Unrealized Losses	(345)		(11)
Recorded Basis	104,418		90,204
Cash and cash equivalents	102		100
Short-term Investments	104,316		90,104
Equity and Other Investments	0		0
Foreign government bonds
Cash, Cash Equivalents and Investments [Line Items]
Cost Basis	5,344		5,502
Unrealized Gains	2		10
Unrealized Losses	(16)		(18)
Recorded Basis	5,330		5,494
Cash and cash equivalents	404		731
Short-term Investments	4,926		4,763
Equity and Other Investments	0		0
Mortgage- and asset-backed securities
Cash, Cash Equivalents and Investments [Line Items]
Cost Basis	4,241		4,789
Unrealized Gains	16		21
Unrealized Losses	(4)		(2)
Recorded Basis	4,253		4,808
Cash and cash equivalents	0		0
Short-term Investments	4,253		4,808
Equity and Other Investments	0		0
Corporate notes and bonds
Cash, Cash Equivalents and Investments [Line Items]
Cost Basis	4,823		6,509
Unrealized Gains	60		110
Unrealized Losses	(17)		(35)
Recorded Basis	4,866		6,584
Cash and cash equivalents	0		0
Short-term Investments	4,866		6,584
Equity and Other Investments	0		0
Municipal securities
Cash, Cash Equivalents and Investments [Line Items]
Cost Basis	284		285
Unrealized Gains	38		57
Unrealized Losses	0		0
Recorded Basis	322		342
Cash and cash equivalents	0		0
Short-term Investments	322		342
Equity and Other Investments	0		0
Common and preferred stock
Cash, Cash Equivalents and Investments [Line Items]
Cost Basis	3,380		5,597
Unrealized Gains	3,561		4,452
Unrealized Losses	(79)		(236)
Recorded Basis	6,862		9,813
Cash and cash equivalents	0		0
Short-term Investments	0		0
Equity and Other Investments	6,862		9,813
Other investments
Cash, Cash Equivalents and Investments [Line Items]
Cost Basis	516		615
Unrealized Gains	0		0
Unrealized Losses	0		0
Recorded Basis	516		615
Cash and cash equivalents	0		0
Short-term Investments	(3)		(3)
Equity and Other Investments	$ 519		$ 618

Investments - Cost Method - Additional Information (Detail) - USD ($) $ in Millions	Mar. 31, 2017	Jun. 30, 2016
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	$ 856	$ 767

Investments - Secured Borrowings and Loaned Securities - Additional Information (Detail) - USD ($) $ in Millions	Mar. 31, 2017	Jun. 30, 2016
U.S. Government and Agency Securities
Investment [Line Items]
Collateral received	$ 4,600
Cash
Investment [Line Items]
Collateral received		$ 294

Unrealized Losses on Investments (Detail) - USD ($) $ in Millions	Mar. 31, 2017	Jun. 30, 2016
Unrealized Losses on Investments [Line Items]
Less than 12 Months - Fair Value	$ 75,203	$ 12,188
Less than 12 Months - Unrealized Losses	(379)	(165)
12 Months or Greater - Fair Value	1,173	1,967
12 Months or Greater - Unrealized Losses	(82)	(137)
Total Fair Value	76,376	14,155
Total Unrealized Losses	(461)	(302)
U.S. government and agency securities
Unrealized Losses on Investments [Line Items]
Less than 12 Months - Fair Value	68,195	5,816
Less than 12 Months - Unrealized Losses	(336)	(3)
12 Months or Greater - Fair Value	373	432
12 Months or Greater - Unrealized Losses	(9)	(8)
Total Fair Value	68,568	6,248
Total Unrealized Losses	(345)	(11)
Foreign government bonds
Unrealized Losses on Investments [Line Items]
Less than 12 Months - Fair Value	5,281	3,452
Less than 12 Months - Unrealized Losses	(4)	(3)
12 Months or Greater - Fair Value	23	35
12 Months or Greater - Unrealized Losses	(12)	(15)
Total Fair Value	5,304	3,487
Total Unrealized Losses	(16)	(18)
Mortgage- and asset-backed securities
Unrealized Losses on Investments [Line Items]
Less than 12 Months - Fair Value	774	844
Less than 12 Months - Unrealized Losses	(3)	(1)
12 Months or Greater - Fair Value	198	322
12 Months or Greater - Unrealized Losses	(1)	(1)
Total Fair Value	972	1,166
Total Unrealized Losses	(4)	(2)
Corporate notes and bonds
Unrealized Losses on Investments [Line Items]
Less than 12 Months - Fair Value	658	1,180
Less than 12 Months - Unrealized Losses	(11)	(11)
12 Months or Greater - Fair Value	346	788
12 Months or Greater - Unrealized Losses	(6)	(24)
Total Fair Value	1,004	1,968
Total Unrealized Losses	(17)	(35)
Common and preferred stock
Unrealized Losses on Investments [Line Items]
Less than 12 Months - Fair Value	295	896
Less than 12 Months - Unrealized Losses	(25)	(147)
12 Months or Greater - Fair Value	233	390
12 Months or Greater - Unrealized Losses	(54)	(89)
Total Fair Value	528	1,286
Total Unrealized Losses	$ (79)	$ (236)

Debt Investment Maturities (Detail) $ in Millions	Mar. 31, 2017 USD ($)
Cost Basis
Due in one year or less	$ 16,644
Due after one year through five years	97,412
Due after five years through 10 years	6,536
Due after 10 years	1,091
Total	121,683
Estimated Fair Value
Due in one year or less	16,637
Due after one year through five years	97,250
Due after five years through 10 years	6,512
Due after 10 years	1,093
Total	$ 121,492

Derivatives - Additional Information (Detail) - USD ($)	9 Months Ended
Derivatives - Additional Information (Detail) - USD ($)	Mar. 31, 2017	Jun. 30, 2016
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	$ 326,000,000
Senior Unsecured Obligations
Derivative [Line Items]
Debt instrument credit rating	AAA
Derivatives Sold \| Foreign Exchange Contracts \| Non-designated Hedge Derivatives
Derivative [Line Items]
Notional amounts	$ 6,300,000,000	$ 11,700,000,000
Derivatives Sold \| Equity Contracts
Derivative [Line Items]
Notional amounts	1,800,000,000	2,200,000,000
Derivatives Sold \| Equity Contracts \| Designated Hedge Derivatives
Derivative [Line Items]
Notional amounts	1,200,000,000	986,000,000
Derivatives Sold \| Interest Rate Contracts \| Non-designated Hedge Derivatives
Derivative [Line Items]
Notional amounts	393,000,000	2,400,000,000
Derivatives Sold \| Credit Contracts \| Non-designated Hedge Derivatives
Derivative [Line Items]
Notional amounts	107,000,000	273,000,000
Derivatives Sold \| Commodity Contracts \| Non-designated Hedge Derivatives
Derivative [Line Items]
Notional amounts	170,000,000	162,000,000
Derivatives Sold \| Cash flow hedging \| Foreign Exchange Contracts
Derivative [Line Items]
Notional amounts	10,600,000,000	8,400,000,000
Derivatives Sold \| Fair value hedging \| Foreign Exchange Contracts
Derivative [Line Items]
Notional amounts	5,200,000,000	5,300,000,000
Derivatives Purchased \| Foreign Exchange Contracts \| Non-designated Hedge Derivatives
Derivative [Line Items]
Notional amounts	7,900,000,000	12,000,000,000
Derivatives Purchased \| Equity Contracts
Derivative [Line Items]
Notional amounts	1,300,000,000	1,300,000,000
Derivatives Purchased \| Equity Contracts \| Designated Hedge Derivatives
Derivative [Line Items]
Notional amounts	1,100,000,000	737,000,000
Derivatives Purchased \| Interest Rate Contracts \| Non-designated Hedge Derivatives
Derivative [Line Items]
Notional amounts	438,000,000	328,000,000
Derivatives Purchased \| Mortgage-backed securities \| Non-designated Hedge Derivatives
Derivative [Line Items]
Notional amounts	568,000,000	548,000,000
Derivatives Purchased \| Credit Contracts \| Non-designated Hedge Derivatives
Derivative [Line Items]
Notional amounts	312,000,000	440,000,000
Derivatives Purchased \| Commodity Contracts \| Non-designated Hedge Derivatives
Derivative [Line Items]
Notional amounts	$ 306,000,000	$ 631,000,000

Fair Values of Derivative Instruments (Detail) - USD ($) $ in Millions	Mar. 31, 2017	Jun. 30, 2016
Short-term Investments
Derivatives, Fair Value [Line Items]
Derivative Assets	$ 42	$ 73
Net amount, assets	(20)	(5)
Short-term Investments \| Eligible for Offsetting
Derivatives, Fair Value [Line Items]
Derivative Assets	40	69
Gross amounts of derivatives offset on the balance sheet, assets	(60)	(74)
Net amounts presented on the balance sheet, assets	(20)	(5)
Gross amounts of derivatives not offset on the balance sheet, assets	0	0
Cash collateral received, assets	0	0
Other Current Assets
Derivatives, Fair Value [Line Items]
Derivative Assets	422	548
Net amount, assets	316	246
Other Current Assets \| Eligible for Offsetting
Derivatives, Fair Value [Line Items]
Derivative Assets	422	548
Gross amounts of derivatives offset on the balance sheet, assets	(106)	(302)
Net amounts presented on the balance sheet, assets	316	246
Gross amounts of derivatives not offset on the balance sheet, assets	0	0
Cash collateral received, assets	0	0
Equity and Other Investments
Derivatives, Fair Value [Line Items]
Derivative Assets	82	18
Net amount, assets	(4)	(7)
Equity and Other Investments \| Eligible for Offsetting
Derivatives, Fair Value [Line Items]
Derivative Assets	82	18
Gross amounts of derivatives offset on the balance sheet, assets	(86)	(25)
Net amounts presented on the balance sheet, assets	(4)	(7)
Gross amounts of derivatives not offset on the balance sheet, assets	0	0
Cash collateral received, assets	0	0
Other Long-term Assets
Derivatives, Fair Value [Line Items]
Derivative Assets	87
Net amount, assets	69
Other Long-term Assets \| Eligible for Offsetting
Derivatives, Fair Value [Line Items]
Derivative Assets	87
Gross amounts of derivatives offset on the balance sheet, assets	(18)
Net amounts presented on the balance sheet, assets	69
Gross amounts of derivatives not offset on the balance sheet, assets	0
Cash collateral received, assets	0
Other Current Liabilities
Derivatives, Fair Value [Line Items]
Derivative Liabilities	(320)	(630)
Net amount, liabilities	(372)	(482)
Other Current Liabilities \| Eligible for Offsetting
Derivatives, Fair Value [Line Items]
Derivative Liabilities	(320)	(630)
Gross amounts of derivatives offset on the balance sheet, liabilities	208	398
Net amounts presented on the balance sheet, liabilities	(112)	(232)
Gross amounts of derivatives not offset on the balance sheet, liabilities	0	0
Cash collateral received, liabilities	(260)	(250)
Other Long-term Liabilities
Derivatives, Fair Value [Line Items]
Derivative Liabilities	(68)
Net amount, liabilities	(9)
Other Long-term Liabilities \| Eligible for Offsetting
Derivatives, Fair Value [Line Items]
Derivative Liabilities	(68)
Gross amounts of derivatives offset on the balance sheet, liabilities	59
Net amounts presented on the balance sheet, liabilities	(9)
Gross amounts of derivatives not offset on the balance sheet, liabilities	0
Cash collateral received, liabilities	0
Non-designated Hedge Derivatives \| Short-term Investments
Derivatives, Fair Value [Line Items]
Derivative Assets	33	72
Non-designated Hedge Derivatives \| Short-term Investments \| Foreign Exchange Contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	13	33
Non-designated Hedge Derivatives \| Short-term Investments \| Equity Contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	6	23
Non-designated Hedge Derivatives \| Short-term Investments \| Interest Rate Contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	9	10
Non-designated Hedge Derivatives \| Short-term Investments \| Credit Contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	5	6
Non-designated Hedge Derivatives \| Short-term Investments \| Commodity Contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	0	0
Non-designated Hedge Derivatives \| Other Current Assets
Derivatives, Fair Value [Line Items]
Derivative Assets	75	156
Non-designated Hedge Derivatives \| Other Current Assets \| Foreign Exchange Contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	75	156
Non-designated Hedge Derivatives \| Other Current Assets \| Equity Contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	0	0
Non-designated Hedge Derivatives \| Other Current Assets \| Interest Rate Contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	0	0
Non-designated Hedge Derivatives \| Other Current Assets \| Credit Contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	0	0
Non-designated Hedge Derivatives \| Other Current Assets \| Commodity Contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	0	0
Non-designated Hedge Derivatives \| Equity and Other Investments
Derivatives, Fair Value [Line Items]
Derivative Assets	0	0
Non-designated Hedge Derivatives \| Equity and Other Investments \| Foreign Exchange Contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	0	0
Non-designated Hedge Derivatives \| Equity and Other Investments \| Equity Contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	0	0
Non-designated Hedge Derivatives \| Equity and Other Investments \| Interest Rate Contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	0	0
Non-designated Hedge Derivatives \| Equity and Other Investments \| Credit Contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	0	0
Non-designated Hedge Derivatives \| Equity and Other Investments \| Commodity Contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	0	0
Non-designated Hedge Derivatives \| Other Long-term Assets
Derivatives, Fair Value [Line Items]
Derivative Assets	6
Non-designated Hedge Derivatives \| Other Long-term Assets \| Foreign Exchange Contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	6
Non-designated Hedge Derivatives \| Other Long-term Assets \| Equity Contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	0
Non-designated Hedge Derivatives \| Other Long-term Assets \| Interest Rate Contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	0
Non-designated Hedge Derivatives \| Other Long-term Assets \| Credit Contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	0
Non-designated Hedge Derivatives \| Other Long-term Assets \| Commodity Contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	0
Non-designated Hedge Derivatives \| Other Current Liabilities
Derivatives, Fair Value [Line Items]
Derivative Liabilities	(137)	(342)
Non-designated Hedge Derivatives \| Other Current Liabilities \| Foreign Exchange Contracts
Derivatives, Fair Value [Line Items]
Derivative Liabilities	(117)	(296)
Non-designated Hedge Derivatives \| Other Current Liabilities \| Equity Contracts
Derivatives, Fair Value [Line Items]
Derivative Liabilities	(13)	(16)
Non-designated Hedge Derivatives \| Other Current Liabilities \| Interest Rate Contracts
Derivatives, Fair Value [Line Items]
Derivative Liabilities	(4)	(25)
Non-designated Hedge Derivatives \| Other Current Liabilities \| Credit Contracts
Derivatives, Fair Value [Line Items]
Derivative Liabilities	(2)	(5)
Non-designated Hedge Derivatives \| Other Current Liabilities \| Commodity Contracts
Derivatives, Fair Value [Line Items]
Derivative Liabilities	(1)	0
Non-designated Hedge Derivatives \| Other Long-term Liabilities
Derivatives, Fair Value [Line Items]
Derivative Liabilities	(13)
Non-designated Hedge Derivatives \| Other Long-term Liabilities \| Foreign Exchange Contracts
Derivatives, Fair Value [Line Items]
Derivative Liabilities	(13)
Non-designated Hedge Derivatives \| Other Long-term Liabilities \| Equity Contracts
Derivatives, Fair Value [Line Items]
Derivative Liabilities	0
Non-designated Hedge Derivatives \| Other Long-term Liabilities \| Interest Rate Contracts
Derivatives, Fair Value [Line Items]
Derivative Liabilities	0
Non-designated Hedge Derivatives \| Other Long-term Liabilities \| Credit Contracts
Derivatives, Fair Value [Line Items]
Derivative Liabilities	0
Non-designated Hedge Derivatives \| Other Long-term Liabilities \| Commodity Contracts
Derivatives, Fair Value [Line Items]
Derivative Liabilities	0
Designated Hedge Derivatives \| Short-term Investments
Derivatives, Fair Value [Line Items]
Derivative Assets	9	1
Designated Hedge Derivatives \| Short-term Investments \| Foreign Exchange Contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	9	1
Designated Hedge Derivatives \| Short-term Investments \| Equity Contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	0	0
Designated Hedge Derivatives \| Other Current Assets
Derivatives, Fair Value [Line Items]
Derivative Assets	347	392
Designated Hedge Derivatives \| Other Current Assets \| Foreign Exchange Contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	347	392
Designated Hedge Derivatives \| Other Current Assets \| Equity Contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	0	0
Designated Hedge Derivatives \| Equity and Other Investments
Derivatives, Fair Value [Line Items]
Derivative Assets	82	18
Designated Hedge Derivatives \| Equity and Other Investments \| Foreign Exchange Contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	0	0
Designated Hedge Derivatives \| Equity and Other Investments \| Equity Contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	82	18
Designated Hedge Derivatives \| Other Long-term Assets
Derivatives, Fair Value [Line Items]
Derivative Assets	81
Designated Hedge Derivatives \| Other Long-term Assets \| Foreign Exchange Contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	81
Designated Hedge Derivatives \| Other Long-term Assets \| Equity Contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	0
Designated Hedge Derivatives \| Other Current Liabilities
Derivatives, Fair Value [Line Items]
Derivative Liabilities	(183)	(288)
Designated Hedge Derivatives \| Other Current Liabilities \| Foreign Exchange Contracts
Derivatives, Fair Value [Line Items]
Derivative Liabilities	(126)	(263)
Designated Hedge Derivatives \| Other Current Liabilities \| Equity Contracts
Derivatives, Fair Value [Line Items]
Derivative Liabilities	(57)	$ (25)
Designated Hedge Derivatives \| Other Long-term Liabilities
Derivatives, Fair Value [Line Items]
Derivative Liabilities	(55)
Designated Hedge Derivatives \| Other Long-term Liabilities \| Foreign Exchange Contracts
Derivatives, Fair Value [Line Items]
Derivative Liabilities	0
Designated Hedge Derivatives \| Other Long-term Liabilities \| Equity Contracts
Derivatives, Fair Value [Line Items]
Derivative Liabilities	$ (55)

Gains (Losses) on Fair Value Hedges and Related Hedged Items (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016
Foreign Exchange Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Derivatives	$ (248)	$ (331)	$ 389	$ (364)
Hedged items	257	340	(349)	390
Total amount of ineffectiveness	9	9	40	26
Equity Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Derivatives	(19)	15	(36)	(77)
Hedged items	19	(15)	36	77
Total amount of ineffectiveness	0	0	0	0
Amount of equity contracts excluded from effectiveness assessment	$ (25)	$ (12)	$ (29)	$ (8)

Gains (Losses) Related to Cash Flow Hedges (Detail) - Designated Hedge Derivatives - Foreign Exchange Contracts - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016
Effective Portion
Gains (losses) recognized in other comprehensive income (net of tax effects of $3, $(19), $7, and $24)	$ (60)	$ (125)	$ 424	$ 158
Gains reclassified from accumulated other comprehensive income into revenue	167	171	414	461
Amount Excluded from Effectiveness Assessment and Ineffective Portion
Losses recognized in other income (expense), net	$ (121)	$ (86)	$ (275)	$ (240)

Gains (Losses) Related to Cash Flow Hedges (Parenthetical) (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016
Designated Hedge Derivatives \| Foreign Exchange Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in other comprehensive income, tax effects	$ 3	$ (19)	$ 7	$ 24

Non-Designated Derivative Gains (Losses) (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016
Derivative Instruments, Gain (Loss) [Line Items]
Changes in fair value of derivatives not designated as hedges	$ (166)	$ 157	$ (215)	$ (45)
Foreign Exchange Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Changes in fair value of derivatives not designated as hedges	(115)	188	(120)	113
Equity Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Changes in fair value of derivatives not designated as hedges	(42)	(19)	(84)	(15)
Interest Rate Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Changes in fair value of derivatives not designated as hedges	8	(4)	2	4
Credit Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Changes in fair value of derivatives not designated as hedges	1	1	5	(2)
Commodity Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Changes in fair value of derivatives not designated as hedges	$ (18)	$ (9)	$ (18)	$ (145)

Reconciliation of Total Assets Measured at Fair Value on Recurring Basis to Balance Sheet Presentation (Detail) - USD ($) $ in Millions	Mar. 31, 2017	Jun. 30, 2016
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	$ 129,037	$ 119,019
Other liabilities	(18)
Other assets		12
Recorded basis of investment components	133,399	123,671
Other Current and Long-term Assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Less derivative net assets classified as other current and long-term assets	(385)	(246)
Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash	3,390	3,501
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	856	767
Other investments measured at fair value on a nonrecurring basis	$ 519	$ 618

Components of Inventories (Detail) - USD ($) $ in Millions	Mar. 31, 2017	Jun. 30, 2016
Inventory [Line Items]
Raw materials	$ 555	$ 612
Work in process	127	158
Finished goods	1,297	1,481
Total	$ 1,979	$ 2,251

Business Combinations - Additional Information (Detail) - LinkedIn Corporation - USD ($) $ in Billions		9 Months Ended
	Dec. 08, 2016	Mar. 31, 2017
Business Acquisition [Line Items]
Acquisition date	Dec. 08, 2016
Name of acquired entity		LinkedIn
Total purchase price	$ 27.0
Cash paid to acquire the business	$ 26.4

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

Mar. 31, 2017

Dec. 08, 2016

Jun. 30, 2016

Business Acquisition [Line Items]

Goodwill

$ 34,668

$ 17,872

LinkedIn Corporation

Business Acquisition [Line Items]

Cash and cash equivalents

$ 1,328

Short-term investments

2,110

Other current assets

697

Property and equipment

1,529

Intangible assets

7,887

Goodwill

^[1]

16,687

Short-term debt

^[2]

(1,323)

Other current liabilities

(1,117)

Deferred income taxes

(657)

Other

(132)

Total purchase price

$ 27,009

[1]	Goodwill was assigned to our Productivity and Business Processes segment. The goodwill was primarily attributed to increased synergies that are expected to be achieved from the integration of LinkedIn. None of the goodwill is expected to be deductible for income tax purposes.
[2]	Convertible senior notes issued by LinkedIn on November 12, 2014, substantially all of which were redeemed after our acquisition of LinkedIn. The remaining $18 million of notes are not redeemable and are included in long-term debt on our consolidated balance sheets. See Note 11 – Debt for further information.

Major Classes of Assets and Liabilities to Which We Have Preliminarily Allocated the Purchase Price (Parenthetical) (Detail) - USD ($)	Mar. 31, 2017	Dec. 08, 2016	Jun. 30, 2016
Business Acquisition [Line Items]
Business combination, long-term debt	$ 77,550,000,000		$ 40,949,000,000
LinkedIn Corporation
Business Acquisition [Line Items]
Goodwill expected to be deductible for income tax purposes		$ 0
Business combination, long-term debt	$ 18,000,000

Acquired Intangible Assets (Detail) - LinkedIn Corporation $ in Millions	Dec. 08, 2016 USD ($)
Acquired Finite-Lived Intangible Assets [Line Items]
Fair value of intangible assets acquired	$ 7,887
Weighted Average Life	9 years
Customer-related
Acquired Finite-Lived Intangible Assets [Line Items]
Fair value of intangible assets acquired	$ 3,607
Weighted Average Life	7 years
Marketing-related (trade names)
Acquired Finite-Lived Intangible Assets [Line Items]
Fair value of intangible assets acquired	$ 2,148
Weighted Average Life	20 years
Technology-based
Acquired Finite-Lived Intangible Assets [Line Items]
Fair value of intangible assets acquired	$ 2,109
Weighted Average Life	3 years
Contract-based
Acquired Finite-Lived Intangible Assets [Line Items]
Fair value of intangible assets acquired	$ 23
Weighted Average Life	5 years

Revenue and Operating Loss Attributable to Acquiree, Since the Date of Acquisition (Detail) - LinkedIn Corporation - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Mar. 31, 2017	Mar. 31, 2017
Business Acquisition [Line Items]
Revenue	$ 975	$ 1,203
Operating loss	$ (386)	$ (587)

Supplemental Consolidated Financial Results on Unaudited Pro Forma Basis, as If the Acquisition Had Been Consummated on Beginning of Period (Detail) - LinkedIn Corporation - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016
Business Acquisition [Line Items]
Revenue	$ 22,086	$ 21,377	$ 68,357	$ 67,116
Net income	$ 4,820	$ 3,402	$ 14,283	$ 12,547
Diluted earnings per share	$ 0.62	$ 0.43	$ 1.82	$ 1.56

Carrying Amount of Goodwill (Detail)
$ in Millions

9 Months Ended

Mar. 31, 2017

USD ($)

Goodwill [Line Items]

$ 17,872

17,006

(210)

34,668

Productivity and Business Processes

Goodwill [Line Items]

Beginning Balance

6,678

Acquisitions

16,854

^[1]

Other

(149)

Ending Balance

23,383

Intelligent Cloud

Goodwill [Line Items]

5,467

5,528

More Personal Computing

Goodwill [Line Items]

5,727

115

(85)

$ 5,757

[1]	Includes goodwill related to LinkedIn and other acquisitions. See Note 8 – Business Combinations for further information.

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

Mar. 31, 2017

Jun. 30, 2016

Finite-Lived Intangible Assets [Line Items]

Gross Carrying Amount

$ 16,530

^[1]

$ 9,100

Accumulated Amortization

(5,983)

(5,367)

Net Carrying Amount

10,547

3,733

Technology-based

Finite-Lived Intangible Assets [Line Items]

Gross Carrying Amount

^[2]

7,646

5,970

Accumulated Amortization

^[2]

(3,952)

(3,648)

Net Carrying Amount

^[2]

3,694

2,322

Marketing-related

Finite-Lived Intangible Assets [Line Items]

Gross Carrying Amount

3,999

1,869

Accumulated Amortization

(759)

(616)

Net Carrying Amount

3,240

1,253

Contract-based

Finite-Lived Intangible Assets [Line Items]

Gross Carrying Amount

841

796

Accumulated Amortization

(715)

(718)

Net Carrying Amount

126

Customer-related

Finite-Lived Intangible Assets [Line Items]

Gross Carrying Amount

4,044

465

Accumulated Amortization

(557)

(385)

Net Carrying Amount

$ 3,487

$ 80

[1]	Includes intangible assets related to LinkedIn and other additions. See Note 8 – Business Combinations for further information.
[2]	Technology-based intangible assets included $73 million and $115 million of net carrying amount of software to be sold, leased, or otherwise marketed as of March 31, 2017 and June 30, 2016, respectively.

Finite-Lived Intangible Assets (Parenthetical) (Detail) - USD ($) $ in Millions	Mar. 31, 2017	Jun. 30, 2016
Technology-based
Finite-Lived Intangible Assets [Line Items]
Net carrying amount of software to be sold, leased, or otherwise marketed	$ 73	$ 115

Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016
Finite-Lived Intangible Assets [Line Items]
Intangible assets amortization expense	$ 560	$ 249	$ 1,100	$ 740
Amortization of capitalized software	$ 14	$ 18	$ 42	$ 55

Estimated Future Amortization Expense Related to Intangible Assets (Detail) - USD ($) $ in Millions	Mar. 31, 2017	Jun. 30, 2016
Finite-Lived Intangible Assets [Line Items]
Year Ending June 30, 2017 (excluding the nine months ended March 31, 2017)	$ 544
Year Ending June 30, 2018	2,145
Year Ending June 30, 2019	1,660
Year Ending June 30, 2020	1,148
Year Ending June 30, 2021	970
Thereafter	4,080
Net Carrying Amount	$ 10,547	$ 3,733

Debt - Additional Information (Detail) - USD ($)	9 Months Ended	12 Months Ended
Debt - Additional Information (Detail) - USD ($)	Mar. 31, 2017	Jun. 30, 2016
Debt Instrument [Line Items]
Commercial paper	$ 7,200,000,000	$ 12,900,000,000
Credit facility, financial covenant	As of March 31, 2017, 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	76,800,000,000	40,600,000,000
Long-term debt fair value	78,100,000,000	44,000,000,000
Unamortized discount and debt issuance costs	729,000,000	$ 392,000,000
Credit Facility Expire on October 31st 2017
Debt Instrument [Line Items]
Credit facility	$ 5,000,000,000
Credit facility, expiration date	Oct. 31, 2017
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	0.86%	0.43%
Commercial paper \| Lower Limit
Debt Instrument [Line Items]
Commercial paper, maturity term	15 days	1 day
Commercial paper \| Upper Limit
Debt Instrument [Line Items]
Commercial paper, maturity term	266 days	99 days

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

9 Months Ended

12 Months Ended

Mar. 31, 2017

Jun. 30, 2016

Debt Instrument [Line Items]

Face Value

$ 77,550

$ 40,949

Notes 0.875 Percent Due November 15th 2017

Debt Instrument [Line Items]

Debt maturity date

Nov. 15, 2017

Face Value

$ 600

Stated Interest Rate

0.875%

Effective Interest Rate

1.084%

Notes 1.0 Percent Due May 1st 2018

Debt Instrument [Line Items]

Debt maturity date

May 01, 2018

Face Value

$ 450

Stated Interest Rate

1.00%

Effective Interest Rate

1.106%

Notes 1.30 Percent Due November 3rd 2018

Debt Instrument [Line Items]

Debt maturity date

Nov. 03, 2018

Face Value

$ 1,750

Stated Interest Rate

1.30%

Effective Interest Rate

1.396%

Notes 1.625 Percent Due December 6th 2018

Debt Instrument [Line Items]

Debt maturity date

Dec. 06, 2018

Face Value

$ 1,250

Stated Interest Rate

1.625%

Effective Interest Rate

1.824%

Notes 4.2 Percent Due June 1st 2019

Debt Instrument [Line Items]

Debt maturity date

Jun. 01, 2019

Face Value

$ 1,000

Stated Interest Rate

4.20%

Effective Interest Rate

4.379%

Notes 1.1 Percent Due August 8th 2019

Debt Instrument [Line Items]

Debt maturity date

^[1]

Aug. 08, 2019

Face Value

^[1]

$ 2,500

Stated Interest Rate

^[1]

1.10%

Effective Interest Rate

^[1]

1.203%

Notes 0.500 Percent Due November 1st 2019

Debt Instrument [Line Items]

Debt maturity date

^[2]

Nov. 01, 2019

Face Value

^[2]

$ 18

Stated Interest Rate

^[2]

0.50%

Effective Interest Rate

^[2]

0.50%

Notes 1.850 Percent Due February 6th 2020

Debt Instrument [Line Items]

Debt maturity date

^[3]

Feb. 06, 2020

Face Value

^[3]

$ 1,500

Stated Interest Rate

^[3]

1.85%

Effective Interest Rate

^[3]

1.952%

Notes 1.850 Percent Due February 12th 2020

Debt Instrument [Line Items]

Debt maturity date

Feb. 12, 2020

Face Value

$ 1,500

Stated Interest Rate

1.85%

Effective Interest Rate

1.935%

Notes 3.0 Percent Due October 1st 2020

Debt Instrument [Line Items]

Debt maturity date

Oct. 01, 2020

Face Value

$ 1,000

Stated Interest Rate

3.00%

Effective Interest Rate

3.137%

Notes 2.0 Percent Due November 3rd 2020

Debt Instrument [Line Items]

Debt maturity date

Nov. 03, 2020

Face Value

$ 2,250

Stated Interest Rate

2.00%

Effective Interest Rate

2.093%

Notes 4.0 Percent Due February 8th 2021

Debt Instrument [Line Items]

Debt maturity date

Feb. 08, 2021

Face Value

$ 500

Stated Interest Rate

4.00%

Effective Interest Rate

4.082%

Notes 1.55 Percent Due August 8th 2021

Debt Instrument [Line Items]

Debt maturity date

^[1]

Aug. 08, 2021

Face Value

^[1]

$ 2,750

Stated Interest Rate

^[1]

1.55%

Effective Interest Rate

^[1]

1.642%

Notes 2.125 Percent Due December 6th 2021

Debt Instrument [Line Items]

Debt maturity date

^[4]

Dec. 06, 2021

Face Value

^[4]

$ 1,872

$ 1,944

Stated Interest Rate

^[4]

2.125%

Effective Interest Rate

^[4]

2.233%

Notes 2.40 Percent Due February 6th 2022

Debt Instrument [Line Items]

Debt maturity date

^[3]

Feb. 06, 2022

Face Value

^[3]

$ 1,750

Stated Interest Rate

^[3]

2.40%

Effective Interest Rate

^[3]

2.52%

Notes 2.375 Percent Due February 12th 2022

Debt Instrument [Line Items]

Debt maturity date

Feb. 12, 2022

Face Value

$ 1,500

Stated Interest Rate

2.375%

Effective Interest Rate

2.466%

Notes 2.65 Percent Due November 3rd 2022

Debt Instrument [Line Items]

Debt maturity date

Nov. 03, 2022

Face Value

$ 1,000

Stated Interest Rate

2.65%

Effective Interest Rate

2.717%

Notes 2.125 Percent Due November 15th 2022

Debt Instrument [Line Items]

Debt maturity date

Nov. 15, 2022

Face Value

$ 750

Stated Interest Rate

2.125%

Effective Interest Rate

2.239%

Notes 2.375 Percent Due May 1st 2023

Debt Instrument [Line Items]

Debt maturity date

May 01, 2023

Face Value

$ 1,000

Stated Interest Rate

2.375%

Effective Interest Rate

2.465%

Notes 2.0 Percent Due August 8th 2023

Debt Instrument [Line Items]

Debt maturity date

^[1]

Aug. 08, 2023

Face Value

^[1]

$ 1,500

Stated Interest Rate

^[1]

2.00%

Effective Interest Rate

^[1]

2.101%

Notes 3.625 Percent Due December 15th 2023

Debt Instrument [Line Items]

Debt maturity date

Dec. 15, 2023

Face Value

$ 1,500

Stated Interest Rate

3.625%

Effective Interest Rate

3.726%

Notes 2.875 Percent Due February 6th 2024

Debt Instrument [Line Items]

Debt maturity date

^[3]

Feb. 06, 2024

Face Value

^[3]

$ 2,250

Stated Interest Rate

^[3]

2.875%

Effective Interest Rate

^[3]

3.041%

Notes 2.70 Percent Due February 12th 2025

Debt Instrument [Line Items]

Debt maturity date

Feb. 12, 2025

Face Value

$ 2,250

Stated Interest Rate

2.70%

Effective Interest Rate

2.772%

Notes 3.125 Percent Due November 3rd 2025

Debt Instrument [Line Items]

Debt maturity date

Nov. 03, 2025

Face Value

$ 3,000

Stated Interest Rate

3.125%

Effective Interest Rate

3.176%

Notes 2.4 Percent Due August 8th 2026

Debt Instrument [Line Items]

Debt maturity date

^[1]

Aug. 08, 2026

Face Value

^[1]

$ 4,000

Stated Interest Rate

^[1]

2.40%

Effective Interest Rate

^[1]

2.464%

Notes 3.3 Percent Due February 6th 2027

Debt Instrument [Line Items]

Debt maturity date

^[3]

Feb. 06, 2027

Face Value

^[3]

$ 4,000

Stated Interest Rate

^[3]

3.30%

Effective Interest Rate

^[3]

3.383%

Notes 3.125 Percent Due December 6th 2028

Debt Instrument [Line Items]

Debt maturity date

^[4]

Dec. 06, 2028

Face Value

^[4]

$ 1,872

$ 1,944

Stated Interest Rate

^[4]

3.125%

Effective Interest Rate

^[4]

3.218%

Notes 2.625 Percent Due May 2nd 2033

Debt Instrument [Line Items]

Debt maturity date

^[4]

May 02, 2033

Face Value

^[4]

$ 588

$ 611

Stated Interest Rate

^[4]

2.625%

Effective Interest Rate

^[4]

2.69%

Notes 3.50 Percent Due February 12th 2035

Debt Instrument [Line Items]

Debt maturity date

Feb. 12, 2035

Face Value

$ 1,500

Stated Interest Rate

3.50%

Effective Interest Rate

3.604%

Notes 4.2 Percent Due November 3rd 2035

Debt Instrument [Line Items]

Debt maturity date

Nov. 03, 2035

Face Value

$ 1,000

Stated Interest Rate

4.20%

Effective Interest Rate

4.26%

Notes 3.45 Percent Due August 8th 2036

Debt Instrument [Line Items]

Debt maturity date

^[1]

Aug. 08, 2036

Face Value

^[1]

$ 2,250

Stated Interest Rate

^[1]

3.45%

Effective Interest Rate

^[1]

3.51%

Notes 4.1 Percent Due February 6th 2037

Debt Instrument [Line Items]

Debt maturity date

^[3]

Feb. 06, 2037

Face Value

^[3]

$ 2,500

Stated Interest Rate

^[3]

4.10%

Effective Interest Rate

^[3]

4.152%

Notes 5.2 Percent Due June 1st 2039

Debt Instrument [Line Items]

Debt maturity date

Jun. 01, 2039

Face Value

$ 750

Stated Interest Rate

5.20%

Effective Interest Rate

5.24%

Notes 4.5 Percent Due October 1st 2040

Debt Instrument [Line Items]

Debt maturity date

Oct. 01, 2040

Face Value

$ 1,000

Stated Interest Rate

4.50%

Effective Interest Rate

4.567%

Notes 5.3 Percent Due February 8th 2041

Debt Instrument [Line Items]

Debt maturity date

Feb. 08, 2041

Face Value

$ 1,000

Stated Interest Rate

5.30%

Effective Interest Rate

5.361%

Notes 3.5 Percent Due November 15th 2042

Debt Instrument [Line Items]

Debt maturity date

Nov. 15, 2042

Face Value

$ 900

Stated Interest Rate

3.50%

Effective Interest Rate

3.571%

Notes 3.750 Percent Due May 1st 2043

Debt Instrument [Line Items]

Debt maturity date

May 01, 2043

Face Value

$ 500

Stated Interest Rate

3.75%

Effective Interest Rate

3.829%

Notes 4.875 Percent Due December 15th 2043

Debt Instrument [Line Items]

Debt maturity date

Dec. 15, 2043

Face Value

$ 500

Stated Interest Rate

4.875%

Effective Interest Rate

4.918%

Notes 3.750 Percent Due February 12th 2045

Debt Instrument [Line Items]

Debt maturity date

Feb. 12, 2045

Face Value

$ 1,750

Stated Interest Rate

3.75%

Effective Interest Rate

3.80%

Notes 4.45 Percent Due November 3rd 2045

Debt Instrument [Line Items]

Debt maturity date

Nov. 03, 2045

Face Value

$ 3,000

Stated Interest Rate

4.45%

Effective Interest Rate

4.492%

Notes 3.7 Percent Due August 8th 2046

Debt Instrument [Line Items]

Debt maturity date

^[1]

Aug. 08, 2046

Face Value

^[1]

$ 4,500

Stated Interest Rate

^[1]

3.70%

Effective Interest Rate

^[1]

3.743%

Notes 4.25 Percent Due February 6th 2047

Debt Instrument [Line Items]

Debt maturity date

^[3]

Feb. 06, 2047

Face Value

^[3]

$ 3,000

Stated Interest Rate

^[3]

4.25%

Effective Interest Rate

^[3]

4.287%

Notes 4.0 Percent Due February 12th 2055

Debt Instrument [Line Items]

Debt maturity date

Feb. 12, 2055

Face Value

$ 2,250

Stated Interest Rate

4.00%

Effective Interest Rate

4.063%

Notes 4.75 Percent Due November 3rd 2055

Debt Instrument [Line Items]

Debt maturity date

Nov. 03, 2055

Face Value

$ 1,000

Stated Interest Rate

4.75%

Effective Interest Rate

4.782%

Notes 3.95 Percent Due August 8th 2056

Debt Instrument [Line Items]

Debt maturity date

^[1]

Aug. 08, 2056

Face Value

^[1]

$ 2,250

Stated Interest Rate

^[1]

3.95%

Effective Interest Rate

^[1]

4.033%

Notes 4.5 Percent Due February 6th 2057

Debt Instrument [Line Items]

Debt maturity date

^[3]

Feb. 06, 2057

Face Value

^[3]

$ 2,000

Stated Interest Rate

^[3]

4.50%

Effective Interest Rate

^[3]

4.528%

[1]	In August 2016, we issued $19.8 billion of debt securities.
[2]	Remaining notes that were acquired as part of the LinkedIn acquisition. See Note 8 – Business Combinations for further information.
[3]	In February 2017, we issued $17.0 billion of debt securities.
[4]	Euro-denominated debt securities.

Long-term Debt (Parenthetical) (Detail) - USD ($) $ in Millions	Mar. 31, 2017	Feb. 28, 2017	Aug. 31, 2016	Jun. 30, 2016
Debt Instrument [Line Items]
Face Value	$ 77,550			$ 40,949
USD Debt Issued in Period
Debt Instrument [Line Items]
Face Value		$ 17,000	$ 19,800

Income Taxes - Additional Information (Detail)	3 Months Ended		9 Months Ended
Income Taxes - Additional Information (Detail)	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016
Income Taxes [Line Items]
Effective tax rate	19.00%	25.00%	17.00%	17.00%

Income Taxes - Additional Information Regarding Examinations (Detail) - USD ($) $ in Billions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Mar. 31, 2011	Mar. 31, 2017	Jun. 30, 2016
Income Tax Examination [Line Items]
Tax contingencies and other tax liabilities			$ 14.4	$ 11.8
Earliest Tax Year \| Foreign Country
Income Tax Examination [Line Items]
Tax years subject to examination			1996
Latest Tax Year \| Foreign Country
Income Tax Examination [Line Items]
Tax years subject to examination			2017
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

Restructuring Charges - Additional Information (Detail) $ in Millions	1 Months Ended	9 Months Ended	12 Months Ended
	May 31, 2016 Position	Mar. 31, 2017 USD ($) Position	Jun. 30, 2016 USD ($) Position	Jun. 30, 2015 USD ($)
Restructuring Cost and Reserve [Line Items]
Restructuring charges		$ 0
Phone Hardware Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Number of positions eliminated \| Position			7,400
Restructuring charges				$ 780
Reversal of prior year restructuring charges			$ (21)
Completion date		Jun. 30, 2017
2016 Restructuring
Restructuring Cost and Reserve [Line Items]
Restructuring charges			$ 501
Completion date		Jun. 30, 2017
Number of positions expected to be eliminated \| Position	1,850	2,850

Changes in Restructuring Liability (Detail)
$ in Millions

9 Months Ended

Mar. 31, 2017

USD ($)

Restructuring Cost and Reserve [Line Items]

Restructuring liability as of June 30, 2016

$ 709

Restructuring charges

Cash paid

(403)

Other

(9)

Restructuring liability as of March 31, 2017

297

Severance

Restructuring Cost and Reserve [Line Items]

Restructuring liability as of June 30, 2016

470

Restructuring charges

Cash paid

(327)

Other

(7)

Restructuring liability as of March 31, 2017

136

Other

Restructuring Cost and Reserve [Line Items]

Restructuring liability as of June 30, 2016

239

^[1]

Restructuring charges

^[1]

Cash paid

(76)

^[1]

Other

(2)

^[1]

Restructuring liability as of March 31, 2017

$ 161

^[1]

[1]	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

Mar. 31, 2017

Jun. 30, 2016

Deferred Revenue Arrangement [Line Items]

Unearned revenue

$ 35,733

$ 33,909

Reportable Segments | Productivity and Business Processes

Deferred Revenue Arrangement [Line Items]

Unearned revenue

11,159

12,497

Reportable Segments | Intelligent Cloud

Deferred Revenue Arrangement [Line Items]

Unearned revenue

9,722

11,472

Reportable Segments | More Personal Computing

Deferred Revenue Arrangement [Line Items]

Unearned revenue

2,930

3,334

Corporate and Other

Deferred Revenue Arrangement [Line Items]

Unearned revenue

^[1]

$ 11,922

$ 6,606

[1]	Consists of the net revenue deferral from Windows 10.

Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016	Jun. 30, 2016
Commitments and Contingencies [Line Items]
Assets recorded under capital leases	$ 1,900		$ 1,900		$ 865
Accumulated depreciation associated with capital leases	124		124		57
Property and equipment acquired under capital leases	296	$ 97	1,100	$ 97
Accrual for disclosed loss contingencies, current, ending balance	443		443
Amount not accrued for estimated maximum losses for disclosed loss contingencies	1,500		1,500
Capital Leases
Commitments and Contingencies [Line Items]
Additional purchase obligations for capital leases executed but not yet recorded	4,100		4,100
Other Current Liabilities
Commitments and Contingencies [Line Items]
Current capital lease obligations	86		86		25
Other Long-term Liabilities
Commitments and Contingencies [Line Items]
Long-term capital lease obligations	$ 1,700		$ 1,700		$ 761

Future Minimum Lease Payments under Non-cancellable Capital Leases (Detail)
$ in Millions

Mar. 31, 2017

USD ($)

Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]

Year Ending June 30, 2017 (excluding the nine months ended March 31, 2017)

$ 35

Year Ending June 30, 2018

149

Year Ending June 30, 2019

155

Year Ending June 30, 2020

159

Year Ending June 30, 2021

163

Thereafter

1,826

Total

$ 2,487

^[1]

[1]	Includes imputed interest of $660 million.

Stockholders' Equity - Additional Information (Detail) - USD ($)	Mar. 31, 2017	Sep. 20, 2016	Sep. 16, 2013
Share Repurchase Program 2013
Share Repurchases [Line Items]
Amount available for repurchase under the share repurchase program approved by the company's Board of Directors			$ 40,000,000,000
Share Repurchase Program 2016
Share Repurchases [Line Items]
Amount available for repurchase under the share repurchase program approved by the company's Board of Directors		$ 40,000,000,000
Unused amount of share repurchase program	$ 38,400,000,000

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

3 Months Ended

9 Months Ended

Mar. 31, 2017

Dec. 31, 2016

Sep. 30, 2016

Mar. 31, 2016

Dec. 31, 2015

Sep. 30, 2015

Mar. 31, 2017

Mar. 31, 2016

Share Repurchases [Line Items]

Shares of common stock repurchased

147

224

Value of common stock repurchased

$ 8,683

$ 11,200

Share Repurchase Program 2013

Share Repurchases [Line Items]

Shares of common stock repurchased

^[1]

Value of common stock repurchased

^[1]

$ 3,533

$ 3,550

$ 3,600

$ 4,000

Share Repurchase Program 2016

Share Repurchases [Line Items]

Shares of common stock repurchased

^[2]

Value of common stock repurchased

^[2]

$ 1,600

[1]	Repurchased under the share repurchase program approved September 16, 2013.
[2]	Repurchased under the share repurchase program approved September 20, 2016.

Dividends Declared (Detail) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended						9 Months Ended
	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Mar. 31, 2017	Mar. 31, 2016
Dividends [Line Items]
Declaration Date	Mar. 14, 2017	Nov. 30, 2016	Sep. 20, 2016	Mar. 15, 2016	Dec. 02, 2015	Sep. 15, 2015
Dividend Per Share	$ 0.39	$ 0.39	$ 0.39	$ 0.36	$ 0.36	$ 0.36	$ 1.17	$ 1.08
Record Date	May 18, 2017	Feb. 16, 2017	Nov. 17, 2016	May 19, 2016	Feb. 18, 2016	Nov. 19, 2015
Total Amount	$ 3,012	$ 3,012	$ 3,024	$ 2,821	$ 2,842	$ 2,868
Payment Date	Jun. 08, 2017	Mar. 09, 2017	Dec. 08, 2016	Jun. 09, 2016	Mar. 10, 2016	Dec. 10, 2015

Summary of Changes in Accumulated Other Comprehensive Income by Component (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, beginning of period			$ 71,997
Net current period other comprehensive income (loss)	$ 132	$ 67	(893)	$ (682)
Balance, end of period	69,729	74,806	69,729	74,806
Derivatives
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, beginning of period	595	598	352	590
Unrealized gains (losses), net of tax effects	(60)	(125)	424	158
Tax expense included in provision for income taxes	2	11	8	26
Amounts reclassified from accumulated other comprehensive income	(165)	(160)	(406)	(435)
Net current period other comprehensive income (loss)	(225)	(285)	18	(277)
Balance, end of period	370	313	370	313
Derivatives \| Revenue
Accumulated Other Comprehensive Income (Loss) [Line Items]
Reclassification adjustments for gains	(167)	(171)	(414)	(461)
Investments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, beginning of period	2,030	2,758	2,941	3,169
Unrealized gains (losses), net of tax effects	571	402	367	64
Tax expense included in provision for income taxes	273	31	654	70
Amounts reclassified from accumulated other comprehensive income	(506)	(57)	(1,213)	(130)
Net current period other comprehensive income (loss)	65	345	(846)	(66)
Balance, end of period	2,095	3,103	2,095	3,103
Investments \| Other income (expense), net
Accumulated Other Comprehensive Income (Loss) [Line Items]
Reclassification adjustments for gains	(779)	(88)	(1,867)	(200)
Translation adjustments and other
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, beginning of period	(2,113)	(1,583)	(1,756)	(1,237)
Net current period other comprehensive income (loss)	292	7	(65)	(339)
Balance, end of period	(1,821)	(1,576)	(1,821)	(1,576)
Accumulated other comprehensive income
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, beginning of period	512	1,773	1,537	2,522
Net current period other comprehensive income (loss)	132	67	(893)	(682)
Balance, end of period	$ 644	$ 1,840	$ 644	$ 1,840

Summary of Changes in Accumulated Other Comprehensive Income by Component (Parenthetical) (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016
Derivatives
Accumulated Other Comprehensive Income (Loss) [Line Items]
Unrealized gains (losses), tax effects	$ 3	$ (19)	$ 7	$ 24
Investments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Unrealized gains (losses), tax effects	307	217	197	34
Translation adjustments and other
Accumulated Other Comprehensive Income (Loss) [Line Items]
Net current period other comprehensive income (loss), tax effects	$ 0	$ 3	$ 7	$ (18)