1,945

2,953

6,314

$ 21,204

^[1],[4]

$ 16,798

^[5]

$ 12,193

Earnings per share:

Basic

$ 2.74

^[1]

$ 2.12

$ 1.49

Weighted average shares outstanding:

$ 2.71

^[1],[4]

$ 2.10

^[5]

$ 1.48

Basic

7,746

7,925

8,177

Cash dividends declared per common share

7,832

8,013

8,254

$ 1.56

$ 1.44

$ 1.24

[1]	On December 8, 2016, we acquired LinkedIn Corporation. LinkedIn has been included in our consolidated results of operations starting on the acquisition date.
[2]	Reflects the impact of the net revenue deferral from Windows 10 of $1.9 billion, $2.0 billion, $1.5 billion, and $1.4 billion, for the first, second, third, and fourth quarter of fiscal year 2017, respectively, and $6.7 billion for fiscal year 2017.
[3]	Reflects the impact of the net revenue deferral from Windows 10 of $1.3 billion, $1.7 billion, $1.6 billion, and $2.0 billion, for the first, second, third, and fourth quarter of fiscal year 2016, respectively, and $6.6 billion for fiscal year 2016.
[4]	Includes $306 million of employee severance expenses primarily related to our sales and marketing restructuring plan, which decreased operating income, net income, and diluted EPS by $306 million, $243 million, and $0.03, respectively.
[5]	Includes $630 million of asset impairment charges related to our phone business, and $480 million of restructuring charges associated with our 2016 restructuring plans, which together decreased operating income, net income, and diluted EPS by $1.1 billion, $895 million, and $0.11, respectively.

COMPREHENSIVE INCOME STATEMENTS - USD ($)
$ in Millions

12 Months Ended

Jun. 30, 2017

Jun. 30, 2016

Jun. 30, 2015

Net unrealized gains (losses) on derivatives (net of tax effects of $(5), $(12), and $20)

$ 21,204

^[1],[2]

$ 16,798

^[3]

$ 12,193

Other comprehensive income (loss):

(218)

(238)

559

Net unrealized losses on investments (net of tax effects of $(613), $(121), and $(197))

(1,116)

(228)

(362)

Translation adjustments and other (net of tax effects of $9, $(33), and $16)

228

(519)

(1,383)

(1,106)

(985)

(1,186)

Comprehensive income

$ 20,098

$ 15,813

$ 11,007

[1]	Includes $306 million of employee severance expenses primarily related to our sales and marketing restructuring plan, which decreased operating income, net income, and diluted EPS by $306 million, $243 million, and $0.03, respectively.
[2]	On December 8, 2016, we acquired LinkedIn Corporation. LinkedIn has been included in our consolidated results of operations starting on the acquisition date.
[3]	Includes $630 million of asset impairment charges related to our phone business, and $480 million of restructuring charges associated with our 2016 restructuring plans, which together decreased operating income, net income, and diluted EPS by $1.1 billion, $895 million, and $0.11, respectively.

COMPREHENSIVE INCOME STATEMENTS (Parenthetical) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2015
Net unrealized gains (losses) on derivatives, tax effects	$ (5)	$ (12)	$ 20
Net unrealized losses on investments, tax effects	(613)	(121)	(197)
Translation adjustments and other, tax effects	$ 9	$ (33)	$ 16

BALANCE SHEETS - USD ($) $ in Millions	Jun. 30, 2017	Jun. 30, 2016
Current assets:
Cash and cash equivalents	$ 7,663	$ 6,510
Short-term investments (including securities loaned of $3,694 and $204)	125,318	106,730
Total cash, cash equivalents, and short-term investments	132,981	113,240
Accounts receivable, net of allowance for doubtful accounts of $405 and $426	19,792	18,277
Inventories	2,181	2,251
Other	4,897	5,892
Total current assets	159,851	139,660
Property and equipment, net of accumulated depreciation of $24,179 and $19,800	23,734	18,356
Equity and other investments	6,023	10,431
Goodwill	35,122	17,872
Intangible assets, net	10,106	3,733
Other long-term assets	6,250	3,416
Total assets	241,086	193,468
Current liabilities:
Accounts payable	7,390	6,898
Short-term debt	9,072	12,904
Current portion of long-term debt	1,049	0
Accrued compensation	5,819	5,264
Income taxes	718	580
Short-term unearned revenue	34,102	27,468
Securities lending payable	97	294
Other	6,280	5,949
Total current liabilities	64,527	59,357
Long-term debt	76,073	40,557
Long-term unearned revenue	10,377	6,441
Deferred income taxes	531	1,476
Other long-term liabilities	17,184	13,640
Total liabilities	168,692	121,471
Commitments and contingencies
Stockholders' equity:
Common stock and paid-in capital – shares authorized 24,000; outstanding 7,708 and 7,808	69,315	68,178
Retained earnings	2,648	2,282
Accumulated other comprehensive income	431	1,537
Total stockholders' equity	72,394	71,997
Total liabilities and stockholders' equity	$ 241,086	$ 193,468

BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions	Jun. 30, 2017	Jun. 30, 2016
Short-term investments, securities loaned	$ 3,694	$ 204
Accounts receivable, allowance for doubtful accounts	405	426
Property and equipment, accumulated depreciation	$ 24,179	$ 19,800
Common stock, shares authorized	24,000,000,000	24,000,000,000
Common stock, outstanding	7,708,000,000	7,808,000,000

CASH FLOWS STATEMENTS - USD ($)
$ in Millions

12 Months Ended

Jun. 30, 2017

Jun. 30, 2016

Jun. 30, 2015

Operations

Adjustments to reconcile net income to net cash from operations:

$ 21,204

^[1],[2]

$ 16,798

^[3]

$ 12,193

Goodwill and asset impairments

630

7,498

Depreciation, amortization, and other

8,778

6,622

5,957

Net recognized gains on investments and derivatives

3,266

2,668

2,574

(2,073)

(223)

(443)

Deferral of unearned revenue

(3,296)

332

224

67,711

57,072

45,072

Recognition of unearned revenue

(57,735)

(48,498)

(44,920)

Changes in operating assets and liabilities:

Accounts receivable

(925)

(530)

1,456

Inventories

600

(272)

Other current assets

1,066

(1,167)

Other long-term assets

(539)

(41)

346

Accounts payable

(1,054)

Other current liabilities

386

(260)

(624)

Other long-term liabilities

1,533

(766)

1,599

Net cash from operations

39,507

33,325

29,668

Financing

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

(4,963)

7,195

4,481

Proceeds from issuance of debt

44,344

13,884

10,680

Repayments of debt

(7,922)

(2,796)

(1,500)

772

668

634

Common stock cash dividends paid

(11,788)

(15,969)

(14,443)

(11,845)

(11,006)

(9,882)

Net cash from (used in) financing

(190)

(369)

362

8,408

(8,393)

(9,668)

Investing

Additions to property and equipment

(8,129)

(8,343)

(5,944)

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

(25,944)

(1,393)

(3,723)

Purchases of investments

(176,905)

(129,758)

(98,729)

Maturities of investments

28,044

22,054

15,013

Sales of investments

136,350

93,287

70,848

Securities lending payable

(197)

203

(466)

Net cash used in investing

(46,781)

(23,950)

(23,001)

Effect of foreign exchange rates on cash and cash equivalents

(67)

(73)

Net change in cash and cash equivalents

1,153

915

(3,074)

Cash and cash equivalents, beginning of period

6,510

5,595

8,669

Cash and cash equivalents, end of period

$ 7,663

$ 6,510

$ 5,595

[1]	Includes $306 million of employee severance expenses primarily related to our sales and marketing restructuring plan, which decreased operating income, net income, and diluted EPS by $306 million, $243 million, and $0.03, respectively.
[2]	On December 8, 2016, we acquired LinkedIn Corporation. LinkedIn has been included in our consolidated results of operations starting on the acquisition date.
[3]	Includes $630 million of asset impairment charges related to our phone business, and $480 million of restructuring charges associated with our 2016 restructuring plans, which together decreased operating income, net income, and diluted EPS by $1.1 billion, $895 million, and $0.11, respectively.

STOCKHOLDERS' EQUITY STATEMENTS - USD ($)
$ in Millions

Total

Common stock and paid-in capital

Retained earnings

Accumulated other comprehensive income

Balance, beginning of period at Jun. 30, 2014

$ 68,366

$ 17,710

$ 3,708

634

$ 12,193

12,193

Common stock cash dividends

(1,186)

(10,063)

(13,209)

(3,700)

(10,744)

Stock-based compensation income tax benefits

2,574

588

Balance, end of period at Jun. 30, 2015

80,083

68,465

9,096

2,522

668

16,798

^[1]

16,798

Common stock cash dividends

(985)

(11,329)

(14,800)

(3,689)

(12,283)

Stock-based compensation income tax benefits

2,668

Balance, end of period at Jun. 30, 2016

71,997

68,178

2,282

1,537

772

21,204

^[2],[3]

21,204

Common stock cash dividends

(1,106)

(12,040)

(10,283)

(2,987)

(8,798)

Stock-based compensation income tax benefits

3,266

Balance, end of period at Jun. 30, 2017

$ 72,394

$ 69,315

$ 2,648

$ 431

[1]	Includes $630 million of asset impairment charges related to our phone business, and $480 million of restructuring charges associated with our 2016 restructuring plans, which together decreased operating income, net income, and diluted EPS by $1.1 billion, $895 million, and $0.11, respectively.
[2]	Includes $306 million of employee severance expenses primarily related to our sales and marketing restructuring plan, which decreased operating income, net income, and diluted EPS by $306 million, $243 million, and $0.03, respectively.
[3]	On December 8, 2016, we acquired LinkedIn Corporation. LinkedIn has been included in our consolidated results of operations starting on the acquisition date.

ACCOUNTING POLICIES

12 Months Ended

Jun. 30, 2017

ACCOUNTING POLICIES

NOTE 1 — ACCOUNTING POLICIES

Accounting Principles

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

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

Principles of Consolidation

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

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.

Foreign Currencies

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

Product Revenue and Service and Other Revenue

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 Microsoft Office 365, Microsoft Azure, Microsoft Dynamics 365, and Xbox Live; solution support; and consulting services. Service and other revenue also includes sales from online advertising and LinkedIn.

Revenue Recognition

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

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

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

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

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

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

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

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

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

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

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

Cost of Revenue

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

Product Warranty

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

Research and Development

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

Sales and Marketing

Sales and marketing expenses include payroll, employee benefits, stock-based compensation expense, and other headcount-related expenses associated with sales and marketing personnel, and the costs of advertising, promotions, trade shows, seminars, and other programs. Advertising costs are expensed as incurred. Advertising expense was $1.5 billion, $1.6 billion, and $1.9 billion in fiscal years 2017, 2016, and 2015, respectively.

Stock-Based Compensation

Compensation cost for stock awards, which include restricted stock units (“RSUs”) and performance stock units (“PSUs”), is measured at the fair value on the grant date and recognized as expense, net of estimated forfeitures, over the related service or performance period. The fair value of stock awards is based on the quoted price of our common stock on the grant date less the present value of expected dividends not received during the vesting period. We measure the fair value of PSUs using a Monte Carlo valuation model. Compensation cost for RSUs is recognized using the straight-line method and for PSUs is recognized using the accelerated method.

Compensation expense for the employee stock purchase plan (“ESPP”) is measured as the discount the employee is entitled to upon purchase and is recognized in the period of purchase.

Income Taxes

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

Fair Value Measurements

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

•

Level 1 – inputs are based upon unadjusted quoted prices for identical instruments 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 foreign government bonds, corporate notes and bonds, mortgage- and asset-backed securities, U.S. government and agency securities, common and preferred stock, 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 Instruments

Investments

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

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

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

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

Derivatives

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

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

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

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

Allowance for Doubtful Accounts

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

(In millions)


Year Ended June 30,	2017			2016			2015

Balance, beginning of period	$	426		$	335		$	301
Charged to costs and other		85			146			77
Write-offs		(106	)		(55	)		(43	)


Balance, end of period	$	405		$	426		$	335

Inventories

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

Property and Equipment

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

Goodwill

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

Intangible Assets

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

Recent Accounting Guidance

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 anticipate this guidance will have a material impact on our consolidated balance sheets upon adoption, and continue to evaluate any impacts to our 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 elected to early adopt the standard effective July 1, 2017 concurrent with our adoption of the new standard related to revenue recognition. We elected the available practical expedients on adoption. In preparation for adoption of the standard, we have implemented internal controls and key system functionality to enable the preparation of financial information.

The standard will have a material impact on our consolidated balance sheets, but will not have a material impact on our consolidated income statements. The most significant impact will be the recognition of ROU assets and lease liabilities for operating leases, while our accounting for capital leases remains substantially unchanged.

Adoption of the standard will result in the recognition of additional ROU assets and lease liabilities for operating leases of $6.6 billion and $5.2 billion as of June 30, 2017 and 2016, respectively. See Expected Impacts to Reported Results below for the impact of adoption of the standard on our consolidated financial statements.

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 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 will 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. We elected to early adopt the standard effective July 1, 2017. In preparation for adoption of the standard, we have implemented internal controls and key system functionality to enable the preparation of financial information and have reached conclusions on key accounting assessments related to the standard, including our assessment that the impact of accounting for costs incurred to obtain a contract is immaterial.

The most significant impact of the standard relates to our accounting for software license revenue. Specifically, for Windows 10, we will recognize revenue predominantly at the time of billing and delivery rather than ratably over the life of the related device. For certain multi-year commercial software subscriptions that include both distinct software licenses and Software Assurance, we will recognize license revenue at the time of contract execution rather than over the subscription period. 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. Revenue recognition related to our hardware, cloud offerings such as Office 365, LinkedIn, and professional services will remain substantially unchanged.

Adoption of the standard will result in the recognition of additional revenue of $6.6 billion and $5.8 billion for fiscal year 2017 and 2016, respectively, and an increase in the provision for income taxes of $2.5 billion and $2.1 billion, respectively, primarily due to the net change in Windows 10 revenue recognition. In addition, adoption of the standard will result in an increase in accounts receivable and other current and long-term assets of $2.7 billion and $4.2 billion, as of June 30, 2017 and 2016, respectively, driven by unbilled receivables from upfront recognition of revenue for certain multi-year commercial software subscriptions that include both distinct software licenses and Software Assurance; a reduction of unearned revenue of $17.8 billion and $11.7 billion as of June 30, 2017 and 2016, respectively, driven by the upfront recognition of license revenue from Windows 10 and certain multi-year commercial software subscriptions; and an increase in deferred income taxes of $5.2 billion and $4.8 billion as of June 30, 2017 and 2016, respectively, driven by the upfront recognition of revenue. See Expected Impacts to Reported Results below for the impact of adoption of the standard on our consolidated financial statements.

Expected Impacts to Reported Results

Adoption of the standards related to revenue recognition and leases is expected to impact our reported results as follows:

(In millions, except earnings per share)					Year Ended June 30, 2017


	As Reported		New Revenue Standard Adjustment		New Lease Standard Adjustment		As Adjusted

Income statements:

Revenue	$	89,950	$	6,621	$	0	$	96,571
Provision for income taxes		1,945		2,467		0		4,412
Net income		21,204		4,285		0		25,489
Diluted earnings per share		2.71		0.54		0		3.25

(In millions, except earnings per share)					Year Ended June 30, 2016


	As Reported		New Revenue Standard Adjustment		New Lease Standard Adjustment		As Adjusted

Income statements:

Revenue	$	85,320	$	5,834	$	0	$	91,154
Provision for income taxes		2,953		2,147		0		5,100
Net income		16,798		3,741		0		20,539
Diluted earnings per share		2.10		0.46		0		2.56

(In millions)					June 30, 2017


	As Reported		New Revenue Standard Adjustment		New Lease Standard Adjustment		As Adjusted

Balance sheets:

Accounts receivable, net	$	19,792	$	2,639	$	0	$	22,431
Operating lease right-of-use assets		0		0		6,555		6,555
Other current and long-term assets		11,147		32		0		11,179
Unearned revenue		44,479		(17,823)		0		26,656
Deferred income taxes		531		5,203		0		5,734
Operating lease liabilities		0		0		5,372		5,372
Other current and long-term liabilities		23,464		(26)		1,183		24,621
Stockholders' equity		72,394		15,317		0		87,711

(In millions)					June 30, 2016


	As Reported		New Revenue Standard Adjustment		New Lease Standard Adjustment		As Adjusted

Balance sheets:

Accounts receivable, net	$	18,277	$	2,359	$	0	$	20,636
Operating lease right-of-use assets		0		0		5,198		5,198
Other current and long-term assets		9,308		1,872		0		11,180
Unearned revenue		33,909		(11,716)		0		22,193
Deferred income taxes		1,476		4,837		0		6,313
Operating lease liabilities		0		0		4,257		4,257
Other current and long-term liabilities		19,589		17		941		20,547
Stockholders' equity		71,997		11,093		0		83,090

Adoption of the standards related to revenue recognition and leases had no impact to cash from or used in operating, financing, or investing on our consolidated cash flows statements.

EARNINGS PER SHARE

12 Months Ended

Jun. 30, 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)


Year Ended June 30,	2017		2016		2015

Net income available for common shareholders (A)	$	21,204	$	16,798	$	12,193

Weighted average outstanding shares of common stock (B)		7,746		7,925		8,177
Dilutive effect of stock-based awards		86		88		77


Common stock and common stock equivalents (C)		7,832		8,013		8,254


Earnings Per Share

Basic (A/B)	$	2.74	$	2.12	$	1.49
Diluted (A/C)	$	2.71	$	2.10	$	1.48

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

OTHER INCOME (EXPENSE), NET

12 Months Ended

Jun. 30, 2017

OTHER INCOME (EXPENSE), NET

NOTE 3 — OTHER INCOME (EXPENSE), NET

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

(In millions)


Year Ended June 30,	2017			2016			2015

Dividends and interest income	$	1,387		$	903		$	766
Interest expense		(2,222	)		(1,243	)		(781	)
Net recognized gains on investments		2,583			668			716
Net losses on derivatives		(510	)		(443	)		(423	)
Net gains (losses) on foreign currency remeasurements		(164	)		(121	)		335
Other, net		(251	)		(195	)		(267	)


Total	$	823		$	(431	)	$	346

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

(In millions)


Year Ended June 30,	2017			2016			2015

Other-than-temporary impairments of investments	$	(55	)	$	(322	)	$	(183	)
Realized gains from sales of available-for-sale securities		3,064			1,376			1,176
Realized losses from sales of available-for-sale securities		(426	)		(386	)		(277	)


Total	$	2,583		$	668		$	716

INVESTMENTS

12 Months Ended

Jun. 30, 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


June 30, 2017

Cash	$	3,624	$	0	$	0		$	3,624	$	3,624	$	0	$	0
Mutual funds		1,478		0		0			1,478		1,478		0		0
Commercial paper		319		0		0			319		69		250		0
Certificates of deposit		1,358		0		0			1,358		972		386		0
U.S. government and agency securities		112,119		85		(360	)		111,844		16		111,828		0
Foreign government bonds		5,276		2		(13	)		5,265		1,504		3,761		0
Mortgage- and asset-backed securities		3,921		14		(4	)		3,931		0		3,931		0
Corporate notes and bonds		4,786		61		(12	)		4,835		0		4,835		0
Municipal securities		284		43		0			327		0		327		0
Common and preferred stock		2,472		3,062		(34	)		5,500		0		0		5,500
Other investments		523		0		0			523		0		0		523


Total	$	136,160	$	3,267	$	(423	)	$	139,004	$	7,663	$	125,318	$	6,023

(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 June 30, 2017 and 2016, the recorded bases of common and preferred stock that are restricted for more than one year or are not publicly traded were $1.1 billion 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.

As of June 30, 2017, collateral received under agreements for loaned securities was $3.7 billion, which was primarily comprised of U.S. government and agency securities. As of June 30, 2016, collateral received under agreements for loaned securities 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


June 30, 2017

U.S. government and agency securities	$	87,558	$	(348	)	$	371	$	(12	)	$	87,929	$	(360	)
Foreign government bonds		4,006		(2	)		23		(11	)		4,029		(13	)
Mortgage- and asset-backed securities		1,068		(3	)		198		(1	)		1,266		(4	)
Corporate notes and bonds		669		(8	)		177		(4	)		846		(12	)
Common and preferred stock		69		(6	)		148		(28	)		217		(34	)


Total	$	93,370	$	(367	)	$	917	$	(56	)	$	94,287	$	(423	)

	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


June 30, 2017

Due in one year or less	$	18,212	$	18,188
Due after one year through five years		102,374		102,168
Due after five years through 10 years		6,478		6,504
Due after 10 years		999		1,019


Total	$	128,063	$	127,879

DERIVATIVES

12 Months Ended

Jun. 30, 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 June 30, 2017 and 2016, the total notional amounts of these foreign exchange contracts sold were $8.9 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 June 30, 2017 and 2016, the total notional amounts of these foreign exchange contracts sold were $5.1 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 June 30, 2017, the total notional amounts of these foreign exchange contracts purchased and sold were $8.8 billion and $10.6 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 June 30, 2017, the total notional amounts of equity contracts purchased and sold for managing market price risk were $1.9 billion and $2.4 billion, respectively, of which $1.6 billion and $1.8 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 June 30, 2017, the total notional amounts of fixed-interest rate contracts purchased and sold were $233 million and $352 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 June 30, 2017 and 2016, the total notional derivative amounts of mortgage contracts purchased were $567 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 June 30, 2017, the total notional amounts of credit contracts purchased and sold were $267 million and $63 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 June 30, 2017, the total notional amounts of commodity contracts purchased were $19 million. 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 June 30, 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

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

	June 30, 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		$	9			$	203			$	0			$	6			$	(134	)		$	(8	)		$	33			$	156			$	0			$	(296	)
Equity contracts			3				0				0				0				(6	)			0				23				0				0				(16	)
Interest rate contracts			3				0				0				0				(7	)			0				10				0				0				(25	)
Credit contracts			5				0				0				0				(1	)			0				6				0				0				(5	)


Total		$	20			$	203			$	0			$	6			$	(148	)		$	(8	)		$	72			$	156			$	0			$	(342	)


Designated Hedge Derivatives

Foreign exchange contracts		$	80			$	133			$	0			$	0			$	(3	)		$	0			$	1			$	392			$	0			$	(263	)
Equity contracts			0				0				67				0				(186	)			0				0				0				18				(25	)


Total		$	80			$	133			$	67			$	0			$	(189	)		$	0			$	1			$	392			$	18			$	(288	)


Total gross amounts of derivatives		$	100			$	336			$	67			$	6			$	(337	)		$	(8	)		$	73			$	548			$	18			$	(630	)


Gross derivatives either offset or subject to an enforceable master netting agreement		$	100			$	336			$	67			$	6			$	(334	)		$	(8	)		$	69			$	548			$	18			$	(630	)
Gross amounts of derivatives offset on the balance sheet			(20	)			(132	)			(67	)			(8	)			221				7				(74	)			(302	)			(25	)			398


Net amounts presented on the balance sheet			80				204				0				(2	)			(113	)			(1	)			(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				(228	)			0				0				0				0				(250	)


Net amount		$	80			$	204			$	0			$	(2	)		$	(341	)		$	(1	)		$	(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)


Year Ended June 30,	2017			2016			2015

Foreign Exchange Contracts

Derivatives	$	441		$	(797	)	$	741
Hedged items		(386	)		838			(725	)


Total amount of ineffectiveness	$	55		$	41		$	16


Equity Contracts

Derivatives	$	(74	)	$	(76	)	$	(107	)
Hedged items		74			76			107


Total amount of ineffectiveness	$	0		$	0		$	0


Amount of equity contracts excluded from effectiveness assessment	$	(80	)	$	(10	)	$	0

Cash Flow Hedge Gains (Losses)

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

(In millions)


Year Ended June 30,	2017			2016			2015

Effective Portion

Gains recognized in other comprehensive income (net of tax effects of $4, $24 and $35)	$	328		$	351		$	1,152
Gains reclassified from accumulated other comprehensive income into revenue		555			625			608

Amount Excluded from Effectiveness Assessment and Ineffective Portion

Losses recognized in other income (expense), net		(389	)		(354	)		(346	)

We estimate that $130 million of net derivative gains included in AOCI as of June 30, 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 fiscal year 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)


Year Ended June 30,	2017			2016			2015

Foreign exchange contracts	$	(117	)	$	(55	)	$	(483	)
Equity contracts		(114	)		(21	)		(19	)
Interest-rate contracts		14			10			23
Credit contracts		5			(1	)		(1	)
Commodity contracts		(22	)		(87	)		(223	)


Total	$	(234	)	$	(154	)	$	(703	)

FAIR VALUE MEASUREMENTS

12 Months Ended

Jun. 30, 2017

FAIR VALUE MEASUREMENTS

NOTE 6 — FAIR VALUE MEASUREMENTS

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


June 30, 2017

Assets

Mutual funds	$	1,478	$	0	$	0	$	1,478	$	0		$	1,478
Commercial paper		0		319		0		319		0			319
Certificates of deposit		0		1,358		0		1,358		0			1,358
U.S. government and agency securities		109,228		2,616		0		111,844		0			111,844
Foreign government bonds		0		5,187		0		5,187		0			5,187
Mortgage- and asset-backed securities		0		3,934		0		3,934		0			3,934
Corporate notes and bonds		0		4,829		1		4,830		0			4,830
Municipal securities		0		327		0		327		0			327
Common and preferred stock		2,414		1,994		18		4,426		0			4,426
Derivatives		1		508		0		509		(227	)		282


Total	$	113,121	$	21,072	$	19	$	134,212	$	(227	)	$	133,985


Liabilities

Derivatives and other	$	0	$	345	$	39	$	384	$	(228	)	$	156

(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)


June 30,		2017			2016

Net fair value of assets measured at fair value on a recurring basis	$	133,985		$	119,019
Cash		3,624			3,501
Common and preferred stock measured at fair value on a nonrecurring basis		1,073			767
Other investments measured at fair value on a nonrecurring basis		523			618
Less derivative net assets classified as other current and long-term assets		(202	)		(246	)
Other		1			12


Recorded basis of investment components	$	139,004		$	123,671

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

During fiscal year 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.

ACCUMULATED OTHER COMPREHENSIVE INCOME

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

+ References + Details

INVENTORIES

12 Months Ended

Jun. 30, 2017

INVENTORIES

NOTE 7 — INVENTORIES

The components of inventories were as follows:

(In millions)


June 30,	2017		2016

Raw materials	$	797	$	612
Work in process		145		158
Finished goods		1,239		1,481


Total	$	2,181	$	2,251

PROPERTY AND EQUIPMENT

12 Months Ended

Jun. 30, 2017

PROPERTY AND EQUIPMENT

NOTE 8 — PROPERTY AND EQUIPMENT

The components of property and equipment were as follows:

(In millions)


June 30,	2017			2016

Land	$	1,107		$	824
Buildings and improvements		16,284			12,393
Leasehold improvements		5,064			3,659
Computer equipment and software		21,414			17,391
Furniture and equipment		4,044			3,889


Total, at cost		47,913			38,156
Accumulated depreciation		(24,179	)		(19,800	)


Total, net	$	23,734		$	18,356

As of June 30, 2017 and 2016, assets recorded under capital leases were $2.7 billion and $865 million, respectively, and accumulated depreciation associated with capital leases was $161 million and $57 million, respectively. During fiscal years 2017 and 2016, property and equipment acquired under capital leases was $1.8 billion and $413 million, respectively.

During fiscal years 2017, 2016, and 2015, depreciation expense was $6.1 billion, $4.9 billion, and $4.1 billion, respectively.

BUSINESS COMBINATIONS

12 Months Ended

Jun. 30, 2017

BUSINESS COMBINATIONS

NOTE 9 — BUSINESS COMBINATIONS

On December 8, 2016, we completed our acquisition of all issued and outstanding shares of LinkedIn Corporation, the world’s largest professional network on the Internet, for a total purchase price of $27.0 billion. The purchase price consisted primarily of cash of $26.9 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 allocation of the purchase price to goodwill was completed as of June 30, 2017. The major classes of assets and liabilities to which we 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⁾		16,803
Short-term debt ^(b)		(1,323	)
Other current liabilities		(1,117	)
Deferred income taxes		(774	)
Other		(131	)


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 12 – 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 statement includes the following revenue and operating loss attributable to LinkedIn since the date of acquisition:

(In millions)


Year Ended June 30,		2017

Revenue	$	2,268
Operating loss	$	(948	)

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)


Year Ended June 30,		2017		2016

Revenue	$	91,668	$	88,652
Net income		20,894		15,383
Diluted earnings per share		2.67		1.92

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

12 Months Ended

Jun. 30, 2017

GOODWILL

NOTE 10 — GOODWILL

Changes in the carrying amount of goodwill were as follows:

(In millions)	June 30, 2015			Acquisitions			Other				June 30, 2016			Acquisitions				Other				June 30, 2017


Productivity and Business Processes		$	6,309		$	443		$	(74	)		$	6,678		$	17,072	^(a)		$	(11	)		$	23,739
Intelligent Cloud			4,917			549			1				5,467			49				39				5,555
More Personal Computing			5,713			100			(86	)			5,727			115				(14	)			5,828


Total		$	16,939		$	1,092		$	(159	)		$	17,872		$	17,236			$	14			$	35,122

(a)	Includes goodwill related to LinkedIn and other acquisitions. See Note 9 – 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.

Our accumulated goodwill impairment as of both June 30, 2017 and 2016 was $11.3 billion.

Goodwill Impairment

We test goodwill for impairment annually on May 1 at the reporting unit level, primarily using a discounted cash flow methodology with a peer-based, risk-adjusted weighted average cost of capital. We believe use of a discounted cash flow approach is the most reliable indicator of the fair values of the businesses. Effective May 1, 2017, we prospectively adopted accounting guidance that simplifies our goodwill impairment testing by eliminating the requirement to calculate the implied fair value of goodwill (formerly “Step 2”) in the event that an impairment is identified. Instead, an impairment charge is recorded based on the excess of the reporting unit’s carrying amount over its fair value.

No instances of impairment were identified in our May 1, 2017 or May 1, 2016 test. During fiscal year 2015, we recorded impairment charges of $5.1 billion related to goodwill in our previous Phone Hardware reporting unit. Phone Hardware goodwill is included in the Devices reporting unit within More Personal Computing under our current segment structure.

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

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

INTANGIBLE ASSETS

12 Months Ended

Jun. 30, 2017

INTANGIBLE ASSETS

NOTE 11 — INTANGIBLE ASSETS

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

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


June 30,							2017							2016

Technology-based ^(a)	$	7,765		$	(4,318	)	$	3,447	$	5,970	$	(3,648	)	$	2,322
Marketing-related		4,016			(829	)		3,187		1,869		(616	)		1,253
Contract-based		841			(722	)		119		796		(718	)		78
Customer-related		4,045			(692	)		3,353		465		(385	)		80


Total	$	16,667	^(b)	$	(6,561	)	$	10,106	$	9,100	$	(5,367	)	$	3,733

(a)	Technology-based intangible assets included $59 million and $115 million of net carrying amount of software to be sold, leased, or otherwise marketed as of June 30, 2017 and 2016, respectively.

(b)	Includes intangible assets related to LinkedIn and other additions. See Note 9 – Business Combinations for further information.

No material impairments of intangible assets were identified during fiscal year 2017.

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

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

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

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

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

(In millions)	Amount		Weighted Average Life		Amount		Weighted Average Life


Year Ended June 30,	2017				2016

Customer-related	$	3,607		7 years	$	30		3 years
Technology-based		2,265		2 years		361		4 years
Marketing-related		2,148		19 years		2		1 year
Contract-based		63		6 years		0		n/a


Total	$	8,083		9 years	$	393		4 years

Intangible assets amortization expense was $1.7 billion, $978 million, and $1.3 billion for fiscal years 2017, 2016, and 2015, respectively. Amortization of capitalized software was $55 million, $69 million, and $79 million for fiscal years 2017, 2016, and 2015, respectively.

The following table outlines the estimated future amortization expense related to intangible assets held as of June 30, 2017:

(In millions)


Year Ending June 30,

2018	$	2,190
2019		1,698
2020		1,180
2021		1,006
2022		932
Thereafter		3,100


Total	$	10,106

DEBT

12 Months Ended

Jun. 30, 2017

DEBT

NOTE 12 — DEBT

Short-term Debt

As of June 30, 2017, we had $9.1 billion of commercial paper issued and outstanding, with a weighted-average interest rate of 1.01% and maturities ranging from 25 days to 264 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 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 June 30, 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 June 30, 2017, the total carrying value and estimated fair value of our long-term debt, including the current portion, were $77.1 billion and $80.3 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:

(In millions, except interest rates)	Face Value		Face Value		Stated Interest Rate	Effective Interest Rate


June 30,		2017		2016

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)		1,996		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)		1,996		1,944	3.125%	3.218%
May 2, 2033 ^(d)		627		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	$	77,837	$	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 9 – 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. Cash paid for interest on our debt for fiscal years 2017, 2016, and 2015 was $1.6 billion, $1.1 billion, and $620 million, respectively. 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 June 30, 2017 and 2016, the aggregate unamortized discount and debt issuance costs associated with our long-term debt, including the current portion, were $715 million and $392 million, respectively.

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

(In millions)


Year Ending June 30,

2018	$	1,050
2019		4,000
2020		5,518
2021		3,750
2022		7,996
Thereafter		55,523


Total	$	77,837

INCOME TAXES

12 Months Ended

Jun. 30, 2017

INCOME TAXES

NOTE 13 — INCOME TAXES

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

(In millions)


Year Ended June 30,	2017			2016		2015

Current Taxes

U.S. federal	$	2,739		$	545	$	3,661
U.S. state and local		30			136		364
Foreign		2,472			1,940		2,065


Current taxes		5,241			2,621		6,090

Deferred Taxes

Deferred taxes		(3,296	)		332		224


Provision for income taxes	$	1,945		$	2,953	$	6,314

In fiscal year 2017, deferred taxes included U.S. and foreign deferred tax benefit of $2.7 billion and $617 million, respectively.

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

(In millions)


Year Ended June 30,	2017		2016			2015

U.S.	$	453	$	(325	)	$	7,363
Foreign		22,696		20,076			11,144


Income before income taxes	$	23,149	$	19,751		$	18,507

In fiscal year 2017, income before income taxes included the net impact of U.S. and foreign revenue deferrals related to the sales of Windows 10 of $6.4 billion and $317 million, respectively. In fiscal year 2016, income before income taxes included the net impact of U.S. and foreign revenue deferrals related to the sales of Windows 10 of $6.0 billion and $588 million, respectively. In fiscal year 2015, income before income taxes included the net impact of U.S. and foreign impairment, integration, and restructuring expenses relating to our phone business of $1.1 billion and $8.9 billion, respectively.

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



Year Ended June 30,	2017		2016		2015

Federal statutory rate		35.0%		35.0%		35.0%
Effect of:
Foreign earnings taxed at lower rates		(15.7)%		(19.4)%		(20.9)%
Phone business losses		(7.3)%		1.3%		19.1%
Excess tax benefits relating to stock-based compensation		(2.7)%		(2.0)%		0%
Domestic production activities deduction		(1.4)%		(0.6)%		(2.4)%
Interest, net		1.8%		1.2%		1.5%
Other reconciling items, net		(1.3)%		(0.5)%		1.8%


Effective rate		8.4%		15.0%		34.1%

The reduction from the federal statutory rate is primarily due to earnings taxed at lower rates in foreign jurisdictions resulting from producing and distributing our products and services through our foreign regional operations centers in Ireland, Singapore, and Puerto Rico. Our foreign regional operating centers, which are taxed at rates lower than the U.S. rate, generated 64%, 69%, and 73% of our foreign income before tax in fiscal years 2017, 2016, and 2015, respectively. Additionally, our effective tax rate in fiscal year 2017 reflects the realization of tax benefits attributable to previous phone business losses. In general, other reconciling items consist primarily of U.S. state income taxes, permanent items, and credits. In fiscal years 2017, 2016, and 2015, there were no individually significant other reconciling items.

The decrease in our effective tax rate for fiscal year 2017 compared to fiscal year 2016 was primarily due to the realization of tax benefits attributable to previous phone business losses, offset in part by changes in the mix of our income before income taxes between the U.S. and foreign countries. The fiscal year 2016 effective tax rate included the impact of nondeductible phone charges and valuation allowances.

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

(In millions)


June 30,	2017			2016

Deferred Income Tax Assets

Stock-based compensation expense	$	777		$	809
Other expense items		1,550			1,609
Restructuring charges		66			284
Unearned revenue		1,889			494
Impaired investments		59			226
Loss carryforwards		4,809			4,252
Depreciation and amortization		53			115
Other revenue items		130			89


Deferred income tax assets		9,333			7,878
Less valuation allowance		(3,310	)		(4,729	)


Deferred income tax assets, net of valuation allowance	$	6,023		$	3,149


Deferred Income Tax Liabilities

Foreign earnings	$	(1,107	)	$	(1,242	)
Unrealized gain on investments and debt		(1,384	)		(2,102	)
Depreciation and amortization		(1,630	)		(1,008	)
Other		(21	)		(54	)


Deferred income tax liabilities		(4,142	)		(4,406	)


Net deferred income tax assets (liabilities)	$	1,881		$	(1,257	)


Reported As

Other long-term assets	$	2,412		$	219
Long-term deferred income tax liabilities		(531	)		(1,476	)


Net deferred income tax assets (liabilities)	$	1,881		$	(1,257	)

In fiscal year 2017, we corrected the table above to include a $2.5 billion loss carryforward and valuation allowance as of June 30, 2016. We do not consider this correction to be material, and there was no impact to our consolidated financial statements.

As of June 30, 2017, we had net operating loss carryforwards of $13.7 billion, including $11.1 billion of foreign net operating loss carryforwards. The valuation allowance disclosed in the table above relates to the foreign net operating loss carryforwards and other net deferred tax assets that may not be realized.

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

As of June 30, 2017, we have not provided deferred U.S. income taxes or foreign withholding taxes on temporary differences of approximately $142 billion resulting from earnings for certain non-U.S. subsidiaries which are permanently reinvested outside the U.S. The unrecognized deferred tax liability associated with these temporary differences was approximately $45 billion as of June 30, 2017.

Income taxes paid, net of refunds, were $2.4 billion, $3.9 billion, and $4.4 billion in fiscal years 2017, 2016, and 2015, respectively.

Tax contingencies and other income tax liabilities were $13.5 billion and $11.8 billion as of June 30, 2017 and 2016, respectively, and are included in other long-term liabilities. This increase relates primarily to current period intercompany transfer pricing and tax credits.

Uncertain Tax Positions

Unrecognized tax benefits as of June 30, 2017, 2016, and 2015, were $11.7 billion, $10.2 billion, and $9.6 billion, respectively. If recognized, these tax benefits would affect our effective tax rates for fiscal years 2017, 2016, and 2015, by $10.2 billion, $8.8 billion, and $7.9 billion, respectively.

As of June 30, 2017, 2016, and 2015, we had accrued interest expense related to uncertain tax positions of $2.3 billion, $1.9 billion, and $1.7 billion, respectively, net of federal income tax benefits. Interest expense on unrecognized tax benefits was $399 million, $163 million, and $237 million in fiscal years 2017, 2016, and 2015, respectively, and was included in provision for income taxes.

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

(In millions)


Year Ended June 30,	2017			2016			2015

Balance, beginning of year	$	10,164		$	9,599		$	8,714
Decreases related to settlements		(4	)		(201	)		(50	)
Increases for tax positions related to the current year		1,277			1,086			1,091
Increases for tax positions related to prior years		397			115			94
Decreases for tax positions related to prior years		(49	)		(317	)		(144	)
Decreases due to lapsed statutes of limitations		(48	)		(118	)		(106	)


Balance, end of year	$	11,737		$	10,164		$	9,599

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 June 30, 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

12 Months Ended

Jun. 30, 2017

RESTRUCTURING CHARGES

NOTE 14 — 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 completed as of June 30, 2017.

2016 Restructuring

In the fourth quarter of fiscal year 2016, management approved restructuring plans that resulted in approximately 4,700 job eliminations in fiscal year 2017, primarily across our smartphone hardware business and global sales.

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. The actions associated with these restructuring plans were completed as of June 30, 2017.

2017 Restructuring

In June 2017, management approved a sales and marketing restructuring plan. In fiscal year 2017, we recorded employee severance expenses of $306 million primarily related to this sales and marketing restructuring plan. We do not expect to incur additional charges for this restructuring plan in subsequent years. The actions associated with this restructuring plan are expected to be completed by the end of fiscal year 2018.

Restructuring Summary

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


Balance, as of June 30, 2016		$	470		$	239		$	709
Restructuring charges			306			0			306
Cash paid			(367	)		(101	)		(468	)
Other			(36)			(79	)		(115	)


Balance, as of June 30, 2017		$	373		$	59		$	432

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

UNEARNED REVENUE

12 Months Ended

Jun. 30, 2017

UNEARNED REVENUE

NOTE 15 — UNEARNED REVENUE

Unearned revenue by segment was as follows:

(In millions)


June 30,	2017		2016

Productivity and Business Processes	$	14,291	$	12,497
Intelligent Cloud		13,464		11,472
More Personal Computing		3,420		3,334
Corporate and Other		13,304		6,606


Total	$	44,479	$	33,909

Corporate and Other 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.

COMMITMENTS

12 Months Ended

Jun. 30, 2017

COMMITMENTS

NOTE 16 — COMMITMENTS

Construction and Operating Leases

We have committed $1.1 billion for constructing new buildings, building improvements, and leasehold improvements as of June 30, 2017.

We have operating leases for most U.S. and international sales and support offices, datacenters, research and development facilities, manufacturing facilities, retail stores, and certain equipment. Rental expense for facilities operating leases was $1.3 billion, $1.0 billion, and $989 million, in fiscal years 2017, 2016, and 2015, respectively.

Future minimum rental commitments under non-cancellable facilities operating leases in place as of June 30, 2017 are as follows:

(In millions)


Year Ending June 30,

2018	$	1,292
2019		1,220
2020		1,115
2021		908
2022		749
Thereafter		2,588


Total	$	7,872

Capital Leases

We have capital leases for datacenters and corporate offices. As of June 30, 2017 and 2016, capital lease obligations included in other current liabilities were $113 million and $25 million, respectively, and capital lease obligations included in other long-term liabilities were $2.4 billion and $761 million, respectively.

Future minimum lease payments under non-cancellable capital leases as of June 30, 2017 were as follows:

(In millions)


Year Ending June 30,

2018	$	209
2019		217
2020		222
2021		227
2022		232
Thereafter		2,353


Total ^(a)	$	3,460

(a)	Includes imputed interest of $922 million.

As of June 30, 2017, we had additional purchase obligations for capital leases executed but not yet recorded of $3.2 billion.

CONTINGENCIES

12 Months Ended

Jun. 30, 2017

CONTINGENCIES

NOTE 17 — CONTINGENCIES

Patent and Intellectual Property Claims

IPCom patent litigation

IPCom GmbH & Co. (“IPCom”) is a German company that holds a large portfolio of mobile technology-related patents spanning about 170 patent families and addressing a broad range of cellular technologies. IPCom has asserted 19 of these patents in litigation against Nokia 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, which continue.

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 were added to these cases as a defendant after we acquired the Nokia phone business. Each of the ITC matters was 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 and the Delaware case was 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. Microsoft and IDT settled these cases in May 2017 and they have been dismissed.

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 have reached a tentative settlement.

Other patent and intellectual property claims

In addition to the IPCom cases, there were 41 other patent infringement cases pending against Microsoft as of June 30, 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 June 30, 2017, we accrued aggregate legal liabilities of $352 million. While we intend to defend these matters vigorously, adverse outcomes that we estimate could reach approximately $1.0 billion in aggregate beyond recorded amounts are reasonably possible. Were unfavorable final outcomes to occur, there exists the possibility of a material adverse impact on our consolidated financial statements for the period in which the effects become reasonably estimable.

Indemnifications

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

STOCKHOLDERS' EQUITY

12 Months Ended

Jun. 30, 2017

STOCKHOLDERS' EQUITY

NOTE 18 — STOCKHOLDERS’ EQUITY

Shares Outstanding

Shares of common stock outstanding were as follows:

(In millions)


Year Ended June 30,	2017			2016			2015

Balance, beginning of year		7,808			8,027			8,239
Issued		70			75			83
Repurchased		(170	)		(294	)		(295	)


Balance, end of year		7,708			7,808			8,027

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 June 30, 2017, $36.8 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		Shares		Amount


Year Ended June 30,	2017				2016				2015

First Quarter		63	$	3,550		89	$	4,000		43	$	2,000
Second Quarter		59		3,533		66		3,600		43		2,000
Third Quarter		25		1,600		69		3,600		116		5,000
Fourth Quarter		23		1,600		70		3,600		93		4,209


Total		170	$	10,283		294	$	14,800		295	$	13,209

Shares repurchased during the third and fourth quarter of fiscal year 2017 were under the share repurchase program approved September 20, 2016. All other shares repurchased were under the share repurchase program approved September 16, 2013. 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

In fiscal year 2017, our Board of Directors declared the following dividends:

Declaration Date

Dividend

Per Share

Record Date

Total Amount

Payment Date

(In millions)

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

3,009

June 8, 2017

June 13, 2017

0.39

August 17, 2017

3,006

September 14, 2017

The dividend declared on June 13, 2017 will be paid after the filing date of the 2017 Form 10-K and was included in other current liabilities as of June 30, 2017.

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

Declaration Date

Dividend

Per Share

Record Date

Total Amount

Payment Date

(In millions)

September 15, 2015

0.36

November 19, 2015

2,868

December 10, 2015

December 2, 2015

0.36

February 18, 2016

2,842

March 10, 2016

March 15, 2016

0.36

May 19, 2016

2,821

June 9, 2016

June 14, 2016

0.36

August 18, 2016

2,800

September 8, 2016

The dividend declared on June 14, 2016 was included in other current liabilities as of June 30, 2016.

ACCUMULATED OTHER COMPREHENSIVE INCOME

12 Months Ended

Jun. 30, 2017

NOTE 19 — ACCUMULATED OTHER COMPREHENSIVE INCOME

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

(In millions)


Year Ended June 30,	2017			2016			2015

Derivatives

Balance, beginning of period	$	352		$	590		$	31
Unrealized gains, net of tax effects of $4, $24 and $35		328			351			1,152
Reclassification adjustments for gains included in revenue		(555	)		(625	)		(608	)
Tax expense included in provision for income taxes		9			36			15


Amounts reclassified from accumulated other comprehensive income		(546	)		(589	)		(593	)


Net current period other comprehensive income (loss)		(218	)		(238	)		559


Balance, end of period	$	134		$	352		$	590


Investments

Balance, beginning of period	$	2,941		$	3,169		$	3,531
Unrealized gains, net of tax effects of $267, $120 and $59		517			219			110
Reclassification adjustments for gains included in other income (expense), net		(2,513	)		(688	)		(728	)
Tax expense included in provision for income taxes		880			241			256


Amounts reclassified from accumulated other comprehensive income		(1,633	)		(447	)		(472	)


Net current period other comprehensive loss		(1,116	)		(228	)		(362	)


Balance, end of period	$	1,825		$	2,941		$	3,169


Translation Adjustments and Other

Balance, beginning of period	$	(1,756	)	$	(1,237	)	$	146
Translation adjustments and other, net of tax effects of $9, $(33) and $16		228			(519	)		(1,383	)


Balance, end of period	$	(1,528	)	$	(1,756	)	$	(1,237	)


Accumulated other comprehensive income, end of period	$	431		$	1,537		$	2,522

EMPLOYEE STOCK AND SAVINGS PLANS

12 Months Ended

Jun. 30, 2017

EMPLOYEE STOCK AND SAVINGS PLANS

NOTE 20 — EMPLOYEE STOCK AND SAVINGS PLANS

We grant stock-based compensation to employees and directors. As of June 30, 2017, an aggregate of 127 million shares were authorized for future grant under our stock plans. Awards that expire or are canceled without delivery of shares generally become available for issuance under the plans. We issue new shares of Microsoft common stock to satisfy vesting of awards granted under our stock plans. We also have an ESPP for all eligible employees.

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

(In millions)


Year Ended June 30,	2017		2016		2015

Stock-based compensation expense	$	3,266	$	2,668	$	2,574
Income tax benefits related to stock-based compensation		1,066		882		868

Stock Plans

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

Executive Incentive Plan

Under the Executive Incentive Plan, the Compensation Committee approves stock awards to executive officers and certain senior executives. RSUs generally vest ratably over a four-year service period. PSUs generally vest over a three-year performance period. The number of shares the PSU holder receives is based on the extent to which the corresponding performance goals have been achieved.

Activity for all stock plans

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



Year Ended June 30,	2017		2016		2015

Dividends per share (quarterly amounts)	$	0.36 - $ 0.39	$	0.31 - $ 0.36	$	0.28 - $ 0.31
Interest rates		1.2% - 2.2%		1.1% - 1.8%		1.2% - 1.9%

During fiscal year 2017, the following activity occurred under our stock plans:

Shares			Weighted Average Grant-Date Fair Value


(In millions)

Stock Awards

Nonvested balance, beginning of year	194		$	36.92
Granted ^(a)	84			55.64
Assumed in acquisitions ^(b)	23			59.09
Vested	(80	)		37.36
Forfeited	(20	)		43.71


Nonvested balance, end of year	201			46.32

(a)	Includes 2 million PSUs granted during fiscal year 2017. During both fiscal year 2016 and 2015 we granted 1 million PSUs.

(b)	Substantially all awards assumed were related to LinkedIn. See Note 9 – Business Combinations for further information.

As of June 30, 2017, there was approximately $6.5 billion of total unrecognized compensation costs related to stock awards. These costs are expected to be recognized over a weighted average period of 3 years. The weighted average grant-date fair value of stock awards granted was $55.64, $41.51, and $42.36 for fiscal years 2017, 2016, and 2015, respectively. The fair value of stock awards vested was $4.8 billion, $3.9 billion, and $4.2 billion, for fiscal years 2017, 2016, and 2015, respectively.

Employee Stock Purchase Plan

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

(Shares in millions)


Year Ended June 30,	2017		2016		2015

Shares purchased		13		15		16
Average price per share	$	56.36	$	44.83	$	39.87

As of June 30, 2017, 129 million shares of our common stock were reserved for future issuance through the ESPP.

Savings Plan

We have a savings plan in the U.S. that qualifies under Section 401(k) of the Internal Revenue Code, and a number of savings plans in international locations. Participating U.S. employees may contribute a portion of their salary, subject to certain limitations. Beginning January 2016, we contribute fifty cents for each dollar a participant contributes in this plan, with a maximum employer contribution of 50% of the IRS contribution limit for the calendar year. Prior to January 2016, we contributed fifty cents for each dollar of the first 6% a participant contributed in this plan, with a maximum contribution of the lesser of 3% of a participant’s earnings or 3% of the IRS compensation limit for the calendar year. Matching contributions for all plans were $734 million, $549 million, and $454 million in fiscal years 2017, 2016, and 2015, respectively, and were expensed as contributed.

SEGMENT INFORMATION AND GEOGRAPHIC DATA

12 Months Ended

Jun. 30, 2017

SEGMENT INFORMATION AND GEOGRAPHIC DATA

NOTE 21 — SEGMENT INFORMATION AND GEOGRAPHIC DATA

In its operation of the business, management, including our chief operating decision maker, 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 Corporation. LinkedIn is reported as part of our Productivity and Business Processes segment.

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 Office 365 subscriptions and Office licensed on-premises, comprising Office, Exchange, SharePoint, Skype for Business, and Microsoft Teams, and related Client Access Licenses (“CALs”).

•

Office Consumer, including Office 365 subscriptions and Office licensed on-premises, and Office Consumer Services, including Skype, Outlook.com, and OneDrive.

•

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

•

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.

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, and 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 all devices. 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 Internet of Things (“IoT”); and MSN display advertising.

•

Devices, including Microsoft Surface, PC accessories, and other intelligent devices.

•

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)


Year Ended June 30,	2017			2016			2015

Revenue

Productivity and Business Processes	$	30,444		$	26,487		$	26,430
Intelligent Cloud		27,440			25,042			23,715
More Personal Computing		38,773			40,434			43,435
Corporate and Other		(6,707	)		(6,643	)		0


Total	$	89,950		$	85,320		$	93,580

(In millions)


Year Ended June 30,	2017			2016			2015

Operating income (loss)

Productivity and Business Processes	$	11,913		$	12,418		$	13,274
Intelligent Cloud		9,138			9,315			9,803
More Personal Computing		8,288			6,202			5,095
Corporate and Other		(7,013	)		(7,753	)		(10,011	)


Total	$	22,326		$	20,182		$	18,161

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

(In millions)


Year Ended June 30,	2017			2016			2015

Net revenue deferral from Windows 10	$	(6,707	)	$	(6,643	)	$	0
Impairment, integration, and restructuring expenses		(306	)		(1,110	)		(10,011	)


Total Corporate and Other	$	(7,013	)	$	(7,753	)	$	(10,011	)

No sales to an individual customer or country other than the United States accounted for more than 10% of fiscal year 2017, 2016, or 2015 revenue. Revenue, classified by the major geographic areas in which our customers are located, was as follows:

(In millions)


Year Ended June 30,	2017		2016		2015

United States ^(a)	$	45,248	$	40,578	$	42,941
Other countries		44,702		44,742		50,639


Total	$	89,950	$	85,320	$	93,580

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

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

(In millions)


Year Ended June 30,	2017			2016			2015

Microsoft Office system	$	25,389		$	23,588		$	23,538
Server products and tools		21,758			19,177			18,612
Xbox		9,256			9,395			9,121
Windows PC operating system		8,625	^(a)		8,104	^(a)		14,826
Advertising		6,971			6,098			4,557
Consulting and product support services		5,588			5,641			5,090
Devices		4,557			7,466			11,602
LinkedIn		2,268	^(b)		0			0
Other		5,538			5,851			6,234


Total	$	89,950		$	85,320		$	93,580

(a)	Includes the net revenue deferral from Windows 10.

(b)	Includes advertising revenue.

Our total commercial cloud revenue, which primarily comprises Office 365 commercial, Azure, Dynamics 365, and other cloud properties, was $14.9 billion, $9.5 billion, and $5.8 billion in fiscal years 2017, 2016, and 2015, respectively. These amounts are included in their respective product categories in the table above.

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

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

(In millions)


June 30,	2017		2016		2015

United States	$	39,118	$	22,819	$	19,562
Ireland		12,876		2,078		1,595
Luxembourg		6,845		6,854		6,879
Other countries		10,123		8,210		8,469


Total	$	68,962	$	39,961	$	36,505

QUARTERLY INFORMATION (UNAUDITED)

12 Months Ended

Jun. 30, 2017

QUARTERLY INFORMATION (UNAUDITED)

NOTE 22 — QUARTERLY INFORMATION (UNAUDITED)

(In millions, except per share amounts)


Quarter Ended	September 30			December 31		March 31		June 30			Total

Fiscal Year 2017^(a)

Revenue ⁽^b⁾		$	20,453	$	24,090	$	22,090	$	23,317		$	89,950
Gross margin			12,609		14,189		14,030		14,861			55,689
Operating income			5,225		6,177		5,594		5,330			22,326
Net income			4,690		5,200		4,801		6,513	^(c)		21,204	^(c)
Basic earnings per share			0.60		0.67		0.62		0.84			2.74
Diluted earnings per share			0.60		0.66		0.61		0.83	^(c)		2.71	^(c)



Fiscal Year 2016

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

(a)	On December 8, 2016, we acquired LinkedIn Corporation. LinkedIn has been included in our consolidated results of operations starting on the acquisition date.

(b)	Reflects the impact of the net revenue deferral from Windows 10 of $1.9 billion, $2.0 billion, $1.5 billion, and $1.4 billion, for the first, second, third, and fourth quarter of fiscal year 2017, respectively, and $6.7 billion for fiscal year 2017.

(c)	Includes $306 million of employee severance expenses primarily related to our sales and marketing restructuring plan, which decreased operating income, net income, and diluted EPS by $306 million, $243 million, and $0.03, respectively.

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

(e)	Includes $630 million of asset impairment charges related to our phone business, and $480 million of restructuring charges associated with our 2016 restructuring plans, which together decreased operating income, net income, and diluted EPS by $1.1 billion, $895 million, and $0.11, respectively.

ACCOUNTING POLICIES (Policies)

12 Months Ended

Jun. 30, 2017

Accounting Principles

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

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

Principles of Consolidation

Estimates and Assumptions

Foreign Currencies

Product Revenue and Service and Other Revenue

Revenue Recognition

Cost of Revenue

Product Warranty

Research and Development

Sales and Marketing

Stock-Based Compensation

Compensation expense for the employee stock purchase plan (“ESPP”) is measured as the discount the employee is entitled to upon purchase and is recognized in the period of purchase.

Income Taxes

Fair Value Measurements

•

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

Investments

Derivatives

Allowance for Doubtful Accounts

(In millions)


Year Ended June 30,	2017			2016			2015

Balance, beginning of period	$	426		$	335		$	301
Charged to costs and other		85			146			77
Write-offs		(106	)		(55	)		(43	)


Balance, end of period	$	405		$	426		$	335

Inventories

Property and Equipment

Goodwill

Intangible Assets

Recent Accounting Guidance

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

Expected Impacts to Reported Results

Adoption of the standards related to revenue recognition and leases is expected to impact our reported results as follows:

(In millions, except earnings per share)					Year Ended June 30, 2017


	As Reported		New Revenue Standard Adjustment		New Lease Standard Adjustment		As Adjusted

Income statements:

Revenue	$	89,950	$	6,621	$	0	$	96,571
Provision for income taxes		1,945		2,467		0		4,412
Net income		21,204		4,285		0		25,489
Diluted earnings per share		2.71		0.54		0		3.25

(In millions, except earnings per share)					Year Ended June 30, 2016


	As Reported		New Revenue Standard Adjustment		New Lease Standard Adjustment		As Adjusted

Income statements:

Revenue	$	85,320	$	5,834	$	0	$	91,154
Provision for income taxes		2,953		2,147		0		5,100
Net income		16,798		3,741		0		20,539
Diluted earnings per share		2.10		0.46		0		2.56

(In millions)					June 30, 2017


	As Reported		New Revenue Standard Adjustment		New Lease Standard Adjustment		As Adjusted

Balance sheets:

Accounts receivable, net	$	19,792	$	2,639	$	0	$	22,431
Operating lease right-of-use assets		0		0		6,555		6,555
Other current and long-term assets		11,147		32		0		11,179
Unearned revenue		44,479		(17,823)		0		26,656
Deferred income taxes		531		5,203		0		5,734
Operating lease liabilities		0		0		5,372		5,372
Other current and long-term liabilities		23,464		(26)		1,183		24,621
Stockholders' equity		72,394		15,317		0		87,711

(In millions)					June 30, 2016


	As Reported		New Revenue Standard Adjustment		New Lease Standard Adjustment		As Adjusted

Balance sheets:

Accounts receivable, net	$	18,277	$	2,359	$	0	$	20,636
Operating lease right-of-use assets		0		0		5,198		5,198
Other current and long-term assets		9,308		1,872		0		11,180
Unearned revenue		33,909		(11,716)		0		22,193
Deferred income taxes		1,476		4,837		0		6,313
Operating lease liabilities		0		0		4,257		4,257
Other current and long-term liabilities		19,589		17		941		20,547
Stockholders' equity		71,997		11,093		0		83,090

Adoption of the standards related to revenue recognition and leases had no impact to cash from or used in operating, financing, or investing on our consolidated cash flows statements.

Earnings Per Share

Segment Reporting

ACCOUNTING POLICIES (Tables)

12 Months Ended

Jun. 30, 2017

Allowance for Doubtful Accounts

Activity in the allowance for doubtful accounts was as follows:

(In millions)


Year Ended June 30,	2017			2016			2015

Balance, beginning of period	$	426		$	335		$	301
Charged to costs and other		85			146			77
Write-offs		(106	)		(55	)		(43	)


Balance, end of period	$	405		$	426		$	335

Expected Impacts of Adoption of Standards Related to Revenue Recognition and Leases to Reported Results

Adoption of the standards related to revenue recognition and leases is expected to impact our reported results as follows:

(In millions, except earnings per share)					Year Ended June 30, 2017


	As Reported		New Revenue Standard Adjustment		New Lease Standard Adjustment		As Adjusted

Income statements:

Revenue	$	89,950	$	6,621	$	0	$	96,571
Provision for income taxes		1,945		2,467		0		4,412
Net income		21,204		4,285		0		25,489
Diluted earnings per share		2.71		0.54		0		3.25

(In millions, except earnings per share)					Year Ended June 30, 2016


	As Reported		New Revenue Standard Adjustment		New Lease Standard Adjustment		As Adjusted

Income statements:

Revenue	$	85,320	$	5,834	$	0	$	91,154
Provision for income taxes		2,953		2,147		0		5,100
Net income		16,798		3,741		0		20,539
Diluted earnings per share		2.10		0.46		0		2.56

(In millions)					June 30, 2017


	As Reported		New Revenue Standard Adjustment		New Lease Standard Adjustment		As Adjusted

Balance sheets:

Accounts receivable, net	$	19,792	$	2,639	$	0	$	22,431
Operating lease right-of-use assets		0		0		6,555		6,555
Other current and long-term assets		11,147		32		0		11,179
Unearned revenue		44,479		(17,823)		0		26,656
Deferred income taxes		531		5,203		0		5,734
Operating lease liabilities		0		0		5,372		5,372
Other current and long-term liabilities		23,464		(26)		1,183		24,621
Stockholders' equity		72,394		15,317		0		87,711

(In millions)					June 30, 2016


	As Reported		New Revenue Standard Adjustment		New Lease Standard Adjustment		As Adjusted

Balance sheets:

Accounts receivable, net	$	18,277	$	2,359	$	0	$	20,636
Operating lease right-of-use assets		0		0		5,198		5,198
Other current and long-term assets		9,308		1,872		0		11,180
Unearned revenue		33,909		(11,716)		0		22,193
Deferred income taxes		1,476		4,837		0		6,313
Operating lease liabilities		0		0		4,257		4,257
Other current and long-term liabilities		19,589		17		941		20,547
Stockholders' equity		71,997		11,093		0		83,090

EARNINGS PER SHARE (Tables)

12 Months Ended

Jun. 30, 2017

Basic and Diluted Earnings Per Share

The components of basic and diluted EPS were as follows:

(In millions, except earnings per share)


Year Ended June 30,	2017		2016		2015

Net income available for common shareholders (A)	$	21,204	$	16,798	$	12,193

Weighted average outstanding shares of common stock (B)		7,746		7,925		8,177
Dilutive effect of stock-based awards		86		88		77


Common stock and common stock equivalents (C)		7,832		8,013		8,254


Earnings Per Share

Basic (A/B)	$	2.74	$	2.12	$	1.49
Diluted (A/C)	$	2.71	$	2.10	$	1.48

OTHER INCOME (EXPENSE), NET (Tables)

12 Months Ended

Jun. 30, 2017

Components of Other Income (Expense), Net

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

(In millions)


Year Ended June 30,	2017			2016			2015

Dividends and interest income	$	1,387		$	903		$	766
Interest expense		(2,222	)		(1,243	)		(781	)
Net recognized gains on investments		2,583			668			716
Net losses on derivatives		(510	)		(443	)		(423	)
Net gains (losses) on foreign currency remeasurements		(164	)		(121	)		335
Other, net		(251	)		(195	)		(267	)


Total	$	823		$	(431	)	$	346

Net Recognized Gains (Losses) on Investments

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

(In millions)


Year Ended June 30,	2017			2016			2015

Other-than-temporary impairments of investments	$	(55	)	$	(322	)	$	(183	)
Realized gains from sales of available-for-sale securities		3,064			1,376			1,176
Realized losses from sales of available-for-sale securities		(426	)		(386	)		(277	)


Total	$	2,583		$	668		$	716

INVESTMENTS (Tables)

12 Months Ended

Jun. 30, 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


June 30, 2017

Cash	$	3,624	$	0	$	0		$	3,624	$	3,624	$	0	$	0
Mutual funds		1,478		0		0			1,478		1,478		0		0
Commercial paper		319		0		0			319		69		250		0
Certificates of deposit		1,358		0		0			1,358		972		386		0
U.S. government and agency securities		112,119		85		(360	)		111,844		16		111,828		0
Foreign government bonds		5,276		2		(13	)		5,265		1,504		3,761		0
Mortgage- and asset-backed securities		3,921		14		(4	)		3,931		0		3,931		0
Corporate notes and bonds		4,786		61		(12	)		4,835		0		4,835		0
Municipal securities		284		43		0			327		0		327		0
Common and preferred stock		2,472		3,062		(34	)		5,500		0		0		5,500
Other investments		523		0		0			523		0		0		523


Total	$	136,160	$	3,267	$	(423	)	$	139,004	$	7,663	$	125,318	$	6,023

(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


June 30, 2017

U.S. government and agency securities	$	87,558	$	(348	)	$	371	$	(12	)	$	87,929	$	(360	)
Foreign government bonds		4,006		(2	)		23		(11	)		4,029		(13	)
Mortgage- and asset-backed securities		1,068		(3	)		198		(1	)		1,266		(4	)
Corporate notes and bonds		669		(8	)		177		(4	)		846		(12	)
Common and preferred stock		69		(6	)		148		(28	)		217		(34	)


Total	$	93,370	$	(367	)	$	917	$	(56	)	$	94,287	$	(423	)

	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


June 30, 2017

Due in one year or less	$	18,212	$	18,188
Due after one year through five years		102,374		102,168
Due after five years through 10 years		6,478		6,504
Due after 10 years		999		1,019


Total	$	128,063	$	127,879

DERIVATIVES (Tables)

12 Months Ended

Jun. 30, 2017

Fair Values of Derivative Instruments

	June 30, 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		$	9			$	203			$	0			$	6			$	(134	)		$	(8	)		$	33			$	156			$	0			$	(296	)
Equity contracts			3				0				0				0				(6	)			0				23				0				0				(16	)
Interest rate contracts			3				0				0				0				(7	)			0				10				0				0				(25	)
Credit contracts			5				0				0				0				(1	)			0				6				0				0				(5	)


Total		$	20			$	203			$	0			$	6			$	(148	)		$	(8	)		$	72			$	156			$	0			$	(342	)


Designated Hedge Derivatives

Foreign exchange contracts		$	80			$	133			$	0			$	0			$	(3	)		$	0			$	1			$	392			$	0			$	(263	)
Equity contracts			0				0				67				0				(186	)			0				0				0				18				(25	)


Total		$	80			$	133			$	67			$	0			$	(189	)		$	0			$	1			$	392			$	18			$	(288	)


Total gross amounts of derivatives		$	100			$	336			$	67			$	6			$	(337	)		$	(8	)		$	73			$	548			$	18			$	(630	)


Gross derivatives either offset or subject to an enforceable master netting agreement		$	100			$	336			$	67			$	6			$	(334	)		$	(8	)		$	69			$	548			$	18			$	(630	)
Gross amounts of derivatives offset on the balance sheet			(20	)			(132	)			(67	)			(8	)			221				7				(74	)			(302	)			(25	)			398


Net amounts presented on the balance sheet			80				204				0				(2	)			(113	)			(1	)			(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				(228	)			0				0				0				0				(250	)


Net amount		$	80			$	204			$	0			$	(2	)		$	(341	)		$	(1	)		$	(5	)		$	246			$	(7	)		$	(482	)

Non-designated Hedge Derivatives

Gains (Losses) on Derivative Instruments

(In millions)


Year Ended June 30,	2017			2016			2015

Foreign exchange contracts	$	(117	)	$	(55	)	$	(483	)
Equity contracts		(114	)		(21	)		(19	)
Interest-rate contracts		14			10			23
Credit contracts		5			(1	)		(1	)
Commodity contracts		(22	)		(87	)		(223	)


Total	$	(234	)	$	(154	)	$	(703	)

Fair value hedging

Gains (Losses) on Derivative Instruments

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

(In millions)


Year Ended June 30,	2017			2016			2015

Foreign Exchange Contracts

Derivatives	$	441		$	(797	)	$	741
Hedged items		(386	)		838			(725	)


Total amount of ineffectiveness	$	55		$	41		$	16


Equity Contracts

Derivatives	$	(74	)	$	(76	)	$	(107	)
Hedged items		74			76			107


Total amount of ineffectiveness	$	0		$	0		$	0


Amount of equity contracts excluded from effectiveness assessment	$	(80	)	$	(10	)	$	0

Cash flow hedging

Gains (Losses) on Derivative Instruments

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

(In millions)


Year Ended June 30,	2017			2016			2015

Effective Portion

Gains recognized in other comprehensive income (net of tax effects of $4, $24 and $35)	$	328		$	351		$	1,152
Gains reclassified from accumulated other comprehensive income into revenue		555			625			608

Amount Excluded from Effectiveness Assessment and Ineffective Portion

Losses recognized in other income (expense), net		(389	)		(354	)		(346	)

FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Jun. 30, 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


June 30, 2017

Assets

Mutual funds	$	1,478	$	0	$	0	$	1,478	$	0		$	1,478
Commercial paper		0		319		0		319		0			319
Certificates of deposit		0		1,358		0		1,358		0			1,358
U.S. government and agency securities		109,228		2,616		0		111,844		0			111,844
Foreign government bonds		0		5,187		0		5,187		0			5,187
Mortgage- and asset-backed securities		0		3,934		0		3,934		0			3,934
Corporate notes and bonds		0		4,829		1		4,830		0			4,830
Municipal securities		0		327		0		327		0			327
Common and preferred stock		2,414		1,994		18		4,426		0			4,426
Derivatives		1		508		0		509		(227	)		282


Total	$	113,121	$	21,072	$	19	$	134,212	$	(227	)	$	133,985


Liabilities

Derivatives and other	$	0	$	345	$	39	$	384	$	(228	)	$	156

(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)


June 30,		2017			2016

Net fair value of assets measured at fair value on a recurring basis	$	133,985		$	119,019
Cash		3,624			3,501
Common and preferred stock measured at fair value on a nonrecurring basis		1,073			767
Other investments measured at fair value on a nonrecurring basis		523			618
Less derivative net assets classified as other current and long-term assets		(202	)		(246	)
Other		1			12


Recorded basis of investment components	$	139,004		$	123,671

INVENTORIES (Tables)

12 Months Ended

Jun. 30, 2017

Components of Inventories

The components of inventories were as follows:

(In millions)


June 30,	2017		2016

Raw materials	$	797	$	612
Work in process		145		158
Finished goods		1,239		1,481


Total	$	2,181	$	2,251

PROPERTY AND EQUIPMENT (Tables)

12 Months Ended

Jun. 30, 2017

Components of Property and Equipment

The components of property and equipment were as follows:

(In millions)


June 30,	2017			2016

Land	$	1,107		$	824
Buildings and improvements		16,284			12,393
Leasehold improvements		5,064			3,659
Computer equipment and software		21,414			17,391
Furniture and equipment		4,044			3,889


Total, at cost		47,913			38,156
Accumulated depreciation		(24,179	)		(19,800	)


Total, net	$	23,734		$	18,356

BUSINESS COMBINATIONS (Tables)

12 Months Ended

Jun. 30, 2017

Acquired Intangible Assets

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

(In millions)	Amount		Weighted Average Life		Amount		Weighted Average Life


Year Ended June 30,	2017				2016

Customer-related	$	3,607		7 years	$	30		3 years
Technology-based		2,265		2 years		361		4 years
Marketing-related		2,148		19 years		2		1 year
Contract-based		63		6 years		0		n/a


Total	$	8,083		9 years	$	393		4 years

LinkedIn Corporation

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

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

(In millions)


Cash 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⁾		16,803
Short-term debt ^(b)		(1,323	)
Other current liabilities		(1,117	)
Deferred income taxes		(774	)
Other		(131	)


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 statement includes the following revenue and operating loss attributable to LinkedIn since the date of acquisition:

(In millions)


Year Ended June 30,		2017

Revenue	$	2,268
Operating loss	$	(948	)

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)


Year Ended June 30,		2017		2016

Revenue	$	91,668	$	88,652
Net income		20,894		15,383
Diluted earnings per share		2.67		1.92

GOODWILL (Tables)

12 Months Ended

Jun. 30, 2017

Carrying Amount of Goodwill

Changes in the carrying amount of goodwill were as follows:

(In millions)	June 30, 2015			Acquisitions			Other				June 30, 2016			Acquisitions				Other				June 30, 2017


Productivity and Business Processes		$	6,309		$	443		$	(74	)		$	6,678		$	17,072	^(a)		$	(11	)		$	23,739
Intelligent Cloud			4,917			549			1				5,467			49				39				5,555
More Personal Computing			5,713			100			(86	)			5,727			115				(14	)			5,828


Total		$	16,939		$	1,092		$	(159	)		$	17,872		$	17,236			$	14			$	35,122

(a)	Includes goodwill related to LinkedIn and other acquisitions. See Note 9 – Business Combinations for further information.

INTANGIBLE ASSETS (Tables)

12 Months Ended

Jun. 30, 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


June 30,							2017							2016

Technology-based ^(a)	$	7,765		$	(4,318	)	$	3,447	$	5,970	$	(3,648	)	$	2,322
Marketing-related		4,016			(829	)		3,187		1,869		(616	)		1,253
Contract-based		841			(722	)		119		796		(718	)		78
Customer-related		4,045			(692	)		3,353		465		(385	)		80


Total	$	16,667	^(b)	$	(6,561	)	$	10,106	$	9,100	$	(5,367	)	$	3,733

(a)	Technology-based intangible assets included $59 million and $115 million of net carrying amount of software to be sold, leased, or otherwise marketed as of June 30, 2017 and 2016, respectively.

(b)	Includes intangible assets related to LinkedIn and other additions. See Note 9 – Business Combinations for further information.

Acquired Intangible Assets

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

(In millions)	Amount		Weighted Average Life		Amount		Weighted Average Life


Year Ended June 30,	2017				2016

Customer-related	$	3,607		7 years	$	30		3 years
Technology-based		2,265		2 years		361		4 years
Marketing-related		2,148		19 years		2		1 year
Contract-based		63		6 years		0		n/a


Total	$	8,083		9 years	$	393		4 years

Estimated Future Amortization Expense Related to Intangible Assets

The following table outlines the estimated future amortization expense related to intangible assets held as of June 30, 2017:

(In millions)


Year Ending June 30,

2018	$	2,190
2019		1,698
2020		1,180
2021		1,006
2022		932
Thereafter		3,100


Total	$	10,106

DEBT (Tables)

12 Months Ended

Jun. 30, 2017

Long-term Debt

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

(In millions, except interest rates)	Face Value		Face Value		Stated Interest Rate	Effective Interest Rate


June 30,		2017		2016

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)		1,996		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)		1,996		1,944	3.125%	3.218%
May 2, 2033 ^(d)		627		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	$	77,837	$	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 9 – Business Combinations for further information.

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

(d)	Euro-denominated debt securities.

*	Not applicable.

Maturities of Long-term Debt

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

(In millions)


Year Ending June 30,

2018	$	1,050
2019		4,000
2020		5,518
2021		3,750
2022		7,996
Thereafter		55,523


Total	$	77,837

Provision for Income Taxes

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
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-URI http://asc.fasb.org/extlink&oid=84159872&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=75038535&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
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-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
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-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
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-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21538-112644

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
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-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21506-112644

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
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-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=84159872&loc=d3e21521-112644

+ Details

INCOME TAXES (Tables)

12 Months Ended

Jun. 30, 2017

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

(In millions)


Year Ended June 30,	2017			2016		2015

Current Taxes

U.S. federal	$	2,739		$	545	$	3,661
U.S. state and local		30			136		364
Foreign		2,472			1,940		2,065


Current taxes		5,241			2,621		6,090

Deferred Taxes

Deferred taxes		(3,296	)		332		224


Provision for income taxes	$	1,945		$	2,953	$	6,314

Income (Loss) Before Income Taxes

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

(In millions)


Year Ended June 30,	2017		2016			2015

U.S.	$	453	$	(325	)	$	7,363
Foreign		22,696		20,076			11,144


Income before income taxes	$	23,149	$	19,751		$	18,507

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

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



Year Ended June 30,	2017		2016		2015

Federal statutory rate		35.0%		35.0%		35.0%
Effect of:
Foreign earnings taxed at lower rates		(15.7)%		(19.4)%		(20.9)%
Phone business losses		(7.3)%		1.3%		19.1%
Excess tax benefits relating to stock-based compensation		(2.7)%		(2.0)%		0%
Domestic production activities deduction		(1.4)%		(0.6)%		(2.4)%
Interest, net		1.8%		1.2%		1.5%
Other reconciling items, net		(1.3)%		(0.5)%		1.8%


Effective rate		8.4%		15.0%		34.1%

Deferred Income Tax Assets and Liabilities

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

(In millions)


June 30,	2017			2016

Deferred Income Tax Assets

Stock-based compensation expense	$	777		$	809
Other expense items		1,550			1,609
Restructuring charges		66			284
Unearned revenue		1,889			494
Impaired investments		59			226
Loss carryforwards		4,809			4,252
Depreciation and amortization		53			115
Other revenue items		130			89


Deferred income tax assets		9,333			7,878
Less valuation allowance		(3,310	)		(4,729	)


Deferred income tax assets, net of valuation allowance	$	6,023		$	3,149


Deferred Income Tax Liabilities

Foreign earnings	$	(1,107	)	$	(1,242	)
Unrealized gain on investments and debt		(1,384	)		(2,102	)
Depreciation and amortization		(1,630	)		(1,008	)
Other		(21	)		(54	)


Deferred income tax liabilities		(4,142	)		(4,406	)


Net deferred income tax assets (liabilities)	$	1,881		$	(1,257	)


Reported As

Other long-term assets	$	2,412		$	219
Long-term deferred income tax liabilities		(531	)		(1,476	)


Net deferred income tax assets (liabilities)	$	1,881		$	(1,257	)

Changes in Unrecognized Tax Benefits

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

(In millions)


Year Ended June 30,	2017			2016			2015

Balance, beginning of year	$	10,164		$	9,599		$	8,714
Decreases related to settlements		(4	)		(201	)		(50	)
Increases for tax positions related to the current year		1,277			1,086			1,091
Increases for tax positions related to prior years		397			115			94
Decreases for tax positions related to prior years		(49	)		(317	)		(144	)
Decreases due to lapsed statutes of limitations		(48	)		(118	)		(106	)


Balance, end of year	$	11,737		$	10,164		$	9,599

RESTRUCTURING CHARGES (Tables)

12 Months Ended

Jun. 30, 2017

Changes in Restructuring Liability

Changes in the restructuring liability were as follows:

(In millions)	Severance				Other		^(a)	Total


Balance, as of June 30, 2016		$	470		$	239		$	709
Restructuring charges			306			0			306
Cash paid			(367	)		(101	)		(468	)
Other			(36)			(79	)		(115	)


Balance, as of June 30, 2017		$	373		$	59		$	432

(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)

12 Months Ended

Jun. 30, 2017

Unearned Revenue by Segment

Unearned revenue by segment was as follows:

(In millions)


June 30,	2017		2016

Productivity and Business Processes	$	14,291	$	12,497
Intelligent Cloud		13,464		11,472
More Personal Computing		3,420		3,334
Corporate and Other		13,304		6,606


Total	$	44,479	$	33,909

COMMITMENTS (Tables)

12 Months Ended

Jun. 30, 2017

Future Minimum Rental Commitments Under Non-cancellable Operating Leases

Future minimum rental commitments under non-cancellable facilities operating leases in place as of June 30, 2017 are as follows:

(In millions)


Year Ending June 30,

2018	$	1,292
2019		1,220
2020		1,115
2021		908
2022		749
Thereafter		2,588


Total	$	7,872

Future Minimum Lease Payments under Non-cancellable Capital Leases

Future minimum lease payments under non-cancellable capital leases as of June 30, 2017 were as follows:

(In millions)


Year Ending June 30,

2018	$	209
2019		217
2020		222
2021		227
2022		232
Thereafter		2,353


Total ^(a)	$	3,460

(a)	Includes imputed interest of $922 million.

STOCKHOLDERS' EQUITY (Tables)

12 Months Ended

Jun. 30, 2017

Shares of Common Stock Outstanding

Shares of common stock outstanding were as follows:

(In millions)


Year Ended June 30,	2017			2016			2015

Balance, beginning of year		7,808			8,027			8,239
Issued		70			75			83
Repurchased		(170	)		(294	)		(295	)


Balance, end of year		7,708			7,808			8,027

Share Repurchases

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

(In millions)	Shares		Amount		Shares		Amount		Shares		Amount


Year Ended June 30,	2017				2016				2015

First Quarter		63	$	3,550		89	$	4,000		43	$	2,000
Second Quarter		59		3,533		66		3,600		43		2,000
Third Quarter		25		1,600		69		3,600		116		5,000
Fourth Quarter		23		1,600		70		3,600		93		4,209


Total		170	$	10,283		294	$	14,800		295	$	13,209

Dividends Declared

In fiscal year 2017, our Board of Directors declared the following dividends:

Declaration Date

Dividend

Per Share

Record Date

Total Amount

Payment Date

(In millions)

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

3,009

June 8, 2017

June 13, 2017

0.39

August 17, 2017

3,006

September 14, 2017

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

Declaration Date

Dividend

Per Share

Record Date

Total Amount

Payment Date

(In millions)

September 15, 2015

0.36

November 19, 2015

2,868

December 10, 2015

December 2, 2015

0.36

February 18, 2016

2,842

March 10, 2016

March 15, 2016

0.36

May 19, 2016

2,821

June 9, 2016

June 14, 2016

0.36

August 18, 2016

2,800

September 8, 2016

ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables)

12 Months Ended

Jun. 30, 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)


Year Ended June 30,	2017			2016			2015

Derivatives

Balance, beginning of period	$	352		$	590		$	31
Unrealized gains, net of tax effects of $4, $24 and $35		328			351			1,152
Reclassification adjustments for gains included in revenue		(555	)		(625	)		(608	)
Tax expense included in provision for income taxes		9			36			15


Amounts reclassified from accumulated other comprehensive income		(546	)		(589	)		(593	)


Net current period other comprehensive income (loss)		(218	)		(238	)		559


Balance, end of period	$	134		$	352		$	590


Investments

Balance, beginning of period	$	2,941		$	3,169		$	3,531
Unrealized gains, net of tax effects of $267, $120 and $59		517			219			110
Reclassification adjustments for gains included in other income (expense), net		(2,513	)		(688	)		(728	)
Tax expense included in provision for income taxes		880			241			256


Amounts reclassified from accumulated other comprehensive income		(1,633	)		(447	)		(472	)


Net current period other comprehensive loss		(1,116	)		(228	)		(362	)


Balance, end of period	$	1,825		$	2,941		$	3,169


Translation Adjustments and Other

Balance, beginning of period	$	(1,756	)	$	(1,237	)	$	146
Translation adjustments and other, net of tax effects of $9, $(33) and $16		228			(519	)		(1,383	)


Balance, end of period	$	(1,528	)	$	(1,756	)	$	(1,237	)


Accumulated other comprehensive income, end of period	$	431		$	1,537		$	2,522

EMPLOYEE STOCK AND SAVINGS PLANS (Tables)

12 Months Ended

Jun. 30, 2017

Stock-Based Compensation Expense and Related Income Tax Benefits

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

(In millions)


Year Ended June 30,	2017		2016		2015

Stock-based compensation expense	$	3,266	$	2,668	$	2,574
Income tax benefits related to stock-based compensation		1,066		882		868

Assumptions Used in Estimating the Fair Value of Stock Award Grants

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



Year Ended June 30,	2017		2016		2015

Dividends per share (quarterly amounts)	$	0.36 - $ 0.39	$	0.31 - $ 0.36	$	0.28 - $ 0.31
Interest rates		1.2% - 2.2%		1.1% - 1.8%		1.2% - 1.9%

Stock Plan Activity

During fiscal year 2017, the following activity occurred under our stock plans:

Shares			Weighted Average Grant-Date Fair Value


(In millions)

Stock Awards

Nonvested balance, beginning of year	194		$	36.92
Granted ^(a)	84			55.64
Assumed in acquisitions ^(b)	23			59.09
Vested	(80	)		37.36
Forfeited	(20	)		43.71


Nonvested balance, end of year	201			46.32

(a)	Includes 2 million PSUs granted during fiscal year 2017. During both fiscal year 2016 and 2015 we granted 1 million PSUs.

(b)	Substantially all awards assumed were related to LinkedIn. See Note 9 – Business Combinations for further information.

Employee Purchased Shares

Employees purchased the following shares during the periods presented:

(Shares in millions)


Year Ended June 30,	2017		2016		2015

Shares purchased		13		15		16
Average price per share	$	56.36	$	44.83	$	39.87

SEGMENT INFORMATION AND GEOGRAPHIC DATA (Tables)

12 Months Ended

Jun. 30, 2017

Segment Revenue

(In millions)


Year Ended June 30,	2017			2016			2015

Revenue

Productivity and Business Processes	$	30,444		$	26,487		$	26,430
Intelligent Cloud		27,440			25,042			23,715
More Personal Computing		38,773			40,434			43,435
Corporate and Other		(6,707	)		(6,643	)		0


Total	$	89,950		$	85,320		$	93,580

Segment Operating Income (Loss)

(In millions)


Year Ended June 30,	2017			2016			2015

Operating income (loss)

Productivity and Business Processes	$	11,913		$	12,418		$	13,274
Intelligent Cloud		9,138			9,315			9,803
More Personal Computing		8,288			6,202			5,095
Corporate and Other		(7,013	)		(7,753	)		(10,011	)


Total	$	22,326		$	20,182		$	18,161

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

(In millions)


Year Ended June 30,	2017			2016			2015

Net revenue deferral from Windows 10	$	(6,707	)	$	(6,643	)	$	0
Impairment, integration, and restructuring expenses		(306	)		(1,110	)		(10,011	)


Total Corporate and Other	$	(7,013	)	$	(7,753	)	$	(10,011	)

Revenue Classified by Major Geographic Areas

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

(In millions)


Year Ended June 30,	2017		2016		2015

United States ^(a)	$	45,248	$	40,578	$	42,941
Other countries		44,702		44,742		50,639


Total	$	89,950	$	85,320	$	93,580

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

Revenue Classified by Significant Product and Service Offerings

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

(In millions)


Year Ended June 30,	2017			2016			2015

Microsoft Office system	$	25,389		$	23,588		$	23,538
Server products and tools		21,758			19,177			18,612
Xbox		9,256			9,395			9,121
Windows PC operating system		8,625	^(a)		8,104	^(a)		14,826
Advertising		6,971			6,098			4,557
Consulting and product support services		5,588			5,641			5,090
Devices		4,557			7,466			11,602
LinkedIn		2,268	^(b)		0			0
Other		5,538			5,851			6,234


Total	$	89,950		$	85,320		$	93,580

(a)	Includes the net revenue deferral from Windows 10.

(b)	Includes advertising revenue.

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

(In millions)


June 30,	2017		2016		2015

United States	$	39,118	$	22,819	$	19,562
Ireland		12,876		2,078		1,595
Luxembourg		6,845		6,854		6,879
Other countries		10,123		8,210		8,469


Total	$	68,962	$	39,961	$	36,505

QUARTERLY INFORMATION (UNAUDITED) (Tables)

12 Months Ended

Jun. 30, 2017

Quarterly Information (Unaudited)

(In millions, except per share amounts)


Quarter Ended	September 30			December 31		March 31		June 30			Total

Fiscal Year 2017^(a)

Revenue ⁽^b⁾		$	20,453	$	24,090	$	22,090	$	23,317		$	89,950
Gross margin			12,609		14,189		14,030		14,861			55,689
Operating income			5,225		6,177		5,594		5,330			22,326
Net income			4,690		5,200		4,801		6,513	^(c)		21,204	^(c)
Basic earnings per share			0.60		0.67		0.62		0.84			2.74
Diluted earnings per share			0.60		0.66		0.61		0.83	^(c)		2.71	^(c)



Fiscal Year 2016

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

(a)	On December 8, 2016, we acquired LinkedIn Corporation. LinkedIn has been included in our consolidated results of operations starting on the acquisition date.

(b)	Reflects the impact of the net revenue deferral from Windows 10 of $1.9 billion, $2.0 billion, $1.5 billion, and $1.4 billion, for the first, second, third, and fourth quarter of fiscal year 2017, respectively, and $6.7 billion for fiscal year 2017.

(c)	Includes $306 million of employee severance expenses primarily related to our sales and marketing restructuring plan, which decreased operating income, net income, and diluted EPS by $306 million, $243 million, and $0.03, respectively.

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

(e)	Includes $630 million of asset impairment charges related to our phone business, and $480 million of restructuring charges associated with our 2016 restructuring plans, which together decreased operating income, net income, and diluted EPS by $1.1 billion, $895 million, and $0.11, respectively.

Accounting Policies - Additional Information (Detail) - USD ($)
$ in Millions

3 Months Ended

12 Months Ended

Jun. 30, 2017

Mar. 31, 2017

Dec. 31, 2016

Sep. 30, 2016

Jun. 30, 2016

Mar. 31, 2016

Dec. 31, 2015

Sep. 30, 2015

Jun. 30, 2017

Jun. 30, 2016

Jun. 30, 2015

Advertising expense

$ 1,500

$ 1,600

$ 1,900

$ 23,317

^[1],[2]

$ 22,090

^[1],[2]

$ 24,090

^[1],[2]

$ 20,453

^[1],[2]

$ 20,614

^[3]

$ 20,531

^[3]

$ 23,796

^[3]

$ 20,379

^[3]

89,950

^[1],[2]

85,320

^[3]

93,580

1,945

2,953

$ 6,314

44,479

33,909

44,479

33,909

531

1,476

531

1,476

Scenario Plan

96,571

91,154

4,412

5,100

26,656

22,193

26,656

22,193

Accounting Standards Update 2016-02 | Scenario Plan

5,734

6,313

5,734

6,313

Recognition of additional ROU assets for operating leases

6,600

5,200

6,600

5,200

Recognition of additional lease liabilities for operating leases

6,600

5,200

6,600

5,200

Accounting Standards Update 2014-09 | Scenario Plan

6,621

5,834

Accounts receivable and other current and long-term assets

2,467

2,147

2,700

4,200

2,700

4,200

(17,823)

(11,716)

(17,823)

(11,716)

5,203

4,837

$ 5,203

4,837

Lower Limit

Estimated useful lives of intangible assets

1 year

Lower Limit | Software

Lower Limit | Computer Equipment

3 years

Lower Limit | Buildings and Improvements

2 years

Lower Limit | Leasehold Improvements

5 years

Lower Limit | Furniture and Fixtures

3 years

1 year

Upper Limit

Estimated useful lives of intangible assets

15 years

Upper Limit | Software

Upper Limit | Computer Equipment

7 years

Upper Limit | Buildings and Improvements

3 years

Upper Limit | Leasehold Improvements

15 years

Upper Limit | Furniture and Fixtures

20 years

10 years

Windows 10 Licenses

Windows 10 Licenses | Lower Limit

$ 1,400

$ 1,500

$ 2,000

$ 1,900

$ 2,000

$ 1,600

$ 1,700

$ 1,300

$ 6,700

$ 6,600

Revenue recognition period

2 years

Windows 10 Licenses | Upper Limit

Revenue recognition period

4 years

[1]	On December 8, 2016, we acquired LinkedIn Corporation. LinkedIn has been included in our consolidated results of operations starting on the acquisition date.
[2]	Reflects the impact of the net revenue deferral from Windows 10 of $1.9 billion, $2.0 billion, $1.5 billion, and $1.4 billion, for the first, second, third, and fourth quarter of fiscal year 2017, respectively, and $6.7 billion for fiscal year 2017.
[3]	Reflects the impact of the net revenue deferral from Windows 10 of $1.3 billion, $1.7 billion, $1.6 billion, and $2.0 billion, for the first, second, third, and fourth quarter of fiscal year 2016, respectively, and $6.6 billion for fiscal year 2016.

Allowance for Doubtful Accounts (Detail) - Allowance for doubtful accounts - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2015
Valuation and Qualifying Accounts Disclosure [Line Items]
Balance, beginning of period	$ 426	$ 335	$ 301
Charged to costs and other	85	146	77
Write-offs	(106)	(55)	(43)
Balance, end of period	$ 405	$ 426	$ 335

Expected Impacts of Adoption of Standards Related to Revenue Recognition and Leases to Reported Results - (Detail) - USD ($)
$ / shares in Units, $ in Millions

3 Months Ended

12 Months Ended

Jun. 30, 2017

Mar. 31, 2017

^[1]

Dec. 31, 2016

^[1]

Sep. 30, 2016

^[1]

Jun. 30, 2016

Mar. 31, 2016

Dec. 31, 2015

Sep. 30, 2015

Jun. 30, 2017

Jun. 30, 2016

Jun. 30, 2015

$ 23,317

^[1],[2]

$ 22,090

^[2]

$ 24,090

^[2]

$ 20,453

^[2]

$ 20,614

^[3]

$ 20,531

^[3]

$ 23,796

^[3]

$ 20,379

^[3]

$ 89,950

^[1],[2]

$ 85,320

^[3]

$ 93,580

1,945

2,953

6,314

$ 6,513

^[1],[4]

$ 4,801

$ 5,200

$ 4,690

$ 3,122

^[5]

$ 3,756

$ 5,018

$ 4,902

$ 21,204

^[1],[4]

$ 16,798

^[5]

$ 12,193

$ 0.83

^[1],[4]

$ 0.61

$ 0.66

$ 0.60

$ 0.39

^[5]

$ 0.47

$ 0.62

$ 0.61

$ 2.71

^[1],[4]

$ 2.10

^[5]

$ 1.48

$ 19,792

$ 18,277

$ 19,792

$ 18,277

11,147

9,308

11,147

9,308

44,479

33,909

44,479

33,909

531

1,476

531

1,476

23,464

19,589

23,464

19,589

72,394

71,997

72,394

71,997

$ 80,083

Scenario Plan

96,571

91,154

4,412

5,100

$ 25,489

$ 20,539

$ 3.25

$ 2.56

22,431

20,636

$ 22,431

$ 20,636

6,555

5,198

6,555

5,198

11,179

11,180

11,179

11,180

26,656

22,193

26,656

22,193

5,734

6,313

5,734

6,313

5,372

4,257

5,372

4,257

24,621

20,547

24,621

20,547

New Revenue Standard Adjustment | Scenario Plan

87,711

83,090

87,711

83,090

6,621

5,834

2,467

2,147

$ 4,285

$ 3,741

$ 0.54

$ 0.46

2,639

2,359

$ 2,639

$ 2,359

1,872

(17,823)

(11,716)

(17,823)

(11,716)

5,203

4,837

5,203

4,837

(26)

New Lease Standard Adjustment | Scenario Plan

15,317

11,093

15,317

11,093

$ 0

$ 0

$ 0

6,555

5,198

6,555

5,198

5,372

4,257

5,372

4,257

1,183

941

1,183

941

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

$ 0

[1]	On December 8, 2016, we acquired LinkedIn Corporation. LinkedIn has been included in our consolidated results of operations starting on the acquisition date.
[2]	Reflects the impact of the net revenue deferral from Windows 10 of $1.9 billion, $2.0 billion, $1.5 billion, and $1.4 billion, for the first, second, third, and fourth quarter of fiscal year 2017, respectively, and $6.7 billion for fiscal year 2017.
[3]	Reflects the impact of the net revenue deferral from Windows 10 of $1.3 billion, $1.7 billion, $1.6 billion, and $2.0 billion, for the first, second, third, and fourth quarter of fiscal year 2016, respectively, and $6.6 billion for fiscal year 2016.
[4]	Includes $306 million of employee severance expenses primarily related to our sales and marketing restructuring plan, which decreased operating income, net income, and diluted EPS by $306 million, $243 million, and $0.03, respectively.
[5]	Includes $630 million of asset impairment charges related to our phone business, and $480 million of restructuring charges associated with our 2016 restructuring plans, which together decreased operating income, net income, and diluted EPS by $1.1 billion, $895 million, and $0.11, respectively.

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

3 Months Ended

12 Months Ended

Jun. 30, 2017

^[2]

Mar. 31, 2017

^[2]

Dec. 31, 2016

^[2]

Sep. 30, 2016

^[2]

Jun. 30, 2016

Mar. 31, 2016

Dec. 31, 2015

Sep. 30, 2015

Jun. 30, 2017

Jun. 30, 2016

Jun. 30, 2015

Net income available for common shareholders (A)

$ 6,513

^[1]

$ 4,801

$ 5,200

$ 4,690

$ 3,122

^[3]

$ 3,756

$ 5,018

$ 4,902

$ 21,204

^[1],[2]

$ 16,798

^[3]

$ 12,193

Weighted average outstanding shares of common stock (B)

7,746

7,925

8,177

Dilutive effect of stock-based awards

Common stock and common stock equivalents (C)

7,832

8,013

8,254

Earnings Per Share

Basic (A/B)

$ 0.84

$ 0.62

$ 0.67

$ 0.60

$ 0.40

$ 0.48

$ 0.63

$ 0.61

$ 2.74

^[2]

$ 2.12

$ 1.49

Diluted (A/C)

$ 0.83

^[1]

$ 0.61

$ 0.66

$ 0.60

$ 0.39

^[3]

$ 0.47

$ 0.62

$ 0.61

$ 2.71

^[1],[2]

$ 2.10

^[3]

$ 1.48

[1]	Includes $306 million of employee severance expenses primarily related to our sales and marketing restructuring plan, which decreased operating income, net income, and diluted EPS by $306 million, $243 million, and $0.03, respectively.
[2]	On December 8, 2016, we acquired LinkedIn Corporation. LinkedIn has been included in our consolidated results of operations starting on the acquisition date.
[3]	Includes $630 million of asset impairment charges related to our phone business, and $480 million of restructuring charges associated with our 2016 restructuring plans, which together decreased operating income, net income, and diluted EPS by $1.1 billion, $895 million, and $0.11, respectively.

Components of Other Income (Expense), Net (Detail) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2015
Components of Other Income (Expense) [Line Items]
Dividends and interest income	$ 1,387	$ 903	$ 766
Interest expense	(2,222)	(1,243)	(781)
Net recognized gains on investments	2,583	668	716
Net losses on derivatives	(510)	(443)	(423)
Net gains (losses) on foreign currency remeasurements	(164)	(121)	335
Other, net	(251)	(195)	(267)
Total	$ 823	$ (431)	$ 346

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	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2015
Gains (Losses) on Investments [Line Items]
Other-than-temporary impairments of investments	$ (55)	$ (322)	$ (183)
Realized gains from sales of available-for-sale securities	3,064	1,376	1,176
Realized losses from sales of available-for-sale securities	(426)	(386)	(277)
Total	$ 2,583	$ 668	$ 716

Cash and cash equivalents

+ References + Details

Investment Components, Including Associated Derivatives (Detail) - USD ($) $ in Millions	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Cash, Cash Equivalents and Investments [Line Items]
Cost Basis	$ 136,160	$ 119,078
Unrealized Gains	3,267	4,895
Unrealized Losses	(423)	(302)
Recorded Basis	139,004	123,671
Cash and cash equivalents	7,663	6,510	$ 5,595	$ 8,669
Short-term Investments	125,318	106,730
Equity and Other Investments	6,023	10,431
Cash
Cash, Cash Equivalents and Investments [Line Items]
Cash	3,624	3,501
Unrealized Gains	0	0
Unrealized Losses	0	0
Cash and cash equivalents	3,624	3,501
Short-term Investments	0	0
Equity and Other Investments	0	0
Mutual funds
Cash, Cash Equivalents and Investments [Line Items]
Cost Basis	1,478	1,012
Unrealized Gains	0	0
Unrealized Losses	0	0
Recorded Basis	1,478	1,012
Cash and cash equivalents	1,478	1,012
Short-term Investments	0	0
Equity and Other Investments	0	0
Commercial paper
Cash, Cash Equivalents and Investments [Line Items]
Cost Basis	319	298
Unrealized Gains	0	0
Unrealized Losses	0	0
Recorded Basis	319	298
Cash and cash equivalents	69	298
Short-term Investments	250	0
Equity and Other Investments	0	0
Certificates of deposit
Cash, Cash Equivalents and Investments [Line Items]
Cost Basis	1,358	1,000
Unrealized Gains	0	0
Unrealized Losses	0	0
Recorded Basis	1,358	1,000
Cash and cash equivalents	972	868
Short-term Investments	386	132
Equity and Other Investments	0	0
U.S. government and agency securities
Cash, Cash Equivalents and Investments [Line Items]
Cost Basis	112,119	89,970
Unrealized Gains	85	245
Unrealized Losses	(360)	(11)
Recorded Basis	111,844	90,204
Cash and cash equivalents	16	100
Short-term Investments	111,828	90,104
Equity and Other Investments	0	0
Foreign government bonds
Cash, Cash Equivalents and Investments [Line Items]
Cost Basis	5,276	5,502
Unrealized Gains	2	10
Unrealized Losses	(13)	(18)
Recorded Basis	5,265	5,494
Cash and cash equivalents	1,504	731
Short-term Investments	3,761	4,763
Equity and Other Investments	0	0
Mortgage- and asset-backed securities
Cash, Cash Equivalents and Investments [Line Items]
Cost Basis	3,921	4,789
Unrealized Gains	14	21
Unrealized Losses	(4)	(2)
Recorded Basis	3,931	4,808
Cash and cash equivalents	0	0
Short-term Investments	3,931	4,808
Equity and Other Investments	0	0
Corporate notes and bonds
Cash, Cash Equivalents and Investments [Line Items]
Cost Basis	4,786	6,509
Unrealized Gains	61	110
Unrealized Losses	(12)	(35)
Recorded Basis	4,835	6,584
Cash and cash equivalents	0	0
Short-term Investments	4,835	6,584
Equity and Other Investments	0	0
Municipal securities
Cash, Cash Equivalents and Investments [Line Items]
Cost Basis	284	285
Unrealized Gains	43	57
Unrealized Losses	0	0
Recorded Basis	327	342
Cash and cash equivalents	0	0
Short-term Investments	327	342
Equity and Other Investments	0	0
Common and preferred stock
Cash, Cash Equivalents and Investments [Line Items]
Cost Basis	2,472	5,597
Unrealized Gains	3,062	4,452
Unrealized Losses	(34)	(236)
Recorded Basis	5,500	9,813
Cash and cash equivalents	0	0
Short-term Investments	0	0
Equity and Other Investments	5,500	9,813
Other investments
Cash, Cash Equivalents and Investments [Line Items]
Cost Basis	523	615
Unrealized Gains	0	0
Unrealized Losses	0	0
Recorded Basis	523	615
Cash and cash equivalents	0	0
Short-term Investments	0	(3)
Equity and Other Investments	$ 523	$ 618

Investments - Cost Method - Additional Information (Detail) - USD ($) $ in Millions	Jun. 30, 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	$ 1,073	$ 767

Investments - Secured Borrowings and Loaned Securities - Additional Information (Detail) - USD ($) $ in Millions	Jun. 30, 2017	Jun. 30, 2016
U.S. Government and Agency Securities
Investment [Line Items]
Collateral received	$ 3,700
Cash
Investment [Line Items]
Collateral received		$ 294

Unrealized Losses on Investments (Detail) - USD ($) $ in Millions	Jun. 30, 2017	Jun. 30, 2016
Unrealized Losses on Investments [Line Items]
Less than 12 Months - Fair Value	$ 93,370	$ 12,188
Less than 12 Months - Unrealized Losses	(367)	(165)
12 Months or Greater - Fair Value	917	1,967
12 Months or Greater - Unrealized Losses	(56)	(137)
Total Fair Value	94,287	14,155
Total Unrealized Losses	(423)	(302)
U.S. government and agency securities
Unrealized Losses on Investments [Line Items]
Less than 12 Months - Fair Value	87,558	5,816
Less than 12 Months - Unrealized Losses	(348)	(3)
12 Months or Greater - Fair Value	371	432
12 Months or Greater - Unrealized Losses	(12)	(8)
Total Fair Value	87,929	6,248
Total Unrealized Losses	(360)	(11)
Foreign government bonds
Unrealized Losses on Investments [Line Items]
Less than 12 Months - Fair Value	4,006	3,452
Less than 12 Months - Unrealized Losses	(2)	(3)
12 Months or Greater - Fair Value	23	35
12 Months or Greater - Unrealized Losses	(11)	(15)
Total Fair Value	4,029	3,487
Total Unrealized Losses	(13)	(18)
Mortgage- and asset-backed securities
Unrealized Losses on Investments [Line Items]
Less than 12 Months - Fair Value	1,068	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	1,266	1,166
Total Unrealized Losses	(4)	(2)
Corporate notes and bonds
Unrealized Losses on Investments [Line Items]
Less than 12 Months - Fair Value	669	1,180
Less than 12 Months - Unrealized Losses	(8)	(11)
12 Months or Greater - Fair Value	177	788
12 Months or Greater - Unrealized Losses	(4)	(24)
Total Fair Value	846	1,968
Total Unrealized Losses	(12)	(35)
Common and preferred stock
Unrealized Losses on Investments [Line Items]
Less than 12 Months - Fair Value	69	896
Less than 12 Months - Unrealized Losses	(6)	(147)
12 Months or Greater - Fair Value	148	390
12 Months or Greater - Unrealized Losses	(28)	(89)
Total Fair Value	217	1,286
Total Unrealized Losses	$ (34)	$ (236)

Debt Investment Maturities (Detail) $ in Millions	Jun. 30, 2017 USD ($)
Cost Basis
Due in one year or less	$ 18,212
Due after one year through five years	102,374
Due after five years through 10 years	6,478
Due after 10 years	999
Total	128,063
Estimated Fair Value
Due in one year or less	18,188
Due after one year through five years	102,168
Due after five years through 10 years	6,504
Due after 10 years	1,019
Total	$ 127,879

Derivatives - Additional Information (Detail) - USD ($)	12 Months Ended
Derivatives - Additional Information (Detail) - USD ($)	Jun. 30, 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	$ 130,000,000
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	$ 10,600,000,000	$ 11,700,000,000
Derivatives Sold \| Equity Contracts
Derivative [Line Items]
Notional amounts	2,400,000,000	2,200,000,000
Derivatives Sold \| Equity Contracts \| Designated Hedge Derivatives
Derivative [Line Items]
Notional amounts	1,800,000,000	986,000,000
Derivatives Sold \| Interest Rate Contracts \| Non-designated Hedge Derivatives
Derivative [Line Items]
Notional amounts	352,000,000	2,400,000,000
Derivatives Sold \| Credit Contracts \| Non-designated Hedge Derivatives
Derivative [Line Items]
Notional amounts	63,000,000	273,000,000
Derivatives Sold \| Commodity Contracts \| Non-designated Hedge Derivatives
Derivative [Line Items]
Notional amounts		162,000,000
Derivatives Sold \| Cash flow hedging \| Foreign Exchange Contracts
Derivative [Line Items]
Notional amounts	8,900,000,000	8,400,000,000
Derivatives Sold \| Fair value hedging \| Foreign Exchange Contracts
Derivative [Line Items]
Notional amounts	5,100,000,000	5,300,000,000
Derivatives Purchased \| Foreign Exchange Contracts \| Non-designated Hedge Derivatives
Derivative [Line Items]
Notional amounts	8,800,000,000	12,000,000,000
Derivatives Purchased \| Equity Contracts
Derivative [Line Items]
Notional amounts	1,900,000,000	1,300,000,000
Derivatives Purchased \| Equity Contracts \| Designated Hedge Derivatives
Derivative [Line Items]
Notional amounts	1,600,000,000	737,000,000
Derivatives Purchased \| Interest Rate Contracts \| Non-designated Hedge Derivatives
Derivative [Line Items]
Notional amounts	233,000,000	328,000,000
Derivatives Purchased \| Mortgage-backed securities \| Non-designated Hedge Derivatives
Derivative [Line Items]
Notional amounts	567,000,000	548,000,000
Derivatives Purchased \| Credit Contracts \| Non-designated Hedge Derivatives
Derivative [Line Items]
Notional amounts	267,000,000	440,000,000
Derivatives Purchased \| Commodity Contracts \| Non-designated Hedge Derivatives
Derivative [Line Items]
Notional amounts	$ 19,000,000	$ 631,000,000

Fair Values of Derivative Instruments (Detail) - USD ($) $ in Millions	Jun. 30, 2017	Jun. 30, 2016
Short-term Investments
Derivatives, Fair Value [Line Items]
Derivative Assets	$ 100	$ 73
Net amount, assets	80	(5)
Short-term Investments \| Eligible for Offsetting
Derivatives, Fair Value [Line Items]
Derivative Assets	100	69
Gross amounts of derivatives offset on the balance sheet, assets	(20)	(74)
Net amounts presented on the balance sheet, assets	80	(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	336	548
Net amount, assets	204	246
Other Current Assets \| Eligible for Offsetting
Derivatives, Fair Value [Line Items]
Derivative Assets	336	548
Gross amounts of derivatives offset on the balance sheet, assets	(132)	(302)
Net amounts presented on the balance sheet, assets	204	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	67	18
Net amount, assets	0	(7)
Equity and Other Investments \| Eligible for Offsetting
Derivatives, Fair Value [Line Items]
Derivative Assets	67	18
Gross amounts of derivatives offset on the balance sheet, assets	(67)	(25)
Net amounts presented on the balance sheet, assets	0	(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	6
Net amount, assets	(2)
Other Long-term Assets \| Eligible for Offsetting
Derivatives, Fair Value [Line Items]
Derivative Assets	6
Gross amounts of derivatives offset on the balance sheet, assets	(8)
Net amounts presented on the balance sheet, assets	(2)
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	(337)	(630)
Net amount, liabilities	(341)	(482)
Other Current Liabilities \| Eligible for Offsetting
Derivatives, Fair Value [Line Items]
Derivative Liabilities	(334)	(630)
Gross amounts of derivatives offset on the balance sheet, liabilities	221	398
Net amounts presented on the balance sheet, liabilities	(113)	(232)
Gross amounts of derivatives not offset on the balance sheet, liabilities	0	0
Cash collateral received, liabilities	(228)	(250)
Other Long-term Liabilities
Derivatives, Fair Value [Line Items]
Derivative Liabilities	(8)
Net amount, liabilities	(1)
Other Long-term Liabilities \| Eligible for Offsetting
Derivatives, Fair Value [Line Items]
Derivative Liabilities	(8)
Gross amounts of derivatives offset on the balance sheet, liabilities	7
Net amounts presented on the balance sheet, liabilities	(1)
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	20	72
Non-designated Hedge Derivatives \| Short-term Investments \| Foreign Exchange Contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	9	33
Non-designated Hedge Derivatives \| Short-term Investments \| Equity Contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	3	23
Non-designated Hedge Derivatives \| Short-term Investments \| Interest Rate Contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	3	10
Non-designated Hedge Derivatives \| Short-term Investments \| Credit Contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	5	6
Non-designated Hedge Derivatives \| Other Current Assets
Derivatives, Fair Value [Line Items]
Derivative Assets	203	156
Non-designated Hedge Derivatives \| Other Current Assets \| Foreign Exchange Contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	203	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 \| 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 \| 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 Current Liabilities
Derivatives, Fair Value [Line Items]
Derivative Liabilities	(148)	(342)
Non-designated Hedge Derivatives \| Other Current Liabilities \| Foreign Exchange Contracts
Derivatives, Fair Value [Line Items]
Derivative Liabilities	(134)	(296)
Non-designated Hedge Derivatives \| Other Current Liabilities \| Equity Contracts
Derivatives, Fair Value [Line Items]
Derivative Liabilities	(6)	(16)
Non-designated Hedge Derivatives \| Other Current Liabilities \| Interest Rate Contracts
Derivatives, Fair Value [Line Items]
Derivative Liabilities	(7)	(25)
Non-designated Hedge Derivatives \| Other Current Liabilities \| Credit Contracts
Derivatives, Fair Value [Line Items]
Derivative Liabilities	(1)	(5)
Non-designated Hedge Derivatives \| Other Long-term Liabilities
Derivatives, Fair Value [Line Items]
Derivative Liabilities	(8)
Non-designated Hedge Derivatives \| Other Long-term Liabilities \| Foreign Exchange Contracts
Derivatives, Fair Value [Line Items]
Derivative Liabilities	(8)
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
Designated Hedge Derivatives \| Short-term Investments
Derivatives, Fair Value [Line Items]
Derivative Assets	80	1
Designated Hedge Derivatives \| Short-term Investments \| Foreign Exchange Contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	80	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	133	392
Designated Hedge Derivatives \| Other Current Assets \| Foreign Exchange Contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	133	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	67	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	67	18
Designated Hedge Derivatives \| Other Long-term Assets
Derivatives, Fair Value [Line Items]
Derivative Assets	0
Designated Hedge Derivatives \| Other Long-term Assets \| Foreign Exchange Contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	0
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	(189)	(288)
Designated Hedge Derivatives \| Other Current Liabilities \| Foreign Exchange Contracts
Derivatives, Fair Value [Line Items]
Derivative Liabilities	(3)	(263)
Designated Hedge Derivatives \| Other Current Liabilities \| Equity Contracts
Derivatives, Fair Value [Line Items]
Derivative Liabilities	(186)	$ (25)
Designated Hedge Derivatives \| Other Long-term Liabilities
Derivatives, Fair Value [Line Items]
Derivative Liabilities	0
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	$ 0

Gains (Losses) on Fair Value Hedges and Related Hedged Items (Detail) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2015
Foreign Exchange Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Derivatives	$ 441	$ (797)	$ 741
Hedged items	(386)	838	(725)
Total amount of ineffectiveness	55	41	16
Equity Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Derivatives	(74)	(76)	(107)
Hedged items	74	76	107
Total amount of ineffectiveness	0	0	0
Amount of equity contracts excluded from effectiveness assessment	$ (80)	$ (10)	$ 0

Gains (Losses) Related to Cash Flow Hedges (Detail) - Designated Hedge Derivatives - Foreign Exchange Contracts - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2015
Effective Portion
Gains recognized in other comprehensive income (net of tax effects of $4, $24 and $35)	$ 328	$ 351	$ 1,152
Gains reclassified from accumulated other comprehensive income into revenue	555	625	608
Amount Excluded from Effectiveness Assessment and Ineffective Portion
Losses recognized in other income (expense), net	$ (389)	$ (354)	$ (346)

Gains (Losses) Related to Cash Flow Hedges (Parenthetical) (Detail) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2015
Designated Hedge Derivatives \| Foreign Exchange Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in other comprehensive income, tax effects	$ 4	$ 24	$ 35

Non-Designated Derivative Gains (Losses) (Detail) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2015
Derivative Instruments, Gain (Loss) [Line Items]
Changes in fair value of derivatives not designated as hedges	$ (234)	$ (154)	$ (703)
Foreign Exchange Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Changes in fair value of derivatives not designated as hedges	(117)	(55)	(483)
Equity Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Changes in fair value of derivatives not designated as hedges	(114)	(21)	(19)
Interest Rate Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Changes in fair value of derivatives not designated as hedges	14	10	23
Credit Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Changes in fair value of derivatives not designated as hedges	5	(1)	(1)
Commodity Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Changes in fair value of derivatives not designated as hedges	$ (22)	$ (87)	$ (223)

Reconciliation of Total Assets Measured at Fair Value on Recurring Basis to Balance Sheet Presentation (Detail) - USD ($) $ in Millions	Jun. 30, 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	$ 133,985	$ 119,019
Other	1	12
Recorded basis of investment components	139,004	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	(202)	(246)
Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash	3,624	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	1,073	767
Other investments measured at fair value on a nonrecurring basis	$ 523	$ 618

Components of Inventories (Detail) - USD ($) $ in Millions	Jun. 30, 2017	Jun. 30, 2016
Inventory [Line Items]
Raw materials	$ 797	$ 612
Work in process	145	158
Finished goods	1,239	1,481
Total	$ 2,181	$ 2,251

Components of Property and Equipment (Detail) - USD ($) $ in Millions	Jun. 30, 2017	Jun. 30, 2016
Property, Plant and Equipment [Line Items]
Land	$ 1,107	$ 824
Buildings and improvements	16,284	12,393
Leasehold improvements	5,064	3,659
Computer equipment and software	21,414	17,391
Furniture and equipment	4,044	3,889
Total, at cost	47,913	38,156
Accumulated depreciation	(24,179)	(19,800)
Total, net	$ 23,734	$ 18,356

Property and Equipment - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2015
Property, Plant and Equipment [Line Items]
Assets recorded under capital leases	$ 2,700	$ 865
Accumulated depreciation associated with capital leases	161	57
Property and equipment acquired under capital leases	1,800	413
Depreciation expense	$ 6,100	$ 4,900	$ 4,100

Business Combinations - Additional Information (Detail) - LinkedIn Corporation - USD ($) $ in Billions		12 Months Ended
	Dec. 08, 2016	Jun. 30, 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	$ 26.9

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

Jun. 30, 2017

Dec. 08, 2016

Jun. 30, 2016

Jun. 30, 2015

Business Acquisition [Line Items]

Goodwill

$ 35,122

$ 17,872

$ 16,939

LinkedIn Corporation

Business Acquisition [Line Items]

$ 1,328

Short-term investments

2,110

Other current assets

697

Property and equipment

1,529

Intangible assets

7,887

Goodwill

^[1]

16,803

Short-term debt

^[2]

(1,323)

Other current liabilities

(1,117)

(774)

(131)

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 12 – Debt for further information.

Major Classes of Assets and Liabilities to Which We Allocated the Purchase Price (Parenthetical) (Detail) - USD ($)	Jun. 30, 2017	Dec. 08, 2016	Jun. 30, 2016
Business Acquisition [Line Items]
Business combination, long-term debt	$ 77,837,000,000		$ 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) - USD ($) $ in Millions		12 Months Ended
Acquired Intangible Assets (Detail) - USD ($) $ in Millions	Dec. 08, 2016	Jun. 30, 2017	Jun. 30, 2016
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted Average Life		9 years	4 years
Customer-related
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted Average Life		7 years	3 years
Marketing-related (trade names)
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted Average Life		19 years	1 year
Technology-based
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted Average Life		2 years	4 years
Contract-based
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted Average Life		6 years
LinkedIn Corporation
Acquired Finite-Lived Intangible Assets [Line Items]
Fair value of intangible assets acquired	$ 7,887
Weighted Average Life	9 years
LinkedIn Corporation \| Customer-related
Acquired Finite-Lived Intangible Assets [Line Items]
Fair value of intangible assets acquired	$ 3,607
Weighted Average Life	7 years
LinkedIn Corporation \| Marketing-related (trade names)
Acquired Finite-Lived Intangible Assets [Line Items]
Fair value of intangible assets acquired	$ 2,148
Weighted Average Life	20 years
LinkedIn Corporation \| Technology-based
Acquired Finite-Lived Intangible Assets [Line Items]
Fair value of intangible assets acquired	$ 2,109
Weighted Average Life	3 years
LinkedIn Corporation \| 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 $ in Millions	12 Months Ended
	Jun. 30, 2017 USD ($)
Business Acquisition [Line Items]
Revenue	$ 2,268
Operating loss	$ (948)

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	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Business Acquisition [Line Items]
Revenue	$ 91,668	$ 88,652
Net income	$ 20,894	$ 15,383
Diluted earnings per share	$ 2.67	$ 1.92

Carrying Amount of Goodwill (Detail) - USD ($)
$ in Millions

12 Months Ended

Jun. 30, 2017

Jun. 30, 2016

$ 17,872

$ 16,939

17,236

1,092

(159)

Productivity and Business Processes

35,122

17,872

6,678

6,309

17,072

^[1]

443

(11)

(74)

23,739

6,678

Intelligent Cloud

5,467

4,917

549

5,555

5,467

More Personal Computing

5,727

5,713

115

100

(14)

(86)

$ 5,828

$ 5,727

[1]	Includes goodwill related to LinkedIn and other acquisitions. See Note 9 – Business Combinations for further information.

Goodwill - Additional Information (Detail) - USD ($)			12 Months Ended
Goodwill - Additional Information (Detail) - USD ($)	May 01, 2017	May 01, 2016	Jun. 30, 2015	Jun. 30, 2017	Jun. 30, 2016
Goodwill [Line Items]
Accumulated goodwill impairment				$ 11,300,000,000	$ 11,300,000,000
Goodwill impairment charge	$ 0	$ 0
Phone Hardware
Goodwill [Line Items]
Goodwill impairment charge			$ 5,100,000,000

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

Jun. 30, 2017

Jun. 30, 2016

$ 16,667

^[1]

$ 9,100

(6,561)

(5,367)

10,106

3,733

Technology-based

^[2]

7,765

5,970

^[2]

(4,318)

(3,648)

^[2]

3,447

2,322

Marketing-related

4,016

1,869

(829)

(616)

3,187

1,253

Contract-based

841

796

(722)

(718)

119

Customer-related

4,045

465

(692)

(385)

$ 3,353

$ 80

[1]	Includes intangible assets related to LinkedIn and other additions. See Note 9 – Business Combinations for further information.
[2]	Technology-based intangible assets included $59 million and $115 million of net carrying amount of software to be sold, leased, or otherwise marketed as of June 30, 2017 and 2016, respectively.

Finite-Lived Intangible Assets (Parenthetical) (Detail) - USD ($) $ in Millions	Jun. 30, 2017	Jun. 30, 2016
Technology-based
Finite-Lived Intangible Assets [Line Items]
Net carrying amount of software to be sold, leased, or otherwise marketed	$ 59	$ 115

Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2015
Finite-Lived Intangible Assets [Line Items]
Intangible assets amortization expense	$ 1,700	$ 978	$ 1,300
Amortization of capitalized software	$ 55	69	79
Devices
Finite-Lived Intangible Assets [Line Items]
Impairment charges of intangible assets		$ 480
Phone Hardware
Finite-Lived Intangible Assets [Line Items]
Impairment charges of intangible assets			$ 2,200

Intangible Assets Acquired (Detail) - USD ($) $ in Millions	12 Months Ended
Intangible Assets Acquired (Detail) - USD ($) $ in Millions	Jun. 30, 2017	Jun. 30, 2016
Acquired Finite-Lived Intangible Assets [Line Items]
Amount	$ 8,083	$ 393
Weighted Average Life	9 years	4 years
Customer-related
Acquired Finite-Lived Intangible Assets [Line Items]
Amount	$ 3,607	$ 30
Weighted Average Life	7 years	3 years
Technology-based
Acquired Finite-Lived Intangible Assets [Line Items]
Amount	$ 2,265	$ 361
Weighted Average Life	2 years	4 years
Marketing-related
Acquired Finite-Lived Intangible Assets [Line Items]
Amount	$ 2,148	$ 2
Weighted Average Life	19 years	1 year
Contract-based
Acquired Finite-Lived Intangible Assets [Line Items]
Amount	$ 63	$ 0
Weighted Average Life	6 years

Estimated Future Amortization Expense Related to Intangible Assets (Detail) - USD ($) $ in Millions	Jun. 30, 2017	Jun. 30, 2016
Finite-Lived Intangible Assets [Line Items]
Year Ending June 30, 2018	$ 2,190
Year Ending June 30, 2019	1,698
Year Ending June 30, 2020	1,180
Year Ending June 30, 2021	1,006
Year Ending June 30, 2022	932
Thereafter	3,100
Net Carrying Amount	$ 10,106	$ 3,733

Debt - Additional Information (Detail) - USD ($)	12 Months Ended
Debt - Additional Information (Detail) - USD ($)	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2015
Debt Instrument [Line Items]
Commercial paper	$ 9,100,000,000	$ 12,900,000,000
Credit facility, financial covenant	As of June 30, 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	77,100,000,000	40,600,000,000
Long-term debt fair value	80,300,000,000	44,000,000,000
Cash paid for interest	1,600,000,000	1,100,000,000	$ 620,000,000
Unamortized discount and debt issuance costs	715,000,000	$ 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	1.01%	0.43%
Commercial paper \| Lower Limit
Debt Instrument [Line Items]
Commercial paper, maturity term	25 days	1 day
Commercial paper \| Upper Limit
Debt Instrument [Line Items]
Commercial paper, maturity term	264 days	99 days

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

12 Months Ended

Jun. 30, 2017

Jun. 30, 2016

Notes 0.875 Percent Due November 15th 2017

$ 77,837

$ 40,949

Nov. 15, 2017

$ 600

0.875%

Notes 1.0 Percent Due May 1st 2018

1.084%

May 01, 2018

$ 450

1.00%

Notes 1.30 Percent Due November 3rd 2018

1.106%

Nov. 03, 2018

$ 1,750

1.30%

Notes 1.625 Percent Due December 6th 2018

1.396%

Dec. 06, 2018

$ 1,250

1.625%

Notes 4.2 Percent Due June 1st 2019

1.824%

Jun. 01, 2019

$ 1,000

4.20%

Notes 1.1 Percent Due August 8th 2019

4.379%

^[1]

Aug. 08, 2019

^[1]

$ 2,500

^[1]

1.10%

Notes 0.500 Percent Due November 1st 2019

^[1]

1.203%

^[2]

Nov. 01, 2019

^[2]

$ 18

^[2]

0.50%

Notes 1.850 Percent Due February 6th 2020

^[2]

0.50%

^[3]

Feb. 06, 2020

^[3]

$ 1,500

^[3]

1.85%

Notes 1.850 Percent Due February 12th 2020

^[3]

1.952%

Feb. 12, 2020

$ 1,500

1.85%

Notes 3.0 Percent Due October 1st 2020

1.935%

Oct. 01, 2020

$ 1,000

3.00%

Notes 2.0 Percent Due November 3rd 2020

3.137%

Nov. 03, 2020

$ 2,250

2.00%

Notes 4.0 Percent Due February 8th 2021

2.093%

Feb. 08, 2021

$ 500

4.00%

Notes 1.55 Percent Due August 8th 2021

4.082%

^[1]

Aug. 08, 2021

^[1]

$ 2,750

^[1]

1.55%

Notes 2.125 Percent Due December 6th 2021

^[1]

1.642%

^[4]

Dec. 06, 2021

^[4]

$ 1,996

$ 1,944

^[4]

2.125%

Notes 2.40 Percent Due February 6th 2022

^[4]

2.233%

^[3]

Feb. 06, 2022

^[3]

$ 1,750

^[3]

2.40%

Notes 2.375 Percent Due February 12th 2022

^[3]

2.52%

Feb. 12, 2022

$ 1,500

2.375%

Notes 2.65 Percent Due November 3rd 2022

2.466%

Nov. 03, 2022

$ 1,000

2.65%

Notes 2.125 Percent Due November 15th 2022

2.717%

Nov. 15, 2022

$ 750

2.125%

Notes 2.375 Percent Due May 1st 2023

2.239%

May 01, 2023

$ 1,000

2.375%

Notes 2.0 Percent Due August 8th 2023

2.465%

^[1]

Aug. 08, 2023

^[1]

$ 1,500

^[1]

2.00%

Notes 3.625 Percent Due December 15th 2023

^[1]

2.101%

Dec. 15, 2023

$ 1,500

3.625%

Notes 2.875 Percent Due February 6th 2024

3.726%

^[3]

Feb. 06, 2024

^[3]

$ 2,250

^[3]

2.875%

Notes 2.70 Percent Due February 12th 2025

^[3]

3.041%

Feb. 12, 2025

$ 2,250

2.70%

Notes 3.125 Percent Due November 3rd 2025

2.772%

Nov. 03, 2025

$ 3,000

3.125%

Notes 2.4 Percent Due August 8th 2026

3.176%

^[1]

Aug. 08, 2026

^[1]

$ 4,000

^[1]

2.40%

Notes 3.3 Percent Due February 6th 2027

^[1]

2.464%

^[3]

Feb. 06, 2027

^[3]

$ 4,000

^[3]

3.30%

Notes 3.125 Percent Due December 6th 2028

^[3]

3.383%

^[4]

Dec. 06, 2028

^[4]

$ 1,996

$ 1,944

^[4]

3.125%

Notes 2.625 Percent Due May 2nd 2033

^[4]

3.218%

^[4]

May 02, 2033

^[4]

$ 627

$ 611

^[4]

2.625%

Notes 3.50 Percent Due February 12th 2035

^[4]

2.69%

Feb. 12, 2035

$ 1,500

3.50%

Notes 4.2 Percent Due November 3rd 2035

3.604%

Nov. 03, 2035

$ 1,000

4.20%

Notes 3.45 Percent Due August 8th 2036

4.26%

^[1]

Aug. 08, 2036

^[1]

$ 2,250

^[1]

3.45%

Notes 4.1 Percent Due February 6th 2037

^[1]

3.51%

^[3]

Feb. 06, 2037

^[3]

$ 2,500

^[3]

4.10%

Notes 5.2 Percent Due June 1st 2039

^[3]

4.152%

Jun. 01, 2039

$ 750

5.20%

Notes 4.5 Percent Due October 1st 2040

5.24%

Oct. 01, 2040

$ 1,000

4.50%

Notes 5.3 Percent Due February 8th 2041

4.567%

Feb. 08, 2041

$ 1,000

5.30%

Notes 3.5 Percent Due November 15th 2042

5.361%

Nov. 15, 2042

$ 900

3.50%

Notes 3.750 Percent Due May 1st 2043

3.571%

May 01, 2043

$ 500

3.75%

Notes 4.875 Percent Due December 15th 2043

3.829%

Dec. 15, 2043

$ 500

4.875%

Notes 3.750 Percent Due February 12th 2045

4.918%

Feb. 12, 2045

$ 1,750

3.75%

Notes 4.45 Percent Due November 3rd 2045

3.80%

Nov. 03, 2045

$ 3,000

4.45%

Notes 3.7 Percent Due August 8th 2046

4.492%

^[1]

Aug. 08, 2046

^[1]

$ 4,500

^[1]

3.70%

Notes 4.25 Percent Due February 6th 2047

^[1]

3.743%

^[3]

Feb. 06, 2047

^[3]

$ 3,000

^[3]

4.25%

Notes 4.0 Percent Due February 12th 2055

^[3]

4.287%

Feb. 12, 2055

$ 2,250

4.00%

Notes 4.75 Percent Due November 3rd 2055

4.063%

Nov. 03, 2055

$ 1,000

4.75%

Notes 3.95 Percent Due August 8th 2056

4.782%

^[1]

Aug. 08, 2056

^[1]

$ 2,250

^[1]

3.95%

Notes 4.5 Percent Due February 6th 2057

^[1]

4.033%

^[3]

Feb. 06, 2057

^[3]

$ 2,000

^[3]

4.50%

Restructuring Cost and Reserve [Line Items]

^[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 9 – Business Combinations for further information.
[3]	In February 2017, we issued $17.0 billion of debt securities.
[4]	Euro-denominated debt securities.

Maturities of Long-term Debt (Detail) - USD ($) $ in Millions	Jun. 30, 2017	Jun. 30, 2016
Debt Instrument [Line Items]
Year Ending June 30, 2018	$ 1,050
Year Ending June 30, 2019	4,000
Year Ending June 30, 2020	5,518
Year Ending June 30, 2021	3,750
Year Ending June 30, 2022	7,996
Thereafter	55,523
Total	$ 77,837	$ 40,949

Provision for Income Taxes (Detail) - USD ($) $ in Millions	12 Months Ended
Provision for Income Taxes (Detail) - USD ($) $ in Millions	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2015
Current Taxes
U.S. federal	$ 2,739	$ 545	$ 3,661
U.S. state and local	30	136	364
Foreign	2,472	1,940	2,065
Current taxes	5,241	2,621	6,090
Deferred Taxes
Deferred taxes	(3,296)	332	224
Provision for income taxes	$ 1,945	$ 2,953	$ 6,314

Income Taxes - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Income Taxes [Line Items]
U.S. deferred tax benefit	$ (2,700)
Foreign deferred tax benefit	(617)
U.S. income (loss) before income taxes	453	$ (325)	$ 7,363
Foreign income (loss) before income taxes	22,696	20,076	11,144
Deferred income tax assets, loss carryforward	4,809	4,252
Deferred income tax assets, valuation allowance	(3,310)	(4,729)
Operating loss carryforwards	13,700
Temporary differences resulting from earnings for certain non-U.S. subsidiaries which are permanently reinvested outside the United States	142,000
Unrecognized tax liability on temporary differences resulting from earnings for certain non-U.S. subsidiaries which are permanently reinvested outside the United States	45,000
Income taxes paid, net of refunds	2,400	3,900	4,400
Tax contingencies and other tax liabilities	13,500	11,800
Unrecognized tax benefits	11,737	10,164	9,599	$ 8,714
Unrecognized tax benefits, if recognized would affect our effective tax rates	10,200	8,800	7,900
Accrued interest expense related to uncertain tax positions net of federal income tax benefits	2,300	1,900	1,700
Interest expense on unrecognized tax benefits	$ 399	163	$ 237
Restatement Adjustment
Income Taxes [Line Items]
Deferred income tax assets, loss carryforward		2,500
Deferred income tax assets, valuation allowance		$ (2,500)
Regional Operating Centers
Income Taxes [Line Items]
Foreign earnings, taxed at rates lower than U.S. rate as a percentage of foreign income before tax	64.00%	69.00%	73.00%
Foreign Country
Income Taxes [Line Items]
Operating loss carryforwards	$ 11,100
Windows 10 Licenses
Income Taxes [Line Items]
U.S. income (loss) before income taxes	6,400	$ 6,000
Foreign income (loss) before income taxes	$ 317	$ 588
Phone Business \| Impairment, integration, and restructuring expenses
Income Taxes [Line Items]
U.S. income (loss) before income taxes			$ (1,100)
Foreign income (loss) before income taxes			$ (8,900)

Income (Loss) Before Income Taxes (Detail) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2015
Schedule of Components of Income Before Income Tax Expense (Benefit) [Line Items]
U.S.	$ 453	$ (325)	$ 7,363
Foreign	22,696	20,076	11,144
Income before income taxes	$ 23,149	$ 19,751	$ 18,507

Difference Between Income Taxes Computed at Federal Statutory Rate and Provision for Income Taxes (Detail)	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2015
Reconciliation of Statutory Federal Tax Rate [Line Items]
Federal statutory rate	35.00%	35.00%	35.00%
Effect of:
Foreign earnings taxed at lower rates	(15.70%)	(19.40%)	(20.90%)
Phone business losses	(7.30%)	1.30%	19.10%
Excess tax benefits relating to stock-based compensation	(2.70%)	(2.00%)	(0.00%)
Domestic production activities deduction	(1.40%)	(0.60%)	(2.40%)
Interest, net	1.80%	1.20%	1.50%
Other reconciling items, net	(1.30%)	(0.50%)	1.80%
Effective rate	8.40%	15.00%	34.10%

Deferred Income Tax Assets and Liabilities (Detail) - USD ($) $ in Millions	Jun. 30, 2017	Jun. 30, 2016
Deferred Income Tax Assets
Stock-based compensation expense	$ 777	$ 809
Other expense items	1,550	1,609
Restructuring charges	66	284
Unearned revenue	1,889	494
Impaired investments	59	226
Loss carryforwards	4,809	4,252
Depreciation and amortization	53	115
Other revenue items	130	89
Deferred income tax assets	9,333	7,878
Less valuation allowance	(3,310)	(4,729)
Deferred income tax assets, net of valuation allowance	6,023	3,149
Deferred Income Tax Liabilities
Foreign earnings	(1,107)	(1,242)
Unrealized gain on investments and debt	(1,384)	(2,102)
Depreciation and amortization	(1,630)	(1,008)
Other	(21)	(54)
Deferred income tax liabilities	(4,142)	(4,406)
Net deferred income tax assets	1,881
Net deferred income tax liabilities		(1,257)
Other Long-term Assets
Deferred Income Tax Liabilities
Net deferred income tax assets	2,412	219
Long-term Deferred Income Tax Liabilities
Deferred Income Tax Liabilities
Net deferred income tax liabilities	$ (531)	$ (1,476)

Changes in Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2015
Income Tax Contingency [Line Items]
Balance, beginning of year	$ 10,164	$ 9,599	$ 8,714
Decreases related to settlements	(4)	(201)	(50)
Increases for tax positions related to the current year	1,277	1,086	1,091
Increases for tax positions related to prior years	397	115	94
Decreases for tax positions related to prior years	(49)	(317)	(144)
Decreases due to lapsed statutes of limitations	(48)	(118)	(106)
Balance, end of year	$ 11,737	$ 10,164	$ 9,599

Income Taxes - Additional Information Regarding Examinations (Detail)	3 Months Ended		12 Months Ended
	Sep. 30, 2015	Mar. 31, 2011	Jun. 30, 2017
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	3 Months Ended	12 Months Ended
	Jun. 30, 2016 USD ($)	Jun. 30, 2017 USD ($) Position	Jun. 30, 2016 USD ($) Position	Jun. 30, 2015 USD ($)
Restructuring Cost and Reserve [Line Items]
Restructuring charges		$ 306
Severance
Restructuring Cost and Reserve [Line Items]
Restructuring charges		$ 306
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]
Number of positions eliminated \| Position		4,700
Restructuring charges	$ 480		$ 501
Completion date		Jun. 30, 2017
2017 Restructuring
Restructuring Cost and Reserve [Line Items]
Completion date		Jun. 30, 2018
2017 Restructuring \| Severance
Restructuring Cost and Reserve [Line Items]
Restructuring charges		$ 306

Changes in Restructuring Liability (Detail)
$ in Millions

12 Months Ended

Jun. 30, 2017

USD ($)

Balance, as of June 30, 2016

$ 709

306

Cash paid

(468)

Balance, as of June 30, 2017

(115)

432

Severance

Restructuring Cost and Reserve [Line Items]

Balance, as of June 30, 2016

470

306

Cash paid

(367)

Balance, as of June 30, 2017

(36)

373

Restructuring Cost and Reserve [Line Items]

Balance, as of June 30, 2016

239

^[1]

^[1]

Cash paid

(101)

^[1]

Balance, as of June 30, 2017

(79)

^[1]

$ 59

^[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	Jun. 30, 2017	Jun. 30, 2016
Deferred Revenue Arrangement [Line Items]
Unearned revenue	$ 44,479	$ 33,909
Reportable Segments \| Productivity and Business Processes
Deferred Revenue Arrangement [Line Items]
Unearned revenue	14,291	12,497
Reportable Segments \| Intelligent Cloud
Deferred Revenue Arrangement [Line Items]
Unearned revenue	13,464	11,472
Reportable Segments \| More Personal Computing
Deferred Revenue Arrangement [Line Items]
Unearned revenue	3,420	3,334
Corporate and Other
Deferred Revenue Arrangement [Line Items]
Unearned revenue	$ 13,304	$ 6,606

Commitments - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2015
Capital Leases
Commitments [Line Items]
Additional purchase obligations for capital leases executed but not yet recorded	$ 3,200
Other Current Liabilities
Commitments [Line Items]
Current capital lease obligations	113	$ 25
Other Long-term Liabilities
Commitments [Line Items]
Long-term capital lease obligations	2,400	761
Buildings
Commitments [Line Items]
Rental expense for facilities operating leases	1,300	$ 1,000	$ 989
Building, Building Improvements and Leasehold Improvements
Commitments [Line Items]
Committed for construction of new buildings, building improvements and leasehold improvements	$ 1,100

Future Minimum Rental Commitments Under Non-cancellable Operating Leases (Detail) - Buildings $ in Millions	Jun. 30, 2017 USD ($)
Operating Leased Assets [Line Items]
Year Ending June 30, 2018	$ 1,292
Year Ending June 30, 2019	1,220
Year Ending June 30, 2020	1,115
Year Ending June 30, 2021	908
Year Ending June 30, 2022	749
Thereafter	2,588
Total	$ 7,872

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

Jun. 30, 2017

USD ($)

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

Year Ending June 30, 2018

$ 209

Year Ending June 30, 2019

217

Year Ending June 30, 2020

222

Year Ending June 30, 2021

227

Year Ending June 30, 2022

232

Thereafter

2,353

Total

$ 3,460

^[1]

[1]	Includes imputed interest of $922 million.

Contingencies - Additional Information (Detail) $ in Millions	Jun. 30, 2017 USD ($)
Loss Contingencies [Line Items]
Accrual for disclosed loss contingencies, current, ending balance	$ 352
Amount not accrued for estimated maximum losses for disclosed loss contingencies	$ 1,000

Shares of Common Stock Outstanding (Detail) - shares shares in Millions	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2015
Capital Unit [Line Items]
Balance, beginning of year	7,808	8,027	8,239
Issued	70	75	83
Repurchased	(170)	(294)	(295)
Balance, end of year	7,708	7,808	8,027

Stockholders' Equity - Additional Information (Detail) - USD ($)	Jun. 30, 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	$ 36,800,000,000

Share Repurchases (Detail) - USD ($) shares in Millions, $ in Millions	3 Months Ended												12 Months Ended
	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2015
Share Repurchases [Line Items]
Shares of common stock repurchased													170	294	295
Value of common stock repurchased													$ 10,283	$ 14,800	$ 13,209
Share Repurchase Program 2013
Share Repurchases [Line Items]
Shares of common stock repurchased			59	63	70	69	66	89	93	116	43	43
Value of common stock repurchased			$ 3,533	$ 3,550	$ 3,600	$ 3,600	$ 3,600	$ 4,000	$ 4,209	$ 5,000	$ 2,000	$ 2,000
Share Repurchase Program 2016
Share Repurchases [Line Items]
Shares of common stock repurchased	23	25
Value of common stock repurchased	$ 1,600	$ 1,600

Dividends Declared (Detail) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended								12 Months Ended
	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2015
Dividends [Line Items]
Declaration Date	Jun. 13, 2017	Mar. 14, 2017	Nov. 30, 2016	Sep. 20, 2016	Jun. 14, 2016	Mar. 15, 2016	Dec. 02, 2015	Sep. 15, 2015
Dividend Per Share	$ 0.39	$ 0.39	$ 0.39	$ 0.39	$ 0.36	$ 0.36	$ 0.36	$ 0.36	$ 1.56	$ 1.44	$ 1.24
Record Date	Aug. 17, 2017	May 18, 2017	Feb. 16, 2017	Nov. 17, 2016	Aug. 18, 2016	May 19, 2016	Feb. 18, 2016	Nov. 19, 2015
Total Amount	$ 3,006	$ 3,009	$ 3,012	$ 3,024	$ 2,800	$ 2,821	$ 2,842	$ 2,868
Payment Date	Sep. 14, 2017	Jun. 08, 2017	Mar. 09, 2017	Dec. 08, 2016	Sep. 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	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2015
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, beginning of period	$ 71,997	$ 80,083
Net current period other comprehensive income (loss)	(1,106)	(985)	$ (1,186)
Balance, end of period	72,394	71,997	80,083
Derivatives
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, beginning of period	352	590	31
Unrealized gains, net of tax effects	328	351	1,152
Tax expense included in provision for income taxes	9	36	15
Amounts reclassified from accumulated other comprehensive income	(546)	(589)	(593)
Net current period other comprehensive income (loss)	(218)	(238)	559
Balance, end of period	134	352	590
Derivatives \| Revenue
Accumulated Other Comprehensive Income (Loss) [Line Items]
Reclassification adjustments for gains	(555)	(625)	(608)
Investments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, beginning of period	2,941	3,169	3,531
Unrealized gains, net of tax effects	517	219	110
Tax expense included in provision for income taxes	880	241	256
Amounts reclassified from accumulated other comprehensive income	(1,633)	(447)	(472)
Net current period other comprehensive income (loss)	(1,116)	(228)	(362)
Balance, end of period	1,825	2,941	3,169
Investments \| Other income (expense), net
Accumulated Other Comprehensive Income (Loss) [Line Items]
Reclassification adjustments for gains	(2,513)	(688)	(728)
Translation adjustments and other
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, beginning of period	(1,756)	(1,237)	146
Net current period other comprehensive income (loss)	228	(519)	(1,383)
Balance, end of period	(1,528)	(1,756)	(1,237)
Accumulated other comprehensive income
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, beginning of period	1,537	2,522	3,708
Net current period other comprehensive income (loss)	(1,106)	(985)	(1,186)
Balance, end of period	$ 431	$ 1,537	$ 2,522

Summary of Changes in Accumulated Other Comprehensive Income by Component (Parenthetical) (Detail) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2015
Derivatives
Accumulated Other Comprehensive Income (Loss) [Line Items]
Unrealized gains (losses), tax effects	$ 4	$ 24	$ 35
Investments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Unrealized gains (losses), tax effects	267	120	59
Translation adjustments and other
Accumulated Other Comprehensive Income (Loss) [Line Items]
Net current period other comprehensive income (loss), tax effects	$ 9	$ (33)	$ 16

Employee Stock and Savings Plans - Additional Information (Detail) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions

6 Months Ended

12 Months Ended

18 Months Ended

Dec. 31, 2015

Jun. 30, 2017

Jun. 30, 2016

Jun. 30, 2015

Jun. 30, 2017

Company contribution amount for each dollar a participant contributes to the savings plan

50.00%

Matching contributions for all employee savings plans

$ 734

$ 549

$ 454

First 6% of Participant Contributions

Company contribution amount for each dollar a participant contributes to the savings plan

50.00%

Upper Limit

Percentage of employee's earnings the company may contribute to the savings plan

3.00%

Upper Limit | IRS Compensation Limit

Percentage of employee's earnings the company may contribute to the savings plan

3.00%

50.00%

Stock Awards

Shares authorized for future grant

127

Unrecognized compensation costs

$ 6,500

Unrecognized compensation costs are expected to be recognized over a weighted average period (years)

3 years

Weighted average grant-date fair value

$ 55.64

^[1]

$ 41.51

$ 42.36

Fair value of awards vested

$ 4,800

$ 3,900

$ 4,200

Stock Awards | Lower Limit

Stock Awards | Upper Limit

4 years

Restricted Stock Units | Executive Incentive Plan

5 years

Performance Stock Units | Executive Incentive Plan

4 years

Shares authorized for future grant

3 years

Employee Stock

129

Percentage of market value at which employees are able to purchase shares of common stock

90.00%

Maximum percentage of gross compensation at which employees may purchase shares

15.00%

[1]	Includes 2 million PSUs granted during fiscal year 2017. During both fiscal year 2016 and 2015 we granted 1 million PSUs.

Stock-Based Compensation Expense and Related Income Tax Benefits (Detail) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	$ 3,266	$ 2,668	$ 2,574
Income tax benefits related to stock-based compensation	$ 1,066	$ 882	$ 868

Assumptions Used in Estimating the Fair Value of Stock Award Grants (Detail) - $ / shares	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2015
Share based Compensation Arrangement by Share based Payment Award, Fair Value Assumptions, Method Used [Line Items]
Interest rates minimum	1.20%	1.10%	1.20%
Interest rates maximum	2.20%	1.80%	1.90%
Lower Limit
Share based Compensation Arrangement by Share based Payment Award, Fair Value Assumptions, Method Used [Line Items]
Dividends per share (quarterly amounts)	$ 0.36	$ 0.31	$ 0.28
Upper Limit
Share based Compensation Arrangement by Share based Payment Award, Fair Value Assumptions, Method Used [Line Items]
Dividends per share (quarterly amounts)	$ 0.39	$ 0.36	$ 0.31

Stock Plan Activity (Detail) - Stock Awards - $ / shares
shares in Millions

12 Months Ended

Jun. 30, 2017

Jun. 30, 2016

Jun. 30, 2015

Shares

Nonvested balance, beginning of year

194

Granted

^[1]

Assumed in acquisitions

^[2]

Vested

(80)

Forfeited

(20)

Nonvested balance, end of year

201

194

Weighted Average Grant-Date Fair Value

Nonvested balance, beginning of year

$ 36.92

Granted

55.64

^[1]

$ 41.51

$ 42.36

Assumed in acquisitions

^[2]

59.09

Vested

37.36

Forfeited

43.71

Nonvested balance, end of year

$ 46.32

$ 36.92

[1]	Includes 2 million PSUs granted during fiscal year 2017. During both fiscal year 2016 and 2015 we granted 1 million PSUs.
[2]	Substantially all awards assumed were related to LinkedIn. See Note 9 – Business Combinations for further information.

Employee Purchased Shares (Detail) - $ / shares shares in Millions	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2015
Employee Stock Purchase Plan [Line Items]
Shares purchased	13	15	16
Average price per share	$ 56.36	$ 44.83	$ 39.87

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

3 Months Ended

12 Months Ended

Jun. 30, 2017

^[1],[2]

Mar. 31, 2017

^[1],[2]

Dec. 31, 2016

^[1],[2]

Sep. 30, 2016

^[1],[2]

Jun. 30, 2016

^[3]

Mar. 31, 2016

^[3]

Dec. 31, 2015

^[3]

Sep. 30, 2015

^[3]

Jun. 30, 2017

Jun. 30, 2016

Jun. 30, 2015

Reportable Segments | Productivity and Business Processes

$ 23,317

$ 22,090

$ 24,090

$ 20,453

$ 20,614

$ 20,531

$ 23,796

$ 20,379

$ 89,950

^[1],[2]

$ 85,320

^[3]

$ 93,580

Reportable Segments | Intelligent Cloud

30,444

26,487

26,430

Reportable Segments | More Personal Computing

27,440

25,042

23,715

38,773

40,434

43,435

Corporate and Other

$ (6,707)

$ (6,643)

$ 0

[1]	On December 8, 2016, we acquired LinkedIn Corporation. LinkedIn has been included in our consolidated results of operations starting on the acquisition date.
[2]	Reflects the impact of the net revenue deferral from Windows 10 of $1.9 billion, $2.0 billion, $1.5 billion, and $1.4 billion, for the first, second, third, and fourth quarter of fiscal year 2017, respectively, and $6.7 billion for fiscal year 2017.
[3]	Reflects the impact of the net revenue deferral from Windows 10 of $1.3 billion, $1.7 billion, $1.6 billion, and $2.0 billion, for the first, second, third, and fourth quarter of fiscal year 2016, respectively, and $6.6 billion for fiscal year 2016.

Operating Income (Loss) by Segment (Detail) - USD ($)
$ in Millions

3 Months Ended

12 Months Ended

Jun. 30, 2017

^[1]

Mar. 31, 2017

^[1]

Dec. 31, 2016

^[1]

Sep. 30, 2016

^[1]

Jun. 30, 2016

Mar. 31, 2016

Dec. 31, 2015

Sep. 30, 2015

Jun. 30, 2017

Jun. 30, 2016

Jun. 30, 2015

Reportable Segments | Productivity and Business Processes

$ 5,330

$ 5,594

$ 6,177

$ 5,225

$ 3,080

$ 5,283

$ 6,026

$ 5,793

$ 22,326

^[1]

$ 20,182

$ 18,161

Reportable Segments | Intelligent Cloud

11,913

12,418

13,274

Reportable Segments | More Personal Computing

9,138

9,315

9,803

8,288

6,202

5,095

Corporate and Other

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

$ (7,013)

$ (7,753)

$ (10,011)

[1]	On December 8, 2016, we acquired LinkedIn Corporation. LinkedIn has been included in our consolidated results of operations starting on the acquisition date.

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

3 Months Ended

12 Months Ended

Jun. 30, 2017

^[1]

Mar. 31, 2017

^[1]

Dec. 31, 2016

^[1]

Sep. 30, 2016

^[1]

Jun. 30, 2016

Mar. 31, 2016

Dec. 31, 2015

Sep. 30, 2015

Jun. 30, 2017

Jun. 30, 2016

Jun. 30, 2015

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

$ 5,330

$ 5,594

$ 6,177

$ 5,225

$ 3,080

$ 5,283

$ 6,026

$ 5,793

$ 22,326

^[1]

$ 20,182

$ 18,161

Corporate and Other

Corporate and Other | Net revenue deferral from Windows 10

(7,013)

(7,753)

(10,011)

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

Corporate and Other | Impairment, integration, and restructuring expenses

(6,707)

(6,643)

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

$ (306)

$ (1,110)

$ (10,011)

[1]	On December 8, 2016, we acquired LinkedIn Corporation. LinkedIn has been included in our consolidated results of operations starting on the acquisition date.

Segment Information and Geographic Data - Additional Information (Detail)	12 Months Ended
	Jun. 30, 2017
Segment Reporting Information [Line Items]
Sales to an individual customer	No sales to an individual customer or country other than the United States accounted for more than 10% of fiscal year 2017, 2016, or 2015 revenue.

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

3 Months Ended

12 Months Ended

Jun. 30, 2017

^[1],[2]

Mar. 31, 2017

^[1],[2]

Dec. 31, 2016

^[1],[2]

Sep. 30, 2016

^[1],[2]

Jun. 30, 2016

^[3]

Mar. 31, 2016

^[3]

Dec. 31, 2015

^[3]

Sep. 30, 2015

^[3]

Jun. 30, 2017

Jun. 30, 2016

Jun. 30, 2015

Geographic Information [Line Items]

Revenues

$ 23,317

$ 22,090

$ 24,090

$ 20,453

$ 20,614

$ 20,531

$ 23,796

$ 20,379

$ 89,950

^[1],[2]

$ 85,320

^[3]

$ 93,580

United States

Geographic Information [Line Items]

Revenues

^[4]

45,248

40,578

42,941

Other Countries

Geographic Information [Line Items]

Revenues

$ 44,702

$ 44,742

$ 50,639

[1]	On December 8, 2016, we acquired LinkedIn Corporation. LinkedIn has been included in our consolidated results of operations starting on the acquisition date.
[2]	Reflects the impact of the net revenue deferral from Windows 10 of $1.9 billion, $2.0 billion, $1.5 billion, and $1.4 billion, for the first, second, third, and fourth quarter of fiscal year 2017, respectively, and $6.7 billion for fiscal year 2017.
[3]	Reflects the impact of the net revenue deferral from Windows 10 of $1.3 billion, $1.7 billion, $1.6 billion, and $2.0 billion, for the first, second, third, and fourth quarter of fiscal year 2016, respectively, and $6.6 billion for fiscal year 2016.
[4]	Includes billings to OEMs and certain multinational organizations because of the nature of these businesses and the impracticability of determining the geographic source of the revenue.

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

3 Months Ended

12 Months Ended

Jun. 30, 2017

^[1],[2]

Mar. 31, 2017

^[1],[2]

Dec. 31, 2016

^[1],[2]

Sep. 30, 2016

^[1],[2]

Jun. 30, 2016

^[3]

Mar. 31, 2016

^[3]

Dec. 31, 2015

^[3]

Sep. 30, 2015

^[3]

Jun. 30, 2017

Jun. 30, 2016

Jun. 30, 2015

$ 23,317

$ 22,090

$ 24,090

$ 20,453

$ 20,614

$ 20,531

$ 23,796

$ 20,379

$ 89,950

^[1],[2]

$ 85,320

^[3]

$ 93,580

Microsoft Office system

Server products and tools

25,389

23,588

23,538

21,758

19,177

18,612

Xbox

Windows PC operating system

9,256

9,395

9,121

8,625

^[4]

8,104

^[4]

14,826

Advertising

Consulting and product support services

6,971

6,098

4,557

5,588

5,641

5,090

Devices

4,557

7,466

11,602

Other products and services

2,268

^[5]

$ 5,538

$ 5,851

$ 6,234

[1]	On December 8, 2016, we acquired LinkedIn Corporation. LinkedIn has been included in our consolidated results of operations starting on the acquisition date.
[2]	Reflects the impact of the net revenue deferral from Windows 10 of $1.9 billion, $2.0 billion, $1.5 billion, and $1.4 billion, for the first, second, third, and fourth quarter of fiscal year 2017, respectively, and $6.7 billion for fiscal year 2017.
[3]	Reflects the impact of the net revenue deferral from Windows 10 of $1.3 billion, $1.7 billion, $1.6 billion, and $2.0 billion, for the first, second, third, and fourth quarter of fiscal year 2016, respectively, and $6.6 billion for fiscal year 2016.
[4]	Includes the net revenue deferral from Windows 10.
[5]	Includes advertising revenue.

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

3 Months Ended

12 Months Ended

Jun. 30, 2017

^[1],[2]

Mar. 31, 2017

^[1],[2]

Dec. 31, 2016

^[1],[2]

Sep. 30, 2016

^[1],[2]

Jun. 30, 2016

^[3]

Mar. 31, 2016

^[3]

Dec. 31, 2015

^[3]

Sep. 30, 2015

^[3]

Jun. 30, 2017

Jun. 30, 2016

Jun. 30, 2015

$ 23,317

$ 22,090

$ 24,090

$ 20,453

$ 20,614

$ 20,531

$ 23,796

$ 20,379

$ 89,950

^[1],[2]

$ 85,320

^[3]

$ 93,580

Commercial Cloud

$ 14,900

$ 9,500

$ 5,800

[1]	On December 8, 2016, we acquired LinkedIn Corporation. LinkedIn has been included in our consolidated results of operations starting on the acquisition date.
[2]	Reflects the impact of the net revenue deferral from Windows 10 of $1.9 billion, $2.0 billion, $1.5 billion, and $1.4 billion, for the first, second, third, and fourth quarter of fiscal year 2017, respectively, and $6.7 billion for fiscal year 2017.
[3]	Reflects the impact of the net revenue deferral from Windows 10 of $1.3 billion, $1.7 billion, $1.6 billion, and $2.0 billion, for the first, second, third, and fourth quarter of fiscal year 2016, respectively, and $6.6 billion for fiscal year 2016.

Long-Lived Assets, Excluding Financial Instruments and Tax Assets, Classified by Location of Controlling Statutory Company (Detail) - USD ($) $ in Millions	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2015
Certain Long-Lived Assets by Geography [Line Items]
Long-lived assets	$ 68,962	$ 39,961	$ 36,505
United States
Certain Long-Lived Assets by Geography [Line Items]
Long-lived assets	39,118	22,819	19,562
Ireland
Certain Long-Lived Assets by Geography [Line Items]
Long-lived assets	12,876	2,078	1,595
Luxembourg
Certain Long-Lived Assets by Geography [Line Items]
Long-lived assets	6,845	6,854	6,879
Other Countries
Certain Long-Lived Assets by Geography [Line Items]
Long-lived assets	$ 10,123	$ 8,210	$ 8,469

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

3 Months Ended

12 Months Ended

Jun. 30, 2017

^[1]

Mar. 31, 2017

^[1]

Dec. 31, 2016

^[1]

Sep. 30, 2016

^[1]

Jun. 30, 2016

Mar. 31, 2016

Dec. 31, 2015

Sep. 30, 2015

Jun. 30, 2017

^[1]

Jun. 30, 2016

Jun. 30, 2015

$ 23,317

^[2]

$ 22,090

^[2]

$ 24,090

^[2]

$ 20,453

^[2]

$ 20,614

^[3]

$ 20,531

^[3]

$ 23,796

^[3]

$ 20,379

^[3]

$ 89,950

^[2]

$ 85,320

^[3]

$ 93,580

Gross margin

14,861

14,030

14,189

12,609

12,635

12,809

13,924

13,172

55,689

52,540

60,542

Operating income

5,330

5,594

6,177

5,225

3,080

5,283

6,026

5,793

22,326

20,182

18,161

Diluted earnings per share

$ 6,513

^[4]

$ 4,801

$ 5,200

$ 4,690

$ 3,122

^[5]

$ 3,756

$ 5,018

$ 4,902

$ 21,204

^[4]

$ 16,798

^[5]

$ 12,193

Basic earnings per share

$ 0.84

$ 0.62

$ 0.67

$ 0.60

$ 0.40

$ 0.48

$ 0.63

$ 0.61

$ 2.74

$ 2.12

$ 1.49

$ 0.83

^[4]

$ 0.61

$ 0.66

$ 0.60

$ 0.39

^[5]

$ 0.47

$ 0.62

$ 0.61

$ 2.71

^[4]

$ 2.10

^[5]

$ 1.48

[1]	On December 8, 2016, we acquired LinkedIn Corporation. LinkedIn has been included in our consolidated results of operations starting on the acquisition date.
[2]	Reflects the impact of the net revenue deferral from Windows 10 of $1.9 billion, $2.0 billion, $1.5 billion, and $1.4 billion, for the first, second, third, and fourth quarter of fiscal year 2017, respectively, and $6.7 billion for fiscal year 2017.
[3]	Reflects the impact of the net revenue deferral from Windows 10 of $1.3 billion, $1.7 billion, $1.6 billion, and $2.0 billion, for the first, second, third, and fourth quarter of fiscal year 2016, respectively, and $6.6 billion for fiscal year 2016.
[4]	Includes $306 million of employee severance expenses primarily related to our sales and marketing restructuring plan, which decreased operating income, net income, and diluted EPS by $306 million, $243 million, and $0.03, respectively.
[5]	Includes $630 million of asset impairment charges related to our phone business, and $480 million of restructuring charges associated with our 2016 restructuring plans, which together decreased operating income, net income, and diluted EPS by $1.1 billion, $895 million, and $0.11, respectively.

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

3 Months Ended

12 Months Ended

Jun. 30, 2017

Mar. 31, 2017

Dec. 31, 2016

Sep. 30, 2016

Jun. 30, 2016

Mar. 31, 2016

Dec. 31, 2015

Sep. 30, 2015

Jun. 30, 2017

Jun. 30, 2016

Jun. 30, 2015

$ 23,317

^[1],[2]

$ 22,090

^[1],[2]

$ 24,090

^[1],[2]

$ 20,453

^[1],[2]

$ 20,614

^[3]

$ 20,531

^[3]

$ 23,796

^[3]

$ 20,379

^[3]

$ 89,950

^[1],[2]

$ 85,320

^[3]

$ 93,580

Decrease in operating income due to impairment, integration and restructuring

306

306

1,100

Decrease in net income due to impairment, integration and restructuring

$ 243

$ 895

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

$ 0.03

$ 0.11

Asset impairment charges

630

$ 7,498

Phone Business

Asset impairment charges

$ 630

Severance

Sales and Marketing Restructuring Plan | Severance

306

$ 306

2016 Restructuring Plans

480

501

Windows 10 Licenses