General and administrative

$ 110,360

$ 96,571

^[1]

$ 91,154

Cost of revenue

38,353

34,261

32,780

Gross margin

72,007

62,310

^[1]

58,374

Research and development

14,726

13,037

11,988

Sales and marketing

17,469

15,461

14,635

4,754

4,481

4,563

Impairment and restructuring

306

1,110

Operating income

35,058

29,025

^[1],[2]

26,078

Other income (expense), net

1,416

876

(439)

Income before income taxes

36,474

29,901

25,639

19,903

4,412

5,100

Weighted average shares outstanding:

$ 16,571

^[3]

$ 25,489

^[1],[2]

$ 20,539

Earnings per share:

Basic

$ 2.15

$ 3.29

^[1]

$ 2.59

Diluted

$ 2.13

^[4]

$ 3.25

^[1],[2]

$ 2.56

Basic

7,700

7,746

7,925

Diluted

7,794

7,832

8,013

Cash dividends declared per common share

$ 1.68

$ 1.56

$ 1.44

Product

$ 64,497

$ 63,811

$ 67,336

Cost of revenue

15,420

15,175

17,880

Service and Other

Statement Of Income And Comprehensive Income [Abstract]

45,863

32,760

23,818

Cost of revenue

$ 22,933

$ 19,086

$ 14,900

[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]	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 $0.04, respectively.
[3]	Reflects the net charge (benefit) related to the TCJA of $13.8 billion for the second quarter, $(104) million for the fourth quarter, and $13.7 billion for fiscal year 2018.
[4]	Reflects the net charge (benefit) related to the TCJA, which decreased (increased) diluted EPS $1.78 for the second quarter, $(0.01) for the fourth quarter, and $1.75 for fiscal year 2018.

COMPREHENSIVE INCOME STATEMENTS - USD ($)
$ in Millions

12 Months Ended

Jun. 30, 2018

Jun. 30, 2017

Jun. 30, 2016

Other comprehensive income (loss), net of tax:

$ 16,571

^[1]

$ 25,489

^[2],[3]

$ 20,539

Net change related to derivatives

(218)

(238)

Net change related to investments

(2,717)

(1,116)

(228)

Translation adjustments and other

(178)

167

(262)

(2,856)

(1,167)

(728)

Comprehensive income

$ 13,715

$ 24,322

$ 19,811

[1]	Reflects the net charge (benefit) related to the TCJA of $13.8 billion for the second quarter, $(104) million for the fourth quarter, and $13.7 billion for fiscal year 2018.
[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 $0.04, 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.

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

BALANCE SHEETS - USD ($) $ in Millions	Jun. 30, 2018	Jun. 30, 2017
Current assets:
Cash and cash equivalents	$ 11,946	$ 7,663
Short-term investments	121,822	125,318
Total cash, cash equivalents, and short-term investments	133,768	132,981
Accounts receivable, net of allowance for doubtful accounts of $377 and $345	26,481	22,431
Inventories	2,662	2,181
Other	6,751	5,103
Total current assets	169,662	162,696
Property and equipment, net of accumulated depreciation of $29,223 and $24,179	29,460	23,734
Operating lease right-of-use assets	6,686	6,555
Equity and other investments	1,862	6,023
Goodwill	35,683	35,122
Intangible assets, net	8,053	10,106
Other long-term assets	7,442	6,076
Total assets	258,848	250,312
Current liabilities:
Accounts payable	8,617	7,390
Short-term debt	0	9,072
Current portion of long-term debt	3,998	1,049
Accrued compensation	6,103	5,819
Short-term income taxes	2,121	718
Short-term unearned revenue	28,905	24,013
Other	8,744	7,684
Total current liabilities	58,488	55,745
Long-term debt	72,242	76,073
Long-term income taxes	30,265	13,485
Long-term unearned revenue	3,815	2,643
Deferred income taxes	541	5,734
Operating lease liabilities	5,568	5,372
Other long-term liabilities	5,211	3,549
Total liabilities	176,130	162,601
Commitments and contingencies
Stockholders’ equity:
Common stock and paid-in capital – shares authorized 24,000; outstanding 7,677 and 7,708	71,223	69,315
Retained earnings	13,682	17,769
Accumulated other comprehensive income (loss)	(2,187)	627
Total stockholders’ equity	82,718	87,711
Total liabilities and stockholders' equity	$ 258,848	$ 250,312

BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions	Jun. 30, 2018	Jun. 30, 2017
Statement Of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 377	$ 345
Property and equipment, accumulated depreciation	$ 29,223	$ 24,179
Common stock, shares authorized	24,000,000,000	24,000,000,000
Common stock, outstanding	7,677,000,000	7,708,000,000

CASH FLOWS STATEMENTS - USD ($)
$ in Millions

12 Months Ended

Jun. 30, 2018

Jun. 30, 2017

Jun. 30, 2016

Operations

Adjustments to reconcile net income to net cash from operations:

$ 16,571

^[1]

$ 25,489

^[2],[3]

$ 20,539

Asset impairments

630

Depreciation, amortization, and other

10,261

8,778

6,622

Net recognized gains on investments and derivatives

3,940

3,266

2,668

(2,212)

(2,073)

(223)

Changes in operating assets and liabilities:

(5,143)

(829)

2,479

Accounts receivable

(3,862)

(1,216)

562

Inventories

(465)

600

Other current assets

(952)

1,028

(1,212)

Other long-term assets

(285)

(917)

(1,110)

Accounts payable

1,148

Other current liabilities

5,922

3,820

2,565

Income taxes

18,183

1,792

(298)

798

356

(179)

Other long-term liabilities

(20)

(118)

(406)

Net cash from operations

43,884

39,507

33,325

Financing

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

(7,324)

(4,963)

7,195

Proceeds from issuance of debt

7,183

44,344

13,884

Repayments of debt

(10,060)

(7,922)

(2,796)

1,002

772

668

Common stock cash dividends paid

(10,721)

(11,788)

(15,969)

(12,699)

(11,845)

(11,006)

Net cash from (used in) financing

(971)

(190)

(369)

(33,590)

8,408

(8,393)

Investing

Additions to property and equipment

(11,632)

(8,129)

(8,343)

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

(888)

(25,944)

(1,393)

Purchases of investments

(137,380)

(176,905)

(129,758)

Maturities of investments

26,360

28,044

22,054

Sales of investments

117,577

136,350

93,287

Securities lending payable

(98)

(197)

203

Net cash used in investing

(6,061)

(46,781)

(23,950)

Effect of foreign exchange rates on cash and cash equivalents

(67)

Net change in cash and cash equivalents

4,283

1,153

915

Cash and cash equivalents, beginning of period

7,663

6,510

5,595

Cash and cash equivalents, end of period

$ 11,946

$ 7,663

$ 6,510

[1]	Reflects the net charge (benefit) related to the TCJA of $13.8 billion for the second quarter, $(104) million for the fourth quarter, and $13.7 billion for fiscal year 2018.
[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 $0.04, 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.

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

Total

Common stock and paid-in capital

Retained earnings

Accumulated other comprehensive income (loss)

Balance, beginning of period at Jun. 30, 2015

$ 68,465

$ 16,191

$ 2,522

668

$ 20,539

20,539

Common stock cash dividends

(728)

(11,329)

Cumulative effect of accounting change

(14,800)

(3,689)

(12,283)

2,668

Balance, end of period at Jun. 30, 2016

83,090

68,178

13,118

1,794

772

25,489

^[1],[2]

25,489

Common stock cash dividends

(1,167)

(12,040)

Cumulative effect of accounting change

(10,283)

(2,987)

(8,798)

3,266

Balance, end of period at Jun. 30, 2017

87,711

69,315

17,769

627

1,002

16,571

^[3]

16,571

Common stock cash dividends

(2,856)

(12,917)

Cumulative effect of accounting change

(8,600)

(3,033)

(7,699)

(42)

3,940

Balance, end of period at Jun. 30, 2018

(1)

$ 82,718

$ 71,223

$ 13,682

$ (2,187)

[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 $0.04, 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]	Reflects the net charge (benefit) related to the TCJA of $13.8 billion for the second quarter, $(104) million for the fourth quarter, and $13.7 billion for fiscal year 2018.

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

Other Income And Expenses [Abstract]

ACCOUNTING POLICIES

12 Months Ended

Jun. 30, 2018

Accounting Policies [Abstract]

ACCOUNTING POLICIES

NOTE 1 — ACCOUNTING POLICIES

Accounting Principles

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

We have recast certain prior period income tax liabilities as discussed in the Recent Tax Legislation section below. We have also recast prior period securities lending payables to other current liabilities in our consolidated balance sheets to conform to the current period presentation. These items had no impact in our consolidated income statements or net cash from or used in operating, financing, or investing in our consolidated cash flows statements.

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 for 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 for 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 and assumptions include: for revenue recognition, determining the nature and timing of satisfaction of performance obligations, and determining the standalone selling price (“SSP”) of performance obligations, variable consideration, and other obligations such as product returns and refunds; 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; the market value of, and demand for, our inventory; stock-based compensation forfeiture rates; when technological feasibility is achieved for our products; the potential outcome of future tax consequences of events that have been recognized in our consolidated financial statements or tax returns; and determining when investment impairments are other-than-temporary. Actual results and outcomes may differ from management’s estimates and assumptions.

Foreign Currencies

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

Revenue

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; and hardware such as PCs, tablets, gaming and entertainment consoles, other intelligent devices, and related accessories.

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 upon transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services. We enter into contracts that can include various combinations of products and services, which are generally capable of being distinct and accounted for as separate performance obligations. Revenue is recognized net of allowances for returns and any taxes collected from customers, which are subsequently remitted to governmental authorities.

Nature of Products and Services

Licenses for on-premises software provide the customer with a right to use the software as it exists when made available to the customer. Customers may purchase perpetual licenses or subscribe to licenses, which provide customers with the same functionality and differ mainly in the duration over which the customer benefits from the software. Revenue from distinct on-premises licenses is recognized upfront at the point in time when the software is made available to the customer. In cases where we allocate revenue to software updates, primarily because the updates are provided at no additional charge, revenue is recognized as the updates are provided, which is generally ratably over the estimated life of the related device or license.

Certain volume licensing programs, including Enterprise Agreements, include on-premises licenses combined with Software Assurance (“SA”). SA conveys rights to new software and upgrades released over the contract period and provides support, tools, and training to help customers deploy and use products more efficiently. On-premises licenses are considered distinct performance obligations when sold with SA. Revenue allocated to SA is generally recognized ratably over the contract period as customers simultaneously consume and receive benefits, given that SA comprises distinct performance obligations that are satisfied over time.

Cloud services, which allow customers to use hosted software over the contract period without taking possession of the software, are provided on either a subscription or consumption basis. Revenue related to cloud services provided on a subscription basis is recognized ratably over the contract period. Revenue related to cloud services provided on a consumption basis, such as the amount of storage used in a period, is recognized based on the customer utilization of such resources. When cloud services require a significant level of integration and interdependency with software and the individual components are not considered distinct, all revenue is recognized over the period in which the cloud services are provided.

Revenue from search advertising is recognized when the advertisement appears in the search results or when the action necessary to earn the revenue has been completed. Revenue from consulting services is recognized as services are provided.

Our hardware is generally highly dependent on, and interrelated with, the underlying operating system and cannot function without the operating system. In these cases, the hardware and software license are accounted for as a single performance obligation and revenue is recognized at the point in time when ownership is transferred to resellers or directly to end customers through retail stores and online marketplaces.

Refer to Note 21 – Segment Information and Geographic Data for further information, including revenue by significant product and service offering.

Significant Judgments

Our contracts with customers often include promises to transfer multiple products and services to a customer. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. When a cloud-based service includes both on-premises software licenses and cloud services, judgment is required to determine whether the software license is considered distinct and accounted for separately, or not distinct and accounted for together with the cloud service and recognized over time. Certain cloud services, primarily Office 365, depend on a significant level of integration, interdependency, and interrelation between the desktop applications and cloud services, and are accounted for together as one performance obligation. Revenue from Office 365 is recognized ratably over the period in which the cloud services are provided.

Judgment is required to determine the SSP for each distinct performance obligation. We use a single amount to estimate SSP for items that are not sold separately, including on-premises licenses sold with SA or software updates provided at no additional charge. We use a range of amounts to estimate SSP when we sell each of the products and services separately and need to determine whether there is a discount to be allocated based on the relative SSP of the various products and services.

In instances where SSP is not directly observable, such as when we do not sell the product or service separately, we determine the SSP using information that may include market conditions and other observable inputs. We typically have more than one SSP for individual products and services due to the stratification of those products and services by customers and circumstances. In these instances, we may use information such as the size of the customer and geographic region in determining the SSP.

Due to the various benefits from and the nature of our SA program, judgment is required to assess the pattern of delivery, including the exercise pattern of certain benefits across our portfolio of customers.

Our products are generally sold with a right of return, we may provide other credits or incentives, and in certain instances we estimate customer usage of our products and services, which are accounted for as variable consideration when determining the amount of revenue to recognize. Returns and credits are estimated at contract inception and updated at the end of each reporting period if additional information becomes available. Changes to our estimated variable consideration were not material for the periods presented.

Contract Balances

Timing of revenue recognition may differ from the timing of invoicing to customers. We record a receivable when revenue is recognized prior to invoicing, or unearned revenue when revenue is recognized subsequent to invoicing. For multi-year agreements, we generally invoice customers annually at the beginning of each annual coverage period. We record a receivable related to revenue recognized for multi-year on-premises licenses as we have an unconditional right to invoice and receive payment in the future related to those licenses.

The opening balance of current and long-term accounts receivable, net of allowance for doubtful accounts, was $22.3 billion as of July 1, 2016.

As of June 30, 2018 and 2017, long-term accounts receivable, net of allowance for doubtful accounts, were $1.8 billion and $1.7 billion, respectively, and are included in other long-term assets in our consolidated balance sheets.

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,		2018			2017			2016

Balance, beginning of period	$	361		$	409		$	289
Charged to costs and other		134			58			175
Write-offs		(98	)		(106	)		(55	)


Balance, end of period	$	397		$	361		$	409

Allowance for doubtful accounts included in our consolidated balance sheets:



June 30,		2018		2017		2016

Accounts receivable, net of allowance for doubtful accounts	$	377	$	345	$	392
Other long-term assets		20		16		17


Total	$	397	$	361	$	409

Unearned revenue comprises mainly unearned revenue related to volume licensing programs, which may include SA and cloud services. Unearned revenue is generally invoiced annually at the beginning of each contract period for multi-year agreements and recognized ratably over the coverage period. Unearned revenue also includes payments for consulting services to be performed in the future; LinkedIn subscriptions; Office 365 subscriptions; Xbox Live subscriptions; Windows 10 post-delivery support; Dynamics business solutions; Skype prepaid credits and subscriptions; and other offerings for which we have been paid in advance and earn the revenue when we transfer control of the product or service.

Refer to Note 15 – Unearned Revenue for further information, including unearned revenue by segment and changes in unearned revenue during the period.

Payment terms and conditions vary by contract type, although terms generally include a requirement of payment within 30 to 60 days. In instances where the timing of revenue recognition differs from the timing of invoicing, we have determined our contracts generally do not include a significant financing component. The primary purpose of our invoicing terms is to provide customers with simplified and predictable ways of purchasing our products and services, not to receive financing from our customers or to provide customers with financing. Examples include invoicing at the beginning of a subscription term with revenue recognized ratably over the contract period, and multi-year on-premises licenses that are invoiced annually with revenue recognized upfront.

Assets Recognized from Costs to Obtain a Contract with a Customer

We recognize an asset for the incremental costs of obtaining a contract with a customer if we expect the benefit of those costs to be longer than one year. We have determined that certain sales incentive programs meet the requirements to be capitalized. Total capitalized costs to obtain a contract were immaterial during the periods presented and are included in other current and long-term assets in our consolidated balance sheets.

We apply a practical expedient to expense costs as incurred for costs to obtain a contract with a customer when the amortization period would have been one year or less. These costs include our internal sales force compensation program and certain partner sales incentive programs as we have determined annual compensation is commensurate with annual sales activities.

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 original equipment manufacturers (“OEM”), 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 $1.6 billion, $1.5 billion, and $1.6 billion in fiscal years 2018, 2017, and 2016, 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, 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 in 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, common and preferred stock, and 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. Our Level 2 non-derivative investments consist primarily of corporate notes and bonds, foreign government bonds, mortgage- and asset-backed securities, commercial paper, certificates of deposit, and U.S. agency securities. 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 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 in 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.

Inventories

Inventories are stated at average cost, subject to the lower of cost or net realizable value. Cost includes materials, labor, and manufacturing overhead related to the purchase and production of inventories. Net realizable value is the estimated selling price less estimated costs of completion, disposal, and transportation. 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.

Leases

We determine if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, other current liabilities, and operating lease liabilities in our consolidated balance sheets. Finance leases are included in property and equipment, other current liabilities, and other long-term liabilities in our consolidated balance sheets.

ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. We use the implicit rate when readily determinable. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term.

We have lease agreements with lease and non-lease components, which are generally accounted for separately. For certain equipment leases, such as vehicles, we account for the lease and non-lease components as a single lease component. Additionally, for certain equipment leases, we apply a portfolio approach to effectively account for the operating lease ROU assets and liabilities.

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 20 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 Tax Legislation

On December 22, 2017, the Tax Cuts and Jobs Act (“TCJA”) was enacted into law, which significantly changes existing U.S. tax law and includes numerous provisions that affect our business. Refer to Note 13 – Income Taxes for further discussion.

As a result of the TCJA, we have recast certain prior period income tax liabilities in our consolidated balance sheets to conform to the current period presentation. Previously reported balances were impacted as follows:

(In millions)	As Previously Reported		As Adjusted


Balance Sheets				June 30, 2017

Long-term income taxes	$	0	$	13,485
Other long-term liabilities		17,034		3,549

These adjustments had no impact in our consolidated income statements or net cash from or used in operating, financing, or investing in our consolidated cash flows statements.

Recent Accounting Guidance

Recently Adopted Accounting Guidance

Comprehensive Income – Reclassification of Certain Tax Effects

In February 2018, the Financial Accounting Standards Board (“FASB”) issued new guidance to allow a reclassification from accumulated other comprehensive income (“AOCI”) to retained earnings for stranded tax effects resulting from the TCJA. In the second quarter of fiscal year 2018, we remeasured our deferred taxes related to unrealized gains on our investment balances using the reduced tax rate. As required by GAAP, we recognized the net tax benefit in the provision for income taxes in our consolidated income statements, even though the deferred taxes were initially recognized in AOCI, which resulted in stranded tax effects. We elected to early adopt the standard effective April 1, 2018 and reclassified a $42 million net tax benefit from AOCI to retained earnings in our consolidated balance sheets. Adoption of the standard had no impact to our consolidated income statements or cash flows statements.

Leases

In February 2016, the FASB issued a new standard related to leases to increase transparency and comparability among organizations by requiring the recognition of 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 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 are also 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.

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 and implemented internal controls and key system functionality to enable the preparation of financial information on adoption.

The standard had a material impact in our consolidated balance sheets, but did not have an impact in our consolidated income statements. The most significant impact was the recognition of ROU assets and lease liabilities for operating leases, while our accounting for finance leases remained substantially unchanged. Adoption of the standard required us to restate certain previously reported results, including the recognition of additional ROU assets and lease liabilities for operating leases. Refer to Impacts to Previously Reported Results below for the impact of adoption of the standard in our consolidated financial statements.

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.

We elected to early adopt the standard effective July 1, 2017, using the full retrospective method, which required us to restate each prior reporting period presented. We implemented internal controls and key system functionality to enable the preparation of financial information on adoption.

The most significant impact of the standard relates to our accounting for software license revenue. Specifically, for Windows 10, we 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 SA, we 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 depends 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 remains substantially unchanged.

Adoption of the standard using the full retrospective method required us to restate certain previously reported results, including the recognition of additional revenue and an increase in the provision for income taxes, primarily due to the net change in Windows 10 revenue recognition. In addition, adoption of the standard resulted in an increase in accounts receivable and other current and long-term assets, driven by unbilled receivables from upfront recognition of revenue for certain multi-year commercial software subscriptions that include both distinct software licenses and SA; a reduction of unearned revenue, 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, driven by the upfront recognition of revenue. Refer to Impacts to Previously Reported Results below for the impact of adoption of the standard in our consolidated financial statements.

Impacts to Previously Reported Results

Adoption of the standards related to revenue recognition and leases impacted our previously reported results as follows:

(In millions, except per share amounts)	As Previously Reported		New Revenue Standard Adjustment		As Restated


Income Statements

Year Ended June 30, 2017

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

Year Ended June 30, 2016

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

(In millions)	As Previously Reported		New Revenue Standard Adjustment			New Lease Standard Adjustment		As Restated


Balance Sheets

June 30, 2017

Accounts receivable, net of allowance for doubtful accounts	$	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

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

Recent Accounting Guidance Not Yet Adopted

Financial Instruments – Targeted Improvements to Accounting for Hedging Activities

In August 2017, the FASB issued new guidance related to accounting for hedging activities. This guidance expands strategies that qualify for hedge accounting, changes how many hedging relationships are presented in the financial statements, and simplifies the application of hedge accounting in certain situations. The standard will be effective for us beginning July 1, 2019, with early adoption permitted for any interim or annual period before the effective date. 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 in our consolidated financial statements, including accounting policies, processes, and systems.

Income Taxes – Intra-Entity Asset Transfers

In October 2016, the 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. We currently expect a net cumulative-effect adjustment of approximately $550 million, which will reverse the deferral of income tax consequences from past intra-entity transfers involving assets other than inventory and new deferred tax assets for amounts not recognized under current GAAP, partially offset by a U.S. deferred tax liability related to global intangible low-taxed income (“GILTI”). Adoption of the standard is expected to result in an increase in long-term deferred tax assets of $2.8 billion, an increase in long-term deferred tax liabilities of $2.1 billion, and a reduction to other current assets of $150 million. As a result of the TCJA, we are continuing to evaluate the impact of this standard in our consolidated financial statements, including accounting policies, processes, and systems.

Financial Instruments – Credit Losses

In June 2016, the FASB issued a new standard to replace the incurred loss impairment methodology under current 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 to align our credit loss methodology with the new standard. We are currently evaluating the impact of this standard in our consolidated financial statements, including accounting policies, processes, and systems.

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. Under the standard, equity investments that do not have a readily determinable fair value are eligible for the measurement alternative. Using the measurement alternative, investments without readily determinable fair values will be valued at cost, with adjustments for changes in price or impairments reflected through net income.

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 from AOCI to retained earnings as of the effective date. A cumulative-effect adjustment will capture any previously held unrealized gains and losses held in AOCI related to our equity investments carried at fair value as well as the impact of recording the fair value of certain equity investments carried at cost. In preparation for adoption of this standard, we have implemented internal controls to align with the new standard and have concluded that we will elect the measurement alternative for equity investments that do not have readily determinable fair values.

The impact in our consolidated balance sheets upon adoption will not be material. Adoption of the standard will have no impact to cash from or used in operating, financing or investing in our consolidated cash flows statements.

EARNINGS PER SHARE

12 Months Ended

Jun. 30, 2018

Earnings Per Share [Abstract]

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,	2018		2017		2016

Net income available for common shareholders (A)	$	16,571	$	25,489	$	20,539

Weighted average outstanding shares of common stock (B)		7,700		7,746		7,925
Dilutive effect of stock-based awards		94		86		88


Common stock and common stock equivalents (C)		7,794		7,832		8,013


Earnings Per Share

Basic (A/B)	$	2.15	$	3.29	$	2.59
Diluted (A/C)	$	2.13	$	3.25	$	2.56

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, 2018

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,	2018			2017			2016

Dividends and interest income	$	2,214		$	1,387		$	903
Interest expense		(2,733	)		(2,222	)		(1,243	)
Net recognized gains on investments		2,399			2,583			668
Net losses on derivatives		(187	)		(510	)		(443	)
Net losses on foreign currency remeasurements		(218	)		(111	)		(129	)
Other, net		(59	)		(251	)		(195	)


Total	$	1,416		$	876		$	(439	)

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

(In millions)


Year Ended June 30,	2018			2017			2016

Other-than-temporary impairments of investments	$	(47	)	$	(55	)	$	(322	)
Realized gains from sales of available-for-sale securities		3,478			3,064			1,376
Realized losses from sales of available-for-sale securities		(1,032	)		(426	)		(386	)


Total	$	2,399		$	2,583		$	668

INVESTMENTS

12 Months Ended

Jun. 30, 2018

Investments Debt And Equity Securities [Abstract]

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, 2018

Cash	$	3,942	$	0	$	0		$	3,942	$	3,942	$	0	$	0
Mutual funds		246		0		0			246		246		0		0
Commercial paper		2,513		0		0			2,513		2,215		298		0
Certificates of deposit		2,058		0		0			2,058		1,865		193		0
U.S. government and agency securities		109,862		62		(1,167	)		108,757		3,678		105,079		0
Foreign government bonds		5,182		1		(10	)		5,173		0		5,173		0
Mortgage- and asset-backed securities		3,868		4		(13	)		3,859		0		3,859		0
Corporate notes and bonds		6,947		21		(56	)		6,912		0		6,912		0
Municipal securities		271		37		(1	)		307		0		307		0
Common and preferred stock		1,220		95		(10	)		1,305		0		0		1,305
Other investments		558		0		0			558		0		1		557


Total	$	136,667	$	220	$	(1,257	)	$	135,630	$	11,946	$	121,822	$	1,862

(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

As of June 30, 2018 and 2017, the recorded bases of common and preferred stock that are restricted for more than one year or are not publicly traded were $999 million and $1.1 billion, 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, 2018 and 2017, collateral received under agreements for loaned securities was $1.8 billion and $3.7 billion, respectively, and primarily comprised U.S. government and agency securities.

Unrealized Losses on Investments

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

	Less than 12 Months					12 Months or Greater							Total Unrealized Losses

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


June 30, 2018

U.S. government and agency securities	$	82,352	$	(1,064	)	$	4,459	$	(103	)	$	86,811	$	(1,167	)
Foreign government bonds		3,457		(7	)		13		(3	)		3,470		(10	)
Mortgage- and asset-backed securities		2,072		(9	)		96		(4	)		2,168		(13	)
Corporate notes and bonds		3,111		(43	)		301		(13	)		3,412		(56	)
Municipal securities		45		(1	)		0		0			45		(1	)
Common and preferred stock		75		(6	)		8		(4	)		83		(10	)


Total	$	91,112	$	(1,130	)	$	4,877	$	(127	)	$	95,989	$	(1,257	)

	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	)

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, 2018

Due in one year or less	$	31,590	$	31,451
Due after one year through five years		76,422		75,810
Due after five years through 10 years		21,765		21,396
Due after 10 years		924		922


Total	$	130,701	$	129,579

DERIVATIVES

12 Months Ended

Jun. 30, 2018

Derivative Instruments And Hedging Activities Disclosure [Abstract]

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, 2018 and 2017, the total notional amounts of these foreign exchange contracts sold were $6.1 billion and $8.9 billion, respectively.

Foreign currency risks related to certain non-U.S. dollar denominated securities are hedged using foreign exchange forward contracts that are designated as fair value hedging instruments. As of June 30, 2018 and 2017, the total notional amounts of these foreign exchange contracts sold were $5.0 billion and $5.1 billion, respectively.

Certain options and forwards not designated as hedging instruments are also used to manage the variability in foreign exchange rates on certain balance sheet amounts and to manage other foreign currency exposures. As of June 30, 2018, the total notional amounts of these foreign exchange contracts purchased and sold were $9.4 billion and $13.4 billion, respectively. 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.

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, 2018, the total notional amounts of equity contracts purchased and sold for managing market price risk were $49 million and $5 million, respectively. 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.

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, 2018, the total notional amounts of fixed-interest rate contracts purchased and sold were $306 million and $390 million, respectively. As of June 30, 2017, the total notional amounts of fixed-interest rate contracts purchased and sold were $233 million and $352 million, respectively.

In addition, we use “To Be Announced” forward purchase commitments of mortgage-backed assets to gain exposure to agency mortgage-backed securities. These meet the definition of a derivative instrument in cases where physical delivery of the assets is not taken at the earliest available delivery date. As of June 30, 2018 and 2017, the total notional derivative amounts of mortgage contracts purchased were $568 million and $567 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, 2018, the total notional amounts of credit contracts purchased and sold were $4 million and $82 million, respectively. As of June 30, 2017, the total notional amounts of credit contracts purchased and sold were $267 million and $63 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, 2018, 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:

		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


June 30, 2018

Non-designated Hedge Derivatives

Foreign exchange contracts	$	10			$	221			$	0		$	25			$	(193	)		$	(4	)
Equity contracts		2				0				0			0				(7	)			0
Interest rate contracts		11				0				0			0				(2	)			0
Credit contracts		0				0				0			0				(1	)			0


Total	$	23			$	221			$	0		$	25			$	(203	)		$	(4	)


Designated Hedge Derivatives

Foreign exchange contracts	$	95			$	174			$	0		$	0			$	0			$	0
Equity contracts		0				0				0			0				0				0


Total	$	95			$	174			$	0		$	0			$	0			$	0


Total gross amounts of derivatives	$	118			$	395			$	0		$	25			$	(203	)		$	(4	)


Gross derivatives either offset or subject to an enforceable master netting agreement	$	113			$	395			$	0		$	25			$	(203	)		$	(4	)
Gross amounts of derivatives offset on the balance sheet		(14	)			(135	)			0			(3	)			150				3


Net amounts presented on the balance sheet		99				260				0			22				(53	)			(1	)
Gross amounts of derivatives not offset on the balance sheet		0				0				0			0				0				0
Cash collateral received		0				0				0			0				(235	)			0


Net amount	$	99			$	260			$	0		$	22			$	(288	)		$	(1	)

	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


June 30, 2017

Non-designated Hedge Derivatives

Foreign exchange contracts	$	9			$	203			$	0			$	6			$	(134	)		$	(8	)
Equity contracts		3				0				0				0				(6	)			0
Interest rate contracts		3				0				0				0				(7	)			0
Credit contracts		5				0				0				0				(1	)			0


Total	$	20			$	203			$	0			$	6			$	(148	)		$	(8	)


Designated Hedge Derivatives

Foreign exchange contracts	$	80			$	133			$	0			$	0			$	(3	)		$	0
Equity contracts		0				0				67				0				(186	)			0


Total	$	80			$	133			$	67			$	0			$	(189	)		$	0


Total gross amounts of derivatives	$	100			$	336			$	67			$	6			$	(337	)		$	(8	)


Gross derivatives either offset or subject to an enforceable master netting agreement	$	100			$	336			$	67			$	6			$	(334	)		$	(8	)
Gross amounts of derivatives offset on the balance sheet		(20	)			(132	)			(67	)			(8	)			221				7


Net amounts presented on the balance sheet		80				204				0				(2	)			(113	)			(1	)
Gross amounts of derivatives not offset on the balance sheet		0				0				0				0				0				0
Cash collateral received		0				0				0				0				(228	)			0


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

Refer to Note 4 – Investments and Note 6 – Fair Value Measurements for further information.

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,	2018			2017			2016

Foreign Exchange Contracts

Derivatives	$	25		$	441		$	(797	)
Hedged items		78			(386	)		838


Total amount of ineffectiveness	$	103		$	55		$	41


Equity Contracts

Derivatives	$	(324	)	$	(74	)	$	(76	)
Hedged items		324			74			76


Total amount of ineffectiveness	$	0		$	0		$	0


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

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,	2018			2017			2016

Effective Portion

Gains recognized in other comprehensive income (net of tax of $11, $4, and $24)	$	219		$	328		$	351
Gains reclassified from accumulated other comprehensive income (loss) into revenue		185			555			625

Amount Excluded from Effectiveness Assessment and Ineffective Portion

Losses recognized in other income (expense), net		(255	)		(389	)		(354	)

We estimate that $179 million of net derivative gains included in AOCI as of June 30, 2018 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 2018.

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.

(In millions)


Year Ended June 30,	2018			2017			2016

Foreign exchange contracts	$	(33	)	$	(117	)	$	(55	)
Equity contracts		(87	)		(114	)		(21	)
Interest rate contracts		(15	)		14			10
Credit contracts		(2	)		5			(1	)
Other contracts		0			(22	)		(87	)


Total	$	(137	)	$	(234	)	$	(154	)

FAIR VALUE MEASUREMENTS

12 Months Ended

Jun. 30, 2018

Fair Value Disclosures [Abstract]

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, 2018

Assets

Mutual funds	$	246	$	0	$	0	$	246	$	0		$	246
Commercial paper		0		2,513		0		2,513		0			2,513
Certificates of deposit		0		2,058		0		2,058		0			2,058
U.S. government and agency securities		107,015		1,742		0		108,757		0			108,757
Foreign government bonds		22		5,054		0		5,076		0			5,076
Mortgage- and asset-backed securities		0		3,855		0		3,855		0			3,855
Corporate notes and bonds		0		6,894		15		6,909		0			6,909
Municipal securities		0		307		0		307		0			307
Common and preferred stock		287		0		18		305		0			305
Derivatives		1		535		2		538		(152	)		386


Total	$	107,571	$	22,958	$	35	$	130,564	$	(152	)	$	130,412


Liabilities

Derivatives and other	$	1	$	206	$	0	$	207	$	(153	)	$	54

(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

(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,		2018			2017

Net fair value of assets measured at fair value on a recurring basis	$	130,412		$	133,985
Cash		3,942			3,624
Common and preferred stock measured at fair value on a nonrecurring basis		999			1,073
Other investments measured at fair value on a nonrecurring basis		557			523
Less derivative net assets classified as other current and long-term assets		(282	)		(202	)
Other		2			1


Recorded basis of investment components	$	135,630		$	139,004

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

During fiscal year 2018 and 2017, we did not record any material other-than-temporary impairments on financial assets required to be measured at fair value on a nonrecurring basis.

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

Property Plant And Equipment [Abstract]

INVENTORIES

12 Months Ended

Jun. 30, 2018

Inventory Disclosure [Abstract]

INVENTORIES

NOTE 7 — INVENTORIES

The components of inventories were as follows:

(In millions)


June 30,	2018		2017

Raw materials	$	655	$	797
Work in process		54		145
Finished goods		1,953		1,239


Total	$	2,662	$	2,181

PROPERTY AND EQUIPMENT

12 Months Ended

Jun. 30, 2018

PROPERTY AND EQUIPMENT

NOTE 8 — PROPERTY AND EQUIPMENT

The components of property and equipment were as follows:

(In millions)


June 30,	2018			2017

Land	$	1,254		$	1,107
Buildings and improvements		20,604			16,284
Leasehold improvements		4,735			5,064
Computer equipment and software		27,633			21,414
Furniture and equipment		4,457			4,044


Total, at cost		58,683			47,913
Accumulated depreciation		(29,223	)		(24,179	)


Total, net	$	29,460		$	23,734

During fiscal years 2018, 2017, and 2016, depreciation expense was $7.7 billion, $6.1 billion, and $4.9 billion, respectively. We have committed $1.9 billion for the construction of new buildings, building improvements, and leasehold improvements as of June 30, 2018.

BUSINESS COMBINATIONS

12 Months Ended

Jun. 30, 2018

Business Combinations [Abstract]

BUSINESS COMBINATIONS

NOTE 9 — BUSINESS COMBINATIONS

LinkedIn Corporation

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 in our consolidated balance sheets. Refer to 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 statements include the following revenue and operating loss attributable to LinkedIn since the date of acquisition:

(In millions)


Year Ended June 30,		2017

Revenue	$	2,271
Operating loss		(924	)

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	$	98,291	$	94,490
Net income		25,179		19,128
Diluted earnings per share		3.21		2.38

These pro forma results were based on estimates and assumptions, which we believe are reasonable. They are not the results that would have been realized had we been a combined company during the periods presented and are not necessarily indicative of our consolidated results of operations in future periods. The pro forma results include adjustments 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.

GitHub Inc.

On June 4, 2018, we entered into a definitive agreement to acquire GitHub Inc. (“GitHub”) for $7.5 billion in an all-stock transaction. We expect the acquisition will close by the end of the calendar year, subject to approval by GitHub’s shareholders, satisfaction of certain regulatory approvals, and other customary closing conditions. GitHub will be included in our consolidated results of operations as of the date of acquisition.

Other

During fiscal year 2018, we completed nine acquisitions for total consideration of $948 million, substantially all of which was paid in cash. These entities have been included in our consolidated results of operations since their respective acquisition dates. Pro forma results of operations for these acquisitions have not been presented because the effects of these business combinations, individually and in aggregate, were not material to our consolidated results of operations.

GOODWILL

12 Months Ended

Jun. 30, 2018

Goodwill And Intangible Assets Disclosure [Abstract]

GOODWILL

NOTE 10 — GOODWILL

Changes in the carrying amount of goodwill were as follows:

(In millions)	June 30, 2016			Acquisitions				Other				June 30, 2017			Acquisitions			Other				June 30, 2018


Productivity and Business Processes		$	6,678		$	17,072	^(a)		$	(11	)		$	23,739		$	72		$	12			$	23,823
Intelligent Cloud			5,467			49				39				5,555			164			(16	)			5,703
More Personal Computing			5,727			115				(14	)			5,828			394			(65	)			6,157


Total		$	17,872		$	17,236			$	14			$	35,122		$	630		$	(69	)		$	35,683

(a)	Includes goodwill related to LinkedIn and other acquisitions. Refer to 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 segments due to reorganizations, as applicable.

As of June 30, 2018 and 2017, accumulated goodwill impairment 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.

No instances of impairment were identified in our May 1, 2018, May 1, 2017, or May 1, 2016 tests.

INTANGIBLE ASSETS

12 Months Ended

Jun. 30, 2018

Goodwill And Intangible Assets Disclosure [Abstract]

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,						2018							2017

Technology-based	$	7,220	$	(5,018	)	$	2,202	$	7,765	$	(4,318	)	$	3,447
Customer-related		4,031		(1,205	)		2,826		4,045		(692	)		3,353
Marketing-related		4,006		(1,071	)		2,935		4,016		(829	)		3,187
Contract-based		679		(589	)		90		841		(722	)		119


Total	$	15,936	$	(7,883	)	$	8,053	$	16,667	$	(6,561	)	$	10,106

No material impairments of intangible assets were identified during fiscal year 2018 or 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.

These intangible assets impairment charges were included in impairment and restructuring expenses in our consolidated income statement and reflected in Corporate and Other in our table of operating income (loss) by segment in Note 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,	2018				2017

Technology-based	$	178		4 years	$	2,265		2 years
Marketing-related		14		5 years		2,148		19 years
Contract-based		14		4 years		63		6 years
Customer-related		13		5 years		3,607		7 years


Total	$	219		5 years	$	8,083		9 years

Intangible assets amortization expense was $2.2 billion, $1.7 billion, and $978 million for fiscal years 2018, 2017, and 2016, respectively. Amortization of capitalized software was $54 million, $55 million, and $69 million for fiscal years 2018, 2017, and 2016, respectively.

The following table outlines the estimated future amortization expense related to intangible assets held as of June 30, 2018:

(In millions)


Year Ending June 30,

2019	$	1,785
2020		1,260
2021		1,043
2022		949
2023		806
Thereafter		2,210


Total	$	8,053

DEBT

12 Months Ended

Jun. 30, 2018

Debt Disclosure [Abstract]

DEBT

NOTE 12 — DEBT

Short-term Debt

As of June 30, 2018, we had no commercial paper issued and outstanding. 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. The estimated fair value of this commercial paper approximates its carrying value.

We have two $5.0 billion credit facilities that expire on October 30, 2018 and October 31, 2022, respectively. These credit facilities serve as a back-up for our commercial paper program. As of June 30, 2018, 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, 2018, the total carrying value and estimated fair value of our long-term debt, including the current portion, were $76.2 billion and $77.5 billion, respectively. 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. 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 June 30, 2018		Face Value June 30, 2017		Stated Interest Rate	Effective Interest Rate


Notes

November 15, 2017	$	0	$	600	0.875%	1.084%
May 1, 2018		0		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		2,500		2,500	1.100%	1.203%
November 1, 2019		18		18	0.500%	0.500%
February 6, 2020		1,500		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		2,750		2,750	1.550%	1.642%
December 6, 2021 ⁽^a⁾		2,044		1,996	2.125%	2.233%
February 6, 2022		1,750		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		1,500		1,500	2.000%	2.101%
December 15, 2023		1,500		1,500	3.625%	3.726%
February 6, 2024		2,250		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		4,000		4,000	2.400%	2.464%
February 6, 2027		4,000		4,000	3.300%	3.383%
December 6, 2028 ⁽^a⁾		2,044		1,996	3.125%	3.218%
May 2, 2033 ⁽^a⁾		642		627	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		2,250		2,250	3.450%	3.510%
February 6, 2037		2,500		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		4,500		4,500	3.700%	3.743%
February 6, 2047		3,000		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		2,250		2,250	3.950%	4.033%
February 6, 2057		2,000		2,000	4.500%	4.528%


Total	$	76,898	$	77,837

(a)	Euro-denominated debt securities.

The notes in the table above are senior unsecured obligations and rank equally with our other senior unsecured debt outstanding. Interest on these notes is paid semi-annually, except for the euro-denominated debt securities on which interest is paid annually. Cash paid for interest on our debt for fiscal years 2018, 2017, and 2016 was $2.4 billion, $1.6 billion, and $1.1 billion, respectively. As of June 30, 2018 and 2017, the aggregate debt issuance costs and unamortized discount associated with our long-term debt, including the current portion, were $658 million and $715 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,

2019	$	4,000
2020		5,518
2021		3,750
2022		8,044
2023		2,750
Thereafter		52,836


Total	$	76,898

INCOME TAXES

12 Months Ended

Jun. 30, 2018

Income Tax Disclosure [Abstract]

INCOME TAXES

NOTE 13 — INCOME TAXES

Recent Tax Legislation

On December 22, 2017, the TCJA was enacted into law, which significantly changes existing U.S. tax law and includes numerous provisions that affect our business, such as imposing a one-time transition tax on deemed repatriation of deferred foreign income, reducing the U.S. federal statutory tax rate, and adopting a territorial tax system. The TCJA required us to incur a one-time transition tax on deferred foreign income not previously subject to U.S. income tax at a rate of 15.5% for foreign cash and certain other net current assets, and 8% on the remaining income. The TCJA also reduced the U.S. federal statutory tax rate from 35% to 21% effective January 1, 2018. For fiscal year 2018, our blended U.S. federal statutory tax rate is 28.1%. This is the result of using the tax rate of 35% for the first and second quarter of fiscal year 2018 and the reduced tax rate of 21% for the third and fourth quarter of fiscal year 2018. The TCJA includes a provision to tax global intangible low-taxed income (“GILTI”) of foreign subsidiaries and a base erosion anti-abuse tax (“BEAT”) measure that taxes certain payments between a U.S. corporation and its foreign subsidiaries. The GILTI and BEAT provisions of the TCJA will be effective for us beginning July 1, 2018.

The TCJA was effective in the second quarter of fiscal year 2018. As of June 30, 2018, we have not completed our accounting for the estimated tax effects of the TCJA. During fiscal year 2018, we recorded a provisional net charge of $13.7 billion related to the TCJA based on reasonable estimates for those tax effects. Due to the timing of the enactment and the complexity in applying the provisions of the TCJA, the provisional net charge is subject to revisions as we continue to complete our analysis of the TCJA, collect and prepare necessary data, and interpret any additional guidance issued by the U.S. Treasury Department, Internal Revenue Service (“IRS”), FASB, and other standard-setting and regulatory bodies. Adjustments may materially impact our provision for income taxes and effective tax rate in the period in which the adjustments are made. Our accounting for the estimated tax effects of the TCJA will be completed during the measurement period, which is not expected to extend beyond one year from the enactment date. The impacts of our estimates are described further below.

During fiscal year 2018, we recorded an estimated net charge of $13.7 billion related to the TCJA, due to the impact of the one-time transition tax on the deemed repatriation of deferred foreign income of $17.9 billion, offset in part by the impact of changes in the tax rate of $4.2 billion, primarily on deferred tax assets and liabilities.

We recorded an estimated $17.9 billion charge in fiscal year 2018 related to the transition tax, which was included in the provision for income taxes in our consolidated income statements and income taxes in our consolidated balance sheets. We have not yet completed our accounting for the transition tax as our analysis of deferred foreign income is not complete. To calculate the transition tax, we estimated our deferred foreign income for fiscal year 2018 because these tax returns are not complete or due. Fiscal year 2018 taxable income will be known once the respective tax returns are completed and filed. In addition, U.S. and foreign audit settlements may significantly impact the estimated transition tax. The impact of the U.S. and foreign audits on the transition tax will be known as the audits are concluded.

In addition, we recorded an estimated $4.2 billion benefit in fiscal year 2018 from the impact of changes in the tax rate, primarily on deferred tax assets and liabilities, which was included in provision for income taxes in our consolidated income statements and deferred income taxes and long-term income taxes in our consolidated balance sheets. We remeasured our deferred taxes to reflect the reduced rate that will apply when these deferred taxes are settled or realized in future periods.

The TCJA subjects a U.S. corporation to tax on its GILTI. Due to the complexity of the new GILTI tax rules, we are continuing to evaluate this provision of the TCJA and the application of GAAP. Under GAAP, we can make an accounting policy election to either treat taxes due on the GILTI inclusion as a current period expense or factor such amounts into our measurement of deferred taxes. We elected the deferred method, and the corresponding deferred tax assets and liabilities are included in the table of deferred income tax assets and liabilities below.

On August 1, 2018, the Internal Revenue Service published on its website proposed regulations relating to the transition tax imposed by the TCJA. Once published in the Federal Register, the proposed regulations are subject to a 60-day comment period. Final regulations are expected to be issued after consideration of comments. We are currently evaluating the impact of the proposed regulations.

Provision for Income Taxes

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

(In millions)


Year Ended June 30,	2018			2017			2016

Current Taxes

U.S. federal	$	19,764		$	2,739		$	545
U.S. state and local		934			30			136
Foreign		4,348			2,472			1,940


Current taxes	$	25,046		$	5,241		$	2,621

Deferred Taxes

U.S. federal	$	(4,292	)	$	(554	)	$	1,919
U.S. state and local		(458	)		269			111
Foreign		(393	)		(544	)		449


Deferred taxes	$	(5,143	)	$	(829	)	$	2,479


Provision for income taxes	$	19,903		$	4,412		$	5,100

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

(In millions)


Year Ended June 30,	2018		2017		2016

U.S.	$	11,527	$	6,843	$	5,125
Foreign		24,947		23,058		20,514


Income before income taxes	$	36,474	$	29,901	$	25,639

Effective Tax Rate

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,	2018		2017		2016

Federal statutory rate		28.1%		35.0%		35.0%
Effect of:
Foreign earnings taxed at lower rates		(7.8)%		(11.6)%		(14.5)%
Impacts of TCJA		37.7%		0%		0%
Phone business losses		0%		(5.7)%		1.0%
Excess tax benefits relating to stock-based compensation		(2.5)%		(2.1)%		(1.6)%
Interest, net		1.2%		1.4%		0.9%
Other reconciling items, net		(2.1)%		(2.2)%		(0.9)%


Effective rate		54.6%		14.8%		19.9%

The increase from the federal statutory rate in fiscal year 2018 is primarily due to the net charge related to the enactment of the TCJA in the second quarter of fiscal year 2018, offset in part by earnings taxed at lower rates in foreign jurisdictions. The decrease from the federal statutory rate in fiscal year 2017 and 2016 is primarily due to earnings taxed at lower rates in foreign jurisdictions. Our foreign regional operating centers in Ireland, Singapore and Puerto Rico, which are taxed at rates lower than the U.S. rate, generated 87%, 76%, and 91% of our foreign income before tax in fiscal years 2018, 2017, and 2016, respectively. Other reconciling items, net consists primarily of tax credits, U.S. state income taxes, and domestic production activities deduction. In fiscal years 2018, 2017, and 2016, there were no individually significant other reconciling items.

The increase in our effective tax rate for fiscal year 2018 compared to fiscal year 2017 was primarily due to the net charge related to the enactment of the TCJA and the realization of tax benefits attributable to previous Phone business losses in fiscal year 2017. 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 components of the deferred income tax assets and liabilities were as follows:

(In millions)


June 30,	2018				2017

Deferred Income Tax Assets

Stock-based compensation expense	$		460		$		777
Accruals, reserves, and other expenses			1,832				1,859
Loss and credit carryforwards			3,369				4,809
Depreciation and amortization			351				53
Other			56				255


Deferred income tax assets			6,068				7,753
Less valuation allowance			(3,186	)			(3,310	)


Deferred income tax assets, net of valuation allowance	$		2,882		$		4,443


Deferred Income Tax Liabilities

Foreign earnings	$	0			$	(1,134		)
Unrealized gain on investments and debt		0				(1,384		)
Unearned revenue		(639		)		(5,760		)
Depreciation and amortization		(1,103		)		(1,630		)
Other		(312		)		(21		)


Deferred income tax liabilities	$	(2,054		)	$	(9,929		)


Net deferred income tax assets (liabilities)	$	828			$	(5,486		)


Reported As

Other long-term assets	$	1,369			$	248
Long-term deferred income tax liabilities		(541		)		(5,734		)


Net deferred income tax assets (liabilities)	$	828			$	(5,486		)

We recorded a deferred tax liability of $7.4 billion related to the recognition of revenue as part of the adoption of the new revenue standard.

As of June 30, 2018, we had federal, state and foreign net operating loss carryforwards of $257 million, $1.4 billion and $11.4 billion, respectively. The federal and state net operating loss carryforwards will expire in various years from fiscal 2019 through 2038, if not utilized. The majority of our foreign net operating loss carryforwards do not expire. Certain acquired net operating loss carryforwards are subject to an annual limitation, but are expected to be realized with the exception of those which have a valuation allowance.

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.

Income taxes paid, net of refunds, were $5.5 billion, $2.4 billion, and $3.9 billion in fiscal years 2018, 2017, and 2016, respectively.

Uncertain Tax Positions

Unrecognized tax benefits as of June 30, 2018, 2017, and 2016, were $12.0 billion, $11.7 billion, and $10.2 billion, respectively, and were included in long-term income taxes in our consolidated balance sheets. If recognized, these tax benefits would affect our effective tax rates for fiscal years 2018, 2017, and 2016, by $11.3 billion, $10.2 billion, and $8.8 billion, respectively.

As of June 30, 2018, 2017, and 2016, we had accrued interest expense related to uncertain tax positions of $3.0 billion, $2.3 billion, and $1.9 billion, respectively, net of income tax benefits. Interest expense on unrecognized tax benefits, net of tax effects, was $688 million, $399 million, and $163 million in fiscal years 2018, 2017, and 2016, 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,	2018			2017			2016

Balance, beginning of year	$	11,737		$	10,164		$	9,599
Decreases related to settlements		(193	)		(4	)		(201	)
Increases for tax positions related to the current year		1,445			1,277			1,086
Increases for tax positions related to prior years		151			397			115
Decreases for tax positions related to prior years		(1,176	)		(49	)		(317	)
Decreases due to lapsed statutes of limitations		(3	)		(48	)		(118	)


Balance, end of year	$	11,961		$	11,737		$	10,164

While we settled a portion of the IRS audit for tax years 2004 to 2006 during the third quarter of fiscal year 2011, and a portion of the IRS audit for tax years 2007 to 2009 during the first quarter of fiscal year 2016, we remain under audit for those years. In the second quarter of fiscal year 2018, we settled a portion of the IRS audit for tax years 2010 to 2013. We continue to be subject to examination by the IRS for tax years 2010 to 2017. 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, 2018, the primary unresolved issue relates to transfer pricing, which could have a significant impact in 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 resolution of each of these audits is not expected to be material to our consolidated financial statements.

RESTRUCTURING CHARGES	12 Months Ended
RESTRUCTURING CHARGES	Jun. 30, 2018
Restructuring And Related Activities [Abstract]
RESTRUCTURING CHARGES	NOTE 14 — RESTRUCTURING CHARGES 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. The actions associated with this restructuring plan were completed as of June 30, 2018.

UNEARNED REVENUE

12 Months Ended

Jun. 30, 2018

Revenue From Contract With Customer [Abstract]

UNEARNED REVENUE

NOTE 15 — UNEARNED REVENUE

Unearned revenue by segment was as follows:

(In millions)


June 30,	2018		2017

Productivity and Business Processes	$	14,864	$	12,692
Intelligent Cloud		14,706		11,152
More Personal Computing		3,150		2,812


Total	$	32,720	$	26,656

The opening balance of unearned revenue was $22.2 billion as of July 1, 2016.

Changes in unearned revenue were as follows:

(In millions)


Year Ended June 30, 2018

Balance, beginning of period	$	26,656
Deferral of revenue		61,142
Recognition of unearned revenue		(55,078	)


Balance, end of period	$	32,720

Revenue allocated to remaining performance obligations represents contracted revenue that has not yet been recognized (“contracted not recognized revenue”), which includes unearned revenue and amounts that will be invoiced and recognized as revenue in future periods. Contracted not recognized revenue was $73 billion as of June 30, 2018, of which we expect to recognize approximately 60% of the revenue over the next 12 months and the remainder thereafter.

LEASES

12 Months Ended

Jun. 30, 2018

Leases [Abstract]

LEASES

NOTE 16 — LEASES

We have operating and finance leases for datacenters, corporate offices, research and development facilities, retail stores, and certain equipment. Our leases have remaining lease terms of 1 year to 20 years, some of which include options to extend the leases for up to 5 years, and some of which include options to terminate the leases within 1 year.

The components of lease expense were as follows:

(In millions)


Year Ended June 30,	2018			2017		2016

Operating lease cost	$	1,585	$	1,412	$	936


Finance lease cost:
Amortization of right-of-use assets	$	243	$	104	$	28
Interest on lease liabilities		175		68		28


Total finance lease cost	$	418	$	172	$	56

Supplemental cash flow information related to leases was as follows:

(In millions)


Year Ended June 30,	2018			2017		2016

Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	1,522	$	1,157	$	936
Operating cash flows from finance leases		175		68		28
Financing cash flows from finance leases		144		46		6

Right-of-use assets obtained in exchange for lease obligations:
Operating leases		1,571		1,270		1,062
Finance leases		1,933		1,773		413

Supplemental balance sheet information related to leases was as follows:

(In millions, except lease term and discount rate)


June 30,	2018			2017

Operating Leases

Operating lease right-of-use assets	$	6,686		$	6,555


Other current liabilities	$	1,399		$	1,423
Operating lease liabilities		5,568			5,372


Total operating lease liabilities	$	6,967		$	6,795


Finance Leases

Property and equipment, gross	$	4,543		$	2,658
Accumulated depreciation		(404	)		(161	)


Property and equipment, net	$	4,139		$	2,497


Other current liabilities	$	176		$	113
Other long-term liabilities		4,125			2,425


Total finance lease liabilities	$	4,301		$	2,538

Weighted Average Remaining Lease Term

Operating leases		7 years			7 years
Finance leases		13 years			13 years

Weighted Average Discount Rate

Operating leases		2.7%			2.5%
Finance leases		5.2%			4.7%

Maturities of lease liabilities were as follows:

(In millions)


Year Ending June 30,	Operating Leases			Finance Leases

2019	$	1,492		$	386
2020		1,347			393
2021		1,086			401
2022		902			408
2023		721			410
Thereafter		2,157			4,036


Total lease payments		7,705			6,034
Less imputed interest		(738	)		(1,733	)


Total	$	6,967		$	4,301

As of June 30, 2018, we have additional operating and finance leases, primarily for datacenters, that have not yet commenced of $594 million and $2.4 billion, respectively. These operating and finance leases will commence between fiscal year 2019 and fiscal year 2020 with lease terms of 1 year to 20 years.

CONTINGENCIES	12 Months Ended
CONTINGENCIES	Jun. 30, 2018
Commitments And Contingencies Disclosure [Abstract]
CONTINGENCIES	NOTE 17 — CONTINGENCIES Patent and Intellectual Property Claims There were 34 patent infringement cases pending against Microsoft as of June 30, 2018, none of which are material individually or in aggregate. 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. Following a mediation, the parties agreed to a global settlement of all three Canadian actions, and have submitted the proposed settlement agreement to the courts in all three jurisdictions for approval. The courts will likely reach a decision on approval in September 2018. Other Antitrust Litigation and Claims China State Administration for Industry and Commerce Investigation In 2014, Microsoft was informed that China’s State Agency for Market Regulation (“SAMR”) (formerly State Administration for Industry and Commerce) had begun a formal investigation relating to China’s Anti-Monopoly Law, and the SAMR conducted onsite inspections of Microsoft offices in Beijing, Shanghai, Guangzhou, and Chengdu. SAMR 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 Microsoft Mobile Oy, a subsidiary of Microsoft, along with other handset manufacturers and network operators, is a defendant in 35 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 in our agreement to acquire 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 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, the defendants in the consolidated cases moved to exclude the 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 the defendants’ motion to exclude the 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 the defendants and remanding the cases to the trial court for further proceedings under that standard. The plaintiffs have filed supplemental expert evidence, portions of which the defendants have moved to strike. Canadian Cell Phone Class Action Microsoft Mobile Oy, 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, alleging adverse health effects from cellular phone use. 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 three years. Employment-Related Litigation Moussouris v. Microsoft Current and former female Microsoft employees in certain engineering and information technology roles brought this class action in federal court in Seattle in 2015, alleging systemic gender discrimination in pay and promotions. The plaintiffs moved to certify the class in October 2017. Microsoft filed an opposition in January 2018, attaching an expert report showing no statistically significant disparity in pay and promotions between similarly situated men and women. In June 2018, the court denied the plaintiffs’ motion for class certification. The plaintiffs have appealed to the U.S. Court of Appeals for the Ninth Circuit. In July, the court denied Microsoft’s motion for summary judgment with respect to the named plaintiffs. 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 in 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, 2018, we accrued aggregate legal liabilities of $323 million. While we intend to defend these matters vigorously, adverse outcomes that we estimate could reach approximately $1.1 billion in aggregate beyond recorded amounts are reasonably possible. Were unfavorable final outcomes to occur, there exists the possibility of a material adverse impact in 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. In evaluating estimated losses on these obligations, we consider factors such as the degree of probability of an unfavorable outcome and our ability to make a reasonable estimate of the amount of loss. These obligations did not have a material impact in our consolidated financial statements during the periods presented.

STOCKHOLDERS' EQUITY

12 Months Ended

Jun. 30, 2018

STOCKHOLDERS' EQUITY

NOTE 18 — STOCKHOLDERS’ EQUITY

Shares Outstanding

Shares of common stock outstanding were as follows:

(In millions)


Year Ended June 30,	2018			2017			2016

Balance, beginning of year		7,708			7,808			8,027
Issued		68			70			75
Repurchased		(99	)		(170	)		(294	)


Balance, end of year		7,677			7,708			7,808

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, 2018, $28.2 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,	2018				2017				2016

First Quarter		22	$	1,600		63	$	3,550		89	$	4,000
Second Quarter		22		1,800		59		3,533		66		3,600
Third Quarter		34		3,100		25		1,600		69		3,600
Fourth Quarter		21		2,100		23		1,600		70		3,600


Total		99	$	8,600		170	$	10,283		294	$	14,800

Shares repurchased beginning in the third 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 employee tax withholding related to the vesting of stock awards. All repurchases were made using cash resources.

Dividends

Our Board of Directors declared the following dividends:

Declaration Date

Dividend

Per Share

Record Date

Amount

Payment Date

Fiscal Year 2018

(in millions)

September 19, 2017

0.42

November 16, 2017

3,238

December 14, 2017

November 29, 2017

0.42

February 15, 2018

3,232

March 8, 2018

March 12, 2018

0.42

May 17, 2018

3,226

June 14, 2018

June 13, 2018

0.42

August 16, 2018

3,224

September 13, 2018

Fiscal Year 2017

September 20, 2016

0.39

November 17, 2016

3,024

December 8, 2016

November 30, 2016

0.39

February 16, 2017

3,012

March 9, 2017

March 14, 2017

0.39

May 18, 2017

3,009

June 8, 2017

June 13, 2017

0.39

August 17, 2017

3,003

September 14, 2017

The dividend declared on June 13, 2018 was included in other current liabilities as of June 30, 2018.

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

12 Months Ended

Jun. 30, 2018

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

NOTE 19 — ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

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

(In millions)


Year Ended June 30,	2018			2017			2016

Derivatives

Balance, beginning of period	$	134		$	352		$	590
Unrealized gains, net of tax of $11, $4, and $24		218			328			351
Reclassification adjustments for gains included in revenue		(185	)		(555	)		(625	)
Tax expense included in provision for income taxes		6			9			36


Amounts reclassified from accumulated other comprehensive income		(179	)		(546	)		(589	)


Net change related to derivatives, net of tax of $5, $(5), and $(12)		39			(218	)		(238	)


Balance, end of period	$	173		$	134		$	352


Investments

Balance, beginning of period	$	1,825		$	2,941		$	3,169
Unrealized gains (losses), net of tax of $(427), $267, and $120		(1,146	)		517			219
Reclassification adjustments for gains included in other income (expense), net		(2,309	)		(2,513	)		(688	)
Tax expense included in provision for income taxes		738			880			241


Amounts reclassified from accumulated other comprehensive income		(1,571	)		(1,633	)		(447	)


Net change related to investments, net of tax of $(1,165), $(613), and $(121)		(2,717	)		(1,116	)		(228	)


Balance, end of period	$	(892	)	$	1,825		$	2,941


Translation Adjustments and Other

Balance, beginning of period	$	(1,332	)	$	(1,499	)	$	(1,237	)
Translation adjustments and other, net of tax effects of $0, $9, and $(33)		(178	)		167			(262	)


Balance, end of period	$	(1,510	)	$	(1,332	)	$	(1,499	)

Cumulative effect of accounting change		42			0			0


Accumulated other comprehensive income (loss), end of period	$	(2,187	)	$	627		$	1,794

EMPLOYEE STOCK AND SAVINGS PLANS

12 Months Ended

Jun. 30, 2018

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

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, 2018, an aggregate of 381 million shares were authorized for future grant under our stock plans. In fiscal year 2018, our Board of Directors approved the 2017 Stock Plan, which authorized an additional 308 million shares 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,	2018		2017		2016

Stock-based compensation expense	$	3,940	$	3,266	$	2,668
Income tax benefits related to stock-based compensation		823		1,066		882

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,	2018		2017		2016

Dividends per share (quarterly amounts)		$0.39 - $0.42		$0.36 - $0.39		$0.31 - $0.36
Interest rates		1.7% - 2.9%		1.2% - 2.2%		1.1% - 1.8%

During fiscal year 2018, the following activity occurred under our stock plans:

Shares			Weighted Average Grant-Date Fair Value


(In millions)

Stock Awards

Nonvested balance, beginning of year	201		$	46.32
Granted ^(a)	70			75.88
Vested	(80	)		45.74
Forfeited	(17	)		53.41


Nonvested balance, end of year	174			57.85

(a)	Includes 3 million, 2 million, and 1 million of PSUs granted at target and performance adjustments above target levels for fiscal years 2018, 2017, and 2016, respectively.

As of June 30, 2018, there was approximately $7.0 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 $75.88, $55.64, and $41.51 for fiscal years 2018, 2017, and 2016, respectively. The fair value of stock awards vested was $6.6 billion, $4.8 billion, and $3.9 billion, for fiscal years 2018, 2017, and 2016, 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,	2018		2017		2016

Shares purchased		13		13		15
Average price per share	$	76.40	$	56.36	$	44.83

As of June 30, 2018, 116 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. 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. Matching contributions for all plans were $807 million, $734 million, and $549 million in fiscal years 2018, 2017, and 2016, respectively, and were expensed as contributed.

SEGMENT INFORMATION AND GEOGRAPHIC DATA

12 Months Ended

Jun. 30, 2018

Segment Reporting [Abstract]

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 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.

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 OEM 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 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.

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 from 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 and restructuring expenses.

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

(In millions)


Year Ended June 30,		2018		2017			2016

Revenue

Productivity and Business Processes	$	35,865	$	29,870		$	25,792
Intelligent Cloud		32,219		27,407			24,952
More Personal Computing		42,276		39,294			40,410


Total	$	110,360	$	96,571		$	91,154


Operating Income (Loss)

Productivity and Business Processes	$	12,924	$	11,389		$	11,756
Intelligent Cloud		11,524		9,127			9,249
More Personal Computing		10,610		8,815			6,183
Corporate and Other		0		(306	)		(1,110	)


Total	$	35,058	$	29,025		$	26,078

Corporate and Other operating loss comprised impairment and restructuring expenses.

No sales to an individual customer or country other than the United States accounted for more than 10% of revenue for the fiscal years 2018, 2017, or 2016. Revenue, classified by the major geographic areas in which our customers are located, was as follows:

(In millions)


Year Ended June 30,	2018		2017		2016

United States ^(a)	$	55,926	$	51,078	$	46,416
Other countries		54,434		45,493		44,738


Total	$	110,360	$	96,571	$	91,154

(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, was as follows:

(In millions)


Year Ended June 30,	2018		2017		2016

Office products and cloud services	$	28,316	$	25,573	$	23,868
Server products and cloud services		26,129		21,649		19,062
Windows		19,518		18,593		17,548
Gaming		10,353		9,051		9,202
Search advertising		7,012		6,219		5,428
Enterprise Services		5,846		5,542		5,659
Devices		5,134		5,062		7,888
LinkedIn		5,259		2,271		0
Other		2,793		2,611		2,499


Total	$	110,360	$	96,571	$	91,154

Our commercial cloud revenue, which primarily comprises Office 365 commercial, Azure, Dynamics 365, and other cloud properties, was $23.2 billion, $14.9 billion, and $9.5 billion in fiscal years 2018, 2017, and 2016, respectively. These amounts are primarily included in Office products and services and server products and cloud services 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,	2018		2017		2016

United States	$	44,501	$	42,730	$	25,145
Ireland		12,843		12,889		2,099
Luxembourg		6,856		6,854		6,868
Other countries		15,682		13,044		11,047


Total	$	79,882	$	75,517	$	45,159

QUARTERLY INFORMATION (UNAUDITED)

12 Months Ended

Jun. 30, 2018

Quarterly Financial Information Disclosure [Abstract]

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 2018

Revenue	$	24,538	$	28,918		$	26,819	$	30,085	$	110,360
Gross margin		16,260		17,854			17,550		20,343		72,007
Operating income		7,708		8,679			8,292		10,379		35,058
Net income (loss) ^(a)		6,576		(6,302	)		7,424		8,873		16,571
Basic earnings (loss) per share		0.85		(0.82	)		0.96		1.15		2.15
Diluted earnings (loss) per share ^(b)		0.84		(0.82	)		0.95		1.14		2.13

Fiscal Year 2017 ^(c)

Revenue	$	21,928	$	25,826	$	23,212	$	25,605		$	96,571
Gross margin		14,084		15,925		15,152		17,149			62,310
Operating income		6,715		7,905		6,723		7,682	^(d)		29,025	^(d)
Net income		5,667		6,267		5,486		8,069	^(d)		25,489	^(d)
Basic earnings per share		0.73		0.81		0.71		1.05			3.29
Diluted earnings per share		0.72		0.80		0.70		1.03	^(d)		3.25	^(d)

(a)	Reflects the net charge (benefit) related to the TCJA of $13.8 billion for the second quarter, $(104) million for the fourth quarter, and $13.7 billion for fiscal year 2018.

(b)	Reflects the net charge (benefit) related to the TCJA, which decreased (increased) diluted EPS $1.78 for the second quarter, $(0.01) for the fourth quarter, and $1.75 for fiscal year 2018.

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

(d)	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 $0.04, respectively.

ACCOUNTING POLICIES (Policies)

12 Months Ended

Jun. 30, 2018

Accounting Policies [Abstract]

Accounting Principles

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

Principles of Consolidation

Estimates and Assumptions

Foreign Currencies

Recent Accounting Guidance

Product Revenue and Service and Other Revenue

Revenue Recognition

Nature of Products and Services

Refer to Note 21 – Segment Information and Geographic Data for further information, including revenue by significant product and service offering.

Significant Judgments

Contract Balances

The opening balance of current and long-term accounts receivable, net of allowance for doubtful accounts, was $22.3 billion as of July 1, 2016.

Activity in the allowance for doubtful accounts was as follows:

(In millions)


Year Ended June 30,		2018			2017			2016

Balance, beginning of period	$	361		$	409		$	289
Charged to costs and other		134			58			175
Write-offs		(98	)		(106	)		(55	)


Balance, end of period	$	397		$	361		$	409

Allowance for doubtful accounts included in our consolidated balance sheets:



June 30,		2018		2017		2016

Accounts receivable, net of allowance for doubtful accounts	$	377	$	345	$	392
Other long-term assets		20		16		17


Total	$	397	$	361	$	409

Refer to Note 15 – Unearned Revenue for further information, including unearned revenue by segment and changes in unearned revenue during the period.

Assets Recognized from Costs to Obtain a Contract with a Customer

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

Recent Tax Legislation

(In millions)	As Previously Reported		As Adjusted


Balance Sheets				June 30, 2017

Long-term income taxes	$	0	$	13,485
Other long-term liabilities		17,034		3,549

These adjustments had no impact in our consolidated income statements or net cash from or used in operating, financing, or investing in our consolidated cash flows statements.

Fair Value Measurements

•

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

Investments

Derivatives

For derivative instruments that are not designated as hedges, gains (losses) from changes in fair values are primarily recognized in other income (expense), net.

Inventories

Property and Equipment

Leases

Goodwill

Intangible Assets

Recently Adopted Accounting Guidance

Comprehensive Income – Reclassification of Certain Tax Effects

Leases

Revenue from Contracts with Customers

Impacts to Previously Reported Results

Adoption of the standards related to revenue recognition and leases impacted our previously reported results as follows:

(In millions, except per share amounts)	As Previously Reported		New Revenue Standard Adjustment		As Restated


Income Statements

Year Ended June 30, 2017

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

Year Ended June 30, 2016

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

(In millions)	As Previously Reported		New Revenue Standard Adjustment			New Lease Standard Adjustment		As Restated


Balance Sheets

June 30, 2017

Accounts receivable, net of allowance for doubtful accounts	$	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

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

Recent Accounting Guidance Not Yet Adopted

Financial Instruments – Targeted Improvements to Accounting for Hedging Activities

Income Taxes – Intra-Entity Asset Transfers

Financial Instruments – Credit Losses

Financial Instruments – Recognition, Measurement, Presentation, and Disclosure

Earnings Per Share

Segment Reporting

ACCOUNTING POLICIES (Tables)

12 Months Ended

Jun. 30, 2018

Accounting Policies [Abstract]

Allowance for Doubtful Accounts

Activity in the allowance for doubtful accounts was as follows:

(In millions)


Year Ended June 30,		2018			2017			2016

Balance, beginning of period	$	361		$	409		$	289
Charged to costs and other		134			58			175
Write-offs		(98	)		(106	)		(55	)


Balance, end of period	$	397		$	361		$	409

Allowance for doubtful accounts included in our consolidated balance sheets:



June 30,		2018		2017		2016

Accounts receivable, net of allowance for doubtful accounts	$	377	$	345	$	392
Other long-term assets		20		16		17


Total	$	397	$	361	$	409

Impact of Tax Cuts and Jobs Act on Previously Reported Balances of Prior Period Income Tax Liabilities

(In millions)	As Previously Reported		As Adjusted


Balance Sheets				June 30, 2017

Long-term income taxes	$	0	$	13,485
Other long-term liabilities		17,034		3,549

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

Adoption of the standards related to revenue recognition and leases impacted our previously reported results as follows:

(In millions, except per share amounts)	As Previously Reported		New Revenue Standard Adjustment		As Restated


Income Statements

Year Ended June 30, 2017

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

Year Ended June 30, 2016

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

(In millions)	As Previously Reported		New Revenue Standard Adjustment			New Lease Standard Adjustment		As Restated


Balance Sheets

June 30, 2017

Accounts receivable, net of allowance for doubtful accounts	$	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

EARNINGS PER SHARE (Tables)

12 Months Ended

Jun. 30, 2018

Earnings Per Share [Abstract]

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,	2018		2017		2016

Net income available for common shareholders (A)	$	16,571	$	25,489	$	20,539

Weighted average outstanding shares of common stock (B)		7,700		7,746		7,925
Dilutive effect of stock-based awards		94		86		88


Common stock and common stock equivalents (C)		7,794		7,832		8,013


Earnings Per Share

Basic (A/B)	$	2.15	$	3.29	$	2.59
Diluted (A/C)	$	2.13	$	3.25	$	2.56

OTHER INCOME (EXPENSE), NET (Tables)

12 Months Ended

Jun. 30, 2018

Other Income And Expenses [Abstract]

Components of Other Income (Expense), Net

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

(In millions)


Year Ended June 30,	2018			2017			2016

Dividends and interest income	$	2,214		$	1,387		$	903
Interest expense		(2,733	)		(2,222	)		(1,243	)
Net recognized gains on investments		2,399			2,583			668
Net losses on derivatives		(187	)		(510	)		(443	)
Net losses on foreign currency remeasurements		(218	)		(111	)		(129	)
Other, net		(59	)		(251	)		(195	)


Total	$	1,416		$	876		$	(439	)

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,	2018			2017			2016

Other-than-temporary impairments of investments	$	(47	)	$	(55	)	$	(322	)
Realized gains from sales of available-for-sale securities		3,478			3,064			1,376
Realized losses from sales of available-for-sale securities		(1,032	)		(426	)		(386	)


Total	$	2,399		$	2,583		$	668

INVESTMENTS (Tables)

12 Months Ended

Jun. 30, 2018

Investments Debt And Equity Securities [Abstract]

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, 2018

Cash	$	3,942	$	0	$	0		$	3,942	$	3,942	$	0	$	0
Mutual funds		246		0		0			246		246		0		0
Commercial paper		2,513		0		0			2,513		2,215		298		0
Certificates of deposit		2,058		0		0			2,058		1,865		193		0
U.S. government and agency securities		109,862		62		(1,167	)		108,757		3,678		105,079		0
Foreign government bonds		5,182		1		(10	)		5,173		0		5,173		0
Mortgage- and asset-backed securities		3,868		4		(13	)		3,859		0		3,859		0
Corporate notes and bonds		6,947		21		(56	)		6,912		0		6,912		0
Municipal securities		271		37		(1	)		307		0		307		0
Common and preferred stock		1,220		95		(10	)		1,305		0		0		1,305
Other investments		558		0		0			558		0		1		557


Total	$	136,667	$	220	$	(1,257	)	$	135,630	$	11,946	$	121,822	$	1,862

(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

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, 2018

U.S. government and agency securities	$	82,352	$	(1,064	)	$	4,459	$	(103	)	$	86,811	$	(1,167	)
Foreign government bonds		3,457		(7	)		13		(3	)		3,470		(10	)
Mortgage- and asset-backed securities		2,072		(9	)		96		(4	)		2,168		(13	)
Corporate notes and bonds		3,111		(43	)		301		(13	)		3,412		(56	)
Municipal securities		45		(1	)		0		0			45		(1	)
Common and preferred stock		75		(6	)		8		(4	)		83		(10	)


Total	$	91,112	$	(1,130	)	$	4,877	$	(127	)	$	95,989	$	(1,257	)

	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	)

Debt Investment Maturities

(In millions)	Cost Basis		Estimated Fair Value


June 30, 2018

Due in one year or less	$	31,590	$	31,451
Due after one year through five years		76,422		75,810
Due after five years through 10 years		21,765		21,396
Due after 10 years		924		922


Total	$	130,701	$	129,579

DERIVATIVES (Tables)

12 Months Ended

Jun. 30, 2018

Fair Values of Derivative Instruments

		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


June 30, 2018

Non-designated Hedge Derivatives

Foreign exchange contracts	$	10			$	221			$	0		$	25			$	(193	)		$	(4	)
Equity contracts		2				0				0			0				(7	)			0
Interest rate contracts		11				0				0			0				(2	)			0
Credit contracts		0				0				0			0				(1	)			0


Total	$	23			$	221			$	0		$	25			$	(203	)		$	(4	)


Designated Hedge Derivatives

Foreign exchange contracts	$	95			$	174			$	0		$	0			$	0			$	0
Equity contracts		0				0				0			0				0				0


Total	$	95			$	174			$	0		$	0			$	0			$	0


Total gross amounts of derivatives	$	118			$	395			$	0		$	25			$	(203	)		$	(4	)


Gross derivatives either offset or subject to an enforceable master netting agreement	$	113			$	395			$	0		$	25			$	(203	)		$	(4	)
Gross amounts of derivatives offset on the balance sheet		(14	)			(135	)			0			(3	)			150				3


Net amounts presented on the balance sheet		99				260				0			22				(53	)			(1	)
Gross amounts of derivatives not offset on the balance sheet		0				0				0			0				0				0
Cash collateral received		0				0				0			0				(235	)			0


Net amount	$	99			$	260			$	0		$	22			$	(288	)		$	(1	)

	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


June 30, 2017

Non-designated Hedge Derivatives

Foreign exchange contracts	$	9			$	203			$	0			$	6			$	(134	)		$	(8	)
Equity contracts		3				0				0				0				(6	)			0
Interest rate contracts		3				0				0				0				(7	)			0
Credit contracts		5				0				0				0				(1	)			0


Total	$	20			$	203			$	0			$	6			$	(148	)		$	(8	)


Designated Hedge Derivatives

Foreign exchange contracts	$	80			$	133			$	0			$	0			$	(3	)		$	0
Equity contracts		0				0				67				0				(186	)			0


Total	$	80			$	133			$	67			$	0			$	(189	)		$	0


Total gross amounts of derivatives	$	100			$	336			$	67			$	6			$	(337	)		$	(8	)


Gross derivatives either offset or subject to an enforceable master netting agreement	$	100			$	336			$	67			$	6			$	(334	)		$	(8	)
Gross amounts of derivatives offset on the balance sheet		(20	)			(132	)			(67	)			(8	)			221				7


Net amounts presented on the balance sheet		80				204				0				(2	)			(113	)			(1	)
Gross amounts of derivatives not offset on the balance sheet		0				0				0				0				0				0
Cash collateral received		0				0				0				0				(228	)			0


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

Non-designated Hedge Derivatives

Gains (Losses) on Derivative Instruments

(In millions)


Year Ended June 30,	2018			2017			2016

Foreign exchange contracts	$	(33	)	$	(117	)	$	(55	)
Equity contracts		(87	)		(114	)		(21	)
Interest rate contracts		(15	)		14			10
Credit contracts		(2	)		5			(1	)
Other contracts		0			(22	)		(87	)


Total	$	(137	)	$	(234	)	$	(154	)

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,	2018			2017			2016

Foreign Exchange Contracts

Derivatives	$	25		$	441		$	(797	)
Hedged items		78			(386	)		838


Total amount of ineffectiveness	$	103		$	55		$	41


Equity Contracts

Derivatives	$	(324	)	$	(74	)	$	(76	)
Hedged items		324			74			76


Total amount of ineffectiveness	$	0		$	0		$	0


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

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,	2018			2017			2016

Effective Portion

Gains recognized in other comprehensive income (net of tax of $11, $4, and $24)	$	219		$	328		$	351
Gains reclassified from accumulated other comprehensive income (loss) into revenue		185			555			625

Amount Excluded from Effectiveness Assessment and Ineffective Portion

Losses recognized in other income (expense), net		(255	)		(389	)		(354	)

FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Jun. 30, 2018

Fair Value Disclosures [Abstract]

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, 2018

Assets

Mutual funds	$	246	$	0	$	0	$	246	$	0		$	246
Commercial paper		0		2,513		0		2,513		0			2,513
Certificates of deposit		0		2,058		0		2,058		0			2,058
U.S. government and agency securities		107,015		1,742		0		108,757		0			108,757
Foreign government bonds		22		5,054		0		5,076		0			5,076
Mortgage- and asset-backed securities		0		3,855		0		3,855		0			3,855
Corporate notes and bonds		0		6,894		15		6,909		0			6,909
Municipal securities		0		307		0		307		0			307
Common and preferred stock		287		0		18		305		0			305
Derivatives		1		535		2		538		(152	)		386


Total	$	107,571	$	22,958	$	35	$	130,564	$	(152	)	$	130,412


Liabilities

Derivatives and other	$	1	$	206	$	0	$	207	$	(153	)	$	54

(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

(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,		2018			2017

Net fair value of assets measured at fair value on a recurring basis	$	130,412		$	133,985
Cash		3,942			3,624
Common and preferred stock measured at fair value on a nonrecurring basis		999			1,073
Other investments measured at fair value on a nonrecurring basis		557			523
Less derivative net assets classified as other current and long-term assets		(282	)		(202	)
Other		2			1


Recorded basis of investment components	$	135,630		$	139,004

INVENTORIES (Tables)

12 Months Ended

Jun. 30, 2018

Inventory Disclosure [Abstract]

Components of Inventories

The components of inventories were as follows:

(In millions)


June 30,	2018		2017

Raw materials	$	655	$	797
Work in process		54		145
Finished goods		1,953		1,239


Total	$	2,662	$	2,181

PROPERTY AND EQUIPMENT (Tables)

12 Months Ended

Jun. 30, 2018

Property Plant And Equipment [Abstract]

Components of Property and Equipment

The components of property and equipment were as follows:

(In millions)


June 30,	2018			2017

Land	$	1,254		$	1,107
Buildings and improvements		20,604			16,284
Leasehold improvements		4,735			5,064
Computer equipment and software		27,633			21,414
Furniture and equipment		4,457			4,044


Total, at cost		58,683			47,913
Accumulated depreciation		(29,223	)		(24,179	)


Total, net	$	29,460		$	23,734

BUSINESS COMBINATIONS (Tables)

12 Months Ended

Jun. 30, 2018

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,	2018				2017

Technology-based	$	178		4 years	$	2,265		2 years
Marketing-related		14		5 years		2,148		19 years
Contract-based		14		4 years		63		6 years
Customer-related		13		5 years		3,607		7 years


Total	$	219		5 years	$	8,083		9 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 statements include the following revenue and operating loss attributable to LinkedIn since the date of acquisition:

(In millions)


Year Ended June 30,		2017

Revenue	$	2,271
Operating loss		(924	)

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	$	98,291	$	94,490
Net income		25,179		19,128
Diluted earnings per share		3.21		2.38

GOODWILL (Tables)

12 Months Ended

Jun. 30, 2018

Goodwill And Intangible Assets Disclosure [Abstract]

Carrying Amount of Goodwill

Changes in the carrying amount of goodwill were as follows:

(In millions)	June 30, 2016			Acquisitions				Other				June 30, 2017			Acquisitions			Other				June 30, 2018


Productivity and Business Processes		$	6,678		$	17,072	^(a)		$	(11	)		$	23,739		$	72		$	12			$	23,823
Intelligent Cloud			5,467			49				39				5,555			164			(16	)			5,703
More Personal Computing			5,727			115				(14	)			5,828			394			(65	)			6,157


Total		$	17,872		$	17,236			$	14			$	35,122		$	630		$	(69	)		$	35,683

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

INTANGIBLE ASSETS (Tables)

12 Months Ended

Jun. 30, 2018

Goodwill And Intangible Assets Disclosure [Abstract]

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,						2018							2017

Technology-based	$	7,220	$	(5,018	)	$	2,202	$	7,765	$	(4,318	)	$	3,447
Customer-related		4,031		(1,205	)		2,826		4,045		(692	)		3,353
Marketing-related		4,006		(1,071	)		2,935		4,016		(829	)		3,187
Contract-based		679		(589	)		90		841		(722	)		119


Total	$	15,936	$	(7,883	)	$	8,053	$	16,667	$	(6,561	)	$	10,106

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,	2018				2017

Technology-based	$	178		4 years	$	2,265		2 years
Marketing-related		14		5 years		2,148		19 years
Contract-based		14		4 years		63		6 years
Customer-related		13		5 years		3,607		7 years


Total	$	219		5 years	$	8,083		9 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, 2018:

(In millions)


Year Ending June 30,

2019	$	1,785
2020		1,260
2021		1,043
2022		949
2023		806
Thereafter		2,210


Total	$	8,053

DEBT (Tables)

12 Months Ended

Jun. 30, 2018

Debt Disclosure [Abstract]

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 June 30, 2018		Face Value June 30, 2017		Stated Interest Rate	Effective Interest Rate


Notes

November 15, 2017	$	0	$	600	0.875%	1.084%
May 1, 2018		0		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		2,500		2,500	1.100%	1.203%
November 1, 2019		18		18	0.500%	0.500%
February 6, 2020		1,500		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		2,750		2,750	1.550%	1.642%
December 6, 2021 ⁽^a⁾		2,044		1,996	2.125%	2.233%
February 6, 2022		1,750		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		1,500		1,500	2.000%	2.101%
December 15, 2023		1,500		1,500	3.625%	3.726%
February 6, 2024		2,250		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		4,000		4,000	2.400%	2.464%
February 6, 2027		4,000		4,000	3.300%	3.383%
December 6, 2028 ⁽^a⁾		2,044		1,996	3.125%	3.218%
May 2, 2033 ⁽^a⁾		642		627	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		2,250		2,250	3.450%	3.510%
February 6, 2037		2,500		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		4,500		4,500	3.700%	3.743%
February 6, 2047		3,000		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		2,250		2,250	3.950%	4.033%
February 6, 2057		2,000		2,000	4.500%	4.528%


Total	$	76,898	$	77,837

(a)	Euro-denominated debt securities.

Maturities of Long-term Debt

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

(In millions)


Year Ending June 30,

2019	$	4,000
2020		5,518
2021		3,750
2022		8,044
2023		2,750
Thereafter		52,836


Total	$	76,898

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.

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+ Details

INCOME TAXES (Tables)

12 Months Ended

Jun. 30, 2018

Income Tax Disclosure [Abstract]

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

(In millions)


Year Ended June 30,	2018			2017			2016

Current Taxes

U.S. federal	$	19,764		$	2,739		$	545
U.S. state and local		934			30			136
Foreign		4,348			2,472			1,940


Current taxes	$	25,046		$	5,241		$	2,621

Deferred Taxes

U.S. federal	$	(4,292	)	$	(554	)	$	1,919
U.S. state and local		(458	)		269			111
Foreign		(393	)		(544	)		449


Deferred taxes	$	(5,143	)	$	(829	)	$	2,479


Provision for income taxes	$	19,903		$	4,412		$	5,100

Income (Loss) Before Income Taxes

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

(In millions)


Year Ended June 30,	2018		2017		2016

U.S.	$	11,527	$	6,843	$	5,125
Foreign		24,947		23,058		20,514


Income before income taxes	$	36,474	$	29,901	$	25,639

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

Effective Tax Rate

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,	2018		2017		2016

Federal statutory rate		28.1%		35.0%		35.0%
Effect of:
Foreign earnings taxed at lower rates		(7.8)%		(11.6)%		(14.5)%
Impacts of TCJA		37.7%		0%		0%
Phone business losses		0%		(5.7)%		1.0%
Excess tax benefits relating to stock-based compensation		(2.5)%		(2.1)%		(1.6)%
Interest, net		1.2%		1.4%		0.9%
Other reconciling items, net		(2.1)%		(2.2)%		(0.9)%


Effective rate		54.6%		14.8%		19.9%

Deferred Income Tax Assets and Liabilities

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

(In millions)


June 30,	2018				2017

Deferred Income Tax Assets

Stock-based compensation expense	$		460		$		777
Accruals, reserves, and other expenses			1,832				1,859
Loss and credit carryforwards			3,369				4,809
Depreciation and amortization			351				53
Other			56				255


Deferred income tax assets			6,068				7,753
Less valuation allowance			(3,186	)			(3,310	)


Deferred income tax assets, net of valuation allowance	$		2,882		$		4,443


Deferred Income Tax Liabilities

Foreign earnings	$	0			$	(1,134		)
Unrealized gain on investments and debt		0				(1,384		)
Unearned revenue		(639		)		(5,760		)
Depreciation and amortization		(1,103		)		(1,630		)
Other		(312		)		(21		)


Deferred income tax liabilities	$	(2,054		)	$	(9,929		)


Net deferred income tax assets (liabilities)	$	828			$	(5,486		)


Reported As

Other long-term assets	$	1,369			$	248
Long-term deferred income tax liabilities		(541		)		(5,734		)


Net deferred income tax assets (liabilities)	$	828			$	(5,486		)

Changes in Unrecognized Tax Benefits

(In millions)


Year Ended June 30,	2018			2017			2016

Balance, beginning of year	$	11,737		$	10,164		$	9,599
Decreases related to settlements		(193	)		(4	)		(201	)
Increases for tax positions related to the current year		1,445			1,277			1,086
Increases for tax positions related to prior years		151			397			115
Decreases for tax positions related to prior years		(1,176	)		(49	)		(317	)
Decreases due to lapsed statutes of limitations		(3	)		(48	)		(118	)


Balance, end of year	$	11,961		$	11,737		$	10,164

UNEARNED REVENUE (Tables)

12 Months Ended

Jun. 30, 2018

Revenue From Contract With Customer [Abstract]

Unearned Revenue by Segment

Unearned revenue by segment was as follows:

(In millions)


June 30,	2018		2017

Productivity and Business Processes	$	14,864	$	12,692
Intelligent Cloud		14,706		11,152
More Personal Computing		3,150		2,812


Total	$	32,720	$	26,656

Changes in Unearned Revenue

(In millions)


Year Ended June 30, 2018

Balance, beginning of period	$	26,656
Deferral of revenue		61,142
Recognition of unearned revenue		(55,078	)


Balance, end of period	$	32,720

LEASES (Tables)

12 Months Ended

Jun. 30, 2018

Leases [Abstract]

Components of Lease Expense

The components of lease expense were as follows:

(In millions)


Year Ended June 30,	2018			2017		2016

Operating lease cost	$	1,585	$	1,412	$	936


Finance lease cost:
Amortization of right-of-use assets	$	243	$	104	$	28
Interest on lease liabilities		175		68		28


Total finance lease cost	$	418	$	172	$	56

Supplemental Cash Flow Information Related to Leases

Supplemental cash flow information related to leases was as follows:

(In millions)


Year Ended June 30,	2018			2017		2016

Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	1,522	$	1,157	$	936
Operating cash flows from finance leases		175		68		28
Financing cash flows from finance leases		144		46		6

Right-of-use assets obtained in exchange for lease obligations:
Operating leases		1,571		1,270		1,062
Finance leases		1,933		1,773		413

Supplemental Balance Sheet Information Related to Leases

Supplemental balance sheet information related to leases was as follows:

(In millions, except lease term and discount rate)


June 30,	2018			2017

Operating Leases

Operating lease right-of-use assets	$	6,686		$	6,555


Other current liabilities	$	1,399		$	1,423
Operating lease liabilities		5,568			5,372


Total operating lease liabilities	$	6,967		$	6,795


Finance Leases

Property and equipment, gross	$	4,543		$	2,658
Accumulated depreciation		(404	)		(161	)


Property and equipment, net	$	4,139		$	2,497


Other current liabilities	$	176		$	113
Other long-term liabilities		4,125			2,425


Total finance lease liabilities	$	4,301		$	2,538

Weighted Average Remaining Lease Term

Operating leases		7 years			7 years
Finance leases		13 years			13 years

Weighted Average Discount Rate

Operating leases		2.7%			2.5%
Finance leases		5.2%			4.7%

Maturities of Lease Liabilities

Maturities of lease liabilities were as follows:

(In millions)


Year Ending June 30,	Operating Leases			Finance Leases

2019	$	1,492		$	386
2020		1,347			393
2021		1,086			401
2022		902			408
2023		721			410
Thereafter		2,157			4,036


Total lease payments		7,705			6,034
Less imputed interest		(738	)		(1,733	)


Total	$	6,967		$	4,301

STOCKHOLDERS' EQUITY (Tables)

12 Months Ended

Jun. 30, 2018

Shares of Common Stock Outstanding

Shares of common stock outstanding were as follows:

(In millions)


Year Ended June 30,	2018			2017			2016

Balance, beginning of year		7,708			7,808			8,027
Issued		68			70			75
Repurchased		(99	)		(170	)		(294	)


Balance, end of year		7,677			7,708			7,808

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,	2018				2017				2016

First Quarter		22	$	1,600		63	$	3,550		89	$	4,000
Second Quarter		22		1,800		59		3,533		66		3,600
Third Quarter		34		3,100		25		1,600		69		3,600
Fourth Quarter		21		2,100		23		1,600		70		3,600


Total		99	$	8,600		170	$	10,283		294	$	14,800

Dividends Declared

Our Board of Directors declared the following dividends:

Declaration Date

Dividend

Per Share

Record Date

Amount

Payment Date

Fiscal Year 2018

(in millions)

September 19, 2017

0.42

November 16, 2017

3,238

December 14, 2017

November 29, 2017

0.42

February 15, 2018

3,232

March 8, 2018

March 12, 2018

0.42

May 17, 2018

3,226

June 14, 2018

June 13, 2018

0.42

August 16, 2018

3,224

September 13, 2018

Fiscal Year 2017

September 20, 2016

0.39

November 17, 2016

3,024

December 8, 2016

November 30, 2016

0.39

February 16, 2017

3,012

March 9, 2017

March 14, 2017

0.39

May 18, 2017

3,009

June 8, 2017

June 13, 2017

0.39

August 17, 2017

3,003

September 14, 2017

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)

12 Months Ended

Jun. 30, 2018

Summary of Changes in Accumulated Other Comprehensive Income (Loss) by Component

The following table summarizes the changes in accumulated other comprehensive income (loss) by component

(In millions)


Year Ended June 30,	2018			2017			2016

Derivatives

Balance, beginning of period	$	134		$	352		$	590
Unrealized gains, net of tax of $11, $4, and $24		218			328			351
Reclassification adjustments for gains included in revenue		(185	)		(555	)		(625	)
Tax expense included in provision for income taxes		6			9			36


Amounts reclassified from accumulated other comprehensive income		(179	)		(546	)		(589	)


Net change related to derivatives, net of tax of $5, $(5), and $(12)		39			(218	)		(238	)


Balance, end of period	$	173		$	134		$	352


Investments

Balance, beginning of period	$	1,825		$	2,941		$	3,169
Unrealized gains (losses), net of tax of $(427), $267, and $120		(1,146	)		517			219
Reclassification adjustments for gains included in other income (expense), net		(2,309	)		(2,513	)		(688	)
Tax expense included in provision for income taxes		738			880			241


Amounts reclassified from accumulated other comprehensive income		(1,571	)		(1,633	)		(447	)


Net change related to investments, net of tax of $(1,165), $(613), and $(121)		(2,717	)		(1,116	)		(228	)


Balance, end of period	$	(892	)	$	1,825		$	2,941


Translation Adjustments and Other

Balance, beginning of period	$	(1,332	)	$	(1,499	)	$	(1,237	)
Translation adjustments and other, net of tax effects of $0, $9, and $(33)		(178	)		167			(262	)


Balance, end of period	$	(1,510	)	$	(1,332	)	$	(1,499	)

Cumulative effect of accounting change		42			0			0


Accumulated other comprehensive income (loss), end of period	$	(2,187	)	$	627		$	1,794

EMPLOYEE STOCK AND SAVINGS PLANS (Tables)

12 Months Ended

Jun. 30, 2018

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

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,	2018		2017		2016

Stock-based compensation expense	$	3,940	$	3,266	$	2,668
Income tax benefits related to stock-based compensation		823		1,066		882

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,	2018		2017		2016

Dividends per share (quarterly amounts)		$0.39 - $0.42		$0.36 - $0.39		$0.31 - $0.36
Interest rates		1.7% - 2.9%		1.2% - 2.2%		1.1% - 1.8%

Stock Plan Activity

During fiscal year 2018, the following activity occurred under our stock plans:

Shares			Weighted Average Grant-Date Fair Value


(In millions)

Stock Awards

Nonvested balance, beginning of year	201		$	46.32
Granted ^(a)	70			75.88
Vested	(80	)		45.74
Forfeited	(17	)		53.41


Nonvested balance, end of year	174			57.85

(a)	Includes 3 million, 2 million, and 1 million of PSUs granted at target and performance adjustments above target levels for fiscal years 2018, 2017, and 2016, respectively.

Employee Purchased Shares

Employees purchased the following shares during the periods presented:

(Shares in millions)


Year Ended June 30,	2018		2017		2016

Shares purchased		13		13		15
Average price per share	$	76.40	$	56.36	$	44.83

SEGMENT INFORMATION AND GEOGRAPHIC DATA (Tables)

12 Months Ended

Jun. 30, 2018

Segment Reporting [Abstract]

Segment Revenue

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

(In millions)


Year Ended June 30,		2018		2017			2016

Revenue

Productivity and Business Processes	$	35,865	$	29,870		$	25,792
Intelligent Cloud		32,219		27,407			24,952
More Personal Computing		42,276		39,294			40,410


Total	$	110,360	$	96,571		$	91,154


Operating Income (Loss)

Productivity and Business Processes	$	12,924	$	11,389		$	11,756
Intelligent Cloud		11,524		9,127			9,249
More Personal Computing		10,610		8,815			6,183
Corporate and Other		0		(306	)		(1,110	)


Total	$	35,058	$	29,025		$	26,078

Segment Operating Income (Loss)

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

(In millions)


Year Ended June 30,		2018		2017			2016

Revenue

Productivity and Business Processes	$	35,865	$	29,870		$	25,792
Intelligent Cloud		32,219		27,407			24,952
More Personal Computing		42,276		39,294			40,410


Total	$	110,360	$	96,571		$	91,154


Operating Income (Loss)

Productivity and Business Processes	$	12,924	$	11,389		$	11,756
Intelligent Cloud		11,524		9,127			9,249
More Personal Computing		10,610		8,815			6,183
Corporate and Other		0		(306	)		(1,110	)


Total	$	35,058	$	29,025		$	26,078

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,	2018		2017		2016

United States ^(a)	$	55,926	$	51,078	$	46,416
Other countries		54,434		45,493		44,738


Total	$	110,360	$	96,571	$	91,154

(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, was as follows:

(In millions)


Year Ended June 30,	2018		2017		2016

Office products and cloud services	$	28,316	$	25,573	$	23,868
Server products and cloud services		26,129		21,649		19,062
Windows		19,518		18,593		17,548
Gaming		10,353		9,051		9,202
Search advertising		7,012		6,219		5,428
Enterprise Services		5,846		5,542		5,659
Devices		5,134		5,062		7,888
LinkedIn		5,259		2,271		0
Other		2,793		2,611		2,499


Total	$	110,360	$	96,571	$	91,154

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

(In millions)


June 30,	2018		2017		2016

United States	$	44,501	$	42,730	$	25,145
Ireland		12,843		12,889		2,099
Luxembourg		6,856		6,854		6,868
Other countries		15,682		13,044		11,047


Total	$	79,882	$	75,517	$	45,159

QUARTERLY INFORMATION (UNAUDITED) (Tables)

12 Months Ended

Jun. 30, 2018

Quarterly Financial Information Disclosure [Abstract]

Quarterly Information (Unaudited)

(In millions, except per share amounts)


Quarter Ended	September 30		December 31			March 31		June 30		Total

Fiscal Year 2018

Revenue	$	24,538	$	28,918		$	26,819	$	30,085	$	110,360
Gross margin		16,260		17,854			17,550		20,343		72,007
Operating income		7,708		8,679			8,292		10,379		35,058
Net income (loss) ^(a)		6,576		(6,302	)		7,424		8,873		16,571
Basic earnings (loss) per share		0.85		(0.82	)		0.96		1.15		2.15
Diluted earnings (loss) per share ^(b)		0.84		(0.82	)		0.95		1.14		2.13

Fiscal Year 2017 ^(c)

Revenue	$	21,928	$	25,826	$	23,212	$	25,605		$	96,571
Gross margin		14,084		15,925		15,152		17,149			62,310
Operating income		6,715		7,905		6,723		7,682	^(d)		29,025	^(d)
Net income		5,667		6,267		5,486		8,069	^(d)		25,489	^(d)
Basic earnings per share		0.73		0.81		0.71		1.05			3.29
Diluted earnings per share		0.72		0.80		0.70		1.03	^(d)		3.25	^(d)

(a)	Reflects the net charge (benefit) related to the TCJA of $13.8 billion for the second quarter, $(104) million for the fourth quarter, and $13.7 billion for fiscal year 2018.

(b)	Reflects the net charge (benefit) related to the TCJA, which decreased (increased) diluted EPS $1.78 for the second quarter, $(0.01) for the fourth quarter, and $1.75 for fiscal year 2018.

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

(d)	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 $0.04, respectively.

Accounting Policies - Additional Information (Detail) - USD ($) $ in Millions		12 Months Ended
	Apr. 01, 2018	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016	Jul. 01, 2018	Jul. 01, 2016
Significant Accounting Policies [Line Items]
Current and long-term accounts receivable, net of allowance for doubtful accounts						$ 22,300
Long-term accounts receivable, net of allowance for doubtful accounts		$ 1,800	$ 1,700
Description of payment terms in contract with customer		Payment terms and conditions vary by contract type, although terms generally include a requirement of payment within 30 to 60 days.
Advertising expense		$ 1,600	1,500	$ 1,600
Retained earnings		13,682	17,769
Long-term deferred tax liabilities		541	5,734
Other current assets		$ 6,751	$ 5,103
Accounting Standards Update 2018-02
Significant Accounting Policies [Line Items]
Reclassification of net tax benefit from AOCI to retained earnings	$ 42
Accounting Standards Update 2016-16 \| Scenario Plan
Significant Accounting Policies [Line Items]
Retained earnings					$ 550
Long-term deferred tax assets					2,800
Long-term deferred tax liabilities					2,100
Other current assets					$ (150)
Lower Limit
Significant Accounting Policies [Line Items]
Estimated useful lives of intangible assets		1 year
Lower Limit \| Software
Significant Accounting Policies [Line Items]
Estimated useful lives		3 years
Lower Limit \| Computer Equipment
Significant Accounting Policies [Line Items]
Estimated useful lives		2 years
Lower Limit \| Buildings and Improvements
Significant Accounting Policies [Line Items]
Estimated useful lives		5 years
Lower Limit \| Leasehold Improvements
Significant Accounting Policies [Line Items]
Estimated useful lives		3 years
Lower Limit \| Furniture and Fixtures
Significant Accounting Policies [Line Items]
Estimated useful lives		1 year
Upper Limit
Significant Accounting Policies [Line Items]
Estimated useful lives of intangible assets		20 years
Upper Limit \| Software
Significant Accounting Policies [Line Items]
Estimated useful lives		7 years
Upper Limit \| Computer Equipment
Significant Accounting Policies [Line Items]
Estimated useful lives		3 years
Upper Limit \| Buildings and Improvements
Significant Accounting Policies [Line Items]
Estimated useful lives		15 years
Upper Limit \| Leasehold Improvements
Significant Accounting Policies [Line Items]
Estimated useful lives		20 years
Upper Limit \| Furniture and Fixtures
Significant Accounting Policies [Line Items]
Estimated useful lives		10 years

Allowance for Doubtful Accounts (Detail) - Allowance for doubtful accounts - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Valuation And Qualifying Accounts Disclosure [Line Items]
Balance, beginning of period	$ 361	$ 409	$ 289
Charged to costs and other	134	58	175
Write-offs	(98)	(106)	(55)
Balance, end of period	397	361	409
Accounts receivable, net of allowance for doubtful accounts
Valuation And Qualifying Accounts Disclosure [Line Items]
Balance, beginning of period	345	392
Balance, end of period	377	345	392
Other Long-term Assets
Valuation And Qualifying Accounts Disclosure [Line Items]
Balance, beginning of period	16	17
Balance, end of period	$ 20	$ 16	$ 17

Impact of Tax Cuts and Jobs Act on Previously Reported Balances of Prior Period Income Tax Liabilities (Detail) - USD ($) $ in Millions	Jun. 30, 2018	Jun. 30, 2017
Error Corrections And Prior Period Adjustments Restatement [Line Items]
Long-term income taxes	$ 30,265	$ 13,485
Other long-term liabilities	$ 5,211	3,549
As Previously Reported
Error Corrections And Prior Period Adjustments Restatement [Line Items]
Long-term income taxes		0
Other long-term liabilities		$ 17,034

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

3 Months Ended

12 Months Ended

Jun. 30, 2018

Mar. 31, 2018

Dec. 31, 2017

Sep. 30, 2017

Jun. 30, 2017

Mar. 31, 2017

^[1]

Dec. 31, 2016

^[1]

Sep. 30, 2016

^[1]

Jun. 30, 2018

Jun. 30, 2017

Jun. 30, 2016

Jul. 01, 2016

New Accounting Pronouncements Or Change In Accounting Principle [Line Items]

$ 30,085

$ 26,819

$ 28,918

$ 24,538

$ 25,605

^[1]

$ 23,212

$ 25,826

$ 21,928

$ 110,360

$ 96,571

^[1]

$ 91,154

19,903

4,412

5,100

Diluted earnings per share

$ 8,873

^[2]

$ 7,424

^[2]

$ (6,302)

^[2]

$ 6,576

^[2]

$ 8,069

^[1],[3]

$ 5,486

$ 6,267

$ 5,667

$ 16,571

^[2]

$ 25,489

^[1],[3]

$ 20,539

$ 1.14

^[4]

$ 0.95

^[4]

$ (0.82)

^[4]

$ 0.84

^[4]

$ 1.03

^[1],[3]

$ 0.70

$ 0.80

$ 0.72

$ 2.13

^[4]

$ 3.25

^[1],[3]

$ 2.56

Accounts receivable, net of allowance for doubtful accounts

$ 26,481

$ 22,431

$ 26,481

$ 22,431

6,686

6,555

6,686

6,555

11,179

32,720

26,656

32,720

26,656

$ 22,200

541

5,734

541

5,734

5,568

5,372

5,568

5,372

24,621

New Accounting Pronouncements Or Change In Accounting Principle [Line Items]

$ 82,718

87,711

$ 82,718

87,711

$ 83,090

As Previously Reported

89,950

85,320

1,945

2,953

Diluted earnings per share

$ 21,204

$ 16,798

$ 2.71

$ 2.10

Accounts receivable, net of allowance for doubtful accounts

19,792

$ 19,792

11,147

44,479

531

23,464

New Revenue Standard Adjustment | Restatement Adjustment

72,394

New Accounting Pronouncements Or Change In Accounting Principle [Line Items]

6,621

$ 5,834

2,467

2,147

Diluted earnings per share

$ 4,285

$ 3,741

$ 0.54

$ 0.46

Accounts receivable, net of allowance for doubtful accounts

2,639

$ 2,639

(17,823)

5,203

(26)

New Lease Standard Adjustment | Restatement Adjustment

15,317

Accounts receivable, net of allowance for doubtful accounts

6,555

5,372

1,183

Earnings Per Share Basic And Diluted [Abstract]

$ 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 net charge (benefit) related to the TCJA of $13.8 billion for the second quarter, $(104) million for the fourth quarter, and $13.7 billion for fiscal year 2018.
[3]	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 $0.04, respectively.
[4]	Reflects the net charge (benefit) related to the TCJA, which decreased (increased) diluted EPS $1.78 for the second quarter, $(0.01) for the fourth quarter, and $1.75 for fiscal year 2018.

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

3 Months Ended

12 Months Ended

Jun. 30, 2018

Mar. 31, 2018

Dec. 31, 2017

Sep. 30, 2017

Jun. 30, 2017

^[3]

Mar. 31, 2017

^[3]

Dec. 31, 2016

^[3]

Sep. 30, 2016

^[3]

Jun. 30, 2018

Jun. 30, 2017

Jun. 30, 2016

Net income available for common shareholders (A)

$ 8,873

^[1]

$ 7,424

^[1]

$ (6,302)

^[1]

$ 6,576

^[1]

$ 8,069

^[2]

$ 5,486

$ 6,267

$ 5,667

$ 16,571

^[1]

$ 25,489

^[2],[3]

$ 20,539

Weighted average outstanding shares of common stock (B)

7,700

7,746

7,925

Dilutive effect of stock-based awards

Common stock and common stock equivalents (C)

7,794

7,832

8,013

Earnings Per Share

Basic (A/B)

$ 1.15

$ 0.96

$ (0.82)

$ 0.85

$ 1.05

$ 0.71

$ 0.81

$ 0.73

$ 2.15

$ 3.29

^[3]

$ 2.59

Diluted (A/C)

$ 1.14

^[4]

$ 0.95

^[4]

$ (0.82)

^[4]

$ 0.84

^[4]

$ 1.03

^[2]

$ 0.70

$ 0.80

$ 0.72

$ 2.13

^[4]

$ 3.25

^[2],[3]

$ 2.56

[1]	Reflects the net charge (benefit) related to the TCJA of $13.8 billion for the second quarter, $(104) million for the fourth quarter, and $13.7 billion for fiscal year 2018.
[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 $0.04, 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.
[4]	Reflects the net charge (benefit) related to the TCJA, which decreased (increased) diluted EPS $1.78 for the second quarter, $(0.01) for the fourth quarter, and $1.75 for fiscal year 2018.

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

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(19))
-URI http://asc.fasb.org/extlink&oid=114873790&loc=SL114874131-224263

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
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-URI http://asc.fasb.org/extlink&oid=109260490&loc=d3e1337-109256

Reference 3: http://www.xbrl.org/2003/role/exampleRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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-SubTopic 10
-Section 45
-Paragraph 60B
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=109260490&loc=SL5780133-109256

+ Details

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

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
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+ Details

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

Cash and cash equivalents

Components of Other Income (Expense), Net (Detail) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Other Income And Expenses [Abstract]
Dividends and interest income	$ 2,214	$ 1,387	$ 903
Interest expense	(2,733)	(2,222)	(1,243)
Net recognized gains on investments	2,399	2,583	668
Net losses on derivatives	(187)	(510)	(443)
Net losses on foreign currency remeasurements	(218)	(111)	(129)
Other, net	(59)	(251)	(195)
Total	$ 1,416	$ 876	$ (439)

Net Recognized Gains (Losses) on Investments (Detail) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Other Income And Expenses [Abstract]
Other-than-temporary impairments of investments	$ (47)	$ (55)	$ (322)
Realized gains from sales of available-for-sale securities	3,478	3,064	1,376
Realized losses from sales of available-for-sale securities	(1,032)	(426)	(386)
Total	$ 2,399	$ 2,583	$ 668

Investment Components, Including Associated Derivatives (Detail) - USD ($) $ in Millions	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2015
Cash, Cash Equivalents and Investments [Line Items]
Cost Basis	$ 136,667	$ 136,160
Unrealized Gains	220	3,267
Unrealized Losses	(1,257)	(423)
Recorded Basis	135,630	139,004
Cash and cash equivalents	11,946	7,663	$ 6,510	$ 5,595
Short-term Investments	121,822	125,318
Equity and Other Investments	1,862	6,023
Cash
Cash, Cash Equivalents and Investments [Line Items]
Cash	3,942	3,624
Unrealized Gains	0	0
Unrealized Losses	0	0
Cash and cash equivalents	3,942	3,624
Short-term Investments	0	0
Equity and Other Investments	0	0
Mutual funds
Cash, Cash Equivalents and Investments [Line Items]
Cost Basis	246	1,478
Unrealized Gains	0	0
Unrealized Losses	0	0
Recorded Basis	246	1,478
Cash and cash equivalents	246	1,478
Short-term Investments	0	0
Equity and Other Investments	0	0
Commercial paper
Cash, Cash Equivalents and Investments [Line Items]
Cost Basis	2,513	319
Unrealized Gains	0	0
Unrealized Losses	0	0
Recorded Basis	2,513	319
Cash and cash equivalents	2,215	69
Short-term Investments	298	250
Equity and Other Investments	0	0
Certificates of deposit
Cash, Cash Equivalents and Investments [Line Items]
Cost Basis	2,058	1,358
Unrealized Gains	0	0
Unrealized Losses	0	0
Recorded Basis	2,058	1,358
Cash and cash equivalents	1,865	972
Short-term Investments	193	386
Equity and Other Investments	0	0
U.S. government and agency securities
Cash, Cash Equivalents and Investments [Line Items]
Cost Basis	109,862	112,119
Unrealized Gains	62	85
Unrealized Losses	(1,167)	(360)
Recorded Basis	108,757	111,844
Cash and cash equivalents	3,678	16
Short-term Investments	105,079	111,828
Equity and Other Investments	0	0
Foreign government bonds
Cash, Cash Equivalents and Investments [Line Items]
Cost Basis	5,182	5,276
Unrealized Gains	1	2
Unrealized Losses	(10)	(13)
Recorded Basis	5,173	5,265
Cash and cash equivalents	0	1,504
Short-term Investments	5,173	3,761
Equity and Other Investments	0	0
Mortgage- and asset-backed securities
Cash, Cash Equivalents and Investments [Line Items]
Cost Basis	3,868	3,921
Unrealized Gains	4	14
Unrealized Losses	(13)	(4)
Recorded Basis	3,859	3,931
Cash and cash equivalents	0	0
Short-term Investments	3,859	3,931
Equity and Other Investments	0	0
Corporate notes and bonds
Cash, Cash Equivalents and Investments [Line Items]
Cost Basis	6,947	4,786
Unrealized Gains	21	61
Unrealized Losses	(56)	(12)
Recorded Basis	6,912	4,835
Cash and cash equivalents	0	0
Short-term Investments	6,912	4,835
Equity and Other Investments	0	0
Municipal securities
Cash, Cash Equivalents and Investments [Line Items]
Cost Basis	271	284
Unrealized Gains	37	43
Unrealized Losses	(1)	0
Recorded Basis	307	327
Cash and cash equivalents	0	0
Short-term Investments	307	327
Equity and Other Investments	0	0
Common and preferred stock
Cash, Cash Equivalents and Investments [Line Items]
Cost Basis	1,220	2,472
Unrealized Gains	95	3,062
Unrealized Losses	(10)	(34)
Recorded Basis	1,305	5,500
Cash and cash equivalents	0	0
Short-term Investments	0	0
Equity and Other Investments	1,305	5,500
Other investments
Cash, Cash Equivalents and Investments [Line Items]
Cost Basis	558	523
Unrealized Gains	0	0
Unrealized Losses	0	0
Recorded Basis	558	523
Cash and cash equivalents	0	0
Short-term Investments	1	0
Equity and Other Investments	$ 557	$ 523

Investments - Additional Information (Detail) - USD ($) $ in Millions	Jun. 30, 2018	Jun. 30, 2017
U.S. Government and Agency Securities
Investment [Line Items]
Collateral received	$ 1,800	$ 3,700
Fair Value, Measurements, Nonrecurring
Investment [Line Items]
Recorded basis of common and preferred stock that are restricted for more than one year or are not publicly traded	$ 999	$ 1,073

Unrealized Losses on Investments (Detail) - USD ($) $ in Millions	Jun. 30, 2018	Jun. 30, 2017
Unrealized Losses on Investments [Line Items]
Less than 12 Months - Fair Value	$ 91,112	$ 93,370
Less than 12 Months - Unrealized Losses	(1,130)	(367)
12 Months or Greater - Fair Value	4,877	917
12 Months or Greater - Unrealized Losses	(127)	(56)
Total Fair Value	95,989	94,287
Total Unrealized Losses	(1,257)	(423)
U.S. government and agency securities
Unrealized Losses on Investments [Line Items]
Less than 12 Months - Fair Value	82,352	87,558
Less than 12 Months - Unrealized Losses	(1,064)	(348)
12 Months or Greater - Fair Value	4,459	371
12 Months or Greater - Unrealized Losses	(103)	(12)
Total Fair Value	86,811	87,929
Total Unrealized Losses	(1,167)	(360)
Foreign government bonds
Unrealized Losses on Investments [Line Items]
Less than 12 Months - Fair Value	3,457	4,006
Less than 12 Months - Unrealized Losses	(7)	(2)
12 Months or Greater - Fair Value	13	23
12 Months or Greater - Unrealized Losses	(3)	(11)
Total Fair Value	3,470	4,029
Total Unrealized Losses	(10)	(13)
Mortgage- and asset-backed securities
Unrealized Losses on Investments [Line Items]
Less than 12 Months - Fair Value	2,072	1,068
Less than 12 Months - Unrealized Losses	(9)	(3)
12 Months or Greater - Fair Value	96	198
12 Months or Greater - Unrealized Losses	(4)	(1)
Total Fair Value	2,168	1,266
Total Unrealized Losses	(13)	(4)
Corporate notes and bonds
Unrealized Losses on Investments [Line Items]
Less than 12 Months - Fair Value	3,111	669
Less than 12 Months - Unrealized Losses	(43)	(8)
12 Months or Greater - Fair Value	301	177
12 Months or Greater - Unrealized Losses	(13)	(4)
Total Fair Value	3,412	846
Total Unrealized Losses	(56)	(12)
Municipal securities
Unrealized Losses on Investments [Line Items]
Less than 12 Months - Fair Value	45
Less than 12 Months - Unrealized Losses	(1)
12 Months or Greater - Fair Value	0
12 Months or Greater - Unrealized Losses	0
Total Fair Value	45
Total Unrealized Losses	(1)
Common and preferred stock
Unrealized Losses on Investments [Line Items]
Less than 12 Months - Fair Value	75	69
Less than 12 Months - Unrealized Losses	(6)	(6)
12 Months or Greater - Fair Value	8	148
12 Months or Greater - Unrealized Losses	(4)	(28)
Total Fair Value	83	217
Total Unrealized Losses	$ (10)	$ (34)

Debt Investment Maturities (Detail) $ in Millions	Jun. 30, 2018 USD ($)
Cost Basis
Due in one year or less	$ 31,590
Due after one year through five years	76,422
Due after five years through 10 years	21,765
Due after 10 years	924
Total	130,701
Estimated Fair Value
Due in one year or less	31,451
Due after one year through five years	75,810
Due after five years through 10 years	21,396
Due after 10 years	922
Total	$ 129,579

Derivatives - Additional Information (Detail) - USD ($)	12 Months Ended
Derivatives - Additional Information (Detail) - USD ($)	Jun. 30, 2018	Jun. 30, 2017
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	$ 179,000,000
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	$ 13,400,000,000	$ 10,600,000,000
Derivatives Sold \| Equity Contracts
Derivative [Line Items]
Notional amounts	5,000,000	2,400,000,000
Derivatives Sold \| Equity Contracts \| Designated Hedge Derivatives
Derivative [Line Items]
Notional amounts		1,800,000,000
Derivatives Sold \| Interest Rate Contracts \| Non-designated Hedge Derivatives
Derivative [Line Items]
Notional amounts	390,000,000	352,000,000
Derivatives Sold \| Credit Contracts \| Non-designated Hedge Derivatives
Derivative [Line Items]
Notional amounts	82,000,000	63,000,000
Derivatives Sold \| Cash flow hedging \| Foreign Exchange Contracts
Derivative [Line Items]
Notional amounts	6,100,000,000	8,900,000,000
Derivatives Sold \| Fair value hedging \| Foreign Exchange Contracts
Derivative [Line Items]
Notional amounts	5,000,000,000	5,100,000,000
Derivatives Purchased \| Foreign Exchange Contracts \| Non-designated Hedge Derivatives
Derivative [Line Items]
Notional amounts	9,400,000,000	8,800,000,000
Derivatives Purchased \| Equity Contracts
Derivative [Line Items]
Notional amounts	49,000,000	1,900,000,000
Derivatives Purchased \| Equity Contracts \| Designated Hedge Derivatives
Derivative [Line Items]
Notional amounts		1,600,000,000
Derivatives Purchased \| Interest Rate Contracts \| Non-designated Hedge Derivatives
Derivative [Line Items]
Notional amounts	306,000,000	233,000,000
Derivatives Purchased \| Mortgage-backed securities \| Non-designated Hedge Derivatives
Derivative [Line Items]
Notional amounts	568,000,000	567,000,000
Derivatives Purchased \| Credit Contracts \| Non-designated Hedge Derivatives
Derivative [Line Items]
Notional amounts	$ 4,000,000	$ 267,000,000

Fair Values of Derivative Instruments (Detail) - USD ($) $ in Millions	Jun. 30, 2018	Jun. 30, 2017
Short-term Investments
Derivatives, Fair Value [Line Items]
Derivative Assets	$ 118	$ 100
Net amount, assets	99	80
Short-term Investments \| Eligible for Offsetting
Derivatives, Fair Value [Line Items]
Derivative Assets	113	100
Gross amounts of derivatives offset on the balance sheet, assets	(14)	(20)
Net amounts presented on the balance sheet, assets	99	80
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	395	336
Net amount, assets	260	204
Other Current Assets \| Eligible for Offsetting
Derivatives, Fair Value [Line Items]
Derivative Assets	395	336
Gross amounts of derivatives offset on the balance sheet, assets	(135)	(132)
Net amounts presented on the balance sheet, assets	260	204
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	0	67
Net amount, assets	0	0
Equity and Other Investments \| Eligible for Offsetting
Derivatives, Fair Value [Line Items]
Derivative Assets	0	67
Gross amounts of derivatives offset on the balance sheet, assets	0	(67)
Net amounts presented on the balance sheet, assets	0	0
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	25	6
Net amount, assets	22	(2)
Other Long-term Assets \| Eligible for Offsetting
Derivatives, Fair Value [Line Items]
Derivative Assets	25	6
Gross amounts of derivatives offset on the balance sheet, assets	(3)	(8)
Net amounts presented on the balance sheet, assets	22	(2)
Gross amounts of derivatives not offset on the balance sheet, assets	0	0
Cash collateral received, assets	0	0
Other Current Liabilities
Derivatives, Fair Value [Line Items]
Derivative Liabilities	(203)	(337)
Net amount, liabilities	(288)	(341)
Other Current Liabilities \| Eligible for Offsetting
Derivatives, Fair Value [Line Items]
Derivative Liabilities	(203)	(334)
Gross amounts of derivatives offset on the balance sheet, liabilities	150	221
Net amounts presented on the balance sheet, liabilities	(53)	(113)
Gross amounts of derivatives not offset on the balance sheet, liabilities	0	0
Cash collateral received, liabilities	(235)	(228)
Other Long-term Liabilities
Derivatives, Fair Value [Line Items]
Derivative Liabilities	(4)	(8)
Net amount, liabilities	(1)	(1)
Other Long-term Liabilities \| Eligible for Offsetting
Derivatives, Fair Value [Line Items]
Derivative Liabilities	(4)	(8)
Gross amounts of derivatives offset on the balance sheet, liabilities	3	7
Net amounts presented on the balance sheet, liabilities	(1)	(1)
Gross amounts of derivatives not offset on the balance sheet, liabilities	0	0
Cash collateral received, liabilities	0	0
Non-designated Hedge Derivatives \| Short-term Investments
Derivatives, Fair Value [Line Items]
Derivative Assets	23	20
Non-designated Hedge Derivatives \| Short-term Investments \| Foreign Exchange Contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	10	9
Non-designated Hedge Derivatives \| Short-term Investments \| Equity Contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	2	3
Non-designated Hedge Derivatives \| Short-term Investments \| Interest Rate Contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	11	3
Non-designated Hedge Derivatives \| Short-term Investments \| Credit Contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	0	5
Non-designated Hedge Derivatives \| Other Current Assets
Derivatives, Fair Value [Line Items]
Derivative Assets	221	203
Non-designated Hedge Derivatives \| Other Current Assets \| Foreign Exchange Contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	221	203
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	25	6
Non-designated Hedge Derivatives \| Other Long-term Assets \| Foreign Exchange Contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	25	6
Non-designated Hedge Derivatives \| Other Long-term Assets \| Equity Contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	0	0
Non-designated Hedge Derivatives \| Other Long-term Assets \| Interest Rate Contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	0	0
Non-designated Hedge Derivatives \| Other Long-term Assets \| Credit Contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	0	0
Non-designated Hedge Derivatives \| Other Current Liabilities
Derivatives, Fair Value [Line Items]
Derivative Liabilities	(203)	(148)
Non-designated Hedge Derivatives \| Other Current Liabilities \| Foreign Exchange Contracts
Derivatives, Fair Value [Line Items]
Derivative Liabilities	(193)	(134)
Non-designated Hedge Derivatives \| Other Current Liabilities \| Equity Contracts
Derivatives, Fair Value [Line Items]
Derivative Liabilities	(7)	(6)
Non-designated Hedge Derivatives \| Other Current Liabilities \| Interest Rate Contracts
Derivatives, Fair Value [Line Items]
Derivative Liabilities	(2)	(7)
Non-designated Hedge Derivatives \| Other Current Liabilities \| Credit Contracts
Derivatives, Fair Value [Line Items]
Derivative Liabilities	(1)	(1)
Non-designated Hedge Derivatives \| Other Long-term Liabilities
Derivatives, Fair Value [Line Items]
Derivative Liabilities	(4)	(8)
Non-designated Hedge Derivatives \| Other Long-term Liabilities \| Foreign Exchange Contracts
Derivatives, Fair Value [Line Items]
Derivative Liabilities	(4)	(8)
Non-designated Hedge Derivatives \| Other Long-term Liabilities \| Equity Contracts
Derivatives, Fair Value [Line Items]
Derivative Liabilities	0	0
Non-designated Hedge Derivatives \| Other Long-term Liabilities \| Interest Rate Contracts
Derivatives, Fair Value [Line Items]
Derivative Liabilities	0	0
Non-designated Hedge Derivatives \| Other Long-term Liabilities \| Credit Contracts
Derivatives, Fair Value [Line Items]
Derivative Liabilities	0	0
Designated Hedge Derivatives \| Short-term Investments
Derivatives, Fair Value [Line Items]
Derivative Assets	95	80
Designated Hedge Derivatives \| Short-term Investments \| Foreign Exchange Contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	95	80
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	174	133
Designated Hedge Derivatives \| Other Current Assets \| Foreign Exchange Contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	174	133
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	0	67
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	0	67
Designated Hedge Derivatives \| Other Long-term Assets
Derivatives, Fair Value [Line Items]
Derivative Assets	0	0
Designated Hedge Derivatives \| Other Long-term Assets \| Foreign Exchange Contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	0	0
Designated Hedge Derivatives \| Other Long-term Assets \| Equity Contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	0	0
Designated Hedge Derivatives \| Other Current Liabilities
Derivatives, Fair Value [Line Items]
Derivative Liabilities	0	(189)
Designated Hedge Derivatives \| Other Current Liabilities \| Foreign Exchange Contracts
Derivatives, Fair Value [Line Items]
Derivative Liabilities	0	(3)
Designated Hedge Derivatives \| Other Current Liabilities \| Equity Contracts
Derivatives, Fair Value [Line Items]
Derivative Liabilities	0	(186)
Designated Hedge Derivatives \| Other Long-term Liabilities
Derivatives, Fair Value [Line Items]
Derivative Liabilities	0	0
Designated Hedge Derivatives \| Other Long-term Liabilities \| Foreign Exchange Contracts
Derivatives, Fair Value [Line Items]
Derivative Liabilities	0	0
Designated Hedge Derivatives \| Other Long-term Liabilities \| Equity Contracts
Derivatives, Fair Value [Line Items]
Derivative Liabilities	$ 0	$ 0

Gains (Losses) on Fair Value Hedges and Related Hedged Items (Detail) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Foreign Exchange Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Derivatives	$ 25	$ 441	$ (797)
Hedged items	78	(386)	838
Total amount of ineffectiveness	103	55	41
Equity Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Derivatives	(324)	(74)	(76)
Hedged items	324	74	76
Total amount of ineffectiveness	0	0	0
Amount of equity contracts excluded from effectiveness assessment	$ 80	$ (80)	$ (10)

Gains (Losses) Related to Cash Flow Hedges (Detail) - Designated Hedge Derivatives - Foreign Exchange Contracts - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Effective Portion
Gains recognized in other comprehensive income (net of tax of $11, $4, and $24)	$ 219	$ 328	$ 351
Gains reclassified from accumulated other comprehensive income (loss) into revenue	185	555	625
Amount Excluded from Effectiveness Assessment and Ineffective Portion
Losses recognized in other income (expense), net	$ (255)	$ (389)	$ (354)

Gains (Losses) Related to Cash Flow Hedges (Parenthetical) (Detail) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Designated Hedge Derivatives \| Foreign Exchange Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Gains recognized in other comprehensive income, tax	$ 11	$ 4	$ 24

Non-designated Derivative Gains (Losses) (Detail) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Derivative Instruments, Gain (Loss) [Line Items]
Changes in fair value of derivatives not designated as hedges	$ (137)	$ (234)	$ (154)
Foreign Exchange Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Changes in fair value of derivatives not designated as hedges	(33)	(117)	(55)
Equity Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Changes in fair value of derivatives not designated as hedges	(87)	(114)	(21)
Interest Rate Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Changes in fair value of derivatives not designated as hedges	(15)	14	10
Credit Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Changes in fair value of derivatives not designated as hedges	(2)	5	(1)
Other Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Changes in fair value of derivatives not designated as hedges	$ 0	$ (22)	$ (87)

Reconciliation of Total Assets Measured at Fair Value on Recurring Basis to Balance Sheet Presentation (Detail) - USD ($) $ in Millions	Jun. 30, 2018	Jun. 30, 2017
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Other	$ 2	$ 1
Recorded basis of investment components	135,630	139,004
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	(282)	(202)
Fair Value, Measurements, Recurring
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	130,412	133,985
Cash	3,942	3,624
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	999	1,073
Other investments measured at fair value on a nonrecurring basis	$ 557	$ 523

Components of Inventories (Detail) - USD ($) $ in Millions	Jun. 30, 2018	Jun. 30, 2017
Inventory Disclosure [Abstract]
Raw materials	$ 655	$ 797
Work in process	54	145
Finished goods	1,953	1,239
Total	$ 2,662	$ 2,181

Components of Property and Equipment (Detail) - USD ($) $ in Millions	Jun. 30, 2018	Jun. 30, 2017
Property Plant And Equipment [Abstract]
Land	$ 1,254	$ 1,107
Buildings and improvements	20,604	16,284
Leasehold improvements	4,735	5,064
Computer equipment and software	27,633	21,414
Furniture and equipment	4,457	4,044
Total, at cost	58,683	47,913
Accumulated depreciation	(29,223)	(24,179)
Total, net	$ 29,460	$ 23,734

Property and Equipment - Additional Information (Detail) - USD ($) $ in Billions	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Property, Plant and Equipment [Line Items]
Depreciation expense	$ 7.7	$ 6.1	$ 4.9
Building, Building Improvements and Leasehold Improvements
Property, Plant and Equipment [Line Items]
Committed for construction of new buildings, building improvements and leasehold improvements	$ 1.9

Business Combinations - Additional Information (Detail) $ in Millions			12 Months Ended
	Jun. 04, 2018 USD ($)	Dec. 08, 2016 USD ($)	Jun. 30, 2018 USD ($) Acquisition
LinkedIn Corporation
Business Acquisition [Line Items]
Acquisition date		Dec. 08, 2016
Total purchase price		$ 27,000
Cash paid to acquire the business		$ 26,900
GitHub Inc
Business Acquisition [Line Items]
Acquisition agreement date	Jun. 04, 2018
Total purchase price to be transferred	$ 7,500
Other
Business Acquisition [Line Items]
Cash paid to acquire the business			$ 948
Business combination, number of business acquisitions \| Acquisition			9

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

Jun. 30, 2018

Jun. 30, 2017

Dec. 08, 2016

Jun. 30, 2016

Business Acquisition [Line Items]

Goodwill

$ 35,683

$ 35,122

$ 17,872

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 in our consolidated balance sheets. Refer to Note 12 – Debt for further information.

Major Classes of Assets and Liabilities to Which We Allocated the Purchase Price (Parenthetical) (Detail) - USD ($)	Jun. 30, 2018	Jun. 30, 2017	Dec. 08, 2016
Business Acquisition [Line Items]
Long-term debt	$ 76,898,000,000	$ 77,837,000,000
LinkedIn Corporation
Business Acquisition [Line Items]
Goodwill expected to be deductible for income tax purposes			$ 0
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, 2018	Jun. 30, 2017
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted Average Life		5 years	9 years
Customer-related
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted Average Life		5 years	7 years
Marketing-related (trade names)
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted Average Life		5 years	19 years
Technology-based
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted Average Life		4 years	2 years
Contract-based
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted Average Life		4 years	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	$ 2,271
Operating loss	$ (924)

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	$ 98,291	$ 94,490
Net income	$ 25,179	$ 19,128
Diluted earnings per share	$ 3.21	$ 2.38

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

12 Months Ended

Jun. 30, 2018

Jun. 30, 2017

$ 35,122

$ 17,872

630

17,236

(69)

Productivity and Business Processes

35,683

35,122

23,739

6,678

17,072

^[1]

(11)

23,823

23,739

Intelligent Cloud

5,555

5,467

164

(16)

5,703

5,555

More Personal Computing

5,828

5,727

394

115

(65)

(14)

$ 6,157

$ 5,828

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

Goodwill - Additional Information (Detail) - USD ($)	May 01, 2018	May 01, 2017	May 01, 2016	Jun. 30, 2018	Jun. 30, 2017
Goodwill And Intangible Assets Disclosure [Abstract]
Accumulated goodwill impairment				$ 11,300,000,000	$ 11,300,000,000
Goodwill impairment charge	$ 0	$ 0	$ 0

Finite-Lived Intangible Assets (Detail) - USD ($) $ in Millions	Jun. 30, 2018	Jun. 30, 2017
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 15,936	$ 16,667
Accumulated Amortization	(7,883)	(6,561)
Net Carrying Amount	8,053	10,106
Technology-based
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	7,220	7,765
Accumulated Amortization	(5,018)	(4,318)
Net Carrying Amount	2,202	3,447
Customer-related
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	4,031	4,045
Accumulated Amortization	(1,205)	(692)
Net Carrying Amount	2,826	3,353
Marketing-related
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	4,006	4,016
Accumulated Amortization	(1,071)	(829)
Net Carrying Amount	2,935	3,187
Contract-based
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	679	841
Accumulated Amortization	(589)	(722)
Net Carrying Amount	$ 90	$ 119

Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Finite-Lived Intangible Assets [Line Items]
Intangible assets amortization expense	$ 2,200	$ 1,700	$ 978
Amortization of capitalized software	$ 54	$ 55	69
Devices
Finite-Lived Intangible Assets [Line Items]
Impairment charges of intangible assets			$ 480

Intangible Assets Acquired (Detail) - USD ($) $ in Millions	12 Months Ended
Intangible Assets Acquired (Detail) - USD ($) $ in Millions	Jun. 30, 2018	Jun. 30, 2017
Acquired Finite-Lived Intangible Assets [Line Items]
Amount	$ 219	$ 8,083
Weighted Average Life	5 years	9 years
Technology-based
Acquired Finite-Lived Intangible Assets [Line Items]
Amount	$ 178	$ 2,265
Weighted Average Life	4 years	2 years
Marketing-related
Acquired Finite-Lived Intangible Assets [Line Items]
Amount	$ 14	$ 2,148
Weighted Average Life	5 years	19 years
Contract-based
Acquired Finite-Lived Intangible Assets [Line Items]
Amount	$ 14	$ 63
Weighted Average Life	4 years	6 years
Customer-related
Acquired Finite-Lived Intangible Assets [Line Items]
Amount	$ 13	$ 3,607
Weighted Average Life	5 years	7 years

Estimated Future Amortization Expense Related to Intangible Assets (Detail) - USD ($) $ in Millions	Jun. 30, 2018	Jun. 30, 2017
Goodwill And Intangible Assets Disclosure [Abstract]
Year Ending June 30, 2019	$ 1,785
Year Ending June 30, 2020	1,260
Year Ending June 30, 2021	1,043
Year Ending June 30, 2022	949
Year Ending June 30, 2023	806
Thereafter	2,210
Net Carrying Amount	$ 8,053	$ 10,106

Debt - Additional Information (Detail) - USD ($)	12 Months Ended
Debt - Additional Information (Detail) - USD ($)	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016	Oct. 31, 2017
Debt Instrument [Line Items]
Commercial paper	$ 0	$ 9,100,000,000
Credit facility, financial covenant	As of June 30, 2018, we were in compliance with the only financial covenant in both credit agreements, which requires us to maintain a coverage ratio of at least three times earnings before interest, taxes, depreciation, and amortization to interest expense, as defined in the credit agreements.
Credit facility, drawn	$ 0	0
Long-term debt	76,200,000,000	77,100,000,000
Long-term debt fair value	77,500,000,000	80,300,000,000
Cash paid for interest	2,400,000,000	1,600,000,000	$ 1,100,000,000
Debt issuance costs and unamortized discount	$ 658,000,000	$ 715,000,000
Credit Facility Expire on October 30th 2018
Debt Instrument [Line Items]
Credit facility				$ 5,000,000,000
Credit facility, expiration date	Oct. 30, 2018
Credit Facility Expire on October 31st 2022
Debt Instrument [Line Items]
Credit facility				$ 5,000,000,000
Credit facility, expiration date	Oct. 31, 2022
Commercial paper
Debt Instrument [Line Items]
Commercial paper, weighted average interest rate		1.01%
Commercial paper \| Lower Limit
Debt Instrument [Line Items]
Commercial paper, maturity term		25 days
Commercial paper \| Upper Limit
Debt Instrument [Line Items]
Commercial paper, maturity term		264 days

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

12 Months Ended

Jun. 30, 2018

Jun. 30, 2017

Notes 0.875 Percent Due November 15th 2017

$ 76,898

$ 77,837

Nov. 15, 2017

$ 0

$ 600

0.875%

Notes 1.0 Percent Due May 1st 2018

1.084%

May 01, 2018

$ 0

$ 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%

Aug. 08, 2019

$ 2,500

1.10%

Notes 0.500 Percent Due November 1st 2019

1.203%

Nov. 01, 2019

$ 18

0.50%

Notes 1.850 Percent Due February 6th 2020

0.50%

Feb. 06, 2020

$ 1,500

1.85%

Notes 1.850 Percent Due February 12th 2020

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%

Aug. 08, 2021

$ 2,750

1.55%

Notes 2.125 Percent Due December 6th 2021

1.642%

^[1]

Dec. 06, 2021

^[1]

$ 2,044

$ 1,996

^[1]

2.125%

Notes 2.40 Percent Due February 6th 2022

^[1]

2.233%

Feb. 06, 2022

$ 1,750

2.40%

Notes 2.375 Percent Due February 12th 2022

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%

Aug. 08, 2023

$ 1,500

2.00%

Notes 3.625 Percent Due December 15th 2023

2.101%

Dec. 15, 2023

$ 1,500

3.625%

Notes 2.875 Percent Due February 6th 2024

3.726%

Feb. 06, 2024

$ 2,250

2.875%

Notes 2.70 Percent Due February 12th 2025

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%

Aug. 08, 2026

$ 4,000

2.40%

Notes 3.3 Percent Due February 6th 2027

2.464%

Feb. 06, 2027

$ 4,000

3.30%

Notes 3.125 Percent Due December 6th 2028

3.383%

^[1]

Dec. 06, 2028

^[1]

$ 2,044

$ 1,996

^[1]

3.125%

Notes 2.625 Percent Due May 2nd 2033

^[1]

3.218%

^[1]

May 02, 2033

^[1]

$ 642

$ 627

^[1]

2.625%

Notes 3.50 Percent Due February 12th 2035

^[1]

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%

Aug. 08, 2036

$ 2,250

3.45%

Notes 4.1 Percent Due February 6th 2037

3.51%

Feb. 06, 2037

$ 2,500

4.10%

Notes 5.2 Percent Due June 1st 2039

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%

Aug. 08, 2046

$ 4,500

3.70%

Notes 4.25 Percent Due February 6th 2047

3.743%

Feb. 06, 2047

$ 3,000

4.25%

Notes 4.0 Percent Due February 12th 2055

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%

Aug. 08, 2056

$ 2,250

3.95%

Notes 4.5 Percent Due February 6th 2057

4.033%

Feb. 06, 2057

$ 2,000

4.50%

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

4.528%

[1]	Euro-denominated debt securities.

Maturities of Long-term Debt (Detail) - USD ($) $ in Millions	Jun. 30, 2018	Jun. 30, 2017
Debt Disclosure [Abstract]
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	8,044
Year Ending June 30, 2023	2,750
Thereafter	52,836
Total	$ 76,898	$ 77,837

Income Taxes - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2015
Income Taxes [Line Items]
U.S. federal statutory tax rate			21.00%	35.00%	28.10%	35.00%	35.00%
Provision for income taxes					$ 19,903	$ 4,412	$ 5,100
Deferred tax liabilities, revenue recognition						5,486
Income taxes paid, net of refunds					5,500	2,400	3,900
Unrecognized tax benefits	$ 11,961		$ 11,961		11,961	11,737	10,164	$ 9,599
Unrecognized tax benefits, if recognized would affect our effective tax rates	11,300		11,300		11,300	10,200	8,800
Accrued interest expense related to uncertain tax positions net of federal income tax benefits	3,000		3,000		3,000	2,300	1,900
Interest expense on unrecognized tax benefits, net of tax effects					688	399	163
Accounting Standards Update 2014-09 \| Restatement Adjustment
Income Taxes [Line Items]
Provision for income taxes						$ 2,467	$ 2,147
Deferred tax liabilities, revenue recognition	7,400		7,400		7,400
Tax Cuts and Jobs Act
Income Taxes [Line Items]
Provision for income taxes	(104)	$ 13,800			13,700
Charge related to transition tax					17,900
Benefit from impact of changes in tax rate					$ 4,200
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					87.00%	76.00%	91.00%
Federal
Income Taxes [Line Items]
Operating loss carryforwards	257		257		$ 257
Foreign Country
Income Taxes [Line Items]
Operating loss carryforwards	11,400		11,400		11,400
State
Income Taxes [Line Items]
Operating loss carryforwards	$ 1,400		$ 1,400		$ 1,400
Federal and State \| Earliest Tax Year
Income Taxes [Line Items]
Operating loss carryforwards expiration year					2019
Federal and State \| Latest Tax Year
Income Taxes [Line Items]
Operating loss carryforwards expiration year					2038

Provision for Income Taxes (Detail) - USD ($) $ in Millions	12 Months Ended
Provision for Income Taxes (Detail) - USD ($) $ in Millions	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Current Taxes
U.S. federal	$ 19,764	$ 2,739	$ 545
U.S. state and local	934	30	136
Foreign	4,348	2,472	1,940
Current taxes	25,046	5,241	2,621
Deferred Taxes
U.S. federal	(4,292)	(554)	1,919
U.S. state and local	(458)	269	111
Foreign	(393)	(544)	449
Deferred taxes	(5,143)	(829)	2,479
Provision for income taxes	$ 19,903	$ 4,412	$ 5,100

Income Before Income Taxes (Detail) - USD ($) $ in Millions	12 Months Ended
Income Before Income Taxes (Detail) - USD ($) $ in Millions	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Income Tax Disclosure [Abstract]
U.S.	$ 11,527	$ 6,843	$ 5,125
Foreign	24,947	23,058	20,514
Income before income taxes	$ 36,474	$ 29,901	$ 25,639

Difference Between Income Taxes Computed at Federal Statutory Rate and Provision for Income Taxes (Detail)	6 Months Ended		12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Income Tax Disclosure [Abstract]
Federal statutory rate	21.00%	35.00%	28.10%	35.00%	35.00%
Effect of:
Foreign earnings taxed at lower rates			(7.80%)	(11.60%)	(14.50%)
Impacts of TCJA			37.70%	0.00%	0.00%
Phone business losses			0.00%	(5.70%)	1.00%
Excess tax benefits relating to stock-based compensation			(2.50%)	(2.10%)	(1.60%)
Interest, net			1.20%	1.40%	0.90%
Other reconciling items, net			(2.10%)	(2.20%)	(0.90%)
Effective rate			54.60%	14.80%	19.90%

Deferred Income Tax Assets and Liabilities (Detail) - USD ($) $ in Millions	Jun. 30, 2018	Jun. 30, 2017
Deferred Income Tax Assets
Stock-based compensation expense	$ 460	$ 777
Accruals, reserves, and other expenses	1,832	1,859
Loss and credit carryforwards	3,369	4,809
Depreciation and amortization	351	53
Other	56	255
Deferred income tax assets	6,068	7,753
Less valuation allowance	(3,186)	(3,310)
Deferred income tax assets, net of valuation allowance	2,882	4,443
Deferred Income Tax Liabilities
Foreign earnings	0	(1,134)
Unrealized gain on investments and debt	0	(1,384)
Unearned revenue	(639)	(5,760)
Depreciation and amortization	(1,103)	(1,630)
Other	(312)	(21)
Deferred income tax liabilities	(2,054)	(9,929)
Net deferred income tax assets	828
Long-term deferred income tax liabilities	(541)	(5,734)
Net deferred income tax liabilities		(5,486)
Other Long-term Assets
Deferred Income Tax Liabilities
Other long-term assets	1,369	248
Long-term Deferred Income Tax Liabilities
Deferred Income Tax Liabilities
Long-term deferred income tax liabilities	$ (541)	$ (5,734)

Changes in Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Income Tax Disclosure [Abstract]
Balance, beginning of year	$ 11,737	$ 10,164	$ 9,599
Decreases related to settlements	(193)	(4)	(201)
Increases for tax positions related to the current year	1,445	1,277	1,086
Increases for tax positions related to prior years	151	397	115
Decreases for tax positions related to prior years	(1,176)	(49)	(317)
Decreases due to lapsed statutes of limitations	(3)	(48)	(118)
Balance, end of year	$ 11,961	$ 11,737	$ 10,164

Income Taxes - Additional Information Regarding Examinations (Detail)	3 Months Ended			12 Months Ended
	Dec. 31, 2017	Sep. 30, 2015	Mar. 31, 2011	Jun. 30, 2018
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	2010	2007	2004
Tax years subject to examination				2010
Internal Revenue Service (IRS) \| Latest Tax Year
Income Tax Examination [Line Items]
Tax years under audit	2013	2009	2006
Tax years subject to examination				2017

Restructuring Charges - Additional Information (Detail) $ in Millions	12 Months Ended
	Jun. 30, 2017 USD ($) Position	Jun. 30, 2016 USD ($)
2016 Restructuring
Restructuring Cost and Reserve [Line Items]
Number of positions eliminated \| Position	4,700
Restructuring charges		$ 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

Unearned Revenue by Segment (Detail) - USD ($) $ in Millions	Jun. 30, 2018	Jun. 30, 2017	Jul. 01, 2016
Contract With Customer Liability [Line Items]
Unearned revenue	$ 32,720	$ 26,656	$ 22,200
Productivity and Business Processes
Contract With Customer Liability [Line Items]
Unearned revenue	14,864	12,692
Intelligent Cloud
Contract With Customer Liability [Line Items]
Unearned revenue	14,706	11,152
More Personal Computing
Contract With Customer Liability [Line Items]
Unearned revenue	$ 3,150	$ 2,812

Unearned Revenue - Additional Information (Detail) - USD ($) $ in Millions	Jun. 30, 2018	Jun. 30, 2017	Jul. 01, 2016
Revenue From Contract With Customer [Abstract]
Unearned revenue	$ 32,720	$ 26,656	$ 22,200
Revenue allocated to remaining performance obligations	$ 73,000

Changes in Unearned Revenue (Detail) $ in Millions	12 Months Ended
Changes in Unearned Revenue (Detail) $ in Millions	Jun. 30, 2018 USD ($)
Revenue From Contract With Customer [Abstract]
Balance, beginning of period	$ 26,656
Deferral of revenue	61,142
Recognition of unearned revenue	(55,078)
Balance, end of period	$ 32,720

Unearned Revenue - Remaining Performance Obligation - Additional Information (Detail) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2018-07-01	Jun. 30, 2018
Contract With Customer Liability [Line Items]
Revenue allocated to remaining performance obligations, percentage of revenue expected to be recognized	60.00%
Revenue allocated to remaining performance obligations, expected timing of satisfaction	12 months

Leases - Additional Information (Detail) $ in Millions	12 Months Ended
Leases - Additional Information (Detail) $ in Millions	Jun. 30, 2018 USD ($)
Operating Lease
Leases [Line Items]
Additional leases, primarily for datacenters, that have not yet commenced	$ 594
Finance Lease
Leases [Line Items]
Additional leases, primarily for datacenters, that have not yet commenced	$ 2,400
Lower Limit
Leases [Line Items]
Operating and Finance leases, remaining lease terms	1 year
Additional operating leases that have not yet commenced, lease terms	1 year
Additional finance leases that have not yet commenced, lease terms	1 year
Upper Limit
Leases [Line Items]
Operating and Finance leases, remaining lease terms	20 years
Operating leases, options to extend leases term	5 years
Finance leases, options to extend leases term	5 years
Operating and Finance leases, options to terminate leases term	1 year
Additional operating leases that have not yet commenced, lease terms	20 years
Additional finance leases that have not yet commenced, lease terms	20 years

Components of Lease Expense (Detail) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Leases [Abstract]
Operating lease cost	$ 1,585	$ 1,412	$ 936
Finance lease cost:
Amortization of right-of-use assets	243	104	28
Interest on lease liabilities	175	68	28
Total finance lease cost	$ 418	$ 172	$ 56

Supplemental Cash Flow Information Related to Leases (Detail) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 1,522	$ 1,157	$ 936
Operating cash flows from finance leases	175	68	28
Financing cash flows from finance leases	144	46	6
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	1,571	1,270	1,062
Finance leases	$ 1,933	$ 1,773	$ 413

Supplemental Balance Sheet Information Related to Leases (Detail) - USD ($) $ in Millions	Jun. 30, 2018	Jun. 30, 2017
Operating Leases
Operating lease right-of-use assets	$ 6,686	$ 6,555
Total operating lease liabilities	6,967	6,795
Finance Leases
Property and equipment, gross	58,683	47,913
Accumulated depreciation	(29,223)	(24,179)
Total, net	29,460	23,734
Total finance lease liabilities	$ 4,301	$ 2,538
Weighted Average Remaining Lease Term
Operating leases	7 years	7 years
Finance leases	13 years	13 years
Weighted Average Discount Rate
Operating leases	2.70%	2.50%
Finance leases	5.20%	4.70%
Finance Lease
Finance Leases
Property and equipment, gross	$ 4,543	$ 2,658
Accumulated depreciation	(404)	(161)
Total, net	4,139	2,497
Other Current Liabilities
Operating Leases
Total operating lease liabilities	1,399	1,423
Finance Leases
Total finance lease liabilities	176	113
Operating Lease Liabilities
Operating Leases
Total operating lease liabilities	5,568	5,372
Other Long-term Liabilities
Finance Leases
Total finance lease liabilities	$ 4,125	$ 2,425

Maturities of lease liabilities (Detail) - USD ($) $ in Millions	Jun. 30, 2018	Jun. 30, 2017
Leases [Abstract]
Operating Leases, Year Ending June 30, 2019	$ 1,492
Operating Leases, Year Ending June 30, 2020	1,347
Operating Leases, Year Ending June 30, 2021	1,086
Operating Leases, Year Ending June 30, 2022	902
Operating Leases, Year Ending June 30, 2023	721
Operating Leases, Thereafter	2,157
Operating Leases, Total lease payments	7,705
Operating Leases, Less imputed interest	(738)
Operating Leases	6,967	$ 6,795
Finance Leases, Year Ending June 30, 2019	386
Finance Leases, Year Ending June 30, 2020	393
Finance Leases, Year Ending June 30, 2021	401
Finance Leases, Year Ending June 30, 2022	408
Finance Leases, Year Ending June 30, 2023	410
Finance Leases, Thereafter	4,036
Finance Leases, Total lease payments	6,034
Finance Leases, Less imputed interest	(1,733)
Finance Leases	$ 4,301	$ 2,538

Shares of Common Stock Outstanding (Detail) - shares shares in Millions	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Equity [Abstract]
Balance, beginning of year	7,708	7,808	8,027
Issued	68	70	75
Repurchased	(99)	(170)	(294)
Balance, end of year	7,677	7,708	7,808

Share Repurchases (Detail) - USD ($) shares in Millions, $ in Millions	3 Months Ended												12 Months Ended
	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	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, 2018	Jun. 30, 2017	Jun. 30, 2016
Share Repurchases [Line Items]
Shares of common stock repurchased													99	170	294
Value of common stock repurchased													$ 8,600	$ 10,283	$ 14,800
Share Repurchase Program 2016
Share Repurchases [Line Items]
Shares of common stock repurchased	21	34	22	22	23	25
Value of common stock repurchased	$ 2,100	$ 3,100	$ 1,800	$ 1,600	$ 1,600	$ 1,600
Share Repurchase Program 2013
Share Repurchases [Line Items]
Shares of common stock repurchased							59	63	70	69	66	89
Value of common stock repurchased							$ 3,533	$ 3,550	$ 3,600	$ 3,600	$ 3,600	$ 4,000

Dividends Declared (Detail) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended								12 Months Ended
	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Equity [Abstract]
Declaration Date	Jun. 13, 2018	Mar. 12, 2018	Nov. 29, 2017	Sep. 19, 2017	Jun. 13, 2017	Mar. 14, 2017	Nov. 30, 2016	Sep. 20, 2016
Dividend Per Share	$ 0.42	$ 0.42	$ 0.42	$ 0.42	$ 0.39	$ 0.39	$ 0.39	$ 0.39	$ 1.68	$ 1.56	$ 1.44
Record Date	Aug. 16, 2018	May 17, 2018	Feb. 15, 2018	Nov. 16, 2017	Aug. 17, 2017	May 18, 2017	Feb. 16, 2017	Nov. 17, 2016
Amount	$ 3,224	$ 3,226	$ 3,232	$ 3,238	$ 3,003	$ 3,009	$ 3,012	$ 3,024
Payment Date	Sep. 13, 2018	Jun. 14, 2018	Mar. 08, 2018	Dec. 14, 2017	Sep. 14, 2017	Jun. 08, 2017	Mar. 09, 2017	Dec. 08, 2016

Summary of Changes in Accumulated Other Comprehensive Income (Loss) by Component (Detail) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, beginning of period	$ 87,711	$ 83,090
Net change related to other comprehensive income (loss)	(2,856)	(1,167)	$ (728)
Balance, end of period	82,718	87,711	83,090
Derivatives
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, beginning of period	134	352	590
Unrealized gains (losses), net of tax	218	328	351
Tax expense included in provision for income taxes	6	9	36
Amounts reclassified from accumulated other comprehensive income	(179)	(546)	(589)
Net change related to other comprehensive income (loss)	39	(218)	(238)
Balance, end of period	173	134	352
Derivatives \| Revenue
Accumulated Other Comprehensive Income (Loss) [Line Items]
Reclassification adjustments for gains	(185)	(555)	(625)
Investments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, beginning of period	1,825	2,941	3,169
Unrealized gains (losses), net of tax	(1,146)	517	219
Tax expense included in provision for income taxes	738	880	241
Amounts reclassified from accumulated other comprehensive income	(1,571)	(1,633)	(447)
Net change related to other comprehensive income (loss)	(2,717)	(1,116)	(228)
Balance, end of period	(892)	1,825	2,941
Investments \| Other income (expense), net
Accumulated Other Comprehensive Income (Loss) [Line Items]
Reclassification adjustments for gains	(2,309)	(2,513)	(688)
Translation adjustments and other
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, beginning of period	(1,332)	(1,499)	(1,237)
Net change related to other comprehensive income (loss)	(178)	167	(262)
Balance, end of period	(1,510)	(1,332)	(1,499)
Accumulated other comprehensive income (loss)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, beginning of period	627	1,794	2,522
Net change related to other comprehensive income (loss)	(2,856)	(1,167)	(728)
Cumulative effect of accounting change	42	0	0
Balance, end of period	$ (2,187)	$ 627	$ 1,794

Summary of Changes in Accumulated Other Comprehensive Income (Loss) by Component (Parenthetical) (Detail) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Derivatives
Accumulated Other Comprehensive Income (Loss) [Line Items]
Unrealized gains (losses), tax	$ 11	$ 4	$ 24
Net change related to other comprehensive income (loss), tax	5	(5)	(12)
Investments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Unrealized gains (losses), tax	(427)	267	120
Net change related to other comprehensive income (loss), tax	(1,165)	(613)	(121)
Translation adjustments and other
Accumulated Other Comprehensive Income (Loss) [Line Items]
Net change related to other comprehensive income (loss), tax	$ 0	$ 9	$ (33)

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

12 Months Ended

Jun. 30, 2018

Jun. 30, 2017

Jun. 30, 2016

50.00%

Matching contributions for all employee savings plans

$ 807

$ 734

$ 549

Upper Limit | IRS Compensation Limit

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

50.00%

Stock Awards

Shares authorized for future grant

381

Unrecognized compensation costs

$ 7,000

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

3 years

Weighted average grant-date fair value

$ 75.88

^[1]

$ 55.64

$ 41.51

Fair value of awards vested

$ 6,600

$ 4,800

$ 3,900

Stock Awards | Lower Limit

Stock Awards | Upper Limit

4 years

Stock Awards | 2017 Stock Plan

5 years

Shares authorized for future grant

308

Restricted Stock Units | Executive Incentive Plan

Performance Stock Units | Executive Incentive Plan

4 years

Shares authorized for future grant

3 years

Employee Stock

116

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 3 million, 2 million, and 1 million of PSUs granted at target and performance adjustments above target levels for fiscal years 2018, 2017, and 2016, respectively.

Stock-Based Compensation Expense and Related Income Tax Benefits (Detail) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stock-based compensation expense	$ 3,940	$ 3,266	$ 2,668
Income tax benefits related to stock-based compensation	$ 823	$ 1,066	$ 882

Assumptions Used in Estimating the Fair Value of Stock Award Grants (Detail) - $ / shares	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Share based Compensation Arrangement by Share based Payment Award, Fair Value Assumptions, Method Used [Line Items]
Interest rates minimum	1.70%	1.20%	1.10%
Interest rates maximum	2.90%	2.20%	1.80%
Lower Limit
Share based Compensation Arrangement by Share based Payment Award, Fair Value Assumptions, Method Used [Line Items]
Dividends per share (quarterly amounts)	$ 0.39	$ 0.36	$ 0.31
Upper Limit
Share based Compensation Arrangement by Share based Payment Award, Fair Value Assumptions, Method Used [Line Items]
Dividends per share (quarterly amounts)	$ 0.42	$ 0.39	$ 0.36

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

12 Months Ended

Jun. 30, 2018

Jun. 30, 2017

Jun. 30, 2016

Shares

Nonvested balance, beginning of year

201

Granted

^[1]

Vested

(80)

Forfeited

(17)

Nonvested balance, end of year

174

201

Weighted Average Grant-Date Fair Value

Nonvested balance, beginning of year

$ 46.32

Granted

75.88

^[1]

$ 55.64

$ 41.51

Vested

45.74

Forfeited

53.41

Nonvested balance, end of year

$ 57.85

$ 46.32

[1]	Includes 3 million, 2 million, and 1 million of PSUs granted at target and performance adjustments above target levels for fiscal years 2018, 2017, and 2016, respectively.

Employee Purchased Shares (Detail) - $ / shares shares in Millions	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Shares purchased	13	13	15
Average price per share	$ 76.40	$ 56.36	$ 44.83

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

3 Months Ended

12 Months Ended

Jun. 30, 2018

Mar. 31, 2018

Dec. 31, 2017

Sep. 30, 2017

Jun. 30, 2017

^[1]

Mar. 31, 2017

^[1]

Dec. 31, 2016

^[1]

Sep. 30, 2016

^[1]

Jun. 30, 2018

Jun. 30, 2017

Jun. 30, 2016

Productivity and Business Processes

$ 30,085

$ 26,819

$ 28,918

$ 24,538

$ 25,605

$ 23,212

$ 25,826

$ 21,928

$ 110,360

$ 96,571

^[1]

$ 91,154

35,865

29,870

25,792

Intelligent Cloud

32,219

27,407

24,952

More Personal Computing

$ 42,276

$ 39,294

$ 40,410

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

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

3 Months Ended

12 Months Ended

Jun. 30, 2018

Mar. 31, 2018

Dec. 31, 2017

Sep. 30, 2017

Jun. 30, 2017

^[1],[2]

Mar. 31, 2017

^[2]

Dec. 31, 2016

^[2]

Sep. 30, 2016

^[2]

Jun. 30, 2018

Jun. 30, 2017

Jun. 30, 2016

Reportable Segments | Productivity and Business Processes

$ 10,379

$ 8,292

$ 8,679

$ 7,708

$ 7,682

$ 6,723

$ 7,905

$ 6,715

$ 35,058

$ 29,025

^[1],[2]

$ 26,078

Reportable Segments | Intelligent Cloud

12,924

11,389

11,756

Reportable Segments | More Personal Computing

11,524

9,127

9,249

10,610

8,815

6,183

Corporate and Other

$ 0

$ (306)

$ (1,110)

[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 $0.04, 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.

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

3 Months Ended

12 Months Ended

Jun. 30, 2018

Mar. 31, 2018

Dec. 31, 2017

Sep. 30, 2017

Jun. 30, 2017

^[1]

Mar. 31, 2017

^[1]

Dec. 31, 2016

^[1]

Sep. 30, 2016

^[1]

Jun. 30, 2018

Jun. 30, 2017

Jun. 30, 2016

Geographic Information [Line Items]

Revenues

$ 30,085

$ 26,819

$ 28,918

$ 24,538

$ 25,605

$ 23,212

$ 25,826

$ 21,928

$ 110,360

$ 96,571

^[1]

$ 91,154

United States

Geographic Information [Line Items]

Revenues

^[2]

55,926

51,078

46,416

Other Countries

Geographic Information [Line Items]

Revenues

$ 54,434

$ 45,493

$ 44,738

[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]	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, 2018

Mar. 31, 2018

Dec. 31, 2017

Sep. 30, 2017

Jun. 30, 2017

^[1]

Mar. 31, 2017

^[1]

Dec. 31, 2016

^[1]

Sep. 30, 2016

^[1]

Jun. 30, 2018

Jun. 30, 2017

Jun. 30, 2016

Office Products and Cloud Services

$ 30,085

$ 26,819

$ 28,918

$ 24,538

$ 25,605

$ 23,212

$ 25,826

$ 21,928

$ 110,360

$ 96,571

^[1]

$ 91,154

Server Products and Cloud Services

28,316

25,573

23,868

26,129

21,649

19,062

Windows

19,518

18,593

17,548

Gaming

10,353

9,051

9,202

Search Advertising

7,012

6,219

5,428

Enterprise Services

5,846

5,542

5,659

Devices

5,134

5,062

7,888

Other products and services

5,259

2,271

$ 2,793

$ 2,611

$ 2,499

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

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

3 Months Ended

12 Months Ended

Jun. 30, 2018

Mar. 31, 2018

Dec. 31, 2017

Sep. 30, 2017

Jun. 30, 2017

^[1]

Mar. 31, 2017

^[1]

Dec. 31, 2016

^[1]

Sep. 30, 2016

^[1]

Jun. 30, 2018

Jun. 30, 2017

Jun. 30, 2016

$ 30,085

$ 26,819

$ 28,918

$ 24,538

$ 25,605

$ 23,212

$ 25,826

$ 21,928

$ 110,360

$ 96,571

^[1]

$ 91,154

Commercial Cloud

Quarterly Financial Information Disclosure [Abstract]

$ 23,200

$ 14,900

$ 9,500

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

Long-Lived Assets, Excluding Financial Instruments and Tax Assets, Classified by Location of Controlling Statutory Company (Detail) - USD ($) $ in Millions	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Certain Long-Lived Assets by Geography [Line Items]
Long-lived assets	$ 79,882	$ 75,517	$ 45,159
United States
Certain Long-Lived Assets by Geography [Line Items]
Long-lived assets	44,501	42,730	25,145
Ireland
Certain Long-Lived Assets by Geography [Line Items]
Long-lived assets	12,843	12,889	2,099
Luxembourg
Certain Long-Lived Assets by Geography [Line Items]
Long-lived assets	6,856	6,854	6,868
Other Countries
Certain Long-Lived Assets by Geography [Line Items]
Long-lived assets	$ 15,682	$ 13,044	$ 11,047

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

3 Months Ended

12 Months Ended

Jun. 30, 2018

Mar. 31, 2018

Dec. 31, 2017

Sep. 30, 2017

Jun. 30, 2017

^[1]

Mar. 31, 2017

^[1]

Dec. 31, 2016

^[1]

Sep. 30, 2016

^[1]

Jun. 30, 2018

Jun. 30, 2017

^[1]

Jun. 30, 2016

Basic earnings (loss) per share

$ 30,085

$ 26,819

$ 28,918

$ 24,538

$ 25,605

$ 23,212

$ 25,826

$ 21,928

$ 110,360

$ 96,571

$ 91,154

Gross margin

20,343

17,550

17,854

16,260

17,149

15,152

15,925

14,084

72,007

62,310

58,374

Operating income

10,379

8,292

8,679

7,708

7,682

^[2]

6,723

7,905

6,715

35,058

29,025

^[2]

26,078

Net income (loss)

$ 8,873

^[3]

$ 7,424

^[3]

$ (6,302)

^[3]

$ 6,576

^[3]

$ 8,069

^[2]

$ 5,486

$ 6,267

$ 5,667

$ 16,571

^[3]

$ 25,489

^[2]

$ 20,539

$ 1.15

$ 0.96

$ (0.82)

$ 0.85

$ 1.05

$ 0.71

$ 0.81

$ 0.73

$ 2.15

$ 3.29

$ 2.59

Diluted earnings (loss) per share

$ 1.14

^[4]

$ 0.95

^[4]

$ (0.82)

^[4]

$ 0.84

^[4]

$ 1.03

^[2]

$ 0.70

$ 0.80

$ 0.72

$ 2.13

^[4]

$ 3.25

^[2]

$ 2.56

[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]	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 $0.04, respectively.
[3]	Reflects the net charge (benefit) related to the TCJA of $13.8 billion for the second quarter, $(104) million for the fourth quarter, and $13.7 billion for fiscal year 2018.
[4]	Reflects the net charge (benefit) related to the TCJA, which decreased (increased) diluted EPS $1.78 for the second quarter, $(0.01) for the fourth quarter, and $1.75 for fiscal year 2018.

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

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