General and administrative

$ 125,843

$ 110,360

$ 96,571

Cost of revenue

42,910

38,353

34,261

Gross margin

82,933

72,007

62,310

Research and development

16,876

14,726

13,037

Sales and marketing

18,213

17,469

15,461

4,885

4,754

4,481

Restructuring

306

Operating income

42,959

35,058

29,025

Other income, net

729

1,416

876

Income before income taxes

43,688

36,474

29,901

Provision for income taxes

4,448

19,903

4,412

Weighted average shares outstanding:

$ 39,240

^[1]

$ 16,571

^[2]

$ 25,489

Earnings per share:

Basic

$ 5.11

$ 2.15

$ 3.29

Diluted

$ 5.06

^[3]

$ 2.13

^[4]

$ 3.25

Basic

7,673

7,700

7,746

Diluted

7,753

7,794

7,832

Product

$ 66,069

$ 64,497

$ 63,811

Cost of revenue

16,273

15,420

15,175

Service and Other

Statement Of Income And Comprehensive Income [Abstract]

59,774

45,863

32,760

Cost of revenue

$ 26,637

$ 22,933

$ 19,086

[1]	Reflects the $157 million net charge related to the enactment of the TCJA for the second quarter and the $2.6 billion net income tax benefit related to the intangible property transfers for the fourth quarter, which together increased net income by $2.4 billion for fiscal year 2019. See Note 12 – Income Taxes for further information.
[2]	Reflects the net charge (benefit) related to the enactment of 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]	Reflects the net charge related to the enactment of the TCJA and the net income tax benefit related to the intangible property transfers, which decreased (increased) diluted EPS $0.02 for the second quarter, $(0.34) for the fourth quarter, and $(0.31) for fiscal year 2019.
[4]	Reflects the net charge (benefit) related to the enactment of 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, 2019

Jun. 30, 2018

Jun. 30, 2017

Other comprehensive income (loss), net of tax:

$ 39,240

^[1]

$ 16,571

^[2]

$ 25,489

Net change related to derivatives

(173)

(218)

Net change related to investments

2,405

(2,717)

(1,116)

Translation adjustments and other

(318)

(178)

167

1,914

(2,856)

(1,167)

Comprehensive income

$ 41,154

$ 13,715

$ 24,322

[1]	Reflects the $157 million net charge related to the enactment of the TCJA for the second quarter and the $2.6 billion net income tax benefit related to the intangible property transfers for the fourth quarter, which together increased net income by $2.4 billion for fiscal year 2019. See Note 12 – Income Taxes for further information.
[2]	Reflects the net charge (benefit) related to the enactment of 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.

+ References + Details

BALANCE SHEETS - USD ($) $ in Millions	Jun. 30, 2019	Jun. 30, 2018
Current assets:
Cash and cash equivalents	$ 11,356	$ 11,946
Short-term investments	122,463	121,822
Total cash, cash equivalents, and short-term investments	133,819	133,768
Accounts receivable, net of allowance for doubtful accounts of $411 and $377	29,524	26,481
Inventories	2,063	2,662
Other	10,146	6,751
Total current assets	175,552	169,662
Property and equipment, net of accumulated depreciation of $35,330 and $29,223	36,477	29,460
Operating lease right-of-use assets	7,379	6,686
Equity investments	2,649	1,862
Goodwill	42,026	35,683
Intangible assets, net	7,750	8,053
Other long-term assets	14,723	7,442
Total assets	286,556	258,848
Current liabilities:
Accounts payable	9,382	8,617
Current portion of long-term debt	5,516	3,998
Accrued compensation	6,830	6,103
Short-term income taxes	5,665	2,121
Short-term unearned revenue	32,676	28,905
Other	9,351	8,744
Total current liabilities	69,420	58,488
Long-term debt	66,662	72,242
Long-term income taxes	29,612	30,265
Long-term unearned revenue	4,530	3,815
Deferred income taxes	233	541
Operating lease liabilities	6,188	5,568
Other long-term liabilities	7,581	5,211
Total liabilities	184,226	176,130
Commitments and contingencies
Stockholders’ equity:
Common stock and paid-in capital – shares authorized 24,000; outstanding 7,643 and 7,677	78,520	71,223
Retained earnings	24,150	13,682
Accumulated other comprehensive loss	(340)	(2,187)
Total stockholders’ equity	102,330	82,718
Total liabilities and stockholders' equity	$ 286,556	$ 258,848

BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions	Jun. 30, 2019	Jun. 30, 2018
Statement Of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 411	$ 377
Property and equipment, accumulated depreciation	$ 35,330	$ 29,223
Common stock, shares authorized	24,000,000,000	24,000,000,000
Common stock, outstanding	7,643,000,000	7,677,000,000

CASH FLOWS STATEMENTS - USD ($)
$ in Millions

12 Months Ended

Jun. 30, 2019

Jun. 30, 2018

Jun. 30, 2017

Operations

Adjustments to reconcile net income to net cash from operations:

$ 39,240

^[1]

$ 16,571

^[2]

$ 25,489

Depreciation, amortization, and other

11,682

10,261

8,778

Net recognized gains on investments and derivatives

4,652

3,940

3,266

(792)

(2,212)

(2,073)

Deferred income taxes

(6,463)

(5,143)

(829)

Changes in operating assets and liabilities:

Accounts receivable

(2,812)

(3,862)

(1,216)

Inventories

597

(465)

Other current assets

(1,718)

(952)

1,028

Other long-term assets

(1,834)

(285)

(917)

Accounts payable

232

1,148

Unearned revenue

4,462

5,922

3,820

Income taxes

2,929

18,183

1,792

Other current liabilities

1,419

798

356

Other long-term liabilities

591

(20)

(118)

Net cash from operations

52,185

43,884

39,507

Financing

Repayments of short-term debt, maturities of 90 days or less, net

(7,324)

(4,963)

Proceeds from issuance of debt

7,183

44,344

Repayments of debt

(4,000)

(10,060)

(7,922)

1,142

1,002

772

Common stock cash dividends paid

(19,543)

(10,721)

(11,788)

(13,811)

(12,699)

(11,845)

Net cash from (used in) financing

(675)

(971)

(190)

(36,887)

(33,590)

8,408

Investing

Additions to property and equipment

(13,925)

(11,632)

(8,129)

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

(2,388)

(888)

(25,944)

Purchases of investments

(57,697)

(137,380)

(176,905)

Maturities of investments

20,043

26,360

28,044

Sales of investments

38,194

117,577

136,350

Securities lending payable

(98)

(197)

Net cash used in investing

(15,773)

(6,061)

(46,781)

Effect of foreign exchange rates on cash and cash equivalents

(115)

Net change in cash and cash equivalents

(590)

4,283

1,153

Cash and cash equivalents, beginning of period

11,946

7,663

6,510

Cash and cash equivalents, end of period

$ 11,356

$ 11,946

$ 7,663

[1]	Reflects the $157 million net charge related to the enactment of the TCJA for the second quarter and the $2.6 billion net income tax benefit related to the intangible property transfers for the fourth quarter, which together increased net income by $2.4 billion for fiscal year 2019. See Note 12 – Income Taxes for further information.
[2]	Reflects the net charge (benefit) related to the enactment of the TCJA of $13.8 billion for the second quarter, $(104) million for the fourth quarter, and $13.7 billion for fiscal year 2018.

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, 2016

$ 68,178

$ 13,118

$ 1,794

772

$ 25,489

25,489

Common stock cash dividends

(1,167)

(12,040)

Cumulative effect of accounting changes

(2,987)

(8,798)

3,266

Balance, end of period at Jun. 30, 2017

$ 87,711

69,315

17,769

627

Cash dividends declared per common share

$ 1.56

1,002

$ 16,571

^[1]

16,571

Common stock cash dividends

(2,856)

(12,916)

(12,917)

Cumulative effect of accounting changes

(3,033)

(7,699)

(42)

3,940

Balance, end of period at Jun. 30, 2018

(1)

$ 82,718

71,223

13,682

(2,187)

Cash dividends declared per common share

$ 1.68

6,829

$ 39,240

^[2]

39,240

Common stock cash dividends

1,914

(14,107)

(14,103)

Cumulative effect of accounting changes

(4,195)

(15,346)

677

(67)

4,652

Balance, end of period at Jun. 30, 2019

$ 102,330

$ 78,520

$ 24,150

$ (340)

Cash dividends declared per common share

$ 1.84

[1]	Reflects the net charge (benefit) related to the enactment of 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]	Reflects the $157 million net charge related to the enactment of the TCJA for the second quarter and the $2.6 billion net income tax benefit related to the intangible property transfers for the fourth quarter, which together increased net income by $2.4 billion for fiscal year 2019. See Note 12 – Income Taxes for further information.

ACCOUNTING POLICIES

12 Months Ended

Jun. 30, 2019

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 amounts related to investments, derivatives, and fair value measurements to conform to the current period presentation based on our adoption of the new accounting standard for financial instruments. We have recast prior period commercial cloud revenue to include the commercial portion of LinkedIn to provide a comparable view of our commercial cloud business performance. The commercial portion of LinkedIn includes LinkedIn Recruiter, Sales Navigator, premium business subscriptions, and other services for organizations. We have also recast components of the prior period deferred income tax assets and liabilities to conform to the current period presentation. The recast of these prior period amounts had no impact on our consolidated balance sheets, consolidated income statements, or net cash from or used in operating, financing, or investing on 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.

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 uncertain tax positions that have been recognized on our consolidated financial statements or tax returns; and determining the timing and amount of impairments for investments. 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 20 – 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.

As of June 30, 2019 and 2018, long-term accounts receivable, net of allowance for doubtful accounts, was $2.2 billion and $1.8 billion, respectively, and is 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,		2019			2018			2017

Balance, beginning of period	$	397		$	361		$	409
Charged to costs and other		153			134			58
Write-offs		(116	)		(98	)		(106	)


Balance, end of period	$	434		$	397		$	361

Allowance for doubtful accounts included in our consolidated balance sheets:

(In millions)


June 30,		2019		2018		2017

Accounts receivable, net of allowance for doubtful accounts	$	411	$	377	$	345
Other long-term assets		23		20		16


Total	$	434	$	397	$	361

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 14 – 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 online 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, $1.6 billion, and $1.5 billion in fiscal years 2019, 2018, and 2017, 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.

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.

Debt investments are classified as available-for-sale and realized gains and losses are recorded using the specific identification method. Changes in fair value, excluding other-than-temporary impairments, are recorded in OCI. Debt investments are 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, and the duration and extent to which the fair value is less than cost. 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. In addition, we 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 in other income (expense), net and a new cost basis in the investment is established.

Equity investments with readily determinable fair values are measured at fair value. Equity investments without readily determinable fair values are measured using the equity method, or measured at cost with adjustments for observable changes in price or impairments (referred to as the measurement alternative). We perform a qualitative assessment on a quarterly basis and recognize an impairment if there are sufficient indicators that the fair value of the investment is less than carrying value. Changes in value are recorded in other income (expense), net.

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

Derivatives

Derivative instruments are recognized as either assets or liabilities and 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, gains and losses are recognized in other income (expense), net with offsetting gains and losses on the hedged items.

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

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

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 investments 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 investments include commercial paper, certificates of deposit, U.S. agency securities, foreign government bonds, mortgage- and asset-backed securities, corporate notes and bonds, and municipal 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 assets and liabilities include investments in corporate notes and bonds, 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 equity investments without readily determinable fair values on a nonrecurring basis. 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.

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

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 generally use our incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at commencement date. 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

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 Accounting Guidance

Recently Adopted Accounting Guidance

Income Taxes – Intra-Entity Asset Transfers

In October 2016, the Financial Accounting Standards Board (“FASB”) issued new guidance requiring an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs, rather than when the asset has been sold to an outside party. We adopted the guidance effective July 1, 2018. Adoption of the guidance was applied using a modified retrospective approach through a cumulative-effect adjustment to retained earnings as of the effective date. We recorded a net cumulative-effect adjustment that resulted in an increase in retained earnings of $557 million, which reversed the previous deferral of income tax consequences and recorded new deferred tax assets from intra-entity transfers involving assets other than inventory, partially offset by a U.S. deferred tax liability related to global intangible low-taxed income (“GILTI”). Adoption of the standard resulted 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 in other current assets of $152 million. Adoption of the standard had no impact on cash from or used in operating, financing, or investing on our consolidated cash flows statements.

Financial Instruments – Recognition, Measurement, Presentation, and Disclosure

In January 2016, the FASB issued a new standard related to certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. Most prominent among the changes in the standard is the requirement for changes in the fair value of our equity investments, with certain exceptions, to be recognized through net income rather than OCI.

We adopted the standard effective July 1, 2018. Adoption of the standard was applied using a modified retrospective approach through a cumulative-effect adjustment from accumulated other comprehensive income (“AOCI”) to retained earnings as of the effective date, and we elected to measure equity investments without readily determinable fair values at cost with adjustments for observable changes in price or impairments. The cumulative-effect adjustment included 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. The impact on our consolidated balance sheets upon adoption was not material. Adoption of the standard had no impact on cash from or used in operating, financing, or investing on 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 evaluated the impact of this standard on our consolidated financial statements, including accounting policies, processes, and systems, and do not expect the impact to be material upon adoption.

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 adopted upon the effective date for us beginning July 1, 2020. 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 on our consolidated financial statements, including accounting policies, processes, and systems.

EARNINGS PER SHARE

12 Months Ended

Jun. 30, 2019

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,	2019		2018		2017

Net income available for common shareholders (A)	$	39,240	$	16,571	$	25,489

Weighted average outstanding shares of common stock (B)		7,673		7,700		7,746
Dilutive effect of stock-based awards		80		94		86


Common stock and common stock equivalents (C)		7,753		7,794		7,832


Earnings Per Share

Basic (A/B)	$	5.11	$	2.15	$	3.29
Diluted (A/C)	$	5.06	$	2.13	$	3.25

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, 2019

Other Income And Expenses [Abstract]

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,	2019			2018			2017

Interest and dividends income	$	2,762		$	2,214		$	1,387
Interest expense		(2,686	)		(2,733	)		(2,222	)
Net recognized gains on investments		648			2,399			2,583
Net gains (losses) on derivatives		144			(187	)		(510	)
Net losses on foreign currency remeasurements		(82	)		(218	)		(111	)
Other, net		(57	)		(59	)		(251	)


Total	$	729		$	1,416		$	876

Net Recognized Gains (Losses) on Investments

Net recognized gains (losses) on debt investments were as follows:

(In millions)


Year Ended June 30,	2019			2018			2017

Realized gains from sales of available-for-sale securities	$	12		$	27		$	108
Realized losses from sales of available-for-sale securities		(93	)		(987	)		(162	)
Other-than-temporary impairments of investments		(16	)		(6	)		(14	)


Total	$	(97	)	$	(966	)	$	(68	)

Net recognized gains (losses) on equity investments were as follows:

(In millions)


Year Ended June 30,	2019			2018			2017

Net realized gains on investments sold	$	276		$	3,406		$	2,692
Net unrealized gains on investments still held		479			0			0
Impairments of investments		(10	)		(41	)		(41	)


Total	$	745		$	3,365		$	2,651

INVESTMENTS

12 Months Ended

Jun. 30, 2019

Investments Debt And Equity Securities [Abstract]

INVESTMENTS

NOTE 4 — INVESTMENTS

Investment Components

The components of investments were as follows:

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


June 30, 2019

Changes in Fair Value Recorded in Other Comprehensive Income

Commercial paper		Level 2	$	2,211	$	0	$	0		$	2,211		$	1,773	$	438		$	0
Certificates of deposit		Level 2		2,018		0		0			2,018			1,430		588			0
U.S. government securities		Level 1		104,925		1,854		(104	)		106,675			769		105,906			0
U.S. agency securities		Level 2		988		0		0			988			698		290			0
Foreign government bonds		Level 2		6,350		4		(8	)		6,346			2,506		3,840			0
Mortgage- and asset-backed securities		Level 2		3,554		10		(3	)		3,561			0		3,561			0
Corporate notes and bonds		Level 2		7,437		111		(7	)		7,541			0		7,541			0
Corporate notes and bonds		Level 3		15		0		0			15			0		15			0
Municipal securities		Level 2		242		48		0			290			0		290			0
Municipal securities		Level 3		7		0		0			7			0		7			0


Total debt investments			$	127,747	$	2,027	$	(122	)	$	129,652		$	7,176	$	122,476		$	0


Changes in Fair Value Recorded in Net Income

Equity investments		Level 1								$	973		$	409	$	0		$	564
Equity investments		Other									2,085			0		0			2,085


Total equity investments										$	3,058		$	409	$	0		$	2,649

Cash										$	3,771		$	3,771	$	0		$	0
Derivatives, net^(a)											(13	)		0		(13	)		0


Total										$	136,468		$	11,356	$	122,463		$	2,649

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


June 30, 2018

Changes in Fair Value Recorded in Other Comprehensive Income

Commercial paper		Level 2	$	2,513	$	0	$	0		$	2,513	$	2,215	$	298	$	0
Certificates of deposit		Level 2		2,058		0		0			2,058		1,865		193		0
U.S. government securities		Level 1		108,120		62		(1,167	)		107,015		2,280		104,735		0
U.S. agency securities		Level 2		1,742		0		0			1,742		1,398		344		0
Foreign government bonds		Level 1		22		0		0			22		0		22		0
Foreign government bonds		Level 2		5,063		1		(10	)		5,054		0		5,054		0
Mortgage- and asset-backed securities		Level 2		3,864		4		(13	)		3,855		0		3,855		0
Corporate notes and bonds		Level 2		6,929		21		(56	)		6,894		0		6,894		0
Corporate notes and bonds		Level 3		15		0		0			15		0		15		0
Municipal securities		Level 2		271		37		(1	)		307		0		307		0


Total debt investments			$	130,597	$	125	$	(1,247	)	$	129,475	$	7,758	$	121,717	$	0


Equity investments		Level 1								$	533	$	246	$	0	$	287
Equity investments		Level 3									18		0		0		18
Equity investments		Other									1,558		0		1		1,557


Total equity investments										$	2,109	$	246	$	1	$	1,862


Cash										$	3,942	$	3,942	$	0	$	0
Derivatives, net^(a)											104		0		104		0


Total										$	135,630	$	11,946	$	121,822	$	1,862

(a)	Refer to Note 5 – Derivatives for further information on the fair value of our derivative instruments.

Equity investments presented as “Other” in the tables above include investments without readily determinable fair values measured using the equity method or measured at cost with adjustments for observable changes in price or impairments, and investments measured at fair value using net asset value as a practical expedient which are not categorized in the fair value hierarchy. As of June 30, 2019 and 2018, equity investments without readily determinable fair values measured at cost with adjustments for observable changes in price or impairments were $1.2 billion and $697 million, respectively.

As of June 30, 2019, we had no collateral received under agreements for loaned securities. As of June 30, 2018, collateral received under agreements for loaned securities was $1.8 billion and primarily comprised U.S. government and agency securities.

Unrealized Losses on Debt Investments

Debt 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, 2019

U.S. government and agency securities	$	1,491	$	(1	)	$	39,158	$	(103	)	$	40,649	$	(104	)
Foreign government bonds		25		0			77		(8	)		102		(8	)
Mortgage- and asset-backed securities		664		(1	)		378		(2	)		1,042		(3	)
Corporate notes and bonds		498		(3	)		376		(4	)		874		(7	)


Total	$	2,678	$	(5	)	$	39,989	$	(117	)	$	42,667	$	(122	)

	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	)


Total	$	91,037	$	(1,124	)	$	4,869	$	(123	)	$	95,906	$	(1,247	)

Unrealized losses from fixed-income securities are primarily attributable to changes in interest rates. 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, 2019

Due in one year or less	$	53,200	$	53,124
Due after one year through five years		47,016		47,783
Due after five years through 10 years		26,658		27,824
Due after 10 years		873		921


Total	$	127,747	$	129,652

DERIVATIVES

12 Months Ended

Jun. 30, 2019

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.

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 and are designated as cash flow hedging instruments. Principal currencies hedged include the euro, Japanese yen, British pound, Canadian dollar, and Australian dollar.

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.

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.

Equity

Securities held in our equity 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. In the past, to hedge our price risk, we also used and designated equity derivatives as hedging instruments, including puts, calls, swaps, and forwards.

Other

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.

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.

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.

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, 2019, 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.

The following table presents the notional amounts of our outstanding derivative instruments measured in U.S. dollar equivalents:

(In millions)	June 30, 2019		June 30, 2018


Designated as Hedging Instruments

Foreign exchange contracts sold	$	6,034	$	11,101

Not Designated as Hedging Instruments

Foreign exchange contracts purchased		14,889		9,425
Foreign exchange contracts sold		15,614		13,374
Equity contracts purchased		680		49
Equity contracts sold		5		5
Other contracts purchased		1,327		878
Other contracts sold		451		472

Fair Values of Derivative Instruments

The following table presents our derivative instruments:

	Derivative			Derivative				Derivative				Derivative
(In millions)	Assets			Liabilities				Assets				Liabilities


	June 30, 2019							June 30, 2018

Changes in Fair Value Recorded in Other Comprehensive Income

Designated as Hedging Instruments

Foreign exchange contracts	$	0			$	0			$	174			$	0

Changes in Fair Value Recorded in Net Income

Designated as Hedging Instruments

Foreign exchange contracts		0				(93	)			95				0

Not Designated as Hedging Instruments

Foreign exchange contracts		204				(172	)			256				(197	)
Equity contracts		38				0				2				(7	)
Other contracts		8				(7	)			11				(3	)


Gross amounts of derivatives		250				(272	)			538				(207	)
Gross amounts of derivatives offset in the balance sheet		(113	)			114				(152	)			153
Cash collateral received		0				(78	)			0				(235	)


Net amounts of derivatives	$	137			$	(236	)		$	386			$	(289	)

Reported as

Short-term investments	$	(13	)		$	0			$	104			$	0
Other current assets		146				0				260				0
Other long-term assets		4				0				22				0
Other current liabilities		0				(221	)			0				(288	)
Other long-term liabilities		0				(15	)			0				(1	)


Total	$	137			$	(236	)		$	386			$	(289	)

Gross derivative assets and liabilities subject to legally enforceable master netting agreements for which we have elected to offset were $247 million and $272 million, respectively, as of June 30, 2019, and $533 million and $207 million, respectively, as of June 30, 2018.

The following table presents the fair value of our derivatives instruments on a gross basis:

(In millions)	Level 1				Level 2		Level 3		Total


June 30, 2019

Derivative assets	$	0		$	247		$	3	$	250
Derivative liabilities		0			(272	)		0		(272	)

June 30, 2018

Derivative assets		1			535			2		538
Derivative liabilities		(1	)		(206	)		0		(207	)

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,	2019		2018			2017

Foreign Exchange Contracts

Derivatives	$	38	$	25		$	441
Hedged items		130		78			(386	)


Total amount of ineffectiveness	$	168	$	103		$	55


Equity Contracts

Derivatives	$	0	$	(324	)	$	(74	)
Hedged items		0		324			74


Total amount of ineffectiveness	$	0	$	0		$	0


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

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,	2019			2018			2017

Effective Portion

Gains recognized in other comprehensive income (loss), net of tax of $1, $11, and $4	$	159		$	219		$	328
Gains reclassified from accumulated other comprehensive income (loss) into revenue		341			185			555

Amount Excluded from Effectiveness Assessment and Ineffective Portion

Losses recognized in other income (expense), net		(64	)		(255	)		(389	)

We do not have any net derivative gains included in AOCI as of June 30, 2019 that 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 2019.

Non-designated Derivative Gains (Losses)

We recognized in other income (expense), net the following gains (losses) on derivatives not designated as hedging instruments:

(In millions)


Year Ended June 30,	2019			2018			2017

Foreign exchange contracts	$	(97	)	$	(33	)	$	(117	)
Equity contracts		3			(87	)		(114	)
Other contracts		35			(17	)		(3	)


Total	$	(59	)	$	(137	)	$	(234	)

INVENTORIES

12 Months Ended

Jun. 30, 2019

Inventory Disclosure [Abstract]

INVENTORIES

NOTE 6 — INVENTORIES

The components of inventories were as follows:

(In millions)


June 30,	2019		2018

Raw materials	$	399	$	655
Work in process		53		54
Finished goods		1,611		1,953


Total	$	2,063	$	2,662

PROPERTY AND EQUIPMENT

12 Months Ended

Jun. 30, 2019

Property Plant And Equipment [Abstract]

PROPERTY AND EQUIPMENT

NOTE 7 — PROPERTY AND EQUIPMENT

The components of property and equipment were as follows:

(In millions)


June 30,	2019			2018

Land	$	1,540		$	1,254
Buildings and improvements		26,288			20,604
Leasehold improvements		5,316			4,735
Computer equipment and software		33,823			27,633
Furniture and equipment		4,840			4,457


Total, at cost		71,807			58,683
Accumulated depreciation		(35,330	)		(29,223	)


Total, net	$	36,477		$	29,460

During fiscal years 2019, 2018, and 2017, depreciation expense was $9.7 billion, $7.7 billion, and $6.1 billion, respectively. We have committed $4.0 billion for the construction of new buildings, building improvements, and leasehold improvements as of June 30, 2019.

BUSINESS COMBINATIONS

12 Months Ended

Jun. 30, 2019

Business Combinations [Abstract]

BUSINESS COMBINATIONS

NOTE 8 — BUSINESS COMBINATIONS

GitHub, Inc.

On October 25, 2018, we acquired GitHub, Inc. (“GitHub”), a software development platform, in a $7.5 billion stock transaction (inclusive of total cash payments of $1.3 billion in respect of vested GitHub equity awards and an indemnity escrow). The acquisition is expected to empower developers to achieve more at every stage of the development lifecycle, accelerate enterprise use of GitHub, and bring Microsoft’s developer tools and services to new audiences. The financial results of GitHub have been included in our consolidated financial statements since the date of the acquisition. GitHub is reported as part of our Intelligent Cloud segment.

The allocation of the purchase price to goodwill was completed as of June 30, 2019. The major classes of assets and liabilities to which we allocated the purchase price were as follows:

(In millions)


Cash, cash equivalents, and short-term investments	$	234
Goodwill		5,497
Intangible assets		1,267
Other assets		143
Other liabilities		(217	)


Total	$	6,924

The goodwill recognized in connection with the acquisition is primarily attributable to anticipated synergies from future growth and is not expected to be deductible for tax purposes. We assigned the goodwill to our Intelligent Cloud segment.

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

(In millions)	Amount		Weighted Average Life


Customer-related	$	648		8 years
Technology-based		447		5 years
Marketing-related		170		10 years
Contract-based		2		2 years


Total	$	1,267		7 years

Transactions recognized separately from the purchase price allocation were approximately $600 million, primarily related to equity awards recognized as expense over the related service period.

LinkedIn Corporation

On December 8, 2016, we completed our acquisition of all issued and outstanding shares of LinkedIn Corporation (“LinkedIn”), 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 11 – Debt for further information.

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

(In millions)	Amount		Weighted Average Life


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


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

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

(In millions)


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 per share amounts)


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.

Other

During fiscal year 2019, we completed 19 additional acquisitions for $1.6 billion, substantially all of which were paid in cash. These entities have been included in our consolidated results of operations since their respective acquisition dates.

GOODWILL

12 Months Ended

Jun. 30, 2019

Goodwill And Intangible Assets Disclosure [Abstract]

GOODWILL

NOTE 9 — GOODWILL

Changes in the carrying amount of goodwill were as follows:

(In millions)	June 30, 2017			Acquisitions			Other				June 30, 2018			Acquisitions				Other				June 30, 2019


Productivity and Business Processes		$	23,739		$	72		$	12			$	23,823		$	514			$	(60	)		$	24,277
Intelligent Cloud			5,555			164			(16	)			5,703			5,605	^(a)			43	^(a)			11,351
More Personal Computing			5,828			394			(65	)			6,157			289				(48	)			6,398


Total		$	35,122		$	630		$	(69	)		$	35,683		$	6,408			$	(65	)		$	42,026

(a)	Includes goodwill of $5.5 billion related to GitHub. See Note 8 – Business Combinations for further information.

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

Any change in the goodwill amounts resulting from foreign currency translations and purchase accounting adjustments are presented as “Other” in the table above. Also included in “Other” are business dispositions and transfers between segments due to reorganizations, as applicable.

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, 2019, May 1, 2018, or May 1, 2017 tests. As of June 30, 2019 and 2018, accumulated goodwill impairment was $11.3 billion.

INTANGIBLE ASSETS

12 Months Ended

Jun. 30, 2019

Goodwill And Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS

NOTE 10 — INTANGIBLE ASSETS

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

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


June 30,							2019							2018

Technology-based	$	7,691		$	(5,771	)	$	1,920	$	7,220	$	(5,018	)	$	2,202
Customer-related		4,709			(1,785	)		2,924		4,031		(1,205	)		2,826
Marketing-related		4,165			(1,327	)		2,838		4,006		(1,071	)		2,935
Contract-based		574			(506	)		68		679		(589	)		90


Total	$	17,139	^(a)	$	(9,389	)	$	7,750	$	15,936	$	(7,883	)	$	8,053

(a)	Includes intangible assets of $1.3 billion related to GitHub. See Note 8 – Business Combinations for further information.

No material impairments of intangible assets were identified during fiscal years 2019, 2018, or 2017.

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,	2019				2018

Technology-based	$	814		5 years	$	178		4 years
Marketing-related		177		10 years		14		5 years
Contract-based		7		3 years		14		4 years
Customer-related		710		8 years		13		5 years


Total	$	1,708		7 years	$	219		5 years

Intangible assets amortization expense was $1.9 billion, $2.2 billion, and $1.7 billion for fiscal years 2019, 2018, and 2017, respectively.

The following table outlines the estimated future amortization expense related to intangible assets held as of June 30, 2019:

(In millions)


Year Ending June 30,

2020	$	1,488
2021		1,282
2022		1,187
2023		1,053
2024		737
Thereafter		2,003


Total	$	7,750

DEBT

12 Months Ended

Jun. 30, 2019

Debt Disclosure [Abstract]

DEBT

NOTE 11 — DEBT

Short-term Debt

As of June 30, 2019 and 2018, we had no commercial paper issued or outstanding. Effective August 31, 2018, we

terminated our credit facilities, which served as back-up for our commercial paper program.

Long-term Debt

As of June 30, 2019, the total carrying value and estimated fair value of our long-term debt, including the current portion, were $72.2 billion and $78.9 billion, respectively. 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. 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, 2019		Face Value June 30, 2018		Stated Interest Rate	Effective Interest Rate


Notes

November 3, 2018	$	0	$	1,750	1.300%	1.396%
December 6, 2018		0		1,250	1.625%	1.824%
June 1, 2019		0		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)		1,994		2,044	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)		1,993		2,044	3.125%	3.218%
May 2, 2033 ^(a)		626		642	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	$	72,781	$	76,898

(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 2019, 2018, and 2017 was $2.4 billion, $2.4 billion, and $1.6 billion, respectively. As of June 30, 2019 and 2018, the aggregate debt issuance costs and unamortized discount associated with our long-term debt, including the current portion, were $603 million and $658 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,

2020	$	5,518
2021		3,750
2022		7,994
2023		2,750
2024		5,250
Thereafter		47,519


Total	$	72,781

INCOME TAXES

12 Months Ended

Jun. 30, 2019

Income Tax Disclosure [Abstract]

INCOME TAXES

NOTE 12 — INCOME TAXES

Tax Cuts and Jobs Act

On December 22, 2017, the Tax Cuts and Jobs Act (“TCJA”) was enacted into law, which significantly changed existing U.S. tax law and included 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. In fiscal year 2018, the TCJA required us to incur a 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 reduced the U.S. federal statutory tax rate from 35% to 21% effective January 1, 2018. In addition, the TCJA subjected us to a tax on our GILTI effective July 1, 2018.

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, under which we recorded the corresponding deferred tax assets and liabilities on our consolidated balance sheets.

During fiscal year 2018, we recorded a net charge of $13.7 billion related to the enactment of 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. During the second quarter of fiscal year 2019, we recorded additional tax expense of $157 million, which related to completing our provisional accounting for GILTI deferred taxes pursuant to Securities and Exchange Commission Staff Accounting Bulletin No. 118.

In the fourth quarter of fiscal year 2019, in response to the TCJA and recently issued regulations, we transferred certain intangible properties held by our foreign subsidiaries to the U.S. and Ireland. The transfers of intangible properties resulted in a $2.6 billion net income tax benefit recorded in the fourth quarter of fiscal year 2019, as the value of future tax deductions exceeded the current tax liability from foreign jurisdictions and U.S. GILTI tax.

Provision for Income Taxes

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

(In millions)


Year Ended June 30,	2019			2018			2017

Current Taxes

U.S. federal	$	4,718		$	19,764		$	2,739
U.S. state and local		662			934			30
Foreign		5,531			4,348			2,472


Current taxes	$	10,911		$	25,046		$	5,241

Deferred Taxes

U.S. federal	$	(5,647	)	$	(4,292	)	$	(554	)
U.S. state and local		(1,010	)		(458	)		269
Foreign		194			(393	)		(544	)


Deferred taxes	$	(6,463	)	$	(5,143	)	$	(829	)


Provision for income taxes	$	4,448		$	19,903		$	4,412

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

(In millions)


Year Ended June 30,	2019		2018		2017

U.S.	$	15,799	$	11,527	$	6,843
Foreign		27,889		24,947		23,058


Income before income taxes	$	43,688	$	36,474	$	29,901

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,	2019		2018		2017

Federal statutory rate		21.0%		28.1%		35.0%
Effect of:
Foreign earnings taxed at lower rates		(4.1)%		(7.8)%		(11.6)%
Impact of the enactment of the TCJA		0.4%		37.7%		0%
Phone business losses		0%		0%		(5.7)%
Impact of intangible property transfers		(5.9)%		0%		0%
Foreign-derived intangible income deduction		(1.4)%		0%		0%
Research and development credit		(1.1)%		(1.3)%		(0.9)%
Excess tax benefits relating to stock-based compensation		(2.2)%		(2.5)%		(2.1)%
Interest, net		1.0%		1.2%		1.4%
Other reconciling items, net		2.5%		(0.8)%		(1.3)%


Effective rate		10.2%		54.6%		14.8%

The decrease from the federal statutory rate in fiscal year 2019 is primarily due to a $2.6 billion net income tax benefit related to intangible property transfers, and earnings taxed at lower rates in foreign jurisdictions resulting from producing and distributing our products and services through our foreign regional operations centers in Ireland, Singapore, and Puerto Rico. The 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 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 82%, 87%, and 76% of our foreign income before tax in fiscal years 2019, 2018, and 2017, respectively. Other reconciling items, net consists primarily of tax credits, GILTI, and U.S. state income taxes. In fiscal years 2019, 2018, and 2017, there were no individually significant other reconciling items.

The decrease in our effective tax rate for fiscal year 2019 compared to fiscal year 2018 was primarily due to the net charge related to the enactment of the TCJA in the second quarter of fiscal year 2018, and a $2.6 billion net income tax benefit in the fourth quarter of fiscal year 2019 related to intangible property transfers. 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 components of the deferred income tax assets and liabilities were as follows:

(In millions)


June 30,	2019				2018

Deferred Income Tax Assets

Stock-based compensation expense	$		406		$		460
Accruals, reserves, and other expenses			2,287				1,832
Loss and credit carryforwards			3,518				3,369
Depreciation and amortization			7,046				351
Leasing liabilities			1,594				1,427
Unearned revenue			475				0
Other			367				56


Deferred income tax assets			15,693				7,495
Less valuation allowance			(3,214	)			(3,186	)


Deferred income tax assets, net of valuation allowance	$		12,479		$		4,309


Deferred Income Tax Liabilities

Unrealized gain on investments and debt	$	(738		)	$	0
Unearned revenue		(30		)		(639		)
Depreciation and amortization		0				(1,164		)
Leasing assets		(1,510		)		(1,366		)
Deferred GILTI tax liabilities		(2,607		)		(61		)
Other		(291		)		(251		)


Deferred income tax liabilities	$	(5,176		)	$	(3,481		)


Net deferred income tax assets (liabilities)	$	7,303			$	828


Reported As

Other long-term assets	$	7,536			$	1,369
Long-term deferred income tax liabilities		(233		)		(541		)


Net deferred income tax assets (liabilities)	$	7,303			$	828

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

As of June 30, 2019, we had federal, state and foreign net operating loss carryforwards of $978 million, $770 million, and $11.6 billion, respectively. The federal and state net operating loss carryforwards will expire in various years from fiscal 2020 through 2039, 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.

Income taxes paid, net of refunds, were $8.4 billion, $5.5 billion, and $2.4 billion in fiscal years 2019, 2018, and 2017, respectively.

Uncertain Tax Positions

Gross unrecognized tax benefits related to uncertain tax positions as of June 30, 2019, 2018, and 2017, were $13.1 billion, $12.0 billion, and $11.7 billion, respectively, which were primarily included in long-term income taxes in our consolidated balance sheets. If recognized, the resulting tax benefit would affect our effective tax rates for fiscal years 2019, 2018, and 2017 by $12.0 billion, $11.3 billion, and $10.2 billion, respectively.

As of June 30, 2019, 2018, and 2017, we had accrued interest expense related to uncertain tax positions of $3.4 billion, $3.0 billion, and $2.3 billion, respectively, net of income tax benefits. The provision for (benefit from) income taxes for fiscal years 2019, 2018, and 2017 included interest expense related to uncertain tax positions of $515 million, $688 million, and $399 million, respectively, net of income tax benefits.

The aggregate changes in the gross unrecognized tax benefits related to uncertain tax positions were as follows:

(In millions)


Year Ended June 30,	2019			2018			2017

Beginning unrecognized tax benefits	$	11,961		$	11,737		$	10,164
Decreases related to settlements		(316	)		(193	)		(4	)
Increases for tax positions related to the current year		2,106			1,445			1,277
Increases for tax positions related to prior years		508			151			397
Decreases for tax positions related to prior years		(1,113	)		(1,176	)		(49	)
Decreases due to lapsed statutes of limitations		0			(3	)		(48	)


Ending unrecognized tax benefits	$	13,146		$	11,961		$	11,737

We settled a portion of the Internal Revenue Service (“IRS”) audit for tax years 2004 to 2006 in fiscal year 2011. In February 2012, the IRS withdrew its 2011 Revenue Agents Report related to unresolved issues for tax years 2004 to 2006 and reopened the audit phase of the examination. We also settled a portion of the IRS audit for tax years 2007 to 2009 in fiscal year 2016, and a portion of the IRS audit for tax years 2010 to 2013 in fiscal year 2018. We remain under audit for tax years 2004 to 2013. We expect the IRS to begin an examination of tax years 2014 to 2017 within the next 12 months.

As of June 30, 2019, the primary unresolved issues for the IRS audits relate to transfer pricing, which could have a material impact on our consolidated financial statements when the matters are resolved. 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 2018, 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.

UNEARNED REVENUE

12 Months Ended

Jun. 30, 2019

Revenue From Contract With Customer [Abstract]

UNEARNED REVENUE

NOTE 14 — UNEARNED REVENUE

Unearned revenue by segment was as follows:

(In millions)


June 30,	2019		2018

Productivity and Business Processes	$	16,831	$	14,864
Intelligent Cloud		16,988		14,706
More Personal Computing		3,387		3,150


Total	$	37,206	$	32,720

Changes in unearned revenue were as follows:

(In millions)


Year Ended June 30, 2019

Balance, beginning of period	$	32,720
Deferral of revenue		69,493
Recognition of unearned revenue		(65,007	)


Balance, end of period	$	37,206

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 $91 billion as of June 30, 2019, of which we expect to recognize approximately 50% of the revenue over the next 12 months and the remainder thereafter. Many customers are committing to our products and services for longer contract terms, which is increasing the percentage of contracted revenue that will be recognized beyond the next 12 months.

LEASES

12 Months Ended

Jun. 30, 2019

Leases [Abstract]

LEASES

NOTE 15 — 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,	2019			2018		2017

Operating lease cost	$	1,707	$	1,585	$	1,412


Finance lease cost:
Amortization of right-of-use assets	$	370	$	243	$	104
Interest on lease liabilities		247		175		68


Total finance lease cost	$	617	$	418	$	172

Supplemental cash flow information related to leases was as follows:

(In millions)


Year Ended June 30,	2019			2018		2017

Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	1,670	$	1,522	$	1,157
Operating cash flows from finance leases		247		175		68
Financing cash flows from finance leases		221		144		46

Right-of-use assets obtained in exchange for lease obligations:
Operating leases		2,303		1,571		1,270
Finance leases		2,532		1,933		1,773

Supplemental balance sheet information related to leases was as follows:

(In millions, except lease term and discount rate)


June 30,	2019			2018

Operating Leases

Operating lease right-of-use assets	$	7,379		$	6,686


Other current liabilities	$	1,515		$	1,399
Operating lease liabilities		6,188			5,568


Total operating lease liabilities	$	7,703		$	6,967


Finance Leases

Property and equipment, at cost	$	7,041		$	4,543
Accumulated depreciation		(774	)		(404	)


Property and equipment, net	$	6,267		$	4,139


Other current liabilities	$	317		$	176
Other long-term liabilities		6,257			4,125


Total finance lease liabilities	$	6,574		$	4,301

Weighted Average Remaining Lease Term

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

Weighted Average Discount Rate

Operating leases		3.0%			2.7%
Finance leases		4.6%			5.2%

Maturities of lease liabilities were as follows:

(In millions)


Year Ending June 30,	Operating Leases			Finance Leases

2020	$	1,678		$	591
2021		1,438			616
2022		1,235			626
2023		1,036			631
2024		839			641
Thereafter		2,438			5,671


Total lease payments		8,664			8,776
Less imputed interest		(961	)		(2,202	)


Total	$	7,703		$	6,574

As of June 30, 2019, we have additional operating and finance leases, primarily for datacenters, that have not yet commenced of $2.3 billion and $6.1 billion, respectively. These operating and finance leases will commence between fiscal year 2020 and fiscal year 2022 with lease terms of 1 year to 15 years.

CONTINGENCIES

12 Months Ended

Jun. 30, 2019

Commitments And Contingencies Disclosure [Abstract]

CONTINGENCIES

NOTE 16 — CONTINGENCIES

Patent and Intellectual Property Claims

There were 44 patent infringement cases pending against Microsoft as of June 30, 2019, 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 submitted the proposed settlement agreement to the courts in all three jurisdictions for approval. The final settlement has been approved by the courts in British Columbia, Ontario, and Quebec, and the claims administration process will commence.

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. The SAMR has presented its preliminary views as to certain possible violations of China's Anti-Monopoly Law, and discussions are expected to continue.

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 40 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 to the District of Columbia Court of Appeals challenging the standard for evaluating expert scientific evidence. 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. In August 2018, the trial court issued an order striking portions of the plaintiffs’ expert reports. A hearing is expected to be scheduled in the second half of calendar year 2019.

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. Plaintiffs sought an interlocutory appeal to the U.S. Court of Appeals for the Ninth Circuit, which was granted in September 2018. Oral argument is scheduled for October 2019.

Other Contingencies

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

As of June 30, 2019, we accrued aggregate legal liabilities of $386 million. While we intend to defend these matters vigorously, adverse outcomes that we estimate could reach approximately $1.0 billion in aggregate beyond recorded amounts are reasonably possible. Were unfavorable final outcomes to occur, there exists the possibility of a material adverse impact on our consolidated financial statements for the period in which the effects become reasonably estimable.

STOCKHOLDERS' EQUITY

12 Months Ended

Jun. 30, 2019

STOCKHOLDERS' EQUITY

NOTE 17 — STOCKHOLDERS’ EQUITY

Shares Outstanding

Shares of common stock outstanding were as follows:

(In millions)


Year Ended June 30,	2019			2018			2017

Balance, beginning of year		7,677			7,708			7,808
Issued		116			68			70
Repurchased		(150	)		(99	)		(170	)


Balance, end of year		7,643			7,677			7,708

Share Repurchases

On September 16, 2013, our Board of Directors approved a share repurchase program (“2013 Share Repurchase Program”) authorizing up to $40.0 billion in share repurchases. The 2013 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 (“2016 Share Repurchase Program”). This share repurchase program commenced on December 22, 2016 following completion of the 2013 Share Repurchase Program, has no expiration date, and may be suspended or discontinued at any time without notice. As of June 30, 2019, $11.4 billion remained of the 2016 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,	2019				2018				2017

First Quarter		24	$	2,600		22	$	1,600		63	$	3,550
Second Quarter		57		6,100		22		1,800		59		3,533
Third Quarter		36		3,899		34		3,100		25		1,600
Fourth Quarter		33		4,200		21		2,100		23		1,600


Total		150	$	16,799		99	$	8,600		170	$	10,283

Shares repurchased in the first and second quarter of fiscal year 2017 were under the 2013 Share Repurchase Program. All other shares repurchased were under the 2016 Share Repurchase Program. The above table excludes shares repurchased to settle employee tax withholding related to the vesting of stock awards of $2.7 billion, $2.1 billion, and $1.5 billion for fiscal years 2019, 2018, and 2017, respectively. All share repurchases were made using cash resources.

Dividends

Our Board of Directors declared the following dividends:

Declaration Date	Record Date		Payment Date		Dividend Per Share			Amount


Fiscal Year 2019								(In millions)

September 18, 2018		November 15, 2018		December 13, 2018		$	0.46	$	3,544
November 28, 2018		February 21, 2019		March 14, 2019			0.46		3,526
March 11, 2019		May 16, 2019		June 13, 2019			0.46		3,521
June 12, 2019		August 15, 2019		September 12, 2019			0.46		3,516


Total						$	1.84	$	14,107

Fiscal Year 2018

September 19, 2017		November 16, 2017		December 14, 2017		$	0.42	$	3,238
November 29, 2017		February 15, 2018		March 8, 2018			0.42		3,232
March 12, 2018		May 17, 2018		June 14, 2018			0.42		3,226
June 13, 2018		August 16, 2018		September 13, 2018			0.42		3,220


Total						$	1.68	$	12,916

The dividend declared on June 12, 2019 was included in other current liabilities as of June 30, 2019.

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

12 Months Ended

Jun. 30, 2019

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

NOTE 18 — 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,	2019			2018			2017

Derivatives

Balance, beginning of period	$	173		$	134		$	352
Unrealized gains, net of tax of $2, $11, and $4		160			218			328
Reclassification adjustments for gains included in revenue		(341	)		(185	)		(555	)
Tax expense included in provision for income taxes		8			6			9


Amounts reclassified from accumulated other comprehensive income (loss)		(333	)		(179	)		(546	)


Net change related to derivatives, net of tax of $(6), $5, and $(5)		(173	)		39			(218	)


Balance, end of period	$	0		$	173		$	134


Investments

Balance, beginning of period	$	(850	)	$	1,825		$	2,941
Unrealized gains (losses), net of tax of $616, $(427), and $267		2,331			(1,146	)		517
Reclassification adjustments for (gains) losses included in other income (expense), net		93			(2,309	)		(2,513	)
Tax expense (benefit) included in provision for income taxes		(19	)		738			880


Amounts reclassified from accumulated other comprehensive income (loss)		74			(1,571	)		(1,633	)


Net change related to investments, net of tax of $635, $(1,165), and $(613)		2,405			(2,717	)		(1,116	)
Cumulative effect of accounting changes		(67	)		42			0


Balance, end of period	$	1,488		$	(850	)	$	1,825


Translation Adjustments and Other

Balance, beginning of period	$	(1,510	)	$	(1,332	)	$	(1,499	)
Translation adjustments and other, net of tax effects of $(1), $0, and $9		(318	)		(178	)		167


Balance, end of period	$	(1,828	)	$	(1,510	)	$	(1,332	)


Accumulated other comprehensive income (loss), end of period	$	(340	)	$	(2,187	)	$	627

EMPLOYEE STOCK AND SAVINGS PLANS

12 Months Ended

Jun. 30, 2019

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

EMPLOYEE STOCK AND SAVINGS PLANS

NOTE 19 — EMPLOYEE STOCK AND SAVINGS PLANS

We grant stock-based compensation to employees and directors. As of June 30, 2019, an aggregate of 327 million shares were authorized for future grant under our stock plans. Awards that expire or are canceled without delivery of shares generally become available for issuance under the plans. We issue new shares of Microsoft common stock to satisfy vesting of awards granted under our stock plans. We also have an ESPP for all eligible employees.

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

(In millions)


Year Ended June 30,	2019		2018		2017

Stock-based compensation expense	$	4,652	$	3,940	$	3,266
Income tax benefits related to stock-based compensation		816		823		1,066

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,	2019		2018		2017

Dividends per share (quarterly amounts)		$0.42 - $0.46		$0.39 - $0.42		$0.36 - $0.39
Interest rates		1.8% - 3.1%		1.7% - 2.9%		1.2% - 2.2%

During fiscal year 2019, the following activity occurred under our stock plans:

Shares			Weighted Average Grant-Date Fair Value


(In millions)

Stock Awards

Nonvested balance, beginning of year	174		$	57.85
Granted ^(a)	63			107.02
Vested	(77	)		57.08
Forfeited	(13	)		69.35


Nonvested balance, end of year	147		$	78.49

(a)	Includes 2 million, 3 million, and 2 million of PSUs granted at target and performance adjustments above target levels for fiscal years 2019, 2018, and 2017, respectively.

As of June 30, 2019, there was approximately $8.6 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 $107.02, $75.88, and $55.64 for fiscal years 2019, 2018, and 2017, respectively. The fair value of stock awards vested was $8.7 billion, $6.6 billion, and $4.8 billion, for fiscal years 2019, 2018, and 2017, 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,	2019		2018		2017

Shares purchased		11		13		13
Average price per share	$	104.85	$	76.40	$	56.36

As of June 30, 2019, 105 million shares of our common stock were reserved for future issuance through the ESPP.

Savings Plan

We have savings plans in the U.S. that qualify under Section 401(k) of the Internal Revenue Code, and a number of savings plans in international locations. Eligible U.S. employees may contribute a portion of their salary into the savings plans, subject to certain limitations. We contribute fifty cents for each dollar a participant contributes into the plans, with a maximum employer contribution of 50% of the IRS contribution limit for the calendar year. Employer-funded retirement benefits for all plans were $877 million, $807 million, and $734 million in fiscal years 2019, 2018, and 2017, respectively, and were expensed as contributed.

SEGMENT INFORMATION AND GEOGRAPHIC DATA

12 Months Ended

Jun. 30, 2019

Segment Reporting [Abstract]

SEGMENT INFORMATION AND GEOGRAPHIC DATA

NOTE 20 — 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, Microsoft Teams, Office 365 Security and Compliance, and Skype for Business, 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 365, a set of cloud-based applications across ERP and CRM, Dynamics ERP on-premises, and Dynamics CRM on-premises.

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, GitHub, 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, cloud services, 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 restructuring expenses.

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

(In millions)


Year Ended June 30,		2019		2018		2017

Revenue

Productivity and Business Processes	$	41,160	$	35,865	$	29,870
Intelligent Cloud		38,985		32,219		27,407
More Personal Computing		45,698		42,276		39,294


Total	$	125,843	$	110,360	$	96,571


Operating Income (Loss)

Productivity and Business Processes	$	16,219	$	12,924	$	11,389
Intelligent Cloud		13,920		11,524		9,127
More Personal Computing		12,820		10,610		8,815
Corporate and Other		0		0		(306	)


Total	$	42,959	$	35,058	$	29,025

Corporate and Other operating loss comprised restructuring expenses.

No sales to an individual customer or country other than the United States accounted for more than 10% of revenue for fiscal years 2019, 2018, or 2017. Revenue, classified by the major geographic areas in which our customers were located, was as follows:

(In millions)


Year Ended June 30,	2019		2018		2017

United States ^(a)	$	64,199	$	55,926	$	51,078
Other countries		61,644		54,434		45,493


Total	$	125,843	$	110,360	$	96,571

(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,	2019		2018		2017

Server products and cloud services	$	32,622	$	26,129	$	21,649
Office products and cloud services		31,769		28,316		25,573
Windows		20,395		19,518		18,593
Gaming		11,386		10,353		9,051
Search advertising		7,628		7,012		6,219
LinkedIn		6,754		5,259		2,271
Enterprise Services		6,124		5,846		5,542
Devices		6,095		5,134		5,062
Other		3,070		2,793		2,611


Total	$	125,843	$	110,360	$	96,571

Our commercial cloud revenue, which includes Office 365 Commercial, Azure, the commercial portion of LinkedIn, Dynamics 365, and other commercial cloud properties, was $38.1 billion, $26.6 billion and $16.2 billion in fiscal years 2019, 2018, and 2017, respectively. These amounts are primarily included in Office products and cloud services, Server products and cloud services, and LinkedIn 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,	2019		2018		2017

United States	$	55,252	$	44,501	$	42,730
Ireland		12,958		12,843		12,889
Other countries		25,422		22,538		19,898


Total	$	93,632	$	79,882	$	75,517

QUARTERLY INFORMATION (UNAUDITED)

12 Months Ended

Jun. 30, 2019

Quarterly Financial Information Disclosure [Abstract]

QUARTERLY INFORMATION (UNAUDITED)

NOTE 21 — QUARTERLY INFORMATION (UNAUDITED)

(In millions, except per share amounts)


Quarter Ended	September 30		December 31		March 31		June 30		Total

Fiscal Year 2019

Revenue	$	29,084	$	32,471	$	30,571	$	33,717	$	125,843
Gross margin		19,179		20,048		20,401		23,305		82,933
Operating income		9,955		10,258		10,341		12,405		42,959
Net income ^(a)		8,824		8,420		8,809		13,187		39,240
Basic earnings per share		1.15		1.09		1.15		1.72		5.11
Diluted earnings per share ^(b)		1.14		1.08		1.14		1.71		5.06

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) ⁽^c⁾		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 ⁽^d⁾		0.84		(0.82	)		0.95		1.14		2.13

(a)

Reflects the $157 million net charge related to the enactment of the TCJA for the second quarter and the $2.6 billion net income tax benefit related to the intangible property transfers for the fourth quarter, which together increased net income by $2.4 billion for fiscal year 2019. See Note 12 – Income Taxes for further information.

(b)	Reflects the net charge related to the enactment of the TCJA and the net income tax benefit related to the intangible property transfers, which decreased (increased) diluted EPS $0.02 for the second quarter, $(0.34) for the fourth quarter, and $(0.31) for fiscal year 2019.

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

(d)	Reflects the net charge (benefit) related to the enactment of 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.

ACCOUNTING POLICIES (Policies)

12 Months Ended

Jun. 30, 2019

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

The consolidated financial statements include the accounts of Microsoft Corporation and its subsidiaries. Intercompany transactions and balances have been eliminated.

Estimates and Assumptions

Foreign Currencies

Product Revenue and Service and Other Revenue

Revenue Recognition

Nature of Products and Services

Refer to Note 20 – Segment Information and Geographic Data for further information, including revenue by significant product and service offering.

Significant Judgments

Contract Balances

Activity in the allowance for doubtful accounts was as follows:

(In millions)


Year Ended June 30,		2019			2018			2017

Balance, beginning of period	$	397		$	361		$	409
Charged to costs and other		153			134			58
Write-offs		(116	)		(98	)		(106	)


Balance, end of period	$	434		$	397		$	361

Allowance for doubtful accounts included in our consolidated balance sheets:

(In millions)


June 30,		2019		2018		2017

Accounts receivable, net of allowance for doubtful accounts	$	411	$	377	$	345
Other long-term assets		23		20		16


Total	$	434	$	397	$	361

Refer to Note 14 – 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

Tax Cuts and Jobs Act

Investments

Derivatives

For derivative instruments designated as fair value hedges, gains and losses are recognized in other income (expense), net with offsetting gains and losses on the hedged items.

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

Fair Value Measurements

•

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

Inventories

Property and Equipment

Leases

Recent Accounting Guidance

Intangible Assets

Recently Adopted Accounting Guidance

Income Taxes – Intra-Entity Asset Transfers

Financial Instruments – Recognition, Measurement, Presentation, and Disclosure

Recent Accounting Guidance Not Yet Adopted

Financial Instruments – Targeted Improvements to Accounting for Hedging Activities

Financial Instruments – Credit Losses

Earnings Per Share

Segment Reporting

ACCOUNTING POLICIES (Tables)

12 Months Ended

Jun. 30, 2019

Accounting Policies [Abstract]

Allowance for Doubtful Accounts

Activity in the allowance for doubtful accounts was as follows:

(In millions)


Year Ended June 30,		2019			2018			2017

Balance, beginning of period	$	397		$	361		$	409
Charged to costs and other		153			134			58
Write-offs		(116	)		(98	)		(106	)


Balance, end of period	$	434		$	397		$	361

Allowance for doubtful accounts included in our consolidated balance sheets:

(In millions)


June 30,		2019		2018		2017

Accounts receivable, net of allowance for doubtful accounts	$	411	$	377	$	345
Other long-term assets		23		20		16


Total	$	434	$	397	$	361

EARNINGS PER SHARE (Tables)

12 Months Ended

Jun. 30, 2019

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,	2019		2018		2017

Net income available for common shareholders (A)	$	39,240	$	16,571	$	25,489

Weighted average outstanding shares of common stock (B)		7,673		7,700		7,746
Dilutive effect of stock-based awards		80		94		86


Common stock and common stock equivalents (C)		7,753		7,794		7,832


Earnings Per Share

Basic (A/B)	$	5.11	$	2.15	$	3.29
Diluted (A/C)	$	5.06	$	2.13	$	3.25

OTHER INCOME (EXPENSE), NET (Tables)

12 Months Ended

Jun. 30, 2019

Components of Other Income (Expense), Net

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

(In millions)


Year Ended June 30,	2019			2018			2017

Interest and dividends income	$	2,762		$	2,214		$	1,387
Interest expense		(2,686	)		(2,733	)		(2,222	)
Net recognized gains on investments		648			2,399			2,583
Net gains (losses) on derivatives		144			(187	)		(510	)
Net losses on foreign currency remeasurements		(82	)		(218	)		(111	)
Other, net		(57	)		(59	)		(251	)


Total	$	729		$	1,416		$	876

Debt Securities

Net Recognized Gains (Losses) on Investments

Net recognized gains (losses) on debt investments were as follows:

(In millions)


Year Ended June 30,	2019			2018			2017

Realized gains from sales of available-for-sale securities	$	12		$	27		$	108
Realized losses from sales of available-for-sale securities		(93	)		(987	)		(162	)
Other-than-temporary impairments of investments		(16	)		(6	)		(14	)


Total	$	(97	)	$	(966	)	$	(68	)

Equity Securities

Net Recognized Gains (Losses) on Investments

Net recognized gains (losses) on equity investments were as follows:

(In millions)


Year Ended June 30,	2019			2018			2017

Net realized gains on investments sold	$	276		$	3,406		$	2,692
Net unrealized gains on investments still held		479			0			0
Impairments of investments		(10	)		(41	)		(41	)


Total	$	745		$	3,365		$	2,651

INVESTMENTS (Tables)

12 Months Ended

Jun. 30, 2019

Investments Debt And Equity Securities [Abstract]

Investment Components

The components of investments were as follows:

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


June 30, 2019

Changes in Fair Value Recorded in Other Comprehensive Income

Commercial paper		Level 2	$	2,211	$	0	$	0		$	2,211		$	1,773	$	438		$	0
Certificates of deposit		Level 2		2,018		0		0			2,018			1,430		588			0
U.S. government securities		Level 1		104,925		1,854		(104	)		106,675			769		105,906			0
U.S. agency securities		Level 2		988		0		0			988			698		290			0
Foreign government bonds		Level 2		6,350		4		(8	)		6,346			2,506		3,840			0
Mortgage- and asset-backed securities		Level 2		3,554		10		(3	)		3,561			0		3,561			0
Corporate notes and bonds		Level 2		7,437		111		(7	)		7,541			0		7,541			0
Corporate notes and bonds		Level 3		15		0		0			15			0		15			0
Municipal securities		Level 2		242		48		0			290			0		290			0
Municipal securities		Level 3		7		0		0			7			0		7			0


Total debt investments			$	127,747	$	2,027	$	(122	)	$	129,652		$	7,176	$	122,476		$	0


Changes in Fair Value Recorded in Net Income

Equity investments		Level 1								$	973		$	409	$	0		$	564
Equity investments		Other									2,085			0		0			2,085


Total equity investments										$	3,058		$	409	$	0		$	2,649

Cash										$	3,771		$	3,771	$	0		$	0
Derivatives, net^(a)											(13	)		0		(13	)		0


Total										$	136,468		$	11,356	$	122,463		$	2,649

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


June 30, 2018

Changes in Fair Value Recorded in Other Comprehensive Income

Commercial paper		Level 2	$	2,513	$	0	$	0		$	2,513	$	2,215	$	298	$	0
Certificates of deposit		Level 2		2,058		0		0			2,058		1,865		193		0
U.S. government securities		Level 1		108,120		62		(1,167	)		107,015		2,280		104,735		0
U.S. agency securities		Level 2		1,742		0		0			1,742		1,398		344		0
Foreign government bonds		Level 1		22		0		0			22		0		22		0
Foreign government bonds		Level 2		5,063		1		(10	)		5,054		0		5,054		0
Mortgage- and asset-backed securities		Level 2		3,864		4		(13	)		3,855		0		3,855		0
Corporate notes and bonds		Level 2		6,929		21		(56	)		6,894		0		6,894		0
Corporate notes and bonds		Level 3		15		0		0			15		0		15		0
Municipal securities		Level 2		271		37		(1	)		307		0		307		0


Total debt investments			$	130,597	$	125	$	(1,247	)	$	129,475	$	7,758	$	121,717	$	0


Equity investments		Level 1								$	533	$	246	$	0	$	287
Equity investments		Level 3									18		0		0		18
Equity investments		Other									1,558		0		1		1,557


Total equity investments										$	2,109	$	246	$	1	$	1,862


Cash										$	3,942	$	3,942	$	0	$	0
Derivatives, net^(a)											104		0		104		0


Total										$	135,630	$	11,946	$	121,822	$	1,862

(a)	Refer to Note 5 – Derivatives for further information on the fair value of our derivative instruments.

Unrealized Losses on Debt Investments

Debt 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, 2019

U.S. government and agency securities	$	1,491	$	(1	)	$	39,158	$	(103	)	$	40,649	$	(104	)
Foreign government bonds		25		0			77		(8	)		102		(8	)
Mortgage- and asset-backed securities		664		(1	)		378		(2	)		1,042		(3	)
Corporate notes and bonds		498		(3	)		376		(4	)		874		(7	)


Total	$	2,678	$	(5	)	$	39,989	$	(117	)	$	42,667	$	(122	)

	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	)


Total	$	91,037	$	(1,124	)	$	4,869	$	(123	)	$	95,906	$	(1,247	)

Debt Investment Maturities

(In millions)	Cost Basis		Estimated Fair Value


June 30, 2019

Due in one year or less	$	53,200	$	53,124
Due after one year through five years		47,016		47,783
Due after five years through 10 years		26,658		27,824
Due after 10 years		873		921


Total	$	127,747	$	129,652

DERIVATIVES (Tables)

12 Months Ended

Jun. 30, 2019

Notional Amounts of Outstanding Derivative Instruments Measured in U.S. Dollar Equivalents

The following table presents the notional amounts of our outstanding derivative instruments measured in U.S. dollar equivalents:

(In millions)	June 30, 2019		June 30, 2018


Designated as Hedging Instruments

Foreign exchange contracts sold	$	6,034	$	11,101

Not Designated as Hedging Instruments

Foreign exchange contracts purchased		14,889		9,425
Foreign exchange contracts sold		15,614		13,374
Equity contracts purchased		680		49
Equity contracts sold		5		5
Other contracts purchased		1,327		878
Other contracts sold		451		472

Fair Values of Derivative Instruments

The following table presents our derivative instruments:

	Derivative			Derivative				Derivative				Derivative
(In millions)	Assets			Liabilities				Assets				Liabilities


	June 30, 2019							June 30, 2018

Changes in Fair Value Recorded in Other Comprehensive Income

Designated as Hedging Instruments

Foreign exchange contracts	$	0			$	0			$	174			$	0

Changes in Fair Value Recorded in Net Income

Designated as Hedging Instruments

Foreign exchange contracts		0				(93	)			95				0

Not Designated as Hedging Instruments

Foreign exchange contracts		204				(172	)			256				(197	)
Equity contracts		38				0				2				(7	)
Other contracts		8				(7	)			11				(3	)


Gross amounts of derivatives		250				(272	)			538				(207	)
Gross amounts of derivatives offset in the balance sheet		(113	)			114				(152	)			153
Cash collateral received		0				(78	)			0				(235	)


Net amounts of derivatives	$	137			$	(236	)		$	386			$	(289	)

Reported as

Short-term investments	$	(13	)		$	0			$	104			$	0
Other current assets		146				0				260				0
Other long-term assets		4				0				22				0
Other current liabilities		0				(221	)			0				(288	)
Other long-term liabilities		0				(15	)			0				(1	)


Total	$	137			$	(236	)		$	386			$	(289	)

The following table presents the fair value of our derivatives instruments on a gross basis:

(In millions)	Level 1				Level 2		Level 3		Total


June 30, 2019

Derivative assets	$	0		$	247		$	3	$	250
Derivative liabilities		0			(272	)		0		(272	)

June 30, 2018

Derivative assets		1			535			2		538
Derivative liabilities		(1	)		(206	)		0		(207	)

Not Designated as Hedging Instruments

Gains (Losses) on Derivative Instruments

We recognized in other income (expense), net the following gains (losses) on derivatives not designated as hedging instruments:

(In millions)


Year Ended June 30,	2019			2018			2017

Foreign exchange contracts	$	(97	)	$	(33	)	$	(117	)
Equity contracts		3			(87	)		(114	)
Other contracts		35			(17	)		(3	)


Total	$	(59	)	$	(137	)	$	(234	)

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,	2019		2018			2017

Foreign Exchange Contracts

Derivatives	$	38	$	25		$	441
Hedged items		130		78			(386	)


Total amount of ineffectiveness	$	168	$	103		$	55


Equity Contracts

Derivatives	$	0	$	(324	)	$	(74	)
Hedged items		0		324			74


Total amount of ineffectiveness	$	0	$	0		$	0


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

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,	2019			2018			2017

Effective Portion

Gains recognized in other comprehensive income (loss), net of tax of $1, $11, and $4	$	159		$	219		$	328
Gains reclassified from accumulated other comprehensive income (loss) into revenue		341			185			555

Amount Excluded from Effectiveness Assessment and Ineffective Portion

Losses recognized in other income (expense), net		(64	)		(255	)		(389	)

INVENTORIES (Tables)

12 Months Ended

Jun. 30, 2019

Inventory Disclosure [Abstract]

Components of Inventories

The components of inventories were as follows:

(In millions)


June 30,	2019		2018

Raw materials	$	399	$	655
Work in process		53		54
Finished goods		1,611		1,953


Total	$	2,063	$	2,662

PROPERTY AND EQUIPMENT (Tables)

12 Months Ended

Jun. 30, 2019

Property Plant And Equipment [Abstract]

Components of Property and Equipment

The components of property and equipment were as follows:

(In millions)


June 30,	2019			2018

Land	$	1,540		$	1,254
Buildings and improvements		26,288			20,604
Leasehold improvements		5,316			4,735
Computer equipment and software		33,823			27,633
Furniture and equipment		4,840			4,457


Total, at cost		71,807			58,683
Accumulated depreciation		(35,330	)		(29,223	)


Total, net	$	36,477		$	29,460

BUSINESS COMBINATIONS (Tables)

12 Months Ended

Jun. 30, 2019

Major Classes of Assets and Liabilities Allocated Purchase Price

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,	2019				2018

Technology-based	$	814		5 years	$	178		4 years
Marketing-related		177		10 years		14		5 years
Contract-based		7		3 years		14		4 years
Customer-related		710		8 years		13		5 years


Total	$	1,708		7 years	$	219		5 years

GitHub, Inc.

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

(In millions)


Cash, cash equivalents, and short-term investments	$	234
Goodwill		5,497
Intangible assets		1,267
Other assets		143
Other liabilities		(217	)


Total	$	6,924

Major Classes of Assets and Liabilities Allocated Purchase Price

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

(In millions)	Amount		Weighted Average Life


Customer-related	$	648		8 years
Technology-based		447		5 years
Marketing-related		170		10 years
Contract-based		2		2 years


Total	$	1,267		7 years

LinkedIn Corporation

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)

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

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	)

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 per share amounts)


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, 2019

Goodwill And Intangible Assets Disclosure [Abstract]

Carrying Amount of Goodwill

Changes in the carrying amount of goodwill were as follows:

(In millions)	June 30, 2017			Acquisitions			Other				June 30, 2018			Acquisitions				Other				June 30, 2019


Productivity and Business Processes		$	23,739		$	72		$	12			$	23,823		$	514			$	(60	)		$	24,277
Intelligent Cloud			5,555			164			(16	)			5,703			5,605	^(a)			43	^(a)			11,351
More Personal Computing			5,828			394			(65	)			6,157			289				(48	)			6,398


Total		$	35,122		$	630		$	(69	)		$	35,683		$	6,408			$	(65	)		$	42,026

(a)	Includes goodwill of $5.5 billion related to GitHub. See Note 8 – Business Combinations for further information.

INTANGIBLE ASSETS (Tables)

12 Months Ended

Jun. 30, 2019

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,							2019							2018

Technology-based	$	7,691		$	(5,771	)	$	1,920	$	7,220	$	(5,018	)	$	2,202
Customer-related		4,709			(1,785	)		2,924		4,031		(1,205	)		2,826
Marketing-related		4,165			(1,327	)		2,838		4,006		(1,071	)		2,935
Contract-based		574			(506	)		68		679		(589	)		90


Total	$	17,139	^(a)	$	(9,389	)	$	7,750	$	15,936	$	(7,883	)	$	8,053

(a)	Includes intangible assets of $1.3 billion related to GitHub. See Note 8 – Business Combinations for further information.

Estimated Future Amortization Expense Related to 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,	2019				2018

Technology-based	$	814		5 years	$	178		4 years
Marketing-related		177		10 years		14		5 years
Contract-based		7		3 years		14		4 years
Customer-related		710		8 years		13		5 years


Total	$	1,708		7 years	$	219		5 years

The following table outlines the estimated future amortization expense related to intangible assets held as of June 30, 2019:

(In millions)


Year Ending June 30,

2020	$	1,488
2021		1,282
2022		1,187
2023		1,053
2024		737
Thereafter		2,003


Total	$	7,750

DEBT (Tables)

12 Months Ended

Jun. 30, 2019

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, 2019		Face Value June 30, 2018		Stated Interest Rate	Effective Interest Rate


Notes

November 3, 2018	$	0	$	1,750	1.300%	1.396%
December 6, 2018		0		1,250	1.625%	1.824%
June 1, 2019		0		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)		1,994		2,044	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)		1,993		2,044	3.125%	3.218%
May 2, 2033 ^(a)		626		642	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	$	72,781	$	76,898

(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,

2020	$	5,518
2021		3,750
2022		7,994
2023		2,750
2024		5,250
Thereafter		47,519


Total	$	72,781

Provision for Income Taxes

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

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=75038535&loc=d3e64711-112823

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=114775985&loc=d3e28878-108400

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21475-112644

+ Details

INCOME TAXES (Tables)

12 Months Ended

Jun. 30, 2019

Income Tax Disclosure [Abstract]

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

(In millions)


Year Ended June 30,	2019			2018			2017

Current Taxes

U.S. federal	$	4,718		$	19,764		$	2,739
U.S. state and local		662			934			30
Foreign		5,531			4,348			2,472


Current taxes	$	10,911		$	25,046		$	5,241

Deferred Taxes

U.S. federal	$	(5,647	)	$	(4,292	)	$	(554	)
U.S. state and local		(1,010	)		(458	)		269
Foreign		194			(393	)		(544	)


Deferred taxes	$	(6,463	)	$	(5,143	)	$	(829	)


Provision for income taxes	$	4,448		$	19,903		$	4,412

Income (Loss) Before Income Taxes

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

(In millions)


Year Ended June 30,	2019		2018		2017

U.S.	$	15,799	$	11,527	$	6,843
Foreign		27,889		24,947		23,058


Income before income taxes	$	43,688	$	36,474	$	29,901

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

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



Year Ended June 30,	2019		2018		2017

Federal statutory rate		21.0%		28.1%		35.0%
Effect of:
Foreign earnings taxed at lower rates		(4.1)%		(7.8)%		(11.6)%
Impact of the enactment of the TCJA		0.4%		37.7%		0%
Phone business losses		0%		0%		(5.7)%
Impact of intangible property transfers		(5.9)%		0%		0%
Foreign-derived intangible income deduction		(1.4)%		0%		0%
Research and development credit		(1.1)%		(1.3)%		(0.9)%
Excess tax benefits relating to stock-based compensation		(2.2)%		(2.5)%		(2.1)%
Interest, net		1.0%		1.2%		1.4%
Other reconciling items, net		2.5%		(0.8)%		(1.3)%


Effective rate		10.2%		54.6%		14.8%

Deferred Income Tax Assets and Liabilities

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

(In millions)


June 30,	2019				2018

Deferred Income Tax Assets

Stock-based compensation expense	$		406		$		460
Accruals, reserves, and other expenses			2,287				1,832
Loss and credit carryforwards			3,518				3,369
Depreciation and amortization			7,046				351
Leasing liabilities			1,594				1,427
Unearned revenue			475				0
Other			367				56


Deferred income tax assets			15,693				7,495
Less valuation allowance			(3,214	)			(3,186	)


Deferred income tax assets, net of valuation allowance	$		12,479		$		4,309


Deferred Income Tax Liabilities

Unrealized gain on investments and debt	$	(738		)	$	0
Unearned revenue		(30		)		(639		)
Depreciation and amortization		0				(1,164		)
Leasing assets		(1,510		)		(1,366		)
Deferred GILTI tax liabilities		(2,607		)		(61		)
Other		(291		)		(251		)


Deferred income tax liabilities	$	(5,176		)	$	(3,481		)


Net deferred income tax assets (liabilities)	$	7,303			$	828


Reported As

Other long-term assets	$	7,536			$	1,369
Long-term deferred income tax liabilities		(233		)		(541		)


Net deferred income tax assets (liabilities)	$	7,303			$	828

Changes in Gross Unrecognized Tax Benefits Related to Uncertain Tax Positions

The aggregate changes in the gross unrecognized tax benefits related to uncertain tax positions were as follows:

(In millions)


Year Ended June 30,	2019			2018			2017

Beginning unrecognized tax benefits	$	11,961		$	11,737		$	10,164
Decreases related to settlements		(316	)		(193	)		(4	)
Increases for tax positions related to the current year		2,106			1,445			1,277
Increases for tax positions related to prior years		508			151			397
Decreases for tax positions related to prior years		(1,113	)		(1,176	)		(49	)
Decreases due to lapsed statutes of limitations		0			(3	)		(48	)


Ending unrecognized tax benefits	$	13,146		$	11,961		$	11,737

UNEARNED REVENUE (Tables)

12 Months Ended

Jun. 30, 2019

Revenue From Contract With Customer [Abstract]

Unearned Revenue by Segment

Unearned revenue by segment was as follows:

(In millions)


June 30,	2019		2018

Productivity and Business Processes	$	16,831	$	14,864
Intelligent Cloud		16,988		14,706
More Personal Computing		3,387		3,150


Total	$	37,206	$	32,720

Changes in Unearned Revenue

Changes in unearned revenue were as follows:

(In millions)


Year Ended June 30, 2019

Balance, beginning of period	$	32,720
Deferral of revenue		69,493
Recognition of unearned revenue		(65,007	)


Balance, end of period	$	37,206

LEASES (Tables)

12 Months Ended

Jun. 30, 2019

Leases [Abstract]

Components of Lease Expense

The components of lease expense were as follows:

(In millions)


Year Ended June 30,	2019			2018		2017

Operating lease cost	$	1,707	$	1,585	$	1,412


Finance lease cost:
Amortization of right-of-use assets	$	370	$	243	$	104
Interest on lease liabilities		247		175		68


Total finance lease cost	$	617	$	418	$	172

Supplemental Cash Flow Information Related to Leases

Supplemental cash flow information related to leases was as follows:

(In millions)


Year Ended June 30,	2019			2018		2017

Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	1,670	$	1,522	$	1,157
Operating cash flows from finance leases		247		175		68
Financing cash flows from finance leases		221		144		46

Right-of-use assets obtained in exchange for lease obligations:
Operating leases		2,303		1,571		1,270
Finance leases		2,532		1,933		1,773

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,	2019			2018

Operating Leases

Operating lease right-of-use assets	$	7,379		$	6,686


Other current liabilities	$	1,515		$	1,399
Operating lease liabilities		6,188			5,568


Total operating lease liabilities	$	7,703		$	6,967


Finance Leases

Property and equipment, at cost	$	7,041		$	4,543
Accumulated depreciation		(774	)		(404	)


Property and equipment, net	$	6,267		$	4,139


Other current liabilities	$	317		$	176
Other long-term liabilities		6,257			4,125


Total finance lease liabilities	$	6,574		$	4,301

Weighted Average Remaining Lease Term

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

Weighted Average Discount Rate

Operating leases		3.0%			2.7%
Finance leases		4.6%			5.2%

Maturities of Lease Liabilities

Maturities of lease liabilities were as follows:

(In millions)


Year Ending June 30,	Operating Leases			Finance Leases

2020	$	1,678		$	591
2021		1,438			616
2022		1,235			626
2023		1,036			631
2024		839			641
Thereafter		2,438			5,671


Total lease payments		8,664			8,776
Less imputed interest		(961	)		(2,202	)


Total	$	7,703		$	6,574

STOCKHOLDERS' EQUITY (Tables)

12 Months Ended

Jun. 30, 2019

Shares of Common Stock Outstanding

Shares of common stock outstanding were as follows:

(In millions)


Year Ended June 30,	2019			2018			2017

Balance, beginning of year		7,677			7,708			7,808
Issued		116			68			70
Repurchased		(150	)		(99	)		(170	)


Balance, end of year		7,643			7,677			7,708

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,	2019				2018				2017

First Quarter		24	$	2,600		22	$	1,600		63	$	3,550
Second Quarter		57		6,100		22		1,800		59		3,533
Third Quarter		36		3,899		34		3,100		25		1,600
Fourth Quarter		33		4,200		21		2,100		23		1,600


Total		150	$	16,799		99	$	8,600		170	$	10,283

Dividends Declared

Our Board of Directors declared the following dividends:

Declaration Date	Record Date		Payment Date		Dividend Per Share			Amount


Fiscal Year 2019								(In millions)

September 18, 2018		November 15, 2018		December 13, 2018		$	0.46	$	3,544
November 28, 2018		February 21, 2019		March 14, 2019			0.46		3,526
March 11, 2019		May 16, 2019		June 13, 2019			0.46		3,521
June 12, 2019		August 15, 2019		September 12, 2019			0.46		3,516


Total						$	1.84	$	14,107

Fiscal Year 2018

September 19, 2017		November 16, 2017		December 14, 2017		$	0.42	$	3,238
November 29, 2017		February 15, 2018		March 8, 2018			0.42		3,232
March 12, 2018		May 17, 2018		June 14, 2018			0.42		3,226
June 13, 2018		August 16, 2018		September 13, 2018			0.42		3,220


Total						$	1.68	$	12,916

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)

12 Months Ended

Jun. 30, 2019

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,	2019			2018			2017

Derivatives

Balance, beginning of period	$	173		$	134		$	352
Unrealized gains, net of tax of $2, $11, and $4		160			218			328
Reclassification adjustments for gains included in revenue		(341	)		(185	)		(555	)
Tax expense included in provision for income taxes		8			6			9


Amounts reclassified from accumulated other comprehensive income (loss)		(333	)		(179	)		(546	)


Net change related to derivatives, net of tax of $(6), $5, and $(5)		(173	)		39			(218	)


Balance, end of period	$	0		$	173		$	134


Investments

Balance, beginning of period	$	(850	)	$	1,825		$	2,941
Unrealized gains (losses), net of tax of $616, $(427), and $267		2,331			(1,146	)		517
Reclassification adjustments for (gains) losses included in other income (expense), net		93			(2,309	)		(2,513	)
Tax expense (benefit) included in provision for income taxes		(19	)		738			880


Amounts reclassified from accumulated other comprehensive income (loss)		74			(1,571	)		(1,633	)


Net change related to investments, net of tax of $635, $(1,165), and $(613)		2,405			(2,717	)		(1,116	)
Cumulative effect of accounting changes		(67	)		42			0


Balance, end of period	$	1,488		$	(850	)	$	1,825


Translation Adjustments and Other

Balance, beginning of period	$	(1,510	)	$	(1,332	)	$	(1,499	)
Translation adjustments and other, net of tax effects of $(1), $0, and $9		(318	)		(178	)		167


Balance, end of period	$	(1,828	)	$	(1,510	)	$	(1,332	)


Accumulated other comprehensive income (loss), end of period	$	(340	)	$	(2,187	)	$	627

EMPLOYEE STOCK AND SAVINGS PLANS (Tables)

12 Months Ended

Jun. 30, 2019

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,	2019		2018		2017

Stock-based compensation expense	$	4,652	$	3,940	$	3,266
Income tax benefits related to stock-based compensation		816		823		1,066

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,	2019		2018		2017

Dividends per share (quarterly amounts)		$0.42 - $0.46		$0.39 - $0.42		$0.36 - $0.39
Interest rates		1.8% - 3.1%		1.7% - 2.9%		1.2% - 2.2%

Stock Plan Activity

During fiscal year 2019, the following activity occurred under our stock plans:

Shares			Weighted Average Grant-Date Fair Value


(In millions)

Stock Awards

Nonvested balance, beginning of year	174		$	57.85
Granted ^(a)	63			107.02
Vested	(77	)		57.08
Forfeited	(13	)		69.35


Nonvested balance, end of year	147		$	78.49

(a)	Includes 2 million, 3 million, and 2 million of PSUs granted at target and performance adjustments above target levels for fiscal years 2019, 2018, and 2017, respectively.

Employee Purchased Shares

Employees purchased the following shares during the periods presented:

(Shares in millions)


Year Ended June 30,	2019		2018		2017

Shares purchased		11		13		13
Average price per share	$	104.85	$	76.40	$	56.36

SEGMENT INFORMATION AND GEOGRAPHIC DATA (Tables)

12 Months Ended

Jun. 30, 2019

Segment Reporting [Abstract]

Segment Revenue

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

(In millions)


Year Ended June 30,		2019		2018		2017

Revenue

Productivity and Business Processes	$	41,160	$	35,865	$	29,870
Intelligent Cloud		38,985		32,219		27,407
More Personal Computing		45,698		42,276		39,294


Total	$	125,843	$	110,360	$	96,571


Operating Income (Loss)

Productivity and Business Processes	$	16,219	$	12,924	$	11,389
Intelligent Cloud		13,920		11,524		9,127
More Personal Computing		12,820		10,610		8,815
Corporate and Other		0		0		(306	)


Total	$	42,959	$	35,058	$	29,025

Segment Operating Income (Loss)

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

(In millions)


Year Ended June 30,		2019		2018		2017

Revenue

Productivity and Business Processes	$	41,160	$	35,865	$	29,870
Intelligent Cloud		38,985		32,219		27,407
More Personal Computing		45,698		42,276		39,294


Total	$	125,843	$	110,360	$	96,571


Operating Income (Loss)

Productivity and Business Processes	$	16,219	$	12,924	$	11,389
Intelligent Cloud		13,920		11,524		9,127
More Personal Computing		12,820		10,610		8,815
Corporate and Other		0		0		(306	)


Total	$	42,959	$	35,058	$	29,025

Revenue Classified by Major Geographic Areas

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

(In millions)


Year Ended June 30,	2019		2018		2017

United States ^(a)	$	64,199	$	55,926	$	51,078
Other countries		61,644		54,434		45,493


Total	$	125,843	$	110,360	$	96,571

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,	2019		2018		2017

Server products and cloud services	$	32,622	$	26,129	$	21,649
Office products and cloud services		31,769		28,316		25,573
Windows		20,395		19,518		18,593
Gaming		11,386		10,353		9,051
Search advertising		7,628		7,012		6,219
LinkedIn		6,754		5,259		2,271
Enterprise Services		6,124		5,846		5,542
Devices		6,095		5,134		5,062
Other		3,070		2,793		2,611


Total	$	125,843	$	110,360	$	96,571

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

(In millions)


June 30,	2019		2018		2017

United States	$	55,252	$	44,501	$	42,730
Ireland		12,958		12,843		12,889
Other countries		25,422		22,538		19,898


Total	$	93,632	$	79,882	$	75,517

QUARTERLY INFORMATION (UNAUDITED) (Tables)

12 Months Ended

Jun. 30, 2019

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 2019

Revenue	$	29,084	$	32,471	$	30,571	$	33,717	$	125,843
Gross margin		19,179		20,048		20,401		23,305		82,933
Operating income		9,955		10,258		10,341		12,405		42,959
Net income ^(a)		8,824		8,420		8,809		13,187		39,240
Basic earnings per share		1.15		1.09		1.15		1.72		5.11
Diluted earnings per share ^(b)		1.14		1.08		1.14		1.71		5.06

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) ⁽^c⁾		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 ⁽^d⁾		0.84		(0.82	)		0.95		1.14		2.13

(a)

(b)	Reflects the net charge related to the enactment of the TCJA and the net income tax benefit related to the intangible property transfers, which decreased (increased) diluted EPS $0.02 for the second quarter, $(0.34) for the fourth quarter, and $(0.31) for fiscal year 2019.

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

(d)	Reflects the net charge (benefit) related to the enactment of 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.

Accounting Policies - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017	Jul. 01, 2018
Significant Accounting Policies [Line Items]
Long-term accounts receivable, net of allowance for doubtful accounts	$ 2,200	$ 1,800
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	1,600	$ 1,500
Retained earnings	24,150	13,682
Long-term deferred tax liabilities	233	541
Other current assets	$ 10,146	$ 6,751
Accounting Standards Update 2016-16
Significant Accounting Policies [Line Items]
Retained earnings				$ 557
Long-term deferred tax assets				2,800
Long-term deferred tax liabilities				2,100
Other current assets				$ (152)
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, 2019	Jun. 30, 2018	Jun. 30, 2017
Valuation And Qualifying Accounts Disclosure [Line Items]
Balance, beginning of period	$ 397	$ 361	$ 409
Charged to costs and other	153	134	58
Write-offs	(116)	(98)	(106)
Balance, end of period	434	397	361
Accounts receivable, net of allowance for doubtful accounts
Valuation And Qualifying Accounts Disclosure [Line Items]
Balance, beginning of period	377	345
Balance, end of period	411	377	345
Other Long-term Assets
Valuation And Qualifying Accounts Disclosure [Line Items]
Balance, beginning of period	20	16
Balance, end of period	$ 23	$ 20	$ 16

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

3 Months Ended

12 Months Ended

Jun. 30, 2019

Mar. 31, 2019

Dec. 31, 2018

Sep. 30, 2018

Jun. 30, 2018

Mar. 31, 2018

Dec. 31, 2017

Sep. 30, 2017

Jun. 30, 2019

Jun. 30, 2018

Jun. 30, 2017

Earnings Per Share Basic And Diluted [Abstract]

Net income available for common shareholders (A)

$ 13,187

^[1]

$ 8,809

^[1]

$ 8,420

^[1]

$ 8,824

^[1]

$ 8,873

^[2]

$ 7,424

^[2]

$ (6,302)

^[2]

$ 6,576

^[2]

$ 39,240

^[1]

$ 16,571

^[2]

$ 25,489

Weighted average outstanding shares of common stock (B)

7,673

7,700

7,746

Dilutive effect of stock-based awards

Common stock and common stock equivalents (C)

7,753

7,794

7,832

Earnings Per Share

Basic (A/B)

$ 1.72

$ 1.15

$ 1.09

$ 1.15

$ 0.96

$ (0.82)

$ 0.85

$ 5.11

$ 2.15

$ 3.29

Diluted (A/C)

$ 1.71

^[3]

$ 1.14

^[3]

$ 1.08

^[3]

$ 1.14

^[3]

$ 1.14

^[4]

$ 0.95

^[4]

$ (0.82)

^[4]

$ 0.84

^[4]

$ 5.06

^[3]

$ 2.13

^[4]

$ 3.25

[1]	Reflects the $157 million net charge related to the enactment of the TCJA for the second quarter and the $2.6 billion net income tax benefit related to the intangible property transfers for the fourth quarter, which together increased net income by $2.4 billion for fiscal year 2019. See Note 12 – Income Taxes for further information.
[2]	Reflects the net charge (benefit) related to the enactment of 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]	Reflects the net charge related to the enactment of the TCJA and the net income tax benefit related to the intangible property transfers, which decreased (increased) diluted EPS $0.02 for the second quarter, $(0.34) for the fourth quarter, and $(0.31) for fiscal year 2019.
[4]	Reflects the net charge (benefit) related to the enactment of 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

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+ 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.

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+ Details

Cash, Cash Equivalents and Investments [Line Items]

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

+ References + Details

Components of Other Income (Expense), Net (Detail) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
Other Income And Expenses [Abstract]
Interest and dividends income	$ 2,762	$ 2,214	$ 1,387
Interest expense	(2,686)	(2,733)	(2,222)
Net recognized gains on investments	648	2,399	2,583
Net gains (losses) on derivatives	144	(187)	(510)
Net losses on foreign currency remeasurements	(82)	(218)	(111)
Other, net	(57)	(59)	(251)
Total	$ 729	$ 1,416	$ 876

Net Recognized Gains (Losses) on Debt Investments (Detail) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
Schedule Of Gain Loss On Investments Including Marketable Securities And Investments Held At Cost Income Statement Reported Amounts Summary [Line Items]
Realized gains from sales of available-for-sale securities	$ 12	$ 27	$ 108
Realized losses from sales of available-for-sale securities	(93)	(987)	(162)
Total	648	2,399	2,583
Debt Securities
Schedule Of Gain Loss On Investments Including Marketable Securities And Investments Held At Cost Income Statement Reported Amounts Summary [Line Items]
Other-than-temporary impairments of investments	(16)	(6)	(14)
Total	$ (97)	$ (966)	$ (68)

Net Recognized Gains (Losses) on Equity Investments (Detail) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
Schedule Of Gain Loss On Investments Including Marketable Securities And Investments Held At Cost Income Statement Reported Amounts Summary [Line Items]
Net realized gains on investments sold	$ 276	$ 3,406	$ 2,692
Net unrealized gains on investments still held	479	0	0
Total	648	2,399	2,583
Equity Securities
Schedule Of Gain Loss On Investments Including Marketable Securities And Investments Held At Cost Income Statement Reported Amounts Summary [Line Items]
Other-than-temporary impairments of investments	(10)	(41)	(41)
Total	$ 745	$ 3,365	$ 2,651

Investment Components (Detail) - USD ($)
$ in Millions

Jun. 30, 2019

Jun. 30, 2018

Jun. 30, 2017

Jun. 30, 2016

$ 127,747

129,652

Derivative, net

137

$ 386

11,356

11,946

$ 7,663

$ 6,510

122,463

121,822

Cash, cash equivalents, and investments

2,649

1,862

136,468

135,630

Equity investments

Cash, Cash Equivalents and Investments [Line Items]

3,058

2,109

409

246

Equity investments | Other

2,649

1,862

Cash, Cash Equivalents and Investments [Line Items]

2,085

1,558

Equity investments | Level 1

2,085

1,557

Cash, Cash Equivalents and Investments [Line Items]

973

533

409

246

Equity investments | Level 3

564

287

Cash, Cash Equivalents and Investments [Line Items]

Cash, Cash Equivalents and Investments [Line Items]

Cash

Cash

3,771

3,942

3,771

3,942

Cash, Cash Equivalents and Investments [Line Items]

Derivatives, net

Derivative, net

^[1]

(13)

104

^[1]

^[1]

(13)

104

Cash, Cash Equivalents and Investments [Line Items]

^[1]

Debt investments

127,747

130,597

2,027

125

(122)

(1,247)

129,652

129,475

7,176

7,758

122,476

121,717

Debt investments | Commercial Paper | Level 2

Cash, Cash Equivalents and Investments [Line Items]

2,211

2,513

2,211

2,513

1,773

2,215

438

298

Debt investments | Certificates of deposit | Level 2

Cash, Cash Equivalents and Investments [Line Items]

2,018

2,058

2,018

2,058

1,430

1,865

588

193

Debt investments | U.S. government securities | Level 1

Cash, Cash Equivalents and Investments [Line Items]

104,925

108,120

1,854

(104)

(1,167)

106,675

107,015

769

2,280

105,906

104,735

Debt investments | U.S. agency securities | Level 2

Cash, Cash Equivalents and Investments [Line Items]

988

1,742

988

1,742

698

1,398

290

344

Debt investments | Foreign government bonds | Level 2

Cash, Cash Equivalents and Investments [Line Items]

6,350

5,063

(8)

(10)

6,346

5,054

2,506

3,840

5,054

Debt investments | Foreign government bonds | Level 1

Cash, Cash Equivalents and Investments [Line Items]

Debt investments | Mortgage- and asset-backed securities | Level 2

Cash, Cash Equivalents and Investments [Line Items]

3,554

3,864

(3)

(13)

3,561

3,855

3,561

3,855

Debt investments | Corporate notes and bonds | Level 2

Cash, Cash Equivalents and Investments [Line Items]

7,437

6,929

111

(7)

(56)

7,541

6,894

7,541

6,894

Debt investments | Corporate notes and bonds | Level 3

Cash, Cash Equivalents and Investments [Line Items]

Debt investments | Municipal securities | Level 2

Cash, Cash Equivalents and Investments [Line Items]

242

271

(1)

290

307

290

307

Debt investments | Municipal securities | Level 3

$ 0

Cash, Cash Equivalents and Investments [Line Items]

$ 0

[1]	Refer to Note 5 – Derivatives for further information on the fair value of our derivative instruments.

Investments - Additional Information (Detail) - USD ($)	Jun. 30, 2019	Jun. 30, 2018
Investment [Line Items]
Equity investments without readily determinable fair values measured at cost with adjustments for observable changes in price or impairments	$ 1,200,000,000	$ 697,000,000
U.S. Government and Agency Securities
Investment [Line Items]
Collateral received	$ 0	$ 1,800,000,000

Unrealized Losses on Debt Investments (Detail) - USD ($) $ in Millions	Jun. 30, 2019	Jun. 30, 2018
Unrealized Losses on Investments [Line Items]
Less than 12 Months - Fair Value	$ 2,678	$ 91,037
Less than 12 Months - Unrealized Losses	(5)	(1,124)
12 Months or Greater - Fair Value	39,989	4,869
12 Months or Greater - Unrealized Losses	(117)	(123)
Total Fair Value	42,667	95,906
Total Unrealized Losses	(122)	(1,247)
U.S. government and agency securities
Unrealized Losses on Investments [Line Items]
Less than 12 Months - Fair Value	1,491	82,352
Less than 12 Months - Unrealized Losses	(1)	(1,064)
12 Months or Greater - Fair Value	39,158	4,459
12 Months or Greater - Unrealized Losses	(103)	(103)
Total Fair Value	40,649	86,811
Total Unrealized Losses	(104)	(1,167)
Foreign government bonds
Unrealized Losses on Investments [Line Items]
Less than 12 Months - Fair Value	25	3,457
Less than 12 Months - Unrealized Losses	0	(7)
12 Months or Greater - Fair Value	77	13
12 Months or Greater - Unrealized Losses	(8)	(3)
Total Fair Value	102	3,470
Total Unrealized Losses	(8)	(10)
Mortgage- and asset-backed securities
Unrealized Losses on Investments [Line Items]
Less than 12 Months - Fair Value	664	2,072
Less than 12 Months - Unrealized Losses	(1)	(9)
12 Months or Greater - Fair Value	378	96
12 Months or Greater - Unrealized Losses	(2)	(4)
Total Fair Value	1,042	2,168
Total Unrealized Losses	(3)	(13)
Corporate notes and bonds
Unrealized Losses on Investments [Line Items]
Less than 12 Months - Fair Value	498	3,111
Less than 12 Months - Unrealized Losses	(3)	(43)
12 Months or Greater - Fair Value	376	301
12 Months or Greater - Unrealized Losses	(4)	(13)
Total Fair Value	874	3,412
Total Unrealized Losses	$ (7)	(56)
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)

Debt Investment Maturities (Detail) $ in Millions	Jun. 30, 2019 USD ($)
Cost Basis
Due in one year or less	$ 53,200
Due after one year through five years	47,016
Due after five years through 10 years	26,658
Due after 10 years	873
Debt investments, Cost Basis	127,747
Estimated Fair Value
Due in one year or less	53,124
Due after one year through five years	47,783
Due after five years through 10 years	27,824
Due after 10 years	921
Total	$ 129,652

Derivatives - Additional Information (Detail) - USD ($)	12 Months Ended
Derivatives - Additional Information (Detail) - USD ($)	Jun. 30, 2019	Jun. 30, 2018
Derivative [Line Items]
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
Gross amounts of derivative assets, elected to offset	247,000,000	$ 533,000,000
Gross amounts of derivative liabilities, elected to offset	272,000,000	$ 207,000,000
Estimated derivative net gains (losses) included in AOCI that will be reclassified into earnings within 12 months	$ 0
Senior Unsecured Obligations
Derivative [Line Items]
Debt instrument credit rating	AAA

Notional Amounts of Outstanding Derivative Instruments Measured in U.S. Dollar Equivalents (Detail) - USD ($) $ in Millions	Jun. 30, 2019	Jun. 30, 2018
Designated as Hedging Instruments \| Foreign Exchange Contracts \| Derivatives Sold
Derivative [Line Items]
Notional amounts	$ 6,034	$ 11,101
Not Designated as Hedging Instruments \| Foreign Exchange Contracts \| Derivatives Purchased
Derivative [Line Items]
Notional amounts	14,889	9,425
Not Designated as Hedging Instruments \| Foreign Exchange Contracts \| Derivatives Sold
Derivative [Line Items]
Notional amounts	15,614	13,374
Not Designated as Hedging Instruments \| Equity Contracts \| Derivatives Purchased
Derivative [Line Items]
Notional amounts	680	49
Not Designated as Hedging Instruments \| Equity Contracts \| Derivatives Sold
Derivative [Line Items]
Notional amounts	5	5
Not Designated as Hedging Instruments \| Other Contracts \| Derivatives Purchased
Derivative [Line Items]
Notional amounts	1,327	878
Not Designated as Hedging Instruments \| Other Contracts \| Derivatives Sold
Derivative [Line Items]
Notional amounts	$ 451	$ 472

Fair Values of Derivative Instruments (Detail) - USD ($) $ in Millions	Jun. 30, 2019	Jun. 30, 2018
Derivatives Fair Value [Line Items]
Derivative Assets	$ 250	$ 538
Gross amounts of derivatives offset in the balance sheet, assets	(113)	(152)
Cash collateral received, assets	0	0
Net amounts of derivatives, assets	137	386
Derivative Liabilities	(272)	(207)
Gross amounts of derivatives offset in the balance sheet, liabilities	114	153
Cash collateral received, liabilities	(78)	(235)
Net amounts of derivatives, liabilities	(236)	(289)
Level 1
Derivatives Fair Value [Line Items]
Derivative Assets	0	1
Derivative Liabilities	0	(1)
Level 2
Derivatives Fair Value [Line Items]
Derivative Assets	247	535
Derivative Liabilities	(272)	(206)
Level 3
Derivatives Fair Value [Line Items]
Derivative Assets	3	2
Derivative Liabilities	0	0
Designated as Hedging Instruments \| Foreign Exchange Contracts \| Cash Flow Hedges
Derivatives Fair Value [Line Items]
Derivative Assets	0	174
Derivative Liabilities	0	0
Designated as Hedging Instruments \| Foreign Exchange Contracts \| Fair Value Hedges
Derivatives Fair Value [Line Items]
Derivative Assets	0	95
Derivative Liabilities	(93)	0
Not Designated as Hedging Instruments \| Foreign Exchange Contracts
Derivatives Fair Value [Line Items]
Derivative Assets	204	256
Derivative Liabilities	(172)	(197)
Not Designated as Hedging Instruments \| Equity Contracts
Derivatives Fair Value [Line Items]
Derivative Assets	38	2
Derivative Liabilities	0	(7)
Not Designated as Hedging Instruments \| Other Contracts
Derivatives Fair Value [Line Items]
Derivative Assets	8	11
Derivative Liabilities	(7)	(3)
Short-term Investments
Derivatives Fair Value [Line Items]
Net amounts of derivatives, assets	(13)	104
Other Current Assets
Derivatives Fair Value [Line Items]
Net amounts of derivatives, assets	146	260
Other Long-term Assets
Derivatives Fair Value [Line Items]
Net amounts of derivatives, assets	4	22
Other Current Liabilities
Derivatives Fair Value [Line Items]
Net amounts of derivatives, liabilities	(221)	(288)
Other Long-term Liabilities
Derivatives Fair Value [Line Items]
Net amounts of derivatives, liabilities	$ (15)	$ (1)

Gains (Losses) on Fair Value Hedges and Related Hedged Items (Detail) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
Foreign Exchange Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Derivatives	$ 38	$ 25	$ 441
Hedged items	130	78	(386)
Total amount of ineffectiveness	168	103	55
Equity Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Derivatives	0	(324)	(74)
Hedged items	0	324	74
Total amount of ineffectiveness	0	0	0
Amount of equity contracts excluded from effectiveness assessment	$ 0	$ 80	$ (80)

Gains (Losses) Related to Cash Flow Hedges (Detail) - Designated as Hedging Instruments - Foreign Exchange Contracts - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
Effective Portion
Gains recognized in other comprehensive income (loss), net of tax of $1, $11, and $4	$ 159	$ 219	$ 328
Gains reclassified from accumulated other comprehensive income (loss) into revenue	341	185	555
Amount Excluded from Effectiveness Assessment and Ineffective Portion
Losses recognized in other income (expense), net	$ (64)	$ (255)	$ (389)

Non-designated Derivative Gains (Losses) (Detail) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
Derivative Instruments, Gain (Loss) [Line Items]
Changes in fair value of derivatives not designated as hedges	$ (59)	$ (137)	$ (234)
Foreign Exchange Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Changes in fair value of derivatives not designated as hedges	(97)	(33)	(117)
Equity Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Changes in fair value of derivatives not designated as hedges	3	(87)	(114)
Other Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Changes in fair value of derivatives not designated as hedges	$ 35	$ (17)	$ (3)

Components of Inventories (Detail) - USD ($) $ in Millions	Jun. 30, 2019	Jun. 30, 2018
Inventory Disclosure [Abstract]
Raw materials	$ 399	$ 655
Work in process	53	54
Finished goods	1,611	1,953
Total	$ 2,063	$ 2,662

Components of Property and Equipment (Detail) - USD ($) $ in Millions	Jun. 30, 2019	Jun. 30, 2018
Property Plant And Equipment [Abstract]
Land	$ 1,540	$ 1,254
Buildings and improvements	26,288	20,604
Leasehold improvements	5,316	4,735
Computer equipment and software	33,823	27,633
Furniture and equipment	4,840	4,457
Total, at cost	71,807	58,683
Accumulated depreciation	(35,330)	(29,223)
Total, net	$ 36,477	$ 29,460

Property and Equipment - Additional Information (Detail) - USD ($) $ in Billions	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
Property, Plant and Equipment [Line Items]
Depreciation expense	$ 9.7	$ 7.7	$ 6.1
Building, Building Improvements and Leasehold Improvements
Property, Plant and Equipment [Line Items]
Committed for construction of new buildings, building improvements and leasehold improvements	$ 4.0

Business Combinations - Additional Information (Detail) $ in Millions			12 Months Ended
	Oct. 25, 2018 USD ($)	Dec. 08, 2016 USD ($)	Jun. 30, 2019 USD ($) Acquisition
GitHub, Inc.
Business Acquisition [Line Items]
Acquisition date	Oct. 25, 2018
Total consideration transferred	$ 7,500
Cash paid to acquire the business	1,300
Transactions recognized separately from preliminary purchase price allocation	$ 600
LinkedIn Corporation
Business Acquisition [Line Items]
Acquisition date		Dec. 08, 2016
Total consideration transferred		$ 27,000
Cash paid to acquire the business		$ 26,900
Other
Business Acquisition [Line Items]
Cash paid to acquire the business			$ 1,600
Business combination, number of business acquisitions \| Acquisition			19

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

Jun. 30, 2019

Oct. 25, 2018

Jun. 30, 2018

Jun. 30, 2017

Dec. 08, 2016

Business Acquisition [Line Items]

Cash, cash equivalents, and short-term investments

$ 42,026

$ 35,683

$ 35,122

GitHub, Inc.

Business Acquisition [Line Items]

$ 234

5,500

5,497

Intangible assets

$ 1,300

1,267

143

(217)

$ 6,924

Business Acquisition [Line Items]

$ 1,328

Short-term investments

2,110

Other current assets

697

Property and equipment

1,529

Other current liabilities

^[1]

16,803

Intangible assets

7,887

Short-term debt

^[2]

(1,323)

(1,117)

Deferred income taxes

(774)

(131)

Total

$ 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 11 – Debt for further information.

Acquired Intangible Assets (Detail) - USD ($) $ in Millions			12 Months Ended
Acquired Intangible Assets (Detail) - USD ($) $ in Millions	Oct. 25, 2018	Dec. 08, 2016	Jun. 30, 2019	Jun. 30, 2018
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted Average Life			7 years	5 years
Customer-related
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted Average Life			8 years	5 years
Technology-based
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted Average Life			5 years	4 years
Marketing-related
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted Average Life			10 years	5 years
Contract-based
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted Average Life			3 years	4 years
GitHub, Inc.
Acquired Finite-Lived Intangible Assets [Line Items]
Fair value of intangible assets acquired	$ 1,267		$ 1,300
Weighted Average Life	7 years
GitHub, Inc. \| Customer-related
Acquired Finite-Lived Intangible Assets [Line Items]
Fair value of intangible assets acquired	$ 648
Weighted Average Life	8 years
GitHub, Inc. \| Technology-based
Acquired Finite-Lived Intangible Assets [Line Items]
Fair value of intangible assets acquired	$ 447
Weighted Average Life	5 years
GitHub, Inc. \| Marketing-related
Acquired Finite-Lived Intangible Assets [Line Items]
Fair value of intangible assets acquired	$ 170
Weighted Average Life	10 years
GitHub, Inc. \| Contract-based
Acquired Finite-Lived Intangible Assets [Line Items]
Fair value of intangible assets acquired	$ 2
Weighted Average Life	2 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 \| Technology-based
Acquired Finite-Lived Intangible Assets [Line Items]
Fair value of intangible assets acquired		$ 2,109
Weighted Average Life		3 years
LinkedIn Corporation \| Marketing-related
Acquired Finite-Lived Intangible Assets [Line Items]
Fair value of intangible assets acquired		$ 2,148
Weighted Average Life		20 years
LinkedIn Corporation \| Contract-based
Acquired Finite-Lived Intangible Assets [Line Items]
Fair value of intangible assets acquired		$ 23
Weighted Average Life		5 years

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, 2019

Jun. 30, 2018

$ 35,683

$ 35,122

6,408

630

(65)

(69)

Productivity and Business Processes

42,026

35,683

23,823

23,739

514

(60)

24,277

23,823

Intelligent Cloud

5,703

5,555

5,605

^[1]

164

^[1]

(16)

11,351

5,703

More Personal Computing

6,157

5,828

289

394

(48)

(65)

$ 6,398

$ 6,157

[1]	Includes goodwill of $5.5 billion related to GitHub. See Note 8 – Business Combinations for further information

Goodwill - Additional Information (Detail) - USD ($)	May 01, 2019	May 01, 2018	May 01, 2017	Jun. 30, 2019	Jun. 30, 2018
Goodwill And Intangible Assets Disclosure [Abstract]
Goodwill impairment charge	$ 0	$ 0	$ 0
Accumulated goodwill impairment				$ 11,300,000,000	$ 11,300,000,000

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

Jun. 30, 2019

Jun. 30, 2018

$ 17,139

^[1]

$ 15,936

(9,389)

(7,883)

7,750

8,053

Technology-based

7,691

7,220

(5,771)

(5,018)

1,920

2,202

Customer-related

4,709

4,031

(1,785)

(1,205)

2,924

2,826

Marketing-related

4,165

4,006

(1,327)

(1,071)

2,838

2,935

Contract-based

574

679

(506)

(589)

$ 68

$ 90

[1]	Includes intangible assets of $1.3 billion related to GitHub. See Note 8 – Business Combinations for further information.

Intangible Assets Acquired (Detail) - USD ($) $ in Millions	12 Months Ended
Intangible Assets Acquired (Detail) - USD ($) $ in Millions	Jun. 30, 2019	Jun. 30, 2018
Acquired Finite-Lived Intangible Assets [Line Items]
Amount	$ 1,708	$ 219
Weighted Average Life	7 years	5 years
Technology-based
Acquired Finite-Lived Intangible Assets [Line Items]
Amount	$ 814	$ 178
Weighted Average Life	5 years	4 years
Marketing-related
Acquired Finite-Lived Intangible Assets [Line Items]
Amount	$ 177	$ 14
Weighted Average Life	10 years	5 years
Contract-based
Acquired Finite-Lived Intangible Assets [Line Items]
Amount	$ 7	$ 14
Weighted Average Life	3 years	4 years
Customer-related
Acquired Finite-Lived Intangible Assets [Line Items]
Amount	$ 710	$ 13
Weighted Average Life	8 years	5 years

Estimated Future Amortization Expense Related to Intangible Assets (Detail) - USD ($) $ in Millions	Jun. 30, 2019	Jun. 30, 2018
Goodwill And Intangible Assets Disclosure [Abstract]
Year Ending June 30, 2020	$ 1,488
Year Ending June 30, 2021	1,282
Year Ending June 30, 2022	1,187
Year Ending June 30, 2023	1,053
Year Ending June 30, 2024	737
Thereafter	2,003
Net Carrying Amount	$ 7,750	$ 8,053

Debt - Additional Information (Detail) - USD ($)	12 Months Ended
Debt - Additional Information (Detail) - USD ($)	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
Debt Disclosure [Abstract]
Commercial paper	$ 0	$ 0
Long-term debt	72,200,000,000	76,200,000,000
Long-term debt fair value	78,900,000,000	77,500,000,000
Cash paid for interest	2,400,000,000	2,400,000,000	$ 1,600,000,000
Debt issuance costs and unamortized discount	$ 603,000,000	$ 658,000,000

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

12 Months Ended

Jun. 30, 2019

Jun. 30, 2018

Notes 1.30 Percent Due November 3rd 2018

$ 72,781

$ 76,898

Nov. 03, 2018

$ 0

$ 1,750

1.30%

Notes 1.625 Percent Due December 6th 2018

1.396%

Dec. 06, 2018

$ 0

$ 1,250

1.625%

Notes 4.2 Percent Due June 1st 2019

1.824%

Jun. 01, 2019

$ 0

$ 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]

$ 1,994

$ 2,044

^[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]

$ 1,993

$ 2,044

^[1]

3.125%

Notes 2.625 Percent Due May 2nd 2033

^[1]

3.218%

^[1]

May 02, 2033

^[1]

$ 626

$ 642

^[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 into the savings plans

4.528%

[1]	Euro-denominated debt securities.

Maturities of Long-term Debt (Detail) - USD ($) $ in Millions	Jun. 30, 2019	Jun. 30, 2018
Debt Disclosure [Abstract]
Year Ending June 30, 2020	$ 5,518
Year Ending June 30, 2021	3,750
Year Ending June 30, 2022	7,994
Year Ending June 30, 2023	2,750
Year Ending June 30, 2024	5,250
Thereafter	47,519
Total	$ 72,781	$ 76,898

Income Taxes - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended				12 Months Ended
	Jun. 30, 2019	Dec. 31, 2018	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Income Taxes [Line Items]
Provision (benefit) for income taxes					$ 4,448	$ 19,903	$ 4,412
Income taxes paid, net of refunds					8,400	5,500	2,400
Gross unrecognized tax benefits related to uncertain tax positions	$ 13,146		$ 11,961		13,146	11,961	11,737	$ 10,164
Gross unrecognized tax benefits related to uncertain tax positions, if recognized would affect our effective tax rates	12,000		11,300		12,000	11,300	10,200
Accrued interest expense related to uncertain tax positions net of federal income tax benefits	3,400		3,000		3,400	3,000	2,300
Interest expense related to uncertain tax positions, net of income tax benefits					515	688	$ 399
Transfer of Intangible Properties
Income Taxes [Line Items]
Provision (benefit) for income taxes	(2,600)				(2,600)
Tax Cuts and Jobs Act
Income Taxes [Line Items]
Provision (benefit) for income taxes		$ 157	$ (104)	$ 13,800	$ 157	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					82.00%	87.00%	76.00%
Federal
Income Taxes [Line Items]
Operating loss carryforwards	978				$ 978
Foreign Country
Income Taxes [Line Items]
Operating loss carryforwards	11,600				11,600
State
Income Taxes [Line Items]
Operating loss carryforwards	$ 770				$ 770
Federal and State \| Earliest Tax Year
Income Taxes [Line Items]
Operating loss carryforwards expiration year					2020
Federal and State \| Latest Tax Year
Income Taxes [Line Items]
Operating loss carryforwards expiration year					2039

Provision for Income Taxes (Detail) - USD ($) $ in Millions	12 Months Ended
Provision for Income Taxes (Detail) - USD ($) $ in Millions	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
Current Taxes
U.S. federal	$ 4,718	$ 19,764	$ 2,739
U.S. state and local	662	934	30
Foreign	5,531	4,348	2,472
Current taxes	10,911	25,046	5,241
Deferred Taxes
U.S. federal	(5,647)	(4,292)	(554)
U.S. state and local	(1,010)	(458)	269
Foreign	194	(393)	(544)
Deferred taxes	(6,463)	(5,143)	(829)
Provision for income taxes	$ 4,448	$ 19,903	$ 4,412

Income Before Income Taxes (Detail) - USD ($) $ in Millions	12 Months Ended
Income Before Income Taxes (Detail) - USD ($) $ in Millions	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
Income Tax Disclosure [Abstract]
U.S.	$ 15,799	$ 11,527	$ 6,843
Foreign	27,889	24,947	23,058
Income before income taxes	$ 43,688	$ 36,474	$ 29,901

Difference Between Income Taxes Computed at Federal Statutory Rate and Provision for Income Taxes (Detail)	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
Income Tax Disclosure [Abstract]
Federal statutory rate	21.00%	28.10%	35.00%
Effect of:
Foreign earnings taxed at lower rates	(4.10%)	(7.80%)	(11.60%)
Impact of the enactment of the TCJA	0.40%	37.70%	0.00%
Phone business losses	0.00%	0.00%	(5.70%)
Impact of intangible property transfers	(5.90%)	0.00%	0.00%
Foreign-derived intangible income deduction	(1.40%)	(0.00%)	(0.00%)
Research and development credit	(1.10%)	(1.30%)	(0.90%)
Excess tax benefits relating to stock-based compensation	(2.20%)	(2.50%)	(2.10%)
Interest, net	1.00%	1.20%	1.40%
Other reconciling items, net	2.50%	(0.80%)	(1.30%)
Effective rate	10.20%	54.60%	14.80%

Deferred Income Tax Assets and Liabilities (Detail) - USD ($) $ in Millions	Jun. 30, 2019	Jun. 30, 2018
Deferred Income Tax Assets
Stock-based compensation expense	$ 406	$ 460
Accruals, reserves, and other expenses	2,287	1,832
Loss and credit carryforwards	3,518	3,369
Depreciation and amortization	7,046	351
Leasing liabilities	1,594	1,427
Unearned revenue	475	0
Other	367	56
Deferred income tax assets	15,693	7,495
Less valuation allowance	(3,214)	(3,186)
Deferred income tax assets, net of valuation allowance	12,479	4,309
Deferred Income Tax Liabilities
Unrealized gain on investments and debt	(738)	0
Unearned revenue	(30)	(639)
Depreciation and amortization	0	(1,164)
Leasing assets	(1,510)	(1,366)
Deferred GILTI tax liabilities	(2,607)	(61)
Other	(291)	(251)
Deferred income tax liabilities	(5,176)	(3,481)
Net deferred income tax assets	7,303	828
Long-term deferred income tax liabilities	(233)	(541)
Other Long-term Assets
Deferred Income Tax Liabilities
Other long-term assets	$ 7,536	$ 1,369

Changes in Gross Unrecognized Tax Benefits Related to Uncertain Tax Positions (Detail) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
Income Tax Disclosure [Abstract]
Beginning unrecognized tax benefits	$ 11,961	$ 11,737	$ 10,164
Decreases related to settlements	(316)	(193)	(4)
Increases for tax positions related to the current year	2,106	1,445	1,277
Increases for tax positions related to prior years	508	151	397
Decreases for tax positions related to prior years	(1,113)	(1,176)	(49)
Decreases due to lapsed statutes of limitations	0	(3)	(48)
Ending unrecognized tax benefits	$ 13,146	$ 11,961	$ 11,737

Income Taxes - Additional Information Regarding Examinations (Detail)	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2016	Jun. 30, 2011
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	2018
Internal Revenue Service (IRS) \| Earliest Tax Year
Income Tax Examination [Line Items]
Tax years under audit		2010	2007	2004
Tax years subject to examination	2004
Tax years expected to be subject to examination	2014
Internal Revenue Service (IRS) \| Latest Tax Year
Income Tax Examination [Line Items]
Tax years under audit		2013	2009	2006
Tax years subject to examination	2013
Tax years expected to be subject to examination	2017

Restructuring Charges - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 0	$ 0	$ 306
2017 Restructuring
Restructuring Cost and Reserve [Line Items]
Completion date	Jun. 30, 2018
2017 Restructuring \| Severance
Restructuring Cost and Reserve [Line Items]
Restructuring charges			$ 306

Changes in Unearned Revenue (Detail) $ in Millions	12 Months Ended
Changes in Unearned Revenue (Detail) $ in Millions	Jun. 30, 2019 USD ($)
Revenue From Contract With Customer [Abstract]
Balance, beginning of period	$ 32,720
Deferral of revenue	69,493
Recognition of unearned revenue	(65,007)
Balance, end of period	$ 37,206

Unearned Revenue - Remaining Performance Obligation - Additional Information (Detail) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2019-07-01	Jun. 30, 2019
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]
Revenue allocated to remaining performance obligations, percentage of revenue expected to be recognized	50.00%
Revenue allocated to remaining performance obligations, expected timing of satisfaction	12 months

Leases - Additional Information (Detail) $ in Billions	12 Months Ended
Leases - Additional Information (Detail) $ in Billions	Jun. 30, 2019 USD ($)
Operating Lease
Leases [Line Items]
Additional leases, primarily for datacenters, that have not yet commenced	$ 2.3
Finance Lease
Leases [Line Items]
Additional leases, primarily for datacenters, that have not yet commenced	$ 6.1
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	15 years
Additional finance leases that have not yet commenced, lease terms	15 years

Components of Lease Expense (Detail) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
Leases [Abstract]
Operating lease cost	$ 1,707	$ 1,585	$ 1,412
Finance lease cost:
Amortization of right-of-use assets	370	243	104
Interest on lease liabilities	247	175	68
Total finance lease cost	$ 617	$ 418	$ 172

Supplemental Cash Flow Information Related to Leases (Detail) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 1,670	$ 1,522	$ 1,157
Operating cash flows from finance leases	247	175	68
Financing cash flows from finance leases	221	144	46
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	2,303	1,571	1,270
Finance leases	$ 2,532	$ 1,933	$ 1,773

Supplemental Balance Sheet Information Related to Leases (Detail) - USD ($) $ in Millions	Jun. 30, 2019	Jun. 30, 2018
Operating Leases
Operating lease right-of-use assets	$ 7,379	$ 6,686
Total operating lease liabilities	7,703	6,967
Finance Leases
Property and equipment, at cost	71,807	58,683
Accumulated depreciation	(35,330)	(29,223)
Total, net	36,477	29,460
Total finance lease liabilities	$ 6,574	$ 4,301
Weighted Average Remaining Lease Term
Operating leases	7 years	7 years
Finance leases	13 years	13 years
Weighted Average Discount Rate
Operating leases	3.00%	2.70%
Finance leases	4.60%	5.20%
Finance Lease
Finance Leases
Property and equipment, at cost	$ 7,041	$ 4,543
Accumulated depreciation	(774)	(404)
Total, net	6,267	4,139
Other Current Liabilities
Operating Leases
Total operating lease liabilities	1,515	1,399
Finance Leases
Total finance lease liabilities	317	176
Operating Lease Liabilities
Operating Leases
Total operating lease liabilities	6,188	5,568
Other Long-term Liabilities
Finance Leases
Total finance lease liabilities	$ 6,257	$ 4,125

Maturities of lease liabilities (Detail) - USD ($) $ in Millions	Jun. 30, 2019	Jun. 30, 2018
Leases [Abstract]
Operating Leases, Year Ending June 30, 2020	$ 1,678
Operating Leases, Year Ending June 30, 2021	1,438
Operating Leases, Year Ending June 30, 2022	1,235
Operating Leases, Year Ending June 30, 2023	1,036
Operating Leases, Year Ending June 30, 2024	839
Operating Leases, Thereafter	2,438
Operating Leases, Total lease payments	8,664
Operating Leases, Less imputed interest	(961)
Operating Leases	7,703	$ 6,967
Finance Leases, Year Ending June 30, 2020	591
Finance Leases, Year Ending June 30, 2021	616
Finance Leases, Year Ending June 30, 2022	626
Finance Leases, Year Ending June 30, 2023	631
Finance Leases, Year Ending June 30, 2024	641
Finance Leases, Thereafter	5,671
Finance Leases, Total lease payments	8,776
Finance Leases, Less imputed interest	(2,202)
Finance Leases	$ 6,574	$ 4,301

Shares of Common Stock Outstanding (Detail) - shares shares in Millions	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
Equity [Abstract]
Balance, beginning of year	7,677	7,708	7,808
Issued	116	68	70
Repurchased	(150)	(99)	(170)
Balance, end of year	7,643	7,677	7,708

Stockholders' Equity - Additional Information (Detail) - USD ($)	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017	Sep. 20, 2016	Sep. 16, 2013
Share Repurchases [Line Items]
Amount of shares repurchased to settle employee tax withholding related to vesting of stock awards	$ 2,700,000,000	$ 2,100,000,000	$ 1,500,000,000
Share Repurchase Program 2013
Share Repurchases [Line Items]
Amount available for repurchase under the share repurchase program approved by the company's Board of Directors					$ 40,000,000,000
Share Repurchase Program 2016
Share Repurchases [Line Items]
Amount available for repurchase under the share repurchase program approved by the company's Board of Directors				$ 40,000,000,000
Unused amount of share repurchase program	$ 11,400,000,000

Share Repurchases (Detail) - USD ($) shares in Millions, $ in Millions	3 Months Ended												12 Months Ended
	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	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, 2019	Jun. 30, 2018	Jun. 30, 2017
Share Repurchases [Line Items]
Shares of common stock repurchased													150	99	170
Share Repurchase Program 2016
Share Repurchases [Line Items]
Shares of common stock repurchased	33	36	57	24	21	34	22	22	23	25	59	63	150	99	170
Value of common stock repurchased	$ 4,200	$ 3,899	$ 6,100	$ 2,600	$ 2,100	$ 3,100	$ 1,800	$ 1,600	$ 1,600	$ 1,600	$ 3,533	$ 3,550	$ 16,799	$ 8,600	$ 10,283

Dividends Declared (Detail) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended								12 Months Ended
	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
Equity [Abstract]
Declaration Date	Jun. 12, 2019	Mar. 11, 2019	Nov. 28, 2018	Sep. 18, 2018	Jun. 13, 2018	Mar. 12, 2018	Nov. 29, 2017	Sep. 19, 2017
Record Date	Aug. 15, 2019	May 16, 2019	Feb. 21, 2019	Nov. 15, 2018	Aug. 16, 2018	May 17, 2018	Feb. 15, 2018	Nov. 16, 2017
Payment Date	Sep. 12, 2019	Jun. 13, 2019	Mar. 14, 2019	Dec. 13, 2018	Sep. 13, 2018	Jun. 14, 2018	Mar. 08, 2018	Dec. 14, 2017
Dividend Per Share	$ 0.46	$ 0.46	$ 0.46	$ 0.46	$ 0.42	$ 0.42	$ 0.42	$ 0.42	$ 1.84	$ 1.68	$ 1.56
Amount	$ 3,516	$ 3,521	$ 3,526	$ 3,544	$ 3,220	$ 3,226	$ 3,232	$ 3,238	$ 14,107	$ 12,916

Summary of Changes in Accumulated Other Comprehensive Income (Loss) by Component (Detail) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, beginning of period	$ 82,718	$ 87,711
Net change related to other comprehensive income (loss)	1,914	(2,856)	$ (1,167)
Balance, end of period	102,330	82,718	87,711
Derivatives
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, beginning of period	173	134	352
Unrealized gains (losses), net of tax	160	218	328
Tax expense (benefit) included in provision for income taxes	8	6	9
Amounts reclassified from accumulated other comprehensive income (loss)	(333)	(179)	(546)
Net change related to other comprehensive income (loss)	(173)	39	(218)
Balance, end of period	0	173	134
Derivatives \| Revenue
Accumulated Other Comprehensive Income (Loss) [Line Items]
Reclassification adjustments for (gains) losses	(341)	(185)	(555)
Investments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, beginning of period	(850)	1,825	2,941
Unrealized gains (losses), net of tax	2,331	(1,146)	517
Tax expense (benefit) included in provision for income taxes	(19)	738	880
Amounts reclassified from accumulated other comprehensive income (loss)	74	(1,571)	(1,633)
Net change related to other comprehensive income (loss)	2,405	(2,717)	(1,116)
Cumulative effect of accounting changes	(67)	42	0
Balance, end of period	1,488	(850)	1,825
Investments \| Other income (expense), net
Accumulated Other Comprehensive Income (Loss) [Line Items]
Reclassification adjustments for (gains) losses	93	(2,309)	(2,513)
Translation adjustments and other
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, beginning of period	(1,510)	(1,332)	(1,499)
Net change related to other comprehensive income (loss)	(318)	(178)	167
Balance, end of period	(1,828)	(1,510)	(1,332)
Accumulated other comprehensive income (loss)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, beginning of period	(2,187)	627	1,794
Net change related to other comprehensive income (loss)	1,914	(2,856)	(1,167)
Cumulative effect of accounting changes	(67)	42	0
Balance, end of period	$ (340)	$ (2,187)	$ 627

Summary of Changes in Accumulated Other Comprehensive Income (Loss) by Component (Parenthetical) (Detail) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
Derivatives
Accumulated Other Comprehensive Income (Loss) [Line Items]
Unrealized gains (losses), tax	$ 2	$ 11	$ 4
Net change related to other comprehensive income (loss), tax	(6)	5	(5)
Investments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Unrealized gains (losses), tax	616	(427)	267
Net change related to other comprehensive income (loss), tax	635	(1,165)	(613)
Translation adjustments and other
Accumulated Other Comprehensive Income (Loss) [Line Items]
Net change related to other comprehensive income (loss), tax	$ (1)	$ 0	$ 9

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

12 Months Ended

Jun. 30, 2019

Jun. 30, 2018

Jun. 30, 2017

50.00%

Retirement benefits for saving plans funded by employer

$ 877

$ 807

$ 734

Upper Limit | IRS Compensation Limit

Percentage of employee's earnings the company may contribute into the savings plans

50.00%

Stock Awards

Shares authorized for future grant

327

Unrecognized compensation costs

$ 8,600

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

3 years

Weighted average grant-date fair value

$ 107.02

^[1]

$ 75.88

$ 55.64

Fair value of awards vested

$ 8,700

$ 6,600

$ 4,800

Stock Awards | Lower Limit

Stock Awards | Upper Limit

4 years

Restricted Stock Units | Executive Incentive Plan

5 years

Performance Stock Units | Executive Incentive Plan

4 years

Shares authorized for future grant

3 years

Employee Stock

105

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

90.00%

Maximum percentage of gross compensation at which employees may purchase shares

15.00%

[1]	Includes 2 million, 3 million, and 2 million of PSUs granted at target and performance adjustments above target levels for fiscal years 2019, 2018, and 2017, respectively.

Stock-Based Compensation Expense and Related Income Tax Benefits (Detail) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stock-based compensation expense	$ 4,652	$ 3,940	$ 3,266
Income tax benefits related to stock-based compensation	$ 816	$ 823	$ 1,066

Assumptions Used in Estimating the Fair Value of Stock Award Grants (Detail) - $ / shares	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
Share based Compensation Arrangement by Share based Payment Award, Fair Value Assumptions, Method Used [Line Items]
Interest rates minimum	1.80%	1.70%	1.20%
Interest rates maximum	3.10%	2.90%	2.20%
Lower 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
Upper Limit
Share based Compensation Arrangement by Share based Payment Award, Fair Value Assumptions, Method Used [Line Items]
Dividends per share (quarterly amounts)	$ 0.46	$ 0.42	$ 0.39

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

12 Months Ended

Jun. 30, 2019

Jun. 30, 2018

Jun. 30, 2017

Shares

Nonvested balance, beginning of year

174

Granted

^[1]

Vested

(77)

Forfeited

(13)

Nonvested balance, end of year

147

174

Weighted Average Grant-Date Fair Value

Nonvested balance, beginning of year

$ 57.85

Granted

107.02

^[1]

$ 75.88

$ 55.64

Vested

57.08

Forfeited

69.35

Nonvested balance, end of year

$ 78.49

$ 57.85

[1]	Includes 2 million, 3 million, and 2 million of PSUs granted at target and performance adjustments above target levels for fiscal years 2019, 2018, and 2017, respectively.

Segment Revenue (Detail) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
Segment Revenue (Detail) - USD ($) $ in Millions	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
Segment Reporting Information [Line Items]
Revenue	$ 33,717	$ 30,571	$ 32,471	$ 29,084	$ 30,085	$ 26,819	$ 28,918	$ 24,538	$ 125,843	$ 110,360	$ 96,571
Productivity and Business Processes
Segment Reporting Information [Line Items]
Revenue									41,160	35,865	29,870
Intelligent Cloud
Segment Reporting Information [Line Items]
Revenue									38,985	32,219	27,407
More Personal Computing
Segment Reporting Information [Line Items]
Revenue									$ 45,698	$ 42,276	$ 39,294

Operating Income (Loss) by Segment (Detail) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
Segment Reporting Information [Line Items]
Operating Income (Loss)	$ 12,405	$ 10,341	$ 10,258	$ 9,955	$ 10,379	$ 8,292	$ 8,679	$ 7,708	$ 42,959	$ 35,058	$ 29,025
Reportable Segments \| Productivity and Business Processes
Segment Reporting Information [Line Items]
Operating Income (Loss)									16,219	12,924	11,389
Reportable Segments \| Intelligent Cloud
Segment Reporting Information [Line Items]
Operating Income (Loss)									13,920	11,524	9,127
Reportable Segments \| More Personal Computing
Segment Reporting Information [Line Items]
Operating Income (Loss)									12,820	10,610	8,815
Corporate and Other
Segment Reporting Information [Line Items]
Operating Income (Loss)									$ 0	$ 0	$ (306)

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

3 Months Ended

12 Months Ended

Jun. 30, 2019

Mar. 31, 2019

Dec. 31, 2018

Sep. 30, 2018

Jun. 30, 2018

Mar. 31, 2018

Dec. 31, 2017

Sep. 30, 2017

Jun. 30, 2019

Jun. 30, 2018

Jun. 30, 2017

Revenues From External Customers And Long Lived Assets [Line Items]

Revenues

$ 33,717

$ 30,571

$ 32,471

$ 29,084

$ 30,085

$ 26,819

$ 28,918

$ 24,538

$ 125,843

$ 110,360

$ 96,571

United States

Revenues From External Customers And Long Lived Assets [Line Items]

Revenues

^[1]

64,199

55,926

51,078

Other Countries

Revenues From External Customers And Long Lived Assets [Line Items]

Revenues

$ 61,644

$ 54,434

$ 45,493

[1]	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, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
Revenue from External Customer [Line Items]
Revenue	$ 33,717	$ 30,571	$ 32,471	$ 29,084	$ 30,085	$ 26,819	$ 28,918	$ 24,538	$ 125,843	$ 110,360	$ 96,571
Office Products and Cloud Services
Revenue from External Customer [Line Items]
Revenue									31,769	28,316	25,573
Server Products and Cloud Services
Revenue from External Customer [Line Items]
Revenue									32,622	26,129	21,649
Windows
Revenue from External Customer [Line Items]
Revenue									20,395	19,518	18,593
Gaming
Revenue from External Customer [Line Items]
Revenue									11,386	10,353	9,051
Search Advertising
Revenue from External Customer [Line Items]
Revenue									7,628	7,012	6,219
Enterprise Services
Revenue from External Customer [Line Items]
Revenue									6,124	5,846	5,542
Devices
Revenue from External Customer [Line Items]
Revenue									6,095	5,134	5,062
LinkedIn
Revenue from External Customer [Line Items]
Revenue									6,754	5,259	2,271
Other
Revenue from External Customer [Line Items]
Revenue									$ 3,070	$ 2,793	$ 2,611

Revenue Classified by Significant Product and Service Offerings (Parenthetical) (Detail) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
Revenue from External Customer [Line Items]
Revenue	$ 33,717	$ 30,571	$ 32,471	$ 29,084	$ 30,085	$ 26,819	$ 28,918	$ 24,538	$ 125,843	$ 110,360	$ 96,571
Commercial Cloud
Revenue from External Customer [Line Items]
Revenue									$ 38,100	$ 26,600	$ 16,200

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

3 Months Ended

12 Months Ended

Jun. 30, 2019

Mar. 31, 2019

Dec. 31, 2018

Sep. 30, 2018

Jun. 30, 2018

Mar. 31, 2018

Dec. 31, 2017

Sep. 30, 2017

Jun. 30, 2019

Jun. 30, 2018

Jun. 30, 2017

Quarterly Financial Information Disclosure [Abstract]

Basic earnings (loss) per share

$ 33,717

$ 30,571

$ 32,471

$ 29,084

$ 30,085

$ 26,819

$ 28,918

$ 24,538

$ 125,843

$ 110,360

$ 96,571

Gross margin

23,305

20,401

20,048

19,179

20,343

17,550

17,854

16,260

82,933

72,007

62,310

Operating income

12,405

10,341

10,258

9,955

10,379

8,292

8,679

7,708

42,959

35,058

29,025

Net income (loss)

$ 13,187

^[1]

$ 8,809

^[1]

$ 8,420

^[1]

$ 8,824

^[1]

$ 8,873

^[2]

$ 7,424

^[2]

$ (6,302)

^[2]

$ 6,576

^[2]

$ 39,240

^[1]

$ 16,571

^[2]

$ 25,489

$ 1.72

$ 1.15

$ 1.09

$ 1.15

$ 0.96

$ (0.82)

$ 0.85

$ 5.11

$ 2.15

$ 3.29

Diluted earnings (loss) per share

$ 1.71

^[3]

$ 1.14

^[3]

$ 1.08

^[3]

$ 1.14

^[3]

$ 1.14

^[4]

$ 0.95

^[4]

$ (0.82)

^[4]

$ 0.84

^[4]

$ 5.06

^[3]

$ 2.13

^[4]

$ 3.25

[1]	Reflects the $157 million net charge related to the enactment of the TCJA for the second quarter and the $2.6 billion net income tax benefit related to the intangible property transfers for the fourth quarter, which together increased net income by $2.4 billion for fiscal year 2019. See Note 12 – Income Taxes for further information.
[2]	Reflects the net charge (benefit) related to the enactment of 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]	Reflects the net charge related to the enactment of the TCJA and the net income tax benefit related to the intangible property transfers, which decreased (increased) diluted EPS $0.02 for the second quarter, $(0.34) for the fourth quarter, and $(0.31) for fiscal year 2019.
[4]	Reflects the net charge (benefit) related to the enactment of 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.