0001564590-21-039151 | 10-K | XBRL Viewer

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Document and Entity Information - USD ($) $ / shares in Units, $ in Trillions	12 Months Ended
	Jun. 30, 2021	Jul. 26, 2021	Dec. 31, 2020
Entity Information [Line Items]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Jun. 30, 2021
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	FY
Entity Registrant Name	MICROSOFT CORPORATION
Entity Central Index Key	0000789019
Current Fiscal Year End Date	--06-30
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity File Number	001-37845
Entity Incorporation, State or Country Code	WA
Entity Tax Identification Number	91-1144442
Entity Address, Address Line One	ONE MICROSOFT WAY
Entity Address, City or Town	REDMOND
Entity Address, State or Province	WA
Entity Address, Postal Zip Code	98052-6399
City Area Code	425
Local Phone Number	882-8080
Document Annual Report	true
Document Transition Report	false
Entity Common Stock, Shares Outstanding		7,514,891,248
Entity Public Float			$ 1.7
ICFR Auditor Attestation Flag	true
Entity Common Stock, Par Value Per Share	$ 0.00000625
Documents Incorporated by Reference [Text Block]	Portions of the definitive Proxy Statement to be delivered to shareholders in connection with the Annual Meeting of Shareholders to be held on November 30, 2021 are incorporated by reference into Part III
Common Stock
Entity Information [Line Items]
Trading Symbol	MSFT
Title of 12(b) Security	Common stock, $0.00000625 par value per share
Security Exchange Name	NASDAQ
2.125% Notes Due 2021
Entity Information [Line Items]
Trading Symbol	MSFT
Title of 12(b) Security	2.125% Notes due 2021
Security Exchange Name	NASDAQ
3.125% Notes Due 2028
Entity Information [Line Items]
Trading Symbol	MSFT
Title of 12(b) Security	3.125% Notes due 2028
Security Exchange Name	NASDAQ
2.625% Notes Due 2033
Entity Information [Line Items]
Trading Symbol	MSFT
Title of 12(b) Security	2.625% Notes due 2033
Security Exchange Name	NASDAQ

INCOME STATEMENTS - USD ($) shares in Millions, $ in Millions	12 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2019
Revenue	$ 168,088	$ 143,015	$ 125,843
Cost of revenue	52,232	46,078	42,910
Gross margin	115,856	96,937	82,933
Research and development	20,716	19,269	16,876
Sales and marketing	20,117	19,598	18,213
General and administrative	5,107	5,111	4,885
Operating income	69,916	52,959	42,959
Other income, net	1,186	77	729
Income before income taxes	71,102	53,036	43,688
Provision for income taxes	9,831	8,755	4,448
Net income	$ 61,271	$ 44,281	$ 39,240
Earnings per share:
Basic	$ 8.12	$ 5.82	$ 5.11
Diluted	$ 8.05	$ 5.76	$ 5.06
Weighted average shares outstanding:
Basic	7,547	7,610	7,673
Diluted	7,608	7,683	7,753
Product
Revenue	$ 71,074	$ 68,041	$ 66,069
Cost of revenue	18,219	16,017	16,273
Service and Other
Revenue	97,014	74,974	59,774
Cost of revenue	$ 34,013	$ 30,061	$ 26,637

COMPREHENSIVE INCOME STATEMENTS - USD ($) $ in Millions	12 Months Ended
COMPREHENSIVE INCOME STATEMENTS - USD ($) $ in Millions	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2019
Statement Of Income And Comprehensive Income [Abstract]
Net income	$ 61,271	$ 44,281	$ 39,240
Other comprehensive income (loss), net of tax:
Net change related to derivatives	19	(38)	(173)
Net change related to investments	(2,266)	3,990	2,405
Translation adjustments and other	873	(426)	(318)
Other comprehensive income (loss)	(1,374)	3,526	1,914
Comprehensive income	$ 59,897	$ 47,807	$ 41,154

- Definition

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

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+ Details

BALANCE SHEETS - USD ($) $ in Millions	Jun. 30, 2021	Jun. 30, 2020
Current assets:
Cash and cash equivalents	$ 14,224	$ 13,576
Short-term investments	116,110	122,951
Total cash, cash equivalents, and short-term investments	130,334	136,527
Accounts receivable, net of allowance for doubtful accounts of $751 and $788	38,043	32,011
Inventories	2,636	1,895
Other current assets	13,393	11,482
Total current assets	184,406	181,915
Property and equipment, net of accumulated depreciation of $51,351 and $43,197	59,715	44,151
Operating lease right-of-use assets	11,088	8,753
Equity investments	5,984	2,965
Goodwill	49,711	43,351
Intangible assets, net	7,800	7,038
Other long-term assets	15,075	13,138
Total assets	333,779	301,311
Current liabilities:
Accounts payable	15,163	12,530
Current portion of long-term debt	8,072	3,749
Accrued compensation	10,057	7,874
Short-term income taxes	2,174	2,130
Short-term unearned revenue	41,525	36,000
Other current liabilities	11,666	10,027
Total current liabilities	88,657	72,310
Long-term debt	50,074	59,578
Long-term income taxes	27,190	29,432
Long-term unearned revenue	2,616	3,180
Deferred income taxes	198	204
Operating lease liabilities	9,629	7,671
Other long-term liabilities	13,427	10,632
Total liabilities	191,791	183,007
Commitments and contingencies
Stockholders’ equity:
Common stock and paid-in capital – shares authorized 24,000; outstanding 7,519 and 7,571	83,111	80,552
Retained earnings	57,055	34,566
Accumulated other comprehensive income	1,822	3,186
Total stockholders’ equity	141,988	118,304
Total liabilities and stockholders’ equity	$ 333,779	$ 301,311

BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions	Jun. 30, 2021	Jun. 30, 2020
Statement Of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 751	$ 788
Property and equipment, accumulated depreciation	$ 51,351	$ 43,197
Common stock, shares authorized	24,000,000,000	24,000,000,000
Common stock, outstanding	7,519,000,000	7,571,000,000

CASH FLOWS STATEMENTS - USD ($) $ in Millions	12 Months Ended
CASH FLOWS STATEMENTS - USD ($) $ in Millions	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2019
Operations
Net income	$ 61,271	$ 44,281	$ 39,240
Adjustments to reconcile net income to net cash from operations:
Depreciation, amortization, and other	11,686	12,796	11,682
Stock-based compensation expense	6,118	5,289	4,652
Net recognized gains on investments and derivatives	(1,249)	(219)	(792)
Deferred income taxes	(150)	11	(6,463)
Changes in operating assets and liabilities:
Accounts receivable	(6,481)	(2,577)	(2,812)
Inventories	(737)	168	597
Other current assets	(932)	(2,330)	(1,718)
Other long-term assets	(3,459)	(1,037)	(1,834)
Accounts payable	2,798	3,018	232
Unearned revenue	4,633	2,212	4,462
Income taxes	(2,309)	(3,631)	2,929
Other current liabilities	4,149	1,346	1,419
Other long-term liabilities	1,402	1,348	591
Net cash from operations	76,740	60,675	52,185
Financing
Cash premium on debt exchange	(1,754)	(3,417)	0
Repayments of debt	(3,750)	(5,518)	(4,000)
Common stock issued	1,693	1,343	1,142
Common stock repurchased	(27,385)	(22,968)	(19,543)
Common stock cash dividends paid	(16,521)	(15,137)	(13,811)
Other, net	(769)	(334)	(675)
Net cash used in financing	(48,486)	(46,031)	(36,887)
Investing
Additions to property and equipment	(20,622)	(15,441)	(13,925)
Acquisition of companies, net of cash acquired, and purchases of intangible and other assets	(8,909)	(2,521)	(2,388)
Purchases of investments	(62,924)	(77,190)	(57,697)
Maturities of investments	51,792	66,449	20,043
Sales of investments	14,008	17,721	38,194
Other, net	(922)	(1,241)	0
Net cash used in investing	(27,577)	(12,223)	(15,773)
Effect of foreign exchange rates on cash and cash equivalents	(29)	(201)	(115)
Net change in cash and cash equivalents	648	2,220	(590)
Cash and cash equivalents, beginning of period	13,576	11,356	11,946
Cash and cash equivalents, end of period	$ 14,224	$ 13,576	$ 11,356

STOCKHOLDERS' EQUITY STATEMENTS - USD ($) $ in Millions	Total	Common stock and paid-in capital	Retained earnings	Retained earnings Cumulative effect of accounting changes	Accumulated other comprehensive income (loss)	Accumulated other comprehensive income (loss) Cumulative effect of accounting changes
Balance, beginning of period at Jun. 30, 2018		$ 71,223	$ 13,682	$ 677	$ (2,187)	$ (67)
Accounting Standards Update [Extensible List]	us-gaap:AccountingStandardsUpdate201601Member
Common stock issued		6,829
Net income	$ 39,240		39,240
Other comprehensive income (loss)	1,914				1,914
Common stock cash dividends			(14,103)
Common stock repurchased		(4,195)	(15,346)
Stock-based compensation expense		4,652
Other, net		11
Balance, end of period at Jun. 30, 2019	$ 102,330	78,520	24,150	0	(340)	0
Cash dividends declared per common share	$ 1.84
Accounting Standards Update [Extensible List]	us-gaap:AccountingStandardsUpdate201601Member
Common stock issued		1,343
Net income	$ 44,281		44,281
Other comprehensive income (loss)	3,526				3,526
Common stock cash dividends	(15,483)		(15,483)
Common stock repurchased		(4,599)	(18,382)
Stock-based compensation expense		5,289
Other, net		(1)
Balance, end of period at Jun. 30, 2020	$ 118,304	80,552	34,566	$ (32)	3,186	$ 10
Cash dividends declared per common share	$ 2.04
Accounting Standards Update [Extensible List]	us-gaap:AccountingStandardsUpdate201601Member
Common stock issued		1,963
Net income	$ 61,271		61,271
Other comprehensive income (loss)	(1,374)				(1,374)
Common stock cash dividends	(16,876)		(16,871)
Common stock repurchased		(5,539)	(21,879)
Stock-based compensation expense		6,118
Other, net		17
Balance, end of period at Jun. 30, 2021	$ 141,988	$ 83,111	$ 57,055		$ 1,822
Cash dividends declared per common share	$ 2.24

ACCOUNTING POLICIES

12 Months Ended

Jun. 30, 2021

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 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 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 in 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 due to risks and uncertainties, including uncertainty in the current economic environment due to COVID-19.

In July 2020, we completed an assessment of the useful lives of our server and network equipment and determined we should increase the estimated useful life of server equipment from three years to four years and increase the estimated useful life of network equipment from two years to four years. This change in accounting estimate was effective beginning fiscal year 2021. Based on the carrying amount of server and network equipment included in property and equipment, net as of June 30, 2020, the effect of this change in estimate for fiscal year 2021 was an increase in operating income of $2.7 billion and net income of $2.3 billion, or $0.30 per both basic and diluted share.

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.

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 Office 365, Azure, Dynamics 365, and Xbox; 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 19 – 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 and Other Receivables

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.

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 subscriptions, Windows 10 post-delivery support, Dynamics business solutions, 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 13 – 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.

As of June 30, 2021 and 2020, other receivables due from suppliers were $965 million and $442 million, respectively, and are included in accounts receivable, net in our consolidated balance sheets.

As of June 30, 2021 and 2020, long-term accounts receivable, net of allowance for doubtful accounts, was $3.4 billion and $2.7 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,		2021			2020			2019

Balance, beginning of period	$	816		$	434		$	397
Charged to costs and other		234			560			153
Write-offs		(252	)		(178	)		(116	)


Balance, end of period	$	798		$	816		$	434

Allowance for doubtful accounts included in our consolidated balance sheets:

(In millions)


June 30,		2021		2020		2019

Accounts receivable, net of allowance for doubtful accounts	$	751	$	788	$	411
Other long-term assets		47		28		23


Total	$	798	$	816	$	434

We record financing receivables when we offer certain of our customers the option to acquire our software products and services offerings through a financing program in a limited number of countries. As of June 30, 2021 and 2020, our financing receivables, net were $4.4 billion and $5.2 billion, respectively, for short-term and long-term financing receivables, which are included in other current assets and other long-term assets in our consolidated balance sheets. We record an allowance to cover expected losses based on troubled accounts, historical experience, and other currently available evidence.

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 $1.5 billion, $1.6 billion, and $1.6 billion in fiscal years 2021, 2020, and 2019, 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 credit losses and impairments, are recorded in other comprehensive income. Fair value is calculated based on publicly available market information or other estimates determined by management. 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 extent to which the fair value is less than cost. To determine credit losses, we employ a systematic methodology that considers available quantitative and qualitative evidence. In addition, we consider specific adverse conditions related to the financial health of, and business outlook for, the investee. If 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, then a decline in fair value below cost is recorded as an impairment charge in other income (expense), net and a new cost basis in the investment is established. If market, industry, and/or investee conditions deteriorate, we may incur future impairments.

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 periodic 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.

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. Gains and losses representing hedge components excluded from the assessment of effectiveness are recognized in other income (expense), net.

For derivative instruments designated as cash flow hedges, gains and losses are initially reported as a component of other comprehensive income and subsequently recognized in earnings with the corresponding hedged item. Gains and losses representing hedge components excluded from the assessment of effectiveness are recognized in earnings.

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, municipal securities, 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 four 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

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 adopted the standard effective July 1, 2020. We use a forward-looking expected credit loss model for accounts receivable, loans, and other financial instruments. Credit losses relating to available-for-sale debt securities are recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. We applied 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. The adoption of the standard did not have a material impact on our consolidated financial statements.

Recent Accounting Guidance Not Yet Adopted

Accounting for Income Taxes

In December 2019, the FASB issued a new standard to simplify the accounting for income taxes. The guidance eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities for outside basis differences related to changes in ownership of equity method investments and foreign subsidiaries. The guidance also simplifies aspects of accounting for franchise taxes and enacted changes in tax laws or rates, and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. The standard will be effective for us beginning July 1, 2021. We have completed our assessment and concluded that adoption of the new standard will not have a material impact on our consolidated financial statements.

EARNINGS PER SHARE

12 Months Ended

Jun. 30, 2021

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,	2021		2020		2019

Net income available for common shareholders (A)	$	61,271	$	44,281	$	39,240
Weighted average outstanding shares of common stock (B)		7,547		7,610		7,673
Dilutive effect of stock-based awards		61		73		80


Common stock and common stock equivalents (C)		7,608		7,683		7,753


Earnings Per Share

Basic (A/B)	$	8.12	$	5.82	$	5.11
Diluted (A/C)	$	8.05	$	5.76	$	5.06

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, 2021

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,	2021			2020			2019

Interest and dividends income	$	2,131		$	2,680		$	2,762
Interest expense		(2,346	)		(2,591	)		(2,686	)
Net recognized gains on investments		1,232			32			648
Net gains on derivatives		17			187			144
Net gains (losses) on foreign currency remeasurements		54			(191	)		(82	)
Other, net		98			(40	)		(57	)


Total	$	1,186		$	77		$	729

Net Recognized Gains (Losses) on Investments

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

(In millions)


Year Ended June 30,	2021			2020			2019

Realized gains from sales of available-for-sale securities	$	105		$	50		$	12
Realized losses from sales of available-for-sale securities		(40	)		(37	)		(93	)
Impairments and allowance for credit losses		(2	)		(17	)		(16	)


Total	$	63		$	(4	)	$	(97	)

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

(In millions)


Year Ended June 30,	2021			2020			2019

Net realized gains on investments sold	$	123		$	83		$	276
Net unrealized gains on investments still held		1,057			69			479
Impairments of investments		(11	)		(116	)		(10	)


Total	$	1,169		$	36		$	745

INVESTMENTS

12 Months Ended

Jun. 30, 2021

Investments Debt And Equity Securities [Abstract]

INVESTMENTS

NOTE 4 — INVESTMENTS

Investment Components

The components of investments were as follows:

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


June 30, 2021

Changes in Fair Value Recorded in Other Comprehensive Income

Commercial paper		Level 2	$	4,316	$	0	$	0		$	4,316	$	1,331	$	2,985	$	0
Certificates of deposit		Level 2		3,615		0		0			3,615		2,920		695		0
U.S. government securities		Level 1		90,664		3,832		(111	)		94,385		1,500		92,885		0
U.S. agency securities		Level 2		807		2		0			809		0		809		0
Foreign government bonds		Level 2		6,213		9		(2	)		6,220		225		5,995		0
Mortgage- and asset-backed securities		Level 2		3,442		22		(6	)		3,458		0		3,458		0
Corporate notes and bonds		Level 2		8,443		249		(9	)		8,683		0		8,683		0
Corporate notes and bonds		Level 3		63		0		0			63		0		63		0
Municipal securities		Level 2		308		63		0			371		0		371		0
Municipal securities		Level 3		95		0		(7	)		88		0		88		0


Total debt investments			$	117,966	$	4,177	$	(135	)	$	122,008	$	5,976	$	116,032	$	0


Changes in Fair Value Recorded in Net Income

Equity investments		Level 1								$	1,582	$	976	$	0	$	606
Equity investments		Other									5,378		0		0		5,378


Total equity investments										$	6,960	$	976	$	0	$	5,984


Cash										$	7,272	$	7,272	$	0	$	0
Derivatives, net^(a)											78		0		78		0


Total										$	136,318	$	14,224	$	116,110	$	5,984

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


June 30, 2020

Changes in Fair Value Recorded in Other Comprehensive Income

Commercial paper		Level 2	$	4,687	$	1	$	0		$	4,688	$	1,618	$	3,070	$	0
Certificates of deposit		Level 2		2,898		0		0			2,898		1,646		1,252		0
U.S. government securities		Level 1		92,067		6,495		(1	)		98,561		3,168		95,393		0
U.S. agency securities		Level 2		2,439		2		0			2,441		449		1,992		0
Foreign government bonds		Level 2		6,982		6		(3	)		6,985		1		6,984		0
Mortgage- and asset-backed securities		Level 2		4,865		41		(6	)		4,900		0		4,900		0
Corporate notes and bonds		Level 2		8,500		327		(17	)		8,810		0		8,810		0
Corporate notes and bonds		Level 3		58		0		0			58		0		58		0
Municipal securities		Level 2		313		57		(4	)		366		0		366		0
Municipal securities		Level 3		91		0		0			91		0		91		0


Total debt investments			$	122,900	$	6,929	$	(31	)	$	129,798	$	6,882	$	122,916	$	0


Changes in Fair Value Recorded in Net Income

Equity investments		Level 1								$	1,198	$	784	$	0	$	414
Equity investments		Other									2,551		0		0		2,551


Total equity investments										$	3,749	$	784	$	0	$	2,965


Cash										$	5,910	$	5,910	$	0	$	0
Derivatives, net^(a)											35		0		35		0


Total										$	139,492	$	13,576	$	122,951	$	2,965

(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, 2021 and 2020, equity investments without readily determinable fair values measured at cost with adjustments for observable changes in price or impairments were $3.3 billion and $1.4 billion, respectively.

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, 2021

U.S. government and agency securities	$	5,294	$	(111	)	$	0	$	0		$	5,294	$	(111	)
Foreign government bonds		3,148		(1	)		5		(1	)		3,153		(2	)
Mortgage- and asset-backed securities		1,211		(5	)		87		(1	)		1,298		(6	)
Corporate notes and bonds		1,678		(8	)		34		(1	)		1,712		(9	)
Municipal securities		58		(7	)		1		0			59		(7	)


Total	$	11,389	$	(132	)	$	127	$	(3	)	$	11,516	$	(135	)

	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, 2020

U.S. government and agency securities	$	2,323	$	(1	)	$	0	$	0	$	2,323	$	(1	)
Foreign government bonds		500		(3	)		0		0		500		(3	)
Mortgage- and asset-backed securities		1,014		(6	)		0		0		1,014		(6	)
Corporate notes and bonds		649		(17	)		0		0		649		(17	)
Municipal securities		66		(4	)		0		0		66		(4	)


Total	$	4,552	$	(31	)	$	0	$	0	$	4,552	$	(31	)

Unrealized losses from fixed-income securities are primarily attributable to changes in interest rates. Management does not believe any remaining unrealized losses represent impairments based on our evaluation of available evidence.

Debt Investment Maturities

(In millions)	Adjusted Cost Basis		Estimated Fair Value


June 30, 2021

Due in one year or less	$	22,612	$	22,676
Due after one year through five years		67,541		70,315
Due after five years through 10 years		25,212		26,327
Due after 10 years		2,601		2,690


Total	$	117,966	$	122,008

DERIVATIVES

12 Months Ended

Jun. 30, 2021

Derivative Instruments And Hedging Activities Disclosure [Abstract]

DERIVATIVES

NOTE 5 — DERIVATIVES

We use derivative instruments to manage risks related to foreign currencies, interest rates, equity prices, 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 Currencies

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.

Foreign currency risks related to certain non-U.S. dollar-denominated investments are hedged using foreign exchange forward contracts that are designated as fair value hedging instruments. Foreign currency risks related to certain Euro-denominated debt are hedged using foreign exchange forward contracts that are designated as cash flow hedging instruments.

In the past, option and forward contracts were used to hedge a portion of forecasted international revenue and were designated as cash flow hedging instruments. Principal currencies hedged included the Euro, Japanese yen, British pound, Canadian dollar, and Australian dollar.

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.

Interest Rate

Interest rate risks related to certain fixed-rate debt are hedged using interest rate swaps that are designated as fair value hedging instruments to effectively convert the fixed interest rates to floating interest rates.

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. These contracts are not designated as hedging instruments and are included in “Other contracts” in the tables below.

Equity

Securities held in our equity investments portfolio are subject to market price risk. At times, we may hold options, futures, and swap contracts. These contracts are not designated as hedging instruments and are included in “Other contracts” in the tables below.

Credit

Our fixed-income portfolio is diversified and consists primarily of investment-grade securities. We use credit default swap contracts to manage credit exposures relative to broad-based indices and to facilitate portfolio diversification. These contracts are not designated as hedging instruments and are included in “Other contracts” in the tables below.

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, 2021, 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, 2021		June 30, 2020


Designated as Hedging Instruments

Foreign exchange contracts purchased	$	635	$	635
Foreign exchange contracts sold		6,081		6,754
Interest rate contracts purchased		1,247		1,295

Not Designated as Hedging Instruments

Foreign exchange contracts purchased		14,223		11,896
Foreign exchange contracts sold		23,391		15,595
Other contracts purchased		2,456		1,844
Other contracts sold		763		757

Fair Values of Derivative Instruments

The following table presents our derivative instruments:

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


	June 30, 2021							June 30, 2020

Designated as Hedging Instruments

Foreign exchange contracts	$	76			$	(8	)		$	44			$	(54	)
Interest rate contracts		40				0				93				0

Not Designated as Hedging Instruments

Foreign exchange contracts		227				(291	)			245				(334	)
Other contracts		56				(36	)			18				(11	)


Gross amounts of derivatives		399				(335	)			400				(399	)
Gross amounts of derivatives offset in the balance sheet		(141	)			142				(154	)			158
Cash collateral received		0				(42	)			0				(154	)


Net amounts of derivatives	$	258			$	(235	)		$	246			$	(395	)


Reported as

Short-term investments	$	78			$	0			$	35			$	0
Other current assets		137				0				199				0
Other long-term assets		43				0				12				0
Other current liabilities		0				(182	)			0				(334	)
Other long-term liabilities		0				(53	)			0				(61	)


Total	$	258			$	(235	)		$	246			$	(395	)

Gross derivative assets and liabilities subject to legally enforceable master netting agreements for which we have elected to offset were $395 million and $335 million, respectively, as of June 30, 2021, and $399 million and $399 million, respectively, as of June 30, 2020.

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, 2021

Derivative assets	$	0	$	396		$	3	$	399
Derivative liabilities		0		(335	)		0		(335	)

June 30, 2020

Derivative assets		1		398			1		400
Derivative liabilities		0		(399	)		0		(399	)

Gains (losses) on derivative instruments recognized in our consolidated income statements were as follows:

(In millions)


Year Ended June 30,	2021					2020					2019

	Revenue		Other Income (Expense), Net				Revenue		Other Income (Expense), Net			Revenue			Other Income (Expense), Net


Designated as Fair Value Hedging Instruments

Foreign exchange contracts
Derivatives	$	0	$	193			$	0	$	1		$	0		$	(130	)
Hedged items		0		(188	)			0		3			0			130
Excluded from effectiveness assessment		0		30				0		139			0			168
Interest rate contracts
Derivatives		0		(37	)			0		93			0			0
Hedged items		0		53				0		(93	)		0			0

Designated as Cash Flow Hedging Instruments

Foreign exchange contracts
Amount reclassified from accumulated other comprehensive income		0		17				0		0			341			0
Excluded from effectiveness assessment		0		0				0		0			(64	)		0

Not Designated as Hedging Instruments

Foreign exchange contracts		0		27				0		(123	)		0			(97	)
Other contracts		0		9				0		50			0			38

Gains (losses), net of tax, on derivative instruments recognized in our consolidated comprehensive income statements were as follows:

(In millions)


Year Ended June 30,	2021		2020			2019

Designated as Cash Flow Hedging Instruments

Foreign exchange contracts
Included in effectiveness assessment	$	34	$	(38	)	$	159

INVENTORIES

12 Months Ended

Jun. 30, 2021

Inventory Disclosure [Abstract]

INVENTORIES

NOTE 6 — INVENTORIES

The components of inventories were as follows:

(In millions)


June 30,	2021		2020

Raw materials	$	1,190	$	700
Work in process		79		83
Finished goods		1,367		1,112


Total	$	2,636	$	1,895

PROPERTY AND EQUIPMENT

12 Months Ended

Jun. 30, 2021

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,	2021			2020

Land	$	3,660		$	1,823
Buildings and improvements		43,928			33,995
Leasehold improvements		6,884			5,487
Computer equipment and software		51,250			41,261
Furniture and equipment		5,344			4,782


Total, at cost		111,066			87,348
Accumulated depreciation		(51,351	)		(43,197	)


Total, net	$	59,715		$	44,151

During fiscal years 2021, 2020, and 2019, depreciation expense was $9.3 billion, $10.7 billion, and $9.7 billion, respectively. Depreciation expense declined in fiscal year 2021 due to the change in estimated useful lives of our server and network equipment. We have committed $9.5 billion for the construction of new buildings, building improvements, and leasehold improvements as of June 30, 2021.

During fiscal year 2020, we recorded an impairment charge of $186 million to Property and Equipment, primarily to leasehold improvements, due to the closing of our Microsoft Store physical locations.

BUSINESS COMBINATIONS

12 Months Ended

Jun. 30, 2021

Business Combinations [Abstract]

BUSINESS COMBINATIONS

NOTE 8 — BUSINESS COMBINATIONS

ZeniMax Media Inc.

On March 9, 2021, we completed our acquisition of ZeniMax Media Inc. (“ZeniMax”), the parent company of Bethesda Softworks LLC (“Bethesda”), for a total purchase price of $8.1 billion, consisting primarily of cash. The purchase price included $768 million of cash and cash equivalents acquired. Bethesda is one of the largest, privately held game developers and publishers in the world, and brings a broad portfolio of games, technology, and talent to Xbox. The financial results of ZeniMax have been included in our consolidated financial statements since the date of the acquisition. ZeniMax is reported as part of our More Personal Computing segment.

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

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

(In millions)


Cash and cash equivalents	$	768
Goodwill		5,469
Intangible assets		1,968
Other assets		139
Other liabilities		(223	)


Total	$	8,121

Goodwill was assigned to our More Personal Computing segment. The goodwill was primarily attributed to increased synergies that are expected to be achieved from the integration of ZeniMax. None of the goodwill is expected to be deductible for income tax purposes.

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

(In millions)	Amount		Weighted Average Life


Technology-based	$	1,341		4 years
Marketing-related		627		11 years


Total	$	1,968		6 years

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.

Nuance Communications, Inc.

On April 11, 2021, we entered into a definitive agreement to acquire Nuance Communications, Inc. (“Nuance”) for $56.00 per share in an all-cash transaction valued at $19.7 billion, inclusive of Nuance’s net debt. Nuance is a cloud and artificial intelligence (“AI”) software provider with healthcare and enterprise AI experience, and the acquisition will build on our industry-specific cloud offerings. The acquisition has been approved by Nuance’s shareholders, and we expect it to close by the end of calendar year 2021, subject to the satisfaction of certain regulatory approvals and other customary closing conditions.

GOODWILL

12 Months Ended

Jun. 30, 2021

Goodwill And Intangible Assets Disclosure [Abstract]

GOODWILL

NOTE 9 — GOODWILL

Changes in the carrying amount of goodwill were as follows:

(In millions)		June 30, 2019		Acquisitions		Other			June 30, 2020		Acquisitions			Other			June 30, 2021


Productivity and Business Processes	$	24,277	$	7	$	(94	)	$	24,190	$	0		$	127		$	24,317
Intelligent Cloud		11,351		1,351		(5	)		12,697		505			54			13,256
More Personal Computing		6,398		96		(30	)		6,464		5,556	^(a)		118	^(a⁾		12,138


Total	$	42,026	$	1,454	$	(129	)	$	43,351	$	6,061		$	299		$	49,711

(a)	Includes goodwill of $5.5 billion related to ZeniMax. 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, 2021, May 1, 2020, or May 1, 2019 tests. As of June 30, 2021 and 2020, accumulated goodwill impairment was $11.3 billion.

INTANGIBLE ASSETS

12 Months Ended

Jun. 30, 2021

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,							2021							2020

Technology-based	$	9,779		$	(7,007	)	$	2,772	$	8,160	$	(6,381	)	$	1,779
Customer-related		4,958			(2,859	)		2,099		4,967		(2,320	)		2,647
Marketing-related		4,792			(1,878	)		2,914		4,158		(1,588	)		2,570
Contract-based		446			(431	)		15		474		(432	)		42


Total	$	19,975	^(a)	$	(12,175	)	$	7,800	$	17,759	$	(10,721	)	$	7,038

(a)	Includes intangible assets of $2.0 billion related to ZeniMax. See Note 8 – Business Combinations for further information.

No material impairments of intangible assets were identified during fiscal years 2021, 2020, or 2019. 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,	2021				2020

Technology-based	$	1,628		4 years	$	531		6 years
Customer-related		96		4 years		303		5 years
Marketing-related		625		6 years		2		2 years
Contract-based		10		3 years		0		0 years


Total	$	2,359		5 years	$	836		5 years

Intangible assets amortization expense was $1.6 billion, $1.6 billion, and $1.9 billion for fiscal years 2021, 2020, and 2019, respectively.

The following table outlines the estimated future amortization expense related to intangible assets held as of June 30, 2021:

(In millions)


Year Ending June 30,

2022	$	1,683
2023		1,722
2024		1,415
2025		755
2026		498
Thereafter		1,727


Total	$	7,800

DEBT

12 Months Ended

Jun. 30, 2021

Debt Disclosure [Abstract]

DEBT

NOTE 11 — DEBT

The components of debt were as follows:

(In millions, issuance by calendar year)	Maturities (calendar year)				Stated Interest Rate				Effective Interest Rate			June 30, 2021				June 30, 2020


2009 issuance of $3.8 billion ^(a)				2039				5.20%			5.24%		$	520		$	559
2010 issuance of $4.8 billion ^(a)				2040				4.50%			4.57%			486			1,571
2011 issuance of $2.3 billion ^(a)				2041				5.30%			5.36%			718			1,270
2012 issuance of $2.3 billion ^(a)		2022	–	2042		2.13%	–	3.50%	2.24%	–	3.57%			1,204			1,650
2013 issuance of $5.2 billion ^(a)		2023	–	2043		2.38%	–	4.88%	2.47%	–	4.92%			2,814			2,919
2013 issuance of €4.1 billion		2021	–	2033		2.13%	–	3.13%	2.23%	–	3.22%			4,803			4,549
2015 issuance of $23.8 billion ^(a)		2022	–	2055		2.38%	–	4.75%	2.47%	–	4.78%			12,305			15,549
2016 issuance of $19.8 billion ^(a)		2021	–	2056		1.55%	–	3.95%	1.64%	–	4.03%			12,180			16,955
2017 issuance of $17.0 billion ^(a)		2022	–	2057		2.40%	–	4.50%	2.52%	–	4.53%			10,695			12,385
2020 issuance of $10.0 billion ^(a)		2050	–	2060		2.53%	–	2.68%	2.53%	–	2.68%			10,000			10,000
2021 issuance of $8.2 billion ^(a)		2052	–	2062		2.92%	–	3.04%	2.92%	–	3.04%			8,185			0


Total face value														63,910			67,407
Unamortized discount and issuance costs														(511	)		(554	)
Hedge fair value adjustments ⁽^b⁾														40			93
Premium on debt exchange ^(a)														(5,293	)		(3,619	)


Total debt														58,146			63,327
Current portion of long-term debt														(8,072	)		(3,749	)


Long-term debt													$	50,074		$	59,578

(a)	In March 2021 and June 2020, we exchanged a portion of our existing debt at a premium for cash and new debt with longer maturities. The premiums are amortized over the terms of the new debt.

(b)	Refer to Note 5 – Derivatives for further information on the interest rate swaps related to fixed-rate debt.

As of June 30, 2021 and 2020, the estimated fair value of long-term debt, including the current portion, was $70.0 billion and $77.1 billion, respectively. The estimated fair values are based on Level 2 inputs.

Debt in the table above is comprised of senior unsecured obligations and ranks equally with our other outstanding obligations. Interest is paid semi-annually, except for the Euro-denominated debt, which is paid annually. Cash paid for interest on our debt for fiscal years 2021, 2020, and 2019 was $2.0 billion, $2.4 billion, and $2.4 billion, respectively.

The following table outlines maturities of our long-term debt, including the current portion, as of June 30, 2021:

(In millions)


Year Ending June 30,

2022	$	8,075
2023		2,750
2024		5,250
2025		2,250
2026		3,000
Thereafter		42,585


Total	$	63,910

INCOME TAXES

12 Months Ended

Jun. 30, 2021

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. We recorded a provisional net charge of $13.7 billion related to the enactment of the TCJA in fiscal year 2018 and adjusted the provisional net charge by recording additional tax expense of $157 million in fiscal year 2019 pursuant to Securities and Exchange Commission Staff Accounting Bulletin No. 118.

In 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. global intangible low-taxed income (“GILTI”) tax.

Provision for Income Taxes

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

(In millions)


Year Ended June 30,	2021			2020			2019

Current Taxes

U.S. federal	$	3,285		$	3,537		$	4,718
U.S. state and local		1,229			763			662
Foreign		5,467			4,444			5,531


Current taxes	$	9,981		$	8,744		$	10,911

Deferred Taxes

U.S. federal	$	25		$	58		$	(5,647	)
U.S. state and local		(204	)		(6	)		(1,010	)
Foreign		29			(41	)		194


Deferred taxes	$	(150	)	$	11		$	(6,463	)


Provision for income taxes	$	9,831		$	8,755		$	4,448

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

(In millions)


Year Ended June 30,	2021		2020		2019

U.S.	$	34,972	$	24,116	$	15,799
Foreign		36,130		28,920		27,889


Income before income taxes	$	71,102	$	53,036	$	43,688

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,	2021		2020		2019

Federal statutory rate		21.0%		21.0%		21.0%
Effect of:
Foreign earnings taxed at lower rates		(2.7)%		(3.7)%		(4.1)%
Impact of the enactment of the TCJA		0%		0%		0.4%
Impact of intangible property transfers		0%		0%		(5.9)%
Foreign-derived intangible income deduction		(1.3)%		(1.1)%		(1.4)%
State income taxes, net of federal benefit		1.4%		1.3%		0.7%
Research and development credit		(0.9)%		(1.1)%		(1.1)%
Excess tax benefits relating to stock-based compensation		(2.4)%		(2.2)%		(2.2)%
Interest, net		0.5%		1.0%		1.0%
Other reconciling items, net		(1.8)%		1.3%		1.8%


Effective rate		13.8%		16.5%		10.2%

We have historically paid India withholding taxes on software sales through distributor withholding and tax audit assessments in India. In March 2021, the India Supreme Court ruled favorably in the case of Engineering Analysis Centre of Excellence Private Limited vs The Commissioner of Income Tax for companies in 86 separate appeals, some dating back to 2012, holding that software sales are not subject to India withholding taxes. Although we were not a party to the appeals, our software sales in India were determined to be not subject to withholding taxes. Therefore, we recorded a net income tax benefit of $620 million in the third quarter of fiscal year 2021 to reflect the results of the India Supreme Court decision impacting fiscal year 1996 through fiscal year 2016.

The decrease from the federal statutory rate in fiscal year 2021 is primarily due to earnings taxed at lower rates in foreign jurisdictions resulting from producing and distributing our products and services through our foreign regional operations centers in Ireland and Puerto Rico, tax benefits relating to stock-based compensation, and tax benefits from the India Supreme Court decision on withholding taxes. The decrease from the federal statutory rate in fiscal year 2020 is primarily due to earnings taxed at lower rates in foreign jurisdictions resulting from producing and distributing our products and services through our foreign regional operations centers in Ireland and Puerto Rico, and tax benefits relating to stock-based compensation. 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. In fiscal year 2021 and 2020, our foreign regional operating centers in Ireland and Puerto Rico, which are taxed at rates lower than the U.S. rate, generated 82% and 86% of our foreign income before tax. In fiscal years 2019, our foreign regional operating centers in Ireland, Singapore, and Puerto Rico, which are taxed at rates lower than the U.S. rate, generated 82% of our foreign income before tax, respectively. Other reconciling items, net consists primarily of tax credits and GILTI tax, and in fiscal year 2021, includes tax benefits from the India Supreme Court decision on withholding taxes. In fiscal years 2021, 2020, and 2019, there were no individually significant other reconciling items.

The decrease in our effective tax rate for fiscal year 2021 compared to fiscal year 2020 was primarily due to tax benefits from the India Supreme Court decision on withholding taxes, an agreement between the U.S. and India tax authorities related to transfer pricing, final TCJA regulations, and an increase in tax benefits relating to stock-based compensation. The increase in our effective tax rate for fiscal year 2020 compared to fiscal year 2019 was primarily due to a $2.6 billion net income tax benefit in the fourth quarter of fiscal year 2019 related to intangible property transfers.

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

(In millions)


June 30,	2021			2020

Deferred Income Tax Assets

Stock-based compensation expense	$	502		$	461
Accruals, reserves, and other expenses		2,960			2,721
Loss and credit carryforwards		1,090			865
Amortization		6,346			6,737
Leasing liabilities		4,060			3,025
Unearned revenue		2,659			1,553
Other		543			354


Deferred income tax assets		18,160			15,716
Less valuation allowance		(769	)		(755	)


Deferred income tax assets, net of valuation allowance	$	17,391		$	14,961


Deferred Income Tax Liabilities

Book/tax basis differences in investments and debt	$	(2,605	)	$	(2,642	)
Leasing assets		(3,834	)		(2,817	)
Depreciation		(1,010	)		(376	)
Deferred GILTI tax liabilities		(2,815	)		(2,581	)
Other		(144	)		(344	)


Deferred income tax liabilities	$	(10,408	)	$	(8,760	)


Net deferred income tax assets	$	6,983		$	6,201


Reported As

Other long-term assets	$	7,181		$	6,405
Long-term deferred income tax liabilities		(198	)		(204	)


Net deferred income tax assets	$	6,983		$	6,201

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, 2021, we had federal, state, and foreign net operating loss carryforwards of $304 million, $1.3 billion, and $2.0 billion, respectively. The federal and state net operating loss carryforwards will expire in various years from fiscal 2022 through 2041, 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. In fiscal year 2020, we removed $2.0 billion of foreign net operating losses and corresponding valuation allowances as a result of the liquidation of a foreign subsidiary. There was no impact to our consolidated financial statements.

Income taxes paid, net of refunds, were $13.4 billion, $12.5 billion, and $8.4 billion in fiscal years 2021, 2020, and 2019, respectively.

Uncertain Tax Positions

Gross unrecognized tax benefits related to uncertain tax positions as of June 30, 2021, 2020, and 2019, were $14.6 billion, $13.8 billion, and $13.1 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 2021, 2020, and 2019 by $12.5 billion, $12.1 billion, and $12.0 billion, respectively.

As of June 30, 2021, 2020, and 2019, we had accrued interest expense related to uncertain tax positions of $4.3 billion, $4.0 billion, and $3.4 billion, respectively, net of income tax benefits. The provision for income taxes for fiscal years 2021, 2020, and 2019 included interest expense related to uncertain tax positions of $274 million, $579 million, and $515 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,	2021			2020			2019

Beginning unrecognized tax benefits	$	13,792		$	13,146		$	11,961
Decreases related to settlements		(195	)		(31	)		(316	)
Increases for tax positions related to the current year		790			647			2,106
Increases for tax positions related to prior years		461			366			508
Decreases for tax positions related to prior years		(297	)		(331	)		(1,113	)
Decreases due to lapsed statutes of limitations		(1	)		(5	)		0


Ending unrecognized tax benefits	$	14,550		$	13,792		$	13,146

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. In the second quarter of fiscal year 2021, we settled an additional portion of the IRS audits for tax years 2004 to 2013 and made a payment of $1.7 billion, including tax and interest. We remain under audit for tax years 2004 to 2017.

As of June 30, 2021, the primary unresolved issues for the IRS audits relate to transfer pricing, which could have a material impact in 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 key transfer pricing 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 2020, 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.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

UNEARNED REVENUE

12 Months Ended

Jun. 30, 2021

Revenue From Contract With Customer [Abstract]

UNEARNED REVENUE

NOTE 13 — UNEARNED REVENUE

Unearned revenue by segment was as follows:

(In millions)


June 30,	2021		2020

Productivity and Business Processes	$	22,120	$	18,643
Intelligent Cloud		17,710		16,620
More Personal Computing		4,311		3,917


Total	$	44,141	$	39,180

Changes in unearned revenue were as follows:

(In millions)


Year Ended June 30, 2021

Balance, beginning of period	$	39,180
Deferral of revenue		94,565
Recognition of unearned revenue		(89,604	)


Balance, end of period	$	44,141

Revenue allocated to remaining performance obligations, which includes unearned revenue and amounts that will be invoiced and recognized as revenue in future periods, was $146 billion as of June 30, 2021, of which $141 billion is related to the commercial portion of revenue. We expect to recognize approximately 50% of this revenue over the next 12 months and the remainder thereafter.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

+ Details

LEASES

12 Months Ended

Jun. 30, 2021

Leases [Abstract]

LEASES

NOTE 14 — LEASES

We have operating and finance leases for datacenters, corporate offices, research and development facilities, Microsoft Experience Centers, and certain equipment. Our leases have remaining lease terms of 1 year to 15 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,	2021			2020		2019

Operating lease cost	$	2,127	$	2,043	$	1,707


Finance lease cost:
Amortization of right-of-use assets	$	921	$	611	$	370
Interest on lease liabilities		386		336		247


Total finance lease cost	$	1,307	$	947	$	617

Supplemental cash flow information related to leases was as follows:

(In millions)


Year Ended June 30,	2021			2020		2019

Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	2,052	$	1,829	$	1,670
Operating cash flows from finance leases		386		336		247
Financing cash flows from finance leases		648		409		221

Right-of-use assets obtained in exchange for lease obligations:
Operating leases		4,380		3,677		2,303
Finance leases		3,290		3,467		2,532

Supplemental balance sheet information related to leases was as follows:

(In millions, except lease term and discount rate)


June 30,	2021			2020

Operating Leases

Operating lease right-of-use assets	$	11,088		$	8,753


Other current liabilities	$	1,962		$	1,616
Operating lease liabilities		9,629			7,671


Total operating lease liabilities	$	11,591		$	9,287


Finance Leases

Property and equipment, at cost	$	14,107		$	10,371
Accumulated depreciation		(2,306	)		(1,385	)


Property and equipment, net	$	11,801		$	8,986


Other current liabilities	$	791		$	540
Other long-term liabilities		11,750			8,956


Total finance lease liabilities	$	12,541		$	9,496


Weighted Average Remaining Lease Term

Operating leases		8 years			8 years
Finance leases		12 years			13 years

Weighted Average Discount Rate

Operating leases		2.2%			2.7%
Finance leases		3.4%			3.9%

The following table outlines maturities of our lease liabilities as of June 30, 2021:

(In millions)


Year Ending June 30,	Operating Leases			Finance Leases

2022	$	2,125		$	1,179
2023		1,954			1,198
2024		1,751			1,211
2025		1,463			1,537
2026		1,133			1,220
Thereafter		4,111			8,856


Total lease payments		12,537			15,201
Less imputed interest		(946	)		(2,660	)


Total	$	11,591		$	12,541

As of June 30, 2021, we have additional operating and finance leases, primarily for datacenters, that have not yet commenced of $5.4 billion and $7.3 billion, respectively. These operating and finance leases will commence between fiscal year 2022 and fiscal year 2026 with lease terms of 1 year to 15 years.

During fiscal year 2020, we recorded an impairment charge of $161 million to operating lease right-of-use assets due to the closing of our Microsoft Store physical locations.

CONTINGENCIES

12 Months Ended

Jun. 30, 2021

Commitments And Contingencies Disclosure [Abstract]

CONTINGENCIES

NOTE 15 — CONTINGENCIES

Patent and Intellectual Property Claims

There were 63 patent infringement cases pending against Microsoft as of June 30, 2021, 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 and form of notice have been approved by the courts in British Columbia, Ontario, and Quebec. The ten-month claims period commenced on November 23, 2020 and will close on September 23, 2021.

Other Antitrust Litigation and Claims

China State Administration for Market Regulation 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. In 2019, the SAMR presented preliminary views as to certain possible violations of China’s Anti-Monopoly Law.

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 46 lawsuits, including 45 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 on general causation is scheduled for January and February of 2022.

Other Contingencies

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

As of June 30, 2021, we accrued aggregate legal liabilities of $339 million. While we intend to defend these matters vigorously, adverse outcomes that we estimate could reach approximately $500 million in aggregate beyond recorded amounts are reasonably possible. Were unfavorable final outcomes to occur, there exists the possibility of a material adverse impact in our consolidated financial statements for the period in which the effects become reasonably estimable.

STOCKHOLDERS' EQUITY

12 Months Ended

Jun. 30, 2021

Equity [Abstract]

STOCKHOLDERS' EQUITY

NOTE 16 — STOCKHOLDERS’ EQUITY

Shares Outstanding

Shares of common stock outstanding were as follows:

(In millions)


Year Ended June 30,	2021			2020			2019

Balance, beginning of year		7,571			7,643			7,677
Issued		49			54			116
Repurchased		(101	)		(126	)		(150	)


Balance, end of year		7,519			7,571			7,643

Share Repurchases

On September 20, 2016, our Board of Directors approved a share repurchase program authorizing up to $40.0 billion in share repurchases. This share repurchase program commenced in December 2016 and was completed in February 2020.

On September 18, 2019, our Board of Directors approved a share repurchase program authorizing up to $40.0 billion in share repurchases. This share repurchase program commenced in February 2020, following completion of the program approved on September 20, 2016, has no expiration date, and may be terminated at any time. As of June 30, 2021, $8.7 billion remained of this $40.0 billion share repurchase program.

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

(In millions)	Shares		Amount		Shares		Amount		Shares		Amount


Year Ended June 30,	2021				2020				2019

First Quarter		25	$	5,270		29	$	4,000		24	$	2,600
Second Quarter		27		5,750		32		4,600		57		6,100
Third Quarter		25		5,750		37		6,000		36		3,899
Fourth Quarter		24		6,200		28		5,088		33		4,200


Total		101	$	22,970		126	$	19,688		150	$	16,799

Shares repurchased during fiscal year 2021 and the fourth quarter of fiscal year 2020 were under the share repurchase program approved on September 18, 2019. Shares repurchased during the third quarter of fiscal year 2020 were under the share repurchase programs approved on both September 20, 2016 and September 18, 2019. All other shares repurchased were under the share repurchase program approved on September 20, 2016. The above table excludes shares repurchased to settle employee tax withholding related to the vesting of stock awards of $4.4 billion, $3.3 billion, and $2.7 billion for fiscal years 2021, 2020, and 2019, 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 2021								(In millions)

September 15, 2020		November 19, 2020		December 10, 2020		$	0.56	$	4,230
December 2, 2020		February 18, 2021		March 11, 2021			0.56		4,221
March 16, 2021		May 20, 2021		June 10, 2021			0.56		4,214
June 16, 2021		August 19, 2021		September 9, 2021			0.56		4,211


Total						$	2.24	$	16,876


Fiscal Year 2020

September 18, 2019		November 21, 2019		December 12, 2019		$	0.51	$	3,886
December 4, 2019		February 20, 2020		March 12, 2020			0.51		3,876
March 9, 2020		May 21, 2020		June 11, 2020			0.51		3,865
June 17, 2020		August 20, 2020		September 10, 2020			0.51		3,856


Total						$	2.04	$	15,483

The dividend declared on June 16, 2021 was included in other current liabilities as of June 30, 2021.

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

12 Months Ended

Jun. 30, 2021

Equity [Abstract]

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

NOTE 17 — 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,	2021			2020			2019

Derivatives

Balance, beginning of period	$	(38	)	$	0		$	173
Unrealized gains (losses), net of tax of $9, $(10), and $2		34			(38	)		160
Reclassification adjustments for gains included in earnings		(17	)		0			(341	)
Tax expense included in provision for income taxes		2			0			8


Amounts reclassified from accumulated other comprehensive income (loss)		(15	)		0			(333	)


Net change related to derivatives, net of tax of $7, $(10), and $(6)		19			(38	)		(173	)


Balance, end of period	$	(19	)	$	(38	)	$	0


Investments

Balance, beginning of period	$	5,478		$	1,488		$	(850	)
Unrealized gains (losses), net of tax of $(589), $1,057, and $616		(2,216	)		3,987			2,331
Reclassification adjustments for (gains) losses included in other income (expense), net		(63	)		4			93
Tax expense (benefit) included in provision for income taxes		13			(1	)		(19	)


Amounts reclassified from accumulated other comprehensive income (loss)		(50	)		3			74


Net change related to investments, net of tax of $(602), $1,058, and $635		(2,266	)		3,990			2,405
Cumulative effect of accounting changes		10			0			(67	)


Balance, end of period	$	3,222		$	5,478		$	1,488


Translation Adjustments and Other

Balance, beginning of period	$	(2,254	)	$	(1,828	)	$	(1,510	)
Translation adjustments and other, net of tax effects of $(9), $1, and $(1)		873			(426	)		(318	)


Balance, end of period	$	(1,381	)	$	(2,254	)	$	(1,828	)


Accumulated other comprehensive income (loss), end of period	$	1,822		$	3,186		$	(340	)

EMPLOYEE STOCK AND SAVINGS PLANS

12 Months Ended

Jun. 30, 2021

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

EMPLOYEE STOCK AND SAVINGS PLANS

NOTE 18 — EMPLOYEE STOCK AND SAVINGS PLANS

We grant stock-based compensation to employees and directors. As of June 30, 2021, an aggregate of 251 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,	2021		2020		2019

Stock-based compensation expense	$	6,118	$	5,289	$	4,652
Income tax benefits related to stock-based compensation		1,065		938		816

Stock Plans

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

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 service period of four years. PSUs generally vest over a performance period of three years. 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,				2021				2020				2019



Dividends per share (quarterly amounts)	$	0.51	–	0.56	$	0.46	–	0.51	$	0.42	–	0.46
Interest rates		0.01%	–	1.5%		0.1%	–	2.2%		1.8%	–	3.1%

During fiscal year 2021, the following activity occurred under our stock plans:

Shares			Weighted Average Grant-Date Fair Value


(In millions)

Stock Awards

Nonvested balance, beginning of year	126		$	105.23
Granted ^(a)	40			221.13
Vested	(58	)		99.41
Forfeited	(8	)		129.92


Nonvested balance, end of year	100		$	152.51

(a)	Includes 2 million of PSUs granted at target and performance adjustments above target levels for fiscal years 2021, 2020, and 2019.

As of June 30, 2021, there was approximately $12.0 billion of total unrecognized compensation costs related to stock awards. These costs are expected to be recognized over a weighted average period of three years. The weighted average grant-date fair value of stock awards granted was $221.13, $140.49, and $107.02 for fiscal years 2021, 2020, and 2019, respectively. The fair value of stock awards vested was $13.4 billion, $10.1 billion, and $8.7 billion, for fiscal years 2021, 2020, and 2019, 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. Under the terms of the ESPP that were approved in 2012, the plan will terminate on December 31, 2022. We intend to request shareholder approval for a successor ESPP with a January 1, 2022 effective date and ten-year expiration of December 31, 2031 at our 2021 Annual Shareholders Meeting. No additional shares will be requested at this meeting. Employees purchased the following shares during the periods presented:

(Shares in millions)


Year Ended June 30,	2021		2020		2019

Shares purchased		8		9		11
Average price per share	$	207.88	$	142.22	$	104.85

As of June 30, 2021, 88 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 $1.2 billion, $1.0 billion, and $877 million in fiscal years 2021, 2020, and 2019, respectively, and were expensed as contributed.

SEGMENT INFORMATION AND GEOGRAPHIC DATA

12 Months Ended

Jun. 30, 2021

Segment Reporting [Abstract]

SEGMENT INFORMATION AND GEOGRAPHIC DATA

NOTE 19 — 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 (Office 365 subscriptions, the Office 365 portion of Microsoft 365 Commercial subscriptions, and Office licensed on-premises), comprising Office, Exchange, SharePoint, Microsoft Teams, Office 365 Security and Compliance, and Skype for Business.

•

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

•

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

•

Dynamics business solutions, including Dynamics 365, comprising a set of intelligent, cloud-based applications across ERP, CRM, Customer Insights, Power Apps, and Power Automate; and on-premises ERP and CRM applications.

Intelligent Cloud

Our Intelligent Cloud segment consists of our public, private, and hybrid server products and cloud services that can power modern business and developers. This segment primarily comprises:

•

Server products and cloud services, including Azure; SQL Server, Windows Server, Visual Studio, System Center, and related Client Access Licenses (“CALs”); and GitHub.

•

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

More Personal Computing

Our More Personal Computing segment consists of products and services that put customers at the center of the experience with our technology. 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; and MSN advertising.

•

Devices, including Surface and PC accessories.

•

Gaming, including Xbox hardware and Xbox content and services, comprising digital transactions, Xbox Game Pass and other subscriptions, video games, third-party video game royalties, cloud services, and advertising.

•

Search advertising.

Revenue and costs are generally directly attributed to our segments. However, due to the integrated structure of our business, certain revenue recognized and costs incurred by one segment may benefit other segments. Revenue 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 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.

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

(In millions)


Year Ended June 30,		2021		2020		2019

Revenue

Productivity and Business Processes	$	53,915	$	46,398	$	41,160
Intelligent Cloud		60,080		48,366		38,985
More Personal Computing		54,093		48,251		45,698


Total	$	168,088	$	143,015	$	125,843


Operating Income

Productivity and Business Processes	$	24,351	$	18,724	$	16,219
Intelligent Cloud		26,126		18,324		13,920
More Personal Computing		19,439		15,911		12,820


Total	$	69,916	$	52,959	$	42,959

No sales to an individual customer or country other than the United States accounted for more than 10% of revenue for fiscal years 2021, 2020, or 2019. Revenue, classified by the major geographic areas in which our customers were located, was as follows:

(In millions)


Year Ended June 30,	2021		2020		2019

United States ^(a)	$	83,953	$	73,160	$	64,199
Other countries		84,135		69,855		61,644


Total	$	168,088	$	143,015	$	125,843

(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,	2021		2020		2019

Server products and cloud services	$	52,589	$	41,379	$	32,622
Office products and cloud services		39,872		35,316		31,769
Windows		23,227		22,294		20,395
Gaming		15,370		11,575		11,386
LinkedIn		10,289		8,077		6,754
Search advertising		8,528		7,740		7,628
Enterprise Services		6,943		6,409		6,124
Devices		6,791		6,457		6,095
Other		4,479		3,768		3,070


Total	$	168,088	$	143,015	$	125,843

Our commercial cloud revenue, which includes Azure, Office 365 Commercial, the commercial portion of LinkedIn, Dynamics 365, and other commercial cloud properties, was $69.1 billion, $51.7 billion and $38.1 billion in fiscal years 2021, 2020, and 2019, respectively. These amounts are primarily included in Server products and cloud services, Office 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,	2021		2020		2019

United States	$	76,153	$	60,789	$	55,252
Ireland		13,303		12,734		12,958
Other countries		38,858		29,770		25,422


Total	$	128,314	$	103,293	$	93,632

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
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-Topic 280
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+ Details

ACCOUNTING POLICIES (Policies)

12 Months Ended

Jun. 30, 2021

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

Revenue

Product Revenue and Service and Other Revenue

Revenue Recognition

Nature of Products and Services

Refer to Note 19 – Segment Information and Geographic Data for further information, including revenue by significant product and service offering.

Significant Judgments

Contract Balances and Other Receivables

Refer to Note 13 – Unearned Revenue for further information, including unearned revenue by segment and changes in unearned revenue during the period.

As of June 30, 2021 and 2020, other receivables due from suppliers were $965 million and $442 million, respectively, and are included in accounts receivable, net in our consolidated balance sheets.

Activity in the allowance for doubtful accounts was as follows:

(In millions)


Year Ended June 30,		2021			2020			2019

Balance, beginning of period	$	816		$	434		$	397
Charged to costs and other		234			560			153
Write-offs		(252	)		(178	)		(116	)


Balance, end of period	$	798		$	816		$	434

Allowance for doubtful accounts included in our consolidated balance sheets:

(In millions)


June 30,		2021		2020		2019

Accounts receivable, net of allowance for doubtful accounts	$	751	$	788	$	411
Other long-term assets		47		28		23


Total	$	798	$	816	$	434

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 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

Goodwill

Intangible Assets

Recent Accounting Guidance

Recently Adopted Accounting Guidance

Financial Instruments – Credit Losses

Recent Accounting Guidance Not Yet Adopted

Accounting for Income Taxes

Earnings Per Share

Segment Reporting

ACCOUNTING POLICIES (Tables)

12 Months Ended

Jun. 30, 2021

Accounting Policies [Abstract]

Allowance for Doubtful Accounts

Activity in the allowance for doubtful accounts was as follows:

(In millions)


Year Ended June 30,		2021			2020			2019

Balance, beginning of period	$	816		$	434		$	397
Charged to costs and other		234			560			153
Write-offs		(252	)		(178	)		(116	)


Balance, end of period	$	798		$	816		$	434

Allowance for doubtful accounts included in our consolidated balance sheets:

(In millions)


June 30,		2021		2020		2019

Accounts receivable, net of allowance for doubtful accounts	$	751	$	788	$	411
Other long-term assets		47		28		23


Total	$	798	$	816	$	434

EARNINGS PER SHARE (Tables)

12 Months Ended

Jun. 30, 2021

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,	2021		2020		2019

Net income available for common shareholders (A)	$	61,271	$	44,281	$	39,240
Weighted average outstanding shares of common stock (B)		7,547		7,610		7,673
Dilutive effect of stock-based awards		61		73		80


Common stock and common stock equivalents (C)		7,608		7,683		7,753


Earnings Per Share

Basic (A/B)	$	8.12	$	5.82	$	5.11
Diluted (A/C)	$	8.05	$	5.76	$	5.06

OTHER INCOME (EXPENSE), NET (Tables)

12 Months Ended

Jun. 30, 2021

Components of Other Income (Expense), Net

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

(In millions)


Year Ended June 30,	2021			2020			2019

Interest and dividends income	$	2,131		$	2,680		$	2,762
Interest expense		(2,346	)		(2,591	)		(2,686	)
Net recognized gains on investments		1,232			32			648
Net gains on derivatives		17			187			144
Net gains (losses) on foreign currency remeasurements		54			(191	)		(82	)
Other, net		98			(40	)		(57	)


Total	$	1,186		$	77		$	729

Debt Securities

Net Recognized Gains (Losses) on Investments

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

(In millions)


Year Ended June 30,	2021			2020			2019

Realized gains from sales of available-for-sale securities	$	105		$	50		$	12
Realized losses from sales of available-for-sale securities		(40	)		(37	)		(93	)
Impairments and allowance for credit losses		(2	)		(17	)		(16	)


Total	$	63		$	(4	)	$	(97	)

Equity Securities

Net Recognized Gains (Losses) on Investments

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

(In millions)


Year Ended June 30,	2021			2020			2019

Net realized gains on investments sold	$	123		$	83		$	276
Net unrealized gains on investments still held		1,057			69			479
Impairments of investments		(11	)		(116	)		(10	)


Total	$	1,169		$	36		$	745

INVESTMENTS (Tables)

12 Months Ended

Jun. 30, 2021

Investments Debt And Equity Securities [Abstract]

Investment Components

The components of investments were as follows:

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


June 30, 2021

Changes in Fair Value Recorded in Other Comprehensive Income

Commercial paper		Level 2	$	4,316	$	0	$	0		$	4,316	$	1,331	$	2,985	$	0
Certificates of deposit		Level 2		3,615		0		0			3,615		2,920		695		0
U.S. government securities		Level 1		90,664		3,832		(111	)		94,385		1,500		92,885		0
U.S. agency securities		Level 2		807		2		0			809		0		809		0
Foreign government bonds		Level 2		6,213		9		(2	)		6,220		225		5,995		0
Mortgage- and asset-backed securities		Level 2		3,442		22		(6	)		3,458		0		3,458		0
Corporate notes and bonds		Level 2		8,443		249		(9	)		8,683		0		8,683		0
Corporate notes and bonds		Level 3		63		0		0			63		0		63		0
Municipal securities		Level 2		308		63		0			371		0		371		0
Municipal securities		Level 3		95		0		(7	)		88		0		88		0


Total debt investments			$	117,966	$	4,177	$	(135	)	$	122,008	$	5,976	$	116,032	$	0


Changes in Fair Value Recorded in Net Income

Equity investments		Level 1								$	1,582	$	976	$	0	$	606
Equity investments		Other									5,378		0		0		5,378


Total equity investments										$	6,960	$	976	$	0	$	5,984


Cash										$	7,272	$	7,272	$	0	$	0
Derivatives, net^(a)											78		0		78		0


Total										$	136,318	$	14,224	$	116,110	$	5,984

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


June 30, 2020

Changes in Fair Value Recorded in Other Comprehensive Income

Commercial paper		Level 2	$	4,687	$	1	$	0		$	4,688	$	1,618	$	3,070	$	0
Certificates of deposit		Level 2		2,898		0		0			2,898		1,646		1,252		0
U.S. government securities		Level 1		92,067		6,495		(1	)		98,561		3,168		95,393		0
U.S. agency securities		Level 2		2,439		2		0			2,441		449		1,992		0
Foreign government bonds		Level 2		6,982		6		(3	)		6,985		1		6,984		0
Mortgage- and asset-backed securities		Level 2		4,865		41		(6	)		4,900		0		4,900		0
Corporate notes and bonds		Level 2		8,500		327		(17	)		8,810		0		8,810		0
Corporate notes and bonds		Level 3		58		0		0			58		0		58		0
Municipal securities		Level 2		313		57		(4	)		366		0		366		0
Municipal securities		Level 3		91		0		0			91		0		91		0


Total debt investments			$	122,900	$	6,929	$	(31	)	$	129,798	$	6,882	$	122,916	$	0


Changes in Fair Value Recorded in Net Income

Equity investments		Level 1								$	1,198	$	784	$	0	$	414
Equity investments		Other									2,551		0		0		2,551


Total equity investments										$	3,749	$	784	$	0	$	2,965


Cash										$	5,910	$	5,910	$	0	$	0
Derivatives, net^(a)											35		0		35		0


Total										$	139,492	$	13,576	$	122,951	$	2,965

(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, 2021

U.S. government and agency securities	$	5,294	$	(111	)	$	0	$	0		$	5,294	$	(111	)
Foreign government bonds		3,148		(1	)		5		(1	)		3,153		(2	)
Mortgage- and asset-backed securities		1,211		(5	)		87		(1	)		1,298		(6	)
Corporate notes and bonds		1,678		(8	)		34		(1	)		1,712		(9	)
Municipal securities		58		(7	)		1		0			59		(7	)


Total	$	11,389	$	(132	)	$	127	$	(3	)	$	11,516	$	(135	)

	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, 2020

U.S. government and agency securities	$	2,323	$	(1	)	$	0	$	0	$	2,323	$	(1	)
Foreign government bonds		500		(3	)		0		0		500		(3	)
Mortgage- and asset-backed securities		1,014		(6	)		0		0		1,014		(6	)
Corporate notes and bonds		649		(17	)		0		0		649		(17	)
Municipal securities		66		(4	)		0		0		66		(4	)


Total	$	4,552	$	(31	)	$	0	$	0	$	4,552	$	(31	)

Debt Investment Maturities

(In millions)	Adjusted Cost Basis		Estimated Fair Value


June 30, 2021

Due in one year or less	$	22,612	$	22,676
Due after one year through five years		67,541		70,315
Due after five years through 10 years		25,212		26,327
Due after 10 years		2,601		2,690


Total	$	117,966	$	122,008

DERIVATIVES (Tables)

12 Months Ended

Jun. 30, 2021

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, 2021		June 30, 2020


Designated as Hedging Instruments

Foreign exchange contracts purchased	$	635	$	635
Foreign exchange contracts sold		6,081		6,754
Interest rate contracts purchased		1,247		1,295

Not Designated as Hedging Instruments

Foreign exchange contracts purchased		14,223		11,896
Foreign exchange contracts sold		23,391		15,595
Other contracts purchased		2,456		1,844
Other contracts sold		763		757

Fair Values of Derivative Instruments

The following table presents our derivative instruments:

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


	June 30, 2021							June 30, 2020

Designated as Hedging Instruments

Foreign exchange contracts	$	76			$	(8	)		$	44			$	(54	)
Interest rate contracts		40				0				93				0

Not Designated as Hedging Instruments

Foreign exchange contracts		227				(291	)			245				(334	)
Other contracts		56				(36	)			18				(11	)


Gross amounts of derivatives		399				(335	)			400				(399	)
Gross amounts of derivatives offset in the balance sheet		(141	)			142				(154	)			158
Cash collateral received		0				(42	)			0				(154	)


Net amounts of derivatives	$	258			$	(235	)		$	246			$	(395	)


Reported as

Short-term investments	$	78			$	0			$	35			$	0
Other current assets		137				0				199				0
Other long-term assets		43				0				12				0
Other current liabilities		0				(182	)			0				(334	)
Other long-term liabilities		0				(53	)			0				(61	)


Total	$	258			$	(235	)		$	246			$	(395	)

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, 2021

Derivative assets	$	0	$	396		$	3	$	399
Derivative liabilities		0		(335	)		0		(335	)

June 30, 2020

Derivative assets		1		398			1		400
Derivative liabilities		0		(399	)		0		(399	)

Gains (Losses) on Derivative Instruments

Gains (losses) on derivative instruments recognized in our consolidated income statements were as follows:

(In millions)


Year Ended June 30,	2021					2020					2019

	Revenue		Other Income (Expense), Net				Revenue		Other Income (Expense), Net			Revenue			Other Income (Expense), Net


Designated as Fair Value Hedging Instruments

Foreign exchange contracts
Derivatives	$	0	$	193			$	0	$	1		$	0		$	(130	)
Hedged items		0		(188	)			0		3			0			130
Excluded from effectiveness assessment		0		30				0		139			0			168
Interest rate contracts
Derivatives		0		(37	)			0		93			0			0
Hedged items		0		53				0		(93	)		0			0

Designated as Cash Flow Hedging Instruments

Foreign exchange contracts
Amount reclassified from accumulated other comprehensive income		0		17				0		0			341			0
Excluded from effectiveness assessment		0		0				0		0			(64	)		0

Not Designated as Hedging Instruments

Foreign exchange contracts		0		27				0		(123	)		0			(97	)
Other contracts		0		9				0		50			0			38

Cash Flow Hedges | Other Comprehensive Income

Gains (Losses) on Derivative Instruments

Gains (losses), net of tax, on derivative instruments recognized in our consolidated comprehensive income statements were as follows:

(In millions)


Year Ended June 30,	2021		2020			2019

Designated as Cash Flow Hedging Instruments

Foreign exchange contracts
Included in effectiveness assessment	$	34	$	(38	)	$	159

INVENTORIES (Tables)

12 Months Ended

Jun. 30, 2021

Inventory Disclosure [Abstract]

Components of Inventories

The components of inventories were as follows:

(In millions)


June 30,	2021		2020

Raw materials	$	1,190	$	700
Work in process		79		83
Finished goods		1,367		1,112


Total	$	2,636	$	1,895

PROPERTY AND EQUIPMENT (Tables)

12 Months Ended

Jun. 30, 2021

Property Plant And Equipment [Abstract]

Components of Property and Equipment

The components of property and equipment were as follows:

(In millions)


June 30,	2021			2020

Land	$	3,660		$	1,823
Buildings and improvements		43,928			33,995
Leasehold improvements		6,884			5,487
Computer equipment and software		51,250			41,261
Furniture and equipment		5,344			4,782


Total, at cost		111,066			87,348
Accumulated depreciation		(51,351	)		(43,197	)


Total, net	$	59,715		$	44,151

BUSINESS COMBINATIONS (Tables)

12 Months Ended

Jun. 30, 2021

Acquired Intangible Assets

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

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


Year Ended June 30,	2021				2020

Technology-based	$	1,628		4 years	$	531		6 years
Customer-related		96		4 years		303		5 years
Marketing-related		625		6 years		2		2 years
Contract-based		10		3 years		0		0 years


Total	$	2,359		5 years	$	836		5 years

ZeniMax Media Inc.

Major Classes of Assets and Liabilities Allocated Purchase Price

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

(In millions)


Cash and cash equivalents	$	768
Goodwill		5,469
Intangible assets		1,968
Other assets		139
Other liabilities		(223	)


Total	$	8,121

Acquired Intangible Assets

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

(In millions)	Amount		Weighted Average Life


Technology-based	$	1,341		4 years
Marketing-related		627		11 years


Total	$	1,968		6 years

GitHub, Inc.

Major Classes of Assets and Liabilities Allocated Purchase Price

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

Acquired Intangible Assets

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

(In millions)	Amount		Weighted Average Life


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


Total	$	1,267		7 years

GOODWILL (Tables)

12 Months Ended

Jun. 30, 2021

Goodwill And Intangible Assets Disclosure [Abstract]

Carrying Amount of Goodwill

Changes in the carrying amount of goodwill were as follows:

(In millions)		June 30, 2019		Acquisitions		Other			June 30, 2020		Acquisitions			Other			June 30, 2021


Productivity and Business Processes	$	24,277	$	7	$	(94	)	$	24,190	$	0		$	127		$	24,317
Intelligent Cloud		11,351		1,351		(5	)		12,697		505			54			13,256
More Personal Computing		6,398		96		(30	)		6,464		5,556	^(a)		118	^(a⁾		12,138


Total	$	42,026	$	1,454	$	(129	)	$	43,351	$	6,061		$	299		$	49,711

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

INTANGIBLE ASSETS (Tables)

12 Months Ended

Jun. 30, 2021

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,							2021							2020

Technology-based	$	9,779		$	(7,007	)	$	2,772	$	8,160	$	(6,381	)	$	1,779
Customer-related		4,958			(2,859	)		2,099		4,967		(2,320	)		2,647
Marketing-related		4,792			(1,878	)		2,914		4,158		(1,588	)		2,570
Contract-based		446			(431	)		15		474		(432	)		42


Total	$	19,975	^(a)	$	(12,175	)	$	7,800	$	17,759	$	(10,721	)	$	7,038

(a)	Includes intangible assets of $2.0 billion related to ZeniMax. See Note 8 – Business Combinations for further information.

Acquired Intangible Assets

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

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


Year Ended June 30,	2021				2020

Technology-based	$	1,628		4 years	$	531		6 years
Customer-related		96		4 years		303		5 years
Marketing-related		625		6 years		2		2 years
Contract-based		10		3 years		0		0 years


Total	$	2,359		5 years	$	836		5 years

Estimated Future Amortization Expense Related to Intangible Assets

The following table outlines the estimated future amortization expense related to intangible assets held as of June 30, 2021:

(In millions)


Year Ending June 30,

2022	$	1,683
2023		1,722
2024		1,415
2025		755
2026		498
Thereafter		1,727


Total	$	7,800

DEBT (Tables)

12 Months Ended

Jun. 30, 2021

Debt Disclosure [Abstract]

Debt

The components of debt were as follows:

(In millions, issuance by calendar year)	Maturities (calendar year)				Stated Interest Rate				Effective Interest Rate			June 30, 2021				June 30, 2020


2009 issuance of $3.8 billion ^(a)				2039				5.20%			5.24%		$	520		$	559
2010 issuance of $4.8 billion ^(a)				2040				4.50%			4.57%			486			1,571
2011 issuance of $2.3 billion ^(a)				2041				5.30%			5.36%			718			1,270
2012 issuance of $2.3 billion ^(a)		2022	–	2042		2.13%	–	3.50%	2.24%	–	3.57%			1,204			1,650
2013 issuance of $5.2 billion ^(a)		2023	–	2043		2.38%	–	4.88%	2.47%	–	4.92%			2,814			2,919
2013 issuance of €4.1 billion		2021	–	2033		2.13%	–	3.13%	2.23%	–	3.22%			4,803			4,549
2015 issuance of $23.8 billion ^(a)		2022	–	2055		2.38%	–	4.75%	2.47%	–	4.78%			12,305			15,549
2016 issuance of $19.8 billion ^(a)		2021	–	2056		1.55%	–	3.95%	1.64%	–	4.03%			12,180			16,955
2017 issuance of $17.0 billion ^(a)		2022	–	2057		2.40%	–	4.50%	2.52%	–	4.53%			10,695			12,385
2020 issuance of $10.0 billion ^(a)		2050	–	2060		2.53%	–	2.68%	2.53%	–	2.68%			10,000			10,000
2021 issuance of $8.2 billion ^(a)		2052	–	2062		2.92%	–	3.04%	2.92%	–	3.04%			8,185			0


Total face value														63,910			67,407
Unamortized discount and issuance costs														(511	)		(554	)
Hedge fair value adjustments ⁽^b⁾														40			93
Premium on debt exchange ^(a)														(5,293	)		(3,619	)


Total debt														58,146			63,327
Current portion of long-term debt														(8,072	)		(3,749	)


Long-term debt													$	50,074		$	59,578

(a)	In March 2021 and June 2020, we exchanged a portion of our existing debt at a premium for cash and new debt with longer maturities. The premiums are amortized over the terms of the new debt.

(b)	Refer to Note 5 – Derivatives for further information on the interest rate swaps related to fixed-rate debt.

Maturities of Long-term Debt Including Current Portion

The following table outlines maturities of our long-term debt, including the current portion, as of June 30, 2021:

(In millions)


Year Ending June 30,

2022	$	8,075
2023		2,750
2024		5,250
2025		2,250
2026		3,000
Thereafter		42,585


Total	$	63,910

- Definition

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

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
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-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21475-112644

+ Details

INCOME TAXES (Tables)

12 Months Ended

Jun. 30, 2021

Income Tax Disclosure [Abstract]

Provision for Income Taxes

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

(In millions)


Year Ended June 30,	2021			2020			2019

Current Taxes

U.S. federal	$	3,285		$	3,537		$	4,718
U.S. state and local		1,229			763			662
Foreign		5,467			4,444			5,531


Current taxes	$	9,981		$	8,744		$	10,911

Deferred Taxes

U.S. federal	$	25		$	58		$	(5,647	)
U.S. state and local		(204	)		(6	)		(1,010	)
Foreign		29			(41	)		194


Deferred taxes	$	(150	)	$	11		$	(6,463	)


Provision for income taxes	$	9,831		$	8,755		$	4,448

Income (Loss) Before Income Taxes

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

(In millions)


Year Ended June 30,	2021		2020		2019

U.S.	$	34,972	$	24,116	$	15,799
Foreign		36,130		28,920		27,889


Income before income taxes	$	71,102	$	53,036	$	43,688

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,	2021		2020		2019

Federal statutory rate		21.0%		21.0%		21.0%
Effect of:
Foreign earnings taxed at lower rates		(2.7)%		(3.7)%		(4.1)%
Impact of the enactment of the TCJA		0%		0%		0.4%
Impact of intangible property transfers		0%		0%		(5.9)%
Foreign-derived intangible income deduction		(1.3)%		(1.1)%		(1.4)%
State income taxes, net of federal benefit		1.4%		1.3%		0.7%
Research and development credit		(0.9)%		(1.1)%		(1.1)%
Excess tax benefits relating to stock-based compensation		(2.4)%		(2.2)%		(2.2)%
Interest, net		0.5%		1.0%		1.0%
Other reconciling items, net		(1.8)%		1.3%		1.8%


Effective rate		13.8%		16.5%		10.2%

Deferred Income Tax Assets and Liabilities

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

(In millions)


June 30,	2021			2020

Deferred Income Tax Assets

Stock-based compensation expense	$	502		$	461
Accruals, reserves, and other expenses		2,960			2,721
Loss and credit carryforwards		1,090			865
Amortization		6,346			6,737
Leasing liabilities		4,060			3,025
Unearned revenue		2,659			1,553
Other		543			354


Deferred income tax assets		18,160			15,716
Less valuation allowance		(769	)		(755	)


Deferred income tax assets, net of valuation allowance	$	17,391		$	14,961


Deferred Income Tax Liabilities

Book/tax basis differences in investments and debt	$	(2,605	)	$	(2,642	)
Leasing assets		(3,834	)		(2,817	)
Depreciation		(1,010	)		(376	)
Deferred GILTI tax liabilities		(2,815	)		(2,581	)
Other		(144	)		(344	)


Deferred income tax liabilities	$	(10,408	)	$	(8,760	)


Net deferred income tax assets	$	6,983		$	6,201


Reported As

Other long-term assets	$	7,181		$	6,405
Long-term deferred income tax liabilities		(198	)		(204	)


Net deferred income tax assets	$	6,983		$	6,201

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,	2021			2020			2019

Beginning unrecognized tax benefits	$	13,792		$	13,146		$	11,961
Decreases related to settlements		(195	)		(31	)		(316	)
Increases for tax positions related to the current year		790			647			2,106
Increases for tax positions related to prior years		461			366			508
Decreases for tax positions related to prior years		(297	)		(331	)		(1,113	)
Decreases due to lapsed statutes of limitations		(1	)		(5	)		0


Ending unrecognized tax benefits	$	14,550		$	13,792		$	13,146

UNEARNED REVENUE (Tables)

12 Months Ended

Jun. 30, 2021

Revenue From Contract With Customer [Abstract]

Unearned Revenue by Segment

Unearned revenue by segment was as follows:

(In millions)


June 30,	2021		2020

Productivity and Business Processes	$	22,120	$	18,643
Intelligent Cloud		17,710		16,620
More Personal Computing		4,311		3,917


Total	$	44,141	$	39,180

Changes in Unearned Revenue

Changes in unearned revenue were as follows:

(In millions)


Year Ended June 30, 2021

Balance, beginning of period	$	39,180
Deferral of revenue		94,565
Recognition of unearned revenue		(89,604	)


Balance, end of period	$	44,141

LEASES (Tables)

12 Months Ended

Jun. 30, 2021

Leases [Abstract]

Components of Lease Expense

The components of lease expense were as follows:

(In millions)


Year Ended June 30,	2021			2020		2019

Operating lease cost	$	2,127	$	2,043	$	1,707


Finance lease cost:
Amortization of right-of-use assets	$	921	$	611	$	370
Interest on lease liabilities		386		336		247


Total finance lease cost	$	1,307	$	947	$	617

Supplemental Cash Flow Information Related to Leases

Supplemental cash flow information related to leases was as follows:

(In millions)


Year Ended June 30,	2021			2020		2019

Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	2,052	$	1,829	$	1,670
Operating cash flows from finance leases		386		336		247
Financing cash flows from finance leases		648		409		221

Right-of-use assets obtained in exchange for lease obligations:
Operating leases		4,380		3,677		2,303
Finance leases		3,290		3,467		2,532

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,	2021			2020

Operating Leases

Operating lease right-of-use assets	$	11,088		$	8,753


Other current liabilities	$	1,962		$	1,616
Operating lease liabilities		9,629			7,671


Total operating lease liabilities	$	11,591		$	9,287


Finance Leases

Property and equipment, at cost	$	14,107		$	10,371
Accumulated depreciation		(2,306	)		(1,385	)


Property and equipment, net	$	11,801		$	8,986


Other current liabilities	$	791		$	540
Other long-term liabilities		11,750			8,956


Total finance lease liabilities	$	12,541		$	9,496


Weighted Average Remaining Lease Term

Operating leases		8 years			8 years
Finance leases		12 years			13 years

Weighted Average Discount Rate

Operating leases		2.2%			2.7%
Finance leases		3.4%			3.9%

Maturities of Lease Liabilities

The following table outlines maturities of our lease liabilities as of June 30, 2021:

(In millions)


Year Ending June 30,	Operating Leases			Finance Leases

2022	$	2,125		$	1,179
2023		1,954			1,198
2024		1,751			1,211
2025		1,463			1,537
2026		1,133			1,220
Thereafter		4,111			8,856


Total lease payments		12,537			15,201
Less imputed interest		(946	)		(2,660	)


Total	$	11,591		$	12,541

STOCKHOLDERS' EQUITY (Tables)

12 Months Ended

Jun. 30, 2021

Equity [Abstract]

Shares of Common Stock Outstanding

Shares of common stock outstanding were as follows:

(In millions)


Year Ended June 30,	2021			2020			2019

Balance, beginning of year		7,571			7,643			7,677
Issued		49			54			116
Repurchased		(101	)		(126	)		(150	)


Balance, end of year		7,519			7,571			7,643

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,	2021				2020				2019

First Quarter		25	$	5,270		29	$	4,000		24	$	2,600
Second Quarter		27		5,750		32		4,600		57		6,100
Third Quarter		25		5,750		37		6,000		36		3,899
Fourth Quarter		24		6,200		28		5,088		33		4,200


Total		101	$	22,970		126	$	19,688		150	$	16,799

Dividends Declared

Our Board of Directors declared the following dividends:

Declaration Date	Record Date		Payment Date		Dividend Per Share			Amount


Fiscal Year 2021								(In millions)

September 15, 2020		November 19, 2020		December 10, 2020		$	0.56	$	4,230
December 2, 2020		February 18, 2021		March 11, 2021			0.56		4,221
March 16, 2021		May 20, 2021		June 10, 2021			0.56		4,214
June 16, 2021		August 19, 2021		September 9, 2021			0.56		4,211


Total						$	2.24	$	16,876


Fiscal Year 2020

September 18, 2019		November 21, 2019		December 12, 2019		$	0.51	$	3,886
December 4, 2019		February 20, 2020		March 12, 2020			0.51		3,876
March 9, 2020		May 21, 2020		June 11, 2020			0.51		3,865
June 17, 2020		August 20, 2020		September 10, 2020			0.51		3,856


Total						$	2.04	$	15,483

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)

12 Months Ended

Jun. 30, 2021

Equity [Abstract]

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,	2021			2020			2019

Derivatives

Balance, beginning of period	$	(38	)	$	0		$	173
Unrealized gains (losses), net of tax of $9, $(10), and $2		34			(38	)		160
Reclassification adjustments for gains included in earnings		(17	)		0			(341	)
Tax expense included in provision for income taxes		2			0			8


Amounts reclassified from accumulated other comprehensive income (loss)		(15	)		0			(333	)


Net change related to derivatives, net of tax of $7, $(10), and $(6)		19			(38	)		(173	)


Balance, end of period	$	(19	)	$	(38	)	$	0


Investments

Balance, beginning of period	$	5,478		$	1,488		$	(850	)
Unrealized gains (losses), net of tax of $(589), $1,057, and $616		(2,216	)		3,987			2,331
Reclassification adjustments for (gains) losses included in other income (expense), net		(63	)		4			93
Tax expense (benefit) included in provision for income taxes		13			(1	)		(19	)


Amounts reclassified from accumulated other comprehensive income (loss)		(50	)		3			74


Net change related to investments, net of tax of $(602), $1,058, and $635		(2,266	)		3,990			2,405
Cumulative effect of accounting changes		10			0			(67	)


Balance, end of period	$	3,222		$	5,478		$	1,488


Translation Adjustments and Other

Balance, beginning of period	$	(2,254	)	$	(1,828	)	$	(1,510	)
Translation adjustments and other, net of tax effects of $(9), $1, and $(1)		873			(426	)		(318	)


Balance, end of period	$	(1,381	)	$	(2,254	)	$	(1,828	)


Accumulated other comprehensive income (loss), end of period	$	1,822		$	3,186		$	(340	)

EMPLOYEE STOCK AND SAVINGS PLANS (Tables)

12 Months Ended

Jun. 30, 2021

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,	2021		2020		2019

Stock-based compensation expense	$	6,118	$	5,289	$	4,652
Income tax benefits related to stock-based compensation		1,065		938		816

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,				2021				2020				2019



Dividends per share (quarterly amounts)	$	0.51	–	0.56	$	0.46	–	0.51	$	0.42	–	0.46
Interest rates		0.01%	–	1.5%		0.1%	–	2.2%		1.8%	–	3.1%

Stock Plan Activity

During fiscal year 2021, the following activity occurred under our stock plans:

Shares			Weighted Average Grant-Date Fair Value


(In millions)

Stock Awards

Nonvested balance, beginning of year	126		$	105.23
Granted ^(a)	40			221.13
Vested	(58	)		99.41
Forfeited	(8	)		129.92


Nonvested balance, end of year	100		$	152.51

(a)	Includes 2 million of PSUs granted at target and performance adjustments above target levels for fiscal years 2021, 2020, and 2019.

Employee Purchased Shares

Employees purchased the following shares during the periods presented:

(Shares in millions)


Year Ended June 30,	2021		2020		2019

Shares purchased		8		9		11
Average price per share	$	207.88	$	142.22	$	104.85

SEGMENT INFORMATION AND GEOGRAPHIC DATA (Tables)

12 Months Ended

Jun. 30, 2021

Segment Reporting [Abstract]

Segment Revenue

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

(In millions)


Year Ended June 30,		2021		2020		2019

Revenue

Productivity and Business Processes	$	53,915	$	46,398	$	41,160
Intelligent Cloud		60,080		48,366		38,985
More Personal Computing		54,093		48,251		45,698


Total	$	168,088	$	143,015	$	125,843


Operating Income

Productivity and Business Processes	$	24,351	$	18,724	$	16,219
Intelligent Cloud		26,126		18,324		13,920
More Personal Computing		19,439		15,911		12,820


Total	$	69,916	$	52,959	$	42,959

Segment Operating Income (Loss)

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

(In millions)


Year Ended June 30,		2021		2020		2019

Revenue

Productivity and Business Processes	$	53,915	$	46,398	$	41,160
Intelligent Cloud		60,080		48,366		38,985
More Personal Computing		54,093		48,251		45,698


Total	$	168,088	$	143,015	$	125,843


Operating Income

Productivity and Business Processes	$	24,351	$	18,724	$	16,219
Intelligent Cloud		26,126		18,324		13,920
More Personal Computing		19,439		15,911		12,820


Total	$	69,916	$	52,959	$	42,959

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,	2021		2020		2019

United States ^(a)	$	83,953	$	73,160	$	64,199
Other countries		84,135		69,855		61,644


Total	$	168,088	$	143,015	$	125,843

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

Revenue Classified by Significant Product and Service Offerings

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

(In millions)


Year Ended June 30,	2021		2020		2019

Server products and cloud services	$	52,589	$	41,379	$	32,622
Office products and cloud services		39,872		35,316		31,769
Windows		23,227		22,294		20,395
Gaming		15,370		11,575		11,386
LinkedIn		10,289		8,077		6,754
Search advertising		8,528		7,740		7,628
Enterprise Services		6,943		6,409		6,124
Devices		6,791		6,457		6,095
Other		4,479		3,768		3,070


Total	$	168,088	$	143,015	$	125,843

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

(In millions)


June 30,	2021		2020		2019

United States	$	76,153	$	60,789	$	55,252
Ireland		13,303		12,734		12,958
Other countries		38,858		29,770		25,422


Total	$	128,314	$	103,293	$	93,632

Accounting Policies - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions		12 Months Ended
	Jul. 01, 2020	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2019
Significant Accounting Policies [Line Items]
Operating income		$ 69,916	$ 52,959	$ 42,959
Net income		$ 61,271	$ 44,281	$ 39,240
Income per basic share		$ 8.12	$ 5.82	$ 5.11
Income per diluted share		$ 8.05	$ 5.76	$ 5.06
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.
Financing receivables, net		$ 4,400	$ 5,200
Other receivables due from suppliers		965	442
Long-term accounts receivable, net of allowance for doubtful accounts		3,400	2,700
Advertising expense		$ 1,500	$ 1,600	$ 1,600
Lower Limit
Significant Accounting Policies [Line Items]
Estimated useful lives of intangible assets		1 year
Upper Limit
Significant Accounting Policies [Line Items]
Estimated useful lives of intangible assets		20 years
Service Life
Significant Accounting Policies [Line Items]
Operating income		$ 2,700
Net income		$ 2,300
Income per basic share		$ 0.30
Income per diluted share		$ 0.30
Server Equipment \| Service Life
Significant Accounting Policies [Line Items]
Estimated useful lives	4 years		3 years
Network Equipment \| Service Life
Significant Accounting Policies [Line Items]
Estimated useful lives	4 years		2 years
Software \| Lower Limit
Significant Accounting Policies [Line Items]
Estimated useful lives		3 years
Software \| Upper Limit
Significant Accounting Policies [Line Items]
Estimated useful lives		7 years
Computer Equipment \| Lower Limit
Significant Accounting Policies [Line Items]
Estimated useful lives		2 years
Computer Equipment \| Upper Limit
Significant Accounting Policies [Line Items]
Estimated useful lives		4 years
Buildings and Improvements \| Lower Limit
Significant Accounting Policies [Line Items]
Estimated useful lives		5 years
Buildings and Improvements \| Upper Limit
Significant Accounting Policies [Line Items]
Estimated useful lives		15 years
Leasehold Improvements \| Lower Limit
Significant Accounting Policies [Line Items]
Estimated useful lives		3 years
Leasehold Improvements \| Upper Limit
Significant Accounting Policies [Line Items]
Estimated useful lives		20 years
Furniture and Fixtures \| Lower Limit
Significant Accounting Policies [Line Items]
Estimated useful lives		1 year
Furniture and Fixtures \| Upper Limit
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, 2021	Jun. 30, 2020	Jun. 30, 2019
Valuation And Qualifying Accounts Disclosure [Line Items]
Balance, beginning of period	$ 816	$ 434	$ 397
Charged to costs and other	234	560	153
Write-offs	(252)	(178)	(116)
Balance, end of period	798	816	434
Accounts receivable, net of allowance for doubtful accounts
Valuation And Qualifying Accounts Disclosure [Line Items]
Balance, beginning of period	788	411
Balance, end of period	751	788	411
Other Long-term Assets
Valuation And Qualifying Accounts Disclosure [Line Items]
Balance, beginning of period	28	23
Balance, end of period	$ 47	$ 28	$ 23

Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	12 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2019
Earnings Per Share Basic And Diluted [Abstract]
Net income available for common shareholders (A)	$ 61,271	$ 44,281	$ 39,240
Weighted average outstanding shares of common stock (B)	7,547	7,610	7,673
Dilutive effect of stock-based awards	61	73	80
Common stock and common stock equivalents (C)	7,608	7,683	7,753
Earnings Per Share
Basic (A/B)	$ 8.12	$ 5.82	$ 5.11
Diluted (A/C)	$ 8.05	$ 5.76	$ 5.06

- Definition

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

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- Definition

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

- Definition

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, 2021	Jun. 30, 2020	Jun. 30, 2019
Other Income And Expenses [Abstract]
Interest and dividends income	$ 2,131	$ 2,680	$ 2,762
Interest expense	(2,346)	(2,591)	(2,686)
Net recognized gains on investments	1,232	32	648
Net gains on derivatives	17	187	144
Net gains (losses) on foreign currency remeasurements	54	(191)	(82)
Other, net	98	(40)	(57)
Total	$ 1,186	$ 77	$ 729

Net Recognized Gains (Losses) on Debt Investments (Detail) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2019
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	$ 105	$ 50	$ 12
Realized losses from sales of available-for-sale securities	(40)	(37)	(93)
Total	1,232	32	648
Debt Securities
Schedule Of Gain Loss On Investments Including Marketable Securities And Investments Held At Cost Income Statement Reported Amounts Summary [Line Items]
Impairments and allowance for credit losses	(2)	(17)	(16)
Total	$ 63	$ (4)	$ (97)

Net Recognized Gains (Losses) on Equity Investments (Detail) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2019
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	$ 123	$ 83	$ 276
Net unrealized gains on investments still held	1,057	69	479
Total	1,232	32	648
Equity Securities
Schedule Of Gain Loss On Investments Including Marketable Securities And Investments Held At Cost Income Statement Reported Amounts Summary [Line Items]
Impairments of investments	(11)	(116)	(10)
Total	$ 1,169	$ 36	$ 745

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

Jun. 30, 2021

Jun. 30, 2020

Cash, Cash Equivalents and Investments [Line Items]

Debt investments, Adjusted Cost Basis

$ 117,966

Debt investments, Recorded Basis

122,008

Derivative, net

258

$ 246

Cash and cash equivalents

14,224

13,576

Short-term Investments

116,110

122,951

Equity Investments

5,984

2,965

Cash, cash equivalents, and investments

136,318

139,492

Equity investments

Cash, Cash Equivalents and Investments [Line Items]

Equity investments, Recorded Basis

6,960

3,749

Cash and cash equivalents

976

784

Short-term Investments

Equity Investments

5,984

2,965

Equity investments | Other

Cash, Cash Equivalents and Investments [Line Items]

Equity investments, Recorded Basis

5,378

2,551

Cash and cash equivalents

Short-term Investments

Equity Investments

5,378

2,551

Equity investments | Level 1

Cash, Cash Equivalents and Investments [Line Items]

Equity investments, Recorded Basis

1,582

1,198

Cash and cash equivalents

976

784

Short-term Investments

Equity Investments

606

414

Cash

Cash, Cash Equivalents and Investments [Line Items]

Cash

7,272

5,910

Cash and cash equivalents

7,272

5,910

Short-term Investments

Equity Investments

Derivatives, net

Cash, Cash Equivalents and Investments [Line Items]

Derivative, net

^[1]

Cash and cash equivalents

^[1]

Short-term Investments

^[1]

Equity Investments

^[1]

Debt investments

Cash, Cash Equivalents and Investments [Line Items]

Debt investments, Adjusted Cost Basis

117,966

122,900

Debt investments, Unrealized Gains

4,177

6,929

Debt investments, Unrealized Losses

(135)

(31)

Debt investments, Recorded Basis

122,008

129,798

Cash and cash equivalents

5,976

6,882

Short-term Investments

116,032

122,916

Equity Investments

Debt investments | Commercial Paper | Level 2

Cash, Cash Equivalents and Investments [Line Items]

Debt investments, Adjusted Cost Basis

4,316

4,687

Debt investments, Unrealized Gains

Debt investments, Unrealized Losses

Debt investments, Recorded Basis

4,316

4,688

Cash and cash equivalents

1,331

1,618

Short-term Investments

2,985

3,070

Equity Investments

Debt investments | Certificates of deposit | Level 2

Cash, Cash Equivalents and Investments [Line Items]

Debt investments, Adjusted Cost Basis

3,615

2,898

Debt investments, Unrealized Gains

Debt investments, Unrealized Losses

Debt investments, Recorded Basis

3,615

2,898

Cash and cash equivalents

2,920

1,646

Short-term Investments

695

1,252

Equity Investments

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

Cash, Cash Equivalents and Investments [Line Items]

Debt investments, Adjusted Cost Basis

90,664

92,067

Debt investments, Unrealized Gains

3,832

6,495

Debt investments, Unrealized Losses

(111)

(1)

Debt investments, Recorded Basis

94,385

98,561

Cash and cash equivalents

1,500

3,168

Short-term Investments

92,885

95,393

Equity Investments

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

Cash, Cash Equivalents and Investments [Line Items]

Debt investments, Adjusted Cost Basis

807

2,439

Debt investments, Unrealized Gains

Debt investments, Unrealized Losses

Debt investments, Recorded Basis

809

2,441

Cash and cash equivalents

449

Short-term Investments

809

1,992

Equity Investments

Debt investments | Foreign government bonds | Level 2

Cash, Cash Equivalents and Investments [Line Items]

Debt investments, Adjusted Cost Basis

6,213

6,982

Debt investments, Unrealized Gains

Debt investments, Unrealized Losses

(2)

(3)

Debt investments, Recorded Basis

6,220

6,985

Cash and cash equivalents

225

Short-term Investments

5,995

6,984

Equity Investments

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

Cash, Cash Equivalents and Investments [Line Items]

Debt investments, Adjusted Cost Basis

3,442

4,865

Debt investments, Unrealized Gains

Debt investments, Unrealized Losses

(6)

Debt investments, Recorded Basis

3,458

4,900

Cash and cash equivalents

Short-term Investments

3,458

4,900

Equity Investments

Debt investments | Corporate notes and bonds | Level 2

Cash, Cash Equivalents and Investments [Line Items]

Debt investments, Adjusted Cost Basis

8,443

8,500

Debt investments, Unrealized Gains

249

327

Debt investments, Unrealized Losses

(9)

(17)

Debt investments, Recorded Basis

8,683

8,810

Cash and cash equivalents

Short-term Investments

8,683

8,810

Equity Investments

Debt investments | Corporate notes and bonds | Level 3

Cash, Cash Equivalents and Investments [Line Items]

Debt investments, Adjusted Cost Basis

Debt investments, Unrealized Gains

Debt investments, Unrealized Losses

Debt investments, Recorded Basis

Cash and cash equivalents

Short-term Investments

Equity Investments

Debt investments | Municipal securities | Level 2

Cash, Cash Equivalents and Investments [Line Items]

Debt investments, Adjusted Cost Basis

308

313

Debt investments, Unrealized Gains

Debt investments, Unrealized Losses

(4)

Debt investments, Recorded Basis

371

366

Cash and cash equivalents

Short-term Investments

371

366

Equity Investments

Debt investments | Municipal securities | Level 3

Cash, Cash Equivalents and Investments [Line Items]

Debt investments, Adjusted Cost Basis

Debt investments, Unrealized Gains

Debt investments, Unrealized Losses

(7)

Debt investments, Recorded Basis

Cash and cash equivalents

Short-term Investments

Equity Investments

$ 0

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

Investments - Additional Information (Detail) - USD ($) $ in Billions	Jun. 30, 2021	Jun. 30, 2020
Investments Debt And Equity Securities [Abstract]
Equity investments without readily determinable fair values measured at cost with adjustments for observable changes in price or impairments	$ 3.3	$ 1.4

Unrealized Losses on Debt Investments (Detail) - USD ($) $ in Millions	Jun. 30, 2021	Jun. 30, 2020
Unrealized Losses on Investments [Line Items]
Less than 12 Months - Fair Value	$ 11,389	$ 4,552
Less than 12 Months - Unrealized Losses	(132)	(31)
12 Months or Greater - Fair Value	127	0
12 Months or Greater - Unrealized Losses	(3)	0
Total Fair Value	11,516	4,552
Total Unrealized Losses	(135)	(31)
U.S. government and agency securities
Unrealized Losses on Investments [Line Items]
Less than 12 Months - Fair Value	5,294	2,323
Less than 12 Months - Unrealized Losses	(111)	(1)
12 Months or Greater - Fair Value	0	0
12 Months or Greater - Unrealized Losses	0	0
Total Fair Value	5,294	2,323
Total Unrealized Losses	(111)	(1)
Foreign government bonds
Unrealized Losses on Investments [Line Items]
Less than 12 Months - Fair Value	3,148	500
Less than 12 Months - Unrealized Losses	(1)	(3)
12 Months or Greater - Fair Value	5	0
12 Months or Greater - Unrealized Losses	(1)	0
Total Fair Value	3,153	500
Total Unrealized Losses	(2)	(3)
Mortgage- and asset-backed securities
Unrealized Losses on Investments [Line Items]
Less than 12 Months - Fair Value	1,211	1,014
Less than 12 Months - Unrealized Losses	(5)	(6)
12 Months or Greater - Fair Value	87	0
12 Months or Greater - Unrealized Losses	(1)	0
Total Fair Value	1,298	1,014
Total Unrealized Losses	(6)	(6)
Corporate notes and bonds
Unrealized Losses on Investments [Line Items]
Less than 12 Months - Fair Value	1,678	649
Less than 12 Months - Unrealized Losses	(8)	(17)
12 Months or Greater - Fair Value	34	0
12 Months or Greater - Unrealized Losses	(1)	0
Total Fair Value	1,712	649
Total Unrealized Losses	(9)	(17)
Municipal securities
Unrealized Losses on Investments [Line Items]
Less than 12 Months - Fair Value	58	66
Less than 12 Months - Unrealized Losses	(7)	(4)
12 Months or Greater - Fair Value	1	0
12 Months or Greater - Unrealized Losses	0	0
Total Fair Value	59	66
Total Unrealized Losses	$ (7)	$ (4)

Debt Investment Maturities (Detail) $ in Millions	Jun. 30, 2021 USD ($)
Adjusted Cost Basis
Due in one year or less	$ 22,612
Due after one year through five years	67,541
Due after five years through 10 years	25,212
Due after 10 years	2,601
Debt investments, Adjusted Cost Basis	117,966
Estimated Fair Value
Due in one year or less	22,676
Due after one year through five years	70,315
Due after five years through 10 years	26,327
Due after 10 years	2,690
Total	$ 122,008

Derivatives - Additional Information (Detail) - USD ($)	12 Months Ended
Derivatives - Additional Information (Detail) - USD ($)	Jun. 30, 2021	Jun. 30, 2020
Derivative [Line Items]
Minimum required liquidity under certain counterparty agreements	$ 1,000,000,000.0
Minimum liquidity for the period as defined by certain counterparty agreements	1,000,000,000.0
Gross amounts of derivative assets, elected to offset	395,000,000	$ 399,000,000
Gross amounts of derivative liabilities, elected to offset	$ 335,000,000	$ 399,000,000
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, 2021	Jun. 30, 2020
Designated as Hedging Instruments \| Foreign Exchange Contracts \| Derivatives Purchased
Derivative [Line Items]
Notional amounts	$ 635	$ 635
Designated as Hedging Instruments \| Foreign Exchange Contracts \| Derivatives Sold
Derivative [Line Items]
Notional amounts	6,081	6,754
Designated as Hedging Instruments \| Interest Rate Contracts \| Derivatives Purchased
Derivative [Line Items]
Notional amounts	1,247	1,295
Not Designated as Hedging Instruments \| Foreign Exchange Contracts \| Derivatives Purchased
Derivative [Line Items]
Notional amounts	14,223	11,896
Not Designated as Hedging Instruments \| Foreign Exchange Contracts \| Derivatives Sold
Derivative [Line Items]
Notional amounts	23,391	15,595
Not Designated as Hedging Instruments \| Other Contracts \| Derivatives Purchased
Derivative [Line Items]
Notional amounts	2,456	1,844
Not Designated as Hedging Instruments \| Other Contracts \| Derivatives Sold
Derivative [Line Items]
Notional amounts	$ 763	$ 757

Fair Values of Derivative Instruments (Detail) - USD ($) $ in Millions	Jun. 30, 2021	Jun. 30, 2020
Derivatives Fair Value [Line Items]
Derivative Assets	$ 399	$ 400
Gross amounts of derivatives offset in the balance sheet, assets	(141)	(154)
Cash collateral received, assets	0	0
Net amounts of derivatives, assets	258	246
Derivative Liabilities	(335)	(399)
Gross amounts of derivatives offset in the balance sheet, liabilities	142	158
Cash collateral received, liabilities	(42)	(154)
Net amounts of derivatives, liabilities	(235)	(395)
Level 1
Derivatives Fair Value [Line Items]
Derivative Assets	0	1
Derivative Liabilities	0	0
Level 2
Derivatives Fair Value [Line Items]
Derivative Assets	396	398
Derivative Liabilities	(335)	(399)
Level 3
Derivatives Fair Value [Line Items]
Derivative Assets	3	1
Derivative Liabilities	0	0
Designated as Hedging Instruments \| Foreign Exchange Contracts
Derivatives Fair Value [Line Items]
Derivative Assets	76	44
Derivative Liabilities	(8)	(54)
Designated as Hedging Instruments \| Interest Rate Contracts
Derivatives Fair Value [Line Items]
Derivative Assets	40	93
Derivative Liabilities	0	0
Not Designated as Hedging Instruments \| Foreign Exchange Contracts
Derivatives Fair Value [Line Items]
Derivative Assets	227	245
Derivative Liabilities	(291)	(334)
Not Designated as Hedging Instruments \| Other Contracts
Derivatives Fair Value [Line Items]
Derivative Assets	56	18
Derivative Liabilities	(36)	(11)
Short-term Investments
Derivatives Fair Value [Line Items]
Net amounts of derivatives, assets	78	35
Other Current Assets
Derivatives Fair Value [Line Items]
Net amounts of derivatives, assets	137	199
Other Long-term Assets
Derivatives Fair Value [Line Items]
Net amounts of derivatives, assets	43	12
Other Current Liabilities
Derivatives Fair Value [Line Items]
Net amounts of derivatives, liabilities	(182)	(334)
Other Long-term Liabilities
Derivatives Fair Value [Line Items]
Net amounts of derivatives, liabilities	$ (53)	$ (61)

Gains (Losses) on Derivative Instruments Recognized on Consolidated Income Statements (Detail) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2019
Revenue \| Foreign Exchange Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Gains (Losses) on Derivatives Not Designated as Hedges	$ 0	$ 0	$ 0
Revenue \| Other Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Gains (Losses) on Derivatives Not Designated as Hedges	0	0	0
Other Income (Expense), Net \| Foreign Exchange Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Gains (Losses) on Derivatives Not Designated as Hedges	27	(123)	(97)
Other Income (Expense), Net \| Other Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Gains (Losses) on Derivatives Not Designated as Hedges	9	50	38
Fair Value Hedges \| Revenue \| Foreign Exchange Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Derivatives	0	0	0
Hedged items	0	0	0
Excluded from effectiveness assessment	0	0	0
Fair Value Hedges \| Revenue \| Interest Rate Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Derivatives	0	0	0
Hedged items	0	0	0
Fair Value Hedges \| Other Income (Expense), Net \| Foreign Exchange Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Derivatives	193	1	(130)
Hedged items	(188)	3	130
Excluded from effectiveness assessment	30	139	168
Fair Value Hedges \| Other Income (Expense), Net \| Interest Rate Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Derivatives	(37)	93	0
Hedged items	53	(93)	0
Cash Flow Hedges \| Revenue \| Foreign Exchange Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Amount reclassified from accumulated other comprehensive income	0	0	341
Excluded from effectiveness assessment	0	0	(64)
Cash Flow Hedges \| Other Income (Expense), Net \| Foreign Exchange Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Amount reclassified from accumulated other comprehensive income	17	0	0
Excluded from effectiveness assessment	$ 0	$ 0	$ 0

Gains (Losses), Net of Tax, on Derivative Instruments Recognized on Consolidated Comprehensive Income Statements (Detail) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2019
Cash Flow Hedges \| Foreign Exchange Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Included in effectiveness assessment	$ 34	$ (38)	$ 159

Components of Inventories (Detail) - USD ($) $ in Millions	Jun. 30, 2021	Jun. 30, 2020
Inventory Disclosure [Abstract]
Raw materials	$ 1,190	$ 700
Work in process	79	83
Finished goods	1,367	1,112
Total	$ 2,636	$ 1,895

Components of Property and Equipment (Detail) - USD ($) $ in Millions	Jun. 30, 2021	Jun. 30, 2020
Property Plant And Equipment [Abstract]
Land	$ 3,660	$ 1,823
Buildings and improvements	43,928	33,995
Leasehold improvements	6,884	5,487
Computer equipment and software	51,250	41,261
Furniture and equipment	5,344	4,782
Total, at cost	111,066	87,348
Accumulated depreciation	(51,351)	(43,197)
Property and equipment, net	$ 59,715	$ 44,151

Property and Equipment - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2019
Property, Plant and Equipment [Line Items]
Depreciation expense	$ 9,300	$ 10,700	$ 9,700
Leasehold Improvements
Property, Plant and Equipment [Line Items]
Impairment charges related to leasehold improvements		$ 186
Building, Building Improvements and Leasehold Improvements
Property, Plant and Equipment [Line Items]
Committed for construction of new buildings, building improvements and leasehold improvements	$ 9,500

Business Combinations - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions	Apr. 11, 2021	Mar. 09, 2021	Oct. 25, 2018
ZeniMax Media Inc.
Business Acquisition [Line Items]
Total consideration transferred		$ 8,100
Cash and cash equivalents acquired		$ 768
Acquisition date		Mar. 09, 2021
GitHub, Inc.
Business Acquisition [Line Items]
Total consideration transferred			$ 7,500
Acquisition date			Oct. 25, 2018
Cash paid to acquire the business			$ 1,300
Transactions recognized separately from preliminary purchase price allocation			$ 600
Nuance Communications Inc
Business Acquisition [Line Items]
Acquisition agreement date	Apr. 11, 2021
Acquisition agreement share price	$ 56.00
Total purchase price to be transferred	$ 19,700

Major Classes of Assets and Liabilities Allocated Purchase Price (Detail) - USD ($) $ in Millions	Jun. 30, 2021	Mar. 09, 2021	Jun. 30, 2020	Jun. 30, 2019	Oct. 25, 2018
Business Acquisition [Line Items]
Goodwill	$ 49,711		$ 43,351	$ 42,026
ZeniMax Media Inc.
Business Acquisition [Line Items]
Cash and cash equivalents		$ 768
Goodwill	5,500	5,469
Intangible assets	$ 2,000	1,968
Other assets		139
Other liabilities		(223)
Total		$ 8,121
GitHub, Inc.
Business Acquisition [Line Items]
Cash, cash equivalents, and short-term investments					$ 234
Goodwill					5,497
Intangible assets					1,267
Other assets					143
Other liabilities					(217)
Total					$ 6,924

Acquired Intangible Assets (Detail) - USD ($) $ in Millions			12 Months Ended
Acquired Intangible Assets (Detail) - USD ($) $ in Millions	Mar. 09, 2021	Oct. 25, 2018	Jun. 30, 2021	Jun. 30, 2020
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted Average Life			5 years	5 years
Customer-related
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted Average Life			4 years	5 years
Technology-based
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted Average Life			4 years	6 years
Marketing-related
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted Average Life			6 years	2 years
Contract-based
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted Average Life			3 years	0 years
ZeniMax Media Inc.
Acquired Finite-Lived Intangible Assets [Line Items]
Fair value of intangible assets acquired	$ 1,968		$ 2,000
Weighted Average Life	6 years
ZeniMax Media Inc. \| Technology-based
Acquired Finite-Lived Intangible Assets [Line Items]
Fair value of intangible assets acquired	$ 1,341
Weighted Average Life	4 years
ZeniMax Media Inc. \| Marketing-related
Acquired Finite-Lived Intangible Assets [Line Items]
Fair value of intangible assets acquired	$ 627
Weighted Average Life	11 years
GitHub, Inc.
Acquired Finite-Lived Intangible Assets [Line Items]
Fair value of intangible assets acquired		$ 1,267
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

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

12 Months Ended

Jun. 30, 2021

Jun. 30, 2020

Goodwill [Line Items]

Beginning Balance

$ 43,351

$ 42,026

Acquisitions

6,061

1,454

Other

299

(129)

Ending Balance

49,711

43,351

Productivity and Business Processes

Goodwill [Line Items]

Beginning Balance

24,190

24,277

Acquisitions

Other

127

(94)

Ending Balance

24,317

24,190

Intelligent Cloud

Goodwill [Line Items]

Beginning Balance

12,697

11,351

Acquisitions

505

1,351

Other

(5)

Ending Balance

13,256

12,697

More Personal Computing

Goodwill [Line Items]

Beginning Balance

6,464

6,398

Acquisitions

5,556

^[1]

Other

118

^[1]

(30)

Ending Balance

$ 12,138

$ 6,464

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

Carrying Amount of Goodwill (Parenthetical) (Detail) - USD ($) $ in Millions	Jun. 30, 2021	Mar. 09, 2021	Jun. 30, 2020	Jun. 30, 2019
Goodwill [Line Items]
Goodwill	$ 49,711		$ 43,351	$ 42,026
ZeniMax Media Inc.
Goodwill [Line Items]
Goodwill	$ 5,500	$ 5,469

Goodwill - Additional Information (Detail) - USD ($)	May 01, 2021	May 01, 2020	May 01, 2019	Jun. 30, 2021	Jun. 30, 2020
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, 2021

Jun. 30, 2020

Finite-Lived Intangible Assets [Line Items]

Gross Carrying Amount

$ 19,975

^[1]

$ 17,759

Accumulated Amortization

(12,175)

(10,721)

Net Carrying Amount

7,800

7,038

Technology-based

Finite-Lived Intangible Assets [Line Items]

Gross Carrying Amount

9,779

8,160

Accumulated Amortization

(7,007)

(6,381)

Net Carrying Amount

2,772

1,779

Customer-related

Finite-Lived Intangible Assets [Line Items]

Gross Carrying Amount

4,958

4,967

Accumulated Amortization

(2,859)

(2,320)

Net Carrying Amount

2,099

2,647

Marketing-related

Finite-Lived Intangible Assets [Line Items]

Gross Carrying Amount

4,792

4,158

Accumulated Amortization

(1,878)

(1,588)

Net Carrying Amount

2,914

2,570

Contract-based

Finite-Lived Intangible Assets [Line Items]

Gross Carrying Amount

446

474

Accumulated Amortization

(431)

(432)

Net Carrying Amount

$ 15

$ 42

[1]	Includes intangible assets of $2.0 billion related to ZeniMax. See Note 8 – Business Combinations for further information.

Finite-Lived Intangible Assets (Parenthetical) (Detail) - USD ($) $ in Millions	Jun. 30, 2021	Mar. 09, 2021
ZeniMax Media Inc.
Finite-Lived Intangible Assets [Line Items]
Fair value of intangible assets acquired	$ 2,000	$ 1,968

Intangible Assets Acquired (Detail) - USD ($) $ in Millions	12 Months Ended
Intangible Assets Acquired (Detail) - USD ($) $ in Millions	Jun. 30, 2021	Jun. 30, 2020
Acquired Finite-Lived Intangible Assets [Line Items]
Amount	$ 2,359	$ 836
Weighted Average Life	5 years	5 years
Technology-based
Acquired Finite-Lived Intangible Assets [Line Items]
Amount	$ 1,628	$ 531
Weighted Average Life	4 years	6 years
Customer-related
Acquired Finite-Lived Intangible Assets [Line Items]
Amount	$ 96	$ 303
Weighted Average Life	4 years	5 years
Marketing-related
Acquired Finite-Lived Intangible Assets [Line Items]
Amount	$ 625	$ 2
Weighted Average Life	6 years	2 years
Contract-based
Acquired Finite-Lived Intangible Assets [Line Items]
Amount	$ 10	$ 0
Weighted Average Life	3 years	0 years

Intangible Assets - Additional Information (Detail) - USD ($) $ in Billions	12 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2019
Goodwill And Intangible Assets Disclosure [Abstract]
Intangible assets amortization expense	$ 1.6	$ 1.6	$ 1.9

Estimated Future Amortization Expense Related to Intangible Assets (Detail) - USD ($) $ in Millions	Jun. 30, 2021	Jun. 30, 2020
Goodwill And Intangible Assets Disclosure [Abstract]
Year Ending June 30, 2022	$ 1,683
Year Ending June 30, 2023	1,722
Year Ending June 30, 2024	1,415
Year Ending June 30, 2025	755
Year Ending June 30, 2026	498
Thereafter	1,727
Net Carrying Amount	$ 7,800	$ 7,038

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

12 Months Ended

Jun. 30, 2021

Jun. 30, 2020

Debt Instrument [Line Items]

Total face value

$ 63,910

$ 67,407

Unamortized discount and issuance costs

(511)

(554)

Hedge fair value adjustments

^[1]

Premium on debt exchange

^[2]

(5,293)

(3,619)

Total debt

58,146

63,327

Current portion of long-term debt

(8,072)

(3,749)

Long-term debt

$ 50,074

59,578

2009 Issuance of $3.8 billion

Debt Instrument [Line Items]

Maturities (calendar year)

^[2]

2039

Stated Interest Rate

^[2]

5.20%

Effective Interest Rate

^[2]

5.24%

Total face value

^[2]

$ 520

559

2010 Issuance of $4.8 billion

Debt Instrument [Line Items]

Maturities (calendar year)

^[2]

2040

Stated Interest Rate

^[2]

4.50%

Effective Interest Rate

^[2]

4.57%

Total face value

^[2]

$ 486

1,571

2011 Issuance of $2.3 billion

Debt Instrument [Line Items]

Maturities (calendar year)

^[2]

2041

Stated Interest Rate

^[2]

5.30%

Effective Interest Rate

^[2]

5.36%

Total face value

^[2]

$ 718

1,270

2012 Issuance of $2.3 billion

Debt Instrument [Line Items]

Total face value

^[2]

$ 1,204

1,650

2012 Issuance of $2.3 billion | Minimum

Debt Instrument [Line Items]

Maturities (calendar year)

^[2]

2022

Stated Interest Rate

^[2]

2.13%

Effective Interest Rate

^[2]

2.24%

2012 Issuance of $2.3 billion | Maximum

Debt Instrument [Line Items]

Maturities (calendar year)

^[2]

2042

Stated Interest Rate

^[2]

3.50%

Effective Interest Rate

^[2]

3.57%

2013 Issuance of $5.2 billion

Debt Instrument [Line Items]

Total face value

^[2]

$ 2,814

2,919

2013 Issuance of $5.2 billion | Minimum

Debt Instrument [Line Items]

Maturities (calendar year)

^[2]

2023

Stated Interest Rate

^[2]

2.38%

Effective Interest Rate

^[2]

2.47%

2013 Issuance of $5.2 billion | Maximum

Debt Instrument [Line Items]

Maturities (calendar year)

^[2]

2043

Stated Interest Rate

^[2]

4.88%

Effective Interest Rate

^[2]

4.92%

2013 Issuance of €4.1 billion

Debt Instrument [Line Items]

Total face value

$ 4,803

4,549

2013 Issuance of €4.1 billion | Minimum

Debt Instrument [Line Items]

Maturities (calendar year)

2021

Stated Interest Rate

2.13%

Effective Interest Rate

2.23%

2013 Issuance of €4.1 billion | Maximum

Debt Instrument [Line Items]

Maturities (calendar year)

2033

Stated Interest Rate

3.13%

Effective Interest Rate

3.22%

2015 Issuance of $23.8 billion

Debt Instrument [Line Items]

Total face value

^[2]

$ 12,305

15,549

2015 Issuance of $23.8 billion | Minimum

Debt Instrument [Line Items]

Maturities (calendar year)

^[2]

2022

Stated Interest Rate

^[2]

2.38%

Effective Interest Rate

^[2]

2.47%

2015 Issuance of $23.8 billion | Maximum

Debt Instrument [Line Items]

Maturities (calendar year)

^[2]

2055

Stated Interest Rate

^[2]

4.75%

Effective Interest Rate

^[2]

4.78%

2016 Issuance of $19.8 billion

Debt Instrument [Line Items]

Total face value

^[2]

$ 12,180

16,955

2016 Issuance of $19.8 billion | Minimum

Debt Instrument [Line Items]

Maturities (calendar year)

^[2]

2021

Stated Interest Rate

^[2]

1.55%

Effective Interest Rate

^[2]

1.64%

2016 Issuance of $19.8 billion | Maximum

Debt Instrument [Line Items]

Maturities (calendar year)

^[2]

2056

Stated Interest Rate

^[2]

3.95%

Effective Interest Rate

^[2]

4.03%

2017 Issuance of $17.0 billion

Debt Instrument [Line Items]

Total face value

^[2]

$ 10,695

12,385

2017 Issuance of $17.0 billion | Minimum

Debt Instrument [Line Items]

Maturities (calendar year)

^[2]

2022

Stated Interest Rate

^[2]

2.40%

Effective Interest Rate

^[2]

2.52%

2017 Issuance of $17.0 billion | Maximum

Debt Instrument [Line Items]

Maturities (calendar year)

^[2]

2057

Stated Interest Rate

^[2]

4.50%

Effective Interest Rate

^[2]

4.53%

2020 Issuance of $10.0 billion

Debt Instrument [Line Items]

Total face value

^[2]

$ 10,000

10,000

2020 Issuance of $10.0 billion | Minimum

Debt Instrument [Line Items]

Maturities (calendar year)

^[2]

2050

Stated Interest Rate

^[2]

2.53%

Effective Interest Rate

^[2]

2.53%

2020 Issuance of $10.0 billion | Maximum

Debt Instrument [Line Items]

Maturities (calendar year)

^[2]

2060

Stated Interest Rate

^[2]

2.68%

Effective Interest Rate

^[2]

2.68%

2021 issuance of $8.2 billion

Debt Instrument [Line Items]

Total face value

^[2]

$ 8,185

$ 0

2021 issuance of $8.2 billion | Minimum

Debt Instrument [Line Items]

Maturities (calendar year)

^[2]

2052

Stated Interest Rate

^[2]

2.92%

Effective Interest Rate

^[2]

2.92%

2021 issuance of $8.2 billion | Maximum

Debt Instrument [Line Items]

Maturities (calendar year)

^[2]

2062

Stated Interest Rate

^[2]

3.04%

Effective Interest Rate

^[2]

3.04%

[1]	Refer to Note 5 – Derivatives for further information on the interest rate swaps related to fixed-rate debt.
[2]	In March 2021 and June 2020, we exchanged a portion of our existing debt at a premium for cash and new debt with longer maturities. The premiums are amortized over the terms of the new debt.

Debt (Parenthetical) (Detail) - 12 months ended Jun. 30, 2021 € in Billions, $ in Billions	USD ($)	EUR (€)
2009 Issuance of $3.8 billion
Debt Instrument [Line Items]
Debt, issuance date	2009
Debt, face value	$ 3.8
2010 Issuance of $4.8 billion
Debt Instrument [Line Items]
Debt, issuance date	2010
Debt, face value	$ 4.8
2011 Issuance of $2.3 billion
Debt Instrument [Line Items]
Debt, issuance date	2011
Debt, face value	$ 2.3
2012 Issuance of $2.3 billion
Debt Instrument [Line Items]
Debt, issuance date	2012
Debt, face value	$ 2.3
2013 Issuance of $5.2 billion
Debt Instrument [Line Items]
Debt, issuance date	2013
Debt, face value	$ 5.2
2013 Issuance of €4.1 billion
Debt Instrument [Line Items]
Debt, issuance date	2013
Debt, face value \| €		€ 4.1
2015 Issuance of $23.8 billion
Debt Instrument [Line Items]
Debt, issuance date	2015
Debt, face value	$ 23.8
2016 Issuance of $19.8 billion
Debt Instrument [Line Items]
Debt, issuance date	2016
Debt, face value	$ 19.8
2017 Issuance of $17.0 billion
Debt Instrument [Line Items]
Debt, issuance date	2017
Debt, face value	$ 17.0
2020 Issuance of $10.0 billion
Debt Instrument [Line Items]
Debt, issuance date	2020
Debt, face value	$ 10.0
2021 issuance of $8.2 billion
Debt Instrument [Line Items]
Debt, issuance date	2021
Debt, face value	$ 8.2

Debt - Additional Information (Detail) - USD ($) $ in Billions	12 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2019
Debt Disclosure [Abstract]
Long-term debt fair value	$ 70.0	$ 77.1
Cash paid for interest	$ 2.0	$ 2.4	$ 2.4

Maturities of Long-term Debt Including Current Portion (Detail) - USD ($) $ in Millions	Jun. 30, 2021	Jun. 30, 2020
Debt Disclosure [Abstract]
Year Ending June 30, 2022	$ 8,075
Year Ending June 30, 2023	2,750
Year Ending June 30, 2024	5,250
Year Ending June 30, 2025	2,250
Year Ending June 30, 2026	3,000
Thereafter	42,585
Total	$ 63,910	$ 67,407

Income Taxes - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2021	Jun. 30, 2019	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2018
Income Taxes [Line Items]
TCJA, provisional net charge for income taxes						$ 13,700
TCJA, adjustment to provisional net charge for income taxes					$ 157
Provision (benefit) for income taxes			$ 9,831	$ 8,755	4,448
Income taxes paid, net of refunds			13,400	12,500	8,400
Gross unrecognized tax benefits related to uncertain tax positions		$ 13,146	14,550	13,792	13,146	$ 11,961
Gross unrecognized tax benefits related to uncertain tax positions, if recognized would affect our effective tax rates		12,000	12,500	12,100	12,000
Accrued interest expense related to uncertain tax positions net of federal income tax benefits		3,400	4,300	4,000	3,400
Interest expense related to uncertain tax positions, net of income tax benefits			$ 274	$ 579	$ 515
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%	86.00%	82.00%
Federal
Income Taxes [Line Items]
Operating loss carryforwards			$ 304
State
Income Taxes [Line Items]
Operating loss carryforwards			1,300
Foreign Country
Income Taxes [Line Items]
Operating loss carryforwards			$ 2,000
Removal of operating loss carryforwards				$ 2,000
Removal of operating loss carryforwards, valuation allowance				$ 2,000
Earliest Tax Year
Income Taxes [Line Items]
Tax years impacted	1996
Earliest Tax Year \| Federal and State
Income Taxes [Line Items]
Operating loss carryforwards expiration year			2022
Latest Tax Year
Income Taxes [Line Items]
Tax years impacted	2016
Latest Tax Year \| Federal and State
Income Taxes [Line Items]
Operating loss carryforwards expiration year			2041
India Supreme Court
Income Taxes [Line Items]
Provision (benefit) for income taxes	$ (620)
Transfer of Intangible Properties
Income Taxes [Line Items]
Provision (benefit) for income taxes		$ (2,600)			$ (2,600)

Provision for Income Taxes (Detail) - USD ($) $ in Millions	12 Months Ended
Provision for Income Taxes (Detail) - USD ($) $ in Millions	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2019
Current Taxes
U.S. federal	$ 3,285	$ 3,537	$ 4,718
U.S. state and local	1,229	763	662
Foreign	5,467	4,444	5,531
Current taxes	9,981	8,744	10,911
Deferred Taxes
U.S. federal	25	58	(5,647)
U.S. state and local	(204)	(6)	(1,010)
Foreign	29	(41)	194
Deferred taxes	(150)	11	(6,463)
Provision for income taxes	$ 9,831	$ 8,755	$ 4,448

Income Before Income Taxes (Detail) - USD ($) $ in Millions	12 Months Ended
Income Before Income Taxes (Detail) - USD ($) $ in Millions	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2019
Income Tax Disclosure [Abstract]
U.S.	$ 34,972	$ 24,116	$ 15,799
Foreign	36,130	28,920	27,889
Income before income taxes	$ 71,102	$ 53,036	$ 43,688

Difference Between Income Taxes Computed at Federal Statutory Rate and Provision for Income Taxes (Detail)	12 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2019
Income Tax Disclosure [Abstract]
Federal statutory rate	21.00%	21.00%	21.00%
Effect of:
Foreign earnings taxed at lower rates	(2.70%)	(3.70%)	(4.10%)
Impact of the enactment of the TCJA	0.00%	0.00%	0.40%
Impact of intangible property transfers	0.00%	0.00%	(5.90%)
Foreign-derived intangible income deduction	(1.30%)	(1.10%)	(1.40%)
State income taxes, net of federal benefit	1.40%	1.30%	0.70%
Research and development credit	(0.90%)	(1.10%)	(1.10%)
Excess tax benefits relating to stock-based compensation	(2.40%)	(2.20%)	(2.20%)
Interest, net	0.50%	1.00%	1.00%
Other reconciling items, net	(1.80%)	1.30%	1.80%
Effective rate	13.80%	16.50%	10.20%

Deferred Income Tax Assets and Liabilities (Detail) - USD ($) $ in Millions	Jun. 30, 2021	Jun. 30, 2020
Deferred Income Tax Assets
Stock-based compensation expense	$ 502	$ 461
Accruals, reserves, and other expenses	2,960	2,721
Loss and credit carryforwards	1,090	865
Amortization	6,346	6,737
Leasing liabilities	4,060	3,025
Unearned revenue	2,659	1,553
Other	543	354
Deferred income tax assets	18,160	15,716
Less valuation allowance	(769)	(755)
Deferred income tax assets, net of valuation allowance	17,391	14,961
Deferred Income Tax Liabilities
Book/tax basis differences in investments and debt	(2,605)	(2,642)
Leasing assets	(3,834)	(2,817)
Depreciation	(1,010)	(376)
Deferred GILTI tax liabilities	(2,815)	(2,581)
Other	(144)	(344)
Deferred income tax liabilities	(10,408)	(8,760)
Net deferred income tax assets	6,983	6,201
Long-term deferred income tax liabilities	(198)	(204)
Other Long-term Assets
Deferred Income Tax Liabilities
Other long-term assets	$ 7,181	$ 6,405

Changes in Gross Unrecognized Tax Benefits Related to Uncertain Tax Positions (Detail) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2019
Income Tax Disclosure [Abstract]
Beginning unrecognized tax benefits	$ 13,792	$ 13,146	$ 11,961
Decreases related to settlements	(195)	(31)	(316)
Increases for tax positions related to the current year	790	647	2,106
Increases for tax positions related to prior years	461	366	508
Decreases for tax positions related to prior years	(297)	(331)	(1,113)
Decreases due to lapsed statutes of limitations	(1)	(5)	0
Ending unrecognized tax benefits	$ 14,550	$ 13,792	$ 13,146

Income Taxes - Additional Information Regarding Examinations (Detail) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Dec. 31, 2020	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2016	Jun. 30, 2011
Income Tax Examination [Line Items]
Settlement payments including tax and interest		$ 195	$ 31	$ 316
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		2020
Internal Revenue Service (IRS)
Income Tax Examination [Line Items]
Settlement payments including tax and interest	$ 1,700
Internal Revenue Service (IRS) \| Earliest Tax Year
Income Tax Examination [Line Items]
Tax years under audit	2004				2010	2007	2004
Tax years subject to examination		2004
Internal Revenue Service (IRS) \| Latest Tax Year
Income Tax Examination [Line Items]
Tax years under audit	2013				2013	2009	2006
Tax years subject to examination		2017

Unearned Revenue by Segment (Detail) - USD ($) $ in Millions	Jun. 30, 2021	Jun. 30, 2020
Contract With Customer Liability [Line Items]
Unearned revenue	$ 44,141	$ 39,180
Productivity and Business Processes
Contract With Customer Liability [Line Items]
Unearned revenue	22,120	18,643
Intelligent Cloud
Contract With Customer Liability [Line Items]
Unearned revenue	17,710	16,620
More Personal Computing
Contract With Customer Liability [Line Items]
Unearned revenue	$ 4,311	$ 3,917

Changes in Unearned Revenue (Detail) $ in Millions	12 Months Ended
Changes in Unearned Revenue (Detail) $ in Millions	Jun. 30, 2021 USD ($)
Revenue From Contract With Customer [Abstract]
Balance, beginning of period	$ 39,180
Deferral of revenue	94,565
Recognition of unearned revenue	(89,604)
Balance, end of period	$ 44,141

Unearned Revenue - Additional Information (Detail) $ in Billions	Jun. 30, 2021 USD ($)
Contract With Customer Liability [Line Items]
Revenue allocated to remaining performance obligations	$ 146
Commercial Customers
Contract With Customer Liability [Line Items]
Revenue allocated to remaining performance obligations	$ 141

Unearned Revenue - Remaining Performance Obligation - Additional Information (Detail) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-07-01	Jun. 30, 2021
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) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Leases [Line Items]
Impairment charges to operating lease right-of-use assets		$ 161
Operating Lease
Leases [Line Items]
Additional leases, primarily for datacenters, that have not yet commenced	$ 5,400
Finance Lease
Leases [Line Items]
Additional leases, primarily for datacenters, that have not yet commenced	$ 7,300
Minimum
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
Maximum
Leases [Line Items]
Operating and Finance leases, remaining lease terms	15 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, 2021	Jun. 30, 2020	Jun. 30, 2019
Leases [Abstract]
Operating lease cost	$ 2,127	$ 2,043	$ 1,707
Finance lease cost:
Amortization of right-of-use assets	921	611	370
Interest on lease liabilities	386	336	247
Total finance lease cost	$ 1,307	$ 947	$ 617

Supplemental Cash Flow Information Related to Leases (Detail) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 2,052	$ 1,829	$ 1,670
Operating cash flows from finance leases	386	336	247
Financing cash flows from finance leases	648	409	221
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	4,380	3,677	2,303
Finance leases	$ 3,290	$ 3,467	$ 2,532

Supplemental Balance Sheet Information Related to Leases (Detail) - USD ($) $ in Millions	Jun. 30, 2021	Jun. 30, 2020
Operating Leases
Operating lease right-of-use assets	$ 11,088	$ 8,753
Total operating lease liabilities	11,591	9,287
Finance Leases
Property and equipment, at cost	111,066	87,348
Accumulated depreciation	(51,351)	(43,197)
Property and equipment, net	59,715	44,151
Total finance lease liabilities	$ 12,541	$ 9,496
Weighted Average Remaining Lease Term
Operating leases	8 years	8 years
Finance leases	12 years	13 years
Weighted Average Discount Rate
Operating leases	2.20%	2.70%
Finance leases	3.40%	3.90%
Finance Lease
Finance Leases
Property and equipment, at cost	$ 14,107	$ 10,371
Accumulated depreciation	(2,306)	(1,385)
Property and equipment, net	11,801	8,986
Other Current Liabilities
Operating Leases
Total operating lease liabilities	1,962	1,616
Finance Leases
Total finance lease liabilities	791	540
Operating Lease Liabilities
Operating Leases
Total operating lease liabilities	9,629	7,671
Other Long-term Liabilities
Finance Leases
Total finance lease liabilities	$ 11,750	$ 8,956

Maturities of Lease Liabilities (Detail) - USD ($) $ in Millions	Jun. 30, 2021	Jun. 30, 2020
Leases [Abstract]
Operating Leases, Year Ending June 30, 2022	$ 2,125
Operating Leases, Year Ending June 30, 2023	1,954
Operating Leases, Year Ending June 30, 2024	1,751
Operating Leases, Year Ending June 30, 2025	1,463
Operating Leases, Year Ending June 30, 2026	1,133
Operating Leases, Thereafter	4,111
Operating Leases, Total lease payments	12,537
Operating Leases, Less imputed interest	(946)
Operating Leases	11,591	$ 9,287
Finance Leases, Year Ending June 30, 2022	1,179
Finance Leases, Year Ending June 30, 2023	1,198
Finance Leases, Year Ending June 30, 2024	1,211
Finance Leases, Year Ending June 30, 2025	1,537
Finance Leases, Year Ending June 30, 2026	1,220
Finance Leases, Thereafter	8,856
Finance Leases, Total lease payments	15,201
Finance Leases, Less imputed interest	(2,660)
Finance Leases	$ 12,541	$ 9,496

Contingencies - Additional Information (Detail) $ in Millions	Jun. 30, 2021 USD ($)
Commitments And Contingencies Disclosure [Abstract]
Accrual for disclosed loss contingencies, current, ending balance	$ 339
Amount not accrued for estimated maximum losses for disclosed loss contingencies	$ 500

Shares of Common Stock Outstanding (Detail) - shares shares in Millions	12 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2019
Equity [Abstract]
Balance, beginning of year	7,571	7,643	7,677
Issued	49	54	116
Repurchased	(101)	(126)	(150)
Balance, end of year	7,519	7,571	7,643

Stockholders' Equity - Additional Information (Detail) - USD ($)	12 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2019	Sep. 18, 2019	Sep. 20, 2016
Share Repurchases [Line Items]
Amount of shares repurchased to settle employee tax withholding related to vesting of stock awards	$ 4,400,000,000	$ 3,300,000,000	$ 2,700,000,000
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					$ 40,000,000,000.0
Share Repurchase Program 2019
Share Repurchases [Line Items]
Amount available for repurchase under the share repurchase program approved by the company's Board of Directors				$ 40,000,000,000.0
Unused amount of share repurchase program	$ 8,700,000

Share Repurchases (Detail) - USD ($) shares in Millions, $ in Millions	3 Months Ended												12 Months Ended
	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2019
Share Repurchases [Line Items]
Shares of common stock repurchased													101	126	150
Share Repurchase Program 2016
Share Repurchases [Line Items]
Shares of common stock repurchased							32	29	33	36	57	24		126	150
Value of common stock repurchased							$ 4,600	$ 4,000	$ 4,200	$ 3,899	$ 6,100	$ 2,600		$ 19,688	$ 16,799
Share Repurchase Program 2019
Share Repurchases [Line Items]
Shares of common stock repurchased	24	25	27	25	28								101
Value of common stock repurchased	$ 6,200	$ 5,750	$ 5,750	$ 5,270	$ 5,088								$ 22,970
Share Repurchase Programs 2016 and 2019
Share Repurchases [Line Items]
Shares of common stock repurchased						37
Value of common stock repurchased						$ 6,000

Dividends Declared (Detail) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended								12 Months Ended
	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2019
Equity [Abstract]
Declaration Date	Jun. 16, 2021	Mar. 16, 2021	Dec. 02, 2020	Sep. 15, 2020	Jun. 17, 2020	Mar. 09, 2020	Dec. 04, 2019	Sep. 18, 2019
Record Date	Aug. 19, 2021	May 20, 2021	Feb. 18, 2021	Nov. 19, 2020	Aug. 20, 2020	May 21, 2020	Feb. 20, 2020	Nov. 21, 2019
Payment Date	Sep. 09, 2021	Jun. 10, 2021	Mar. 11, 2021	Dec. 10, 2020	Sep. 10, 2020	Jun. 11, 2020	Mar. 12, 2020	Dec. 12, 2019
Dividend Per Share	$ 0.56	$ 0.56	$ 0.56	$ 0.56	$ 0.51	$ 0.51	$ 0.51	$ 0.51	$ 2.24	$ 2.04	$ 1.84
Amount	$ 4,211	$ 4,214	$ 4,221	$ 4,230	$ 3,856	$ 3,865	$ 3,876	$ 3,886	$ 16,876	$ 15,483

Summary of Changes in Accumulated Other Comprehensive Income (Loss) by Component (Detail) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2019
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, beginning of period	$ 118,304	$ 102,330
Accounting Standards Update [Extensible List]	us-gaap:AccountingStandardsUpdate201601Member	us-gaap:AccountingStandardsUpdate201601Member	us-gaap:AccountingStandardsUpdate201601Member
Net change related to other comprehensive income (loss)	$ (1,374)	$ 3,526	$ 1,914
Balance, end of period	141,988	118,304	102,330
Derivatives
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, beginning of period	(38)	0	173
Unrealized gains (losses), net of tax	34	(38)	160
Tax expense (benefit) included in provision for income taxes	(2)	0	(8)
Amounts reclassified from accumulated other comprehensive income (loss)	(15)	0	(333)
Net change related to other comprehensive income (loss)	19	(38)	(173)
Balance, end of period	(19)	(38)	0
Derivatives \| Revenue
Accumulated Other Comprehensive Income (Loss) [Line Items]
Reclassification adjustments for (gains) losses included in earnings	(17)	0	(341)
Investments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, beginning of period	5,478	1,488	(850)
Unrealized gains (losses), net of tax	(2,216)	3,987	2,331
Tax expense (benefit) included in provision for income taxes	13	(1)	(19)
Amounts reclassified from accumulated other comprehensive income (loss)	(50)	3	74
Net change related to other comprehensive income (loss)	(2,266)	3,990	2,405
Balance, end of period	3,222	5,478	1,488
Investments \| Cumulative effect of accounting changes
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, beginning of period	10	0	(67)
Balance, end of period		10	0
Investments \| Other Income (Expense), Net
Accumulated Other Comprehensive Income (Loss) [Line Items]
Reclassification adjustments for (gains) losses included in earnings	(63)	4	93
Translation adjustments and other
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, beginning of period	(2,254)	(1,828)	(1,510)
Net change related to other comprehensive income (loss)	873	(426)	(318)
Balance, end of period	(1,381)	(2,254)	(1,828)
Accumulated other comprehensive income (loss)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, beginning of period	3,186	(340)	(2,187)
Net change related to other comprehensive income (loss)	(1,374)	3,526	1,914
Balance, end of period	1,822	3,186	(340)
Accumulated other comprehensive income (loss) \| Cumulative effect of accounting changes
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, beginning of period	$ 10	0	(67)
Balance, end of period		$ 10	$ 0

Summary of Changes in Accumulated Other Comprehensive Income (Loss) by Component (Parenthetical) (Detail) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2019
Derivatives
Accumulated Other Comprehensive Income (Loss) [Line Items]
Unrealized gains (losses), tax	$ 9	$ (10)	$ 2
Net change related to other comprehensive income (loss), tax	7	(10)	(6)
Investments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Unrealized gains (losses), tax	(589)	1,057	616
Net change related to other comprehensive income (loss), tax	(602)	1,058	635
Translation adjustments and other
Accumulated Other Comprehensive Income (Loss) [Line Items]
Net change related to other comprehensive income (loss), tax	$ (9)	$ 1	$ (1)

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

12 Months Ended

Jun. 30, 2021

Jun. 30, 2020

Jun. 30, 2019

Company contribution amount for each dollar a participant contributes into the savings plans

50.00%

Retirement benefits for saving plans funded by employer

$ 1,200

$ 1,000

$ 877

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

251

Unrecognized compensation costs

$ 12,000

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

3 years

Weighted average grant-date fair value

$ 221.13

^[1]

$ 140.49

$ 107.02

Fair value of awards vested

$ 13,400

$ 10,100

$ 8,700

Stock Awards | Lower Limit

Award vest period

4 years

Stock Awards | Upper Limit

Award vest period

5 years

Restricted Stock Units | Executive Incentive Plan

Award vest period

4 years

Performance Stock Units | Executive Incentive Plan

Award vest period

3 years

Employee Stock

Shares authorized for future grant

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%

Employee stock purchase plan expiration period

10 years

[1]	Includes 2 million of PSUs granted at target and performance adjustments above target levels for fiscal years 2021, 2020, and 2019.

Stock-Based Compensation Expense and Related Income Tax Benefits (Detail) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2019
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stock-based compensation expense	$ 6,118	$ 5,289	$ 4,652
Income tax benefits related to stock-based compensation	$ 1,065	$ 938	$ 816

Assumptions Used in Estimating the Fair Value of Stock Award Grants (Detail) - $ / shares	12 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2019
Share based Compensation Arrangement by Share based Payment Award, Fair Value Assumptions, Method Used [Line Items]
Interest rates minimum	0.01%	0.10%	1.80%
Interest rates maximum	1.50%	2.20%	3.10%
Lower Limit
Share based Compensation Arrangement by Share based Payment Award, Fair Value Assumptions, Method Used [Line Items]
Dividends per share (quarterly amounts)	$ 0.51	$ 0.46	$ 0.42
Upper Limit
Share based Compensation Arrangement by Share based Payment Award, Fair Value Assumptions, Method Used [Line Items]
Dividends per share (quarterly amounts)	$ 0.56	$ 0.51	$ 0.46

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

12 Months Ended

Jun. 30, 2021

Jun. 30, 2020

Jun. 30, 2019

Shares

Nonvested balance, beginning of year

126

Granted

^[1]

Vested

(58)

Forfeited

(8)

Nonvested balance, end of year

100

126

Weighted Average Grant-Date Fair Value

Nonvested balance, beginning of year

$ 105.23

Granted

221.13

^[1]

$ 140.49

$ 107.02

Vested

99.41

Forfeited

129.92

Nonvested balance, end of year

$ 152.51

$ 105.23

[1]	Includes 2 million of PSUs granted at target and performance adjustments above target levels for fiscal years 2021, 2020, and 2019.

Stock Plan Activity (Parenthetical) (Detail) - shares shares in Millions	12 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2019
Performance Stock Units
Share based Compensation Arrangement by Share based Payment Award [Line Items]
Nonvested stock awards granted	2	2	2

Employee Purchased Shares (Detail) - $ / shares shares in Millions	12 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2019
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Shares purchased	8	9	11
Average price per share	$ 207.88	$ 142.22	$ 104.85

Segment Revenue (Detail) - USD ($) $ in Millions	12 Months Ended
Segment Revenue (Detail) - USD ($) $ in Millions	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2019
Segment Reporting Information [Line Items]
Revenue	$ 168,088	$ 143,015	$ 125,843
Productivity and Business Processes
Segment Reporting Information [Line Items]
Revenue	53,915	46,398	41,160
Intelligent Cloud
Segment Reporting Information [Line Items]
Revenue	60,080	48,366	38,985
More Personal Computing
Segment Reporting Information [Line Items]
Revenue	$ 54,093	$ 48,251	$ 45,698

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8906-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 4
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130543-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130545-203045

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 924
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-URI http://asc.fasb.org/extlink&oid=6472922&loc=d3e499488-122856

+ Details

Operating Income (Loss) by Segment (Detail) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2019
Segment Reporting Information [Line Items]
Operating Income (Loss)	$ 69,916	$ 52,959	$ 42,959
Productivity and Business Processes
Segment Reporting Information [Line Items]
Operating Income (Loss)	24,351	18,724	16,219
Intelligent Cloud
Segment Reporting Information [Line Items]
Operating Income (Loss)	26,126	18,324	13,920
More Personal Computing
Segment Reporting Information [Line Items]
Operating Income (Loss)	$ 19,439	$ 15,911	$ 12,820

Segment Information and Geographic Data - Additional Information (Detail)	12 Months Ended
	Jun. 30, 2021
Segment Reporting [Abstract]
Sales to an individual customer	No sales to an individual customer or country other than the United States accounted for more than 10% of revenue for fiscal years 2021, 2020, or 2019.

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

12 Months Ended

Jun. 30, 2021

Jun. 30, 2020

Jun. 30, 2019

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

Revenues

$ 168,088

$ 143,015

$ 125,843

United States

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

Revenues

^[1]

83,953

73,160

64,199

Other Countries

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

Revenues

$ 84,135

$ 69,855

$ 61,644

[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.

- Definition

+ References

+ Details

Revenue Classified by Significant Product and Service Offerings (Detail) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2019
Revenue from External Customer [Line Items]
Revenue	$ 168,088	$ 143,015	$ 125,843
Server Products and Cloud Services
Revenue from External Customer [Line Items]
Revenue	52,589	41,379	32,622
Office Products and Cloud Services
Revenue from External Customer [Line Items]
Revenue	39,872	35,316	31,769
Windows
Revenue from External Customer [Line Items]
Revenue	23,227	22,294	20,395
Gaming
Revenue from External Customer [Line Items]
Revenue	15,370	11,575	11,386
LinkedIn
Revenue from External Customer [Line Items]
Revenue	10,289	8,077	6,754
Search Advertising
Revenue from External Customer [Line Items]
Revenue	8,528	7,740	7,628
Devices
Revenue from External Customer [Line Items]
Revenue	6,791	6,457	6,095
Enterprise Services
Revenue from External Customer [Line Items]
Revenue	6,943	6,409	6,124
Other
Revenue from External Customer [Line Items]
Revenue	$ 4,479	$ 3,768	$ 3,070

Revenue Classified by Significant Product and Service Offerings (Parenthetical) (Detail) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2019
Revenue from External Customer [Line Items]
Revenue	$ 168,088	$ 143,015	$ 125,843
Commercial Cloud
Revenue from External Customer [Line Items]
Revenue	$ 69,100	$ 51,700	$ 38,100

- Definition

+ References

+ Details

Long-Lived Assets, Excluding Financial Instruments and Tax Assets, Classified by Location of Controlling Statutory Company (Detail) - USD ($) $ in Millions	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2019
Revenues From External Customers And Long Lived Assets [Line Items]
Long-lived assets	$ 128,314	$ 103,293	$ 93,632
United States
Revenues From External Customers And Long Lived Assets [Line Items]
Long-lived assets	76,153	60,789	55,252
Ireland
Revenues From External Customers And Long Lived Assets [Line Items]
Long-lived assets	13,303	12,734	12,958
Other Countries
Revenues From External Customers And Long Lived Assets [Line Items]
Long-lived assets	$ 38,858	$ 29,770	$ 25,422