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COMPREHENSIVE INCOME STATEMENTS - USD ($) $ in Millions	3 Months Ended		9 Months Ended
COMPREHENSIVE INCOME STATEMENTS - USD ($) $ in Millions	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
Statement of Comprehensive Income [Abstract]
Net income	$ 21,939	$ 18,299	$ 66,100	$ 52,280
Other comprehensive income (loss), net of tax:
Net change related to derivatives	10	(9)	28	(34)
Net change related to investments	(202)	753	869	(796)
Translation adjustments and other	(294)	69	11	(136)
Other comprehensive income (loss)	(486)	813	908	(966)
Comprehensive income	$ 21,453	$ 19,112	$ 67,008	$ 51,314

- Definition

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

+ References

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+ Details

DERIVATIVES

9 Months Ended

Mar. 31, 2024

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.

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 option, futures, and swap 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.

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 counterparty agreements for derivative instruments contain provisions that require our issued and outstanding long-term unsecured debt to maintain an investment grade credit rating and require us to maintain minimum liquidity of $1.0 billion. To the extent we fail to meet these requirements, we will be required to post collateral, similar to the standard convention related to over-the-counter derivatives. As of March 31, 2024, 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)	March 31, 2024		June 30, 2023


Designated as Hedging Instruments

Foreign exchange contracts purchased	$	1,492	$	1,492
Interest rate contracts purchased		1,109		1,078

Not Designated as Hedging Instruments

Foreign exchange contracts purchased		9,245		7,874
Foreign exchange contracts sold		23,116		25,159
Equity contracts purchased		3,939		3,867
Equity contracts sold		2,152		2,154
Other contracts purchased		1,672		1,224
Other contracts sold		767		581

Fair Values of Derivative Instruments

The following table presents our derivative instruments:


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


	March 31, 2024						June 30, 2023

Designated as Hedging Instruments

Foreign exchange contracts	$	38		$	(68	)	$	34		$	(67	)
Interest rate contracts		6			0			16			0

Not Designated as Hedging Instruments

Foreign exchange contracts		121			(192	)		249			(332	)
Equity contracts		72			(526	)		165			(400	)
Other contracts		5			(1	)		5			(6	)


Gross amounts of derivatives		242			(787	)		469			(805	)
Gross amounts of derivatives offset in the balance sheet		(125	)		126			(202	)		206
Cash collateral received		0			(17	)		0			(125	)


Net amounts of derivatives	$	117		$	(678	)	$	267		$	(724	)


Reported as

Short-term investments	$	8		$	0		$	6		$	0
Other current assets		103			0			245			0
Other long-term assets		6			0			16			0
Other current liabilities		0			(271	)		0			(341	)
Other long-term liabilities		0			(407	)		0			(383	)


Total	$	117		$	(678	)	$	267		$	(724	)

Gross derivative assets and liabilities subject to legally enforceable master netting agreements for which we have elected to offset were $226 million and $786 million, respectively, as of March 31, 2024, and $442 million and $804 million, respectively, as of June 30, 2023.

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


(In millions)	Level 1			Level 2		Level 3		Total


March 31, 2024

Derivative assets	$	0	$	233		$	9	$	242
Derivative liabilities		0		(787	)		0		(787	)

June 30, 2023

Derivative assets		0		462			7		469
Derivative liabilities		0		(805	)		0		(805	)

Gains (losses) on derivative instruments recognized in other income (expense), net were as follows:


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


		2024			2023			2024			2023

Designated as Fair Value Hedging Instruments

Interest rate contracts
Derivatives	$	(21	)	$	1		$	(15	)	$	(37	)
Hedged items		10			(15	)		(21	)		20

Designated as Cash Flow Hedging Instruments

Foreign exchange contracts
Amount reclassified from accumulated other comprehensive loss		(37	)		18			(32	)		62

Not Designated as Hedging Instruments

Foreign exchange contracts		299			(10	)		171			(20	)
Equity contracts		(22	)		(61	)		(196	)		(230	)
Other contracts		(8	)		1			(5	)		(34	)

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


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


	2024			2023		2024		2023

Designated as Cash Flow Hedging Instruments

Foreign exchange contracts
Included in effectiveness assessment	$	(19	)	$	5	$	3	$	14

Business Combinations - Additional Information (Detail) - Activision Blizzard, Inc. $ in Billions	Oct. 13, 2023 USD ($)
Business Acquisition [Line Items]
Total consideration transferred	$ 75.4
Acquisition date	Oct. 13, 2023

DEBT

9 Months Ended

Mar. 31, 2024

Debt Disclosure [Abstract]

DEBT

NOTE 10 — DEBT

Short-term Debt

As of March 31, 2024, we had $20.5 billion of commercial paper issued and outstanding, with a weighted average interest rate of 5.4% and maturities ranging from 6 days to 216 days. The estimated fair value of this commercial paper approximates its carrying value. As of June 30, 2023, we had no commercial paper issued or outstanding.

Long-term Debt

The components of long-term debt were as follows:


(In millions, issuance by calendar year)	Maturities (calendar year)				Stated Interest Rate				Effective Interest Rate			March 31, 2024			June 30, 2023


2009 issuance of $3.8 billion				2039				5.20%			5.24%	$	520		$	520
2010 issuance of $4.8 billion				2040				4.50%			4.57%		486			486
2011 issuance of $2.3 billion				2041				5.30%			5.36%		718			718
2012 issuance of $2.3 billion				2042				3.50%			3.57%		454			454
2013 issuance of $5.2 billion				2043		3.75%	–	4.88%	3.83%	–	4.92%		314			1,814
2013 issuance of €4.1 billion		2028	–	2033		2.63%	–	3.13%	2.69%	–	3.22%		2,484			2,509
2015 issuance of $23.8 billion		2025	–	2055		2.70%	–	4.75%	2.77%	–	4.78%		9,805			9,805
2016 issuance of $19.8 billion		2026	–	2056		2.40%	–	3.95%	2.46%	–	4.03%		7,930			9,430
2017 issuance of $17.1 billion (a)		2026	–	2057		3.30%	–	4.50%	3.38%	–	5.49%		6,833			8,945
2020 issuance of $10.1 billion (a)		2030	–	2060		1.35%	–	2.68%	2.53%	–	5.43%		10,111			10,000
2021 issuance of $8.2 billion		2052	–	2062		2.92%	–	3.04%	2.92%	–	3.04%		8,185			8,185
2023 issuance of $3.4 billion (a)		2026	–	2050		1.35%	–	4.50%	5.16%	–	5.49%		3,401			0


Total face value													51,241			52,866
Unamortized discount and issuance costs													(1,246	)		(438	)
Hedge fair value adjustments (b)													(85	)		(106	)
Premium on debt exchange													(5,003	)		(5,085	)


Total debt													44,907			47,237
Current portion of long-term debt													(2,249	)		(5,247	)


Long-term debt												$	42,658		$	41,990

(a)

Includes $3.6 billion of debt at face value related to the Activision Blizzard acquisition. See Note 7 – Business Combinations for further information.

(b)

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

As of March 31, 2024 and June 30, 2023, the estimated fair value of long-term debt, including the current portion, was $43.2 billion and $46.2 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.

The following table outlines maturities of our long-term debt, including the current portion, as of March 31, 2024:


(In millions)


Year Ending June 30,

2024 (excluding the nine months ended March 31, 2024)	$	0
2025		2,250
2026		3,000
2027		9,250
2028		0
Thereafter		36,741


Total	$	51,241

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

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-Paragraph 1C
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-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

+ Details

Carrying Amount of Goodwill (Detail)
$ in Millions

9 Months Ended

Mar. 31, 2024

USD ($)

Goodwill [Line Items]

$ 67,886

51,235

119,163

Productivity and Business Processes

Goodwill [Line Items]

24,775

24,778

Goodwill [Line Items]

30,469

(17)

30,452

More Personal Computing

Goodwill [Line Items]

Beginning Balance

12,642

Acquisitions

51,235

^[1]

Other

^[1]

Ending Balance

$ 63,933

[1]	Includes goodwill of $51.0 billion related to Activision Blizzard. See Note 7 – Business Combinations for further information.

- Definition

Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.

+ References + Details

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

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

Gains (Losses) on Derivative Instruments Recognized in Other Income (Expense), Net (Detail) - Other Income (Expense), Net - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
Foreign Exchange Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Gains (Losses) on Derivatives Not Designated as Hedges	$ 299	$ (10)	$ 171	$ (20)
Equity Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Gains (Losses) on Derivatives Not Designated as Hedges	(22)	(61)	(196)	(230)
Other Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Gains (Losses) on Derivatives Not Designated as Hedges	(8)	1	(5)	(34)
Fair Value Hedges \| Interest Rate Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Derivatives	(21)	1	(15)	(37)
Hedged items	10	(15)	(21)	20
Cash Flow Hedges \| Foreign Exchange Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Amount reclassified from accumulated other comprehensive loss	$ (37)	$ 18	$ (32)	$ 62

Major Classes of Assets and Liabilities Allocated Purchase Price (Detail) - USD ($) $ in Millions	Mar. 31, 2024	Oct. 13, 2023	Jun. 30, 2023
Business Acquisition [Line Items]
Goodwill	$ 119,163		$ 67,886
Activision Blizzard, Inc.
Business Acquisition [Line Items]
Cash and cash equivalents		$ 12,976
Goodwill		50,989
Intangible assets	$ 22,000	21,969
Other assets		2,440
Long-term debt		(2,799)
Long-term income taxes		(1,868)
Deferred income taxes		(4,678)
Other liabilities		(3,623)
Total purchase price		$ 75,406

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

Mar. 31, 2024

Jun. 30, 2023

Finite-Lived Intangible Assets [Line Items]

Gross Carrying Amount

$ 44,369

^[1]

$ 23,490

Accumulated Amortization

(15,541)

(14,124)

Net Carrying Amount

28,828

9,366

Marketing-related

Finite-Lived Intangible Assets [Line Items]

Gross Carrying Amount

16,549

4,935

Accumulated Amortization

(2,945)

(2,473)

Net Carrying Amount

13,604

2,462

Technology-based

Finite-Lived Intangible Assets [Line Items]

Gross Carrying Amount

21,735

11,245

Accumulated Amortization

(9,721)

(7,589)

Net Carrying Amount

12,014

3,656

Customer-related

Finite-Lived Intangible Assets [Line Items]

Gross Carrying Amount

6,049

7,281

Accumulated Amortization

(2,853)

(4,047)

Net Carrying Amount

3,196

3,234

Contract-based

Finite-Lived Intangible Assets [Line Items]

Gross Carrying Amount

Accumulated Amortization

(22)

(15)

Net Carrying Amount

$ 14

[1]	Includes intangible assets of $22.0 billion related to Activision Blizzard. See Note 7 – Business Combinations for further information.

EARNINGS PER SHARE (Tables)

9 Months Ended

Mar. 31, 2024

Earnings Per Share [Abstract]

Basic and Diluted Earnings Per Share

The components of basic and diluted EPS were as follows:


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


	2024		2023			2024		2023

Net income available for common shareholders (A)	$	21,939	$	18,299	$	66,100	$	52,280


Weighted average outstanding shares of common stock (B)		7,431		7,441		7,431		7,450
Dilutive effect of stock-based awards		41		23		36		24


Common stock and common stock equivalents (C)		7,472		7,464		7,467		7,474


Earnings Per Share

Basic (A/B)	$	2.95	$	2.46	$	8.90	$	7.02
Diluted (A/C)	$	2.94	$	2.45	$	8.85	$	6.99

Acquired Intangible Assets (Detail) - Activision Blizzard, Inc. - USD ($) $ in Millions	Oct. 13, 2023	Mar. 31, 2024
Acquired Finite-Lived Intangible Assets [Line Items]
Fair value of intangible assets acquired	$ 21,969	$ 22,000
Weighted Average Life	15 years
Marketing-related
Acquired Finite-Lived Intangible Assets [Line Items]
Fair value of intangible assets acquired	$ 11,619
Weighted Average Life	24 years
Technology-based
Acquired Finite-Lived Intangible Assets [Line Items]
Fair value of intangible assets acquired	$ 9,689
Weighted Average Life	4 years
Customer-related
Acquired Finite-Lived Intangible Assets [Line Items]
Fair value of intangible assets acquired	$ 661
Weighted Average Life	4 years

GOODWILL (Tables)

9 Months Ended

Mar. 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Carrying Amount of Goodwill

Changes in the carrying amount of goodwill were as follows:


(In millions)	June 30, 2023		Acquisitions			Other			March 31, 2024


Productivity and Business Processes	$	24,775	$	0		$	3		$	24,778
Intelligent Cloud		30,469		0			(17	)		30,452
More Personal Computing		12,642		51,235	(a)		56	(a)		63,933


Total	$	67,886	$	51,235		$	42		$	119,163

(a)

Includes goodwill of $51.0 billion related to Activision Blizzard. See Note 7 – Business Combinations for further information.

- Definition

Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 24
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482548/350-20-55-24

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
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-Name Accounting Standards Codification
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-Paragraph 1
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Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
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-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-2

+ Details

INVENTORIES (Tables)

9 Months Ended

Mar. 31, 2024

Inventory Disclosure [Abstract]

Components of Inventories

The components of inventories were as follows:


(In millions)


	March 31, 2024		June 30, 2023

Raw materials	$	341	$	709
Work in process		12		23
Finished goods		951		1,768


Total	$	1,304	$	2,500

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)

9 Months Ended

Mar. 31, 2024

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)	Three Months Ended March 31,							Nine Months Ended March 31,


		2024			2023			2024			2023

Derivatives

Balance, beginning of period	$	(9	)	$	(38	)	$	(27	)	$	(13	)
Unrealized gains (losses), net of tax of $(5), $1, $1, and $3		(19	)		5			3			14

Reclassification adjustments for (gains) losses included in other income (expense), net		37			(18	)		32			(62	)
Tax expense (benefit) included in provision for income taxes		(8	)		4			(7	)		14


Amounts reclassified from accumulated other comprehensive loss		29			(14	)		25			(48	)


Net change related to derivatives, net of tax of $3, $(3), $8, and $(11)		10			(9	)		28			(34	)


Balance, end of period	$	1		$	(47	)	$	1		$	(47	)


Investments

Balance, beginning of period	$	(2,511	)	$	(3,687	)	$	(3,582	)	$	(2,138	)
Unrealized gains (losses), net of tax of $(56), $194, $221, and $(225)		(212	)		732			830			(851	)

Reclassification adjustments for losses included in other income (expense), net		13			26			49			68
Tax benefit included in provision for income taxes		(3	)		(5	)		(10	)		(13	)


Amounts reclassified from accumulated other comprehensive loss		10			21			39			55


Net change related to investments, net of tax of $(53), $199, $231, and $(212)		(202	)		753			869			(796	)


Balance, end of period	$	(2,713	)	$	(2,934	)	$	(2,713	)	$	(2,934	)


Translation Adjustments and Other

Balance, beginning of period	$	(2,429	)	$	(2,732	)	$	(2,734	)	$	(2,527	)
Translation adjustments and other, net of tax of $0, $0, $0, and $0		(294	)		69			11			(136	)


Balance, end of period	$	(2,723	)	$	(2,663	)	$	(2,723	)	$	(2,663	)


Accumulated other comprehensive loss, end of period	$	(5,435	)	$	(5,644	)	$	(5,435	)	$	(5,644	)

INTANGIBLE ASSETS

9 Months Ended

Mar. 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS

NOTE 9 — INTANGIBLE ASSETS

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


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


	March 31, 2024								June 30, 2023

Marketing-related	$	16,549		$	(2,945	)	$	13,604	$	4,935	$	(2,473	)	$	2,462
Technology-based		21,735			(9,721	)		12,014		11,245		(7,589	)		3,656
Customer-related		6,049			(2,853	)		3,196		7,281		(4,047	)		3,234
Contract-based		36			(22	)		14		29		(15	)		14


Total	$	44,369	(a)	$	(15,541	)	$	28,828	$	23,490	$	(14,124	)	$	9,366

(a)

Includes intangible assets of $22.0 billion related to Activision Blizzard. See Note 7 – Business Combinations for further information.

Intangible assets amortization expense was $1.4 billion and $3.4 billion for the three and nine months ended March 31, 2024, respectively, and $612 million and $1.9 billion for the three and nine months ended March 31, 2023, respectively.

The following table outlines the estimated future amortization expense related to intangible assets held as of March 31, 2024:


(In millions)


Year Ending June 30,

2024 (excluding the nine months ended March 31, 2024)	$	1,454
2025		5,860
2026		4,436
2027		2,777
2028		1,869
Thereafter		12,432


Total	$	28,828

Finite-Lived Intangible Assets (Parenthetical) (Detail) - USD ($) $ in Millions	Mar. 31, 2024	Oct. 13, 2023
Activision Blizzard, Inc.
Finite-Lived Intangible Assets [Line Items]
Intangible assets	$ 22,000	$ 21,969

Unearned Revenue - Additional Information (Detail) $ in Billions	Mar. 31, 2024 USD ($)
Contract With Customer Liability [Line Items]
Revenue allocated to remaining performance obligations	$ 242
Commercial Customers
Contract With Customer Liability [Line Items]
Revenue allocated to remaining performance obligations	$ 235

BALANCE SHEETS - USD ($) $ in Millions	Mar. 31, 2024	Jun. 30, 2023
Current assets:
Cash and cash equivalents	$ 19,634	$ 34,704
Short-term investments	60,387	76,558
Total cash, cash equivalents, and short-term investments	80,021	111,262
Accounts receivable, net of allowance for doubtful accounts of $616 and $650	44,029	48,688
Inventories	1,304	2,500
Other current assets	21,826	21,807
Total current assets	147,180	184,257
Property and equipment, net of accumulated depreciation of $74,945 and $68,251	121,375	95,641
Operating lease right-of-use assets	17,371	14,346
Equity and other investments	14,807	9,879
Goodwill	119,163	67,886
Intangible assets, net	28,828	9,366
Other long-term assets	35,551	30,601
Total assets	484,275	411,976
Current liabilities:
Accounts payable	18,087	18,095
Short-term debt	20,535	0
Current portion of long-term debt	2,249	5,247
Accrued compensation	10,432	11,009
Short-term income taxes	7,311	4,152
Short-term unearned revenue	41,888	50,901
Other current liabilities	18,023	14,745
Total current liabilities	118,525	104,149
Long-term debt	42,658	41,990
Long-term income taxes	26,786	25,560
Long-term unearned revenue	2,945	2,912
Deferred income taxes	2,469	433
Operating lease liabilities	14,469	12,728
Other long-term liabilities	23,271	17,981
Total liabilities	231,123	205,753
Commitments and contingencies
Stockholders’ equity:
Common stock and paid-in capital - shares authorized 24,000; outstanding 7,433 and 7,432	99,193	93,718
Retained earnings	159,394	118,848
Accumulated other comprehensive loss	(5,435)	(6,343)
Total stockholders’ equity	253,152	206,223
Total liabilities and stockholders’ equity	$ 484,275	$ 411,976

SEGMENT INFORMATION AND GEOGRAPHIC DATA (Tables)

9 Months Ended

Mar. 31, 2024

Segment Reporting [Abstract]

Segment Revenue

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


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


		2024		2023	2024		2023

Revenue

Productivity and Business Processes	$	19,570	$	17,516	$	57,411	$	50,983
Intelligent Cloud		26,708		22,081		76,847		63,914
More Personal Computing		15,580		13,260		46,137		40,829


Total	$	61,858	$	52,857	$	180,395	$	155,726


Operating Income

Productivity and Business Processes	$	10,143	$	8,639	$	30,397	$	25,137
Intelligent Cloud		12,513		9,476		36,725		27,358
More Personal Computing		4,925		4,237		14,386		11,774


Total	$	27,581	$	22,352	$	81,508	$	64,269

Segment Operating Income (Loss)

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


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


		2024		2023	2024		2023

Revenue

Productivity and Business Processes	$	19,570	$	17,516	$	57,411	$	50,983
Intelligent Cloud		26,708		22,081		76,847		63,914
More Personal Computing		15,580		13,260		46,137		40,829


Total	$	61,858	$	52,857	$	180,395	$	155,726


Operating Income

Productivity and Business Processes	$	10,143	$	8,639	$	30,397	$	25,137
Intelligent Cloud		12,513		9,476		36,725		27,358
More Personal Computing		4,925		4,237		14,386		11,774


Total	$	27,581	$	22,352	$	81,508	$	64,269

Revenue Classified by Major Geographic Areas

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


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


		2024		2023	2024		2023

United States (a)	$	31,437	$	26,007	$	92,544	$	78,850
Other countries		30,421		26,850		87,851		76,876


Total	$	61,858	$	52,857	$	180,395	$	155,726

(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, classified by significant product and service offerings, was as follows:


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


		2024		2023	2024		2023

Server products and cloud services	$	24,832	$	20,025	$	71,093	$	58,007
Office products and cloud services		13,911		12,468		40,528		35,912
Windows		5,929		5,328		16,758		15,449
Gaming		5,451		3,607		16,481		11,975
LinkedIn		4,013		3,659		12,121		11,120
Search and news advertising		3,134		3,036		9,407		9,158
Enterprise and partner services		1,861		2,047		5,722		5,883
Dynamics products and cloud services		1,646		1,389		4,762		3,951
Devices		1,067		1,282		3,490		4,160
Other		14		16		33		111


Total	$	61,858	$	52,857	$	180,395	$	155,726

We have recast certain prior period amounts to conform to the way we internally manage and monitor our business.

Our Microsoft Cloud revenue, which includes Azure and other cloud services, Office 365 Commercial, the commercial portion of LinkedIn, Dynamics 365, and other commercial cloud properties, was $35.1 billion and $100.6 billion for the three and nine months ended March 31, 2024, respectively, and $28.5 billion and $81.3 billion for the three and nine months ended March 31, 2023, respectively. These amounts are primarily included in Server products and cloud services, Office products and cloud services, LinkedIn, and Dynamics products and cloud services in the table above.

Revenue Classified by Significant Product and Service Offerings (Parenthetical) (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
Revenue from External Customer [Line Items]
Revenue	$ 61,858	$ 52,857	$ 180,395	$ 155,726
Microsoft Cloud
Revenue from External Customer [Line Items]
Revenue	$ 35,100	$ 28,500	$ 100,600	$ 81,300

- 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
-Topic 924
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-Name Accounting Standards Codification
-Section S99
-Paragraph 1
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+ Details

Notional Amounts of Outstanding Derivative Instruments Measured in U.S. Dollar Equivalents (Detail) - USD ($) $ in Millions	Mar. 31, 2024	Jun. 30, 2023
Designated as Hedging Instruments \| Foreign Exchange Contracts \| Derivatives Purchased
Derivative [Line Items]
Notional amounts	$ 1,492	$ 1,492
Designated as Hedging Instruments \| Interest Rate Contracts \| Derivatives Purchased
Derivative [Line Items]
Notional amounts	1,109	1,078
Not Designated as Hedging Instruments \| Foreign Exchange Contracts \| Derivatives Purchased
Derivative [Line Items]
Notional amounts	9,245	7,874
Not Designated as Hedging Instruments \| Foreign Exchange Contracts \| Derivatives Sold
Derivative [Line Items]
Notional amounts	23,116	25,159
Not Designated as Hedging Instruments \| Equity Contracts \| Derivatives Purchased
Derivative [Line Items]
Notional amounts	3,939	3,867
Not Designated as Hedging Instruments \| Equity Contracts \| Derivatives Sold
Derivative [Line Items]
Notional amounts	2,152	2,154
Not Designated as Hedging Instruments \| Other Contracts \| Derivatives Purchased
Derivative [Line Items]
Notional amounts	1,672	1,224
Not Designated as Hedging Instruments \| Other Contracts \| Derivatives Sold
Derivative [Line Items]
Notional amounts	$ 767	$ 581

INVENTORIES

9 Months Ended

Mar. 31, 2024

Inventory Disclosure [Abstract]

INVENTORIES

NOTE 6 — INVENTORIES

The components of inventories were as follows:


(In millions)


	March 31, 2024		June 30, 2023

Raw materials	$	341	$	709
Work in process		12		23
Finished goods		951		1,768


Total	$	1,304	$	2,500

UNEARNED REVENUE (Tables)

9 Months Ended

Mar. 31, 2024

Revenue from Contract with Customer [Abstract]

Unearned Revenue by Segment

Unearned revenue by segment was as follows:


(In millions)


	March 31, 2024		June 30, 2023

Productivity and Business Processes	$	22,929	$	27,572
Intelligent Cloud		16,696		21,563
More Personal Computing		5,208		4,678


Total	$	44,833	$	53,813

Changes in Unearned Revenue

Changes in unearned revenue were as follows:


(In millions)


Nine Months Ended March 31, 2024

Balance, beginning of period	$	53,813
Deferral of revenue		94,800
Recognition of unearned revenue		(103,780	)


Balance, end of period	$	44,833

STOCKHOLDERS' EQUITY STATEMENTS - USD ($) $ in Millions	Total	Common stock and paid-in capital	Retained earnings	Accumulated other comprehensive loss
Balance, beginning of period at Jun. 30, 2022		$ 86,939	$ 84,281	$ (4,678)
Common stock issued		1,354
Net income	$ 52,280		52,280
Other comprehensive income (loss)	(966)			(966)
Common stock cash dividends	(15,179)		(15,176)
Common stock repurchased		(3,394)	(13,151)
Stock-based compensation expense		7,195
Other, net		(1)
Balance, end of period at Mar. 31, 2023	$ 194,683	92,093	108,234	(5,644)
Cash dividends declared per common share	$ 2.04
Balance, beginning of period at Dec. 31, 2022		90,225	99,368	(6,457)
Common stock issued		536
Net income	$ 18,299		18,299
Other comprehensive income (loss)	813			813
Common stock cash dividends	(5,054)		(5,053)
Common stock repurchased		(1,133)	(4,380)
Stock-based compensation expense		2,465
Other, net		0
Balance, end of period at Mar. 31, 2023	$ 194,683	92,093	108,234	(5,644)
Cash dividends declared per common share	$ 0.68
Balance, beginning of period at Jun. 30, 2023	$ 206,223	93,718	118,848	(6,343)
Common stock issued		1,468
Net income	66,100		66,100
Other comprehensive income (loss)	908			908
Common stock cash dividends	(16,721)		(16,718)
Common stock repurchased		(4,213)	(8,836)
Stock-based compensation expense		8,038
Other, net		182
Balance, end of period at Mar. 31, 2024	$ 253,152	99,193	159,394	(5,435)
Cash dividends declared per common share	$ 2.25
Balance, beginning of period at Dec. 31, 2023		97,480	145,737	(4,949)
Common stock issued		522
Net income	$ 21,939		21,939
Other comprehensive income (loss)	(486)			(486)
Common stock cash dividends	(5,574)		(5,573)
Common stock repurchased		(1,512)	(2,709)
Stock-based compensation expense		2,703
Other, net		0
Balance, end of period at Mar. 31, 2024	$ 253,152	$ 99,193	$ 159,394	$ (5,435)
Cash dividends declared per common share	$ 0.75

- Definition

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

+ References

+ Details

- Definition

Equity impact of the value of new stock issued during the period. Includes shares issued in an initial public offering or a secondary public offering.

+ References + Details

- Definition

Equity impact of the value of stock that has been repurchased during the period and has not been retired and is not held in treasury. Some state laws may mandate the circumstances under which an entity may acquire its own stock and prescribe the accounting treatment therefore. This element is used when state law does not recognize treasury stock.

+ References + Details

- Definition

Amount of equity (deficit) attributable to parent. Excludes temporary equity and equity attributable to noncontrolling interest.

+ References

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+ Details

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

Mar. 31, 2024

Jun. 30, 2023

Cash Cash Equivalents And Investments [Line Items]

Debt investments, Adjusted Cost Basis

$ 73,113

Debt investments, Recorded Basis

69,674

Derivative, net

117

$ 267

Cash and cash equivalents

19,634

34,704

Short-term Investments

60,387

76,558

Equity and other investments

14,807

9,879

Cash, cash equivalents, and investments

94,828

121,141

Equity Securities

Cash Cash Equivalents And Investments [Line Items]

Equity investments, Recorded Basis

13,565

17,325

Cash and cash equivalents

258

7,446

Short-term Investments

Equity and other investments

13,307

9,879

Equity Securities | Other

Cash Cash Equivalents And Investments [Line Items]

Equity investments, Recorded Basis

10,225

7,187

Cash and cash equivalents

Short-term Investments

Equity and other investments

10,225

7,187

Equity Securities | Level 1

Cash Cash Equivalents And Investments [Line Items]

Equity investments, Recorded Basis

3,340

10,138

Cash and cash equivalents

258

7,446

Short-term Investments

Equity and other investments

3,082

2,692

Cash

Cash Cash Equivalents And Investments [Line Items]

Cash

11,581

8,478

Cash and cash equivalents

11,581

8,478

Short-term Investments

Equity and other investments

Derivatives, net

Cash Cash Equivalents And Investments [Line Items]

Derivative, net

^[1]

Cash and cash equivalents

^[1]

Short-term Investments

^[1]

Equity and other investments

^[1]

Debt Securities

Cash Cash Equivalents And Investments [Line Items]

Debt investments, Adjusted Cost Basis

73,113

99,869

Debt investments, Unrealized Gains

Debt investments, Unrealized Losses

(3,491)

(4,550)

Debt investments, Recorded Basis

69,674

95,332

Cash and cash equivalents

7,795

18,780

Short-term Investments

60,379

76,552

Equity and other investments

1,500

Debt Securities | Commercial Paper | Level 2

Cash Cash Equivalents And Investments [Line Items]

Debt investments, Adjusted Cost Basis

5,535

16,589

Debt investments, Unrealized Gains

Debt investments, Unrealized Losses

Debt investments, Recorded Basis

5,535

16,589

Cash and cash equivalents

5,535

12,231

Short-term Investments

4,358

Equity and other investments

Debt Securities | Certificates of deposit | Level 2

Cash Cash Equivalents And Investments [Line Items]

Debt investments, Adjusted Cost Basis

2,300

2,701

Debt investments, Unrealized Gains

Debt investments, Unrealized Losses

Debt investments, Recorded Basis

2,300

2,701

Cash and cash equivalents

2,256

2,657

Short-term Investments

Equity and other investments

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

Cash Cash Equivalents And Investments [Line Items]

Debt investments, Adjusted Cost Basis

52,036

65,237

Debt investments, Unrealized Gains

Debt investments, Unrealized Losses

(3,074)

(3,870)

Debt investments, Recorded Basis

48,965

61,369

Cash and cash equivalents

2,991

Short-term Investments

48,961

58,378

Equity and other investments

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

Cash Cash Equivalents And Investments [Line Items]

Debt investments, Adjusted Cost Basis

2,703

Debt investments, Unrealized Gains

Debt investments, Unrealized Losses

Debt investments, Recorded Basis

2,703

Cash and cash equivalents

894

Short-term Investments

1,809

Equity and other investments

Debt Securities | Foreign government bonds | Level 2

Cash Cash Equivalents And Investments [Line Items]

Debt investments, Adjusted Cost Basis

352

498

Debt investments, Unrealized Gains

Debt investments, Unrealized Losses

(12)

(24)

Debt investments, Recorded Basis

344

475

Cash and cash equivalents

Short-term Investments

344

475

Equity and other investments

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

Cash Cash Equivalents And Investments [Line Items]

Debt investments, Adjusted Cost Basis

980

824

Debt investments, Unrealized Gains

Debt investments, Unrealized Losses

(34)

(39)

Debt investments, Recorded Basis

950

786

Cash and cash equivalents

Short-term Investments

950

786

Equity and other investments

Debt Securities | Corporate notes and bonds | Level 2

Cash Cash Equivalents And Investments [Line Items]

Debt investments, Adjusted Cost Basis

9,874

10,809

Debt investments, Unrealized Gains

Debt investments, Unrealized Losses

(340)

(583)

Debt investments, Recorded Basis

9,574

10,234

Cash and cash equivalents

Short-term Investments

9,574

10,234

Equity and other investments

Debt Securities | Corporate notes and bonds | Level 3

Cash Cash Equivalents And Investments [Line Items]

Debt investments, Adjusted Cost Basis

1,646

120

Debt investments, Unrealized Gains

Debt investments, Unrealized Losses

(1)

Debt investments, Recorded Basis

1,645

120

Cash and cash equivalents

Short-term Investments

145

120

Equity and other investments

1,500

Debt Securities | Municipal securities | Level 2

Cash Cash Equivalents And Investments [Line Items]

Debt investments, Adjusted Cost Basis

263

285

Debt investments, Unrealized Gains

Debt investments, Unrealized Losses

(14)

(18)

Debt investments, Recorded Basis

250

268

Cash and cash equivalents

Short-term Investments

250

261

Equity and other investments

Debt Securities | Municipal securities | Level 3

Cash Cash Equivalents And Investments [Line Items]

Debt investments, Adjusted Cost Basis

104

103

Debt investments, Unrealized Gains

Debt investments, Unrealized Losses

(16)

Debt investments, Recorded Basis

Cash and cash equivalents

Short-term Investments

Equity and other investments

$ 0

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

LEASES

9 Months Ended

Mar. 31, 2024

Leases [Abstract]

LEASES

NOTE 13 — 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 less than 1 year to 17 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)	Three Months Ended March 31,					Nine Months Ended March 31,


		2024		2023		2024		2023

Operating lease cost	$	882	$	766	$	2,473	$	2,112


Finance lease cost:
Amortization of right-of-use assets	$	453	$	348	$	1,241	$	994
Interest on lease liabilities		190		132		507		364


Total finance lease cost	$	643	$	480	$	1,748	$	1,358

Supplemental cash flow information related to leases was as follows:


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


		2024		2023		2024		2023

Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	836	$	690	$	2,433	$	1,989
Operating cash flows from finance leases		190		132		507		364
Financing cash flows from finance leases		323		272		896		790

Right-of-use assets obtained in exchange for lease obligations:
Operating leases		1,831		663		4,482		2,377
Finance leases		3,421		1,044		6,921		2,253

Supplemental balance sheet information related to leases was as follows:


(In millions, except lease term and discount rate)


	March 31, 2024			June 30, 2023

Operating Leases

Operating lease right-of-use assets	$	17,371		$	14,346


Other current liabilities	$	3,413		$	2,409
Operating lease liabilities		14,469			12,728


Total operating lease liabilities	$	17,882		$	15,137


Finance Leases

Property and equipment, at cost	$	27,328		$	20,538
Accumulated depreciation		(5,865	)		(4,647	)


Property and equipment, net	$	21,463		$	15,891


Other current liabilities	$	1,869		$	1,197
Other long-term liabilities		21,036			15,870


Total finance lease liabilities	$	22,905		$	17,067


Weighted Average Remaining Lease Term

Operating leases		8 years			8 years
Finance leases		12 years			11 years

Weighted Average Discount Rate

Operating leases		3.3%			2.9%
Finance leases		3.8%			3.4%

The following table outlines maturities of our lease liabilities as of March 31, 2024:


(In millions)


Year Ending June 30,	Operating Leases			Finance Leases

2024 (excluding the nine months ended March 31, 2024)	$	956		$	560
2025		3,566			2,694
2026		3,076			2,398
2027		2,608			2,409
2028		2,100			2,409
Thereafter		7,812			18,058


Total lease payments		20,118			28,528
Less imputed interest		(2,236	)		(5,623	)


Total	$	17,882		$	22,905

As of March 31, 2024, we had additional operating and finance leases, primarily for datacenters, that had not yet commenced of $8.4 billion and $87.8 billion, respectively. These operating and finance leases will commence between fiscal year 2024 and fiscal year 2030 with lease terms of 1 year to 20 years.

INVESTMENTS (Tables)

9 Months Ended

Mar. 31, 2024

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 and Other Investments


March 31, 2024

Changes in Fair Value Recorded in Other Comprehensive Income

Commercial paper	Level 2	$	5,535	$	0	$	0		$	5,535	$	5,535	$	0	$	0
Certificates of deposit	Level 2		2,300		0		0			2,300		2,256		44		0
U.S. government securities	Level 1		52,036		3		(3,074	)		48,965		4		48,961		0
U.S. agency securities	Level 2		23		0		0			23		0		23		0
Foreign government bonds	Level 2		352		4		(12	)		344		0		344		0
Mortgage- and asset-backed securities	Level 2		980		4		(34	)		950		0		950		0
Corporate notes and bonds	Level 2		9,874		40		(340	)		9,574		0		9,574		0
Corporate notes and bonds	Level 3		1,646		0		(1	)		1,645		0		145		1,500
Municipal securities	Level 2		263		1		(14	)		250		0		250		0
Municipal securities	Level 3		104		0		(16	)		88		0		88		0


Total debt investments		$	73,113	$	52	$	(3,491	)	$	69,674	$	7,795	$	60,379	$	1,500


Changes in Fair Value Recorded in Net Income

Equity investments	Level 1								$	3,340	$	258	$	0	$	3,082
Equity investments	Other									10,225		0		0		10,225


Total equity investments									$	13,565	$	258	$	0	$	13,307


Cash									$	11,581	$	11,581	$	0	$	0
Derivatives, net (a)										8		0		8		0


Total									$	94,828	$	19,634	$	60,387	$	14,807


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


June 30, 2023

Changes in Fair Value Recorded in Other Comprehensive Income

Commercial paper	Level 2	$	16,589	$	0	$	0		$	16,589	$	12,231	$	4,358	$	0
Certificates of deposit	Level 2		2,701		0		0			2,701		2,657		44		0
U.S. government securities	Level 1		65,237		2		(3,870	)		61,369		2,991		58,378		0
U.S. agency securities	Level 2		2,703		0		0			2,703		894		1,809		0
Foreign government bonds	Level 2		498		1		(24	)		475		0		475		0
Mortgage- and asset-backed securities	Level 2		824		1		(39	)		786		0		786		0
Corporate notes and bonds	Level 2		10,809		8		(583	)		10,234		0		10,234		0
Corporate notes and bonds	Level 3		120		0		0			120		0		120		0
Municipal securities	Level 2		285		1		(18	)		268		7		261		0
Municipal securities	Level 3		103		0		(16	)		87		0		87		0


Total debt investments		$	99,869	$	13	$	(4,550	)	$	95,332	$	18,780	$	76,552	$	0


Changes in Fair Value Recorded in Net Income

Equity investments	Level 1								$	10,138	$	7,446	$	0	$	2,692
Equity investments	Other									7,187		0		0		7,187


Total equity investments									$	17,325	$	7,446	$	0	$	9,879


Cash									$	8,478	$	8,478	$	0	$	0
Derivatives, net (a)										6		0		6		0


Total									$	121,141	$	34,704	$	76,558	$	9,879

(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


March 31, 2024

U.S. government and agency securities	$	650	$	(17	)	$	48,044	$	(3,057	)	$	48,694	$	(3,074	)
Foreign government bonds		40		0			226		(12	)		266		(12	)
Mortgage- and asset-backed securities		264		(4	)		339		(30	)		603		(34	)
Corporate notes and bonds		1,000		(9	)		6,435		(332	)		7,435		(341	)
Municipal securities		44		(1	)		237		(29	)		281		(30	)


Total	$	1,998	$	(31	)	$	55,281	$	(3,460	)	$	57,279	$	(3,491	)


	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, 2023

U.S. government and agency securities	$	7,950	$	(336	)	$	45,273	$	(3,534	)	$	53,223	$	(3,870	)
Foreign government bonds		77		(5	)		391		(19	)		468		(24	)
Mortgage- and asset-backed securities		257		(5	)		412		(34	)		669		(39	)
Corporate notes and bonds		2,326		(49	)		7,336		(534	)		9,662		(583	)
Municipal securities		111		(3	)		186		(31	)		297		(34	)


Total	$	10,721	$	(398	)	$	53,598	$	(4,152	)	$	64,319	$	(4,550	)

Debt Investment Maturities

The following table outlines maturities of our debt investments as of March 31, 2024:


(In millions)	Adjusted Cost Basis		Estimated Fair Value


March 31, 2024

Due in one year or less	$	19,613	$	19,428
Due after one year through five years		42,885		40,676
Due after five years through 10 years		9,230		8,304
Due after 10 years		1,385		1,266


Total	$	73,113	$	69,674

Components of Long-term Debt (Parenthetical) (Detail) - 9 months ended Mar. 31, 2024
€ in Billions, $ in Billions

EUR (€)

USD ($)

Activision Blizzard, Inc.

Debt Instrument [Line Items]

Debt, face value

$ 3.6

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 $17.1 billion

Debt Instrument [Line Items]

Debt, issuance date

^[1]

2017

Debt, face value

^[1]

17.1

2020 Issuance of $10.1 billion

Debt Instrument [Line Items]

Debt, issuance date

^[1]

2020

Debt, face value

^[1]

10.1

2021 issuance of $8.2 billion

Debt Instrument [Line Items]

Debt, issuance date

2021

Debt, face value

8.2

2023 issuance of $3.4 billion

Debt Instrument [Line Items]

Debt, issuance date

^[1]

2023

Debt, face value

^[1]

$ 3.4

[1]	Includes $3.6 billion of debt at face value related to the Activision Blizzard acquisition. See Note 7 – Business Combinations for further information.

Contingencies - Additional Information (Detail) $ in Millions	Mar. 31, 2024 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Accrual for disclosed loss contingencies, current, ending balance	$ 665
Amount not accrued for estimated maximum losses for disclosed loss contingencies	$ 600

INCOME TAXES

9 Months Ended

Mar. 31, 2024

Income Tax Disclosure [Abstract]

INCOME TAXES

NOTE 11 — INCOME TAXES

Effective Tax Rate

Our effective tax rate was 18% and 19% for the three months ended March 31, 2024 and 2023, respectively, and 18% and 19% for the nine months ended March 31, 2024 and 2023, respectively. The decrease in our effective tax rate for the three and nine months ended March 31, 2024 compared to the prior year was primarily due to increased tax benefits from stock-based compensation and tax benefits from tax law changes, including the impact from the issuance of Notice 2023-55 and Notice 2023-80 by the Internal Revenue Service (“IRS”) and U.S. Treasury Department. Notice 2023-55, issued in the first quarter of fiscal year 2024, delayed the effective date of final foreign tax credit regulations to fiscal year 2024 for Microsoft. Notice 2023-80, issued in the second quarter of fiscal year 2024, further delayed the effective date of final foreign tax credit regulations indefinitely.

Our effective tax rate was lower than the U.S. federal statutory rate for the three and nine months ended March 31, 2024, 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 center in Ireland.

Uncertain Tax Positions

As of March 31, 2024 and June 30, 2023, unrecognized tax benefits and other income tax liabilities were $23.8 billion and $18.7 billion, respectively, and are included in long-term income taxes in our consolidated balance sheets. The balance as of March 31, 2024 includes $1.9 billion of acquired unrecognized tax benefits and other income tax liabilities due to the acquisition of Activision Blizzard. See Note 7 – Business Combinations for further information.

We remain under audit by the IRS for tax years 2014 to 2017. With respect to the audit for tax years 2004 to 2013, on September 26, 2023, we received Notices of Proposed Adjustment (“NOPAs”) from the IRS. The primary issues in the NOPAs relate to intercompany transfer pricing. In the NOPAs, the IRS is seeking an additional tax payment of $28.9 billion plus penalties and interest. As of March 31, 2024, we believe our allowances for income tax contingencies are adequate. We disagree with the proposed adjustments and will vigorously contest the NOPAs through the IRS’s administrative appeals office and, if necessary, judicial proceedings. We 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 income 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 2023, 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

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
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-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
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-Paragraph 1
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-SubTopic 10
-Name Accounting Standards Codification
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-Paragraph 14
-Publisher FASB
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Section 50
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
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-Name Accounting Standards Codification
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+ Details

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Mar. 31, 2024
Trading Arrangements, by Individual
Material Terms of Trading Arrangement	Insider Trading Arrangements Our Section 16 officers and directors, as defined in Rule 16a-1(f) of the Securities Exchange Act of 1934 (the “Exchange Act”), may from time to time enter into plans for the purchase or sale of our common stock that are intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) of the Exchange Act. During the quarter ended March 31, 2024, the following Section 16 officers and directors adopted, modified, or terminated “Rule 10b5-1 trading arrangements” (as defined in Item 408 of Regulation S-K of the Exchange Act): • Takeshi Numoto, our Executive Vice President and Chief Marketing Officer, adopted a new written trading plan on February 6, 2024. The plan’s maximum duration is until August 6, 2024. The first trade will not occur until May 30, 2024, at the earliest. The trading plan is intended to permit Mr. Numoto to sell (i) 100% of net vested shares of our common stock pursuant to a Restricted Stock Award that will vest on May 30, 2024, and (ii) 100% of net vested shares of our common stock pursuant to Restricted Stock Awards that will vest on May 31, 2024. No other officers or directors, as defined in Rule 16a-1(f), adopted, modified, or terminated a “Rule 10b5-1 trading arrangement” or a “non-Rule 10b5-1 trading arrangement,” as defined in Item 408 of Regulation S-K, during the three months ended March 31, 2024.
Takeshi Numoto [Member]
Trading Arrangements, by Individual
Name	Takeshi Numoto
Title	Executive Vice President and Chief Marketing Officer
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	February 6, 2024
Termination Date	August 6, 2024
Arrangement Duration	182 days
Other Officers or Directors [Member]
Trading Arrangements, by Individual
Title	officers or directors
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false
Rule 10b5-1 Arrangement Modified	false
Non-Rule 10b5-1 Arrangement Modified	false

Stockholders' Equity - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023	Sep. 14, 2021
Share Repurchases [Line Items]
Amount of shares repurchased to settle employee tax withholding related to vesting of stock awards	$ 1,400,000,000	$ 909,000,000	$ 3,900,000,000	$ 2,700,000,000
Share Repurchase Program 2021
Share Repurchases [Line Items]
Amount available for repurchase under the share repurchase program approved by the company's Board of Directors					$ 60,000,000,000
Unused amount of share repurchase program	$ 13,100,000,000		$ 13,100,000,000

Dividends Declared (Detail) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended						9 Months Ended
	Mar. 31, 2024	Dec. 31, 2023	Sep. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Sep. 30, 2022	Mar. 31, 2024	Mar. 31, 2023
Equity [Abstract]
Declaration Date	Mar. 12, 2024	Nov. 28, 2023	Sep. 19, 2023	Mar. 14, 2023	Nov. 29, 2022	Sep. 20, 2022
Record Date	May 16, 2024	Feb. 15, 2024	Nov. 16, 2023	May 18, 2023	Feb. 16, 2023	Nov. 17, 2022
Payment Date	Jun. 13, 2024	Mar. 14, 2024	Dec. 14, 2023	Jun. 08, 2023	Mar. 09, 2023	Dec. 08, 2022
Dividend Per Share	$ 0.75	$ 0.75	$ 0.75	$ 0.68	$ 0.68	$ 0.68	$ 2.25	$ 2.04
Amount	$ 5,574	$ 5,573	$ 5,574	$ 5,054	$ 5,059	$ 5,066	$ 16,721	$ 15,179

Revenue Classified by Significant Product and Service Offerings (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
Revenue from External Customer [Line Items]
Revenue	$ 61,858	$ 52,857	$ 180,395	$ 155,726
Server Products and Cloud Services
Revenue from External Customer [Line Items]
Revenue	24,832	20,025	71,093	58,007
Office Products and Cloud Services
Revenue from External Customer [Line Items]
Revenue	13,911	12,468	40,528	35,912
Windows
Revenue from External Customer [Line Items]
Revenue	5,929	5,328	16,758	15,449
Gaming
Revenue from External Customer [Line Items]
Revenue	5,451	3,607	16,481	11,975
LinkedIn
Revenue from External Customer [Line Items]
Revenue	4,013	3,659	12,121	11,120
Search and News Advertising
Revenue from External Customer [Line Items]
Revenue	3,134	3,036	9,407	9,158
Enterprise and Partner Services
Revenue from External Customer [Line Items]
Revenue	1,861	2,047	5,722	5,883
Dynamics Products and Cloud Services
Revenue from External Customer [Line Items]
Revenue	1,646	1,389	4,762	3,951
Devices
Revenue from External Customer [Line Items]
Revenue	1,067	1,282	3,490	4,160
Other
Revenue from External Customer [Line Items]
Revenue	$ 14	$ 16	$ 33	$ 111

BUSINESS COMBINATIONS

9 Months Ended

Mar. 31, 2024

Business Combinations [Abstract]

BUSINESS COMBINATIONS

NOTE 7 — BUSINESS COMBINATIONS

Activision Blizzard, Inc.

On October 13, 2023, we completed our acquisition of Activision Blizzard, Inc. (“Activision Blizzard”) for a total purchase price of $75.4 billion, consisting primarily of cash. Activision Blizzard is a leader in game development and an interactive entertainment content publisher. The acquisition will accelerate the growth in our gaming business across mobile, PC, console, and cloud gaming. The financial results of Activision Blizzard have been included in our consolidated financial statements since the date of the acquisition. Activision Blizzard 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 primary areas that remain preliminary relate to the fair values of goodwill, intangible assets, and income taxes.

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	$	12,976
Goodwill		50,989
Intangible assets		21,969
Other assets		2,440
Long-term debt		(2,799	)
Long-term income taxes		(1,868	)
Deferred income taxes		(4,678	)
Other liabilities		(3,623	)


Total purchase price	$	75,406

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 Activision Blizzard. Substantially all of the goodwill is expected to be non-deductible for income tax purposes.

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


(In millions, except average life)	Amount		Weighted Average Life


Marketing-related	$	11,619		24 years
Technology-based		9,689		4 years
Customer-related		661		4 years


Fair value of intangible assets acquired	$	21,969		15 years

Following is the net impact of the Activision Blizzard acquisition on our consolidated income statements since the date of acquisition:


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


	2024				2024

Revenue	$	1,969		$	4,053
Operating loss		(353	)		(790	)

The change of Activision Blizzard content from third-party to first-party is reflected in the net impact.

Following are the supplemental consolidated financial results of Microsoft Corporation on an unaudited pro forma basis, as if the acquisition had been consummated on July 1, 2022:


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


	2024		2023			2024		2023

Revenue	$	61,856	$	54,945	$	182,717	$	161,745
Net income		21,931		18,258		66,278		51,536
Diluted earnings per share		2.94		2.45		8.88		6.90

These pro forma results were based on estimates and assumptions, which we believe are reasonable. They are not the results that would have been realized had we been a combined company during the periods presented and are not necessarily indicative of our consolidated results of operations in future periods. The pro forma results include adjustments related to purchase accounting, primarily amortization of intangible assets. Acquisition costs and other nonrecurring charges were immaterial and are included in the earliest period presented.

CONTINGENCIES

9 Months Ended

Mar. 31, 2024

Commitments and Contingencies Disclosure [Abstract]

CONTINGENCIES

NOTE 14 — CONTINGENCIES

U.S. Cell Phone Litigation

Microsoft Mobile Oy, a subsidiary of Microsoft, along with other handset manufacturers and network operators, is a defendant in 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. Twelve of these cases were 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 were stricken by the court. A hearing on general causation took place in September of 2022. In April of 2023, the court granted defendants’ motion to strike the testimony of plaintiffs’ experts that cell phones cause brain cancer and entered an order excluding all of plaintiffs’ experts from testifying. The parties agreed to a stipulated dismissal of the consolidated cases to allow plaintiffs to appeal the expert testimony order. Plaintiffs appealed the court’s order in August of 2023, and the parties have filed their briefs on the appeal. A hearing on the status of the stayed cases occurred in December of 2023.

Irish Data Protection Commission Matter

In 2018, the Irish Data Protection Commission (“IDPC”) began investigating a complaint against LinkedIn as to whether LinkedIn’s targeted advertising practices violated the recently implemented European Union General Data Protection Regulation (“GDPR”). Microsoft cooperated throughout the period of inquiry. In April 2023, the IDPC provided LinkedIn with a non-public preliminary draft decision alleging GDPR violations and proposing a fine. Microsoft intends to challenge the preliminary draft decision. There is no set timeline for the IDPC to issue a final decision.

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 March 31, 2024, we accrued aggregate legal liabilities of $665 million. While we intend to defend these matters vigorously, adverse outcomes that we estimate could reach approximately $600 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.

Gains (losses), Net of Tax, on Derivative Instruments Recognized in Consolidated Comprehensive Income Statements (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
Cash Flow Hedges \| Foreign Exchange Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Included in effectiveness assessment	$ (19)	$ 5	$ 3	$ 14

Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible assets amortization expense	$ 1,400	$ 612	$ 3,400	$ 1,900

Leases - Additional Information (Detail) $ in Billions	9 Months Ended
Leases - Additional Information (Detail) $ in Billions	Mar. 31, 2024 USD ($)
Operating Lease
Leases [Line Items]
Additional leases, primarily for datacenters, that have not yet commenced	$ 8.4
Finance Lease
Leases [Line Items]
Additional leases, primarily for datacenters, that have not yet commenced	$ 87.8
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	17 years
Operating leases, options to extend leases term	5 years
Finance leases, options to extend leases term	5 years
Operating and Finance leases, options to terminate leases term	1 year
Additional operating leases that have not yet commenced, lease terms	20 years
Additional finance leases that have not yet commenced, lease terms	20 years

OTHER INCOME (EXPENSE), NET

9 Months Ended

Mar. 31, 2024

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)	Three Months Ended March 31,						Nine Months Ended March 31,


	2024			2023			2024			2023

Interest and dividends income	$	619		$	748		$	2,519		$	2,089
Interest expense		(800	)		(496	)		(2,234	)		(1,486	)
Net recognized gains (losses) on investments		(25	)		105			(63	)		103
Net losses on derivatives		(24	)		(65	)		(198	)		(255	)
Net gains (losses) on foreign currency remeasurements		(138	)		122			(203	)		26
Other, net		(486	)		(93	)		(792	)		(162	)


Total	$	(854	)	$	321		$	(971	)	$	315

Other, net primarily reflects net recognized losses on equity method investments.

Net Recognized Gains (Losses) on Investments

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


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


	2024			2023			2024			2023

Realized gains from sales of available-for-sale securities	$	8		$	4		$	14		$	19
Realized losses from sales of available-for-sale securities		(24	)		(30	)		(78	)		(73	)
Impairments and allowance for credit losses		3			0			15			(13	)


Total	$	(13	)	$	(26	)	$	(49	)	$	(67	)

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


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


	2024			2023			2024			2023

Net realized gains (losses) on investments sold	$	15		$	(13	)	$	29		$	77
Net unrealized gains (losses) on investments still held		(7	)		144			156			109
Impairments of investments		(20	)		0			(199	)		(16	)


Total	$	(12	)	$	131		$	(14	)	$	170

Components of Other Income (Expense), Net (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
Other Income and Expenses [Abstract]
Interest and dividends income	$ 619	$ 748	$ 2,519	$ 2,089
Interest expense	(800)	(496)	(2,234)	(1,486)
Net recognized gains (losses) on investments	(25)	105	(63)	103
Net losses on derivatives	(24)	(65)	(198)	(255)
Net gains (losses) on foreign currency remeasurements	(138)	122	(203)	26
Other, net	(486)	(93)	(792)	(162)
Total	$ (854)	$ 321	$ (971)	$ 315

- Definition

Amount of the cost of borrowed funds accounted for as interest expense.

+ References + Details

Components of Inventories (Detail) - USD ($) $ in Millions	Mar. 31, 2024	Jun. 30, 2023
Inventory Disclosure [Abstract]
Raw materials	$ 341	$ 709
Work in process	12	23
Finished goods	951	1,768
Total	$ 1,304	$ 2,500

Estimated Future Amortization Expense Related to Intangible Assets (Detail) - USD ($) $ in Millions	Mar. 31, 2024	Jun. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Year Ending June 30, 2024 (excluding the nine months ended March 31, 2024)	$ 1,454
Year Ending June 30, 2025	5,860
Year Ending June 30, 2026	4,436
Year Ending June 30, 2027	2,777
Year Ending June 30, 2028	1,869
Thereafter	12,432
Net Carrying Amount	$ 28,828	$ 9,366

Maturities of Lease Liabilities (Detail) - USD ($) $ in Millions	Mar. 31, 2024	Jun. 30, 2023
Leases [Abstract]
Operating Leases, Year Ending June 30, 2024 (excluding the nine months ended March 31, 2024)	$ 956
Operating Leases, Year Ending June 30, 2025	3,566
Operating Leases, Year Ending June 30, 2026	3,076
Operating Leases, Year Ending June 30, 2027	2,608
Operating Leases, Year Ending June 30, 2028	2,100
Operating Leases, Thereafter	7,812
Operating Leases, Total lease payments	20,118
Operating Leases, Less imputed interest	(2,236)
Operating Leases	17,882	$ 15,137
Finance Leases, Year Ending June 30, 2024 (excluding the nine months ended March 31, 2024)	560
Finance Leases, Year Ending June 30, 2025	2,694
Finance Leases, Year Ending June 30, 2026	2,398
Finance Leases, Year Ending June 30, 2027	2,409
Finance Leases, Year Ending June 30, 2028	2,409
Finance Leases, Thereafter	18,058
Finance Leases, Total lease payments	28,528
Finance Leases, Less imputed interest	(5,623)
Finance Leases	$ 22,905	$ 17,067

LEASES (Tables)

9 Months Ended

Mar. 31, 2024

Leases [Abstract]

Components of Lease Expense

The components of lease expense were as follows:


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


		2024		2023		2024		2023

Operating lease cost	$	882	$	766	$	2,473	$	2,112


Finance lease cost:
Amortization of right-of-use assets	$	453	$	348	$	1,241	$	994
Interest on lease liabilities		190		132		507		364


Total finance lease cost	$	643	$	480	$	1,748	$	1,358

Supplemental Cash Flow Information Related to Leases

Supplemental cash flow information related to leases was as follows:


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


		2024		2023		2024		2023

Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	836	$	690	$	2,433	$	1,989
Operating cash flows from finance leases		190		132		507		364
Financing cash flows from finance leases		323		272		896		790

Right-of-use assets obtained in exchange for lease obligations:
Operating leases		1,831		663		4,482		2,377
Finance leases		3,421		1,044		6,921		2,253

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)


	March 31, 2024			June 30, 2023

Operating Leases

Operating lease right-of-use assets	$	17,371		$	14,346


Other current liabilities	$	3,413		$	2,409
Operating lease liabilities		14,469			12,728


Total operating lease liabilities	$	17,882		$	15,137


Finance Leases

Property and equipment, at cost	$	27,328		$	20,538
Accumulated depreciation		(5,865	)		(4,647	)


Property and equipment, net	$	21,463		$	15,891


Other current liabilities	$	1,869		$	1,197
Other long-term liabilities		21,036			15,870


Total finance lease liabilities	$	22,905		$	17,067


Weighted Average Remaining Lease Term

Operating leases		8 years			8 years
Finance leases		12 years			11 years

Weighted Average Discount Rate

Operating leases		3.3%			2.9%
Finance leases		3.8%			3.4%

Maturities of Lease Liabilities

The following table outlines maturities of our lease liabilities as of March 31, 2024:


(In millions)


Year Ending June 30,	Operating Leases			Finance Leases

2024 (excluding the nine months ended March 31, 2024)	$	956		$	560
2025		3,566			2,694
2026		3,076			2,398
2027		2,608			2,409
2028		2,100			2,409
Thereafter		7,812			18,058


Total lease payments		20,118			28,528
Less imputed interest		(2,236	)		(5,623	)


Total	$	17,882		$	22,905

Net Recognized Gains (Losses) on Equity Investments (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
Schedule Of Gain Loss On Investments Including Marketable Securities And Investments Held At Cost Income Statement Reported Amounts Summary [Line Items]
Net realized gains (losses) on investments sold	$ 15	$ (13)	$ 29	$ 77
Net unrealized gains (losses) on investments still held	(7)	144	156	109
Total	(25)	105	(63)	103
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	(20)	0	(199)	(16)
Total	$ (12)	$ 131	$ (14)	$ 170

OTHER INCOME (EXPENSE), NET (Tables)

9 Months Ended

Mar. 31, 2024

Components of Other Income (Expense), Net

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


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


	2024			2023			2024			2023

Interest and dividends income	$	619		$	748		$	2,519		$	2,089
Interest expense		(800	)		(496	)		(2,234	)		(1,486	)
Net recognized gains (losses) on investments		(25	)		105			(63	)		103
Net losses on derivatives		(24	)		(65	)		(198	)		(255	)
Net gains (losses) on foreign currency remeasurements		(138	)		122			(203	)		26
Other, net		(486	)		(93	)		(792	)		(162	)


Total	$	(854	)	$	321		$	(971	)	$	315

Debt Securities

Net Recognized Gains (Losses) on Investments

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


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


	2024			2023			2024			2023

Realized gains from sales of available-for-sale securities	$	8		$	4		$	14		$	19
Realized losses from sales of available-for-sale securities		(24	)		(30	)		(78	)		(73	)
Impairments and allowance for credit losses		3			0			15			(13	)


Total	$	(13	)	$	(26	)	$	(49	)	$	(67	)

Equity Securities

Net Recognized Gains (Losses) on Investments

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


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


	2024			2023			2024			2023

Net realized gains (losses) on investments sold	$	15		$	(13	)	$	29		$	77
Net unrealized gains (losses) on investments still held		(7	)		144			156			109
Impairments of investments		(20	)		0			(199	)		(16	)


Total	$	(12	)	$	131		$	(14	)	$	170

Operating Income (Loss) by Segment (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
Segment Reporting Information [Line Items]
Operating income (loss)	$ 27,581	$ 22,352	$ 81,508	$ 64,269
Productivity and Business Processes
Segment Reporting Information [Line Items]
Operating income (loss)	10,143	8,639	30,397	25,137
Intelligent Cloud
Segment Reporting Information [Line Items]
Operating income (loss)	12,513	9,476	36,725	27,358
More Personal Computing
Segment Reporting Information [Line Items]
Operating income (loss)	$ 4,925	$ 4,237	$ 14,386	$ 11,774

STOCKHOLDERS' EQUITY

9 Months Ended

Mar. 31, 2024

Equity [Abstract]

STOCKHOLDERS' EQUITY

NOTE 15 — STOCKHOLDERS’ EQUITY

Share Repurchases

On September 14, 2021, our Board of Directors approved a share repurchase program authorizing up to $60.0 billion in share repurchases. This share repurchase program commenced in November 2021, has no expiration date, and may be terminated at any time. As of March 31, 2024, $13.1 billion remained of this $60.0 billion share repurchase program.

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


(In millions)	Shares		Amount			Shares		Amount


Fiscal Year				2024					2023

First Quarter		11		$	3,560		17		$	4,600
Second Quarter		7			2,800		20			4,600
Third Quarter		7			2,800		18			4,600


Total		25		$	9,160		55		$	13,800

All repurchases were made using cash resources. All shares repurchased were under the share repurchase program approved on September 14, 2021. The above table excludes shares repurchased to settle employee tax withholding related to the vesting of stock awards of $1.4 billion and $3.9 billion for the three and nine months ended March 31, 2024, respectively, and $909 million and $2.7 billion for the three and nine months ended March 31, 2023, respectively.

Dividends

Our Board of Directors declared the following dividends:


Declaration Date	Record Date	Payment Date		Dividend Per Share		Amount


Fiscal Year 2024						(In millions)

September 19, 2023	November 16, 2023	December 14, 2023	$	0.75	$	5,574
November 28, 2023	February 15, 2024	March 14, 2024		0.75		5,573
March 12, 2024	May 16, 2024	June 13, 2024		0.75		5,574


Total			$	2.25	$	16,721


Fiscal Year 2023

September 20, 2022	November 17, 2022	December 8, 2022	$	0.68	$	5,066
November 29, 2022	February 16, 2023	March 9, 2023		0.68		5,059
March 14, 2023	May 18, 2023	June 8, 2023		0.68		5,054


Total			$	2.04	$	15,179

The dividend declared on March 12, 2024 was included in other current liabilities as of March 31, 2024.

- Definition

The entire disclosure for equity.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

UNEARNED REVENUE

9 Months Ended

Mar. 31, 2024

Revenue from Contract with Customer [Abstract]

UNEARNED REVENUE

NOTE 12 — UNEARNED REVENUE

Unearned revenue by segment was as follows:


(In millions)


	March 31, 2024		June 30, 2023

Productivity and Business Processes	$	22,929	$	27,572
Intelligent Cloud		16,696		21,563
More Personal Computing		5,208		4,678


Total	$	44,833	$	53,813

Changes in unearned revenue were as follows:


(In millions)


Nine Months Ended March 31, 2024

Balance, beginning of period	$	53,813
Deferral of revenue		94,800
Recognition of unearned revenue		(103,780	)


Balance, end of period	$	44,833

Revenue allocated to remaining performance obligations, which includes unearned revenue and amounts that will be invoiced and recognized as revenue in future periods, was $242 billion as of March 31, 2024, of which $235 billion is related to the commercial portion of revenue. We expect to recognize approximately 45% 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

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-URI https://asc.fasb.org//606/tableOfContent

+ Details

Carrying Amount of Goodwill (Parenthetical) (Detail) - USD ($) $ in Millions	Mar. 31, 2024	Oct. 13, 2023	Jun. 30, 2023
Goodwill [Line Items]
Goodwill	$ 119,163		$ 67,886
Activision Blizzard, Inc.
Goodwill [Line Items]
Goodwill		$ 50,989

- Definition

+ References + Details

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

+ Details

INVESTMENTS

9 Months Ended

Mar. 31, 2024

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 and Other Investments


March 31, 2024

Changes in Fair Value Recorded in Other Comprehensive Income

Commercial paper	Level 2	$	5,535	$	0	$	0		$	5,535	$	5,535	$	0	$	0
Certificates of deposit	Level 2		2,300		0		0			2,300		2,256		44		0
U.S. government securities	Level 1		52,036		3		(3,074	)		48,965		4		48,961		0
U.S. agency securities	Level 2		23		0		0			23		0		23		0
Foreign government bonds	Level 2		352		4		(12	)		344		0		344		0
Mortgage- and asset-backed securities	Level 2		980		4		(34	)		950		0		950		0
Corporate notes and bonds	Level 2		9,874		40		(340	)		9,574		0		9,574		0
Corporate notes and bonds	Level 3		1,646		0		(1	)		1,645		0		145		1,500
Municipal securities	Level 2		263		1		(14	)		250		0		250		0
Municipal securities	Level 3		104		0		(16	)		88		0		88		0


Total debt investments		$	73,113	$	52	$	(3,491	)	$	69,674	$	7,795	$	60,379	$	1,500


Changes in Fair Value Recorded in Net Income

Equity investments	Level 1								$	3,340	$	258	$	0	$	3,082
Equity investments	Other									10,225		0		0		10,225


Total equity investments									$	13,565	$	258	$	0	$	13,307


Cash									$	11,581	$	11,581	$	0	$	0
Derivatives, net (a)										8		0		8		0


Total									$	94,828	$	19,634	$	60,387	$	14,807


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


June 30, 2023

Changes in Fair Value Recorded in Other Comprehensive Income

Commercial paper	Level 2	$	16,589	$	0	$	0		$	16,589	$	12,231	$	4,358	$	0
Certificates of deposit	Level 2		2,701		0		0			2,701		2,657		44		0
U.S. government securities	Level 1		65,237		2		(3,870	)		61,369		2,991		58,378		0
U.S. agency securities	Level 2		2,703		0		0			2,703		894		1,809		0
Foreign government bonds	Level 2		498		1		(24	)		475		0		475		0
Mortgage- and asset-backed securities	Level 2		824		1		(39	)		786		0		786		0
Corporate notes and bonds	Level 2		10,809		8		(583	)		10,234		0		10,234		0
Corporate notes and bonds	Level 3		120		0		0			120		0		120		0
Municipal securities	Level 2		285		1		(18	)		268		7		261		0
Municipal securities	Level 3		103		0		(16	)		87		0		87		0


Total debt investments		$	99,869	$	13	$	(4,550	)	$	95,332	$	18,780	$	76,552	$	0


Changes in Fair Value Recorded in Net Income

Equity investments	Level 1								$	10,138	$	7,446	$	0	$	2,692
Equity investments	Other									7,187		0		0		7,187


Total equity investments									$	17,325	$	7,446	$	0	$	9,879


Cash									$	8,478	$	8,478	$	0	$	0
Derivatives, net (a)										6		0		6		0


Total									$	121,141	$	34,704	$	76,558	$	9,879

(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 March 31, 2024 and June 30, 2023, equity investments without readily determinable fair values measured at cost with adjustments for observable changes in price or impairments were $4.0 billion and $4.2 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


March 31, 2024

U.S. government and agency securities	$	650	$	(17	)	$	48,044	$	(3,057	)	$	48,694	$	(3,074	)
Foreign government bonds		40		0			226		(12	)		266		(12	)
Mortgage- and asset-backed securities		264		(4	)		339		(30	)		603		(34	)
Corporate notes and bonds		1,000		(9	)		6,435		(332	)		7,435		(341	)
Municipal securities		44		(1	)		237		(29	)		281		(30	)


Total	$	1,998	$	(31	)	$	55,281	$	(3,460	)	$	57,279	$	(3,491	)


	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, 2023

U.S. government and agency securities	$	7,950	$	(336	)	$	45,273	$	(3,534	)	$	53,223	$	(3,870	)
Foreign government bonds		77		(5	)		391		(19	)		468		(24	)
Mortgage- and asset-backed securities		257		(5	)		412		(34	)		669		(39	)
Corporate notes and bonds		2,326		(49	)		7,336		(534	)		9,662		(583	)
Municipal securities		111		(3	)		186		(31	)		297		(34	)


Total	$	10,721	$	(398	)	$	53,598	$	(4,152	)	$	64,319	$	(4,550	)

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

The following table outlines maturities of our debt investments as of March 31, 2024:


(In millions)	Adjusted Cost Basis		Estimated Fair Value


March 31, 2024

Due in one year or less	$	19,613	$	19,428
Due after one year through five years		42,885		40,676
Due after five years through 10 years		9,230		8,304
Due after 10 years		1,385		1,266


Total	$	73,113	$	69,674

Unearned Revenue by Segment (Detail) - USD ($) $ in Millions	Mar. 31, 2024	Jun. 30, 2023
Contract With Customer Liability [Line Items]
Unearned revenue	$ 44,833	$ 53,813
Productivity and Business Processes
Contract With Customer Liability [Line Items]
Unearned revenue	22,929	27,572
Intelligent Cloud
Contract With Customer Liability [Line Items]
Unearned revenue	16,696	21,563
More Personal Computing
Contract With Customer Liability [Line Items]
Unearned revenue	$ 5,208	$ 4,678

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

9 Months Ended

Mar. 31, 2024

Jun. 30, 2023

Debt Instrument [Line Items]

Total face value

$ 51,241

$ 52,866

Unamortized discount and issuance costs

(1,246)

(438)

Hedge fair value adjustments

^[1]

(85)

(106)

Premium on debt exchange

(5,003)

(5,085)

Total debt

44,907

47,237

Current portion of long-term debt

(2,249)

(5,247)

Long-term debt

$ 42,658

41,990

2009 Issuance of $3.8 billion

Debt Instrument [Line Items]

Maturities (calendar year)

2039

Stated Interest Rate

5.20%

Effective Interest Rate

5.24%

Total face value

$ 520

520

2010 Issuance of $4.8 billion

Debt Instrument [Line Items]

Maturities (calendar year)

2040

Stated Interest Rate

4.50%

Effective Interest Rate

4.57%

Total face value

$ 486

486

2011 Issuance of $2.3 billion

Debt Instrument [Line Items]

Maturities (calendar year)

2041

Stated Interest Rate

5.30%

Effective Interest Rate

5.36%

Total face value

$ 718

718

2012 Issuance of $2.3 billion

Debt Instrument [Line Items]

Maturities (calendar year)

2042

Stated Interest Rate

3.50%

Effective Interest Rate

3.57%

Total face value

$ 454

454

2013 Issuance of $5.2 billion

Debt Instrument [Line Items]

Maturities (calendar year)

2043

Total face value

$ 314

1,814

2013 Issuance of $5.2 billion | Minimum

Debt Instrument [Line Items]

Stated Interest Rate

3.75%

Effective Interest Rate

3.83%

2013 Issuance of $5.2 billion | Maximum

Debt Instrument [Line Items]

Stated Interest Rate

4.88%

Effective Interest Rate

4.92%

2013 Issuance of € 4.1 billion

Debt Instrument [Line Items]

Total face value

$ 2,484

2,509

2013 Issuance of € 4.1 billion | Minimum

Debt Instrument [Line Items]

Maturities (calendar year)

2028

Stated Interest Rate

2.63%

Effective Interest Rate

2.69%

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

$ 9,805

9,805

2015 Issuance of $23.8 billion | Minimum

Debt Instrument [Line Items]

Maturities (calendar year)

2025

Stated Interest Rate

2.70%

Effective Interest Rate

2.77%

2015 Issuance of $23.8 billion | Maximum

Debt Instrument [Line Items]

Maturities (calendar year)

2055

Stated Interest Rate

4.75%

Effective Interest Rate

4.78%

2016 Issuance of $19.8 billion

Debt Instrument [Line Items]

Total face value

$ 7,930

9,430

2016 Issuance of $19.8 billion | Minimum

Debt Instrument [Line Items]

Maturities (calendar year)

2026

Stated Interest Rate

2.40%

Effective Interest Rate

2.46%

2016 Issuance of $19.8 billion | Maximum

Debt Instrument [Line Items]

Maturities (calendar year)

2056

Stated Interest Rate

3.95%

Effective Interest Rate

4.03%

2017 Issuance of $17.1 billion

Debt Instrument [Line Items]

Total face value

^[2]

$ 6,833

8,945

2017 Issuance of $17.1 billion | Minimum

Debt Instrument [Line Items]

Maturities (calendar year)

^[2]

2026

Stated Interest Rate

^[2]

3.30%

Effective Interest Rate

^[2]

3.38%

2017 Issuance of $17.1 billion | Maximum

Debt Instrument [Line Items]

Maturities (calendar year)

^[2]

2057

Stated Interest Rate

^[2]

4.50%

Effective Interest Rate

^[2]

5.49%

2020 Issuance of $10.1 billion

Debt Instrument [Line Items]

Total face value

^[2]

$ 10,111

10,000

2020 Issuance of $10.1 billion | Minimum

Debt Instrument [Line Items]

Maturities (calendar year)

^[2]

2030

Stated Interest Rate

^[2]

1.35%

Effective Interest Rate

^[2]

2.53%

2020 Issuance of $10.1 billion | Maximum

Debt Instrument [Line Items]

Maturities (calendar year)

^[2]

2060

Stated Interest Rate

^[2]

2.68%

Effective Interest Rate

^[2]

5.43%

2021 issuance of $8.2 billion

Debt Instrument [Line Items]

Total face value

$ 8,185

8,185

2021 issuance of $8.2 billion | Minimum

Debt Instrument [Line Items]

Maturities (calendar year)

2052

Stated Interest Rate

2.92%

Effective Interest Rate

2.92%

2021 issuance of $8.2 billion | Maximum

Debt Instrument [Line Items]

Maturities (calendar year)

2062

Stated Interest Rate

3.04%

Effective Interest Rate

3.04%

2023 issuance of $3.4 billion

Debt Instrument [Line Items]

Total face value

^[2]

$ 3,401

$ 0

2023 issuance of $3.4 billion | Minimum

Debt Instrument [Line Items]

Maturities (calendar year)

^[2]

2026

Stated Interest Rate

^[2]

1.35%

Effective Interest Rate

^[2]

5.16%

2023 issuance of $3.4 billion | Maximum

Debt Instrument [Line Items]

Maturities (calendar year)

^[2]

2050

Stated Interest Rate

^[2]

4.50%

Effective Interest Rate

^[2]

5.49%

[1]	Refer to Note 5 – Derivatives for further information on the interest rate swaps related to fixed-rate debt.
[2]	Includes $3.6 billion of debt at face value related to the Activision Blizzard acquisition. See Note 7 – Business Combinations for further information.

Maturities of Long-term Debt Including Current Portion (Detail) - USD ($) $ in Millions	Mar. 31, 2024	Jun. 30, 2023
Debt Disclosure [Abstract]
Year Ending June 30, 2024 (excluding the nine months ended March 31, 2024)	$ 0
Year Ending June 30, 2025	2,250
Year Ending June 30, 2026	3,000
Year Ending June 30, 2027	9,250
Year Ending June 30, 2028	0
Thereafter	36,741
Total	$ 51,241	$ 52,866

Accounting Policies - Additional Information (Detail) - USD ($) $ in Billions	Mar. 31, 2024	Jun. 30, 2023
Significant Accounting Policies [Line Items]
Long-term accounts receivable, net of allowance for doubtful accounts	$ 4.8	$ 4.5
Other receivables related to purchase of components	10.1	9.2
Financing receivables, net	$ 2.7	$ 5.3
Maximum \| Reprogrammed Interchange LLC \| Inflection AI, Inc
Significant Accounting Policies [Line Items]
Equity interest percentage	10.00%
Maximum \| Greylock Ventures \| Inflection AI, Inc
Significant Accounting Policies [Line Items]
Equity interest percentage	10.00%

BUSINESS COMBINATIONS (Tables) - Activision Blizzard, Inc.

9 Months Ended

Mar. 31, 2024

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	$	12,976
Goodwill		50,989
Intangible assets		21,969
Other assets		2,440
Long-term debt		(2,799	)
Long-term income taxes		(1,868	)
Deferred income taxes		(4,678	)
Other liabilities		(3,623	)


Total purchase price	$	75,406

Acquired Intangible Assets

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


(In millions, except average life)	Amount		Weighted Average Life


Marketing-related	$	11,619		24 years
Technology-based		9,689		4 years
Customer-related		661		4 years


Fair value of intangible assets acquired	$	21,969		15 years

Supplemental Consolidated Financial Results on Unaudited Pro Forma Basis

Following is the net impact of the Activision Blizzard acquisition on our consolidated income statements since the date of acquisition:


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


	2024				2024

Revenue	$	1,969		$	4,053
Operating loss		(353	)		(790	)

The change of Activision Blizzard content from third-party to first-party is reflected in the net impact.

Following are the supplemental consolidated financial results of Microsoft Corporation on an unaudited pro forma basis, as if the acquisition had been consummated on July 1, 2022:


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


	2024		2023			2024		2023

Revenue	$	61,856	$	54,945	$	182,717	$	161,745
Net income		21,931		18,258		66,278		51,536
Diluted earnings per share		2.94		2.45		8.88		6.90

Unearned Revenue - Remaining Performance Obligation - Additional Information (Detail) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2024-04-01	Mar. 31, 2024
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]
Revenue allocated to remaining performance obligations, percentage of revenue expected to be recognized	45.00%
Revenue allocated to remaining performance obligations, expected timing of satisfaction	12 months

Pay vs Performance Disclosure - USD ($) $ in Millions	3 Months Ended		9 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Millions	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ 21,939	$ 18,299	$ 66,100	$ 52,280

- Definition

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

+ References

+ Details

EARNINGS PER SHARE

9 Months Ended

Mar. 31, 2024

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 per share amounts)	Three Months Ended March 31,					Nine Months Ended March 31,


	2024		2023			2024		2023

Net income available for common shareholders (A)	$	21,939	$	18,299	$	66,100	$	52,280


Weighted average outstanding shares of common stock (B)		7,431		7,441		7,431		7,450
Dilutive effect of stock-based awards		41		23		36		24


Common stock and common stock equivalents (C)		7,472		7,464		7,467		7,474


Earnings Per Share

Basic (A/B)	$	2.95	$	2.46	$	8.90	$	7.02
Diluted (A/C)	$	2.94	$	2.45	$	8.85	$	6.99

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

CASH FLOWS STATEMENTS - USD ($) $ in Millions	3 Months Ended		9 Months Ended
CASH FLOWS STATEMENTS - USD ($) $ in Millions	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
Operations
Net income	$ 21,939	$ 18,299	$ 66,100	$ 52,280
Adjustments to reconcile net income to net cash from operations:
Depreciation, amortization, and other	6,027	3,549	15,907	9,987
Stock-based compensation expense	2,703	2,465	8,038	7,195
Net recognized losses (gains) on investments and derivatives	49	(40)	261	152
Deferred income taxes	(1,323)	(1,675)	(3,593)	(4,171)
Changes in operating assets and liabilities:
Accounts receivable	(2,028)	(1,408)	6,055	7,157
Inventories	260	106	1,229	868
Other current assets	951	1,152	880	428
Other long-term assets	(2,137)	(554)	(5,577)	(1,285)
Accounts payable	648	(407)	(659)	(4,032)
Unearned revenue	(645)	(181)	(10,309)	(8,689)
Income taxes	2,622	1,414	2,493	(1,039)
Other current liabilities	2,803	1,715	215	(490)
Other long-term liabilities	48	6	313	451
Net cash from operations	31,917	24,441	81,353	58,812
Financing
Proceeds from issuance (repayments) of debt, maturities of 90 days or less, net	(3,810)	0	6,392	0
Proceeds from issuance of debt	6,352	0	24,198	0
Repayments of debt	(11,589)	0	(16,005)	(1,750)
Common stock issued	522	536	1,468	1,354
Common stock repurchased	(4,213)	(5,509)	(13,044)	(16,541)
Common stock cash dividends paid	(5,572)	(5,059)	(16,197)	(14,746)
Other, net	(498)	(258)	(1,006)	(839)
Net cash used in financing	(18,808)	(10,290)	(14,194)	(32,522)
Investing
Additions to property and equipment	(10,952)	(6,607)	(30,604)	(19,164)
Acquisition of companies, net of cash acquired, and purchases of intangible and other assets	(1,575)	(301)	(67,790)	(1,329)
Purchases of investments	(2,183)	(9,063)	(14,901)	(25,675)
Maturities of investments	3,350	13,154	23,218	26,744
Sales of investments	1,941	1,239	8,871	8,725
Other, net	(1,281)	(1,686)	(916)	(2,847)
Net cash used in investing	(10,700)	(3,264)	(82,122)	(13,546)
Effect of foreign exchange rates on cash and cash equivalents	(80)	29	(107)	(113)
Net change in cash and cash equivalents	2,329	10,916	(15,070)	12,631
Cash and cash equivalents, beginning of period	17,305	15,646	34,704	13,931
Cash and cash equivalents, end of period	$ 19,634	$ 26,562	$ 19,634	$ 26,562

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

3 Months Ended

9 Months Ended

Mar. 31, 2024

Mar. 31, 2023

Mar. 31, 2024

Mar. 31, 2023

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

Revenue

$ 61,858

$ 52,857

$ 180,395

$ 155,726

United States

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

Revenue

^[1]

31,437

26,007

92,544

78,850

Other Countries

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

Revenue

$ 30,421

$ 26,850

$ 87,851

$ 76,876

[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

SEGMENT INFORMATION AND GEOGRAPHIC DATA

9 Months Ended

Mar. 31, 2024

Segment Reporting [Abstract]

SEGMENT INFORMATION AND GEOGRAPHIC DATA

NOTE 17 — 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, Microsoft Viva, and Copilot for Microsoft 365.

•

Office Consumer, including Microsoft 365 Consumer and Copilot Pro subscriptions, Office licensed on-premises, and other Office services.

•

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

•

Dynamics business solutions, including Dynamics 365, comprising a set of intelligent, cloud-based applications across ERP, CRM (including 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 and other cloud services; SQL Server, Windows Server, Visual Studio, System Center, and related Client Access Licenses (“CALs”); and Nuance and GitHub.

•

Enterprise and partner services, including Enterprise Support Services, Industry Solutions, Nuance professional services, Microsoft Partner Network, and Learning Experience.

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 original equipment manufacturer (“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; and Windows Internet of Things.

•

Devices, including Surface, HoloLens, and PC accessories.

•

Gaming, including Xbox hardware and Xbox content and services, comprising first-party content (such as Activision Blizzard) and third-party content, including games and in-game content; Xbox Game Pass and other subscriptions; Xbox Cloud Gaming; advertising; third-party disc royalties; and other cloud services.

•

Search and news advertising, comprising Bing (including Copilot), Microsoft News, Microsoft Edge, and third-party affiliates.

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 are incurred at a corporate level and allocated to our segments. These allocated costs generally include legal, including settlements and fines, information technology, human resources, finance, excise taxes, field selling, shared facilities services, customer service and support, and severance incurred as part of a corporate program. Each allocation is measured differently based on the specific facts and circumstances of the costs being allocated and is generally based on relative gross margin or relative headcount.

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


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


		2024		2023	2024		2023

Revenue

Productivity and Business Processes	$	19,570	$	17,516	$	57,411	$	50,983
Intelligent Cloud		26,708		22,081		76,847		63,914
More Personal Computing		15,580		13,260		46,137		40,829


Total	$	61,858	$	52,857	$	180,395	$	155,726


Operating Income

Productivity and Business Processes	$	10,143	$	8,639	$	30,397	$	25,137
Intelligent Cloud		12,513		9,476		36,725		27,358
More Personal Computing		4,925		4,237		14,386		11,774


Total	$	27,581	$	22,352	$	81,508	$	64,269

No sales to an individual customer or country other than the United States accounted for more than 10% of revenue for the three or nine months ended March 31, 2024 or 2023. Revenue, classified by the major geographic areas in which our customers were located, was as follows:


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


		2024		2023	2024		2023

United States (a)	$	31,437	$	26,007	$	92,544	$	78,850
Other countries		30,421		26,850		87,851		76,876


Total	$	61,858	$	52,857	$	180,395	$	155,726

(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, was as follows:


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


		2024		2023	2024		2023

Server products and cloud services	$	24,832	$	20,025	$	71,093	$	58,007
Office products and cloud services		13,911		12,468		40,528		35,912
Windows		5,929		5,328		16,758		15,449
Gaming		5,451		3,607		16,481		11,975
LinkedIn		4,013		3,659		12,121		11,120
Search and news advertising		3,134		3,036		9,407		9,158
Enterprise and partner services		1,861		2,047		5,722		5,883
Dynamics products and cloud services		1,646		1,389		4,762		3,951
Devices		1,067		1,282		3,490		4,160
Other		14		16		33		111


Total	$	61,858	$	52,857	$	180,395	$	155,726

We have recast certain prior period amounts to conform to the way we internally manage and monitor our business.

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.

- 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

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+ Details

ACCOUNTING POLICIES (Policies)	9 Months Ended
ACCOUNTING POLICIES (Policies)	Mar. 31, 2024
Accounting Policies [Abstract]
Accounting Principles	Accounting Principles Our unaudited interim consolidated financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). In the opinion of management, the unaudited interim consolidated financial statements reflect all adjustments of a normal recurring nature that are necessary for a fair presentation of the results for the interim periods presented. Interim results are not necessarily indicative of results for a full year. The information included in this Form 10-Q should be read in conjunction with information included in the Microsoft Corporation fiscal year 2023 Form 10-K filed with the U.S. Securities and Exchange Commission on July 27, 2023. 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	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	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 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.
Investments	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. Investments that are considered variable interest entities (“VIEs”) are evaluated to determine whether we are the primary beneficiary of the VIE, in which case we would be required to consolidate the entity. We evaluate whether we have (1) the power to direct the activities that most significantly impact the VIE’s economic performance, and (2) the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE. We have determined we are not the primary beneficiary of any of our VIE investments. Therefore, our VIE investments are not consolidated and the majority are accounted for under the equity method of accounting.
Derivatives	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 other income (expense), net with the corresponding hedged item. Gains and losses representing hedge components excluded from the assessment of effectiveness are recognized in other income (expense), net. For derivative instruments that are not designated as hedges, gains and losses from changes in fair values are primarily recognized in other income (expense), net.
Fair Value Measurements	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 include certain cleared swap contracts and over-the-counter forward, 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.
Contract Balances and Other Receivables	Contract Balances and Other Receivables As of March 31, 2024 and June 30, 2023, long-term accounts receivable, net of allowance for doubtful accounts, was $4.8 billion and $4.5 billion, respectively, and is included in other long-term assets in our consolidated balance sheets. As of March 31, 2024 and June 30, 2023, other receivables related to activities to facilitate the purchase of server components were $10.1 billion and $9.2 billion, respectively, and are included in other current assets in our consolidated balance sheets. 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 March 31, 2024 and June 30, 2023, our financing receivables, net were $2.7 billion and $5.3 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.
Related Party Transactions	Related Party Transactions In March 2024, we entered into an agreement with Inflection AI, Inc. (“Inflection”), pursuant to which we obtained a non-exclusive license to Inflection’s intellectual property. Reid Hoffman, a member of our Board of Directors, is a co-founder of and serves on the board of directors of Inflection. As of the date of the agreement with Inflection, Reprogrammed Interchange LLC (“Reprogrammed”) and entities affiliated with Greylock Ventures (“Greylock”) each held less than a 10% equity interest in Inflection. Mr. Hoffman may be deemed to beneficially own the shares held by Reprogrammed and Greylock by virtue of his relationship with such entities. Mr. Hoffman did not participate in any portions of the meetings of our Board of Directors or any committee thereof to review and approve the transaction with Inflection.
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.
Segment Reporting	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 are incurred at a corporate level and allocated to our segments. These allocated costs generally include legal, including settlements and fines, information technology, human resources, finance, excise taxes, field selling, shared facilities services, customer service and support, and severance incurred as part of a corporate program. Each allocation is measured differently based on the specific facts and circumstances of the costs being allocated and is generally based on relative gross margin or relative headcount. 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.
Recent Accounting Guidance	Recent Accounting Guidance Segment Reporting – Improvements to Reportable Segment Disclosures In November 2023, the Financial Accounting Standards Board (“FASB”) issued a new standard to improve reportable segment disclosures. The guidance expands the disclosures required for reportable segments in our annual and interim consolidated financial statements, primarily through enhanced disclosures about significant segment expenses. The standard will be effective for us beginning with our annual reporting for fiscal year 2025 and interim periods thereafter, with early adoption permitted. We are currently evaluating the impact of this standard on our segment disclosures. Income Taxes – Improvements to Income Tax Disclosures In December 2023, the FASB issued a new standard to improve income tax disclosures. The guidance requires disclosure of disaggregated income taxes paid, prescribes standardized categories for the components of the effective tax rate reconciliation, and modifies other income tax-related disclosures. The standard will be effective for us beginning with our annual reporting for fiscal year 2026, with early adoption permitted. We are currently evaluating the impact of this standard on our income tax disclosures.

Segment Information and Geographic Data - Additional Information (Detail)	9 Months Ended
	Mar. 31, 2024
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 the three or nine months ended March 31, 2024 or 2023.

Share Repurchases (Detail) - Share Repurchase Program 2021 - USD ($) $ in Millions	3 Months Ended						9 Months Ended
	Mar. 31, 2024	Dec. 31, 2023	Sep. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Sep. 30, 2022	Mar. 31, 2024	Mar. 31, 2023
Share Repurchases [Line Items]
Shares of common stock repurchased	7,000,000	7,000,000	11,000,000	18,000,000	20,000,000	17,000,000	25,000,000	55,000,000
Value of common stock repurchased	$ 2,800	$ 2,800	$ 3,560	$ 4,600	$ 4,600	$ 4,600	$ 9,160	$ 13,800

- Definition

Number of shares that have been repurchased during the period and have not been retired and are not held in treasury. Some state laws may govern the circumstances under which an entity may acquire its own stock and prescribe the accounting treatment therefore. This element is used when state law does not recognize treasury stock.

+ References + Details

- Definition

+ References + Details

DEBT (Tables)

9 Months Ended

Mar. 31, 2024

Debt Disclosure [Abstract]

Components of Long-term Debt

The components of long-term debt were as follows:


(In millions, issuance by calendar year)	Maturities (calendar year)				Stated Interest Rate				Effective Interest Rate			March 31, 2024			June 30, 2023


2009 issuance of $3.8 billion				2039				5.20%			5.24%	$	520		$	520
2010 issuance of $4.8 billion				2040				4.50%			4.57%		486			486
2011 issuance of $2.3 billion				2041				5.30%			5.36%		718			718
2012 issuance of $2.3 billion				2042				3.50%			3.57%		454			454
2013 issuance of $5.2 billion				2043		3.75%	–	4.88%	3.83%	–	4.92%		314			1,814
2013 issuance of €4.1 billion		2028	–	2033		2.63%	–	3.13%	2.69%	–	3.22%		2,484			2,509
2015 issuance of $23.8 billion		2025	–	2055		2.70%	–	4.75%	2.77%	–	4.78%		9,805			9,805
2016 issuance of $19.8 billion		2026	–	2056		2.40%	–	3.95%	2.46%	–	4.03%		7,930			9,430
2017 issuance of $17.1 billion (a)		2026	–	2057		3.30%	–	4.50%	3.38%	–	5.49%		6,833			8,945
2020 issuance of $10.1 billion (a)		2030	–	2060		1.35%	–	2.68%	2.53%	–	5.43%		10,111			10,000
2021 issuance of $8.2 billion		2052	–	2062		2.92%	–	3.04%	2.92%	–	3.04%		8,185			8,185
2023 issuance of $3.4 billion (a)		2026	–	2050		1.35%	–	4.50%	5.16%	–	5.49%		3,401			0


Total face value													51,241			52,866
Unamortized discount and issuance costs													(1,246	)		(438	)
Hedge fair value adjustments (b)													(85	)		(106	)
Premium on debt exchange													(5,003	)		(5,085	)


Total debt													44,907			47,237
Current portion of long-term debt													(2,249	)		(5,247	)


Long-term debt												$	42,658		$	41,990

(a)

Includes $3.6 billion of debt at face value related to the Activision Blizzard acquisition. See Note 7 – Business Combinations for further information.

(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 March 31, 2024:


(In millions)


Year Ending June 30,

2024 (excluding the nine months ended March 31, 2024)	$	0
2025		2,250
2026		3,000
2027		9,250
2028		0
Thereafter		36,741


Total	$	51,241

- 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.

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+ Details

STOCKHOLDERS' EQUITY (Tables)

9 Months Ended

Mar. 31, 2024

Equity [Abstract]

Share Repurchases

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


(In millions)	Shares		Amount			Shares		Amount


Fiscal Year				2024					2023

First Quarter		11		$	3,560		17		$	4,600
Second Quarter		7			2,800		20			4,600
Third Quarter		7			2,800		18			4,600


Total		25		$	9,160		55		$	13,800

Dividends Declared

Our Board of Directors declared the following dividends:


Declaration Date	Record Date	Payment Date		Dividend Per Share		Amount


Fiscal Year 2024						(In millions)

September 19, 2023	November 16, 2023	December 14, 2023	$	0.75	$	5,574
November 28, 2023	February 15, 2024	March 14, 2024		0.75		5,573
March 12, 2024	May 16, 2024	June 13, 2024		0.75		5,574


Total			$	2.25	$	16,721


Fiscal Year 2023

September 20, 2022	November 17, 2022	December 8, 2022	$	0.68	$	5,066
November 29, 2022	February 16, 2023	March 9, 2023		0.68		5,059
March 14, 2023	May 18, 2023	June 8, 2023		0.68		5,054


Total			$	2.04	$	15,179

BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions	Mar. 31, 2024	Jun. 30, 2023
Statement of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 616	$ 650
Property and equipment, accumulated depreciation	$ 74,945	$ 68,251
Common stock, shares authorized	24,000,000,000	24,000,000,000
Common stock, outstanding	7,433,000,000	7,432,000,000

DERIVATIVES (Tables)

9 Months Ended

Mar. 31, 2024

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)	March 31, 2024		June 30, 2023


Designated as Hedging Instruments

Foreign exchange contracts purchased	$	1,492	$	1,492
Interest rate contracts purchased		1,109		1,078

Not Designated as Hedging Instruments

Foreign exchange contracts purchased		9,245		7,874
Foreign exchange contracts sold		23,116		25,159
Equity contracts purchased		3,939		3,867
Equity contracts sold		2,152		2,154
Other contracts purchased		1,672		1,224
Other contracts sold		767		581

Fair Values of Derivative Instruments

The following table presents our derivative instruments:


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


	March 31, 2024						June 30, 2023

Designated as Hedging Instruments

Foreign exchange contracts	$	38		$	(68	)	$	34		$	(67	)
Interest rate contracts		6			0			16			0

Not Designated as Hedging Instruments

Foreign exchange contracts		121			(192	)		249			(332	)
Equity contracts		72			(526	)		165			(400	)
Other contracts		5			(1	)		5			(6	)


Gross amounts of derivatives		242			(787	)		469			(805	)
Gross amounts of derivatives offset in the balance sheet		(125	)		126			(202	)		206
Cash collateral received		0			(17	)		0			(125	)


Net amounts of derivatives	$	117		$	(678	)	$	267		$	(724	)


Reported as

Short-term investments	$	8		$	0		$	6		$	0
Other current assets		103			0			245			0
Other long-term assets		6			0			16			0
Other current liabilities		0			(271	)		0			(341	)
Other long-term liabilities		0			(407	)		0			(383	)


Total	$	117		$	(678	)	$	267		$	(724	)

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


(In millions)	Level 1			Level 2		Level 3		Total


March 31, 2024

Derivative assets	$	0	$	233		$	9	$	242
Derivative liabilities		0		(787	)		0		(787	)

June 30, 2023

Derivative assets		0		462			7		469
Derivative liabilities		0		(805	)		0		(805	)

Gains (Losses) on Derivative Instruments

Gains (losses) on derivative instruments recognized in other income (expense), net were as follows:


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


		2024			2023			2024			2023

Designated as Fair Value Hedging Instruments

Interest rate contracts
Derivatives	$	(21	)	$	1		$	(15	)	$	(37	)
Hedged items		10			(15	)		(21	)		20

Designated as Cash Flow Hedging Instruments

Foreign exchange contracts
Amount reclassified from accumulated other comprehensive loss		(37	)		18			(32	)		62

Not Designated as Hedging Instruments

Foreign exchange contracts		299			(10	)		171			(20	)
Equity contracts		(22	)		(61	)		(196	)		(230	)
Other contracts		(8	)		1			(5	)		(34	)

Cash Flow Hedges | Other Comprehensive Income (Loss)

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)	Three Months Ended March 31,					Nine Months Ended March 31,


	2024			2023		2024		2023

Designated as Cash Flow Hedging Instruments

Foreign exchange contracts
Included in effectiveness assessment	$	(19	)	$	5	$	3	$	14

GOODWILL

9 Months Ended

Mar. 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL

NOTE 8 — GOODWILL

Changes in the carrying amount of goodwill were as follows:


(In millions)	June 30, 2023		Acquisitions			Other			March 31, 2024


Productivity and Business Processes	$	24,775	$	0		$	3		$	24,778
Intelligent Cloud		30,469		0			(17	)		30,452
More Personal Computing		12,642		51,235	(a)		56	(a)		63,933


Total	$	67,886	$	51,235		$	42		$	119,163

(a)

Includes goodwill of $51.0 billion related to Activision Blizzard. See Note 7 – 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.

Supplemental Consolidated Financial Results on Unaudited Pro Forma Basis (Detail) - Activision Blizzard, Inc. - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
Business Acquisition [Line Items]
Revenue	$ 61,856	$ 54,945	$ 182,717	$ 161,745
Net income	$ 21,931	$ 18,258	$ 66,278	$ 51,536
Diluted earnings per share	$ 2.94	$ 2.45	$ 8.88	$ 6.9

Impact of Acquistion on Consolidated Income Statements (Detail) - Activision Blizzard, Inc. - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Mar. 31, 2024	Mar. 31, 2024
Business Acquisition [Line Items]
Revenue	$ 1,969	$ 4,053
Operating loss	$ (353)	$ (790)

Changes in Unearned Revenue (Detail) $ in Millions	9 Months Ended
Changes in Unearned Revenue (Detail) $ in Millions	Mar. 31, 2024 USD ($)
Revenue from Contract with Customer [Abstract]
Balance, beginning of period	$ 53,813
Deferral of revenue	94,800
Recognition of unearned revenue	(103,780)
Balance, end of period	$ 44,833

Income Taxes - Additional Information Regarding Examinations (Detail) - USD ($) $ in Billions		9 Months Ended
	Sep. 26, 2023	Mar. 31, 2024
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		2023
Internal Revenue Service (IRS)
Income Tax Examination [Line Items]
Settlement payments including tax and interest	$ 28.9
Internal Revenue Service (IRS) \| Earliest Tax Year
Income Tax Examination [Line Items]
Tax years under audit	2004
Tax years subject to examination		2014
Internal Revenue Service (IRS) \| Latest Tax Year
Income Tax Examination [Line Items]
Tax years under audit	2013
Tax years subject to examination		2017

Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
Earning Per Share Basic And Diluted [Abstract]
Net income available for common shareholders (A)	$ 21,939	$ 18,299	$ 66,100	$ 52,280
Weighted average outstanding shares of common stock (B)	7,431	7,441	7,431	7,450
Dilutive effect of stock-based awards	41	23	36	24
Common stock and common stock equivalents (C)	7,472	7,464	7,467	7,474
Earnings Per Share
Basic (A/B)	$ 2.95	$ 2.46	$ 8.9	$ 7.02
Diluted (A/C)	$ 2.94	$ 2.45	$ 8.85	$ 6.99

- 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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+ Details

- Definition

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

+ References

+ Details

ACCOUNTING POLICIES

9 Months Ended

Mar. 31, 2024

Accounting Policies [Abstract]

ACCOUNTING POLICIES

NOTE 1 — ACCOUNTING POLICIES

Accounting Principles

Our unaudited interim consolidated financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). In the opinion of management, the unaudited interim consolidated financial statements reflect all adjustments of a normal recurring nature that are necessary for a fair presentation of the results for the interim periods presented. Interim results are not necessarily indicative of results for a full year. The information included in this Form 10-Q should be read in conjunction with information included in the Microsoft Corporation fiscal year 2023 Form 10-K filed with the U.S. Securities and Exchange Commission on July 27, 2023.

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 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.

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.

Investments that are considered variable interest entities (“VIEs”) are evaluated to determine whether we are the primary beneficiary of the VIE, in which case we would be required to consolidate the entity. We evaluate whether we have (1) the power to direct the activities that most significantly impact the VIE’s economic performance, and (2) the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE. We have determined we are not the primary beneficiary of any of our VIE investments. Therefore, our VIE investments are not consolidated and the majority are accounted for under the equity method of accounting.

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

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

Fair Value Measurements

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

•

Level 1 – inputs are based upon unadjusted quoted prices for identical instruments in active markets. Our Level 1 investments include U.S. government securities, common and preferred stock, and mutual funds. Our Level 1 derivative assets and liabilities include those actively traded on exchanges.

•

Level 2 – inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques (e.g. the Black-Scholes model) for which all significant inputs are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Where applicable, these models project future cash flows and discount the future amounts to a present value using market-based observable inputs including interest rate curves, credit spreads, foreign exchange rates, and forward and spot prices for currencies. Our Level 2 investments include commercial paper, certificates of deposit, U.S. agency securities, foreign government bonds, mortgage- and asset-backed securities, corporate notes and bonds, and municipal securities. Our Level 2 derivative assets and liabilities include certain cleared swap contracts and over-the-counter forward, 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.

Contract Balances and Other Receivables

As of March 31, 2024 and June 30, 2023, long-term accounts receivable, net of allowance for doubtful accounts, was $4.8 billion and $4.5 billion, respectively, and is included in other long-term assets in our consolidated balance sheets.

As of March 31, 2024 and June 30, 2023, other receivables related to activities to facilitate the purchase of server components were $10.1 billion and $9.2 billion, respectively, and are included in other current assets in our consolidated balance sheets.

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 March 31, 2024 and June 30, 2023, our financing receivables, net were $2.7 billion and $5.3 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.

Related Party Transactions

In March 2024, we entered into an agreement with Inflection AI, Inc. (“Inflection”), pursuant to which we obtained a non-exclusive license to Inflection’s intellectual property. Reid Hoffman, a member of our Board of Directors, is a co-founder of and serves on the board of directors of Inflection. As of the date of the agreement with Inflection, Reprogrammed Interchange LLC (“Reprogrammed”) and entities affiliated with Greylock Ventures (“Greylock”) each held less than a 10% equity interest in Inflection. Mr. Hoffman may be deemed to beneficially own the shares held by Reprogrammed and Greylock by virtue of his relationship with such entities. Mr. Hoffman did not participate in any portions of the meetings of our Board of Directors or any committee thereof to review and approve the transaction with Inflection.

Recent Accounting Guidance

Segment Reporting – Improvements to Reportable Segment Disclosures

In November 2023, the Financial Accounting Standards Board (“FASB”) issued a new standard to improve reportable segment disclosures. The guidance expands the disclosures required for reportable segments in our annual and interim consolidated financial statements, primarily through enhanced disclosures about significant segment expenses. The standard will be effective for us beginning with our annual reporting for fiscal year 2025 and interim periods thereafter, with early adoption permitted. We are currently evaluating the impact of this standard on our segment disclosures.

Income Taxes – Improvements to Income Tax Disclosures

In December 2023, the FASB issued a new standard to improve income tax disclosures. The guidance requires disclosure of disaggregated income taxes paid, prescribes standardized categories for the components of the effective tax rate reconciliation, and modifies other income tax-related disclosures. The standard will be effective for us beginning with our annual reporting for fiscal year 2026, with early adoption permitted. We are currently evaluating the impact of this standard on our income tax disclosures.

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

9 Months Ended

Mar. 31, 2024

Equity [Abstract]

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

NOTE 16 — ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

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


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


		2024			2023			2024			2023

Derivatives

Balance, beginning of period	$	(9	)	$	(38	)	$	(27	)	$	(13	)
Unrealized gains (losses), net of tax of $(5), $1, $1, and $3		(19	)		5			3			14

Reclassification adjustments for (gains) losses included in other income (expense), net		37			(18	)		32			(62	)
Tax expense (benefit) included in provision for income taxes		(8	)		4			(7	)		14


Amounts reclassified from accumulated other comprehensive loss		29			(14	)		25			(48	)


Net change related to derivatives, net of tax of $3, $(3), $8, and $(11)		10			(9	)		28			(34	)


Balance, end of period	$	1		$	(47	)	$	1		$	(47	)


Investments

Balance, beginning of period	$	(2,511	)	$	(3,687	)	$	(3,582	)	$	(2,138	)
Unrealized gains (losses), net of tax of $(56), $194, $221, and $(225)		(212	)		732			830			(851	)

Reclassification adjustments for losses included in other income (expense), net		13			26			49			68
Tax benefit included in provision for income taxes		(3	)		(5	)		(10	)		(13	)


Amounts reclassified from accumulated other comprehensive loss		10			21			39			55


Net change related to investments, net of tax of $(53), $199, $231, and $(212)		(202	)		753			869			(796	)


Balance, end of period	$	(2,713	)	$	(2,934	)	$	(2,713	)	$	(2,934	)


Translation Adjustments and Other

Balance, beginning of period	$	(2,429	)	$	(2,732	)	$	(2,734	)	$	(2,527	)
Translation adjustments and other, net of tax of $0, $0, $0, and $0		(294	)		69			11			(136	)


Balance, end of period	$	(2,723	)	$	(2,663	)	$	(2,723	)	$	(2,663	)


Accumulated other comprehensive loss, end of period	$	(5,435	)	$	(5,644	)	$	(5,435	)	$	(5,644	)

Document and Entity Information - $ / shares	9 Months Ended
Document and Entity Information - $ / shares	Mar. 31, 2024	Apr. 22, 2024
Entity Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2024
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q3
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 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 Quarterly Report	true
Document Transition Report	false
Entity Common Stock, Shares Outstanding		7,432,305,794
Entity Common Stock, Par Value Per Share	$ 0.00000625
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
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

Unrealized Losses on Debt Investments (Detail) - USD ($) $ in Millions	Mar. 31, 2024	Jun. 30, 2023
Unrealized Losses on Investments [Line Items]
Less than 12 Months - Fair Value	$ 1,998	$ 10,721
Less than 12 Months - Unrealized Losses	(31)	(398)
12 Months or Greater - Fair Value	55,281	53,598
12 Months or Greater - Unrealized Losses	(3,460)	(4,152)
Total Fair Value	57,279	64,319
Total Unrealized Losses	(3,491)	(4,550)
U.S. government and agency securities
Unrealized Losses on Investments [Line Items]
Less than 12 Months - Fair Value	650	7,950
Less than 12 Months - Unrealized Losses	(17)	(336)
12 Months or Greater - Fair Value	48,044	45,273
12 Months or Greater - Unrealized Losses	(3,057)	(3,534)
Total Fair Value	48,694	53,223
Total Unrealized Losses	(3,074)	(3,870)
Foreign government bonds
Unrealized Losses on Investments [Line Items]
Less than 12 Months - Fair Value	40	77
Less than 12 Months - Unrealized Losses	0	(5)
12 Months or Greater - Fair Value	226	391
12 Months or Greater - Unrealized Losses	(12)	(19)
Total Fair Value	266	468
Total Unrealized Losses	(12)	(24)
Mortgage- and asset-backed securities
Unrealized Losses on Investments [Line Items]
Less than 12 Months - Fair Value	264	257
Less than 12 Months - Unrealized Losses	(4)	(5)
12 Months or Greater - Fair Value	339	412
12 Months or Greater - Unrealized Losses	(30)	(34)
Total Fair Value	603	669
Total Unrealized Losses	(34)	(39)
Corporate notes and bonds
Unrealized Losses on Investments [Line Items]
Less than 12 Months - Fair Value	1,000	2,326
Less than 12 Months - Unrealized Losses	(9)	(49)
12 Months or Greater - Fair Value	6,435	7,336
12 Months or Greater - Unrealized Losses	(332)	(534)
Total Fair Value	7,435	9,662
Total Unrealized Losses	(341)	(583)
Municipal securities
Unrealized Losses on Investments [Line Items]
Less than 12 Months - Fair Value	44	111
Less than 12 Months - Unrealized Losses	(1)	(3)
12 Months or Greater - Fair Value	237	186
12 Months or Greater - Unrealized Losses	(29)	(31)
Total Fair Value	281	297
Total Unrealized Losses	$ (30)	$ (34)

Summary of Changes in Accumulated Other Comprehensive Income (Loss) by Component (Parenthetical) (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
Derivatives
Accumulated Other Comprehensive Income (Loss) [Line Items]
Unrealized gains (losses), net of tax	$ (5)	$ 1	$ 1	$ 3
Net change related to other comprehensive income (loss), tax	3	(3)	8	(11)
Investments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Unrealized gains (losses), net of tax	(56)	194	221	(225)
Net change related to other comprehensive income (loss), tax	(53)	199	231	(212)
Translation adjustments and other
Accumulated Other Comprehensive Income (Loss) [Line Items]
Net change related to other comprehensive income (loss), tax	$ 0	$ 0	$ 0	$ 0

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

Supplemental Balance Sheet Information Related to Leases (Detail) - USD ($) $ in Millions	Mar. 31, 2024	Jun. 30, 2023
Operating Leases
Operating lease right-of-use assets	$ 17,371	$ 14,346
Total operating lease liabilities	17,882	15,137
Finance Leases
Accumulated depreciation	(74,945)	(68,251)
Property and equipment, net	121,375	95,641
Total finance lease liabilities	$ 22,905	$ 17,067
Weighted Average Remaining Lease Term
Operating leases	8 years	8 years
Finance leases	12 years	11 years
Weighted Average Discount Rate
Operating leases	3.30%	2.90%
Finance leases	3.80%	3.40%
Finance Lease
Finance Leases
Property and equipment, at cost	$ 27,328	$ 20,538
Accumulated depreciation	(5,865)	(4,647)
Property and equipment, net	21,463	15,891
Other Current Liabilities
Operating Leases
Total operating lease liabilities	3,413	2,409
Finance Leases
Total finance lease liabilities	1,869	1,197
Operating Lease Liabilities
Operating Leases
Total operating lease liabilities	14,469	12,728
Other Long-term Liabilities
Finance Leases
Total finance lease liabilities	$ 21,036	$ 15,870

Income Taxes - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023	Jun. 30, 2023
Income Taxes [Line Items]
Effective tax rate	18.00%	19.00%	18.00%	19.00%
Long-term income taxes	$ 26,786		$ 26,786		$ 25,560
Unrecognized Tax Benefits and Other Income Tax Liabilities
Income Taxes [Line Items]
Long-term income taxes	23,800		23,800		$ 18,700
Unrecognized Tax Benefits and Other Income Tax Liabilities \| Activision Blizzard, Inc.
Income Taxes [Line Items]
Long-term income taxes	$ 1,900		$ 1,900

Components of Lease Expense (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
Leases [Abstract]
Operating lease cost	$ 882	$ 766	$ 2,473	$ 2,112
Finance lease cost:
Amortization of right-of-use assets	453	348	1,241	994
Interest on lease liabilities	190	132	507	364
Total finance lease cost	$ 643	$ 480	$ 1,748	$ 1,358

Debt Investment Maturities (Detail) $ in Millions	Mar. 31, 2024 USD ($)
Adjusted Cost Basis
Due in one year or less	$ 19,613
Due after one year through five years	42,885
Due after five years through 10 years	9,230
Due after 10 years	1,385
Debt investments, Adjusted Cost Basis	73,113
Estimated Fair Value
Due in one year or less	19,428
Due after one year through five years	40,676
Due after five years through 10 years	8,304
Due after 10 years	1,266
Total	$ 69,674

Supplemental Cash Flow Information Related to Leases (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 836	$ 690	$ 2,433	$ 1,989
Operating cash flows from finance leases	190	132	507	364
Financing cash flows from finance leases	323	272	896	790
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	1,831	663	4,482	2,377
Finance leases	$ 3,421	$ 1,044	$ 6,921	$ 2,253

Summary of Changes in Accumulated Other Comprehensive Income (Loss) by Component (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, beginning of period			$ 206,223
Other comprehensive income (loss)	$ (486)	$ 813	908	$ (966)
Balance, end of period	253,152	194,683	253,152	194,683
Derivatives
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, beginning of period	(9)	(38)	(27)	(13)
Unrealized gains (losses), net of tax	(19)	5	3	14
Tax expense (benefit) included in provision for income taxes	(8)	4	(7)	14
Amounts reclassified from accumulated other comprehensive loss	29	(14)	25	(48)
Other comprehensive income (loss)	10	(9)	28	(34)
Balance, end of period	1	(47)	1	(47)
Derivatives \| Other Income (Expense), Net
Accumulated Other Comprehensive Income (Loss) [Line Items]
Reclassification adjustments for (gains) losses included in other income (expense), net	37	(18)	32	(62)
Investments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, beginning of period	(2,511)	(3,687)	(3,582)	(2,138)
Unrealized gains (losses), net of tax	(212)	732	830	(851)
Tax expense (benefit) included in provision for income taxes	(3)	(5)	(10)	(13)
Amounts reclassified from accumulated other comprehensive loss	10	21	39	55
Other comprehensive income (loss)	(202)	753	869	(796)
Balance, end of period	(2,713)	(2,934)	(2,713)	(2,934)
Investments \| Other Income (Expense), Net
Accumulated Other Comprehensive Income (Loss) [Line Items]
Reclassification adjustments for (gains) losses included in other income (expense), net	13	26	49	68
Translation adjustments and other
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, beginning of period	(2,429)	(2,732)	(2,734)	(2,527)
Other comprehensive income (loss)	(294)	69	11	(136)
Balance, end of period	(2,723)	(2,663)	(2,723)	(2,663)
Accumulated other comprehensive loss
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, beginning of period	(4,949)	(6,457)	(6,343)	(4,678)
Other comprehensive income (loss)	(486)	813	908	(966)
Balance, end of period	$ (5,435)	$ (5,644)	$ (5,435)	$ (5,644)

Fair Values of Derivative Instruments (Detail) - USD ($) $ in Millions	Mar. 31, 2024	Jun. 30, 2023
Derivatives Fair Value [Line Items]
Derivative Assets	$ 242	$ 469
Gross amounts of derivatives offset in the balance sheet, assets	(125)	(202)
Cash collateral received, assets	0	0
Net amounts of derivatives, assets	$ 117	$ 267
Derivative Asset, Current, Statement of Financial Position [Extensible Enumeration]	Other current assets	Other current assets
Derivative Asset, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Other long-term assets	Other long-term assets
Derivative Liabilities	$ (787)	$ (805)
Gross amounts of derivatives offset in the balance sheet, liabilities	126	206
Cash collateral received, liabilities	(17)	(125)
Net amounts of derivatives, liabilities	$ (678)	$ (724)
Derivative Liability, Statement of Financial Position [Extensible Enumeration]	Other current liabilities	Other current liabilities
Derivative Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Other long-term liabilities	Other long-term liabilities
Derivative Asset Statement of Financial Position [Extensible Enumeration not Disclosed Flag]	Net amounts of derivatives, assets	Net amounts of derivatives, assets
Derivative Liability Statement of Financial Position [Extensible Enumeration not Disclosed Flag]	Net amounts of derivatives, liabilities	Net amounts of derivatives, liabilities
Level 1
Derivatives Fair Value [Line Items]
Derivative Assets	$ 0	$ 0
Derivative Liabilities	0	0
Level 2
Derivatives Fair Value [Line Items]
Derivative Assets	233	462
Derivative Liabilities	(787)	(805)
Level 3
Derivatives Fair Value [Line Items]
Derivative Assets	9	7
Derivative Liabilities	0	0
Designated as Hedging Instruments \| Foreign Exchange Contracts
Derivatives Fair Value [Line Items]
Derivative Assets	38	34
Derivative Liabilities	(68)	(67)
Designated as Hedging Instruments \| Interest Rate Contracts
Derivatives Fair Value [Line Items]
Derivative Assets	6	16
Derivative Liabilities	0	0
Not Designated as Hedging Instruments \| Foreign Exchange Contracts
Derivatives Fair Value [Line Items]
Derivative Assets	121	249
Derivative Liabilities	(192)	(332)
Not Designated as Hedging Instruments \| Equity Contracts
Derivatives Fair Value [Line Items]
Derivative Assets	72	165
Derivative Liabilities	(526)	(400)
Not Designated as Hedging Instruments \| Other Contracts
Derivatives Fair Value [Line Items]
Derivative Assets	5	5
Derivative Liabilities	(1)	(6)
Short-term Investments
Derivatives Fair Value [Line Items]
Net amounts of derivatives, assets	8	6
Other Current Assets
Derivatives Fair Value [Line Items]
Net amounts of derivatives, assets	103	245
Other Long-term Assets
Derivatives Fair Value [Line Items]
Net amounts of derivatives, assets	6	16
Other Current Liabilities
Derivatives Fair Value [Line Items]
Net amounts of derivatives, liabilities	(271)	(341)
Other Long-term Liabilities
Derivatives Fair Value [Line Items]
Net amounts of derivatives, liabilities	$ (407)	$ (383)

Investments - Additional Information (Detail) - USD ($) $ in Billions	Mar. 31, 2024	Jun. 30, 2023
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	$ 4.0	$ 4.2

Segment Revenue (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
Segment Revenue (Detail) - USD ($) $ in Millions	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
Segment Reporting Information [Line Items]
Revenue	$ 61,858	$ 52,857	$ 180,395	$ 155,726
Productivity and Business Processes
Segment Reporting Information [Line Items]
Revenue	19,570	17,516	57,411	50,983
Intelligent Cloud
Segment Reporting Information [Line Items]
Revenue	26,708	22,081	76,847	63,914
More Personal Computing
Segment Reporting Information [Line Items]
Revenue	$ 15,580	$ 13,260	$ 46,137	$ 40,829

- Definition

+ References

+ Details

Debt - Additional Information (Detail) - USD ($) $ in Millions	9 Months Ended
	Mar. 31, 2024	Jun. 30, 2023
Debt Instrument [Line Items]
Long-term debt fair value	$ 43,200	$ 46,200
Short-term debt	$ 20,535	$ 0
Commercial Paper
Debt Instrument [Line Items]
Short term debt, weighted average interest rate	5.40%
Commercial Paper \| Maximum
Debt Instrument [Line Items]
Short term borrowings maturity	216 days
Commercial Paper \| Minimum
Debt Instrument [Line Items]
Short term borrowings maturity	6 days

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

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

Net Recognized Gains (Losses) on Debt Investments (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
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	$ 8	$ 4	$ 14	$ 19
Realized losses from sales of available-for-sale securities	(24)	(30)	(78)	(73)
Total	(25)	105	(63)	103
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	3	0	15	(13)
Total	$ (13)	$ (26)	$ (49)	$ (67)

INTANGIBLE ASSETS (Tables)

9 Months Ended

Mar. 31, 2024

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


	March 31, 2024								June 30, 2023

Marketing-related	$	16,549		$	(2,945	)	$	13,604	$	4,935	$	(2,473	)	$	2,462
Technology-based		21,735			(9,721	)		12,014		11,245		(7,589	)		3,656
Customer-related		6,049			(2,853	)		3,196		7,281		(4,047	)		3,234
Contract-based		36			(22	)		14		29		(15	)		14


Total	$	44,369	(a)	$	(15,541	)	$	28,828	$	23,490	$	(14,124	)	$	9,366

(a)

Includes intangible assets of $22.0 billion related to Activision Blizzard. See Note 7 – Business Combinations for further information.

Estimated Future Amortization Expense Related to Intangible Assets

The following table outlines the estimated future amortization expense related to intangible assets held as of March 31, 2024:


(In millions)


Year Ending June 30,

2024 (excluding the nine months ended March 31, 2024)	$	1,454
2025		5,860
2026		4,436
2027		2,777
2028		1,869
Thereafter		12,432


Total	$	28,828

Derivatives - Additional Information (Detail) - USD ($)	9 Months Ended
Derivatives - Additional Information (Detail) - USD ($)	Mar. 31, 2024	Jun. 30, 2023
Derivative [Line Items]
Minimum required liquidity under certain counterparty agreements	$ 1,000,000,000
Minimum liquidity for the period as defined by certain counterparty agreements	1,000,000,000
Gross amounts of derivative assets, elected to offset	226,000,000	$ 442,000,000
Gross amounts of derivative liabilities, elected to offset	$ 786,000,000	$ 804,000,000
Senior Unsecured Obligations
Derivative [Line Items]
Debt instrument credit rating	AAA

INCOME STATEMENTS - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
Revenue	$ 61,858	$ 52,857	$ 180,395	$ 155,726
Cost of revenue	18,505	16,128	54,430	49,068
Gross margin	43,353	36,729	125,965	106,658
Research and development	7,653	6,984	21,454	20,456
Sales and marketing	6,207	5,750	17,640	16,555
General and administrative	1,912	1,643	5,363	5,378
Operating income	27,581	22,352	81,508	64,269
Other income (expense), net	(854)	321	(971)	315
Income before income taxes	26,727	22,673	80,537	64,584
Provision for income taxes	4,788	4,374	14,437	12,304
Net income	$ 21,939	$ 18,299	$ 66,100	$ 52,280
Earnings per share:
Basic	$ 2.95	$ 2.46	$ 8.9	$ 7.02
Diluted	$ 2.94	$ 2.45	$ 8.85	$ 6.99
Weighted average shares outstanding:
Basic	7,431	7,441	7,431	7,450
Diluted	7,472	7,464	7,467	7,474
Product
Revenue	$ 17,080	$ 15,588	$ 51,556	$ 47,846
Cost of revenue	4,339	3,941	13,834	13,933
Service and Other
Revenue	44,778	37,269	128,839	107,880
Cost of revenue	$ 14,166	$ 12,187	$ 40,596	$ 35,135