0000950170-24-118967 | 10-Q | XBRL Viewer

INVENTORIES

3 Months Ended

Sep. 30, 2024

NOTE 6 — INVENTORIES

The components of inventories were as follows:


(In millions)


	September 30, 2024		June 30, 2024

Raw materials	$	488	$	394
Work in process		11		7
Finished goods		1,127		845


Total	$	1,626	$	1,246

Summary of Changes in Accumulated Other Comprehensive Income (Loss) by Component (Parenthetical) (Detail) - USD ($) $ in Millions	3 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Derivatives
Accumulated Other Comprehensive Income (Loss) [Line Items]
Unrealized gains (losses), net of tax	$ 7	$ (4)
Net change related to other comprehensive income (loss), tax	(3)	6
Investments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Unrealized gains (losses), net of tax	297	(75)
Net change related to other comprehensive income (loss), tax	296	(69)
Translation adjustments and other
Accumulated Other Comprehensive Income (Loss) [Line Items]
Net change related to other comprehensive income (loss), tax	$ 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

STOCKHOLDERS' EQUITY

3 Months Ended

Sep. 30, 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 September 30, 2024, $7.5 billion remained of this $60.0 billion share repurchase program.

On September 16, 2024, our Board of Directors approved a share repurchase program authorizing up to $60.0 billion in share repurchases. This share repurchase program will commence following completion of the program approved on September 14, 2021, has no expiration date, and may be terminated at any time.

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


(In millions)	Shares		Amount			Shares		Amount


Fiscal Year				2025					2024

First Quarter		7		$	2,800		11		$	3,560

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 $1.3 billion for the first quarter of both fiscal years 2025 and 2024.

Dividends

Our Board of Directors declared the following dividends:

        Declaration Date

        Record Date

        Payment Date

        Dividend
Per Share

        Amount

        Fiscal Year 2025

        (In millions)

        September 16, 2024

        November 21, 2024

        December 12, 2024

        $

        0.83

        $

        6,172

        Fiscal Year 2024

        September 19, 2023

        November 16, 2023

        December 14, 2023

        $

        0.75

        $

        5,574

The dividend declared on September 16, 2024 was included in other current liabilities as of September 30, 2024.

- Definition

The entire disclosure for equity.

+ References

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-Topic 505
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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
	Sep. 30, 2024	Sep. 30, 2023
Foreign Exchange Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Gains (Losses) on Derivatives Not Designated as Hedges	$ (383)	$ 206
Equity Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Gains (Losses) on Derivatives Not Designated as Hedges	(348)	113
Other Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Gains (Losses) on Derivatives Not Designated as Hedges	24	(33)
Fair Value Hedges \| Interest Rate Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Derivatives	20	(16)
Hedged items	(32)	3
Cash Flow Hedges \| Foreign Exchange Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Amount reclassified from accumulated other comprehensive loss	$ 49	$ (46)

Supplemental Consolidated Financial Results on Unaudited Pro Forma Basis (Detail) - Activision Blizzard, Inc. $ / shares in Units, $ in Millions	3 Months Ended
	Sep. 30, 2023 USD ($) $ / shares
Business Acquisition [Line Items]
Revenue	$ 58,561
Net income	$ 22,314
Diluted earnings per share \| $ / shares	$ 2.99

Supplemental Balance Sheet Information Related to Leases (Detail) - USD ($) $ in Millions	Sep. 30, 2024	Jun. 30, 2024
Operating Leases
Operating lease right-of-use assets	$ 20,528	$ 18,961
Total operating lease liabilities	20,370	19,077
Finance Leases
Accumulated depreciation	(80,517)	(76,421)
Property and equipment, net	152,863	135,591
Total finance lease liabilities	$ 31,351	$ 27,145
Weighted Average Remaining Lease Term
Operating leases	7 years	7 years
Finance leases	12 years	12 years
Weighted Average Discount Rate
Operating leases	3.40%	3.30%
Finance leases	4.00%	3.90%
Finance Lease
Finance Leases
Property and equipment, at cost	$ 37,186	$ 32,248
Accumulated depreciation	(7,070)	(6,386)
Property and equipment, net	30,116	25,862
Other Current Liabilities
Operating Leases
Total operating lease liabilities	4,009	3,580
Finance Leases
Total finance lease liabilities	2,504	2,349
Operating Lease Liabilities
Operating Leases
Total operating lease liabilities	16,361	15,497
Other Long-term Liabilities
Finance Leases
Total finance lease liabilities	$ 28,847	$ 24,796

CASH FLOWS STATEMENTS - USD ($) $ in Millions	3 Months Ended
CASH FLOWS STATEMENTS - USD ($) $ in Millions	Sep. 30, 2024	Sep. 30, 2023
Operations
Net income	$ 24,667	$ 22,291
Adjustments to reconcile net income to net cash from operations:
Depreciation, amortization, and other	7,383	3,921
Stock-based compensation expense	2,832	2,507
Net recognized losses (gains) on investments and derivatives	(125)	14
Deferred income taxes	(1,433)	(568)
Changes in operating assets and liabilities:
Accounts receivable	14,037	11,034
Inventories	(373)	(505)
Other current assets	(82)	(796)
Other long-term assets	(1,761)	(2,013)
Accounts payable	(916)	1,214
Unearned revenue	(5,553)	(4,126)
Income taxes	1,016	1,425
Other current liabilities	(5,479)	(4,106)
Other long-term liabilities	(33)	291
Net cash from operations	34,180	30,583
Financing
Proceeds from issuance (repayments) of debt, maturities of 90 days or less, net	(5,746)	18,692
Proceeds from issuance of debt	0	7,073
Repayments of debt	(966)	(1,500)
Common stock issued	706	685
Common stock repurchased	(4,107)	(4,831)
Common stock cash dividends paid	(5,574)	(5,051)
Other, net	(889)	(307)
Net cash from (used in) financing	(16,576)	14,761
Investing
Additions to property and equipment	(14,923)	(9,917)
Acquisition of companies, net of cash acquired, and purchases of intangible and other assets	(1,849)	(1,186)
Purchases of investments	(1,620)	(8,460)
Maturities of investments	2,136	15,718
Sales of investments	1,968	5,330
Other, net	(913)	(982)
Net cash from (used in) investing	(15,201)	503
Effect of foreign exchange rates on cash and cash equivalents	122	(99)
Net change in cash and cash equivalents	2,525	45,748
Cash and cash equivalents, beginning of period	18,315	34,704
Cash and cash equivalents, end of period	$ 20,840	$ 80,452

UNEARNED REVENUE

3 Months Ended

Sep. 30, 2024

Revenue from Contract with Customer [Abstract]

UNEARNED REVENUE

NOTE 12 — UNEARNED REVENUE

Unearned revenue by segment was as follows:


(In millions)


	September 30, 2024		June 30, 2024

Productivity and Business Processes	$	40,429	$	43,599
Intelligent Cloud		12,397		13,683
More Personal Computing		2,863		2,902


Total	$	55,689	$	60,184

We have recast certain prior period amounts to conform to the way we internally manage and monitor our business. Refer to Note 1 – Accounting Policies for further information.

Changes in unearned revenue were as follows:


(In millions)


Three Months Ended September 30, 2024

Balance, beginning of period	$	60,184
Deferral of revenue		37,642
Recognition of unearned revenue		(42,137	)


Balance, end of period	$	55,689

Revenue allocated to remaining performance obligations, which includes unearned revenue and amounts that will be invoiced and recognized as revenue in future periods, was $266 billion as of September 30, 2024, of which $259 billion is related to the commercial portion of revenue. We expect to recognize approximately 45% of our total company remaining performance obligation 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.

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Gains (Losses), Net of Tax, on Derivative Instruments Recognized in Consolidated Comprehensive Income Statements (Detail) - USD ($) $ in Millions	3 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Cash Flow Hedges \| Foreign Exchange Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Included in effectiveness assessment	$ 29	$ (15)

GOODWILL (Tables)

3 Months Ended

Sep. 30, 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, 2024		Acquisitions		Other		September 30, 2024


Productivity and Business Processes	$	31,361	$	0	$	44	$	31,405
Intelligent Cloud		25,648		0		22		25,670
More Personal Computing		62,211		0		88		62,299


Total	$	119,220	$	0	$	154	$	119,374

- Definition

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

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+ Details

Debt - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2024	Sep. 30, 2024
Debt Instrument [Line Items]
Long-term debt fair value	$ 42,300	$ 44,600
Short-term debt	$ 6,693	$ 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	152 days
Commercial Paper \| Minimum
Debt Instrument [Line Items]
Short term borrowings maturity	28 days

- Definition

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+ Details

Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible assets amortization expense	$ 1,400	$ 636

INTANGIBLE ASSETS

3 Months Ended

Sep. 30, 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


	September 30, 2024							June 30, 2024

Marketing-related	$	16,490	$	(3,296	)	$	13,194	$	16,500	$	(3,101	)	$	13,399
Technology-based		22,426		(11,709	)		10,717		21,913		(10,741	)		11,172
Customer-related		6,039		(3,261	)		2,778		6,038		(3,051	)		2,987
Contract-based		81		(19	)		62		58		(19	)		39


Total	$	45,036	$	(18,285	)	$	26,751	$	44,509	$	(16,912	)	$	27,597

Intangible assets amortization expense was $1.4 billion and $636 million for the three months ended September 30, 2024 and 2023, respectively.

The following table outlines the estimated future amortization expense related to intangible assets held as of September 30, 2024:


(In millions)


Year Ending June 30,

2025 (excluding the three months ended September 30, 2024)	$	4,563
2026		4,538
2027		2,847
2028		1,961
2029		1,780
Thereafter		11,062


Total	$	26,751

SEGMENT INFORMATION AND GEOGRAPHIC DATA (Tables)

3 Months Ended

Sep. 30, 2024

Segment Reporting [Abstract]

Segment Revenue

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


(In millions)


Three Months Ended September 30,	2024		2023

Revenue

Productivity and Business Processes	$	28,317	$	25,226
Intelligent Cloud		24,092		20,013
More Personal Computing		13,176		11,278


Total	$	65,585	$	56,517


Operating Income

Productivity and Business Processes	$	16,516	$	14,297
Intelligent Cloud		10,503		8,908
More Personal Computing		3,533		3,690


Total	$	30,552	$	26,895

Segment Operating Income (Loss)

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


(In millions)


Three Months Ended September 30,	2024		2023

Revenue

Productivity and Business Processes	$	28,317	$	25,226
Intelligent Cloud		24,092		20,013
More Personal Computing		13,176		11,278


Total	$	65,585	$	56,517


Operating Income

Productivity and Business Processes	$	16,516	$	14,297
Intelligent Cloud		10,503		8,908
More Personal Computing		3,533		3,690


Total	$	30,552	$	26,895

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 September 30,	2024		2023

United States (a)	$	33,913	$	28,812
Other countries		31,672		27,705


Total	$	65,585	$	56,517

(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 September 30,	2024		2023

Server products and cloud services	$	22,155	$	18,062
Microsoft 365 Commercial products and cloud services		20,449		18,044
Gaming		5,621		3,919
Windows and Devices		4,329		4,340
LinkedIn		4,292		3,913
Search and news advertising		3,225		3,018
Enterprise and partner services		1,928		1,944
Dynamics products and cloud services		1,849		1,626
Microsoft 365 Consumer products and cloud services		1,727		1,643
Other		10		8


Total	$	65,585	$	56,517

Our Microsoft Cloud revenue, which includes Microsoft 365 Commercial cloud, Azure and other cloud services, the commercial portion of LinkedIn, and Dynamics 365, was $38.9 billion and $31.9 billion for the three months ended September 30, 2024 and 2023, respectively. These amounts are primarily included in Microsoft 365 Commercial products and cloud services, Server products and cloud services, LinkedIn, and Dynamics products and cloud services in the table above.

Estimated Future Amortization Expense Related to Intangible Assets (Detail) - USD ($) $ in Millions	Sep. 30, 2024	Jun. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Year Ending June 30, 2025 (excluding the three months ended September 30, 2024)	$ 4,563
Year Ending June 30, 2026	4,538
Year Ending June 30, 2027	2,847
Year Ending June 30, 2028	1,961
Year Ending June 30, 2029	1,780
Thereafter	11,062
Net Carrying Amount	$ 26,751	$ 27,597

DERIVATIVES

3 Months Ended

Sep. 30, 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 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 September 30, 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)	September 30, 2024		June 30, 2024


Designated as Hedging Instruments

Foreign exchange contracts purchased	$	1,492	$	1,492
Interest rate contracts purchased		1,144		1,100

Not Designated as Hedging Instruments

Foreign exchange contracts purchased		8,438		7,167
Foreign exchange contracts sold		22,559		31,793
Equity contracts purchased		4,290		4,016
Equity contracts sold		2,165		2,165
Other contracts purchased		2,829		2,113
Other contracts sold		1,121		811

Fair Values of Derivative Instruments

The following table presents our derivative instruments:


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


	September 30, 2024						June 30, 2024

Designated as Hedging Instruments

Foreign exchange contracts	$	50		$	(65	)	$	24		$	(76	)
Interest rate contracts		5			0			19			0

Not Designated as Hedging Instruments

Foreign exchange contracts		189			(615	)		213			(230	)
Equity contracts		68			(804	)		63			(491	)
Other contracts		6			(6	)		12			(3	)


Gross amounts of derivatives		318			(1,490	)		331			(800	)
Gross amounts of derivatives offset in the balance sheets		(196	)		198			(151	)		152
Cash collateral received		0			(18	)		0			(104	)


Net amounts of derivatives	$	122		$	(1,310	)	$	180		$	(752	)


Reported as

Short-term investments	$	(1	)	$	0		$	12		$	0
Other current assets		118			0			149			0
Other long-term assets		5			0			19			0
Other current liabilities		0			(900	)		0			(401	)
Other long-term liabilities		0			(410	)		0			(351	)


Total	$	122		$	(1,310	)	$	180		$	(752	)

Gross derivative assets and liabilities subject to legally enforceable master netting agreements for which we have elected to offset were $306 million and $1.5 billion, respectively, as of September 30, 2024, and $304 million and $800 million, respectively, as of June 30, 2024.

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


(In millions)	Level 1				Level 2		Level 3		Total


September 30, 2024

Derivative assets	$	0		$	313		$	5	$	318
Derivative liabilities		(1	)		(1,489	)		0		(1,490	)

June 30, 2024

Derivative assets		0			327			4		331
Derivative liabilities		(1	)		(799	)		0		(800	)

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


(In millions)


Three Months Ended September 30,		2024			2023

Designated as Fair Value Hedging Instruments

Interest rate contracts
Derivatives	$	20		$	(16	)
Hedged items		(32	)		3

Designated as Cash Flow Hedging Instruments

Foreign exchange contracts
Amount reclassified from accumulated other comprehensive loss		49			(46	)

Not Designated as Hedging Instruments

Foreign exchange contracts		(383	)		206
Equity contracts		(348	)		113
Other contracts		24			(33	)

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


(In millions)


Three Months Ended September 30,	2024		2023

Designated as Cash Flow Hedging Instruments

Foreign exchange contracts
Included in effectiveness assessment	$	29	$	(15	)

Fair Values of Derivative Instruments (Detail) - USD ($) $ in Millions	Sep. 30, 2024	Jun. 30, 2024
Derivatives Fair Value [Line Items]
Derivative Assets	$ 318	$ 331
Gross amounts of derivatives offset in the balance sheets, assets	(196)	(151)
Cash collateral received, assets	0	0
Net amounts of derivatives, assets	$ 122	$ 180
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	$ (1,490)	$ (800)
Gross amounts of derivatives offset in the balance sheets, liabilities	198	152
Cash collateral received, liabilities	(18)	(104)
Net amounts of derivatives, liabilities	$ (1,310)	$ (752)
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	(1)	(1)
Level 2
Derivatives Fair Value [Line Items]
Derivative Assets	313	327
Derivative Liabilities	(1,489)	(799)
Level 3
Derivatives Fair Value [Line Items]
Derivative Assets	5	4
Derivative Liabilities	0	0
Designated as Hedging Instruments \| Foreign Exchange Contracts
Derivatives Fair Value [Line Items]
Derivative Assets	50	24
Derivative Liabilities	(65)	(76)
Designated as Hedging Instruments \| Interest Rate Contracts
Derivatives Fair Value [Line Items]
Derivative Assets	5	19
Derivative Liabilities	0	0
Not Designated as Hedging Instruments \| Foreign Exchange Contracts
Derivatives Fair Value [Line Items]
Derivative Assets	189	213
Derivative Liabilities	(615)	(230)
Not Designated as Hedging Instruments \| Equity Contracts
Derivatives Fair Value [Line Items]
Derivative Assets	68	63
Derivative Liabilities	(804)	(491)
Not Designated as Hedging Instruments \| Other Contracts
Derivatives Fair Value [Line Items]
Derivative Assets	6	12
Derivative Liabilities	(6)	(3)
Short-term Investments
Derivatives Fair Value [Line Items]
Net amounts of derivatives, assets	(1)	12
Other Current Assets
Derivatives Fair Value [Line Items]
Net amounts of derivatives, assets	118	149
Other Long-term Assets
Derivatives Fair Value [Line Items]
Net amounts of derivatives, assets	5	19
Other Current Liabilities
Derivatives Fair Value [Line Items]
Net amounts of derivatives, liabilities	(900)	(401)
Other Long-term Liabilities
Derivatives Fair Value [Line Items]
Net amounts of derivatives, liabilities	$ (410)	$ (351)

INVESTMENTS (Tables)

3 Months Ended

Sep. 30, 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


September 30, 2024

Changes in Fair Value Recorded in Other Comprehensive Income

Commercial paper	Level 2	$	6,513	$	0	$	0		$	6,513		$	6,513	$	0		$	0
Certificates of deposit	Level 2		2,899		0		0			2,899			2,855		44			0
U.S. government securities	Level 1		48,764		16		(1,828	)		46,952			0		46,952			0
U.S. agency securities	Level 2		17		0		0			17			0		17			0
Foreign government bonds	Level 2		288		8		(9	)		287			0		287			0
Mortgage- and asset-backed securities	Level 2		937		10		(22	)		925			0		925			0
Corporate notes and bonds	Level 2		8,932		114		(166	)		8,880			0		8,880			0
Corporate notes and bonds	Level 3		1,639		0		(1	)		1,638			0		138			1,500
Municipal securities	Level 2		263		2		(8	)		257			0		257			0
Municipal securities	Level 3		104		0		(15	)		89			0		89			0


Total debt investments		$	70,356	$	150	$	(2,049	)	$	68,457		$	9,368	$	57,589		$	1,500


Changes in Fair Value Recorded in Net Income

Equity investments	Level 1								$	4,252		$	884	$	0		$	3,368
Equity investments	Other									10,910			0		0			10,910


Total equity investments									$	15,162		$	884	$	0		$	14,278


Cash									$	10,588		$	10,588	$	0		$	0
Derivatives, net (a)										(1	)		0		(1	)		0


Total									$	94,206		$	20,840	$	57,588		$	15,778


(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, 2024

Changes in Fair Value Recorded in Other Comprehensive Income

Commercial paper	Level 2	$	4,666	$	0	$	0		$	4,666	$	4,666	$	0	$	0
Certificates of deposit	Level 2		1,547		0		0			1,547		1,503		44		0
U.S. government securities	Level 1		49,603		4		(2,948	)		46,659		14		46,645		0
U.S. agency securities	Level 2		17		0		0			17		0		17		0
Foreign government bonds	Level 2		319		3		(16	)		306		0		306		0
Mortgage- and asset-backed securities	Level 2		944		3		(35	)		912		0		912		0
Corporate notes and bonds	Level 2		9,106		28		(318	)		8,816		0		8,816		0
Corporate notes and bonds	Level 3		1,641		0		(1	)		1,640		0		140		1,500
Municipal securities	Level 2		262		0		(13	)		249		0		249		0
Municipal securities	Level 3		104		0		(17	)		87		0		87		0


Total debt investments		$	68,209	$	38	$	(3,348	)	$	64,899	$	6,183	$	57,216	$	1,500


Changes in Fair Value Recorded in Net Income

Equity investments	Level 1								$	3,547	$	561	$	0	$	2,986
Equity investments	Other									10,114		0		0		10,114


Total equity investments									$	13,661	$	561	$	0	$	13,100


Cash									$	11,571	$	11,571	$	0	$	0
Derivatives, net (a)										12		0		12		0


Total									$	90,143	$	18,315	$	57,228	$	14,600

(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


September 30, 2024

U.S. government and agency securities	$	146	$	(2	)	$	46,240	$	(1,826	)	$	46,386	$	(1,828	)
Foreign government bonds		12		(1	)		144		(8	)		156		(9	)
Mortgage- and asset-backed securities		0		0			287		(22	)		287		(22	)
Corporate notes and bonds		134		(1	)		4,963		(166	)		5,097		(167	)
Municipal securities		0		0			242		(23	)		242		(23	)


Total	$	292	$	(4	)	$	51,876	$	(2,045	)	$	52,168	$	(2,049	)


	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, 2024

U.S. government and agency securities	$	529	$	(12	)	$	45,821	$	(2,936	)	$	46,350	$	(2,948	)
Foreign government bonds		79		(2	)		180		(14	)		259		(16	)
Mortgage- and asset-backed securities		201		(1	)		409		(34	)		610		(35	)
Corporate notes and bonds		1,310		(9	)		5,779		(310	)		7,089		(319	)
Municipal securities		38		(1	)		243		(29	)		281		(30	)


Total	$	2,157	$	(25	)	$	52,432	$	(3,323	)	$	54,589	$	(3,348	)

Debt Investment Maturities

The following table outlines maturities of our debt investments as of September 30, 2024:


(In millions)	Adjusted Cost Basis		Estimated Fair Value


September 30, 2024

Due in one year or less	$	24,446	$	24,331
Due after one year through five years		37,153		35,927
Due after five years through 10 years		7,338		6,865
Due after 10 years		1,419		1,334


Total	$	70,356	$	68,457

ACCOUNTING POLICIES (Policies)	3 Months Ended
ACCOUNTING POLICIES (Policies)	Sep. 30, 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 2024 Form 10-K filed with the U.S. Securities and Exchange Commission on July 30, 2024.
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.
Recast of Certain Prior Period Information	Recast of Certain Prior Period Information In August 2024, we announced changes to the composition of our segments. These changes align our segments with how we currently manage our business, most notably bringing the commercial components of Microsoft 365 together in the Productivity and Business Processes segment. Beginning in fiscal year 2025, the information that our chief operating decision maker is regularly provided and reviews for purposes of allocating resources and assessing performance reflects these segment changes. Prior period segment information has been recast to conform to the way we internally manage and monitor our business during fiscal year 2025. These changes impacted Note 8 – Goodwill, Note 12 – Unearned Revenue, and Note 17 – Segment Information and Geographic Data. The recast of prior period information had no impact on our consolidated balance sheets, consolidated income statements, or consolidated cash flows statements.
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. We have an investment in OpenAI Global, LLC (“OpenAI”) and have made total funding commitments of $13 billion. The investment is 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 September 30, 2024 and June 30, 2024, long-term accounts receivable, net of allowance for doubtful accounts, was $4.8 billion and $4.9 billion, respectively, and is included in other long-term assets in our consolidated balance sheets. As of September 30, 2024 and June 30, 2024, other receivables related to activities to facilitate the purchase of server components were $11.4 billion and $10.5 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 September 30, 2024 and June 30, 2024, our financing receivables, net were $4.3 billion and $4.5 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.

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Sep. 30, 2024
Trading Arrangements, by Individual
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

Contingencies - Additional Information (Detail) $ in Millions	Sep. 30, 2024 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Accrual for disclosed loss contingencies, current, ending balance	$ 492
Amount not accrued for estimated maximum losses for disclosed loss contingencies	$ 600

Components of Other Income (Expense), Net (Detail) - USD ($) $ in Millions	3 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Other Income and Expenses [Abstract]
Interest and dividends income	$ 681	$ 1,166
Interest expense	(582)	(525)
Net recognized gains (losses) on investments	463	(107)
Net gains (losses) on derivatives	(338)	93
Net gains (losses) on foreign currency remeasurements	176	(101)
Other, net	(683)	(137)
Total	$ (283)	$ 389

Carrying Amount of Goodwill (Detail) $ in Millions	3 Months Ended
Carrying Amount of Goodwill (Detail) $ in Millions	Sep. 30, 2024 USD ($)
Goodwill [Line Items]
Beginning Balance	$ 119,220
Acquisitions	0
Other	154
Ending Balance	119,374
Productivity and Business Processes
Goodwill [Line Items]
Beginning Balance	31,361
Acquisitions	0
Other	44
Ending Balance	31,405
Intelligent Cloud
Goodwill [Line Items]
Beginning Balance	25,648
Acquisitions	0
Other	22
Ending Balance	25,670
More Personal Computing
Goodwill [Line Items]
Beginning Balance	62,211
Acquisitions	0
Other	88
Ending Balance	$ 62,299

- Definition

Amount, after accumulated impairment loss, of asset representing future economic benefit arising from other asset acquired in business combination or from joint venture formation or both, that is not individually identified and separately recognized.

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INTANGIBLE ASSETS (Tables)

3 Months Ended

Sep. 30, 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


	September 30, 2024							June 30, 2024

Marketing-related	$	16,490	$	(3,296	)	$	13,194	$	16,500	$	(3,101	)	$	13,399
Technology-based		22,426		(11,709	)		10,717		21,913		(10,741	)		11,172
Customer-related		6,039		(3,261	)		2,778		6,038		(3,051	)		2,987
Contract-based		81		(19	)		62		58		(19	)		39


Total	$	45,036	$	(18,285	)	$	26,751	$	44,509	$	(16,912	)	$	27,597

Estimated Future Amortization Expense Related to Intangible Assets

The following table outlines the estimated future amortization expense related to intangible assets held as of September 30, 2024:


(In millions)


Year Ending June 30,

2025 (excluding the three months ended September 30, 2024)	$	4,563
2026		4,538
2027		2,847
2028		1,961
2029		1,780
Thereafter		11,062


Total	$	26,751

Accounting Policies - Additional Information (Detail) - USD ($) $ in Billions	Sep. 30, 2024	Jun. 30, 2024
Significant Accounting Policies [Line Items]
Long-term accounts receivable, net of allowance for doubtful accounts	$ 4.8	$ 4.9
Other receivables related to purchase of components	11.4	10.5
Financing receivables, net	4.3	$ 4.5
OpenAI Global, LLC
Significant Accounting Policies [Line Items]
Total funding commitments	$ 13.0
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%

EARNINGS PER SHARE (Tables)

3 Months Ended

Sep. 30, 2024

Earnings Per Share [Abstract]

Basic and Diluted Earnings Per Share

The components of basic and diluted EPS were as follows:


(In millions, except earnings per share)


Three Months Ended September 30,	2024		2023

Net income available for common shareholders (A)	$	24,667	$	22,291


Weighted average outstanding shares of common stock (B)		7,433		7,429
Dilutive effect of stock-based awards		37		33


Common stock and common stock equivalents (C)		7,470		7,462


Earnings Per Share

Basic (A/B)	$	3.32	$	3.00
Diluted (A/C)	$	3.30	$	2.99

OTHER INCOME (EXPENSE), NET

3 Months Ended

Sep. 30, 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 September 30,	2024			2023

Interest and dividends income	$	681		$	1,166
Interest expense		(582	)		(525	)
Net recognized gains (losses) on investments		463			(107	)
Net gains (losses) on derivatives		(338	)		93
Net gains (losses) on foreign currency remeasurements		176			(101	)
Other, net		(683	)		(137	)


Total	$	(283	)	$	389

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

Net Recognized Gains (Losses) on Investments

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


(In millions)


Three Months Ended September 30,	2024			2023

Realized gains from sales of available-for-sale securities	$	8		$	2
Realized losses from sales of available-for-sale securities		(15	)		(25	)
Impairments and allowance for credit losses		12			(6	)


Total	$	5		$	(29	)

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


(In millions)


Three Months Ended September 30,	2024			2023

Net realized gains on investments sold	$	65		$	45
Net unrealized gains (losses) on investments still held		412			(123	)
Impairments of investments		(19	)		0


Total	$	458		$	(78	)

DERIVATIVES (Tables)

3 Months Ended

Sep. 30, 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)	September 30, 2024		June 30, 2024


Designated as Hedging Instruments

Foreign exchange contracts purchased	$	1,492	$	1,492
Interest rate contracts purchased		1,144		1,100

Not Designated as Hedging Instruments

Foreign exchange contracts purchased		8,438		7,167
Foreign exchange contracts sold		22,559		31,793
Equity contracts purchased		4,290		4,016
Equity contracts sold		2,165		2,165
Other contracts purchased		2,829		2,113
Other contracts sold		1,121		811

Fair Values of Derivative Instruments

The following table presents our derivative instruments:


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


	September 30, 2024						June 30, 2024

Designated as Hedging Instruments

Foreign exchange contracts	$	50		$	(65	)	$	24		$	(76	)
Interest rate contracts		5			0			19			0

Not Designated as Hedging Instruments

Foreign exchange contracts		189			(615	)		213			(230	)
Equity contracts		68			(804	)		63			(491	)
Other contracts		6			(6	)		12			(3	)


Gross amounts of derivatives		318			(1,490	)		331			(800	)
Gross amounts of derivatives offset in the balance sheets		(196	)		198			(151	)		152
Cash collateral received		0			(18	)		0			(104	)


Net amounts of derivatives	$	122		$	(1,310	)	$	180		$	(752	)


Reported as

Short-term investments	$	(1	)	$	0		$	12		$	0
Other current assets		118			0			149			0
Other long-term assets		5			0			19			0
Other current liabilities		0			(900	)		0			(401	)
Other long-term liabilities		0			(410	)		0			(351	)


Total	$	122		$	(1,310	)	$	180		$	(752	)

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


(In millions)	Level 1				Level 2		Level 3		Total


September 30, 2024

Derivative assets	$	0		$	313		$	5	$	318
Derivative liabilities		(1	)		(1,489	)		0		(1,490	)

June 30, 2024

Derivative assets		0			327			4		331
Derivative liabilities		(1	)		(799	)		0		(800	)

Gains (Losses) on Derivative Instruments

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


(In millions)


Three Months Ended September 30,		2024			2023

Designated as Fair Value Hedging Instruments

Interest rate contracts
Derivatives	$	20		$	(16	)
Hedged items		(32	)		3

Designated as Cash Flow Hedging Instruments

Foreign exchange contracts
Amount reclassified from accumulated other comprehensive loss		49			(46	)

Not Designated as Hedging Instruments

Foreign exchange contracts		(383	)		206
Equity contracts		(348	)		113
Other contracts		24			(33	)

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 September 30,	2024		2023

Designated as Cash Flow Hedging Instruments

Foreign exchange contracts
Included in effectiveness assessment	$	29	$	(15	)

Investments - Additional Information (Detail) - USD ($) $ in Billions	Sep. 30, 2024	Jun. 30, 2024
Investments, Debt and Equity Securities [Abstract]
Equity investments without readily determinable fair values measured at cost with adjustments for observable changes in price or impairments	$ 3.8	$ 3.9
Equity investments measured using equity method	$ 6.8	$ 6.0

- Definition

This item represents the carrying amount on the entity's balance sheet of its investment in common stock of an equity method investee. This is not an indicator of the fair value of the investment, rather it is the initial cost adjusted for the entity's share of earnings and losses of the investee, adjusted for any distributions (dividends) and other than temporary impairment (OTTI) losses recognized.

+ References + Details

Acquired Intangible Assets (Detail) - Activision Blizzard, Inc. $ in Millions	Oct. 13, 2023 USD ($)
Acquired Finite-Lived Intangible Assets [Line Items]
Fair value of intangible assets acquired	$ 21,969
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

LEASES

3 Months Ended

Sep. 30, 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 September 30,		2024		2023

Operating lease cost	$	1,161	$	775


Finance lease cost:
Amortization of right-of-use assets	$	696	$	380
Interest on lease liabilities		275		149


Total finance lease cost	$	971	$	529

Supplemental cash flow information related to leases was as follows:


(In millions)


Three Months Ended September 30,		2024		2023

Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	1,207	$	795
Operating cash flows from finance leases		275		149
Financing cash flows from finance leases		802		285

Right-of-use assets obtained in exchange for lease obligations:
Operating leases		1,892		1,804
Finance leases		4,332		1,704

Supplemental balance sheet information related to leases was as follows:


(In millions, except lease term and discount rate)


	September 30, 2024			June 30, 2024

Operating Leases

Operating lease right-of-use assets	$	20,528		$	18,961


Other current liabilities	$	4,009		$	3,580
Operating lease liabilities		16,361			15,497


Total operating lease liabilities	$	20,370		$	19,077


Finance Leases

Property and equipment, at cost	$	37,186		$	32,248
Accumulated depreciation		(7,070	)		(6,386	)


Property and equipment, net	$	30,116		$	25,862


Other current liabilities	$	2,504		$	2,349
Other long-term liabilities		28,847			24,796


Total finance lease liabilities	$	31,351		$	27,145


Weighted Average Remaining Lease Term

Operating leases		7 years			7 years
Finance leases		12 years			12 years

Weighted Average Discount Rate

Operating leases		3.4%			3.3%
Finance leases		4.0%			3.9%

The following table outlines maturities of our lease liabilities as of September 30, 2024:


(In millions)


Year Ending June 30,	Operating Leases			Finance Leases

2025 (excluding the three months ended September 30, 2024)	$	3,386		$	2,742
2026		4,122			3,697
2027		3,411			3,720
2028		2,754			3,706
2029		2,124			3,099
Thereafter		7,174			22,745


Total lease payments		22,971			39,709
Less imputed interest		(2,601	)		(8,358	)


Total	$	20,370		$	31,351

As of September 30, 2024, we had additional operating and finance leases, primarily for datacenters, that had not yet commenced of $7.4 billion and $108.7 billion, respectively. These operating and finance leases will commence between fiscal year 2025 and fiscal year 2030 with lease terms of 1 year to 20 years.

COMPREHENSIVE INCOME STATEMENTS - USD ($) $ in Millions	3 Months Ended
COMPREHENSIVE INCOME STATEMENTS - USD ($) $ in Millions	Sep. 30, 2024	Sep. 30, 2023
Statement of Comprehensive Income [Abstract]
Net income	$ 24,667	$ 22,291
Other comprehensive income (loss), net of tax:
Net change related to derivatives	(10)	21
Net change related to investments	1,114	(260)
Translation adjustments and other	304	(355)
Other comprehensive income (loss)	1,408	(594)
Comprehensive income	$ 26,075	$ 21,697

- Definition

Amount after tax of increase (decrease) in equity from transactions and other events and circumstances from net income and other comprehensive income, attributable to parent entity. Excludes changes in equity resulting from investments by owners and distributions to owners.

+ References + Details

- 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 - Additional Information (Detail) - USD ($)	3 Months Ended
Derivatives - Additional Information (Detail) - USD ($)	Sep. 30, 2024	Jun. 30, 2024
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	306,000,000	$ 304,000,000
Gross amounts of derivative liabilities, elected to offset	$ 1,500,000,000	$ 800,000,000
Senior Unsecured Obligations
Derivative [Line Items]
Debt instrument credit rating	AAA

BALANCE SHEETS - USD ($) $ in Millions	Sep. 30, 2024	Jun. 30, 2024
Current assets:
Cash and cash equivalents	$ 20,840	$ 18,315
Short-term investments	57,588	57,228
Total cash, cash equivalents, and short-term investments	78,428	75,543
Accounts receivable, net of allowance for doubtful accounts of $647 and $830	44,148	56,924
Inventories	1,626	1,246
Other current assets	25,724	26,021
Total current assets	149,926	159,734
Property and equipment, net of accumulated depreciation of $80,517 and $76,421	152,863	135,591
Operating lease right-of-use assets	20,528	18,961
Equity and other investments	15,778	14,600
Goodwill	119,374	119,220
Intangible assets, net	26,751	27,597
Other long-term assets	37,793	36,460
Total assets	523,013	512,163
Current liabilities:
Accounts payable	22,768	21,996
Short-term debt	0	6,693
Current portion of long-term debt	2,249	2,249
Accrued compensation	8,326	12,564
Short-term income taxes	9,717	5,017
Short-term unearned revenue	53,026	57,582
Other current liabilities	19,114	19,185
Total current liabilities	115,200	125,286
Long-term debt	42,868	42,688
Long-term income taxes	24,452	27,931
Long-term unearned revenue	2,663	2,602
Deferred income taxes	2,581	2,618
Operating lease liabilities	16,361	15,497
Other long-term liabilities	31,165	27,064
Total liabilities	235,290	243,686
Commitments and contingencies
Stockholders’ equity:
Common stock and paid-in capital - shares authorized 24,000; outstanding 7,436 and 7,434	102,976	100,923
Retained earnings	188,929	173,144
Accumulated other comprehensive loss	(4,182)	(5,590)
Total stockholders’ equity	287,723	268,477
Total liabilities and stockholders’ equity	$ 523,013	$ 512,163

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

Sep. 30, 2024

Jun. 30, 2024

Cash Cash Equivalents And Investments [Line Items]

Debt investments, Adjusted Cost Basis

$ 70,356

Debt investments, Recorded Basis

68,457

Derivative, net

122

$ 180

Cash and cash equivalents

20,840

18,315

Short-term Investments

57,588

57,228

Equity and other investments

15,778

14,600

Cash, cash equivalents, and investments

94,206

90,143

Equity Securities

Cash Cash Equivalents And Investments [Line Items]

Equity investments, Recorded Basis

15,162

13,661

Cash and cash equivalents

884

561

Short-term Investments

Equity and other investments

14,278

13,100

Equity Securities | Other

Cash Cash Equivalents And Investments [Line Items]

Equity investments, Recorded Basis

10,910

10,114

Cash and cash equivalents

Short-term Investments

Equity and other investments

10,910

10,114

Equity Securities | Level 1

Cash Cash Equivalents And Investments [Line Items]

Equity investments, Recorded Basis

4,252

3,547

Cash and cash equivalents

884

561

Short-term Investments

Equity and other investments

3,368

2,986

Cash

Cash Cash Equivalents And Investments [Line Items]

Cash

10,588

11,571

Cash and cash equivalents

10,588

11,571

Short-term Investments

Equity and other investments

Derivatives, net

Cash Cash Equivalents And Investments [Line Items]

Derivative, net

^[1]

(1)

Cash and cash equivalents

^[1]

Short-term Investments

^[1]

(1)

Equity and other investments

^[1]

Debt Securities

Cash Cash Equivalents And Investments [Line Items]

Debt investments, Adjusted Cost Basis

70,356

68,209

Debt investments, Unrealized Gains

150

Debt investments, Unrealized Losses

(2,049)

(3,348)

Debt investments, Recorded Basis

68,457

64,899

Cash and cash equivalents

9,368

6,183

Short-term Investments

57,589

57,216

Equity and other investments

1,500

Debt Securities | Commercial Paper | Level 2

Cash Cash Equivalents And Investments [Line Items]

Debt investments, Adjusted Cost Basis

6,513

4,666

Debt investments, Unrealized Gains

Debt investments, Unrealized Losses

Debt investments, Recorded Basis

6,513

4,666

Cash and cash equivalents

6,513

4,666

Short-term Investments

Equity and other investments

Debt Securities | Certificates of deposit | Level 2

Cash Cash Equivalents And Investments [Line Items]

Debt investments, Adjusted Cost Basis

2,899

1,547

Debt investments, Unrealized Gains

Debt investments, Unrealized Losses

Debt investments, Recorded Basis

2,899

1,547

Cash and cash equivalents

2,855

1,503

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

48,764

49,603

Debt investments, Unrealized Gains

Debt investments, Unrealized Losses

(1,828)

(2,948)

Debt investments, Recorded Basis

46,952

46,659

Cash and cash equivalents

Short-term Investments

46,952

46,645

Equity and other investments

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

Cash Cash Equivalents And Investments [Line Items]

Debt investments, Adjusted Cost Basis

Debt investments, Unrealized Gains

Debt investments, Unrealized Losses

Debt investments, Recorded Basis

Cash and cash equivalents

Short-term Investments

Equity and other investments

Debt Securities | Foreign government bonds | Level 2

Cash Cash Equivalents And Investments [Line Items]

Debt investments, Adjusted Cost Basis

288

319

Debt investments, Unrealized Gains

Debt investments, Unrealized Losses

(9)

(16)

Debt investments, Recorded Basis

287

306

Cash and cash equivalents

Short-term Investments

287

306

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

937

944

Debt investments, Unrealized Gains

Debt investments, Unrealized Losses

(22)

(35)

Debt investments, Recorded Basis

925

912

Cash and cash equivalents

Short-term Investments

925

912

Equity and other investments

Debt Securities | Corporate notes and bonds | Level 2

Cash Cash Equivalents And Investments [Line Items]

Debt investments, Adjusted Cost Basis

8,932

9,106

Debt investments, Unrealized Gains

114

Debt investments, Unrealized Losses

(166)

(318)

Debt investments, Recorded Basis

8,880

8,816

Cash and cash equivalents

Short-term Investments

8,880

8,816

Equity and other investments

Debt Securities | Corporate notes and bonds | Level 3

Cash Cash Equivalents And Investments [Line Items]

Debt investments, Adjusted Cost Basis

1,639

1,641

Debt investments, Unrealized Gains

Debt investments, Unrealized Losses

(1)

Debt investments, Recorded Basis

1,638

1,640

Cash and cash equivalents

Short-term Investments

138

140

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

262

Debt investments, Unrealized Gains

Debt investments, Unrealized Losses

(8)

(13)

Debt investments, Recorded Basis

257

249

Cash and cash equivalents

Short-term Investments

257

249

Equity and other investments

Debt Securities | Municipal securities | Level 3

Cash Cash Equivalents And Investments [Line Items]

Debt investments, Adjusted Cost Basis

104

Debt investments, Unrealized Gains

Debt investments, Unrealized Losses

(15)

(17)

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.

INVENTORIES (Tables)

3 Months Ended

Sep. 30, 2024

Inventory Disclosure [Abstract]

Components of Inventories

The components of inventories were as follows:


(In millions)


	September 30, 2024		June 30, 2024

Raw materials	$	488	$	394
Work in process		11		7
Finished goods		1,127		845


Total	$	1,626	$	1,246

Finite-Lived Intangible Assets (Detail) - USD ($) $ in Millions	Sep. 30, 2024	Jun. 30, 2024
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 45,036	$ 44,509
Accumulated Amortization	(18,285)	(16,912)
Net Carrying Amount	26,751	27,597
Marketing-related
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	16,490	16,500
Accumulated Amortization	(3,296)	(3,101)
Net Carrying Amount	13,194	13,399
Technology-based
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	22,426	21,913
Accumulated Amortization	(11,709)	(10,741)
Net Carrying Amount	10,717	11,172
Customer-related
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	6,039	6,038
Accumulated Amortization	(3,261)	(3,051)
Net Carrying Amount	2,778	2,987
Contract-based
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	81	58
Accumulated Amortization	(19)	(19)
Net Carrying Amount	$ 62	$ 39

- 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

UNEARNED REVENUE (Tables)

3 Months Ended

Sep. 30, 2024

Revenue from Contract with Customer [Abstract]

Unearned Revenue by Segment

Unearned revenue by segment was as follows:


(In millions)


	September 30, 2024		June 30, 2024

Productivity and Business Processes	$	40,429	$	43,599
Intelligent Cloud		12,397		13,683
More Personal Computing		2,863		2,902


Total	$	55,689	$	60,184

Changes in Unearned Revenue

Changes in unearned revenue were as follows:


(In millions)


Three Months Ended September 30, 2024

Balance, beginning of period	$	60,184
Deferral of revenue		37,642
Recognition of unearned revenue		(42,137	)


Balance, end of period	$	55,689

Revenue Classified by Significant Product and Service Offerings (Parenthetical) (Detail) - USD ($) $ in Millions	3 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Revenue from External Customer [Line Items]
Revenue	$ 65,585	$ 56,517
Microsoft Cloud
Revenue from External Customer [Line Items]
Revenue	$ 38,900	$ 31,900

- 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
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-Section 50
-Paragraph 41
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+ Details

Income Taxes - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Jun. 30, 2024
Income Taxes [Line Items]
Effective tax rate	19.00%	18.00%
Long-term income taxes	$ 24,452		$ 27,931
Unrecognized Tax Benefits and Other Income Tax Liabilities
Income Taxes [Line Items]
Long-term income taxes	$ 25,900		$ 24,900

Unearned Revenue - Additional Information (Detail) $ in Billions	Sep. 30, 2024 USD ($)
Contract With Customer Liability [Line Items]
Revenue allocated to remaining performance obligations	$ 266
Commercial Customers
Contract With Customer Liability [Line Items]
Revenue allocated to remaining performance obligations	$ 259

Debt Investment Maturities (Detail) $ in Millions	Sep. 30, 2024 USD ($)
Adjusted Cost Basis
Due in one year or less	$ 24,446
Due after one year through five years	37,153
Due after five years through 10 years	7,338
Due after 10 years	1,419
Debt investments, Adjusted Cost Basis	70,356
Estimated Fair Value
Due in one year or less	24,331
Due after one year through five years	35,927
Due after five years through 10 years	6,865
Due after 10 years	1,334
Total	$ 68,457

Document and Entity Information - $ / shares	3 Months Ended
Document and Entity Information - $ / shares	Sep. 30, 2024	Oct. 24, 2024
Entity Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2024
Document Fiscal Year Focus	2025
Document Fiscal Period Focus	Q1
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		7,434,880,776
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

INCOME TAXES

3 Months Ended

Sep. 30, 2024

Income Tax Disclosure [Abstract]

INCOME TAXES

NOTE 11 — INCOME TAXES

Effective Tax Rate

Our effective tax rate was 19% and 18% for the three months ended September 30, 2024 and 2023, respectively. The increase in our effective tax rate for the current quarter compared to the prior year was primarily due to tax benefits from tax law changes in the first quarter of fiscal year 2024, including the impact from the issuance of Notice 2023-55 by the Internal Revenue Service (“IRS”) and U.S. Treasury Department, which 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 months ended September 30, 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 September 30, 2024 and June 30, 2024, unrecognized tax benefits and other income tax liabilities were $25.9 billion and $24.9 billion, respectively, and are included in long-term income taxes in our consolidated balance sheets.

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 September 30, 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 2024, 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 tax.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-URI https://asc.fasb.org/1943274/2147482685/740-10-50-12

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+ Details

Income Taxes - Additional Information Regarding Examinations (Detail) - USD ($) $ in Billions		3 Months Ended
	Sep. 26, 2023	Sep. 30, 2024
Minimum \| Foreign Country
Income Tax Examination [Line Items]
Tax years subject to examination		1996
Maximum \| Foreign Country
Income Tax Examination [Line Items]
Tax years subject to examination		2024
Internal Revenue Service (IRS)
Income Tax Examination [Line Items]
Settlement payments including tax and interest	$ 28.9
Internal Revenue Service (IRS) \| Minimum
Income Tax Examination [Line Items]
Tax years under audit	2004
Tax years subject to examination		2014
Internal Revenue Service (IRS) \| Maximum
Income Tax Examination [Line Items]
Tax years under audit	2013
Tax years subject to examination		2017

BUSINESS COMBINATIONS

3 Months Ended

Sep. 30, 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 allocation of the purchase price to the assets acquired and liabilities assumed was completed as of September 30, 2024. The major classes of assets and liabilities to which we have allocated the purchase price were as follows:


(In millions)


Cash and cash equivalents	$	12,976
Goodwill		51,001
Intangible assets		21,969
Other assets		2,503
Long-term debt		(2,799	)
Long-term income taxes		(1,946	)
Deferred income taxes		(4,676	)
Other liabilities		(3,620	)


Total purchase price	$	75,408

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 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 September 30, 2023

Revenue	$	58,561
Net income		22,314
Diluted earnings per share		2.99

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

3 Months Ended

Sep. 30, 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. In July 2024, the court entered summary judgment in nine of the stayed cases on the grounds that plaintiffs had agreed to be bound by the general causation outcome in the consolidated cases.

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. In July 2024, the IDPC provided LinkedIn with a revised non-public draft decision. In October 2024, the IDPC provided LinkedIn with a final decision, and LinkedIn is considering its options to appeal.

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 September 30, 2024, we accrued aggregate legal liabilities of $492 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.

Supplemental Cash Flow Information Related to Leases (Detail) - USD ($) $ in Millions	3 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 1,207	$ 795
Operating cash flows from finance leases	275	149
Financing cash flows from finance leases	802	285
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	1,892	1,804
Finance leases	$ 4,332	$ 1,704

Components of Inventories (Detail) - USD ($) $ in Millions	Sep. 30, 2024	Jun. 30, 2024
Inventory Disclosure [Abstract]
Raw materials	$ 488	$ 394
Work in process	11	7
Finished goods	1,127	845
Total	$ 1,626	$ 1,246

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

3 Months Ended

Sep. 30, 2024

Jun. 30, 2024

Debt Instrument [Line Items]

Total face value

$ 51,323

$ 51,221

Unamortized discount and issuance costs

(1,209)

(1,227)

Hedge fair value adjustments

^[1]

(49)

(81)

Premium on debt exchange

(4,948)

(4,976)

Total debt

45,117

44,937

Current portion of long-term debt

(2,249)

Long-term debt

$ 42,868

42,688

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

314

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

$ 2,567

2,465

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

7,930

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

$ 6,833

6,833

2017 Issuance of $17.1 billion | Minimum

Debt Instrument [Line Items]

Maturities (calendar year)

2026

Stated Interest Rate

3.30%

Effective Interest Rate

3.38%

2017 Issuance of $17.1 billion | Maximum

Debt Instrument [Line Items]

Maturities (calendar year)

2057

Stated Interest Rate

4.50%

Effective Interest Rate

5.49%

2020 Issuance of $10.1 billion

Debt Instrument [Line Items]

Total face value

$ 10,111

10,111

2020 Issuance of $10.1 billion | Minimum

Debt Instrument [Line Items]

Maturities (calendar year)

2030

Stated Interest Rate

1.35%

Effective Interest Rate

2.53%

2020 Issuance of $10.1 billion | Maximum

Debt Instrument [Line Items]

Maturities (calendar year)

2060

Stated Interest Rate

2.68%

Effective Interest Rate

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 $0.1 billion

Debt Instrument [Line Items]

Total face value

$ 56

2023 issuance of $0.1 billion | Minimum

Debt Instrument [Line Items]

Maturities (calendar year)

2026

Stated Interest Rate

1.35%

Effective Interest Rate

5.16%

2023 issuance of $0.1 billion | Maximum

Debt Instrument [Line Items]

Maturities (calendar year)

2050

Stated Interest Rate

4.50%

Effective Interest Rate

5.49%

2024 issuance of $3.3 billion

Debt Instrument [Line Items]

Total face value

$ 3,344

2024 issuance of $3.3 billion | Minimum

Debt Instrument [Line Items]

Maturities (calendar year)

2026

Stated Interest Rate

1.35%

Effective Interest Rate

5.16%

2024 issuance of $3.3 billion | Maximum

Debt Instrument [Line Items]

Maturities (calendar year)

2050

Stated Interest Rate

4.50%

Effective Interest Rate

5.49%

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

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, 2023		$ 93,718	$ 118,848	$ (6,343)
Common stock issued		685
Net income	$ 22,291		22,291
Other comprehensive income (loss)	(594)			(594)
Common stock cash dividends	(5,574)		(5,571)
Common stock repurchased		(1,401)	(3,425)
Stock-based compensation expense		2,507
Other, net		(1)
Balance, end of period at Sep. 30, 2023	$ 220,714	95,508	132,143	(6,937)
Cash dividends declared per common share	$ 0.75
Balance, beginning of period at Jun. 30, 2024	$ 268,477	100,923	173,144	(5,590)
Common stock issued		706
Net income	24,667		24,667
Other comprehensive income (loss)	1,408			1,408
Common stock cash dividends	(6,172)		(6,171)
Common stock repurchased		(1,485)	(2,711)
Stock-based compensation expense		2,832
Other, net		0
Balance, end of period at Sep. 30, 2024	$ 287,723	$ 102,976	$ 188,929	$ (4,182)
Cash dividends declared per common share	$ 0.83

- 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

Leases - Additional Information (Detail) $ in Billions	3 Months Ended
Leases - Additional Information (Detail) $ in Billions	Sep. 30, 2024 USD ($)
Operating Lease
Lessee, Lease, Description [Line Items]
Additional leases, primarily for datacenters, that have not yet commenced	$ 7.4
Finance Lease
Lessee, Lease, Description [Line Items]
Additional leases, primarily for datacenters, that have not yet commenced	$ 108.7
Minimum
Lessee, Lease, Description [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
Lessee, Lease, Description [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

Unrealized Losses on Debt Investments (Detail) - USD ($) $ in Millions	Sep. 30, 2024	Jun. 30, 2024
Unrealized Losses on Investments [Line Items]
Less than 12 Months - Fair Value	$ 292	$ 2,157
Less than 12 Months - Unrealized Losses	(4)	(25)
12 Months or Greater - Fair Value	51,876	52,432
12 Months or Greater - Unrealized Losses	(2,045)	(3,323)
Total Fair Value	52,168	54,589
Total Unrealized Losses	(2,049)	(3,348)
U.S. government and agency securities
Unrealized Losses on Investments [Line Items]
Less than 12 Months - Fair Value	146	529
Less than 12 Months - Unrealized Losses	(2)	(12)
12 Months or Greater - Fair Value	46,240	45,821
12 Months or Greater - Unrealized Losses	(1,826)	(2,936)
Total Fair Value	46,386	46,350
Total Unrealized Losses	(1,828)	(2,948)
Foreign government bonds
Unrealized Losses on Investments [Line Items]
Less than 12 Months - Fair Value	12	79
Less than 12 Months - Unrealized Losses	(1)	(2)
12 Months or Greater - Fair Value	144	180
12 Months or Greater - Unrealized Losses	(8)	(14)
Total Fair Value	156	259
Total Unrealized Losses	(9)	(16)
Mortgage- and asset-backed securities
Unrealized Losses on Investments [Line Items]
Less than 12 Months - Fair Value	0	201
Less than 12 Months - Unrealized Losses	0	(1)
12 Months or Greater - Fair Value	287	409
12 Months or Greater - Unrealized Losses	(22)	(34)
Total Fair Value	287	610
Total Unrealized Losses	(22)	(35)
Corporate notes and bonds
Unrealized Losses on Investments [Line Items]
Less than 12 Months - Fair Value	134	1,310
Less than 12 Months - Unrealized Losses	(1)	(9)
12 Months or Greater - Fair Value	4,963	5,779
12 Months or Greater - Unrealized Losses	(166)	(310)
Total Fair Value	5,097	7,089
Total Unrealized Losses	(167)	(319)
Municipal securities
Unrealized Losses on Investments [Line Items]
Less than 12 Months - Fair Value	0	38
Less than 12 Months - Unrealized Losses	0	(1)
12 Months or Greater - Fair Value	242	243
12 Months or Greater - Unrealized Losses	(23)	(29)
Total Fair Value	242	281
Total Unrealized Losses	$ (23)	$ (30)

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

Net Recognized Gains (Losses) on Debt Investments (Detail) - USD ($) $ in Millions	3 Months Ended
	Sep. 30, 2024	Sep. 30, 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	$ 2
Realized losses from sales of available-for-sale securities	(15)	(25)
Total	463	(107)
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	12	(6)
Total	$ 5	$ (29)

DEBT (Tables)

3 Months Ended

Sep. 30, 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			September 30, 2024			June 30, 2024


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			314
2013 issuance of €4.1 billion		2028	–	2033		2.63%	–	3.13%	2.69%	–	3.22%		2,567			2,465
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			7,930
2017 issuance of $17.1 billion		2026	–	2057		3.30%	–	4.50%	3.38%	–	5.49%		6,833			6,833
2020 issuance of $10.1 billion		2030	–	2060		1.35%	–	2.68%	2.53%	–	5.43%		10,111			10,111
2021 issuance of $8.2 billion		2052	–	2062		2.92%	–	3.04%	2.92%	–	3.04%		8,185			8,185
2023 issuance of $0.1 billion		2026	–	2050		1.35%	–	4.50%	5.16%	–	5.49%		56			56
2024 issuance of $3.3 billion		2026	–	2050		1.35%	–	4.50%	5.16%	–	5.49%		3,344			3,344


Total face value													51,323			51,221
Unamortized discount and issuance costs													(1,209	)		(1,227	)
Hedge fair value adjustments (a)													(49	)		(81	)
Premium on debt exchange													(4,948	)		(4,976	)


Total debt													45,117			44,937
Current portion of long-term debt													(2,249	)		(2,249	)


Long-term debt												$	42,868		$	42,688

(a)

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 September 30, 2024:


(In millions)


Year Ending June 30,

2025 (excluding the three months ended September 30, 2024)	$	2,250
2026		3,000
2027		9,250
2028		0
2029		1,953
Thereafter		34,870


Total	$	51,323

- Definition

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

+ References

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+ Details

BUSINESS COMBINATIONS (Tables) - Activision Blizzard, Inc.

3 Months Ended

Sep. 30, 2024

Major Classes of Assets and Liabilities Allocated Purchase Price

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


(In millions)


Cash and cash equivalents	$	12,976
Goodwill		51,001
Intangible assets		21,969
Other assets		2,503
Long-term debt		(2,799	)
Long-term income taxes		(1,946	)
Deferred income taxes		(4,676	)
Other liabilities		(3,620	)


Total purchase price	$	75,408

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 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 September 30, 2023

Revenue	$	58,561
Net income		22,314
Diluted earnings per share		2.99

INCOME STATEMENTS - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Revenue	$ 65,585	$ 56,517
Cost of revenue	20,099	16,302
Gross margin	45,486	40,215
Research and development	7,544	6,659
Sales and marketing	5,717	5,187
General and administrative	1,673	1,474
Operating income	30,552	26,895
Other income (expense), net	(283)	389
Income before income taxes	30,269	27,284
Provision for income taxes	5,602	4,993
Net income	$ 24,667	$ 22,291
Earnings per share:
Basic	$ 3.32	$ 3
Diluted	$ 3.3	$ 2.99
Weighted average shares outstanding:
Basic	7,433	7,429
Diluted	7,470	7,462
Product
Revenue	$ 15,272	$ 15,535
Cost of revenue	3,294	3,531
Service and Other
Revenue	50,313	40,982
Cost of revenue	$ 16,805	$ 12,771

Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Earning Per Share Basic And Diluted [Abstract]
Net income available for common shareholders (A)	$ 24,667	$ 22,291
Weighted average outstanding shares of common stock (B)	7,433	7,429
Dilutive effect of stock-based awards	37	33
Common stock and common stock equivalents (C)	7,470	7,462
Earnings Per Share
Basic (A/B)	$ 3.32	$ 3
Diluted (A/C)	$ 3.3	$ 2.99

- Definition

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

+ References

+ Details

- Definition

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

+ References

+ Details

- Definition

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

+ References

+ Details

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

3 Months Ended

Sep. 30, 2024

Sep. 30, 2023

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

Revenue

$ 65,585

$ 56,517

United States

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

Revenue

^[1]

33,913

28,812

Other Countries

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

Revenue

$ 31,672

$ 27,705

[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

LEASES (Tables)

3 Months Ended

Sep. 30, 2024

Leases [Abstract]

Components of Lease Expense

The components of lease expense were as follows:


(In millions)


Three Months Ended September 30,		2024		2023

Operating lease cost	$	1,161	$	775


Finance lease cost:
Amortization of right-of-use assets	$	696	$	380
Interest on lease liabilities		275		149


Total finance lease cost	$	971	$	529

Supplemental Cash Flow Information Related to Leases

Supplemental cash flow information related to leases was as follows:


(In millions)


Three Months Ended September 30,		2024		2023

Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	1,207	$	795
Operating cash flows from finance leases		275		149
Financing cash flows from finance leases		802		285

Right-of-use assets obtained in exchange for lease obligations:
Operating leases		1,892		1,804
Finance leases		4,332		1,704

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)


	September 30, 2024			June 30, 2024

Operating Leases

Operating lease right-of-use assets	$	20,528		$	18,961


Other current liabilities	$	4,009		$	3,580
Operating lease liabilities		16,361			15,497


Total operating lease liabilities	$	20,370		$	19,077


Finance Leases

Property and equipment, at cost	$	37,186		$	32,248
Accumulated depreciation		(7,070	)		(6,386	)


Property and equipment, net	$	30,116		$	25,862


Other current liabilities	$	2,504		$	2,349
Other long-term liabilities		28,847			24,796


Total finance lease liabilities	$	31,351		$	27,145


Weighted Average Remaining Lease Term

Operating leases		7 years			7 years
Finance leases		12 years			12 years

Weighted Average Discount Rate

Operating leases		3.4%			3.3%
Finance leases		4.0%			3.9%

Maturities of Lease Liabilities

The following table outlines maturities of our lease liabilities as of September 30, 2024:


(In millions)


Year Ending June 30,	Operating Leases			Finance Leases

2025 (excluding the three months ended September 30, 2024)	$	3,386		$	2,742
2026		4,122			3,697
2027		3,411			3,720
2028		2,754			3,706
2029		2,124			3,099
Thereafter		7,174			22,745


Total lease payments		22,971			39,709
Less imputed interest		(2,601	)		(8,358	)


Total	$	20,370		$	31,351

Maturities of Lease Liabilities (Detail) - USD ($) $ in Millions	Sep. 30, 2024	Jun. 30, 2024
Leases [Abstract]
Operating Leases, Year Ending June 30, 2025 (excluding the three months ended September 30, 2024)	$ 3,386
Operating Leases, Year Ending June 30, 2026	4,122
Operating Leases, Year Ending June 30, 2027	3,411
Operating Leases, Year Ending June 30, 2028	2,754
Operating Leases, Year Ending June 30, 2029	2,124
Operating Leases, Thereafter	7,174
Operating Leases, Total lease payments	22,971
Operating Leases, Less imputed interest	(2,601)
Operating Leases	20,370	$ 19,077
Finance Leases, Year Ending June 30, 2025 (excluding the three months ended September 30, 2024)	2,742
Finance Leases, Year Ending June 30, 2026	3,697
Finance Leases, Year Ending June 30, 2027	3,720
Finance Leases, Year Ending June 30, 2028	3,706
Finance Leases, Year Ending June 30, 2029	3,099
Finance Leases, Thereafter	22,745
Finance Leases, Total lease payments	39,709
Finance Leases, Less imputed interest	(8,358)
Finance Leases	$ 31,351	$ 27,145

Components of Long-term Debt (Parenthetical) (Detail) - 3 months ended Sep. 30, 2024 € in Billions, $ in Billions	EUR (€)	USD ($)
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	2017
Debt, face value		17.1
2020 Issuance of $10.1 billion
Debt Instrument [Line Items]
Debt, issuance date	2020
Debt, face value		10.1
2021 issuance of $8.2 billion
Debt Instrument [Line Items]
Debt, issuance date	2021
Debt, face value		8.2
2023 issuance of $0.1 billion
Debt Instrument [Line Items]
Debt, issuance date	2023
Debt, face value		0.1
2024 issuance of $3.3 billion
Debt Instrument [Line Items]
Debt, issuance date	2024
Debt, face value		$ 3.3

Operating Income (Loss) by Segment (Detail) - USD ($) $ in Millions	3 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Segment Reporting Information [Line Items]
Operating Income (Loss)	$ 30,552	$ 26,895
Productivity and Business Processes
Segment Reporting Information [Line Items]
Operating Income (Loss)	16,516	14,297
Intelligent Cloud
Segment Reporting Information [Line Items]
Operating Income (Loss)	10,503	8,908
More Personal Computing
Segment Reporting Information [Line Items]
Operating Income (Loss)	$ 3,533	$ 3,690

Net Recognized Gains (Losses) on Equity Investments (Detail) - USD ($) $ in Millions	3 Months Ended
	Sep. 30, 2024	Sep. 30, 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 on investments sold	$ 65	$ 45
Net unrealized gains (losses) on investments still held	412	(123)
Total	463	(107)
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	(19)	0
Total	$ 458	$ (78)

INVESTMENTS

3 Months Ended

Sep. 30, 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


September 30, 2024

Changes in Fair Value Recorded in Other Comprehensive Income

Commercial paper	Level 2	$	6,513	$	0	$	0		$	6,513		$	6,513	$	0		$	0
Certificates of deposit	Level 2		2,899		0		0			2,899			2,855		44			0
U.S. government securities	Level 1		48,764		16		(1,828	)		46,952			0		46,952			0
U.S. agency securities	Level 2		17		0		0			17			0		17			0
Foreign government bonds	Level 2		288		8		(9	)		287			0		287			0
Mortgage- and asset-backed securities	Level 2		937		10		(22	)		925			0		925			0
Corporate notes and bonds	Level 2		8,932		114		(166	)		8,880			0		8,880			0
Corporate notes and bonds	Level 3		1,639		0		(1	)		1,638			0		138			1,500
Municipal securities	Level 2		263		2		(8	)		257			0		257			0
Municipal securities	Level 3		104		0		(15	)		89			0		89			0


Total debt investments		$	70,356	$	150	$	(2,049	)	$	68,457		$	9,368	$	57,589		$	1,500


Changes in Fair Value Recorded in Net Income

Equity investments	Level 1								$	4,252		$	884	$	0		$	3,368
Equity investments	Other									10,910			0		0			10,910


Total equity investments									$	15,162		$	884	$	0		$	14,278


Cash									$	10,588		$	10,588	$	0		$	0
Derivatives, net (a)										(1	)		0		(1	)		0


Total									$	94,206		$	20,840	$	57,588		$	15,778


(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, 2024

Changes in Fair Value Recorded in Other Comprehensive Income

Commercial paper	Level 2	$	4,666	$	0	$	0		$	4,666	$	4,666	$	0	$	0
Certificates of deposit	Level 2		1,547		0		0			1,547		1,503		44		0
U.S. government securities	Level 1		49,603		4		(2,948	)		46,659		14		46,645		0
U.S. agency securities	Level 2		17		0		0			17		0		17		0
Foreign government bonds	Level 2		319		3		(16	)		306		0		306		0
Mortgage- and asset-backed securities	Level 2		944		3		(35	)		912		0		912		0
Corporate notes and bonds	Level 2		9,106		28		(318	)		8,816		0		8,816		0
Corporate notes and bonds	Level 3		1,641		0		(1	)		1,640		0		140		1,500
Municipal securities	Level 2		262		0		(13	)		249		0		249		0
Municipal securities	Level 3		104		0		(17	)		87		0		87		0


Total debt investments		$	68,209	$	38	$	(3,348	)	$	64,899	$	6,183	$	57,216	$	1,500


Changes in Fair Value Recorded in Net Income

Equity investments	Level 1								$	3,547	$	561	$	0	$	2,986
Equity investments	Other									10,114		0		0		10,114


Total equity investments									$	13,661	$	561	$	0	$	13,100


Cash									$	11,571	$	11,571	$	0	$	0
Derivatives, net (a)										12		0		12		0


Total									$	90,143	$	18,315	$	57,228	$	14,600

(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 at cost with adjustments for observable changes in price or impairments, measured using the equity method, or measured at fair value using net asset value as a practical expedient which are not categorized in the fair value hierarchy. As of September 30, 2024 and June 30, 2024, equity investments without readily determinable fair values measured at cost with adjustments for observable changes in price or impairments were $3.8 billion and $3.9 billion, respectively, and equity investments measured using the equity method were $6.8 billion and $6.0 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


September 30, 2024

U.S. government and agency securities	$	146	$	(2	)	$	46,240	$	(1,826	)	$	46,386	$	(1,828	)
Foreign government bonds		12		(1	)		144		(8	)		156		(9	)
Mortgage- and asset-backed securities		0		0			287		(22	)		287		(22	)
Corporate notes and bonds		134		(1	)		4,963		(166	)		5,097		(167	)
Municipal securities		0		0			242		(23	)		242		(23	)


Total	$	292	$	(4	)	$	51,876	$	(2,045	)	$	52,168	$	(2,049	)


	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, 2024

U.S. government and agency securities	$	529	$	(12	)	$	45,821	$	(2,936	)	$	46,350	$	(2,948	)
Foreign government bonds		79		(2	)		180		(14	)		259		(16	)
Mortgage- and asset-backed securities		201		(1	)		409		(34	)		610		(35	)
Corporate notes and bonds		1,310		(9	)		5,779		(310	)		7,089		(319	)
Municipal securities		38		(1	)		243		(29	)		281		(30	)


Total	$	2,157	$	(25	)	$	52,432	$	(3,323	)	$	54,589	$	(3,348	)

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 September 30, 2024:


(In millions)	Adjusted Cost Basis		Estimated Fair Value


September 30, 2024

Due in one year or less	$	24,446	$	24,331
Due after one year through five years		37,153		35,927
Due after five years through 10 years		7,338		6,865
Due after 10 years		1,419		1,334


Total	$	70,356	$	68,457

Dividends Declared (Detail) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Dividends Payable [Line Items]
Dividend Per Share	$ 0.83	$ 0.75
Amount	$ 6,172	$ 5,574
O2025Q1 Dividends
Dividends Payable [Line Items]
Declaration Date	Sep. 16, 2024
Record Date	Nov. 21, 2024
Payment Date	Dec. 12, 2024
O2024Q1 Dividends
Dividends Payable [Line Items]
Declaration Date		Sep. 19, 2023
Record Date		Nov. 16, 2023
Payment Date		Dec. 14, 2023

Share Repurchases (Detail) - Share Repurchase Program 2021 - USD ($) $ in Millions	3 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Share Repurchase Program [Line Items]
Shares of common stock repurchased	7,000,000	11,000,000
Value of common stock repurchased	$ 2,800	$ 3,560

- 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

Notional Amounts of Outstanding Derivative Instruments Measured in U.S. Dollar Equivalents (Detail) - USD ($) $ in Millions	Sep. 30, 2024	Jun. 30, 2024
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	1,144	1,100
Not Designated as Hedging Instruments \| Foreign Exchange Contracts \| Derivatives Purchased
Derivative [Line Items]
Notional amounts	8,438	7,167
Not Designated as Hedging Instruments \| Foreign Exchange Contracts \| Derivatives Sold
Derivative [Line Items]
Notional amounts	22,559	31,793
Not Designated as Hedging Instruments \| Equity Contracts \| Derivatives Purchased
Derivative [Line Items]
Notional amounts	4,290	4,016
Not Designated as Hedging Instruments \| Equity Contracts \| Derivatives Sold
Derivative [Line Items]
Notional amounts	2,165	2,165
Not Designated as Hedging Instruments \| Other Contracts \| Derivatives Purchased
Derivative [Line Items]
Notional amounts	2,829	2,113
Not Designated as Hedging Instruments \| Other Contracts \| Derivatives Sold
Derivative [Line Items]
Notional amounts	$ 1,121	$ 811

Major Classes of Assets and Liabilities Allocated Purchase Price (Detail) - USD ($) $ in Millions	Sep. 30, 2024	Jun. 30, 2024	Oct. 13, 2023
Business Acquisition [Line Items]
Goodwill	$ 119,374	$ 119,220
Activision Blizzard, Inc.
Business Acquisition [Line Items]
Cash and cash equivalents			$ 12,976
Goodwill			51,001
Intangible assets			21,969
Other assets			2,503
Long-term debt			(2,799)
Long-term income taxes			(1,946)
Deferred income taxes			(4,676)
Other liabilities			(3,620)
Total purchase price			$ 75,408

SEGMENT INFORMATION AND GEOGRAPHIC DATA

3 Months Ended

Sep. 30, 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.

We have recast certain prior period amounts to conform to the way we internally manage and monitor our business. Refer to Note 1 – Accounting Policies for further information.

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:

•

Microsoft 365 Commercial products and cloud services, including Microsoft 365 Commercial cloud, comprising Microsoft 365 Commercial, Enterprise Mobility + Security, the cloud portion of Windows Commercial, the per-user portion of Power BI, Exchange, SharePoint, Microsoft Teams, Microsoft 365 Security and Compliance, Microsoft Viva, and Microsoft 365 Copilot; and Microsoft 365 Commercial products, comprising Windows Commercial on-premises and Office licensed on-premises.

•

Microsoft 365 Consumer products and cloud services, including Microsoft 365 Consumer subscriptions, Office licensed on-premises, and other consumer services.

•

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

•

Dynamics products and cloud services, including Dynamics 365, comprising a set of intelligent, cloud-based applications across ERP, CRM, 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, comprising cloud and AI consumption-based services, GitHub cloud services, Nuance Healthcare cloud services, virtual desktop offerings, and other cloud services; and Server products, comprising SQL Server, Windows Server, Visual Studio, System Center, related Client Access Licenses (“CALs”), and other on-premises offerings.

•

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 and Devices, including Windows, comprising Windows OEM licensing (Windows Pro and non-Pro licenses sold through the OEM channel), Windows Internet of Things, and patent licensing; and Devices, comprising Surface, HoloLens, and PC accessories.

•

Gaming, including Xbox hardware and Xbox content and services, comprising first- 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 September 30,	2024		2023

Revenue

Productivity and Business Processes	$	28,317	$	25,226
Intelligent Cloud		24,092		20,013
More Personal Computing		13,176		11,278


Total	$	65,585	$	56,517


Operating Income

Productivity and Business Processes	$	16,516	$	14,297
Intelligent Cloud		10,503		8,908
More Personal Computing		3,533		3,690


Total	$	30,552	$	26,895

No sales to an individual customer or country other than the United States accounted for more than 10% of revenue for the three months ended September 30, 2024 or 2023. Revenue, classified by the major geographic areas in which our customers were located, was as follows:


(In millions)


Three Months Ended September 30,	2024		2023

United States (a)	$	33,913	$	28,812
Other countries		31,672		27,705


Total	$	65,585	$	56,517

(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 September 30,	2024		2023

Server products and cloud services	$	22,155	$	18,062
Microsoft 365 Commercial products and cloud services		20,449		18,044
Gaming		5,621		3,919
Windows and Devices		4,329		4,340
LinkedIn		4,292		3,913
Search and news advertising		3,225		3,018
Enterprise and partner services		1,928		1,944
Dynamics products and cloud services		1,849		1,626
Microsoft 365 Consumer products and cloud services		1,727		1,643
Other		10		8


Total	$	65,585	$	56,517

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.

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+ Details

STOCKHOLDERS' EQUITY (Tables)

3 Months Ended

Sep. 30, 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				2025					2024

First Quarter		7		$	2,800		11		$	3,560

Dividends Declared

Our Board of Directors declared the following dividends:

        Declaration Date

        Record Date

        Payment Date

        Dividend
Per Share

        Amount

        Fiscal Year 2025

        (In millions)

        September 16, 2024

        November 21, 2024

        December 12, 2024

        $

        0.83

        $

        6,172

        Fiscal Year 2024

        September 19, 2023

        November 16, 2023

        December 14, 2023

        $

        0.75

        $

        5,574

Segment Information and Geographic Data - Additional Information (Detail)	3 Months Ended
	Sep. 30, 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 months ended September 30, 2024 or 2023.

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)

3 Months Ended

Sep. 30, 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 September 30,		2024			2023

Derivatives

Balance, beginning of period	$	(3	)	$	(27	)
Unrealized gains (losses), net of tax of $7 and $(4)		29			(15	)
Reclassification adjustments for (gains) losses included in other income (expense), net		(49	)		46
Tax expense (benefit) included in provision for income taxes		10			(10	)


Amounts reclassified from accumulated other comprehensive loss		(39	)		36


Net change related to derivatives, net of tax of $(3) and $6		(10	)		21


Balance, end of period	$	(13	)	$	(6	)


Investments

Balance, beginning of period	$	(2,625	)	$	(3,582	)
Unrealized gains (losses), net of tax of $297 and $(75)		1,118			(283	)
Reclassification adjustments for (gains) losses included in other income (expense), net		(5	)		29
Tax expense (benefit) included in provision for income taxes		1			(6	)


Amounts reclassified from accumulated other comprehensive loss		(4	)		23


Net change related to investments, net of tax of $296 and $(69)		1,114			(260	)


Balance, end of period	$	(1,511	)	$	(3,842	)


Translation Adjustments and Other

Balance, beginning of period	$	(2,962	)	$	(2,734	)
Translation adjustments and other, net of tax of $0 and $0		304			(355	)


Balance, end of period	$	(2,658	)	$	(3,089	)


Accumulated other comprehensive loss, end of period	$	(4,182	)	$	(6,937	)

Pay vs Performance Disclosure - USD ($) $ in Millions	3 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Millions	Sep. 30, 2024	Sep. 30, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ 24,667	$ 22,291

- Definition

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

+ References

+ Details

Unearned Revenue by Segment (Detail) - USD ($) $ in Millions	Sep. 30, 2024	Jun. 30, 2024
Contract With Customer Liability [Line Items]
Unearned revenue	$ 55,689	$ 60,184
Productivity and Business Processes
Contract With Customer Liability [Line Items]
Unearned revenue	40,429	43,599
Intelligent Cloud
Contract With Customer Liability [Line Items]
Unearned revenue	12,397	13,683
More Personal Computing
Contract With Customer Liability [Line Items]
Unearned revenue	$ 2,863	$ 2,902

Goodwill - Additional Information (Detail)	3 Months Ended
Goodwill - Additional Information (Detail)	Sep. 30, 2024 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill impairment charge	$ 0

Unearned Revenue - Remaining Performance Obligation - Additional Information (Detail) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2024-10-01	Sep. 30, 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

Maturities of Long-term Debt Including Current Portion (Detail) - USD ($) $ in Millions	Sep. 30, 2024	Jun. 30, 2024
Debt Disclosure [Abstract]
Year Ending June 30, 2025 (excluding the three months ended September 30, 2024)	$ 2,250
Year Ending June 30, 2026	3,000
Year Ending June 30, 2027	9,250
Year Ending June 30, 2028	0
Year Ending June 30, 2029	1,953
Thereafter	34,870
Total	$ 51,323	$ 51,221

Segment Revenue (Detail) - USD ($) $ in Millions	3 Months Ended
Segment Revenue (Detail) - USD ($) $ in Millions	Sep. 30, 2024	Sep. 30, 2023
Segment Reporting Information [Line Items]
Revenue	$ 65,585	$ 56,517
Productivity and Business Processes
Segment Reporting Information [Line Items]
Revenue	28,317	25,226
Intelligent Cloud
Segment Reporting Information [Line Items]
Revenue	24,092	20,013
More Personal Computing
Segment Reporting Information [Line Items]
Revenue	$ 13,176	$ 11,278

- Definition

+ References

+ Details

Summary of Changes in Accumulated Other Comprehensive Income (Loss) by Component (Detail) - USD ($) $ in Millions	3 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, beginning of period	$ 268,477
Other comprehensive income (loss)	1,408	$ (594)
Balance, end of period	287,723	220,714
Derivatives
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, beginning of period	(3)	(27)
Unrealized gains (losses), net of tax	29	(15)
Tax expense (benefit) included in provision for income taxes	10	(10)
Amounts reclassified from accumulated other comprehensive loss	(39)	36
Other comprehensive income (loss)	(10)	21
Balance, end of period	(13)	(6)
Derivatives \| Other Income (Expense), Net
Accumulated Other Comprehensive Income (Loss) [Line Items]
Reclassification adjustments for (gains) losses included in other income (expense), net	(49)	46
Investments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, beginning of period	(2,625)	(3,582)
Unrealized gains (losses), net of tax	1,118	(283)
Tax expense (benefit) included in provision for income taxes	1	(6)
Amounts reclassified from accumulated other comprehensive loss	(4)	23
Other comprehensive income (loss)	1,114	(260)
Balance, end of period	(1,511)	(3,842)
Investments \| Other Income (Expense), Net
Accumulated Other Comprehensive Income (Loss) [Line Items]
Reclassification adjustments for (gains) losses included in other income (expense), net	(5)	29
Translation adjustments and other
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, beginning of period	(2,962)	(2,734)
Other comprehensive income (loss)	304	(355)
Balance, end of period	(2,658)	(3,089)
Accumulated other comprehensive loss
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, beginning of period	(5,590)	(6,343)
Other comprehensive income (loss)	1,408	(594)
Balance, end of period	$ (4,182)	$ (6,937)

Stockholders' Equity - Additional Information (Detail) - USD ($)	3 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 16, 2024	Sep. 14, 2021
Share Repurchase Program [Line Items]
Amount of shares repurchased to settle employee tax withholding related to vesting of stock awards	$ 1,300,000,000	$ 1,300,000,000
Share Repurchase Program 2021
Share Repurchase Program [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	$ 7,500,000,000
Share Repurchase Program 2024
Share Repurchase Program [Line Items]
Amount available for repurchase under the share repurchase program approved by the company's Board of Directors			$ 60,000,000,000

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

3 Months Ended

Sep. 30, 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 September 30,		2024			2023

Derivatives

Balance, beginning of period	$	(3	)	$	(27	)
Unrealized gains (losses), net of tax of $7 and $(4)		29			(15	)
Reclassification adjustments for (gains) losses included in other income (expense), net		(49	)		46
Tax expense (benefit) included in provision for income taxes		10			(10	)


Amounts reclassified from accumulated other comprehensive loss		(39	)		36


Net change related to derivatives, net of tax of $(3) and $6		(10	)		21


Balance, end of period	$	(13	)	$	(6	)


Investments

Balance, beginning of period	$	(2,625	)	$	(3,582	)
Unrealized gains (losses), net of tax of $297 and $(75)		1,118			(283	)
Reclassification adjustments for (gains) losses included in other income (expense), net		(5	)		29
Tax expense (benefit) included in provision for income taxes		1			(6	)


Amounts reclassified from accumulated other comprehensive loss		(4	)		23


Net change related to investments, net of tax of $296 and $(69)		1,114			(260	)


Balance, end of period	$	(1,511	)	$	(3,842	)


Translation Adjustments and Other

Balance, beginning of period	$	(2,962	)	$	(2,734	)
Translation adjustments and other, net of tax of $0 and $0		304			(355	)


Balance, end of period	$	(2,658	)	$	(3,089	)


Accumulated other comprehensive loss, end of period	$	(4,182	)	$	(6,937	)

Changes in Unearned Revenue (Detail) $ in Millions	3 Months Ended
Changes in Unearned Revenue (Detail) $ in Millions	Sep. 30, 2024 USD ($)
Revenue from Contract with Customer [Abstract]
Balance, beginning of period	$ 60,184
Deferral of revenue	37,642
Recognition of unearned revenue	(42,137)
Balance, end of period	$ 55,689

Components of Lease Expense (Detail) - USD ($) $ in Millions	3 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Leases [Abstract]
Operating lease cost	$ 1,161	$ 775
Finance lease cost:
Amortization of right-of-use assets	696	380
Interest on lease liabilities	275	149
Total finance lease cost	$ 971	$ 529

DEBT

3 Months Ended

Sep. 30, 2024

Debt Disclosure [Abstract]

DEBT

NOTE 10 — DEBT

Short-term Debt

As of September 30, 2024, we had no commercial paper issued or outstanding. As of June 30, 2024, we had $6.7 billion of commercial paper issued and outstanding, with a weighted average interest rate of 5.4% and maturities ranging from 28 days to 152 days. The estimated fair value of this commercial paper approximates its carrying value.

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			September 30, 2024			June 30, 2024


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			314
2013 issuance of €4.1 billion		2028	–	2033		2.63%	–	3.13%	2.69%	–	3.22%		2,567			2,465
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			7,930
2017 issuance of $17.1 billion		2026	–	2057		3.30%	–	4.50%	3.38%	–	5.49%		6,833			6,833
2020 issuance of $10.1 billion		2030	–	2060		1.35%	–	2.68%	2.53%	–	5.43%		10,111			10,111
2021 issuance of $8.2 billion		2052	–	2062		2.92%	–	3.04%	2.92%	–	3.04%		8,185			8,185
2023 issuance of $0.1 billion		2026	–	2050		1.35%	–	4.50%	5.16%	–	5.49%		56			56
2024 issuance of $3.3 billion		2026	–	2050		1.35%	–	4.50%	5.16%	–	5.49%		3,344			3,344


Total face value													51,323			51,221
Unamortized discount and issuance costs													(1,209	)		(1,227	)
Hedge fair value adjustments (a)													(49	)		(81	)
Premium on debt exchange													(4,948	)		(4,976	)


Total debt													45,117			44,937
Current portion of long-term debt													(2,249	)		(2,249	)


Long-term debt												$	42,868		$	42,688

(a)

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

As of September 30, 2024 and June 30, 2024, the estimated fair value of long-term debt, including the current portion, was $44.6 billion and $42.3 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 September 30, 2024:


(In millions)


Year Ending June 30,

2025 (excluding the three months ended September 30, 2024)	$	2,250
2026		3,000
2027		9,250
2028		0
2029		1,953
Thereafter		34,870


Total	$	51,323

- 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

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Subparagraph (b)
-Publisher FASB
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

OTHER INCOME (EXPENSE), NET (Tables)

3 Months Ended

Sep. 30, 2024

Components of Other Income (Expense), Net

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


(In millions)


Three Months Ended September 30,	2024			2023

Interest and dividends income	$	681		$	1,166
Interest expense		(582	)		(525	)
Net recognized gains (losses) on investments		463			(107	)
Net gains (losses) on derivatives		(338	)		93
Net gains (losses) on foreign currency remeasurements		176			(101	)
Other, net		(683	)		(137	)


Total	$	(283	)	$	389

Debt Securities

Net Recognized Gains (Losses) on Investments

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


(In millions)


Three Months Ended September 30,	2024			2023

Realized gains from sales of available-for-sale securities	$	8		$	2
Realized losses from sales of available-for-sale securities		(15	)		(25	)
Impairments and allowance for credit losses		12			(6	)


Total	$	5		$	(29	)

Equity Securities

Net Recognized Gains (Losses) on Investments

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


(In millions)


Three Months Ended September 30,	2024			2023

Net realized gains on investments sold	$	65		$	45
Net unrealized gains (losses) on investments still held		412			(123	)
Impairments of investments		(19	)		0


Total	$	458		$	(78	)

BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions	Sep. 30, 2024	Jun. 30, 2024
Statement of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 647	$ 830
Property and equipment, accumulated depreciation	$ 80,517	$ 76,421
Common stock, shares authorized	24,000,000,000	24,000,000,000
Common stock, outstanding	7,436,000,000	7,434,000,000

ACCOUNTING POLICIES

3 Months Ended

Sep. 30, 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 2024 Form 10-K filed with the U.S. Securities and Exchange Commission on July 30, 2024.

Principles of Consolidation

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

Recast of Certain Prior Period Information

In August 2024, we announced changes to the composition of our segments. These changes align our segments with how we currently manage our business, most notably bringing the commercial components of Microsoft 365 together in the Productivity and Business Processes segment. Beginning in fiscal year 2025, the information that our chief operating decision maker is regularly provided and reviews for purposes of allocating resources and assessing performance reflects these segment changes. Prior period segment information has been recast to conform to the way we internally manage and monitor our business during fiscal year 2025. These changes impacted Note 8 – Goodwill, Note 12 – Unearned Revenue, and Note 17 – Segment Information and Geographic Data.

The recast of prior period information had no impact on our consolidated balance sheets, consolidated income statements, or consolidated cash flows statements.

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. We have an investment in OpenAI Global, LLC (“OpenAI”) and have made total funding commitments of $13 billion. The investment is 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 September 30, 2024 and June 30, 2024, long-term accounts receivable, net of allowance for doubtful accounts, was $4.8 billion and $4.9 billion, respectively, and is included in other long-term assets in our consolidated balance sheets.

As of September 30, 2024 and June 30, 2024, other receivables related to activities to facilitate the purchase of server components were $11.4 billion and $10.5 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 September 30, 2024 and June 30, 2024, our financing receivables, net were $4.3 billion and $4.5 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.

GOODWILL

3 Months Ended

Sep. 30, 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, 2024		Acquisitions		Other		September 30, 2024


Productivity and Business Processes	$	31,361	$	0	$	44	$	31,405
Intelligent Cloud		25,648		0		22		25,670
More Personal Computing		62,211		0		88		62,299


Total	$	119,220	$	0	$	154	$	119,374

We have recast certain prior period amounts to conform to the way we internally manage and monitor our business. Refer to Note 1 – Accounting Policies 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.

As discussed in Note 1 – Accounting Policies, during the first quarter of fiscal year 2025 we made changes to our segments. These segment changes also resulted in changes to our reporting units. We reallocated goodwill across impacted reporting units using a relative fair value approach. In addition, we completed an assessment of any potential goodwill impairment for all reporting units immediately prior to the reallocation and determined that no impairment existed.

EARNINGS PER SHARE

3 Months Ended

Sep. 30, 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 earnings per share)


Three Months Ended September 30,	2024		2023

Net income available for common shareholders (A)	$	24,667	$	22,291


Weighted average outstanding shares of common stock (B)		7,433		7,429
Dilutive effect of stock-based awards		37		33


Common stock and common stock equivalents (C)		7,470		7,462


Earnings Per Share

Basic (A/B)	$	3.32	$	3.00
Diluted (A/C)	$	3.30	$	2.99

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

Revenue Classified by Significant Product and Service Offerings (Detail) - USD ($) $ in Millions	3 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Revenue from External Customer [Line Items]
Revenue	$ 65,585	$ 56,517
Server Products and Cloud Services
Revenue from External Customer [Line Items]
Revenue	22,155	18,062
Microsoft 365 Commercial Products and Cloud Services
Revenue from External Customer [Line Items]
Revenue	20,449	18,044
Gaming
Revenue from External Customer [Line Items]
Revenue	5,621	3,919
Windows and Devices
Revenue from External Customer [Line Items]
Revenue	4,329	4,340
LinkedIn
Revenue from External Customer [Line Items]
Revenue	4,292	3,913
Search and News Advertising
Revenue from External Customer [Line Items]
Revenue	3,225	3,018
Enterprise and Partner Services
Revenue from External Customer [Line Items]
Revenue	1,928	1,944
Dynamics Products and Cloud Services
Revenue from External Customer [Line Items]
Revenue	1,849	1,626
Microsoft 365 Consumer Products and Cloud Services
Revenue from External Customer [Line Items]
Revenue	1,727	1,643
Other
Revenue from External Customer [Line Items]
Revenue	$ 10	$ 8