Document and Entity Information
Document and Entity Information - USD ($) $ / shares in Units, $ in Trillions | 12 Months Ended | ||
Jun. 30, 2020 | Jul. 27, 2020 | Dec. 31, 2019 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jun. 30, 2020 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | MICROSOFT CORPORATION | ||
Entity Central Index Key | 0000789019 | ||
Current Fiscal Year End Date | --06-30 | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity File Number | 001-37845 | ||
Entity Incorporation, State or Country Code | WA | ||
Entity Tax Identification Number | 91-1144442 | ||
Entity Address, Address Line One | ONE MICROSOFT WAY | ||
Entity Address, City or Town | REDMOND | ||
Entity Address, State or Province | WA | ||
Entity Address, Postal Zip Code | 98052-6399 | ||
City Area Code | 425 | ||
Local Phone Number | 882-8080 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Common Stock, Shares Outstanding | 7,567,652,935 | ||
Entity Public Float | $ 1.2 | ||
Entity Common Stock, Par Value Per Share | $ 0.00000625 | ||
Documents Incorporated by Reference [Text Block] | Portions of the definitive Proxy Statement to be delivered to shareholders in connection with the Annual Meeting of Shareholders to be held on December 2, 2020 are incorporated by reference into Part III | ||
Common Stock | |||
Entity Information [Line Items] | |||
Trading Symbol | MSFT | ||
Title of 12(b) Security | Common stock, $0.00000625 par value per share | ||
Security Exchange Name | NASDAQ | ||
2.125% Notes Due 2021 | |||
Entity Information [Line Items] | |||
Trading Symbol | MSFT | ||
Title of 12(b) Security | 2.125% Notes due 2021 | ||
Security Exchange Name | NASDAQ | ||
3.125% Notes Due 2028 | |||
Entity Information [Line Items] | |||
Trading Symbol | MSFT | ||
Title of 12(b) Security | 3.125% Notes due 2028 | ||
Security Exchange Name | NASDAQ | ||
2.625% Notes Due 2033 | |||
Entity Information [Line Items] | |||
Trading Symbol | MSFT | ||
Title of 12(b) Security | 2.625% Notes due 2033 | ||
Security Exchange Name | NASDAQ |
INCOME STATEMENTS
INCOME STATEMENTS - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Revenue | $ 143,015 | $ 125,843 | $ 110,360 | |
Cost of revenue | 46,078 | 42,910 | 38,353 | |
Gross margin | 96,937 | 82,933 | 72,007 | |
Research and development | 19,269 | 16,876 | 14,726 | |
Sales and marketing | 19,598 | 18,213 | 17,469 | |
General and administrative | 5,111 | 4,885 | 4,754 | |
Operating income | 52,959 | 42,959 | 35,058 | |
Other income, net | 77 | 729 | 1,416 | |
Income before income taxes | 53,036 | 43,688 | 36,474 | |
Provision for income taxes | 8,755 | 4,448 | 19,903 | |
Net income | $ 44,281 | $ 39,240 | [1] | $ 16,571 |
Earnings per share: | ||||
Basic | $ 5.82 | $ 5.11 | $ 2.15 | |
Diluted | $ 5.76 | $ 5.06 | [2] | $ 2.13 |
Weighted average shares outstanding: | ||||
Basic | 7,610 | 7,673 | 7,700 | |
Diluted | 7,683 | 7,753 | 7,794 | |
Product | ||||
Revenue | $ 68,041 | $ 66,069 | $ 64,497 | |
Cost of revenue | 16,017 | 16,273 | 15,420 | |
Service and Other | ||||
Revenue | 74,974 | 59,774 | 45,863 | |
Cost of revenue | $ 30,061 | $ 26,637 | $ 22,933 | |
[1] | Reflects the $157 million net charge related to the enactment of the TCJA for the second quarter and the $2.6 billion net income tax benefit related to the intangible property transfers for the fourth quarter, which together increased net income by $2.4 billion for fiscal year 2019. See Note 12 – Income Taxes for further information. | |||
[2] | Reflects the net charge related to the enactment of the TCJA and the net income tax benefit related to the intangible property transfers, which decreased (increased) diluted EPS $0.02 for the second quarter, $(0.34) for the fourth quarter, and $(0.31) for fiscal year 2019 |
COMPREHENSIVE INCOME STATEMENTS
COMPREHENSIVE INCOME STATEMENTS - USD ($) $ in Millions | 12 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | $ 44,281 | $ 39,240 | [1] | $ 16,571 |
Other comprehensive income (loss), net of tax: | ||||
Net change related to derivatives | (38) | (173) | 39 | |
Net change related to investments | 3,990 | 2,405 | (2,717) | |
Translation adjustments and other | (426) | (318) | (178) | |
Other comprehensive income (loss) | 3,526 | 1,914 | (2,856) | |
Comprehensive income | $ 47,807 | $ 41,154 | $ 13,715 | |
[1] | Reflects the $157 million net charge related to the enactment of the TCJA for the second quarter and the $2.6 billion net income tax benefit related to the intangible property transfers for the fourth quarter, which together increased net income by $2.4 billion for fiscal year 2019. See Note 12 – Income Taxes for further information. |
BALANCE SHEETS
BALANCE SHEETS - USD ($) $ in Millions | Jun. 30, 2020 | Jun. 30, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 13,576 | $ 11,356 |
Short-term investments | 122,951 | 122,463 |
Total cash, cash equivalents, and short-term investments | 136,527 | 133,819 |
Accounts receivable, net of allowance for doubtful accounts of $788 and $411 | 32,011 | 29,524 |
Inventories | 1,895 | 2,063 |
Other current assets | 11,482 | 10,146 |
Total current assets | 181,915 | 175,552 |
Property and equipment, net of accumulated depreciation of $43,197 and $35,330 | 44,151 | 36,477 |
Operating lease right-of-use assets | 8,753 | 7,379 |
Equity investments | 2,965 | 2,649 |
Goodwill | 43,351 | 42,026 |
Intangible assets, net | 7,038 | 7,750 |
Other long-term assets | 13,138 | 14,723 |
Total assets | 301,311 | 286,556 |
Current liabilities: | ||
Accounts payable | 12,530 | 9,382 |
Current portion of long-term debt | 3,749 | 5,516 |
Accrued compensation | 7,874 | 6,830 |
Short-term income taxes | 2,130 | 5,665 |
Short-term unearned revenue | 36,000 | 32,676 |
Other current liabilities | 10,027 | 9,351 |
Total current liabilities | 72,310 | 69,420 |
Long-term debt | 59,578 | 66,662 |
Long-term income taxes | 29,432 | 29,612 |
Long-term unearned revenue | 3,180 | 4,530 |
Deferred income taxes | 204 | 233 |
Operating lease liabilities | 7,671 | 6,188 |
Other long-term liabilities | 10,632 | 7,581 |
Total liabilities | 183,007 | 184,226 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Common stock and paid-in capital – shares authorized 24,000; outstanding 7,571 and 7,643 | 80,552 | 78,520 |
Retained earnings | 34,566 | 24,150 |
Accumulated other comprehensive income (loss) | 3,186 | (340) |
Total stockholders’ equity | 118,304 | 102,330 |
Total liabilities and stockholders' equity | $ 301,311 | $ 286,556 |
BALANCE SHEETS (Parenthetical)
BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2020 | Jun. 30, 2019 |
Statement Of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 788 | $ 411 |
Property and equipment, accumulated depreciation | $ 43,197 | $ 35,330 |
Common stock, shares authorized | 24,000,000,000 | 24,000,000,000 |
Common stock, outstanding | 7,571,000,000 | 7,643,000,000 |
CASH FLOWS STATEMENTS
CASH FLOWS STATEMENTS - USD ($) $ in Millions | 12 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Operations | ||||
Net income | $ 44,281 | $ 39,240 | [1] | $ 16,571 |
Adjustments to reconcile net income to net cash from operations: | ||||
Depreciation, amortization, and other | 12,796 | 11,682 | 10,261 | |
Stock-based compensation expense | 5,289 | 4,652 | 3,940 | |
Net recognized gains on investments and derivatives | (219) | (792) | (2,212) | |
Deferred income taxes | 11 | (6,463) | (5,143) | |
Changes in operating assets and liabilities: | ||||
Accounts receivable | (2,577) | (2,812) | (3,862) | |
Inventories | 168 | 597 | (465) | |
Other current assets | (2,330) | (1,718) | (952) | |
Other long-term assets | (1,037) | (1,834) | (285) | |
Accounts payable | 3,018 | 232 | 1,148 | |
Unearned revenue | 2,212 | 4,462 | 5,922 | |
Income taxes | (3,631) | 2,929 | 18,183 | |
Other current liabilities | 1,346 | 1,419 | 798 | |
Other long-term liabilities | 1,348 | 591 | (20) | |
Net cash from operations | 60,675 | 52,185 | 43,884 | |
Financing | ||||
Repayments of short-term debt, maturities of 90 days or less, net | 0 | 0 | (7,324) | |
Proceeds from issuance of debt | 0 | 0 | 7,183 | |
Cash premium on debt exchange | (3,417) | 0 | 0 | |
Repayments of debt | (5,518) | (4,000) | (10,060) | |
Common stock issued | 1,343 | 1,142 | 1,002 | |
Common stock repurchased | (22,968) | (19,543) | (10,721) | |
Common stock cash dividends paid | (15,137) | (13,811) | (12,699) | |
Other, net | (334) | (675) | (971) | |
Net cash used in financing | (46,031) | (36,887) | (33,590) | |
Investing | ||||
Additions to property and equipment | (15,441) | (13,925) | (11,632) | |
Acquisition of companies, net of cash acquired, and purchases of intangible and other assets | (2,521) | (2,388) | (888) | |
Purchases of investments | (77,190) | (57,697) | (137,380) | |
Maturities of investments | 66,449 | 20,043 | 26,360 | |
Sales of investments | 17,721 | 38,194 | 117,577 | |
Other, net | (1,241) | 0 | (98) | |
Net cash used in investing | (12,223) | (15,773) | (6,061) | |
Effect of foreign exchange rates on cash and cash equivalents | (201) | (115) | 50 | |
Net change in cash and cash equivalents | 2,220 | (590) | 4,283 | |
Cash and cash equivalents, beginning of period | 11,356 | 11,946 | 7,663 | |
Cash and cash equivalents, end of period | $ 13,576 | $ 11,356 | $ 11,946 | |
[1] | Reflects the $157 million net charge related to the enactment of the TCJA for the second quarter and the $2.6 billion net income tax benefit related to the intangible property transfers for the fourth quarter, which together increased net income by $2.4 billion for fiscal year 2019. See Note 12 – Income Taxes for further information. |
STOCKHOLDERS' EQUITY STATEMENTS
STOCKHOLDERS' EQUITY STATEMENTS - USD ($) $ in Millions | Total | Common stock and paid-in capital | Retained earnings | Retained earningsCumulative effect of accounting changes | Accumulated other comprehensive income (loss) | Accumulated other comprehensive income (loss)Cumulative effect of accounting changes | |
Balance, beginning of period at Jun. 30, 2017 | $ 69,315 | $ 17,769 | $ 627 | ||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201601Member | ||||||
Common stock issued | 1,002 | ||||||
Net income | $ 16,571 | 16,571 | |||||
Other comprehensive income (loss) | (2,856) | (2,856) | |||||
Common stock cash dividends | (12,917) | ||||||
Common stock repurchased | (3,033) | (7,699) | |||||
Stock-based compensation expense | 3,940 | ||||||
Other, net | (1) | ||||||
Balance, end of period at Jun. 30, 2018 | $ 82,718 | 71,223 | 13,682 | $ (42) | (2,187) | $ 42 | |
Cash dividends declared per common share | $ 1.68 | ||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201601Member | ||||||
Common stock issued | 6,829 | ||||||
Net income | $ 39,240 | [1] | 39,240 | ||||
Other comprehensive income (loss) | 1,914 | 1,914 | |||||
Common stock cash dividends | (14,101) | (14,103) | |||||
Common stock repurchased | (4,195) | (15,346) | |||||
Stock-based compensation expense | 4,652 | ||||||
Other, net | 11 | ||||||
Balance, end of period at Jun. 30, 2019 | $ 102,330 | 78,520 | 24,150 | 677 | (340) | (67) | |
Cash dividends declared per common share | $ 1.84 | ||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201601Member | ||||||
Common stock issued | 1,343 | ||||||
Net income | $ 44,281 | 44,281 | |||||
Other comprehensive income (loss) | 3,526 | 3,526 | |||||
Common stock cash dividends | (15,488) | (15,483) | |||||
Common stock repurchased | (4,599) | (18,382) | |||||
Stock-based compensation expense | 5,289 | ||||||
Other, net | (1) | ||||||
Balance, end of period at Jun. 30, 2020 | $ 118,304 | $ 80,552 | $ 34,566 | $ 0 | $ 3,186 | $ 0 | |
Cash dividends declared per common share | $ 2.04 | ||||||
[1] | Reflects the $157 million net charge related to the enactment of the TCJA for the second quarter and the $2.6 billion net income tax benefit related to the intangible property transfers for the fourth quarter, which together increased net income by $2.4 billion for fiscal year 2019. See Note 12 – Income Taxes for further information. |
ACCOUNTING POLICIES
ACCOUNTING POLICIES | 12 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
ACCOUNTING POLICIES | NOTE 1 — ACCOUNTING POLICIES Accounting Principles Our consolidated financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). We have recast certain prior period amounts to conform to current period presentation. The recast these prior period amounts had no impact on our consolidated balance sheets, consolidated income statements, or net cash from or used in operating, financing, or investing on our consolidated Principles of Consolidation The consolidated financial statements include the accounts of Microsoft Corporation and its subsidiaries. Intercompany transactions and balances have been eliminated. Estimates and Assumptions Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses. Examples of estimates and assumptions include: for revenue recognition, determining the nature and timing of satisfaction of performance obligations, and determining the standalone selling price (“SSP”) of performance obligations, variable consideration, and other obligations such as product returns and refunds; loss contingencies; product warranties; the fair value of and/or potential impairment of goodwill and intangible assets for our reporting units; product life cycles; useful lives of our tangible and intangible assets; allowances for doubtful accounts; the market value of, and demand for, our inventory; stock-based compensation forfeiture rates; when technological feasibility is achieved for our products; the potential outcome of uncertain tax positions that have been recognized in our consolidated financial statements or tax returns; and determining the timing and amount of impairments for investments. Actual results and outcomes may differ from management’s estimates and assumptions due to risks and uncertainties, including uncertainty in the current economic environment due to the recent outbreak of a novel strain of the coronavirus (“COVID-19”). In July 2020, we completed an assessment of the useful lives of our server and network equipment and determined we should increase the estimated useful life of server equipment from three years to four years and increase the estimated useful life of network equipment from two years to four years. This change in accounting estimate will be effective beginning fiscal year 2021. Foreign Currencies Assets and liabilities recorded in foreign currencies are translated at the exchange rate on the balance sheet date. Revenue and expenses are translated at average rates of exchange prevailing during the year. Translation adjustments resulting from this process are recorded to other comprehensive income. Revenue Product Revenue and Service and Other Revenue Product revenue includes sales from operating systems; cross-device productivity applications; server applications; business solution applications; desktop and server management tools; software development tools; video games; and hardware such as PCs, tablets, gaming and entertainment consoles, other intelligent devices, and related accessories. Service and other revenue includes sales from cloud-based solutions that provide customers with software, services, platforms, and content such as Office 365, Azure, Dynamics 365, and Xbox Live; solution support; and consulting services. Service and other revenue also includes sales from online advertising and LinkedIn. Revenue Recognition Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services. We enter into contracts that can include various combinations of products and services, which are generally capable of being distinct and accounted for as separate performance obligations. Revenue is recognized net of allowances for returns and any taxes collected from customers, which are subsequently remitted to governmental authorities. Nature of Products and Services Licenses for on-premises software provide the customer with a right to use the software as it exists when made available to the customer. Customers may purchase perpetual licenses or subscribe to licenses, which provide customers with the same functionality and differ mainly in the duration over which the customer benefits from the software. Revenue from distinct on-premises licenses is recognized upfront at the point in time when the software is made available to the customer. In cases where we allocate revenue to software updates, primarily because the updates are provided at no additional charge, revenue is recognized as the updates are provided, which is generally ratably over the estimated life of the related device or license. Certain volume licensing programs, including Enterprise Agreements, include on-premises licenses combined with Software Assurance (“SA”). SA conveys rights to new software and upgrades released over the contract period and provides support, tools, and training to help customers deploy and use products more efficiently. On-premises licenses are considered distinct performance obligations when sold with SA. Revenue allocated to SA is generally recognized ratably over the contract period as customers simultaneously consume and receive benefits, given that SA comprises distinct performance obligations that are satisfied over time. Cloud services, which allow customers to use hosted software over the contract period without taking possession of the software, are provided on either a subscription or consumption basis. Revenue related to cloud services provided on a subscription basis is recognized ratably over the contract period. Revenue related to cloud services provided on a consumption basis, such as the amount of storage used in a period, is recognized based on the customer utilization of such resources. When cloud services require a significant level of integration and interdependency with software and the individual components are not considered distinct, all revenue is recognized over the period in which the cloud services are provided. Revenue from search advertising is recognized when the advertisement appears in the search results or when the action necessary to earn the revenue has been completed. Revenue from consulting services is recognized as services are provided. Our hardware is generally highly dependent on, and interrelated with, the underlying operating system and cannot function without the operating system. In these cases, the hardware and software license are accounted for as a single performance obligation and revenue is recognized at the point in time when ownership is transferred to resellers or directly to end customers through retail stores and online marketplaces. Refer to Note 19 – Segment Information and Geographic Data for further information, including revenue by significant product and service offering. Significant Judgments Our contracts with customers often include promises to transfer multiple products and services to a customer. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. When a cloud-based service includes both on-premises software licenses and cloud services, judgment is required to determine whether the software license is considered distinct and accounted for separately, or not distinct and accounted for together with the cloud service and recognized over time. Certain cloud services, primarily Office 365, depend on a significant level of integration, interdependency, and interrelation between the desktop applications and cloud services, and are accounted for together as one performance obligation. Revenue from Office 365 is recognized ratably over the period in which the cloud services are provided. Judgment is required to determine the SSP for each distinct performance obligation. We use a single amount to estimate SSP for items that are not sold separately, including on-premises licenses sold with SA or software updates provided at no additional charge. We use a range of amounts to estimate SSP when we sell each of the products and services separately and need to determine whether there is a discount to be allocated based on the relative SSP of the various products and services. In instances where SSP is not directly observable, such as when we do not sell the product or service separately, we determine the SSP using information that may include market conditions and other observable inputs. We typically have more than one SSP for individual products and services due to the stratification of those products and services by customers and circumstances. In these instances, we may use information such as the size of the customer and geographic region in determining the SSP. Due to the various benefits from and the nature of our SA program, judgment is required to assess the pattern of delivery, including the exercise pattern of certain benefits across our portfolio of customers. Our products are generally sold with a right of return, we may provide other credits or incentives, and in certain instances we estimate customer usage of our products and services, which are accounted for as variable consideration when determining the amount of revenue to recognize. Returns and credits are estimated at contract inception and updated at the end of each reporting period if additional information becomes available. Changes to our estimated variable consideration were not material for the periods presented. Contract Balances Timing of revenue recognition may differ from the timing of invoicing to customers. We record a receivable when revenue is recognized prior to invoicing, or unearned revenue when revenue is recognized subsequent to invoicing. For multi-year agreements, we generally invoice customers annually at the beginning of each annual coverage period. We record a receivable related to revenue recognized for multi-year on-premises licenses as we have an unconditional right to invoice and receive payment in the future related to those licenses. As of June 30, 2020 and 2019, long-term accounts receivable, net of allowance for doubtful accounts, was $2.7 billion and $2.2 billion, respectively, and is included in other long-term assets in our consolidated balance sheets. The allowance for doubtful accounts reflects our best estimate of probable losses inherent in the accounts receivable balance. We determine the allowance based on known troubled accounts, historical experience, and Activity in the allowance for doubtful accounts was as follows: (In millions) Year Ended June 30, 2020 2019 2018 Balance, beginning of period $ 434 $ 397 $ 361 Charged to costs and other 560 153 134 Write-offs (178 ) (116 ) (98 ) Balance, end of period $ 816 $ 434 $ 397 Allowance for doubtful accounts included in our consolidated balance sheets: (In millions) June 30, 2020 2019 2018 Accounts receivable, net of allowance for doubtful accounts $ 788 $ 411 $ 377 Other long-term assets 28 23 20 Total $ 816 $ 434 $ 397 Unearned revenue comprises mainly unearned revenue related to volume licensing programs, which may include SA and cloud services. Unearned revenue is generally invoiced annually at the beginning of each contract period for multi-year agreements and recognized ratably over the coverage period. Unearned revenue also includes payments for consulting services to be performed in the future; LinkedIn subscriptions; Office 365 subscriptions; Xbox Live subscriptions; Windows 10 post-delivery support; Dynamics business solutions; Skype prepaid credits and subscriptions; and other offerings for which we have been paid in advance and earn the revenue when we transfer control of the product or service. Refer to Note 13 – Unearned Revenue for further information, including unearned revenue by segment and changes in unearned revenue during the period. Payment terms and conditions vary by contract type, although terms generally include a requirement of payment within 30 to 60 days. In instances where the timing of revenue recognition differs from the timing of invoicing, we have determined our contracts generally do not include a significant financing component. The primary purpose of our invoicing terms is to provide customers with simplified and predictable ways of purchasing our products and services, not to receive financing from our customers or to provide customers with financing. Examples include invoicing at the beginning of a subscription term with revenue recognized ratably over the contract period, and multi-year on-premises licenses that are invoiced annually with revenue recognized upfront. We record financing receivables when we offer certain of our customers the option to acquire our software products and services offerings through a financing program in a limited number of countries. As of June 30, 2020 and 2019, our financing receivables, net were $5.2 billion and $4.3 billion, respectively, for short-term and long-term financing receivables, which are included in other current assets and other long-term assets in our consolidated balance sheets. We record an allowance to cover expected losses based on troubled accounts, historical experience, and other currently available evidence. Assets Recognized from Costs to Obtain a Contract with a Customer We recognize an asset for the incremental costs of obtaining a contract with a customer if we expect the benefit of those costs to be longer than one year. We have determined that certain sales incentive programs meet the requirements to be capitalized. Total capitalized costs to obtain a contract were immaterial during the periods presented and are included in other current and long-term assets in our consolidated balance sheets. We apply a practical expedient to expense costs as incurred for costs to obtain a contract with a customer when the amortization period would have been one year or less. These costs include our internal sales force compensation program and certain partner sales incentive programs as we have determined annual compensation is commensurate with annual sales activities. Cost of Revenue Cost of revenue includes: manufacturing and distribution costs for products sold and programs licensed; operating costs related to product support service centers and product distribution centers; costs incurred to include software on PCs sold by original equipment manufacturers (“OEM”), to drive traffic to our websites, and to acquire online advertising space; costs incurred to support and maintain online products and services, including datacenter costs and royalties; warranty costs; inventory valuation adjustments; costs associated with the delivery of consulting services; and the amortization of capitalized software development costs. Capitalized software development costs are amortized over the estimated lives of the products. Product Warranty We provide for the estimated costs of fulfilling our obligations under hardware and software warranties at the time the related revenue is recognized. For hardware warranties, we estimate the costs based on historical and projected product failure rates, historical and projected repair costs, and knowledge of specific product failures (if any). The specific hardware warranty terms and conditions vary depending upon the product sold and the country in which we do business, but generally include parts and labor over a period generally ranging from 90 days to three years. For software warranties, we estimate the costs to provide bug fixes, such as security patches, over the estimated life of the software. We regularly reevaluate our estimates to assess the adequacy of the recorded warranty liabilities and adjust the amounts as necessary. Research and Development Research and development expenses include payroll, employee benefits, stock-based compensation expense, and other headcount-related expenses associated with product development. Research and development expenses also include third-party development and programming costs, localization costs incurred to translate software for international markets, and the amortization of purchased software code and services content. Such costs related to software development are included in research and development expense until the point that technological feasibility is reached, which for our software products, is generally shortly before the products are released to production. Once technological feasibility is reached, such costs are capitalized and amortized to cost of revenue over the estimated lives of the products. Sales and Marketing Sales and marketing expenses include payroll, employee benefits, stock-based compensation expense, and other headcount-related expenses associated with sales and marketing personnel, and the costs of advertising, promotions, trade shows, seminars, and other programs. Advertising costs are expensed as incurred. Advertising expense was $1.6 billion in fiscal years 2020, 2019, and 2018. Stock-Based Compensation Compensation cost for stock awards, which include restricted stock units (“RSUs”) and performance stock units (“PSUs”), is measured at the fair value on the grant date and recognized as expense, net of estimated forfeitures, over the related service or performance period. The fair value of stock awards is based on the quoted price of our common stock on the grant date less the present value of expected dividends not received during the vesting period. We measure the fair value of PSUs using a Monte Carlo valuation model. Compensation cost for RSUs is recognized using the straight-line method and for PSUs is recognized using the accelerated method. Compensation expense for the employee stock purchase plan (“ESPP”) is measured as the discount the employee is entitled to upon purchase and is recognized in the period of purchase. Income Taxes Income tax expense includes U.S. and international income taxes, and interest and penalties on uncertain tax positions. Certain income and expenses are not reported in tax returns and financial statements in the same year. The tax effect of such temporary differences is reported as deferred income taxes. Deferred tax assets are reported net of a valuation allowance when it is more likely than not that a tax benefit will not be realized. All deferred income taxes are classified as long-term in our consolidated balance sheets. Financial Instruments Investments We consider all highly liquid interest-earning investments with a maturity of three months or less at the date of purchase to be cash equivalents. The fair values of these investments approximate their carrying values. In general, investments with original maturities of greater than three months and remaining maturities of less than one year are classified as short-term investments. Investments with maturities beyond one year may be classified as short-term based on their highly liquid nature and because such marketable securities represent the investment of cash that is available for current operations. Debt investments are classified as available-for-sale and realized gains and losses are recorded using the specific identification method. Changes in fair value, excluding other-than-temporary impairments, are recorded in other comprehensive income . Debt investments are impaired when a decline in fair value is judged to be other-than-temporary. Fair value is calculated based on publicly available market information or other estimates determined by management. We employ a systematic methodology on a quarterly basis that considers available quantitative and qualitative evidence in evaluating potential impairment of our investments. If the cost of an investment exceeds its fair value, we evaluate, among other factors, general market conditions, credit quality of debt instrument issuers, and the duration and extent to which the fair value is less than cost. We also evaluate whether we have plans to sell the security or it is more likely than not that we will be required to sell the security before recovery. In addition, we consider specific adverse conditions related to the financial health of , and business outlook , for the investee, including industry and sector performance, changes in technology, and operational and financing cash flow factors. Once a decline in fair value is determined to be other-than-temporary, an impairment charge is recorded in other income (expense), net and a new cost basis in the investment is established. Equity investments with readily determinable fair values are measured at fair value. Equity investments without readily determinable fair values are measured using the equity method or measured at cost with adjustments for observable changes in price or impairments (referred to as the measurement alternative). We perform a qualitative assessment on a quarterly basis and recognize an impairment if there are sufficient indicators that the fair value of the investment is less than carrying value. Changes in value are recorded in other income (expense), net. Derivatives Derivative instruments are recognized as either assets or liabilities and measured at fair value. The accounting for changes in the fair value of a derivative depends on the intended use of the derivative and the resulting designation. For derivative instruments designated as fair value hedges, gains and losses are recognized in other income (expense), net with offsetting gains and losses on the hedged items. Gains and losses representing hedge components excluded from the assessment of effectiveness are recognized in other income (expense), net. For derivative instruments designated as cash flow hedges, gains and losses are initially reported as a component of other comprehensive income and subsequently recognized in earnings with the corresponding hedged item. Gains and losses representing hedge components excluded from the assessment of effectiveness are recognized in earnings. For derivative instruments that are not designated as hedges, gains and losses from changes in fair values are primarily recognized in other income (expense), net. Fair Value Measurements We account for certain assets and liabilities at fair value. The hierarchy below lists three levels of fair value based on the extent to which inputs used in measuring fair value are observable in the market. We categorize each of our fair value measurements in one of these three levels based on the lowest level input that is significant to the fair value measurement in its entirety. These levels are: • Level 1 • Level 2 • Level 3 – inputs are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques, including option pricing models and discounted cash flow models. Our Level 3 assets and liabilities include investments in corporate notes and bonds , municipal securities , and goodwill and intangible assets, when they are recorded at fair value due to an impairment charge. Unobservable inputs used in the models are significant to the fair values of the assets and liabilities. We measure equity investments without readily determinable fair values on a nonrecurring basis. The fair values of these investments are determined based on valuation techniques using the best information available, and may include quoted market prices, market comparables, and discounted cash flow projections. Our other current financial assets and current financial liabilities have fair values that approximate their carrying values. Inventories Inventories are stated at average cost, subject to the lower of cost or net realizable value. Cost includes materials, labor, and manufacturing overhead related to the purchase and production of inventories. Net realizable value is the estimated selling price less estimated costs of completion, disposal, and transportation. We regularly review inventory quantities on hand, future purchase commitments with our suppliers, and the estimated utility of our inventory. If our review indicates a reduction in utility below carrying value, we reduce our inventory to a new cost basis through a charge to cost of revenue. Property and Equipment Property and equipment is stated at cost less accumulated depreciation, and depreciated using the straight-line method over the shorter of the estimated useful life of the asset or the lease term. The estimated useful lives of our property and equipment are generally as follows: computer software developed or acquired for internal use, three to seven years; computer equipment, two to three years; buildings and improvements, five to 15 years; leasehold improvements, three to 20 years; and furniture and equipment, one to 10 years. Land is not depreciated. Leases We determine if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, other current liabilities, and operating lease liabilities in our consolidated balance sheets. Finance leases are included in property and equipment, other current liabilities, and other long-term liabilities in our consolidated balance sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we generally use our incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at commencement date. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. We have lease agreements with lease and non-lease components, which are generally accounted for separately. For certain equipment leases, such as vehicles, we account for the lease and non-lease components as a single lease component. Additionally, for certain equipment leases, we apply a portfolio approach to effectively account for the operating lease ROU assets and liabilities. Goodwill Goodwill is tested for impairment at the reporting unit level (operating segment or one level below an operating segment) on an annual basis (May 1 for us) and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. Intangible Assets Our intangible assets are subject to amortization and are amortized using the straight-line method over their estimated period of benefit, ranging from one to 20 years. We evaluate the recoverability of intangible assets periodically by taking into account events or circumstances that may warrant revised estimates of useful lives or that indicate the asset may be impaired. Recent Accounting Guidance Recently Adopted Accounting Guidance Financial Instruments – Targeted Improvements to Accounting for Hedging Activities In August 2017, the Financial Accounting Standards Board (“FASB”) issued new guidance related to accounting for hedging activities. This guidance expands strategies that qualify for hedge accounting, changes how many hedging relationships are presented in the financial statements, and simplifies the application of hedge accounting in certain situations. We adopted the standard effective July 1, 2019. As we did not hold derivative instruments requiring an adjustment upon adoption, there was no impact in our consolidated financial statements. Adoption of the standard enhanced the presentation of the effects of our hedging instruments and the hedged items in our consolidated financial statements to increase the understandability of the results of our hedging strategies. Recent Accounting Guidance Not Yet Adopted Financial Instruments – Credit Losses In June 2016, the FASB issued a new standard to replace the incurred loss impairment methodology under current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. We will be required to use a forward-looking expected credit loss model for accounts receivable, loans, and other financial instruments. Credit losses relating to available-for-sale debt securities will also be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. The standard will be adopted upon the effective date for us beginning July 1, 2020. Adoption of the standard will be applied using a modified retrospective approach through a cumulative-effect adjustment to retained earnings as of the effective date to align our credit loss methodology with the new standard. We have evaluated the impact of this standard in our consolidated financial statements, including accounting policies, processes, and systems. We continue to monitor economic implications of the COVID-19 pandemic. Based on current market conditions, adoption of the standard will not have a material impact on our consolidated financial statements. Accounting for Income Taxes In December 2019, the FASB issued a new standard to simplify the accounting for income taxes. The guidance eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities for outside basis differences related to changes in ownership of equity method investments and foreign subsidiaries. The guidance also simplifies aspects of accounting for franchise taxes and enacted changes in tax laws or rates, and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. The standard will be effective for us beginning July 1, 2021, with early adoption permitted. We are currently evaluating the impact of this standard in our consolidated financial statements, including accounting policies, processes, and systems. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 2 — EARNINGS PER SHARE Basic earnings per share (“EPS”) is computed based on the weighted average number of shares of common stock outstanding during the period. Diluted EPS is computed based on the weighted average number of shares of common stock plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares include outstanding stock options and stock awards. The components of basic and diluted EPS were as follows: (In millions, except earnings per share) Year Ended June 30, 2020 2019 2018 Net income available for common shareholders (A) $ 44,281 $ 39,240 $ 16,571 Weighted average outstanding shares of common stock (B) 7,610 7,673 7,700 Dilutive effect of stock-based awards 73 80 94 Common stock and common stock equivalents (C) 7,683 7,753 7,794 Earnings Per Share Basic (A/B) $ 5.82 $ 5.11 $ 2.15 Diluted (A/C) $ 5.76 $ 5.06 $ 2.13 Anti-dilutive stock-based awards excluded from the calculations of diluted EPS were immaterial during the periods presented. |
OTHER INCOME (EXPENSE), NET
OTHER INCOME (EXPENSE), NET | 12 Months Ended |
Jun. 30, 2020 | |
Other Income And Expenses [Abstract] | |
OTHER INCOME (EXPENSE), NET | NOTE 3 — OTHER INCOME (EXPENSE), NET The components of other income (expense), net were as follows: (In millions) Year Ended June 30, 2020 2019 2018 Interest and dividends income $ 2,680 $ 2,762 $ 2,214 Interest expense (2,591 ) (2,686 ) (2,733 ) Net recognized gains on investments 32 648 2,399 Net gains (losses) on derivatives 187 144 (187 ) Net losses on foreign currency remeasurements (191 ) (82 ) (218 ) Other, net (40 ) (57 ) (59 ) Total $ 77 $ 729 $ 1,416 Net Recognized Gains (Losses) on Investments Net recognized gains (losses) on debt investments were as follows: (In millions) Year Ended June 30, 2020 2019 2018 Realized gains from sales of available-for-sale securities $ 50 $ 12 $ 27 Realized losses from sales of available-for-sale securities (37 ) (93 ) (987 ) Other-than-temporary impairments of investments (17 ) (16 ) (6 ) Total $ (4 ) $ (97 ) $ (966 ) Net recognized gains (losses) on equity investments were as follows: (In millions) Year Ended June 30, 2020 2019 2018 Net realized gains on investments sold $ 83 $ 276 $ 3,406 Net unrealized gains on investments still held 69 479 0 Impairments of investments (116 ) (10 ) (41 ) Total $ 36 $ 745 $ 3,365 |
INVESTMENTS
INVESTMENTS | 12 Months Ended |
Jun. 30, 2020 | |
Investments Debt And Equity Securities [Abstract] | |
INVESTMENTS | NOTE 4 — INVESTMENTS Investment Components The components of investments were as follows: (In millions) Fair Value Level Cost Basis Unrealized Gains Unrealized Losses Recorded Basis Cash and Cash Equivalents Short-term Investments Equity Investments June 30, 2020 Changes in Fair Value Recorded in Other Comprehensive Income Commercial paper Level 2 $ 4,687 $ 1 $ 0 $ 4,688 $ 1,618 $ 3,070 $ 0 Certificates of deposit Level 2 2,898 0 0 2,898 1,646 1,252 0 U.S. government securities Level 1 92,067 6,495 (1 ) 98,561 3,168 95,393 0 U.S. agency securities Level 2 2,439 2 0 2,441 449 1,992 0 Foreign government bonds Level 2 6,982 6 (3 ) 6,985 1 6,984 0 Mortgage- and asset-backed securities Level 2 4,865 41 (6 ) 4,900 0 4,900 0 Corporate notes and bonds Level 2 8,500 327 (17 ) 8,810 0 8,810 0 Corporate notes and bonds Level 3 58 0 0 58 0 58 0 Municipal securities Level 2 313 57 (4 ) 366 0 366 0 Municipal securities Level 3 91 0 0 91 0 91 0 Total debt investments $ 122,900 $ 6,929 $ (31 ) $ 129,798 $ 6,882 $ 122,916 $ 0 Changes in Fair Value Recorded in Net Income Equity investments Level 1 $ 1,198 $ 784 $ 0 $ 414 Equity investments Other 2,551 0 0 2,551 Total equity investments $ 3,749 $ 784 $ 0 $ 2,965 Cash $ 5,910 $ 5,910 $ 0 $ 0 Derivatives, net (a) 35 0 35 0 Total $ 139,492 $ 13,576 $ 122,951 $ 2,965 (In millions) Fair Value Level Cost Basis Unrealized Gains Unrealized Losses Recorded Basis Cash and Cash Equivalents Short-term Investments Equity Investments June 30, 2019 Changes in Fair Value Recorded in Other Comprehensive Income Commercial paper Level 2 $ 2,211 $ 0 $ 0 $ 2,211 $ 1,773 $ 438 $ 0 Certificates of deposit Level 2 2,018 0 0 2,018 1,430 588 0 U.S. government securities Level 1 104,925 1,854 (104 ) 106,675 769 105,906 0 U.S. agency securities Level 2 988 0 0 988 698 290 0 Foreign government bonds Level 2 6,350 4 (8 ) 6,346 2,506 3,840 0 Mortgage- and asset-backed securities Level 2 3,554 10 (3 ) 3,561 0 3,561 0 Corporate notes and bonds Level 2 7,437 111 (7 ) 7,541 0 7,541 0 Corporate notes and bonds Level 3 15 0 0 15 0 15 0 Municipal securities Level 2 242 48 0 290 0 290 0 Municipal securities Level 3 7 0 0 7 0 7 0 Total debt investments $ 127,747 $ 2,027 $ (122 ) $ 129,652 $ 7,176 $ 122,476 $ 0 Changes in Fair Value Recorded in Net Income Equity investments Level 1 $ 973 $ 409 $ 0 $ 564 Equity investments Other 2,085 0 0 2,085 Total equity investments $ 3,058 $ 409 $ 0 $ 2,649 Cash $ 3,771 $ 3,771 $ 0 $ 0 Derivatives, net (a) (13) 0 (13) 0 Total $ 136,468 $ 11,356 $ 122,463 $ 2,649 (a) Refer to Note 5 – Derivatives for further information on the fair value of our derivative instruments. Equity investments presented as “Other” in the tables above include investments without readily determinable fair values measured using the equity method or measured at cost with adjustments for observable changes in price or impairments, and investments measured at fair value using net asset value as a practical expedient which are not categorized in the fair value hierarchy. As of June 30, 2020 and 2019, equity investments without readily determinable fair values measured at cost with adjustments for observable changes in price or impairments were $1.4 billion and $1.2 billion, respectively. Unrealized Losses on Debt Investments Debt investments with continuous unrealized losses for less than 12 months and 12 months or greater and their related fair values were as follows: Less than 12 Months 12 Months or Greater Total (In millions) Fair Value Unrealized Fair Value Unrealized Total June 30, 2020 U.S. government and agency securities $ 2,323 $ (1 ) $ 0 $ 0 $ 2,323 $ (1 ) Foreign government bonds 500 (3 ) 0 0 500 (3 ) Mortgage- and asset-backed securities 1,014 (6 ) 0 0 1,014 (6 ) Corporate notes and bonds 649 (17 ) 0 0 649 (17 ) Municipal securities 66 (4 ) 0 0 66 (4 ) Total $ 4,552 $ (31 ) $ 0 $ 0 $ 4,552 $ (31 ) Less than 12 Months 12 Months or Greater Total Unrealized Losses (In millions) Fair Value Unrealized Losses Fair Value Unrealized Losses Total Fair Value June 30, 2019 U.S. government and agency securities $ 1,491 $ (1 ) $ 39,158 $ (103 ) $ 40,649 $ (104 ) Foreign government bonds 25 0 77 (8 ) 102 (8 ) Mortgage- and asset-backed securities 664 (1 ) 378 (2 ) 1,042 (3 ) Corporate notes and bonds 498 (3 ) 376 (4 ) 874 (7 ) Total $ 2,678 $ (5 ) $ 39,989 $ (117 ) $ 42,667 $ (122 ) Unrealized losses from fixed-income securities are primarily attributable to changes in interest rates. Management does not believe any remaining unrealized losses represent other-than-temporary impairments based on our evaluation of available evidence. Debt Investment Maturities (In millions) Cost Basis Estimated Fair Value June 30, 2020 Due in one year or less $ 36,169 $ 36,276 Due after one year through five years 51,465 54,700 Due after five years through 10 years 32,299 35,674 Due after 10 years 2,967 3,148 Total $ 122,900 $ 129,798 |
DERIVATIVES
DERIVATIVES | 12 Months Ended |
Jun. 30, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
DERIVATIVES | NOTE 5 — DERIVATIVES We use derivative instruments to manage risks related to foreign currencies, interest rates, equity prices, and credit; to enhance investment returns; and to facilitate portfolio diversification. Our objectives for holding derivatives include reducing, eliminating, and efficiently managing the economic impact of these exposures as effectively as possible. Our derivative programs include strategies that both qualify and do not qualify for hedge accounting treatment. Foreign Currencies Certain forecasted transactions, assets, and liabilities are exposed to foreign currency risk. We monitor our foreign currency exposures daily to maximize the economic effectiveness of our foreign currency hedge positions. Foreign currency risks related to certain non-U.S. dollar-denominated investments are hedged using foreign exchange forward contracts that are designated as fair value hedging instruments. Foreign currency risks related to certain Euro-denominated debt are hedged using foreign exchange forward contracts that are designated as cash flow hedging instruments. In the past, option and forward contracts were used to hedge a portion of forecasted international revenue and were designated as cash flow hedging instruments. Principal currencies hedged included the Euro, Japanese yen, British pound, Canadian dollar, and Australian dollar. Certain options and forwards not designated as hedging instruments are also used to manage the variability in foreign exchange rates on certain balance sheet amounts and to manage other foreign currency exposures. Interest Rate Interest rate risks related to certain fixed-rate debt are hedged using interest rate swaps that are designated as fair value hedging instruments to effectively convert the fixed interest rates to floating interest rates. Securities held in our fixed-income portfolio are subject to different interest rate risks based on their maturities. We manage the average maturity of our fixed-income portfolio to achieve economic returns that correlate to certain broad-based fixed-income indices using exchange-traded option and futures contracts and over-the-counter swap and option contracts. These contracts are not designated as hedging instruments and are included in “Other contracts” in the tables below. Equity Securities held in our equity investments portfolio are subject to market price risk. At times, we may hold options, futures, and swap contracts. These contracts are not designated as hedging instruments and are included in “Other contracts” in the tables below. Credit Our fixed-income portfolio is diversified and consists primarily of investment-grade securities. We use credit default swap contracts to manage credit exposures relative to broad-based indices and to facilitate portfolio diversification. These contracts are not designated as hedging instruments and are included in “Other contracts” in the tables below. Credit-Risk-Related Contingent Features Certain of our counterparty agreements for derivative instruments contain provisions that require our issued and outstanding long-term unsecured debt to maintain an investment grade credit rating and require us to maintain minimum liquidity of $1.0 billion. To the extent we fail to meet these requirements, we will be required to post collateral, similar to the standard convention related to over-the-counter derivatives. As of June 30, 2020, our long-term unsecured debt rating was AAA, and cash investments were in excess of $1.0 billion. As a result, no collateral was required to be posted. The following table presents the notional amounts of our outstanding derivative instruments measured in U.S. dollar equivalents: (In millions) June 30, 2020 June 30, 2019 Designated as Hedging Instruments Foreign exchange contracts purchased $ 635 $ 0 Foreign exchange contracts sold 6,754 6,034 Interest rate contracts purchased 1,295 0 Not Designated as Hedging Instruments Foreign exchange contracts purchased 11,896 14,889 Foreign exchange contracts sold 15,595 15,614 Other contracts purchased 1,844 2,007 Other contracts sold 757 456 Fair Values of Derivative Instruments The following table presents our derivative instruments: Derivative Derivative Derivative Derivative (In millions) Assets Liabilities Assets Liabilities June 30, 2020 June 30, 2019 Designated as Hedging Instruments Foreign exchange contracts $ 44 $ (54 ) $ 0 $ (93 ) Interest rate contracts 93 0 0 0 Not Designated as Hedging Instruments Foreign exchange contracts 245 (334 ) 204 (172 ) Other contracts 18 (11 ) 46 (7 ) Gross amounts of derivatives 400 (399 ) 250 (272 ) Gross amounts of derivatives offset in the balance sheet (154 ) 158 (113 ) 114 Cash collateral received 0 (154 ) 0 (78 ) Net amounts of derivatives $ 246 $ (395 ) $ 137 $ (236 ) Reported as Short-term investments $ 35 $ 0 $ (13 ) $ 0 Other current assets 199 0 146 0 Other long-term assets 12 0 4 0 Other current liabilities 0 (334 ) 0 (221 ) Other long-term liabilities 0 (61 ) 0 (15 ) Total $ 246 $ (395 ) $ 137 $ (236 ) Gross derivative assets and liabilities subject to legally enforceable master netting agreements for which we have elected to offset were $399 million and $399 million, respectively, as of June 30, 2020, and $247 million and $272 million, respectively, as of June 30, 2019. The following table presents the fair value of our derivatives instruments on a gross basis: (In millions) Level 1 Level 2 Level 3 Total June 30, 2020 Derivative assets $ 1 $ 398 $ 1 $ 400 Derivative liabilities 0 (399 ) 0 (399 ) June 30, 2019 Derivative assets 0 247 3 250 Derivative liabilities 0 (272 ) 0 (272 ) Gains (losses) on derivative instruments recognized in our consolidated income statements were as follows: (In millions) Year Ended June 30, 2020 2019 2018 Revenue Other (Expense), Revenue Other (Expense), Revenue Other Income (Expense), Net Designated as Fair Value Hedging Instruments Foreign exchange contracts Derivatives $ 0 $ 1 $ 0 $ (130 ) $ 0 $ (78 ) Hedged items 0 3 0 130 0 78 Excluded from effectiveness assessment 0 139 0 168 0 103 Interest rate contracts Derivatives 0 93 0 0 0 0 Hedged items 0 (93 ) 0 0 0 0 Equity contracts Derivatives 0 0 0 0 0 (324 ) Hedged items 0 0 0 0 0 324 Excluded from effectiveness assessment 0 0 0 0 0 80 Designated as Cash Flow Hedging Instruments Foreign exchange contracts Amount reclassified from accumulated other comprehensive income 0 0 341 0 185 0 Excluded from effectiveness assessment 0 0 (64 ) 0 (255 ) 0 Not Designated as Hedging Instruments Foreign exchange contracts 0 (123 ) 0 (97 ) 0 (33 ) Other contracts 0 50 0 38 0 (104 ) Gains (losses), net of tax, on derivative instruments recognized in our consolidated comprehensive income statements were as follows: (In millions) Year Ended June 30, 2020 2019 2018 Designated as Cash Flow Hedging Instruments Foreign exchange contracts Included in effectiveness assessment $ (38 ) $ 159 $ 219 |
INVENTORIES
INVENTORIES | 12 Months Ended |
Jun. 30, 2020 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | NOTE 6 — INVENTORIES The components of inventories were as follows: (In millions) June 30, 2020 2019 Raw materials $ 700 $ 399 Work in process 83 53 Finished goods 1,112 1,611 Total $ 1,895 $ 2,063 |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Jun. 30, 2020 | |
Property Plant And Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | NOTE 7 — PROPERTY AND EQUIPMENT The components of property and equipment were as follows: (In millions) June 30, 2020 2019 Land $ 1,823 $ 1,540 Buildings and improvements 33,995 26,288 Leasehold improvements 5,487 5,316 Computer equipment and software 41,261 33,823 Furniture and equipment 4,782 4,840 Total, at cost 87,348 71,807 Accumulated depreciation (43,197 ) (35,330 ) Total, net $ 44,151 $ 36,477 During fiscal years 2020, 2019, and 2018, depreciation expense was $10.7 billion, $9.7 billion, and $7.7 billion, respectively. We have committed $5.0 billion for the construction of new buildings, building improvements, and leasehold improvements as of June 30, 2020. During fiscal year 2020, we recorded an impairment charge of $186 million to Property and Equipment, primarily to leasehold improvements, due to the closing of our Microsoft Store physical locations. |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 12 Months Ended |
Jun. 30, 2020 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATIONS | NOTE 8 — BUSINESS COMBINATIONS GitHub, Inc. On October 25, 2018, we acquired GitHub, Inc. (“GitHub”), a software development platform, in a $7.5 billion stock transaction (inclusive of total cash payments of $1.3 billion in respect of vested GitHub equity awards and an indemnity escrow). The acquisition is expected to empower developers to achieve more at every stage of the development lifecycle, accelerate enterprise use of GitHub, and bring Microsoft’s developer tools and services to new audiences. The financial results of GitHub have been included in our consolidated financial statements since the date of the acquisition. GitHub is reported as part of our Intelligent Cloud segment. The allocation of the purchase price to goodwill was completed as of June 30, 2019. The major classes of assets and liabilities to which we allocated the purchase price were as follows: (In millions) Cash, cash equivalents, and short-term investments $ 234 Goodwill 5,497 Intangible assets 1,267 Other assets 143 Other liabilities (217 ) Total $ 6,924 The goodwill recognized in connection with the acquisition is primarily attributable to anticipated synergies from future growth and is not expected to be deductible for tax purposes. We assigned the goodwill to our Intelligent Cloud segment. Following are the details of the purchase price allocated to the intangible assets acquired: (In millions) Amount Weighted Average Life Customer-related $ 648 8 years Technology-based 447 5 years Marketing-related 170 10 years Contract-based 2 2 years Total $ 1,267 7 years Transactions recognized separately from the purchase price allocation were approximately $600 million, primarily related to equity awards recognized as expense over the related service period. Other During fiscal year 2020, we completed 15 acquisitions for $2.4 billion, substantially all of which were paid in cash. These entities have been included in our consolidated results of operations since their respective acquisition dates. The effects of these business combinations, individually and in aggregate, were not material to our consolidated results of operations. |
GOODWILL
GOODWILL | 12 Months Ended |
Jun. 30, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
GOODWILL | NOTE 9 — GOODWILL Changes in the carrying amount of goodwill were as follows: (In millions) June 30, 2018 Acquisitions Other June 30, 2019 Acquisitions Other June 30, Productivity and Business Processes $ 23,823 $ 514 $ (60 ) $ 24,277 $ 7 $ (94 ) $ 24,190 Intelligent Cloud 5,703 5,605 (a) 43 (a) 11,351 1,351 (5 ) 12,697 More Personal Computing 6,157 289 (48 ) 6,398 96 (30 ) 6,464 Total $ 35,683 $ 6,408 $ (65 ) $ 42,026 $ 1,454 $ (129 ) $ 43,351 (a) Includes goodwill of $5.5 billion related to GitHub. See Note 8 – Business Combinations for further information The measurement periods for the valuation of assets acquired and liabilities assumed end as soon as information on the facts and circumstances that existed as of the acquisition dates becomes available, but do not exceed 12 months. Adjustments in purchase price allocations may require a change in the amounts allocated to goodwill during the periods in which the adjustments are determined. Any change in the goodwill amounts resulting from foreign currency translations and purchase accounting adjustments are presented as “Other” in the table above. Also included in “Other” are business dispositions and transfers between segments due to reorganizations, as applicable. Goodwill Impairment We test goodwill for impairment annually on May 1 at the reporting unit level, primarily using a discounted cash flow methodology with a peer-based, risk-adjusted weighted average cost of capital. We believe use of a discounted cash flow approach is the most reliable indicator of the fair values of the businesses. No instances of impairment were identified in our May 1, 2020, May 1, 2019, or May 1, 2018 tests. As of June 30, 2020 and 2019, accumulated goodwill impairment was $11.3 billion. |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 12 Months Ended |
Jun. 30, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS | NOTE 10 — INTANGIBLE ASSETS The components of intangible assets, all of which are finite-lived, were as follows: (In millions) Gross Accumulated Net Carrying Gross Accumulated Net Carrying June 30, 2020 2019 Technology-based $ 8,160 $ (6,381 ) $ 1,779 $ 7,691 $ (5,771 ) $ 1,920 Customer-related 4,967 (2,320 ) 2,647 4,709 (1,785 ) 2,924 Marketing-related 4,158 (1,588 ) 2,570 4,165 (1,327 ) 2,838 Contract-based 474 (432 ) 42 574 (506 ) 68 Total $ 17,759 $ (10,721 ) $ 7,038 $ 17,139 (a) $ (9,389 ) $ 7,750 (a) Includes intangible assets of $1.3 billion related to GitHub. See Note 8 – Business Combinations for further information No material impairments of intangible assets were identified during fiscal years 2020, 2019, or 2018. We estimate that we have no significant residual value related to our intangible assets. The components of intangible assets acquired during the periods presented were as follows: (In millions) Amount Weighted Average Life Amount Weighted Average Life Year Ended June 30, 2020 2019 Technology-based $ 531 6 years $ 814 5 years Customer-related 303 5 years 710 8 years Marketing-related 2 2 years 177 10 years Contract-based 0 0 years 7 3 years Total $ 836 5 years $ 1,708 7 years Intangible assets amortization expense was $1.6 billion, $1.9 billion, and $2.2 billion for fiscal years 2020, 2019, and 2018, respectively. The following table outlines the estimated future amortization expense related to intangible assets held as of June 30, 2020: (In millions) Year Ending June 30, 2021 $ 1,483 2022 1,399 2023 1,219 2024 851 2025 447 Thereafter 1,639 Total $ 7,038 |
DEBT
DEBT | 12 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
DEBT | NOTE 11 — DEBT The components of debt were as follows: (In millions, issuance by calendar year) Maturities (calendar year) Stated Interest Rate Effective Interest Rate June 30, 2020 June 30, 2019 2009 issuance of $3.8 billion (a) 2039 5.20% 5.24% $ 559 $ 750 2010 issuance of $4.8 billion (a) 2020 – 2040 3.00% – 4.50% 3.14% – 4.57% 1,571 2,000 2011 issuance of $2.3 billion (a) 2021 – 2041 4.00% – 5.30% 4.08% – 5.36% 1,270 1,500 2012 issuance of $2.3 billion 2022 – 2042 2.13% – 3.50% 2.24% – 3.57% 1,650 1,650 2013 issuance of $5.2 billion (a) 2023 – 2043 2.38% – 4.88% 2.47% – 4.92% 2,919 3,500 2013 issuance of €4.1 billion 2021 – 2033 2.13% – 3.13% 2.23% – 3.22% 4,549 4,613 2014 issuance 0 18 2015 issuance of $23.8 billion (a) 2020 – 2055 2.00% – 4.75% 2.09% – 4.78% 15,549 22,000 2016 issuance of $19.8 billion (a) 2021 – 2056 1.55% – 3.95% 1.64% – 4.03% 16,955 19,750 2017 issuance of $17.0 billion (a) 2022 – 2057 2.40% – 4.50% 2.52% – 4.53% 12,385 17,000 2020 issuance of $10.0 billion (a) 2050 – 2060 2.53% – 2.68% 2.53% – 2.68% 10,000 0 Total face value 67,407 72,781 Unamortized discount and issuance costs (554 ) (603 ) Hedge fair value adjustments ( b ) 93 0 Premium on debt exchange (a) (3,619 ) 0 Total debt 63,327 72,178 Current portion of long-term debt (3,749 ) (5,516 ) Long-term debt $ 59,578 $ 66,662 (a) In June 2020, we exchanged a portion of our existing debt at premium for cash and new debt with longer maturities. The premium will be amortized over the term of the new debt. (b) Refer to Note 5 – Derivatives for further information on the interest rate swaps related to fixed-rate debt. As of June 30, 2020 and 2019, the estimated fair value of long-term debt, including the current portion, was $77.1 billion and $78.9 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 June 30, 2020: (In millions) Year Ending June 30, 2021 $ 3,750 2022 7,966 2023 2,750 2024 5,250 2025 2,250 Thereafter 45,441 Total $ 67,407 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 12 — INCOME TAXES Tax Cuts and Jobs Act On December 22, 2017, the Tax Cuts and Jobs Act In fiscal year 2019, in response to the TCJA and recently issued regulations, we transferred certain intangible properties held by our foreign subsidiaries to the U.S. and Ireland. The transfers of intangible properties resulted in a $2.6 billion net income tax benefit recorded in the fourth quarter of fiscal year 2019, as the value of future tax deductions exceeded the current tax liability from foreign jurisdictions and U.S. global intangible low-taxed income (“GILTI”) tax. Provision for Income Taxes The components of the provision for income taxes were as follows: (In millions) Year Ended June 30, 2020 2019 2018 Current Taxes U.S. federal $ 3,537 $ 4,718 $ 19,764 U.S. state and local 763 662 934 Foreign 4,444 5,531 4,348 Current taxes $ 8,744 $ 10,911 $ 25,046 Deferred Taxes U.S. federal $ 58 $ (5,647 ) $ (4,292 ) U.S. state and local (6 ) (1,010 ) (458 ) Foreign (41 ) 194 (393 ) Deferred taxes $ 11 $ (6,463 ) $ (5,143 ) Provision for income taxes $ 8,755 $ 4,448 $ 19,903 U.S. and foreign components of income before income taxes were as follows: (In millions) Year Ended June 30, 2020 2019 2018 U.S. $ 24,116 $ 15,799 $ 11,527 Foreign 28,920 27,889 24,947 Income before income taxes $ 53,036 $ 43,688 $ 36,474 Effective Tax Rate The items accounting for the difference between income taxes computed at the U.S. federal statutory rate and our effective rate were as follows: Year Ended June 30, 2020 2019 2018 Federal statutory rate 21.0% 21.0% 28.1% Effect of: Foreign earnings taxed at lower rates (3.7)% (4.1)% (7.8)% Impact of the enactment of the TCJA 0% 0.4% 37.7% Impact of intangible property transfers 0% (5.9)% 0% Foreign-derived intangible income deduction (1.1)% (1.4)% 0% State income taxes, net of federal benefit 1.3% 0.7% 1.3% Research and development credit (1.1)% (1.1)% (1.3)% Excess tax benefits relating to stock-based compensation (2.2)% (2.2)% (2.5)% Interest, net 1.0% 1.0% 1.2% Other reconciling items, net 1.3% 1.8% (2.1)% Effective rate 16.5% 10.2% 54.6% The decrease from the federal statutory rate in fiscal year 2020 is primarily due to earnings taxed at lower rates in foreign jurisdictions resulting from producing and distributing our products and services through our foreign regional operations centers in Ireland and Puerto Rico, and tax benefits relating to stock-based compensation. The decrease from the federal statutory rate in fiscal year 2019 is primarily due to a $2.6 billion net income tax benefit related to intangible property transfers, and earnings taxed at lower rates in foreign jurisdictions resulting from producing and distributing our products and services through our foreign regional operations centers in Ireland, Singapore, and Puerto Rico. The increase from the federal statutory rate in fiscal year 2018 is primarily due to the net charge related to the enactment of the TCJA in the second quarter of fiscal year 2018, offset in part by earnings taxed at lower rates in foreign jurisdictions. In fiscal year 2020, our foreign regional operating centers in Ireland and Puerto Rico, which are taxed at rates lower than the U.S. rate, generated 86% of our foreign income before tax. In fiscal years 2019 and 2018, our foreign regional operating centers in Ireland, Singapore, and Puerto Rico, which are taxed at rates lower than the U.S. rate, generated 82% and 87% of our foreign income before tax, respectively. Other reconciling items, net consists primarily of tax credits and GILTI tax. In fiscal years 2020, 2019, and 2018, there were no individually significant other reconciling items. The increase in our effective tax rate for fiscal year 2020 compared to fiscal year 2019 was primarily due to a $2.6 billion net income tax benefit in the fourth quarter of fiscal year 2019 related to intangible property transfers. The decrease in our effective tax rate for fiscal year 2019 compared to fiscal year 2018 was primarily due to the net charge related to the enactment of the TCJA in the second quarter of fiscal year 2018, and a $2.6 billion net income tax benefit in the fourth quarter of fiscal year 2019 related to intangible property transfers. The components of the deferred income tax assets and liabilities were as follows: (In millions) June 30, 2020 2019 Deferred Income Tax Assets Stock-based compensation expense $ 461 $ 406 Accruals, reserves, and other expenses 2,721 2,287 Loss and credit carryforwards 865 3,518 Depreciation and amortization 6,361 7,046 Leasing liabilities 3,025 1,594 Unearned revenue 1,553 475 Other 354 367 Deferred income tax assets 15,340 15,693 Less valuation allowance (755 ) (3,214 ) Deferred income tax assets, net of valuation allowance $ 14,585 $ 12,479 Deferred Income Tax Liabilities Book/tax basis differences in investments and debt $ (2,642 ) $ (738 ) Unearned revenue 0 (30 ) Leasing assets (2,817 ) (1,510 ) Deferred GILTI tax liabilities (2,581 ) (2,607 ) Other (344 ) (291 ) Deferred income tax liabilities $ (8,384 ) $ (5,176 ) Net deferred income tax assets $ 6,201 $ 7,303 Reported As Other long-term assets $ 6,405 $ 7,536 Long-term deferred income tax liabilities (204 ) (233 ) Net deferred income tax assets $ 6,201 $ 7,303 Deferred income tax balances reflect the effects of temporary differences between the carrying amounts of assets and liabilities and their tax bases and are stated at enacted tax rates expected to be in effect when the taxes are paid or recovered. As of June 30, 2020, we had federal, state, and foreign net operating loss carryforwards of $547 million, $975 million, and $2.0 billion, respectively. The federal and state net operating loss carryforwards will expire in various years from fiscal 2021 through 2040, if not utilized. The majority of our foreign net operating loss carryforwards do not expire. Certain acquired net operating loss carryforwards are subject to an annual limitation, but are expected to be realized with the exception of those which have a valuation allowance. The valuation allowance disclosed in the table above relates to the foreign net operating loss carryforwards and other net deferred tax assets that may not be realized. In fiscal year 2020, we removed $2.0 billion of foreign net operating losses and corresponding valuation allowances as a result of the liquidation of a foreign subsidiary. There was no impact to our consolidated financial statements. Income taxes paid, net of refunds, were $12.5 billion, $8.4 billion, and $5.5 billion in fiscal years 2020, 2019, and 2018, respectively. Uncertain Tax Positions Gross unrecognized tax benefits related to uncertain tax positions as of June 30, 2020, 2019, and 2018, were $13.8 billion, $13.1 billion, and $12.0 billion, respectively, which were primarily included in long-term income taxes in our consolidated balance sheets. If recognized, the resulting tax benefit would affect our effective tax rates for fiscal years 2020, 2019, and 2018 by $12.1 billion, $12.0 billion, and $11.3 billion, respectively. As of June 30, 2020, 2019, and 2018, we had accrued interest expense related to uncertain tax positions of $4.0 billion, $3.4 billion, and $3.0 billion, respectively, net of income tax benefits. The provision for income taxes for fiscal years 2020, 2019, and 2018 included interest expense related to uncertain tax positions of $579 million, $515 million, and $688 million, respectively, net of income tax benefits. The aggregate changes in the gross unrecognized tax benefits related to uncertain tax positions were as follows: (In millions) Year Ended June 30, 2020 2019 2018 Beginning unrecognized tax benefits $ 13,146 $ 11,961 $ 11,737 Decreases related to settlements (31 ) (316 ) (193 ) Increases for tax positions related to the current year 647 2,106 1,445 Increases for tax positions related to prior years 366 508 151 Decreases for tax positions related to prior years (331 ) (1,113 ) (1,176 ) Decreases due to lapsed statutes of limitations (5 ) 0 (3 ) Ending unrecognized tax benefits $ 13,792 $ 13,146 $ 11,961 We settled a portion of the Internal Revenue Service (“IRS”) audit for tax years 2004 to 2006 in fiscal year 2011. In February 2012, the IRS withdrew its 2011 Revenue Agents Report related to unresolved issues for tax years 2004 to 2006 and reopened the audit phase of the examination. We also settled a portion of the IRS audit for tax years 2007 to 2009 in fiscal year 2016, and a portion of the IRS audit for tax years 2010 to 2013 in fiscal year 2018. We remain under audit for tax years 2004 to 2013. In April 2020, the IRS commenced the audit for tax years 2014 to 2017. As of June 30, 2020, the primary unresolved issues for the IRS audits relate to transfer pricing, which could have a material impact in our consolidated financial statements when the matters are resolved. We believe our allowances for income tax contingencies are adequate. We have not received a proposed assessment for the unresolved issues and do not expect a final resolution of these issues in the next 12 months. Based on the information currently available, we do not anticipate a significant increase or decrease to our tax contingencies for these issues within the next 12 months. We are subject to income tax in many jurisdictions outside the U.S. Our operations in certain jurisdictions remain subject to examination for tax years 1996 to 2019, some of which are currently under audit by local tax authorities. The resolution of each of these audits is not expected to be material to our consolidated financial statements. |
UNEARNED REVENUE
UNEARNED REVENUE | 12 Months Ended |
Jun. 30, 2020 | |
Revenue From Contract With Customer [Abstract] | |
UNEARNED REVENUE | NOTE 13 — UNEARNED REVENUE Unearned revenue by segment was as follows: (In millions) June 30, 2020 2019 Productivity and Business Processes $ 18,643 $ 16,831 Intelligent Cloud 16,620 16,988 More Personal Computing 3,917 3,387 Total $ 39,180 $ 37,206 Changes in unearned revenue were as follows: (In millions) Year Ended June 30, 2020 Balance, beginning of period $ 37,206 Deferral of revenue 78,922 Recognition of unearned revenue (76,948 ) Balance, end of period $ 39,180 Revenue allocated to remaining performance obligations, which includes unearned revenue and amounts that will be invoiced and recognized as revenue in future periods, was $111 billion as of June 30, 2020, of which $107 billion is related to the commercial portion of revenue. We expect to recognize approximately 50% of this revenue over the next 12 months and the remainder thereafter. |
LEASES
LEASES | 12 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
LEASES | NOTE 14 — LEASES We have operating and finance leases for datacenters, corporate offices, research and development facilities, retail stores, and certain equipment. Our leases have remaining lease terms of 1 year to 20 years, some of which include options to extend the leases for up to 5 years The components of lease expense were as follows: (In millions) Year Ended June 30, 2020 2019 2018 Operating lease cost $ 2,043 $ 1,707 $ 1,585 Finance lease cost: Amortization of right-of-use assets $ 611 $ 370 $ 243 Interest on lease liabilities 336 247 175 Total finance lease cost $ 947 $ 617 $ 418 Supplemental cash flow information related to leases was as follows: (In millions) Year Ended June 30, 2020 2019 2018 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,829 $ 1,670 $ 1,522 Operating cash flows from finance leases 336 247 175 Financing cash flows from finance leases 409 221 144 Right-of-use assets obtained in exchange for lease obligations: Operating leases 3,677 2,303 1,571 Finance leases 3,467 2,532 1,933 Supplemental balance sheet information related to leases was as follows: (In millions, except lease term and discount rate) June 30, 2020 2019 Operating Leases Operating lease right-of-use assets $ 8,753 $ 7,379 Other current liabilities $ 1,616 $ 1,515 Operating lease liabilities 7,671 6,188 Total operating lease liabilities $ 9,287 $ 7,703 Finance Leases Property and equipment, at cost $ 10,371 $ 7,041 Accumulated depreciation (1,385 ) (774 ) Property and equipment, net $ 8,986 $ 6,267 Other current liabilities $ 540 $ 317 Other long-term liabilities 8,956 6,257 Total finance lease liabilities $ 9,496 $ 6,574 Weighted Average Remaining Lease Term Operating leases 8 years 7 years Finance leases 13 years 13 years Weighted Average Discount Rate Operating leases 2.7% 3.0% Finance leases 3.9% 4.6% Maturities of lease liabilities were as follows: (In millions) Year Ending June 30, Operating Leases Finance Leases 2021 $ 1,807 $ 880 2022 1,652 894 2023 1,474 903 2024 1,262 916 2025 1,000 1,236 Thereafter 3,122 7,194 Total lease payments 10,317 12,023 Less imputed interest (1,030 ) (2,527 ) Total $ 9,287 $ 9,496 As of June 30, 2020, we have additional operating and finance leases, primarily for datacenters, that have not yet commenced of $3.4 billion and $3.5 billion, respectively. These operating and finance leases 1 year 16 years During fiscal year 2020, we recorded an impairment charge of $161 million to operating lease right-of-use assets due to the closing of our Microsoft Store physical locations. |
CONTINGENCIES
CONTINGENCIES | 12 Months Ended |
Jun. 30, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
CONTINGENCIES | NOTE 15 — CONTINGENCIES Patent and Intellectual Property Claims There were 64 patent infringement cases pending against Microsoft as of June 30, 2020, none of which are material individually or in aggregate. Antitrust, Unfair Competition, and Overcharge Class Actions Antitrust and unfair competition class action lawsuits were filed against us in British Columbia, Ontario, and Quebec, Canada. All three have been certified on behalf of Canadian indirect purchasers who acquired licenses for Microsoft operating system software and/or productivity application software between 1998 and 2010. The trial of the British Columbia action commenced in May 2016. Following a mediation, the parties agreed to a global settlement of all three Canadian actions, and submitted the proposed settlement agreement to the courts in all three jurisdictions for approval. The final settlement has been approved by the courts in British Columbia, Ontario, and Quebec, and the claims administration process will commence once each court approves the form of notice to the class Other Antitrust Litigation and Claims China State Administration for Industry and Commerce Investigatio n In 2014, Microsoft was informed that China’s State Agency for Market Regulation (“SAMR”) (formerly State Administration for Industry and Commerce) had begun a formal investigation relating to China’s Anti-Monopoly Law, and the SAMR conducted onsite inspections of Microsoft offices in Beijing, Shanghai, Guangzhou, and Chengdu. The SAMR has presented its preliminary views as to certain possible violations of China's Anti-Monopoly Law, and discussions are expected to continue. Product-Related Litigation U.S. Cell Phone Litigation Microsoft Mobile Oy, a subsidiary of Microsoft, along with other handset manufacturers and network operators, is a defendant in 40 lawsuits filed in the Superior Court for the District of Columbia by individual plaintiffs who allege that radio emissions from cellular handsets caused their brain tumors and other adverse health effects. We assumed responsibility for these claims in our agreement to acquire Nokia’s Devices and Services business and have been substituted for the Nokia defendants. Nine of these cases were filed in 2002 and are consolidated for certain pre-trial proceedings; the remaining cases are stayed. In a separate 2009 decision, the Court of Appeals for the District of Columbia held that adverse health effect claims arising from the use of cellular handsets that operate within the U.S. Federal Communications Commission radio frequency emission guidelines (“FCC Guidelines”) are pre-empted by federal law. The plaintiffs allege that their handsets either operated outside the FCC Guidelines or were manufactured before the FCC Guidelines went into effect. The lawsuits also allege an industry-wide conspiracy to manipulate the science and testing around emission guidelines. In 2013, the defendants in the consolidated cases moved to exclude the plaintiffs’ expert evidence of general causation on the basis of flawed scientific methodologies. In 2014, the trial court granted in part and denied in part the defendants’ motion to exclude the plaintiffs’ general causation experts. The defendants filed an interlocutory appeal to the District of Columbia Court of Appeals challenging the standard for evaluating expert scientific evidence. In October 2016, the Court of Appeals issued its decision adopting the standard advocated by the defendants and remanding the cases to the trial court for further proceedings under that standard. The plaintiffs have filed supplemental expert evidence, portions of which the defendants have moved to strike. In August 2018, the trial court issued an order striking portions of the plaintiffs’ expert reports. A hearing is . Other Contingencies We also are subject to a variety of other claims and suits that arise from time to time in the ordinary course of our business. Although management currently believes that resolving claims against us, individually or in aggregate, will not have a material adverse impact in our consolidated financial statements, these matters are subject to inherent uncertainties and management’s view of these matters may change in the future. As of June 30, 2020, we accrued aggregate legal liabilities of $306 million. While we intend to defend these matters vigorously, adverse outcomes that we estimate could reach approximately $500 million in aggregate beyond recorded amounts are reasonably possible. Were unfavorable final outcomes to occur, there exists the possibility of a material adverse impact in our consolidated financial statements for the period in which the effects become reasonably estimable. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | NOTE 16 — STOCKHOLDERS’ EQUITY Shares Outstanding Shares of common stock outstanding were as follows: (In millions) Year Ended June 30, 2020 2019 2018 Balance, beginning of year 7,643 7,677 7,708 Issued 54 116 68 Repurchased (126 ) (150 ) (99 ) Balance, end of year 7,571 7,643 7,677 Share Repurchases On September 20, 2016, our Board of Directors approved a share repurchase program authorizing up to $40.0 billion in share repurchases. This share repurchase program commenced in December 2016 and was completed in February 2020. On September 18, 2019, our Board of Directors approved a share repurchase program authorizing up to $40.0 billion in share repurchases. This share repurchase program commenced in February 2020, following completion of the program approved on September 20, 2016, has no expiration date, and may be terminated at any time. As of June 30, 2020, $31.7 billion remained of this $40.0 billion share repurchase program. We repurchased the following shares of common stock under the share repurchase programs: (In millions) Shares Amount Shares Amount Shares Amount Year Ended June 30, 2020 2019 2018 First Quarter 29 $ 4,000 24 $ 2,600 22 $ 1,600 Second Quarter 32 4,600 57 6,100 22 1,800 Third Quarter 37 6,000 36 3,899 34 3,100 Fourth Quarter 28 5,088 33 4,200 21 2,100 Total 126 $ 19,688 150 $ 16,799 99 $ 8,600 Shares repurchased during the fourth quarter of fiscal year 2020 were under the share repurchase program approved on September 18, 2019. Shares repurchased during the third quarter of fiscal year 2020 were under the share repurchase programs approved on both September 20, 2016 and September 18, 2019. All other shares repurchased were under the share repurchase program approved on September 20, 2016. The above table excludes shares repurchased to settle employee tax withholding related to the vesting of stock awards of $3.3 billion, $2.7 billion, and $2.1 billion for fiscal years 2020, 2019, and 2018, respectively. All share repurchases were made using cash resources. Dividends Our Board of Directors declared the following dividends: Declaration Date Record Date Payment Date Dividend Per Share Amount Fiscal Year 2020 (In millions) September 18, 2019 November 21, 2019 December 12, 2019 $ 0.51 $ 3,886 December 4, 2019 February 20, 2020 March 12, 2020 0.51 3,876 March 9, 2020 May 21, 2020 June 11, 2020 0.51 3,865 June 17, 2020 August 20, 2020 September 10, 2020 0.51 3,861 Total $ 2.04 $ 15,488 Fiscal Year 2019 September 18, 2018 November 15, 2018 December 13, 2018 $ 0.46 $ 3,544 November 28, 2018 February 21, 2019 March 14, 2019 0.46 3,526 March 11, 2019 May 16, 2019 June 13, 2019 0.46 3,521 June 12, 2019 August 15, 2019 September 12, 2019 0.46 3,510 Total $ 1.84 $ 14,101 The dividend declared on June 17, 2020 was included in other current liabilities as of June 30, 2020. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | NOTE 17 — ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table summarizes the changes in accumulated other comprehensive income (loss) by component: (In millions) Year Ended June 30, 2020 2019 2018 Derivatives Balance, beginning of period $ 0 $ 173 $ 134 Unrealized gains (losses), net of tax of $(10) (38 ) 160 218 Reclassification adjustments for gains included in revenue 0 (341 ) (185 ) Tax expense included in provision for income taxes 0 8 6 Amounts reclassified from accumulated other comprehensive income (loss) 0 (333 ) (179 ) Net change related to derivatives, net of tax of $(10) (38 ) (173 ) 39 Balance, end of period $ (38 ) $ 0 $ 173 Investments Balance, beginning of period $ 1,488 $ (850 ) $ 1,825 Unrealized gains (losses), net of tax of $1,057 3,987 2,331 (1,146 ) Reclassification adjustments for (gains) losses included in other income (expense), net 4 93 (2,309 ) Tax expense (benefit) included in provision for income taxes (1 ) (19 ) 738 Amounts reclassified from accumulated other comprehensive income (loss) 3 74 (1,571 ) Net change related to investments, net of tax of $1,058 3,990 2,405 (2,717 ) Cumulative effect of accounting changes 0 (67 ) 42 Balance, end of period $ 5,478 $ 1,488 $ (850 ) Translation Adjustments and Other Balance, beginning of period $ (1,828 ) $ (1,510 ) $ (1,332 ) Translation adjustments and other, net of tax effects of $1 (426 ) (318 ) (178 ) Balance, end of period $ (2,254 ) $ (1,828 ) $ (1,510 ) Accumulated other comprehensive income (loss), end of period $ 3,186 $ (340 ) $ (2,187 ) |
EMPLOYEE STOCK AND SAVINGS PLAN
EMPLOYEE STOCK AND SAVINGS PLANS | 12 Months Ended |
Jun. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
EMPLOYEE STOCK AND SAVINGS PLANS | NOTE 18 — EMPLOYEE STOCK AND SAVINGS PLANS We grant stock-based compensation to employees and directors. As of June 30, 2020, an aggregate of 283 million shares were authorized for future grant under our stock plans. Awards that expire or are canceled without delivery of shares generally become available for issuance under the plans. We issue new shares of Microsoft common stock to satisfy vesting of awards granted under our stock plans. We also have an ESPP for all eligible employees. Stock-based compensation expense and related income tax benefits were as follows: (In millions) Year Ended June 30, 2020 2019 2018 Stock-based compensation expense $ 5,289 $ 4,652 $ 3,940 Income tax benefits related to stock-based compensation 938 816 823 Stock Plans Stock awards entitle the holder to receive shares of Microsoft common stock as the award vests. Stock awards generally vest over a service period of four years or five years. Executive Incentive Plan Under the Executive Incentive Plan, the Compensation Committee approves stock awards to executive officers and certain senior executives. RSUs generally vest ratably over a service period of four years. PSUs generally vest over a performance period of three years. The number of shares the PSU holder receives is based on the extent to which the corresponding performance goals have been achieved. Activity for All Stock Plans The fair value of stock awards was estimated on the date of grant using the following assumptions: Year ended June 30, 2020 2019 2018 Dividends per share (quarterly amounts) $ 0.46 – 0.51 $ 0.42 – 0.46 $ 0.39 – 0.42 Interest rates 0.1% – 2.2% 1.8% – 3.1% 1.7% – 2.9% During fiscal year 2020, the following activity occurred under our stock plans: Shares Weighted Average Grant-Date Fair Value (In millions) Stock Awards Nonvested balance, beginning of year 147 $ 78.49 Granted (a) 53 140.49 Vested (65 ) 75.35 Forfeited (9 ) 90.30 Nonvested balance, end of year 126 $ 105.23 (a) Includes 2 million, 2 million, and 3 million of PSUs granted at target and performance adjustments above target levels for fiscal years 2020, 2019, and 2018, respectively. As of June 30, 2020, there was approximately $10.2 billion of total unrecognized compensation costs related to stock awards. These costs are expected to be recognized over a weighted average period of three years. The weighted average grant-date fair value of stock awards granted was $140.49, $107.02, and $75.88 for fiscal years 2020, 2019, and 2018, respectively. The fair value of stock awards vested was $10.1 billion, $8.7 billion, and $6.6 billion, for fiscal years 2020, 2019, and 2018, respectively. Employee Stock Purchase Plan We have an ESPP for all eligible employees. Shares of our common stock may be purchased by employees at three-month intervals at 90% of the fair market value on the last trading day of each three-month period. Employees may purchase shares having a value not exceeding 15% of their gross compensation during an offering period. Employees purchased the following shares during the periods presented: (Shares in millions) Year Ended June 30, 2020 2019 2018 Shares purchased 9 11 13 Average price per share $ 142.22 $ 104.85 $ 76.40 As of June 30, 2020, 96 million shares of our common stock were reserved for future issuance through the ESPP. Savings Plan We have savings plans in the U.S. that qualify under Section 401(k) of the Internal Revenue Code, and a number of savings plans in international locations. Eligible U.S. employees may contribute a portion of their salary into the savings plans, subject to certain limitations. We contribute fifty cents for each dollar a participant contributes into the plans, with a maximum employer contribution of 50% of the IRS contribution limit for the calendar year. Employer-funded retirement benefits for all plans were $1.0 billion, $877 million, and $807 million in fiscal years 2020, 2019, and 2018, respectively, and were expensed as contributed. |
SEGMENT INFORMATION AND GEOGRAP
SEGMENT INFORMATION AND GEOGRAPHIC DATA | 12 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION AND GEOGRAPHIC DATA | NOTE 19 — SEGMENT INFORMATION AND GEOGRAPHIC DATA In its operation of the business, management, including our chief operating decision maker, who is also our Chief Executive Officer, reviews certain financial information, including segmented internal profit and loss statements prepared on a basis not consistent with GAAP. During the periods presented, we reported our financial performance based on the following segments: Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. Our reportable segments are described below. Productivity and Business Processes Our Productivity and Business Processes segment consists of products and services in our portfolio of productivity, communication, and information services, spanning a variety of devices and platforms. This segment primarily comprises: • Office Commercial, including Office 365 subscriptions, the Office portion of Microsoft 365 Commercial subscriptions, and Office licensed on-premises, comprising Office, Exchange, SharePoint, Microsoft Teams, Office 365 Security and Compliance, and Skype for Business, and related Client Access Licenses (“CALs”). • Office Consumer, including Microsoft 365 Consumer (formerly Office 365 Consumer) subscriptions and Office licensed on-premises, and Office Consumer Services, including Skype, Outlook.com, and OneDrive. • LinkedIn, including Talent Solutions, Learning Solutions, Marketing Solutions, Sales Solutions, and Premium Subscriptions. • Dynamics business solutions, including Dynamics 365, a set of cloud-based applications across ERP and CRM, Dynamics ERP on-premises, and Dynamics CRM on-premises. Intelligent Cloud Our Intelligent Cloud segment consists of our public, private, and hybrid server products and cloud services that can power modern business and developers. This segment primarily comprises: • Server products and cloud services, including Azure; SQL Server, Windows Server, Visual Studio, System Center, and related CALs; and GitHub. • Enterprise Services, including Premier Support Services and Microsoft Consulting Services. More Personal Computing Our More Personal Computing segment consists of products and services that put customers at the center of the experience with our technology. This segment primarily comprises: • Windows, including Windows OEM licensing and other non-volume licensing of the Windows operating system; Windows Commercial, comprising volume licensing of the Windows operating system, Windows cloud services, and other Windows commercial offerings; patent licensing; Windows Internet of Things; and MSN advertising. • Devices, including Surface and PC accessories. • Gaming, including Xbox hardware and Xbox content and services, comprising Xbox Live ( transactions, subscriptions, cloud services, and advertising ), video games, and third-party video game royalties. • Search. Revenue and costs are generally directly attributed to our segments. However, due to the integrated structure of our business, certain revenue recognized and costs incurred by one segment may benefit other segments. Revenue from certain contracts is allocated among the segments based on the relative value of the underlying products and services, which can include allocation based on actual prices charged, prices when sold separately, or estimated costs plus a profit margin. Cost of revenue is allocated in certain cases based on a relative revenue methodology. Operating expenses that are allocated primarily include those relating to marketing of products and services from which multiple segments benefit and are generally allocated based on relative gross margin. In addition, certain costs incurred at a corporate level that are identifiable and that benefit our segments are allocated to them. These allocated costs include costs of: legal, including settlements and fines; information technology; human resources; finance; excise taxes; field selling; shared facilities services; and customer service and support. Each allocation is measured differently based on the specific facts and circumstances of the costs being allocated. Certain corporate-level activity is not allocated to our segments. Segment revenue and operating income were as follows during the periods presented: (In millions) Year Ended June 30, 2020 2019 2018 Revenue Productivity and Business Processes $ 46,398 $ 41,160 $ 35,865 Intelligent Cloud 48,366 38,985 32,219 More Personal Computing 48,251 45,698 42,276 Total $ 143,015 $ 125,843 $ 110,360 Operating Income Productivity and Business Processes $ 18,724 $ 16,219 $ 12,924 Intelligent Cloud 18,324 13,920 11,524 More Personal Computing 15,911 12,820 10,610 Total $ 52,959 $ 42,959 $ 35,058 No sales to an individual customer or country other than the United States accounted for more than 10% of revenue for fiscal years 2020, 2019, or 2018. Revenue, classified by the major geographic areas in which our customers were located, was as follows: (In millions) Year Ended June 30, 2020 2019 2018 United States (a) $ 73,160 $ 64,199 $ 55,926 Other countries 69,855 61,644 54,434 Total $ 143,015 $ 125,843 $ 110,360 (a) Includes billings to OEMs and certain multinational organizations because of the nature of these businesses and the impracticability of determining the geographic source of the revenue. Revenue from external customers, classified by significant product and service offerings, was as follows: (In millions) Year Ended June 30, 2020 2019 2018 Server products and cloud services $ 41,379 $ 32,622 $ 26,129 Office products and cloud services 35,316 31,769 28,316 Windows 22,294 20,395 19,518 Gaming 11,575 11,386 10,353 8,077 6,754 5,259 Search advertising 7,740 7,628 7,012 Devices 6,457 6,095 5,134 Enterprise Services 6,409 6,124 5,846 Other 3,768 3,070 2,793 Total $ 143,015 $ 125,843 $ 110,360 Our commercial cloud revenue, which includes Office 365 Commercial, Azure, the commercial portion of LinkedIn, Dynamics 365, and other commercial cloud properties, was $51.7 billion, $38.1 billion and $26.6 billion in fiscal years 2020, 2019, and 2018, respectively. These amounts are primarily included in Office products and cloud services, Server products and cloud services, and LinkedIn in the table above. Assets are not allocated to segments for internal reporting presentations. A portion of amortization and depreciation is included with various other costs in an overhead allocation to each segment. It is impracticable for us to separately identify the amount of amortization and depreciation by segment that is included in the measure of segment profit or loss. Long-lived assets, excluding financial instruments and tax assets, classified by the location of the controlling statutory company and with countries over 10% of the total shown separately, were as follows: (In millions) June 30, 2020 2019 2018 United States $ 60,789 $ 55,252 $ 44,501 Ireland 12,734 12,958 12,843 Other countries 29,770 25,422 22,538 Total $ 103,293 $ 93,632 $ 79,882 |
QUARTERLY INFORMATION (UNAUDITE
QUARTERLY INFORMATION (UNAUDITED) | 12 Months Ended |
Jun. 30, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY INFORMATION (UNAUDITED) | NOTE 20 — QUARTERLY INFORMATION (UNAUDITED) (In millions, except per share amounts) Quarter Ended September 30 December 31 March 31 June 30 Total Fiscal Year 2020 Revenue $ 33,055 $ 36,906 $ 35,021 $ 38,033 $ 143,015 Gross margin 22,649 24,548 24,046 25,694 96,937 Operating income 12,686 13,891 12,975 13,407 52,959 Net income 10,678 11,649 10,752 11,202 44,281 Basic earnings per share 1.40 1.53 1.41 1.48 5.82 Diluted earnings per share 1.38 1.51 1.40 1.46 5.76 Fiscal Year 2019 Revenue 29,084 32,471 30,571 33,717 125,843 Gross margin 19,179 20,048 20,401 23,305 82,933 Operating income 9,955 10,258 10,341 12,405 42,959 Net income (a) 8,824 8,420 8,809 13,187 39,240 Basic earnings per share 1.15 1.09 1.15 1.72 5.11 Diluted earnings per share (b) 1.14 1.08 1.14 1.71 5.06 (a) Reflects the $157 million net charge related to the enactment of the TCJA for the second quarter and the $2.6 billion net income tax benefit related to the intangible property transfers for the fourth quarter, which together increased net income by $2.4 billion for fiscal year 2019. See Note 12 – Income Taxes for further information. (b) Reflects the net charge related to the enactment of the TCJA and the net income tax benefit related to the intangible property transfers, which decreased (increased) diluted EPS $0.02 for the second quarter, $(0.34) for the fourth quarter, and $(0.31) for fiscal year 2019 |
ACCOUNTING POLICIES (Policies)
ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Accounting Principles | Accounting Principles Our consolidated financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). We have recast certain prior period amounts to conform to current period presentation. The recast these prior period amounts had no impact on our consolidated balance sheets, consolidated income statements, or net cash from or used in operating, financing, or investing on our consolidated |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of Microsoft Corporation and its subsidiaries. Intercompany transactions and balances have been eliminated. |
Estimates and Assumptions | Estimates and Assumptions Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses. Examples of estimates and assumptions include: for revenue recognition, determining the nature and timing of satisfaction of performance obligations, and determining the standalone selling price (“SSP”) of performance obligations, variable consideration, and other obligations such as product returns and refunds; loss contingencies; product warranties; the fair value of and/or potential impairment of goodwill and intangible assets for our reporting units; product life cycles; useful lives of our tangible and intangible assets; allowances for doubtful accounts; the market value of, and demand for, our inventory; stock-based compensation forfeiture rates; when technological feasibility is achieved for our products; the potential outcome of uncertain tax positions that have been recognized in our consolidated financial statements or tax returns; and determining the timing and amount of impairments for investments. Actual results and outcomes may differ from management’s estimates and assumptions due to risks and uncertainties, including uncertainty in the current economic environment due to the recent outbreak of a novel strain of the coronavirus (“COVID-19”). In July 2020, we completed an assessment of the useful lives of our server and network equipment and determined we should increase the estimated useful life of server equipment from three years to four years and increase the estimated useful life of network equipment from two years to four years. This change in accounting estimate will be effective beginning fiscal year 2021. |
Foreign Currencies | Foreign Currencies Assets and liabilities recorded in foreign currencies are translated at the exchange rate on the balance sheet date. Revenue and expenses are translated at average rates of exchange prevailing during the year. Translation adjustments resulting from this process are recorded to other comprehensive income. |
Revenue | Revenue Product Revenue and Service and Other Revenue Product revenue includes sales from operating systems; cross-device productivity applications; server applications; business solution applications; desktop and server management tools; software development tools; video games; and hardware such as PCs, tablets, gaming and entertainment consoles, other intelligent devices, and related accessories. Service and other revenue includes sales from cloud-based solutions that provide customers with software, services, platforms, and content such as Office 365, Azure, Dynamics 365, and Xbox Live; solution support; and consulting services. Service and other revenue also includes sales from online advertising and LinkedIn. Revenue Recognition Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services. We enter into contracts that can include various combinations of products and services, which are generally capable of being distinct and accounted for as separate performance obligations. Revenue is recognized net of allowances for returns and any taxes collected from customers, which are subsequently remitted to governmental authorities. Nature of Products and Services Licenses for on-premises software provide the customer with a right to use the software as it exists when made available to the customer. Customers may purchase perpetual licenses or subscribe to licenses, which provide customers with the same functionality and differ mainly in the duration over which the customer benefits from the software. Revenue from distinct on-premises licenses is recognized upfront at the point in time when the software is made available to the customer. In cases where we allocate revenue to software updates, primarily because the updates are provided at no additional charge, revenue is recognized as the updates are provided, which is generally ratably over the estimated life of the related device or license. Certain volume licensing programs, including Enterprise Agreements, include on-premises licenses combined with Software Assurance (“SA”). SA conveys rights to new software and upgrades released over the contract period and provides support, tools, and training to help customers deploy and use products more efficiently. On-premises licenses are considered distinct performance obligations when sold with SA. Revenue allocated to SA is generally recognized ratably over the contract period as customers simultaneously consume and receive benefits, given that SA comprises distinct performance obligations that are satisfied over time. Cloud services, which allow customers to use hosted software over the contract period without taking possession of the software, are provided on either a subscription or consumption basis. Revenue related to cloud services provided on a subscription basis is recognized ratably over the contract period. Revenue related to cloud services provided on a consumption basis, such as the amount of storage used in a period, is recognized based on the customer utilization of such resources. When cloud services require a significant level of integration and interdependency with software and the individual components are not considered distinct, all revenue is recognized over the period in which the cloud services are provided. Revenue from search advertising is recognized when the advertisement appears in the search results or when the action necessary to earn the revenue has been completed. Revenue from consulting services is recognized as services are provided. Our hardware is generally highly dependent on, and interrelated with, the underlying operating system and cannot function without the operating system. In these cases, the hardware and software license are accounted for as a single performance obligation and revenue is recognized at the point in time when ownership is transferred to resellers or directly to end customers through retail stores and online marketplaces. Refer to Note 19 – Segment Information and Geographic Data for further information, including revenue by significant product and service offering. Significant Judgments Our contracts with customers often include promises to transfer multiple products and services to a customer. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. When a cloud-based service includes both on-premises software licenses and cloud services, judgment is required to determine whether the software license is considered distinct and accounted for separately, or not distinct and accounted for together with the cloud service and recognized over time. Certain cloud services, primarily Office 365, depend on a significant level of integration, interdependency, and interrelation between the desktop applications and cloud services, and are accounted for together as one performance obligation. Revenue from Office 365 is recognized ratably over the period in which the cloud services are provided. Judgment is required to determine the SSP for each distinct performance obligation. We use a single amount to estimate SSP for items that are not sold separately, including on-premises licenses sold with SA or software updates provided at no additional charge. We use a range of amounts to estimate SSP when we sell each of the products and services separately and need to determine whether there is a discount to be allocated based on the relative SSP of the various products and services. In instances where SSP is not directly observable, such as when we do not sell the product or service separately, we determine the SSP using information that may include market conditions and other observable inputs. We typically have more than one SSP for individual products and services due to the stratification of those products and services by customers and circumstances. In these instances, we may use information such as the size of the customer and geographic region in determining the SSP. Due to the various benefits from and the nature of our SA program, judgment is required to assess the pattern of delivery, including the exercise pattern of certain benefits across our portfolio of customers. Our products are generally sold with a right of return, we may provide other credits or incentives, and in certain instances we estimate customer usage of our products and services, which are accounted for as variable consideration when determining the amount of revenue to recognize. Returns and credits are estimated at contract inception and updated at the end of each reporting period if additional information becomes available. Changes to our estimated variable consideration were not material for the periods presented. Contract Balances Timing of revenue recognition may differ from the timing of invoicing to customers. We record a receivable when revenue is recognized prior to invoicing, or unearned revenue when revenue is recognized subsequent to invoicing. For multi-year agreements, we generally invoice customers annually at the beginning of each annual coverage period. We record a receivable related to revenue recognized for multi-year on-premises licenses as we have an unconditional right to invoice and receive payment in the future related to those licenses. As of June 30, 2020 and 2019, long-term accounts receivable, net of allowance for doubtful accounts, was $2.7 billion and $2.2 billion, respectively, and is included in other long-term assets in our consolidated balance sheets. The allowance for doubtful accounts reflects our best estimate of probable losses inherent in the accounts receivable balance. We determine the allowance based on known troubled accounts, historical experience, and Activity in the allowance for doubtful accounts was as follows: (In millions) Year Ended June 30, 2020 2019 2018 Balance, beginning of period $ 434 $ 397 $ 361 Charged to costs and other 560 153 134 Write-offs (178 ) (116 ) (98 ) Balance, end of period $ 816 $ 434 $ 397 Allowance for doubtful accounts included in our consolidated balance sheets: (In millions) June 30, 2020 2019 2018 Accounts receivable, net of allowance for doubtful accounts $ 788 $ 411 $ 377 Other long-term assets 28 23 20 Total $ 816 $ 434 $ 397 Unearned revenue comprises mainly unearned revenue related to volume licensing programs, which may include SA and cloud services. Unearned revenue is generally invoiced annually at the beginning of each contract period for multi-year agreements and recognized ratably over the coverage period. Unearned revenue also includes payments for consulting services to be performed in the future; LinkedIn subscriptions; Office 365 subscriptions; Xbox Live subscriptions; Windows 10 post-delivery support; Dynamics business solutions; Skype prepaid credits and subscriptions; and other offerings for which we have been paid in advance and earn the revenue when we transfer control of the product or service. Refer to Note 13 – Unearned Revenue for further information, including unearned revenue by segment and changes in unearned revenue during the period. Payment terms and conditions vary by contract type, although terms generally include a requirement of payment within 30 to 60 days. In instances where the timing of revenue recognition differs from the timing of invoicing, we have determined our contracts generally do not include a significant financing component. The primary purpose of our invoicing terms is to provide customers with simplified and predictable ways of purchasing our products and services, not to receive financing from our customers or to provide customers with financing. Examples include invoicing at the beginning of a subscription term with revenue recognized ratably over the contract period, and multi-year on-premises licenses that are invoiced annually with revenue recognized upfront. We record financing receivables when we offer certain of our customers the option to acquire our software products and services offerings through a financing program in a limited number of countries. As of June 30, 2020 and 2019, our financing receivables, net were $5.2 billion and $4.3 billion, respectively, for short-term and long-term financing receivables, which are included in other current assets and other long-term assets in our consolidated balance sheets. We record an allowance to cover expected losses based on troubled accounts, historical experience, and other currently available evidence. Assets Recognized from Costs to Obtain a Contract with a Customer We recognize an asset for the incremental costs of obtaining a contract with a customer if we expect the benefit of those costs to be longer than one year. We have determined that certain sales incentive programs meet the requirements to be capitalized. Total capitalized costs to obtain a contract were immaterial during the periods presented and are included in other current and long-term assets in our consolidated balance sheets. We apply a practical expedient to expense costs as incurred for costs to obtain a contract with a customer when the amortization period would have been one year or less. These costs include our internal sales force compensation program and certain partner sales incentive programs as we have determined annual compensation is commensurate with annual sales activities. |
Cost of Revenue | Cost of Revenue Cost of revenue includes: manufacturing and distribution costs for products sold and programs licensed; operating costs related to product support service centers and product distribution centers; costs incurred to include software on PCs sold by original equipment manufacturers (“OEM”), to drive traffic to our websites, and to acquire online advertising space; costs incurred to support and maintain online products and services, including datacenter costs and royalties; warranty costs; inventory valuation adjustments; costs associated with the delivery of consulting services; and the amortization of capitalized software development costs. Capitalized software development costs are amortized over the estimated lives of the products. |
Product Warranty | Product Warranty We provide for the estimated costs of fulfilling our obligations under hardware and software warranties at the time the related revenue is recognized. For hardware warranties, we estimate the costs based on historical and projected product failure rates, historical and projected repair costs, and knowledge of specific product failures (if any). The specific hardware warranty terms and conditions vary depending upon the product sold and the country in which we do business, but generally include parts and labor over a period generally ranging from 90 days to three years. For software warranties, we estimate the costs to provide bug fixes, such as security patches, over the estimated life of the software. We regularly reevaluate our estimates to assess the adequacy of the recorded warranty liabilities and adjust the amounts as necessary. |
Research and Development | Research and Development Research and development expenses include payroll, employee benefits, stock-based compensation expense, and other headcount-related expenses associated with product development. Research and development expenses also include third-party development and programming costs, localization costs incurred to translate software for international markets, and the amortization of purchased software code and services content. Such costs related to software development are included in research and development expense until the point that technological feasibility is reached, which for our software products, is generally shortly before the products are released to production. Once technological feasibility is reached, such costs are capitalized and amortized to cost of revenue over the estimated lives of the products. |
Sales and Marketing | Sales and Marketing Sales and marketing expenses include payroll, employee benefits, stock-based compensation expense, and other headcount-related expenses associated with sales and marketing personnel, and the costs of advertising, promotions, trade shows, seminars, and other programs. Advertising costs are expensed as incurred. Advertising expense was $1.6 billion in fiscal years 2020, 2019, and 2018. |
Stock-Based Compensation | Stock-Based Compensation Compensation cost for stock awards, which include restricted stock units (“RSUs”) and performance stock units (“PSUs”), is measured at the fair value on the grant date and recognized as expense, net of estimated forfeitures, over the related service or performance period. The fair value of stock awards is based on the quoted price of our common stock on the grant date less the present value of expected dividends not received during the vesting period. We measure the fair value of PSUs using a Monte Carlo valuation model. Compensation cost for RSUs is recognized using the straight-line method and for PSUs is recognized using the accelerated method. Compensation expense for the employee stock purchase plan (“ESPP”) is measured as the discount the employee is entitled to upon purchase and is recognized in the period of purchase. |
Income Taxes | Income Taxes Income tax expense includes U.S. and international income taxes, and interest and penalties on uncertain tax positions. Certain income and expenses are not reported in tax returns and financial statements in the same year. The tax effect of such temporary differences is reported as deferred income taxes. Deferred tax assets are reported net of a valuation allowance when it is more likely than not that a tax benefit will not be realized. All deferred income taxes are classified as long-term in our consolidated balance sheets. Tax Cuts and Jobs Act On December 22, 2017, the Tax Cuts and Jobs Act In fiscal year 2019, in response to the TCJA and recently issued regulations, we transferred certain intangible properties held by our foreign subsidiaries to the U.S. and Ireland. The transfers of intangible properties resulted in a $2.6 billion net income tax benefit recorded in the fourth quarter of fiscal year 2019, as the value of future tax deductions exceeded the current tax liability from foreign jurisdictions and U.S. global intangible low-taxed income (“GILTI”) tax. |
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 other-than-temporary impairments, are recorded in other comprehensive income . Debt investments are impaired when a decline in fair value is judged to be other-than-temporary. Fair value is calculated based on publicly available market information or other estimates determined by management. We employ a systematic methodology on a quarterly basis that considers available quantitative and qualitative evidence in evaluating potential impairment of our investments. If the cost of an investment exceeds its fair value, we evaluate, among other factors, general market conditions, credit quality of debt instrument issuers, and the duration and extent to which the fair value is less than cost. We also evaluate whether we have plans to sell the security or it is more likely than not that we will be required to sell the security before recovery. In addition, we consider specific adverse conditions related to the financial health of , and business outlook , for the investee, including industry and sector performance, changes in technology, and operational and financing cash flow factors. Once a decline in fair value is determined to be other-than-temporary, an impairment charge is recorded in other income (expense), net and a new cost basis in the investment is established. Equity investments with readily determinable fair values are measured at fair value. Equity investments without readily determinable fair values are measured using the equity method or measured at cost with adjustments for observable changes in price or impairments (referred to as the measurement alternative). We perform a qualitative assessment on a quarterly basis and recognize an impairment if there are sufficient indicators that the fair value of the investment is less than carrying value. Changes in value are recorded in other income (expense), net. |
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 earnings with the corresponding hedged item. Gains and losses representing hedge components excluded from the assessment of effectiveness are recognized in earnings. For derivative instruments that are not designated as hedges, gains and losses from changes in fair values are primarily recognized in other income (expense), net. |
Fair Value Measurements | 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 • Level 2 • Level 3 – inputs are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques, including option pricing models and discounted cash flow models. Our Level 3 assets and liabilities include investments in corporate notes and bonds , municipal securities , and goodwill and intangible assets, when they are recorded at fair value due to an impairment charge. Unobservable inputs used in the models are significant to the fair values of the assets and liabilities. We measure equity investments without readily determinable fair values on a nonrecurring basis. The fair values of these investments are determined based on valuation techniques using the best information available, and may include quoted market prices, market comparables, and discounted cash flow projections. Our other current financial assets and current financial liabilities have fair values that approximate their carrying values. |
Inventories | Inventories Inventories are stated at average cost, subject to the lower of cost or net realizable value. Cost includes materials, labor, and manufacturing overhead related to the purchase and production of inventories. Net realizable value is the estimated selling price less estimated costs of completion, disposal, and transportation. We regularly review inventory quantities on hand, future purchase commitments with our suppliers, and the estimated utility of our inventory. If our review indicates a reduction in utility below carrying value, we reduce our inventory to a new cost basis through a charge to cost of revenue. |
Property and Equipment | Property and Equipment Property and equipment is stated at cost less accumulated depreciation, and depreciated using the straight-line method over the shorter of the estimated useful life of the asset or the lease term. The estimated useful lives of our property and equipment are generally as follows: computer software developed or acquired for internal use, three to seven years; computer equipment, two to three years; buildings and improvements, five to 15 years; leasehold improvements, three to 20 years; and furniture and equipment, one to 10 years. Land is not depreciated. |
Leases | Leases We determine if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, other current liabilities, and operating lease liabilities in our consolidated balance sheets. Finance leases are included in property and equipment, other current liabilities, and other long-term liabilities in our consolidated balance sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we generally use our incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at commencement date. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. We have lease agreements with lease and non-lease components, which are generally accounted for separately. For certain equipment leases, such as vehicles, we account for the lease and non-lease components as a single lease component. Additionally, for certain equipment leases, we apply a portfolio approach to effectively account for the operating lease ROU assets and liabilities. |
Goodwill | Goodwill Goodwill is tested for impairment at the reporting unit level (operating segment or one level below an operating segment) on an annual basis (May 1 for us) and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. |
Intangible Assets | Intangible Assets Our intangible assets are subject to amortization and are amortized using the straight-line method over their estimated period of benefit, ranging from one to 20 years. We evaluate the recoverability of intangible assets periodically by taking into account events or circumstances that may warrant revised estimates of useful lives or that indicate the asset may be impaired. |
Recent Accounting Guidance | Recent Accounting Guidance Recently Adopted Accounting Guidance Financial Instruments – Targeted Improvements to Accounting for Hedging Activities In August 2017, the Financial Accounting Standards Board (“FASB”) issued new guidance related to accounting for hedging activities. This guidance expands strategies that qualify for hedge accounting, changes how many hedging relationships are presented in the financial statements, and simplifies the application of hedge accounting in certain situations. We adopted the standard effective July 1, 2019. As we did not hold derivative instruments requiring an adjustment upon adoption, there was no impact in our consolidated financial statements. Adoption of the standard enhanced the presentation of the effects of our hedging instruments and the hedged items in our consolidated financial statements to increase the understandability of the results of our hedging strategies. Recent Accounting Guidance Not Yet Adopted Financial Instruments – Credit Losses In June 2016, the FASB issued a new standard to replace the incurred loss impairment methodology under current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. We will be required to use a forward-looking expected credit loss model for accounts receivable, loans, and other financial instruments. Credit losses relating to available-for-sale debt securities will also be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. The standard will be adopted upon the effective date for us beginning July 1, 2020. Adoption of the standard will be applied using a modified retrospective approach through a cumulative-effect adjustment to retained earnings as of the effective date to align our credit loss methodology with the new standard. We have evaluated the impact of this standard in our consolidated financial statements, including accounting policies, processes, and systems. We continue to monitor economic implications of the COVID-19 pandemic. Based on current market conditions, adoption of the standard will not have a material impact on our consolidated financial statements. Accounting for Income Taxes In December 2019, the FASB issued a new standard to simplify the accounting for income taxes. The guidance eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities for outside basis differences related to changes in ownership of equity method investments and foreign subsidiaries. The guidance also simplifies aspects of accounting for franchise taxes and enacted changes in tax laws or rates, and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. The standard will be effective for us beginning July 1, 2021, with early adoption permitted. We are currently evaluating the impact of this standard in our consolidated financial statements, including accounting policies, processes, and systems. |
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 incurred at a corporate level that are identifiable and that benefit our segments are allocated to them. These allocated costs include costs of: legal, including settlements and fines; information technology; human resources; finance; excise taxes; field selling; shared facilities services; and customer service and support. Each allocation is measured differently based on the specific facts and circumstances of the costs being allocated. Certain corporate-level activity is not allocated to our segments. 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. |
ACCOUNTING POLICIES (Tables)
ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Allowance for Doubtful Accounts | Activity in the allowance for doubtful accounts was as follows: (In millions) Year Ended June 30, 2020 2019 2018 Balance, beginning of period $ 434 $ 397 $ 361 Charged to costs and other 560 153 134 Write-offs (178 ) (116 ) (98 ) Balance, end of period $ 816 $ 434 $ 397 Allowance for doubtful accounts included in our consolidated balance sheets: (In millions) June 30, 2020 2019 2018 Accounts receivable, net of allowance for doubtful accounts $ 788 $ 411 $ 377 Other long-term assets 28 23 20 Total $ 816 $ 434 $ 397 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings Per Share | The components of basic and diluted EPS were as follows: (In millions, except earnings per share) Year Ended June 30, 2020 2019 2018 Net income available for common shareholders (A) $ 44,281 $ 39,240 $ 16,571 Weighted average outstanding shares of common stock (B) 7,610 7,673 7,700 Dilutive effect of stock-based awards 73 80 94 Common stock and common stock equivalents (C) 7,683 7,753 7,794 Earnings Per Share Basic (A/B) $ 5.82 $ 5.11 $ 2.15 Diluted (A/C) $ 5.76 $ 5.06 $ 2.13 |
OTHER INCOME (EXPENSE), NET (Ta
OTHER INCOME (EXPENSE), NET (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Components of Other Income (Expense), Net | The components of other income (expense), net were as follows: (In millions) Year Ended June 30, 2020 2019 2018 Interest and dividends income $ 2,680 $ 2,762 $ 2,214 Interest expense (2,591 ) (2,686 ) (2,733 ) Net recognized gains on investments 32 648 2,399 Net gains (losses) on derivatives 187 144 (187 ) Net losses on foreign currency remeasurements (191 ) (82 ) (218 ) Other, net (40 ) (57 ) (59 ) Total $ 77 $ 729 $ 1,416 |
Debt Securities | |
Net Recognized Gains (Losses) on Investments | Net recognized gains (losses) on debt investments were as follows: (In millions) Year Ended June 30, 2020 2019 2018 Realized gains from sales of available-for-sale securities $ 50 $ 12 $ 27 Realized losses from sales of available-for-sale securities (37 ) (93 ) (987 ) Other-than-temporary impairments of investments (17 ) (16 ) (6 ) Total $ (4 ) $ (97 ) $ (966 ) |
Equity Securities | |
Net Recognized Gains (Losses) on Investments | Net recognized gains (losses) on equity investments were as follows: (In millions) Year Ended June 30, 2020 2019 2018 Net realized gains on investments sold $ 83 $ 276 $ 3,406 Net unrealized gains on investments still held 69 479 0 Impairments of investments (116 ) (10 ) (41 ) Total $ 36 $ 745 $ 3,365 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Investments Debt And Equity Securities [Abstract] | |
Investment Components | The components of investments were as follows: (In millions) Fair Value Level Cost Basis Unrealized Gains Unrealized Losses Recorded Basis Cash and Cash Equivalents Short-term Investments Equity Investments June 30, 2020 Changes in Fair Value Recorded in Other Comprehensive Income Commercial paper Level 2 $ 4,687 $ 1 $ 0 $ 4,688 $ 1,618 $ 3,070 $ 0 Certificates of deposit Level 2 2,898 0 0 2,898 1,646 1,252 0 U.S. government securities Level 1 92,067 6,495 (1 ) 98,561 3,168 95,393 0 U.S. agency securities Level 2 2,439 2 0 2,441 449 1,992 0 Foreign government bonds Level 2 6,982 6 (3 ) 6,985 1 6,984 0 Mortgage- and asset-backed securities Level 2 4,865 41 (6 ) 4,900 0 4,900 0 Corporate notes and bonds Level 2 8,500 327 (17 ) 8,810 0 8,810 0 Corporate notes and bonds Level 3 58 0 0 58 0 58 0 Municipal securities Level 2 313 57 (4 ) 366 0 366 0 Municipal securities Level 3 91 0 0 91 0 91 0 Total debt investments $ 122,900 $ 6,929 $ (31 ) $ 129,798 $ 6,882 $ 122,916 $ 0 Changes in Fair Value Recorded in Net Income Equity investments Level 1 $ 1,198 $ 784 $ 0 $ 414 Equity investments Other 2,551 0 0 2,551 Total equity investments $ 3,749 $ 784 $ 0 $ 2,965 Cash $ 5,910 $ 5,910 $ 0 $ 0 Derivatives, net (a) 35 0 35 0 Total $ 139,492 $ 13,576 $ 122,951 $ 2,965 (In millions) Fair Value Level Cost Basis Unrealized Gains Unrealized Losses Recorded Basis Cash and Cash Equivalents Short-term Investments Equity Investments June 30, 2019 Changes in Fair Value Recorded in Other Comprehensive Income Commercial paper Level 2 $ 2,211 $ 0 $ 0 $ 2,211 $ 1,773 $ 438 $ 0 Certificates of deposit Level 2 2,018 0 0 2,018 1,430 588 0 U.S. government securities Level 1 104,925 1,854 (104 ) 106,675 769 105,906 0 U.S. agency securities Level 2 988 0 0 988 698 290 0 Foreign government bonds Level 2 6,350 4 (8 ) 6,346 2,506 3,840 0 Mortgage- and asset-backed securities Level 2 3,554 10 (3 ) 3,561 0 3,561 0 Corporate notes and bonds Level 2 7,437 111 (7 ) 7,541 0 7,541 0 Corporate notes and bonds Level 3 15 0 0 15 0 15 0 Municipal securities Level 2 242 48 0 290 0 290 0 Municipal securities Level 3 7 0 0 7 0 7 0 Total debt investments $ 127,747 $ 2,027 $ (122 ) $ 129,652 $ 7,176 $ 122,476 $ 0 Changes in Fair Value Recorded in Net Income Equity investments Level 1 $ 973 $ 409 $ 0 $ 564 Equity investments Other 2,085 0 0 2,085 Total equity investments $ 3,058 $ 409 $ 0 $ 2,649 Cash $ 3,771 $ 3,771 $ 0 $ 0 Derivatives, net (a) (13) 0 (13) 0 Total $ 136,468 $ 11,356 $ 122,463 $ 2,649 (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 (In millions) Fair Value Unrealized Fair Value Unrealized Total June 30, 2020 U.S. government and agency securities $ 2,323 $ (1 ) $ 0 $ 0 $ 2,323 $ (1 ) Foreign government bonds 500 (3 ) 0 0 500 (3 ) Mortgage- and asset-backed securities 1,014 (6 ) 0 0 1,014 (6 ) Corporate notes and bonds 649 (17 ) 0 0 649 (17 ) Municipal securities 66 (4 ) 0 0 66 (4 ) Total $ 4,552 $ (31 ) $ 0 $ 0 $ 4,552 $ (31 ) Less than 12 Months 12 Months or Greater Total Unrealized Losses (In millions) Fair Value Unrealized Losses Fair Value Unrealized Losses Total Fair Value June 30, 2019 U.S. government and agency securities $ 1,491 $ (1 ) $ 39,158 $ (103 ) $ 40,649 $ (104 ) Foreign government bonds 25 0 77 (8 ) 102 (8 ) Mortgage- and asset-backed securities 664 (1 ) 378 (2 ) 1,042 (3 ) Corporate notes and bonds 498 (3 ) 376 (4 ) 874 (7 ) Total $ 2,678 $ (5 ) $ 39,989 $ (117 ) $ 42,667 $ (122 ) |
Debt Investment Maturities | Debt Investment Maturities (In millions) Cost Basis Estimated Fair Value June 30, 2020 Due in one year or less $ 36,169 $ 36,276 Due after one year through five years 51,465 54,700 Due after five years through 10 years 32,299 35,674 Due after 10 years 2,967 3,148 Total $ 122,900 $ 129,798 |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Notional Amounts of Outstanding Derivative Instruments Measured in U.S. Dollar Equivalents | The following table presents the notional amounts of our outstanding derivative instruments measured in U.S. dollar equivalents: (In millions) June 30, 2020 June 30, 2019 Designated as Hedging Instruments Foreign exchange contracts purchased $ 635 $ 0 Foreign exchange contracts sold 6,754 6,034 Interest rate contracts purchased 1,295 0 Not Designated as Hedging Instruments Foreign exchange contracts purchased 11,896 14,889 Foreign exchange contracts sold 15,595 15,614 Other contracts purchased 1,844 2,007 Other contracts sold 757 456 |
Fair Values of Derivative Instruments | The following table presents our derivative instruments: Derivative Derivative Derivative Derivative (In millions) Assets Liabilities Assets Liabilities June 30, 2020 June 30, 2019 Designated as Hedging Instruments Foreign exchange contracts $ 44 $ (54 ) $ 0 $ (93 ) Interest rate contracts 93 0 0 0 Not Designated as Hedging Instruments Foreign exchange contracts 245 (334 ) 204 (172 ) Other contracts 18 (11 ) 46 (7 ) Gross amounts of derivatives 400 (399 ) 250 (272 ) Gross amounts of derivatives offset in the balance sheet (154 ) 158 (113 ) 114 Cash collateral received 0 (154 ) 0 (78 ) Net amounts of derivatives $ 246 $ (395 ) $ 137 $ (236 ) Reported as Short-term investments $ 35 $ 0 $ (13 ) $ 0 Other current assets 199 0 146 0 Other long-term assets 12 0 4 0 Other current liabilities 0 (334 ) 0 (221 ) Other long-term liabilities 0 (61 ) 0 (15 ) Total $ 246 $ (395 ) $ 137 $ (236 ) The following table presents the fair value of our derivatives instruments on a gross basis: (In millions) Level 1 Level 2 Level 3 Total June 30, 2020 Derivative assets $ 1 $ 398 $ 1 $ 400 Derivative liabilities 0 (399 ) 0 (399 ) June 30, 2019 Derivative assets 0 247 3 250 Derivative liabilities 0 (272 ) 0 (272 ) |
Gains (Losses) on Derivative Instruments | Gains (losses) on derivative instruments recognized in our consolidated income statements were as follows: (In millions) Year Ended June 30, 2020 2019 2018 Revenue Other (Expense), Revenue Other (Expense), Revenue Other Income (Expense), Net Designated as Fair Value Hedging Instruments Foreign exchange contracts Derivatives $ 0 $ 1 $ 0 $ (130 ) $ 0 $ (78 ) Hedged items 0 3 0 130 0 78 Excluded from effectiveness assessment 0 139 0 168 0 103 Interest rate contracts Derivatives 0 93 0 0 0 0 Hedged items 0 (93 ) 0 0 0 0 Equity contracts Derivatives 0 0 0 0 0 (324 ) Hedged items 0 0 0 0 0 324 Excluded from effectiveness assessment 0 0 0 0 0 80 Designated as Cash Flow Hedging Instruments Foreign exchange contracts Amount reclassified from accumulated other comprehensive income 0 0 341 0 185 0 Excluded from effectiveness assessment 0 0 (64 ) 0 (255 ) 0 Not Designated as Hedging Instruments Foreign exchange contracts 0 (123 ) 0 (97 ) 0 (33 ) Other contracts 0 50 0 38 0 (104 ) |
Cash Flow Hedges | Other Comprehensive Income | |
Gains (Losses) on Derivative Instruments | Gains (losses), net of tax, on derivative instruments recognized in our consolidated comprehensive income statements were as follows: (In millions) Year Ended June 30, 2020 2019 2018 Designated as Cash Flow Hedging Instruments Foreign exchange contracts Included in effectiveness assessment $ (38 ) $ 159 $ 219 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | The components of inventories were as follows: (In millions) June 30, 2020 2019 Raw materials $ 700 $ 399 Work in process 83 53 Finished goods 1,112 1,611 Total $ 1,895 $ 2,063 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Property Plant And Equipment [Abstract] | |
Components of Property and Equipment | The components of property and equipment were as follows: (In millions) June 30, 2020 2019 Land $ 1,823 $ 1,540 Buildings and improvements 33,995 26,288 Leasehold improvements 5,487 5,316 Computer equipment and software 41,261 33,823 Furniture and equipment 4,782 4,840 Total, at cost 87,348 71,807 Accumulated depreciation (43,197 ) (35,330 ) Total, net $ 44,151 $ 36,477 |
BUSINESS COMBINATIONS (Tables)
BUSINESS COMBINATIONS (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Acquired Intangible Assets | The components of intangible assets acquired during the periods presented were as follows: (In millions) Amount Weighted Average Life Amount Weighted Average Life Year Ended June 30, 2020 2019 Technology-based $ 531 6 years $ 814 5 years Customer-related 303 5 years 710 8 years Marketing-related 2 2 years 177 10 years Contract-based 0 0 years 7 3 years Total $ 836 5 years $ 1,708 7 years |
GitHub, Inc. | |
Major Classes of Assets and Liabilities Allocated Purchase Price | The major classes of assets and liabilities to which we allocated the purchase price were as follows: (In millions) Cash, cash equivalents, and short-term investments $ 234 Goodwill 5,497 Intangible assets 1,267 Other assets 143 Other liabilities (217 ) Total $ 6,924 |
Acquired Intangible Assets | Following are the details of the purchase price allocated to the intangible assets acquired: (In millions) Amount Weighted Average Life Customer-related $ 648 8 years Technology-based 447 5 years Marketing-related 170 10 years Contract-based 2 2 years Total $ 1,267 7 years |
GOODWILL (Tables)
GOODWILL (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Carrying Amount of Goodwill | Changes in the carrying amount of goodwill were as follows: (In millions) June 30, 2018 Acquisitions Other June 30, 2019 Acquisitions Other June 30, Productivity and Business Processes $ 23,823 $ 514 $ (60 ) $ 24,277 $ 7 $ (94 ) $ 24,190 Intelligent Cloud 5,703 5,605 (a) 43 (a) 11,351 1,351 (5 ) 12,697 More Personal Computing 6,157 289 (48 ) 6,398 96 (30 ) 6,464 Total $ 35,683 $ 6,408 $ (65 ) $ 42,026 $ 1,454 $ (129 ) $ 43,351 (a) Includes goodwill of $5.5 billion related to GitHub. See Note 8 – Business Combinations for further information |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
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 Accumulated Net Carrying Gross Accumulated Net Carrying June 30, 2020 2019 Technology-based $ 8,160 $ (6,381 ) $ 1,779 $ 7,691 $ (5,771 ) $ 1,920 Customer-related 4,967 (2,320 ) 2,647 4,709 (1,785 ) 2,924 Marketing-related 4,158 (1,588 ) 2,570 4,165 (1,327 ) 2,838 Contract-based 474 (432 ) 42 574 (506 ) 68 Total $ 17,759 $ (10,721 ) $ 7,038 $ 17,139 (a) $ (9,389 ) $ 7,750 (a) Includes intangible assets of $1.3 billion related to GitHub. See Note 8 – Business Combinations for further information |
Acquired Intangible Assets | The components of intangible assets acquired during the periods presented were as follows: (In millions) Amount Weighted Average Life Amount Weighted Average Life Year Ended June 30, 2020 2019 Technology-based $ 531 6 years $ 814 5 years Customer-related 303 5 years 710 8 years Marketing-related 2 2 years 177 10 years Contract-based 0 0 years 7 3 years Total $ 836 5 years $ 1,708 7 years |
Estimated Future Amortization Expense Related to Intangible Assets | The following table outlines the estimated future amortization expense related to intangible assets held as of June 30, 2020: (In millions) Year Ending June 30, 2021 $ 1,483 2022 1,399 2023 1,219 2024 851 2025 447 Thereafter 1,639 Total $ 7,038 |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt | The components of debt were as follows: (In millions, issuance by calendar year) Maturities (calendar year) Stated Interest Rate Effective Interest Rate June 30, 2020 June 30, 2019 2009 issuance of $3.8 billion (a) 2039 5.20% 5.24% $ 559 $ 750 2010 issuance of $4.8 billion (a) 2020 – 2040 3.00% – 4.50% 3.14% – 4.57% 1,571 2,000 2011 issuance of $2.3 billion (a) 2021 – 2041 4.00% – 5.30% 4.08% – 5.36% 1,270 1,500 2012 issuance of $2.3 billion 2022 – 2042 2.13% – 3.50% 2.24% – 3.57% 1,650 1,650 2013 issuance of $5.2 billion (a) 2023 – 2043 2.38% – 4.88% 2.47% – 4.92% 2,919 3,500 2013 issuance of €4.1 billion 2021 – 2033 2.13% – 3.13% 2.23% – 3.22% 4,549 4,613 2014 issuance 0 18 2015 issuance of $23.8 billion (a) 2020 – 2055 2.00% – 4.75% 2.09% – 4.78% 15,549 22,000 2016 issuance of $19.8 billion (a) 2021 – 2056 1.55% – 3.95% 1.64% – 4.03% 16,955 19,750 2017 issuance of $17.0 billion (a) 2022 – 2057 2.40% – 4.50% 2.52% – 4.53% 12,385 17,000 2020 issuance of $10.0 billion (a) 2050 – 2060 2.53% – 2.68% 2.53% – 2.68% 10,000 0 Total face value 67,407 72,781 Unamortized discount and issuance costs (554 ) (603 ) Hedge fair value adjustments ( b ) 93 0 Premium on debt exchange (a) (3,619 ) 0 Total debt 63,327 72,178 Current portion of long-term debt (3,749 ) (5,516 ) Long-term debt $ 59,578 $ 66,662 (a) In June 2020, we exchanged a portion of our existing debt at premium for cash and new debt with longer maturities. The premium will be amortized over the term of the new debt. (b) Refer to Note 5 – Derivatives for further information on the interest rate swaps related to fixed-rate debt. |
Maturities of Long-term Debt Including Current Portion | The following table outlines maturities of our long-term debt, including the current portion, as of June 30, 2020: (In millions) Year Ending June 30, 2021 $ 3,750 2022 7,966 2023 2,750 2024 5,250 2025 2,250 Thereafter 45,441 Total $ 67,407 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Provision for Income Taxes | The components of the provision for income taxes were as follows: (In millions) Year Ended June 30, 2020 2019 2018 Current Taxes U.S. federal $ 3,537 $ 4,718 $ 19,764 U.S. state and local 763 662 934 Foreign 4,444 5,531 4,348 Current taxes $ 8,744 $ 10,911 $ 25,046 Deferred Taxes U.S. federal $ 58 $ (5,647 ) $ (4,292 ) U.S. state and local (6 ) (1,010 ) (458 ) Foreign (41 ) 194 (393 ) Deferred taxes $ 11 $ (6,463 ) $ (5,143 ) Provision for income taxes $ 8,755 $ 4,448 $ 19,903 |
Income (Loss) Before Income Taxes | U.S. and foreign components of income before income taxes were as follows: (In millions) Year Ended June 30, 2020 2019 2018 U.S. $ 24,116 $ 15,799 $ 11,527 Foreign 28,920 27,889 24,947 Income before income taxes $ 53,036 $ 43,688 $ 36,474 |
Difference Between Income Taxes Computed at Federal Statutory Rate and Provision for Income Taxes | The items accounting for the difference between income taxes computed at the U.S. federal statutory rate and our effective rate were as follows: Year Ended June 30, 2020 2019 2018 Federal statutory rate 21.0% 21.0% 28.1% Effect of: Foreign earnings taxed at lower rates (3.7)% (4.1)% (7.8)% Impact of the enactment of the TCJA 0% 0.4% 37.7% Impact of intangible property transfers 0% (5.9)% 0% Foreign-derived intangible income deduction (1.1)% (1.4)% 0% State income taxes, net of federal benefit 1.3% 0.7% 1.3% Research and development credit (1.1)% (1.1)% (1.3)% Excess tax benefits relating to stock-based compensation (2.2)% (2.2)% (2.5)% Interest, net 1.0% 1.0% 1.2% Other reconciling items, net 1.3% 1.8% (2.1)% Effective rate 16.5% 10.2% 54.6% |
Deferred Income Tax Assets and Liabilities | The components of the deferred income tax assets and liabilities were as follows: (In millions) June 30, 2020 2019 Deferred Income Tax Assets Stock-based compensation expense $ 461 $ 406 Accruals, reserves, and other expenses 2,721 2,287 Loss and credit carryforwards 865 3,518 Depreciation and amortization 6,361 7,046 Leasing liabilities 3,025 1,594 Unearned revenue 1,553 475 Other 354 367 Deferred income tax assets 15,340 15,693 Less valuation allowance (755 ) (3,214 ) Deferred income tax assets, net of valuation allowance $ 14,585 $ 12,479 Deferred Income Tax Liabilities Book/tax basis differences in investments and debt $ (2,642 ) $ (738 ) Unearned revenue 0 (30 ) Leasing assets (2,817 ) (1,510 ) Deferred GILTI tax liabilities (2,581 ) (2,607 ) Other (344 ) (291 ) Deferred income tax liabilities $ (8,384 ) $ (5,176 ) Net deferred income tax assets $ 6,201 $ 7,303 Reported As Other long-term assets $ 6,405 $ 7,536 Long-term deferred income tax liabilities (204 ) (233 ) Net deferred income tax assets $ 6,201 $ 7,303 |
Changes in Gross Unrecognized Tax Benefits Related to Uncertain Tax Positions | The aggregate changes in the gross unrecognized tax benefits related to uncertain tax positions were as follows: (In millions) Year Ended June 30, 2020 2019 2018 Beginning unrecognized tax benefits $ 13,146 $ 11,961 $ 11,737 Decreases related to settlements (31 ) (316 ) (193 ) Increases for tax positions related to the current year 647 2,106 1,445 Increases for tax positions related to prior years 366 508 151 Decreases for tax positions related to prior years (331 ) (1,113 ) (1,176 ) Decreases due to lapsed statutes of limitations (5 ) 0 (3 ) Ending unrecognized tax benefits $ 13,792 $ 13,146 $ 11,961 |
UNEARNED REVENUE (Tables)
UNEARNED REVENUE (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Unearned Revenue by Segment | Unearned revenue by segment was as follows: (In millions) June 30, 2020 2019 Productivity and Business Processes $ 18,643 $ 16,831 Intelligent Cloud 16,620 16,988 More Personal Computing 3,917 3,387 Total $ 39,180 $ 37,206 |
Changes in Unearned Revenue | Changes in unearned revenue were as follows: (In millions) Year Ended June 30, 2020 Balance, beginning of period $ 37,206 Deferral of revenue 78,922 Recognition of unearned revenue (76,948 ) Balance, end of period $ 39,180 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Components of Lease Expense | The components of lease expense were as follows: (In millions) Year Ended June 30, 2020 2019 2018 Operating lease cost $ 2,043 $ 1,707 $ 1,585 Finance lease cost: Amortization of right-of-use assets $ 611 $ 370 $ 243 Interest on lease liabilities 336 247 175 Total finance lease cost $ 947 $ 617 $ 418 |
Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases was as follows: (In millions) Year Ended June 30, 2020 2019 2018 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,829 $ 1,670 $ 1,522 Operating cash flows from finance leases 336 247 175 Financing cash flows from finance leases 409 221 144 Right-of-use assets obtained in exchange for lease obligations: Operating leases 3,677 2,303 1,571 Finance leases 3,467 2,532 1,933 |
Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to leases was as follows: (In millions, except lease term and discount rate) June 30, 2020 2019 Operating Leases Operating lease right-of-use assets $ 8,753 $ 7,379 Other current liabilities $ 1,616 $ 1,515 Operating lease liabilities 7,671 6,188 Total operating lease liabilities $ 9,287 $ 7,703 Finance Leases Property and equipment, at cost $ 10,371 $ 7,041 Accumulated depreciation (1,385 ) (774 ) Property and equipment, net $ 8,986 $ 6,267 Other current liabilities $ 540 $ 317 Other long-term liabilities 8,956 6,257 Total finance lease liabilities $ 9,496 $ 6,574 Weighted Average Remaining Lease Term Operating leases 8 years 7 years Finance leases 13 years 13 years Weighted Average Discount Rate Operating leases 2.7% 3.0% Finance leases 3.9% 4.6% |
Maturities of Lease Liabilities | Maturities of lease liabilities were as follows: (In millions) Year Ending June 30, Operating Leases Finance Leases 2021 $ 1,807 $ 880 2022 1,652 894 2023 1,474 903 2024 1,262 916 2025 1,000 1,236 Thereafter 3,122 7,194 Total lease payments 10,317 12,023 Less imputed interest (1,030 ) (2,527 ) Total $ 9,287 $ 9,496 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Shares of Common Stock Outstanding | Shares of common stock outstanding were as follows: (In millions) Year Ended June 30, 2020 2019 2018 Balance, beginning of year 7,643 7,677 7,708 Issued 54 116 68 Repurchased (126 ) (150 ) (99 ) Balance, end of year 7,571 7,643 7,677 |
Share Repurchases | We repurchased the following shares of common stock under the share repurchase programs: (In millions) Shares Amount Shares Amount Shares Amount Year Ended June 30, 2020 2019 2018 First Quarter 29 $ 4,000 24 $ 2,600 22 $ 1,600 Second Quarter 32 4,600 57 6,100 22 1,800 Third Quarter 37 6,000 36 3,899 34 3,100 Fourth Quarter 28 5,088 33 4,200 21 2,100 Total 126 $ 19,688 150 $ 16,799 99 $ 8,600 |
Dividends Declared | Our Board of Directors declared the following dividends: Declaration Date Record Date Payment Date Dividend Per Share Amount Fiscal Year 2020 (In millions) September 18, 2019 November 21, 2019 December 12, 2019 $ 0.51 $ 3,886 December 4, 2019 February 20, 2020 March 12, 2020 0.51 3,876 March 9, 2020 May 21, 2020 June 11, 2020 0.51 3,865 June 17, 2020 August 20, 2020 September 10, 2020 0.51 3,861 Total $ 2.04 $ 15,488 Fiscal Year 2019 September 18, 2018 November 15, 2018 December 13, 2018 $ 0.46 $ 3,544 November 28, 2018 February 21, 2019 March 14, 2019 0.46 3,526 March 11, 2019 May 16, 2019 June 13, 2019 0.46 3,521 June 12, 2019 August 15, 2019 September 12, 2019 0.46 3,510 Total $ 1.84 $ 14,101 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Summary of Changes in Accumulated Other Comprehensive Income (Loss) by Component | The following table summarizes the changes in accumulated other comprehensive income (loss) by component (In millions) Year Ended June 30, 2020 2019 2018 Derivatives Balance, beginning of period $ 0 $ 173 $ 134 Unrealized gains (losses), net of tax of $(10) (38 ) 160 218 Reclassification adjustments for gains included in revenue 0 (341 ) (185 ) Tax expense included in provision for income taxes 0 8 6 Amounts reclassified from accumulated other comprehensive income (loss) 0 (333 ) (179 ) Net change related to derivatives, net of tax of $(10) (38 ) (173 ) 39 Balance, end of period $ (38 ) $ 0 $ 173 Investments Balance, beginning of period $ 1,488 $ (850 ) $ 1,825 Unrealized gains (losses), net of tax of $1,057 3,987 2,331 (1,146 ) Reclassification adjustments for (gains) losses included in other income (expense), net 4 93 (2,309 ) Tax expense (benefit) included in provision for income taxes (1 ) (19 ) 738 Amounts reclassified from accumulated other comprehensive income (loss) 3 74 (1,571 ) Net change related to investments, net of tax of $1,058 3,990 2,405 (2,717 ) Cumulative effect of accounting changes 0 (67 ) 42 Balance, end of period $ 5,478 $ 1,488 $ (850 ) Translation Adjustments and Other Balance, beginning of period $ (1,828 ) $ (1,510 ) $ (1,332 ) Translation adjustments and other, net of tax effects of $1 (426 ) (318 ) (178 ) Balance, end of period $ (2,254 ) $ (1,828 ) $ (1,510 ) Accumulated other comprehensive income (loss), end of period $ 3,186 $ (340 ) $ (2,187 ) |
EMPLOYEE STOCK AND SAVINGS PL_2
EMPLOYEE STOCK AND SAVINGS PLANS (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation Expense and Related Income Tax Benefits | Stock-based compensation expense and related income tax benefits were as follows: (In millions) Year Ended June 30, 2020 2019 2018 Stock-based compensation expense $ 5,289 $ 4,652 $ 3,940 Income tax benefits related to stock-based compensation 938 816 823 |
Assumptions Used in Estimating the Fair Value of Stock Award Grants | The fair value of stock awards was estimated on the date of grant using the following assumptions: Year ended June 30, 2020 2019 2018 Dividends per share (quarterly amounts) $ 0.46 – 0.51 $ 0.42 – 0.46 $ 0.39 – 0.42 Interest rates 0.1% – 2.2% 1.8% – 3.1% 1.7% – 2.9% |
Stock Plan Activity | During fiscal year 2020, the following activity occurred under our stock plans: Shares Weighted Average Grant-Date Fair Value (In millions) Stock Awards Nonvested balance, beginning of year 147 $ 78.49 Granted (a) 53 140.49 Vested (65 ) 75.35 Forfeited (9 ) 90.30 Nonvested balance, end of year 126 $ 105.23 (a) Includes 2 million, 2 million, and 3 million of PSUs granted at target and performance adjustments above target levels for fiscal years 2020, 2019, and 2018, respectively. |
Employee Purchased Shares | Employees purchased the following shares during the periods presented: (Shares in millions) Year Ended June 30, 2020 2019 2018 Shares purchased 9 11 13 Average price per share $ 142.22 $ 104.85 $ 76.40 |
SEGMENT INFORMATION AND GEOGR_2
SEGMENT INFORMATION AND GEOGRAPHIC DATA (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment Revenue | Segment revenue and operating income were as follows during the periods presented: (In millions) Year Ended June 30, 2020 2019 2018 Revenue Productivity and Business Processes $ 46,398 $ 41,160 $ 35,865 Intelligent Cloud 48,366 38,985 32,219 More Personal Computing 48,251 45,698 42,276 Total $ 143,015 $ 125,843 $ 110,360 Operating Income Productivity and Business Processes $ 18,724 $ 16,219 $ 12,924 Intelligent Cloud 18,324 13,920 11,524 More Personal Computing 15,911 12,820 10,610 Total $ 52,959 $ 42,959 $ 35,058 |
Segment Operating Income (Loss) | Segment revenue and operating income were as follows during the periods presented: (In millions) Year Ended June 30, 2020 2019 2018 Revenue Productivity and Business Processes $ 46,398 $ 41,160 $ 35,865 Intelligent Cloud 48,366 38,985 32,219 More Personal Computing 48,251 45,698 42,276 Total $ 143,015 $ 125,843 $ 110,360 Operating Income Productivity and Business Processes $ 18,724 $ 16,219 $ 12,924 Intelligent Cloud 18,324 13,920 11,524 More Personal Computing 15,911 12,820 10,610 Total $ 52,959 $ 42,959 $ 35,058 |
Revenue Classified by Major Geographic Areas | Revenue, classified by the major geographic areas in which our customers were located, was as follows: (In millions) Year Ended June 30, 2020 2019 2018 United States (a) $ 73,160 $ 64,199 $ 55,926 Other countries 69,855 61,644 54,434 Total $ 143,015 $ 125,843 $ 110,360 (a) Includes billings to OEMs and certain multinational organizations because of the nature of these businesses and the impracticability of determining the geographic source of the revenue. |
Revenue Classified by Significant Product and Service Offerings | Revenue from external customers, classified by significant product and service offerings, was as follows: (In millions) Year Ended June 30, 2020 2019 2018 Server products and cloud services $ 41,379 $ 32,622 $ 26,129 Office products and cloud services 35,316 31,769 28,316 Windows 22,294 20,395 19,518 Gaming 11,575 11,386 10,353 8,077 6,754 5,259 Search advertising 7,740 7,628 7,012 Devices 6,457 6,095 5,134 Enterprise Services 6,409 6,124 5,846 Other 3,768 3,070 2,793 Total $ 143,015 $ 125,843 $ 110,360 Our commercial cloud revenue, which includes Office 365 Commercial, Azure, the commercial portion of LinkedIn, Dynamics 365, and other commercial cloud properties, was $51.7 billion, $38.1 billion and $26.6 billion in fiscal years 2020, 2019, and 2018, respectively. These amounts are primarily included in Office products and cloud services, Server products and cloud services, and LinkedIn in the table above. |
Long-Lived Assets, Excluding Financial Instruments and Tax Assets, Classified by Location of Controlling Statutory Company | Long-lived assets, excluding financial instruments and tax assets, classified by the location of the controlling statutory company and with countries over 10% of the total shown separately, were as follows: (In millions) June 30, 2020 2019 2018 United States $ 60,789 $ 55,252 $ 44,501 Ireland 12,734 12,958 12,843 Other countries 29,770 25,422 22,538 Total $ 103,293 $ 93,632 $ 79,882 |
QUARTERLY INFORMATION (UNAUDI_2
QUARTERLY INFORMATION (UNAUDITED) (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Information (Unaudited) | (In millions, except per share amounts) Quarter Ended September 30 December 31 March 31 June 30 Total Fiscal Year 2020 Revenue $ 33,055 $ 36,906 $ 35,021 $ 38,033 $ 143,015 Gross margin 22,649 24,548 24,046 25,694 96,937 Operating income 12,686 13,891 12,975 13,407 52,959 Net income 10,678 11,649 10,752 11,202 44,281 Basic earnings per share 1.40 1.53 1.41 1.48 5.82 Diluted earnings per share 1.38 1.51 1.40 1.46 5.76 Fiscal Year 2019 Revenue 29,084 32,471 30,571 33,717 125,843 Gross margin 19,179 20,048 20,401 23,305 82,933 Operating income 9,955 10,258 10,341 12,405 42,959 Net income (a) 8,824 8,420 8,809 13,187 39,240 Basic earnings per share 1.15 1.09 1.15 1.72 5.11 Diluted earnings per share (b) 1.14 1.08 1.14 1.71 5.06 (a) Reflects the $157 million net charge related to the enactment of the TCJA for the second quarter and the $2.6 billion net income tax benefit related to the intangible property transfers for the fourth quarter, which together increased net income by $2.4 billion for fiscal year 2019. See Note 12 – Income Taxes for further information. (b) Reflects the net charge related to the enactment of the TCJA and the net income tax benefit related to the intangible property transfers, which decreased (increased) diluted EPS $0.02 for the second quarter, $(0.34) for the fourth quarter, and $(0.31) for fiscal year 2019 |
Accounting Policies - Additiona
Accounting Policies - Additional Information (Detail) - USD ($) $ in Billions | Jul. 01, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 |
Significant Accounting Policies [Line Items] | ||||
Long-term accounts receivable, net of allowance for doubtful accounts | $ 2.7 | $ 2.2 | ||
Description of payment terms in contract with customer | Payment terms and conditions vary by contract type, although terms generally include a requirement of payment within 30 to 60 days. | |||
Financing receivables, net | $ 5.2 | 4.3 | ||
Advertising expense | $ 1.6 | $ 1.6 | $ 1.6 | |
Lower Limit | ||||
Significant Accounting Policies [Line Items] | ||||
Estimated useful lives of intangible assets | 1 year | |||
Upper Limit | ||||
Significant Accounting Policies [Line Items] | ||||
Estimated useful lives of intangible assets | 20 years | |||
Server Equipment | ||||
Significant Accounting Policies [Line Items] | ||||
Estimated useful lives | 3 years | |||
Server Equipment | Subsequent Event | ||||
Significant Accounting Policies [Line Items] | ||||
Estimated useful lives | 4 years | |||
Network Equipment | ||||
Significant Accounting Policies [Line Items] | ||||
Estimated useful lives | 2 years | |||
Network Equipment | Subsequent Event | ||||
Significant Accounting Policies [Line Items] | ||||
Estimated useful lives | 4 years | |||
Software | Lower Limit | ||||
Significant Accounting Policies [Line Items] | ||||
Estimated useful lives | 3 years | |||
Software | Upper Limit | ||||
Significant Accounting Policies [Line Items] | ||||
Estimated useful lives | 7 years | |||
Computer Equipment | Lower Limit | ||||
Significant Accounting Policies [Line Items] | ||||
Estimated useful lives | 2 years | |||
Computer Equipment | Upper Limit | ||||
Significant Accounting Policies [Line Items] | ||||
Estimated useful lives | 3 years | |||
Buildings and Improvements | Lower Limit | ||||
Significant Accounting Policies [Line Items] | ||||
Estimated useful lives | 5 years | |||
Buildings and Improvements | Upper Limit | ||||
Significant Accounting Policies [Line Items] | ||||
Estimated useful lives | 15 years | |||
Leasehold Improvements | Lower Limit | ||||
Significant Accounting Policies [Line Items] | ||||
Estimated useful lives | 3 years | |||
Leasehold Improvements | Upper Limit | ||||
Significant Accounting Policies [Line Items] | ||||
Estimated useful lives | 20 years | |||
Furniture and Fixtures | Lower Limit | ||||
Significant Accounting Policies [Line Items] | ||||
Estimated useful lives | 1 year | |||
Furniture and Fixtures | Upper Limit | ||||
Significant Accounting Policies [Line Items] | ||||
Estimated useful lives | 10 years |
Allowance for Doubtful Accounts
Allowance for Doubtful Accounts (Detail) - Allowance for doubtful accounts - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance, beginning of period | $ 434 | $ 397 | $ 361 |
Charged to costs and other | 560 | 153 | 134 |
Write-offs | (178) | (116) | (98) |
Balance, end of period | 816 | 434 | 397 |
Accounts receivable, net of allowance for doubtful accounts | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance, beginning of period | 411 | 377 | |
Balance, end of period | 788 | 411 | 377 |
Other Long-term Assets | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance, beginning of period | 23 | 20 | |
Balance, end of period | $ 28 | $ 23 | $ 20 |
Basic and Diluted Earnings Per
Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||
Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | ||||||
Earnings Per Share Basic And Diluted [Abstract] | ||||||||||||||||
Net income available for common shareholders (A) | $ 11,202 | $ 10,752 | $ 11,649 | $ 10,678 | $ 13,187 | [1] | $ 8,809 | [1] | $ 8,420 | [1] | $ 8,824 | [1] | $ 44,281 | $ 39,240 | [1] | $ 16,571 |
Weighted average outstanding shares of common stock (B) | 7,610 | 7,673 | 7,700 | |||||||||||||
Dilutive effect of stock-based awards | 73 | 80 | 94 | |||||||||||||
Common stock and common stock equivalents (C) | 7,683 | 7,753 | 7,794 | |||||||||||||
Earnings Per Share | ||||||||||||||||
Basic (A/B) | $ 1.48 | $ 1.41 | $ 1.53 | $ 1.40 | $ 1.72 | $ 1.15 | $ 1.09 | $ 1.15 | $ 5.82 | $ 5.11 | $ 2.15 | |||||
Diluted (A/C) | $ 1.46 | $ 1.40 | $ 1.51 | $ 1.38 | $ 1.71 | [2] | $ 1.14 | [2] | $ 1.08 | [2] | $ 1.14 | [2] | $ 5.76 | $ 5.06 | [2] | $ 2.13 |
[1] | Reflects the $157 million net charge related to the enactment of the TCJA for the second quarter and the $2.6 billion net income tax benefit related to the intangible property transfers for the fourth quarter, which together increased net income by $2.4 billion for fiscal year 2019. See Note 12 – Income Taxes for further information. | |||||||||||||||
[2] | Reflects the net charge related to the enactment of the TCJA and the net income tax benefit related to the intangible property transfers, which decreased (increased) diluted EPS $0.02 for the second quarter, $(0.34) for the fourth quarter, and $(0.31) for fiscal year 2019 |
Components of Other Income (Exp
Components of Other Income (Expense), Net (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Other Income And Expenses [Abstract] | |||
Interest and dividends income | $ 2,680 | $ 2,762 | $ 2,214 |
Interest expense | (2,591) | (2,686) | (2,733) |
Net recognized gains on investments | 32 | 648 | 2,399 |
Net gains (losses) on derivatives | 187 | 144 | (187) |
Net losses on foreign currency remeasurements | (191) | (82) | (218) |
Other, net | (40) | (57) | (59) |
Total | $ 77 | $ 729 | $ 1,416 |
Net Recognized Gains (Losses) o
Net Recognized Gains (Losses) on Debt Investments (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
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 | $ 50 | $ 12 | $ 27 |
Realized losses from sales of available-for-sale securities | (37) | (93) | (987) |
Total | 32 | 648 | 2,399 |
Debt Securities | |||
Schedule Of Gain Loss On Investments Including Marketable Securities And Investments Held At Cost Income Statement Reported Amounts Summary [Line Items] | |||
Other-than-temporary impairments of investments | (17) | (16) | (6) |
Total | $ (4) | $ (97) | $ (966) |
Net Recognized Gains (Losses)_2
Net Recognized Gains (Losses) on Equity Investments (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
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 | $ 83 | $ 276 | $ 3,406 |
Net unrealized gains on investments still held | 69 | 479 | 0 |
Total | 32 | 648 | 2,399 |
Equity Securities | |||
Schedule Of Gain Loss On Investments Including Marketable Securities And Investments Held At Cost Income Statement Reported Amounts Summary [Line Items] | |||
Other-than-temporary impairments of investments | (116) | (10) | (41) |
Total | $ 36 | $ 745 | $ 3,365 |
Investment Components (Detail)
Investment Components (Detail) - USD ($) $ in Millions | Jun. 30, 2020 | Jun. 30, 2019 | |
Cash, Cash Equivalents and Investments [Line Items] | |||
Debt investments, Cost Basis | $ 122,900 | ||
Debt investments, Recorded Basis | 129,798 | ||
Derivative, net | 246 | $ 137 | |
Cash and cash equivalents | 13,576 | 11,356 | |
Short-term Investments | 122,951 | 122,463 | |
Equity Investments | 2,965 | 2,649 | |
Cash, cash equivalents, and investments | 139,492 | 136,468 | |
Equity investments | |||
Cash, Cash Equivalents and Investments [Line Items] | |||
Equity investments, Recorded Basis | 3,749 | 3,058 | |
Cash and cash equivalents | 784 | 409 | |
Short-term Investments | 0 | 0 | |
Equity Investments | 2,965 | 2,649 | |
Equity investments | Other | |||
Cash, Cash Equivalents and Investments [Line Items] | |||
Equity investments, Recorded Basis | 2,551 | 2,085 | |
Cash and cash equivalents | 0 | 0 | |
Short-term Investments | 0 | 0 | |
Equity Investments | 2,551 | 2,085 | |
Equity investments | Level 1 | |||
Cash, Cash Equivalents and Investments [Line Items] | |||
Equity investments, Recorded Basis | 1,198 | 973 | |
Cash and cash equivalents | 784 | 409 | |
Short-term Investments | 0 | 0 | |
Equity Investments | 414 | 564 | |
Cash | |||
Cash, Cash Equivalents and Investments [Line Items] | |||
Cash | 5,910 | 3,771 | |
Cash and cash equivalents | 5,910 | 3,771 | |
Short-term Investments | 0 | 0 | |
Equity Investments | 0 | 0 | |
Derivatives, net | |||
Cash, Cash Equivalents and Investments [Line Items] | |||
Derivative, net | [1] | 35 | (13) |
Cash and cash equivalents | [1] | 0 | 0 |
Short-term Investments | [1] | 35 | (13) |
Equity Investments | [1] | 0 | 0 |
Debt investments | |||
Cash, Cash Equivalents and Investments [Line Items] | |||
Debt investments, Cost Basis | 122,900 | 127,747 | |
Debt investments, Unrealized Gains | 6,929 | 2,027 | |
Debt investments, Unrealized Losses | (31) | (122) | |
Debt investments, Recorded Basis | 129,798 | 129,652 | |
Cash and cash equivalents | 6,882 | 7,176 | |
Short-term Investments | 122,916 | 122,476 | |
Equity Investments | 0 | 0 | |
Debt investments | Commercial Paper | Level 2 | |||
Cash, Cash Equivalents and Investments [Line Items] | |||
Debt investments, Cost Basis | 4,687 | 2,211 | |
Debt investments, Unrealized Gains | 1 | 0 | |
Debt investments, Unrealized Losses | 0 | 0 | |
Debt investments, Recorded Basis | 4,688 | 2,211 | |
Cash and cash equivalents | 1,618 | 1,773 | |
Short-term Investments | 3,070 | 438 | |
Equity Investments | 0 | 0 | |
Debt investments | Certificates of deposit | Level 2 | |||
Cash, Cash Equivalents and Investments [Line Items] | |||
Debt investments, Cost Basis | 2,898 | 2,018 | |
Debt investments, Unrealized Gains | 0 | 0 | |
Debt investments, Unrealized Losses | 0 | 0 | |
Debt investments, Recorded Basis | 2,898 | 2,018 | |
Cash and cash equivalents | 1,646 | 1,430 | |
Short-term Investments | 1,252 | 588 | |
Equity Investments | 0 | 0 | |
Debt investments | U.S. government securities | Level 1 | |||
Cash, Cash Equivalents and Investments [Line Items] | |||
Debt investments, Cost Basis | 92,067 | 104,925 | |
Debt investments, Unrealized Gains | 6,495 | 1,854 | |
Debt investments, Unrealized Losses | (1) | (104) | |
Debt investments, Recorded Basis | 98,561 | 106,675 | |
Cash and cash equivalents | 3,168 | 769 | |
Short-term Investments | 95,393 | 105,906 | |
Equity Investments | 0 | 0 | |
Debt investments | U.S. agency securities | Level 2 | |||
Cash, Cash Equivalents and Investments [Line Items] | |||
Debt investments, Cost Basis | 2,439 | 988 | |
Debt investments, Unrealized Gains | 2 | 0 | |
Debt investments, Unrealized Losses | 0 | 0 | |
Debt investments, Recorded Basis | 2,441 | 988 | |
Cash and cash equivalents | 449 | 698 | |
Short-term Investments | 1,992 | 290 | |
Equity Investments | 0 | 0 | |
Debt investments | Foreign government bonds | Level 2 | |||
Cash, Cash Equivalents and Investments [Line Items] | |||
Debt investments, Cost Basis | 6,982 | 6,350 | |
Debt investments, Unrealized Gains | 6 | 4 | |
Debt investments, Unrealized Losses | (3) | (8) | |
Debt investments, Recorded Basis | 6,985 | 6,346 | |
Cash and cash equivalents | 1 | 2,506 | |
Short-term Investments | 6,984 | 3,840 | |
Equity Investments | 0 | 0 | |
Debt investments | Mortgage- and asset-backed securities | Level 2 | |||
Cash, Cash Equivalents and Investments [Line Items] | |||
Debt investments, Cost Basis | 4,865 | 3,554 | |
Debt investments, Unrealized Gains | 41 | 10 | |
Debt investments, Unrealized Losses | (6) | (3) | |
Debt investments, Recorded Basis | 4,900 | 3,561 | |
Cash and cash equivalents | 0 | 0 | |
Short-term Investments | 4,900 | 3,561 | |
Equity Investments | 0 | 0 | |
Debt investments | Corporate notes and bonds | Level 2 | |||
Cash, Cash Equivalents and Investments [Line Items] | |||
Debt investments, Cost Basis | 8,500 | 7,437 | |
Debt investments, Unrealized Gains | 327 | 111 | |
Debt investments, Unrealized Losses | (17) | (7) | |
Debt investments, Recorded Basis | 8,810 | 7,541 | |
Cash and cash equivalents | 0 | 0 | |
Short-term Investments | 8,810 | 7,541 | |
Equity Investments | 0 | 0 | |
Debt investments | Corporate notes and bonds | Level 3 | |||
Cash, Cash Equivalents and Investments [Line Items] | |||
Debt investments, Cost Basis | 58 | 15 | |
Debt investments, Unrealized Gains | 0 | 0 | |
Debt investments, Unrealized Losses | 0 | 0 | |
Debt investments, Recorded Basis | 58 | 15 | |
Cash and cash equivalents | 0 | 0 | |
Short-term Investments | 58 | 15 | |
Equity Investments | 0 | 0 | |
Debt investments | Municipal securities | Level 2 | |||
Cash, Cash Equivalents and Investments [Line Items] | |||
Debt investments, Cost Basis | 313 | 242 | |
Debt investments, Unrealized Gains | 57 | 48 | |
Debt investments, Unrealized Losses | (4) | 0 | |
Debt investments, Recorded Basis | 366 | 290 | |
Cash and cash equivalents | 0 | 0 | |
Short-term Investments | 366 | 290 | |
Equity Investments | 0 | 0 | |
Debt investments | Municipal securities | Level 3 | |||
Cash, Cash Equivalents and Investments [Line Items] | |||
Debt investments, Cost Basis | 91 | 7 | |
Debt investments, Unrealized Gains | 0 | 0 | |
Debt investments, Unrealized Losses | 0 | 0 | |
Debt investments, Recorded Basis | 91 | 7 | |
Cash and cash equivalents | 0 | 0 | |
Short-term Investments | 91 | 7 | |
Equity Investments | $ 0 | $ 0 | |
[1] | Refer to Note 5 – Derivatives for further information on the fair value of our derivative instruments. |
Investments - Additional Inform
Investments - Additional Information (Detail) - USD ($) $ in Billions | Jun. 30, 2020 | Jun. 30, 2019 |
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 | $ 1.4 | $ 1.2 |
Unrealized Losses on Debt Inves
Unrealized Losses on Debt Investments (Detail) - USD ($) $ in Millions | Jun. 30, 2020 | Jun. 30, 2019 |
Unrealized Losses on Investments [Line Items] | ||
Less than 12 Months - Fair Value | $ 4,552 | $ 2,678 |
Less than 12 Months - Unrealized Losses | (31) | (5) |
12 Months or Greater - Fair Value | 0 | 39,989 |
12 Months or Greater - Unrealized Losses | 0 | (117) |
Total Fair Value | 4,552 | 42,667 |
Total Unrealized Losses | (31) | (122) |
U.S. government and agency securities | ||
Unrealized Losses on Investments [Line Items] | ||
Less than 12 Months - Fair Value | 2,323 | 1,491 |
Less than 12 Months - Unrealized Losses | (1) | (1) |
12 Months or Greater - Fair Value | 0 | 39,158 |
12 Months or Greater - Unrealized Losses | 0 | (103) |
Total Fair Value | 2,323 | 40,649 |
Total Unrealized Losses | (1) | (104) |
Foreign government bonds | ||
Unrealized Losses on Investments [Line Items] | ||
Less than 12 Months - Fair Value | 500 | 25 |
Less than 12 Months - Unrealized Losses | (3) | 0 |
12 Months or Greater - Fair Value | 0 | 77 |
12 Months or Greater - Unrealized Losses | 0 | (8) |
Total Fair Value | 500 | 102 |
Total Unrealized Losses | (3) | (8) |
Mortgage- and asset-backed securities | ||
Unrealized Losses on Investments [Line Items] | ||
Less than 12 Months - Fair Value | 1,014 | 664 |
Less than 12 Months - Unrealized Losses | (6) | (1) |
12 Months or Greater - Fair Value | 0 | 378 |
12 Months or Greater - Unrealized Losses | 0 | (2) |
Total Fair Value | 1,014 | 1,042 |
Total Unrealized Losses | (6) | (3) |
Corporate notes and bonds | ||
Unrealized Losses on Investments [Line Items] | ||
Less than 12 Months - Fair Value | 649 | 498 |
Less than 12 Months - Unrealized Losses | (17) | (3) |
12 Months or Greater - Fair Value | 0 | 376 |
12 Months or Greater - Unrealized Losses | 0 | (4) |
Total Fair Value | 649 | 874 |
Total Unrealized Losses | (17) | $ (7) |
Municipal securities | ||
Unrealized Losses on Investments [Line Items] | ||
Less than 12 Months - Fair Value | 66 | |
Less than 12 Months - Unrealized Losses | (4) | |
12 Months or Greater - Fair Value | 0 | |
12 Months or Greater - Unrealized Losses | 0 | |
Total Fair Value | 66 | |
Total Unrealized Losses | $ (4) |
Debt Investment Maturities (Det
Debt Investment Maturities (Detail) $ in Millions | Jun. 30, 2020USD ($) |
Cost Basis | |
Due in one year or less | $ 36,169 |
Due after one year through five years | 51,465 |
Due after five years through 10 years | 32,299 |
Due after 10 years | 2,967 |
Debt investments, Cost Basis | 122,900 |
Estimated Fair Value | |
Due in one year or less | 36,276 |
Due after one year through five years | 54,700 |
Due after five years through 10 years | 35,674 |
Due after 10 years | 3,148 |
Total | $ 129,798 |
Derivatives - Additional Inform
Derivatives - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
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 | 399,000,000 | $ 247,000,000 |
Gross amounts of derivative liabilities, elected to offset | $ 399,000,000 | $ 272,000,000 |
Senior Unsecured Obligations | ||
Derivative [Line Items] | ||
Debt instrument credit rating | AAA |
Notional Amounts of Outstanding
Notional Amounts of Outstanding Derivative Instruments Measured in U.S. Dollar Equivalents (Detail) - USD ($) $ in Millions | Jun. 30, 2020 | Jun. 30, 2019 |
Designated as Hedging Instruments | Foreign Exchange Contracts | Derivatives Purchased | ||
Derivative [Line Items] | ||
Notional amounts | $ 635 | $ 0 |
Designated as Hedging Instruments | Foreign Exchange Contracts | Derivatives Sold | ||
Derivative [Line Items] | ||
Notional amounts | 6,754 | 6,034 |
Designated as Hedging Instruments | Interest Rate Contracts | Derivatives Purchased | ||
Derivative [Line Items] | ||
Notional amounts | 1,295 | 0 |
Not Designated as Hedging Instruments | Foreign Exchange Contracts | Derivatives Purchased | ||
Derivative [Line Items] | ||
Notional amounts | 11,896 | 14,889 |
Not Designated as Hedging Instruments | Foreign Exchange Contracts | Derivatives Sold | ||
Derivative [Line Items] | ||
Notional amounts | 15,595 | 15,614 |
Not Designated as Hedging Instruments | Other Contracts | Derivatives Purchased | ||
Derivative [Line Items] | ||
Notional amounts | 1,844 | 2,007 |
Not Designated as Hedging Instruments | Other Contracts | Derivatives Sold | ||
Derivative [Line Items] | ||
Notional amounts | $ 757 | $ 456 |
Fair Values of Derivative Instr
Fair Values of Derivative Instruments (Detail) - USD ($) $ in Millions | Jun. 30, 2020 | Jun. 30, 2019 |
Derivatives Fair Value [Line Items] | ||
Derivative Assets | $ 400 | $ 250 |
Gross amounts of derivatives offset in the balance sheet, assets | (154) | (113) |
Cash collateral received, assets | 0 | 0 |
Net amounts of derivatives, assets | 246 | 137 |
Derivative Liabilities | (399) | (272) |
Gross amounts of derivatives offset in the balance sheet, liabilities | 158 | 114 |
Cash collateral received, liabilities | (154) | (78) |
Net amounts of derivatives, liabilities | (395) | (236) |
Level 1 | ||
Derivatives Fair Value [Line Items] | ||
Derivative Assets | 1 | 0 |
Derivative Liabilities | 0 | 0 |
Level 2 | ||
Derivatives Fair Value [Line Items] | ||
Derivative Assets | 398 | 247 |
Derivative Liabilities | (399) | (272) |
Level 3 | ||
Derivatives Fair Value [Line Items] | ||
Derivative Assets | 1 | 3 |
Derivative Liabilities | 0 | 0 |
Designated as Hedging Instruments | Foreign Exchange Contracts | ||
Derivatives Fair Value [Line Items] | ||
Derivative Assets | 44 | 0 |
Derivative Liabilities | (54) | (93) |
Designated as Hedging Instruments | Interest Rate Contracts | ||
Derivatives Fair Value [Line Items] | ||
Derivative Assets | 93 | 0 |
Derivative Liabilities | 0 | 0 |
Not Designated as Hedging Instruments | Foreign Exchange Contracts | ||
Derivatives Fair Value [Line Items] | ||
Derivative Assets | 245 | 204 |
Derivative Liabilities | (334) | (172) |
Not Designated as Hedging Instruments | Other Contracts | ||
Derivatives Fair Value [Line Items] | ||
Derivative Assets | 18 | 46 |
Derivative Liabilities | (11) | (7) |
Short-term Investments | ||
Derivatives Fair Value [Line Items] | ||
Net amounts of derivatives, assets | 35 | (13) |
Other Current Assets | ||
Derivatives Fair Value [Line Items] | ||
Net amounts of derivatives, assets | 199 | 146 |
Other Long-term Assets | ||
Derivatives Fair Value [Line Items] | ||
Net amounts of derivatives, assets | 12 | 4 |
Other Current Liabilities | ||
Derivatives Fair Value [Line Items] | ||
Net amounts of derivatives, liabilities | (334) | (221) |
Other Long-term Liabilities | ||
Derivatives Fair Value [Line Items] | ||
Net amounts of derivatives, liabilities | $ (61) | $ (15) |
Gains (Losses) on Derivative In
Gains (Losses) on Derivative Instruments Recognized on Consolidated Income Statements (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenue | Foreign Exchange Contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (Losses) on Derivatives Not Designated as Hedges | $ 0 | $ 0 | $ 0 |
Revenue | Other Contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (Losses) on Derivatives Not Designated as Hedges | 0 | 0 | 0 |
Other Income (Expense), Net | Foreign Exchange Contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (Losses) on Derivatives Not Designated as Hedges | (123) | (97) | (33) |
Other Income (Expense), Net | Other Contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (Losses) on Derivatives Not Designated as Hedges | 50 | 38 | (104) |
Fair Value Hedges | Revenue | Foreign Exchange Contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivatives | 0 | 0 | 0 |
Hedged items | 0 | 0 | 0 |
Excluded from effectiveness assessment | 0 | 0 | 0 |
Fair Value Hedges | Revenue | Interest Rate Contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivatives | 0 | 0 | 0 |
Hedged items | 0 | 0 | 0 |
Fair Value Hedges | Revenue | Equity Contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivatives | 0 | 0 | 0 |
Hedged items | 0 | 0 | 0 |
Excluded from effectiveness assessment | 0 | 0 | 0 |
Fair Value Hedges | Other Income (Expense), Net | Foreign Exchange Contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivatives | 1 | (130) | (78) |
Hedged items | 3 | 130 | 78 |
Excluded from effectiveness assessment | 139 | 168 | 103 |
Fair Value Hedges | Other Income (Expense), Net | Interest Rate Contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivatives | 93 | 0 | 0 |
Hedged items | (93) | 0 | 0 |
Fair Value Hedges | Other Income (Expense), Net | Equity Contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivatives | 0 | 0 | (324) |
Hedged items | 0 | 0 | 324 |
Excluded from effectiveness assessment | 0 | 0 | 80 |
Cash Flow Hedges | Revenue | Foreign Exchange Contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount reclassified from accumulated other comprehensive income | 0 | 341 | 185 |
Excluded from effectiveness assessment | 0 | (64) | (255) |
Cash Flow Hedges | Other Income (Expense), Net | Foreign Exchange Contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount reclassified from accumulated other comprehensive income | 0 | 0 | 0 |
Excluded from effectiveness assessment | $ 0 | $ 0 | $ 0 |
Gains (Losses), Net of Tax, on
Gains (Losses), Net of Tax, on Derivative Instruments Recognized on Consolidated Comprehensive Income Statements (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Cash Flow Hedges | Foreign Exchange Contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Included in effectiveness assessment | $ (38) | $ 159 | $ 219 |
Components of Inventories (Deta
Components of Inventories (Detail) - USD ($) $ in Millions | Jun. 30, 2020 | Jun. 30, 2019 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 700 | $ 399 |
Work in process | 83 | 53 |
Finished goods | 1,112 | 1,611 |
Total | $ 1,895 | $ 2,063 |
Components of Property and Equi
Components of Property and Equipment (Detail) - USD ($) $ in Millions | Jun. 30, 2020 | Jun. 30, 2019 |
Property Plant And Equipment [Abstract] | ||
Land | $ 1,823 | $ 1,540 |
Buildings and improvements | 33,995 | 26,288 |
Leasehold improvements | 5,487 | 5,316 |
Computer equipment and software | 41,261 | 33,823 |
Furniture and equipment | 4,782 | 4,840 |
Total, at cost | 87,348 | 71,807 |
Accumulated depreciation | (43,197) | (35,330) |
Property and equipment, net | $ 44,151 | $ 36,477 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | $ 10,700 | $ 9,700 | $ 7,700 |
Leasehold Improvements | |||
Property, Plant and Equipment [Line Items] | |||
Impairment charges related to leasehold improvements | $ 186 | ||
Building, Building Improvements and Leasehold Improvements | |||
Property, Plant and Equipment [Line Items] | |||
Committed for construction of new buildings, building improvements and leasehold improvements | $ 5,000 |
Business Combinations - Additio
Business Combinations - Additional Information (Detail) $ in Millions | Oct. 25, 2018USD ($) | Jun. 30, 2020USD ($)Acquisition |
GitHub, Inc. | ||
Business Acquisition [Line Items] | ||
Acquisition date | Oct. 25, 2018 | |
Total consideration transferred | $ 7,500 | |
Cash paid to acquire the business | 1,300 | |
Transactions recognized separately from preliminary purchase price allocation | $ 600 | |
Other | ||
Business Acquisition [Line Items] | ||
Cash paid to acquire the business | $ 2,400 | |
Business combination, number of business acquisitions | Acquisition | 15 |
Major Classes of Assets and Lia
Major Classes of Assets and Liabilities Allocated Purchase Price (Detail) - USD ($) $ in Millions | Jun. 30, 2020 | Jun. 30, 2019 | Oct. 25, 2018 | Jun. 30, 2018 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 43,351 | $ 42,026 | $ 35,683 | |
GitHub, Inc. | ||||
Business Acquisition [Line Items] | ||||
Cash, cash equivalents, and short-term investments | $ 234 | |||
Goodwill | $ 5,500 | 5,497 | ||
Intangible assets | $ 1,300 | 1,267 | ||
Other assets | 143 | |||
Other liabilities | (217) | |||
Total | $ 6,924 |
Acquired Intangible Assets (Det
Acquired Intangible Assets (Detail) - USD ($) $ in Millions | Oct. 25, 2018 | Jun. 30, 2020 | Jun. 30, 2019 |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted Average Life | 5 years | 7 years | |
Customer-related | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted Average Life | 5 years | 8 years | |
Technology-based | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted Average Life | 6 years | 5 years | |
Marketing-related | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted Average Life | 2 years | 10 years | |
Contract-based | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted Average Life | 0 years | 3 years | |
GitHub, Inc. | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Fair value of intangible assets acquired | $ 1,267 | $ 1,300 | |
Weighted Average Life | 7 years | ||
GitHub, Inc. | Customer-related | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Fair value of intangible assets acquired | $ 648 | ||
Weighted Average Life | 8 years | ||
GitHub, Inc. | Technology-based | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Fair value of intangible assets acquired | $ 447 | ||
Weighted Average Life | 5 years | ||
GitHub, Inc. | Marketing-related | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Fair value of intangible assets acquired | $ 170 | ||
Weighted Average Life | 10 years | ||
GitHub, Inc. | Contract-based | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Fair value of intangible assets acquired | $ 2 | ||
Weighted Average Life | 2 years |
Carrying Amount of Goodwill (De
Carrying Amount of Goodwill (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | ||
Goodwill [Line Items] | |||
Beginning Balance | $ 42,026 | $ 35,683 | |
Acquisitions | 1,454 | 6,408 | |
Other | (129) | (65) | |
Ending Balance | 43,351 | 42,026 | |
Productivity and Business Processes | |||
Goodwill [Line Items] | |||
Beginning Balance | 24,277 | 23,823 | |
Acquisitions | 7 | 514 | |
Other | (94) | (60) | |
Ending Balance | 24,190 | 24,277 | |
Intelligent Cloud | |||
Goodwill [Line Items] | |||
Beginning Balance | 11,351 | 5,703 | |
Acquisitions | 1,351 | 5,605 | [1] |
Other | (5) | 43 | [1] |
Ending Balance | 12,697 | 11,351 | |
More Personal Computing | |||
Goodwill [Line Items] | |||
Beginning Balance | 6,398 | 6,157 | |
Acquisitions | 96 | 289 | |
Other | (30) | (48) | |
Ending Balance | $ 6,464 | $ 6,398 | |
[1] | Includes goodwill of $5.5 billion related to GitHub. See Note 8 – Business Combinations for further information |
Carrying Amount of Goodwill (Pa
Carrying Amount of Goodwill (Parenthetical) (Detail) - USD ($) $ in Millions | Jun. 30, 2020 | Jun. 30, 2019 | Oct. 25, 2018 | Jun. 30, 2018 |
Goodwill [Line Items] | ||||
Goodwill | $ 43,351 | $ 42,026 | $ 35,683 | |
GitHub, Inc. | ||||
Goodwill [Line Items] | ||||
Goodwill | $ 5,500 | $ 5,497 |
Goodwill - Additional Informati
Goodwill - Additional Information (Detail) - USD ($) | May 01, 2020 | May 01, 2019 | May 01, 2018 | Jun. 30, 2020 | Jun. 30, 2019 |
Goodwill And Intangible Assets Disclosure [Abstract] | |||||
Goodwill impairment charge | $ 0 | $ 0 | $ 0 | ||
Accumulated goodwill impairment | $ 11,300,000,000 | $ 11,300,000,000 |
Finite-Lived Intangible Assets
Finite-Lived Intangible Assets (Detail) - USD ($) $ in Millions | Jun. 30, 2020 | Jun. 30, 2019 | |
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 17,759 | $ 17,139 | [1] |
Accumulated Amortization | (10,721) | (9,389) | |
Net Carrying Amount | 7,038 | 7,750 | |
Technology-based | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 8,160 | 7,691 | |
Accumulated Amortization | (6,381) | (5,771) | |
Net Carrying Amount | 1,779 | 1,920 | |
Customer-related | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 4,967 | 4,709 | |
Accumulated Amortization | (2,320) | (1,785) | |
Net Carrying Amount | 2,647 | 2,924 | |
Marketing-related | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 4,158 | 4,165 | |
Accumulated Amortization | (1,588) | (1,327) | |
Net Carrying Amount | 2,570 | 2,838 | |
Contract-based | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 474 | 574 | |
Accumulated Amortization | (432) | (506) | |
Net Carrying Amount | $ 42 | $ 68 | |
[1] | Includes intangible assets of $1.3 billion related to GitHub. See Note 8 – Business Combinations for further information |
Finite-Lived Intangible Asset_2
Finite-Lived Intangible Assets (Parenthetical) (Detail) - USD ($) $ in Millions | Jun. 30, 2019 | Oct. 25, 2018 |
GitHub, Inc. | ||
Finite-Lived Intangible Assets [Line Items] | ||
Fair value of intangible assets acquired | $ 1,300 | $ 1,267 |
Intangible Assets Acquired (Det
Intangible Assets Acquired (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Amount | $ 836 | $ 1,708 |
Weighted Average Life | 5 years | 7 years |
Technology-based | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Amount | $ 531 | $ 814 |
Weighted Average Life | 6 years | 5 years |
Marketing-related | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Amount | $ 2 | $ 177 |
Weighted Average Life | 2 years | 10 years |
Contract-based | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Amount | $ 0 | $ 7 |
Weighted Average Life | 0 years | 3 years |
Customer-related | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Amount | $ 303 | $ 710 |
Weighted Average Life | 5 years | 8 years |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) $ in Billions | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||
Intangible assets amortization expense | $ 1.6 | $ 1.9 | $ 2.2 |
Estimated Future Amortization E
Estimated Future Amortization Expense Related to Intangible Assets (Detail) - USD ($) $ in Millions | Jun. 30, 2020 | Jun. 30, 2019 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Year Ending June 30, 2021 | $ 1,483 | |
Year Ending June 30, 2022 | 1,399 | |
Year Ending June 30, 2023 | 1,219 | |
Year Ending June 30, 2024 | 851 | |
Year Ending June 30, 2025 | 447 | |
Thereafter | 1,639 | |
Net Carrying Amount | $ 7,038 | $ 7,750 |
Debt (Detail)
Debt (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | ||
Debt Instrument [Line Items] | |||
Total face value | $ 67,407 | $ 72,781 | |
Unamortized discount and issuance costs | (554) | (603) | |
Hedge fair value adjustments | [1] | 93 | 0 |
Premium on debt exchange | [2] | (3,619) | 0 |
Total debt | 63,327 | 72,178 | |
Current portion of long-term debt | (3,749) | (5,516) | |
Long-term debt | $ 59,578 | 66,662 | |
2009 Issuance of $3.8 billion | |||
Debt Instrument [Line Items] | |||
Maturities (calendar year) | [2] | 2039 | |
Stated Interest Rate | [2] | 5.20% | |
Effective Interest Rate | [2] | 5.24% | |
Total face value | [2] | $ 559 | 750 |
2010 Issuance of $4.8 billion | |||
Debt Instrument [Line Items] | |||
Total face value | [2] | $ 1,571 | 2,000 |
2010 Issuance of $4.8 billion | Minimum | |||
Debt Instrument [Line Items] | |||
Maturities (calendar year) | [2] | 2020 | |
Stated Interest Rate | [2] | 3.00% | |
Effective Interest Rate | [2] | 3.14% | |
2010 Issuance of $4.8 billion | Maximum | |||
Debt Instrument [Line Items] | |||
Maturities (calendar year) | [2] | 2040 | |
Stated Interest Rate | [2] | 4.50% | |
Effective Interest Rate | [2] | 4.57% | |
2011 Issuance of $2.3 billion | |||
Debt Instrument [Line Items] | |||
Total face value | [2] | $ 1,270 | 1,500 |
2011 Issuance of $2.3 billion | Minimum | |||
Debt Instrument [Line Items] | |||
Maturities (calendar year) | [2] | 2021 | |
Stated Interest Rate | [2] | 4.00% | |
Effective Interest Rate | [2] | 4.08% | |
2011 Issuance of $2.3 billion | Maximum | |||
Debt Instrument [Line Items] | |||
Maturities (calendar year) | [2] | 2041 | |
Stated Interest Rate | [2] | 5.30% | |
Effective Interest Rate | [2] | 5.36% | |
2012 Issuance of $2.3 billion | |||
Debt Instrument [Line Items] | |||
Total face value | $ 1,650 | 1,650 | |
2012 Issuance of $2.3 billion | Minimum | |||
Debt Instrument [Line Items] | |||
Maturities (calendar year) | 2022 | ||
Stated Interest Rate | 2.13% | ||
Effective Interest Rate | 2.24% | ||
2012 Issuance of $2.3 billion | Maximum | |||
Debt Instrument [Line Items] | |||
Maturities (calendar year) | 2042 | ||
Stated Interest Rate | 3.50% | ||
Effective Interest Rate | 3.57% | ||
2013 Issuance of $5.2 billion | |||
Debt Instrument [Line Items] | |||
Total face value | [2] | $ 2,919 | 3,500 |
2013 Issuance of $5.2 billion | Minimum | |||
Debt Instrument [Line Items] | |||
Maturities (calendar year) | [2] | 2023 | |
Stated Interest Rate | [2] | 2.38% | |
Effective Interest Rate | [2] | 2.47% | |
2013 Issuance of $5.2 billion | Maximum | |||
Debt Instrument [Line Items] | |||
Maturities (calendar year) | [2] | 2043 | |
Stated Interest Rate | [2] | 4.88% | |
Effective Interest Rate | [2] | 4.92% | |
2013 Issuance of €4.1 billion | |||
Debt Instrument [Line Items] | |||
Total face value | $ 4,549 | 4,613 | |
2013 Issuance of €4.1 billion | Minimum | |||
Debt Instrument [Line Items] | |||
Maturities (calendar year) | 2021 | ||
Stated Interest Rate | 2.13% | ||
Effective Interest Rate | 2.23% | ||
2013 Issuance of €4.1 billion | Maximum | |||
Debt Instrument [Line Items] | |||
Maturities (calendar year) | 2033 | ||
Stated Interest Rate | 3.13% | ||
Effective Interest Rate | 3.22% | ||
2014 Issuance | |||
Debt Instrument [Line Items] | |||
Total face value | $ 0 | 18 | |
2015 Issuance of $23.8 billion | |||
Debt Instrument [Line Items] | |||
Total face value | [2] | $ 15,549 | 22,000 |
2015 Issuance of $23.8 billion | Minimum | |||
Debt Instrument [Line Items] | |||
Maturities (calendar year) | [2] | 2020 | |
Stated Interest Rate | [2] | 2.00% | |
Effective Interest Rate | [2] | 2.09% | |
2015 Issuance of $23.8 billion | Maximum | |||
Debt Instrument [Line Items] | |||
Maturities (calendar year) | [2] | 2055 | |
Stated Interest Rate | [2] | 4.75% | |
Effective Interest Rate | [2] | 4.78% | |
2016 Issuance of $19.8 billion | |||
Debt Instrument [Line Items] | |||
Total face value | [2] | $ 16,955 | 19,750 |
2016 Issuance of $19.8 billion | Minimum | |||
Debt Instrument [Line Items] | |||
Maturities (calendar year) | [2] | 2021 | |
Stated Interest Rate | [2] | 1.55% | |
Effective Interest Rate | [2] | 1.64% | |
2016 Issuance of $19.8 billion | Maximum | |||
Debt Instrument [Line Items] | |||
Maturities (calendar year) | [2] | 2056 | |
Stated Interest Rate | [2] | 3.95% | |
Effective Interest Rate | [2] | 4.03% | |
2017 Issuance of $17.0 billion | |||
Debt Instrument [Line Items] | |||
Total face value | [2] | $ 12,385 | 17,000 |
2017 Issuance of $17.0 billion | Minimum | |||
Debt Instrument [Line Items] | |||
Maturities (calendar year) | [2] | 2022 | |
Stated Interest Rate | [2] | 2.40% | |
Effective Interest Rate | [2] | 2.52% | |
2017 Issuance of $17.0 billion | Maximum | |||
Debt Instrument [Line Items] | |||
Maturities (calendar year) | [2] | 2057 | |
Stated Interest Rate | [2] | 4.50% | |
Effective Interest Rate | [2] | 4.53% | |
2020 Issuance of $10.0 billion | |||
Debt Instrument [Line Items] | |||
Total face value | [2] | $ 10,000 | $ 0 |
2020 Issuance of $10.0 billion | Minimum | |||
Debt Instrument [Line Items] | |||
Maturities (calendar year) | [2] | 2050 | |
Stated Interest Rate | [2] | 2.53% | |
Effective Interest Rate | [2] | 2.53% | |
2020 Issuance of $10.0 billion | Maximum | |||
Debt Instrument [Line Items] | |||
Maturities (calendar year) | [2] | 2060 | |
Stated Interest Rate | [2] | 2.68% | |
Effective Interest Rate | [2] | 2.68% | |
[1] | Refer to Note 5 – Derivatives for further information on the interest rate swaps related to fixed-rate debt. | ||
[2] | In June 2020, we exchanged a portion of our existing debt at premium for cash and new debt with longer maturities. The premium will be amortized over the term of the new debt. |
Debt (Parenthetical) (Detail)
Debt (Parenthetical) (Detail) - 12 months ended Jun. 30, 2020 € in Billions, $ in Billions | USD ($) | EUR (€) |
2009 Issuance of $3.8 billion | ||
Debt Instrument [Line Items] | ||
Debt, issuance date | 2009 | |
Debt, face value | $ 3.8 | |
2010 Issuance of $4.8 billion | ||
Debt Instrument [Line Items] | ||
Debt, issuance date | 2010 | |
Debt, face value | $ 4.8 | |
2011 Issuance of $2.3 billion | ||
Debt Instrument [Line Items] | ||
Debt, issuance date | 2011 | |
Debt, face value | $ 2.3 | |
2012 Issuance of $2.3 billion | ||
Debt Instrument [Line Items] | ||
Debt, issuance date | 2012 | |
Debt, face value | $ 2.3 | |
2013 Issuance of $5.2 billion | ||
Debt Instrument [Line Items] | ||
Debt, issuance date | 2013 | |
Debt, face value | $ 5.2 | |
2013 Issuance of €4.1 billion | ||
Debt Instrument [Line Items] | ||
Debt, issuance date | 2013 | |
Debt, face value | € | € 4.1 | |
2014 Issuance | ||
Debt Instrument [Line Items] | ||
Debt, issuance date | 2014 | |
2015 Issuance of $23.8 billion | ||
Debt Instrument [Line Items] | ||
Debt, issuance date | 2015 | |
Debt, face value | $ 23.8 | |
2016 Issuance of $19.8 billion | ||
Debt Instrument [Line Items] | ||
Debt, issuance date | 2016 | |
Debt, face value | $ 19.8 | |
2017 Issuance of $17.0 billion | ||
Debt Instrument [Line Items] | ||
Debt, issuance date | 2017 | |
Debt, face value | $ 17 | |
2020 Issuance of $10.0 billion | ||
Debt Instrument [Line Items] | ||
Debt, issuance date | 2020 | |
Debt, face value | $ 10 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) $ in Billions | Jun. 30, 2020 | Jun. 30, 2019 |
Debt Disclosure [Abstract] | ||
Long-term debt fair value | $ 77.1 | $ 78.9 |
Maturities of Long-term Debt In
Maturities of Long-term Debt Including Current Portion (Detail) - USD ($) $ in Millions | Jun. 30, 2020 | Jun. 30, 2019 |
Debt Disclosure [Abstract] | ||
Year Ending June 30, 2021 | $ 3,750 | |
Year Ending June 30, 2022 | 7,966 | |
Year Ending June 30, 2023 | 2,750 | |
Year Ending June 30, 2024 | 5,250 | |
Year Ending June 30, 2025 | 2,250 | |
Thereafter | 45,441 | |
Total | $ 67,407 | $ 72,781 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Taxes [Line Items] | ||||||
TCJA, provisional net charge for income taxes | $ 13,700 | |||||
TCJA, adjustment to provisional net charge for income taxes | $ 157 | $ 157 | ||||
Provision (benefit) for income taxes | $ 8,755 | 4,448 | 19,903 | |||
Income taxes paid, net of refunds | 12,500 | 8,400 | 5,500 | |||
Gross unrecognized tax benefits related to uncertain tax positions | $ 13,146 | 13,792 | 13,146 | 11,961 | $ 11,737 | |
Gross unrecognized tax benefits related to uncertain tax positions, if recognized would affect our effective tax rates | 12,000 | 12,100 | 12,000 | 11,300 | ||
Accrued interest expense related to uncertain tax positions net of federal income tax benefits | 3,400 | 4,000 | 3,400 | 3,000 | ||
Interest expense related to uncertain tax positions, net of income tax benefits | $ 579 | $ 515 | $ 688 | |||
Regional Operating Centers | ||||||
Income Taxes [Line Items] | ||||||
Foreign earnings, taxed at rates lower than U.S. rate as a percentage of foreign income before tax | 86.00% | 82.00% | 87.00% | |||
Federal | ||||||
Income Taxes [Line Items] | ||||||
Operating loss carryforwards | $ 547 | |||||
Foreign Country | ||||||
Income Taxes [Line Items] | ||||||
Operating loss carryforwards | 2,000 | |||||
Removal of operating loss carryforwards | 2,000 | |||||
Removal of operating loss carryforwards, valuation allowance | 2,000 | |||||
State | ||||||
Income Taxes [Line Items] | ||||||
Operating loss carryforwards | $ 975 | |||||
Federal and State | Earliest Tax Year | ||||||
Income Taxes [Line Items] | ||||||
Operating loss carryforwards expiration year | 2021 | |||||
Federal and State | Latest Tax Year | ||||||
Income Taxes [Line Items] | ||||||
Operating loss carryforwards expiration year | 2040 | |||||
Transfer of Intangible Properties | ||||||
Income Taxes [Line Items] | ||||||
Provision (benefit) for income taxes | $ (2,600) | $ (2,600) |
Provision for Income Taxes (Det
Provision for Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Current Taxes | |||
U.S. federal | $ 3,537 | $ 4,718 | $ 19,764 |
U.S. state and local | 763 | 662 | 934 |
Foreign | 4,444 | 5,531 | 4,348 |
Current taxes | 8,744 | 10,911 | 25,046 |
Deferred Taxes | |||
U.S. federal | 58 | (5,647) | (4,292) |
U.S. state and local | (6) | (1,010) | (458) |
Foreign | (41) | 194 | (393) |
Deferred taxes | 11 | (6,463) | (5,143) |
Provision for income taxes | $ 8,755 | $ 4,448 | $ 19,903 |
Income Before Income Taxes (Det
Income Before Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |||
U.S. | $ 24,116 | $ 15,799 | $ 11,527 |
Foreign | 28,920 | 27,889 | 24,947 |
Income before income taxes | $ 53,036 | $ 43,688 | $ 36,474 |
Difference Between Income Taxes
Difference Between Income Taxes Computed at Federal Statutory Rate and Provision for Income Taxes (Detail) | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory rate | 21.00% | 21.00% | 28.10% |
Effect of: | |||
Foreign earnings taxed at lower rates | (3.70%) | (4.10%) | (7.80%) |
Impact of the enactment of the TCJA | 0.00% | 0.40% | 37.70% |
Impact of intangible property transfers | 0.00% | (5.90%) | 0.00% |
Foreign-derived intangible income deduction | (1.10%) | (1.40%) | 0.00% |
State income taxes, net of federal benefit | 1.30% | 0.70% | 1.30% |
Research and development credit | (1.10%) | (1.10%) | (1.30%) |
Excess tax benefits relating to stock-based compensation | (2.20%) | (2.20%) | (2.50%) |
Interest, net | 1.00% | 1.00% | 1.20% |
Other reconciling items, net | 1.30% | 1.80% | (2.10%) |
Effective rate | 16.50% | 10.20% | 54.60% |
Deferred Income Tax Assets and
Deferred Income Tax Assets and Liabilities (Detail) - USD ($) $ in Millions | Jun. 30, 2020 | Jun. 30, 2019 |
Deferred Income Tax Assets | ||
Stock-based compensation expense | $ 461 | $ 406 |
Accruals, reserves, and other expenses | 2,721 | 2,287 |
Loss and credit carryforwards | 865 | 3,518 |
Depreciation and amortization | 6,361 | 7,046 |
Leasing liabilities | 3,025 | 1,594 |
Unearned revenue | 1,553 | 475 |
Other | 354 | 367 |
Deferred income tax assets | 15,340 | 15,693 |
Less valuation allowance | (755) | (3,214) |
Deferred income tax assets, net of valuation allowance | 14,585 | 12,479 |
Deferred Income Tax Liabilities | ||
Book/tax basis differences in investments and debt | (2,642) | (738) |
Unearned revenue | 0 | (30) |
Leasing assets | (2,817) | (1,510) |
Deferred GILTI tax liabilities | (2,581) | (2,607) |
Other | (344) | (291) |
Deferred income tax liabilities | (8,384) | (5,176) |
Net deferred income tax assets | 6,201 | 7,303 |
Long-term deferred income tax liabilities | (204) | (233) |
Other Long-term Assets | ||
Deferred Income Tax Liabilities | ||
Other long-term assets | $ 6,405 | $ 7,536 |
Changes in Gross Unrecognized T
Changes in Gross Unrecognized Tax Benefits Related to Uncertain Tax Positions (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |||
Beginning unrecognized tax benefits | $ 13,146 | $ 11,961 | $ 11,737 |
Decreases related to settlements | (31) | (316) | (193) |
Increases for tax positions related to the current year | 647 | 2,106 | 1,445 |
Increases for tax positions related to prior years | 366 | 508 | 151 |
Decreases for tax positions related to prior years | (331) | (1,113) | (1,176) |
Decreases due to lapsed statutes of limitations | (5) | 0 | (3) |
Ending unrecognized tax benefits | $ 13,792 | $ 13,146 | $ 11,961 |
Income Taxes - Additional Inf_2
Income Taxes - Additional Information Regarding Examinations (Detail) | 1 Months Ended | 12 Months Ended | |||
Apr. 30, 2020 | Jun. 30, 2020 | Jun. 30, 2018 | Jun. 30, 2016 | Jun. 30, 2011 | |
Earliest Tax Year | Foreign Country | |||||
Income Tax Examination [Line Items] | |||||
Tax years subject to examination | 1996 | ||||
Latest Tax Year | Foreign Country | |||||
Income Tax Examination [Line Items] | |||||
Tax years subject to examination | 2019 | ||||
Internal Revenue Service (IRS) | Earliest Tax Year | |||||
Income Tax Examination [Line Items] | |||||
Tax years under audit | 2014 | 2010 | 2007 | 2004 | |
Tax years subject to examination | 2004 | ||||
Internal Revenue Service (IRS) | Latest Tax Year | |||||
Income Tax Examination [Line Items] | |||||
Tax years under audit | 2017 | 2013 | 2009 | 2006 | |
Tax years subject to examination | 2013 |
Unearned Revenue by Segment (De
Unearned Revenue by Segment (Detail) - USD ($) $ in Millions | Jun. 30, 2020 | Jun. 30, 2019 |
Contract With Customer Liability [Line Items] | ||
Unearned revenue | $ 39,180 | $ 37,206 |
Productivity and Business Processes | ||
Contract With Customer Liability [Line Items] | ||
Unearned revenue | 18,643 | 16,831 |
Intelligent Cloud | ||
Contract With Customer Liability [Line Items] | ||
Unearned revenue | 16,620 | 16,988 |
More Personal Computing | ||
Contract With Customer Liability [Line Items] | ||
Unearned revenue | $ 3,917 | $ 3,387 |
Changes in Unearned Revenue (De
Changes in Unearned Revenue (Detail) $ in Millions | 12 Months Ended |
Jun. 30, 2020USD ($) | |
Revenue From Contract With Customer [Abstract] | |
Balance, beginning of period | $ 37,206 |
Deferral of revenue | 78,922 |
Recognition of unearned revenue | (76,948) |
Balance, end of period | $ 39,180 |
Unearned Revenue - Additional I
Unearned Revenue - Additional Information (Detail) $ in Billions | Jun. 30, 2020USD ($) |
Contract With Customer Liability [Line Items] | |
Revenue allocated to remaining performance obligations | $ 111 |
Commercial Customers | |
Contract With Customer Liability [Line Items] | |
Revenue allocated to remaining performance obligations | $ 107 |
Unearned Revenue - Remaining Pe
Unearned Revenue - Remaining Performance Obligation - Additional Information (Detail) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-07-01 | Jun. 30, 2020 |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue allocated to remaining performance obligations, percentage of revenue expected to be recognized | 50.00% |
Revenue allocated to remaining performance obligations, expected timing of satisfaction | 12 months |
Leases - Additional Information
Leases - Additional Information (Detail) $ in Millions | 12 Months Ended |
Jun. 30, 2020USD ($) | |
Leases [Line Items] | |
Impairment charges to operating lease right-of-use assets | $ 161 |
Operating Lease | |
Leases [Line Items] | |
Additional leases, primarily for datacenters, that have not yet commenced | 3,400 |
Finance Lease | |
Leases [Line Items] | |
Additional leases, primarily for datacenters, that have not yet commenced | $ 3,500 |
Minimum | |
Leases [Line Items] | |
Operating and Finance leases, remaining lease terms | 1 year |
Additional operating leases that have not yet commenced, lease terms | 1 year |
Additional finance leases that have not yet commenced, lease terms | 1 year |
Maximum | |
Leases [Line Items] | |
Operating and Finance leases, remaining lease terms | 20 years |
Operating leases, options to extend leases term | 5 years |
Finance leases, options to extend leases term | 5 years |
Operating and Finance leases, options to terminate leases term | 1 year |
Additional operating leases that have not yet commenced, lease terms | 16 years |
Additional finance leases that have not yet commenced, lease terms | 16 years |
Components of Lease Expense (De
Components of Lease Expense (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Leases [Abstract] | |||
Operating lease cost | $ 2,043 | $ 1,707 | $ 1,585 |
Finance lease cost: | |||
Amortization of right-of-use assets | 611 | 370 | 243 |
Interest on lease liabilities | 336 | 247 | 175 |
Total finance lease cost | $ 947 | $ 617 | $ 418 |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information Related to Leases (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from operating leases | $ 1,829 | $ 1,670 | $ 1,522 |
Operating cash flows from finance leases | 336 | 247 | 175 |
Financing cash flows from finance leases | 409 | 221 | 144 |
Right-of-use assets obtained in exchange for lease obligations: | |||
Operating leases | 3,677 | 2,303 | 1,571 |
Finance leases | $ 3,467 | $ 2,532 | $ 1,933 |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information Related to Leases (Detail) - USD ($) $ in Millions | Jun. 30, 2020 | Jun. 30, 2019 |
Operating Leases | ||
Operating lease right-of-use assets | $ 8,753 | $ 7,379 |
Total operating lease liabilities | 9,287 | 7,703 |
Finance Leases | ||
Property and equipment, at cost | 87,348 | 71,807 |
Accumulated depreciation | (43,197) | (35,330) |
Property and equipment, net | 44,151 | 36,477 |
Total finance lease liabilities | $ 9,496 | $ 6,574 |
Weighted Average Remaining Lease Term | ||
Operating leases | 8 years | 7 years |
Finance leases | 13 years | 13 years |
Weighted Average Discount Rate | ||
Operating leases | 2.70% | 3.00% |
Finance leases | 3.90% | 4.60% |
Finance Lease | ||
Finance Leases | ||
Property and equipment, at cost | $ 10,371 | $ 7,041 |
Accumulated depreciation | (1,385) | (774) |
Property and equipment, net | 8,986 | 6,267 |
Other Current Liabilities | ||
Operating Leases | ||
Total operating lease liabilities | 1,616 | 1,515 |
Finance Leases | ||
Total finance lease liabilities | 540 | 317 |
Operating Lease Liabilities | ||
Operating Leases | ||
Total operating lease liabilities | 7,671 | 6,188 |
Other Long-term Liabilities | ||
Finance Leases | ||
Total finance lease liabilities | $ 8,956 | $ 6,257 |
Maturities of Lease Liabilities
Maturities of Lease Liabilities (Detail) - USD ($) $ in Millions | Jun. 30, 2020 | Jun. 30, 2019 |
Leases [Abstract] | ||
Operating Leases, Year Ending June 30, 2021 | $ 1,807 | |
Operating Leases, Year Ending June 30, 2022 | 1,652 | |
Operating Leases, Year Ending June 30, 2023 | 1,474 | |
Operating Leases, Year Ending June 30, 2024 | 1,262 | |
Operating Leases, Year Ending June 30, 2025 | 1,000 | |
Operating Leases, Thereafter | 3,122 | |
Operating Leases, Total lease payments | 10,317 | |
Operating Leases, Less imputed interest | (1,030) | |
Operating Leases | 9,287 | $ 7,703 |
Finance Leases, Year Ending June 30, 2021 | 880 | |
Finance Leases, Year Ending June 30, 2022 | 894 | |
Finance Leases, Year Ending June 30, 2023 | 903 | |
Finance Leases, Year Ending June 30, 2024 | 916 | |
Finance Leases, Year Ending June 30, 2025 | 1,236 | |
Finance Leases, Thereafter | 7,194 | |
Finance Leases, Total lease payments | 12,023 | |
Finance Leases, Less imputed interest | (2,527) | |
Finance Leases | $ 9,496 | $ 6,574 |
Contingencies - Additional Info
Contingencies - Additional Information (Detail) $ in Millions | Jun. 30, 2020USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
Accrual for disclosed loss contingencies, current, ending balance | $ 306 |
Amount not accrued for estimated maximum losses for disclosed loss contingencies | $ 500 |
Shares of Common Stock Outstand
Shares of Common Stock Outstanding (Detail) - shares shares in Millions | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Equity [Abstract] | |||
Balance, beginning of year | 7,643 | 7,677 | 7,708 |
Issued | 54 | 116 | 68 |
Repurchased | (126) | (150) | (99) |
Balance, end of year | 7,571 | 7,643 | 7,677 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) | 12 Months Ended | ||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | Sep. 18, 2019 | Sep. 20, 2016 | |
Share Repurchases [Line Items] | |||||
Amount of shares repurchased to settle employee tax withholding related to vesting of stock awards | $ 3,300,000,000 | $ 2,700,000,000 | $ 2,100,000,000 | ||
Share Repurchase Program 2016 | |||||
Share Repurchases [Line Items] | |||||
Amount available for repurchase under the share repurchase program approved by the company's Board of Directors | $ 40,000,000,000 | ||||
Share Repurchase Program 2019 | |||||
Share Repurchases [Line Items] | |||||
Amount available for repurchase under the share repurchase program approved by the company's Board of Directors | $ 40,000,000,000 | ||||
Unused amount of share repurchase program | $ 31,700,000,000 |
Share Repurchases (Detail)
Share Repurchases (Detail) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||
Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Share Repurchases [Line Items] | |||||||||||||||
Shares of common stock repurchased | 126 | 150 | 99 | ||||||||||||
Share Repurchase Program 2016 | |||||||||||||||
Share Repurchases [Line Items] | |||||||||||||||
Shares of common stock repurchased | 32 | 29 | 33 | 36 | 57 | 24 | 21 | 34 | 22 | 22 | 150 | 99 | |||
Value of common stock repurchased | $ 4,600 | $ 4,000 | $ 4,200 | $ 3,899 | $ 6,100 | $ 2,600 | $ 2,100 | $ 3,100 | $ 1,800 | $ 1,600 | $ 16,799 | $ 8,600 | |||
Share Repurchase Programs 2016 and 2019 | |||||||||||||||
Share Repurchases [Line Items] | |||||||||||||||
Shares of common stock repurchased | 37 | 126 | |||||||||||||
Value of common stock repurchased | $ 6,000 | $ 19,688 | |||||||||||||
Share Repurchase Program 2019 | |||||||||||||||
Share Repurchases [Line Items] | |||||||||||||||
Shares of common stock repurchased | 28 | ||||||||||||||
Value of common stock repurchased | $ 5,088 |
Dividends Declared (Detail)
Dividends Declared (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Equity [Abstract] | |||||||||||
Declaration Date | Jun. 17, 2020 | Mar. 9, 2020 | Dec. 4, 2019 | Sep. 18, 2019 | Jun. 12, 2019 | Mar. 11, 2019 | Nov. 28, 2018 | Sep. 18, 2018 | |||
Record Date | Aug. 20, 2020 | May 21, 2020 | Feb. 20, 2020 | Nov. 21, 2019 | Aug. 15, 2019 | May 16, 2019 | Feb. 21, 2019 | Nov. 15, 2018 | |||
Payment Date | Sep. 10, 2020 | Jun. 11, 2020 | Mar. 12, 2020 | Dec. 12, 2019 | Sep. 12, 2019 | Jun. 13, 2019 | Mar. 14, 2019 | Dec. 13, 2018 | |||
Dividend Per Share | $ 0.51 | $ 0.51 | $ 0.51 | $ 0.51 | $ 0.46 | $ 0.46 | $ 0.46 | $ 0.46 | $ 2.04 | $ 1.84 | $ 1.68 |
Amount | $ 3,861 | $ 3,865 | $ 3,876 | $ 3,886 | $ 3,510 | $ 3,521 | $ 3,526 | $ 3,544 | $ 15,488 | $ 14,101 |
Summary of Changes in Accumulat
Summary of Changes in Accumulated Other Comprehensive Income (Loss) by Component (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance, beginning of period | $ 102,330 | $ 82,718 | |
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201601Member | us-gaap:AccountingStandardsUpdate201601Member | us-gaap:AccountingStandardsUpdate201601Member |
Net change related to other comprehensive income (loss) | $ 3,526 | $ 1,914 | $ (2,856) |
Balance, end of period | 118,304 | 102,330 | 82,718 |
Derivatives | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance, beginning of period | 0 | 173 | 134 |
Unrealized gains (losses), net of tax | (38) | 160 | 218 |
Tax expense (benefit) included in provision for income taxes | 0 | 8 | 6 |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | (333) | (179) |
Net change related to other comprehensive income (loss) | (38) | (173) | 39 |
Balance, end of period | (38) | 0 | 173 |
Derivatives | Revenue | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Reclassification adjustments for (gains) losses | 0 | (341) | (185) |
Investments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance, beginning of period | 1,488 | (850) | 1,825 |
Unrealized gains (losses), net of tax | 3,987 | 2,331 | (1,146) |
Tax expense (benefit) included in provision for income taxes | (1) | (19) | 738 |
Amounts reclassified from accumulated other comprehensive income (loss) | 3 | 74 | (1,571) |
Net change related to other comprehensive income (loss) | 3,990 | 2,405 | (2,717) |
Balance, end of period | 5,478 | 1,488 | (850) |
Investments | Cumulative effect of accounting changes | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance, beginning of period | (67) | 42 | |
Balance, end of period | 0 | (67) | 42 |
Investments | Other Income (Expense), Net | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Reclassification adjustments for (gains) losses | 4 | 93 | (2,309) |
Translation adjustments and other | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance, beginning of period | (1,828) | (1,510) | (1,332) |
Net change related to other comprehensive income (loss) | (426) | (318) | (178) |
Balance, end of period | (2,254) | (1,828) | (1,510) |
Accumulated other comprehensive income (loss) | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance, beginning of period | (340) | (2,187) | 627 |
Net change related to other comprehensive income (loss) | 3,526 | 1,914 | (2,856) |
Balance, end of period | 3,186 | (340) | (2,187) |
Accumulated other comprehensive income (loss) | Cumulative effect of accounting changes | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance, beginning of period | (67) | 42 | |
Balance, end of period | $ 0 | $ (67) | $ 42 |
Summary of Changes in Accumul_2
Summary of Changes in Accumulated Other Comprehensive Income (Loss) by Component (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Derivatives | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Unrealized gains (losses), tax | $ (10) | $ 2 | $ 11 |
Net change related to other comprehensive income (loss), tax | (10) | (6) | 5 |
Investments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Unrealized gains (losses), tax | 1,057 | 616 | (427) |
Net change related to other comprehensive income (loss), tax | 1,058 | 635 | (1,165) |
Translation adjustments and other | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Net change related to other comprehensive income (loss), tax | $ 1 | $ (1) | $ 0 |
Employee Stock and Savings Pl_3
Employee Stock and Savings Plans - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Compensation Related Costs Disclosure [Line Items] | ||||
Company contribution amount for each dollar a participant contributes into the savings plans | 50.00% | |||
Retirement benefits for saving plans funded by employer | $ 1,000 | $ 877 | $ 807 | |
Upper Limit | IRS Compensation Limit | ||||
Compensation Related Costs Disclosure [Line Items] | ||||
Percentage of employee's earnings the company may contribute into the savings plans | 50.00% | |||
Stock Awards | ||||
Compensation Related Costs Disclosure [Line Items] | ||||
Shares authorized for future grant | 283 | |||
Unrecognized compensation costs | $ 10,200 | |||
Unrecognized compensation costs are expected to be recognized over a weighted average period (years) | 3 years | |||
Weighted average grant-date fair value | $ 140.49 | [1] | $ 107.02 | $ 75.88 |
Fair value of awards vested | $ 10,100 | $ 8,700 | $ 6,600 | |
Stock Awards | Lower Limit | ||||
Compensation Related Costs Disclosure [Line Items] | ||||
Award vest period | 4 years | |||
Stock Awards | Upper Limit | ||||
Compensation Related Costs Disclosure [Line Items] | ||||
Award vest period | 5 years | |||
Restricted Stock Units | Executive Incentive Plan | ||||
Compensation Related Costs Disclosure [Line Items] | ||||
Award vest period | 4 years | |||
Performance Stock Units | Executive Incentive Plan | ||||
Compensation Related Costs Disclosure [Line Items] | ||||
Award vest period | 3 years | |||
Employee Stock | ||||
Compensation Related Costs Disclosure [Line Items] | ||||
Shares authorized for future grant | 96 | |||
Percentage of market value at which employees are able to purchase shares of common stock | 90.00% | 90.00% | 90.00% | |
Maximum percentage of gross compensation at which employees may purchase shares | 15.00% | 15.00% | 15.00% | |
[1] | Includes 2 million, 2 million, and 3 million of PSUs granted at target and performance adjustments above target levels for fiscal years 2020, 2019, and 2018, respectively. |
Stock-Based Compensation Expens
Stock-Based Compensation Expense and Related Income Tax Benefits (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Stock-based compensation expense | $ 5,289 | $ 4,652 | $ 3,940 |
Income tax benefits related to stock-based compensation | $ 938 | $ 816 | $ 823 |
Assumptions Used in Estimating
Assumptions Used in Estimating the Fair Value of Stock Award Grants (Detail) - $ / shares | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Share based Compensation Arrangement by Share based Payment Award, Fair Value Assumptions, Method Used [Line Items] | |||
Interest rates minimum | 0.10% | 1.80% | 1.70% |
Interest rates maximum | 2.20% | 3.10% | 2.90% |
Lower Limit | |||
Share based Compensation Arrangement by Share based Payment Award, Fair Value Assumptions, Method Used [Line Items] | |||
Dividends per share (quarterly amounts) | $ 0.46 | $ 0.42 | $ 0.39 |
Upper Limit | |||
Share based Compensation Arrangement by Share based Payment Award, Fair Value Assumptions, Method Used [Line Items] | |||
Dividends per share (quarterly amounts) | $ 0.51 | $ 0.46 | $ 0.42 |
Stock Plan Activity (Detail)
Stock Plan Activity (Detail) - Stock Awards - $ / shares shares in Millions | 12 Months Ended | ||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |||
Shares | |||||
Nonvested balance, beginning of year | 147 | ||||
Granted | [1] | 53 | |||
Vested | (65) | ||||
Forfeited | (9) | ||||
Nonvested balance, end of year | 126 | 147 | |||
Weighted Average Grant-Date Fair Value | |||||
Nonvested balance, beginning of year | $ 78.49 | ||||
Granted | 140.49 | [1] | $ 107.02 | $ 75.88 | |
Vested | 75.35 | ||||
Forfeited | 90.30 | ||||
Nonvested balance, end of year | $ 105.23 | $ 78.49 | |||
[1] | Includes 2 million, 2 million, and 3 million of PSUs granted at target and performance adjustments above target levels for fiscal years 2020, 2019, and 2018, respectively. |
Stock Plan Activity (Parentheti
Stock Plan Activity (Parenthetical) (Detail) - shares shares in Millions | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Performance Stock Units | |||
Share based Compensation Arrangement by Share based Payment Award [Line Items] | |||
Nonvested stock awards granted | 2 | 2 | 3 |
Employee Purchased Shares (Deta
Employee Purchased Shares (Detail) - $ / shares shares in Millions | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Shares purchased | 9 | 11 | 13 |
Average price per share | $ 142.22 | $ 104.85 | $ 76.40 |
Segment Revenue (Detail)
Segment Revenue (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenue | $ 38,033 | $ 35,021 | $ 36,906 | $ 33,055 | $ 33,717 | $ 30,571 | $ 32,471 | $ 29,084 | $ 143,015 | $ 125,843 | $ 110,360 |
Productivity and Business Processes | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 46,398 | 41,160 | 35,865 | ||||||||
Intelligent Cloud | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 48,366 | 38,985 | 32,219 | ||||||||
More Personal Computing | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | $ 48,251 | $ 45,698 | $ 42,276 |
Operating Income (Loss) by Segm
Operating Income (Loss) by Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Segment Reporting Information [Line Items] | |||||||||||
Operating Income (Loss) | $ 13,407 | $ 12,975 | $ 13,891 | $ 12,686 | $ 12,405 | $ 10,341 | $ 10,258 | $ 9,955 | $ 52,959 | $ 42,959 | $ 35,058 |
Productivity and Business Processes | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Income (Loss) | 18,724 | 16,219 | 12,924 | ||||||||
Intelligent Cloud | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Income (Loss) | 18,324 | 13,920 | 11,524 | ||||||||
More Personal Computing | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Income (Loss) | $ 15,911 | $ 12,820 | $ 10,610 |
Segment Information and Geogr_3
Segment Information and Geographic Data - Additional Information (Detail) | 12 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Sales to an individual customer | No sales to an individual customer or country other than the United States accounted for more than 10% of revenue for fiscal years 2020, 2019, or 2018. |
Revenue Classified by Major Geo
Revenue Classified by Major Geographic Areas (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||||||||||
Revenues | $ 38,033 | $ 35,021 | $ 36,906 | $ 33,055 | $ 33,717 | $ 30,571 | $ 32,471 | $ 29,084 | $ 143,015 | $ 125,843 | $ 110,360 | |
United States | ||||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||||||||||
Revenues | [1] | 73,160 | 64,199 | 55,926 | ||||||||
Other Countries | ||||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||||||||||
Revenues | $ 69,855 | $ 61,644 | $ 54,434 | |||||||||
[1] | Includes billings to OEMs and certain multinational organizations because of the nature of these businesses and the impracticability of determining the geographic source of the revenue. |
Revenue Classified by Significa
Revenue Classified by Significant Product and Service Offerings (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenue from External Customer [Line Items] | |||||||||||
Revenue | $ 38,033 | $ 35,021 | $ 36,906 | $ 33,055 | $ 33,717 | $ 30,571 | $ 32,471 | $ 29,084 | $ 143,015 | $ 125,843 | $ 110,360 |
Server Products and Cloud Services | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenue | 41,379 | 32,622 | 26,129 | ||||||||
Office Products and Cloud Services | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenue | 35,316 | 31,769 | 28,316 | ||||||||
Windows | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenue | 22,294 | 20,395 | 19,518 | ||||||||
Gaming | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenue | 11,575 | 11,386 | 10,353 | ||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenue | 8,077 | 6,754 | 5,259 | ||||||||
Search Advertising | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenue | 7,740 | 7,628 | 7,012 | ||||||||
Devices | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenue | 6,457 | 6,095 | 5,134 | ||||||||
Enterprise Services | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenue | 6,409 | 6,124 | 5,846 | ||||||||
Other | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenue | $ 3,768 | $ 3,070 | $ 2,793 |
Revenue Classified by Signifi_2
Revenue Classified by Significant Product and Service Offerings (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenue from External Customer [Line Items] | |||||||||||
Revenue | $ 38,033 | $ 35,021 | $ 36,906 | $ 33,055 | $ 33,717 | $ 30,571 | $ 32,471 | $ 29,084 | $ 143,015 | $ 125,843 | $ 110,360 |
Commercial Cloud | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenue | $ 51,700 | $ 38,100 | $ 26,600 |
Long-Lived Assets, Excluding Fi
Long-Lived Assets, Excluding Financial Instruments and Tax Assets, Classified by Location of Controlling Statutory Company (Detail) - USD ($) $ in Millions | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 |
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Long-lived assets | $ 103,293 | $ 93,632 | $ 79,882 |
United States | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Long-lived assets | 60,789 | 55,252 | 44,501 |
Ireland | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Long-lived assets | 12,734 | 12,958 | 12,843 |
Other Countries | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Long-lived assets | $ 29,770 | $ 25,422 | $ 22,538 |
Quarterly Information (Unaudi_3
Quarterly Information (Unaudited) (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||
Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | ||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||
Revenue | $ 38,033 | $ 35,021 | $ 36,906 | $ 33,055 | $ 33,717 | $ 30,571 | $ 32,471 | $ 29,084 | $ 143,015 | $ 125,843 | $ 110,360 | |||||
Gross margin | 25,694 | 24,046 | 24,548 | 22,649 | 23,305 | 20,401 | 20,048 | 19,179 | 96,937 | 82,933 | 72,007 | |||||
Operating income | 13,407 | 12,975 | 13,891 | 12,686 | 12,405 | 10,341 | 10,258 | 9,955 | 52,959 | 42,959 | 35,058 | |||||
Net income | $ 11,202 | $ 10,752 | $ 11,649 | $ 10,678 | $ 13,187 | [1] | $ 8,809 | [1] | $ 8,420 | [1] | $ 8,824 | [1] | $ 44,281 | $ 39,240 | [1] | $ 16,571 |
Basic earnings per share | $ 1.48 | $ 1.41 | $ 1.53 | $ 1.40 | $ 1.72 | $ 1.15 | $ 1.09 | $ 1.15 | $ 5.82 | $ 5.11 | $ 2.15 | |||||
Diluted earnings per share | $ 1.46 | $ 1.40 | $ 1.51 | $ 1.38 | $ 1.71 | [2] | $ 1.14 | [2] | $ 1.08 | [2] | $ 1.14 | [2] | $ 5.76 | $ 5.06 | [2] | $ 2.13 |
[1] | Reflects the $157 million net charge related to the enactment of the TCJA for the second quarter and the $2.6 billion net income tax benefit related to the intangible property transfers for the fourth quarter, which together increased net income by $2.4 billion for fiscal year 2019. See Note 12 – Income Taxes for further information. | |||||||||||||||
[2] | Reflects the net charge related to the enactment of the TCJA and the net income tax benefit related to the intangible property transfers, which decreased (increased) diluted EPS $0.02 for the second quarter, $(0.34) for the fourth quarter, and $(0.31) for fiscal year 2019 |
Quarterly Information (Unaudi_4
Quarterly Information (Unaudited) (Parenthetical) (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Quarterly Financial Information [Line Items] | |||||
TCJA, adjustment to provisional net charge for income taxes | $ 157 | $ 157 | |||
Provision (benefit) for income taxes | $ 8,755 | 4,448 | $ 19,903 | ||
Transfer of Intangible Properties | |||||
Quarterly Financial Information [Line Items] | |||||
Provision (benefit) for income taxes | $ (2,600) | (2,600) | |||
Increase (decrease) in net income | $ 2,400 | ||||
Decrease (increase) in diluted earnings per share | $ (0.34) | $ 0.02 | $ (0.31) |