Microsoft (MSFT) 10-Q29 Jan 202020 Q2 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - $ / shares	6 Months Ended
Document and Entity Information - $ / shares	Dec. 31, 2019	Jan. 24, 2020
Entity Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Dec. 31, 2019
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2
Entity Registrant Name	MICROSOFT CORPORATION
Entity Central Index Key	0000789019
Current Fiscal Year End Date	--06-30
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity File Number	001-37845
Entity Incorporation, State or Country Code	WA
Entity Tax Identification Number	91-1144442
Entity Address, Address Line One	ONE MICROSOFT WAY
Entity Address, City or Town	REDMOND
Entity Address, State or Province	WA
Entity Address, Postal Zip Code	98052-6399
City Area Code	425
Local Phone Number	882-8080
Document Quarterly Report	true
Document Transition Report	false
Entity Common Stock, Shares Outstanding		7,606,047,010
Entity Common Stock, Par Value Per Share	$ 0.00000625
Common Stock
Entity Information [Line Items]
Trading Symbol	MSFT
Title of 12(b) Security	Common stock, $0.00000625 par value per share
Security Exchange Name	NASDAQ
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	3 Months Ended		6 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Revenue	$ 36,906	$ 32,471	$ 69,961	$ 61,555
Cost of revenue	12,358	12,423	22,764	22,328
Gross margin	24,548	20,048	47,197	39,227
Research and development	4,603	4,070	9,168	8,047
Sales and marketing	4,933	4,588	9,270	8,686
General and administrative	1,121	1,132	2,182	2,281
Operating income	13,891	10,258	26,577	20,213
Other income, net	194	127	194	393
Income before income taxes	14,085	10,385	26,771	20,606
Provision for income taxes	2,436	1,965	4,444	3,362
Net income	$ 11,649	$ 8,420	$ 22,327	$ 17,244
Earnings per share:
Basic	$ 1.53	$ 1.09	$ 2.93	$ 2.24
Diluted	$ 1.51	$ 1.08	$ 2.90	$ 2.22
Weighted average shares outstanding:
Basic	7,621	7,692	7,628	7,683
Diluted	7,691	7,768	7,701	7,767
Product
Revenue	$ 18,255	$ 16,219	$ 34,023	$ 33,518
Cost of revenue	4,966	5,885	8,271	9,534
Service and Other
Revenue	18,651	16,252	35,938	28,037
Cost of revenue	$ 7,392	$ 6,538	$ 14,493	$ 12,794

COMPREHENSIVE INCOME STATEMENTS

COMPREHENSIVE INCOME STATEMENTS - USD ($) $ in Millions	3 Months Ended		6 Months Ended
COMPREHENSIVE INCOME STATEMENTS - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Statement Of Income And Comprehensive Income [Abstract]
Net income	$ 11,649	$ 8,420	$ 22,327	$ 17,244
Other comprehensive income (loss), net of tax:
Net change related to derivatives	(4)	(15)	(6)	(60)
Net change related to investments	(420)	881	157	620
Translation adjustments and other	230	(264)	(66)	(319)
Other comprehensive income (loss)	(194)	602	85	241
Comprehensive income	$ 11,455	$ 9,022	$ 22,412	$ 17,485

BALANCE SHEETS

BALANCE SHEETS - USD ($) $ in Millions	Dec. 31, 2019	Jun. 30, 2019
Current assets:
Cash and cash equivalents	$ 8,864	$ 11,356
Short-term investments	125,389	122,463
Total cash, cash equivalents, and short-term investments	134,253	133,819
Accounts receivable, net of allowance for doubtful accounts of $384 and $411	23,525	29,524
Inventories	1,823	2,063
Other current assets	7,473	10,146
Total current assets	167,074	175,552
Property and equipment, net of accumulated depreciation of $39,597 and $35,330	40,522	36,477
Operating lease right-of-use assets	8,439	7,379
Equity investments	2,755	2,649
Goodwill	42,248	42,026
Intangible assets, net	7,126	7,750
Other long-term assets	14,630	14,723
Total assets	282,794	286,556
Current liabilities:
Accounts payable	8,811	9,382
Current portion of long-term debt	6,247	5,516
Accrued compensation	5,421	6,830
Short-term income taxes	2,687	5,665
Short-term unearned revenue	27,343	32,676
Other current liabilities	9,131	9,351
Total current liabilities	59,640	69,420
Long-term debt	63,361	66,662
Long-term income taxes	28,754	29,612
Long-term unearned revenue	3,878	4,530
Deferred income taxes	222	233
Operating lease liabilities	7,172	6,188
Other long-term liabilities	9,658	7,581
Total liabilities	172,685	184,226
Commitments and contingencies
Stockholders’ equity:
Common stock and paid-in capital – shares authorized 24,000; outstanding 7,611 and 7,643	79,625	78,520
Retained earnings	30,739	24,150
Accumulated other comprehensive loss	(255)	(340)
Total stockholders’ equity	110,109	102,330
Total liabilities and stockholders’ equity	$ 282,794	$ 286,556

BALANCE SHEETS (Parenthetical)

BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions	Dec. 31, 2019	Jun. 30, 2019
Statement Of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 384	$ 411
Property and equipment, accumulated depreciation	$ 39,597	$ 35,330
Common stock, shares authorized	24,000,000,000	24,000,000,000
Common stock, outstanding	7,611,000,000	7,643,000,000

CASH FLOWS STATEMENTS

CASH FLOWS STATEMENTS - USD ($) $ in Millions	3 Months Ended		6 Months Ended
CASH FLOWS STATEMENTS - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Operations
Net income	$ 11,649	$ 8,420	$ 22,327	$ 17,244
Adjustments to reconcile net income to net cash from operations:
Depreciation, amortization, and other	3,203	2,995	6,174	5,832
Stock-based compensation expense	1,340	1,183	2,602	2,290
Net recognized gains on investments and derivatives	(203)	(135)	(192)	(375)
Deferred income taxes	(53)	(173)	(230)	(420)
Changes in operating assets and liabilities:
Accounts receivable	(4,203)	(2,396)	5,887	6,798
Inventories	799	1,654	238	698
Other current assets	165	(173)	(273)	(850)
Other long-term assets	(517)	(473)	(850)	(452)
Accounts payable	(7)	(440)	(554)	(835)
Unearned revenue	(2,936)	(2,122)	(5,828)	(4,563)
Income taxes	(471)	(64)	(3,807)	(1,155)
Other current liabilities	1,489	656	(1,831)	(1,666)
Other long-term liabilities	425	(32)	835	11
Net cash from operations	10,680	8,900	24,498	22,557
Financing
Repayments of debt	(18)	(3,000)	(2,518)	(3,000)
Common stock issued	234	200	661	560
Common stock repurchased	(5,206)	(6,413)	(10,118)	(10,157)
Common stock cash dividends paid	(3,886)	(3,544)	(7,396)	(6,764)
Other, net	(39)	(459)	247	(1,239)
Net cash used in financing	(8,915)	(13,216)	(19,124)	(20,600)
Investing
Additions to property and equipment	(3,545)	(3,707)	(6,930)	(7,309)
Acquisition of companies, net of cash acquired, and purchases of intangible and other assets	(80)	(1,593)	(542)	(1,838)
Purchases of investments	(19,011)	(16,858)	(42,401)	(36,409)
Maturities of investments	11,230	3,782	30,312	8,996
Sales of investments	5,370	14,176	11,749	29,407
Net cash used in investing	(6,036)	(4,200)	(7,812)	(7,153)
Effect of foreign exchange rates on cash and cash equivalents	18	17	(54)	(112)
Net change in cash and cash equivalents	(4,253)	(8,499)	(2,492)	(5,308)
Cash and cash equivalents, beginning of period	13,117	15,137	11,356	11,946
Cash and cash equivalents, end of period	$ 8,864	$ 6,638	$ 8,864	$ 6,638

STOCKHOLDERS' EQUITY STATEMENTS

STOCKHOLDERS' EQUITY STATEMENTS - USD ($) $ in Millions	Total	Common stock and paid-in capital	Retained earnings	Accumulated other comprehensive income (loss)
Balance, beginning of period at Jun. 30, 2018		$ 71,223	$ 13,682	$ (2,187)
Common stock cash dividends	$ (3,544)
Balance, end of period at Sep. 30, 2018		71,303	17,279	(2,615)
Cash dividends declared per common share	$ 0.46
Balance, beginning of period at Jun. 30, 2018		71,223	13,682	(2,187)
Common stock issued		6,247
Net income	$ 17,244		17,244
Other comprehensive income (loss)	241			241
Common stock cash dividends	(7,070)		(7,074)
Common stock repurchased		(2,215)	(7,944)
Cumulative effect of accounting changes			677	(67)
Stock-based compensation expense		2,290
Other, net		11
Balance, end of period at Dec. 31, 2018	$ 92,128	77,556	16,585	(2,013)
Cash dividends declared per common share	$ 0.92
Balance, beginning of period at Sep. 30, 2018		71,303	17,279	(2,615)
Common stock issued		5,887
Net income	$ 8,420		8,420
Other comprehensive income (loss)	602			602
Common stock cash dividends	(3,526)		(3,546)
Common stock repurchased		(828)	(5,568)
Cumulative effect of accounting changes			0	0
Stock-based compensation expense		1,183
Other, net		11
Balance, end of period at Dec. 31, 2018	$ 92,128	77,556	16,585	(2,013)
Cash dividends declared per common share	$ 0.46
Balance, beginning of period at Jun. 30, 2019	$ 102,330	78,520	24,150	(340)
Common stock cash dividends	$ (3,886)
Balance, end of period at Sep. 30, 2019		78,882	27,240	(61)
Cash dividends declared per common share	$ 0.51
Balance, beginning of period at Jun. 30, 2019	$ 102,330	78,520	24,150	(340)
Common stock issued		661
Net income	22,327		22,327
Other comprehensive income (loss)	85			85
Common stock cash dividends	(7,767)		(7,762)
Common stock repurchased		(2,157)	(7,976)
Cumulative effect of accounting changes			0	0
Stock-based compensation expense		2,602
Other, net		(1)
Balance, end of period at Dec. 31, 2019	$ 110,109	79,625	30,739	(255)
Cash dividends declared per common share	$ 1.02
Balance, beginning of period at Sep. 30, 2019		78,882	27,240	(61)
Common stock issued		234
Net income	$ 11,649		11,649
Other comprehensive income (loss)	(194)			(194)
Common stock cash dividends	(3,881)		(3,875)
Common stock repurchased		(831)	(4,275)
Cumulative effect of accounting changes			0	0
Stock-based compensation expense		1,340
Other, net		0
Balance, end of period at Dec. 31, 2019	$ 110,109	$ 79,625	$ 30,739	$ (255)
Cash dividends declared per common share	$ 0.51

ACCOUNTING POLICIES

ACCOUNTING POLICIES	6 Months Ended
ACCOUNTING POLICIES	Dec. 31, 2019
Accounting Policies [Abstract]
ACCOUNTING POLICIES	NOTE 1 — ACCOUNTING POLICIES Accounting Principles Our unaudited interim consolidated financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). In the opinion of management, the unaudited interim consolidated financial statements reflect all adjustments of a normal recurring nature that are necessary for a fair presentation of the results for the interim periods presented. Interim results are not necessarily indicative of results for a full year. The information included in this Form 10-Q should be read in conjunction with information included in the Microsoft Corporation fiscal year 2019 Form 10-K filed with the U.S. Securities and Exchange Commission (“SEC”) on August 1, 2019. Principles of Consolidation The consolidated financial statements include the accounts of Microsoft Corporation and its subsidiaries. Intercompany transactions and balances have been eliminated. Estimates and Assumptions Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses. Examples of estimates and assumptions include: for revenue recognition, determining the nature and timing of satisfaction of performance obligations, and determining the standalone selling price of performance obligations, variable consideration, and other obligations such as product returns and refunds; loss contingencies; product warranties; the fair value of and/or potential impairment of goodwill and intangible assets for our reporting units; product life cycles; useful lives of our tangible and intangible assets; allowances for doubtful accounts; the market value of, and demand for, our inventory; stock-based compensation forfeiture rates; when technological feasibility is achieved for our products; the potential outcome of uncertain tax positions that have been recognized in our consolidated financial statements or tax returns; and determining the timing and amount of impairments for investments. Actual results and outcomes may differ from management’s estimates and assumptions. 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 We measure equity investments without readily determinable fair values on a nonrecurring basis. The fair values of these investments are determined based on valuation techniques using the best information available, and may include quoted market prices, market comparables, and discounted cash flow projections. Our other current financial assets and current financial liabilities have fair values that approximate their carrying values. Contract Balances As of December 31, 2019 and June 30, 2019, long-term accounts receivable, net of allowance for doubtful accounts, was $2.4 billion and $2.2 billion, respectively, and is included in other long-term assets in our consolidated balance sheets. 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 receivables, loans, and other financial instruments. Credit losses relating to available-for-sale debt securities will also be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. The standard will be adopted upon the effective date for us beginning July 1, 2020. Adoption of the standard will be applied using a modified retrospective approach through a cumulative-effect adjustment to retained earnings as of the effective date to align our credit loss methodology with the new standard. We have evaluated the impact of this standard in our consolidated financial statements, including accounting policies, processes, and systems, and based on current market conditions, we do not expect the impact to be material upon adoption. 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	6 Months Ended
EARNINGS PER SHARE	Dec. 31, 2019
Earnings Per Share [Abstract]
EARNINGS PER SHARE	NOTE 2 — EARNINGS PER SHARE Basic earnings per share (“EPS”) is computed based on the weighted average number of shares of common stock outstanding during the period. Diluted EPS is computed based on the weighted average number of shares of common stock plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares include outstanding stock options and stock awards. The components of basic and diluted EPS were as follows: (In millions, except earnings per share) Three Months Ended December 31, Six Months Ended December 31, 2019 2018 2019 2018 Net income available for common shareholders (A) $ 11,649 $ 8,420 $ 22,327 $ 17,244 Weighted average outstanding shares of common stock (B) 7,621 7,692 7,628 7,683 Dilutive effect of stock-based awards 70 76 73 84 Common stock and common stock equivalents (C) 7,691 7,768 7,701 7,767 Earnings Per Share Basic (A/B) $ 1.53 $ 1.09 $ 2.93 $ 2.24 Diluted (A/C) $ 1.51 $ 1.08 $ 2.90 $ 2.22 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	6 Months Ended
OTHER INCOME (EXPENSE), NET	Dec. 31, 2019
Other Income And Expenses [Abstract]
OTHER INCOME (EXPENSE), NET	NOTE 3 — OTHER INCOME (EXPENSE), NET The components of other income (expense), net were as follows: (In millions) Three Months Ended Six Months Ended 2019 2018 2019 2018 Interest and dividends income $ 688 $ 704 $ 1,412 $ 1,385 Interest expense (654 ) (672 ) (1,291 ) (1,346 ) Net recognized gains on investments 162 94 105 337 Net gains on derivatives 41 41 87 38 Net losses on foreign currency remeasurements (24 ) (74 ) (82 ) (69 ) Other, net (19 ) 34 (37 ) 48 Total $ 194 $ 127 $ 194 $ 393 Net Recognized Gains (Losses) on Investments Net recognized gains (losses) on debt investments were as follows: (In millions) Three Months Ended Six Months Ended 2019 2018 2019 2018 Realized gains from sales of available-for-sale securities $ 14 $ 6 $ 21 $ 13 Realized losses from sales of available-for-sale securities (6 ) (5 ) (10 ) (90 ) Other-than-temporary impairments of investments (1 ) (7 ) (5 ) (7 ) Total $ 7 $ (6 ) $ 6 $ (84 ) Net recognized gains (losses) on equity investments were as follows: (In millions) Three Months Ended December 31, Six Months Ended December 31, 2019 2018 2019 2018 Net realized gains on investments sold $ 53 $ 30 $ 75 $ 233 Net unrealized gains on investments still held 111 73 55 191 Impairments of investments (9 ) (3 ) (31 ) (3 ) Total $ 155 $ 100 $ 99 $ 421

INVESTMENTS

INVESTMENTS	6 Months Ended
INVESTMENTS	Dec. 31, 2019
Investments Debt And Equity Securities [Abstract]
INVESTMENTS	NOTE 4 — INVESTMENTS Investment Components The components of investments were as follows: (In millions) Fair Value Cost Basis Unrealized Gains Unrealized Losses Recorded Basis Cash and Cash Equivalents Short-term Investments Equity Investments December 31, 2019 Changes in Fair Value Recorded in Other Comprehensive Income Commercial paper Level 2 $ 3,966 $ 0 $ 0 $ 3,966 $ 1,742 $ 2,224 $ 0 Certificates of deposit Level 2 2,591 0 0 2,591 1,548 1,043 0 U.S. government securities Level 1 102,567 1,995 (105 ) 104,457 0 104,457 0 U.S. agency securities Level 2 399 0 0 399 0 399 0 Foreign government bonds Level 2 6,605 5 (10 ) 6,600 680 5,920 0 Mortgage- and asset-backed securities Level 2 3,862 12 (2 ) 3,872 0 3,872 0 Corporate notes and bonds Level 2 6,900 130 (7 ) 7,023 0 7,023 0 Corporate notes and bonds Level 3 13 0 0 13 0 13 0 Municipal securities Level 2 289 49 0 338 0 338 0 Municipal securities Level 3 78 0 0 78 0 78 0 Total debt investments $ 127,270 $ 2,191 $ (124 ) $ 129,337 $ 3,970 $ 125,367 $ 0 Changes in Fair Value Recorded in Net Income Equity investments Level 1 $ 1,074 $ 618 $ 0 $ 456 Equity investments Other 2,299 0 0 2,299 Total equity investments $ 3,373 $ 618 $ 0 $ 2,755 Cash $ 4,276 $ 4,276 $ 0 $ 0 Derivatives, net (a) 22 0 22 0 Total $ 137,008 $ 8,864 $ 125,389 $ 2,755 (In millions) Fair Value 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 December 31, 2019 and June 30, 2019, equity investments without readily determinable fair values measured at cost with adjustments for observable changes in price or impairments were $1.3 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 December 31, 2019 U.S. government and agency securities $ 7,650 $ (97 ) $ 9,121 $ (8 ) $ 16,771 $ (105 ) Foreign government bonds 2,545 (3 ) 11 (7 ) 2,556 (10 ) Mortgage- and asset-backed securities 684 (1 ) 408 (1 ) 1,092 (2 ) Corporate notes and bonds 220 (3 ) 137 (4 ) 357 (7 ) Municipal securities 0 0 1 0 1 0 Total $ 11,099 $ (104 ) $ 9,678 $ (20 ) $ 20,777 $ (124 ) Less than 12 Months 12 Months or Greater Total (In millions) Fair Value Unrealized Fair Value Unrealized Total 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 December 31, 2019 Due in one year or less $ 40,357 $ 40,381 Due after one year through five years 48,195 49,166 Due after five years through 10 years 37,123 38,138 Due after 10 years 1,595 1,652 Total $ 127,270 $ 129,337

DERIVATIVES

DERIVATIVES	6 Months Ended
DERIVATIVES	Dec. 31, 2019
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 Currency Certain forecasted transactions, assets, and liabilities are exposed to foreign currency risk. We monitor our foreign currency exposures daily to maximize the economic effectiveness of our foreign currency hedge positions. 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 “O ther contracts ” in the tables below. Equity Securities held in our equity investments portfolio are subject to market price risk. Market price risk is managed relative to broad-based global and domestic equity indices using certain convertible preferred investments, options, futures, and swap contracts not designated as hedging instruments. 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 December 31, 2019, our long-term unsecured debt rating was AAA, and cash investments were in excess of $1.0 billion. As a result, no collateral was required to be posted. The following table presents the notional amounts of our outstanding derivative instruments measured in U.S. dollar equivalents: (In millions) December 31, 2019 June 30, 2019 Designated as Hedging Instruments Foreign exchange contracts purchased $ 438 $ 0 Foreign exchange contracts sold 6,440 6,034 Interest rate contracts purchased 1,187 0 Not Designated as Hedging Instruments Foreign exchange contracts purchased 11,460 14,889 Foreign exchange contracts sold 11,738 15,614 Other contracts purchased 1,715 2,007 Other contracts sold 463 456 Fair Values of Derivative Instruments The following table presents our derivative instruments: Derivative Derivative Derivative Derivative (In millions) Assets Liabilities Assets Liabilities December 31, 2019 June 30, 2019 Designated as Hedging Instruments Foreign exchange contracts $ 33 $ (24 ) $ 0 $ (93 ) Interest rate contracts 0 (11 ) 0 0 Not Designated as Hedging Instruments Foreign exchange contracts 165 (148 ) 204 (172 ) Other contracts 33 (4 ) 46 (7 ) Gross amounts of derivatives 231 (187 ) 250 (272 ) Gross amounts of derivatives offset in the balance sheet (85 ) 86 (113 ) 114 Cash collateral received 0 (93 ) 0 (78 ) Net amounts of derivatives $ 146 $ (194 ) $ 137 $ (236 ) Reported as Short-term investments $ 22 $ 0 $ (13 ) $ 0 Other current assets 133 0 146 0 Other long-term assets (9 ) 0 4 0 Other current liabilities 0 (150 ) 0 (221 ) Other long-term liabilities 0 (44 ) 0 (15 ) Total $ 146 $ (194 ) $ 137 $ (236 ) Gross derivative assets and liabilities subject to legally enforceable master netting agreements for which we have elected to offset were $227 million and $187 million, respectively, as of December 31, 2019, 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 December 31, 2019 Derivative assets $ 1 $ 227 $ 3 $ 231 Derivative liabilities 0 (187 ) 0 (187 ) 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: Three Months Ended December 31, Six Months Ended December 31, 2019 2018 2019 2018 (In millions) Revenue Other (Expense), Revenue Other (Expense), Revenue Other Income (Expense), Net Revenue Other Income (Expense), Net Designated as Fair Value Hedging Instruments Foreign exchange contracts Derivatives $ 0 $ 23 $ 0 $ (184 ) $ 0 $ 53 $ 0 $ (62 ) Hedged items 0 (26 ) 0 184 0 (59 ) 0 62 Excluded from effectiveness assessment 0 42 0 45 0 83 0 73 Interest rate contracts Derivatives 0 (14 ) 0 0 0 (13 ) 0 0 Hedged items 0 13 0 0 0 12 0 0 Designated as Cash Flow Hedging Instruments Foreign exchange contracts Amount reclassified from accumulated other comprehensive income 0 8 88 0 0 3 180 0 Excluded from effectiveness assessment 0 0 0 (14 ) 0 0 0 (41 ) Not Designated as Hedging Instruments Foreign exchange contracts 0 52 0 (79 ) 0 (119 ) 0 (109 ) Other contracts 0 1 0 8 0 2 0 5 Gains (losses), net of tax, on derivative instruments recognized in our consolidated comprehensive income statements were as follows: (In millions) Three Months Ended December 31, Six Months Ended December 31, 2019 2018 2019 2018 Designated as Cash Flow Hedging Instruments Foreign exchange contracts Included in effectiveness assessment $ 2 $ 70 $ (4 ) $ 114

INVENTORIES

INVENTORIES	6 Months Ended
INVENTORIES	Dec. 31, 2019
Inventory Disclosure [Abstract]
INVENTORIES	NOTE 6 — INVENTORIES The components of inventories were as follows: (In millions) December 31, 2019 June 30, 2019 Raw materials $ 409 $ 399 Work in process 49 53 Finished goods 1,365 1,611 Total $ 1,823 $ 2,063

GOODWILL

GOODWILL	6 Months Ended
GOODWILL	Dec. 31, 2019
Goodwill And Intangible Assets Disclosure [Abstract]
GOODWILL	NOTE 7 — GOODWILL Changes in the carrying amount of goodwill were as follows: (In millions) June 30, 2019 Acquisitions Other December 31, 2019 Productivity and Business Processes $ 24,277 $ 7 $ (18 ) $ 24,266 Intelligent Cloud 11,351 118 19 11,488 More Personal Computing 6,398 96 0 6,494 Total $ 42,026 $ 221 $ 1 $ 42,248 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.

INTANGIBLE ASSETS

INTANGIBLE ASSETS	6 Months Ended
INTANGIBLE ASSETS	Dec. 31, 2019
Goodwill And Intangible Assets Disclosure [Abstract]
INTANGIBLE ASSETS	NOTE 8 — INTANGIBLE ASSETS The components of intangible assets, all of which are finite-lived, were as follows: (In millions) Gross Accumulated Net Gross Accumulated Net December 31, 2019 June 30, 2019 Technology-based $ 7,821 $ (6,097 ) $ 1,724 $ 7,691 $ (5,771 ) $ 1,920 Customer-related 4,673 (2,030 ) 2,643 4,709 (1,785 ) 2,924 Marketing-related 4,157 (1,453 ) 2,704 4,165 (1,327 ) 2,838 Contract-based 475 (420 ) 55 574 (506 ) 68 Total $ 17,126 $ (10,000 ) $ 7,126 $ 17,139 $ (9,389 ) $ 7,750 Intangible assets amortization expense was $411 million and $845 million for the three and six months ended December 31, 2019, respectively, and $530 million and $1.1 billion for the three and six months ended December 31, 2018, respectively. The following table outlines the estimated future amortization expense related to intangible assets held as of December 31, 2019: (In millions) Year Ending June 30, 2020 (excluding the six months ended December 31, 2019) $ 687 2021 1,346 2022 1,246 2023 1,088 2024 757 Thereafter 2,002 Total $ 7,126

DEBT

DEBT	6 Months Ended
DEBT	Dec. 31, 2019
Debt Disclosure [Abstract]
DEBT	NOTE 9 — DEBT The components of debt were as follows: (In millions, issuance Maturities (calendar year) Stated Interest Rate Effective Interest Rate December 31, 2019 June 30, 2019 2009 issuance of $3.8 billion 2039 5.20% 5.24% $ 750 $ 750 2010 issuance of $4.8 billion 2020 – 2040 3.00% – 4.50% 3.14% – 4.57% 2,000 2,000 2011 issuance of $2.3 billion 2021 – 2041 4.00% – 5.30% 4.08% – 5.36% 1,500 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 2023 – 2043 2.38% – 4.88% 2.47% – 4.92% 3,500 3,500 2013 issuance of €4.1 billion 2021 – 2033 2.13% – 3.13% 2.23% – 3.22% 4,546 4,613 2014 issuance 0 18 2015 issuance of $23.8 billion 2020 – 2055 1.85% – 4.75% 1.93% – 4.78% 22,000 22,000 2016 issuance of $19.8 billion 2021 – 2056 1.55% – 3.95% 1.64% – 4.03% 17,250 19,750 2017 issuance of $17.0 billion 2020 – 2057 1.85% – 4.50% 1.95% – 4.53% 17,000 17,000 Total face value 70,196 72,781 Unamortized discount and issuance costs (577 ) (603 ) Hedge fair value adjustments ( a ) (11 ) 0 Total debt 69,608 72,178 Current portion of long-term debt (6,247 ) (5,516 ) Long-term debt $ 63,361 $ 66,662 ( a ) Refer to Note 5 – Derivatives for further information on the interest rate swaps related to fixed-rate debt. As of December 31, 2019 and June 30, 2019, the estimated fair value of long-term debt, including the current portion, was $78.0 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 for each of the next five years and thereafter as of December 31, 2019: (In millions) Year Ending June 30, 2020 (excluding the six months ended December 31, 2019) $ 3,000 2021 3,750 2022 7,964 2023 2,750 2024 5,250 Thereafter 47,482 Total $ 70,196

INCOME TAXES

INCOME TAXES	6 Months Ended
INCOME TAXES	Dec. 31, 2019
Income Tax Disclosure [Abstract]
INCOME TAXES	NOTE 10 — INCOME TAXES Tax Cuts and Jobs Act On December 22, 2017, the Tax Cuts and Jobs Act ("TCJA”) was enacted into law, which significantly changed existing U.S. tax law and included numerous provisions that affect our business. We recorded a provisional net charge related to the enactment of the TCJA in fiscal year 2018 and adjusted the provisional net charge by recording additional tax expense of $157 million in the second quarter of fiscal year 2019 pursuant to SEC Staff Accounting Bulletin No. 118. Effective Tax Rate Our effective tax rate was 17% and 19% for the three months ended December 31, 2019 and 2018, respectively, and 17% and 16% for the six months ended December 31, 2019 and 2018, respectively. The decrease in our effective tax rate for the three months ended December 31, 2019 compared to the prior year was primarily due to the adjustment of the provisional net charge related to the TCJA in the second quarter of fiscal year 2019. The increase in our effective tax rate for the six months ended December 31, 2019 compared to the prior year was primarily due to changes in the mix of our income before income taxes between the U.S. and foreign countries, offset in part by the adjustment of the provisional net charge related to the TCJA. Our effective tax rate was lower than the U.S. federal statutory rate for the three and six months ended December 31, 2019, 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. Uncertain Tax Positions As of December 31, 2019 and June 30, 2019, unrecognized tax benefits and other income tax liabilities were $16.0 billion We settled a portion of the Internal Revenue Service (“IRS”) audit for tax years 2004 to 2006 in fiscal year 2011. In February 2012, the IRS withdrew its 2011 Revenue Agents Report related to unresolved issues for tax years 2004 to 2006 and reopened the audit phase of the examination. We also settled a portion of the IRS audit for tax years 2007 to 2009 in fiscal year 2016, and a portion of the IRS audit for tax years 2010 to 2013 in fiscal year 2018. We remain under audit for tax years 2004 to 2013. We expect the IRS to begin an examination of tax years 2014 to 2017 within the next 12 months. As of December 31, 2019, 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	6 Months Ended
UNEARNED REVENUE	Dec. 31, 2019
Revenue From Contract With Customer [Abstract]
UNEARNED REVENUE	NOTE 11 — UNEARNED REVENUE Unearned revenue by segment was as follows: (In millions) December 31, June 30, Productivity and Business Processes $ 14,266 $ 16,831 Intelligent Cloud 13,766 16,988 More Personal Computing 3,189 3,387 Total $ 31,221 $ 37,206 Changes in unearned revenue were as follows: (In millions) Six Months Ended December 31, 2019 Balance, beginning of period $ 37,206 Deferral of revenue 31,108 Recognition of unearned revenue (37,093 ) Balance, end of period $ 31,221 Revenue allocated to remaining performance obligations, which includes unearned revenue and amounts that will be invoiced and recognized as revenue in future periods, was $93 billion as of December 31, 2019, of which $90 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. Many customers are committing to our products and services for longer contract terms, which is increasing the percentage of remaining performance obligations that will be recognized beyond the next 12 months.

LEASES

LEASES	6 Months Ended
LEASES	Dec. 31, 2019
Leases [Abstract]
LEASES	NOTE 12 — 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) Three Months Ended Six Months Ended 2019 2018 2019 2018 Operating lease cost $ 478 $ 413 $ 943 $ 823 Finance lease cost: Amortization of right-of-use assets $ 163 $ 84 $ 288 $ 162 Interest on lease liabilities 84 59 162 114 Total finance lease cost $ 247 $ 143 $ 450 $ 276 Supplemental cash flow information related to leases was as follows: (In millions) Three Months Ended Six Months Ended 2019 2018 2019 2018 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 479 $ 407 $ 932 $ 804 Operating cash flows from finance leases 84 59 162 114 Financing cash flows from finance leases 104 54 183 101 Right-of-use assets obtained in exchange for lease obligations: Operating leases 948 472 1,931 968 Finance leases 863 645 2,352 1,064 Supplemental balance sheet information related to leases was as follows: (In millions, except lease term and discount rate) December 31, June 30, Operating Leases Operating lease right-of-use assets $ 8,439 $ 7,379 Other current liabilities $ 1,616 $ 1,515 Operating lease liabilities 7,172 6,188 Total operating lease liabilities $ 8,788 $ 7,703 Finance Leases Property and equipment, at cost $ 9,403 $ 7,041 Accumulated depreciation (1,062 ) (774 ) Property and equipment, net $ 8,341 $ 6,267 Other current liabilities $ 464 $ 317 Other long-term liabilities 8,287 6,257 Total finance lease liabilities $ 8,751 $ 6,574 Weighted Average Remaining Lease Term Operating leases 7 years 7 years Finance leases 13 years 13 years Weighted Average Discount Rate Operating leases 2.8% 3.0% Finance leases 4.1% 4.6% Maturities of lease liabilities were as follows: (In millions) Year Ending June 30, Operating Leases Finance Leases 2020 (excluding the six months ended December 31, 2019) $ 966 $ 393 2021 1,705 804 2022 1,507 819 2023 1,306 827 2024 1,084 838 Thereafter 3,394 7,619 Total lease payments 9,962 11,300 Less imputed interest (1,174 ) (2,549 ) Total $ 8,788 $ 8,751 As of December 31, 2019, we have additional operating and finance leases, primarily for datacenters, that have not yet commenced of $2.4 billion and $4.2 billion, respectively. These operating and finance leases will commence between fiscal year 2020 and fiscal year 2022 with lease terms of 1 year 16 years

CONTINGENCIES

CONTINGENCIES	6 Months Ended
CONTINGENCIES	Dec. 31, 2019
Commitments And Contingencies Disclosure [Abstract]
CONTINGENCIES	NOTE 13 — CONTINGENCIES Patent and Intellectual Property Claims There were 50 patent infringement cases pending against Microsoft as of December 31, 2019, none of which are material individually or in aggregate. Antitrust, Unfair Competition, and Overcharge Class Actions Antitrust and unfair competition class action lawsuits were filed against us in British Columbia, Ontario, and Quebec, Canada. All three have been certified on behalf of Canadian indirect purchasers who acquired licenses for Microsoft operating system software and/or productivity application software between 1998 and 2010. The trial of the British Columbia action commenced in May 2016. Following a mediation, the parties agreed to a global settlement of all three Canadian actions, and submitted the proposed settlement agreement to the courts in all three jurisdictions for approval. The final settlement has been approved by the courts in British Columbia, Ontario, and Quebec, and the claims administration process will commence once the court approves the form of notice to the class Other Antitrust Litigation and Claims China State Administration for Industry and Commerce Investigation In 2014, Microsoft was informed that China’s State Agency for Market Regulation (“SAMR”) (formerly State Administration for Industry and Commerce) had begun a formal investigation relating to China’s Anti-Monopoly Law, and the SAMR conducted onsite inspections of Microsoft offices in Beijing, Shanghai, Guangzhou, and Chengdu. The SAMR has presented its preliminary views as to certain possible violations of China's Anti-Monopoly Law, and discussions are expected to continue. Product-Related Litigation U.S. Cell Phone Litigation Microsoft Mobile Oy, a subsidiary of Microsoft, along with other handset manufacturers and network operators, is a defendant in 40 lawsuits filed in the Superior Court for the District of Columbia by individual plaintiffs who allege that radio emissions from cellular handsets caused their brain tumors and other adverse health effects. We assumed responsibility for these claims in our agreement to acquire Nokia’s Devices and Services business and have been substituted for the Nokia defendants. Nine of these cases were filed in 2002 and are consolidated for certain pre-trial proceedings; the remaining cases are stayed. In a separate 2009 decision, the Court of Appeals for the District of Columbia held that adverse health effect claims arising from the use of cellular handsets that operate within the U.S. Federal Communications Commission radio frequency emission guidelines (“FCC Guidelines”) are pre-empted by federal law. The plaintiffs allege that their handsets either operated outside the FCC Guidelines or were manufactured before the FCC Guidelines went into effect. The lawsuits also allege an industry-wide conspiracy to manipulate the science and testing around emission guidelines. In 2013, the defendants in the consolidated cases moved to exclude the plaintiffs’ expert evidence of general causation on the basis of flawed scientific methodologies. In 2014, the trial court granted in part and denied in part the defendants’ motion to exclude the plaintiffs’ general causation experts. The defendants filed an interlocutory appeal to the District of Columbia Court of Appeals challenging the standard for evaluating expert scientific evidence. In October 2016, the Court of Appeals issued its decision adopting the standard advocated by the defendants and remanding the cases to the trial court for further proceedings under that standard. The plaintiffs have filed supplemental expert evidence, portions of which the defendants have moved to strike. In August 2018, the trial court issued an order striking portions of the plaintiffs’ expert reports. A hearing is scheduled for June 2020. Employment-Related Litigation Moussouris v. Microsoft Current and former female Microsoft employees in certain engineering and information technology roles brought this class action in federal court in Seattle in 2015, alleging systemic gender discrimination in pay and promotions. The plaintiffs moved to certify the class in October 2017. Microsoft filed an opposition in January 2018, attaching an expert report showing no statistically significant disparity in pay and promotions between similarly situated men and women. In June 2018, the court denied the plaintiffs’ motion for class certification. In December 2019, the U.S. Court of Appeals for the Ninth Circuit affirmed the denial of class certification. 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 December 31, 2019, we accrued aggregate legal liabilities of $319 million. While we intend to defend these matters vigorously, adverse outcomes that we estimate could reach approximately $900 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	6 Months Ended
STOCKHOLDERS' EQUITY	Dec. 31, 2019
Equity [Abstract]
STOCKHOLDERS' EQUITY	NOTE 14 — STOCKHOLDERS’ EQUITY 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 on December 22, 2016, has no expiration date, and may be suspended or discontinued at any time without notice. As of December 31, 2019, $2.8 billion remained of this $40.0 billion share repurchase program. 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 will commence following completion of the program approved on September 20, 2016, has no expiration date, and may be terminated at any time. We repurchased the following shares of common stock under the share repurchase program: (In millions) Shares Amount Shares Amount Fiscal Year 2020 2019 First Quarter 29 $ 4,000 24 $ 2,600 Second Quarter 32 4,600 57 6,100 Total 61 $ 8,600 81 $ 8,700 The 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 $551 million and $1.5 billion for the three and six months ended December 31, 2019, respectively, and $313 million and $1.5 billion for the three and six months ended December 31, 2018, respectively. All 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 3,881 Total $ 1.02 $ 7,767 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 Total $ 0.92 $ 7,070 The dividend declared on December 4, 2019 was included in other current liabilities as of December 31, 2019.

ACCUMULATED OTHER COMPREHENSIVE

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	6 Months Ended
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	Dec. 31, 2019
Equity [Abstract]
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	NOTE 15 — ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table summarizes the changes in accumulated other comprehensive income (loss) by component: (In millions) Three Months Ended Six Months Ended December 31, 2019 2018 2019 2018 Derivatives Balance, beginning of period $ (2 ) $ 128 $ 0 $ 173 Unrealized gains (losses), net of tax of $1 $(1), 2 71 (4 ) 115 Reclassification adjustments for gains included in earnings (8 ) (88 ) (3 ) (180 ) Tax expense included in provision for income taxes 2 2 1 5 Amounts reclassified from accumulated other comprehensive income (loss) (6 ) (86 ) (2 ) (175 ) Net change related to derivatives, net of tax of $(1), $(2) (4 ) (15 ) (6 ) (60 ) Balance, end of period $ (6 ) $ 113 $ (6 ) $ 113 Investments Balance, beginning of period $ 2,065 $ (1,178 ) $ 1,488 $ (850 ) Unrealized gains (losses), net of tax of $(111) $45 (414 ) 879 162 556 Reclassification adjustments for (gains) losses included in other income (expense), net (7 ) 2 (6 ) 80 Tax expense (benefit) included in provision for income taxes 1 0 1 (16 ) Amounts reclassified from accumulated other comprehensive income (loss) (6 ) 2 (5 ) 64 Net change related to investments, net of tax of $(112) $44 (420 ) 881 157 620 Cumulative effect of accounting changes 0 0 0 (67 ) Balance, end of period $ 1,645 $ (297 ) $ 1,645 $ (297 ) Translation Adjustments and Other Balance, beginning of period $ (2,124 ) $ (1,565 ) $ (1,828 ) $ (1,510 ) Translation adjustments and other, net of tax of $0 $(1) $(8) , 230 (264 ) (66 ) (319 ) Balance, end of period $ (1,894 ) $ (1,829 ) $ (1,894 ) $ (1,829 ) Accumulated other comprehensive loss, end of period $ (255 ) $ (2,013 ) $ (255 ) $ (2,013 )

SEGMENT INFORMATION AND GEOGRAP

SEGMENT INFORMATION AND GEOGRAPHIC DATA	6 Months Ended
SEGMENT INFORMATION AND GEOGRAPHIC DATA	Dec. 31, 2019
Segment Reporting [Abstract]
SEGMENT INFORMATION AND GEOGRAPHIC DATA	NOTE 16 — 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 Microsoft Office 365 subscriptions and Office licensed on-premises, comprising Office, Exchange, SharePoint, Microsoft Teams, Office 365 Security and Compliance, and Skype for Business, and related Client Access Licenses (“CALs”). • Office Consumer, including Office 365 subscriptions and Office licensed on-premises, and Office Consumer Services, including Skype, Outlook.com, and OneDrive. • LinkedIn, including Talent Solutions, Marketing Solutions, and Premium Subscriptions. • Dynamics business solutions, including Microsoft 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 Microsoft Azure; Microsoft 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 original equipment manufacturer (“OEM”) licensing and other non-volume licensing of the Windows operating system; Windows Commercial, comprising volume licensing of the Windows operating system, Windows cloud services, and other Windows commercial offerings; patent licensing; Windows Internet of Things (“IoT”); and MSN advertising. • Devices, including Microsoft Surface and PC accessories. • Gaming, including Xbox hardware and Xbox content and services, comprising Xbox Live transactions, subscriptions, cloud services, and advertising (“Xbox Live”), video games, and third-party video game royalties. • Search. Revenue and costs are generally directly attributed to our segments. However, due to the integrated structure of our business, certain revenue recognized and costs incurred by one segment may benefit other segments. Revenue from certain contracts is allocated among the segments based on the relative value of the underlying products and services, which can include allocation based on actual prices charged, prices when sold separately, or estimated costs plus a profit margin. Cost of revenue is allocated in certain cases based on a relative revenue methodology. Operating expenses that are allocated primarily include those relating to marketing of products and services from which multiple segments benefit and are generally allocated based on relative gross margin. In addition, certain costs incurred at a corporate level that are identifiable and that benefit our segments are allocated to them. These allocated costs include costs of: legal, including settlements and fines; information technology; human resources; finance; excise taxes; field selling; shared facilities services; and customer service and support. Each allocation is measured differently based on the specific facts and circumstances of the costs being allocated. Certain corporate-level activity is not allocated to our segments. Segment revenue and operating income were as follows during the periods presented: (In millions) Three Months Ended Six Months Ended 2019 2018 2019 2018 Revenue Productivity and Business Processes $ 11,826 $ 10,100 $ 22,903 $ 19,871 Intelligent Cloud 11,869 9,378 22,714 17,945 More Personal Computing 13,211 12,993 24,344 23,739 Total $ 36,906 $ 32,471 $ 69,961 $ 61,555 Operating Income Productivity and Business Processes $ 5,182 $ 4,015 $ 9,964 $ 7,896 Intelligent Cloud 4,531 3,279 8,420 6,210 More Personal Computing 4,178 2,964 8,193 6,107 Total $ 13,891 $ 10,258 $ 26,577 $ 20,213 No sales to an individual customer or country other than the United States accounted for more than 10% of revenue for the three or six months ended December 31, 2019 or 2018. Revenue, classified by the major geographic areas in which our customers were located, was as follows: (In millions) Three Months Ended Six Months Ended 2019 2018 2019 2018 United States (a) $ 19,149 $ 16,787 $ 36,419 $ 31,527 Other countries 17,757 15,684 33,542 30,028 Total $ 36,906 $ 32,471 $ 69,961 $ 61,555 (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) Three Months Ended Six Months Ended 2019 2018 2019 2018 Server products and cloud services $ 10,119 $ 7,791 $ 19,311 $ 14,849 Office products and cloud services 8,983 7,747 17,449 15,369 Windows 5,593 4,758 10,946 9,659 Gaming 3,327 4,232 5,869 6,970 Search advertising 2,163 1,976 4,154 3,764 LinkedIn 2,102 1,693 4,011 3,223 Devices 2,048 1,948 3,250 3,209 Enterprise Services 1,612 1,521 3,157 2,971 Other 959 805 1,814 1,541 Total $ 36,906 $ 32,471 $ 69,961 $ 61,555 Our commercial cloud revenue, which includes Office 365 Commercial , Azure, the commercial portion of LinkedIn, Dynamics 365, and other commercial cloud properties, was $ 12.5 billion and $ 24.1 billion for the three and six months ended December 31 , 201 9 , respectively, and $ 9.0 billion and $ 17.5 billion for the three and six months ended December 31, 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.

ACCOUNTING POLICIES (Policies)

ACCOUNTING POLICIES (Policies)	6 Months Ended
ACCOUNTING POLICIES (Policies)	Dec. 31, 2019
Accounting Policies [Abstract]
Accounting Principles	Accounting Principles Our unaudited interim consolidated financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). In the opinion of management, the unaudited interim consolidated financial statements reflect all adjustments of a normal recurring nature that are necessary for a fair presentation of the results for the interim periods presented. Interim results are not necessarily indicative of results for a full year. The information included in this Form 10-Q should be read in conjunction with information included in the Microsoft Corporation fiscal year 2019 Form 10-K filed with the U.S. Securities and Exchange Commission (“SEC”) on August 1, 2019.
Principles of Consolidation	Principles of Consolidation The consolidated financial statements include the accounts of Microsoft Corporation and its subsidiaries. Intercompany transactions and balances have been eliminated.
Estimates and Assumptions	Estimates and Assumptions Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses. Examples of estimates and assumptions include: for revenue recognition, determining the nature and timing of satisfaction of performance obligations, and determining the standalone selling price of performance obligations, variable consideration, and other obligations such as product returns and refunds; loss contingencies; product warranties; the fair value of and/or potential impairment of goodwill and intangible assets for our reporting units; product life cycles; useful lives of our tangible and intangible assets; allowances for doubtful accounts; the market value of, and demand for, our inventory; stock-based compensation forfeiture rates; when technological feasibility is achieved for our products; the potential outcome of uncertain tax positions that have been recognized in our consolidated financial statements or tax returns; and determining the timing and amount of impairments for investments. Actual results and outcomes may differ from management’s estimates and assumptions.
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 We measure equity investments without readily determinable fair values on a nonrecurring basis. The fair values of these investments are determined based on valuation techniques using the best information available, and may include quoted market prices, market comparables, and discounted cash flow projections. Our other current financial assets and current financial liabilities have fair values that approximate their carrying values.
Contract Balances	Contract Balances As of December 31, 2019 and June 30, 2019, long-term accounts receivable, net of allowance for doubtful accounts, was $2.4 billion and $2.2 billion, respectively, and is included in other long-term assets in our consolidated balance sheets.
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 receivables, loans, and other financial instruments. Credit losses relating to available-for-sale debt securities will also be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. The standard will be adopted upon the effective date for us beginning July 1, 2020. Adoption of the standard will be applied using a modified retrospective approach through a cumulative-effect adjustment to retained earnings as of the effective date to align our credit loss methodology with the new standard. We have evaluated the impact of this standard in our consolidated financial statements, including accounting policies, processes, and systems, and based on current market conditions, we do not expect the impact to be material upon adoption. 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.

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	6 Months Ended
EARNINGS PER SHARE (Tables)	Dec. 31, 2019
Earnings Per Share [Abstract]
Basic and Diluted Earnings Per Share	The components of basic and diluted EPS were as follows: (In millions, except earnings per share) Three Months Ended December 31, Six Months Ended December 31, 2019 2018 2019 2018 Net income available for common shareholders (A) $ 11,649 $ 8,420 $ 22,327 $ 17,244 Weighted average outstanding shares of common stock (B) 7,621 7,692 7,628 7,683 Dilutive effect of stock-based awards 70 76 73 84 Common stock and common stock equivalents (C) 7,691 7,768 7,701 7,767 Earnings Per Share Basic (A/B) $ 1.53 $ 1.09 $ 2.93 $ 2.24 Diluted (A/C) $ 1.51 $ 1.08 $ 2.90 $ 2.22

OTHER INCOME (EXPENSE), NET (Ta

OTHER INCOME (EXPENSE), NET (Tables)	6 Months Ended
OTHER INCOME (EXPENSE), NET (Tables)	Dec. 31, 2019
Components of Other Income (Expense), Net	The components of other income (expense), net were as follows: (In millions) Three Months Ended Six Months Ended 2019 2018 2019 2018 Interest and dividends income $ 688 $ 704 $ 1,412 $ 1,385 Interest expense (654 ) (672 ) (1,291 ) (1,346 ) Net recognized gains on investments 162 94 105 337 Net gains on derivatives 41 41 87 38 Net losses on foreign currency remeasurements (24 ) (74 ) (82 ) (69 ) Other, net (19 ) 34 (37 ) 48 Total $ 194 $ 127 $ 194 $ 393
Debt Securities
Net Recognized Gains (Losses) on Investments	Net recognized gains (losses) on debt investments were as follows: (In millions) Three Months Ended Six Months Ended 2019 2018 2019 2018 Realized gains from sales of available-for-sale securities $ 14 $ 6 $ 21 $ 13 Realized losses from sales of available-for-sale securities (6 ) (5 ) (10 ) (90 ) Other-than-temporary impairments of investments (1 ) (7 ) (5 ) (7 ) Total $ 7 $ (6 ) $ 6 $ (84 )
Equity Securities
Net Recognized Gains (Losses) on Investments	Net recognized gains (losses) on equity investments were as follows: (In millions) Three Months Ended December 31, Six Months Ended December 31, 2019 2018 2019 2018 Net realized gains on investments sold $ 53 $ 30 $ 75 $ 233 Net unrealized gains on investments still held 111 73 55 191 Impairments of investments (9 ) (3 ) (31 ) (3 ) Total $ 155 $ 100 $ 99 $ 421

INVESTMENTS (Tables)

INVESTMENTS (Tables)	6 Months Ended
INVESTMENTS (Tables)	Dec. 31, 2019
Investments Debt And Equity Securities [Abstract]
Investment Components	The components of investments were as follows: (In millions) Fair Value Cost Basis Unrealized Gains Unrealized Losses Recorded Basis Cash and Cash Equivalents Short-term Investments Equity Investments December 31, 2019 Changes in Fair Value Recorded in Other Comprehensive Income Commercial paper Level 2 $ 3,966 $ 0 $ 0 $ 3,966 $ 1,742 $ 2,224 $ 0 Certificates of deposit Level 2 2,591 0 0 2,591 1,548 1,043 0 U.S. government securities Level 1 102,567 1,995 (105 ) 104,457 0 104,457 0 U.S. agency securities Level 2 399 0 0 399 0 399 0 Foreign government bonds Level 2 6,605 5 (10 ) 6,600 680 5,920 0 Mortgage- and asset-backed securities Level 2 3,862 12 (2 ) 3,872 0 3,872 0 Corporate notes and bonds Level 2 6,900 130 (7 ) 7,023 0 7,023 0 Corporate notes and bonds Level 3 13 0 0 13 0 13 0 Municipal securities Level 2 289 49 0 338 0 338 0 Municipal securities Level 3 78 0 0 78 0 78 0 Total debt investments $ 127,270 $ 2,191 $ (124 ) $ 129,337 $ 3,970 $ 125,367 $ 0 Changes in Fair Value Recorded in Net Income Equity investments Level 1 $ 1,074 $ 618 $ 0 $ 456 Equity investments Other 2,299 0 0 2,299 Total equity investments $ 3,373 $ 618 $ 0 $ 2,755 Cash $ 4,276 $ 4,276 $ 0 $ 0 Derivatives, net (a) 22 0 22 0 Total $ 137,008 $ 8,864 $ 125,389 $ 2,755 (In millions) Fair Value 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 December 31, 2019 U.S. government and agency securities $ 7,650 $ (97 ) $ 9,121 $ (8 ) $ 16,771 $ (105 ) Foreign government bonds 2,545 (3 ) 11 (7 ) 2,556 (10 ) Mortgage- and asset-backed securities 684 (1 ) 408 (1 ) 1,092 (2 ) Corporate notes and bonds 220 (3 ) 137 (4 ) 357 (7 ) Municipal securities 0 0 1 0 1 0 Total $ 11,099 $ (104 ) $ 9,678 $ (20 ) $ 20,777 $ (124 ) Less than 12 Months 12 Months or Greater Total (In millions) Fair Value Unrealized Fair Value Unrealized Total 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 December 31, 2019 Due in one year or less $ 40,357 $ 40,381 Due after one year through five years 48,195 49,166 Due after five years through 10 years 37,123 38,138 Due after 10 years 1,595 1,652 Total $ 127,270 $ 129,337

DERIVATIVES (Tables)

DERIVATIVES (Tables)	6 Months Ended
DERIVATIVES (Tables)	Dec. 31, 2019
Notional Amounts of Outstanding Derivative Instruments Measured in U.S. Dollar Equivalents	The following table presents the notional amounts of our outstanding derivative instruments measured in U.S. dollar equivalents: (In millions) December 31, 2019 June 30, 2019 Designated as Hedging Instruments Foreign exchange contracts purchased $ 438 $ 0 Foreign exchange contracts sold 6,440 6,034 Interest rate contracts purchased 1,187 0 Not Designated as Hedging Instruments Foreign exchange contracts purchased 11,460 14,889 Foreign exchange contracts sold 11,738 15,614 Other contracts purchased 1,715 2,007 Other contracts sold 463 456
Fair Values of Derivative Instruments	The following table presents our derivative instruments: Derivative Derivative Derivative Derivative (In millions) Assets Liabilities Assets Liabilities December 31, 2019 June 30, 2019 Designated as Hedging Instruments Foreign exchange contracts $ 33 $ (24 ) $ 0 $ (93 ) Interest rate contracts 0 (11 ) 0 0 Not Designated as Hedging Instruments Foreign exchange contracts 165 (148 ) 204 (172 ) Other contracts 33 (4 ) 46 (7 ) Gross amounts of derivatives 231 (187 ) 250 (272 ) Gross amounts of derivatives offset in the balance sheet (85 ) 86 (113 ) 114 Cash collateral received 0 (93 ) 0 (78 ) Net amounts of derivatives $ 146 $ (194 ) $ 137 $ (236 ) Reported as Short-term investments $ 22 $ 0 $ (13 ) $ 0 Other current assets 133 0 146 0 Other long-term assets (9 ) 0 4 0 Other current liabilities 0 (150 ) 0 (221 ) Other long-term liabilities 0 (44 ) 0 (15 ) Total $ 146 $ (194 ) $ 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 December 31, 2019 Derivative assets $ 1 $ 227 $ 3 $ 231 Derivative liabilities 0 (187 ) 0 (187 ) 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: Three Months Ended December 31, Six Months Ended December 31, 2019 2018 2019 2018 (In millions) Revenue Other (Expense), Revenue Other (Expense), Revenue Other Income (Expense), Net Revenue Other Income (Expense), Net Designated as Fair Value Hedging Instruments Foreign exchange contracts Derivatives $ 0 $ 23 $ 0 $ (184 ) $ 0 $ 53 $ 0 $ (62 ) Hedged items 0 (26 ) 0 184 0 (59 ) 0 62 Excluded from effectiveness assessment 0 42 0 45 0 83 0 73 Interest rate contracts Derivatives 0 (14 ) 0 0 0 (13 ) 0 0 Hedged items 0 13 0 0 0 12 0 0 Designated as Cash Flow Hedging Instruments Foreign exchange contracts Amount reclassified from accumulated other comprehensive income 0 8 88 0 0 3 180 0 Excluded from effectiveness assessment 0 0 0 (14 ) 0 0 0 (41 ) Not Designated as Hedging Instruments Foreign exchange contracts 0 52 0 (79 ) 0 (119 ) 0 (109 ) Other contracts 0 1 0 8 0 2 0 5
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) Three Months Ended December 31, Six Months Ended December 31, 2019 2018 2019 2018 Designated as Cash Flow Hedging Instruments Foreign exchange contracts Included in effectiveness assessment $ 2 $ 70 $ (4 ) $ 114

INVENTORIES (Tables)

INVENTORIES (Tables)	6 Months Ended
INVENTORIES (Tables)	Dec. 31, 2019
Inventory Disclosure [Abstract]
Components of Inventories	The components of inventories were as follows: (In millions) December 31, 2019 June 30, 2019 Raw materials $ 409 $ 399 Work in process 49 53 Finished goods 1,365 1,611 Total $ 1,823 $ 2,063

GOODWILL (Tables)

GOODWILL (Tables)	6 Months Ended
GOODWILL (Tables)	Dec. 31, 2019
Goodwill And Intangible Assets Disclosure [Abstract]
Carrying Amount of Goodwill	Changes in the carrying amount of goodwill were as follows: (In millions) June 30, 2019 Acquisitions Other December 31, 2019 Productivity and Business Processes $ 24,277 $ 7 $ (18 ) $ 24,266 Intelligent Cloud 11,351 118 19 11,488 More Personal Computing 6,398 96 0 6,494 Total $ 42,026 $ 221 $ 1 $ 42,248

INTANGIBLE ASSETS (Tables)

INTANGIBLE ASSETS (Tables)	6 Months Ended
INTANGIBLE ASSETS (Tables)	Dec. 31, 2019
Goodwill And Intangible Assets Disclosure [Abstract]
Finite-Lived Intangible Assets	The components of intangible assets, all of which are finite-lived, were as follows: (In millions) Gross Accumulated Net Gross Accumulated Net December 31, 2019 June 30, 2019 Technology-based $ 7,821 $ (6,097 ) $ 1,724 $ 7,691 $ (5,771 ) $ 1,920 Customer-related 4,673 (2,030 ) 2,643 4,709 (1,785 ) 2,924 Marketing-related 4,157 (1,453 ) 2,704 4,165 (1,327 ) 2,838 Contract-based 475 (420 ) 55 574 (506 ) 68 Total $ 17,126 $ (10,000 ) $ 7,126 $ 17,139 $ (9,389 ) $ 7,750
Estimated Future Amortization Expense Related to Intangible Assets	The following table outlines the estimated future amortization expense related to intangible assets held as of December 31, 2019: (In millions) Year Ending June 30, 2020 (excluding the six months ended December 31, 2019) $ 687 2021 1,346 2022 1,246 2023 1,088 2024 757 Thereafter 2,002 Total $ 7,126

DEBT (Tables)

DEBT (Tables)	6 Months Ended
DEBT (Tables)	Dec. 31, 2019
Debt Disclosure [Abstract]
Debt	The components of debt were as follows: (In millions, issuance Maturities (calendar year) Stated Interest Rate Effective Interest Rate December 31, 2019 June 30, 2019 2009 issuance of $3.8 billion 2039 5.20% 5.24% $ 750 $ 750 2010 issuance of $4.8 billion 2020 – 2040 3.00% – 4.50% 3.14% – 4.57% 2,000 2,000 2011 issuance of $2.3 billion 2021 – 2041 4.00% – 5.30% 4.08% – 5.36% 1,500 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 2023 – 2043 2.38% – 4.88% 2.47% – 4.92% 3,500 3,500 2013 issuance of €4.1 billion 2021 – 2033 2.13% – 3.13% 2.23% – 3.22% 4,546 4,613 2014 issuance 0 18 2015 issuance of $23.8 billion 2020 – 2055 1.85% – 4.75% 1.93% – 4.78% 22,000 22,000 2016 issuance of $19.8 billion 2021 – 2056 1.55% – 3.95% 1.64% – 4.03% 17,250 19,750 2017 issuance of $17.0 billion 2020 – 2057 1.85% – 4.50% 1.95% – 4.53% 17,000 17,000 Total face value 70,196 72,781 Unamortized discount and issuance costs (577 ) (603 ) Hedge fair value adjustments ( a ) (11 ) 0 Total debt 69,608 72,178 Current portion of long-term debt (6,247 ) (5,516 ) Long-term debt $ 63,361 $ 66,662 ( a ) Refer to Note 5 – Derivatives for further information on the interest rate swaps related to fixed-rate debt.
Maturities of Long-term Debt	The following table outlines maturities of our long-term debt for each of the next five years and thereafter as of December 31, 2019: (In millions) Year Ending June 30, 2020 (excluding the six months ended December 31, 2019) $ 3,000 2021 3,750 2022 7,964 2023 2,750 2024 5,250 Thereafter 47,482 Total $ 70,196

UNEARNED REVENUE (Tables)

UNEARNED REVENUE (Tables)	6 Months Ended
UNEARNED REVENUE (Tables)	Dec. 31, 2019
Revenue From Contract With Customer [Abstract]
Unearned Revenue by Segment	Unearned revenue by segment was as follows: (In millions) December 31, June 30, Productivity and Business Processes $ 14,266 $ 16,831 Intelligent Cloud 13,766 16,988 More Personal Computing 3,189 3,387 Total $ 31,221 $ 37,206
Changes in Unearned Revenue	Changes in unearned revenue were as follows: (In millions) Six Months Ended December 31, 2019 Balance, beginning of period $ 37,206 Deferral of revenue 31,108 Recognition of unearned revenue (37,093 ) Balance, end of period $ 31,221

LEASES (Tables)

LEASES (Tables)	6 Months Ended
LEASES (Tables)	Dec. 31, 2019
Leases [Abstract]
Components of Lease Expense	The components of lease expense were as follows: (In millions) Three Months Ended Six Months Ended 2019 2018 2019 2018 Operating lease cost $ 478 $ 413 $ 943 $ 823 Finance lease cost: Amortization of right-of-use assets $ 163 $ 84 $ 288 $ 162 Interest on lease liabilities 84 59 162 114 Total finance lease cost $ 247 $ 143 $ 450 $ 276
Supplemental Cash Flow Information Related to Leases	Supplemental cash flow information related to leases was as follows: (In millions) Three Months Ended Six Months Ended 2019 2018 2019 2018 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 479 $ 407 $ 932 $ 804 Operating cash flows from finance leases 84 59 162 114 Financing cash flows from finance leases 104 54 183 101 Right-of-use assets obtained in exchange for lease obligations: Operating leases 948 472 1,931 968 Finance leases 863 645 2,352 1,064
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) December 31, June 30, Operating Leases Operating lease right-of-use assets $ 8,439 $ 7,379 Other current liabilities $ 1,616 $ 1,515 Operating lease liabilities 7,172 6,188 Total operating lease liabilities $ 8,788 $ 7,703 Finance Leases Property and equipment, at cost $ 9,403 $ 7,041 Accumulated depreciation (1,062 ) (774 ) Property and equipment, net $ 8,341 $ 6,267 Other current liabilities $ 464 $ 317 Other long-term liabilities 8,287 6,257 Total finance lease liabilities $ 8,751 $ 6,574 Weighted Average Remaining Lease Term Operating leases 7 years 7 years Finance leases 13 years 13 years Weighted Average Discount Rate Operating leases 2.8% 3.0% Finance leases 4.1% 4.6%
Maturities of Lease Liabilities	Maturities of lease liabilities were as follows: (In millions) Year Ending June 30, Operating Leases Finance Leases 2020 (excluding the six months ended December 31, 2019) $ 966 $ 393 2021 1,705 804 2022 1,507 819 2023 1,306 827 2024 1,084 838 Thereafter 3,394 7,619 Total lease payments 9,962 11,300 Less imputed interest (1,174 ) (2,549 ) Total $ 8,788 $ 8,751

STOCKHOLDERS' EQUITY (Tables)

STOCKHOLDERS' EQUITY (Tables)	6 Months Ended
STOCKHOLDERS' EQUITY (Tables)	Dec. 31, 2019
Equity [Abstract]
Share Repurchases	We repurchased the following shares of common stock under the share repurchase program: (In millions) Shares Amount Shares Amount Fiscal Year 2020 2019 First Quarter 29 $ 4,000 24 $ 2,600 Second Quarter 32 4,600 57 6,100 Total 61 $ 8,600 81 $ 8,700
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 3,881 Total $ 1.02 $ 7,767 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 Total $ 0.92 $ 7,070

ACCUMULATED OTHER COMPREHENSI_2

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)	6 Months Ended
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)	Dec. 31, 2019
Equity [Abstract]
Summary of Changes in Accumulated Other Comprehensive Income (Loss) by Component	The following table summarizes the changes in accumulated other comprehensive income (loss) by component: (In millions) Three Months Ended Six Months Ended December 31, 2019 2018 2019 2018 Derivatives Balance, beginning of period $ (2 ) $ 128 $ 0 $ 173 Unrealized gains (losses), net of tax of $1 $(1), 2 71 (4 ) 115 Reclassification adjustments for gains included in earnings (8 ) (88 ) (3 ) (180 ) Tax expense included in provision for income taxes 2 2 1 5 Amounts reclassified from accumulated other comprehensive income (loss) (6 ) (86 ) (2 ) (175 ) Net change related to derivatives, net of tax of $(1), $(2) (4 ) (15 ) (6 ) (60 ) Balance, end of period $ (6 ) $ 113 $ (6 ) $ 113 Investments Balance, beginning of period $ 2,065 $ (1,178 ) $ 1,488 $ (850 ) Unrealized gains (losses), net of tax of $(111) $45 (414 ) 879 162 556 Reclassification adjustments for (gains) losses included in other income (expense), net (7 ) 2 (6 ) 80 Tax expense (benefit) included in provision for income taxes 1 0 1 (16 ) Amounts reclassified from accumulated other comprehensive income (loss) (6 ) 2 (5 ) 64 Net change related to investments, net of tax of $(112) $44 (420 ) 881 157 620 Cumulative effect of accounting changes 0 0 0 (67 ) Balance, end of period $ 1,645 $ (297 ) $ 1,645 $ (297 ) Translation Adjustments and Other Balance, beginning of period $ (2,124 ) $ (1,565 ) $ (1,828 ) $ (1,510 ) Translation adjustments and other, net of tax of $0 $(1) $(8) , 230 (264 ) (66 ) (319 ) Balance, end of period $ (1,894 ) $ (1,829 ) $ (1,894 ) $ (1,829 ) Accumulated other comprehensive loss, end of period $ (255 ) $ (2,013 ) $ (255 ) $ (2,013 )

SEGMENT INFORMATION AND GEOGR_2

SEGMENT INFORMATION AND GEOGRAPHIC DATA (Tables)	6 Months Ended
SEGMENT INFORMATION AND GEOGRAPHIC DATA (Tables)	Dec. 31, 2019
Segment Reporting [Abstract]
Segment Revenue	Segment revenue and operating income were as follows during the periods presented: (In millions) Three Months Ended Six Months Ended 2019 2018 2019 2018 Revenue Productivity and Business Processes $ 11,826 $ 10,100 $ 22,903 $ 19,871 Intelligent Cloud 11,869 9,378 22,714 17,945 More Personal Computing 13,211 12,993 24,344 23,739 Total $ 36,906 $ 32,471 $ 69,961 $ 61,555 Operating Income Productivity and Business Processes $ 5,182 $ 4,015 $ 9,964 $ 7,896 Intelligent Cloud 4,531 3,279 8,420 6,210 More Personal Computing 4,178 2,964 8,193 6,107 Total $ 13,891 $ 10,258 $ 26,577 $ 20,213
Segment Operating Income (Loss)	Segment revenue and operating income were as follows during the periods presented: (In millions) Three Months Ended Six Months Ended 2019 2018 2019 2018 Revenue Productivity and Business Processes $ 11,826 $ 10,100 $ 22,903 $ 19,871 Intelligent Cloud 11,869 9,378 22,714 17,945 More Personal Computing 13,211 12,993 24,344 23,739 Total $ 36,906 $ 32,471 $ 69,961 $ 61,555 Operating Income Productivity and Business Processes $ 5,182 $ 4,015 $ 9,964 $ 7,896 Intelligent Cloud 4,531 3,279 8,420 6,210 More Personal Computing 4,178 2,964 8,193 6,107 Total $ 13,891 $ 10,258 $ 26,577 $ 20,213
Revenue Classified by Major Geographic Areas	Revenue, classified by the major geographic areas in which our customers were located, was as follows: (In millions) Three Months Ended Six Months Ended 2019 2018 2019 2018 United States (a) $ 19,149 $ 16,787 $ 36,419 $ 31,527 Other countries 17,757 15,684 33,542 30,028 Total $ 36,906 $ 32,471 $ 69,961 $ 61,555 (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) Three Months Ended Six Months Ended 2019 2018 2019 2018 Server products and cloud services $ 10,119 $ 7,791 $ 19,311 $ 14,849 Office products and cloud services 8,983 7,747 17,449 15,369 Windows 5,593 4,758 10,946 9,659 Gaming 3,327 4,232 5,869 6,970 Search advertising 2,163 1,976 4,154 3,764 LinkedIn 2,102 1,693 4,011 3,223 Devices 2,048 1,948 3,250 3,209 Enterprise Services 1,612 1,521 3,157 2,971 Other 959 805 1,814 1,541 Total $ 36,906 $ 32,471 $ 69,961 $ 61,555 Our commercial cloud revenue, which includes Office 365 Commercial , Azure, the commercial portion of LinkedIn, Dynamics 365, and other commercial cloud properties, was $ 12.5 billion and $ 24.1 billion for the three and six months ended December 31 , 201 9 , respectively, and $ 9.0 billion and $ 17.5 billion for the three and six months ended December 31, 2018 , respectively. These amounts are primarily included in Office products and cloud services , Server products and cloud services , and LinkedIn in the table above.

Accounting Policies - Additiona

Accounting Policies - Additional Information (Detail) - USD ($) $ in Billions	Dec. 31, 2019	Jun. 30, 2019
Accounting Policies [Abstract]
Long-term accounts receivable, net of allowance for doubtful accounts	$ 2.4	$ 2.2

Basic and Diluted Earnings Per

Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Earnings Per Share Basic And Diluted [Abstract]
Net income available for common shareholders (A)	$ 11,649	$ 8,420	$ 22,327	$ 17,244
Weighted average outstanding shares of common stock (B)	7,621	7,692	7,628	7,683
Dilutive effect of stock-based awards	70	76	73	84
Common stock and common stock equivalents (C)	7,691	7,768	7,701	7,767
Earnings Per Share
Basic (A/B)	$ 1.53	$ 1.09	$ 2.93	$ 2.24
Diluted (A/C)	$ 1.51	$ 1.08	$ 2.90	$ 2.22

Components of Other Income (Exp

Components of Other Income (Expense), Net (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Other Income And Expenses [Abstract]
Interest and dividends income	$ 688	$ 704	$ 1,412	$ 1,385
Interest expense	(654)	(672)	(1,291)	(1,346)
Net recognized gains on investments	162	94	105	337
Net gains on derivatives	41	41	87	38
Net losses on foreign currency remeasurements	(24)	(74)	(82)	(69)
Other, net	(19)	34	(37)	48
Total	$ 194	$ 127	$ 194	$ 393

Net Recognized Gains (Losses) o

Net Recognized Gains (Losses) on Debt Investments (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 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	$ 14	$ 6	$ 21	$ 13
Realized losses from sales of available-for-sale securities	(6)	(5)	(10)	(90)
Total	162	94	105	337
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	(1)	(7)	(5)	(7)
Total	$ 7	$ (6)	$ 6	$ (84)

Net Recognized Gains (Losses)_2

Net Recognized Gains (Losses) on Equity Investments (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 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	$ 53	$ 30	$ 75	$ 233
Net unrealized gains on investments still held	111	73	55	191
Total	162	94	105	337
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	(9)	(3)	(31)	(3)
Total	$ 155	$ 100	$ 99	$ 421

Investment Components (Detail)

Investment Components (Detail) - USD ($) $ in Millions		Dec. 31, 2019	Jun. 30, 2019
Cash, Cash Equivalents and Investments [Line Items]
Debt investments, Cost Basis		$ 127,270
Debt investments, Recorded Basis		129,337
Derivative, net		146	$ 137
Cash and cash equivalents		8,864	11,356
Short-term Investments		125,389	122,463
Equity Investments		2,755	2,649
Cash, cash equivalents, and investments		137,008	136,468
Equity investments
Cash, Cash Equivalents and Investments [Line Items]
Equity investments, Recorded Basis		3,373	3,058
Cash and cash equivalents		618	409
Short-term Investments		0	0
Equity Investments		2,755	2,649
Equity investments \| Other
Cash, Cash Equivalents and Investments [Line Items]
Equity investments, Recorded Basis		2,299	2,085
Cash and cash equivalents		0	0
Short-term Investments		0	0
Equity Investments		2,299	2,085
Equity investments \| Level 1
Cash, Cash Equivalents and Investments [Line Items]
Equity investments, Recorded Basis		1,074	973
Cash and cash equivalents		618	409
Short-term Investments		0	0
Equity Investments		456	564
Cash
Cash, Cash Equivalents and Investments [Line Items]
Cash		4,276	3,771
Cash and cash equivalents		4,276	3,771
Short-term Investments		0	0
Equity Investments		0	0
Derivatives, net
Cash, Cash Equivalents and Investments [Line Items]
Derivative, net	[1]	22	(13)
Cash and cash equivalents	[1]	0	0
Short-term Investments	[1]	22	(13)
Equity Investments	[1]	0	0
Debt investments
Cash, Cash Equivalents and Investments [Line Items]
Debt investments, Cost Basis		127,270	127,747
Debt investments, Unrealized Gains		2,191	2,027
Debt investments, Unrealized Losses		(124)	(122)
Debt investments, Recorded Basis		129,337	129,652
Cash and cash equivalents		3,970	7,176
Short-term Investments		125,367	122,476
Equity Investments		0	0
Debt investments \| Commercial Paper \| Level 2
Cash, Cash Equivalents and Investments [Line Items]
Debt investments, Cost Basis		3,966	2,211
Debt investments, Unrealized Gains		0	0
Debt investments, Unrealized Losses		0	0
Debt investments, Recorded Basis		3,966	2,211
Cash and cash equivalents		1,742	1,773
Short-term Investments		2,224	438
Equity Investments		0	0
Debt investments \| Certificates of deposit \| Level 2
Cash, Cash Equivalents and Investments [Line Items]
Debt investments, Cost Basis		2,591	2,018
Debt investments, Unrealized Gains		0	0
Debt investments, Unrealized Losses		0	0
Debt investments, Recorded Basis		2,591	2,018
Cash and cash equivalents		1,548	1,430
Short-term Investments		1,043	588
Equity Investments		0	0
Debt investments \| U.S. government securities \| Level 1
Cash, Cash Equivalents and Investments [Line Items]
Debt investments, Cost Basis		102,567	104,925
Debt investments, Unrealized Gains		1,995	1,854
Debt investments, Unrealized Losses		(105)	(104)
Debt investments, Recorded Basis		104,457	106,675
Cash and cash equivalents		0	769
Short-term Investments		104,457	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		399	988
Debt investments, Unrealized Gains		0	0
Debt investments, Unrealized Losses		0	0
Debt investments, Recorded Basis		399	988
Cash and cash equivalents		0	698
Short-term Investments		399	290
Equity Investments		0	0
Debt investments \| Foreign government bonds \| Level 2
Cash, Cash Equivalents and Investments [Line Items]
Debt investments, Cost Basis		6,605	6,350
Debt investments, Unrealized Gains		5	4
Debt investments, Unrealized Losses		(10)	(8)
Debt investments, Recorded Basis		6,600	6,346
Cash and cash equivalents		680	2,506
Short-term Investments		5,920	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		3,862	3,554
Debt investments, Unrealized Gains		12	10
Debt investments, Unrealized Losses		(2)	(3)
Debt investments, Recorded Basis		3,872	3,561
Cash and cash equivalents		0	0
Short-term Investments		3,872	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		6,900	7,437
Debt investments, Unrealized Gains		130	111
Debt investments, Unrealized Losses		(7)	(7)
Debt investments, Recorded Basis		7,023	7,541
Cash and cash equivalents		0	0
Short-term Investments		7,023	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		13	15
Debt investments, Unrealized Gains		0	0
Debt investments, Unrealized Losses		0	0
Debt investments, Recorded Basis		13	15
Cash and cash equivalents		0	0
Short-term Investments		13	15
Equity Investments		0	0
Debt investments \| Municipal securities \| Level 2
Cash, Cash Equivalents and Investments [Line Items]
Debt investments, Cost Basis		289	242
Debt investments, Unrealized Gains		49	48
Debt investments, Unrealized Losses		0	0
Debt investments, Recorded Basis		338	290
Cash and cash equivalents		0	0
Short-term Investments		338	290
Equity Investments		0	0
Debt investments \| Municipal securities \| Level 3
Cash, Cash Equivalents and Investments [Line Items]
Debt investments, Cost Basis		78	7
Debt investments, Unrealized Gains		0	0
Debt investments, Unrealized Losses		0	0
Debt investments, Recorded Basis		78	7
Cash and cash equivalents		0	0
Short-term Investments		78	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	Dec. 31, 2019	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	$ 1.3	$ 1.2

Unrealized Losses on Debt Inves

Unrealized Losses on Debt Investments (Detail) - USD ($) $ in Millions	Dec. 31, 2019	Jun. 30, 2019
Unrealized Losses on Investments [Line Items]
Less than 12 Months - Fair Value	$ 11,099	$ 2,678
Less than 12 Months - Unrealized Losses	(104)	(5)
12 Months or Greater - Fair Value	9,678	39,989
12 Months or Greater - Unrealized Losses	(20)	(117)
Total Fair Value	20,777	42,667
Total Unrealized Losses	(124)	(122)
U.S. government and agency securities
Unrealized Losses on Investments [Line Items]
Less than 12 Months - Fair Value	7,650	1,491
Less than 12 Months - Unrealized Losses	(97)	(1)
12 Months or Greater - Fair Value	9,121	39,158
12 Months or Greater - Unrealized Losses	(8)	(103)
Total Fair Value	16,771	40,649
Total Unrealized Losses	(105)	(104)
Foreign government bonds
Unrealized Losses on Investments [Line Items]
Less than 12 Months - Fair Value	2,545	25
Less than 12 Months - Unrealized Losses	(3)	0
12 Months or Greater - Fair Value	11	77
12 Months or Greater - Unrealized Losses	(7)	(8)
Total Fair Value	2,556	102
Total Unrealized Losses	(10)	(8)
Mortgage- and asset-backed securities
Unrealized Losses on Investments [Line Items]
Less than 12 Months - Fair Value	684	664
Less than 12 Months - Unrealized Losses	(1)	(1)
12 Months or Greater - Fair Value	408	378
12 Months or Greater - Unrealized Losses	(1)	(2)
Total Fair Value	1,092	1,042
Total Unrealized Losses	(2)	(3)
Corporate notes and bonds
Unrealized Losses on Investments [Line Items]
Less than 12 Months - Fair Value	220	498
Less than 12 Months - Unrealized Losses	(3)	(3)
12 Months or Greater - Fair Value	137	376
12 Months or Greater - Unrealized Losses	(4)	(4)
Total Fair Value	357	874
Total Unrealized Losses	(7)	$ (7)
Municipal securities
Unrealized Losses on Investments [Line Items]
Less than 12 Months - Fair Value	0
Less than 12 Months - Unrealized Losses	0
12 Months or Greater - Fair Value	1
12 Months or Greater - Unrealized Losses	0
Total Fair Value	1
Total Unrealized Losses	$ 0

Debt Investment Maturities (Det

Debt Investment Maturities (Detail) $ in Millions	Dec. 31, 2019USD ($)
Cost Basis
Due in one year or less	$ 40,357
Due after one year through five years	48,195
Due after five years through 10 years	37,123
Due after 10 years	1,595
Debt investments, Cost Basis	127,270
Estimated Fair Value
Due in one year or less	40,381
Due after one year through five years	49,166
Due after five years through 10 years	38,138
Due after 10 years	1,652
Total	$ 129,337

Derivatives - Additional Inform

Derivatives - Additional Information (Detail) - USD ($)	6 Months Ended
Derivatives - Additional Information (Detail) - USD ($)	Dec. 31, 2019	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	227,000,000	$ 247,000,000
Gross amounts of derivative liabilities, elected to offset	$ 187,000,000	$ 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	Dec. 31, 2019	Jun. 30, 2019
Designated as Hedging Instruments \| Foreign Exchange Contracts \| Derivatives Purchased
Derivative [Line Items]
Notional amounts	$ 438	$ 0
Designated as Hedging Instruments \| Foreign Exchange Contracts \| Derivatives Sold
Derivative [Line Items]
Notional amounts	6,440	6,034
Designated as Hedging Instruments \| Interest Rate Contracts \| Derivatives Purchased
Derivative [Line Items]
Notional amounts	1,187	0
Not Designated as Hedging Instruments \| Foreign Exchange Contracts \| Derivatives Purchased
Derivative [Line Items]
Notional amounts	11,460	14,889
Not Designated as Hedging Instruments \| Foreign Exchange Contracts \| Derivatives Sold
Derivative [Line Items]
Notional amounts	11,738	15,614
Not Designated as Hedging Instruments \| Other Contracts \| Derivatives Purchased
Derivative [Line Items]
Notional amounts	1,715	2,007
Not Designated as Hedging Instruments \| Other Contracts \| Derivatives Sold
Derivative [Line Items]
Notional amounts	$ 463	$ 456

Fair Values of Derivative Instr

Fair Values of Derivative Instruments (Detail) - USD ($) $ in Millions	Dec. 31, 2019	Jun. 30, 2019
Derivatives Fair Value [Line Items]
Derivative Assets	$ 231	$ 250
Gross amounts of derivatives offset in the balance sheet, assets	(85)	(113)
Cash collateral received, assets	0	0
Net amounts of derivatives, assets	146	137
Derivative Liabilities	(187)	(272)
Gross amounts of derivatives offset in the balance sheet, liabilities	86	114
Cash collateral received, liabilities	(93)	(78)
Net amounts of derivatives, liabilities	(194)	(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	227	247
Derivative Liabilities	(187)	(272)
Level 3
Derivatives Fair Value [Line Items]
Derivative Assets	3	3
Derivative Liabilities	0	0
Designated as Hedging Instruments \| Interest Rate Contracts
Derivatives Fair Value [Line Items]
Derivative Assets	0	0
Derivative Liabilities	(11)	0
Designated as Hedging Instruments \| Foreign Exchange Contracts
Derivatives Fair Value [Line Items]
Derivative Assets	33	0
Derivative Liabilities	(24)	(93)
Not Designated as Hedging Instruments \| Foreign Exchange Contracts
Derivatives Fair Value [Line Items]
Derivative Assets	165	204
Derivative Liabilities	(148)	(172)
Not Designated as Hedging Instruments \| Other Contracts
Derivatives Fair Value [Line Items]
Derivative Assets	33	46
Derivative Liabilities	(4)	(7)
Short-term Investments
Derivatives Fair Value [Line Items]
Net amounts of derivatives, assets	22	(13)
Other Current Assets
Derivatives Fair Value [Line Items]
Net amounts of derivatives, assets	133	146
Other Long-term Assets
Derivatives Fair Value [Line Items]
Net amounts of derivatives, assets	(9)	4
Other Current Liabilities
Derivatives Fair Value [Line Items]
Net amounts of derivatives, liabilities	(150)	(221)
Other Long-term Liabilities
Derivatives Fair Value [Line Items]
Net amounts of derivatives, liabilities	$ (44)	$ (15)

Gains (Losses) on Derivative In

Gains (Losses) on Derivative Instruments Recognized on Consolidated Income Statements (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Revenue \| Foreign Exchange Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Gains (Losses) on Derivatives Not Designated as Hedges	$ 0	$ 0	$ 0	$ 0
Revenue \| Other Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Gains (Losses) on Derivatives Not Designated as Hedges	0	0	0	0
Other Income (Expense), Net \| Foreign Exchange Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Gains (Losses) on Derivatives Not Designated as Hedges	52	(79)	(119)	(109)
Other Income (Expense), Net \| Other Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Gains (Losses) on Derivatives Not Designated as Hedges	1	8	2	5
Fair Value Hedges \| Revenue \| Foreign Exchange Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Derivatives	0	0	0	0
Hedged items	0	0	0	0
Excluded from effectiveness assessment	0	0	0	0
Fair Value Hedges \| Revenue \| Interest Rate Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Derivatives	0	0	0	0
Hedged items	0	0	0	0
Fair Value Hedges \| Other Income (Expense), Net \| Foreign Exchange Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Derivatives	23	(184)	53	(62)
Hedged items	(26)	184	(59)	62
Excluded from effectiveness assessment	42	45	83	73
Fair Value Hedges \| Other Income (Expense), Net \| Interest Rate Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Derivatives	(14)	0	(13)	0
Hedged items	13	0	12	0
Cash Flow Hedges \| Revenue \| Foreign Exchange Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Amount reclassified from accumulated other comprehensive income	0	88	0	180
Excluded from effectiveness assessment	0	0	0	0
Cash Flow Hedges \| Other Income (Expense), Net \| Foreign Exchange Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Amount reclassified from accumulated other comprehensive income	8	0	3	0
Excluded from effectiveness assessment	$ 0	$ (14)	$ 0	$ (41)

Gains (Losses), Net of Tax, on

Gains (Losses), Net of Tax, on Derivative Instruments Recognized on Consolidated Comprehensive Income Statements (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Cash Flow Hedges \| Foreign Exchange Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Included in effectiveness assessment	$ 2	$ 70	$ (4)	$ 114

Components of Inventories (Deta

Components of Inventories (Detail) - USD ($) $ in Millions	Dec. 31, 2019	Jun. 30, 2019
Inventory Disclosure [Abstract]
Raw materials	$ 409	$ 399
Work in process	49	53
Finished goods	1,365	1,611
Total	$ 1,823	$ 2,063

Carrying Amount of Goodwill (De

Carrying Amount of Goodwill (Detail) $ in Millions	6 Months Ended
Carrying Amount of Goodwill (Detail) $ in Millions	Dec. 31, 2019USD ($)
Goodwill [Line Items]
Beginning Balance	$ 42,026
Acquisitions	221
Other	1
Ending Balance	42,248
Productivity and Business Processes
Goodwill [Line Items]
Beginning Balance	24,277
Acquisitions	7
Other	(18)
Ending Balance	24,266
Intelligent Cloud
Goodwill [Line Items]
Beginning Balance	11,351
Acquisitions	118
Other	19
Ending Balance	11,488
More Personal Computing
Goodwill [Line Items]
Beginning Balance	6,398
Acquisitions	96
Other	0
Ending Balance	$ 6,494

Finite-Lived Intangible Assets

Finite-Lived Intangible Assets (Detail) - USD ($) $ in Millions	Dec. 31, 2019	Jun. 30, 2019
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 17,126	$ 17,139
Accumulated Amortization	(10,000)	(9,389)
Net Carrying Amount	7,126	7,750
Technology-based
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	7,821	7,691
Accumulated Amortization	(6,097)	(5,771)
Net Carrying Amount	1,724	1,920
Customer-related
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	4,673	4,709
Accumulated Amortization	(2,030)	(1,785)
Net Carrying Amount	2,643	2,924
Marketing-related
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	4,157	4,165
Accumulated Amortization	(1,453)	(1,327)
Net Carrying Amount	2,704	2,838
Contract-based
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	475	574
Accumulated Amortization	(420)	(506)
Net Carrying Amount	$ 55	$ 68

Intangible Assets - Additional

Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Goodwill And Intangible Assets Disclosure [Abstract]
Intangible assets amortization expense	$ 411	$ 530	$ 845	$ 1,100

Estimated Future Amortization E

Estimated Future Amortization Expense Related to Intangible Assets (Detail) - USD ($) $ in Millions	Dec. 31, 2019	Jun. 30, 2019
Goodwill And Intangible Assets Disclosure [Abstract]
Year Ending June 30, 2020 (excluding the six months ended December 31, 2019)	$ 687
Year Ending June 30, 2021	1,346
Year Ending June 30, 2022	1,246
Year Ending June 30, 2023	1,088
Year Ending June 30, 2024	757
Thereafter	2,002
Net Carrying Amount	$ 7,126	$ 7,750

Debt (Detail)

Debt (Detail) - USD ($) $ in Millions		6 Months Ended
Debt (Detail) - USD ($) $ in Millions		Dec. 31, 2019	Jun. 30, 2019
Debt Instrument [Line Items]
Total face value		$ 70,196	$ 72,781
Unamortized discount and issuance costs		(577)	(603)
Hedge fair value adjustments	[1]	(11)	0
Total debt		69,608	72,178
Current portion of long-term debt		(6,247)	(5,516)
Long-term debt		$ 63,361	66,662
2009 Issuance of $3.8 billion
Debt Instrument [Line Items]
Maturities (calendar year)		2039
Stated Interest Rate		5.20%
Effective Interest Rate		5.24%
Total face value		$ 750	750
2010 Issuance of $4.8 billion
Debt Instrument [Line Items]
Total face value		$ 2,000	2,000
2010 Issuance of $4.8 billion \| Minimum
Debt Instrument [Line Items]
Maturities (calendar year)		2020
Stated Interest Rate		3.00%
Effective Interest Rate		3.14%
2010 Issuance of $4.8 billion \| Maximum
Debt Instrument [Line Items]
Maturities (calendar year)		2040
Stated Interest Rate		4.50%
Effective Interest Rate		4.57%
2011 Issuance of $2.3 billion
Debt Instrument [Line Items]
Total face value		$ 1,500	1,500
2011 Issuance of $2.3 billion \| Minimum
Debt Instrument [Line Items]
Maturities (calendar year)		2021
Stated Interest Rate		4.00%
Effective Interest Rate		4.08%
2011 Issuance of $2.3 billion \| Maximum
Debt Instrument [Line Items]
Maturities (calendar year)		2041
Stated Interest Rate		5.30%
Effective Interest Rate		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		$ 3,500	3,500
2013 Issuance of $5.2 billion \| Minimum
Debt Instrument [Line Items]
Maturities (calendar year)		2023
Stated Interest Rate		2.38%
Effective Interest Rate		2.47%
2013 Issuance of $5.2 billion \| Maximum
Debt Instrument [Line Items]
Maturities (calendar year)		2043
Stated Interest Rate		4.88%
Effective Interest Rate		4.92%
2013 Issuance of €4.1 billion
Debt Instrument [Line Items]
Total face value		$ 4,546	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		$ 22,000	22,000
2015 Issuance of $23.8 billion \| Minimum
Debt Instrument [Line Items]
Maturities (calendar year)		2020
Stated Interest Rate		1.85%
Effective Interest Rate		1.93%
2015 Issuance of $23.8 billion \| Maximum
Debt Instrument [Line Items]
Maturities (calendar year)		2055
Stated Interest Rate		4.75%
Effective Interest Rate		4.78%
2016 Issuance of $19.8 billion
Debt Instrument [Line Items]
Total face value		$ 17,250	19,750
2016 Issuance of $19.8 billion \| Minimum
Debt Instrument [Line Items]
Maturities (calendar year)		2021
Stated Interest Rate		1.55%
Effective Interest Rate		1.64%
2016 Issuance of $19.8 billion \| Maximum
Debt Instrument [Line Items]
Maturities (calendar year)		2056
Stated Interest Rate		3.95%
Effective Interest Rate		4.03%
2017 Issuance of $17.0 billion
Debt Instrument [Line Items]
Total face value		$ 17,000	$ 17,000
2017 Issuance of $17.0 billion \| Minimum
Debt Instrument [Line Items]
Maturities (calendar year)		2020
Stated Interest Rate		1.85%
Effective Interest Rate		1.95%
2017 Issuance of $17.0 billion \| Maximum
Debt Instrument [Line Items]
Maturities (calendar year)		2057
Stated Interest Rate		4.50%
Effective Interest Rate		4.53%

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

Debt (Parenthetical) (Detail)

Debt (Parenthetical) (Detail) - 6 months ended Dec. 31, 2019 € 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

Debt - Additional Information (

Debt - Additional Information (Detail) - USD ($) $ in Billions	Dec. 31, 2019	Jun. 30, 2019
Debt Disclosure [Abstract]
Long-term debt fair value	$ 78	$ 78.9

Maturities of Long-term Debt (D

Maturities of Long-term Debt (Detail) - USD ($) $ in Millions	Dec. 31, 2019	Jun. 30, 2019
Debt Disclosure [Abstract]
Year Ending June 30, 2020 (excluding the six months ended December 31, 2019)	$ 3,000
Year Ending June 30, 2021	3,750
Year Ending June 30, 2022	7,964
Year Ending June 30, 2023	2,750
Year Ending June 30, 2024	5,250
Thereafter	47,482
Total	$ 70,196	$ 72,781

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Jun. 30, 2019
Income Taxes [Line Items]
TCJA, adjustment to provisional net charge for income taxes		$ 157
Effective tax rate	17.00%	19.00%	17.00%	16.00%
Long-term income taxes	$ 28,754		$ 28,754		$ 29,612
Unrecognized Tax Benefits and Other Income Tax Liabilities
Income Taxes [Line Items]
Long-term income taxes	$ 16,000		$ 16,000		$ 15,300

Income Taxes - Additional Inf_2

Income Taxes - Additional Information Regarding Examinations (Detail)	6 Months Ended	12 Months Ended
	Dec. 31, 2019	Jun. 30, 2018	Jun. 30, 2016	Jun. 30, 2011
Earliest Tax Year \| Foreign Country
Income Tax Examination [Line Items]
Tax years subject to examination	1996
Latest Tax Year \| Foreign Country
Income Tax Examination [Line Items]
Tax years subject to examination	2019
Internal Revenue Service (IRS) \| Earliest Tax Year
Income Tax Examination [Line Items]
Tax years under audit		2010	2007	2004
Tax years subject to examination	2014
Internal Revenue Service (IRS) \| Latest Tax Year
Income Tax Examination [Line Items]
Tax years under audit		2013	2009	2006
Tax years subject to examination	2017

Unearned Revenue by Segment (De

Unearned Revenue by Segment (Detail) - USD ($) $ in Millions	Dec. 31, 2019	Jun. 30, 2019
Contract With Customer Liability [Line Items]
Unearned revenue	$ 31,221	$ 37,206
Productivity and Business Processes
Contract With Customer Liability [Line Items]
Unearned revenue	14,266	16,831
Intelligent Cloud
Contract With Customer Liability [Line Items]
Unearned revenue	13,766	16,988
More Personal Computing
Contract With Customer Liability [Line Items]
Unearned revenue	$ 3,189	$ 3,387

Changes in Unearned Revenue (De

Changes in Unearned Revenue (Detail) $ in Millions	6 Months Ended
Changes in Unearned Revenue (Detail) $ in Millions	Dec. 31, 2019USD ($)
Revenue From Contract With Customer [Abstract]
Balance, beginning of period	$ 37,206
Deferral of revenue	31,108
Recognition of unearned revenue	(37,093)
Balance, end of period	$ 31,221

Unearned Revenue - Additional I

Unearned Revenue - Additional Information (Detail) $ in Billions	Dec. 31, 2019USD ($)
Contract With Customer Liability [Line Items]
Revenue allocated to remaining performance obligations	$ 93
Commercial Customers
Contract With Customer Liability [Line Items]
Revenue allocated to remaining performance obligations	$ 90

Unearned Revenue - Remaining Pe

Unearned Revenue - Remaining Performance Obligation - Additional Information (Detail) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-01-01	Dec. 31, 2019
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]
Revenue allocated to remaining performance obligations, percentage of revenue expected to be recognized	50.00%
Revenue allocated to remaining performance obligations, expected timing of satisfaction	12 months

Leases - Additional Information

Leases - Additional Information (Detail) $ in Billions	6 Months Ended
Leases - Additional Information (Detail) $ in Billions	Dec. 31, 2019USD ($)
Operating Lease
Leases [Line Items]
Additional leases, primarily for datacenters, that have not yet commenced	$ 2.4
Finance Lease
Leases [Line Items]
Additional leases, primarily for datacenters, that have not yet commenced	$ 4.2
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	3 Months Ended		6 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Leases [Abstract]
Operating lease cost	$ 478	$ 413	$ 943	$ 823
Finance lease cost:
Amortization of right-of-use assets	163	84	288	162
Interest on lease liabilities	84	59	162	114
Total finance lease cost	$ 247	$ 143	$ 450	$ 276

Supplemental Cash Flow Informat

Supplemental Cash Flow Information Related to Leases (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 479	$ 407	$ 932	$ 804
Operating cash flows from finance leases	84	59	162	114
Financing cash flows from finance leases	104	54	183	101
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	948	472	1,931	968
Finance leases	$ 863	$ 645	$ 2,352	$ 1,064

Supplemental Balance Sheet Info

Supplemental Balance Sheet Information Related to Leases (Detail) - USD ($) $ in Millions	Dec. 31, 2019	Jun. 30, 2019
Operating Leases
Operating lease right-of-use assets	$ 8,439	$ 7,379
Total operating lease liabilities	8,788	7,703
Finance Leases
Accumulated depreciation	(39,597)	(35,330)
Property and equipment, net	40,522	36,477
Total finance lease liabilities	$ 8,751	$ 6,574
Weighted Average Remaining Lease Term
Operating leases	7 years	7 years
Finance leases	13 years	13 years
Weighted Average Discount Rate
Operating leases	2.80%	3.00%
Finance leases	4.10%	4.60%
Finance Lease
Finance Leases
Property and equipment, at cost	$ 9,403	$ 7,041
Accumulated depreciation	(1,062)	(774)
Property and equipment, net	8,341	6,267
Other Current Liabilities
Operating Leases
Total operating lease liabilities	1,616	1,515
Finance Leases
Total finance lease liabilities	464	317
Operating Lease Liabilities
Operating Leases
Total operating lease liabilities	7,172	6,188
Other Long-term Liabilities
Finance Leases
Total finance lease liabilities	$ 8,287	$ 6,257

Maturities of Lease Liabilities

Maturities of Lease Liabilities (Detail) - USD ($) $ in Millions	Dec. 31, 2019	Jun. 30, 2019
Leases [Abstract]
Operating Leases, Year Ending June 30, 2020 (excluding the six months ended December 31, 2019)	$ 966
Operating Leases, Year Ending June 30, 2021	1,705
Operating Leases, Year Ending June 30, 2022	1,507
Operating Leases, Year Ending June 30, 2023	1,306
Operating Leases, Year Ending June 30, 2024	1,084
Operating Leases, Thereafter	3,394
Operating Leases, Total lease payments	9,962
Operating Leases, Less imputed interest	(1,174)
Operating Leases	8,788	$ 7,703
Finance Leases, Year Ending June 30, 2020 (excluding the six months ended December 31, 2019)	393
Finance Leases, Year Ending June 30, 2021	804
Finance Leases, Year Ending June 30, 2022	819
Finance Leases, Year Ending June 30, 2023	827
Finance Leases, Year Ending June 30, 2024	838
Finance Leases, Thereafter	7,619
Finance Leases, Total lease payments	11,300
Finance Leases, Less imputed interest	(2,549)
Finance Leases	$ 8,751	$ 6,574

Contingencies - Additional Info

Contingencies - Additional Information (Detail) $ in Millions	Dec. 31, 2019USD ($)
Commitments And Contingencies Disclosure [Abstract]
Accrual for disclosed loss contingencies, current, ending balance	$ 319
Amount not accrued for estimated maximum losses for disclosed loss contingencies	$ 900

Stockholders' Equity - Addition

Stockholders' Equity - Additional Information (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 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	$ 551,000,000	$ 313,000,000	$ 1,500,000,000	$ 1,500,000,000
Share Repurchase Program 2016
Share Repurchases [Line Items]
Amount available for repurchase under the share repurchase program approved by the company's Board of Directors						$ 40,000,000,000
Unused amount of share repurchase program	$ 2,800,000,000		$ 2,800,000,000
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

Share Repurchases (Detail)

Share Repurchases (Detail) - Share Repurchase Program 2016 - USD ($) shares in Millions, $ in Millions	3 Months Ended				6 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Dec. 31, 2018	Sep. 30, 2018	Dec. 31, 2019	Dec. 31, 2018
Share Repurchases [Line Items]
Shares of common stock repurchased	32	29	57	24	61	81
Value of common stock repurchased	$ 4,600	$ 4,000	$ 6,100	$ 2,600	$ 8,600	$ 8,700

Dividends Declared (Detail)

Dividends Declared (Detail) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended				6 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Dec. 31, 2018	Sep. 30, 2018	Dec. 31, 2019	Dec. 31, 2018
Equity [Abstract]
Declaration Date	Dec. 4, 2019	Sep. 18, 2019	Nov. 28, 2018	Sep. 18, 2018
Record Date	Feb. 20, 2020	Nov. 21, 2019	Feb. 21, 2019	Nov. 15, 2018
Payment Date	Mar. 12, 2020	Dec. 12, 2019	Mar. 14, 2019	Dec. 13, 2018
Dividend Per Share	$ 0.51	$ 0.51	$ 0.46	$ 0.46	$ 1.02	$ 0.92
Amount	$ 3,881	$ 3,886	$ 3,526	$ 3,544	$ 7,767	$ 7,070

Summary of Changes in Accumulat

Summary of Changes in Accumulated Other Comprehensive Income (Loss) by Component (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, beginning of period			$ 102,330
Net change related to other comprehensive income (loss)	$ (194)	$ 602	85	$ 241
Balance, end of period	110,109	92,128	110,109	92,128
Derivatives
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, beginning of period	(2)	128	0	173
Unrealized gains (losses), net of tax	2	71	(4)	115
Tax expense (benefit) included in provision for income taxes	2	2	1	5
Amounts reclassified from accumulated other comprehensive income (loss)	(6)	(86)	(2)	(175)
Net change related to other comprehensive income (loss)	(4)	(15)	(6)	(60)
Balance, end of period	(6)	113	(6)	113
Derivatives \| Revenue
Accumulated Other Comprehensive Income (Loss) [Line Items]
Reclassification adjustments for (gains) losses	(8)	(88)	(3)	(180)
Investments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, beginning of period	2,065	(1,178)	1,488	(850)
Unrealized gains (losses), net of tax	(414)	879	162	556
Tax expense (benefit) included in provision for income taxes	1	0	1	(16)
Amounts reclassified from accumulated other comprehensive income (loss)	(6)	2	(5)	64
Net change related to other comprehensive income (loss)	(420)	881	157	620
Cumulative effect of accounting changes	0	0	0	(67)
Balance, end of period	1,645	(297)	1,645	(297)
Investments \| Other Income (Expense), Net
Accumulated Other Comprehensive Income (Loss) [Line Items]
Reclassification adjustments for (gains) losses	(7)	2	(6)	80
Translation adjustments and other
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, beginning of period	(2,124)	(1,565)	(1,828)	(1,510)
Net change related to other comprehensive income (loss)	230	(264)	(66)	(319)
Balance, end of period	(1,894)	(1,829)	(1,894)	(1,829)
Accumulated other comprehensive loss
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, beginning of period	(61)	(2,615)	(340)	(2,187)
Net change related to other comprehensive income (loss)	(194)	602	85	241
Cumulative effect of accounting changes	0	0	0	(67)
Balance, end of period	$ (255)	$ (2,013)	$ (255)	$ (2,013)

Summary of Changes in Accumul_2

Summary of Changes in Accumulated Other Comprehensive Income (Loss) by Component (Parenthetical) (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Derivatives
Accumulated Other Comprehensive Income (Loss) [Line Items]
Unrealized gains (losses), tax	$ 1	$ 3	$ (1)	$ 2
Net change related to other comprehensive income (loss), tax	(1)	1	(2)	(3)
Investments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Unrealized gains (losses), tax	(111)	234	45	148
Net change related to other comprehensive income (loss), tax	(112)	234	44	164
Translation adjustments and other
Accumulated Other Comprehensive Income (Loss) [Line Items]
Net change related to other comprehensive income (loss), tax	$ 0	$ (1)	$ (8)	$ (1)

Segment Revenue (Detail)

Segment Revenue (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
Segment Revenue (Detail) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Segment Reporting Information [Line Items]
Revenue	$ 36,906	$ 32,471	$ 69,961	$ 61,555
Productivity and Business Processes
Segment Reporting Information [Line Items]
Revenue	11,826	10,100	22,903	19,871
Intelligent Cloud
Segment Reporting Information [Line Items]
Revenue	11,869	9,378	22,714	17,945
More Personal Computing
Segment Reporting Information [Line Items]
Revenue	$ 13,211	$ 12,993	$ 24,344	$ 23,739

Operating Income (Loss) by Segm

Operating Income (Loss) by Segment (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Segment Reporting Information [Line Items]
Operating Income (Loss)	$ 13,891	$ 10,258	$ 26,577	$ 20,213
Productivity and Business Processes
Segment Reporting Information [Line Items]
Operating Income (Loss)	5,182	4,015	9,964	7,896
Intelligent Cloud
Segment Reporting Information [Line Items]
Operating Income (Loss)	4,531	3,279	8,420	6,210
More Personal Computing
Segment Reporting Information [Line Items]
Operating Income (Loss)	$ 4,178	$ 2,964	$ 8,193	$ 6,107

Segment Information and Geogr_3

Segment Information and Geographic Data - Additional Information (Detail)	6 Months Ended
	Dec. 31, 2019
Segment Reporting [Abstract]
Sales to an individual customer	No sales to an individual customer or country other than the United States accounted for more than 10% of revenue for the three or six months ended December 31, 2019 or 2018.

Revenue Classified by Major Geo

Revenue Classified by Major Geographic Areas (Detail) - USD ($) $ in Millions		3 Months Ended		6 Months Ended
		Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Revenues From External Customers And Long Lived Assets [Line Items]
Revenues		$ 36,906	$ 32,471	$ 69,961	$ 61,555
United States
Revenues From External Customers And Long Lived Assets [Line Items]
Revenues	[1]	19,149	16,787	36,419	31,527
Other Countries
Revenues From External Customers And Long Lived Assets [Line Items]
Revenues		$ 17,757	$ 15,684	$ 33,542	$ 30,028

[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		6 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Revenue from External Customer [Line Items]
Revenue	$ 36,906	$ 32,471	$ 69,961	$ 61,555
Server Products and Cloud Services
Revenue from External Customer [Line Items]
Revenue	10,119	7,791	19,311	14,849
Office Products and Cloud Services
Revenue from External Customer [Line Items]
Revenue	8,983	7,747	17,449	15,369
Windows
Revenue from External Customer [Line Items]
Revenue	5,593	4,758	10,946	9,659
Gaming
Revenue from External Customer [Line Items]
Revenue	3,327	4,232	5,869	6,970
Search Advertising
Revenue from External Customer [Line Items]
Revenue	2,163	1,976	4,154	3,764
LinkedIn
Revenue from External Customer [Line Items]
Revenue	2,102	1,693	4,011	3,223
Devices
Revenue from External Customer [Line Items]
Revenue	2,048	1,948	3,250	3,209
Enterprise Services
Revenue from External Customer [Line Items]
Revenue	1,612	1,521	3,157	2,971
Other
Revenue from External Customer [Line Items]
Revenue	$ 959	$ 805	$ 1,814	$ 1,541

Revenue Classified by Signifi_2

Revenue Classified by Significant Product and Service Offerings (Parenthetical) (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Revenue from External Customer [Line Items]
Revenue	$ 36,906	$ 32,471	$ 69,961	$ 61,555
Commercial Cloud
Revenue from External Customer [Line Items]
Revenue	$ 12,500	$ 9,000	$ 24,100	$ 17,500