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INCOME TAXES (Tables) | 12 Months Ended
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Jun. 30, 2020
Income Tax Disclosure [Abstract] |
Provision for Income Taxes | The components of the provision for income taxes were as follows:
(In millions) |
Year Ended June 30, |  | 2020 |  |  | 2019 |  |  | 2018 |
Current Taxes |  |  |  |  |  |  |  |  |  |  |  |
U.S. federal |  | $ | 3,537 |  |  | $ | 4,718 |  |  | $ | 19,764 |
U.S. state and local |  |  | 763 |  |  |  | 662 |  |  |  | 934 |
Foreign |  |  | 4,444 |  |  |  | 5,531 |  |  |  | 4,348 |
Current taxes |  | $ | 8,744 |  |  | $ | 10,911 |  |  | $ | 25,046 |
Deferred Taxes |  |  |  |  |  |  |  |  |  |  |  |
U.S. federal |  | $ | 58 |  |  | $ | (5,647 | ) |  | $ | (4,292 | )
U.S. state and local |  |  | (6 | ) |  |  | (1,010 | ) |  |  | (458 | )
Foreign |  |  | (41 | ) |  |  | 194 |  |  |  | (393 | )
Deferred taxes |  | $ | 11 |  |  | $ | (6,463 | ) |  | $ | (5,143 | )
Provision for income taxes |  | $ | 8,755 |  |  | $ | 4,448 |  |  | $ | 19,903 |
Income (Loss) Before Income Taxes | U.S. and foreign components of income before income taxes were as follows:
(In millions) |
Year Ended June 30, |  | 2020 |  |  | 2019 |  |  | 2018 |
U.S. |  | $ | 24,116 |  |  | $ | 15,799 |  |  | $ | 11,527 |
Foreign |  |  | 28,920 |  |  |  | 27,889 |  |  |  | 24,947 |
Income before income taxes |  | $ | 53,036 |  |  | $ | 43,688 |  |  | $ | 36,474 |
Difference Between Income Taxes Computed at Federal Statutory Rate and Provision for Income Taxes | The items accounting for the difference between income taxes computed at the U.S. federal statutory rate and our effective rate were as follows:
Year Ended June 30, |  | 2020 |  |  | 2019 |  |  | 2018 |
Federal statutory rate |  |  | 21.0% |  |  |  | 21.0% |  |  |  | 28.1% |
Effect of: |  |  |  |  |  |  |  |  |  |  |  |
Foreign earnings taxed at lower rates |  |  | (3.7)% |  |  |  | (4.1)% |  |  |  | (7.8)% |
Impact of the enactment of the TCJA |  |  | 0% |  |  |  | 0.4% |  |  |  | 37.7% |
Impact of intangible property transfers |  |  | 0% |  |  |  | (5.9)% |  |  |  | 0% |
Foreign-derived intangible income deduction |  |  | (1.1)% |  |  |  | (1.4)% |  |  |  | 0% |
State income taxes, net of federal benefit |  |  | 1.3% |  |  |  | 0.7% |  |  |  | 1.3% |
Research and development credit |  |  | (1.1)% |  |  |  | (1.1)% |  |  |  | (1.3)% |
Excess tax benefits relating to stock-based compensation |  |  | (2.2)% |  |  |  | (2.2)% |  |  |  | (2.5)% |
Interest, net |  |  | 1.0% |  |  |  | 1.0% |  |  |  | 1.2% |
Other reconciling items, net |  |  | 1.3% |  |  |  | 1.8% |  |  |  | (2.1)% |
Effective rate |  |  | 16.5% |  |  |  | 10.2% |  |  |  | 54.6% |
Deferred Income Tax Assets and Liabilities | The components of the deferred income tax assets and liabilities were as follows:
(In millions) |  |  |  |  |  |
June 30, |  | 2020 |  |  | 2019 |
Deferred Income Tax Assets |  |  |  |  |  |  |  |
Stock-based compensation expense |  | $ | 461 |  |  | $ | 406 |
Accruals, reserves, and other expenses |  |  | 2,721 |  |  |  | 2,287 |
Loss and credit carryforwards |  |  | 865 |  |  |  | 3,518 |
Depreciation and amortization |  |  | 6,361 |  |  |  | 7,046 |
Leasing liabilities |  |  | 3,025 |  |  |  | 1,594 |
Unearned revenue |  |  | 1,553 |  |  |  | 475 |
Other |  |  | 354 |  |  |  | 367 |
Deferred income tax assets |  |  | 15,340 |  |  |  | 15,693 |
Less valuation allowance |  |  | (755 | ) |  |  | (3,214 | )
Deferred income tax assets, net of valuation allowance |  | $ | 14,585 |  |  | $ | 12,479 |
Deferred Income Tax Liabilities |  |  |  |  |  |  |  |
Book/tax basis differences in investments and debt |  | $ | (2,642 | ) |  | $ | (738 | )
Unearned revenue |  |  | 0 |  |  |  | (30 | )
Leasing assets |  |  | (2,817 | ) |  |  | (1,510 | )
Deferred GILTI tax liabilities |  |  | (2,581 | ) |  |  | (2,607 | )
Other |  |  | (344 | ) |  |  | (291 | )
Deferred income tax liabilities |  | $ | (8,384 | ) |  | $ | (5,176 | )
Net deferred income tax assets |  | $ | 6,201 |  |  | $ | 7,303 |
Reported As |  |  |  |  |  |  |  |
Other long-term assets |  | $ | 6,405 |  |  | $ | 7,536 |
Long-term deferred income tax liabilities |  |  | (204 | ) |  |  | (233 | )
Net deferred income tax assets |  | $ | 6,201 |  |  | $ | 7,303 |
Changes in Gross Unrecognized Tax Benefits Related to Uncertain Tax Positions | The aggregate changes in the gross unrecognized tax benefits related to uncertain tax positions were as follows:
(In millions) |  |  |  |  |  |  |  |  |
Year Ended June 30, |  | 2020 |  |  | 2019 |  |  | 2018 |
Beginning unrecognized tax benefits |  | $ | 13,146 |  |  | $ | 11,961 |  |  | $ | 11,737 |
Decreases related to settlements |  |  | (31 | ) |  |  | (316 | ) |  |  | (193 | )
Increases for tax positions related to the current year |  |  | 647 |  |  |  | 2,106 |  |  |  | 1,445 |
Increases for tax positions related to prior years |  |  | 366 |  |  |  | 508 |  |  |  | 151 |
Decreases for tax positions related to prior years |  |  | (331 | ) |  |  | (1,113 | ) |  |  | (1,176 | )
Decreases due to lapsed statutes of limitations |  |  | (5 | ) |  |  | 0 |  |  |  | (3 | )
Ending unrecognized tax benefits |  | $ | 13,792 |  |  | $ | 13,146 |  |  | $ | 11,961 |

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