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INCOME TAXES (Tables)

12 Months Ended

Jun. 30, 2020

Income Tax Disclosure [Abstract]

Provision for Income Taxes

The components of the provision for income taxes were as follows:

(In millions)
Year Ended June 30,		2020				2019				2018
Current Taxes
U.S. federal		$	3,537			$	4,718			$	19,764
U.S. state and local			763				662				934
Foreign			4,444				5,531				4,348
Current taxes		$	8,744			$	10,911			$	25,046
Deferred Taxes
U.S. federal		$	58			$	(5,647	)		$	(4,292	)
U.S. state and local			(6	)			(1,010	)			(458	)
Foreign			(41	)			194				(393	)
Deferred taxes		$	11			$	(6,463	)		$	(5,143	)
Provision for income taxes		$	8,755			$	4,448			$	19,903

Income (Loss) Before Income Taxes

U.S. and foreign components of income before income taxes were as follows:

(In millions)
Year Ended June 30,		2020				2019				2018
U.S.		$	24,116			$	15,799			$	11,527
Foreign			28,920				27,889				24,947
Income before income taxes		$	53,036			$	43,688			$	36,474

Difference Between Income Taxes Computed at Federal Statutory Rate and Provision for Income Taxes

The items accounting for the difference between income taxes computed at the U.S. federal statutory rate and our effective rate were as follows:

Year Ended June 30,		2020				2019				2018
Federal statutory rate			21.0%				21.0%				28.1%
Effect of:
Foreign earnings taxed at lower rates			(3.7)%				(4.1)%				(7.8)%
Impact of the enactment of the TCJA			0%				0.4%				37.7%
Impact of intangible property transfers			0%				(5.9)%				0%
Foreign-derived intangible income deduction			(1.1)%				(1.4)%				0%
State income taxes, net of federal benefit			1.3%				0.7%				1.3%
Research and development credit			(1.1)%				(1.1)%				(1.3)%
Excess tax benefits relating to stock-based compensation			(2.2)%				(2.2)%				(2.5)%
Interest, net			1.0%				1.0%				1.2%
Other reconciling items, net			1.3%				1.8%				(2.1)%
Effective rate			16.5%				10.2%				54.6%

Deferred Income Tax Assets and Liabilities

The components of the deferred income tax assets and liabilities were as follows:  

(In millions)
June 30,		2020				2019
Deferred Income Tax Assets
Stock-based compensation expense		$	461			$	406
Accruals, reserves, and other expenses			2,721				2,287
Loss and credit carryforwards			865				3,518
Depreciation and amortization			6,361				7,046
Leasing liabilities			3,025				1,594
Unearned revenue			1,553				475
Other			354				367
Deferred income tax assets			15,340				15,693
Less valuation allowance			(755	)			(3,214	)
Deferred income tax assets, net of valuation allowance		$	14,585			$	12,479
Deferred Income Tax Liabilities
Book/tax basis differences in investments and debt		$	(2,642	)		$	(738	)
Unearned revenue			0				(30	)
Leasing assets			(2,817	)			(1,510	)
Deferred GILTI tax liabilities			(2,581	)			(2,607	)
Other			(344	)			(291	)
Deferred income tax liabilities		$	(8,384	)		$	(5,176	)
Net deferred income tax assets		$	6,201			$	7,303
Reported As
Other long-term assets		$	6,405			$	7,536
Long-term deferred income tax liabilities			(204	)			(233	)
Net deferred income tax assets		$	6,201			$	7,303

Changes in Gross Unrecognized Tax Benefits Related to Uncertain Tax Positions

The aggregate changes in the gross unrecognized tax benefits related to uncertain tax positions were as follows:

(In millions)
Year Ended June 30,		2020				2019				2018
Beginning unrecognized tax benefits		$	13,146			$	11,961			$	11,737
Decreases related to settlements			(31	)			(316	)			(193	)
Increases for tax positions related to the current year			647				2,106				1,445
Increases for tax positions related to prior years			366				508				151
Decreases for tax positions related to prior years			(331	)			(1,113	)			(1,176	)
Decreases due to lapsed statutes of limitations			(5	)			0				(3	)
Ending unrecognized tax benefits		$	13,792			$	13,146			$	11,961

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Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets.

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