XML 52 R39.htm IDEA: XBRL DOCUMENT
v3.21.2

INCOME TAXES (Tables) | 12 Months Ended
--- | ---
Jun. 30, 2021
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, |  | 2021 |  |  | 2020 |  |  | 2019 |
Current Taxes |  |  |  |  |  |  |  |  |  |  |  |
U.S. federal |  | $ | 3,285 |  |  | $ | 3,537 |  |  | $ | 4,718 |
U.S. state and local |  |  | 1,229 |  |  |  | 763 |  |  |  | 662 |
Foreign |  |  | 5,467 |  |  |  | 4,444 |  |  |  | 5,531 |
Current taxes |  | $ | 9,981 |  |  | $ | 8,744 |  |  | $ | 10,911 |
Deferred Taxes |  |  |  |  |  |  |  |  |  |  |  |
U.S. federal |  | $ | 25 |  |  | $ | 58 |  |  | $ | (5,647 | )
U.S. state and local |  |  | (204 | ) |  |  | (6 | ) |  |  | (1,010 | )
Foreign |  |  | 29 |  |  |  | (41 | ) |  |  | 194 |
Deferred taxes |  | $ | (150 | ) |  | $ | 11 |  |  | $ | (6,463 | )
Provision for income taxes |  | $ | 9,831 |  |  | $ | 8,755 |  |  | $ | 4,448 |
Income (Loss) Before Income Taxes | U.S. and foreign components of income before income taxes were as follows:
(In millions) |
Year Ended June 30, |  | 2021 |  |  | 2020 |  |  | 2019 |
U.S. |  | $ | 34,972 |  |  | $ | 24,116 |  |  | $ | 15,799 |
Foreign |  |  | 36,130 |  |  |  | 28,920 |  |  |  | 27,889 |
Income before income taxes |  | $ | 71,102 |  |  | $ | 53,036 |  |  | $ | 43,688 |
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, |  | 2021 |  |  | 2020 |  |  | 2019 |
Federal statutory rate |  |  | 21.0% |  |  |  | 21.0% |  |  |  | 21.0% |
Effect of: |  |  |  |  |  |  |  |  |  |  |  |
Foreign earnings taxed at lower rates |  |  | (2.7)% |  |  |  | (3.7)% |  |  |  | (4.1)% |
Impact of the enactment of the TCJA |  |  | 0% |  |  |  | 0% |  |  |  | 0.4% |
Impact of intangible property transfers |  |  | 0% |  |  |  | 0% |  |  |  | (5.9)% |
Foreign-derived intangible income deduction |  |  | (1.3)% |  |  |  | (1.1)% |  |  |  | (1.4)% |
State income taxes, net of federal benefit |  |  | 1.4% |  |  |  | 1.3% |  |  |  | 0.7% |
Research and development credit |  |  | (0.9)% |  |  |  | (1.1)% |  |  |  | (1.1)% |
Excess tax benefits relating to stock-based compensation |  |  | (2.4)% |  |  |  | (2.2)% |  |  |  | (2.2)% |
Interest, net |  |  | 0.5% |  |  |  | 1.0% |  |  |  | 1.0% |
Other reconciling items, net |  |  | (1.8)% |  |  |  | 1.3% |  |  |  | 1.8% |
Effective rate |  |  | 13.8% |  |  |  | 16.5% |  |  |  | 10.2% |
Deferred Income Tax Assets and Liabilities | The components of the deferred income tax assets and liabilities were as follows:
(In millions) |  |  |  |  |  |
June 30, |  | 2021 |  |  | 2020 |
Deferred Income Tax Assets |  |  |  |  |  |  |  |
Stock-based compensation expense |  | $ | 502 |  |  | $ | 461 |
Accruals, reserves, and other expenses |  |  | 2,960 |  |  |  | 2,721 |
Loss and credit carryforwards |  |  | 1,090 |  |  |  | 865 |
Amortization |  |  | 6,346 |  |  |  | 6,737 |
Leasing liabilities |  |  | 4,060 |  |  |  | 3,025 |
Unearned revenue |  |  | 2,659 |  |  |  | 1,553 |
Other |  |  | 543 |  |  |  | 354 |
Deferred income tax assets |  |  | 18,160 |  |  |  | 15,716 |
Less valuation allowance |  |  | (769 | ) |  |  | (755 | )
Deferred income tax assets, net of valuation allowance |  | $ | 17,391 |  |  | $ | 14,961 |
Deferred Income Tax Liabilities |  |  |  |  |  |  |  |
Book/tax basis differences in investments and debt |  | $ | (2,605 | ) |  | $ | (2,642 | )
Leasing assets |  |  | (3,834 | ) |  |  | (2,817 | )
Depreciation |  |  | (1,010 | ) |  |  | (376 | )
Deferred GILTI tax liabilities |  |  | (2,815 | ) |  |  | (2,581 | )
Other |  |  | (144 | ) |  |  | (344 | )
Deferred income tax liabilities |  | $ | (10,408 | ) |  | $ | (8,760 | )
Net deferred income tax assets |  | $ | 6,983 |  |  | $ | 6,201 |
Reported As |  |  |  |  |  |  |  |
Other long-term assets |  | $ | 7,181 |  |  | $ | 6,405 |
Long-term deferred income tax liabilities |  |  | (198 | ) |  |  | (204 | )
Net deferred income tax assets |  | $ | 6,983 |  |  | $ | 6,201 |
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, |  | 2021 |  |  | 2020 |  |  | 2019 |
Beginning unrecognized tax benefits |  | $ | 13,792 |  |  | $ | 13,146 |  |  | $ | 11,961 |
Decreases related to settlements |  |  | (195 | ) |  |  | (31 | ) |  |  | (316 | )
Increases for tax positions related to the current year |  |  | 790 |  |  |  | 647 |  |  |  | 2,106 |
Increases for tax positions related to prior years |  |  | 461 |  |  |  | 366 |  |  |  | 508 |
Decreases for tax positions related to prior years |  |  | (297 | ) |  |  | (331 | ) |  |  | (1,113 | )
Decreases due to lapsed statutes of limitations |  |  | (1 | ) |  |  | (5 | ) |  |  | 0 |
Ending unrecognized tax benefits |  | $ | 14,550 |  |  | $ | 13,792 |  |  | $ | 13,146 |

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32639-109319 + Details
Name: | us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition 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. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32537-109319 + Details
Name: | us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32687-109319 + Details
Name: | us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of income before income tax between domestic and foreign jurisdictions. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)(1)(i)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
Name: | us-gaap_ScheduleOfIncomeBeforeIncomeTaxDomesticAndForeignTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure for tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities and other income tax contingencies. Includes, but is not limited to, interest and penalties, reconciliation of unrecognized tax benefits, unrecognized tax benefits that would affect the effective tax rate, tax years that remain subject to examination by tax jurisdictions, and information about positions for which it is reasonably possible that amounts unrecognized will significantly change within 12 months. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI http://asc.fasb.org/extlink&oid=84230637&loc=SL6600010-109319 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32718-109319 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 19 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32840-109319 + Details
Name: | us-gaap_SummaryOfIncomeTaxContingenciesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration