| Statement [Line Items] | Period [Axis] |
|---|
2015-07-01 - 2016-06-30 |
|---|
Provision for Income Taxes |
The components of the provision for
income taxes were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
| (In millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Year Ended June 30, |
|
2016 |
|
|
2015 |
|
|
2014 |
|
|
|
|
|
|
Current Taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. federal
|
|
$ |
545 |
|
|
$ |
3,661 |
|
|
$ |
3,738 |
|
|
U.S. state and local
|
|
|
136 |
|
|
|
364 |
|
|
|
266 |
|
|
Foreign
|
|
|
1,940 |
|
|
|
2,065 |
|
|
|
2,073 |
|
|
|
|
|
|
|
|
|
|
|
|
Current taxes
|
|
|
2,621 |
|
|
|
6,090 |
|
|
|
6,077 |
|
|
|
|
|
|
Deferred Taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred taxes
|
|
|
332 |
|
|
|
224 |
|
|
|
(331 |
) |
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes
|
|
$ |
2,953 |
|
|
$ |
6,314 |
|
|
$ |
5,746 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) Before Income Taxes |
U.S. and foreign components of income
(loss) before income taxes were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
| (In millions) |
|
|
|
|
|
|
|
| Year Ended June 30, |
|
2016 |
|
|
2015 |
|
|
2014 |
|
|
|
|
|
|
U.S.
|
|
$ |
(325 |
) |
|
$ |
7,363 |
|
|
$ |
7,127 |
|
|
Foreign
|
|
|
20,076 |
|
|
|
11,144 |
|
|
|
20,693 |
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
$ |
19,751 |
|
|
$ |
18,507 |
|
|
$ |
27,820 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
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, |
|
2016 |
|
|
2015 |
|
|
2014 |
|
|
|
|
|
|
Federal statutory rate
|
|
|
35.0% |
|
|
|
35.0% |
|
|
|
35.0% |
|
|
Effect of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign earnings taxed at lower
rates
|
|
|
(19.4)% |
|
|
|
(20.9)% |
|
|
|
(17.1)% |
|
|
Phone nondeductible charges and
valuation allowance
|
|
|
1.3% |
|
|
|
19.1% |
|
|
|
0.9% |
|
|
Domestic production activities
deduction
|
|
|
(0.6)% |
|
|
|
(2.4)% |
|
|
|
(1.0)% |
|
|
Excess tax benefits relating to
stock-based compensation
|
|
|
(2.0)% |
|
|
|
0% |
|
|
|
0% |
|
|
Other reconciling items,
net
|
|
|
0.7% |
|
|
|
3.3% |
|
|
|
2.9% |
|
|
|
|
|
|
|
|
|
|
|
|
Effective rate
|
|
|
15.0% |
|
|
|
34.1% |
|
|
|
20.7% |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred Income Tax Assets and Liabilities |
The components of the
deferred income tax assets and liabilities were as
follows:
|
|
|
|
|
|
|
|
|
| (In millions) |
|
|
|
|
|
|
|
|
|
|
|
| June 30, |
|
2016 |
|
|
2015 |
|
|
|
|
|
Deferred Income Tax
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation
expense
|
|
$ |
809 |
|
|
$ |
884 |
|
|
Other expense items
|
|
|
1,609 |
|
|
|
1,531 |
|
|
Restructuring charges
|
|
|
284 |
|
|
|
211 |
|
|
Unearned revenue
|
|
|
494 |
|
|
|
520 |
|
|
Impaired investments
|
|
|
226 |
|
|
|
257 |
|
|
Loss carryforwards
|
|
|
1,703 |
|
|
|
1,158 |
|
|
Depreciation and
amortization
|
|
|
115 |
|
|
|
798 |
|
|
Other revenue items
|
|
|
89 |
|
|
|
56 |
|
|
|
|
|
|
|
|
Deferred income tax assets
|
|
|
5,329 |
|
|
|
5,415 |
|
|
Less valuation allowance
|
|
|
(2,180 |
) |
|
|
(2,265 |
) |
|
|
|
|
|
|
|
Deferred income tax assets, net of
valuation allowance
|
|
$ |
3,149 |
|
|
$ |
3,150 |
|
|
|
|
|
|
|
|
|
|
|
Deferred Income Tax
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign earnings
|
|
$ |
(1,242 |
) |
|
$ |
(1,280 |
) |
|
Unrealized gain on investments and
debt
|
|
|
(2,102 |
) |
|
|
(2,223 |
) |
|
Depreciation and
amortization
|
|
|
(1,008 |
) |
|
|
(685 |
) |
|
Other
|
|
|
(54 |
) |
|
|
(29 |
) |
|
|
|
|
|
|
|
Deferred income tax
liabilities
|
|
|
(4,406 |
) |
|
|
(4,217 |
) |
|
|
|
|
|
|
|
Net deferred income tax assets
(liabilities)
|
|
$ |
(1,257 |
) |
|
$ |
(1,067 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
Reported As
|
|
|
|
|
|
|
|
|
|
|
|
|
Other long-term assets
(a)
|
|
$ |
219 |
|
|
$ |
228 |
|
|
Long-term deferred income tax
liabilities (a)
|
|
|
(1,476 |
) |
|
|
(1,295 |
) |
|
|
|
|
|
|
|
Net deferred income tax assets
(liabilities) (a)
|
|
$ |
(1,257 |
) |
|
$ |
(1,067 |
) |
| |
|
|
|
|
|
|
|
|
| (a) |
Balances as of June 30, 2015 reflect the impact of the
adoption of the new accounting standard in fiscal year 2016 related
to balance sheet classification of deferred taxes. See Note 1
– Accounting Policies for additional details.
|
|
Changes in Unrecognized Tax Benefits |
The aggregate changes in
the balance of unrecognized tax benefits were as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
| (In millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Year Ended June 30, |
|
2016 |
|
|
2015 |
|
|
2014 |
|
|
|
|
|
|
Balance, beginning of year
|
|
$ |
9,599 |
|
|
$ |
8,714 |
|
|
$ |
8,648 |
|
|
Decreases related to
settlements
|
|
|
(201 |
) |
|
|
(50 |
) |
|
|
(583 |
) |
|
Increases for tax positions related
to the current year
|
|
|
1,086 |
|
|
|
1,091 |
|
|
|
566 |
|
|
Increases for tax positions related
to prior years
|
|
|
115 |
|
|
|
94 |
|
|
|
217 |
|
|
Decreases for tax positions related
to prior years
|
|
|
(317 |
) |
|
|
(144 |
) |
|
|
(95 |
) |
|
Decreases due to lapsed statutes of
limitations
|
|
|
(118 |
) |
|
|
(106 |
) |
|
|
(39 |
) |
|
|
|
|
|
|
|
|
|
|
|
Balance, end of year
|
|
$ |
10,164 |
|
|
$ |
9,599 |
|
|
$ |
8,714 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|