v3.25.2
INCOME TAXES (Tables)
12 Months Ended
Jun. 30, 2025
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,

2025

2024

2023

 

 

 

Current Taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. federal

$

14,086

 

$

12,165

 

$

14,009

 

U.S. state and local

 

 

3,342

 

 

 

2,366

 

 

 

2,322

 

Foreign

 

11,423

 

 

9,858

 

 

6,678

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current taxes

$

28,851

 

 

$

24,389

 

 

$

23,009

 

 

 

 

 

 

 

 

 

 

 

 

 

Deferred Taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. federal

$

(6,250

)

 

$

(4,791

)

 

$

(6,146

)

U.S. state and local

 

 

(1,087

)

 

 

(379

)

 

 

(477

)

Foreign

 

281

 

 

 

432

 

 

 

564

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deferred taxes

$

(7,056

)

 

$

(4,738

)

 

$

(6,059

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for income taxes

$

21,795

 

$

19,651

 

$

16,950

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Before Income Taxes

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

 

(In millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended June 30,

2025

2024

2023

 

 

 

U.S.

$

69,212

 

$

62,886

 

$

52,917

 

Foreign

54,415

44,901

36,394

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

$

123,627

$

107,787

$

89,311

 

 

 

 

 

 

 

 

 

 

 

 

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,

2025

2024

2023

 

 

 

Federal statutory rate

21.0%

 

21.0%

 

21.0%

 

Effect of:

 

 

 

Foreign earnings taxed at lower rates

(1.5)%

 

(1.4)%

 

(1.8)%

 

Foreign-derived intangible income deduction

 

 

(1.0)%

 

 

 

(1.1)%

 

 

 

(1.3)%

 

State income taxes, net of federal benefit

 

 

1.5%

 

 

 

1.5%

 

 

 

1.6%

 

Research and development credit

 

 

(1.1)%

 

 

 

(1.1)%

 

 

 

(1.1)%

 

Excess tax benefits relating to stock-based compensation

 

 

(0.9)%

 

 

 

(1.1)%

 

 

 

(0.7)%

 

Interest, net

 

 

1.0%

 

 

 

1.1%

 

 

 

0.8%

 

Other reconciling items, net

(1.4)%

 

(0.7)%

 

0.5%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Effective rate

17.6%

 

18.2%

 

19.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

Deferred Income Tax Assets and Liabilities

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

 

(In millions)

 

 

 

 

 

 

 

 

 

 

 

 

June 30,

2025

2024

 

 

Deferred Income Tax Assets

 

 

Stock-based compensation expense

$

909

$

765

Accruals, reserves, and other expenses

5,050

4,381

Loss and credit carryforwards

2,114

1,741

Amortization

 

 

4,118

 

 

 

4,159

 

Leasing liabilities

 

 

12,874

 

 

 

6,504

 

Unearned revenue

 

 

4,324

 

 

 

3,717

 

Book/tax basis differences in investments and debt

 

 

303

 

 

 

9

 

Capitalized research and development

 

 

16,891

 

 

 

11,442

 

Other

529

426

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deferred income tax assets

 

47,112

 

33,144

Less valuation allowance

(1,169

)

(1,045

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deferred income tax assets, net of valuation allowance

$

45,943

$

32,099

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deferred Income Tax Liabilities

 

 

Leasing assets

 

$

(12,696

)

 

$

(6,503

)

Depreciation

 

 

(5,699

)

 

 

(3,940

)

Deferred tax on foreign earnings

 

 

(1,148

)

 

 

(1,837

)

Other

(127

)

(167

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deferred income tax liabilities

$

(19,670

)

$

(12,447

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net deferred income tax assets

$

26,273

 

$

19,652

 

 

 

 

 

 

 

 

 

 

 

Reported As

 

 

Other long-term assets

 

$

29,108

 

 

$

22,270

 

Long-term deferred income tax liabilities

(2,835

)

(2,618

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net deferred income tax assets

$

26,273

 

$

19,652

 

 

 

 

 

 

 

 

 

 

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,

2025

2024

2023

 

 

 

Beginning unrecognized tax benefits

$

22,760

$

17,120

$

15,593

Decreases related to settlements

(240

)

(76

)

(329

)

Increases for tax positions related to the current year

2,066

1,903

1,051

Increases for tax positions related to prior years

468

4,289

870

Decreases for tax positions related to prior years

(300

)

(464

)

(60

)

Decreases due to lapsed statutes of limitations

(25

)

(12

)

(5

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending unrecognized tax benefits

$

24,729

$

22,760

$

17,120