BUSINESS COMBINATIONS (Tables)

12 Months Ended

Jun. 30, 2019

The components of intangible assets acquired during the periods presented were as follows:

(In millions)	Amount		Weighted Average Life		Amount		Weighted Average Life


Year Ended June 30,	2019				2018

Technology-based	$	814		5 years	$	178		4 years
Marketing-related		177		10 years		14		5 years
Contract-based		7		3 years		14		4 years
Customer-related		710		8 years		13		5 years


Total	$	1,708		7 years	$	219		5 years

GitHub, Inc.

Major Classes of Assets and Liabilities Allocated Purchase Price

The major classes of assets and liabilities to which we allocated the purchase price were as follows:

(In millions)


Cash, cash equivalents, and short-term investments	$	234
Goodwill		5,497
Intangible assets		1,267
Other assets		143
Other liabilities		(217	)


Total	$	6,924

Acquired Intangible Assets

Following are the details of the purchase price allocated to the intangible assets acquired:

(In millions)	Amount		Weighted Average Life


Customer-related	$	648		8 years
Technology-based		447		5 years
Marketing-related		170		10 years
Contract-based		2		2 years


Total	$	1,267		7 years

LinkedIn Corporation

Major Classes of Assets and Liabilities Allocated Purchase Price

The major classes of assets and liabilities to which we allocated the purchase price were as follows:

(In millions)


Cash and cash equivalents	$	1,328
Short-term investments		2,110
Other current assets		697
Property and equipment		1,529
Intangible assets		7,887
Goodwill ⁽^a⁾		16,803
Short-term debt ^(b)		(1,323	)
Other current liabilities		(1,117	)
Deferred income taxes		(774	)
Other		(131	)


Total purchase price	$	27,009

(a)	Goodwill was assigned to our Productivity and Business Processes segment. The goodwill was primarily attributed to increased synergies that are expected to be achieved from the integration of LinkedIn. None of the goodwill is expected to be deductible for income tax purposes.

(b)

Convertible senior notes issued by LinkedIn on November 12, 2014, substantially all of which were redeemed after our acquisition of LinkedIn. The remaining $18 million of notes are not redeemable and are included in long-term debt in our consolidated balance sheets. Refer to Note 11 – Debt for further information.

Acquired Intangible Assets

Following are the details of the purchase price allocated to the intangible assets acquired:

(In millions)	Amount		Weighted Average Life


Customer-related	$	3,607		7 years
Marketing-related (trade names)		2,148		20 years
Technology-based		2,109		3 years
Contract-based		23		5 years


Fair value of intangible assets acquired	$	7,887		9 years

Revenue and Operating Loss Attributable to Acquiree, Since the Date of Acquisition

Our consolidated income statements include the following revenue and operating loss attributable to LinkedIn since the date of acquisition:

(In millions)


Year Ended June 30,		2017

Revenue	$	2,271
Operating loss		(924	)

Supplemental Consolidated Financial Results on Unaudited Pro Forma Basis, as If the Acquisition Had Been Consummated on Beginning of Period

Following are the supplemental consolidated financial results of Microsoft Corporation on an unaudited pro forma basis, as if the acquisition had been consummated on July 1, 2015:

(In millions, except per share amounts)


Year Ended June 30,		2017		2016

Revenue	$	98,291	$	94,490
Net income		25,179		19,128
Diluted earnings per share		3.21		2.38