Microsoft Financial Data - FY14 Q3

Current Financial Statements Trended Historical Financial Statements

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Income Statements Quarterly Income Statements

Comprehensive Income Statements Segment History

Balance Sheets Unearned Revenue

Cash Flows Yearly Income Statements

Segment Revenue & Gross Margin

MICROSOFT CORPORATION

INCOME STATEMENTS

(In millions, except per share amounts)

2014 2013 2014 2013

Revenue $20,403 ### $ 63,451 ###

Cost of revenue 5,941 4,787 19,339 14,647

Gross margin 14,462 15,702 44,112 43,306

Operating expenses:

Research and development 2,743 2,640 8,258 7,628

Sales and marketing 3,542 3,794 11,129 11,048

General and administrative 1,203 1,656 3,448 3,939

Total operating expenses 7,488 8,090 22,835 22,615

Operating income 6,974 7,612 21,277 20,691

Other income (expense) (17) (9) (34) 216

Income before income taxes 6,957 7,603 21,243 20,907

Provision for income taxes 1,297 1,548 3,781 4,009

Net income $ 5,660 $ 6,055 $ 17,462 ###

Earnings per share:

Basic $ 0.68 $ 0.72 $ 2.10 $ 2.02

Diluted $ 0.68 $ 0.72 $ 2.08 $ 1.99

Weighted average shares outstanding:

Basic 8,284 8,364 8,317 8,385

Diluted 8,367 8,429 8,411 8,472

$ 0.28 $ 0.23 $ 0.84 $ 0.69

Three Months Ended March 31,

Nine Months Ended March 31,

Cash dividends declared per common share

MICROSOFT CORPORATION

COMPREHENSIVE INCOME STATEMENTS

(In millions)

2014 2013 2014 2013

Net income $ 5,660 $ 6,055 $ 17,462 ###

Other comprehensive income (loss):

(31) 35 (14) (19)

68 278 1,502 744

18 (114) 101 58

55 199 1,589 783

Comprehensive income $ 5,715 $ 6,254 $ 19,051 ###

Three Months Ended March 31,

Nine Months Ended March 31,

Net unrealized gains (losses) on derivatives (net of tax effects of $1, $19, $(1) and $(10))

Net unrealized gains on investments (net of tax effects of $37, $150, $774 and $401)

Translation adjustments and other (net of tax effects of $9, $(61), $53 and $31) Other comprehensive income

MICROSOFT CORPORATION

BALANCE SHEETS

(In millions)

Assets

Current assets:

Cash and cash equivalents $ 11,572 $ 3,804

76,853 73,218

88,425 77,022

13,497 17,486

Inventories 1,920 1,938

Deferred income taxes 1,424 1,632 Other 3,740 3,388

Total current assets 109,006 101,466

11,771 9,991

Equity and other investments 14,792 10,844

Goodwill 14,751 14,655

Intangible assets, net 2,901 3,083

Other long-term assets 2,898 2,392

Total assets $ 156,119 $142,431

Liabilities and stockholders' equity

Current liabilities:

Accounts payable $ 4,583 $ 4,828

Current portion of long-term debt 2,000 2,999

Accrued compensation 3,887 4,117

Income taxes 694 592

Short-term unearned revenue 17,670 20,639

Securities lending payable 794 645

Other 4,275 3,597

Total current liabilities 33,903 37,417

Long-term debt 20,679 12,601

Long-term unearned revenue 1,842 1,760

Deferred income taxes 2,318 1,709

Other long-term liabilities 9,953 10,000

Total liabilities 68,695 63,487

Commitments and contingencies

Stockholders' equity:

March 31,2014

June 30, 2013

Short-term investments (including securities loaned of $707 and $579)

Total cash, cash equivalents, and short-term investments

Accounts receivable, net of allowance for doubtful accounts of $255 and $336

Property and equipment, net of accumulated depreciation of $14,441 and $12,513

67,803 67,306

Retained earnings 16,289 9,895

Accumulated other comprehensive income 3,332 1,743

Total stockholders' equity 87,424 78,944

Total liabilities and stockholders' equity $ 156,119 $142,431

Common stock and paid-in capital - shares authorized 24,000; outstanding 8,260 and 8,328

MICROSOFT CORPORATION

CASH FLOW STATEMENTS

(In millions)

2014 2013 2014 2013

Operations

Net income $ 5,660 $ 6,055 $ 17,462 ###

1,255 1,053 3,470 2,772

602 599 1,828 1,805

(40) (52) 100 (19)

(22) (6) (247) (192)

Deferred income taxes (190) 226 38 404

Deferral of unearned revenue 10,175 9,686 27,456 28,632

(10,139) (11,599) (30,394) (30,852)

Accounts receivable 2,501 2,191 4,243 3,859

Inventories (324) (483) 38 (989)

Other current assets 340 139 (311) (96)

Other long-term assets (73) (13) (469) (326)

Accounts payable (716) (67) (390) 51

Other current liabilities 870 1,238 3 119

Other long-term liabilities 200 699 (110) 864

Net cash from operations 10,099 9,666 22,717 22,930 FinancingProceeds from issuance of debt 0 0 8,850 2,232

Repayments of debt (300) 0 (1,888) 0

Common stock issued 141 203 461 765

Common stock repurchased (1,845) (1,028) (6,146) (4,318)

Common stock cash dividends pai (2,322) (1,925) (6,570) (5,534)

22 6 247 192

Other 0 0 (39) (16)

Three Months Ended March 31,

Nine Months Ended March 31,

Adjustments to reconcile net income to net cash from operations: Depreciation, amortization, and other

Stock-based compensation expense

Net recognized losses (gains) on investments and derivatives

Excess tax benefits from stock-based compensation

Recognition of unearned revenue

Changes in operating assets and liabilities:

Excess tax benefits from stock-based compensation

Net cash used in financing (4,304) (2,744) (5,085) (6,679)Investing

(1,192) (930) (4,155) (2,463)

(157) (108) (311) (1,564)

Purchases of investments (21,323) (18,160) (49,217) (48,372)

Maturities of investments 2,336 1,265 4,134 4,513

Sales of investments 16,006 9,730 39,477 30,163

Securities lending payable 46 543 149 (249)

Net cash used in investing (4,284) (7,660) (9,923) (17,972)

2 (39) 59 23

1,513 (777) 7,768 (1,698)

10,059 6,017 3,804 6,938

$11,572 $ 5,240 $ 11,572 $ 5,240

Additions to property and equipmentAcquisition of companies, net of cash acquired, and purchases of intangible and other assets

Effect of exchange rates on cash and cash equivalents

Net change in cash and cash equivalents

Cash and cash equivalents, beginning of periodCash and cash equivalents, end of period

MICROSOFT CORPORATION

SEGMENT REVENUE AND GROSS MARGIN

(In millions)

2014 2013 2014 2013

Revenue

Devices and Consumer Licensing $ 4,382 $ 4,352 $14,109 ###

Devices and Consumer Hardwar 1,973 1,402 8,187 5,294

Devices and Consumer Other 1,950 1,656 5,378 5,055

Commercial Licensing 10,323 9,979 30,805 29,059

Commercial Other 1,902 1,449 5,285 4,086

Corporate and Other (127) 1,651 (313) (274)

Total revenue $20,403 ### $63,451 ###

Gross Margin

Devices and Consumer Licensing $ 3,906 $ 3,929 $12,809 ###

Devices and Consumer Hardwar 258 393 875 1,603

Devices and Consumer Other 541 430 1,324 1,678

Commercial Licensing 9,430 9,085 28,308 26,594

Commercial Other 475 264 1,165 585

Corporate and Other (148) 1,601 (369) (317)

Total gross margin $14,462 ### $44,112 ###

Three Months Ended March 31,

Nine Months Ended March 31,

Microsoft Corporation

Quarterly Income Statements

(In millions, except earnings per share)

Revenue $ 996 $ 1,146 $ 1,261 $ 1,311 $ 1,270 $ 1,516 $ 1,627

Cost of revenue 228 260 284 305 284 331 355

Gross margin 768 886 977 1,006 986 1,185 1,272

Operating expenses:

134 150 156 170 178 199 219

Sales and marketing 256 279 300 300 320 404 436

35 42 41 48 51 62 68

Goodwill impairment 0 0 0 0 0 0 0

Other expenses (income) 4 2 4 6 2 5 5

Total operating expenses 429 473 501 524 551 670 728

Operating income 339 413 476 482 435 515 544

Other income (expense) 23 25 26 28 36 42 48

Noncontinuing items 0 0 (120) 30 0 0 0

Income before income taxes 362 438 382 540 471 557 592

Provision for income taxes 123 149 126 178 155 184 196

Income (loss) before accounting change 239 289 256 362 316 373 396

Cumulative effect of accounting change 0 0 0 0 0 0 0

Net income (loss) $ 239 $ 289 $ 256 $ 362 $ 316 $ 373 $ 396

Preferred stock dividends 0 0 0 0 0 0 0

Net income (loss) available for common shareholders $ 239 $ 289 $ 256 $ 362 $ 316 $ 373 $ 396

Basic earnings (loss) per share before accounting change $ 0.03 $ 0.03 $ 0.03 $ 0.04 $ 0.03 $ 0.04 $ 0.04

Diluted earnings (loss) per share before accounting change $ 0.02 $ 0.03 $ 0.03 $ 0.04 $ 0.03 $ 0.04 $ 0.04

Basic earnings (loss) per share $ 0.03 $ 0.03 $ 0.03 $ 0.04 $ 0.03 $ 0.04 $ 0.04

Diluted earnings (loss) per share $ 0.02 $ 0.03 $ 0.03 $ 0.04 $ 0.03 $ 0.04 $ 0.04

Back to Main

Q1-941 Q2-941 Q3-941 Q4-941 Q1-951 Q2-951 Q3-951

Research and development 4

General and administrative 5

1 Not restated for adoption of the current accounting guidance on stock-based compensation and no recast of gains (losses) on foreign currency remeasurement 2 Recast of gains (losses) on foreign currency remeasurement 3 No recast of gains (losses) on foreign currency remeasurement

4 Includes expensed acquired in-process technology 5 Includes employee severance

$ 1,662 $ 2,085 $ 2,287 $ 2,311 $ 2,367 $ 2,405 $ 2,808 $ 3,365 $ 3,358 $ 3,334 $ 3,792 $ 3,984 $ 4,152 $ 4,193

376 522 566 541 516 482 558 583 547 534 613 640 673 649

1,286 1,563 1,721 1,770 1,851 1,923 2,250 2,782 2,811 2,800 3,179 3,344 3,479 3,544

264 278 305 337 406 417 449 474 523 899 648 611 739 651

404 514 554 572 545 518 639 639 615 692 764 731 700 685

86 63 76 87 90 86 81 101 94 95 106 104 128 101

0 0 0 0 0 0 0 0 0 0 0 0 0 0

4 4 (23) (4) 42 49 46 84 80 0 0 0 0 0

758 859 912 992 1,083 1,070 1,215 1,298 1,312 1,686 1,518 1,446 1,567 1,437

528 704 809 778 768 853 1,035 1,484 1,499 1,114 1,661 1,898 1,912 2,107

65 66 76 86 92 92 105 119 127 88 109 159 176 396

(46) 0 0 0 0 0 0 0 0 0 0 0 0 0

547 770 885 864 860 945 1,140 1,603 1,626 1,202 1,770 2,057 2,088 2,503

179 271 310 302 301 331 399 561 569 539 637 720 731 820

368 499 575 562 559 614 741 1,042 1,057 663 1,133 1,337 1,357 1,683

0 0 0 0 0 0 0 0 0 0 0 0 0 0

$ 368 $ 499 $ 575 $ 562 $ 559 $ 614 $ 741 $ 1,042 $ 1,057 $ 663 $ 1,133 $ 1,337 $ 1,357 $ 1,683

0 0 0 0 0 0 (1) (7) (7) (7) (7) (7) (7) (7)

$ 368 $ 499 $ 575 $ 562 $ 559 $ 614 $ 740 $ 1,035 $ 1,050 $ 656 $ 1,126 $ 1,330 $ 1,350 $ 1,676

$ 0.04 $ 0.05 $ 0.06 $ 0.06 $ 0.06 $ 0.06 $ 0.08 $ 0.11 $ 0.11 $ 0.07 $ 0.12 $ 0.14 $ 0.14 $ 0.17

$ 0.04 $ 0.05 $ 0.06 $ 0.05 $ 0.05 $ 0.06 $ 0.07 $ 0.10 $ 0.10 $ 0.06 $ 0.11 $ 0.12 $ 0.13 $ 0.15

$ 0.04 $ 0.05 $ 0.06 $ 0.06 $ 0.06 $ 0.06 $ 0.08 $ 0.11 $ 0.11 $ 0.07 $ 0.12 $ 0.14 $ 0.14 $ 0.17

$ 0.04 $ 0.05 $ 0.06 $ 0.05 $ 0.05 $ 0.06 $ 0.07 $ 0.10 $ 0.10 $ 0.06 $ 0.11 $ 0.12 $ 0.13 $ 0.15

Q4-951 Q1-961 Q2-961 Q3-961 Q4-961 Q1-971 Q2-971 Q3-971 Q4-971 Q1-981 Q2-981 Q3-981 Q4-981 Q1-991

Not restated for adoption of the current accounting guidance on stock-based compensation and no recast of gains (losses) on foreign currency remeasurement

$ 5,195 $ 4,595 $ 5,764 $ 5,384 $ 6,112 $ 5,656 $ 5,804 $ 5,766 $ 6,550 $ 6,403 $ 6,577 $ 6,126 $ 7,741 $ 7,245

788 708 669 712 756 752 782 825 864 899 867 978 1,691 1,567

4,407 3,887 5,095 4,672 5,356 4,904 5,022 4,941 5,686 5,504 5,710 5,148 6,050 5,678

715 664 940 813 898 974 1,087 956 990 1,069 1,364 1,398 1,595 1,474

798 842 913 922 1,013 1,010 1,181 1,038 1,290 1,198 1,359 1,457 1,676 1,449

154 152 308 148 514 185 203 170 212 239 236 286 885 343

0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0 0 0 0

1,667 1,658 2,161 1,883 2,425 2,169 2,471 2,164 2,492 2,506 2,959 3,141 4,156 3,266

2,740 2,229 2,934 2,789 2,931 2,735 2,551 2,777 3,194 2,998 2,751 2,007 1,894 2,412

311 720 454 531 760 878 1,100 1,075 723 660 (2,653) (1,010) 516 728

0 0 0 0 0 0 0 0 0 0 0 0 0 0

3,051 2,949 3,388 3,320 3,691 3,613 3,651 3,852 3,917 3,658 98 997 2,410 3,140

1,068 1,032 1,186 1,129 1,255 1,228 1,242 1,271 1,293 1,207 33 319 771 1,005

1,983 1,917 2,202 2,191 2,436 2,385 2,409 2,581 2,624 2,451 65 678 1,639 2,135

0 0 0 0 0 0 0 (375) 0 0 0 0 0 0

$ 1,983 $ 1,917 $ 2,202 $ 2,191 $ 2,436 $ 2,385 $ 2,409 $ 2,206 $ 2,624 $ 2,451 $ 65 $ 678 $ 1,639 $ 2,135

(7) (7) (7) (7) (6) 0 0 0 0 0 0 0 0 0

$ 1,976 $ 1,910 $ 2,195 $ 2,184 $ 2,430 $ 2,385 $ 2,409 $ 2,206 $ 2,624 $ 2,451 $ 65 $ 678 $ 1,639 $ 2,135

$ 0.20 $ 0.19 $ 0.22 $ 0.21 $ 0.24 $ 0.23 $ 0.23 $ 0.24 $ 0.25 $ 0.23 $ 0.01 $ 0.06 $ 0.15 $ 0.20

$ 0.18 $ 0.17 $ 0.20 $ 0.20 $ 0.22 $ 0.22 $ 0.22 $ 0.23 $ 0.24 $ 0.22 $ 0.01 $ 0.06 $ 0.15 $ 0.19

$ 0.20 $ 0.19 $ 0.22 $ 0.21 $ 0.24 $ 0.23 $ 0.23 $ 0.21 $ 0.25 $ 0.23 $ 0.01 $ 0.06 $ 0.15 $ 0.20

$ 0.18 $ 0.17 $ 0.20 $ 0.20 $ 0.22 $ 0.22 $ 0.22 $ 0.20 $ 0.24 $ 0.22 $ 0.01 $ 0.06 $ 0.15 $ 0.19

Q2-991 Q3-991 Q4-991 Q1-001 Q2-001 Q3-001 Q4-001 Q1-011 Q2-011 Q3-011 Q4-011 Q1-023 Q2-023 Q3-023

$ 7,253 $ 7,746 $ 8,541 $ 7,835 $ 8,065 $ 8,215 ### $ 9,175 $ 9,292 $ 9,189 ### $ 9,620 ### $ 9,741

1,463 1,344 2,137 1,274 1,304 1,480 2,344 1,411 1,481 1,405 1,875 1,363 1,388 1,253

5,790 6,402 6,404 6,561 6,761 6,735 7,809 7,764 7,811 7,784 8,943 8,257 8,773 8,488

1,832 1,707 1,515 1,692 1,681 1,611 2,971 1,538 1,659 1,530 1,421 1,482 1,664 1,515

1,670 1,415 2,159 1,700 2,288 1,505 2,467 1,928 2,409 1,664 2,122 2,070 2,707 1,945

329 252 497 425 1,252 471 896 3,020 610 1,096 651 1,376 1,413 982

0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0 0 0 0

3,831 3,374 4,171 3,817 5,221 3,587 6,334 6,486 4,678 4,290 4,194 4,928 5,784 4,442

1,959 3,028 2,233 2,744 1,540 3,148 1,475 1,278 3,133 3,494 4,749 3,329 2,989 4,046

(631) 19 363 453 674 753 837 1,001 571 279 420 496 872 506

0 0 0 0 0 0 0 0 0 0 0 0 0 0

1,328 3,047 2,596 3,197 2,214 3,901 2,312 2,279 3,704 3,773 5,169 3,825 3,861 4,552

425 1,006 731 1,055 731 1,287 763 964 1,014 1,245 1,706 1,262 161 1,411

903 2,041 1,865 2,142 1,483 2,614 1,549 1,315 2,690 2,528 3,463 2,563 3,700 3,141

0 0 0 0 0 0 0 0 0 0 0 0 0 0

$ 903 $ 2,041 $ 1,865 $ 2,142 $ 1,483 $ 2,614 $ 1,549 $ 1,315 $ 2,690 $ 2,528 $ 3,463 $ 2,563 $ 3,700 $ 3,141

0 0 0 0 0 0 0 0 0 0 0 0 0 0

$ 903 $ 2,041 $ 1,865 $ 2,142 $ 1,483 $ 2,614 $ 1,549 $ 1,315 $ 2,690 $ 2,528 $ 3,463 $ 2,563 $ 3,700 $ 3,141

$ 0.08 $ 0.19 $ 0.17 $ 0.20 $ 0.14 $ 0.24 $ 0.14 $ 0.12 $ 0.25 $ 0.23 $ 0.32 $ 0.24 $ 0.34 $ 0.29

$ 0.08 $ 0.19 $ 0.17 $ 0.20 $ 0.14 $ 0.24 $ 0.14 $ 0.12 $ 0.25 $ 0.23 $ 0.32 $ 0.23 $ 0.34 $ 0.29

$ 0.08 $ 0.19 $ 0.17 $ 0.20 $ 0.14 $ 0.24 $ 0.14 $ 0.12 $ 0.25 $ 0.23 $ 0.32 $ 0.24 $ 0.34 $ 0.29

$ 0.08 $ 0.19 $ 0.17 $ 0.20 $ 0.14 $ 0.24 $ 0.14 $ 0.12 $ 0.25 $ 0.23 $ 0.32 $ 0.23 $ 0.34 $ 0.29

Q4-023 Q1-033 Q2-033 Q3-033 Q4-033 Q1-043 Q2-043 Q3-043 Q4-043 Q1-053 Q2-053 Q3-053 Q4-053 Q1-063

Q1-09 Q2-09 Q3-09

### ### ### ### ### ### ### ### ### ### ### ### ### ###

2,239 2,028 2,130 1,696 3,620 2,140 3,237 2,675 3,543 2,514 2,866 2,848 3,907 2,814

9,598 8,872 9,674 9,115 8,922 12,258 10,134 11,087 12,824 11,940 12,971 12,213 12,722 10,834

1,591 1,617 1,861 1,786 1,637 1,750 1,948 1,837 1,885 2,035 2,407 2,283 2,290 2,212

2,689 2,362 2,822 2,234 3,038 2,914 3,355 2,683 3,420 3,274 3,883 3,044 3,662 2,981

661 1,005 1,110 664 814 983 868 718 1,066 2,341 1,002 887 831 1,203

0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0 0 0 0

4,941 4,984 5,793 4,684 5,489 5,647 6,171 5,238 6,371 7,650 7,292 6,214 6,783 6,396

4,657 3,888 3,881 4,431 3,433 6,611 3,963 5,849 6,453 4,290 5,679 5,999 5,939 4,438

480 427 377 610 372 360 321 367 367 520 289 (8) (301) (388)

0 0 0 0 0 0 0 0 0 0 0 0 0 0

5,137 4,315 4,258 5,041 3,805 6,971 4,284 6,216 6,820 4,810 5,968 5,991 5,638 4,050

1,484 1,338 1,430 1,563 1,179 2,045 1,249 1,927 2,113 422 1,671 1,618 1,464 1,073

3,653 2,977 2,828 3,478 2,626 4,926 3,035 4,289 4,707 4,388 4,297 4,373 4,174 2,977

0 0 0 0 0 0 0 0 0 0 0 0 0 0

$ 3,653 $ 2,977 $ 2,828 $ 3,478 $ 2,626 $ 4,926 $ 3,035 $ 4,289 $ 4,707 $ 4,388 $ 4,297 $ 4,373 $ 4,174 $ 2,977

0 0 0 0 0 0 0 0 0 0 0 0 0 0

$ 3,653 $ 2,977 $ 2,828 $ 3,478 $ 2,626 $ 4,926 $ 3,035 $ 4,289 $ 4,707 $ 4,388 $ 4,297 $ 4,373 $ 4,174 $ 2,977

$ 0.35 $ 0.29 $ 0.28 $ 0.35 $ 0.27 $ 0.51 $ 0.32 $ 0.46 $ 0.50 $ 0.47 $ 0.46 $ 0.48 $ 0.47 $ 0.33

$ 0.34 $ 0.29 $ 0.28 $ 0.35 $ 0.26 $ 0.50 $ 0.31 $ 0.45 $ 0.50 $ 0.47 $ 0.46 $ 0.48 $ 0.47 $ 0.33

$ 0.35 $ 0.29 $ 0.28 $ 0.35 $ 0.27 $ 0.51 $ 0.32 $ 0.46 $ 0.50 $ 0.47 $ 0.46 $ 0.48 $ 0.47 $ 0.33

$ 0.34 $ 0.29 $ 0.28 $ 0.35 $ 0.26 $ 0.50 $ 0.31 $ 0.45 $ 0.50 $ 0.47 $ 0.46 $ 0.48 $ 0.47 $ 0.33

Q2-063 Q3-063 Q4-063 Q1-072 Q2-072 Q3-072 Q4-072 Q1-082 Q2-082 Q3-082 Q4-082

Q4-09 Q1-10 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13

### ### ### ### ### ### ### ### ### ### ### ### ### ###

2,586 2,842 3,628 2,755 3,170 3,139 4,833 3,897 3,708 3,777 5,638 3,952 4,163 4,168

10,513 10,078 15,394 11,748 12,869 13,056 15,120 12,531 13,659 13,595 15,247 13,455 13,896 11,840

2,225 2,065 2,079 2,220 2,350 2,196 2,185 2,269 2,393 2,329 2,371 2,517 2,594 2,460

3,192 2,790 3,619 3,203 3,602 2,806 3,825 3,393 3,916 2,900 3,762 3,414 3,781 2,945

1,109 741 1,183 1,152 987 938 945 1,160 1,179 1,163 1,120 1,150 1,136 1,127

0 0 0 0 0 0 0 0 0 0 0 0 6,193 0

0 0 0 0 0 0 0 0 0 0 0 0 0 0

6,526 5,596 6,881 6,575 6,939 5,940 6,955 6,822 7,488 6,392 7,253 7,081 13,704 6,532

3,987 4,482 8,513 5,173 5,930 7,116 8,165 5,709 6,171 7,203 7,994 6,374 192 5,308

155 283 370 168 94 114 332 316 148 103 245 (11) 167 226

0 0 0 0 0 0 0 0 0 0 0 0 0 0

4,142 4,765 8,883 5,341 6,024 7,230 8,497 6,025 6,319 7,306 8,239 6,363 359 5,534

1,097 1,191 2,221 1,335 1,506 1,820 1,863 793 445 1,568 1,615 1,255 851 1,068

3,045 3,574 6,662 4,006 4,518 5,410 6,634 5,232 5,874 5,738 6,624 5,108 (492) 4,466

0 0 0 0 0 0 0 0 0 0 0 0 0 0

$ 3,045 $ 3,574 $ 6,662 $ 4,006 $ 4,518 $ 5,410 $ 6,634 $ 5,232 $ 5,874 $ 5,738 $ 6,624 $ 5,108 $ (492) $ 4,466

0 0 0 0 0 0 0 0 0 0 0 0 0 0

$ 3,045 $ 3,574 $ 6,662 $ 4,006 $ 4,518 $ 5,410 $ 6,634 $ 5,232 $ 5,874 $ 5,738 $ 6,624 $ 5,108 $ (492) $ 4,466

$ 0.34 $ 0.40 $ 0.75 $ 0.46 $ 0.52 $ 0.63 $ 0.78 $ 0.62 $ 0.70 $ 0.68 $ 0.79 $ 0.61 $ (0.06) $ 0.53

$ 0.34 $ 0.40 $ 0.74 $ 0.45 $ 0.51 $ 0.62 $ 0.77 $ 0.61 $ 0.69 $ 0.68 $ 0.78 $ 0.60 $ (0.06) $ 0.53

$ 0.34 $ 0.40 $ 0.75 $ 0.46 $ 0.52 $ 0.63 $ 0.78 $ 0.62 $ 0.70 $ 0.68 $ 0.79 $ 0.61 $ (0.06) $ 0.53

$ 0.34 $ 0.40 $ 0.74 $ 0.45 $ 0.51 $ 0.62 $ 0.77 $ 0.61 $ 0.69 $ 0.68 $ 0.78 $ 0.60 $ (0.06) $ 0.53

Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14

### $ 20,489 $ 19,896 $ 18,529 $ 24,519 $ 20,403

5,692 4,787 5,602 5,114 8,284 5,941

15,764 15,702 14,294 13,415 16,235 14,462

2,528 2,640 2,783 2,767 2,748 2,743

4,309 3,794 4,228 3,304 4,283 3,542

1,156 1,656 1,210 1,010 1,235 1,203

0 0 0 0 0 0

0 0 0 0 0 0

7,993 8,090 8,221 7,081 8,266 7,488

7,771 7,612 6,073 6,334 7,969 6,974

(1) (9) 72 74 (91) (17)

0 0 0 0 0 0

7,770 7,603 6,145 6,408 7,878 6,957

1,393 1,548 1,180 1,164 1,320 1,297

6,377 6,055 4,965 5,244 6,558 5,660

0 0 0 0 0 0

$ 6,377 $ 6,055 $ 4,965 $ 5,244 $ 6,558 $ 5,660

0 0 0 0 0 0

$ 6,377 $ 6,055 $ 4,965 $ 5,244 $ 6,558 $ 5,660

$ 0.76 $ 0.72 $ 0.59 $ 0.63 $ 0.79 $ 0.68

$ 0.76 $ 0.72 $ 0.59 $ 0.62 $ 0.78 $ 0.68

$ 0.76 $ 0.72 $ 0.59 $ 0.63 $ 0.79 $ 0.68

$ 0.76 $ 0.72 $ 0.59 $ 0.62 $ 0.78 $ 0.68

Microsoft Corporation

Segment Revenue and Gross Margin

(In millions)

Revenue Q1-13 Q2-13 Q3-13 Q4-13

Devices and Consumer Licensing $ 4,678 $ 5,703 $ 4,352 $ 4,288 $ 19,021

Devices and Consumer Hardware 1,084 2,808 1,402 1,167 6,461

Devices and Consumer Other 1,400 1,999 1,656 1,563 6,618

Commercial Licensing 8,945 10,135 9,979 10,627 39,686

Commercial Other 1,248 1,389 1,449 1,574 5,660

Corporate and Other (1,347) (578) 1,651 677 403

Total revenue $ 16,008 $ 21,456 $ 20,489 $ 19,896 $ 77,849

Gross Margin Q1-13 Q2-13 Q3-13 Q4-13

Devices and Consumer Licensing $ 4,103 $ 5,131 $ 3,929 $ 3,881 $ 17,044

Devices and Consumer Hardware 448 762 393 (647) 956

Devices and Consumer Other 362 886 430 368 2,046

Commercial Licensing 8,183 9,326 9,085 9,667 36,261

Commercial Other 105 216 264 336 921

Corporate and Other (1,361) (557) 1,601 689 372

Total gross margin $ 11,840 $ 15,764 $ 15,702 $ 14,294 $ 57,600

Back to Main

Fiscal Year 2013

Fiscal Year 2013

Q1-14 Q2-14 Q3-14 Q4-14

$ 4,343 $ 5,384 $ 4,382 $ 14,109

1,485 4,729 1,973 8,187

1,635 1,793 1,950 5,378

9,594 10,888 10,323 30,805

1,603 1,780 1,902 5,285

(131) (55) (127) (313)

$ 18,529 $24,519 $20,403 $ 63,451

Q1-14 Q2-14 Q3-14 Q4-14

$ 3,925 $ 4,978 $ 3,906 $ 12,809

206 411 258 875

352 431 541 1,324

8,801 10,077 9,430 28,308

275 415 475 1,165

(144) (77) (148) (369)

$ 13,415 $16,235 $14,462 $ 44,112

Fiscal Year 2014

Fiscal Year 2014

Microsoft Corporation

Unearned Revenue

Q4-12 Q1-13 Q2-13 Q3-13 Q4-13

Unearned Revenue ($ in millions)

Commercial Licensing $ 16,818 $ 15,149 $ 14,782 $ 14,217 $ 18,460

Commercial Other 1,529 1,324 1,378 1,446 2,272

Rest of the segments 1,712 3,114 3,653 2,242 1,667

Total $ 20,059 $ 19,587 $ 19,813 $ 17,905 $ 22,399

Unearned Revenue (in %)

Commercial Licensing 84% 77% 75% 79% 82%

Commercial Other 8% 7% 7% 8% 10%

Rest of the segments 8% 16% 18% 13% 8%

Total 100% 100% 100% 100% 100%

Back to Main

Q1-14 Q2-14 Q3-14

$ 16,270 $ 15,592 $ 15,141

1,989 2,173 2,394

1,955 1,709 1,977

$ 20,214 $ 19,474 $ 19,512

80% 80% 78%

10% 11% 12%

10% 9% 10%

100% 100% 100%

Microsoft Corporation

Yearly Income Statements

(In millions, except earnings per share)

Revenue $ 4,714 $ 6,075 $ 9,050 $11,936

Cost of revenue 1,077 1,346 2,145 2,170

Gross margin 3,637 4,729 6,905 9,766

Operating expenses:

610 860 1,326 1,863

Sales and marketing 1,135 1,564 2,185 2,411

166 267 316 362

Goodwill impairment 0 0 0 0

Other expenses 16 16 19 259

Total operating expenses 1,927 2,707 3,846 4,895

Operating income 1,710 2,022 3,059 4,871

Other income (expense) 102 191 320 443

Noncontinuing items (90) (46) 0 0

Income before income taxes 1,722 2,167 3,379 5,314

Provision for income taxes 576 714 1,184 1,860

Net income before accounting change 1,146 1,453 2,195 3,454

Cumulative effect of accounting change 0 0 0 0

Net income 1,146 1,453 2,195 3,454

Preferred stock dividends 0 0 0 (15)

Net income available for common shareholders $ 1,146 $ 1,453 $ 2,195 $ 3,439

Basic earnings per share before accounting change $ 0.13 $ 0.16 $ 0.23 $ 0.36

Diluted earnings per share before accounting change $ 0.12 $ 0.14 $ 0.21 $ 0.33

Basic earnings per share $ 0.13 $ 0.16 $ 0.23 $ 0.36

Diluted earnings per share $ 0.12 $ 0.14 $ 0.21 $ 0.33

Back to Main

FY941 FY951 FY961 FY971

Research and development 4

General and administrative 5

1 Not restated for adoption of the current accounting guidance on stock-based compensation and no recast of gains (losses) on foreign currency remeasurement 2 Recast of gains (losses) on foreign currency remeasurement 3 No recast of gains (losses) on foreign currency remeasurement 4 Includes expensed acquired in-process technology 5 Includes employee severance

$15,262 $ 19,747 $ 22,956 $ 25,296 $ 28,365 $ 32,187 $ 36,835 $ 39,788 $ 44,282

2,460 2,814 3,002 3,455 5,699 6,059 6,596 6,031 7,650

12,802 16,933 19,954 21,841 22,666 26,128 30,239 33,757 36,632

2,897 2,970 3,772 4,379 6,299 6,595 7,735 6,097 6,584

2,887 3,238 4,126 4,885 6,252 7,562 8,121 8,548 9,910

433 715 1,050 857 1,843 2,426 5,275 4,536 3,758

0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0

6,217 6,923 8,948 10,121 14,394 16,583 21,131 19,181 20,252

6,585 10,010 11,006 11,720 8,272 9,545 9,108 14,576 16,380

532 1,881 3,269 (195) (397) 1,509 3,088 2,052 1,882

0 0 0 0 0 0 0 0 0

7,117 11,891 14,275 11,525 7,875 11,054 12,196 16,628 18,262

2,627 4,106 4,854 3,804 2,520 3,523 4,028 4,374 5,663

4,490 7,785 9,421 7,721 5,355 7,531 8,168 12,254 12,599

0 0 0 (375) 0 0 0 0 0

4,490 7,785 9,421 7,346 5,355 7,531 8,168 12,254 12,599

(28) (28) (13) 0 0 0 0 0 0

$ 4,462 $ 7,757 $ 9,408 $ 7,346 $ 5,355 $ 7,531 $ 8,168 $ 12,254 $ 12,599

$ 0.46 $ 0.77 $ 0.91 $ 0.72 $ 0.50 $ 0.70 $ 0.76 $ 1.13 $ 1.21

$ 0.42 $ 0.71 $ 0.85 $ 0.69 $ 0.48 $ 0.69 $ 0.75 $ 1.12 $ 1.20

$ 0.46 $ 0.77 $ 0.91 $ 0.69 $ 0.50 $ 0.70 $ 0.76 $ 1.13 $ 1.21

$ 0.42 $ 0.71 $ 0.85 $ 0.66 $ 0.48 $ 0.69 $ 0.75 $ 1.12 $ 1.20

FY981 FY991 FY001 FY011 FY023 FY033 FY042 FY052 FY062

Not restated for adoption of the current accounting guidance on stock-based compensation and no recast of gains (losses) on foreign currency remeasurement

FY09 FY10 FY11 FY12 FY13

$ 51,122 $ 60,420 $ 58,437 $ 62,484 $ 69,943 $ 73,723 $ 77,849

10,693 11,598 12,155 12,395 15,577 17,530 20,249

40,429 48,822 46,282 50,089 54,366 56,193 57,600

7,121 8,164 9,010 8,714 9,043 9,811 10,411

11,541 13,260 12,879 13,214 13,940 13,857 15,276

3,329 5,127 4,030 4,063 4,222 4,569 5,149

0 0 0 0 0 6,193 0

0 0 0 0 0 0 0

21,991 26,551 25,919 25,991 27,205 34,430 30,836

18,438 22,271 20,363 24,098 27,161 21,763 26,764

1,663 1,543 (542) 915 910 504 288

0 0 0 0 0 0 0

20,101 23,814 19,821 25,013 28,071 22,267 27,052

6,036 6,133 5,252 6,253 4,921 5,289 5,189

14,065 17,681 14,569 18,760 23,150 16,978 21,863

0 0 0 0 0 0 0

14,065 17,681 14,569 18,760 23,150 16,978 21,863

0 0 0 0 0 0 0

$ 14,065 $ 17,681 $ 14,569 $ 18,760 $ 23,150 $ 16,978 $ 21,863

$ 1.44 $ 1.90 $ 1.63 $ 2.13 $ 2.73 $ 2.02 $ 2.61

$ 1.42 $ 1.87 $ 1.62 $ 2.10 $ 2.69 $ 2.00 $ 2.58

$ 1.44 $ 1.90 $ 1.63 $ 2.13 $ 2.73 $ 2.02 $ 2.61

$ 1.42 $ 1.87 $ 1.62 $ 2.10 $ 2.69 $ 2.00 $ 2.58

FY072 FY082