The past year has also made clear how essential PCs are to work, learning, and life at home. This is why we put so much emphasis over the past few years on building a culture that centers on our commitment to a growth mindset. We generate revenue by offering a wide range of cloud-based and other services to people and businesses; licensing and supporting an array of software products; designing, manufacturing, and selling devices; and delivering relevant online advertising to a global audience. ", Microsoft, Microsoft's revenue from 2012 to 2022 financial years, by segment (in billion U.S. dollars) Statista, https://www.statista.com/statistics/273482/segment-revenue-of-microsoft/ (last visited March 01, 2023), Microsoft's revenue from 2012 to 2022 financial years, by segment (in billion U.S. dollars) [Graph], Microsoft, July 26, 2022. Summary. Because of its inherent limitations, internal control over financial reporting is not intended to provide absolute assurance that a misstatement of our consolidated financial statements would be prevented or detected. Other reconciling items, net consists primarily of tax credits and GILTI tax, and in fiscal year 2021, includes tax benefits from the India Supreme Court decision on withholding taxes. Foreign currency risks related to certain non-U.S. dollar-denominated investments are hedged using foreign exchange forward contracts that are designated as fair value hedging instruments. Their net earnings came in at $2,407 Million, a decrease of 5.6% YoY. In general, and where applicable, we use quoted prices in active markets for identical assets or liabilities to determine the fair value of our financial instruments. The company's Xbox Game Pass gaming subscription revenue during the year was . We report our financial performance based on the following segments: Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. We typically have more than one SSP for individual products and services due to the stratification of those products and services by customers and circumstances. We evaluated the reasonableness of managements estimates by considering how tax law, including statutes, regulations and case law, impacted managements judgments. Refer to Note 16 Stockholders Equity of the Notes to Financial Statements for further discussion. We are continuing our efforts to extend broadband access to millions of people in rural and underserved communities in the United States and around the globe. Interest expense decreased due to a decrease in outstanding long-term debt due to debt maturities. Highlights from fiscal year 2021 compared with fiscal year 2020 included: On March 9, 2021, we completed our acquisition of ZeniMax Media Inc. (ZeniMax), the parent company of Bethesda Softworks LLC, for a total purchase price of $8.1 billion, consisting primarily of cash. Gross margin increased $6.5 billion or 18% driven by growth in Office 365 Commercial and LinkedIn, and the change in estimated useful lives of our server and network equipment. Xbox Game Pass is a community with access to a curated library of over 100 first- and third-party console and PC titles. Microsoft posted the first quarter of its 2022 financial results today, reporting revenue of $45.3 billion and a net income of $20.5 billion (GAAP). Archives of these events are also available. MD&A is provided as a supplement to, and should be read in conjunction with, our consolidated financial statements and the accompanying Notes to Financial Statements. Sure enough, Microsoft says its "more personal computing" business, including Windows and Xbox, was up 11 percent to $14.5 billion in Q3 and "Windows OEM revenue growth," which should . Weakening of the U.S. dollar relative to certain foreign currencies increased reported revenue and did not have a material impact on reported expenses from our international operations in fiscal year 2021. The number of shares the PSU holder receives is based on the extent to which the corresponding performance goals have been achieved. Changes in these estimates and assumptions could materially affect the determination of fair value and goodwill impairment for each reporting unit. Refer to Note 12 Income Taxes of the Notes to Financial Statements for further discussion. We believe our continuing research and product development are not materially dependent on any single license or other agreement with a third party relating to the development of our products. We allocate goodwill to reporting units based on the reporting unit expected to benefit from the business combination. While the pandemic has been the defining issue of the past year-and-a-half, climate change is the challenge of our lifetime. This statistic is not included in your account. Equity investments without readily determinable fair values are written down to fair value if a qualitative assessment indicates that the investment is impaired and the fair value of the investment is less than carrying value. To sign up for this free service, visit the Annual Report site on the Investor Relations website at: http://www.microsoft.com/investor/AnnualReports/default.aspx. Refer to Note 19 Segment Information and Geographic Data for further information, including revenue by significant product and service offering. It also provides support, tools, training, and other licensing benefits to help customers deploy and use software efficiently. The increase in our effective tax rate for fiscal year 2020 compared to fiscal year 2019 was primarily due to a $2.6 billion net income tax benefit in the fourth quarter of fiscal year 2019 related to intangible property transfers. Dynamics 365 for Talent with LinkedIn Recruiter and Learning gives human resource professionals a complete solution to compete for talent. The following table outlines the expected future recognition of unearned revenue as of June 30, 2021: If our customers choose to license cloud-based versions of our products and services rather than licensing transaction-based products and services, the associated revenue will shift from being recognized at the time of the transaction to being recognized over the subscription period or upon consumption, as applicable. Then you can access your favorite statistics via the star in the header. But in addition to the top line, also pay close . To foster their and our success, we seek to create an environment where people can do their best work a place where they can proudly be their authentic selves, guided by our values, and where they know their needs can be met. Recent Accounting Guidance Not Yet Adopted. In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of June 30, 2021, based on the criteria established in Internal Control Integrated Framework (2013) issued by COSO. We perform a qualitative assessment on a periodic basis and recognize an impairment if there are sufficient indicators that the fair value of the investment is less than carrying value. We use credit default swap contracts to manage credit exposures relative to broad-based indices and to facilitate portfolio diversification. The critical audit matters communicated below are matters arising from the current-period audit of the financial statements that were communicated or required to be communicated to the audit committee and that (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. We adopted the standard effective July 1, 2020. We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated financial statements and the related notes (collectively referred to as the financial statements) as of and for the year ended June 30, 2021, of the Company and our report dated July 29, 2021, expressed an unqualified opinion on those financial statements. The segments enable the alignment of strategies and objectives across the development, sales, marketing, and services organizations, and they provide a framework for timely and rational allocation of resources within businesses. In March 2021, the India Supreme Court ruled favorably for companies in 86 separate appeals, some dating back to 2012, holding that software sales are not subject to India withholding taxes. And to preserve and protect journalism, were helping strengthen local news ecosystems, restore trust in news, and provide cybersecurity and legal security for journalists. Research and development expenses include payroll, employee benefits, stock-based compensation expense, and other headcount-related expenses associated with product development. We implemented a global Paid Pandemic School and Childcare Closure Leave to support working parents, added wellbeing days for those who needed to take time off for mental health and wellness, implemented on-demand COVID-19 testing and vaccinations on our Redmond, Washington campus, and extended full medical plan coverage for coronavirus testing, treatment, and telehealth services. LVMH Revenue By Segment. At our Investor Relations website, www.microsoft.com/investor, we make available free of charge a variety of information for investors. Gains and losses from changes in fair values of derivatives that are not designated as hedging instruments are primarily recognized in other income (expense), net. Marketing Solutions help companies reach, engage, and convert their audiences at scale. $ 22,247. Actual results and outcomes may differ from managements estimates and assumptions due to risks and uncertainties, including uncertainty in the current economic environment due to COVID-19. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Darling Ingredients (DAR) reported $1.77 billion in revenue for the quarter ended December 2022, representing a year-over-year increase of 35%. The aggregate changes in the gross unrecognized tax benefits related to uncertain tax positions were as follows: Unearned revenue by segment was as follows: Changes in unearned revenue were as follows: Revenue allocated to remaining performance obligations, which includes unearned revenue and amounts that will be invoiced and recognized as revenue in future periods, was $146 billion as of June 30, 2021, of which $141 billion is related to the commercial portion of revenue. Chief Executive Officer, The trial of the British Columbia action commenced in May 2016. Xbox and our cloud gaming services face competition from various online gaming ecosystems and game streaming services, including those operated by Amazon, Apple, Facebook, Google, and Tencent. Three billion people around the world play games, which makes gaming the largest category in the entertainment industry. We believe that our audits provide a reasonable basis for our opinion. We settled a portion of the Internal Revenue Service (IRS) audit for tax years 2004 to 2006 in fiscal year 2011. It drives our passion to obsess about our customers, and to learn about and from them. Our devices are primarily manufactured by third-party contract manufacturers. The hierarchy below lists three levels of fair value based on the extent to which inputs used in measuring fair value are observable in the market. 18,327. We know that as we become more representative of the communities where we live and work, and the people around the world who we aspire to serve, we become better at helping everyone on the planet achieve more. Our CSR Reports Hub provides detailed information on law enforcement access to data, our environmental data, our political activities, our workforce demographics, and our human rights work. Our segments provide management with a comprehensive financial view of our key businesses. To accelerate the inclusion journey for employees, as well as our ecosystem, we hosted Include 2021, a global event focused on diversity and inclusion, and continue to invest in shared understanding by publishing resources and learnings broadly. Current Price. Build the intelligent cloud and intelligent edge platform. The investments we are making in infrastructure and devices will continue to increase our operating costs and may decrease our operating margins. On-the-job stretch and advancement opportunities. The purchase price allocation as of the date of acquisition was based on a preliminary valuation and is subject to revision as more detailed analyses are completed and additional information about the fair value of assets acquired and liabilities assumed becomes available. [Online]. Our competitors are developing new software and devices, while also deploying competing cloud-based services for consumers and businesses. However, some of our products contain certain components for which there are very few qualified suppliers. As the world continues to respond to COVID-19, we are working to do our part by ensuring the safety of our employees, striving to protect the health and well-being of the communities in which we operate, and providing technology and resources to our customers to help them do their best work while remote. Microsoft. The mix of income before income taxes between the U.S. and foreign countries impacted our effective tax rate as a result of the geographic distribution of, and customer demand for, our products and services. We use metrics in assessing the performance of our business and to make informed decisions regarding the allocation of resources. Following a mediation, the parties agreed to a global settlement of all three Canadian actions and submitted the proposed settlement agreement to the courts in all three jurisdictions for approval. Additional information on our reportable segments is contained in Note 19 Segment Information and Geographic Data of the Notes to Financial Statements. 213.43. The following table presents the notional amounts of our outstanding derivative instruments measured in U.S. dollar equivalents: The following table presents our derivative instruments: Gross derivative assets and liabilities subject to legally enforceable master netting agreements for which we have elected to offset were $395 million and $335 million, respectively, as of June 30, 2021, and $399 million and $399 million, respectively, as of June 30, 2020. Vertically integrated computer manufacturers such as Hewlett-Packard, IBM, and Oracle offer their own versions of the Unix operating system preinstalled on server hardware. Care is the new currency for every leader, and weve built a new framework to help our managers strengthen their teams and deliver success through empowerment and accountability. Nearly all computer manufacturers offer server hardware for the Linux operating system and many contribute to Linux operating system development. $256.02 $259.13 10am 12pm 2pm 4pm. We contribute fifty cents for each dollar a participant contributes into the plans, with a maximum employer contribution of 50% of the IRS contribution limit for the calendar year. Certain acquired net operating loss carryforwards are subject to an annual limitation but are expected to be realized with the exception of those which have a valuation allowance. The revenue didn't grow by itself, and there is more than one reason behind it. Our short-term investments are primarily intended to facilitate liquidity and capital preservation. Our goal is to foster innovation that generates new ecosystems of inventors, partners, developers, creators, changemakers, public servants, frontline workers, and knowledge workers who, together, drive the engines of growth and opportunity in ways that benefit everyone. Our goal is to lead the industry in several distinct areas of technology over the long-term, which we expect will translate to sustained growth. Each industry shift is an opportunity to conceive new products, new technologies, or new ideas that can further transform the industry and our business. We compete for talented individuals globally by offering an exceptional working environment, broad customer reach, scale in resources, the ability to grow ones career across many different products and businesses, and competitive compensation and benefits. The specific hardware warranty terms and conditions vary depending upon the product sold and the country in which we do business, but generally include parts and labor over a period generally ranging from 90 days to three years. The segment amounts included in MD&A are presented on a basis consistent with our internal management reporting. Of charge a variety of information for investors is contained in Note Segment! In addition to the top line, also pay close been achieved around the world play,... 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