UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported) January 28, 2016
Microsoft Corporation
(Exact Name of Registrant as Specified in Its Charter)
Washington
(State or Other Jurisdiction
of Incorporation)
| 0-14278 | 91-1144442 | |
| (Commission File Number) |
(IRS Employer Identification No.) |
| One Microsoft Way, Redmond, Washington | 98052-6399 | |
| (Address of Principal Executive Offices) | (Zip Code) |
(425) 882-8080
(Registrant’s Telephone Number, Including Area Code)
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. Results of Operations and Financial Condition
On January 28, 2016, Microsoft Corporation issued a press release announcing its financial results for the fiscal quarter ended December 31, 2015. A copy of the press release is furnished as Exhibit 99.1 to this report.
In accordance with General Instruction B.2 of Form 8-K, the information in this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits:
99.1 Press release, dated January 28, 2016, issued by Microsoft Corporation
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| MICROSOFT CORPORATION | ||
| (Registrant) | ||
| Date: January 28, 2016 |
/S/ FRANK H. BROD | |
| Frank H. Brod | ||
| Corporate Vice President, Finance and Administration; Chief Accounting Officer | ||
INDEX TO EXHIBITS
| Exhibit No. |
Description | |
| 99.1 | Press release dated January 28, 2016 | |
Exhibit 99.1
Microsoft Cloud Strength Highlights Second Quarter Results
Commercial cloud annualized revenue run rate exceeds $9.4 billion; Windows 10 active on over 200 million devices
REDMOND, Wash. — January 28, 2016 — Microsoft Corp. today announced the following results for the quarter ended December 31, 2015:
| • | Revenue was $23.8 billion GAAP, and $25.7 billion non-GAAP |
| • | Operating income was $6.0 billion GAAP, and $7.9 billion non-GAAP |
| • | Net income was $5.0 billion GAAP, and $6.3 billion non-GAAP |
| • | Earnings per share was $0.62 GAAP, and $0.78 non-GAAP |
During the quarter, Microsoft returned $6.5 billion to shareholders in the form of share repurchases and dividends.
“Businesses everywhere are using the Microsoft Cloud as their digital platform to drive their ambitious transformation agendas,” said Satya Nadella, chief executive officer at Microsoft. “Businesses are also piloting Windows 10, which will drive deployments beyond 200 million active devices.”
The following table reconciles our financial results reported in accordance with generally accepted accounting principles (“GAAP”) to non-GAAP financial results. Microsoft has provided this non-GAAP financial information to aid investors in better understanding the company’s performance. All growth comparisons relate to the corresponding period in the last fiscal year.
| Three Months Ended December 31,
|
||||||||||||||||
| ($ in millions, except per share amounts) | Revenue | Operating Income |
Net Income | Earnings per Share |
||||||||||||
| 2014 As Reported (GAAP)
|
|
$26,470
|
|
|
$7,776
|
|
|
$5,863
|
|
|
$0.71
|
| ||||
| Net Impact from Revenue Deferrals
|
|
(326)
|
|
|
(326)
|
|
|
(248)
|
|
|
(0.03)
|
| ||||
| Integration and Restructuring Charges
|
|
-
|
|
|
243
|
|
|
175
|
|
|
0.02
|
| ||||
| 2014 As Adjusted (non-GAAP)
|
|
$26,144
|
|
|
$7,693
|
|
|
$5,790
|
|
|
$0.70
|
| ||||
| 2015 As Reported (GAAP)
|
|
$23,796
|
|
|
$6,026
|
|
|
$4,998
|
|
|
$0.62
|
| ||||
| Net Impact from Revenue Deferrals
|
|
1,897
|
|
|
1,897
|
|
|
1,277
|
|
|
0.16
|
| ||||
| 2015 As Adjusted (non-GAAP)
|
|
$25,693
|
|
|
$7,923
|
|
|
$6,275
|
|
|
$0.78
|
| ||||
| Percentage Change Y/Y (GAAP)
|
|
(10)%
|
|
|
(23)%
|
|
|
(15)%
|
|
|
(13)%
|
| ||||
| Percentage Change Y/Y (non-GAAP)
|
|
(2)%
|
|
|
3%
|
|
|
8%
|
|
|
11%
|
| ||||
| Percentage Change Y/Y (non-GAAP) Constant Currency
|
|
3%
|
|
|
13%
|
|
|
20%
|
|
|
23%
|
| ||||
“We delivered double-digit operating income growth in non-GAAP constant currency while investing in key strategic areas that position Microsoft for continued long term growth,” said Amy Hood, executive vice president and chief financial officer of Microsoft.
Revenue in Productivity and Business Processes declined 2% (up 5% in constant currency) to $6.7 billion, with the following business highlights:
| • | Office commercial products and cloud services revenue grew 5% in constant currency driven by Office 365 revenue growth of nearly 70% in constant currency |
| • | Office 365 consumer subscribers increased to 20.6 million |
| • | Dynamics revenue grew 11% in constant currency with Dynamics CRM Online seat adds more than doubling year-over-year for the fifth consecutive quarter |
Revenue in Intelligent Cloud grew 5% (up 11% in constant currency) to $6.3 billion, with the following business highlights:
| • | Server products and cloud services revenue grew 10% in constant currency |
| • | Azure revenue grew 140% in constant currency with revenue from Azure premium services growing nearly 3x year-over-year |
| • | Over one third of the Fortune 500 have chosen our Enterprise Mobility solutions, up nearly 3x year-over-year |
Revenue in More Personal Computing declined 5% (down 2% in constant currency) to $12.7 billion, with the following business highlights:
| • | Windows OEM revenue declined 5% in constant currency, outperforming the PC market, driven by higher consumer premium and mid-range device mix |
| • | Surface revenue increased 29% in constant currency driven by the launch of Surface Pro 4 and Surface Book |
| • | Phone revenue declined 49% in constant currency reflecting our strategy change announced in July 2015 |
| • | Search advertising revenue excluding traffic acquisition costs grew 21% in constant currency with continued benefit from Windows 10 usage |
| • | Xbox Live monthly active users grew 30% year-over-year to a record 48 million |
“It was a strong holiday season for Microsoft highlighted by Surface and Xbox,” said Kevin Turner, chief operating officer at Microsoft. “Our commercial business executed well as our sales teams and partners helped customers realize the value of Microsoft’s cloud technologies across Azure, Office 365 and CRM Online.”
Business Outlook
Microsoft will provide forward-looking guidance in connection with this quarterly earnings announcement on its earnings conference call and webcast.
Webcast Details
Satya Nadella, chief executive officer, Amy Hood, executive vice president and chief financial officer, Frank Brod, chief accounting officer, John Seethoff, deputy general counsel and corporate secretary, and Chris Suh, general manager of Investor Relations, will host a conference call and webcast at 2:30 p.m. Pacific time (5:30 p.m. Eastern time) today to discuss details of the company’s performance for the quarter and certain forward-looking information. The session may be accessed at http://www.microsoft.com/investor. The webcast will be available for replay through the close of business on January 28, 2017.
Adjusted Financial Results and non-GAAP Measures
During the second quarter of fiscal year 2016, GAAP revenue, operating income, net income, and earnings per share include the net impact from revenue deferrals. For the second quarter of fiscal year 2015, GAAP revenue, operating income, net income, and earnings per share include the recognition of previously deferred net revenue and charges related to integration and restructuring expenses. These items are defined below. In addition to these financial results reported in accordance with GAAP, Microsoft has provided certain non-GAAP financial information to aid investors in better understanding the company’s performance. Presenting these non-GAAP measures gives additional insight into operational performance and helps clarify trends affecting the company’s business. For comparability of reporting, management considers this information in conjunction with GAAP amounts in evaluating business performance. These non-GAAP financial measures should not be considered as a substitute for, or superior to, the measures of financial performance prepared in accordance with GAAP.
Non-GAAP Definitions
Revenue Deferrals. Microsoft recorded a net $1.9 billion revenue deferral during the three months ended December 31, 2015, primarily related to Windows 10 and Halo 5.
Microsoft recognized a net $326 million of previously deferred revenue during the three months ended December 31, 2014, primarily related to sales of bundled products and services.
Integration and Restructuring Charges. Integration and restructuring expenses were $243 million during the three months ended December 31, 2014. Integration and restructuring expenses include employee severance expenses and costs associated with the consolidation of facilities and manufacturing operations related to restructuring activities, and systems consolidation and other business integration expenses associated with the acquisition of Nokia’s Devices and Services business.
Constant Currency
Microsoft presents constant currency information to provide a non-GAAP framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period non-GAAP results for entities reporting in currencies other than United States dollars are converted into United States dollars using the average exchange rates from the comparative period rather than the actual exchange rates in effect during the respective periods. The non-GAAP financial measures presented below should not be considered as a substitute for, or superior to, the measures of financial performance prepared in accordance with GAAP. All growth comparisons relate to the corresponding period in the last fiscal year.
Financial Performance Constant Currency Reconciliation
| Three Months Ended December 31,
|
||||||||||||||||
| ($ in millions, except per share amounts) | Revenue | Operating Income |
Net Income | Earnings per Share |
||||||||||||
|
2014 As Reported (GAAP)
|
|
$26,470
|
|
|
$7,776
|
|
|
$5,863
|
|
|
$0.71
|
| ||||
|
2014 As Adjusted (non-GAAP)
|
|
$26,144
|
|
|
$7,693
|
|
|
$5,790
|
|
|
$0.70
|
| ||||
|
2015 As Reported (GAAP)
|
|
$23,796
|
|
|
$6,026
|
|
|
$4,998
|
|
|
$0.62
|
| ||||
|
2015 As Reported (non-GAAP)
|
|
$25,693
|
|
|
$7,923
|
|
|
$6,275
|
|
|
$0.78
|
| ||||
|
Percentage Change Y/Y (GAAP)
|
|
(10)%
|
|
|
(23)%
|
|
|
(15)%
|
|
|
(13)%
|
| ||||
|
Percentage Change Y/Y (non-GAAP)
|
|
(2)%
|
|
|
3%
|
|
|
8%
|
|
|
11%
|
| ||||
|
Constant Currency Impact
|
|
$(1,212)
|
|
|
$(766)
|
|
|
$(676)
|
|
|
$(0.08)
|
| ||||
|
Percentage Change Y/Y (non-GAAP) Constant Currency
|
|
3%
|
|
|
13%
|
|
|
20%
|
|
|
23%
|
| ||||
Segment Revenue Constant Currency Reconciliation
| Three Months Ended December 31,
|
||||||||||||
| ($ in millions)
|
Productivity and
|
Intelligent Cloud
|
More Personal
|
|||||||||
|
2014 As Reported (GAAP)
|
|
$6,822
|
|
|
$6,041
|
|
|
$13,282
|
| |||
|
2015 As Reported (GAAP)
|
|
$6,690
|
|
|
$6,343
|
|
|
$12,660
|
| |||
|
Percentage Change Y/Y (GAAP)
|
|
(2)%
|
|
|
5%
|
|
|
(5)%
|
| |||
|
Constant Currency Impact
|
|
$(439)
|
|
|
$(369)
|
|
|
$(404)
|
| |||
|
Percentage Change Y/Y (GAAP) Constant Currency
|
|
5%
|
|
|
11%
|
|
|
(2)%
|
| |||
About Microsoft
Microsoft (Nasdaq “MSFT” @microsoft) is the leading platform and productivity company for the mobile-first, cloud-first world and its mission is to empower every person and every organization on the planet to achieve more.
Forward-Looking Statements
Statements in this release that are “forward-looking statements” are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors such as:
| • | intense competition in all of Microsoft’s markets; |
| • | increasing focus on services presents execution and competitive risks; |
| • | significant investments in new products and services that may not be profitable; |
| • | acquisitions, joint ventures, and strategic alliances may have an adverse effect on our business; |
| • | impairment of goodwill or amortizable intangible assets causing a significant charge to earnings; |
| • | Microsoft’s continued ability to protect and earn revenues from its intellectual property rights; |
| • | claims that Microsoft has infringed the intellectual property rights of others; |
| • | the possibility of unauthorized disclosure of significant portions of Microsoft’s source code; |
| • | cyber-attacks and security vulnerabilities in Microsoft products and services that could reduce revenue or lead to liability; |
| • | disclosure of personal data that could cause liability and harm to Microsoft’s reputation; |
| • | outages, data losses, and disruptions of our online services if we fail to maintain an adequate operations infrastructure; |
| • | government litigation and regulation that may limit how Microsoft designs and markets its products; |
| • | potential liability under trade protection and anti-corruption laws resulting from our international operations; |
| • | laws and regulations relating to the handling of personal data may impede the adoption of our services or result in increased costs, legal claims or fines against us; |
| • | Microsoft’s ability to attract and retain talented employees; |
| • | adverse results in legal disputes; |
| • | unanticipated tax liabilities; |
| • | Microsoft’s hardware and software products may experience quality or supply problems; |
| • | exposure to increased economic and operational uncertainties from operating a global business; |
| • | catastrophic events or geo-political conditions may disrupt our business; and |
| • | adverse economic or market conditions may harm our business. |
For more information about risks and uncertainties associated with Microsoft’s business, please refer to the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” sections of Microsoft’s SEC filings, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q, copies of which may be obtained by contacting Microsoft’s Investor Relations department at (800) 285-7772 or at Microsoft’s Investor Relations website at http://www.microsoft.com/investor.
All information in this release is as of January 28, 2016. The company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the company’s expectations.
For more information, press only:
Rapid Response Team, Waggener Edstrom Worldwide, (503) 443-7070, rrt@waggeneredstrom.com
For more information, financial analysts and investors only:
Chris Suh, general manager, Investor Relations, (425) 706-4400
Note to editors:For more information, news and perspectives from Microsoft, please visit the Microsoft News Center at http://www.microsoft.com/news/. Web links, telephone numbers, and titles were correct at time of publication, but may since have changed. Shareholder and financial information, as well as today’s 2:30 p.m. Pacific time conference call with investors and analysts, is available at http://www.microsoft.com/investor.
MICROSOFT CORPORATION
INCOME STATEMENTS
(In millions, except per share amounts)(Unaudited)
| Three Months Ended December 31, |
Six Months Ended December 31, |
|||||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||
|
|
||||||||||||||||
| Revenue |
$ | 23,796 | $ | 26,470 | $ | 44,175 | $ | 49,671 | ||||||||
| Cost of revenue |
9,872 | 10,136 | 17,079 | 18,409 | ||||||||||||
|
|
|
|
|
|
|
|
||||||||||
| Gross margin |
13,924 | 16,334 | 27,096 | 31,262 | ||||||||||||
| Research and development |
2,900 | 2,903 | 5,862 | 5,968 | ||||||||||||
| Sales and marketing |
3,960 | 4,315 | 7,293 | 8,043 | ||||||||||||
| General and administrative |
1,038 | 1,097 | 2,122 | 2,248 | ||||||||||||
| Impairment, integration, and restructuring |
0 | 243 | 0 | 1,383 | ||||||||||||
|
|
|
|
|
|
|
|
||||||||||
| Operating income |
6,026 | 7,776 | 11,819 | 13,620 | ||||||||||||
| Other income (expense), net |
(171) | 74 | (451) | 126 | ||||||||||||
|
|
|
|
|
|
|
|
||||||||||
| Income before income taxes |
5,855 | 7,850 | 11,368 | 13,746 | ||||||||||||
| Provision for income taxes |
857 | 1,987 | 1,750 | 3,343 | ||||||||||||
|
|
|
|
|
|
|
|
||||||||||
| Net income |
$ | 4,998 | $ | 5,863 | $ | 9,618 | $ | 10,403 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Earnings per share: |
||||||||||||||||
| Basic |
$ | 0.63 | $ | 0.71 | $ | 1.21 | $ | 1.26 | ||||||||
| Diluted |
$ | 0.62 | $ | 0.71 | $ | 1.20 | $ | 1.25 | ||||||||
| Weighted average shares outstanding: |
||||||||||||||||
| Basic |
7,964 | 8,228 | 7,980 | 8,238 | ||||||||||||
| Diluted |
8,028 | 8,297 | 8,047 | 8,321 | ||||||||||||
| Cash dividends declared per common share |
$ | 0.36 | $ | 0.31 | $ | 0.72 | $ | 0.62 | ||||||||
|
|
||||||||||||||||
MICROSOFT CORPORATION
COMPREHENSIVE INCOME STATEMENTS
(In millions)(Unaudited)
| Three Months Ended December 31, |
Six Months Ended December 31, |
|||||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||
|
|
||||||||||||||||
| Net income |
$ | 4,998 | $ | 5,863 | $ | 9,618 | $ | 10,403 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Other comprehensive income (loss):
|
||||||||||||||||
| Net unrealized gains (losses) on derivatives (net of tax effects of $5, $6, $28, and $10)
|
|
(49)
|
|
|
247
|
|
|
8
|
|
|
566
|
| ||||
| Net unrealized gains (losses) on investments (net of tax effects of $86, $(124), $(222), and $(226))
|
|
160
|
|
|
(231)
|
|
|
(411)
|
|
|
(420)
|
| ||||
| Translation adjustments and other (net of tax effects of $(9), $(211), $(21), and $(258)) |
(76) | (390) | (346) | (471) | ||||||||||||
|
|
|
|
|
|
|
|
||||||||||
| Other comprehensive income (loss) |
35 | (374) | (749) | (325) | ||||||||||||
|
|
|
|
|
|
|
|
||||||||||
| Comprehensive income |
$ | 5,033 | $ | 5,489 | $ | 8,869 | $ | 10,078 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
MICROSOFT CORPORATION
BALANCE SHEETS
(In millions)(Unaudited)
| December 31, 2015 |
June 30, 2015 |
|||||||
|
|
||||||||
| Assets |
||||||||
| Current assets: |
||||||||
| Cash and cash equivalents |
$ | 7,185 | $ | 5,595 | ||||
| Short-term investments (including securities loaned of $360 and $75) |
95,455 | 90,931 | ||||||
|
|
|
|
||||||
| Total cash, cash equivalents, and short-term investments |
102,640 | 96,526 | ||||||
| Accounts receivable, net of allowance for doubtful accounts of $384 and $335 |
14,507 | 17,908 | ||||||
| Inventories |
2,702 | 2,902 | ||||||
| Deferred income taxes |
1,618 | 1,915 | ||||||
| Other |
6,345 | 5,461 | ||||||
|
|
|
|
||||||
| Total current assets |
127,812 | 124,712 | ||||||
| Property and equipment, net of accumulated depreciation of $18,008 and $17,606 |
15,789 | 14,731 | ||||||
| Equity and other investments |
11,514 | 12,053 | ||||||
| Goodwill |
17,436 | 16,939 | ||||||
| Intangible assets, net |
4,619 | 4,835 | ||||||
| Other long-term assets |
2,928 | 2,953 | ||||||
|
|
|
|
||||||
| Total assets |
$ | 180,098 | $ | 176,223 | ||||
|
|
|
|
|
|||||
| Liabilities and stockholders’ equity |
||||||||
| Current liabilities: |
||||||||
| Accounts payable |
$ | 6,936 | $ | 6,591 | ||||
| Short-term debt |
3,000 | 4,985 | ||||||
| Current portion of long-term debt |
750 | 2,499 | ||||||
| Accrued compensation |
3,649 | 5,096 | ||||||
| Income taxes |
493 | 606 | ||||||
| Short-term unearned revenue |
20,929 | 23,223 | ||||||
| Securities lending payable |
439 | 92 | ||||||
| Other |
6,447 | 6,766 | ||||||
|
|
|
|
||||||
| Total current liabilities |
42,643 | 49,858 | ||||||
| Long-term debt |
40,679 | 27,808 | ||||||
| Long-term unearned revenue |
4,102 | 2,095 | ||||||
| Deferred income taxes |
2,194 | 2,835 | ||||||
| Other long-term liabilities |
13,700 | 13,544 | ||||||
|
|
|
|
||||||
| Total liabilities |
103,318 | 96,140 | ||||||
|
|
|
|
||||||
| Commitments and contingencies |
||||||||
| Stockholders’ equity: |
||||||||
| Common stock and paid-in capital - shares authorized 24,000; outstanding 7,925 and 8,027 |
68,279 | 68,465 | ||||||
| Retained earnings |
6,728 | 9,096 | ||||||
| Accumulated other comprehensive income |
1,773 | 2,522 | ||||||
|
|
|
|
||||||
| Total stockholders’ equity |
76,780 | 80,083 | ||||||
|
|
|
|
||||||
| Total liabilities and stockholders’ equity |
$ | 180,098 | $ | 176,223 | ||||
|
|
|
|
|
|||||
MICROSOFT CORPORATION
CASH FLOWS STATEMENTS
(In millions)(Unaudited)
| Three Months Ended December 31, |
Six Months Ended December 31, |
|||||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||
|
|
||||||||||||||||
| Operations |
||||||||||||||||
| Net income |
$ | 4,998 | $ | 5,863 | $ | 9,618 | $ | 10,403 | ||||||||
| Adjustments to reconcile net income to net cash from operations: |
||||||||||||||||
| Depreciation, amortization, and other |
1,544 | 1,521 | 3,005 | 2,949 | ||||||||||||
| Stock-based compensation expense |
658 | 633 | 1,332 | 1,279 | ||||||||||||
| Net recognized losses (gains) on investments and derivatives |
50 | (179) | 151 | (124) | ||||||||||||
| Excess tax benefits from stock-based compensation |
(20) | (22) | (302) | (524) | ||||||||||||
| Deferred income taxes |
(247) | 314 | (174) | 615 | ||||||||||||
| Deferral of unearned revenue |
12,570 | 10,200 | 22,993 | 18,222 | ||||||||||||
| Recognition of unearned revenue |
(11,929) | (11,495) | (23,284) | (22,138) | ||||||||||||
| Changes in operating assets and liabilities: |
||||||||||||||||
| Accounts receivable |
(3,118) | (3,378) | 3,258 | 3,249 | ||||||||||||
| Inventories |
1,104 | 1,070 | 167 | 587 | ||||||||||||
| Other current assets |
(912) | (159) | (1,192) | (439) | ||||||||||||
| Other long-term assets |
56 | 170 | 51 | 449 | ||||||||||||
| Accounts payable |
369 | 137 | 234 | (522) | ||||||||||||
| Other current liabilities |
105 | (986) | (1,919) | (2,152) | ||||||||||||
| Other long-term liabilities |
370 | 651 | 254 | 840 | ||||||||||||
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|
|
|
|
|
|
|
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| Net cash from operations |
5,598 | 4,340 | 14,192 | 12,694 | ||||||||||||
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|
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|
|
|
|
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| Financing |
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| Proceeds from issuance (repayments) of short-term debt, maturities of 90 days or less, net |
(7,031) | 4,798 | (2,141) | 7,797 | ||||||||||||
| Proceeds from issuance of debt |
13,128 | 0 | 13,249 | 0 | ||||||||||||
| Repayments of debt |
(121) | 0 | (1,871) | (1,500) | ||||||||||||
| Common stock issued |
117 | 121 | 336 | 337 | ||||||||||||
| Common stock repurchased |
(3,678) | (2,145) | (8,435) | (5,033) | ||||||||||||
| Common stock cash dividends paid |
(2,868) | (2,547) | (5,343) | (4,854) | ||||||||||||
| Excess tax benefits from stock-based compensation |
20 | 22 | 302 | 524 | ||||||||||||
| Other |
(65) | 285 | (243) | 285 | ||||||||||||
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|
|
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|
|
|
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| Net cash from (used in) financing |
(498) | 534 | (4,146) | (2,444) | ||||||||||||
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|
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| Investing |
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| Additions to property and equipment |
(2,024) | (1,490) | (3,380) | (2,772) | ||||||||||||
| Acquisition of companies, net of cash acquired, and purchases of intangible and other assets |
(381) | (2,794) | (771) | (2,935) | ||||||||||||
| Purchases of investments |
(34,750) | (19,167) | (72,320) | (43,252) | ||||||||||||
| Maturities of investments |
5,351 | 2,389 | 11,037 | 4,082 | ||||||||||||
| Sales of investments |
28,191 | 16,108 | 56,693 | 32,553 | ||||||||||||
| Securities lending payable |
285 | 238 | 347 | (129) | ||||||||||||
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|
|
|
|
|
|
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| Net cash used in investing |
(3,328) | (4,716) | (8,394) | (12,453) | ||||||||||||
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|
|
|
|
|
|
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| Effect of exchange rates on cash and cash equivalents |
(18) | (34) | (62) | (40) | ||||||||||||
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|
|
|
|
|
|
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| Net change in cash and cash equivalents |
1,754 | 124 | 1,590 | (2,243) | ||||||||||||
| Cash and cash equivalents, beginning of period |
5,431 | 6,302 | 5,595 | 8,669 | ||||||||||||
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|
|
|
|
|
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| Cash and cash equivalents, end of period |
$ | 7,185 | $ | 6,426 | $ | 7,185 | $ | 6,426 | ||||||||
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|
|||||||||
MICROSOFT CORPORATION
SEGMENT REVENUE AND OPERATING INCOME
(In millions)(Unaudited)
| Three Months Ended December 31, |
Six Months Ended December 31, |
|||||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||
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|
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| Revenue |
||||||||||||||||
| Productivity and Business Processes |
$ | 6,690 | $ | 6,822 | $ | 12,990 | $ | 13,312 | ||||||||
| Intelligent Cloud |
6,343 | 6,041 | 12,232 | 11,516 | ||||||||||||
| More Personal Computing |
12,660 | 13,282 | 22,114 | 24,548 | ||||||||||||
| Corporate and Other |
(1,897) | 325 | (3,161) | 295 | ||||||||||||
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|
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|
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| Total revenue |
$ | 23,796 | $ | 26,470 | $ | 44,175 | $ | 49,671 | ||||||||
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|
|
|
|
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| Operating Income (Loss) |
||||||||||||||||
| Productivity and Business Processes |
$ | 3,305 | $ | 3,587 | $ | 6,460 | $ | 6,988 | ||||||||
| Intelligent Cloud |
2,580 | 2,600 | 4,977 | 4,705 | ||||||||||||
| More Personal Computing |
2,038 | 1,506 | 3,542 | 3,014 | ||||||||||||
| Corporate and Other |
(1,897) | 83 | (3,160) | (1,087) | ||||||||||||
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|
|
|
|
|
|
|
||||||||||
| Total operating income |
$ | 6,026 | $ | 7,776 | $ | 11,819 | $ | 13,620 | ||||||||
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