8-K
MICROSOFT CORP false 0000789019 0000789019 2021-01-26 2021-01-26 0000789019 us-gaap:CommonStockMember 2021-01-26 2021-01-26 0000789019 msft:M2.125NotesDue20213Member 2021-01-26 2021-01-26 0000789019 msft:M3.125NotesDue20281Member 2021-01-26 2021-01-26 0000789019 msft:M2.625NotesDue20332Member 2021-01-26 2021-01-26

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 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 26, 2021

 

 

Microsoft Corporation

(Exact name of registrant as specified in its charter)

 

 

 

Washington   001-37845   91-1144442

(State or Other Jurisdiction

of Incorporation)

 

(Commission

File Number)

 

(IRS Employer

Identification No.)

 

One Microsoft Way, Redmond, Washington   98052-6399

(address)

(425) 882-8080

www.microsoft.com/investor

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))

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

  

Trading Symbol

  

Name of exchange on which registered

Common stock, $0.00000625 par value per share    MSFT    NASDAQ
2.125% Notes due 2021    ​MSFT    NASDAQ
3.125% Notes due 2028    MSFT    NASDAQ
2.625% Notes due 2033    MSFT    NASDAQ

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

 

 


Item 2.02. Results of Operations and Financial Condition

On January 26, 2021, Microsoft Corporation issued a press release announcing its financial results for the fiscal quarter ended December 31, 2020. 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 26, 2021, issued by Microsoft Corporation

104  

Cover Page Interactive Data File (embedded within the Inline XBRL document)


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 26, 2021

 

/s/ Alice L. Jolla

  Alice L. Jolla
 

Corporate Vice President

and Chief Accounting Officer

EX-99.1

Exhibit 99.1

Microsoft Cloud Strength Drives Second Quarter Results

REDMOND, Wash. — January 26, 2021 — Microsoft Corp. today announced the following results for the quarter ended December 31, 2020, as compared to the corresponding period of last fiscal year:

 

   

Revenue was $43.1 billion and increased 17%

   

Operating income was $17.9 billion and increased 29%

   

Net income was $15.5 billion and increased 33%

   

Diluted earnings per share was $2.03 and increased 34%

“What we have witnessed over the past year is the dawn of a second wave of digital transformation sweeping every company and every industry,” said Satya Nadella, chief executive officer of Microsoft. “Building their own digital capability is the new currency driving every organization’s resilience and growth. Microsoft is powering this shift with the world’s largest and most comprehensive cloud platform.”

“Accelerating demand for our differentiated offerings drove commercial cloud revenue to $16.7 billion, up 34% year over year,” said Amy Hood, executive vice president and chief financial officer of Microsoft. “We continue to benefit from our investments in strategic, high-growth areas.”

Business Highlights

Revenue in Productivity and Business Processes was $13.4 billion and increased 13% (up 11% in constant currency), with the following business highlights:

 

   

Office Commercial products and cloud services revenue increased 11% (up 9% in constant currency) driven by Office 365 Commercial revenue growth of 21% (up 20% in constant currency)

   

Office Consumer products and cloud services revenue increased 7% (up 6% in constant currency) and Microsoft 365 Consumer subscribers increased to 47.5 million

   

LinkedIn revenue increased 23% (up 22% in constant currency)

   

Dynamics products and cloud services revenue increased 21% (up 18% in constant currency) driven by Dynamics 365 revenue growth of 39% (up 37% in constant currency)

Revenue in Intelligent Cloud was $14.6 billion and increased 23% (up 22% in constant currency), with the following business highlights:

 

   

Server products and cloud services revenue increased 26% (up 24% in constant currency) driven by Azure revenue growth of 50% (up 48% in constant currency)

Revenue in More Personal Computing was $15.1 billion and increased 14% (up 13% in constant currency), with the following business highlights:

 

   

Windows OEM revenue increased 1%

   

Windows Commercial products and cloud services revenue increased 10% (up 8% in constant currency)

   

Xbox content and services revenue increased 40% (up 38% in constant currency)


   

Surface revenue increased 3% (up 1% in constant currency)

   

Search advertising revenue excluding traffic acquisition costs increased 2% (up 1% in constant currency)

Microsoft returned $10 billion to shareholders in the form of share repurchases and dividends in the second quarter of fiscal year 2021, an increase of 18% compared to the second quarter of fiscal year 2020.

Business Outlook

Microsoft will provide forward-looking guidance in connection with this quarterly earnings announcement on its earnings conference call and webcast.

Quarterly Highlights, Product Releases, and Enhancements

Every quarter Microsoft delivers hundreds of products, either as new releases, services, or enhancements to current products and services. These releases are a result of significant research and development investments, made over multiple years, designed to help customers be more productive and secure and to deliver differentiated value across the cloud and the edge.

Here are the major product releases and other highlights for the quarter, organized by product categories, to help illustrate how we are accelerating innovation across our businesses while expanding our market opportunities.

Responding to COVID-19

At Microsoft, our focus remains on 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 and partners to help them do their best work while remote. Additional information about Microsoft’s COVID-19 response can be found here.

Environmental, Social, and Governance (ESG)

To better execute on Microsoft’s mission, we focus our Environmental, Social, and Governance (ESG) efforts where we can have the most positive impact. To learn more about our latest initiatives and priorities, please visit our investor relations ESG website.

Webcast Details

Satya Nadella, chief executive officer, Amy Hood, executive vice president and chief financial officer, Alice Jolla, chief accounting officer, Keith Dolliver, deputy general counsel, and Michael Spencer, 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/en-us/investor. The webcast will be available for replay through the close of business on January 26, 2022.


Constant Currency

Microsoft presents constant currency information to provide a 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 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. All growth comparisons relate to the corresponding period in the last fiscal year. Microsoft has provided this non-GAAP financial information to aid investors in better understanding our performance. The non-GAAP financial measures presented in this release should not be considered as a substitute for, or superior to, the measures of financial performance prepared in accordance with GAAP.


Financial Performance Constant Currency Reconciliation

 

     

Three Months Ended December 31,

 

 

   ($ in millions, except per share amounts)

 

  

  Revenue  

 

    

  Operating  
  Income  

 

    

  Net Income  

 

    

  Diluted  
  Earnings per  
  Share  

 

 

  2019 As Reported

  

 

$36,906

 

  

 

$13,891

 

  

 

$11,649

 

  

 

$1.51

 

  2020 As Reported

  

 

$43,076

 

  

 

$17,897

 

  

 

$15,463

 

  

 

$2.03

 

  Percentage Change Y/Y

  

 

17%

 

  

 

29%

 

  

 

33%

 

  

 

34%

 

  Constant Currency Impact

  

 

$494

 

  

 

$383

 

  

 

$379

 

  

 

$0.05

 

  Percentage Change Y/Y Constant Currency

  

 

15%

 

  

 

26%

 

  

 

29%

 

  

 

31%

 

Segment Revenue Constant Currency Reconciliation

 

     

Three Months Ended December 31,

 

 

   ($ in millions)

 

  

Productivity and
Business Processes

 

    

Intelligent Cloud

 

    

More Personal
      Computing      

 

 

  2019 As Reported

  

 

$11,826

 

  

 

$11,869

 

  

 

$13,211

 

  2020 As Reported

  

 

$13,353

 

  

 

$14,601

 

  

 

$15,122

 

  Percentage Change Y/Y

  

 

13%

 

  

 

23%

 

  

 

14%

 

  Constant Currency Impact

  

 

$173

 

  

 

$168

 

  

 

$153

 

  Percentage Change Y/Y Constant Currency

  

 

11%

 

  

 

22%

 

  

 

13%

 

Selected Product and Service Revenue Constant Currency Reconciliation

 

     

Three Months Ended December 31,

 

 
     

Percentage Change
Y/Y (GAAP)

    

Constant Currency
Impact

 

    

Percentage Change
Y/Y Constant
Currency

 

 

  Office Commercial products and cloud services

  

 

11%

 

  

 

(2)%

 

  

 

9%

 

  Office 365 Commercial

  

 

21%

 

  

 

(1)%

 

  

 

20%

 

  Office Consumer products and cloud services

  

 

7%

 

  

 

(1)%

 

  

 

6%

 

  LinkedIn

  

 

23%

 

  

 

(1)%

 

  

 

22%

 

  Dynamics products and cloud services

  

 

21%

 

  

 

(3)%

 

  

 

18%

 

  Dynamics 365

  

 

39%

 

  

 

(2)%

 

  

 

37%

 

  Server products and cloud services

  

 

26%

 

  

 

(2)%

 

  

 

24%

 

  Azure

  

 

50%

 

  

 

(2)%

 

  

 

48%

 

  Windows OEM

  

 

1%

 

  

 

0%

 

  

 

1%

 

  Windows Commercial products and cloud services

  

 

10%

 

  

 

(2)%

 

  

 

8%

 

  Xbox content and services

  

 

40%

 

  

 

(2)%

 

  

 

38%

 

  Surface

  

 

3%

 

  

 

(2)%

 

  

 

1%

 

  Search advertising excluding traffic acquisition costs

  

 

2%

 

  

 

(1)%

 

  

 

1%

 

About Microsoft

Microsoft (Nasdaq “MSFT” @microsoft) enables digital transformation for the era of an intelligent cloud and an intelligent edge. 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 our markets that may lead to lower revenue or operating margins;

 

   

increasing focus on cloud-based services presenting execution and competitive risks;

 

   

significant investments in products and services that may not achieve expected returns;

 

   

acquisitions, joint ventures, and strategic alliances that may have an adverse effect on our business;

 

   

impairment of goodwill or amortizable intangible assets causing a significant charge to earnings;

 

   

cyberattacks and security vulnerabilities that could lead to reduced revenue, increased costs, liability claims, or harm to our reputation or competitive position;

 

   

disclosure and misuse of personal data that could cause liability and harm to our reputation;

 

   

the possibility that we may not be able to protect information stored in our products and services from use by others;

 

   

abuse of our advertising or social platforms that may harm our reputation or user engagement;

 

   

the development of the internet of things presenting security, privacy, and execution risks;

 

   

issues about the use of artificial intelligence in our offerings that may result in competitive harm, legal liability, or reputational harm;

 

   

excessive outages, data losses, and disruptions of our online services if we fail to maintain an adequate operations infrastructure;

 

   

quality or supply problems;

 

   

government litigation and regulatory activity relating to competition rules that may limit how we design and market our products;

 

   

potential liability under trade protection, anti-corruption, and other laws resulting from our global operations;

 

   

laws and regulations relating to the handling of personal data that may impede the adoption of our services or result in increased costs, legal claims, fines, or reputational damage;

 

   

claims against us that may result in adverse outcomes in legal disputes;

 

   

uncertainties relating to our business with government customers;

 

   

additional tax liabilities;

 

   

the possibility that we may fail to protect our source code;


   

legal changes, our evolving business model, piracy, and other factors may decrease the value of our intellectual property;

 

   

claims that Microsoft has infringed the intellectual property rights of others;

 

   

damage to our reputation or our brands that may harm our business and operating results;

 

   

adverse economic or market conditions that may harm our business;

 

   

catastrophic events or geo-political conditions, such as the COVID-19 pandemic, that may disrupt our business;

 

   

exposure to increased economic and operational uncertainties from operating a global business, including the effects of foreign currency exchange and

 

   

the dependence of our business on our ability to attract and retain talented employees.

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/en-us/investor.

All information in this release is as of December 31, 2020. 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:

Microsoft Media Relations, WE Communications for Microsoft, (425) 638-7777, rrt@we-worldwide.com

For more information, financial analysts and investors only:

Michael Spencer, 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/en-us/investor


MICROSOFT CORPORATION    

INCOME STATEMENTS

(In millions, except per share amounts) (Unaudited)

 

    

Three Months Ended
December 31,

    

Six Months Ended
December 31,

 
    

     2020

    

          2019

    

     2020

    

          2019

 

 

 

 Revenue:

           

 Product

  

 

$19,460 

 

  

 

$18,255 

 

  

 

$35,263 

 

  

 

$34,023 

 

 Service and other

  

 

23,616 

 

  

 

18,651 

 

  

 

44,967 

 

  

 

35,938 

 

 

    

 

 

    

 

 

    

 

 

 

 Total revenue

  

 

43,076 

 

  

 

36,906 

 

  

 

80,230 

 

  

 

69,961 

 

 

    

 

 

    

 

 

    

 

 

 

 Cost of revenue:

           

 Product

  

 

6,058 

 

  

 

4,966 

 

  

 

9,655 

 

  

 

8,271 

 

 Service and other

  

 

8,136 

 

  

 

7,392 

 

  

 

15,541 

 

  

 

14,493 

 

 

    

 

 

    

 

 

    

 

 

 

 Total cost of revenue

  

 

14,194 

 

  

 

12,358 

 

  

 

25,196 

 

  

 

22,764 

 

 

    

 

 

    

 

 

    

 

 

 

 Gross margin

  

 

28,882 

 

  

 

24,548 

 

  

 

55,034 

 

  

 

47,197 

 

 Research and development

  

 

4,899 

 

  

 

4,603 

 

  

 

9,825 

 

  

 

9,168 

 

 Sales and marketing

  

 

4,947 

 

  

 

4,933 

 

  

 

9,178 

 

  

 

9,270 

 

 General and administrative

  

 

1,139 

 

  

 

1,121 

 

  

 

2,258 

 

  

 

2,182 

 

 

    

 

 

    

 

 

    

 

 

 

 Operating income

  

 

17,897 

 

  

 

13,891 

 

  

 

33,773 

 

  

 

26,577 

 

 Other income, net

  

 

440 

 

  

 

194 

 

  

 

688 

 

  

 

194 

 

 

    

 

 

    

 

 

    

 

 

 

 Income before income taxes

  

 

18,337 

 

  

 

14,085 

 

  

 

34,461 

 

  

 

26,771 

 

 Provision for income taxes

  

 

2,874 

 

  

 

2,436 

 

  

 

5,105 

 

  

 

4,444 

 

 

    

 

 

    

 

 

    

 

 

 

 Net income

  

 

$15,463 

 

  

 

$11,649 

 

  

 

$29,356 

 

  

 

$22,327 

 

  

 

 

    

 

 

    

 

 

    

 

 

 

 Earnings per share:

           

 Basic

  

 

$2.05 

 

  

 

$1.53 

 

  

 

$3.88 

 

  

 

$2.93 

 

 Diluted

  

 

$2.03 

 

  

 

$1.51 

 

  

 

$3.85 

 

  

 

$2.90 

 

 Weighted average shares outstanding:

           

 Basic

  

 

7,555 

 

  

 

7,621 

 

  

 

7,561 

 

  

 

7,628 

 

 Diluted

  

 

7,616 

 

  

 

7,691 

 

  

 

7,627 

 

  

 

7,701 

 

 

 


MICROSOFT CORPORATION    

 

COMPREHENSIVE INCOME STATEMENTS

(In millions) (Unaudited)

 

    

Three Months Ended
December 31,

    

Six Months Ended
December 31,

 
    

         2020

    

         2019

    

         2020

    

         2019

 

 

 

 Net income

  

 

$15,463 

 

  

 

$11,649 

 

  

 

$29,356 

 

  

 

$22,327 

 

  

 

 

    

 

 

    

 

 

    

 

 

 

 Other comprehensive income (loss), net of tax:

           

 Net change related to derivatives

  

 

 

  

 

(4) 

 

  

 

12 

 

  

 

(6) 

 

 Net change related to investments

  

 

(492) 

 

  

 

(420) 

 

  

 

(693) 

 

  

 

157 

 

 Translation adjustments and other

  

 

741 

 

  

 

230 

 

  

 

852 

 

  

 

(66) 

 

 

    

 

 

    

 

 

    

 

 

 

 Other comprehensive income (loss)

  

 

257 

 

  

 

(194) 

 

  

 

171 

 

  

 

85 

 

 

    

 

 

    

 

 

    

 

 

 

 Comprehensive income

  

 

$15,720 

 

  

 

$11,455 

 

  

 

$29,527 

 

  

 

$22,412 

 

  

 

 

    

 

 

    

 

 

    

 

 

 


MICROSOFT CORPORATION    

 

BALANCE SHEETS

(In millions) (Unaudited)

 

     December 31,
2020 
     June 30,
2020 
 

 

 

 Assets

     

 Current assets:

     

 Cash and cash equivalents

  

 

$14,432 

 

  

 

$13,576 

 

 Short-term investments

  

 

117,536 

 

  

 

122,951 

 

 

    

 

 

 

 Total cash, cash equivalents, and short-term investments

  

 

131,968 

 

  

 

136,527 

 

 Accounts receivable, net of allowance for doubtful accounts of $642 and $788

  

 

27,312 

 

  

 

32,011 

 

 Inventories

  

 

1,924 

 

  

 

1,895 

 

 Other current assets

  

 

12,769 

 

  

 

11,482 

 

 

    

 

 

 

 Total current assets

  

 

173,973 

 

  

 

181,915 

 

 Property and equipment, net of accumulated depreciation of $47,715 and $43,197

  

 

51,737 

 

  

 

44,151 

 

 Operating lease right-of-use assets

  

 

10,298 

 

  

 

8,753 

 

 Equity investments

  

 

3,794 

 

  

 

2,965 

 

 Goodwill

  

 

44,219 

 

  

 

43,351 

 

 Intangible assets, net

  

 

6,555 

 

  

 

7,038 

 

 Other long-term assets

  

 

13,561 

 

  

 

13,138 

 

 

    

 

 

 

 Total assets

  

 

$304,137 

 

  

 

$301,311 

 

  

 

 

    

 

 

 

 Liabilities and stockholders’ equity

     

 Current liabilities:

     

 Accounts payable

  

 

$12,770 

 

  

 

$12,530 

 

 Current portion of long-term debt

  

 

5,387 

 

  

 

3,749 

 

 Accrued compensation

  

 

6,838 

 

  

 

7,874 

 

 Short-term income taxes

  

 

1,562 

 

  

 

2,130 

 

 Short-term unearned revenue

  

 

30,402 

 

  

 

36,000 

 

 Other current liabilities

  

 

10,527 

 

  

 

10,027 

 

 

    

 

 

 

 Total current liabilities

  

 

67,486 

 

  

 

72,310 

 

 Long-term debt

  

 

55,136 

 

  

 

59,578 

 

 Long-term income taxes

  

 

26,701 

 

  

 

29,432 

 

 Long-term unearned revenue

  

 

2,985 

 

  

 

3,180 

 

 Deferred income taxes

  

 

174 

 

  

 

204 

 

 Operating lease liabilities

  

 

8,875 

 

  

 

7,671 

 

 Other long-term liabilities

  

 

12,544 

 

  

 

10,632 

 

 

    

 

 

 

 Total liabilities

  

 

173,901 

 

  

 

183,007 

 

 

    

 

 

 

 Commitments and contingencies

     

 Stockholders’ equity:

     

 

 

 

 Common stock and paid-in capital—shares authorized 24,000; outstanding 7,546 and 7,571

  

 

81,896 

 

  

 

80,552 

 

 Retained earnings

  

 

44,973 

 

  

 

34,566

 

 Accumulated other comprehensive income

  

 

3,367 

 

  

 

3,186 

 

 

    

 

 

 

 Total stockholders’ equity

  

 

130,236 

 

  

 

118,304 

 

 

    

 

 

 

 Total liabilities and stockholders’ equity

  

 

            $304,137 

 

  

 

            $301,311 

 

  

 

 

    

 

 

 


MICROSOFT CORPORATION    

 

CASH FLOWS STATEMENTS

(In millions) (Unaudited)

 

     Three Months Ended 
December 31, 
     Six Months Ended 
December 31, 
 
                 2020                  2019                  2020                  2019  

 

 

 Operations

           

 Net income

     $15,463         $11,649         $29,356         $22,327   

 Adjustments to reconcile net income to net cash from operations:

                  

 Depreciation, amortization, and other

     2,761         3,203         5,406         6,174   

 Stock-based compensation expense

     1,566         1,340         3,022         2,602   

 Net recognized gains on investments and derivatives

     (354)         (203)         (482)         (192)   

 Deferred income taxes

     (17)         (53)         (28)         (230)   

 Changes in operating assets and liabilities:

                       

 Accounts receivable

     (4,008)         (4,203)         4,835         5,887   

 Inventories

     788         799         (20)         238   

 Other current assets

     730         165         676         (273)   

 Other long-term assets

     (1,499)        (517)         (1,561)         (850)   

 Accounts payable

     33         (7)         348         (554)   

 Unearned revenue

     (3,227)         (2,936)         (6,291)         (5,828)   

 Income taxes

     (2,368)         (471)         (3,351)        (3,807)   

 Other current liabilities

     1,755         1,489         (1,196)         (1,831)   

 Other long-term liabilities

     893         425         1,137         835   

 

    

 

 

    

 

 

    

 

 

 

 Net cash from operations

     12,516         10,680         31,851         24,498   

 

    

 

 

    

 

 

    

 

 

 

 Financing

                 

 Repayments of debt

     (3,250)         (18)          (3,250)         (2,518)   

 Common stock issued

     302         234         847         661   

 Common stock repurchased

     (6,535)         (5,206)         (13,278)         (10,118)   

 Common stock cash dividends paid

     (4,230)         (3,886)         (8,086)         (7,396)   

 Other, net

     79         (39)         (156)         247   

 

    

 

 

    

 

 

    

 

 

 

 Net cash used in financing

     (13,634)        (8,915)         (23,923)         (19,124)   

 

    

 

 

    

 

 

    

 

 

 

 Investing

                       

 Additions to property and equipment

     (4,174)         (3,545)         (9,081)         (6,930)   

 Acquisition of companies, net of cash acquired, and purchases
of intangible and other assets

     (415)         (80)         (896)         (542)   

 Purchases of investments

     (15,092)         (19,011)         (29,672)         (42,401)   

 Maturities of investments

     15,264         11,230         29,530         30,312   

 Sales of investments

     2,421         5,370         4,835         11,749   

 Other, net

     327                (1,756)          

 

    

 

 

    

 

 

    

 

 

 

 Net cash used in investing

     (1,669)         (6,036)         (7,040)         (7,812)   

 

    

 

 

    

 

 

    

 

 

 

 Effect of foreign exchange rates on cash and cash equivalents

     14         18         (32)         (54)   

 

    

 

 

    

 

 

    

 

 

 

 Net change in cash and cash equivalents

     (2,773)        (4,253)         856         (2,492)   

 Cash and cash equivalents, beginning of period

     17,205         13,117         13,576         11,356   

 

    

 

 

    

 

 

    

 

 

 

 Cash and cash equivalents, end of period

     $14,432         $8,864         $14,432         $8,864   
  

 

 

    

 

 

    

 

 

    

 

 

 


MICROSOFT CORPORATION    

 

SEGMENT REVENUE AND OPERATING INCOME

(In millions) (Unaudited)

 

    

Three Months Ended

December 31,

     Six Months Ended
December 31,
 
     2020       2019       2020       2019   

 

 

 Revenue

           

 Productivity and Business Processes

     $13,353         $11,826         $25,672         $22,903   

 Intelligent Cloud

     14,601         11,869         27,587         22,714   

 More Personal Computing

     15,122         13,211         26,971         24,344   

 

    

 

 

    

 

 

    

 

 

 

 Total

     $43,076         $36,906         $80,230         $69,961   
  

 

 

    

 

 

    

 

 

    

 

 

 

 Operating Income

           

 Productivity and Business Processes

     $6,181         $5,182         $11,887         $9,964   

 Intelligent Cloud

     6,492         4,531         11,914         8,420   

 More Personal Computing

     5,224         4,178         9,972         8,193   

 

    

 

 

    

 

 

    

 

 

 

 Total

         $17,897             $13,891             $33,773             $26,577