UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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For the Quarterly Period Ended |
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OR |
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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For the Transition Period From to |
Commission File Number
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(STATE OF INCORPORATION) |
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(I.R.S. ID) |
(
www.microsoft.com/investor
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Securities registered pursuant to Section 12(b) of the Act:
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Title of each class |
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Trading Symbol |
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Name of exchange on which registered |
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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
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Accelerated Filer ☐ |
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Non-accelerated Filer ☐ |
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Smaller Reporting Company |
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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. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
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Outstanding as of April 22, 2024 |
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Common Stock, $ |
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MICROSOFT CORPORATION
FORM 10-Q
For the Quarter Ended March 31, 2024
INDEX
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PART I. |
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Item 1. |
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a) |
Income Statements for the Three and Nine Months Ended March 31, 2024 and 2023 |
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b) |
Comprehensive Income Statements for the Three and Nine Months Ended March 31, 2024 and 2023 |
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c) |
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d) |
Cash Flows Statements for the Three and Nine Months Ended March 31, 2024 and 2023 |
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e) |
Stockholders’ Equity Statements for the Three and Nine Months Ended March 31, 2024 and 2023 |
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f) |
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g) |
31 |
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Item 2. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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Item 3. |
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Item 4. |
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PART II. |
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Item 1. |
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Item 1A. |
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Item 2. |
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Item 5. |
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Item 6. |
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67 |
2
PART I
Item 1
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
INCOME STATEMENTS
(In millions, except per share amounts) (Unaudited) |
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Three Months Ended |
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Nine Months Ended |
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2024 |
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2023 |
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2024 |
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2023 |
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Revenue: |
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Product |
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Service and other |
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Total revenue |
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Cost of revenue: |
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Product |
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Service and other |
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Total cost of revenue |
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Gross margin |
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Research and development |
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Sales and marketing |
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General and administrative |
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Operating income |
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Other income (expense), net |
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Income before income taxes |
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Provision for income taxes |
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Net income |
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$ |
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$ |
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$ |
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Earnings per share: |
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Basic |
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$ |
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$ |
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$ |
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Diluted |
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$ |
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$ |
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Weighted average shares outstanding: |
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Basic |
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Diluted |
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Refer to accompanying notes.
3
PART I
Item 1
COMPREHENSIVE INCOME STATEMENTS
(In millions) (Unaudited) |
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Three Months Ended |
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Nine Months Ended March 31, |
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2024 |
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2023 |
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2024 |
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2023 |
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Net income |
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$ |
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$ |
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$ |
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Other comprehensive income (loss), net of tax: |
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Net change related to derivatives |
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Net change related to investments |
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Translation adjustments and other |
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Other comprehensive income (loss) |
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Comprehensive income |
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$ |
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$ |
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$ |
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Refer to accompanying notes.
4
PART I
Item 1
BALANCE SHEETS
(In millions) (Unaudited) |
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March 31, 2024 |
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June 30, |
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Assets |
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Current assets: |
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Cash and cash equivalents |
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$ |
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$ |
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Short-term investments |
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Total cash, cash equivalents, and short-term investments |
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Accounts receivable, net of allowance for doubtful accounts of $ |
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Inventories |
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Other current assets |
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Total current assets |
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Property and equipment, net of accumulated depreciation of $ |
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Operating lease right-of-use assets |
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Equity and other investments |
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Goodwill |
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Intangible assets, net |
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Other long-term assets |
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Total assets |
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$ |
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$ |
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Liabilities and stockholders’ equity |
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Current liabilities: |
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Accounts payable |
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$ |
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Short-term debt |
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Current portion of long-term debt |
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Accrued compensation |
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Short-term income taxes |
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Short-term unearned revenue |
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Other current liabilities |
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Total current liabilities |
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Long-term debt |
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Long-term income taxes |
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Long-term unearned revenue |
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Deferred income taxes |
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Operating lease liabilities |
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Other long-term liabilities |
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Total liabilities |
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Stockholders’ equity: |
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Common stock and paid-in capital – shares authorized |
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Retained earnings |
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Accumulated other comprehensive loss |
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Total stockholders’ equity |
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Total liabilities and stockholders’ equity |
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$ |
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$ |
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Refer to accompanying notes.
5
PART I
Item 1
CASH FLOWS STATEMENTS
(In millions) (Unaudited) |
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Three Months Ended March 31, |
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Nine Months Ended March 31, |
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2024 |
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2023 |
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2024 |
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2023 |
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Operations |
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Net income |
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$ |
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$ |
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$ |
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$ |
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Adjustments to reconcile net income to net cash from operations: |
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Depreciation, amortization, and other |
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Stock-based compensation expense |
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Net recognized losses (gains) on investments and derivatives |
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Deferred income taxes |
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Changes in operating assets and liabilities: |
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Accounts receivable |
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Inventories |
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Other current assets |
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Other long-term assets |
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Accounts payable |
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Unearned revenue |
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Income taxes |
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Other current liabilities |
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Other long-term liabilities |
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Net cash from operations |
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Financing |
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Proceeds from issuance (repayments) of debt, maturities of 90 days or less, net |
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( |
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Proceeds from issuance of debt |
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Repayments of debt |
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( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
Common stock issued |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Common stock repurchased |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Common stock cash dividends paid |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Other, net |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in financing |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additions to property and equipment |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Acquisition of companies, net of cash acquired, and purchases of intangible and other assets |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Purchases of investments |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Maturities of investments |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Sales of investments |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Other, net |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in investing |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of foreign exchange rates on cash and cash equivalents |
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|