Microsoft Financial Data - FY19Q1

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Current Financial Statements Trended Historical Financial Statements

Income Statements Quarterly Income Statements
Comprehensive Income Statements Segment History
Balance Sheets Unearned Revenue
Cash Flows Yearly Income Statements
Segment Revenue & Operating Income Return of Cash to Shareholders
Capital Expenditure

We adopted new accounting standards related to revenue recognition and leases effective July
1, 2017. The prior periods presented here have been restated to reflect adoption of these new
standards.
MICROSOFT CORPORATION

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

Three Months Ended

September 30,
2018 2017
Revenue:
Product $17,299 $14,298
Service and other 11,785 10,240
Total revenue 29,084 24,538
Cost of revenue:
Product 3,649 2,980
Service and other 6,256 5,298
Total cost of revenue 9,905 8,278
Gross margin 19,179 16,260
Research and development 3,977 3,574
Sales and marketing 4,098
### 3,812
General and administrative 1,149 1,166
Operating income 9,955 7,708
Other income, net 266 276
Income before income taxes 10,221 7,984
Provision for income taxes 1,397 1,408
Net income $8,824 $6,576
Earnings per share:
Basic $1.15 $0.85
Diluted $1.14 $0.84
Weighted average shares outstanding:
Basic 7,673 7,708
Diluted 7,766 7,799
Cash dividends declared per common share $0.46 $0.42
MICROSOFT CORPORATION

COMPREHENSIVE INCOME STATEMENTS

(In millions)(Unaudited)

Three Months Ended

September 30,
2018 2017
Net income
Other comprehensive income (loss), $8,824 $6,576
net of tax:
Net change related to derivatives (45) (106)
Net change related to investments (261) (288)
Translation adjustments and other (55) 293
Other comprehensive loss (361) (101)
Comprehensive income $8,463 $6,475
MICROSOFT CORPORATION

BALANCE SHEETS
(In millions)(Unaudited)

September 30, June 30,

2018 2018
Assets
Current assets:
Cash and cash equivalents $15,137 $11,946

Short-term investments 120,743 121,822

Total cash, cash equivalents, and short-term
investments 135,880 133,768
Accounts receivable, net of allowance for doubtful
accounts of $319 and $377 17,390 26,481
Inventories 3,614 2,662
Other 7,311 6,751
Total current assets 164,195 169,662
Property and equipment, net of accumulated
depreciation of $30,953 and $29,223 31,430 29,460
Operating lease right-of-use assets 6,734 6,686
Equity investments 2,034 1,862
Goodwill 35,855 35,683
Intangible assets, net 7,579 8,053
Other long-term assets 9,792 7,442
Total assets $257,619 $258,848
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $8,511 $8,617
Current portion of long-term debt 6,497 3,998
Accrued compensation 4,271 6,103
Short-term income taxes 2,341 2,121
Short-term unearned revenue 26,704 28,905
Other 7,953 8,744
Total current liabilities 56,277 58,488
Long-term debt 69,733 72,242
Long-term income taxes 28,936 30,265
Long-term unearned revenue 3,538 3,815
Deferred income taxes 1,977 541
Operating lease liabilities 5,652 5,568
Other long-term liabilities 5,539 5,211
Total liabilities 171,652 176,130
Commitments and contingencies
Stockholders' equity:
Common stock and paid-in capital - shares
authorized 24,000; outstanding 7,680 and 7,677 71,303 71,223
Retained earnings 17,279 13,682
Accumulated other comprehensive loss (2,615) (2,187)
Total stockholders' equity 85,967 82,718
Total liabilities and stockholders' equity $257,619 $258,848
MICROSOFT CORPORATION

CASH FLOWS STATEMENTS

(In millions)(Unaudited)

Three Months Ended

September 30,
2018 2017
Operations
Net income $8,824 $6,576
Adjustments to reconcile net income
to net cash from operations:

Depreciation, amortization, and other 2,837 2,499

Stock-based compensation expense 1,107 973

Net recognized gains on investments and derivatives (240) (523)

Deferred income taxes (247) (53)

Changes in operating assets and liabilities:

Accounts receivable 9,194 7,949
Inventories (956) (1,023)
Other current assets (677) (318)
Other long-term assets 21 (278)
Accounts payable (395) (407)
Unearned revenue (2,441) (1,806)
Income taxes (1,091) 661
Other current liabilities (2,322) (2,164)
Other long-term liabilities 43 354
Net cash from operations 13,657 12,440
Financing
Repayments of short-term debt, maturities of 90 days
or less, net 0 (3,710)

Proceeds from issuance of debt 0 3,954

Repayments of debt 0 (1,169)

Common stock issued 360 307
Common stock repurchased (3,744) (2,570)
Common stock cash dividends paid (3,220) (3,003)
Other, net (780) (150)
Net cash used in financing (7,384) (6,341)
Investing
Additions to property and equipment (3,602) (2,132)

Acquisition of companies, net of cash acquired,

and purchases of intangible and other assets (245) (179)
Purchases of investments (19,551) (32,961)
Maturities of investments 5,214 5,226
Sales of investments 15,231 23,036
Securities lending payable 0 106
Net cash used in investing (2,953) (6,904)
Effect of foreign exchange rates on cash and cash
equivalents (129) 26

Net change in cash and cash equivalents 3,191 (779)

Cash and cash equivalents, beginning of period 11,946 7,663

Cash and cash equivalents, end of period $15,137 $6,884

MICROSOFT CORPORATION

SEGMENT REVENUE AND OPERATING INCOME

(In millions)(Unaudited)

Three Months Ended

September 30,
2018 2017
Revenue
Productivity and Business Processes $9,771 $8,238
Intelligent Cloud 8,567 6,922
More Personal Computing 10,746 9,378
Total $29,084 $24,538
Operating Income
Productivity and Business Processes $3,881 $3,006
Intelligent Cloud 2,931 2,137
More Personal Computing 3,143 2,565
Total $9,955 $7,708
Microsoft Corporation Back to Main
Quarterly Income Statements
(in millions, except per share amounts)

Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17

Revenue:
Product $15,750 $19,431 $15,307 $16,848 $14,968 $18,273 $14,513 $16,057
Service and other 5,160 5,822 6,210 6,626 6,960 7,553 8,699 9,548
Total revenue 20,910 25,253 21,517 23,474 21,928 25,826 23,212 25,605
Cost of revenue:
Product 4,035 6,268 3,801 3,776 3,581 5,378 3,075 3,141
Service and other 3,172 3,604 3,921 4,203 4,263 4,523 4,985 5,315
Total cost of revenue 7,207 9,872 7,722 7,979 7,844 9,901 8,060 8,456
Gross margin 13,703 15,381 13,795 15,495 14,084 15,925 15,152 17,149
Research and development 2,962 2,900 2,980 3,146 3,106 3,062 3,355 3,514
Sales and marketing 3,341 3,954 3,398 3,942 3,218 4,079 3,872 4,292
General and administrative 1,084 1,038 1,140 1,301 1,045 879 1,202 1,355
Impairment, integration, and restructuring 0 0 0 1,110 0 0 0 306
Operating income 6,316 7,489 6,277 5,996 6,715 7,905 6,723 7,682
Other income (expense), net (295) (176) (212) 244 112 117 371 276
Income before income taxes 6,021 7,313 6,065 6,240 6,827 8,022 7,094 7,958
Provision for (benefit from) income taxes 952 1,375 1,760 1,013 1,160 1,755 1,608 (111)
Net income $5,069 $5,938 $4,305 $5,227 $5,667 $6,267 $5,486 $8,069
Earnings per share:
Basic $0.63 $0.75 $0.55 $0.67 $0.73 $0.81 $0.71 $1.05
Diluted $0.63 $0.74 $0.54 $0.66 $0.72 $0.80 $0.70 $1.03
 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19

$14,298 $17,926 $15,114 $17,159 $17,299

10,240 10,992 11,705 12,926 11,785
24,538 28,918 26,819 30,085 29,084

2,980 5,498 3,425 3,517 3,649

5,298 5,566 5,844 6,225 6,256
8,278 11,064 9,269 9,742 9,905
16,260 17,854 17,550 20,343 19,179
3,574 3,504 3,715 3,933 3,977
3,812 4,562 4,335 4,760 4,098
1,166 1,109 1,208 1,271 1,149
0 0 0 0 0
7,708 8,679 8,292 10,379 9,955
276 490 349 301 266
7,984 9,169 8,641 10,680 10,221
1,408 15,471 1,217 1,807 1,397
$6,576 $(6,302) $7,424 $8,873 $8,824

$0.85 $(0.82) $0.96 $1.15 $1.15

$0.84 $(0.82) $0.95 $1.14 $1.14
Microsoft Corporation Back to Main
Segment Revenue and Operating Income (Loss)
(In millions)
Fiscal Year
Revenue Q1-18 Q2-18 Q3-18 Q4-18 2018
Productivity and Business Processes $8,238 $8,953 $9,006 $9,668 $35,865
Intelligent Cloud 6,922 7,795 7,896 9,606 32,219
More Personal Computing 9,378 12,170 9,917 10,811 42,276
Total $24,538 $28,918 $26,819 $30,085 $110,360

Fiscal Year
Operating income (loss) Q1-18 Q2-18 Q3-18 Q4-18 2018
Productivity and Business Processes $3,006 $3,337 $3,115 $3,466 $12,924
Intelligent Cloud 2,137 2,832 2,654 3,901 11,524
More Personal Computing 2,565 2,510 2,523 3,012 10,610
Total $7,708 $8,679 $8,292 $10,379 $35,058
 Fiscal Year
Q1-19 Q2-19 Q3-19 Q4-19 2019
$9,771 $9,771
8,567 8,567
10,746 10,746
$29,084 $29,084

Fiscal Year
Q1-19 Q2-19 Q3-19 Q4-19 2019
$3,881 $3,881
2,931 2,931
3,143 3,143
$9,955 $9,955
Microsoft Corporation Back to Main
Unearned Revenue

Q1-16 Q2-16 Q3-16 Q4-16 Q1-17

Unearned Revenue ($ in millions)

Productivity and Business Processes $8,718 $8,257 $8,006 $10,673 $9,656
Intelligent Cloud 7,107 6,702 6,679 8,913 8,057
More Personal Computing 2,366 2,393 2,427 2,607 2,657
Total $18,191 $17,352 $17,112 $22,193 $20,370

Unearned Revenue (in %)

Productivity and Business Processes 48% 47% 47% 48% 47%
Intelligent Cloud 39% 39% 39% 40% 40%
More Personal Computing 13% 14% 14% 12% 13%
Total 100% 100% 100% 100% 100%
 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19

$9,839 $9,697 $12,692 $11,808 $11,290 $11,185 $14,864 $13,753

7,676 7,735 11,152 10,156 9,759 9,987 14,706 13,298
2,476 2,472 2,812 2,940 2,760 2,783 3,150 3,191
$19,991 $19,904 $26,656 $24,904 $23,809 $23,955 $32,720 $30,242

49% 49% 48% 47% 47% 47% 45% 45%

39% 39% 42% 41% 41% 41% 45% 44%
12% 12% 10% 12% 12% 12% 10% 11%
100% 100% 100% 100% 100% 100% 100% 100%
Microsoft Corporation Back to Main
Yearly Income Statements
(in millions, except per share amounts)

FY16 FY17 FY18

Revenue:
Product $67,336 $63,811 $64,497
Service and other 23,818 32,760 45,863
Total revenue 91,154 96,571 110,360
Cost of revenue:
Product 17,880 15,175 15,420
Service and other 14,900 19,086 22,933
Total cost of revenue 32,780 34,261 38,353
Gross margin 58,374 62,310 72,007
Research and development 11,988 13,037 14,726
Sales and marketing 14,635 15,461 17,469
General and administrative 4,563 4,481 4,754
Impairment, integration, and restructuring 1,110 306 0
Operating income 26,078 29,025 35,058
Other income (expense), net (439) 876 1,416
Income before income taxes 25,639 29,901 36,474
Provision for income taxes 5,100 4,412 19,903
Net income $20,539 $25,489 $16,571
Earnings per share:
Basic $2.59 $3.29 $2.15
Diluted $2.56 $3.25 $2.13
Microsoft Corporation Back to Main
Return of Cash to Shareholders
(in billions, except per share amounts)

FY10 FY11 FY12 FY13 FY14

Yearly
Dividend Per Share $0.52 $0.64 $0.80 $0.92 $1.12
Total Dividends 4.539 5.403 6.720 7.695 9.270
Share Buyback 10.836 11.458 4.000 4.607 6.409

Q2-05 Q3-05 Q4-05 Q1-06 Q2-06

Quarterly
Dividend Per Share $0.08 $0.08 $0.08 $0.08 $0.09
Total Dividends 0.868 0.860 0.857 0.846 0.926
Share Buyback 0.655 2.420 4.302 3.029 7.666
 FY15 FY16 FY17 FY18

$1.24 $1.44 $1.56 $1.68

10.050 11.331 12.048 12.917
13.209 14.800 10.283 8.600

Q3-06 Q4-06 Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08

$0.09 $0.09 $0.10 $0.10 $0.10 $0.10 $0.11 $0.11

0.916 0.897 0.980 0.978 0.952 0.938 1.034 1.023
4.879 4.175 6.965 6.037 6.744 7.367 2.348 4.081
Q3-08 Q4-08 Q1-09 Q2-09 Q3-09 Q4-09 Q1-10 Q2-10

$0.11 $0.11 $0.13 $0.13 $0.13 $0.13 $0.13 $0.13

1.020 0.998 1.157 1.155 1.158 1.157 1.152 1.139
1.020 4.975 5.966 2.234 0.000 0.000 1.445 3.583
Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12

$0.13 $0.13 $0.16 $0.16 $0.16 $0.16 $0.20 $0.20 $0.20

1.130 1.118 1.363 1.349 1.350 1.341 1.683 1.683 1.678
2.000 3.808 4.000 5.000 0.827 1.631 1.000 1.000 1.000
Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15

$0.20 $0.23 $0.23 $0.23 $0.23 $0.28 $0.28 $0.28 $0.28 $0.31
1.676 1.933 1.925 1.921 1.916 2.332 2.322 2.309 2.307 2.547
1.000 1.000 1.607 1.000 1.000 1.500 2.000 1.791 1.118 2.000
Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17

$0.31 $0.31 $0.31 $0.36 $0.36 $0.36 $0.36 $0.39 $0.39 $0.39
2.532 2.496 2.475 2.868 2.842 2.821 2.800 3.024 3.012 3.009
2.000 5.000 4.209 4.000 3.600 3.600 3.600 3.550 3.533 1.600
Q4-17 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19

$0.39 $0.42 $0.42 $0.42 $0.42 $0.46

3.003 3.238 3.232 3.227 3.220 3.533
1.600 1.600 1.800 3.100 2.100 2.600
Microsoft Corporation  Back to Main
Capital expenditures including assets acquired under capital leases
(In billions)
Fiscal Year
Q1-16 Q2-16 Q3-16 Q4-16 2016

Capital expenditures including assets

acquired under capital leases $1.5 $2.0 $2.3 $3.1 $8.9
 Fiscal Year
Q1-17 Q2-17 Q3-17 Q4-17 2017 Q1-18 Q2-18

$2.3 $2.5 $2.1 $3.3 $10.2 $2.7 $3.3

 Fiscal Year
Q3-18 Q4-18 2018 Q1-19 Q2-19 Q3-19 Q4-19

$3.5 $4.1 $13.6 $4.3

Fiscal Year
2019

$4.3