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) April 24, 2019

 

 

Microsoft Corporation

(Exact Name of Registrant as Specified in Its Charter)

 

 

Washington

(State or Other Jurisdiction

of Incorporation)

 

001-37845   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))

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 April 24, 2019, Microsoft Corporation issued a press release announcing its financial results for the fiscal quarter ended March 31, 2019. 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:

 


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: April 24, 2019

 

/ S / F RANK H. B ROD

  Frank H. Brod
 

Corporate Vice President, Finance and

Administration;

Chief Accounting Officer

Exhibit 99.1

Microsoft Cloud Strength Drives Third Quarter Results

REDMOND, Wash. — April  24, 2019 — Microsoft Corp. today announced the following results for the quarter ended March 31, 2019, as compared to the corresponding period of last fiscal year:

 

   

Revenue was $30.6 billion and increased 14%

   

Operating income was $10.3 billion and increased 25%

   

Net income was $8.8 billion and increased 19%

   

Diluted earnings per share was $1.14 and increased 20%

“Leading organizations of every size in every industry trust the Microsoft cloud. We are accelerating our innovation across the cloud and edge so our customers can build the digital capability increasingly required to compete and grow,” said Satya Nadella, CEO of Microsoft.

Microsoft returned $7.4 billion to shareholders in the form of share repurchases and dividends in the third quarter of fiscal year 2019.

“Demand for our cloud offerings drove commercial cloud revenue to $9.6 billion this quarter, up 41% year-over-year,” said Amy Hood, executive vice president and chief financial officer of Microsoft. “We continue to drive growth in revenue and operating income with consistent execution from our sales teams and partners and targeted strategic investments.”

Revenue in Productivity and Business Processes was $10.2 billion and increased 14% (up 15% in constant currency), with the following business highlights:

 

   

Office Commercial products and cloud services revenue increased 12% (up 14% in constant currency) driven by Office 365 Commercial revenue growth of 30% (up 31% in constant currency)

   

Office Consumer products and cloud services revenue increased 8% (up 10% in constant currency) and Office 365 Consumer subscribers increased to 34.2 million

   

LinkedIn revenue increased 27% (up 29% in constant currency) with record levels of engagement highlighted by LinkedIn sessions growth of 24%

   

Dynamics products and cloud services revenue increased 13% (up 15% in constant currency) driven by Dynamics 365 revenue growth of 43% (up 44% in constant currency)

Revenue in Intelligent Cloud was $9.7 billion and increased 22% (up 24% in constant currency), with the following business highlights:

 

   

Server products and cloud services revenue increased 27% (up 29% in constant currency) driven by Azure revenue growth of 73% (up 75% in constant currency)

   

Enterprise Services revenue increased 4% (up 5% in constant currency)

Revenue in More Personal Computing was $10.7 billion and increased 8% (up 9% in constant currency), with the following business highlights:

 

   

Windows OEM revenue increased 9% (up 9% in constant currency)

   

Windows Commercial products and cloud services revenue increased 18% (up 20% in constant currency)

   

Surface revenue increased 21% (up 25% in constant currency)

   

Gaming revenue increased 5% (up 7% in constant currency) driven by Xbox software and services revenue growth of 12% (up 15% in constant currency)

   

Search advertising revenue excluding traffic acquisition costs increased 12% (up 14% in constant currency)


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.

Webcast Details

Satya Nadella, chief executive officer, Amy Hood, executive vice president and chief financial officer, Frank Brod, 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 April 24, 2020.

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 March 31,

 

 

   ($ in millions, except per share amounts)

 

  

  Revenue  

 

    

  Operating  
  Income  

 

    

  Net Income  

 

    

  Diluted  
  Earnings per  
  Share  

 

 

  2018 As Reported

  

 

$26,819

 

  

 

$8,292

 

  

 

$7,424

 

  

 

$0.95

 

  2019 As Reported

  

 

$30,571

 

  

 

$10,341

 

  

 

$8,809

 

  

 

$1.14

 

  Percentage Change Y/Y

  

 

14%

 

  

 

25%

 

  

 

19%

 

  

 

20%

 

  Constant Currency Impact

  

 

$(420)

 

  

 

$(208)

 

  

 

$(126)

 

  

 

$(0.02)

 

  Percentage Change Y/Y Constant Currency

  

 

16%

 

  

 

27%

 

  

 

20%

 

  

 

22%

 

Segment Revenue Constant Currency Reconciliation

 

     

Three Months Ended March 31,

 

 

   ($ in millions)

 

  

Productivity and

Business Processes

 

    

Intelligent Cloud

 

    

More Personal
      Computing      

 

 

  2018 As Reported

  

 

$9,006

 

  

 

$7,896

 

  

 

$9,917

 

  2019 As Reported

  

 

$10,242

 

  

 

$9,649

 

  

 

$10,680

 

  Percentage Change Y/Y

  

 

14%

 

  

 

22%

 

  

 

8%

 

  Constant Currency Impact

  

 

$(133)

 

  

 

$(144)

 

  

 

$(143)

 

  Percentage Change Y/Y Constant Currency

  

 

15%

 

  

 

24%

 

  

 

9%

 

Selected Product and Service Revenue Constant Currency Reconciliation    

 

     

Three Months Ended March 31, 2019

 

 
     

Percentage Change
Y/Y (GAAP)

 

    

Constant Currency
Impact

 

    

Percentage Change
Y/Y Constant
Currency

 

 

  Office Commercial products and cloud services

  

 

12%

 

  

 

2%

 

  

 

14%

 

  Office 365 Commercial

  

 

30%

 

  

 

1%

 

  

 

31%

 

  Office Consumer products and cloud services

  

 

8%

 

  

 

2%

 

  

 

10%

 

  LinkedIn

  

 

27%

 

  

 

2%

 

  

 

29%

 

  Dynamics products and cloud services

  

 

13%

 

  

 

2%

 

  

 

15%

 

  Dynamics 365

  

 

43%

 

  

 

1%

 

  

 

44%

 

  Server products and cloud services

  

 

27%

 

  

 

2%

 

  

 

29%

 

  Azure

  

 

73%

 

  

 

2%

 

  

 

75%

 

  Enterprise Services

  

 

4%

 

  

 

1%

 

  

 

5%

 

  Windows OEM

  

 

9%

 

  

 

0%

 

  

 

9%

 

  Windows Commercial products and cloud services

  

 

18%

 

  

 

2%

 

  

 

20%

 

  Search advertising excluding traffic acquisition costs

  

 

12%

 

  

 

2%

 

  

 

14%

 

  Surface

  

 

21%

 

  

 

4%

 

  

 

25%

 

  Gaming

  

 

5%

 

  

 

2%

 

  

 

7%

 

  Xbox software and services

  

 

12%

 

  

 

3%

 

  

 

15%

 

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 new 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;

 

   

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;

 

   

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

 

   

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;

 

   

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

 

   

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;

 

   

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

 

   

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

 

   

additional tax liabilities;

 

   

quality or supply problems;

 

   

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

 

   

catastrophic events or geo-political conditions that may disrupt our business;

 

   

adverse economic or market conditions that may harm our business;


   

changes in our sales organization that may impact revenues;

 

   

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; and

 

   

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

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 March 31, 2019. 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
March 31,

    

Nine Months Ended
March 31,

 
    

     2019

    

      2018

    

     2019

    

     2018

 

 

 

 Revenue:

           

 Product

  

 

$15,448 

 

  

 

$15,114 

 

  

 

$48,966 

 

  

 

$47,338 

 

 Service and other

  

 

15,123 

 

  

 

11,705 

 

  

 

43,160 

 

  

 

32,937 

 

 

    

 

 

    

 

 

    

 

 

 

 Total revenue

  

 

30,571 

 

  

 

26,819 

 

  

 

92,126 

 

  

 

80,275 

 

 

    

 

 

    

 

 

    

 

 

 

 Cost of revenue:

           

 Product

  

 

3,441 

 

  

 

3,425 

 

  

 

12,975 

 

  

 

11,903 

 

 Service and other

  

 

6,729 

 

  

 

5,844 

 

  

 

19,523 

 

  

 

16,708 

 

 

    

 

 

    

 

 

    

 

 

 

 Total cost of revenue

  

 

10,170 

 

  

 

9,269 

 

  

 

32,498 

 

  

 

28,611 

 

 

    

 

 

    

 

 

    

 

 

 

 Gross margin

  

 

20,401 

 

  

 

17,550 

 

  

 

59,628 

 

  

 

51,664 

 

 Research and development

  

 

4,316 

 

  

 

3,715 

 

  

 

12,363 

 

  

 

10,793 

 

 Sales and marketing

  

 

4,565 

 

  

 

4,335 

 

  

 

13,251 

 

  

 

12,709 

 

 General and administrative

  

 

1,179 

 

  

 

1,208 

 

  

 

3,460 

 

  

 

3,483 

 

 

    

 

 

    

 

 

    

 

 

 

 Operating income

  

 

10,341 

 

  

 

8,292 

 

  

 

30,554 

 

  

 

24,679 

 

 Other income, net

  

 

145 

 

  

 

349 

 

  

 

538 

 

  

 

1,115 

 

 

    

 

 

    

 

 

    

 

 

 

 Income before income taxes

  

 

10,486 

 

  

 

8,641 

 

  

 

31,092 

 

  

 

25,794 

 

 Provision for income taxes

  

 

1,677 

 

  

 

1,217 

 

  

 

5,039 

 

  

 

18,096 

 

 

    

 

 

    

 

 

    

 

 

 

 Net income

  

 

$8,809 

 

  

 

$7,424 

 

  

 

$26,053 

 

  

 

$7,698 

 

  

 

 

    

 

 

    

 

 

    

 

 

 

 Earnings per share:

           

 Basic

  

 

$1.15 

 

  

 

$0.96 

 

  

 

$3.39 

 

  

 

$1.00 

 

 Diluted

  

 

$1.14 

 

  

 

$0.95 

 

  

 

$3.36 

 

  

 

$0.99 

 

 Weighted average shares outstanding:

           

 Basic

  

 

7,672 

 

  

 

7,698 

 

  

 

7,679 

 

  

 

7,706 

 

 Diluted

  

 

7,744 

 

  

 

7,794 

 

  

 

7,759 

 

  

 

7,798 

 

 

 


MICROSOFT CORPORATION

 

COMPREHENSIVE INCOME STATEMENTS

(In millions)(Unaudited)

 

    

Three Months Ended
March 31,

    

Nine Months Ended
March 31,

 
    

     2019

    

     2018

    

     2019

    

     2018

 

 

 
           

 Net income

  

 

$8,809 

 

  

 

$7,424 

 

  

 

$26,053 

 

  

 

$7,698 

 

  

 

 

    

 

 

    

 

 

    

 

 

 

 Other comprehensive income (loss), net of tax:

           

 Net change related to derivatives

  

 

(33) 

 

  

 

 

  

 

(93) 

 

  

 

(106) 

 

 Net change related to investments

  

 

714 

 

  

 

(1,016) 

 

  

 

1,334 

 

  

 

(2,182) 

 

 Translation adjustments and other

  

 

67 

 

  

 

255 

 

  

 

(252) 

 

  

 

508 

 

 

    

 

 

    

 

 

    

 

 

 

 Other comprehensive income (loss)

  

 

748 

 

  

 

(754) 

 

  

 

989 

 

  

 

(1,780) 

 

 

    

 

 

    

 

 

    

 

 

 

 Comprehensive income

  

 

$9,557 

 

  

 

$6,670 

 

  

 

$27,042 

 

  

 

$5,918 

 

  

 

 

    

 

 

    

 

 

    

 

 

 


MICROSOFT CORPORATION

 

BALANCE SHEETS

(In millions)(Unaudited)

 

    

March 31,

2019 

     June 30,
2018 
 

 

 

 Assets

     

 Current assets:

     

 Cash and cash equivalents

  

 

$11,212 

 

  

 

$11,946 

 

 Short-term investments

  

 

120,406 

 

  

 

121,822 

 

 

    

 

 

 

 Total cash, cash equivalents, and short-term investments

  

 

131,618 

 

  

 

133,768 

 

 Accounts receivable, net of allowance for doubtful accounts of $336 and $377

  

 

19,269 

 

  

 

26,481 

 

 Inventories

  

 

1,951 

 

  

 

2,662 

 

 Other

  

 

7,049 

 

  

 

6,751 

 

 

    

 

 

 

 Total current assets

  

 

159,887 

 

  

 

169,662 

 

 Property and equipment, net of accumulated depreciation of $35,431 and $29,223

  

 

33,648 

 

  

 

29,460 

 

 Operating lease right-of-use assets

  

 

7,121 

 

  

 

6,686 

 

 Equity investments

  

 

2,403 

 

  

 

1,862 

 

 Goodwill

  

 

41,861 

 

  

 

35,683 

 

 Intangible assets, net

  

 

8,103 

 

  

 

8,053 

 

 Other long-term assets

  

 

10,258 

 

  

 

7,442 

 

 

    

 

 

 

 Total assets

  

 

$263,281 

 

  

 

$258,848

 

  

 

 

    

 

 

 

 Liabilities and stockholders’ equity

     

 Current liabilities:

     

 Accounts payable

  

 

$7,544 

 

  

 

$8,617 

 

 Current portion of long-term debt

  

 

6,515 

 

  

 

3,998 

 

 Accrued compensation

  

 

5,764 

 

  

 

6,103 

 

 Short-term income taxes

  

 

1,950 

 

  

 

2,121 

 

 Short-term unearned revenue

  

 

24,251 

 

  

 

28,905 

 

 Other

  

 

7,837 

 

  

 

8,744 

 

 

    

 

 

 

 Total current liabilities

  

 

53,861 

 

  

 

58,488 

 

 Long-term debt

  

 

66,585 

 

  

 

72,242 

 

 Long-term income taxes

  

 

29,514 

 

  

 

30,265 

 

 Long-term unearned revenue

  

 

3,884 

 

  

 

3,815 

 

 Deferred income taxes

  

 

1,838 

 

  

 

541 

 

 Operating lease liabilities

  

 

5,972 

 

  

 

5,568 

 

 Other long-term liabilities

  

 

6,763 

 

  

 

5,211 

 

 

    

 

 

 

 Total liabilities

  

 

168,417 

 

  

 

176,130 

 

 

    

 

 

 

 Commitments and contingencies

     

 Stockholders’ equity:

     

 Common stock and paid-in capital — shares authorized 24,000; outstanding 7,666 and 7,677

  

 

77,791 

 

  

 

71,223 

 

 Retained earnings

  

 

18,338 

 

  

 

13,682 

 

 Accumulated other comprehensive loss

  

 

(1,265) 

 

  

 

(2,187) 

 

 

    

 

 

 

 Total stockholders’ equity

  

 

94,864 

 

  

 

82,718 

 

 

    

 

 

 

 Total liabilities and stockholders’ equity

  

 

            $263,281 

 

  

 

            $258,848 

 

  

 

 

    

 

 

 


MICROSOFT CORPORATION

 

CASH FLOWS STATEMENTS

(In millions)(Unaudited)

 

     Three Months Ended 
March 31, 
     Nine Months Ended 
March 31, 
 
     2019      2018      2019       2018   

 

 

Operations

           

Net income

             $8,809         $7,424                     $26,053         $7,698   

Adjustments to reconcile net income to net cash from operations:

           

 Depreciation, amortization, and other

     2,926         2,710         8,758         7,745   

 Stock-based compensation expense

     1,172         969         3,462         2,928   

 Net recognized gains on investments and derivatives

     (95)         (438)         (470)         (1,645)   

 Deferred income taxes

     (320)         (396)         (740)         (2,754)   

 Changes in operating assets and liabilities:

           

 Accounts receivable

     460         1,285         7,258         5,326   

 Inventories

     12         (75)         710         107   

 Other current assets

     (14)         (149)         (864)         (113)   

 Other long-term assets

     (517)         (213)         (969)         (835)   

 Accounts payable

     (197)         (393)         (1,032)         138   

 Unearned revenue

     20         91         (4,543)         (2,780)   

 Income taxes

     276         645         (879)         17,280   

 Other current liabilities

     649         546         (1,017)         (975)   

 Other long-term liabilities

     339         145         350         346   

 

    

 

 

    

 

 

    

 

 

 

 Net cash from operations

     13,520         12,151         36,077         32,466   

 

    

 

 

    

 

 

    

 

 

 

 Financing

           

 Repayments of short-term debt, maturities of 90 days or less, net

            (7,373)                (7,324)   

 Proceeds from issuance of debt

                          7,183   

 Repayments of debt

            (4,883)         (3,000)         (9,379)   

 Common stock issued

     274         251         834         747   

 Common stock repurchased

     (4,753)         (3,781)         (14,910)         (8,359)   

 Common stock cash dividends paid

     (3,526)         (3,232)         (10,290)         (9,473)   

 Other, net

     404         (640)         (835)         (946)   

 

    

 

 

    

 

 

    

 

 

 

 Net cash used in financing

     (7,601)         (19,658)         (28,201)         (27,551)   

 

    

 

 

    

 

 

    

 

 

 

 Investing

           

 Additions to property and equipment

     (2,565)         (2,934)         (9,874)         (7,652)   

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

     (269)         (248)         (2,107)         (454)   

 Purchases of investments

     (5,846)         (26,885)         (42,255)         (105,000)   

 Maturities of investments

     5,893         7,674         14,889         19,252   

 Sales of investments

     1,424         26,256         30,831         90,553   

 Securities lending payable

            (19)                (90)   

 

    

 

 

    

 

 

    

 

 

 

 Net cash from (used in) investing

     (1,363)         3,844         (8,516)         (3,391)   

 

    

 

 

    

 

 

    

 

 

 

 Effect of foreign exchange rates on cash and cash equivalents

     18         25         (94)         34   

 

    

 

 

    

 

 

    

 

 

 

 Net change in cash and cash equivalents

     4,574         (3,638)         (734)         1,558   

 Cash and cash equivalents, beginning of period

     6,638         12,859         11,946         7,663   

 

    

 

 

    

 

 

    

 

 

 

 Cash and cash equivalents, end of period

     $11,212         $9,221         $11,212         $9,221   
  

 

 

    

 

 

    

 

 

    

 

 

 


MICROSOFT CORPORATION

 

SEGMENT REVENUE AND OPERATING INCOME

(In millions)(Unaudited)

 

     Three Months Ended
March 31,
     Nine Months Ended
March 31,
 
     2019       2018       2019       2018   

 

 

 Revenue

 

           

 Productivity and Business Processes

     $10,242         $9,006         $30,113         $26,197   

 

 Intelligent Cloud

 

  

 

 

 

 

9,649 

 

 

 

 

  

 

 

 

 

7,896 

 

 

 

 

  

 

 

 

 

27,594 

 

 

 

 

  

 

 

 

 

22,613 

 

 

 

 

 

 More Personal Computing

 

  

 

 

 

 

10,680 

 

 

 

 

  

 

 

 

 

9,917 

 

 

 

 

  

 

 

 

 

34,419 

 

 

 

 

  

 

 

 

 

31,465 

 

 

 

 

 

    

 

 

    

 

 

    

 

 

 

 

 Total

 

  

 

 

 

 

            $30,571 

 

 

 

 

  

 

 

 

 

$26,819 

 

 

 

 

  

 

 

 

 

$92,126 

 

 

 

 

  

 

 

 

 

$80,275 

 

 

 

 

  

 

 

    

 

 

    

 

 

    

 

 

 

 

 Operating Income

 

           

 

 

 Productivity and Business Processes

 

  

 

 

 

 

$3,979 

 

 

 

 

  

 

 

 

 

$3,115 

 

 

 

 

  

 

 

 

 

$11,875 

 

 

 

 

  

 

 

 

 

$9,458 

 

 

 

 

 

 Intelligent Cloud

 

     3,208         2,654         9,418         7,623   

 

 More Personal Computing

 

  

 

 

 

 

3,154 

 

 

 

 

  

 

 

 

 

2,523 

 

 

 

 

  

 

 

 

 

9,261 

 

 

 

 

  

 

 

 

 

7,598 

 

 

 

 

 

    

 

 

    

 

 

    

 

 

 

 

 Total

 

  

 

 

 

 

$10,341 

 

 

 

 

  

 

 

 

 

$8,292 

 

 

 

 

  

 

 

 

 

$30,554 

 

 

 

 

  

 

 

 

 

$24,679