Microsoft Financial Data - FY19Q3

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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 Statements Yearly Income Statements
Segment Revenue & Operating Income Return of Cash to Shareholders
Capital Expenditures

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 Nine Months Ended

March 31, 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
 COMPREHENSIVE INCOME STATEMENTS
(In millions)(Unaudited)

Three Months Ended Nine Months Ended

March 31, 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) 7 (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 $5,918
 BALANCE SHEETS
(In millions)(Unaudited)
(US$ in millions) (US$ in millions)
PARTICULARS
June 30, 2019 June 30, 2018
Net Income/Loss 39,240 16,571
Total Depreciation and Amortization - Cash Flow 11,682 10,261
Other Non-Cash items 1,859 2,507
Total Non-Cash items 13,541 12,768
Change in Accounts Receivable (2,812) (3,862)
Change in Inventories 597 (465)
Change in Accounts Payable 232 1,148
Change in Assets/Liabilities (1,542) (459)
Total change in Assets and Liabilities (596) 14,545
Cash Flow from Operating Activities 52,185 43,884
Net change in Property, Plant and Equipment 13,925 (11,632)
Net change in Intagible Assets - -
Net Acquisitions/Divestitures (2,388) (888)
Net Change in Short-term Investments - -
Net Change in Long-term Investments 540 6,557
Net Change in Investments - Total 540 6,557
Investing Activities - Others - -98
Cash flow from Investing Activities -15,773 -6,061
Net Long-Term Debt -4,000 -2,877
Net Current Debt - -7,324
Debt Issuance/Retirement Net -Total (4,000) (10,201)
Net Common Equity Issued/Repurchased (18,401) (9,719)
Net Total Equity Issued/Repurchased (18,401) (9,719)
Total common and preferred stock dividends paid (13,811) (12,699)
Financial Activities - Other 675 (971)
Cash Flow from Financial Acticities (36,887) (33,590)
Net Cash Flow (590) 4,283
Stock-Based Compensation 4,652 3,940
Common Stock Dividends paid (13,811) (12,699)
PARTICULARS (US$ in millions) (US$ in millions)
March 31, June 30, 2018
2019
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
131,618 133,768
investments
Accounts receivable, net of allowance for
19,269 26,481
doubtful
accounts of $336 and $377
Inventories 1,951 2,662
Other 7,049 6,751
Total current assets 159,887 169,662
Property and equipment, net of accumulated 33,648 29,460
depreciation of $35,431 and $29,223
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 77,791 71,223
authorized 24,000; outstanding 7,666 and
7,677
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
103,394 89,186

14,208
2.443661

2.968512
11,946

150,887

159,887 53,861

106,026
0.302357
18.22667

0.006969
 CASH FLOWS STATEMENTS
(In millions)(Unaudited)

Three Months Ended Nine Months Ended

March 31, 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 0 (7,373) 0 (7,324)
Proceeds from issuance of debt 0 0 0 7,183
Repayments of debt 0 (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 0 (19) 0 (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
 SEGMENT REVENUE AND OPERATING INCOME
(In millions)(Unaudited)

Three Months Ended Nine Months Ended

March 31, 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
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

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

$16,057 $14,298 $17,926 $15,114 $17,159 $17,299 $16,219 $15,448

9,548 10,240 10,992 11,705 12,926 11,785 16,252 15,123
25,605 24,538 28,918 26,819 30,085 29,084 32,471 30,571

3,141 2,980 5,498 3,425 3,517 3,649 5,885 3,441

5,315 5,298 5,566 5,844 6,225 6,256 6,538 6,729
8,456 8,278 11,064 9,269 9,742 9,905 12,423 10,170
17,149 16,260 17,854 17,550 20,343 19,179 20,048 20,401
3,514 3,574 3,504 3,715 3,933 3,977 4,070 4,316
4,292 3,812 4,562 4,335 4,760 4,098 4,588 4,565
1,355 1,166 1,109 1,208 1,271 1,149 1,132 1,179
306 0 0 0 0 0 0 0
7,682 7,708 8,679 8,292 10,379 9,955 10,258 10,341
276 276 490 349 301 266 127 145
7,958 7,984 9,169 8,641 10,680 10,221 10,385 10,486
(111) 1,408 15,471 1,217 1,807 1,397 1,965 1,677
$8,069 $6,576 $(6,302) $7,424 $8,873 $8,824 $8,420 $8,809

$1.05 $0.85 $(0.82) $0.96 $1.15 $1.15 $1.09 $1.15

$1.03 $0.84 $(0.82) $0.95 $1.14 $1.14 $1.08 $1.14
Microsoft Corporation Back to Main
Segment Revenue and Operating Income
(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 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 $10,100 $10,242 $30,113
8,567 9,378 9,649 27,594
10,746 12,993 10,680 34,419
$29,084 $32,471 $30,571 $92,126

Fiscal Year
Q1-19 Q2-19 Q3-19 Q4-19 2019
$3,881 $4,015 $3,979 $11,875
2,931 3,279 3,208 9,418
3,143 2,964 3,154 9,261
$9,955 $10,258 $10,341 $30,554
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%
 Q2-19 Q3-19

$12,635 $12,679
12,551 12,531
2,898 2,925
$28,084 $28,135

45% 45%
45% 45%
10% 10%
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 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 0 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 Q2-19 Q3-19

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

3.003 3.238 3.232 3.227 3.220 3.544 3.526 3.526
1.600 1.600 1.800 3.100 2.100 2.600 6.100 3.899
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 $3.9 $3.4

Fiscal Year
2019

$11.6